Mar 31, 2016
1 (a) Rights etc. attached to Equity Shares :
Equity shares having face value of Rs. 10/- per share.Each shareholder is eligible for one vote per share held.
(b) Details of shares held by the shareholders holding more than 5% of the aggregate shares in the Company:
Notes
2 Additions to Capital Reserve amounting to Rs. Nil (Rs. 3,21,51,383/-) represents reinstatement of Interest receivable / Loan receivable from a Company upon determination of its realisability which was written off as âNilâ upon amalgamation/ merger of group companies in earlier years on fair value approach as per scheme of amalgamation approved by the court and Rs. Nil (Rs. 48,58,058/-) arising out of amalgamation of Indokem Limited with Khatau Capacitors Private Limited and Indokem Exports Limited in Previous Year
3 Deduction in Capital Reserve amounting to Rs. 48,58,058/- is on account of disposal of investment of Khatau Capacitors Private Limited in the shares of Indokem Limited acquired during amalgamation of Indokem Limited, Khatau Capacitors Private Limited and Indokem Exports Limited during 20142015 as per the scheme of amalgamation and represents difference between cost and face value of the said investment.
4 In previous year, depreciation of earlier years charged to Profit & Loss A/c represents impact on opening WDV of Fixed Assets due to adoption of depreciation method as per Companies Act 2013.
Notes: Details of Security & Terms of Repayment
i) Vehicle loan amounting to Rs. 7.82 lakhs (Rs. 18.99 lakhs) repayable in monthly installments, last installment due on 10th November 2017 and is secured against specific vehicle
ii) Vehicle loan amounting to Rs. 82.11 lakhs (Rs. Nil) repayable in monthly installments, last installment due on 7th February 2021 and is secured against specific vehicle
iii) Vehicle loan amounting to Rs. 8.56 lakhs (Rs. Nil) repayable in monthly installments, last installment due on 5th September 2019 and is secured against specific vehicle
iv) Vehicle loan amounting to Rs. 6.40 lakhs (Rs. Nil) repayable in monthly installments, last installment due on 5th September 2019 and is secured against specific vehicle
v) Loans from related parties are generally of long term nature. However no repayment schedule is specified
5. Contingent Liabilities:
a) Disputed Income Tax demand in appeal Rs. 777.97 lakhs (Rs. 611.82 lakhs).
b) Sales Tax demand amounting to Rs. 30.49 lakhs (Rs. 30.49 lakhs), under appeal (Net of paid Rs. 3.15 lakhs)
c) Interest demand on Service Tax Rs. 2.78 lakhs (Rs. 2.78 lakhs)
d) Claims against the Company not acknowledged as debts Rs. 74.25 lakhs (Rs. 84.25 lakhs)
e) Custom Duty, if any payable in the event of non-fulfillment of export obligations in respect of Advance License availed amounting to Rs. 26.46 lakhs (Rs. 30.27 lakhs).
6. a) Secured Loan of Rs. 1410 lakhs due to a bank in pursuant to One Time Settlement reached in the
past has been settled during the year for Rs. 1850 lakhs (Net of margin money of Rs. 27.04 lakhs). The impact of additional interest amounting to Rs. 164.06 lakhs and gain on settlement of principal amount of Rs. 68.15 lakhs is accounted during the year.
b) As regards the old debtors amounting to Rs. 306.52 lakhs, since the Company is in process of recovering these amounts, no provision has been made for doubtful debtors.
c) The inventories of Ankleshwar Plant brought to Mumbai has been valued at Rs. 186.25 lakhs at the year end is as certified by the management only.
7. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for depreciation, and all known liabilities are adequate and not in excess of the amounts considered reasonably necessary. No personal expenses have been charged to revenue accounts.
8. In the absence of necessary information relating to the suppliers registered as Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has not been able to identify such suppliers and disclose the information required under the said Act relating to them.
9. In the opinion of the management no provision for impairment in the value of fixed assets of Ankleshwar factory is necessary considering excess of realizable value of such fixed assets as against its carrying amounts in the books of accounts on overall basis.
10. In view of continuous losses, no provision has been made for Deferred Tax Asset (Net) arising out of carry forward losses, depreciation etc. as per prudential norms for recognition as specified in Accounting Standard No 22 on Accounting for taxes on income as issued by the Institute of Chartered Accountants of India. Debit balance of Deferred Tax Assets amounting to Rs. 5.72 lakhs representing balance transferred from one of the transferor companies viz. Khatau Capacitors Private Limited in pursuance to the Scheme of Amalgamation entered during last year has been written off under deferred tax expenses during the current year.
