Mar 31, 2023
Provisions, Contingent Liabilities and Contingent Assets
a) Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. The expenses relating to
a provision are recognised in the Statement of Profit &
Loss net of any reimbursement.
b) If the effect of time value of money is material,
provisions are shown at present value of expenditure
expected to be required to settle the obligation, by
discounting using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance
cost.
c) Contingent liabilities are possible obligations arising
from past events and whose existence will only be
confirmed by occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the Company, or present obligations
where it is not probable that an outflow of resources
will be required to settle the obligation or the amount
of the obligation cannot be measured with sufficient
reliability. Contingent liabilities are not recognized
in the financial statements but are disclosed unless
the possibility of an outflow of economic resources is
considered remote.
d) Show-cause notices issued by various Government
Authorities are not considered as obligation. When the
demand notices are raised against such show-cause
notices and are disputed by the Company, these are
classified as disputed obligations.
e) Contingent Assets are not recognised but reviewed
at each balance sheet date and disclosure is made
in the Notes in respect of possible effects that arise
from past events and whose existence is confirmed
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the Company and where inflow of economic benefit is
probable.
a) The Company measures financial instruments i.e.
derivative contracts at fair value at each balance sheet
date.
b) Fair value is the price that would be received on
selling an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date in the principal or, in its absence,
the most advantageous market to which the Company
has access at that date.
c) While measuring the fair value of an asset or liability,
the Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure the fair value
using observable market data as far as possible and
minimising the use of unobservable inputs. Fair values
are categorised into 3 levels as follows:
Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities.
Level 2: inputs other than quoted prices that are
observable for the assets or liability, either directly (i.e.
as prices for similar item) or indirectly (i.e. derived from
prices)
Level 3: inputs that are not based on observable market
data (unobservable inputs)
i. Financial Assets other than derivatives
All financial assets are recognised initially at fair values
including transaction costs that are attributable to the
acquisition of the financial asset.
A financial asset is measured (subsequent
measurement) at the amortised cost if the asset is held
within a business model whose objective is to hold
assets for collecting contractual cash flows, and the
contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Amortised cost is net of any write down for impairment
loss (if any) using the effective interest rate (EIR) method
taking into account any discount or premium and fees
or costs that are an integral part of the EIR.
A financial asset is derecognised either partly or fully
to the extent the rights to receive cash flows from the
asset have expired and / or the control on the asset has
been transferred to a third party. On de-recognition,
any gains or losses are recognised in the Statement of
Profit & Loss.
ii. Financial Liabilities other than derivatives
All financial liabilities are recognised initially at fair value
net of transaction costs that are attributable to the
respective liabilities.
After initial recognition, financial liabilities are
subsequently measured at amortised cost using the
effective interest rate method ("EIR"). Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
as finance costs in the Statement of Profit & Loss.
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
Statement of Profit & Loss.
iii. Derivative financial instruments
The Company uses derivative financial instruments,
such as foreign exchange forward contracts to manage
its exposure to foreign exchange risks. Such derivative
financial instruments are initially recognised at fair value
on the date on which a derivative contract is entered
into and are subsequently re-measured at fair value
with the changes being recognised in the Statement
of Profit & Loss. Derivatives are carried as financial assets
when the fair value is positive and as financial liabilities
when the fair value is negative.
iv. Compound Financial Instrument
Compound financial instruments issued by the
Company which can be converted into fixed number
of equity shares at the option of the holders irrespective
of changes in the fair value of the instrument are
accounted by separately recognising the liability and
the equity components. The liability component is
initially recognised at the fair value of a comparable
liability that does not have an equity conversion option.
The equity component is initially recognised at the
difference between the fair value of the compound
financial instrument as a whole and the fair value of the
liability component. Subsequent to initial recognition,
the liability component of the compound financial
instrument is measured at amortised cost using the
effective interest method. The equity component of
a compound financial instrument is not remeasured
subsequently.
v. Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle
on a net basis, or to realise the assets and settle the
liabilities simultaneously.
P. Classification of Assets and Liabilities
as Current and Non Current
All assets and liabilities are classified as current if they are
expected to be realised / settled within twelve months
after the reporting period. All other assets and liabilities are
considered as non-current.
Non-financial Assets
At each Balance Sheet date, an assessment is made of whether
there is any indication of impairment. If any indication exists,
or when annual impairment testing for an asset is required,
the Company estimates the asset''s recoverable amount. An
asset''s recoverable amount is the higher of the asset''s or
Cash-Generating Unit''s (CGU) fair value less costs of disposal
and its value in use. Recoverable amount 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.
When 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.
Financial Assets
The Company applies Expected Credit Loss ("ECL") model
for measurement and recognition of impairment loss on the
financial assets measured at amortised cost.
Loss allowances on trade receivables are measured following
the ''simplified approach'' at an amount equal to the lifetime
ECL at each reporting date right from initial recognition. In
respect of other financial assets measured at amortised cost,
the loss allowance is measured at 12 months ECL for financial
assets with low credit risk at the reporting date. Where there is
a significant deterioration in the credit risk, the loss allowance
is measured since initial recognition of the financial asset.
Current Tax
Income-tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted,
by the end of reporting period.
Deferred tax
Deferred tax (both assets and liabilities) is calculated using the
balance sheet method on temporary differences between
the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting
date.
Deferred tax assets are recognised for all deductible temporary
differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses can
be utilised. The amount of deferred tax assets is reviewed at
each reporting date.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation authority.
Current tax and Deferred Tax items are recognised in
correlation to the underlying transaction either in the
Statement of Profit & Loss, other comprehensive income or
directly in equity.
Basic earnings per share are 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.
Diluted earnings per share are calculated by dividing
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period, adjusted for the effect of all
dilutive potential equity shares.
Cash and cash equivalents include cash at bank, cash,
cheques and draft on hand. The Company considers all
highly liquid investments with a remaining maturity at the
date of purchase of three months or less and that are readily
convertible to known amounts of cash to be cash equivalents.
Cash Flows
Cash flows are reported using the indirect method, where by
net profit before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and item of
income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities are segregated.
Government grants are recognized to the extent they are
received in cash or kind.
When the grant relates to an expense item, the same is
deducted in reporting the related expense in the Statement
of Profit or Loss for which it is intended to compensate.
Government grants relating to property, plant and
equipment are presented as deferred income and are
credited to the Statement of Profit & Loss on a systematic
basis over the useful life of the asset and in the proportions in
which depreciation expense on the assets is recognised.
Grants related to income are deducted in reporting the
related expense.
V. Significant Accounting Judgements,
Estimates and Assumptions
The preparation of the Company''s financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and 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 future
periods.
Judgements, Estimates and Assumptions
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, are described below. 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.
W. Impairment of non-financial assets
At each Balance Sheet date, an assessment is made of whether
there is any indication of impairment. If any indication exists,
or when annual impairment testing for an asset is required,
the Company estimates the asset''s recoverable amount. An
asset''s recoverable amount is the higher of the assets or
Cash-Generating Unit''s (CGU) fair value less costs of disposal
and its value in use. Recoverable amount 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.
When 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 a pre-tax 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 cost of disposal, recent market transactions are taken
into account. If no such transactions can be identified, an
appropriate valuation model is used.
Mar 31, 2018
Company Overview
DCW Ltd (formally Dhrangadhra Chemical Works Limited), was incorporated in January 1939. The Registered Office of the Company is located at Dhrangadhra, Gujarat - 363315. Its shares are listed in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). It is one of the multi-product, multi-location & heavy chemical manufacturing company. DCW has two manufacturing units located at Dhrangadhra in Gujarat and at Sahupuram in Tamil Nadu.
1. Significant Accounting Policy
1.1. Basis for preparation:
The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (Act) read with Rule 4A of Companies (Accounts) Second Amendment Rules, 2015, Companies (Indian Accounting Standards) Rules, 2015; and the other relevant provisions of the Act and Rules thereunder. The Financial Statements have been prepared under historical cost convention basis except for derivative financial instruments, certain financial assets and financial liabilities which have been measured at fair value at the end of each year reporting period, as stated in the accounting polices set out below.
The Companyâs presentation and functional currency is Indian Rupees (Rs.) and all values are rounded off to the nearest lakhs (INR 00,000), except when otherwise indicated.
1.2. Use of Judgement, Assumptions and Estimates
The preparation of the Companyâs financial statements requires management to make informed judgements, reasonable assumptions and estimates that affect the amounts reported in the financial statements and notes thereto. Uncertainty about these could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the future periods. These assumptions and estimates are reviewed periodically based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement of Profit & Loss in the period in which the estimates are revised and in any future periods affected.
In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the amounts recognized in the financial statements relate to the following areas:
- Financial instruments;
- Useful lives of property, plant & equipment;
- Valuation of inventories;
- Measurement of recoverable amounts of assets / cash-generating units;
- Assets and obligations relating to employee benefits;
- Evaluation of recoverability of deferred tax assets; and
- Provisions and Contingencies.
- Classification of lease as operating or financial lease
- Impairment of non-financial assets
1.3. Current Non Current Classification
Any asset or liability is classified as current if it satisfies any of the following conditions:
I. The asset/liability is expected to be realized/settled in the companyâs normal operating cycle;
II. The asset is intended for sale or consumption;
III. The asset/liability is held primarily for the purpose of trading
IV. The asset/liability is expected to be realized / settled within twelve months after the reporting period;
V. The asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;
VI. In case of liability, the company doesnât have an unconditional right to defer the settlement of liability for at least twelve months after the reporting date.
All the assets and liabilities are classified as non-current.
For the purpose of current / non-current classification of assets and liabilities, the company has ascertained its normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.
a) 2,36,10,000 Equity Shares were issued and allotted on preferential basis to the promoter of the company and FIIâs during 2007-08.
b) During the year 2015-16, 48,80,750 Equity Shares of Rs.2/- each at a premium of Rs.21/- per share were issued and allotted on preferential basis to promoters / promoters group and business associates including relatives of business associates of the company.
c) 1,36,36,363; 37,03,704 and 13,06,000 Equity Shares were issued and allotted on preferential basis to the promoters on conversion of warrants during 2011-12, 2014-15 and 2015-16 respectively.
d) During the year 2017-18, 13,06,000 Nos. of Equity shares allotted on preferential basis to the promoters on conversion of warrants
e) Reconciliation of number of equity shares at the beginning and end of the year
f) Terms / Rights attached to Equity Shares
The Company has only one class of shares referred to as Equity Shares having a par value of Rs.2/- per share. Each share holder of the Equity Share is entitled to one vote per share. The company declared and pays the dividend in Indian Rupees.
Payment of dividend is also made in Foreign Currency to Shareholders outside India.
The final dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.
g) Name of Shareholders holding more than 5% Shares:
LOANS - Security : Banks/ Institutions
Term Loans from Banks and Institutions are secured by a pari-passu first charge by way of hypothecation of movable fixed assets of the Company, including movable machinery spares, stores and further secured by mortgage on all the immovable properties of the Company situated in the states of Tamilnadu and Gujarat on first pari-passu charge basis and second charge on Current Assets. Except windmill assets.
Institutions:
The term loans from Institutions are secured by first charge on moveable properties and assets pertaining to windmill assets in the state of Rajasthan on specific charge basis.
NBFC:
Term loan secured by first Pari Passu Charge on Fixed Assets (Both immovable & movable) of the Company (Both present & future), except Windmill Assets, and second Pari Passu charge on Current Assets of the Company (Both Present & Future).
Deferred Tax Asset on unabsorbed depreciation, unabsorbed business losses and other temporary differences available as per the Income Tax Act, 1961 has been recognized, since it is probable that taxable profit will be available to adjust them in the future years. Unabsorbed depreciation which forms major portion of the Deferred Tax Asset can be carried forward and set off against the profits for unlimited number of years under the Indian Income Tax Act, 1961 and profitability projections based on current margins show sufficient profits for set-off in future.
Reconciliation of effective tax rate as a numerical reconciliation between tax expense and the product of account profit multiplied by the applicable tax rate.
Tax Expenses recognized in the Statement of Profit & Loss / Other Comprehensive Income (OCI) are as below:
*Working capital loans from banks are secured by a first charge by way of hypotehcation and/or pledge of current assets, namely, stocks of raw materials, semi-finished and finished goods, consumable stores and spares including machinery spares not capitalized, bills receivable and book debts and further secured by a second charge by way of hypothecation over all of movable plant and machinery and by way of mortgage by deposit of title deeds over the immovable properties, both present and future, such mortgage to rank second to the mortgages created / to be created in favour of term lenders viz., Banks / Financial Institutions/ NBFC (except windmill assets).
Note: The Company does not expect any outflow in respect of the above contingent liabilities.
* Includes:
i) Sales Tax Assessments of Dhrangadhra Unit are pending for 1994-95, 1995-96, 1997-98, 2004-05, 200506 and 2014-15 to 2016-17. In respect of Sahupuram Unit Central Sales Tax Assessments and Tamil Nadu General Sales tax assessment are completed up to 2010-11.
**Includes:
i) The Commissioners of Customs, Tuticorin and Kandla during the year issued Order rejecting the classification of coal imported by the company during the year 2011 and 2012 as Steam Coal and reclassified the same as Bituminous Coal and demanded differential duty of Rs.1311.31 lakhs along with applicable interest of Rs.490.58 lakhs and imposed penalty of Rs.1309 lakhs. The Company has filed appeal with CESTAT against the said Orders. The appeal is pending with CESTAT. The Company has been legally advised that it has a fair chance of winning the case before CESTAT. Accordingly no provision has been made in the accounts and has been disclosed as contingent liability.
ii) In the matter of Export Duty on Upgraded Benefited Ilmenite classification dispute, the Company has given an undertaking to remit the disputed duty in case; the dispute is decided against the Company by the highest judicial forum. As at 31st March 2017 the duty liability is Rs.2124.36 Lakhs (Previous year - Rs.1971.01 Lakhs). Since the Company has got the favourable order from the adjudicating authority in some of the shipments made by the Company, relating to the same period, the Company is hopeful of getting favourable order in all the shipments where the duty has been demanded by the department.
# Includes:
i) The Tamil Nadu Government vide Government order dated 23-09-1996 issued under TamilNadu Electricity (Taxation & Consumption) Act, 1961, exempted specified industries (including the industry in which the company operates) permanently from payment of Electricity Tax on consumption of power generated captively. The Supreme Court vide order dated 15th May, 2007 held that the withdrawal of the permanent exemption by the Act of 2003 was invalid. In November, 2007 the TamilNadu government passed the TamilNadu tax on consumption or Sale of Electricity (Amendment) Act, amending the Act of 2003 to invalidate the permanent exemption granted with retrospective effect. The writ petition filed by the company against this amendment has been dismissed by the Madras High Court. The SLP filed by the company against the High Court Order has been admitted by the Supreme Court.
The Electrical Inspectorate, Government of Tamil Naduâs vide letter dated 2nd September 2014 informed the Company that the electricity tax exemption would not be applicable to the Company and demanded Electricity Tax of Rs.2026.72 lakhs and interest of Rs.1541.98 lakhs for the period 2003 to 2012.The Company has filed writ petition before the Honâble High Court of Judicature at Madras and has also obtained interim stay of the said demand vide Order dated 22nd September, 2014 on payment of Rs.640 lakhs towards predeposit.
The appeal filed before the Honâble Supreme Court and the writ petition filed before the Honâble Madras High Court are pending for adjudication.
The company has been legally advised and is hopeful of favourable outcome before the Supreme Court on the invalidity of and the retrospective application of the Amending Act of 2003 and in the writ petition filed before the Honâble Madras High Court. An amount of Rs.422.69 lakhs has been provided on a prudent basis in the earlier financial year. No provision is considered necessary by the management for the balance electricity tax demand and has been disclosed as contingent liability.
ii) In the matter of leasehold land in respect of the salt works at Kuda, Dhrangadhra, which is an âOperating Leaseâ, the Honourable Supreme Court has admitted the SLP filed by the Company against the Order of the Gujarat High Court upholding that the lease of the aforesaid land is not permanent and hence is terminable. The Company is confident of succeeding in the Supreme Court.
iii) In the matter of disputed demand of Rs.498.94 lakhs consequent to revision in the lease rent rates fixed by the Tariff Authority for Major Ports (TAMP) from 2006 to 2016 in respect of the port lands taken on lease by the Company from the V. O. Chidambaranar Port Trust, the Company has obtained interim stay from the Honourable High Court of Judicature at Madras vide order dated 01.08.2014. The company is confident of succeeding in this matter.
iv) In the matter of lease rental of land admeasuring 793.39 acres at Sahupuram Works, the assignment deeds in respect of which are yet to be executed by the State Government in favour of the Company. (Details refer note no. 36).
b. Commitments:
i) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for is Rs.366.46 lakhs (31st March 2017: Rs.3,591 lakhs).
ii) In respect of land on lease, the future obligations towards lease rentals under the lease agreements as on 31st March, 2018 amount to Rs.1,077.64 lakhs (31st March 2017: Rs.1,114.80 lakhs)
iii) The Company has given an undertaking for the purposes of obtaining 100% Export Oriented Unit status that it would achieve positive net foreign exchange earnings as prescribed in the EOU Scheme for a period of five years from May 2015. The Company is hopeful of achieving the said parameters and does not expect any liability on this account as on the Balance sheet date.
iv) The company does not have any other commitments.
NOTE 2:
a. Confirmation of balances from some of the Debtors and Creditors, have not been received. Statements of Account/ balance confirmations, wherever received, have been reconciled and impact thereof, in any, has been dealt with to the extent agreed upon by the Company.
b. In Case of material lying with third party, movement of material is recorded and closing balances have been reconciled on the basis of periodical statements and / or subsequent movement of such material, as certified by the Management.
c. In the opinion of the management, current assets, long term loans and advances and other non-current assets have a realizable value in ordinary course of business at least equal to the amounts at which they are stated in the balance sheet.
NOTE 3- LEASE RENTALS FOR NON-CANCELLABLE OPERATING LEASES:
a. Lease rentals are charged to the Statement of profit and loss and maximum obligations on long term non-cancellable operating leases payable as per the rentals stated in the respective lease agreement.
b. The Company has a lease agreement for a period of 30 years (up to March 2047) with V. O. Chidambaranar Port Trust for the land taken on lease for storage VCM. The aggregate future fixed minimum lease payments under the agreement are as under:
c. Lease and sublease payments recognized as an expense in this period, with separate amounts for minimum lease payments, contingent rent and sublease payments.
NOTE 4- FINANCIAL DERIVATIVE INSTRUMENTS:
a. Derivative contracts entered into by the Company and outstanding as on 31st March, 2018 for Hedging currency and interest related risks.
i) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables
Outstanding forward exchange contracts entered into by the company as on 31st March 2018:
b. The Year End Foreign Currency exposures that have not been hedged by a derivative instrument or otherwise are given below:
c. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
NOTE 5:
Land includes a land costing Rs.3.91 lakhs (fair valued at Rs.2380.20 lakhs on transition date) admeasuring 793.39 acres at Sahupuram Works, the assignment deeds in respect of which are yet to be executed by the State Government in favour of the Company.
The Company had remitted the above land cost as per State Government order in the year 1989. The assignment deed of the said land in favour of the Company was not executed by the State Government, demanding double the market value of the land and the State Government demanded lease rent from 1989. As the assignment deed of the land was not executed by the State Government, the Company filed writ petition before the Honourable Madras High Court which ordered the State Government to pass orders on merits on the application seeking the said assignment, filed by the Company and granted interim stay against collection of lease rent.
The State Government vide order dated 31st March 2017 has finally rejected the request for the assignment of land citing certain non-fulfilment of condition of original lease, and ordered to collect the arrears of lease rent from 1989 to till date with 12% interest and also issued orders to repossess the said land. The Company has filed writ petition against the said order before the Honourable Madras High Court which is pending for hearing.
The Company has been legally advised that it has a very good case on the above matter and hence the ownership of the land would eventually be transferred in the name of the Company as per Sec 53A of the Transfer of Property Act. The lease rent demanded has been disclosed under Contingent Liability and therefore the land is treated as âfreeholdâ.
NOTE 6- DISCLOSURE PURSUANT TO IND AS-19 âEMPLOYEE BENEFITSâ:
The Company has classified the various benefits provided to employees as under:
a. Defined Contribution Plans:
The Company has recognized the following amounts in the Statement of Profit & Loss which are included under contribution to Provident Fund and Other Funds:
The Rules of the Companyâs Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest of at the rate declared on Employees Provident Fund by the Government under the Employees Provident Fund Scheme, for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company.
NOTE NO 7- EXPENDITURE INCURRED ON CORPORATE SOCIAL RESPONSIBILITY(CSR) ACTIVITIES:
a. Gross amount required to be spent during the year is Rs.31.35 Lakhs. (P.Y. 142 Lakhs)
b. Amount spent during the year:
NOTE 8- FAIR VALUE MEASUREMENTS:
The following disclosures are made as required by Ind AS -113 pertaining to Fair value measurement:
a. Accounting classification and fair values
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
b. Measurement of fair values:
The following tables shows the valuation techniques used in measuring Level 2 fair values.
c. Financial risk management
The Company has exposure to the Credit risk, Liquidity risk and Market risk arising from financial instruments.
Risk Management Framework: The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The Board of Directors has established the Risk Management Committee (RMC), which is responsible for developing and monitoring the Companyâs risk management policies.
The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits to control / monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.
The Audit Committee oversees how management monitors compliance with the companyâs risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted by internal audit. Internal audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is approved by the Board of Directors.
d. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables.
Trade receivables: The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period.
The following table provides information about the exposure to credit risk and measurement of loss allowance using Life time expected credit loss for trade receivables:
Cash and cash equivalents:
The Company held cash and cash equivalents of Rs.355.01 lakhs as at 31 March 2018 (Prev Year: Rs.157.76 lakhs). The cash and cash equivalents are held with reputed banks.
e. Liquidity Risk:
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.
f. Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices, will affect the Companyâs income or the value of its financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables, long term debt and commodity prices. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and commodity price risk.
Interest rate risk:
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through the Statement of profit and loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Exposure to Interest rate risk:
Companyâs interest rate risk arises from borrowings. The interest rate profile of the Companyâs interest-bearing long term financial instruments is as follows:
Cash flow sensitivity analysis for variable-rate instruments: A reasonably possible decrease by 100 basis points in interest rates at the reporting date would have positive impact (before tax) by Rs.478.75 lakhs and Rs.479.99 lakhs for the outstanding balance as on 31.3.2018 and 31.3.2017 respectively. Similarly a reasonable possible increase by 100 basis points in interest rate would have negative impact (before tax) by same amounts.
Currency risk:
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee.
To the extent the exposures on purchases and borrowings are not economically hedged by the foreign currency denominated receivables, the Company uses derivative instruments, like, foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange and principal only swap rates. Company does not use derivative financial instruments for trading or speculative purposes.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies including the use of derivatives like foreign exchange forward contracts to hedge exposure:
Exposure to currency risk:
The currency profile of financial assets and financial liabilities as on 31st March 2018 & 31st March 2017 are as below:
Sensitivity analysis:
A reasonably possible strengthening of the Indian Rupee against USD at March 31 by 4% would have positive impact (before tax) by Rs.931.54 lakhs and Rs.1,075.74 lakhs for the net outstanding balance as on 31.3.2018 and 31.3.2017 respectively. Similarly a reasonably possible weakening of the India Rupee against USD would have a negative impact (before tax) by same amounts.
Capital Management
For the purpose of the Companyâs capital management, capital includes issued capital, convertible instruments and reserves. The primary objective of the Companyâs Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments, if any, required in the light of the current economic environment and other business requirements.
Note 9. Standards Issued but not yet effective:
The standard issued, but not yet effective up to the date of issuance of the company financial statement is disclosed below. The Company intends to adopt the standard when it becomes effective.
Amendments to Ind AS 7, Statement of Cash flows
The amendment to Ind AS 7 introduces an additional disclosure that enables users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. Management is of the view that the amendment will have impact only on disclosures in relation to cash flow statement within the financial statements.
IND AS 115 Revenue from Contracts with Customers
IND AS 115 was issued in February 2015 and establishes a five step model to account for revenue arising from contracts with customers. Under IND AS 115 revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled for transferring goods or services to a customer. The new revenue standard will supersede the current revenue recognition requirements under IND AS. The standard comes into force from accounting period commencing on or after 1st April, 2018. The Company will adopt the new standard on the required effective date. The Company is in process of examining the applicability of the standard.
Amendments to Ind AS 102, Share Based payments
The amendment is not relevant for the Company as it does not have any cash-settled share based payments or share based payments with a net-settled feature
Note 10.
The standalone financial statements were authorised for issue in accordance with the resolution passed by the Board of Directors on 29th May 2018.
Note 11.
The figures of previous year have been rearranged & regrouped were ever necessary and / or practicable to make them comparable with those of the current year.
Mar 31, 2016
"Money received against Share Warrants:
13,06,000 convertible warrants out of 26,12,000 have been issued & allotted to promoters during the year. The Warrants are convertible into Equity Shares in one or more tranches within 18 months from the date of their allotment. Each Warrant will be convertible into 1 (one) Equity Share of par value of Rs.2 each at an issue price of Rs.23 per equity share (including premium of Rs. 21 per equity share). 25% of the issue price of the Warrants will be paid on the date of allotment of the Warrants. The balance 75% of the issue price of the Warrants is payable at the time of allotment of the Equity Shares and non-payment would entail in forfeiture of the amount paid."
LOANS - Security : Banks/ Institutions
Term Loans and External Commercial Barrowings from Banks and Institutions are secured by a pari-passu first charge by way of hypothecation of movable fixed assets of the Company, including movable machinery spares, stores and further secured by mortgage on all the immovable properties of the Company situated in the states of Tamilnadu and Gujarat on first pari passu charge basis and second charge on Current Assets.
LOANS - Security Working Capital
Loans from Banks Working Capital facilities are secured by a first charge by way of hypothecation and/or pledge of current assets, namely, stocks of materials, semi-finished and finished goods, consumable stores and spares including machinery spares not capitalized, bills receivable and book debts and further secured by a second charge by way of hypothecation over all of movable plant and machinery and by way of mortgage by deposit of title deeds over the immovable properties, both present and future, such mortgage to rank second to the mortgages created/to be created in favour of term loan lenders viz., Banks / Financial Institution.
Notes11
1 The Depreciation charge on the assets revalued on 31.03.1993 is more by Rs. 27.52 Lacs ( Previous year Rs. 46.18 Lacs) than the depreciation charge thereon under Companies Act, 201 3 and the same is met by drawing from Revaluation Reserve.
2 The Company opted for accounting foreign exchange difference on realignment of long term foreign currency loan related to acquisition of depreciable capital assets, as per AS 11 amended by the Companies (Accounting Standard ) Amendment Rules 2009. Accordingly exchange difference of Rs. 51.37 Lacs (Previous Year Rs. 116.92 Lacs) relating to current year has been added to the cost of fixed assets and depreciation had been charged to Profit & Loss Account.
3 Building includes Rs. 523.06 Lacs being cost of ownership flats and office accommodation in Co-operative Societies and a Limited Company against which the company holds shares of the face value of Rs. 0.77 Lacs in Co-operative Societies and the Limited Company.
4 Assignment deeds in respect of 9.13 acres of land at Caustic Soda Division, transferred by Central Government to the State Government, are yet to be executed by the State Government in favour of the Company.
5 Land, Building and Plant & Machinery located at Sahupuram Works (other than PVC Division) were revalued on 31 st March 1993.
6 The Company exercised the option to purchase 793.39 acres of land leased by the State Government at Sahupuram works. Assignment deeds in respect of the said land is yet to be executed by the State Government in favour of the Company.
7 Encroachers have occupied some portion of the land belonging to the company atSahupuram. Efforts are being made to evict them.
8 Previous Period figures have been regrouped/rearranged to match with the current year.
NOTE NO 9: Commitments
a) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for is Rs. 9,086 lacs (previous year Rs. 13,972 lacs).
b) In respect of land on lease, the future obligations towards lease rentals under the lease agreements as on 31st March, 2016 amount to Rs. 35.90 lacs (previous year Rs. 42.10 lacs).
c) The Company has given an undertaking for the purposes of obtaining 100% Export Oriented Unit status that it would export Synthetic Iron Oxide Pigment and Calcium Chloride to the extent of USD 121000 (Rs.80,223 lacs) by 20th May 2020. The Company has exported Rs 339.78 lacs of Synthetic Iron Oxide Pigment till 31st March, 2016.
d) The company does not have any other commitments.
NOTE NO. 10:
a) Consignment sales and expenses are incorporated on the basis of sale notes when received from consignees.
b) Assets and liabilities are classified as current and non-current based on the terms of the contract where available and based on the judgment of the management in other cases.
c) Confirmation of balances from some of the Debtors and Creditors, have not been received.
d) In the opinion of the management, current assets, long term loans and advances and other noncurrent assets have a realizable value in ordinary course of business at least equal to the amounts at which they are stated in the balance sheet.
e) Other Long Term Liabilities represents security deposits received towards sale of CPVC.
NOTE NO. 11:
Sales Tax Assessments of Dhrangadhra Unit are pending for 1994-95, 1995-96, 1997-98, 2004-05, 2005-06 and 2011-12 to 2014-15. In respect of Sahupuram Unit Central Sales Tax Assessments and Tamil Nadu General Sales tax assessment are completed up to 2010-11.
NOTE NO. 35:
Financial Derivative Instruments
a. Derivative contracts entered into by the Company and outstanding as on 31st March, 2016 for Hedging currency and interest related risks
Nominal amount of derivative contracts entered by the company and outstanding as on 31st March, 2016 amount to US$ NIL. (Previous year US$ 3.61 mn.) Category wise break up is given below:
b. Foreign Currency payables and receivables that are not hedged by derivative instruments as on 31st March, 2016, amount to US$ 40.72 mn. (Previous year US$ 40.44 mn.)
c. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses
NOTE NO. 12:
a. Based on the report of a chartered engineer, the Company is of the view that the Company does not have significant component whose useful life is different from the useful life of the main asset.
b. During the year the Company has changed the accounting policy with regard to export benefits such as MEIS LICENCE from receipt basis to accrual basis. This change has resulted in increase in the profit for the year by Rs. 45 lacs with corresponding increase in the Reserves & Surplus.
