Home  »  Company  »  Diamines & Chem.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Diamines & Chemicals Ltd.

Mar 31, 2023

Right, Preferences and restrictions attached to Shares

(i) The Company has only one class of shares i.e. Equity Shares having par value of '' 10 each. Each holder of Equity Shares is entitled to one vote per share.

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

(iii) The Board of Directors in their meeting held on 8th May, 2023 have recommended a final dividend of '' 3 per Equity Share (previous year '' 3 per equity share) to be approved by the shareholders in the ensuing general meeting.On approval, this will result in an outflow of '' 293.50 Lakhs (Previous year '' 293.50 Lakhs)

Description of the nature and purpose of Other Equity

General Reserve : The General Reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the provisions of Companies Act, 2013.

Retained Earnings: Retained Earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc.& amount distributed as dividends and related dividend distribution taxes.

Reserve for equity instruments through Other Comprehensive Income : This represents cumulative gains / (losses) arising on the measurement of equity instruments at Fair Value through Other Comprehensive Income.

Equity Stock Option Reserve: Equity stock option reserve is used to recognise the fair value of equity settled share based payment transactions.

The revenue of '' 54.83 lakhs (P.Y. '' 8.19 lakhs) has been recognised from the carried forward contract liabilities balance as at the beginning of the year.

3. The revenue from contracts with customers for the year includes variable consideration (volume & Rate discounts) of '' 0.50 lakhs (P.Y. '' 2.00 lakhs), which has been deducted from the transaction price. The company uses expected value method in measuring the variable consideration. There were no constraints in estimating variable consideration.

4. The Company has applied practical expedient referred to in paragraph 121 of Ind AS 115 and accordingly, has not disclosed information related to remaining performance obligations. No consideration from contracts with customers is excluded from the remaining performance obligations.

35. Contingent Liabilities and Commitments (to the extent not provided for)

('' in Lakhs)

Particulars

As at 31st

As at 31st

March, 2023

March, 2022

(A)

Contingent liabilities not provided for in respect of:

(a) Guarantees issued by the bankers on behalf of the Company

40.00

45.51

(b) Claims against the company not acknowledged as debt

(c) Pending Litigations:

6.40

6.40

(i) Income Tax

52.89

132.76

(ii) Service Tax/Excise

66.34

66.34

(iii) Provident Fund

29.50

29.50

Total

195.13

280.51

(B)

Commitments:

('' in Lakhs)

Particulars

For the year

For the year

ended 31st

ended 31st

March, 2023

March, 2022

(a)

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)

862.21

1286.48

37. Employee Benefits

The Company has classified various employee benefits as under:

A. Defined Contribution Plans

i. Provident Fund

ii. Superannuation Fund

The Provident Fund is operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll costs to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

B. Defined Benefit Plans

The Company operates a gratuity plan covering qualifying employees. Under the gratuity plan, the eligible employees are entitled to post retirement benefit at the rate of 15 days salary for each year of service until the retirement age of 58, subject to a payment ceiling of ‘ 20 lakhs. The benefit vests upon completion of five years of continuous service as per “The Payment of Gratuity Act” and once vested it is payable to the employee on retirement or on termination of employment. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The obligations under the compensated absences plan have been determined by Independent Actuary using Projected Unit Credit (PUC) method. Compensated absences is payable to all eligible employees on separation from the Company due to death, retirement, superannuation or resignation. At the rate of daily salary, as per current accumulation of leave days.

Gratuity is defined benefit plan and Company is exposed to following Risks:

Interest Risk :

A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk :

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk :

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Mortality Risk :

Since the benefits under the plan is not payable for the life time and payable till retirement age only, plan does not have any longevity risk.

viii. The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc.

ix. The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

x. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

Notes on Sensitivity Analysis

i. Sensitivity analysis for each significant actuarial assumptions of the Company which are discount rate and salary assumptions as of the end of the reporting period, showing how the defined benefit obligation would have been affected by changes is presented in the table above.

ii. In presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

iii. There is no change in the method from the previous period and the points /percentage by which the assumptions are stressed are same to those in the previous year.

38. Information on Segment Reporting as per Ind AS 108 on “Operating Segments”

Operating Segments are those components of business whose operating results are regularly reviewed by the Chief Operating Decision making body in the Company to make decisions for performance assessment and resource allocation.The Company has identified one reportable primary segments, Speciality Chemicals in terms of Ind AS 108 on Operating Segments during F.Y 22-23, the comparative details are as below :

40. Disclosures on financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements.

(b) Capital Management

The company''s objective when managing capital is to:

- Safeguard its ability to continue as a going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders.

- Maintain an optimal capital structure to reduce the cost of capital.

The Company''s Board of Directors reviews the capital structure on a regular basis. As part of this review, the Board considers the cost of capital, risk associated with each class of capital requirements and maintenance of adequate liquidity.

