Mar 31, 2023
Provisions, contingent liabilities and contingent assets
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. The expense
relating to a provision is presented in the Statement
of Profit and Loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost. Provisions are reviewed at each
balance sheet and adjusted to reflect the current best
estimates.
Contingent liabilities
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control
of the Company or a present obligation that is not
recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses
its existence in the financial statements.
Contingent Assets
A contingent asset is not recognised unless it becomes
virtually certain that an inflow of economic benefits
will arise. When an inflow of economic benefits is
probable, contingent assets are disclosed in the
financial statements.
Contingent liabilities and contingent assets are
reviewed at each balance sheet date.
(l) Retirement and other employee benefits
Provident Fund and Employee State Insurance is
a defined contribution scheme established under
a State Plan. The contributions to the scheme are
charged to the Statement of Profit and Loss in the
year when employee rendered related services.
The Company has a defined benefit gratuity plan.
Every employee who has completed five years or more
of service gets a gratuity on post-employment at 15
days salary (last drawn salary) for each completed
year of service as per the rules of the Company. The
aforesaid liability is provided for on the basis of an
actuarial valuation on projected unit credit method
made at the end of the financial year. The scheme is
funded with an insurance Company in the form of a
qualifying insurance policy.
The Company has other long-term employee benefits
in the nature of leave encashment. The liability in
respect of leave encashment is provided for on the
basis of an actuarial valuation on projected unit credit
method made at the end of the financial year. The
aforesaid leave encashment is unfunded.
Re-measurement, comprising of actuarial gains and
losses, the effect of asset ceiling, excluding amounts
included in the net interest on the net defined benefit
liability and the return on plan assets (excluding
amounts included in net interest on the net defined
benefit liability), are recognised immediately in OCI in
the period in which they occur. Re-measurements are
not reclassified to profit or loss in subsequent periods.
(m) Financial instruments
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the
financial asset. All trade receivables do not contain a
significant financing component and are measured at
transaction price.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
a) Debt instruments at amortised cost
b) Debt instruments at fair value through other
comprehensive income (FVTOCI)
c) Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)
d) Equity instruments measured at fair value through
other comprehensive income (FVTOCI)
Debt instruments at amortised cost
A ''debt instrument'' is measured at the amortised
cost if both the following conditions are met:
a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in other income in the Statement of Profit
and Loss. The losses arising from impairment are
recognised in the Statement of Profit and Loss.
This category generally applies to trade receivables,
security deposits & other receivables.
Debt instrument at FVTOCI
A ''debt instrument'' is classified as at the FVTOCI if
both of the following criteria are met:
a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and
b) The asset''s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements are
recognized in the other comprehensive income (OCI).
However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange
gain or loss in the Statement of Profit and Loss. On
derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the
equity to Statement of Profit and Loss. Interest earned
whilst holding FVTOCI debt instrument is reported as
interest income using the EIR method.
Debt instrument at FVTPL
FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.
In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred
to as ''accounting mismatch''). The Company has
designated certain debt instrument as at FVTPL.
Debt instruments included within the FVTPL category
are measured at fair value with all changes recognized
in the Statement of Profit and Loss.
Equity investments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all
other equity instruments, the Company may make an
irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The
Company makes such election on an instrument-by¬
instrument basis. The classification is made on initial
recognition and is irrevocable.
If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in
the OCI. There is no recycling of the amounts from
OCI to profit and loss, even on sale of investment.
However, the Company may transfer the cumulative
gain or loss within equity.
Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognized in the Statement of Profit and Loss.
Derecognition
A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from
the Company''s consolidated balance sheet) when:
a) The rights to receive cash flows from the asset
have expired, or
b) The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
''pass-through'' arrangement; and either (a) the
Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company''s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank
balance
b) Financial assets that are debt instruments and are
measured as at FVTOCI
c) Trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of Ind
AS 115
The Company follows ''simplified approach'' for
recognition of impairment loss allowance on Trade
and other receivables.
The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based
on lifetime ECLs at each reporting date, right from its
initial recognition.
For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss
allowance based on 12-month ECL.
Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
life of a financial instrument. The 12-month ECL is a
portion of the lifetime ECL which results from default
events that are possible within 12 months after the
reporting date.
ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls), discounted
at the original EIR. When estimating the cash flows,
an entity is required to consider:
a) All contractual terms of the financial instrument
(including prepayment, extension, call and similar
options) over the expected life of the financial
instrument. However, in rare cases when the
expected life of the financial instrument cannot
be estimated reliably, then the entity is required
to use the remaining contractual term of the
financial instrument.
b) Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.
c) Financial assets measured as at amortised
cost, contractual revenue receivables and lease
receivables: ECL is presented as an allowance,
i.e., as an integral part of the measurement of
those assets in the balance sheet. The allowance
reduces the net carrying amount. Until the asset
meets write-off criteria, the company does not
reduce impairment allowance from the gross
carrying amount.