NOTE NO. 13:
a. The Company has during the year capitalized Calcium Chloride plant at Soda Ash division.
b. The Company has commenced commercial production in the Synthetic Iron Oxide Pigment (SIOP) Plant during the year and obtained Letter of Permission which is valid up to 20.05.2020 from the Government of India, Ministry of Commerce and Industry for manufacture and export of Synthetic Iron Oxide Pigment and Calcium Chloride under 100% EOU Scheme. The Company has started producing Calcium Chloride at SIOP Plant from May 2016.
NOTE NO. 14:
a. The Tamil Nadu Government vide Government order dated 23-09-1996 issued under TamilNadu Electricity (Taxation & Consumption) Act, 1961, exempted specified industries (including the industry in which the company operates) permanently from payment of Electricity Tax on consumption of power generated captively. The Supreme Court vide order dated 15th May, 2007 held that the withdrawal of the permanent exemption by the Act of 2003 was invalid. In November, 2007 the TamilNadu government passed the TamilNadu tax on consumption or Sale of Electricity (Amendment) Act, amending the Act of 2003 to invalidate the permanent exemption granted with retrospective effect. The writ petition filed by the company against this amendment has been dismissed by the Madras High Court. The SLP filed by the company against the High Court Order has been admitted by the Supreme Court.
The Electrical Inspectorate, Government of Tamil Nadu''s vide letter dated 2nd September 2014 informed the Company that the electricity tax exemption would not be applicable to the Company and demanded Electricity Tax of Rs.2026.72 lacs and interest of Rs.1541.98 lacs for the period 2003 to 2012.The Company has filed writ petition before the Hon''ble High Court of Judicature at Madras and has also obtained interim stay of the said demand vide Order dated 22nd September, 2014 on payment of Rs.640 lacs towards pre-deposit.
The Special Leave Application filed before the Hon''ble Supreme Court and the writ petition filed before the Hon''ble Madras High Court are pending for adjudication.
The company has been legally advised and is hopeful of favorable outcome before the Supreme Court on the invalidity of and the retrospective application of the Amending Act of 2003 and in the writ petition filed before the Hon''ble Madras High Court. An amount of Rs.422.69 lacs has been provided on a prudent basis in the earlier financial year. No provision is considered necessary by the management for the balance electricity tax demand and has been disclosed as contingent liability.
b. In the matter of leasehold land in respect of the salt works at Kuda, Dhrangadhra, the Honourable Supreme Court has admitted the SLP filed by the Company against the Order of the Gujarat High Court upholding that the lease of the aforesaid land is not permanent and hence is terminable. The Company is confident of succeeding in the Supreme Court.
c. The Commissioners of Customs, Tuticorin and Kandla during the year issued Order rejecting the classification of coal imported by the company during the year 2011 and 2012 as Steam Coal and reclassified the same as Bituminous Coal and demanded differential duty of Rs.1311.31 lacs along with applicable interest of Rs.341.34 lacs and imposed penalty of Rs.1309 lacs. The Company has filed appeal with CESTAT against the said Orders. The appeal is pending with CESTAT. The Company has been legally advised that it has a fair chance of winning the case before CESTAT. Accordingly no provision has been made in the accounts and has been disclosed as contingent liability.
d. In the matter of custom duty on imported Calciner, the Hon''ble Gujarat High Court, has vide order dated 15th December, 2005, partly allowed company''s civil application for refund of Rs.41.48 lacs, to the extent of Rs.17.50 lacs, that has since been received and denied claim for refund of balance Rs. 23.98 lacs on account of unjust enrichment. The Company has filed special leave petition before Hon''ble Supreme Court in this regard. The case is pending for hearing.
e. In the matter of Export Duty on Upgraded Benefited Limonite classification dispute, the Company has given an undertaking to remit the disputed duty in case; the dispute is decided against the Company by the highest judicial forum. As at 31st March 2016 the duty liability is Rs.1971.01 Lacs. Since the Company has got the favorable order from the adjudicating authority in some other shipments made by the Company, relating to the same period, the possibility of outflow of resources in this matter is considered remote.
f. In the matter of disputed demand of Rs.443.40 lacs consequent to revision in the lease rent rates fixed by the Tariff Authority for Major Ports (TAMP) from 2006 to 2016 in respect of the port lands taken on lease by the Company from the V. O. Chidambaranar Port Trust, the Company has obtained interim stay from the Honourable High Court of Judicature at Madras vide order dated 01.08.2014. Accordingly no provision is considered necessary by the Management for the same and has been disclosed as Contingent Liability.
NOTE NO. 15:
Disclosure pursuant to Accounting Standard - 15 (Revised) "Employee Benefits"
a. Effective 1st April''07, the company has adopted Accounting Standard 15 (revised 2005) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employees as under:
b. Defined Contribution Plans:
NOTE NO. 16:
Expenditure incurred on Corporate Social Responsibility (CSR) activities:
(a) Gross amount required to be spent during the year is Rs. 142.00 Lacs
(b) Amount spent during the year:
NOTE NO. 17:
Previous year figures are regrouped to match with current years grouping.
Mar 31, 2015
A) 2,36,10,000 Shares were issued and allotted on preferential basis to
the promoter of the company and FII''s during 2007-2008
b) 1,36,36,363 & 37,03,361 Shares were issued and allotted to the
promoters on conversion of warrants issued on preferential basis to
promoters group during 2011-2012 & 2014-2015 respectively.
c) Name of Share Holders holding more than 5% shares
LOANS - Security : Banks/ Institutions
Term Loans and External Commercial Barrowings from Banks and
Institutions are secured by a pari-passu first charge by way of
hypothecation of movable fixed assets of the Company, including movable
machinery spares, stores and further secured by mortgage on all the
immovable properties of the Company situated in the states of Tamilnadu
and Gujarat on first pari passu charge basis and second charge on
Current Assets.
Institutions:
The term loans from IREDA is secured by first charge on moveable
properties and assets pertaining to windmill assets in the state of
Rajasthan on specific charge basis.
NBFC:
Term loan from NBFC are secured by creation of charge on all the assets
purchased under the loan.
Working Capital
Loans from Banks Working Capital facilities are secured by a first
charge by way of hypothecation and/or pledge of current assets, namely,
stocks of materials, semi-finished and finished goods, consumable
stores and spares including machinery spares not capitalized, bills
receivable and book debts and further secured by a second charge by way
of hypothecation over all of movable plant and machinery and by way of
mortgage by deposit of title deeds over the immovable properties, both
present and future, such mortgage to rank second to the mortgages
created/to be created in favour of term loan lenders viz., Banks /
Financial Institution.
NOTE "2"
A. CONTINGENT LIABILITIES NOT PROVIDED FOR:
1 Disputed Sales Tax Demands 3,271.89 4,100.39
2 Disputed Excise/Service Tax Demands 635.61 488.15
3 Disputed Customs Demands 3,121.26 321.18
4 Company''s contribution to ESI not made
pursuant to petitions for
exemption pending before High Court. 156.57 187.01
5 Lease Rent, Local Cess, Octroi,
Interest on Octroi
Surcharge, Stamp Duty, Water and
Electricity duty 8,472.34 4,797.97
6 Disputed Industrial relations matters 521.96 523.96
B. Claims not acknowledged as debts: - -
Total 16,179.63 10,418.66
C. GUARANTEE AS A MEMBER OF THE ALKALI MFG.
ASSN. ( A Company Limited by Guarantee) Rs 500 Rs 500
NOTE NO 3:
Commitments
a) Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 13,972 lacs (previous year Rs.
15,213 lacs).
b) In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2015 amount to Rs.
42.10 lacs (previous year Rs. 60.44 lacs).
c) The company does not have any other commitments.
NOTE NO. 32:
a) Consignment sales and expenses are incorporated on the basis of sale
notes when received from consignees.
b) Assets and liabilities are classified as current and non-current
based on the terms of the contract where available and based on the
judgment of the management in other cases.
c) Confirmation of balances from some of the Debtors and Creditors,
have not been received.
d) In the opinion of the management, current assets, long term loans
and advances and other noncurrent assets have a realizable value in
ordinary course of business at least equal to the amounts at which they
are stated in the balance sheet.
e) Other Long Term Liabilities represents security deposits towards
sale of CPVC.
NOTE NO. 4:
RELATED PARTY INFORMATION.
(I) Relationships:
(a) The related parties where control exists
Note:
Related party relationships on the basis of the requirements of
Accounting Standard (AS) - 18 disclosed above is as identified by the
company and relied upon by the auditors.
Sales Tax Assessments of Dhrangadhra Unit are pending for 1994-95,
1995-96, 1997-98, 2004-05, 2005-06 and 2010-11 to 2012-13. In respect
of Sahupuram Unit Central Sales Tax Assessments and Tamil Nadu General
Sales tax assessment are completed up to 2010-11.
NOTE NO. 5:
Financial Derivative Instruments
a. Derivative contracts entered into by the Company and outstanding as
on 31st March, 2015 for Hedging currency and interest related risks
Nominal amount of derivative contracts entered by the company and
outstanding as on 31st March, 2015 amount to US$ 3.61 mn. (Previous
year US$ 7.61 mn.) Category wise break up is given below:
b. Foreign Currency payables and receivables that are not hedged by
derivative instruments as on 31st March, 2015, amount to US$ 40.44 mn.
(Previous year US$ 41.63 mn.)
c. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses
During the year ended 31st March, 2015, the company has reassessed the
remaining useful lives of fixed assets with effect from 1st April 2014
in accordance with Part A of Schedule II to the Companies Act, 2013. As
a result of the same, depreciation for the year is lower by Rs. 891.67
lacs. For assets that had completed their useful lives as at 1st April
2014, the net residual value of Rs. 704.38 lacs has been adjusted to
Statement of Profit and Loss.
NOTE NO. 6:
a. Since the equipments meant for Calcium Chloride plant at Soda Ash
division are capable of being used for manufacture of salt, the
expenditure incurred on the same is shown under Capital Work in
Progress.
b. The work on Synthetic Iron Oxide Pigment (SIOP) Project has been
completed and commercial production has started with effect from May
2015. The company has also filed the declaration of commercial
production with the EOU authorities. Hence the expenditure incurred on
the project including interest, trial run expenditure less sale of
products manufactured during the trial run, administration expenditure
relating to the construction of the project etc., has been shown under
Capital Work in Progress.
NOTE NO. 7:
a) The Tamil Nadu Government vide Government order dated 23-09-1996
issued under TamilNadu Electricity (Taxation & Consumption) Act, 1961,
exempted specified industries (including the industry in which the
company operates) permanently from payment of Electricity Tax on
consumption of power generated captively. The Supreme Court vide order
dated 15th May, 2007 held that the withdrawal of the permanent
exemption by the Act of 2003 was invalid. In November, 2007 the
TamilNadu government passed the TamilNadu tax on consumption or Sale of
Electricity (Amendment) Act, amending the Act of 2003 to invalidate the
permanent exemption granted with retrospective effect. The writ
petition filed by the company against this amendment has been dismissed
by the Madras High Court. The SLP filed by the company against the High
Court Order has been admitted by the Supreme Court.
The Electrical Inspectorate, Government of Tamil Nadu''s vide letter
dated 2nd September 2014 informed the Company that the electricity tax
exemption would not be applicable to the Company and demanded
electricity tax of Rs.2026.72 lacs and interest of Rs.1541.98 lacs for
the period 2003 to 2012.The Company has filed writ petition before the
Hon''ble High Court of Judicature at Madras and has also obtained
interim stay of the said demand vide Order dated 22nd September, 2014
on payment of Rs.640 lacs towards pre-deposit.
The Special Leave Application filed before the Hon''ble Supreme Court
and the writ petition filed before the Hon''ble Madras High Court are
pending for adjudication.
The company has been legally advised and is hopeful of favourable
outcome before the Supreme Court on the invalidity of and the
retrospective application of the Amending Act of 2003 and in the writ
petition filed before the Hon''ble Madras High Court. An amount of
Rs.422.69 lacs has been provided on a prudent basis. No provision is
considered necessary by the management for the balance electricity tax
demand and has been disclosed as contingent liability.
b) In the matter of leasehold land in respect of the salt works at
Kuda, Dhrangadhra, the Honourable Supreme Court has admitted the SLP
filed by the Company against the Order of the Gujarat High Court
upholding that the lease of the aforesaid land is not permanent and
hence is terminable. The Company is confident of succeeding in the
Supreme Court.
c) The Commissioners of Customs, Tuticorin and Kandla during the year
issued Order rejecting the classification of coal imported by the
company during the year 2011 and 2012 as Steam Coal and reclassified
the same as Bituminous Coal and demanded differential duty of
Rs.1311.31 lacs along with applicable interest of Rs.341.34 lacs and
imposed penalty of Rs.1309 lacs. The Company has filed appeal with
CESTAT against the said Orders. The appeal is pending with CESTAT. The
Company has been legally advised that it has a fair chance of winning
the case before CESTAT. Accordingly no provision has been made in the
accounts and has been disclosed as contingent liability.
d) In the matter of custom duty on imported calciner, the Hon''ble
Gujarat High Court, has vide order dated 15th December, 2005, partly
allowed company''s civil application for refund of Rs.41.48 lacs, to the
extent of Rs.17.50 lacs, that has since been received and denied claim
for refund of balance Rs. 23.98 lacs on account of unjust enrichment.
The Company has filed special leave petition before Hon''ble Supreme
Court in this regard. The case is pending for hearing.
e) In the matter of Export duty on Upgraded Benefited Ilmenite
classification dispute, the Company has given an undertaking to remit
the disputed duty in case, the dispute is decided against the Company
by the highest judicial forum. As at 31st March 2015 the duty liability
is Rs.1553.50 Lacs. Since the Company has got the favourable order from
the adjudicating authority in some other shipments made by the Company,
relating to the same period, the possibility of outflow of resources in
this matter is considered remote.
NOTE NO. 8:
The details of amounts outstanding to Micro, Small and Medium
Enterprises based on information available with the Company is as
under:
NOTE NO. 9:
Disclosure pursuant to Accounting Standard - 15 (Revised) "Employee
Benefits"
a. Effective 1st April''07, the company has adopted Accounting Standard
15 (revised 2005) "Employee Benefits" issued by ICAI. The Company has
classified the various benefits provided to employees as under:
b. Defined Contribution Plans:
The Company has recognized the following amounts in the Profit & Loss
Account which are included under contribution to Provident Fund and
Other Funds:
The Rules of the Company''s Provident Fund administered by a Trust
require that if the Board of Trustees are unable to pay interest of at
the rate declared on Employees Provident Fund by the Government under
the Employees Provident Fund Scheme, for the reason that the return on
investment is less or for any other reason, then the deficiency shall
be made good by the Company.
NOTE NO. 10 :
Expenditure incurred on Corporate Social Responsibility (CSR)
activities is Rs. 63.60 lacs. NOTE NO. 45 :
Previous year figure are regrouped to match current year grouping
Note 1: Significant Accounting Policies and Practices
1 The Company is yet to commence its commercial operations. Considering
no immediate future business plans the financial statements are not
prepared on a going concern basis and accordingly, Current assets and
Current liabilities are stated at the values at which they are
realizable / payable. In view of the above, the statement of profit and
loss and Cash Flow statement has not been prepared. The Company had net
cash outflow of Rs. 0.54 lac during the year, being the decrease in
balance with bank at the year end compared with the balance at the
beginning of the year.
2 Expenses incurred during the year are shown under the head "Other
Non-Current Assets" in the Balance Sheet.
3 Since the Company has not commenced its commercial operations and
there are no Fixed Asstes, other clauses are not applicable.
4 Related party relationships on the basis of the requirements of
Accounting Standard (AS) - 18 is as identified by the company and
relied upon by the auditors.
Name of the related parties Nature of relationship
DCW Limited Holding company
Sahu Brothers Pvt. Ltd., Entities in which key management personnel
Jain Sahu Brothers Properties Pvt. Ltd., and / or their relatives have
significant influence.
Dhrangadhra Trading Company Pvt. Ltd.,
5 Previous years figures have been regrouped wherever necessary.
Mar 31, 2014
NOTE NO. 1: Commitments
a) Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 15,213 lacs (previous year Rs.
28,594 lacs).
b) In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2014 amount to Rs.
60.44 lacs (previous year Rs. 58.64 lacs).
c) The company does not have any other commitments.
NOTE NO. 2:
a) Consignment sales and expenses are incorporated on the basis of sale
notes when received from consignees.
b) Assets and liabilities are classified as current and nonÂcurrent
based on the terms of the contract where available and based on the
judgment of the management in other cases.
c) Confirmation of balances from some of the Debtors and Creditors,
have not been received.
d) In the opinion of the management, current assets, long term loans
and advances and other nonÂcurrent assets have a realizable value in
ordinary course of business at least equal to the amounts at which they
are stated in the balance sheet.
NOTE NO. 3:
RELATED PARTY INFORMATION.
(i) Relationships:
(a) The related parties where control exists
Name of the related parties
DCW Pigments Ltd
Double Dot Finance Ltd.
Crescent Finstock Ltd.
Sahu Brothers Pvt. Ltd.
Jain Sahu Brothers Properties Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Crescent Holdings Pvt. Ltd.
Nature of relationship
Subsidiary
Entities in which key
management personnel & / or
their relatives have significant
influence
(b) Key Management Personnel
Shri Pramod Kumar Jain Chairman & Managing Director
Shri Bakul Jain Managing Director
Shri Vivek Jain Managing Director
Shri Mudit Jain Managing Director
Shri Ashish Jain Sr. President
Smt. Paulomi Jain President
Smt. Malti Jain President
Shri Saatvik Jain President
Note:
Related party relationships on the basis of the requirements of
Accounting Standard (AS) Â 18 disclosed above is as identified by the
company and relied upon by the auditors
NOTE NO. 4:
Sales Tax Assessments of Dhrangadhra Unit are pending for 1994Â95,
1995Â96, 1997Â98, 2004Â05, 2005Â06 and 2010Â11 to 2012Â13 (except for
1996Â97, 1998Â99 to 2003Â04 and 2006Â07 to 2009-10 which have been
completed). In respect of Sahupuram Unit Central Sales Tax Assessments
and Tamil Nadu General Sales tax assessment are completed up to
2009Â10.
NOTE NO. 5:
Financial Derivative Instruments
a. Derivative contracts entered into by the Company and outstanding as
on 31st March, 2014. For Hedging currency and interest related risk
Nominal amount of derivative contracts entered by the company and
outstanding as on 31st March, 2014 amount to US$ 7.61 mn. (Previous
year US$ 10.98 mn.) Category wise break up is given below:
b. Foreign Currency payables that are not hedged by derivative
instruments as on 31st March, 2014, amount to US$ 41.63 mn. (Previous
year US$ 36.88 mn.)
NOTE NO. 6:
In the matter of custom duty on imported calciner, the Hon''ble Gujarat
High Court, has vide order dated 15th December, 2005, partly allowed
company''s civil application for refund of Rs. 41.48 lacs, to the extent
of Rs. 17.50 lacs, that has since been received and denied claim for
refund of balance Rs. 23.98 lacs on account of unjust enrichment. The
Company has filed special leave petition before Hon''ble Supreme Court
in this regard. The case is pending for hearing.
NOTE NO. 7:
Capital expenditure on Calcium Chloride plant at Soda Ash division are
being held under capital work in progress, since management intends to
use the same in the Soda Ash unit in due course as indicated in Para 6
of the Directors Report.
NOTE NO. 8
a. The Tamil Nadu Government vide Government order dated 23-09-1996
issued under Tamil Nadu Electricity (Taxation & Consumption) Act, 1961,
exempted specified industries (including the industry in which the
company operates) permanently from payment of electricity tax on
consumption of power generated captively. The Supreme Court vide order
dated 15th May, 2007 held that the withdrawal of the permanent
exemption by the Act of 2003 was invalid. In November, 2007 the Tamil
Nadu government passed the Tamil Nadu tax on consumption or Sale of
Electricity (Amendment) Act, amending the Act of 2003 to invalidate the
permanent exemption granted with retrospective effect.
b. The writ petitions filed by the company against this amendment
having been dismissed by the Madras High Court, the company has filed
an SLP before the Supreme Court challenging the High Court order. The
company has been legally advised and is hopeful of favourable outcome
before the Supreme Court on the invalidity of and the retrospectively
of the Amending Act of 2003. Accordingly no provision is considered
necessary by the management for electricity tax relating to the period
up to June 2012 aggregating Rs. 1165.08 crs. For subsequent periods
provision for the liability has been made in the accounts.
c. In the matter of leasehold land in respect of the salt works at
Kuda, Dhrangadhra, the Honourable Supreme Court has admitted the SLP
filed by the Company against the Order of the Gujarat High Court
upholding that the lease of the aforesaid land is not permanent and
hence is terminable. The Company is confident of succeeding in the
Supreme Court.
NOTE NO. 9:
The details of amounts outstanding to Micro, Small and Medium
Enterprises based on information available with the Company is as
under:
NOTE NO. 10:
Disclosure pursuant to Accounting Standard  15 (Revised) "Employee
Benefits"
a. Effective 1st April''07, the company has adopted Accounting Standard
15 (revised 2005) "Employee Benefits" issued by ICAI. The Company has
classified the various benefits provided to employees as under:
b. Defined Contribution Plans:
The Rules of the Company''s Provident Fund administered by a Trust
require that if the Board of Trustees are unable to pay interest at the
rate declared on Employees Provident Fund by the Government under the
Employees Provident Fund Scheme, for the reason that the return on
investment is less or for any other reason, then the deficiency shall
be made good by the Company
1. Name of Subsidiary DCW Pigments Limited
2. Financial year ended
31st March 2014
3. Holding Company''s Interest: Equity Capital:
Number of Shares of Rs. 10/- each 50,000
Extent of Holding 100%
4. The net aggregate of Profit/(Loss) of the Subsidiary Company
in so far as it concerns the members of the Holding Company :
(a) Not dealt with in the accounts of the Company for the year ended
31st March, 2014:
(1) For the Subsidiary''s financial year ended as in two above
(2) For the previous financial years of the Subsidiary
(1) For the Subsidiary''s financial year ended as in 2 above
(2) For the previous financial years of the Subsidiary
Mar 31, 2013
NOTE NO. 1 : Commitments
a) Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 28,594 lacs (previous year Rs.
32,998.53 lacs).
b) In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2013 amount to Rs.
58.64 lacs (previous year Rs. 55.28 lacs).
c) The company does not have any other commitments.
NOTE NO. 2 :
a) Consignment sales and expenses are incorporated on the basis of sale
notes when received from consignees.
b) Assets and liabilities are classified as current and nonÂcurrent
based on the terms of the contract where available and based on the
judgement of the management in other cases.
c) Confirmation of balances from some of the Debtors and Creditors,
have not been received.
d) In the opinion of the management, current assets, long term loans
and advances and other nonÂcurrent assets have a realizable value in
ordinary course of business at least equal to the amounts at which they
are stated in the balance sheet.
NOTE NO. 3 :
RELATED PARTY INFORMATION :
(i) Relationships:
(a) Subsidiary Companies
DCW Pigments Ltd.
(b) Where control exists
Double Dot Finance Ltd.
Crescent Finstock Ltd.
Sahu Brothers Pvt. Ltd.
Jain Sahu Brothers Properties Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Crescent Holdings Pvt. Ltd.
NOTE NO. 4 :
Sales Tax Assessments of Dhrangadhra Unit are pending for 1994Â95,
1995Â96, 1997Â98 and 2004Â05, 2005Â06 and 2009Â10 to 2011Â12 (except
for 1996Â97, 1998Â99 to 2003Â04 and 2006Â07,2007Â08 and 2008Â09 which
have been completed). In respect of Sahupuram Unit Central Sales Tax
Assessments and Tamilnadu General Sales tax assessment are completed up
to 2008Â09.
NOTE NO. 5 :
Financial Derivative Instruments
a. Derivative contracts entered into by the Company and outstanding as
on 31st March, 2013. For Hedging currency and interest related risks
Nominal amount of derivative contracts entered by the company and
outstanding as on 31st March, 2013 amount to US$ 10.98 mn. (Previous
year US$ 15.02 mn.) Category wise break up is given below:
b. Foreign Currency payables that are not hedged by derivative
instruments as on 31st March, 2013, amount to US$ 36.88 mn. (Previous
year US$ 49.84 mn.)
NOTE NO. 6 :
In the matter of custom duty on imported calciner, the Hon''ble Gujarat
High Court, has vide order dated 15th December, 2005, partly allowed
company''s civil application for refund of Rs. 41.48 lacs, to the extent
of Rs. 17.50 lacs, that has since been received and denied claim for
refund of balance Rs. 23.98 lacs on account of unjust enrichment. The
Company has filed special leave petition before Hon''ble Supreme Court
in this regard. The case is pending for hearing.
NOTE NO. 7 :
Capital expenditure on Calcium Chloride plant at Soda Ash division are
being held under capital work in progress, since management intends to
use the same in the Soda Ash unit in due course as indicated in Para 6
of the Directors Report.
NOTE NO. 8 :
a. The Tamilnadu Government had passed fresh legislation imposing
Electricity Tax on captive power generated with retrospective effect
from 2003. The Honourable Supreme Court has admitted the SLP filed by
the Company along with other captive power producers against the order
of the Madras High Court upholding the validity of the legislation. The
company has been legally advised that the company has a fair chance of
succeeding in the Supreme Court and hence, no provision is considered
necessary.
b. The Commercial tax officer, Dhrangdhara has raised a demand of Rs
1120.77 lacs under the Central Sales Tax Act, pertaining to the
Assessment Year 2008Â09 on account of error in the forms obtained from
a customer. The company has filed appeal with the appellate authorities
and is confident of obtaining the corrected forms from the customer and
therefore does not expect any liability on the account.
c. In the matter of leasehold land in respect of the salt works at
Kuda, Dhrangadhra, the Honourable Supreme Court has admitted the SLP
filed by the Company against the Order of the Gujarat High Court
upholding that the lease of the aforesaid land is not permanent and
hence is terminable. The Company is confident of succeeding in the
Supreme Court.
NOTE NO. 9 :
Disclosure pursuant to Accounting Standard  15 (Revised) "Employee
Benefits"
a. Effective 1st April''07, the company has adopted Accounting Standard
15 (revised 2005) " Employee Benefits" issued by ICAI. The Company has
classified the various benefits provided to employees as under:
b. Defined Contribution Plans:
The Company has recognized the following amounts in the Profit & Loss
Account which are included under contribution to Provident Fund and
Other Funds:
The Rules of the Company''s Provident Fund administered by a Trust
require that if the Board of Trustees are unable to pay interest of at
the rate declared to Employees Provident Fund by the Government under
the Employees Provident Fund Scheme, for the reason that the return on
investment is less or for any other reason, then the deficiency shall
be made good by the Company.
NOTE NO. 10 :
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2012
NOTE NO. 1 :
Commitments
a) Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 32998.53 lacs (previous year Rs.
16871.42 lacs).
b) In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2012 amount to Rs.
55.28 lacs (previous year Rs. 74.11 lacs).
c) The company does not have any other commitments.
NOTE NO. 2 :
a) Consignment sales and expenses are incorporated on the basis of sale
notes when received from consignees.
b) Assets and liabilities are classified as current and nonÂcurrent
based on the terms of the contract where available and based on the
judgment of the management in other cases.
c) Confirmation of balances from some of the Debtors and Creditors,
have not been received.
d) In the opinion of the management, current assets, long term loans
and advances and other nonÂcurrent assets have a realizable value in
ordinary course of business at least equal to the amounts at which they
are stated in the balance sheet.
NOTE NO. 3 :
RELATED PARTY INFORMATION.
(i) Relationships:
(a) Subsidiary Companies
DCW Pigments Ltd
(b) Where control exists
Double Dot Finance Ltd.
Crescent Finstock Ltd.
Sahu Brothers Pvt. Ltd.
Jain Sahu Brothers Properties Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Crescent Holdings Pvt. Ltd.
Note:
Related party relationships on the basis of the requirements of
Accounting Standard (AS) Â 18 disclosed above is as identified by the
company and relied upon by the auditors.
b. Foreign Currency payables that are not hedged by derivative
instruments as on 31st March, 2012, amount to US$ 49.84 mn. (Previous
year US$ 43.62 mn.)
NOTE NO. 4 :
In the matter of custom duty on imported calciner, the Hon''ble Gujarat
High Court, has vide order dated 15th December, 2005, partly allowed
company''s civil application for refund of Rs. 41.48 lacs, to the extent
of Rs. 17.50 lacs, that has since been received and denied claim for
refund of balance Rs. 23.98 lacs on account of unjust enrichment. The
Company has filed special leave petition before Hon''ble Supreme Court
in this regard. The case is pending for hearing.
NOTE NO. 5 :
Capital expenditure on Solway Towers and Calcium chloride plant at Soda
Ash division are being held under capital work in progress since
management intends to use the same in the Soda Ash unit in due course
as indicated in Para 6 of the Directors Report.
NOTE NO. 6 :
The Tamilnadu Government had passed fresh legislation imposing
Electricity Tax on captive power generated with retrospective effect
from 2003. The company along with other captive power producers had
challenged the levy in the Madras High Court, which has upheld the
validity of the levy of Electricity Tax. The company along with other
captive power producers is proposing to prefer appeals to the Hon.
Supreme Court challenging the decision of the Madras High Court and
based on the legal opinion no provision is considered necessary.
NOTE NO. 7 :
Disclosure pursuant to Accounting Standard  15 (Revised) "Employee
Benefits"
a. Effective 1st April''07, the company has adopted Accounting Standard
15 (revised 2005) " Employee Benefits" issued by ICAI. The Company has
classified the various benefits provided to employees as under:
The Rules of the Company''s Provident Fund administered by a Trust
require that if the Board of Trustees are unable to pay interest of at
the rate declared to Employees Provident Fund by the Government under
the Employees Provident Fund Scheme, for the reason that the return on
investment is less or for any other reason, then the deficiency shall
be made good by the Company. Accordingly for the current deficiency
estimated at Rs.8 lacs has been provided.
NOTE NO. 8 :
a) Money received against share warrants represents money received
against issue of convertible share warrants to the Promoters / Promoter
Group on preferential basis during the year.