3. Disclosure related to Derecognition of investments in equity instruments measured at fair value through other comprehensive income during the reporting period;

(a) the reasons for disposing of the investments - The company has disposed of certain long-term investments in equity instruments in line with its risk management policy to mitigate the associated risks.

(b) the fair value of the investments at the date of derecognition - Sale Price on the date of sale.

(c) the cumulative gain or loss on disposal - Cumulative Loss on disposal '' 4.22 Lakhs

(P.Y Loss '' 9.20 Lakhs)

(c) Financial risk management:

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The risk management policy is approved by the Company''s Board. The Company''s principal financial liabilities comprise of borrowings (if any), trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations in selective instances. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations and investments. The company is exposed to market risk, credit risk, liquidity risk etc. The objectives of the Company''s financing policy are to secure solvency, limit financial risks and optimise the cost of capital. The Company''s capital structure is managed using equity and debt ratios as part of the Company''s financial planning.

(a) Market risk:

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company''s income or the value of its holdings of financial instrument. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return. The major components of market risk are foreign currency risk, interest rate risk and price risk.

(I) Foreign Currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.

Foreign Currency Sensitivity:

The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.As per management''s assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair, sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below:

Forward foreign exchange contracts

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments in USD. The Company enters in to contracts with terms up to 120 days.

Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency for settling the underline hedged trade transaction.

(II) Interest rate risk:

The Company invests the surplus fund generated from operations in bank deposits. Bank deposits are made for a period of up to 12 months and carry interest rate of 5%-7.25% as per prevailing market interest rate. Considering these bank deposits are short term in nature, there is no significant interest rate risk. There is no significant utilisation of borrowings.

(III) Price risk:

The Company''s equity securities price risk arises from investments held and classified in the balance sheet at fair value through OCI. The Company''s equity investments in Securities are publicly traded.

Price sensitivity analysis:

The sensitivity of profit or loss in respect of investments in equity shares at the end of the reporting period for /-5% change in price and net asset value is presented below:

Other comprehensive income for the year ended 31st March, 2023 would increase / decrease by ? 66.51 Lakhs (P.Y. '' 63.34 Lakhs) as a result of 5% changes in fair value of equity investments measured at FVTOCI.

(b) Credit risk:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure and wherever appropriate, the credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company. Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments in equity instruments and trade receivables.

None of the financial instruments of the Company result in material concentrations of credit risks, which may result into financial loss for the company.

(c) Liquidity risk:

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company may be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

42. Employee Stock Option

At the 45th Annual General Meetingthe of the Company held on July 20, 2021members of the company passed a special resolution to introduce and implement Company''s Employees Stock Option Scheme called “DACL - Employees Stock Option Plan 2021” (‘the Scheme''). Thereafter during the year under review, the Company has received in-principle approval of 2,00,000 shares from the BSE Limited on December 16, 2021.

During the year, the Company has granted 9060 (3310 shares granted at 1st tranche, 3250 shares granted at 2nd tranche and 2500 shares granted at 3rd tranche) Stock Option to the employees as Reward/Joining bonus for the year ended March 31,2023. The Company has charged to statement of profit and loss as Employee benefit Expenses of '' 7.42 Lakhs by creating an Employee stock option reserve which is grouped under the head “Other Equity”

43. The Company does not have any Immovable Property whose title deeds are not held in the name of the Company.

44. The Company does not have any transactions with struck-off companies.

45. The company has sought balance confirmations from trade receivables and trade payables, wherever such balance confirmations are received by the Company, the same are reconciled and appropriate adjustments if required, are made in the books of account.

46. The previous year''s figures have been regrouped wherever necessary to make it comparable with the current year.

47. Approval of Standalone Financials Statements

The Standalone Financial Statements were approved for issue by the Board of Directors on 8th May, 2023.


Mar 31, 2018

1. Corporate Information

Diamines and Chemicals Limited (“the Company”) is engaged in business of manufacturing and marketing of organic chemicals compounds.

The Company is a public limited company incorporated and domiciled in India and has registered office in Vadodara. Equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE)

The financial statements for the year ended March 31, 2018 are approved for issue by the Company’s Board of Directors May 4, 2018.

Notes:

(i) The Company has availed working capital facilities and other non-fund based facilities viz., Bank Gaurantees and Letter of Credits, which are secured by hypothecation of Inventories.

(ii) The cost of inventories recognised as an expense includes Rs. 14.55 lakhs (2016-17 : Nil) in respect of write-downs of inventory to net reliasable value

(iii) For Inventory valuation Refer Note No. 2.5

Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of Rs.10. Each holder of equity shares is entitled to one vote per share.

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

iii. The Board of Directors in their meeting held on May 4, 2018 have recommended a dividend of Rs.2.5 per Equity Share (previous year Rs.1.5 per equity share) to be approved by the shareholders in the ensuing general meeting. On approval, this will result in an outflow of Rs.292.61 Lakhs (previous year Rs.176.62 Lakhs) including dividend tax.

Description of the nature and purpose of Other Equity

General Reserve : The General Reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.