11. Interest paid on Loans includes a sum of Rs. 93.47 Lakhs (Rs. 95.42 lakhs) paid to Directors.
12. Previous period''s figures have been regrouped / rearranged wherever necessary.
Mar 31, 2015
1.Contingent Liabilities:
a) Disputed Income Tax demand on appeal Rs. 611.82 lacs (Rs. 446.77 lacs).
b) Sales Tax demand amounting to Rs. 30.49 lacs (Rs. 30.49 lacs), under
appeal (Net of paid Rs. 3.15)
c) Interest demand on Service Tax Rs. 2.78 lacs (Rs. 2.78 lacs)
d) Claims against the Company not acknowledged as debts Rs. 84.25 lacs
(Rs.. 84.25 lacs )
e) Custom Duty, if any payable in the event of non-fulfllment of export
obligations in respect of advance license availed amounting to Rs. 30.27
lacs ( Rs. 34.27 lacs).
2. a) Secured Loan represents amount of Rs. 1410 lacs due to bank in
pursuant to One Time Settlement reached in the past .
The Company has not repaid any amount during the year and continued to
provide interest at the normal rate since the date of settlement and
total interest provision up to the year end is Rs. 370 lacs. The Company
has further negotiated with the concerned bank in subsequent year i.e.
in financial year 2015-16 and settled the total dues at Rs. 1850 lacs
(net of margin money realization of Rs. 27.13 lacs) and the same has been
fully repaid. The Impact of additional interest amounting to Rs. 164.06
lacs and gain on settlement of principal amount of Rs. 67.39 lacs is
accounted in the year of settlement.
b) As regards the old debtors amounting to Rs. 306.52 lacs, since the
Company is in process of recovering these amount, no provision has been
made for doubtful debtors.
c) The inventories of Ankleshwar plant brought to Mumbai has been
valued at Rs. 333.26 lacs at the year end is as certifed by the
management only.
3. The Company has changed the method of depreciation on fixed assets
in pursuance to the provisions contained in the Companies Act 2013
("The Act") w.e.f 1/4/2014 and amortized the net carrying value of the
fixed assets over its useful lives as specified in Part 'C' of the
Schedule II of the Act. Based on the transitional provisions therein,
an amount of Rs. 1.73 lacs has been debited to the opening balance of
Profit and Loss Account being balance value of the fixed assets whose
useful lives have already expired as at the beginning of the year.
4. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated, if realized in the ordinary
course of business. The provision for depreciation, and all known
liabilities are adequate and not in excess of the amounts considered
reasonably necessary. No personal expenses have been charged to revenue
accounts.
5. The Company has reinstated Rs. 321.51 lacs towards interest and loan
receivable by crediting Capital Reserve upon determination of its
virtual certainty of recovery. The said amount represents the balance
which was taken at "NIL" value from amalgamating Companies in the past
based on fair valuation at that point of time and as per the Scheme of
amalgamation / merger approved by the Hon'ble High Court of Judicature
at Bombay.
6. In the absence of necessary information relating to the suppliers
registered as Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006, the Company has not
been able to identify such suppliers and disclose the information
required under the said Act relating to them.
7. In the opinion of the management no provision for impairment in the
value of fxed assets of Ankles war factory is necessary considering
excess of realizable value of such fixed assets as against its carrying
amounts in the books of accounts on overall basis.
8. In view of continuous losses, no provision has been made for
Deferred Tax Asset (Net) arising out of carry forward losses,
depreciation etc. as per prudential norms for recognition as specifed
in Accounting Standard No 22 on Accounting for taxes on income as
issued by the Institute of Chartered Accountants of India. Debit
balance of Deferred Tax Assets amounting to Rs. 5.72 lacs represents
balance transferred from one of the transferor companies viz. Khatau
Capacitors Pvt Ltd (KCPL) in pursuance to the Scheme of amalgamation
entered during the year and will be reviewed on overall basis of the
Company in future year.
* Excludes provision for gratuity, where the actuarial valuation is
done on overall Company basis
9. Interest paid on Loans includes a sum of Rs. 95.42 Lacs (Rs. 63.37
lacs) paid to directors.