Note: Since the market price of shares of the Company as at the balance
sheet date was less than the price at which the convertible warrants
issued on preferential basis to promoters / promoter group are
convertible and not converted as at the balance sheet date, the said
convertible warrants are not potential dilutive and hence are not
considered for calculation of EPS (both Basic and Diluted).
NOTE NO. 9 :
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2011
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 16871.42 lacs (previous year Rs.
2675.04 lacs)
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 23.57 lacs (previous year Rs. 23.54 lacs) than the depreciation
charge thereon under section 205(2)(b) of the Companies Act, 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. 2.11 lacs (previous year Rs.
5.77 lacs) has also been met by drawing from Revaluation Reserve.
3 Consignment sales and expenses are incorporated on the basis of sale
notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
5. RELATED PARTY INFORMATION. (i) Relationships :
(a) Subsidiary Companies
DCW Pigments Ltd.
(b) Where control exists
Double Dot Finance Ltd.
Crescent Finstock Ltd.
Sahu Brothers Pvt. Ltd.
Jain Sahu Brothers Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Kalpataru Botanical Garden Pvt. Ltd.
Crescent Holdings & Enterprises Pvt. Ltd.
(c) Key Management Personnel
Dr. S. C. Jain Chairman & Managing Director
Shri P. K. Jain Managing Director
Shri Bakul Jain Managing Director
Smt. Vandana Jain Executive Director
Shri Vivek Jain Sr. President
Shri Mudit Jain President
Shri Ashish Jain President
Smt. Paulomi Jain President
NOTE : Related party relationships on the basis of the requirements of
Accounting Standard (AS) Â 18 disclosed above is as identified by the
company and relied upon by the auditors.
6. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
7. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95,
1995-96, 1997-98 and 2004-05, 2005- 06 and 2007-08 to 2009-10 (except
for 1996-97, 1998-99 to 2003-04 and 2006-07 which have been completed).
Central Sales Tax Assessments and Tamilnadu General Sales tax
assessment of Sahupuram Unit are completed upto 2005-06 and 2006-07
resprectively.
8. In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2011 amount to Rs.
74.11 lacs (previous year Rs. 92.95 lacs)
9. The company has opted for accounting foreign currency exchange
difference on realignment of long term foreign currency loan related to
acquisition of a depreciable capital asset, as per AS-11 amended by
Companies (Accounting Standard) Amendment Rules 2009. Accordingly
exchange difference of Rs. 51.17 lacs, (previous year Rs. 1164 lacs)
relating to current year has been reduced from the cost of fixed assets
and depreciation charged to the Profit and Loss Account.
10. The company has entered into option to hedge its exposure on US$
Libor related to its external commercial borrowing aggregating to US$
20 Mn.
11. Acceptances under current liabilities are disclosed after netting
off fixed deposits for Rs. 1459.32 lacs, given as security to the
Company''s Bankers for issuing letter of credit. This does not
understate the net current assets of the company.
12. In the matter of custom duty on imported calciner, the Hon''ble
Gujarat High Court, has vide order dated 15th December, 2005, partly
allowed company''s civil application for refund of Rs. 41.48 lacs, to
the extent of Rs. 17.50 lacs, that has since been received and denied
claim for refund of balance Rs. 23.98 lacs on account of unjust
enrichment. The Company has filed special leave petition before Hon''ble
Supreme Court in this regard. The case is pending for hearing.
13. Based on Management''s review of the Capital Expenditure on
Carbonation Towers and Calcium Chloride plant at Soda Ash plant in
2004-05 & 2006-07 respectively and based on detailed study by technical
experts, justifying additions and modifications, the same are being
held as capital work in progress.
14. The Tamilnadu Government has passed fresh legislation imposing
Electricity Tax on captive power generated with retrospective effect
from 2003. The company along with other captive power producers has
challenged the levy in the Madras High Court, which has admitted the
writ-petition.
15. (a) Due to Micro & Small Enterprises include Rs. 10.17 lacs,
outstanding for more than 30 days. This amount has been determined to
the extent such parties have been identified from available
information. This has been relied upon by the auditors. (b) The Mirco
& Small Enterprises from whom amounts outstanding for more than 30 days
are as under :Â
1. Chetan Engineering Works.
2. Virendra Vikram Enterprise.
3. Tamilnadu Synthetic Packaging.
16. Due from a company in which Director(s) of the company is director
is Rs. 5.64 Lacs (Previous year Rs. 5.64 lacs).
17. Disclosure pursuant to Accounting Standard  15 (Revised)
"Employee Benefits"
a. Effective 1st April, 2007, the company has adopted accounting
standard 15 (revised 2005) " Employee Benefits" issued by ICAI. The
Company has classified the various benefits provided to employees as
under:
18. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2010
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 2675.04 lacs (previous year Rs.
242.59 lacs)
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 23.54 lacs (previous year Rs. 16.79 lacs ) than the
depreciation charge thereon under section 205(2)(b) of the Companies
Act, 1956 and the same is met by drawing from Revaluation Reserve. The
uplift on revalued assets discarded amounting to Rs. 5.76 lacs
(previous year Rs. NIL) has also been met by drawing from Revaluation
Reserve.
3. Consignment sales and expenses are incorporated on the basis of
sale notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
5. RELATED PARTY INFORMATION:
(I) RELATIONSHIPS:
(a) SUBSIDIARY COMPANIES:
DCW Pigments Ltd
(b) WHERE CONTROL EXISTS:
Double Dot Finance Ltd.
Crescent Finstoce Ltd.
Sahu Brothers Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Crescent Holdings Pvt. Ltd.
NOTE:Related party relationships on the basis of the requirements of
Accounting Standard (AS) - 18 disclosed above is as identified
by the Company and relied upon by the auditors.
6. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
7. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95,
1995-96, 1997-98 and 2004-05 to 2008- 09 (except for 1996-97, 1998-99
to 2003-04 which has been completed). Central Sales Tax Assessments and
Tamilnadu General Sales tax act of Sahupuram Unit are completed upto
2005-06.
8. In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2010 amount to Rs.
92.95 lacs (previous year Rs. 95.43 lacs)
9. The company has opted for accounting foreign currency exchange
difference on realignment of long term foreign currency loan related to
acquisition of a depreciable capital asset, as per AS-11 amended by
Companies (Accounting Standard) Amendment Rules 2009. Accordingly
exchange difference of Rs.1164 lacs, relating to current year has been
reduced from the cost of fixed assets and depreciation charged to the
Profit and Loss Account.
10. The company has entered into option to hedge its exposure on US$
Libor related to its external commercial borrowing aggregating to US$
20 Mn.
The year end foreign currency exposure that have not been hedged by
derivative instrument or otherwise Payables Rs. 10505.26 Lacs.
11. In the matter of custom duty on imported calciner, the Honble
Gujarat High Court, has vide order dated 15th December, 2005, partly
allowed companys civil application for refund of Rs. 41.48 lacs, to
the extent of Rs. 17.50 lacs, that has since been received and denied
claim for refund of balance Rs. 23.98 lacs on account of unjust
enrichment. The Company has filed special leave petition before Honble
Supreme Court in this regard. The case is pending for hearing.
12. Based on Managements review of the Capital Expenditure on
Carbonation Towers and Calcium Chloride plant at Soda Ash plant in
2004-05 & 2006-07 respectively and based on detailed study by technical
experts, justifying additions and modifications, the same are being
held as capital work in progress. Till such time the Carbonation Towers
and Calcium Chloride plant becomes operational, interest of Rs.78.85
lacs, for this year has been capitalized.
13. The Tamilnadu Government has passed fresh legislation imposing
Electricity Tax on captive power generated with retrospective effect
from 2003. The company along with other captive power producers has
challenged the levy in the Madras High Court, which has admitted the
writ-petition.
14. (a) Due to Micro & Small Enterprises include Rs.10.62 lacs,
outstanding for more than 30 days. This amount has been determined to
the extent such parties have been identified from available
information. This has been relied upon by the auditors.
(b) The Mirco & Small Enterprises from whom amounts outstanding for
more than 30 days are as under:
1.Warkin Enterprises Pvt. Ltd.
2.Tamilnadu Synthetics
3. Ganesh Polymer
15. Due from a company in which Director(s) of the company is director
is Rs.5.64 Lacs (Previous year Rs. Nil lacs).
The Rules of the Corporate Provident Fund administered by a Trust
require that if the Board of Trustees are unable to pay interest of at
the rate declared to Employees Provident Fund by the Government under
the Employees Provident Fund Scheme, for the reason that the return on
investment is less or for any other reason, then the deficiency shall
be made good by the Company. Having regard to the assets of the fund
and the return on the investments the Company does not expect any
deficiency in the foreseeable future.
16. Information required in terms of Port IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2009
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 242.59 lacs (previous year Rs.
1,412.38 lacs)
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 16.79 lacs (previous year Rs. 23.70 lacs) than the depreciation
charge thereon under section 205(2)(b) of the Companies Act, 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. Nil lacs (previous year Rs.
284.15 lacs) has also been met by drawing from Revaluation Reserve.
3. Consignment sales and expenses are incorporated on the basis of
sale notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
5. RELATED PARTY INFORMATION: (I) RELATIONSHIPS:
(a) SUBSIDIARY COMPANIES: DCW Pigments Ltd
(b) WHERE CONTROL EXISTS: Double Dot Finance Ltd. Crescent Finstock
Ltd. Sahu Brothers Pvt. Ltd. Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Kalpataru Botanical Garden Pvt. Ltd. Crescent Holdings Pvt. Ltd.
6. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
7. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95,
1995-96, 1997-98 and 2004-05 to 2007- 08 (except for 1996-97, 1998-99
to 2003-04 which has been completed). Central Sales Tax Assessments and
Tamilnadu General Sales tax act of Sahupuram Unit are completed upto
2004-05 except for the year 2003-04.
8. In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2009, amount to
Rs. 95.43 lacs (previous year Rs. 112.98 lacs).
9. The Company has opted for accounting foreign currency exchange
difference on realignment of long term foreign currency loan related to
acquisition of a depreciable capital asset, as per AS-11 amended by
Companies (Accounting Standard) Amendment Rules 2009. Accordingly
exchange difference of Rs. 2,124 lacs, relating to current year has
been added to the cost of fixed assets and depreciation charged to the
Profit and Loss Account.
10. The Company has entered into option to hedge its exposure on US$
Libor related to its external commercial borrowing aggregating to US$
20 million.
The year end foreign currency exposure that have not been hedged by
derivative instrument or otherwise Payables Rs. 13,435.60 lacs.
11. In the matter of custom duty on imported calciner, the Honble
Gujarat High Court, has vide order dated 15th December, 2005, partly
allowed Companys civil application for refund of Rs. 41.48 lacs, to
the extent of Rs. 17.50 lacs, that has since been received and denied
claim for refund of balance Rs. 23.98 lacs on account of unjust
enrichment. The Company has filed special leave petition before Honble
Supreme Court in this regard. The case is pending for hearing.
12. Based on Managements review of the Capital Expenditure on
Carbonation Towers and Calcium Chloride plant at Soda Ash plant in
2004-05 & 2006-07 respectively and based on detailed study by technical
experts, justifying additions and modifications, the same are being
held as capital work in progress. Till such time the Carbonation Towers
and Calcium Chloride plant becomes operational, interest of Rs. 153.15
lacs, for this year has been capitalized.
13. The Tamilnadu Government has passed fresh legislation imposing
Electricity Tax on captive power generated with retrospective effect
from 2003. The Company along with other captive power producers has
challenged the levy in the Madras High Court, which has admitted the
writ-petition.
14. (a) Due to Micro & Small Enterprises include Rs. 4.81 lacs,
outstanding for more than 30 days. This amount has been determined to
the extent such parties have been identified from available
information. This has been relied upon by the auditors.
(b) The Mirco & Small Enterprises from whom amounts outstanding for
more than 30 days are as under:
1. Tamilnadu Synthetics, 2. Arun Pack 3. Bharat Engineering
15. Insurance claim accounted as other income of Rs. 450.97 Lacs
(previous year Rs. 45.19 lacs) out of which claim of Rs. 285.75 Lacs,
is pending approval from insurance authorities.
16. Due from companies in which Directors of the Company are directors
is Rs. NIL lacs (Previous year Rs. Nil lacs).
17. Disclosure pursuant to Accounting Standard - 15 (Revised)
"Employee Benefits"
a. Effective 1st April 2007, the Company has adopted accounting
standard 15 (revised 2005) "Employee Benefits" issued by ICAI. The
Company has classified the various benefits provided to employees as
under:
18. Based on evaluation by the management of their being reasonable
certainty that the Company will be liable to pay normal income tax
within 7 subsequent years, MAT credit of Rs. 225 lacs (Previous Year
Rs. 155 lacs), has been recognized as an asset with corresponding
credit to profit and loss account.
19. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Mar 31, 2008
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 1412.38 lacs (previous year Rs.
17662.68 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 23.70 lacs (previous year Rs: 32.61 lacs ) than the depreciation
charge thereon under section 205(2)(b) of the Companies Act, 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. 284.15 lacs (previous year
Rs. 48.77 lacs) has also been met by drawing from Revaluation Reserve.
3. Consignment sales and expenses are incorporated on the basis of
sale notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
6. RELATED PARTY INFORMATION.
(i) RELATIONSHIPS:
(a) SUBSIDIARY COMPANIES DCW Pigments Ltd
(b) WHERE CONTROL EXISTS Double Dot Finance Ltd. Crescent Finstock
Ltd.
Sahu Brothers (Saurashtra) Pvt. Ltd. Dhrangadhra Trading Company Pvt.
Ltd. Kishco Ltd.
Kalpataru Botanical Garden Pvt. Ltd. Crescent Holdings Pvt. Ltd.
7. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
8. The Company has changed the method of valuation of closing stock of
Caustic Soda Lye group by treating Chlorine, Hydrogen Gas and
Hydrochloric Acid as by-products instead of joint products. This has
resulted into decrease in valuation of Finished Goods by Rs. 48.21
lacs, which has decreased the Profit for the year by the same amount.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95,
1995-96, 1997-98 and 2004-05 to 2006-07 (except for 1996-97, 1998-99 to
2003-04 which has been completed). Central Sales Tax Assessments and
Tamilnadu General Sales tax act of Sahupuram Unit are completed upto
2004-05 except for the year 2003-04.
10. In respect of land on lease, the future obligations towards lease
rentals under the lease agreements as on 31st March, 2008 amount to Rs.
112.98 lacs (previous year Rs. 189.29 lacs).
11. During the year the company has entered into option to hedge its
exposure on US$ Libor related to its external commercial borrowing
aggregating to US$ 20 Million.
The year end foreign currency exposure that have not been hedged by
derivative instrument or otherwise Payables Rs. 18,121.65 lacs.
12. In the matter of custom duty on imported calciner, the Honable
Gujarat High Court, has vide order dated 15th December, 2005, partly
allowed companys civil application for refund of Rs. 41.48 lacs, to
the extent of Rs. 1 7.50 lacs, that has since been received and denied
claim for refund of balance Rs. 23.98 lacs on account of unjust
enrichment. The Company has filed special leave petition before Honable
Supreme Court in this regard. The case is pending for hearing.
14. Based on Managements review of the Capital Expenditure on
Carbonation Towers and Calcium Chloride plant at Soda Ash plant in
2004-05 & 2006-07 respectively and based on detailed study by technical
experts, justifying additions and modifications, the same are being
held as capital work in progress. Till such time the Carbonation Towers
and Calcium Chloride plant becomes operational, interest of Rs. 225.82
lacs, for this year has been capitalized.
15. The Tamilnadu Government has passed fresh legislation imposing
Electricity Tax on captive power generated with retrospective effect
from 2003. The company along with other captive power producers has
challenged the levy in the Madras High Court, which has admitted the
writ-petition.
16. (a) Sundry Creditors ( Schedule K) include Rs. 9.22 lacs, due to
small scale and ancillary undertakings outstanding for more than 30
days. This amount has been determined to the extent such parties have
been identified from available information. This has been relied upon
by the auditors.
(b) The small scale undertakings from whom amounts outstanding for more
than 30 days are as under.:- 1. Tamilnadu Synthetics, 2. Canesh
Polymenrs,
(c) In the absence of requisite information pertaining to Micro Small &
Medium Enterprises under Micro Small & Medium Enterprises Development
Act, 2006, dues to SSI undertakings is reported as per the earlier
requirements.
17. Insurance claim received in respect of machinery Rs. 45.19 lacs
(previous year Rs. NIL lacs) is taken as other income.
18. Due from companies in which Directors of the company are directors
is Rs. NIL lacs (Previous year Rs. 0.31 lacs).
19. Disclosure pursuant to Accounting Standard - 15 (Revised)
"Employee Benefits"
(a) Effective 1st April 07, the company has adopted accounting standard
15 (revised 2005) " Employee Benefits" issued by ICAI. The Company has
classified the various benefits provided to employees as under:
(b) Defined Contribution Plans:
The Company has recognized the following amounts in the Profit & Loss
Account which are included under contribution to Provident Fund and
Other Funds:
The Rules of the Corporate Provident Fund administered by a Trust
require that if the Board of Trustees are unable to pay interest at the
rate declared on Employees Provident Fund by the Government under the
Employees Provident Fund Scheme, for the reason that the return on
investment is less or for any other reason, then the deficiency shall
be made good by the Company. Having regard to the assets of the fund
and the return on the investments the Company does not expect any
deficiency in the foreseeable future.
20. Acceptances under current liabilities are disclosed after netting
off fixed deposits for Rs. 5535 lacs (Previous Year Rs. NIL lacs) given
as security to the Companys Bankers for issuing letter of credit. This
does not understate current assets of the company.
21. Based on evaluation by the management of their being reasonable
certinity that the company will be liable to pay normal income tax
within 7 subsequent years, MAT credit of Rs. 155 lacs (Previous Year
Rs. 44.89 lacs), has been recognized as an asset with corresponding
credit to profit and loss account.
23 Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2007
SECURED LOAN Notes:
LOANS Secured by
Banks Working Capital facilities are secured by a first charge by way
of hypothecation and/or pledge of current assets, namely, stocks of
materials, semi-finished and finished goods, consumable stores and
spares including machinery spares not capitalized, bills receivable and
book debts and further secured by a second charge by way of
hypothcation over all of movable plant and machinery and by way of
mortgage by deposit of title deeds over the immovable properties, both
present and future, such mortgage to rank second to the mortgages
created to be created in favour of Term Loan Lenders viz.,
Banks/Financial Institutions.
Term Loans from Banks are secured by a pari-passu first charge by way
of hypothecation of movable fixed assets of the Company, including
movable machinery spares, stores and further secured by mortgage on all
the immovable properties of the Company situated in the states of
Tamilnadu and Gujarat on first pari passu charge basis.
Other loans The Long Term Working Capital Loan from a Financial
Institution is secured by creation of first pari passu charge on all
the immovable fixed assets, both present and future by way of
hypothecation and further secured by mortgage on all the immovable
properties situated in the states of Tamilnadu and Gujarat on first
pari-passu charge basis.
Equipments Finance Loan from a Financial Institution and term loan from
NBFC are secured by creation of first pari-passu charge on all the
movable fixed assets, both present and future by way of hypothecation
and further secured by mortgage on all the immovable properties
situated in the states of Tamilnadu and Gujarat on first pari-passu
charge basis.
FIXED ASSETS NOTES: .
1. Buildings include Rs. 523.06 lacs being cost of ownership flats and
office accommodation in Co-operative Societies and a Limited Company
against which the Company holds shares of the face value of Rs. 0.77
lacs in Co-operative Societies and the Limited Company.
2. Land includes the leasehold land valued at Rs. 70.99 lacs.
3. Assignment deeds in respect of 9.13 acres of Land at Caustic Soda
Division, transferred by Central Government to the State Government,
are yet to be executed by the State Government in favour of the
Company.
4. Land, Building and Plant and Machinery located at Sahupuram Works
(other than PVC Division) were revalued on 31.03.1993.
5. The Company exercised the option to purchase 793.39 acres of land
leased by the State Government at Sahupuram works. Assignment deeds in
respect of the said land are yet to be executed by the State Government
in favour of the Company.
6. Fixed Assets includes assets taken over from erstwhile Pantape
Magnetics Limited at revalued figure as per an independent valuers
report.
OTHER NOTES
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 17,662.68 lacs (Previous year Rs.
18,315.87 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 32.61 lacs (Previous year Rs. 46.89 lacs) than the depreciation
charge thereon under section 205(2)(b) of the Companies Act, 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. 48.77 lacs (Previous year
Rs. 11.61 lacs) has also been met by drawing from Revaluation Reserve.
3. Consignment sales and expenses are incorporated on the basis of
sale notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
5. The break up of Deferred Tax Assets/Liabilities are as under:
6. RELATED PARTY INFORMATION
(i) RELATIONSHIPS:
(a) WHERE CONTROL EXISTS Double Dot Finance Ltd. Crescent Finstock
Ltd. Sahu Brothers (Saurashtra) Pvt. Ltd. Dhrangadhra Trading Company
Pvt. Ltd. Kishco Ltd.
Kalpataru Botanical Garden Pvt. Ltd. Crescent Holdings Pvt. Ltd. DCW
Pigments Ltd.
8. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95
to 1997-98 and 2003-04 to 2006-07 (except for 1998-99 to 2002-03 which
has been completed). Central Sales Tax Assessments and Tamiinadu
General Sales Tax Act of Sahupuram Unit are completed upto 2004-05
except for the year 2003-04.
10. In respect of Plant & Machinery, equipment and other items taken
on lease, the future obligations towards lease rentals under the lease
agreements as on 31 st March, 2006 amount to Rs. 189.29 lacs (Previous
year Rs. 187.63 lacs).
11. In the matter of custom duty on imported calciner, the Honble
Gujarat High Court, has vide order dated 15th December, 2005, partly
allowed companys civil application for refund of Rs. 41.48 lacs, to
the extent of Rs. 17.50 lacs, that has since been received and denied
claim for refund of balance Rs. 23.98 lacs on account of unjust
enrichment. The Company has filed special leave petition before Honble
Supreme Court in this regard. The case is pending for hearing.
12. The Companys pending application to the Government of Tamilnadu
for renewal of the lease of 3185 acres and 153 cents of land at
Vedaranayam from 1st April, 2003has been directed by the Honble
Supreme Court to be considered by the learned Single Judge of the
Madras High Court. The increase in lease rent, cess etc. on the said
lease hold land relating to the past period claimed by the State
Government is disputed in writ petitions filed and pending in the
Madras High Court.
13. Computation of net profits under Section 349 of the Companies Act,
1956.
(Rs. in lacs)
Particulars Amount
Profit before tax as per Profit & Loss Account 3,135.88
Add:
Wealth Tax paid 3.55
Managerial remuneration 282.73
Directors sitting fees 1.05
Less:
Interest capitalized 313.13
Net profit U/S 349 3,110.08
10% thereof i.e. (3110.08 X 10/110) 282.73
Less: Managerial remuneration paid 148.47
Commission payable 134.31
14. Based on Managements review of the Carbonation Tower installed at
Soda Ash plant during the year 2004-05, and after a detailed study,
justifying the need to add certain additional equipments requiring
capital expenditure, the towers are being held as capital work in
progress. Till such time the Carbonation Tower becomes operational,
interest of Rs. 196.94 lacs, that was charged to revenue in the earlier
years along with interest of Rs. 116.19 lacs, for this year has been
capitalized by netting off against current year interest. This
accounting treatment has effect of increasing profit of the year by Rs.
313.13 lacs, with corresponding effect on the reserves.
15. (a) Sundry Creditors (Schedule K) include Rs. 17.94 lacs due to
small scale and ancillary undertakings outstanding for more
than 30 days. This amount has been determined to the extent such
parties have been identified from available information. This has been
relied upon by the auditors.
(b) The small scale undertakings from whom amounts outstanding for more
than 30 days are as under:
1. Bipinkumar Electrical Corpn., 2. Elite Chemicals, 3. Tamilnadu
Synthetics, 4. Ganesh Polymers, 5. Arun Packs
(c) In the absence of requisite information pertaining to Micro Small &
Medium Enterprises under Micro Small & Medium Enterprises Development
Act, 2006, dues to SSI undertakings is reported as per the earlier
requirements.
16. Insurance claim received in respect of machinery Rs. Nil (Previous
year Rs. 631 lacs) is taken as other income.
17. Due from companies in which Directors of the company are directors
is Rs. 0.31 lacs (Previous year Rs. Nil).
18. Acceptances undercurrent liabilities are disclosed after netting
off fixed deposits for Rs. Nil (Previous year Rs. 501.16 lacs) giving
as security to the Companys Bankers for issuing letter of credit. This
does not understate current assets of the company.
19. Based on evaluation by the management of their being reasonable
certainty that the company will be liable to pay normal income tax
within 7 subsequent years, MAT credit of Rs. 44.89 (Previous year Rs.
272.35 lacs), has been recognized as an asset with corresponding credit
to profit and loss account.
Note : 1. Licensed capacity is not applicable in view of the companys
products having de-licensed as per the new liberalised licensing policy
announced by the Government of India.
2. Ammonium Bicarbonate production is out of part of Soda ash plant.
3. Self consumption quantity mentioned includes quantity lost in
handling, lost in transit, wash loss, samples, etc.
4. Previous year figures are given in bracket.
5. Lye sales quantity excludes 1 57 mt excess as per survey.
Mar 31, 2006
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 18,315.87 lacs (Previous year Rs.
4,676.51 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 46.89 lacs (previous year Rs. 43.24 lacs) than the depreciation
charge thereon under section 205(2)(b) of the Companies Act. 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. 11.60 lacs (previous year
Rs. 15.33 lacs) has also been met by drawing from Revaluation Reserve.
3. Consignment sales and expenses are incorporated on the basis of sale
notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
5. The break up of Deferred Tax Assets/Liabilities are as under: (DC
jn |acs)
Nature of timing difference Deferred Tax Debit/fCredit) Deferred Tax
Liability/(Assets) for the year Liability/
as at1st April, (Assets) as at
2005 31st March,
2006
(a) DEFERRED TAX LIABILITIES
Depreciation 5,658.48 616.21 6,274.69
SUB TOTAL 5,658.48 616.21 6,274.69
(b) DEFERRED TAX ASSETS
Provision for dimunition
in value ofBusiness Centre
Immovable Property 457.41 (36.66) 420.75
; Provision for dimunition in
value of Investments 0.70 (0.70) -
Provision for Doubtful debts 11.20 (0.90) 10.30
Expenses allowed on payment basis 202.03 67.56 269.59
Long-term capital loss
to be set-off 6.47 (0.52) 5.95
SUB-TOTAL 677.81 28.78 706.59
4.980.67 587.43 5,568.10
6. RELATED PARTY INFORMATION (i) RELATIONSHIPS:
(a) WHERE CONTROL EXISTS Double Dot Finance Ltd. Crescent Finstock
Ltd. Sahu Brothers (Saurashtra) Pvt. Ltd. Dhrangadhra Trading Company
Pvt. Ltd. Kishco Cutlery Ltd.
Kalpataru Botanical Garden Pvt. Ltd. Crescent Holdings Pvt. Ltd.
(b) KEY MANAGEMENT PERSONNEL
Dr. S. C. Jain Chairman & Managing Director
Shri S. K. Jain Vice Chairman & Managing Director
Shri P. K. Jain Managing Director
Shri Bakul Jain Executive Director
Shri Vivek Jain Sr. President
Shri Mudit Jain President
Shri Ashish Jain President
Smt. Paulomi Jain Vice President
NOTE: Related party relationships on the basis of the requirements of
Accounting Standard (AS)-18 disclosed above is as identified by the
Company and relied upon by the auditors.
(ii) DISCLOSURE OF TRANSACTIONS BETWEEN THE GROUP AND RELATED PARTIES
AND THE STATUS OF OUTSTANDING BALANCES AS ON 31ST MARCH, 2006
(Rs. in lacs)
Particulars Enterprises where Key Management
control exists personnel
Commission paid - -
Remuneration paid - 264.77
Purchases 0.96 -
Balances as on 31st March, 2006 3.26 -
8. Encroachers have occupied some portions of the land belonging to the
Company at Sahupuram. Efforts are being made to evict them.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95
to 1997-98 and 2003-04 to 2005-06 (except for 1998-99 and 2002-03 which
have been completed). Central Sales Tax Assessments and Tamil Nadu
General Sales Tax Act of Sahupuram Unit are pending since 2001-2002.
10. The amount of exchange difference in respect of forward contracts
to be recognised in the Profit and Loss Account in the subsequent
accounting year is Rs. Nil (Previous year Rs. 7.95 Lacs).
11. In respect of Plant & Machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2006 amount to Rs. 187.63 lacs (previous
year Rs. 217.13 lacs).
12. In the matter of customs duty on imported calciner, the Honable
Gujarat High Court has vide order, dated 15th December, 2005, partly
allowed companys civil application for refund of Rs. 41.48 lacs, to
the extent of Rs. 1 7.50 lacs, that has since been received and denied
claim for refund of balance Rs. 23.98 lacs on account of unjust
enrichment. The Company has filed special leave petition before Honble
Supreme Court in this regard. The case is pending for hearing.
13. The Companys pending application to the Government of Tamil Nadu
for renewal of the lease of 3185 acres and 153 cents of land at
Vedaranayam from 1st April, 2003 has been directed by the Honable
Supreme Court to be considered by the learned Single Judge of the
Madras High Court. The increase in lease rent, cess etc. on the said
lease hold land relating to the past period claimed by the State
Government is disputed in writ petitions filed and pending in the
Madras High Court.
14. Computation of net profits under Section 349 of the Companies Act,
1956
(Rs. in lacs)
Particulars Amount
Profit before tax as per Profit & Loss Account 3,229.49
Add:
Wealth Tax paid 3.73
Managerial remuneration 222.62
Directors sitting fees 1.65
Less:
Profit on sale of Investments 1 6.82
Excess realization over original cost on fixed aseets 1,214.96
Net profit U/S 349 2,225.71
10% thereof i.e. (2225.71 X 10/110) 202.34
Less: Managerial remuneration paid 1 33.88
Commission payable 68.46
15. During the year 2004-05, the 3 carbonation towers at Soda Ash
plant, were not commissioned as the desired results relating to quality
and efficiency were not forth coming during the trial runs. In the
current year leading technical experts have after evaluation
recommended the installation of a higher capacity screw compressor to
achieve desired results. The Company proposes to establish this
compressor along with doubling capacity of Soda Ash Plant. Pending this
an amount of Rs. 21.56 crores incurred on the carbonation towers,
including trial run expenditure, is included under capital work in
progress.