Equity Instruments through Other Comprehensive Income : This represents cumulative gains / (Losses) arising on the measurement of equity instruments at Fair Value through Other Comprehensive Income. Retained Earnings : Retained Earnings are the profits that the Company has earned till date and is net of amount transferred to other reserves such as general reserves etc., amount distributed as dividends and adjustments on account of transition to Ind AS.

2.1 Working Capital facilities from a bank are secured by first charge by way of hypothecation over the entire current assets including stock of raw materials, work-in-progress, finished goods, stores and spares, etc. bills / book-debts / receivables and other current assets. Further, the same are secured by way of second charge by way of hypothecation over the entire fixed assets acquired out of bank finance including equitable mortgage over Land and Building.

2.2 The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act has not been given.

3. Information on Segment Reporting as per Ind AS 108 on “Operating Segments”

Operating Segments are those components of business whose operating results are regularly reviewed by the Chief Operating Decision making body in the Company to make decisions for performance assessment and resource allocation.

The Company has identified two reportable primary segments, Speciality Chemicals and Power Generation in terms of Ind AS 108 on "Operating Segments".

i. Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed ten percent of the Company’s total revenue.

ii. The Company does not have reportable segment, i.e Geographical Segement in terms of Ind AS 108 on "Operating Segments".

Terms and conditions of transactions with related parties

i. The transactions with related parties are made in the normal course of business and on terms equivalent to those that prevail in arm’s length transactions.

ii. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash.

iii. There have been no guarantees provided or received for any related party transaction.

4. Capital Management and Financial Risk Management Policies

A. Capital Management

For the purpose of the Company''s Capital Management, Capital includes issued Equity Capital and all Other Reserves attributable to the Equity shareholders of the Company. The Primary objective of the Company''s Capital Management is to maximise the shareholders'' value. The Company''s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximise shareholder''s value. The Company is monitoring Capital using debt equity ratio as its base, which is debt to equity. The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity. The capital structure of the Company as at March 31, 2018 does not include any debt as the Company has repaid all its borrowings.

B. Financial Risk Management and Policies

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The risk management policy is approved by the Company’s Board. The Company’s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations in select instances. The Company’s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations and investments. The company is exposed to market risk, credit risk, liquidity risk etc. The objective of the Company’s financing policy are to secure solvency, limit financial risks and optimise the cost of capital. The Company’s capital structure is managed using equity and debt ratios as part of the Company’s financial planning.

a. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include investments and derivative financial instruments. The Company has designed risk management frame work to control various risks effectively to achieve the business objectives. This includes identification of risk, its assessment, control and monitoring at timely intervals.

The above mentioned risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below:

i. Foreign Currency Risk:

The company is subject to the risk that changes in foreign currency values impact the company export, imports and other payables.

Foreign currency exposure as at March 31, 2018 are hedged as per the policy of the company

Foreign currency sensitivity:

The following table demonstrates the sensitivity to a 5% increase/decrease in foreign currencies exchange rates, with all other variables held constant.

5% increase or decrease in foreign exchange rate will have the following impact on before profit before tax :

ii. Forward foreign exchange contracts

It is the pol icy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments in USD. The Company enters in to contracts with terms upto 120 days.

Forward cover is obtained from bank for each of the aggregated exposures and the Trade deal is booked. The forward cover deals are all backed by actual trade underlines and settlement of these contracts on maturity are by actual delivery of the hedged currency for settling the underline hedged trade transaction.

b. Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.Wherever necessary, depending on the credit worthiness of the customer, credit risk in respect of export shipments is covered by letter of credit. The credit risk on liquid funds such as balance in current and deposits account with banks is limited as the counterparties are banks with reasonably high credit ratings.

The Company makes provision for expected credit loss on certain T rade Receivables in respect of which threre is a delay in realisation. The provision is calculated based on the difference between the book value of such outstanding trade receivables as at the balance sheet date and the present value of the expected realisation over a period of 12 months from the balance sheet date. The Company considers discount rate of 8 percent per annum for calculating the present value.

c. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value The company manages its liquidity risk by maintaining positive cash and bank balance and availability of fund through adequate cash credit facility. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

5. Employee Benefits

The Company has classified various employee benefits as under:

A. Defined Contribution Plans

i. Provident Fund

ii. Superannuation Fund

The Provident Fund is operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll costs to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.

The Company has recognised the following amounts in the Statement of Profit and Loss:

B. Defined Benefit Plans

The Company operates a gratuity plan covering qualifying employees. Under the gratuity plan, the eligible employees are entitiled to post retirement benefit at the rate of 15 days salary for each year of service until the retirement age of 58, subject to a payment ceiling of '' 20 lakhs. The benefit vests upon completion of five years of continuous service as per “The Payment of Gratuity Act” and once vested it is payable to the employee on retirement or on termination of employment. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Under the compensated absences plan, leave encashment is payable to all elligible employees on separation from the Company due to death, retirement, superannuation or resignation. At the rate of daily salary, as per current accumulation of leave days.