10. Related Party Disclosure: List of Related Parties :
( A ) Key Management Personnel and their relatives
1. Mr. M. K. Khatau Chairman and Managing Director
2. Mrs. Leela K Khatau Mother of Mr. M. K. Khatau and
Director of the Company
3. Mrs. Asha M Khatau Spouse of Mr. M. K. Khatau and
Director of the Company
4. Mr. Manish M Khatau Son of Mr. M. K. Khatau
( B ) Associates :
(i) Priyamvada Holdings Limited
(ii) Orchard Acres
(C) Enterprises signifcantly infuenced by the Key Management Personnel
or their relatives (i) Refnol Resins and Chemicals Limited (ii) Spiweld
Chemtrade Pvt. Ltd. (iii) Asha Marine Products Pvt. Ltd. (iv)
Samudra Dyechem Pvt.Ltd. (v) Formost Chemicals Pvt. Ltd. (vi)
Textomax Chemicals Pvt. Ltd.
*Excludes provision for Gratuity, where the actuarial valuation is done
on overall Company basis
11. Scheme of Arrangement and Amalgamation
A. In terms of the Scheme of Arrangement and Amalgamation ("the
scheme") under sections 391 to 394, read with sections 100 to 103 of
Companies Act 1956 or any other corresponding provisions of the
Companies Act 2013, sanctioned by the order dated 4th September 2015,
of the Hon'ble High Court of Judicature at Bombay, effective from
30.09.2015 :
1. Indokem Exports Limited (IEL) and Khatau Capacitors Private Limited
(KCPL) hereinafter referred to as transferor Companies are amalgamated
with Indokem Limited under the "purchase method" from the appointed
date 1st April 2014. Transferor Company 1 ("IEL") is engaged in the
Textile dyes and chemicals business and Transferor company 2 ("KCPL")
is engaged in the business of manufacturing and dealing in electrical
capacitors.
2 In accordance with the scheme and as per the approval granted by the
Hon'ble High Court of Bombay -
i. The assets, properties, liabilities, rights and obligations of the
Transferor Companies have vested in the Company with effect from the
appointed date.
ii. The assets and liabilities of the Transferor companies have been
recorded at their book values as provided in the scheme.
iii. Inter corporate investments/deposits/loans/advances outstanding
between the Company and the Transferor companies have been cancelled
except for items mentioned in pares vi vii & ix where the impact of
cancellation is shown separately as acquired under amalgamation.
iv. The sales/ purchases/income/expenses arising between the Company
and the Transferor Companies have been cancelled.
v. According to the scheme of Amalgamation 8 % non cumulative
redeemable preference shares of Rs. 10/- each amounting to Rs.
2,07,09,780/- would be issued to the shareholders of Transferor
Companies as under :
invoked Exports Limited : 3,25,978 shares at Rs. 10/ per share amounting
to
Rs. 32,59,780/- ( Ignoring fractional shares ) Khatau Capacitors Pvt.Ltd.
: 17,45,000 shares at Rs. 10/- per share amounting to
Rs. 1,74,50,000/- The same has been shown as Share Capital Suspense in
the Balance Sheet.
vi. The investment of the Transferor Company 2 ("KCPL") in the shares
of the Company and acquired during amalgamation at book value of Rs.
47,77,782/- has been held for disposal.
vii. The face value of shares of the Company held by Transferor Company
2 ("KCPL") amounting to Rs. 96,35,840/- is held for disposal and has been
reduced from the issued capital of the Company.
viii. The authorized share capital of the Company will be increased at
the time of issuance of 8% non-cumulative redeemable preference shares.
ix. Investment of the Company in the Optionally Convertible Debentures
of the Transferor Company 2 ("KCPL") to the extent of Rs. 81,84,600/- has
been held for redemption.
x. The difference of Rs. 48,58,058/- between the face value of shares of
the Company held by the Transferor Company 2 ("KCPL") and the book
value of the shares acquired during amalgamation has been credited to
Capital Reserve.
xi. During the process of amalgamation Net Goodwill of Rs. 132.53 lacs
has been created and shown as additions to Intangible Fixed Assets.
(Refer note no 12)
B. The aforesaid accounting treatment is pursuant to the Scheme as
sanctioned by the Court.
12. Previous period's figures have been regrouped / rearranged wherever
necessary.
13. Figures of current year are inclusive of transferor companies'
financial results and hence not comparable with those of previous
year.
Mar 31, 2014
NOTE NO. 1.
NOTES TO THE FINANCIAL STATEMENTS.
Corporate Information
The Company deals in dyes, sizing chemicals and auxiliaries used in
Textile industry. It has Head office at Mahim, Mumbai and branch offices
at Ahmedabad, Delhi and Coimbatore. It has manufacturing and warehouse
facility at Dahisar Mori near Mumbai and warehouses at Ahmedabad and
Coimbatore locations and manufacturing facilities at Ambernath .