16. (a) Sundry Creditors (Schedule K) include Rs. 14.81 lacs due to
small scale and ancillary undertakings outstanding for more than 30
days. This amount has been determined to the extent such parties have
been identified from available ; information. This has been relied upon
by the auditors.
(b) The small scale undertakings from whom amounts outstanding for more
than 30 days are as under.:-
1. Industrial Traders 2. Hitesh Salt Traders 3. Cl Pipe Mfg. Corpn. 4.
Calcutta Belt Centre 5. Shree Shakti Rewinding Works 6. Shree Darshan
Engineering Works 7. Sandeep Salt Works 8. Decent Enterprise Salt 9.
Gujarat Carbon Products 10. SS Computech Pvt. Ltd. 11. Sri Rama Poly
Bags. 12. Tamilnadu Synthetics Ltd.
17. Acceptances under current liabilities are disclosed after netting
off fixed deposits for Rs. 501.16 lacs given as security to the
Companys Bankers for issuing letter of credit. This does not
understate the net current assets of the company.
18. Insurance claim received in respect of machinery damaged of Rs. 631
lacs is taken as other income and the written down value of damaged
machinery has been fully written off.
19. Based on evaluation by the management of their being reasonable
certainity that the company will be liable to pay normal income tax
within 7 subsequent years, MAT credit of Rs. 272.35 lacs has been
recognized as an asset with corresponding credit to profit and loss
account.
20. Earning per share (EPS) as per Accounting Standard -20
2005-06 2004-05
Rs. in lacs Rs. in lacs
Profit after Tax 2,726.92 2,103.33
No. of Equity shares of Rs. 2 each as on 31.3.2006
Basic & Diluted 17,25,44,590 17,25,66,670
EPS (Rs.)
Basic & Diluted 1.58 1.22
(The existing equity shares of Rs. 10 each were sub-divided into 5
shares of Rs. 2 each w.e.f. 28th Sept., 05. Consequently the average
number of equity shares of previous year, have been adjusted for share
split for computing EPS in accordance with AS-20 issued by ICAI)
21. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2005
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided tor is Rs. 4,676.51 lacs (Previous year Rs.
1561.99 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 43.24 lacs (previous year Rs. 52.77 lacs) than the depreciation
charge thereon under section 205(2)(b) of the Companies Act, 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. 1 5.33 lacs (previous year
Rs. 81.91 lacs) has also been met by drawing from Revaluation Reserve.
3 Consignment sales and expenses arc incorporated on the basis of sale
notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
The break up of Deferred Tax Assets/Liabilities are as under: in Rs
Nature of timing
difference Deferred Tax Debit/(Credit) Deferred Tax Liability/
Liability Assets) for the year (Assets) as at
as at 1st April, 2004 31st March, 2005
(a) DEFERRED
TAX LIABILITIES
Depreciation 5,563.83 94.65 5,658.48
SUB TOTAL 5,563.83 94.65 5,658.48
(b) DEFERRED TAX ASSETS
Provision for
dimunition in
value of Business
Centre Immovable
Property 448.50 8.91 457.41
Provision for
dimunition in
value of Investments 0 0.70 0.70
Provision for
Doubtful debts 10.98 0.22 11.20
Expenses allowed on
payment basis 211.89 (9.85) 202.03
Long-term capital
loss to be set-off 6.25 0.23 6.47
SUB-TOTAL 677.62 0.19 677.81
4,886.21 94.46 4,980.67
RELATED PARTY INFORMATION
(i) RELATIONSHIPS:
(a) WHERE CONTROL EXISTS
Double Dot Finance Ltd.
Crescent Finstock Ltd.
Sahu Brothers (Saurashtra) Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Cutlery Pvt. Ltd.
Kalpataru Botanical Garden Pvt. Ltd.
Crescent Holdings Pvt. Ltd.
(b) KEY MANAGEMENT PERSONNEL
Dr. S. C. lain Chairman & Managing Director
Shri S. K. Jain Vice Chairman & Managing Director
Shri P. K. jain Managing Director
Shri Bakul lain Executive Director
Shri Vivek jam Sr. President
Shri Mudit Jain President
Shri Ashish Jain President
Smt. Paulomi Jain Vice President
8. Encroachers have occupied some portions of the land belonging to the
Company at Sahupuram. Efforts are being made to evict them.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95
to 1997-98 and 2002-03 to 2004-05 (except for 1998-99 and 2001-02 which
have been completed) and Centra! Sales Tax Assessments of Sahupuram
Unit are pending from 1998-99 Sales tax assessments under Tamil Nadu
deneral Sales Tax Act, are pending since 1999-2000.
10. The amount of exchange difference in respect of forward contracts
to be recognised in the Profit and Loss Account in the subsequent
accounting year is Rs. 7.95 Lacs (Previous year Rs. 9.50 Lacs).
11. In respect of Plant & Machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2005 amount to Rs. 217.13 lacs (previous
year Rs. 197.50 lacs).
12. In the matter of customs duty on imported calciner, CEGAT vide its
order, dt. 8th December, 2000 has held that the calciner imported would
be entitled to exemption under Notification No. 59/87 and has also
reduced the fine levied for alleged import of the calciner without
licence to Rs-5 lacs. The Company has consequentially applied for
refund of Rs-41.48 lacs to the Customs authorities who have denied the
claim on account of unjust enrichment. The Company filed a Civil
application before the Honable Gujarat High Court. The case is pending
for hearing.
13. The Companys pending application to the Government of Tamilnadu
for renewal of the lease of 3185 acres and 1 53 cents of land at
Vedaranayam from 1st April, 2003 has been directed by the Honable
Supreme Court to be considered by the learned Single Judge of the
Madras High Court. The increase in lease rent, cess etc. on the said
lease hold land relating to the past period claimed by the State
Government is disputed in writ petitions filed and pending in the
Madras High Court.
14. Computation of net profits under Section 349 of the Companies Act,
1956
(Rs. in lacs)
Particulars Amount
Profit before tax as per Profit & Loss Account 2368
Add: Wealth Tax paid 3
Managerial remuneration 234
Directors sitting fees 1
Less:
Provision for dimunition in value of Investments written back 2
Profit on sale of Investments 24
Net profit U/S 349 2580
10% thereof i.e. (2580 X 10/110) 234
Less: Managerial remuneration paid 101
Commission payable 133
15. During the year, trial runs wore conducted at Dhrangadhra between
August 04 and November 04 on the modernisation/revamping of Soda Ash
plant. Since the desired results relating to quality and efficiency was
not forthcoming, the trial run were suspended pending assessment and
carrying out necessary modifications. The company has invited foreign
technics! experts to evaluate and recommend changes if any required
Efforts are on to complete the revamping/modernisation of Soda Ash
plant.
The trial run expenditure of Rs. 296 41 Lacs, incurred during the year
construction period is included under Capital work ID progress.
16. (a) Sundry Creditors ( Schedule K) include Rs.10.26 lacs due to
small scale and ancillary undertakings outstanding for more than 30
days. This amount has been determined to the extent such parties have
been identified from available information. This has been relied upon
by the auditors.
(b) The small scale undertakings from whom amounts outstanding for more
than 30 days are as under.:-
1) Austin Engg. Co. Ltd., 2) Shanti Trading Company 3) Peeyelcee
Polysacks 4) ESSVEE Agro Polymers 5) Tamilnadu Synthetics Ltd.
17. Acceptances under current liabilities are disclosed after netting
off fixed deposits for Rs. 2216.13 lacs given as security to the
Companys Bankers for issuing letter of credit. This does not
understate the net current assets of the company. Outstanding short
term foreign currency unsecured loan of Rs. 2001.50 lacs taken from a
foreign branch of a Bank has been netted off against fixed deposits of
like amount given as security to the Companys Bankers for issuing
comfort letter towards the said loan.
18. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1 956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1 to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2004
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs.1,561.99 lacs (Previous year Rs.
35.56 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 52.77 lacs (previous year Rs. 1 75.49 lacs ) than the
depreciation charge thereon under section 205(2)(b) of the Companies
Act, 1956 and the same is met by drawing from Revaluation Reserve. The
uplift on revalued assets discarded amounting to Rs. 81.91 lacs
(previous year Rs. 28.17 lacs) has also been met by drawing from
Revaluation Reserve.
3. In compliance with Accounting Standard 26 on Intangible Assets,
technical know-how fees of Rs. 46.02 lacs which was being depreciated
over an estimated useful life of more than ten years, has been adjusted
against the opening balance of General Reserve.
4. Confirmation of balances from some of the Debtors and Creditors,
have not been received.
6. RELATED PARTY INFORMATION
(i) RELATIONSHIPS:
(a) WHERE CONTROL EXISTS Double Dot Finance Ltd. Crescent Finstock
Ltd. Sahu Brothers (Saurashtra) Pvt. Ltd. Dhrangadhra Trading Company
Pvt. Ltd. Kishco Cutlery Ltd. Kalpataru Botanical Garden Pvt. Ltd.
Crescent Holdings Pvt. Ltd.
(b) KEY MANAGEMENT PERSONNEL
Dr. S.C. Jain Chairman & Managing Directo
Shri S.K. Jain Vice Chairman & Managing Director
Shri P. K. Jain Managing Director
Shri Bakul Jain Executive Director
Shri Vivek Jain Sr. President
Shri Mudit Jain President
Shri Ashish Jain President
Smt. Paulomi Jain Vice President
NOTE: Related party relationships on the basis of the requirements of
Accounting Standard (AS) - 18 disclosed above is as identified by the
Company and relied upon by the auditors.
(ii) DISCLOSURE OF TRANSACTIONS BETWEEN THE GROUP AND RELATED PARTIES
AND THE STATUS OF OUTSTANDING BALANCES AS ON 31ST MARCH, 2004 (Rs. in
lacs)
Particulars Enterprises where Key Management
control exists personnel
Rent paid 0.05 -
Commission paid 7.01 -
Remuneration paid - 202.30
Acquisition of Tenancy Rights 9.74 -
Purchases 0.91 -
Balances as on 31st March, 2004 (4.52) -
8. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95
(except for 1998-99 and 1999-2000 which have been completed) and
Central Sales Tax Assessments of Sahupuram Unit are pending from
1995-96 (except for 1997-98 which has been completed). Sales tax
assessments under Tamil Nadu General Sales Tax Act, are pending since
1997-98.
10. The amount of exchange difference in respect of forward contracts
to be recognised in the Profit and Loss Account in the subsequent
accounting year is Rs. 9.50 Lacs (Previous year Rs. Nil).
11. In respect of Plant & Machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2004 amount to Rs. 197.50 lacs (previous
year Rs. 220.82 lacs).
12. In the matter of customs duty on imported calciner, CEGAT vide its
order, dt. 8th December, 2000 has held that the calciner imported would
be entitled to exemption under Notification No. 59/87 and has also
reduced the fine levied for alleged import of the calciner without
licence to Rs. 5 lacs. The Company has consequentially applied for
refund of Rs. 41.48 lacs to the Customs authorities who have denied the
claim on account of unjust enrichment. The matter is pending before the
Collector (Appeals).
13. The Company, subject to the approval of the Government of Tamil
Nadu has offered to transfer the lease hold rights and interest in 3185
acres and 153 cents of leasehold land at Vedaranyam to Gujarat Heavy
Chemicals Ltd. (GHCL), for a lumpsum consideration of Rs. 50 lacs. The
increase in lease rent, cess, etc. on the said lease hold land relating
to the past period, claimed by the State Government is disputed in a
writ petition filed and pending in the Madras High Court.
The consideration of Rs. 50 lacs payable by GHCL would be paid after
deducting payments, if any, made by them towards increase in lease
rent.
14. Computation of net profits under Section 349 of the Companies Act,
1956 (Rs. in lacs) Particulars Amount Profit before tax as per Profit &
Loss Account 1928.78
Add:
Wealth Tax paid 3.17
Managerial remuneration 185.54
Directors sitting fees 0.77
Less:
Provision for dimunition in value of Investments written back 7.32
Provision for doubtful debts written back 17.00
Profit on sale of Investments 53.05
Net profit U/S 349 2040.90
10% thereof i.e. (2040.90 X 10/110) 185.54
Less: Managerial remuneration paid 72.02
Commission payable 113.52
15. (a) Sundry Creditors (Schedule K) include Rs.17.48 lacs due to
small scale and ancillary undertakings. This amount has been determined
to the extent such parties have been identified from available
information. This has been relied upon by the auditors.
(b) The small scale undertakings from whom amounts outstanding for more
than 30 days are as under.:-
(1) Bharat Engineering Works
(2) C.I. Pipes Mfg. Corporation
(3) Arul Rubbers (P) Ltd.
(4) Peeyelcee Polysacks
(5) ESVEE Agro Polymers
(6) Tamilnadu Synthetics Ltd.
(c) Acceptances under Current Liabilities are disclosed after adjusting
fixed deposits for Rs. 790 lacs with a Scheduled Bank given as security
for opening a Letter of Credit. This treatment does not understate the
net current assets of the Company.
16. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2003
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 35.56 lacs (previous year Rs. 82.13
lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 175.49 lacs (previous year Rs. 122.51 lacs) than the
depreciation charge thereon under section 205(2)(b) of the
Companies.Act, 1956 and the same is met by drawing from Revaluation
Reserve. The uplift on revalued assets discarded amounting to Rs. 28.17
lacs (previous year Rs. 250.30 lacs) has also been met by drawing from
Revaluation Reserve.
3. Sale of Vegetable Products and Advance Licenses, Interest on
Government Securities, Interest on customs duty for goods in bond, duty
draw back from Government are accounted for on cash basis and Wealth
Tax is accounted when paid.
4. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for
taxation.
5. The Stores and spares consumption is allocated to different heads
(including capital jobs) on functional basis.
6. Confirmation of balances from some of the Debtors and Creditors have
not been received.
7. Consignment Sales and Expenses are incorporated on the basis of
Sales Notes when received from the consignees.
8. Sales tax collections are treated as liability and not as revenue of
the company.
12. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
13. Sales Tax Assessments of Dhrangadhra Unit are pending from 1992-93
(except for 1998-99 which has been completed) and Central Sales Tax
Assessments of Sahupuram Unit are pending from 1992-93. (except for
1997-98 which has been completed). Sales tax assessments under Tamil
Nadu General Sales Tax Act, are pending since 1998-99.
14. Interest and finance charges others, are net and arrived at after
deducting Rs. 115.46 lacs (previous year Rs. 70.06 lacs) being interest
earned from Banks, on Security Deposits, on Bills, on Income Tax
Refunds etc. .
15. In respect of Plant & Machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2003 amount to Rs. 220.82 lacs (previous
year Rs. 294.79 lacs).
16. Fixed Deposits with Scheduled banks includes Rs. 0.15 lacs
(previous year Rs. 2.56 lacs) pledged with banks against guarantees
given by them.
1 7. In the matter of customs duty on imported calciner, CEGAT vide its
order dt. 8th December, 2000 has held that the calciner imported would
be entitled to exemption under Notification NO. 59/87 and has also
reduced the fine levied for alleged import of the calciner without
licence to Rs. 5 lacs. The company has consequentially applied for
refund of Rs. 41.48 lacs to the Customs authorities who have denied the
claim on account of unjust enrichment. The matter is pending before the
Collector (Appeals).
18. The company, subject to the approval of the Government of Tamil
Nadu has offered to transfer the lease hold rights and interest in 3185
acres and 153 cents of leasehold land at Vedaranyam to Gujarat Heavy
Chemicals Ltd. (GHCL), for a lumpsum consideration of Rs. 50 lacs. The
increase in lease rent, cess, etc. on the said lease hold land relating
to the past period, claimed by the State Government is disputed in a
writ petition filed and pending in the Madras High Court.
The consideration of Rs. 50 lacs payable by GHCL would be paid after
deducting payments, if any, made by them towards increase in lease
rent.
20. (a) Sundry Creditors (Schedule K) Include Rs. 33.57 lacs due to
small scale and ancillary undertakings. This amount has been determined
to the extent such parties have been identified from available
information. This has been relied upon by the auditors. (b) The small
scale undertakings from whom amounts outstanding for more than 30 days
are as under:-
(1) C.I. Pipes Mfg. Corporation (2) Gautam Minerals (3) Heena Minerals
(4) Bapodra Minerals (5) Balyogi Corporation (6) Munu Trade Links (7)
ESVEE Agro Polymers.
FORMING PART OF THE BALANCE SHEET
21. No provision has been made for Rs. 52.96 lacs being amount of
increase in basic wages of piece rate workers of Salt works at Kuda,
Dhrangadhra determined under notification dated 5th October, 2000
issued by the Govt. of Gujarat, as the company's civil application
challenging the notification is pending in the High Court of Gujarat.
22. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "1" to "6" form an integral part of the Profit and Loss
Account.
Previous year figures are regrouped to match with current years'
grouping.
Mar 31, 2002
Share Capital
Of the Equity Shares
(1) The following Shares were allotted as fully paid-up without
payment being received in cash:
(a) 1,05,000 Shares to Vendors.
(b) 910 Shares to Equity Shareholders of the erstwhile PRC Limited,
pursuant to the amalgamation with the Company.
(2) 74,90,197 Shares were allotted as fully paid-up Bonus Shares by
Capitalisation of Capital Redemption Reserve, Share Premium Account
and General Reserve.
(3) 53,33,310 Shares were issued and allotted consequent to conversion
of Part A of the 26,66,655 Partly Convertible Debentures allotted in
April 1992.
(4) 92,25,000 Shares were issued in 1994-95 against which Global
Depository Receipts were issued by the Depository viz. Citibank, U.S.A.
(5) 56,18,905 Shares were issued and allotted pursuant to Rights issue
made during 2000-01.
Secured Loans
1. Debentures
(a) Rs. 496.04 lacs (previous year Rs. 748.04 lacs) comprising
16,62,304 - 16.5 percent Non-Convertible Debentures of Rs. 45/- each
are redeemable at par from May 2001 to February 2004 in 12 quarterly
instalments and are secured by a mortgage of all the movable and
immovable properties of the Company, present and future, ranking
subsequent, subservient and subordinate to all prior mortgages/charges
created and to be created in favour of Public Financial Institutions/
Banks for purchase of assets or for working capital or for purchase of
specific items of machinery and equipment under any Deferred Payment
Scheme or Bill Re-discounting Scheme ranking pari passu with the
mortgage referred to in Note l(b) below.
(b) Rs. 258.45 lacs (previous year Rs. 345.45 lacs) comprising of
3,45,450 - 14 percent Non-Convertible Debentures of Rs. 100/- each are
redeemable at par from August 2001 to May 2004 in 12 quarterly
instalments and are secured by a mortgage of all the movable and
immovable properties of the Company ranking subsequent, subservient
and subordinate to all prior mortgages/charges and created/to be
created in future, in favour of Public Financial Institutions/Banks
for purchase of assets or for working capital or for purchase of
specific items of machinery and equipment under any Deferred Payment
Scheme or Bill Re-discounting Scheme and rank pari passu with the
mortgage referred to in Note 1(a) above.
(c) Rs. 933.33 lacs (previous year Rs. 1,400 lacs) comprising of
14,00,000 - 17.5 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with LIC/UTI/GIC and its subsidiaries and Army Group
Insurance Fund are redeemable at par from October 2001 in three equal
annual instalments and are secured by a legal mortgage of all the
immovable and movable properties of the Company (except Specific assets
purchased under Deferred Credit facility from SIDBI and hypothecated to
PNB referred to in Note 4) ranking pari passu with the charges referred
to in Notes 2(c), 3(a) and 3(b).
2. Banks
(a) Rs. Nil lacs (previous year Rs. 300 lacs) term loan from Punjab
National Bank (PNB) is secured by way of exclusive charge by
hypothecation of the assets purchased from the loan amount viz. 3
numbers of 6 MW DC Sets, Switchgears, Cables etc.
(b) Rs. 340.60 lacs (previous year Rs. 1,241.55 lacs) by way of working
capital facilities from Banks are secured by hypothecation of all
inventories, book debts and all other movables of the company and are
further secured by a second charge on all the fixed assets of the
company excepting specific items of machinery purchased or to be
purchased under Deferred Credit Facility from SIDBI and hypothecated
to PNB referred to in Note 4 below.
(c) Rs. Nil lacs (previous year Rs. 162.60 lacs) by way of Foreign
Currency Loan from EXIM Bank and Rs. NIL (previous year Rs. 62.50
lacs) by way of Rupee Term Loan from EXIM Bank are secured by
hypothecation/mortgage of the movable/ immovable properties of the
company but subject to such specific items of machinery purchased or
to be purchased under Deferred Credit Facility from SIDBI and
hypothecated to PNB referred to in Note (4) ranking pari passu with
the charges referred to in Notes 1(c), 3(a) and 3(b) but subject to
prior charges created/to be created on current assets and book debts
in favour of banks for working capital facilities.
(d) Rs. 96.43 lacs (previous year Rs. 160.72 lacs) by way of term loan
from EXIM Bank under Production Equipment Finance Program are secured
by way of exclusive charge on movable fixed assets acquired viz. 7
digestors and other equipment.
(e) Rs. 88.41 lacs (previous year Rs. 76.78 lacs) by way of
hypothecation of vehicles accquired under Hire purchase Scheme.
3. Other Loans
(a) Rs. 56.00 lacs (previous year Rs. 284 lacs) by way of Rupee Term
Loans from Financial Institutions are secured by hypothecation/mortgage
of the movable/immovable properties of the Company such specific assets
purchased under Deferred Credit facility from SIDBI and hypothecated to
PNB referred to in Note (4) ranking pari passu with the charges
referred to in notes 1(c), 2(c) and 3(b) but subject to prior charges
created/to be created on current assets and book debts in favour of
banks for working capital facilities.
(b) Rs. 506.03 lacs (previous year Rs. 761.49 lacs) by way of Foreign
Currency Loan from IDBI are secured by hypothecation/ mortgage of the
movable/immovable properties of the company subject to such specific
items of machinery purchased or to be purchased under Deferred Credit
facility from SIDBI and hypothecated to PNB referred to in Note 4 and
7 digestors and other equipment exclusively charged to EXIM Bank
referred to in Note 2(d) ranking pari passu with the charges referred
to in Notes 1(c), 2(c) and 3(a) but subject to prior charges created/to
be created on current assets and book debts in favour of banks for
working capital facilities.
(c) Rs. Nil (previous year Rs. 220 lacs) by way of Working Capital
Loan from IDBI are secured by hypothecation of movable assets of the
company (save and except book debts and 7 digestors and other equipment
exclusively charged to EXIM Bank referred to in Note 2 (d)) but subject
to prior charges created/to be created on current assets and book debts
in favour of banks for working capital facilities and on specific items
of machinery purchased under Deferred Payment facilities granted by
SIDBI and co-accepted by PNB referred to in Note 4.
(d) Rs. Nil (previous year Rs. Nil) outstanding under bill discounting
facility of Rs. 400 lacs sanctioned by SIDBI are secured by a second
charge by way of hypothecation of the movable properties both present
and future and are further secured by a second charge by way of
mortgage of the immovable properties of the Company.
(e) Rs. 830 lacs (previous year Rs. 1,298 lacs) by way of corporate
loan from IDBI are secured by hypothecation of movable properties of
the company (save and except 7 digestors and other equipment which are
charged exclusively to EXIM Bank under Production Equipment Finance
Program referred to in Note 2(d) but subject to prior charges created/
to be created on current assets and book debts in favour of banks for
working capital facilities and such specific items of machinery
purchased or to be purchased under Deferred Credit facility from SIDBI
and hypothecated to PNB referred to in Note (4).
f) Rs. 697.59 lacs (previous year Rs. 375 lacs) by way of term loan
from IDBI for pollution abatement and debottle necking/ modernisation
schemes secured by a first mortgage in favour of IDBI on the companys
immovable properties, both present and future and a first charge by
way of hypothecation of all movables (save and except 7 digestors and
other equipments which are charged exclusively to EXIM Bank under
Production Equipment Financial Program referred to in Note 2(d))
subject to prior charges created and/or to be created in favour of the
companys banks on inventories and book debts for securing working
capital and specific items of machinery purchased or to be purchased
under Deferred Credit facility from SIDBI and hypthecated to PNB
referred to in Note 4 and ranking pari passu with the charges referred
to in Notes 1(a), (c), 2(c), and 3(a), (b), (c), (e).
4. Deferred Credits outstanding as under from SIDBI are against
deferred payments Gurantee/Co-Acceptance facility of Rs. 100 lacs
granted by PNB which is secured by hypotecation of the special assets
purchased under such facility.
Other notes
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 82.13 lacs (previous year Rs.
2174.62 lacs)
2. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 122.51 lacs (previous year Rs. 137.98 lacs) than the
depreciation charge thereon under section 205(2)(b) of the Companies
Act, 1956 and the same is met by drawing from Revaluation Reserve. The
uplift on revalued assets discarded amounting to Rs. 250.30 lacs
(previous year Rs. 2.11 lacs) has also been met by drawing from
Revaluation Reserve.
3. Sale of Vegetable Products and Advance Licenses, Interest on
Government Securities, Interest on customs duty for goods in bond,
duty draw back from Government are accounted for on cash basis and
Wealth Tax is accounted when paid.
4. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for
taxation.
5. The Stores and spares consumption is allocated to different heads
(including capital jobs) on functional basis.
6. Confirmation of balances from some of the Debtors, Creditors,
Depositors and Banks have not been received.
7. Consignment Sales and Expenses are incorporated on the basis of
Sales Notes when received from the consignees.
8. Sales tax collections are treated as liability and not as revenue
of the company.
9. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
10. Sales Tax Assessments of Dhrangadhra Unit are pending from 1990-91
and Central Sales Tax Assessments of Sahupuram Unit are pending from
1990-91. Sales Tax assessments under Tamil Nadu General Sales Tax Act,
are pending since 1997-98.
11. Previous years expenses accounted this year are Rs. 26.05 lacs
(previous year Rs. 19.53 lacs). Previous years income/sales accounted
this year are Rs. Nil (previous year Rs. 17.59 lacs).
12. Interest and finance charges others, are net and arrived at after
deducting Rs. 70.06 lacs (previous year Rs. 37.01 lacs) being interest
earned from Banks, on Inter-corporate Deposits, Security Deposits, on
Bills, on Income Tax Refunds etc.
13. In respect of Plant & Machinery, equipment and other items taken
on lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2002 amount to Rs. 294.79 lacs (previous
year Rs. 427.26 lacs)
14. Fixed Deposits with Scheduled banks includes Rs. 2.56 lacs
(previous year Rs. 63.52 lacs) pledged with banks against guarantees
given by them.
15. In the matter of customs duty on imported calciner, CEGAT vide its
order dt, 8th December, 2000 has held that the calciner imported would
be entitled to exemption under Notification NO. 59/87 and has also
reduced the fine levied for alleged import of the calciner without
licence to Rs. 5 lacs. The company has consequentially applied for
refund of Rs. 41.48 lacs to the Customs authorities who have issued a
notice requiring the company to show cause why the refund cannot be
denied on account of unjust enrichment. The matter is pending before
the customs authorities.
16. The company, subject to the approval of the Government of Tamil
Nadu has offered to transfer the lease hold rights and interest in
3185 acres and 153 cents of leasehold land at Vedaranyam to Gujarat
Heavy Chemicals Ltd. (GHCL), for a lumpsum consideration of Rs. 50
lacs. The increase in lease rent, cess, etc. on the said lease hold
land relating to the past period, claimed by the State Government is
disputed in a writ petition filed and pending in the Madras High Court.
A fresh conducting agreement has been executed with GHCL after
terminating the existing agreement with Double Dot Finance Ltd.
(formerly known as DCW Home Products Ltd.). The consideration of Rs.50
lacs payable by GHCL would be paid after deducting payments, if any,
made by them towards increase in lease rent.
17. Sundry Creditors include liability for vehicles purchased
on hire purchase Rs. 7.96 lacs
Less: interest included in above Rs. 1.12 lacs
Rs. 6.84 lacs
18. In view of inadequate profits no commission is payable to the
managing directors and the whole time director and hence computation
of net profits under section 349 of the Companies Act, 1956 has not
been given.
19. (a) Sundry Creditors ( Schedule K) include Rs. 81.48 lacs due to
small scale and ancillary undertakings. This amount has been determined
to the extent such parties have been identified from available
information. This has been relied upon by the auditors.
(b) The undertakings from whom amounts outstanding for more than 30
days in respect of small scale undertakings where such dues exceed Rs.1
lac are as under:-
(1) Akash Coke (2) C.I. Pipes Mfg. Corporation (3) Gautam Minerals (4)
R. R. Minerals (5) Bapodra Minerals (6) Balyogi Corporation (7) Jayesh
Trading Co. (8) Jitendra Minerals (9) Kirti Minerals.
20. Based on the comparison between the market value of Business
Centre Building as valued by a valuer and the net value as appearing
in the books of account, the company has provided Rs. 1263.60 las
towards dimunition in the value of buidling to recognise impairment.
21. No provision has been made for Rs. 52.96 lacs being amount of
increase in basic wages of piece rate workers of Salt works at Kuda,
Dhrangadhra determined under notification date 5th October, 2000
issued by the Govt. of Gujarat, as the companys civil application
challenging the notification is pending in the High Court of Gujarat.
22. Figures are expressed in lacs and have been rounded off to the
nearest thousands.
23. Previous year figures are regrouped to match with current years
grouping.
Mar 31, 2001
1. Of the Equity Shares
(1) The following Shares were allotted as fully paid-up without payment
being received in cash :
(a) 1,05,000 Shares to Vendors.
(b) 910 Shares to Equity Shareholders of the erstwhile PRC Limited,
pursuant to the amalgamation with the Company.
(2) 74,90,197 Shares were allotted as fully paid up Bonus Shares by
Capitalisation of Capital Redemption Reserve, Share Premium Account and
General Reserve.
(3) 53,33,310 Shares were issued and allotted consequent to conversion
of Part A of the 26,66,655 Partly Convertible Debentures allotted in
April 1992.
(4) 92,25,000 Shares were issued in 1994-95 against which Global
Depository Receipts were issued by the Depository viz. Citibank, U.S.A.