Gratuity is defined benefit plan and Company is exposed to following Risks:

Interest Risk :

A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk :

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Investment Risk :

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan defict. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Mortality Risk :

Since the benefits under the plan is not payble for the life time and payable till retirement age only, plan dose not have any longevity risk.

C. The Company offers the following employee benefits scheme to its employees

a. Gratuity(Funded through annual payment to Life insurance corporation of India)

b. Previlege Leave encashment (Unfunded)

viii The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

ix The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

x The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

Note on Sensitivity Analysis

i. Sensitivity analysis for each significant actuarial assumptions of the Company which are discount rate and salary assumptions as of the end of the reporting period, showing how the defined benefit obligation would have been affected by changes is called out in the table above.

ii. In presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit menthod at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

iii. There is no change in the method from the previous period and the points /percentage by which the assumptions are stressed are same to that in the previous year.

6. Corporate Social Responsibility (CSR)

a. Amount required to be spent by the Company during the year is '' 3.72 Lakhs

b. Amount spent during the year

7. Financial Instruments

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Valuation

i. The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

ii. The fair value of Forward Foreign Exchange contracts is determined using forward exchange rates at the Balance Sheet date

iii. The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair Value measurement heirarchy

The fair value of financial instruments as referred below have been classified into three categories depending on the inputs used in the valuation technique.

The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data.

F. Notes to the Reconciliation

a. Property, Plant and Equipment

As on March 31, 2016, the carrying amount of Leasehold Land and Building under Property, Plant and Equipment (PPE) included Rs. 278.74 lacs on account of revaluation thereof. Under the previous GAAP, as specified by Accounting Standard 10, as revised, on “Property, Plant and Equipment”, in the financial year 2016-17, with effect from April 1, 2016, the said revaluation amount in the carrying amount of Leasehold Land and Building was adjusted against outstanding amount of Revaluation Reserve and the excess amount in the Revaluation Reserve of Rs.1.84 lacs was adjusted in General Reserve. Under Ind AS, in terms of Para D7AA of Ind AS 101 on “First-time Adoption of Indian Accounting Standards”, the Company has adopted the carrying value of its PPE as on the transition date as its deemed cost; in other words, the carrying value on the transition date, as on April 1, 2016, is nothing but the carrying value of PPE as on March 31, 2016, which would include the revaluation amount for Leasehold Land and Building. Therefore, to arrive at the deemed cost under Ind AS as on April 1, 2016, the adjustment of revaluation done under the previous GAAP {that is, under AS 10 (Revised)} is restored to its revalued amount and Revaluation Reserve is accordingly restored and General Reserve is reversed. Also, depreciation in respect of such revalued amounts under Ind AS for the year ended March 31, 2017 and thereafter is accordingly reflected. Further, the effect of Deferred Tax for such adjustment for revaluation is also given.

b. Provision for Sales return

Revenue is recognised net of such provision for Sales Returns and consequently, related costs of such goods are reflected in Inventories.

c. Non-current Investments

Under previous GAAP, Investments in Equity Instruments were measured at Cost. Provision for dimunition in value of Investments, if any, was provided for, against cost of investments. On the date of transition to Ind AS, such financial assets are classified as Fair Value through Other Comprehensive Income. Changes in fair value of such investments are recognised in Other Comprehensive Income. On the date of transition, these financial assets are measured at their fair values which are higher than cost as per previous GAAP, resulting in net increase in carrying amounts as at April 1, 2016 by Rs.62.66 Lakhs and as at March 31, 2017 by Rs.22.52 Lakhs.

d. Fair Valuation of Forward Contracts

Under previous GAAP, the Company applied the requirements of AS 11 “The effects of changes in foreign exchange rates” to account for forward contracts entered for hedging foreign exchange risk. Under Ind AS, derivatives which are not designated as hedging instruments are fair valued with resulting changes being recognised in profit or loss. The fair valuation of forward contracts resulted in profit of Rs.2.19 Lakhs as at April 1, 2016 and of Rs.2.46 Lakhs as at March 31, 2017.

e. Defined Benefit Plans

Under previous GAAP, actuarial gains and losses were recognised in profit and loss. Under Ind AS, the actuarial gains and losses forming part of remeasurement of the net defined benefit liability/ asset, are recognised in the Other Comprehensive Income instead of profit or loss. The actuarial loss for the year ended March 31, 2017 was Rs.1.18 Lakhs, with tax Rs.0.39 Lakhs. This change does not affect T otal Equity, but there is an increase in Profit before Tax of Rs. 1.18 Lakhs and in total Profit of Rs.0.79 Lakhs for the year ended March 31, 2017.

f. Deferred Tax

The previous GAAP required deferred tax accounting using the income statement approach, which focused on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using balance sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Various transitional adjustments has resulted in recognition of temporary differences.