NOTE NO.2
1. Contingent Liabilities:
a) Disputed Income Tax demand on appeal Rs. 446.77 lacs (Rs. 115.41 lacs).
b) Sales Tax demand amounting to Rs. 30.49 lacs (Rs. 30.49 lacs), under
appeal (Net of paid Rs. 3.15)
c) Interest demand on Service Tax Rs. 2.78 lacs (Rs. 2.78 lacs)
d) Claims against the Company not acknowledged as debts Rs. 84.25 lacs (Rs.
88.66 lacs )
e) Guarantees given by the Company:
i) The Company has given counter guarantee for Rs. nil ( Rs. 570/- lacs)
against the facilities availed by M/s Khatau Leasing & Finance Company
Pvt. Ltd. and M/s Khatau Holdings & Trading Pvt. Ltd. towards working
capital facilities from bank.
ii) Guarantee given to Gujarat Pollution Control Board Rs. 25000/ (Rs. Nil)
f) Custom Duty, if any payable in the event of non-fullflment of export
obligations in respect of Advance License availed amounting to Rs. 34.27
lacs ( Rs. 36.77 lacs).
2. The audited financial result for the accounting period is for 12
months and that of previous year is for 6 months and hence not
comparable.
3. a) The written down value of Factory Building and Plant at
Ankleshwar held for disposal is Rs. 468.49 Lacs as against the scrap
value remaining to be adjusted amounting to Rs. 353.60 lacs The Company
has discontinued providing depreciation on these fixed assets from the
date they have been held for disposal.
b) Inventories at Ankleshwar Plant have been evaluated at Rs. 367.61 lacs
against its book value of Rs. 412.17 lacs and the same have been
transferred to Dahisar Mori godown of the Company at Mumbai at the
evaluated amount and has been included as inventory of the Company
lying at the said godown at the same value as at the year end. In the
opinion of the management the said inventories are usable for trading
operations of the Company at Mumbai.
4. a) Secured Loan represents amount of Rs. 14.10 crores due to bank
pursuant to One Time Settlement reached in past. The Company has not
repaid any amount during the year and provided interest of Rs. 148.05
lacs as per agreed rate at the time of settlement. In the absence of
any further information and in the opinion of management the validity
of terms of settlement is not changed and no provision of penal
interest is required.
b) As regards the old debtors amounting to Rs. 247.10 lacs, since the
Company is in process of recovering these amount, no provision has been
made for doubtful debtors.
5. The Company has paid ESIC dues upto the date of closure of
Ankleshwar Plant as per demand received and written back balance
outstanding amount of Rs. 18.95 lacs and management expects no further
liability in respect of the same.
6. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated, if realized in the ordinary
course of business. The provision for depreciation, and all known
liabilities are adequate and not in excess of the amounts considered
reasonably necessary. No personal expenses have been charged to revenue
accounts.
7. In the absence of necessary information relating to the suppliers
registered as Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006, the Company has not
been able to identify such suppliers and disclose the information
required under the said Act relating to them..
8. In the opinion of the management no provision for impairment in the
value of fixed assets of Ankleshwar factory is necessary considering
excess of realizable value of such fixed assets as against its carrying
amounts in the books of accounts on overall basis.
9. In view of continuous losses, no provision has been made for
Deferred Tax Asset (Net) arising out of carry forward losses,
depreciation etc. as per prudential norms for recognition as specified
in Accounting Standard No 22 on Accounting for taxes on income as
issued by the Institute of Chartered Accountants of India
10. Interest paid on Loans includes a sum of Rs. 63.37 Lacs (Rs. 28.96
lacs) paid to Directors.
11. Related Party Disclosure: (Details restricted to transactions
during the year only) (A) Particulars of Subsidiary / Associate
Companies
Name of the Related Party Nature of Relationship
1 Refnol Resin and Chemicals Ltd. Associate Company
2 Khatau Leasing and Finance Co. Pvt. Ltd. Associate Company
3 Vindhyapriya Holdings Pvt. Ltd. Associate Company
4 Emerald Capital Services Pvt. Ltd. Associate Company
5 Priyanilgiri Holdings Pvt. Ltd. Associate Company
6 Khatau Holdings & Trading Co. Pvt. Ltd. Associate Company
7 MKK Holdings Pvt. Ltd. Associate Company
8 Indokem Exports Ltd. Associate Company
9 Indokem Overseas Ltd. Associate Company
10 Priyamvada Holdings Ltd. Associate Company
11 Asha Marine Products Pvt. Ltd. Associate Company
Name of the Related Party Nature of Relationship
12 Prerana Leasing and Finance Pvt. Ltd. Associate Company
13 Prism Plantations Pvt. Ltd. Associate Company
(B) Key Management Personnel and their relatives
1. Mr. M. K. Khatau Chairman and Managing Director
2. Mrs. Leela K Khatau Mother of Mr. M. K. Khatau and
Director of the Company
3. Mrs. Asha M Khatau Spouse of Mr. M. K. Khatau and
Director of the Company
4. Mr. Manish M Khatau Son of Mr. M. K. Khatau
12. Previous period''s figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2013
Corporate Information
The Company deals in dyes, sizing chemicals and auxiliaries used in
Textile industry. It has Head Offce at Mahim, Mumbai and branch offces
at Ahmedabad Delhi and Coimbatore. It has godown at Dahisar Mori near
Mumbai and at Ahmedabad and Coimbatore locations.