(5) 56,18,905 shares were issued and allotted pursuant to Rights issue
made during the year.
6. Debentures
(a) Rs. 748.04 lacs (previous year Rs. 748.04 lacs) comprising
16,62,304 - 16.5 percent Non-Convertible Debentures of Rs. 45/- each
are redeemable at par from May 2001 to February 2004 in 12 quarterly
instalments and are secured by a mortgage of all the movable and
immovable properties of the Company, present and future, ranking
subsequent, subservient and subordinate to all prior mortgages/charges
created and to be created in favour of Public Financial
Institutions/Banks for purchase of assets or for working capital or for
purchase of specific items of machinery and equipment under any
Deferred Payment Scheme or Bills Re-discounting Scheme ranking pari
passu with the mortgage referred to in Note 1(b) below.
(b) Rs. 345.45 lacs (previous year Rs. 345.45 lacs) comprising of
3,45,450 - 14 percent Non-Convertible Debentures of Rs. 100/- each are
redeemable at par from August 2001 to May 2004 in 12 quarterly
instalments and are secured by a mortgage of all the movable and
immovable properties of the Company ranking subsequent, subservient and
subordinate to all prior mortgages/charges and created/to be created in
future, in favour of Public Financial Institutions/Banks for purchase
of assets or for working capital or for purchase of specific items of
machinery and equipment under any Deferred Payment Scheme or Bill
Re-discounting Scheme and rank pari passu with the mortgage referred to
in Note 1(a) above.
(c) Rs. 1,400 lacs (previous year Rs. 1,400 lacs) comprising of
14,00,000 - 17.5 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with LIC/UTI/GIC and its subsidiaries and Army Group
Insurance Fund are redeemable at par from October 2001 in three equal
annual instalments and are secured by a legal mortgage of all the
immovable and movable properties of the Company (except 3 numbers of 6
MW DC Sets, Cables, Switchgears etc. which are exclusively charged to
PNB and such specific assets purchased under Deferred Credit facility
from SIDBl and hypothecated to PNB referred to in Note (4) ranking pari
passu with the charges referred to in Notes 1(d), 2(c), 3(a) , 3(b) and
3(f).
(d) Rs. Nil lacs (previous year Rs. 500 lacs) comprising of 5,00,000
-18.50 percent Non-Convertible Debentures of Rs. 100/- each privately
placed with LIC Mutual Fund are redeemable at par from April 2000 in
two equal annual instalments and are secured by a legal mortgage of all
the immovable and movable properties of the Company (except 3 numbers
of 6 MW DG Sets, Cables, Switchgears etc. which are exclusively charged
to PNB and such specific assets purchased under Deferred Credit
facility from SIDBl and hypothecated to PNB referred to in Note (4)
ranking pari passu with the charges referred to in Notes 1(c), 2(c),
3(a), 3(b) and 3(0.
7. Banks
(a) Rs. 300 lacs (previous year Rs. 900 lacs) term loan from Punjab
National Bank (PNB) is secured by way of exclusive charge by
hypothecation of the assets purchased from the loan amount viz. 3
numbers of 6 MW DG Sets, Switchgears, Cables etc.
(b) Rs. 1,241.55 lacs (previous year Rs. 2,819.42 lacs) by way of
working capital facilities from Banks are secured by hypothecation of
all inventories, book debts and all other movables of the company and
are further secured by a second charge on all the fixed assets of the
company excepting fixed assets hypothecated to PNB and referred to in
Note 2(a) above and specific items of machinery purchased or to be
purchased under Deferred Credit Facility from SIDBl and hypothecated to
PNB referred to in Note 4 below.
(c) Rs. 162.60 lacs (previous year Rs. 304.48 lacs) by way of Foreign
Currency Loan from EXIM Bank and Rs. 62.50 lacs (previous year Rs.
187.50 lacs) by way of Rupee Term Loan from EXIM Bank are secured by
hypothecation/mortgage of the movable/immovable properties of the
company (except 3 numbers of 6 MW DG sets, Cables, Switchgears etc.,
which are exclusively charged to PNB but subject to such specific items
of machinery purchased or to be purchased under Deferred Credit
Facility from SIDBI and hypothecated to PNB referred to in Note (4)
ranking par! passu with the charges referred to in Notes 1(c), 1(d),
3(a), 3(b) and 3(f) but subject to prior charges created/to be created
on current assets and book debts in favour of banks for working capital
facilities.
(d) Rs. 160.72 lacs (previous year Rs. 225.01 lacs) by way of term loan
from EXIM Bank under Production Equipment Finance Program are secured
by way of exclusive charge on movable fixed assets acquired viz. 7
digestors and other equipment.
(e) Rs. 76.78 lacs (Previous year Rs. Nil lacs) by way of hypothecation
of vehicles acquired under Hire purchase Scheme.
8. Other Loans
(a) Rs. 284 lacs (previous year Rs. 519.93 lacs) by way of Rupee Term
Loans from Financial Institutions are secured by hypothecation/mortgage
of the movable/immovable properties of the Company (except 3 Nos. of 6
MW DG Sets, Cables, Switchgears etc. which are exclusively charged to
Punjab National Bank (PNB) and such specific assets purchased under
Deferred Credit facility from SIDBI and hypothecated to PNB referred to
in Note (4) ranking pan passu with the charges referred to in notes 1
(c), 1(d), 2(c), 3(b) and 3(f) but subject to prior charges created/to
be created on current assets and book debts in favour of banks for
working capital facilities.
(b) Rs. 761.49 lacs (previous year Rs. 914.66 lacs) by way of Foreign
Currency Loan from IDBI are secured by hypothecation/ mortgage of the
movable/immovable properties of the company (except 3 Nos. of 6 MW DG
sets, Cables, Switchgears etc., which are exclusively charged to PNB
but subject to such specific items of machinery purchased or to be
purchased under Deferred Credit facility from SIDBI and hypothecated to
PNB referred to in Note 4 and 7 digestors and other equipment
exclusively charged to EXIM Bank referred to in Note 2(d) ranking pari
passu with the charges referred to in Notes 1 (c), 1 (d), 2(c), 3(a)
and 3(f) but subject to prior charges created/to be created on current
assets and book debts in favour of banks for working capital
facilities.
(c) Rs. 220 lacs (previous year Rs. 1,100 lacs) by way of Working
Capital Loan from IDBI are secured by hypothecation of movable assets
of the company (save and except book debts and 3 Nos. of 6 MW DG sets.
Cables, Swithgears etc., which are exclusively charged to PNB referred
to in Note 2(a) and 7 digestors and other equipment exclusively charged
to EXIM Bank referred to in Note 2 (d)) but subject to prior charges
created/to be created on current assets and book debts in favour of
banks for working capital facilities and on specific items of machinery
purchased under Deferred Payment facilities granted by SIDBI and
co-accepted by PNB referred to in Note 4.
(d) Rs. Nil lacs (previous year Rs. Nil lacs) outstanding under bill
discounting facility of Rs. 400 lacs sanctioned by SIDBI are secured by
a second charge by way of hypothecation of the movable properties both
present and future and are further secured by a second charge by way of
mortgage of the immovable properties of the Company.
(e) Rs. 1,298 lacs (previous year Rs. 1,766 lacs) by way of corporate
loan from IDBI are secured by hypothecation of movable properties of
the company (save and except 3 Nos. of 6 MW DG sets, Cables,
Switchgears etc., which are exclusively charged to PNB referred to in
Note 2(a) and 7 digestors and other equipment which are charged
exclusively to EXIM Bank under Production Equipment Finance Program
referred to in Note 2(d) but subject to prior charges created/to be
created on current assets and book debts in favour of banks for working
capital facilities and such specific items of machinery purchased or to
be purchased under Deferred Credit facility from SIDBI and hypothecated
to PNB referred to in Note (4).
(f) Rs. 375 lacs (Previous year Rs. Nil lacs) by way of term loan from
IDBI for pollution abatement and debottle necking/ modernisation
schemes secured by a first mortgage in favour of IDBI on the company's
immovable properties, both present and future and a first charge by way
of hypothecation of all movables (save and except 3 Nos 6 MW DG sets
Switchgears, Cables etc. exclusively charged to PNB referred to in Note
2(a), 7 digesters and other equipments which are charged exclusively to
EXIM Bank under Production Equipment Financial Program referred to in
Note 2(d)) subject to prior charges created and/or to be created in
favour of the company's banks on inventories and book debts for
securing working capital and specific items of machinery purchased or
to be purchased under Deferred Credit facility from SIDBI and
hypothecated to PNB referred to in Note 4 and ranking pari passu with
the charges referred to in Notes 1(a), (c), (d), 2(c), 3(a) and 3(b).
9. Deferred Credits outstanding as under from SIDBI are against
deferred payment Guarantee/Co-Acceptance facility of Rs. 100 lacs
granted by PNB which is secured by hypothecation of the specific assets
purchased under such facility.
31/03/2001 31/03/2000
Rs. in lacs Rs. in lacs
Total Usance Bills outstanding 47.21 98.51
Less : Interest in respect of future
Instalments included above 4.67 14.62
42.54 83.89
10. Rs. 5.02 lacs (Previous year Nil lacs) by way of hypothecation of
vehicles acquired under hire purchase scheme.
11. Under certain loan agreements entered into by the Company, the
relevant lenders have the right to convert all or part of their
outstanding loans, into equity shares of the Company at par on the
occurrence of certain defaults including non-payment.
12. AMALGAMATION OF DCW FINANCE LIMITED WITH THE COMPANY
During the year, DCW Finance Ltd., a wholly owned subsidiary of the
company was amalgamated with the company. Brief particulars of the
amalgamation are as follows:
i. General nature of business of amalgamating company.
DCW Finance Ltd., a Non Banking Finance Company was engaged in the
business of hire purchase and leasing of capital assets.
ii. Brief particulars of Scheme of amalgamation and method used to
effect the amalgamation.
(a) Pursuant to the Scheme of Amalgamation of erstwhile DCW Finance
Limited, with the Company, as approved by the shareholders in the court
convened meeting held on 9th April, 2001 and subsequently sanctioned by
the Hon'ble High Courts of Gujarat and Madras on 21st June, 2001 and
22nd June, 2001, respectively, the assets and liabilities of the
erstwhile DCW Finance Limited were transferred to and vested in the
Company as and from 1st April, 2000, the appointed date, under the
Scheme.
(b) The Amalgamation has been accounted for under the "Purchase Method"
as prescribed by Accounting Standard (AS-14) on Accounting for
Amalgamation issued by the Institute of Chartered Accountants of India.
Accordingly, the assets, liabilities and other reserves of the
erstwhile DCW Finance Limited as at 1st April, 2000 have been taken
over at their book values subject to adjustments of inter company dues
as specified in the Scheme of Amalgamation.
(c) As provided in the Scheme of Amalgamation, 1,50,00,000 equity
shares of Rs.10 each of DCW Finance Limited by the Company stand
cancelled.
13. Expenditure of Rs. 12.81 on Rights Issue of equity shares made
during the year has been charged to revenue. Such expenditure was
hitherto adjusted to the share premium account. As a result of this
change in the method of accounting, the profits for the year are lower
by Rs. 12.81 with corresponding effect on the reserves of the company.
14. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 2174.62 lacs (previous year Rs.
2061.98 lacs)
15. The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 137.98 lacs (previous year Rs. 131.93 lacs) than the
depreciation charge thereon under section 205(2)(b) of the Companies
Act, 1956 and the same is met by drawing from Revaluation Reserve. The
uplift on revalued assets discarded amounting to Rs. 2.11 lacs
(previous year Rs. 13.19 lacs) has also been met by drawing from
Revaluation Reserve.
16. Sale of Vegetable Products and Advance Licenses, Interest on
Government Securities, Interest on customs duty for goods in bond, duty
draw back from Government are accounted for on cash basis and Wealth
Tax is accounted when paid.
17. Income tax provision for the year ended 31st March, 2001 has been
computed in accordance with Sec.115-JB of the Income Tax Act, 1961 at
Rs. 55 lacs. The Company is entitled to a future tax credit of Rs. 258
lacs for years ended 31st March, 1997 to 31st March, 2000 under Section
115-JAA of the said Act.
18. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for
taxation.
19. The Stores and spares consumption is allocated to different heads
(including capital jobs) on functional basis.
20. Confirmation of balances from some of the Debtors, Creditors,
Depositors and Banks have not been received.
21. Consignment Sales and Expenses are incorporated on the basis of
Sales Notes when received from the consignees.
22. Sales tax collections are treated as liability and not as revenue
of the company.
23. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
24. Sales Tax Assessments of Dhrangadhra Unit are pending from 1990-91
and Central Sales Tax Assessments of Sahupuram Unit are pending from
1990-91. Sales Tax assessments under Tamil Nadu General Sales Tax Act,
are pending since 1997-98.
25. Interim Stay of all proceedings had been granted by the Madras High
Court pursuant to the petition filed by the Company against the pre
assessment notice issued by the Sales Tax Department for the Assessment
Year 1989-90 proposing to raise a demand aggregating to Rs. 1371.95
lacs in respect of Sahupuram Unit. The said petition has been disposed
off by the Madras High Court during the year directing the company to
present its case before the concerned authorities. The company does not
expect any significant liability in the assessment.
26. Previous years expenses accounted this year are Rs. 19.53 lacs
(previous year Rs. 15.53 lacs). Previous years income/sales accounted
this year are Rs. 17.59 lacs (previous year Rs. 2.41 lacs) .
27. Interest and finance charges others, are net and arrived at after
deducting Rs. 37.01 lacs (previous year Rs. 96.29 lacs) being interest
earned from Banks, on Inter-corporate Deposits, Security Deposits, on
Bills, on Income Tax Refunds etc.
28. In respect of plant, machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2001 amount to Rs. 427.26 lacs (previous
year Rs. 772.79 lacs)
29. Cash at bank includes Fixed Deposits pledged with banks Rs. 63.52
lacs (previous year Rs. 59.21 lacs) against guarantees given by them,
30. In the matter of customs duty on imported calciner, CEGAT vide its
order dt. 8th December, 2000 has held that the calciner imported would
be entitled to exemption under Notification NO. 59/87 and has also
reduced the fine levied for alleged import of the calciner without
licence to Rs.5 lacs. The company has consequentially applied for
refund of Rs. 41.48 lacs to the Customs authorities who have issued a
notice requiring the company to show cause why the refund cannot be
denied on account of unjust enrichment. The matter is pending before
the customs authorities.
31. No further debenture redemption reserve is created as the balance
available in the debenture redemption reserve on aggregate basis
adequately equated over 50% of the amount of debentures due for
redemption in subsequent years.
32. The company, subject to the approval of the Government of Tamil
Nadu has offered to transfer the lease hold rights and interest in 3185
acres and 153 cents of leasehold land at Vedaranyam to Gujarat Heavy
Chemicals Ltd. (GHCL), for a lumpsum consideration of Rs. 50 lacs. The
increase in lease rent, cess, etc. on the said lease hold land relating
to the past period, claimed by the State Government is disputed in a
writ petition filed and pending in the Madras High Court.
A fresh conducting agreement has been executed with GHCL after
terminating the existing agreement with DCW Home Products Ltd. The
consideration of Rs. 50 lacs payable by GHCL would be paid after
deducting payments, if any, made by them towards increase in lease
rent.
33. The imported supermizers lying in stock reflected as "stock of
traded goods" and grouped under "Inventories" are reflected at cost of
Rs. 530.84 lacs in the Balance Sheet as the same will be capitively
used for replacement of defective supermizers installed in the
operations of the Company.
34. Sundry Creditors include liability for vehicles purchased
on hire purchase Rs. 8.08 lacs
Less: interest included in above Rs. 1.31 lacs
Rs. 6.77 lacs
35. In view of inadequate profits no commission is payable to the
managing directors and the whole time director and hence computation of
net profits under section 349 of the Companies Act, 1956 has not been
given.
36. Mr. T.S. Ravikumar was appointed as Additional Director on the
Board of Directors and designated as Whole Time Director with effect
from 25th January, 2001 subject to approval by the shareholders. The
remuneration of Rs. 1.84 lacs paid to him is subject to approval of the
Shareholders at general body.
37. (a) Sundry Creditors ( Schedule K) include Rs. 144.37 lacs due to
small scale and ancillary undertakings. This amount has been determined
to the extent such parties have been identified from available
information. This has been relied upon by the auditors.
(b) The undertakings from whom amounts outstanding for more than 30
days in respect of small scale undertakings where such dues exceed Rs.
1 lac are as under.:-
(1)Akash Coke (2) C.I. Pipes Mfg. Corporation (3) S. V. Agro Polymers
(4) Premier Engineering Eqpt
38. Since the expenditure involved in the rights issue not substantial,
the same is charged to revenue.
39. Figures are expressed in lacs and have been rounded off to the
nearest thousands.
40. In view of the amalgamation of DCW Finance Ltd, the erstwhile
Wholly owned subsidiary of the company, with the company with effect
from 1st April, 2000, the figure for the current year are not
comparable to those of the previous year. Previous year figures are
regrouped wherever necessary to conform to the current years grouping.
41. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Schedule "A" to "N" form an integral part of the Balance Sheet and
Schedule "V to "6" form an integral part of the Profit and Loss
Account.
Mar 31, 2000
Notes :
1. Debentures
(a) Rs. 748.04 lacs (previous year Rs. 1,199,99 lacs) comprising
16,62,304 - 16.5 percent Non-Convertible Debentures of Rs. 45/- each
are redeemable at par from May 2001 to February 2004 in 12 quarterly
instalments and are secured by a mortgage of all the movable and
immovable properties of the Company, present and future, ranking
subsequent, subservient and subordinate to all prior mortgages/charges
created and to be created in favour of Public Financial
Institutions/Banks for purchase of assets or for working capital or for
purchase f specific items of machinery and equipment under any Deferred
Payment Scheme or Bills Red-discounting Scheme ranking pari passu with
the mortgage referred to in Note 1(b) below.
(b) Rs. 345.46 lacs (previous year Rs. 971.38 lacs) comprising of
3,45,463 - 14 percent Non-Convertible Debentures of Rs. 100/-each are
redeemable at par from August 2001 to May 2004 in 12 quarterly
installments and are secured by a mortgage of all the movable and
immovable properties of the Company ranking subsequent, subservient and
subordinate to all prior mortgages/charges and created/to be created in
future, in favour of Public Financial Institutions/Banks for purchase
of assets or for working capital or for purchase of specific items of
machinery and equipment under any Deferred Payment Scheme or Bill
Re-discounting Scheme and rank pari passu with the mortgage referred to
in Note 1(a) above.
(c) Rs. 1,400 lacs (previous year Rs. 1400 lacs) comprising of
14,00,000-17.5 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with LIC/UTI/GIC and its subsidiaries and Army Group
Insurance Fund are redeemable at par from October 2001 in three equal
annual instalments and are secured by a legal mortgage of all the
immovable and moveable properties of the Company (except 3 numbers of 6
MW DG Sets, Cables, Switchgears etc. which are exclusively charged to
PNB and such specific assets purchased under Deferred Credit facility
from SIDBI and hypothecated to PNB referred to in Note (4) ranking pari
passu with the charges referred to in Notes 1(d), 2(c), 3(a), 3(b) and
6.
(d) Rs. 500 lacs (previous year Rs. 500 lacs) comprising of
5,00,000-18.50 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with LIC Mutual Fund are redeemable at par from April
2000 in two equal annual instalments and are secured by a legal
mortgage of all the immovable and movable properties of the Company
(except 3 numbers of 6 MW DG Sets, Cables, Switchgears etc. which are
exclusively charged to PNB and such specific assets purchased under
Deferred Credit facility from IDBI and hypothecated to PNB referred to
in Note (4) ranking pari passu with charges referred to in Notes 1(c),
2(c), 3(a), 3(b) and 6.
2. Banks
(a) Rs. 900 lacs (previous year Rs. 1,568.88 lacs) term loan from
Punjab National Bank (PNB) is secured by way of exclusive charge by
hypothecation of the assets purchased from the loan amount viz. 3
numbers of 6 MW DG Sets, Switchgears, Cables etc.
(b) Rs. 2,819.42 lacs (previous year Rs. 3,564.94 lacs) by way of
working capital facilities from Banks are secured by hypothecation of
all inventories, books debts and all other movables of the company and
are further secured by a second charge on all the fixed assets of the
company excepting fixed assets hypothecated to PNB and referred to in
Note 2(a) above and specific items of machinery purchased or to be
purchased under Deferred Credit Facility from SIDBI and hypothecated to
PNB referred to in Note 4 below.
(c) Rs. 304.48 lacs (previous year Rs. 444.31 lacs) by way of Foreign
Currency Loan from EXIM Bank and Rs. 187.50 lacs (previous year Rs.
312.50 lacs) by way of Rupee Term Loan from EXIM Bank are secured by
hypothecation/mortgage of the movable/immovable properties of the
company (except 3 numbers of 6 MW DG sets, Cables, Switchgears etc.,
which are exclusively charged to PNB but subject to such specific items
of machinery purchased or to be purchased under Deferred Credit
Facility from SIDBI and hypothecated to PNB referred to in Note (4)
ranking pari passu with the charges referred to in Notes 1(c), 1(d),
3(a), 3(b) and 6 but subject to prior charges created/to be created on
current assets and book debts in favour of banks for working capital
facilities.
(d) Rs. 225.01 lacs (previous year Rs. 257.15 lacs) by way of term loan
from EXIM Bank under Production Equipment Finance Program are secured
by way of exclusive charge on movable fixed asses acquired viz. 7
digestors and other equipment.
3. Other Loans
(a) Rs. 519.93 lacs (previous year Rs. 1,166.03 lacs) by way of Rupee
Term Loans from Financial Institution are secured by
hypothecation/mortgage of the movable/immovable properties of the
Company (except 3 Nos. of 6 MW DG Sets, Cables, Switchgears etc. which
are exclusively charged to Punjab National Bank (PNB) and such specific
assets purchased under Deferred Credit facility from SIDBI and
hypothecated to PNB referred to in Note (4) ranking pari passu with the
charges referred to in notes 1(c), 1(d), 3(b) and 6 but subject to
prior charges created/to be created on current assets and book debts in
favour of banks for working capital facilities.
(b) Rs. 914.66 lacs (previous year Rs. 980.08 lacs) by way of Foreign
Currency Loan from IDBI are secured by hypothecation/mortgage of the
movable/immovable properties of the company (except 3 Nos. of 6 MW DG
sets, Cables, Switchgears etc., which are exclusively charged to PNB
but subject to such specific items of machinery purchased or to be
purchased under Deferred Credit facility from SIDBI and hypothecated to
PNB referred to in Note 4 and 7 digestors and other equipment
exclusively charged to EXIM Bank referred to in Note 2(d) ranking pari
passu with the charges referred to in Notes 1(c), 1(d), 2(c), 3(a) and
6 but subject to prior charges created/to be created on current assets
and book debts in favour of banks for working capital facilities.
(c) Rs. 1,100 lacs (previous year Rs. 1,100) by way of Working Capital
Loan from IDBI are secured by hypothecation of movable assets of the
company (save and except book debts and 3 Nos. of 6 MW DG sets, Cables,
Switchgears etc., which are exclusively charged to PNB referred to in
Note 2(a) and 7 digestors and other equipment exclusively charged to
EXIM Bank referred to in Note 2 (d)) but subject to prior charges
created/to be created on current assets and book debts in favour of
banks for working capital facilities and on specific items of machinery
purchased under Deferred Payment facilities granted by SIDBI and
co-accepted by PNB referred to in Note 4.
(d) Rs. Nil lacs (previous year Rs. Nil) outstanding under bill
discounting facility of Rs. 400 lacs sanctioned by SIDBI are secured by
a second charge by way of hypothecation of the movable properties both
present and future and are further secured by a second charge by way of
mortgage of the immovable properties of the Company.
(e) Rs.1,766 lacs (previous year Rs. 1,000 lacs) by way of corporate
loan from IDBI are secured by hypothecation of movable properties of
the company (save and except 3 Nos. of 6 MW DG sets, Cables,
Switchgears etc., which are exclusively charged to PNB referred to in
Note 2(a) and 7 digestors and other equipment which are charged
exclusively to EXIM Bank under Production Equipment Finance Program
referred to in Note 2(d) but subject to prior charges created/to be
created on current assets and book debts in favour of banks for working
capital facilities and such specific items of machinery purchased or to
be purchased under Deferred Credit facility from SIDBI and hypothecated
to PNB referred to in Note (4).
4. Deferred Credits outstanding as under from SIDBI are against
deferred payment Guarantee/Co-Acceptance facility of Rs. 100 lacs
granted by PNB which is secured by hypothecation of the specific assets
purchased under such facility.
31/03/2000 31/03/1999
Rs. in Lacs Rs. in Lacs
Total Usance Bills outstanding 98.51 162.01
Less : Interest in respect of future
Instalments included above 14.62 31.12
83.89 130.89
5. Under certain loan agreements entered into by the Company, the
relevant lenders have the right to convert all or part of their
outstanding loans, into equity shares of the Company at par on the
occurrence of certain defaults including non-payment.
6. The Company has been sanctioned Foreign Currency Loan of US$ 15
Million by IDBI for setting up a project to manufacture Iron Oxide.
Pending disbursements of the same, the company has created a charge on
its movable/immovable assets similar to those indicated in Notes 2(c)
and 3(b).
B. NOTES ON ACCOUNTS
1. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 2061.98 lacs (previous year Rs.
844.28 lacs).
2. (a) Consequent to revision in the economic life of the revalued
assets by the reorganised valuers, depreciation rates adopted for those
assets for the year are lower than the rates of the earlier year. This
has no impact on the profits of the year since the extra depreciation
over that provided under the Companies Act, 1956 would have been met by
transfer from revaluation reserve.
(b) The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 131.93 lacs (previous year Rs. 136.34 lacs) than the
depreciation charge thereon under Section 205(2)(b) of the Companies
Act, 1956 and the same is met by drawing from Revaluation Reserve. The
uplift on revalued assets discarded amounting to Rs. 13.19 lacs
(previous year Rs. 45.48 lacs) has also been met by drawing from
Revaluation Reserve.
3. Sale of Vegetable Products and Advance Licenses, Interest on
Government Securities, Interest on customs duty for goods in bond, duty
draw back from Government are accounted for on cash basis and Wealth
Tax is accounted when paid.
4. Income tax provision for the year ended 31st March, 2000 has been
computed in accordance with Sec. 115-JA of the Income Tax Act, 1961 at
Rs. 50 lacs. The Company is entitled to a future tax credit of Rs. 258
lacs (including Rs. 208 lacs for years ended 31st March, 1997 to 31st
March, 1999) under Section 115-JAA of the said Act.
5. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for
taxation.
6. The Stores and spares consumption is allocated to different heads
(including capital jobs) on functional basis.
7. Confirmation of balances from some of the Debtors, Creditors,
Depositors, Banks and financial institutions have not been received.
8. In compliance with Accounting Standard - 2 (Revised) on "Valuation
of Inventories" issued by the Institute of Chartered Accountants of
India, which is mandatory for accounting periods commencing from 1st
April, 1999, the Company has :
(a) Provided liability for excise duty on Finished Goods lying at
factories and Customs Duty on Raw Materials and Trading Stock lying at
bonded warehouse, at the close of the year, resulting in increase in
the value of inventories and corresponding increase in Current
Liabilities by Rs. 428.15 lacs. However, this has no impact on the
profits for the year.
(b) Changed the computation of cost of Raw Material produced,
conversion cost of raw materials, process stock and finished goods by
including depreciation and a systematic allocation of factory and
administration overheads. This change has resulted in a net decrease
in the value of inventories and profits by Rs. 22.47 lacs.
(c) Ilmenite Stock which hitherto was valued at net contracted sale
value has in this year been valued at the lower of cost or net
realisable value. This change has no impact on the profits for the
year.
(d) Identified machinery spares aggregating to Rs. 311.78 lacs
relatable to fixed assets and whose use is expected to be irregular,
which hitherto were considered as part of inventory, have in this year
been included under "Fixed Assets" as "Machinery/Spares for erection
and replacement" to be capitalised on usage and amortised over the
residual life of the related machinery. This change has the effect of
increase in Fixed Assets with consequential decrease in Inventories.
9. Modvat credit on capital goods which hitherto was recognised as
income, has in this year been reduced from the cost of fixed asset and
depreciation charged accordingly. This change has the net effect of
decreasing the profit for the year by Rs. 57.64 lacs.
10. Consignment Sales and Expenses are incorporated on the basis of
Sales Notes when received from the consignees.
11. Based on approval of Reserve Bank of India, the amount of S$
53565.30 (Rs. 13.39 lacs) realised on execution of decree in favour of
the company against the supplier from whom electrical stores and spares
were imported in earlier years and which was lying in escrow with the
lawyers, has been accounted in the current year.
12. Sales tax collections are treated as liability and not as revenue
of the Company.
13. Encroaches have occupied some portions of the land belonging to the
Company at Sahupuram. Efforts are being made to evict them.
14. Pursuant to arrangement with DCW Finance Ltd. (wholly owned
subsidiary) the liability for payment to raw material suppliers on the
expiry of the credit period has been undertaken to be discharged by
them. The said amount is credited to the account of the subsidiary on
the date of receipt of raw materials at part at the then prevailing
rate of exchange and is treated as loan. Interest @ 9% p.a. is
credited on the outstanding balances. The outstanding balance lying to
the credit of subsidiary company is shown as unsecured loan in the
Balance Sheet.
15. Sales Tax Assessments of Dhrangadhra Unit and Central Sales Tax
Assessments of Sahupuram Unit are pending from 1990-91.
16. Interim Stay of all proceedings has been granted by the Madras High
Court pursuant to the petition filed by the Company against the pre
assessment notice issued by the Sales Tax Department for the Assessment
Year 1989-90 proposing to raise a demand aggregating to Rs. 1371.95
lacs in respect of Sahupuram Unit.
17. Previous year expenses accounted this year are Rs. 15.53 lacs
(previous year Rs. 95.04 lacs). Previous year income/sales accounted
this year are Rs. 2.41 lacs (previous year Rs. 163.24).
18. Interest and finance charges others, are net and arrived at after
deducting Rs. 96.29 lacs (previous year Rs. 102.88 lacs) being interest
earned from Banks, on Inter-corporate Deposits, Security Deposits, on
Bills, on Income Tax Refunds etc.