8. The Board of Directors of the Company at its meeting held on September 29, 2015 approved the Scheme of Arrangement under sections 391 to 394 of the Companies Act, 1956 for amalgamation of Diamines Speciality Chemicals Limited (‘DSCL’), its wholly owned subsidiary, into the Company with effect from April 1, 2015, the appointed date (“the Scheme”). The Scheme was heard and approved by the Hon’ble High Court of Gujarat, vide its order dated September 16, 2016. The Scheme came into effect on September 30, 2016, the day on which the Order was filed with the Registrar of the Companies, Gujarat and pursuant thereto the entire business and all the assets and liabilities, duties and obligations of the DSCL have been transferred to and vested in the Company with effect from the appointed date. DSCL was formed with the object of manufacturing of fine chemicals. Till the time of amalgamation, it engaged itself to acquire a plot of land from Gujarat Industrial Development Corporation (GIDC). This amalgamation is a non-cash transaction.

Further, no consideration is payable or receivable and shares were not exchanged on implementation of the amalgamation as the Scheme involves a wholly owned subsidiary.

9. Capital Work-in-progress and Capital Advances for acquiring a plot of land from Gujarat Industrial Development Corporation (‘GIDC’) on the Scheme of Arrangement which was then reflected as Fixed Assets - Leasehold Land under Non-Current Assets. However, subsequent thereto, the said plot of land rendered unusable for construction/ activities involving hazardous chemicals and therefore, the Company by its letter of January 11, 2017, requested GIDC to take back the possession of the said plot of land and refund the amounts paid in respect thereof. GIDC by its letter of April 6, 2017, intimated to the Company about its approval as of March 23, 2017 to surrender the said plot of land. The Board of Directors in its meeting held on April 11, 2017 took the decision to handover the possession of the said plot of land and accordingly, the possesion was handed over to GIDC on April 19, 2017. However, pending determination of refund amount by GIDC for the surrendered plot of land, the same is reflected as Assets held for disposal under “Current Assets” at its carrying amount.


Mar 31, 2017

1.1 Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of Rs.10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and is recorded as a liability on the date of approval by the shareholders. The Board of Directors, in their meeting held on April 28, 2017 has recommended dividend @ Rs.1.50 per share of Rs.10 each for the year ended March 31, 2017.

During the year ended March 31, 2016, no dividend was declared/ distributed to equity shareholders.

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

2.1 Transitional provisions specified in Accounting Standard 10 on “Property, Plant and Equipment”, as introduced by the Companies (Accounting Standards) Amendment Rules, 2016, provide that in case an enterprise does not adopt the revaluation model as its accounting policy, but if there is any previous revaluation reflected in the carrying amount of an item of Property .Plant and Equipment, the amount outstanding in the Revaluation Reserve is to be adjusted against the carrying amount of that item, maximum upto its residual value. Thereafter, any excess amount in the Revaluation Reserve is to be adjusted in revenue reserves. In terms thereof, the Company has adjusted the Revaluation Reserve of Rs.27,863,681 against the carrying amounts of Leasehold Land an a Building. Thereafter, the balance of Rs.183,855 outstanding as Revaluation Reserve is adjusted in General Reserve. Further,due to the said adjustment as per the transitional provisions, depreciation for the year is lower by Rs.981,424 and the net profit for the year is higher by the like amount; and unlike earlier years, no amount on account of depreciation is transferred from the Revaluation Reserve to General Reserve.

For the previous year ended March 31, 2016-As per the Guidance Note on Accounting for depreciation in the context of Schedule II to the Companies Act, 2013 issued by the Institute of Chartered Accountants of India (ICAI), the amount of depreciation of on revaluation of Rs.753,112 on this revalued amount was during the year withdrawn and transferred to General Reserve.

3. Segment Reporting:

The Company has identified two reportable primary segments, Speciality Chemicals and Power Generation in terms of Accounting Standard (“AS”) 17 on “Segment Reporting”.

4. Disclosure as per Accounting Standard 18 on “Related Party Disclosures”:

4.1 Following transactions were carried out in the ordinary course of business with the parties referred to in (31.2) below. There were no amounts written off or written back from such parties during the year

5. Financial and Other Derivative Instruments:

5.1 Derivative contracts entered into by the Company are for hedging foreign currency risks; the following contracts have remained outstanding:

6. In the absence of convincing evidence that the Company would pay normal income-tax as per the provisions of the Income-tax Act, 1961 in succeeding years, the Company did not recognise MAT Credit in earlier years. Considering the profit in the current year, the Company has recognised such MAT credit to the extent it is entitled to. Such MAT credit is also reflected as utilised during the year.

7. The Board of Directors of the Company at its meeting held on September 29, 2015 approved the Scheme of Arrangement under sections 391 to 394 of the Companies Act, 1956 for amalgamation of Diamines Speciality Chemicals Limited (‘DSCL’), its wholly owned subsidiary, into the Company with effect from April 1,2015, the appointed date (“the Scheme”). The Scheme was heard and approved by the Hon’ble High Court of Gujarat, vide its order dated September 16, 2016. The Scheme came into effect on September 30, 2016, the day on which the Order was filed with the Registrar of the Companies, Gujarat and pursuant thereto the entire business and all the assets and liabilities, duties and obligations of the DSCL have been transferred to and vested in the Company with effect from the appointed date.