1. Contingent Liabilities:
a) Disputed Income Tax demand on appeal Rs. 115.41 lacs (Rs..21.89 lacs).
b) Sales Tax demand amounting to Rs. 30.49 lacs (Rs. 30.49 lacs), under
appeal.
c) Interest demand on Service Tax Rs. 2.78 lacs (Rs. 2.78 lacs)
d) Claims against the Company not acknowledged as debts Rs. 84.25 lacs (Rs.
90.16 lacs )
e) Guarantees given by the Company:
i) On account of guarantee given on behalf of Indokem Exports Limited,
Rs. Nil (Rs. 230.00 lacs) in respect of facilities availed from a bank.
Amount outstanding as at 31st March, 2013 was Rs. Nil (Rs. 131.43 lacs).
ii) On account of guarantee given to a bank on behalf of Indokem
Overseas Limited for Credit facility of Rs. Nil (Rs. 225.00 lacs).
iii) The Company has given Corporate guarantee for Rs. 570.00 lacs (Rs.
570.00 lacs) as counter guarantee against the facilities availed by
M/s. Khatau Leasing & Finance Co. Pvt. Ltd and M/s. Khatau Holdings &
Trading Co. Pvt. Ltd towards working capital facilities from Bank.
iv) To Sales Tax Authorities (New Delhi) towards registration of
Shubhlabh Chemicals Pvt. Ltd. and Khatau Agrotech Ltd. amount totaling
to Rs. Nil (Rs. 5.00 lacs).
f) Custom Duty, if any payable in the event of non-fullflment of export
obligations in respect of Advance License availed amounting to Rs. 36.77
lacs (Rs. 33.91 lacs).
2. The audited fnancial result for the accounting period is for 6
months and that of previous year is for 18 months and hence not
comparable.
3. a) The written down value of Factory Building and Plant at
Ankleshwar held for disposal is Rs. 481.23 lacs as against the scrap
value remaining to be adjusted amounting to Rs. 353.60 lacs. The Company
has discontinued providing depreciation on these fxed assets from the
date they have been held for disposal.
b) Inventories at Ankleshwar Plant could not be physically verifed and
has been valued at Rs. 412.17 lacs after writing off a sum of Rs. 45.11
lacs for obsolescence on the basis of technical evaluation by
management. The said plant is under process of dismantalation.
4. a) Secured Loan represents amount of Rs. 14.10 crores due to bank
pursuant to One Time Settlement reached last year. The Company has not
repaid any amount during the year and provided interest of Rs. 74.02 lacs
as per agreed rate at the time of settlement. In the absence of any
further information and in the opinion of management the validity of
terms of settlement is not changed and no provision of penal interest
is required.
b) As regards the old debtors amounting to Rs. 346.19 lacs , since the
Company is in process of recovering these amounts, no provision has
been made for doubtful debtors.
5. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated, if realized in the ordinary
course of business. The provision for depreciation, and all known
liabilities are adequate and not in excess of the amounts considered
reasonably necessary. No personal expenses have been charged to revenue
accounts.
6. In the absence of necessary information relating to the suppliers
registered as Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006, the Company has not
been able to identify such suppliers and disclose the information
required under the said Act relating to them.
7. In the opinion of the management no provision for impairment in the
value of fxed assets of Ankleshwar factory is necessary considering
excess of realizable value of such fxed assets as against its carrying
amounts in the books of accounts on overall basis.
8. In view of continuous losses, no provision has been made for
Deferred Tax Asset (Net) arising out of carry forward losses,
depreciation etc. as per prudential norms for recognition as specifed
in Accounting Standard No 22 on Accounting for taxes on income as
issued by the Institute of Chartered Accountants of India.