19. In respect of plant, machinery equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 2000 amount to Rs. 772.79 lacs (previous
year Rs. 407.30 lacs).
20. Cash at bank includes Fixed Deposits pledged with banks Rs. 59.21
lacs (previous year Rs. 84.59 lacs) against guarantees given by them.
21. In the matter of customs duty on imported calciner, the
Commissioner of Customs consequent to denovo adjudication has ordered
that the calciner imported be classified under heading No. 8479.89 of
the Customs Tariff and the inclusion of basic engineering and specific
charges of Rs. 51.27 lacs in arriving at the assessable value and
transaction value of the calciner for levy of customs duty. He has
also imposed a fine of Rs. 51.27 lacs for alleged import of the
calciner without a licence. The company has filed an appeal with CEGAT
against the order who have, pending final hearing, stayed the recovery
of the fine. Based on the denovo adjudication the aggregate customs
duty works out to Rs. 150.66 lacs against which the Company has already
paid Rs. 197.14 lacs. The Company has given an undertaking to create a
second charge on the imported calciner favouring customs authority.
22. No further debenture redemption reserve is created as the balance
available in the debenture redemption reserve on aggregate basis
adequately equated over 50% of the amount of debentures due for
redemption in subsequent years.
23. The Company, subject to the approval of the Government of Tamil
Nadu has offered to transfer the lease hold rights and interest in 3185
acres and 153 cents of leasehold land at Vedaranyam to Gujarat Heavy
Chemicals Ltd. (GHCL), for a lumpsum consideration of Rs. 50 lacs.
The increase in lease rent, cess, etc. on the said lease hold land
relating to the past period, claimed by the State Government is
disputed in a writ petition filed and pending in the Madras High Court.
A fresh conducting agreement has been executed with GHCL after
terminating the existing agreement with DCW Home Products Ltd. The
consideration of Rs. 50 lacs payable by GHCL would be paid after
deducting payments, if any, made by them towards increase in lease
rent.
24. The imported supermizers lying in stock reflected as "stock of
traded goods" grouped under "inventories" have a realisable value
atleast equal to their carrying cost in the Balance Sheet.
25. Sundry Creditors include liability for vehicles purchased
on hire purchase Rs. 3.82 lacs
Less interest included in above Rs. 0.22 lac
Rs. 3.60 lacs
26. In view of inadequate profits no commission is payable to the
managing directors and the whole time director and hence computation of
net profits under Section 349 of the Companies Act, 1956 has not been
given.
27. (a) Sundry Creditors (Schedule K) in include Rs. 106.37 lacs due to
small scale and ancillary undertakings.
(b) The undertakings from whom amounts outstanding for more than 30
days in respect of small scale undertakings where such dues exceed Rs.
1 lac are as under. :-
(1) Akash Coke 2) R.R. Minerals 3) Heena Minerals 4) Shiv Shakti
Mineral 5) Premier Engineering Eqpt. 6) Gautam Minerals.
Mar 31, 1999
I. Of the Equity Shares :
1) The following Shares were allotted as fully paid-up without payment
being received in cash
a) 1,05,000 Shares to Vendors
b) 910 Shares to Equity Shareholders of the erstwhile PRC Limited,
pursuant to the amalgamation with the Company.
2) 74,90,197 Shares were allotted as fully paid up Boots Shares by
Capitalisation of Capital Redemption Reserve, Share Premium Account and
General Reserve.
3) 53,33,310 Shares were issued and allotted consequent to conversion
of Part A of the 26,66,655 partly convertible debentures allotted in
April 1992.
4) 92,25,000 Shares were issued in 1994-95 against which Global
Depository Receipts were issued by the Depository viz. Citibank U.S.A.
II. The Company has given an option on its unissued Share Capital by
way of entitlement to subscribe to 19,67,000 Equity Shares against
warrants issued to Debentoreholders at a premium of Rs. 40/- per share
on such dates as may be fixed by the Board. The said option, is
exercisable between August 1996 and August 1999 (Refer Note 1 (c) of
Schedule "C").
1) Debentures
a) Rs. 175 lacs 14%, Non Convertible Debentures have been redeemed
during the year. The Company is in the process of obtaining No
Objection Certificates from the erstwhile debenture holders and
completing formalities of filing documents in respect of satisfaction
of charge created in this regard.
b) Rs. 1199.99 lacs (Previous Year Rs. 1,199.99 lacs) comprising
26,66,655 126,66,655) - 16.5 percent Non-Convertible Debentures of Rs.
45 each issued as Rights in Shareholders of the Company are Redeemable
at par in April, 1999 and are Secured by a mortgage of all the movable
and immovable properties of the Company, present and future, ranking
subsequent, subservient and subordinate to all prior mortgages/charges
created and to be created in favour of Public Financial
Institutions/Banks for purchase of assets or for working capital or for
purchase of specific items of machinery and equipment under any
Deferred Payment Scheme or Bills Re-discounting Scheme and ranking
pari passu with the mortgage refereed to in Note (c) below.
c) Rs. 971.38 lacs (Previous Year Rs. 983.50 Lacs) comprising of
9,83,500 - 14 percent Non Convertible Debentures of Rs. 100/-each
issued as Rights to Shareholders of the Company are Redeemable at par
in August 1999, secured by a mortgage of all the movable and immovable
properties of the Company ranking subservient, subservient and
subordinate to all prior mortgages/charges and created/to be created in
future, in favour of Public Financial Institution/ Banks for purchase
of assets or for working capital or for purchase of specific items of
machinery and equipment under any Deferred Payment Scheme or Bill
Rediscounting Scheme and rank pari passu with the mortgage referred to
in Note 1(b) above.
As pee the terms of issue of these Debentures, 9,83,500 Detachable
Warrants have been issued to the Debentureholders with a right to pay
and apply for and get allotted 2 equity shares of Rs. 10 each at a
premium of Rs. 40 per share against each warrant held, on date as may
be fixed by the Board, which will not be earlier than 17th August,
1996 and not later than 15th August, 1999.
d) Rs. 1,400 lacs (Previous Year Rs 1,400 lacs) comprising of 14,00,000
17.5 per cent Non Convertible Debentures of Rs. 100 each privately
placed with LIC/ UTI/GIC and its subsidiaries and Army Group Issurance
Fund are redeemable at par from October 2001 in three equal annual
instalments and are secured by a legal mortgage of all the immovable
and moveable properties of the Company (except 3 numbers of 6 MW DC
Sets, Cables, Switchgears etc which are exclusively charged to PNB and
such specific assets purchased under Deferred Credit facility, from
SIDBI and hypothecated to PNB referred to in Note 4) ranking pari passu
with the charges referred to in Notes 1 (a), 1(e) 2(c), 3(a), 3(b),
3(d) and 6.
e) Rs. 500 lacs - Year Rs. 500 lacs) comprising of 5,00,000 18.50
percent Non-Convertible Debentures of Rs. 100 each privately placed
with DC Mutual Fund are redeemable at par from April 2000 in two equal
annual instalments and are secured by a legal mortgage of all the
immovable and movable properties of the Company (except 3 numbers of 6
NW DC Sets, Cables, Switchgears etc. which are exclusively charged to
PNB and such specific assets purchased under Deferred Credit facility
from SIDBI and hypothecated to PNB referred to in Note 4) ranking par
passu with the charges referred to in Notes 1(a), 1(d), 2(c), 3(a),
3(b), 3(d) and 6.
2) Banks
a) Rs. 1568.88 lacs (Previous Year Rs. 1800 lacs) term loan from Punjab
National Bank (PNB) is secured by exclusive charge by way of
hypothecation of the assets purchased from the loan, amount viz 3
numbers of 6 MW DG Sets, Switchgears, Cables etc.
b) Rs. 3365.94 lacs (Previous Year Rs. 5005.96 lacs) by way of working
capital facilities from Banks, are secured by hypothecation of all
current assets and book debts of the Company and are further secured
by a second charge on all the fixed assets of the Company.
c) Rs. 444.31 lacs (Previous Year Rs. 552.25 lacs) by way of Foreign
Currency Loan from EXIM Bank and Rs. 312.50 Lacs (Previous Year Rs.
437.50 lacs) by way of Rupee Term Loan from EXIM Bank are secured by
hypothecation/mortgage of the movable/immovable properties of the
Company (except 3 numbers of 6 MW DC sets, Cables, Switchgears etc.,
which are exclusively charged to PNB but subject to such specific items
of machinery purchased or to be purchased under Deterred Credit
facility from SIDBI and hypothecated to PNB referred to in Note 4)
ranking pari passu with the charges refereed join Notes 1(a), 1(d),
1(e), 3(a), 3(b), 3(d) and 6 but subject to prior charges created/to be
created on current assets and book debts in favour of banks for working
capital facilities.
d) Rs. 257.15 Lacs (Previous Year Rs. Nil) by way of term loan from
Exim Bank under Production Equipment Finance Program are secured by
exclusive charge on moveable fixed assets viz. 7 digestors and other
equipment purchased under the scheme
3) Other Loans :
a) Rs. 1166.03 lacs (Previous Year Rs. 1950.83 lacs) by way of Rupee
Term Loans from Financial Institutions are secured by
hypothecation/mortgage of the movable/immovable properties of the
Company (except 3 numbers of 6 MW DC Sets, Cables, Switchgears etc.
which are exclusively charged to Punjab National Bank (PNB) and such
specific assets purchased under Deferred Credit facility from SIDBI and
hypothecated to PNB referred to in Note 4) ranking pari passu with the
charges referred to in notes 1(a), 1(d), 1(e), 2(c), 3(b), 3(d) and 6
but subject to prior charges created/to be created on current assets
and book debts in favour of banks toe working capital facilities.
b) Rs. 980.80 lacs (Previous Year Rs. 516.49 lacs) by way of Foreign
Currency Loan from IDBI and working capital demand loan of Rs. 1100
lacs from IDBI (Previous Year Rs. 11110 lacs) are secured by
hypothecation/mortgage of the movable/immovable properties of the
Company (except 3 numbers of 6 MW DC sets. Cables, Switchgears etc,
which are exclusively charged to PNB but subject to such specific items
of machinery purchased or to be purchased under Deferred Credit facility
from SIDBI and hypothecated to PNB referred to in Note 4) ranking purl
passu with the charges referred to in Notes 1(a) 1(d), 1(e), 2(c),
3(a), 3(d) and 6 but subject to prior charges created/to be created on
current assets and book debts in favour of banks for working capital
facilities.
c) Rs. Nil - Previous Year Rs. 189.78 lacs) outstanding under bill
discounting facility of Rs. 400 lacs sanctioned by SIDBI are secured by
a second charge by way of hypothecation of the movable properties both
present and future and are further secured by a second charge by way of
mortgage of the immovable properties of the Company
d) Rs. 1000 lacs (Previous Year Rs. Nil) by way of corporate loan from
IDBI are secured by hypothecation/mortgage of the movable/immovable
properties of the Company (except 3 numbers of 6 MW DC sets, Cables,
Switchgears etc., which are exclusively charged to PNB and 7 digestors
and other equipment which are charged exclusively to Exim Bank under
Production Equipment Finance Program but subject to such specific,
items of machinery purchased or to be purchased under Deferred Credit
facility from SIDBI and hypothecated to PNB referred to in Note 41
ranking pari passu with the charges referred to in Notes 1(a), 1(d),
1(e), 2(c), 3(a), 3(b) and 6 but subject to prior charges created/to be
created on current assets and book debts in favour of banks for
working capital facilities.
4) Under certain loan agreements entered into by the Company, the
relevant lenders have the right to convert all or part of their
outstanding loans, into equity shares of the Company at par on the
occurrence of certain defaults including non-payment.
5) The Company has been sanctioned Foreign Currency Loan of US$ 15
Million by IDBI for setting up a project to manufacture Iron Oxide.
Pending disbursements if the same, the Company has created a charge on
its movable/immovable assets similar to those indicated in Notes 2(c)
and 3(b).
6. Estimated amount of Contracts remaining to be executed on Capital
Account and not provided for is Rs. 844.28 lacs (Previous Year Rs.
1072.68 lacs)
7. a) Consequent to revision in the economic life of the revalued
assets by the recognised valuers, depreciation rates adopted for those
assets for the year are lower than the rates of the earlier years.
This has no impact on the profits of the year since the extra
depreciation over that provided under the Companies Act, 1956 would
have been met by transfer from revaluation reserve.
b) The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 136.34 lacs Previous Year Rs. 147.31 lacs) than the depreciation
charge thereon under Section 205 (2)(b) of the Companies Act, 1956 and
the same is met by drawing from Revaluation Reserve. The uplift on
revalued assets discarded amounting to Rs. 45.48 lacs ( Previous Year
Rs. 134.02 lacs) has also been met by drawing from Revaluation Reserve.
8. Sale of Vegetable Products and Advance licenses Interest on
Government Securities, duty draw back from Government are accounted
when received and Wealth Tax is accounted when paid.
9. Income tax provision amounting to Rs. 6 lacs has been computed in
accordance with Section 115-JA of the Income Tax Act, 1961. The
Company is entitled to a future tax credit of Rs. 208 lacs under
Section 115-JAA of the said Act.
10. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for
taxation.
11. Sales tax assessments of Dhrangadhra Unit are pending from 1983-84
and Central Sales Tax assessments of Sahupuram Unit from 1990-91.
12. The Stores and spares consumption is allocated to different heads
(including capital jobs) can functional basis.
13. Confirmation of balances from some of the Debtors, Creditors,
Depositors and Banks have not been received.
14. i) Liability for excise duty in respect of finished goods
manufactured and lying in stock at factory as at 31st March 1999,
amounting to Rs. 253.48 lacs (Previous Year Rs. 253.67 lacs, will be
charged to Profit and Loss Account at the time of removable of goods.
This has no impact on the profits for the year.
ii. Liability bar customs duty payable on imported goods lying in Bond
with customs authorities as at 31st March, 1999, amounting to Rs.
147.78 lacs (Previous Year Rs. 179.16 lacs), will be charged to the
Profit and Loss Account in the year of clearance of goods. This has no
impact on the profits for the year.
15. Consignment Sales and Expenses are incorporated on the basis of
Sales Notes when received from the consignees.
16. The suit filed by the Company against the supplier from whom
electrical stores and spares were imported, claiming recovery of cost
for defective supplies plus freight, interest and other expenses
thereon has been decreed in favour of the Company against which only $
53565.30 (Rs. 22.68 lacs) have been realised and is lying in escrow
with the lawyers.
17. Sales tax collections are treated as liability and not as revenue
of the Company.
18. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
19. Pursuant to arrangement with DCW Finance Ltd (wholly owned
subsidiary) the liability for payment to raw material suppliers on the
expiry of the credit period has been undertaken to he discharged by
them. The said amount is credited to the account if the subsidiary on
the date of receipt of raw material at port at the then prevailing rate
of exchange and is treated as loan. Interest @ 12.50% p.a. is credited
on the outstanding balances. The outstanding balance lying to the
credit, subsidiary company is shown as unsecured loan in the Balance
Sheet.
20. Interim Stay of all proceedings bus been granted by the Madras
High Court pursuant to the petition filed by the Company against the
pre-assessment notice issued by the Sales Tax Department of the
Assessment Year 1989-90 proposing to raise a demand aggregating to Rs.
1371.95 lacs in respect of Sahupuram Unit.
21. Previous years sales accounted this year are Rs. 163.24 lacs
(Previous Year Rs. 549.68 lacs) and the related previous year expenses
accounted this year are Rs. 95.04 lacs (Previous Year Rs. 89.14 lacs)
22. Interest and finance charges others, are net and arrived at after
deducting Rs. 102.88 lacs (Previous Year Rs. 113.69 lacs) being
interest earned from Bank, on Inter-corporate Deposits. Security
Deposits, on Bills, on Income Tax Refunds etc.
23. In respect of plant, machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 1999 amount to Rs. 407.30 lacs (Previous
Year Rs. 755.86 lacs)
24. Cash at bank includes Fixed Deposits pledged with banks Rs. 84.59
lacs (Previous Year Rs. 83.08 lacs) against guarantees given by them.
25. In the matter of customs duty on imported calciner and related
technical engineering fees, pending readjudication and reassessment by
the Collector of Customs, Kandla, the Customs Authorities have in terms
of the Supreme Courts order encashed Rs. 70 lacs out of the Bank
Guarantees aggregating Rs. 145.23 lacs given in their favour. The
balance guarantees outstanding are reflected under contingent
liabilities. In addition, Rs. 17.5 lacs is lying as Deposit with
Gujarat High Court. The Company's rectification application has been
disposed off by CEGAT vide order dated 26th April, 1996 remanding the
matter to the Commissioner of Customs for denovo adjudication.
The Company has given an undertaking to create a second charge on
imported calciner favouring customs authority.
25. No further debenture redemption reserve is created as the balance
available in the debenture redemption reserve in aggregate basis
adequately equated over 50% of the amount of debentures due for
redemption in subsequent years.
26. The Company, subject to the approval of the Government of Tamil
Nadu has offered to transfer the lease hold rights and interest in 3185
acres aid 153 cents of leasehold land at Vedaranyam to Gujarat Heavy
Chemicals Ltd. (GHCL), for a lumpsum consideration of Rs. 50 lacs. The
increase in lease rent, cess, etc. on the said lease hold land relating
to the past period, claimed by the State Government is disputed in a
writ petition filed and pending in the Madras High Court A fresh
conducting agreement has been executed with GHCL after terminating the
existing agreement with DCW Home Products Ltd. The consideration of
Rs. 50 lacs payable by GHCL would be paid after deducting payments, if
any, made by them towards increase in lease rent.
27. The imported supermizers lying in stock reflected as "stock of
traded goods and "Stores Spare Parts, Fuel" grouped under "current
assets, Loans & Advances Inventories" have a realisable value atleast
equal to their carrying cost in the Balance Sheet and are proposed to
be used for replacement of defective supermizers installed in the
operations of the Company.
28. Sundry Creditors include liability for vehicles purchased on hire
purchase
Rs. 10.08 lacs
less interest included in above Rs. 91.35 lacs
Rs. 118.73 lacs
29. In view of inadequate profits no commission is payable to the
managing directors and the whole time director and hence computation of
net profits under Section 349 of the Companies Act, 1956 has not been
given.
30. a) The undertakings from whom amounts outstanding for more than 30
days in respect of small scale undertakings where such dues exceed Rs.
1 lac are as under.
1) Akash Coke 2) R. R. Minerals 3) Heena Minarals 4) Shiv Shakti
Mineral 5) Premier Engineering Eqpt.
b) The above information has been compiled in respect of parties to the
extent to which they would be identified as small scale and ancilliary
undertakings on the basis of information available with the Company.
31. Figures are expressed in lacs and have been rounded off to the
nearest thousands.
32. Previous year figures are regrouped wherever necessary to conform
to the current years grouping.
33. Information required in terms of Part IV of Schedule VI of the
Companies Act, 1956 is attached.
Mar 31, 1998
1. Of the Equity Shares
1) The following Shares were allotted as fully paid-up without payment
being received in cash :-
a) 1,05,000 Shares to Vendors
b) 910 Shares to Equity Shareholders of the erstwhile PRC Limited,
pursuant to the amalgamation with the Company.
2) 74,90,197 Shares were allotted as fully paid up Bonus Shares by
Capitalisation of Capital Redemption Reserve, Share Premium Account and
General Reserve.
3) 53,33,310 Shares were issued and allotted consequent to conversion
of Part A of the 26,66,655 Partly Convertible Debentures allotted in
April 1992.
4) 92,25,000 Shares were issued in 1994-95 against which Global
Depository Receipts were issued by the Depository viz. Citibank U.S.A.
2. The Company has given an option on its unissued Share Capital by way of entitlement to subscribe to 19,67,000 Equity Shares against warrants issued to Debentureholders at a premium of Rs. 40/- per share on such dates as may be yet to be issued by the Board. The said option, is exercisable between August 1996 and August 1999 (Refer Note 1(c) of
Schedule "C").
3. Debentures :
a) Rs. 17500 lacs (previous year Rs.433 33 lacs) comprising 1,75,000 -
(4,33,330) 14 percent Non-Convertible Debentures of Rs. 100/-each
privately placed with Financial Institutions and Army Group Insurance
Fund are redeemable from 1994 onwards in various annual instalments at
a premium of Rs.5/- per debenture, and are secured by a legal mortgage
of all the immovable and movable properties of the company and moveable
assets of the Company (except 3 numbers of 6 MW DC Sets, Cables,
Switchgears etc which are exclusively charged to Punjab National Bank
(PNB) and such specific assets purchased under Deferred Credit facility
from SIDBI and hypothecated to PNB referred to in Note 4) ranking pari
passu with the mortgages/charges on the Fixed Assets of the company,
referred to in Notes 1(d),1(e),2(c),3(a),3(b) and 6 but are subject to
prior charges created/to be created on current assets and book debts in
favour of Banks for working capital facilities.
b) Rs.1199.99 lacs (previous year Rs. 1199.99 lacs) comprising 26,66,655 (26,66,655) - 16.5 percent Non-Convertible Debentures of Rs 45/-each issued as Rights to Shareholders of the Company are redeemable at par in April-1999 and are secured by a mortgage of all the movable and immovable properties of the Company, present and future, ranking subsequent, subservient and subordinate to all prior mortgages/charges
created and to be created in favour of Public Financial Institutions/Banks for purchase of assets or for working capital or for
purchase of specific items of machinery and equipment under any Deferred Payment Scheme or Bills Re-discounting Scheme and ranking pari passu with the mortgage referred to in Note 1(c) below.
c) Rs.983.50 lacs (previous year Rs. 983.50 lacs) comprising of
9,83,500 - 14 percent Non-Convertible Debentures of Rs.100/- each issued as Rights to Shareholders of the Company are redeemable at par in August 1999, secured by a mortgage of all the movable and immovable properties of the Company ranking subsequent, subservient and subordinate to all prior mortgages / charges and created/to be created in future, in favour of Public Financial Institutions/ Banks for purchase of assets or for working capital or for purchase of specific items of machinery and equipment under any Deferred Payment Scheme or Bill Rediscounting Scheme and ranking pari passu with the mortgage referred to in Note 1(b) above.
As per the terms of issue of these Debentures, 9,83,500 Detachable
Warrants have been issued to the Debentureholders with a right to pay
and apply for and get allotted 2 equity shares of Rs.10/- each at a
premium of Rs. 40/- per share against each warrant held, on such date
as maybe fixed by the Board, which will not be earlier than 17th August, 1996 and not later than 18th August, 1999.
d) Rs. 1400.00 lacs (previous year Rs. 1400 lacs) comprising of
14,00,000 - 17.5 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with LIC/UTI/GIC and its subsidiaries and Army Group
Insurance Fund are redeemable at par from October 2001 in three equal
annual instalments and are secured by a legal mortgage of all the
immovable and moveable properties of the Company (except 3 numbers of
6MW DC Sets, Cables, Switchgears etc. which are exclusively charged to
PNB and such specific assets purchased under Deferred Credit facility
from SIDBI and hypothecated to PNB referred to in Note 4) ranking pari
passu with the charges referred to in Notes 1 (a),1(e),2(c),3(a),3(b)
and 6.
e) Rs.500.00 lacs (previous year Rs. 500 lacs) comprising of 5,00,000 -
18.50 percent Non-Convertible Debentures of Rs. 100/-each privately
placed with LIC Mutual Fund are redeemable at par from April 2000 in
two equal annual instalments and are secured by a legal mortgage of all
the immovable and movable properties of the Company (except 3 numbers
of 6 MW DC Sets, Cables, Switchgears etc. which are exclusively charged
to PNB and such specific assets purchased under Deferred Credit facility from SIDBI and hypothecated to PNB referred to in Note 4) ranking pari passu with the charges referred to in Notes 1(a), 1(d),2(c),3(a),3(b) and 6.
4. Banks :
a) Rs. 1800.00 lacs (previous year Rs.2400 lacs) term loan from Punjab
National Bank (PNB( is secured by exclusive charge by way of
hypothecation of the assets purchased from the loan amount viz. 3 numbers of 6 MW DC Sets, Switchgears, Cables etc.
b) Rs.5005.96 lacs (previous year Rs.4388 20 lacs) by way of working
capital facilities from Banks, are secured by hypothecation of all
current assets and book debts of the company and are further secured by
a second charge on all the fixed assets of the company.
c) Rs.552.25 lacs (previous year Rs. Nil) by way of Foreign Currency
Loan from EXIM Bank and Rs. 437.50 lacs (previous year Rs.500 lacs) by
way of Rupee Term Loan from EXIM Bank are secured by hypothecation
/mortgage of the movable/immovable properties of the company (except 3
numbers of 6 MW DC Sets, Cables, Switchgears etc., which are exclusively charged to PNB but subject to such specific items of machinery purchased or to be purchased under Deferred Credit facility from SIDBI and hypothecated to PNB referred to in Note 4) ranking pari passu with the charges referred to in Notes 1(a),1(d),1(e),3(a),3(b) and 6 but subject to prior charges created/to be created on current assets and book debts in favour of banks for working capital facilities.
5. Other Loans
a) Rs.1950.33 lacs (previous year Rs.3123.66 lacs) by way of Rupee Term
Loans from Financial Institutions are secured by hypothecation
/mortgage of the movable / immovable properties of the Company (except
3 numbers of 6MW DC Sets, Cables, Switchgears etc. which are exclusively charged to Punjab National Bank (PNB) and such specific assets purchased under Deferred Credit facility from SIDBI and hypothecated to PNB referred to in Note 4) ranking pari passu with the charges referred to in Notes 1(a),1(d),1(e),2(c),3(b) and 6 but subject to prior charges created/to be created on current assets and book debts in favour of banks for working capital facilities.
b) Rs .516.49 lacs (previous year Rs. Nil) by way of Foreign Currency
Loan from IDBI and working capital demand loan of Rs. 1100 lacs from
IDBI (previous year Rs.Nil) are secured by hypothecation/mortgage of the movable/immovable properties of the company (except 3 numbers of 6MW DC Sets, Cables, Switchgears etc., which are exclusively charged to PNB but subject to such specific items of machinery purchased or to be purchased under Deferred Credit facility from SIDBI and hypothecated to PNB referred to in Note 4) ranking pari passu with the charges referred to in Notes 1(a), 1(d), (e),2(c),3(a) and 6 but subject to prior charges created / to be created on current assets and book debts in favour of banks for working capital facilities.
c) Rs. 189.73 lacs (previous year Rs. 66.02 lacs) outstanding under bill discounting facility of Rs. 400 lacs sanctioned by SIDBI are secured by a second charge by way of hypothecation of the movable properties both present and future and are further secured by a second charge by way of mortgage of the immovable properties of the Company.
6. Deferred Credits outstanding as under from SIDBI are against Deferred Payment Guarantee/Co-Acceptance facility of Rs.100 lacs granted by PNB which is secured by hypothecation of the specific assets purchased under such facility.
7. (a) Consequent to revision in the economic life of the revalued
assets by the recognised valuers, depreciation rates adopted for those
assets for the year are lower than the rates of the earlier years. This
has no impact on the profits of the year since the extra depreciation
over that provided under the Companies Act, 1956 would have been met by
transfer from revaluation reserve.
(b) The depreciation charge on the assets revalued on 31-3-1993 is more
by Rs. 147.31 lacs (previous year Rs. 153.01 lacs) than the depreciation charge thereon under section 205(2)(b) of the Companies Act, 1956 and the same is met by drawing from Revaluation Reserve. The uplift on revalued assets discarded amounting to Rs. 134.02 lacs (previous year Rs. 163.51 lacs) has also been met by drawing from Revaluation Reserve.
8. Sale of Vegetable Products and Advance Licenses, Interest on
Government Securities, duty drawback from Government are accounted when
received and Leave Encashment and Wealth Tax are accounted when paid.
9. In respect of debts outstanding of Rs. 352.31 lacs due from two
parties which have been reflected as doubtful of recovery. Suits have
been filed and the company is hopeful of recovering the amounts.
10. Income tax provision amounting to Rs. 2 lacs has been computed in
accordance with Sec.115-JA of the Income Tax Act, 1961. The Company is
entitled to a future tax credit of Rs.202 lacs under Section 115-JAA of
the said Act.
11. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for taxation.
12. Sales tax assessments of Dhrangadhra Unit are pending from 1983-84
and Central Sales Tax assessments of Sahupuram Unit from 1990-91.
13. The Stores and spares consumption is allocated to different heads(including capital jobs) on functional basis.
14. Confirmation of balances from some of the Debtors, Creditors and
Depositors have not been received.
15. i) Liability for excise duty in respect of finished goods
manufactured and lying in stock at factory as at 31st March, 1998,
amounting to Rs. 258.67 lacs (previous year Rs.320.94 lacs) will be
charged to Profit and Loss Account at the time of removable of goods.
This has no impact on the profits for the year.
ii) Liability for customs duty payable on imported goods lying in Bond
with customs authorities as at 31st March, 1998, amounting to Rs. 179.16 lacs (previous year Rs.233.64 lacs), will be charged to the Profit and Loss Account in the year of clearance of goods. This has no impact on the profits for the year.
16. i) The Company has given undertakings to Financial Institutions to
meet the shortfall, if any, in the resources of the erstwhile subsidiary, DCW Home Products Ltd., for completion of its lodised Salt
project and Wheat Flour project and for working capital thereto, and
not to withdraw the loans given, if any, by the Company to it, during
the currency of the loans received by the said company from the financial institutions without the prior written approval of the concerned Institutions.
ii) DCW Home Products Ltd; the erstwhile subsidiary had made a
preferential offer of its equity shares of Rs. 10/- each at a premium
of Rs.20/- per share to the shareholders and Fixed Deposit holders of
DCW Ltd. The Company has offered to buy the said equity shares from the
said shareholders and Fixed Deposit holders at the offer price of Rs.30/- per share at any time after June/July 1994 but within one month
prior to the date of the first public issue of DCW Home Products Ltd.
If the offer is accepted, the commitment of DCW Ltd. will be to buy a
maximum of 10.8 lacs shares and the amount involved is Rs.324.10 lacs.