DSCL was formed with the object of manufacturing of fine chemicals. Till the time of amalgamation, it engaged itself to acquire a plot of land from Gujarat Industrial Development Corporation (GIDC).

This amalgamation is a non-cash transaction. Further, no consideration is payable or receivable and shares were not exchanged on implementation of the amalgamation as the Scheme involves a wholly owned subsidiary.

The Company has carried out the accounting treatment prescribed in the Scheme as approved by the High Court, that is, as per the “pooling of interest” method as given under Accounting Standard 14 (AS 14) ‘Accounting for Amalgamations’ specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

Hence, in accordance with the Scheme:

a. The Company has recorded all assets and liabilities as appearing in the books of DSCL at their carrying amounts.

b. Inter Company balances and transactions have been cancelled. The amount of Share Capital of DSCL has been adjusted against the corresponding investment balances held by the Company in the DSCL.

c. Accordingly, the amalgamation has resulted in transfer of assets and liabilities as on April 1, 2015, the appointed date, as per the Scheme at the following amounts:

d. As the financial statements for the year ended March 31, 2016 have been already approved by the shareholders of the Company, the previous year balances have not been restated and all the relevant accounting entries with respect to the Scheme have been accounted for during the current year and consequently, the debit balance of Rs.8,357,254 in the Statement of Profit and Loss of DSCL as on April 01, 2015 as also loss of Rs.50,316 for the financial year 2015-16 have been reduced from the opening balance of Surplus in the Statement of Profit and Loss (Refer Note 3) of the Company.

8. The previous year’s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year’s presentation.


Mar 31, 2016

1. Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of Rs. 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 16, 2016 has not recommended any dividend for the year ended March 31, 2016.

During the year ended March 31, 2015, no dividend was distributed to equity shareholders and hence, no appropiatation for the year ended March 31, 2015 was made on this account.

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

Sr. No. Relation

Name of Related Party

1

Associate

Alkyl Amines and Chemicals Limited.

2

Key Management Personnel

Executive Director - *Mr. Girish .R. Satarkar (Upto February 6, 2015 **Mr.G.S.Venkatachalam (From February 7, 2015)

3

Enterprise over which key management personnel

exercises significant influence

None

4

Entity over which Associate exercises

significant influence

Alkyl Speciality Chemicals Limited

- Subsidiary of Associate

5

Subsidiary

Diamines Speciality Chemicals Limited

2. In view of the inadequate profit for the current year, as per the provisions of the Income-tax Act, 1961, the Company is neither liable to tax as per the normal provisions nor liable under the provisions of Section 115JB and accordingly, no provision for tax is required to be made.

3. The Board of Directors of the Company at their meeting held on September 29, 2015 approved the proposed scheme of arrangement under section 391 to 394 of the Companies Act, 1956 for amalgamation of Diamines Speciality Chemicals Limited, its wholly owned subsidiary, into the Company with effect from April 1, 2015, the appointed date ("the Proposed Scheme"). Pending submission and approval of the Proposed Scheme by the Hon''ble High Court of Ahmedabad, Gujarat and other statutory compliances, no effect of the Proposed Scheme has been given in the Financial Statements.

4. The previous year''s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year''s presentation.


Mar 31, 2015

1.1 Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of ' 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 8, 2015 has not recommended any dividend for the year ended March 31, 2015.

During the year ended March 31,2014, no amount per share of dividend was distributed to equity shareholders and hence, no amount appropiatation for the year ended March 31,2014 was made on this account.

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

2.1 As per the Guidance Note on "Treatment on General Reserve on Revaluation of Fixed Assets" issued by the Institute of Chartered Accountants of India (ICAI), for the year ended March 31,2014, the amount of depreciation, amounting to Rs. 986,644 on the revaluation of Fixed Assets, is transferred to the Statement of Profit and Loss. However, for the year ended March 31, 2015, as suggested in the Application Guide on the Provisions of Schedule II to The Companies Act, 2013 issued by ICAI, the amount of depreciation on the revaluation, amounting to Rs. 751,055, is withdrawn and transferred to General Reserve.

2.2 In terms of the Accounting Standard 28 on "Impairment of Assets", impairment loss of Rs. 69,573 on Revalued Asset provided during the year is adjusted against Revaluation Reserve.