9. Interest paid on loans includes a sum of Rs. 28.96 Lacs (Rs. 80.77
lacs) paid to Directors.
10. Related Party Disclosure: (Details restricted to transactions
during the year only)
Sep 30, 2012
Corporate Information
The Company deals in dyes, sizing chemicals and auxiliaries used in
textile industry. It has head office at Mahim, Mumbai and branch
offices at Ahmedabad, Delhi and Coimbatore. It has godowns at Dahisar
Mori - Mumbai, Ahmedabad and Coimbatore locations.
1. Contingent Liabilities:
a) Disputed Income Tax demand on appeal Rs. 21.89 lacs (Rs. 197.02 lacs).
b) Sales Tax demand amounting to Rs. 30.49 lacs (Rs. 120.37 lacs), under
appeal.
c) Interest demand on Service Tax Rs. 2.78 lacs (Rs. 2.78 lacs).
d) Claims against the Company not acknowledged as debts Rs. 90.16 lacs (Rs.
96.21 lacs).
e) Guarantees given by the Company:
i) On account of guarantee given on behalf of Indokem Exports Limited,
Rs. 230.00 lacs (Rs. 230.00 lacs) in respect of facilities availed from a
bank. Amount outstanding as at 30th September, 2012 Rs. 131.43 lacs
(T131.43 lacs).
ii) On account of guarantee given to a bank on behalf of Indokem
Overseas Limited for Credit facility of Rs. 225.00 lacs (Rs. 225.00 lacs),
total outstanding as at September 30, 2012 was Rs. 131.43 lacs (Rs.131.43
lacs). In this regard, the Company has availed counter guarantee from
Indokem Overseas Limited.
iii) The Company has given counter guarantee for Rs. 570.00 lacs (Rs.
570.00 lacs) against the guarantee availed from M/s. Khatau Leasing &
Finance Co. Pvt. Ltd and M/s. Khatau Holdings & Trading Co. Pvt. Ltd.
towards working capital facilities from Bank.
iv) To Sales Tax Authorities (New Delhi) towards registration of
Shubhlabh Chemicals Pvt. Ltd. and Khatau Agrotech Ltd. amount totaling
to Rs. 5.00 lacs (Rs. 5.00 lacs).
f) For bills discounted with the bankers and outstanding guarantees
issued by them amounting to Rs. Nil (Rs. 410.15 lacs).
g) Custom Duty, if any payable in the event of non-fullfilment of
export obligations in respect of advance license availed amounting to Rs.
33.91 lacs (Rs. 39.70 lacs).
2. The Company has taken extension for closing its current accounting
period to 30th September, 2012 instead of 31s' March, 2012. Hence
audited financial results for the current accounting period is for 18
months. Figures of previous year are for 12 months and not comparable.
3. The accounts of the Company has been prepared on the basis of
Revised Schedule VI of the Companies Act, 1956 and figures of previous
year have been regrouped accordingly.
4. The Company has disposed off its entire investment in its erstwhile
subsidiary company viz. Kapsales Electricals Ltd. on 6th April, 2011,
and hence consolidated accounts are not given.
5. a) Factory Building and Plant at Ankleshwar has been dismantled and
agreed to be sold for lump sum value of scrap amounting to Rs. 848.90
Lacs as against its book value of Rs. 1155.41 Lacs. Loss on the sale of
such fixed assets amounting to Rs. 178.88 lacs has been booked on the
basis of scrap generated and sold. Being lump sum contract, item wise
details of scrap value sold is not available and the same has been
adjusted against written down value of the class of the fixed assets
proportionately. Total written down value is adjusted in the proportion
of scrap sold to the total scrap value received. The Company has
discontinued provision of depreciation on such fixed assets from the
date the same are held for disposal. At the end of the period, written
down value of relevant fixed assets is Rs. 481.23 lacs as against scrap
value remaining to be adjusted amounting to Rs. 353.60 lacs.
b) Inventories at Ankelshwar Plant could not be physically verified and
has been continued to be valued at Rs. 457.28 lacs based on its opening
value. In the absence of any other evidence, the quantum and value of
the said inventories is accepted as certified by the management only.
6. Pursuant to One Time Settlement with Bank, the Company has provided
for total liability of Rs. 1410.00 lacs and adjusted existing book
balance of Rs. 924.60 lacs under various facilities and created debtors
unrealised amounting to Rs. 346.19 lacs for bills discounted through bank
on the basis of statement from bank in the past. Accordingly balance
sum of Rs. 139.21 lacs has been written off to finance costs. As per
information and explanation given by the management, the Company is in
process of realizing the said debtors and no provision for doubtful
debts is required to be created. However, till date, the Company has
not paid the agreed amount of first installment of Rs. 13.50 crores by
its due date as per the terms of the One Time Settlement.