The Company has so far not been called upon to buy any of these shares.
iii) The company has given undertakings to buy at par and pay arrears
of dividend in respect of the following cumulative redeemable preference shares of Rs. 100 each of DCW Home Products Ltd., the erstwhile subsidiary, in the event of dividend falling in arrears or non-redemption on due dates :-
a) 3 lacs 16.5% cumulative redeemable preference shares of Rs. 100/-
each (due for redemption between 05/10/1998 and 08/ 10/1998).
b) 2 lacs 15% cumulative redeemable preference shares of Rs.100/- each
(due for redemption on 07/08/1998).
c) 10 lacs 19.5% cumulative redeemable preference shares of Rs. 100/-
each (due for redemption between 04/06/98 and 17/07/1998) and dividend
in arrears.
d) The Company gave an undertaking during the year to Financial Institutions to buy at certain rates 5.64 lacs equity shares of Rs. 10/- each being held by them in DCW Home Products Ltd, the erstwhile subsidiary (as and when called upon by them), if the said shares are
not listed before 31st December, 1996 on major Stock Exchanges. The
company has been called upon during the year to buy the shares at an
estimated value of Rs.80.40 lacs.
17. Consignment Sales and Expenses are incorporated on the basis of Sales Notes when received from the consignees.
18. The suit filed by the company against the supplier from whom
electrical stores and spares were imported, claiming recovery of cost
for defective supplies plus freight, interest and other expenses thereon is pending.
19. Sales tax collections are treated as liability and not as revenue
of the company.
20. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
21. Pursuant to arrangement with DCW Finance Ltd. (wholly owned
subsidiary) the liability for payment to raw material suppliers on the
expiry of the credit period has been undertaken to be discharged by them. The said amount is credited to the account of the subsidiary on
the date of receipt of raw material at port at the then prevailing rate
of exchange. The outstanding balance lying to the credit of subsidiary
company is shown as unsecured loan in the Balance Sheet. In consideration of the subsidiary undertaking to bear exchange risk and
Letter of Credit charges, etc., interest at 12.50% p.a. is credited to
them on the unsecured loan outstanding at the beginning of the year as
per agreement.
22. Interim Stay of all proceedings has been granted by the Madras High Court pursuant to the petition filed by the Company against the pre
assessment notice issued by the Sales Tax Department for the Assessment
Year 1989-90 proposing to raise a demand aggregating to Rs. 1371.95
lacs in respect of Sahupuram Unit.
23. Previous years expenses accounted thin year are Rs.89.14 lacs
(previous year Rs.1.36 lacs).
24. Interest and finance charges others, are net and arrived at after
deducting Rs 113.69 lacs (previous year Rs. 137.66 lacs) being interest
earned from Bank, on Inter-corporate Deposits, Security Deposits, on
Bills, on Income Tax Refunds etc.
25. Based on information available with the company anon 31st March
1998, there were no amounts overdue and remaining unpaid on account of
Principal / Interest to Small Scale / Ancillary Industrial Suppliers.
26. In respect of plant, machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements anon 31st March, 1998 amount to Rs. 755.86 lacs (previous
year Rs. 90.02 lacs).
27. Cash at bank includes Fixed Deposits pledged with banks Rs. 83.08
lacs (previous year Rs. 69.24 lacs) against guarantees given by them.
28. In the matter of customs duty on imported calciner and related
technical engineering fees, pending readjudication and reassessment by
the Collector of Customs, Kandla, the Customs Authorities have in terms
of the Supreme Court's order encashed Rs.70 lacs out of the Bank
Guarantees aggregating Rs. 145.23 lacs given in their favour. The balance guarantees outstanding are reflected under contingent liabilities. In addition, Rs. 17.5 lacs is lying as Deposit with Gujarat High Court. The company's rectification application has been disposed of by CEGAT vide order dated 26th April, 1996 remanding the matter to the Commissioner of Customs for denovo adjudication. The company has given an undertaking to create a second charge on imported calciner favouring customs authority.
29. The closing stock of Upgraded Ilmenite, which in the previous year
was valued at cost or net realisable value, whichever is lower, has in
the current year been valued at net contracted sale value. Consequent
to this change, the profits of the year and Reserves and Surplus at the
end of the year are higher by Rs. 619.77 lacs.
30. The Scheme of Arrangement presented by the company was approved by
the Honourable Gujarat High Court under Section 391 of the Companies
Act, 1956 by their order dated 22nd January, 1998 and consequential order under section 394 of even date passed by the High Court for the
purpose of transferring the investment undertaking of the company to
Crescent Finstock Private Limited (CFPL) and the property undertaking
of the company to DCW Estates Private Limited (DEPL). Pursuant to the
petition filed by the company subsequently, the Honourable Gujarat High
Court by their order dated 5th March, 1998 have by way of interim relief stayed the implementation, operation and execution of their order in so far as it relates to the transfer of the property undertaking to DEPL. Subject to the stay, implementation and operation stated above, the Honourable High Court order was filed with the Registrar of Companies on 10th March, 1998 and the order in so far as relating to the transfer of the investment undertaking of the company to CFPL is implemented.
Accordingly, 1,02,49,977 fully paid equity shares of Rs. 10/- each held
by the company in DCW Home Products Limited stand transferred to and
vented in CFPL together with all the debts and liabilities (including
contingent liabilities) of DCW Limited relating to such shares, at book
value, as from 1st January, 1998. As per the Scheme, Rs.1977.64 lacs
Out of the Share Premium Account and Rs.1109.84 lacs out of the General
Reserve Account of the company as at 31st March, 1997 stand adjusted.
The shareholders of the company have since approved the modified Scheme
of Arrangement for deleting references in so far as they relate to the
property undertaking, at their meeting held on 17th April, 1998.
31. DCW Home Products Ltd., the erstwhile subsidiary has declared
dividend on equity shares at its Annual General Meeting held on 30th
March, 1998. The dividend when received will be passed on to Crescent
Finstock Private Ltd., in consonance with the Scheme of Arrangement
relating to the Investment Undertaking referred to in Note B-27 of
Schedule "N", after adjusting dues, if any, of the erstwhile subsidiary
and Crescent Finstock Private Ltd.
Mar 31, 1997
NOTES TO SECURED LOANS:
1. DEBENTURES.
a) Rs. 433.33 lacs (previous year Rs. 708.33 lacs) comprising 4,33,330 -
(7,08,330) 14 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with Financial Institutions and Army Group Fund are
redeemable from 1994 onwards in various annual instalments at a premium
of Rs. 5/- per debenture and are secured by a legal mortgage of all the
immovable and movable properties of the Company and movable assets of
the Company (except 3 Numbers 6MW DG Sets, Cables, Switchgears etc.,
which are exclusively charged to Punjab National Bank (PNB) and such
specific assets purchased under Deferred Credit facility from SIDBI and
hypothecated to PNB referred to in Note No. 4) ranking pari passu with
the mortgages.charges on the Fixed Assets of the Company, referred to
in Notes 1(d), 1(e) and 3(a) but are subject to prior charges
created/to be created on current assets and book debts in favour of
Banks for working capital facilities.
b) Rs. 1,199,99 lacs (previous year Rs. 1,199.99 lacs) comprising
26,66,655 (26,66,655) - 16.5 percent Non-Convertible Debentures of Rs.
45/- each issued as Rights to Shareholders of the Company are
redeemable at par in April-1999 and are secured by a mortgage of all
the movable and immovable properties of the Company, present and
future, ranking subsequent and subservient and subordinate to all prior
mortgages/charges created and to be created in favour of Public
Financial Institutions/Banks for purchase of assets or for working
capital or for purchase of specific items of machinery and equipment
under any Deferred Payment Scheme or Bills Re-discounting Scheme and
ranking pari passu with the mortgage referred to in 1(c) below.
c) Rs. 983.50 lacs (previous year Rs. 983.50 lacs) comprising of
9,83,500 - 14 percent Non-Convertible Debentures of Rs. 100/- each
issued as Rights to Shareholders of the Company are redeemable at par
in August 1999, secured by a mortgage of all the movable and immovable
properties of the Company ranking subsequent, subservient and
subordinate to all prior mortgages/charges and created/to be created in
future, in favour of Public Financial Institutions/Banks for purchase
of assets or for working capital or for purchase of specific items of
machinery and equipment under any Deferred Payment Scheme or Bill
Rediscounting Scheme and rank pari passu with the mortgage referred to
in 1(b) above.
As per the terms of issue of these Debentures, 9,83,500 Detachable
Warrant have been issued to the Debentureholders with a right to pay
and apply for and get allotted 2 equity shares of Rs. 10/- each at a
premium of Rs. 40/- per share against each warrant held, on such date
as may be fixed by the Board, which will not be earlier than 17th
August, 1996 and not later than 18th August, 1999.
d) Rs. 1,400 lacs (previous year Rs. 1,400 lacs) comprising of
14,00,000 - 17.5 percent Non-Convertible Debentures of Rs. 100/- each
privately placed with LIC/UTI/GIC and its subsidiaries and Army Group
Insurance Fund are redeemable at par from October 2001 in three equal
annual instalments and are secured by a legal mortgage of all the
immovable and moveable properties of the Company (except 3 Numbers 6 MW
DG Sets, Cables, Switchgers etc. which are exclusively charged to PNB
and such specific assets purchased under Deferred Credit facility from
SIDBI and hypothecated to PNB referred to in Note No. 4) ranking pari
passu with the charges referred to in Notes 1(a), 1(e) and 3(a).
e) Rs. 500 lacs (previous year Nil) comprising 5,00,000 - 18.50 percent
Non-Convertible Debentures of Rs. 100/- each privately placed with LIC
Mutual Fund are redeemable at par from April 2000 in two equal annual
instalments and are secured by a legal mortgage of all the immovable
and movable properties of the Company (except 3 Numbers 6 MW DG Sets,
Cables, Switchgears etc. which are exclusively charged to PNB and such
specific assets purchased under Deferred Credit facility form SIDBI and
hypothecated to PNB referred to in Note No.4) ranking pari passu with
the charges referred to in Notes 1(a), 1(d) and 3(a).
2) FROM BANKS.
a) Rs. 2,400 lacs (previous year Rs. 3,000 lacs) term loan from Punjab
National bank (PNB) is secured by exclusively charge by way of
hypothecation of the assets purchased from the loan amount viz. 3
Numbers 6 MW DG Sets, Switchgears, Cables etc.
b) Rs. 4,388.20 lacs (previous year of Rs. 5,600.38 lacs) by way of
working capital facilities from Banks, are secured by hypothecation of
all current assets and book debts of the Company and are to be further
secured by a second charge on all the fixed assets of the Company.
3.OTHER LOANS.
a) Rs. 3623.66 lacs (previous year Rs. 2986.53 lacs) by way of Rupee
Term Loans from Financial Institutions are secured by
hypothecation/mortgage of the movable/immovable properties of the
Company (except 3 Numbers 6 MW DG Sets, Cables, Switchgears etc. which
are exclusively charged to Punjab National bank (PNB) and such specific
assets purchased under Deferred Credit facility from SIDBI and
hypothecated to PNB referred to in Note No.4) ranking pari passu with
the charges referred to in Notes 1(a), 1(d) and 1(e) but subject to
prior charges created/to be created on current assets and book debts in
favour of banks for working capital facilities.
b) Rupees 66.02 lacs (previous year Rs. 12.41 lacs) outstanding under
bill discounting facility of Rs. 400 lacs sanctioned by SIDBI are
secured by a second charge by way of hypothecation of the movable
properties both present and future and are further secured by a second
charge by way of mortgage of the immovable properties of the Company.
4) Deferred Credits outstanding as under from SIDBI are against
deferred payment Guarantee/Co-Acceptance facility of Rs. 100 lacs
granted by PNB which is secured hypothecation of the specific assets
purchased under such facility.
31.03.1997 31.03.1996
Rs. in lacs Rs. in lacs
Total Usance Bills outstanding 208.12 31.07
Less : Interest in respect of future
instalments included above 61.48 9.84
146.64 21.23
5) Under certain loan agreements entered into by the Company, the
relevant lenders have the right to convert all or part of their
outstanding loans, into equity shares of the Company at par on the
occurrence of certain defaults including non-payment.
NOTES TO FIXED ASSETS:
1. Building include Rs. 410.05 lacs being cost of ownership flats and
office accommodation in Co-operative Societies and a Limited Company
against which the Company holds shares of the face value of Rs. 0.61
lacs in Co-operative Societies and the Limited Company.
2. Land includes the leasehold land valued as Rs. 62.40 lacs.
3. Assignment deeds in respect of 9.13 acres of Land as Caustic Soda
Division yes to be executed by the State Government. Transfer Deeds in
favour of the Company are pending in view of the dispute regarding the
value payable for the purchase.
4. Addition to Fixed Assets includes Rs. 953.20 lacs (previous year Rs.
375.32 lacs) towards interest and Rs. 119.34 lacs (previous year Rs.
135.77 lacs) towards erection period expenses
5. Land, Building and Plant and Machinery located at Sahupuram Works
(Other than PVC Division) were revalued on 31.03.1993.
6. Leasehold land of 793.39 acres at Sahupuram works has not been
amortised since the Company has exercised the option to purchase.
Assignment of the leasehold land in favour of the Company is pending.
7. Fixed Assets includes assets taken over from erstwhile Pantape
Magnetics Limited at revalued figure as per independent valuer's
report.
8. Vehicles valued at Rs. 12.80 lacs were purchased under hire purchase
arrangement.
NOTES TO ACCOUNTS:
1. Certain fixed assets of the Caustic Soda Division were revalued by
an approved valuer as at 30th September, 1985. Some of these revalued
assets together with the additions between 1st October, 1985 and 31st
March, 1993 of all units at the Caustic Soda Division were again
revalued on 31st March, 1993 by Valuer's M/s. Virendra Padamsey Shah,
Mumbai. The details of assets revalued as on 31st March, 1993 are as
follows :
Book Valuer's Appreciation
Head WDV figure on Figure
31.03.93
(Rs. in lacs)
Land 235.25 314.55 79.30
Buildings 576.27 1,045.76 469.49
Plant and Machinery 3,323.65 7,378.22 4,054.57
4,135.17 8,738.53 4,603.36
The resulting appreciation has been transferred to revaluation reserve
account on 31.03.93.
2. The details of revaluation on 02.10.1991 of fixed assets of Pantape
Division are as follows :
Head Increase/(Decrease)
(Rs. in lacs)
Leasehold Land 3.06
Buildings (4.49)
Plant and Machinery (315.21)
Furnitures etc., (1.60)
(318.24)
3. (a) Consequent to revision in the economic life of the revalued
assets by the recognised valuers, depreciation rates adopted for those
assets for the year are lower than the rates of the earlier years.
This has no impact. on the profits of the year since the extra
depreciation over that provided under the Companies Act, 1956 would
have been met by transfer from revaluation reserve.
(b) The depreciation charge on the assets revalued on 31.03.1993 is
more by Rs. 153.01 lacs (previous year Rs. 163.65 lacs) than the
depreciation charge therein under Section 205(2)(b) of the Companies
Act, 1956 and the same is met by drawing from the revaluation reserve.
The uplift on revalued assets discarded amounting to Rs. 163.51 lacs
also been made by drawing from Revaluation Reserve.
4. Sale of Vegetable Products and Advance Licenses, Interest on
Government Securities, Duty draw back from Government are accounted
when received and Leave Encashment and Wealth Tax is accounted when
paid.
5. As per actuarial valuation of gratuity liability as on 31.03.97,
gratuity liability is Rs. 580.27 lacs which is adequately covered by
provision.
6. Income tax provision amounting to Rs. 200 lacs has been computed in
accordance with Sec. 115-JA of the Income Tax Act, 1961. The Company
is entitled to a future tax credit of Rs. 200 lacs under Section
115-JAA of the said Act.
7. Sales tax assessments of Dhrangadhra Unit are pending from 1978-79
and of Central Sales Tax assessments of Sahupuram Unit from 1990-91.
8. Interest and Commitment charges on the loans from Financial
Institutions for modernisation and expansion of fixed assets, though
capitalised in the books, are claimed as revenue expenditure for
taxation.
9. The Stores and Spares consumption is allocated to different heads
(including capital jobs) on functional basis.
10. Confirmation of balances from some of the Debtors, Creditors and
Depositors have been received.
11. (i) Liability for excise duty in respect of finished goods
manufactured and lying in stock at factory as at 31st March, 1997,
amounting to Rs. 320.94 lacs (previous year Rs. 292.21 lacs) will be
charged to Profit and Loss Account at the time of removal of goods.
This has no impact on the profits for the year.
(ii) Liability for customs duty payable on imported goods lying in Bond
with customs authorities as at 31st March, 1997, amounting to Rs.
233.64 lacs (previous year Rs. 23.98 lacs), will be charged to the
Profit and Loss Account in the year of clearance of goods. This has no
impact on the profits for the year.
12. (i) The Company has given undertakings to Financial Institutions to
meet the shortfall, of any, in the resources of the subsidiary, DCW
Home Products Ltd., for completion of its Iodised Salt project and
Wheat flour project and for working capital thereto, and not to
withdraw the loans given by the Company to it, during the currency of
the loans received by the subsidiary from the financial institutions
and not to transfer or create any lien in the shares held in the
subsidiary so long as any moneys remain due to the financial
institutions by the subsidiary or till the equity shares of the
subsidiary are listed on any recognised stock exchange in India,
without the prior written approval of the concerned Institution.
(ii) DCW Home Products Limited had made a preferential offer of its
equity shares of Rs. 10/- each a premium of Rs. 20/- per share to the
shareholders and Fixed Deposit holders of DCW Limited, has offered to
buy the said equity shares from the said shareholders and Fixed Deposit
holders at the offer price of Rs. 30/- per share at any time after
shares from the said shareholders and Fixed Deposit holders at the
offer price of Rs. 30/- per share at any time after June/July 1994 but
within one month prior to the date of the first public issue of DCW
Home Products Ltd. If the offer is accepted, the commitment of DCW
Ltd., will be to buy a maximum of 10.8 lacs shares and the amount
involved is Rs. 324.10 lacs.
(iii) The Company has given undertakings to buy at par and pay arrears
of dividend in respect of the following cumulative redeemable
preference shares of Rs. 100/- each of DCW Home Products Ltd., in the
event of dividend falling in arrears or non-redemption in due dates :-
(a) 3 lacs 16.5% cumulative redeemable preference shares of Rs. 100/-
each (due dates for redemption between 05.10.1998 and 08.10.1998).
(b) 5 lacs 16.5% cumulative redeemable preference shares of Rs. 100/-
each (due dates for redemption 05-05-1997)
(c) 10 lacs 19.5% cumulative redeemable preference shares Rs. 100/-
each (due dates for redemption between 04.06.98 and 17.07.1998) and
dividend in arrears.
(iv) The Company gave an undertaking during the year to Financial
Institutions to buy at certain rates 5.64 lacs equity Shares of Rs.
10/- each being held by them in DCW Home Products Ltd., (as and when
called upon by them) if the said shares are not listed before 31st
December, 1996 on major Stock Exchanges.
13. Consignment Sales and Expenses are incorporated on the basis of
Sales Notes when received from the consignees.
14. The suit filed by the company against the Supplier from whom
electrical stores and spares were imported, claiming recovery of cost
for defective supplies plus freight, interest and other expenses
thereon is pending.
15. Sales tax collections are treated as liability and not as revenue
of the Company.
16. Encroachers have occupied some portions of the land belonging to
the Company at Sahupuram. Efforts are being made to evict them.
17. Pursuant to arrangement with DCW Finance Ltd. (wholly owned
subsidiary) the liability for payment to raw material suppliers on the
expiry of the credit period has been undertaken to be discharged by
them. The said amount is credited to the account of the subsidiary on
the date of opening of Letter of Credit on the then prevailing rate of
exchange. In consideration of the subsidiary undertaking to bear
exchange risk and Letter of Credit charges, etc., interest at 16.50%
p.a. is credited to them. The outstanding balance lying to the credit
of subsidiary company is shown as unsecured loan in the Balance Sheet.
18. Interim Stay of all proceedings has been granted by the Madras High
Court pursuant to the petition filed by the Company against the pre
assessment notice issued by the Sales Tax Department for the Assessment
Year 1989-90 proposing to raise a demand aggregating to Rs. 1,371.95
lacs in respect of Sahupuram Unit.
19. Previous year's expenses accounted this year are Rs. 1.36 lacs
(previous year Rs. 13.72 lacs)
20. Interest and finance charges others, are net and arrived at after
deducting Rs. 137.66 lacs (previous year Rs. 162.97 lacs) being
interest earned from Bank, on Inter-corporate Deposits, Security
Deposits, on Bills, On Income Tax Refunds etc.
21. Based on information available with the company as on 31.03.1997,
there were no amounts overdue and remaining unpaid on account of
Principal/Interest to Small Scale/Ancillary Industrial Suppliers.
22. In respect of plant, machinery, equipment and other items taken on
lease, the future obligations towards lease rentals under the lease
agreements as on 31st March, 1997 amount to Rs. 90.02 lacs (previous
year Rs. 289.59 lacs).
23. Cash at bank includes Fixed Deposits pledged with banks Rs. 69.24
lacs (previous year Rs. 58.75 lacs) against guarantees given by them.
24. In the matter of customs duty on imported calciner and related
technical engineering fees, pending readjudication and reassessment by
the Collector of Customs, Kandla, the Customs Authorities have in terms
of the Supreme Court's order encashed Rs. 70 lacs out of the Bank
Guarantees aggregating to Rs. 145.23 lacs given in their favour. The
balance guarantees outstanding are reflected under contingent
liabilities. In addition, Rs. 17.5 lacs is lying as Deposit with
Gujarat High Court. The company's rectification application has been
disposed of by CEGAT vide order dated 26th April, 1996 remanding the
matter to the Commissioner of Customs for de novo adjudication. The
Company has given an undertaking to create a second charge on imported
calciner favouring customs authority.
25. Sundry Creditors include liability for vehicles
purchased on hire purchase Rs. 2.66 lacs
Less : Interest included in above Rs. 0.53 lacs
Rs. 2.13 lacs
26. Insurance receipts in respect of machinery damaged in transit while
being transported for installation is taken as income while expenses
for repair of the damaged machinery is capitalised. This has the
effect of increasing the profits of the year and reserves at the end of
the year by Rs. 188.45 lacs
27. In view of inadequate profits no commission is payable to the
managing directors and the whole time director and hence computation of
net profits under Section 349 of the Companies Act, 1956 lacs not been
given.
28. Figures are expressed in lacs and have been rounded off to the
nearest thousands.
29. Previous Year Figures are regrouped wherever necessary to conform
to the current year's grouping.
Mar 31, 1996
I. 20,994 - 15% Cumulative Redeemable Preference Shares of Rs.25/- each were allotted as fully paid-up without payment being received in cash an 24th December, 1993 to Shareholders of erstwhile Pantape Magnetics Limited merged with the Company pursuant to Scheme of Amalgamation sanctioned by the AAIFR and are redeemable at par at any time before the expiry of ten years from the date of allotment by giving three months notice.
II. Of the above Equity Shares:
1) The following Shares were allotted as fully paid-up without payment being received in cash:-
a) 1,05,000 Shares to Vendors.
b) 910 Shares to Equity Shareholders of the erstwhile, PRC Limited, pursuant to the amalgamation with the Company.
2) 74,90,197 Shares were allotted as fully paid-up Bonus Shares by Capitalisation of Capital Redemption Reserve, Share Premium Account and General Reserve.
3) 53,33,310 Shares were issued and allotted consequent to conversion of Part A of the 26,66,655 Partly Convertible Debentures allotted in April, 1993.
4) 92,25,000 Shares were issued in 1994-95 against which Global Depositary Receipts were issued by the Depositary viz., Citibank U.S.A.
III. The Company has given an option an its unissued Share Capital by way of entitlement to subscribe to 19,67,000 Equity Shares against warrants issued to the Debentureholders. The said option, is exercisable between August 1996 and August 1999 (Refer Nate 1(c) of Schedule "C").
Notes:
1. Debentures:
a) Rs.708.33 lacs (previous year Rs.745 lacs) comprising 7,08,000-(7,45,000) 14 percent Non-Convertible Debentures of Rs.100 each privately placed with Financial Institutions, Navel Group Insurance Fund and Array Group Insurance Fund are redeemable from 1994 onwards in various annual instalments at a premium of Rs.5/- per debenture, and are secured by a Legal mortgage of all the immovable and movable properties of the company and movable assets of the Company (except 3 Numbers 6 MW DG Sets, Cables, Switchgears etc. Which are exclusively charged to Punjab National Bank (PNB)) ranking pari passu with the mortgages/charges on the Fixed Assets of the Company, referred to in Notes 1(d) and 3(a) but are subject to prior charges created/to be created on current assets and book debts in favour of Banks for working capital facilities.
b) Rs.1199.99 lacs (previous year Rs.1199.99 lacs) comprising 26,66,655 - 16.5 percent Non-Convertible Debentures of Rs.45/- each issued as Rights to Shareholders of the Company are redeemable at par in April-1999 and are Secured by a mortgage of all the movable and immovable properties of the Company, present and future, ranking subsequent, subservient and subordinate to all prior mortgages/charges created and to be created in favour of Public Financial Institutions/Banks for purchase at assets or for working capital or for purchase of specific items of machinery and equipment under any Deferred Payment Scheme or Bills Re-discounting Scheme.
c) Rs.983.50 lacs (previous year Rs.983.50 lacs) comprising 9,83,500 - 14 percent Non-Convertible Debentures of Rs.100/- each issued as Rights to Shareholders of the Company are redeemable at par in August 1999, secured by a mortgage of all the movable and immovable properties of the Company anking subsequent, subservient and subordinate to all prior mortgages /charges and created/to be created in future, in favour of Public Financial Institutions/Banks for purchase of assets or for working capital or for purchase of specific items of machinery and equipment under any Deferred Payment Scheme or Bill Rediscounting Scheme and rank pari passu with the mortgage referred to in 1(b) above.
As per the terms of issue of these Debentures, 9,83,500 Detachable warrant have been issued to the Debentureholders with a right to pay and apply for and get allotted 2 equity shares at Rs.10 each at a premium of Rs.40 per share against each warrant held, on such date as may be fixed by the Board, which will not be earlier than 17th August, 1999 and not later than 18th August, 1999.
d) Rs.1400 lacs (previous year nil) comprising 14,00,000 - 17.5 percent Non-Convertible Debentures of Rs.100/- each privately placed with LIC/UTI/GIC and its subsidiaries and Army Group Insurance Fund are redeemable at par from October 2001 in three equal annual instalments and are secured/to be secured by a legal mortgage of all the immovable and movable properties of the Company (Except 3 Numbers 6 MW DG Sets, Cables, Switchgears etc. which are exclusively charged to PNB ranking pari passu with the charges referred to in Notes 1 (a) and 3 (a).
2. Banks:
a) Rs.3000 lacs (previous year Rs.1655 lacs) Term Loan from Punjab National Bank (PNB) is secured by exclusive charge by way of hypothecation of the assets purchased from the loan amount viz. 3 Numbers 6 MW DG Sets, Switchgears, Cables etc.
b) Rs.5600.38 lacs (previous year Rs.3001.21 lacs) by way of working capital facilities from Banks, are secured by hypothecation of all current assets and book debts of the Company and are to be further secured by a second charge on all the fixed assets of the Company.
3. Other Loans:
a) Rs.2986.53 lacs (previous year Rs.4004.35 lacs) by way of Rupee Term Loans and Foreign Currency Loans from Financial Institutions and Banks are secured by hypothecation/mortgage of the movable/immovable properties of the Company ranking pari passu with the charges referred to in Notes 1 (a),
1 (d) but subject to prior charges created/to be created on current assets and book debts in favour of banks for working capital facilities.
b) Rs.12.41 lacs outstanding under bills discounting facility of Rs.400 lacs sanctioned by SIDBI are secured by a second charge by way of hypothecation of the movable properties both present and future and are to be further
secured by a second charge by way of mortgage of the immovable properties of the Company.
4. Loan from Government of Karnataka is a liability of erstwhile Pantape Magnetics Ltd., takenover pursuant to its amalgamation with the Company and is secured by a second charge, in favour of Government of Karnataka on land, buildings and certain plant and machinery of the erstwhile company.
5. Under certain loan agreements entered into by the Company, the relevant lenders have the right to convert all or part of their outstanding loans, into equity shares of the Company at par on the occurrence of certain defaults including non-payment.
6. a) Consequent to revision in the economic life of the revalued assets by the recognised valuers, depreciation rates adopted for those assets for the year are lower than the rates of the earlier years. This has no impact on the profits of the year since the extra depreciation over that provided under the Companies Act, 1956 would have been met by transfer from revaluation reserve.
b) The depreciation charge on the assets revalued on 31-3-1993 is more by Rs.163.65 lacs (Previous Year Rs.165.80 lacs) than the depreciation charge thereon under section 205(2)(b) of the Companies Act, 1956 and the same is met by drawing from the revaluation reserve.
7. In respect of advances of Rs.61.06 lacs and debts of Rs.12.27 lacs which have been reflected as doubtful of recovery in the Accounts, decree has been obtained in the Company's favour for Rs.47.86 lacs of Advances and efforts
are being made to recover the advance. Suits have been filed/are being filed in respect of the balance advances and debts against the concerned parties and the Company is hopeful of recovering all the amounts.
8. Sale of Vegetable products and Advance Licenses, Interest on Government Securities, Duty draw back from Government are accounted when received and Wealth Tax is accounted when paid.
9. Gratuity Liability for the period prior to 1.4.1989 amounting to Rs.64.03 lacs is not provided.
10. Sales tax assessments of Dhrangadhra Unit are pending from 1977-78 and at Central Sales Tax assessment of Sahupuram Unit from 1990-91.
11. Interest and Commitment charges on the loans from Financial Institutions for modernisatian and expansion of fixed assets, though capitalised in the books, are claimed as revenue expenditure for taxation.
12. The Stores and spares consumption is allocated to different heads (including capital jabs) on functional basis.
13. Confirmation of balances from same of the Debtors, Creditors and Depositors have not been received.
14. i) Liability for excise duty in respect of finished goods manufactured and lying in stack at factory as at 31st March, 1996, amounting to Rs.292.21 lacs (Previous Year Rs.531.79 lacs) will be charged to Profit and Loss Account at the time of removable of goods. This has no impact on the profits for the year.
ii) Liability for customs duty payable on imported goods lying in Bond with customs authorities as at 31st March 1996, amounting to Rs.23.98 lacs (Previous Year Rs.38.53 lacs), will be charged to the Profit and Loss Account in the year at clearance of goods. This has no impact on the profits for the year.