Quality driven

3. Contingent Liabilities and Commitments : As At As At March 31, 2015 March 31, 2014

3.1 Contingent Liabilities (to the extent not provided for):

i. Claims against the Company not acknow ledged as debts 1,546,000 1,506,000

ii. Guarantees issued by the bankers on behalf of the Company 1,046,934 1,046,934

iii. In respect of the various advance licenses issued to the Company for the purposes of fulfilling the export and other related customs formalities, the Company has filed appeals and matters are pending before the Directorate General of Foreign trade (DGFT) 5,364,604 5,364,604

iv. Demand (including interest thereon), by the Provident Fund Authorities pending b efore the Gujarat High Court [(Net Of Provisions of Contingencies of Rs. 1,000,000 (March 31, 2014 : Rs. 1,000,000)] 2,750,000 2,550,000

v. Matters under disputes/appeals :

a. Income-tax 16,917,700 425,000

b. Service Tax/ Excise 11,843,151 11,033,773

4. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

5. In view of the loss for the current year, as per the provisions of the Income-tax Act, 1961, the Company is neither liable to tax as per the normal provisions nor liable under the provisions of Section 115JB and accordingly, no provision for tax is required to be made.

6. The previous year's figures, wherever necessary, have been regrouped/ reclassified to conform to the current year's presentation.


Mar 31, 2014

1. Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of Rs. 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 6, 2014 has not recommended any dividend for the year ended March 31, 2014.

During the year ended March 31,2013, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 0.5. The total dividend appropriation for the year ended March 31, 2013 amounted to Rs. 5,722,951 including corporate dividend tax of Rs. 831,331.

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

2. Amount withdrawn on account of depreciation on revaluation during the year is Rs. 986,644 (March 31, 2013: Rs. 986,644).

3. Working Capital facilities from a bank are secured by first charge by way of hypothecation over the entire current assets including stock of raw materials, Work-in-progress, finished goods, stores and spares, etc. bills/book- debts/receivables and other current assets. Further, the same are secured by way of second charge by way of hypothecation over the entire fixed assets acquired out of bank finance including equitable mortgage over Land and Building (other than fixed assets and Land and Building at Dhule - Windmill).

4. The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. Others include Statutory Dues, Advance from Customers and other year-end provisions.

6. Contingent Liabilities and Commitments : As At As At March 31, 2014 March 31, 2013

6.1 Contingent Liabilities (to the extent not provided for):

i. Claims against the Company not acknowledged as debts 1,506,000 1,436,000

ii. Guarantees issued by the bankers on behalf of the Company 1,046,934 1,046,934

iii. In respect of the various advance licenses issued to the Company for the purposes of fulfilling the export and other related customs formalities, the Company has filed appeals and matters are pending before the Directorate General of Foreign trade (DGFT) 5,364,604 6,472,696

iv. Demand (including interest thereon), by the Provident Fund Authorities pending before the Gujarat High Court [(Net Of Provisions of Contingencies of Rs. 1,000,000 (March 31, 2013 : Rs. 1,000,000)] 2,550,000 23,50,000

v. Matters under disputes/appeals :

a. Income-tax 425,000 425,000

b. Service Tax/ Excise 11,033,773 8,456,482

6.2 Commitments :

i. Estimated amount of contracts remaining to be

executed on capital account NIL NIL

Less : Advances NIL NIL

Net Estimated Amount NIL NIL

ii. Other Commitments NIL NIL

7. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

The estimate of future salary increases considered in actuarial valuation takes into account the general trend in inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held and historical results of the return on plan assets. (*)

(*) To the extent information available from reports of Actuary The expected contribution is based on the same assumptions used to measure the Company''s Gratuity obligations as at March 31, 2014. The Company is expected to contribute Rs. 1,652,774 for the year ended March 31, 2015.

8. Segment Reporting:

The Company has identified two reportable primary segments, Speciality Chemicals and Power Generation in terms of Accounting Standard ("AS")17 on "Segment Reporting".

9. The previous year''s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year''s presentation.


Mar 31, 2013

1.1 Rates and Taxes include Rs. 1,275,292 (March 31, 2012: NIL) and Interest of Rs. 3,607,422 (March 31, 2012: NIL) thereon shown under Interest Expense - Others (in Note 25). Demand in this regard was raised during the year.

2. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

3. The previous year`''s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year`''s presentation.


Mar 31, 2012

1.1 Rights, preferences and restrictions

i. The Company has only one class of share referred to as equity shares having a par value of Rs. 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 17, 2012, proposed a final dividend of Rs. 1 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended amounted to Rs. 11,370,326 including corporate dividend tax of Rs. 1,587,086.

During the year ended March 31, 2011, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 6 per share. The said includes dividend Rs. 4.50 per share as final dividend and Rs. 1.50 per share as interim dividend. The total dividend appropriation for the year ended amounted to Rs. 45,519,092 including corporate dividend tax of Rs. 6,386,132.

iii. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2.1 Cumulative amount withdrawn on account of depreciation on revaluation is Rs. 986,644 (March 31, 2011: Rs. 1,065,473)

3.1 Working Capital facilities from the bank secured by hypothecation of the entire current assets including stock of raw materials, stock-in-process, finished goods, stores and spares etc. bills/book-debts/ receivables and other current assets.

4.1 The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5.1 Other Payables include Statutory Dues, Advance from Customers and other year end liabilities provided.