7. Based on the Report Dt. 29/10/2012 of valuer, the amount of the
office premises at Khatau House acquired by the Company pursuant to the
scheme of amalgamation with M/s Radio Components and Transistors Co.
Ltd. in the previous year has been bifurcated into Land Value of Rs.
503.25 lacs and value of building as Rs. 43.76 lacs as against total
value of Rs. 547.01 lacs towards building only in previous year. The
balance opening value of the building has been bifurcated into land and
building proportionately based on this report and excess depreciation
provided in the earlier year amounting to Rs. 7.26 lacs has been written
back.
8. The Company has changed method of depreciation on assets pertaining
to manufacturing division (except for Ankleshwar Plant) from straight
line method to written down value method and accordingly additional
depreciation amounting to Rs. 7.23 Lacs due to change in the method has
been provided in the accounts.
9. The Company has updated its fixed assets register during the year
and written off net values of non existing fixed assets amounting to Rs.
17.08 lacs.
10. In the opinion of the Board, the current assets, loans and
advances are approximately of the value stated, if realized in the
ordinary course of business. The provision for depreciation, and all
known liabilities are adequate and not in excess of the amounts
considered reasonably necessary. No personal expenses have been charged
to revenue accounts.
11. In the absence of necessary information relating to the suppliers
registered as Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006, the Company has not
been able to identify such suppliers and disclose the information
required under the said Act relating to them.
12. In the opinion of the management no provision for impairment in
the value of fixed assets of Ankleshwar factory is necessary
considering excess of realizable value of such fixed assets as against
its carrying amounts in the books of accounts on overall basis.
13. In view of continuous losses, no provision has been made for
Deferred Tax Asset (Net) arising out of carry forward losses,
depreciation etc. as per prudential norms for recognition as specified
in Accounting Standard No. 22 on Accounting for taxes on income as
issued by the Institute of Chartered Accountants of India.
14. Interest paid on Loans includes a sum of Rs. 80.77 Lacs (Rs. 51.47
lacs) paid to directors.
15. Previous year's figures have been regrouped / rearranged
wherever necessary.
Mar 31, 2010
1. Contingent Liabilities:
a) Disputed Income Tax demand on appeal Rs.11.88lacs (Rs.11.90lacs).
b) Disputed demand for various dues of Gujrat Industrial Development
Corporation amounting to Rs. NIL (Rs.49.35 Lacs)
c) Sales Tax demand amounting to Rs.100.94 lacs (Rs. 125.05 lacs),
under appeal.
d) Interest demand on Service Tax Rs. 2.78 lacs (Rs. NIL)
e) Claims against the Company not acknowledged as debts Rs 82.25 lacs
(Rs. 72.25 lacs)
f) Guarantees given by the Company:
i) On account of guarantee given on behalf of Indokem Exports Limited,
Rs.230.00 lacs (Rs.280.00 lacs) in respect of facilities availed from a
bank. Amount outstanding as at 31 st March 2010 was Rs. 120.95 lacs
(Rs. 175.50 lacs).
ii) On account of guarantee given to a bank on behalf of Indokem
Overseas Limited for Credit facility of Rs. 275.00 lacs (Rs.225.00
lacs), total outstanding as at March 31, 2010 was Rs. 127.42 lacs
(Rs.204.03 lacs). In this regard, the Company has availed counter
guarantee from Indokem Overseas Limited.
iii) The Company has given guarantee to a Bank amounting to Rs.786.00
lacs on behalf of its subsidiary: Kapsales Electricals Ltd for working
capital facility. Total outstanding as at 31st March 2010 was Rs.
804.00 lacs (Rs. 379.69 lacs).
iv) The Company has given counter guarantee for Rs.570.00 lacs against
the guarantee availed from M/s. Khatau Leasing & Finance Co. Pvt. Ltd
and M/s. Khatau Holdings & Trading Co. Pvt. Ltd towards working capital
facilities from Bank.
v) To Sales Tax Authorities (New Delhi) towards registration of
Shubhlabh Chemicals Pvt. Ltd. and Khatau Agrotech Ltd. amount totaling
to Rs. 5.00 lacs (Rs. 5.00 lacs).
g) For bills discounted with the bankers and outstanding guarantees
issued by them amounting to Rs. 495.51 lacs (Rs. 801.15 lacs). h)
Custom Duty, if any payable in the event of non-fullfilment of export
obligations in respect of Advance License availed amounting to
Rs.38.36lacs (Rs.26.15lacs).