15. i) The Company has given undertakings to Financial Institutions to meet the shortfall, it any, in the resources at the subsidiary, DCW Home Products Ltd., for completion of its Iodised Salt project and Wheat flour project and for working capital thereto, and not to withdraw the loans given by the Company to it, during the currency at the loans received by the subsidiary from the financial institutions and not to transfer or create any lien on the shares held in the subsidiary so long as any moneys remain due to the financial institutions by the subsidiary or till the equity shares of the subsidiary are listed an any recognised stock exchange in India, without the prior written approval of the concerned Institutions.
ii) DCW Home Products Limited made a preferential offer of its equity shares of Rs.10 each at a premium of Rs.20 per share to the shareholders and Fixed Deposit holders of DCW Ltd. DCW Ltd. has offered to buy the said equity shares from the said shareholders and Fixed Deposit holders at the offer price of Rs.30 per share at any time after June/July 1994 but before the shares of DCW Home Products Ltd. are listed on the Stack Exchange, on spot delivery basis. If the offer is accepted, the commitment of DCW Ltd. will be to buy a maximum of 108 lakh shares and the amount involved is Rs.324.10 lakhs.
iii) The Company has given an undertaking to buyback 16% - 15,00,000 Cumulative Redeemable Preference Shares of the face value of Rs.100 each, aggregating to Rs.10 crores allotted by DCW Home Products Ltd. (DHPL) to a financial institution and a finance company in certain circumstances including non-redemption.
16. Consignment Sales and Expenses are incorporated on the basis of Sales Notes received from the cansignees.
17. Sales tax collections are treated as liability and not as revenue at the Company.
18. Encroachers have occupied some portions of the Land belonging to the Company at Sahupuram. Efforts are being made to evict them.
19. Modvat Credit on Capital Goods has been recognised as income during the year. In the previous year, such Modvat was credited to the cost of Fixed Assets. As a result of the change in the method of accounting, the gross fixed assets and profit for the year are higher by Rs.308.48 lacs.
20. Pursuant to arrangement with DCW Finance Ltd. (a subsidiary) the liability for payment to raw material suppliers on the expiry of the credit period has been undertaken to be discharged by them. The said amount is credited to the account of the subsidiary on the date of receipt of raw material at the then prevalent rate of exchange. In consideration of the subsidiary undertaking to bear exchange risk and Letter of Credit charges, etc., interest at 16.50% p.a. is credited to them. The outstanding balance lying to the credit of subsidiary company is shown as unsecured loan in the Balance Sheet.
21. Interim Stay of all proceedings has been granted by the Madras High Court pursuant to the petition filed by the Company against the pre-assessment notice issued by the Sales Tax Department for the Assessment Year 1989-90 proposing to raise a demand aggregating to Rs.1371.95 lacs
in respect of Sahupuram Unit.
22. Previous year's expenses accounted this year are Rs.13.72 lacs.
23. Interest and finance charges others, are arrived at after deducting Rs.162.97 lacs (Previous Year Rs.1013.41 lacs), Tax deducted at source Rs.31.98 lacs (Previous Year Rs.181.42 lacs) being the interest earned from Bank, on Inter Corporate Deposits, Security Deposits, an Bills, on
Income tax refunds etc.
24. Based on information available with the company as on 31/3/96, there were no amounts overdue and remaining unpaid on account of Principal / Interest to Small Scale / Ancillary Industrial Suppliers.
25. Investments in quoted shares are not held as permanent investments and hence diminution in market value has not been provided.
26. Applications made in shares / debentures of other companies and shares held on behalf of third parties, arrangements, are shown as Inter Corporate Deposits. In respect at a party who defaulted in repaying inter corporate
deposit, the guarantor has issued post dated cheques dated 31st August, 1996 for a one time settlement of the balance outstanding with accrued interest upto 31st March, 1995. In view of this no interest is charged during the year.
27. In respect of plant, machinery, equipment and other items taken on lease, the future obligations towards lease rentals under the lease agreements as on 31st March, 1996 amount to Rs.289.59 lacs.
28. Cash at bank includes Fixed Deposits pledged with banks Rs.58.75 lacs (Previous Year Rs.164.84 lacs) against guarantees given by them.
29. In the matter of customs duty on imported calciner and related technical engineering fees, pending readjudication and reassessment by the Collector of Customs, Kandla, the Customs Authorities have in terms at the Supreme Court's Order encashed Rs.70 lacs during the year out of the Bank Guarantees aggregating Rs.145.23 lacs given in their favour. The balance guarantees outstanding are reflected under contingent liabilities. In addition, Rs.17.5 lacs is lying as Deposit with Gujarat High Court. The Company's
rectification application has been disposed of by CEGAT vide Order dated 26th April 1996 remanding the matter to the Collector of Customs for de nova adjudication.
Mar 31, 1995
1. (a) Consequent to revision in the economic life of the revalued assets by the recognised valuers, depreciation rates adopted for those assets for the year are lower than the rates of the earlier years. This has no impact on the profits of the year since the extra depreciation over that provided under the Companies Act, 1956 would have been met
by transfer from revaluation reserve.
(b) The depreciation charge on the assets revalued on 31.3.1993 is more by Rs. 165.80 lacs (previous year Rs. 123.88 lacs) than the depreciation charge thereon under Section 205(2)(b) of the Companies Act, 1956 and the same is met by drawing from the revaluation reserve.
2. In respect of advances of Rs. 61.06 lacs and debts of Rs. 12.27 lacs which have been reflected as doubtful of recovery in the Accounts decree has been obtained in the Company's favour for Rs. 47.86 lacs of Advances and efforts are being made to recover the advance. Suits have been
filed/are being filed in respect of the balance advances and debts against the concerned parties and the Company is hopeful of recovering all the amounts.
3. Sale of Vegetable products, Interest on Government Securities, Cash Compensatory Subsidy and Duty draw back from Government are accounted when received and Wealth Tax is accounted when paid.
4. Gratuity Liability for the period prior to 1.4.1989 amounting to Rs. 64.03 lacs is not provided.
5. Sales tax assessments of Soda Ash Unit are pending from 1976-77.
6. Interest and Commitment charges on the loans from Financial Institutions for modernisation and expansion of fixed assets, though capitalised in the books are claimed as revenue expenditure for taxation.
7. The Stores and spares consumption is allocated to different heads (including capital jobs) on functional basis.
8. Confirmation of balance for loans from some of the Debtors and Creditors have not been received.
9. (i) Liability for excise duty in respect of finished goods manufactured and lying in stock at factory as at 31st March, 1995, amounting to Rs. 531.79 lacs (previous year Rs. 537.81 lacs) will be charged to Profit and Loss Account at the time of removable of goods. This has no impact on the profits for the year.
(ii) Liability for customs duty payable on imported goods lying in Bond/with customs authorities as at 31st March,1995, amounting to Rs. 38.53 lacs (previous yea Rs. 33.71 lacs), will be charged to the Profit and Loss Ac count in the year of clearance of goods. This has no impact on the profits for the year.
10. (i) The Company has given undertakings to Financial Institutions to meet the shortfall, if any, in the resources of the subsidiary, DCW Home Products Ltd., for completion of its Iodised Salt project and Wheat flour project and for working capital thereto, and not to
withdraw the loans given by the Company to it, during the currency of the loans received by the subsidiary from the financial institutions and not to transfer or create any lien on the shares held in the subsidiary so long as any moneys remain due to the financial institutions by the
subsidiary or till the equity shares of the subsidiary are listed on any recognised stock exchange in India, without the prior written approval of the concerned Institutions.
(ii) DCW Home Products Limited made a preferential offer of its equity shares of Rs. 10/- each at a premium of Rs. 20/- per share to the shareholders and Fixed Deposit holders of DCW Ltd. DCW Ltd. has offered to buy the said equity shares from the said shareholders and Fixed Deposit holders at the offer price of Rs. 30 per share at any time after
June/July, 1994 but before the shares of DCW Home Products Ltd., are listed on the Stock Exchange on spot delivery basis. If the offer is accepted, the commitment of DCW Ltd. will be to buy a maximum of 108 lakh shares and the amount involved is Rs.324.10 lacs.
(iii) The Company has given an undertaking to buy back 16% 10,00,000 Cumulative Redeemable Preference Shares of the face value of Rs. 100/- each, aggregating to Rs. 10 crores allotted by DCW Home Products Ltd. (DHPL) to a financial institution, in certain circumstances including
non-redemption.
11. Consignment Sales and Expenses are incorporated on the basis of Sales Notes received from the consignees.
12. Sales tax collections are treated as liability and not as revenue of the Company.
13. Encroachers have occupied some portions of the Land belonging to the Company at Sahupuram. Efforts are being made to evict them.
14. (i) Modvat Credit on Capital Goods which in the previous year was considered as Income, has in this year been credited to cost of Capital Assets in consonance with the accounting standard regarding accounting for Fixed Assets issued by the Institute of Chartered Accountants of
India. This change in the method of accounting has no material effect on the profits of the year.
(ii) Debenture Issue Expenses attributable to projects, which in earlier years was charged to revenue, has this year been capitalised to projects. This change in the method of accounting has no material effect on the profits of the year.
15. Interim Stay of all proceedings has been granted by the Madras High Court pursuant to the petition filed by the Company against the pre assessment notice issued by the Sales Tax Department for the Assessment Year 1989-90 proposing to raise a demand aggregating to Rs.1371.95 lacs
in respect of Sahupuram Unit.
16. Previous year's expenses accounted this year are Rs. 0.37 lacs.
17. Interest and finance charges others, are arrived at after deducting Rs. 1015.41 lacs (previous year Rs.252.39 lacs) Tax deducted at source Rs.181.42 lacs (Previous year Rs.24.91 lacs) being the interest earned from Bank, on Inter Corporate Deposits, Security Deposits, on Bills, on
Income tax refunds etc.
18. Based on information available with the Company as on 31.3.95, there were no amounts overdue and remaining unpaid on account of Principal/Interest to Small Scale/Ancillary Industrial Suppliers.
19. Fixed Deposits of Rs. Nil (Previous year Rs. 830.25 lacs) in banks are placed against issue of Stock Invest of equivalent amount used towards application for shares/debentures in certain companies as security under Financing arrangements.
20. Applications made in shares/debentures of other companies and shares held on behalf of third parties, under financing arrangements, amounting to Rs. 184.27 lacs are shown as Inter Corporate Deposits.
21. In respect of plant, machinery, equipment and other items taken on lease, the future obligations towards lease rentals under the lease agreements as on 31st March, 1995 amount to Rs. 55.58 lacs.
22. Cash at bank includes Fixed Deposits pledged with banks Rs. 164.84 lacs (previous year Rs. 91.70 lacs) against guarantees given by them.
23. In the matter of customs duty on imported calciner and related technical engineering fees, pending readjudication and reassessment by the Collector of Customs, Kandla, the Customs Authorities have in terms of the Supreme Court's order encashed Rs. 70 lacs during the year out of the Bank Guarantees aggregating Rs. 145.23 lacs given in their
favour. The balance guaranteed outstanding are reflected under contingent liabilities. In addition, Rs. 17.5 lacs is lying as Deposit with Gujarat High Court. The Company has in July 1995 filed a Miscellaneous Application before CEGAT seeking rectification of CEGAT's order dated 16th May, 1994.
24. The loans granted by the Company were within the limits specified under Section 370 of the Companies Act as on 31st March, 1995.
25. Figures are expressed in lacs and have been rounded off to the nearest thousands.
26. Previous years figures have been regrouped wherever necessary.
27. Schedules "A" to "N" form an integral part of the Balance Sheet and Schedules "1" to "6" form an integral part of the Profit and Loss Account.
Mar 31, 1994
1. Certain fixed assets of the Caustic Soda Division were revalued by an approved Valuer as at 30th September, 1985. Some of these revalued assets together with the additions between 1st October 1985 and 31st March 1993 of all divisions at Caustic Soda Division assets were revalued on 31st March 1993 by Valuer's M/S Virendra Padamsey Shah, Bombay. The details of assets revalued as on 31st March 93 are as follows:
Head Book WDV Valuer's Appreciation
on 31-3-93 figure
(Rupees in lacs)
Land 235.26 314.55 79.30
Buildings 576.27 1045.76 469.49
Plant and Machinery 3323.65 7378.22 4054.57
-------- -------- --------
4135.17 8378.53 4603.36
-------- -------- --------
2. The resulting appreciation has been transferred to revaluation
reverse account on 31-3-93.
3. The details of revaluation on 21.10.1991 of fixed assets of Pantape division are as follows :
Head Increase/(Decrease)
in value
(Rs.in lacs)
Leasehold Land 3.06
Buildings (4.49)
Plant and machinery (315.21)
Furniture etc., (1.60)
--------
318.24
--------
4. The depreciation charge on the assets revalued on 31.3.1993 is more by Rs.13.88 lacs than the depreciation charge thereon under Section 205 (2) (b) of the Companies Act, 1956 and the same is met by drawing from the revaluation reserve.
5. Pursuant to revision made vide Notification dated 16th December, 1993 in Schedule XIV to the Companies Act, 1956, the company has provided depreciation for this year, on all assets, including existing assets at the revised rates of depreciation, in accordance with the guidance given by the Department of Company Affairs, Government of India, in their Circular No.14/93 dated 20th December, 1993, resulting in a lower charge of depreciation by Rs.535 lakhs.
6. In respect of doubtful advances of Rs.61.19 lacs and doubtful debts of Rs.12.33 lacs suits/criminal suits have been filed against the concerned parties.
7. Gratuity Liability for the period prior to 1.4.1989 amounting to Rs.63.37 lacs is not provided.
8. Sales tax assessments of Soda Ash Unit are pending from 1976-77.
- Interest and commitment charges on the loans from Financial Institutions for modernisation and expansion of fixed assets, though capitalised in the books, are claimed as revenue expenditure for taxation.
- Having regard to the above, to higher rates of depreciation available under tax laws and to other tax reliefs available, no tax liability is expected for the current year and hence no provision for taxation is made in the accounts.
9. The Stores and spares consumption is allocated to different heads (including capital jobs) on functional basis.
10. Excise duty in respect of goods manufactured by the Company
is accounted at the time of removal of goods. Hence Excise Duty
liability on closing stock of finished goods at factory has not
been provided. This has no impact on the profits for the year. The amount of excise duty payable onfinished goods not cleared as at 31st March, 1994 is estimated to be Rs.537.81 lacs.
- Customs Duty of Rs.33.71 lacs payable onimported goods lying with Customs authorities as at 31st March, 1994 will, as per the company's practice, be charged in the year of clearance of the goods. This has no impact on the profits for the year.
11. The Company has given an undertaking to Financial Institutions to meet shortfall, if any, in the resources of the subsidiary DCW Home Products Ltd., for completion of its Iodised Salt project and for working capital relating thereto, and not to transfer or create any lien on the shares held in that company and not to withdraw interest free loan given by the company to it, during the currency of loan received by the subsidiary from the Financial Institutions.
12. Consignment Sales and Expenses are incorporated on the basis
of Sales Notes received from the consignees.
13. Previous year's Expenses and Income accounted this year are
Rs 5.36 lacs.
14. Sales tax collections are treated as liability and not as revenue of the company.
15. Encroachers have occupied some portions of the Land belonging to the Company at Sahupuram. Efforts are being made to evict them.
16. Capital work-in-progress has a difference of Rs.5.42 lacs with the job ledger which is under reconciliation and necessary adjustments will be made on completion of the same.
17. Interim stay of all proceedings has been granted by the Madras High Court pursuant to the petititon filed by the company against the pre assessment notice issued by the Sales Tax Department for the Assessment year 1989-90 proposing to raise a demand aggregating to Rs.1371.95 lacs in respect of Caustic Soda Unit.
18. Interest and finance charges is after deduction of Rs.252.39 lacs
lacs (Tax deducted at source Rs 24.91 lacs) being the interest
earned from Banks and on Inter Corporate Deposits, Security Deposits on Bills and on Income tax refunds etc.
19. Unpaid amounts due as on 31.3.94 to Small Scale and/or Ancillary Industrial Suppliers to the extent identified from available information, on account of principal amounts together with interest, aggregate Rs.3.25 lakhs.
20. Fixed Deposits of Rs.830.25 lacs in banks are placed against issue of Stockinvest of equivalent amount used towards application for shares/debentures in certain companies as security under financing arrangements.
21. Cash at bank includes fixed deposits pledged with banks Rs.91.71 lacs against guarantees given by them.
22. DCW Home Products Limited made a preferential offer of its equity shares of Rs.10 each at a premium of Rs.20 per share to the shareholders and Fixed Deposits holders of DCW Ltd. DCW Ltd., has offered to buy the said equity shares from the said shareholders and Fixed Deposit holders at the offer price of Rs.30 per share at any time after June/July 1994 but before the shares of DCW Home Products ltd., are listed on the Stock Exchange, on spot delivery basis. if the offer is accepted, the commitment of DCW Ltd., will be to buy a maximum of 108 lakh shares and the amount involved is Rs.324.10 lakhs.
23. Pursuant to the order of CEGAT issued on 16th May, 1994, setting aside the order of the Collector of Customs, Kandla and remanding the case to the Collector for reassessment, adjudication on the imported calciner and technical engineering fees by the Collector of Customs. As per legal advice the company has written to the Bank not to renew the bank guarantees aggregating Rs.145.23 lacs when they expire on 10th August, 1994.
24. "Miscellaneous Expenditure" includes Share/Debenture Issue expenses on Euro-issue and Non-convertible Debentures to be adjusted against Share Premium Account in the next year, in accordance with Section 78(2) of the Companies Act, 1956 since the allotment of the relevant shares and debentures has taken place during the year 1994-95.
Mar 31, 1993
1. Certain fixed assets of Sahupuram works (other than PVC
division assets) were revalued by an approved Valuer as at 30th
September, 1985. Some of these revalued assets together with the
additions between 1st October 1985 and 31st March 1993 of all
divisions at Sahupuram works (except assets of PVC Division) have
been again revalued on 31st March 1993 by Valuer's M/S Virendra
Padamsey Shah, Bombay. The details of assets revalued as on 31st
March 93 are as follows:
Head Book WDV Valuer's Appreciation
on 31-3-93 figure
(Rupees in lacs)
Land 235.25 314.55 79.30
Buildings 576.27 1045.76 469.49
Plant and Machinery 3323.65 7378.22 4054.57
-------- -------- --------
4135.17 8378.53 4603.36
-------- -------- --------
The resulting appreciation has been transferred to revaluation
reverse account on 31-3-93.
2. (a) The depreciation for the year 1992/93 has been calculated
on the same basis as in the previous year since the revaluation
is as on 31.3.1993. (b) The depreciation charge on the assets
revalued on 30-9-1985 is more by Rs 249.10 lacs than the
depreciation charge thereon under section 205 (2) (b) of the
Companies Act, 1956, and the same is met by drawing from the
revaluation reserve.
3. As the company is manufacturing PVC Resins from purchased VCM
some of the Fixed Assets (WDV Rs 18.08 lacs) and Current Assets
(WDV Rs 10.67 lacs) of the Company for processing Naptha to VCM
are not used and their market value may be lower than reflected
in the Balance Sheet.
4. Hydrochloric Acid and Vegetable products, Interest on
Government Securities, Cash Compensatory Subsidy and Duty draw
back from Government are accounted when received and Wealth tax
when paid.
6. Sales tax assessments of Soda Ash Unit are pending from 1976-77.
7. The Stores and spares consumption is allocated to different
heads (including capital jobs) on functional basis.
8. i) Excise duty in respect of goods manufactured by the Company
is accounted at the time of removal of goods. Hence Excise Duty
liability on closing stock of finished goods at factory has not
been provided. This has no impact on the profits for the year.
ii) Customs Duty payable on imported goods lying with Customs
authorities will, as per the Company's practice, be charged in
the year of clearance of the goods. Such liability as on 31st
March, 1993 has not been ascertained. This has no impact on the
profits for the year.
9. The Company has given an undertaking to Financial Institutions
to meet shortfall, if any, in the resources of the subsidiary DCW
Home Products Ltd., for completion of its Iodised Salt project
and for working capital relating thereto, and not to transfer or
create any lien on the shares held in that company and not to
withdraw interest free loan given by the company to it, during the
currency of loan received by the subsidiary from the Financial
Institutions.
10. Consignment Sales and Expenses are incorporated on the basis
of Sales Notes received from the consignees.
11. Previous year's Expenses and Income accounted this year are
Rs 20.06 lacs and Rs 142.11 lacs respectively.
12. Sales tax collections are treated as liability and not as
revenue of the company.
13. Encroachers have occupied some portions of the Land belonging
to the Company at Sahupuram. Efforts are being made to evict
them.
14. Figures are expressed in lacs and have been rounded off to
the nearest thousands.
15. Capital work-in-progress has a difference of Rs. 5.42 lacs
with the job ledger which is under reconciliation and necessary
adjustments will be made on completion of the same.
16. The Company has imported equipment on which Customs Duty has
been paid on concessional basis. The difference between the
Concessional duty paid and the actual duty is Rs 127.59 lacs, for
which the company has given a bank guarantee of Rs 127.59 lacs
and in relation to which there is an export obligation of Rs
3,809 lacs.
17. Interim Stay of all proceedings has been granted by the
Madras High Court in the petition filed by the Company against
pre assessment notice issued by Sales Tax Department for 1989-90
proposing to raise a demand aggregating to Rs 1371.95 lacs.
18. Raw Material consumption for the year is after adjusting net
credit of Rs 127.44 lacs on account of receipt on cancellation of
foreign exchange cover contract under LERMS and foreign exchange
cover changes paid.
19. Reconcilliation of unpaid dividend accounts for some years
and unpaid interest or Partly Convertible Debentures is in
progress. Necessary adjustments will be made on completion of
reconcilliation.
20. Interest and finance charges is after deduction of Rs 314.48
lacs (Tax deducted at source Rs 20.19 lacs) being the interest
earned from Banks and on Inter Corporate Deposits.
21. Since the sanctioning of the merger scheme of Pantape
Magnetics Ltd with the company is in April 93, the outstanding
statutory liability of Sales Tax of Rs 1.83 lacs of the
amalgamating company will be paid in accounting year 1993-94.
22. Consequent to merger order, the assets and liabilities and
the working results of the amalgamating company, Pantape
Magnetics Ltd for the year are included in the accounts of the
company.
Debentures:
(a) Rs 765 lacs (previous year Rs 765 lacs) comprising 7,65,000--
14% Non-Convertible debentures of Rs 100/- each privately placed,
redeemable from 1994 onwards in various annual instalments at a
premium of Rs 5/- per debenture secured by way of Legal mortgage
of all the moveable and fixed assets of the Company [excepting
the diesel generator set at the Company's plant at Sahupuram
exclusively charged in favour of Industrial Development Bank of
India (IDBI) and the fixed assets of the Bromide and Bromine
plant at Kuda charged/ to be charged exclusively in favour of
State Bank of Saurashtra (SBS) and State Bank of India (SBI)];
ranking pari passu with the mortgages and charges created/ to be
created in favour of financial institutions and banks but subject
to prior charges created/to be created on current assets and book
debts in favour of banks for working capital facilities.
(b) Rs. 1199.99 lacs (previous year nil) comprising 26,66,655 -
16.5% Non-Convertible Debentures of Rs. 45/- each redeemable at
par in April - 1999 Secured by way of legal mortgage of all the
moveable and fixed assets of the Company [excepting the diesel
generator set at the Company's plant at Sahupuram exclusively
charged in favour of Industrial Development Bank of India
(IDBI) and the fixed assets of the Bromide and Bromine plants
at Kuda charged/to be chaged exclusively in favour of State
Bank of Saurashtra (SBS) and State Bank of India (SBI)];
ranking subsequent and subservient with the charges referred
to in note 1(a),2(b),3(a) and 4 and subject to prior charges
created/to be created on current assets and book debts in
favour of Banks for working capital facilities.
Mar 31, 1992
1. The depreciation charged on the revalued assets is in excess of depreciation charged section 205(2) (b) of the Companies Act, 1956, by Rs. 272.26 lacs and out of the Revaluation Reserve of Rs.189.59 lacs, an amount of Rs. 74.59 lacs is drawn to meet the additional charge on revalued assets.
2. As the Company is manufacturing PVC Resins from purchased VCM some of the Fixed Assets (WDV Rs. 21.16 lacs) and Current Assets (Rs.10.67 lacs) of the Company for processing Naptha to VCM are not used and their market value may be lower than reflected in th Balance Sheet.
3. Interest on Government Securities, Sales of Vegetable Products and Cash Compensatory Subsidy from Government are accounted when received. Amount is not material.
4. The appreciation in rupee liability amounting to Rs.63.73 lacs on account of exchange difference as at 31st March, 1992, on outstanding foreign currency loan obtained for import of Machinery has been debited to Fixed Assets.
5. Consequent to the change in the allocation of common expenses, the valuation of closing stock of some products has undergone a change. But the overall effect is not material.
6. i. Interest and Commitment charges on the loans from Financial Institutions for modernisation and expansion though capitalised in the books, are claimed as revenue expenditure for taxation.
ii. The Board of Directors, subject to the approval of the General Body, have agreed for amalgamation of a sick industrial Company, Pantape Magnetics Ltd., with DCW LTD., effective from 1st October 1991 , on certain terms specified in a scheme framed by the operating agency (ICICI LTD) appointed by the Appellate Board of Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provision) Act, 1985. If the scheme goes through, the company will get benefit under section 72A of the Income tax Act, 1961 in respect of the sick company's losses. The matter is pending before the Appellate Board of Industrial and Financial Reconstruction.
iii. Having regard to the above two factors no tax liability is expected for the current year and hence no provision for taxation is made in the accounts.
7. i. Excise duty in respect of goods mnufactured by the Company is accounted at the time of removal of goods. Hence excise duty liability on closing stock of finished goods at factory has not been provided. This has no impact on the profits for the year.
ii. Import duty payable on goods lying in Customs Bonded Warehouse will as per the Company's practice be charged in the year of clearance of the goods. Such liability as on 31st March, 1992 has not been ascertained. This has no impact on the profits for the year.
8. The Company has given an undertaking to Financial Institution to meet shortfall, if any, in the resources of the subsidiary DCW Home Products Ltd., for completion of its project and for working capital, and not to transfer or create any lien on the shares held in that company and not to withdraw interest free loan given by the company to it, during the currency of loan received by the subsidiary from the Financial Institutions.
9. Encroachers have occupied some portions of the Land belonging to the Company at Sahupuram. Efforts are being made to evict them.
10. The Company has imported equipment on which Customs Duty has been paid on concessional basis. The difference between the Concessional duty paid and the actual duty is Rs. 127.59 lacs for which the company has given a bank guarantee and in relation to which there is an export obligation of Rs. 3,809 lacs.
Mar 31, 1991
As the Company is manufacturing PVC Resins from purchased VCM , some of the Fixed Asset and Current Assets of the Company for processing Naptha to VCM are not used and their market value may be lower than reflected in the Balance Sheet.
Gratuity liability for the period prior to 1-4-1989 amounting to Rs.63.47 lacs is not provided.
The Company has given an undertaking to Financial Institution to meet shortfall, if any, in the resources of the subsidiary DCW Home Products Ltd., for completion of its project and for working capital, and not to transfer or create any lien on the share held in that company and not to withdraw interest free loan given by the company to it, during the currency of loan received by the subsidiary from the Financial Institutions.
CONTINGENT LIABILITIES NOT
PROVIDED FOR 31-3-1991 31-3-1990
Rs.in lacs Rs. in Lacs
Disputed Sales-tax Demands (Appeal
pending . Rs. 82.63 lakhs paid against
the above, is included in Advance Reco-
verable in Cash or in Kind) 110.49 108.27
Disputed Excise Demands (The Court
have stayed the Department from
raising any demand on Acetylene for
period Subsequent to 30-9-1982). 86.02 128.89
Disputed Customs Demand. 14.84 14.84
Mar 31, 1990
As the company is manufacturing PVC Resins from purchased VCM, some of the Fixed Assets and Current Assets, of the company for processing Naptha to VCM are not used and their market value may be lower than reflected in the Balance Sheet.
The Vendor of Vedaraniam Salt Unit and the company have jointly made an application to the Government of Tamilnadu for transfer of the lease rights from the vendor to the company for the unexpired period of 13 years and the same is pending.
The Board has allocated the purchase consideration to various moveable Fixed Assets and Current Assets of Vedaraniam undertaking as per Valuer's Certificate.
Consequent to the change in the allocation of common expenses, the valuation of closing stock of some products has undergone a change. But the overall effect is not material.
The profit for the year is less by Rs.127.75 lacs consequent to adoption of accrual basis of accounting for certain items, hitherto accounted on receipt basis.
Previous year's figures, being for a period of 18 months, are not comparable with those of current year.
Mar 31, 1989
Depreciation on Fixed Assets is provided on the following basis :
a) On the assets added upto 30.9.1987, at the Straight line equivalent of Income-tax rates in force at the time of addition and as permitted by the Company Law Board circular 1/86 dated 21.5.1986.
b) On the Assets added or sold or discarded during 1.10.1987 to 31.3.1989 at Straight line rates on pro-rata basis, but in Sahupuram Unit on Assets sold/discarged pro-rata depreciation has not been provided upto the date of sale/discarding. However, this has no impact on the profits of the period.
As the company is manufacturing PVC Resins from purchased VCM, some of the Fixed Assets and Current Assets, of the Company for processing Naphtha to VCM are not used and their market value may be lower than reflected in the Balance Sheet.
Consequent to settlement with some parties made this year, interest refereable to earlier years crystallised at Rs.20.27 lacs and is charged as current period expenditure.
The company's appeal against Sales-tax and penalty demands aggregating to Rs.96.83 lacs is pending disposal. No provision is made in the accounts.
Excise duty, Sale-tax, Freight and Insurance on Stores and Spare parts are now directly charged off to respective revenue heads. Consequent to this change the profits of the period are less by Rs.4.88 lacs.
Freight on unsold finished stock with depots and excise duty on unsold stocks with depots and consignees are treated as elements of cost on 31.3.1989. Consequent to this change the profits of this period are higher by Rs.4.71 lacs.