6. Contingent Liabilities and Commitments As At As At March 31, 2012 March 31, 2011



6.1 Contingent Liabilities (to the extent not provided for):

i. Claims against the Company not acknowledged as debts 1,267,000 833,000

ii. Guarantees issued by the bankers on behalf of the Company 1,046,934 1,046,934

iii.In respect of the various advance licenses issued to the Company for the purposes of fulfilling the export and other related customs formalities, the Company has filed appeals and matters are pending before the Directorate General of Foreign trade (DGFT) 11,355,410 11,355,410

iv. Demand (including interest thereon), by the Provident Fund Authorities pending before the Gujarat High Court [(Net Of Provisions of Contingencies of Rs. 1,000,000 (March 31,2011 : Rs:1,000,000] 2,150,000 1,950,000

6.2 In earlier years, accumulated losses were adjusted against Revaluation Reserve created consequent to Revaluation of Land and Buildings; subsequent thereto, in absence of any balance in the Revaluation Reserve Account, additional depreciation on the revalued amount was charged to the Statement of Profit and Loss.

In terms of the Guidance Note on "Treatment of Reserve created on Revaluation of Fixed Assets" issued by the Institute of Chartered Accountants of India, accumulated losses and depreciation (including arrears of depreciation) should not be set off against the Revaluation Reserve Account. Since the accumulated losses cannot be set off against the Revaluation Reserve Account, the Company had decided to restore its Revaluation Reserve (as set off taken in earlier years) as on April 1, 2010. Accordingly, after considering the effect of additional depreciation, (had the same been adjusted against the Revaluation Reserve Account), as also the amount that would have been in the Revaluation Reserve Account in respect of the retirement or disposal of assets, the net amount of Rs. 33,646,681 was restored to the Revaluation Reserve Account and correspondingly, the equivalent amount was transferred from the General Reserve as on March 31, 2011.

7. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

8. Segment Reporting:

The Company has two reportable segments, Speciality Chemicals and Power Generation. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting system.

9. Related Party transactions:

a. Following transactions were carried out in the ordinary course of business with the parties referred to in (b) below. There were no amounts written off or written back from such parties during the year. The related parties included in the various categories above, where transactions have taken

d. Foreign currency exposure that is not hedged by derivative instruments as on March 31, 2012


Mar 31, 2010

1. The previous years figures, wherever necessary, have been regrouped, reclassified and recast to conform to the curreht years classification.

As at As at March 31, 2010 March 31, 2009 Particulars Rupees Rupees

2. a. Estimated amount of contracts remaining to be 1,619,534 21,617,468 executed on capital account and not provided for

Less: Advances 212,500 7,308,847

Net Estimated Amount 1,407,034 14,308,621

b. Contingent liabilities not provided for :

i. Guarantees issued by the bankers on behalf of the 1,146,934 1,046,934 Company. These are covered by a charge created in favour of the bankers by way of hypothecation of stocks and debtors

ii. In respect of the various advance license issued to 1,779,410 359,820 the Company, the Company is in the process of fulfilling the export obligations & other related customs formalities. The Company is advised that liabilities in this respect are not likely to be significant and hence, no provision therefore has been made in the accounts.

iii. Demand (including interest thereon) by the Provident 1,750,000 1,600,000 Fund Authorities pending before the Gujarat High Court

(Net of Provisions for Contingencies of Rs. 1,000,000)

iv. Demand raised in respect of Income Tax (Amount Deposited Rs. NIL) 1,618,523 Nil

v. Other claims not acknowledged as debts 610,000 2,096,000

3. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

In terms of the above, among other amounts, a sum of Rs. 84,165,854 (Previous Year Rs. NIL) received from a supplier as advance has remained unclaimed beyond the limitation period has been written back and reflected as Accounts Written Back under "Other Income" [see Schedule 12].

4. Prior Period and Exceptional Items:

a. Prior Period item includes Rs. NIL (Previous Year Rs. 43,306) relating to interest income for year 2007-08.

b. Exceptional Item represents writeback of Rs. NIL (Previous Year Rs. 4,534,677) being the excess depreciation provided on Fixed Assets in earlier years.

5. Employee Benefits:

Consequent to adoption of Accounting Standard 15 (Revised 2005) on "Employee Benefits" issued by the Companies (Accounting Standards) Rules, 2006, as required by the Standard, the following disclosures are made:

6. Segment Reporting:

The Company has two reportable segments viz. Speciality Chemicals and Power Generation. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems.

7. Related Party transactions:

a. Following transactions were carried out in the ordinary course of business with the partie referred to in (b) below. There were no amounts written off or written back from such partie during the year.

S.No. Relation Name of Related Party

1 Associate Alkyl Amines and Chemicals Ltd.

2 Key Management Personnel Mr.G.G.Chendwankar (upto March 31, 2009)

3 Enterprises over which key management None personnel exercise significant influence

4 Enternrises over which Associate Alkyl Speciality Chemicals Limited exercises significant influence - Subsidary of Associate

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X