2. The Companys manufacturing plant at Ankleshwar was not in
operation w.e.f. 16th July 2009 due to sealing of entire Factory
premises by Gujarat Industrial Development Corporation Ltd.(GIDC), for
recovery of their dues. The Company was unable to recover its inventory
lying at the Factory premises and other relevant records due to this
sudden closure and labour unrest prevailing thereafter. However the
company had paid entire dues of GIDC on 31st March 2010 and recovered
possession of the factory premises on 15th April, 2010. On acquiring
possession it was found that most of the records of the inventories and
items of the inventory were found to be stolen/deteriorated in quality
or unidentifiable due to closure of factory for prolonged time. Some of
the inventories were salvaged and brought to Dahisar Mori godown at
Mumbai. Inventory available as on date of possession were reviewed and
inspected technically by the technical staff of the Company and the
same has been considered and valued at Rs.6.25 crore as certified by
management. The process of testing and verification is still in
progress and subsequent diminution in value if any shall be accounted
for in current year. Due to non availability of the stores records ,
the quantity of inventories cannot be reconciled and relevant details
of finished goods and Raw material consumption as required to be given
in Schedule 18 cannot be given.
3. For the reasons mentioned in Note No 2. above, the Company has
suspended all its manufacturing activity at Ankleshwar and started
buying Crude Dyes directly from outside for further standardization and
Mixing operation process to be carried out at Dahisar Mori Godown at
Mumbai. As such the Company has discontinued reporting on Segment
results of Manufacturing activity.
4. Purchase / Sales during the year include purchase aggregating to
Rs. 2,811.52 lacs (prev. year Rs.3,074.76 lacs) and sales aggregating
to Rs.2,810.96 lacs (prev. year. Rs. 3,074.15 lacs) respectively on
account of goods re-purchased and resold on trading account. The loss
on this account for the year is Rs. 0.56 lacs (prev. year loss of Rs.
0.61 lacs).
5. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated, if realized in the ordinary
course of business. The provision for depreciation, and all known
liabilities are adequate and not in excess of the amounts considered
reasonably necessary. No personal expenses have been charged to revenue
accounts.
6. Other liabilities includes liabilities for expenses amounting to
Rs.212.04 lacs.(Prv.Year Rs. 224.60 Lacs)
7. In the absence of necessary information relating to the suppliers
registered as Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006, the Company has not
been able to identify such suppliers and disclose the information
required under the said Act relating to them..
8. In the opinion of the management no provision for impairment in the
value of fixed assets of Ankleshwar factory is necessary considering
excess of realizable value of such fixed assets as against its carrying
amounts in the books of accounts on overall basis.
9. Unsecured Loans includes Rs. 300.00 lacs transferred from Sundry
Creditors based on the supporting letter received from the respective
party.
10. Interest paid on Loans includesa sum of Rs.31.60 Lacs (Rs.32.34
lacs) paid to Director.
11. Segment Reporting Segmental Information is not reported for the
year under review as per reasons given in Note no 3. above
12. Related Party Disclosure: (Details restricted to transactions
during the year only)
(A) Particulars of Subsidiary /Associate Companies
Name of the Related Party Nature of Relationship
1 Kapsales Electricals Limited Subsidiary Company
2 Radio Components and Transistors
Company Limited Subsidiary Company
3 Refnol Resin and Chemicals Ltd Associate Company
4 Khatau Leasing and Finance Co. Pvt. Ltd Associate Company
5 Vindhyapriya Holdings Pvt. Ltd Associate Company
6 Emerald Capital Services Pvt. Ltd Associate Company
7 Priyanilgiri Holdings Pvt. Ltd Associate Company
8 Khatau Holdings & Trading Co. Pvt. Ltd Associate Company
9 MKK Holdings Pvt. Ltd Associate Company
10 Indokem Exports Ltd Associate Company
11 Khatau Agrotech Ltd. Associate Company
(B) Key Management Personnel
and their relatives Nature of relationship
1 Mr. M. K. Khatau Chairman and Managing Director
2 Mrs. Leela K. Khatau Mother of Mr. M. K. Khatau, and
Director of the Company
3. Mrs. Asha M. Khatau Spouse of Mr. M. K. Khatau
4. Ms. Shreya M. Khatau Daughter of Mr.M.K. Khatau
5. Mr. Manish M. Khatau Son of Mr. M. K. Khatau
13. Previous years figures have been regrouped / rearranged wherever
necessary.
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