As a practical expedient, the Company uses a provision
matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix
is based on its historically observed default rates
over the expected life of the trade receivables and
is adjusted for forward-looking estimates. At every
reporting date, the historical observed default rates
are updated and changes in the forward-looking
estimates are analysed. On that basis, the Company
estimates the following provision matrix at the
reporting date:
(n) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.
The Company''s financial liabilities include trade and
other payables, loans and borrowings including cash
credits and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on
their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are
recognised in Statement of Profit and Loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The
EIR amortisation is included as finance costs in the
Statement of Profit and Loss.
This category generally applies to borrowings. For
more information, refer note 15 and 18.
Financial liabilities at fair value through profit
or loss
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial
instruments entered into by the company that are
not designated as hedging instruments in hedge
relationships as defined by Ind AS 109.
Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the derecognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.
(o) Derivative financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments,
such as interest rate swaps, currency swaps, options
and forward contracts to hedge its interest rate
and foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when
the fair value is negative.
Any gains or losses arising from changes in the fair
value of derivatives are taken directly to Statement of
Profit and Loss.
(p) Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company''s cash management.
(q) Dividend
The Company recognises a liability to make cash
distributions to equity holders when the distribution
is authorised and the distribution is no longer at the
discretion of the Company. As per the corporate
laws in India, a distribution is authorised when it
is approved by the shareholders. A corresponding
amount is recognised directly in equity.
(r) Taxes
Current income tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting
date in the countries where the Company operates
and generates taxable income.
Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to
the underlying transaction either in OCI or directly in
equity. Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.
Deferred tax
Deferred tax is provided using the liability method
on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except:
a) When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss
b) In respect of taxable temporary differences
associated with interests in joint ventures, when
the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised except:
- When the deferred tax asset relating to the
deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit or loss
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside
Statement of Profit and Loss is recognised outside
Statement of Profit and Loss (in other comprehensive
income). Deferred tax items are recognised in
correlation to the underlying transaction either in
Statement of Profit and Loss or in OCI.
Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity
and the same taxation authority.
(s) Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with.
When the grant relates to an expense item, it is
recognised as income on a systematic basis over the
periods that the related costs, for which it is intended
to compensate, are expensed. When the grant
relates to an asset, it is recognised as income in equal
amounts over the expected useful life of the related
assets.
(t) Earnings per share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders after deducting preference dividend and
attributable taxes by the weighted average number
of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.
(u) Segment reporting
Based on "Management Approach" as defined in Ind
AS 108 -Operating Segments, the Chief Operating
Decision Maker (CODM) evaluates the Company''s
performance and allocates the resources based on
an analysis of various performance indicators by
business segments. Inter segment sales and transfers
are reflected at market prices. The Company has
identified the Managing Director as the CODM
who assesses the financial performance and makes
strategic decisions. Refer note 37 for segment
information presented.
Mar 31, 2018
* Sale of goods includes excise duty collected from customers of INR 3,314.30 (March 31, 2017: INR 8,205.90). Sale of goods net of excise duty is INR 1,06,739.68 (March 31, 2017: INR 99,419.66). Revenue from operations for periods up to June 30, 2017 includes excise duty. From July 1, 2017 onwards the excise duty and most indirect taxes in India have been replaced with Goods and Service Tax (GST). The Company collects GST on behalf of the Government. Hence, GST is not included in Revenue from operations. In view of the aforesaid change in indirect taxes, Revenue from operations for the year ended March 31, 2018 is not comparable with the year ended March 31, 2017
** As per the budgetary support scheme, eligible units (Samba and Udhampur in Jammu & Kashmir) are entitled to receive refund of the Goods and Services Tax paid by the unit.
B) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of the financial assets and liabilities.
The Company enjoys a good reputation for its sound financial management and ability to meet in financial commitments. CRISIL, a S&P Global Company, a reputed Rating Agency, has re-affirmed the credit rating of CRISIL A/Stable for the longterm and CRISIL A1 for the Short-term Bank facilities.
(i) Financing arrangements
The Company had access to the following undrawn borrowing facilities at the end of the reporting period:
(ii) Maturities of financial liabilities
The table below summarizes the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments;
C) 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 and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.
(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 Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities (when revenue or expense is denominated in a foreign currency).
When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations on the foreign currency loan by using foreign currency swaps and forwards.
At March 31, 2018, March 31, 2017 and April 01, 2016, the Companyâs hedge position is stated in Note 32. This foreign currency risk is hedged by using foreign currency forward contracts and full currency interest rate swaps.
Sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD and JPY exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates. At March 31, 2018, 99.86% (March 31, 2017: 99.82%, April 1, 2016 - 99.46%) of the Companyâs total borrowings are at a fixed rate of interest. As on March 31, 2018, the Companyâs borrowings were mainly denominated in INR and USD. In case of ECBs, the Company raises them at floating rates and swaps them into fixed rates that are lower than those available if the Company borrowed at fixed rates directly. Companyâs fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
(b) Sensitivity
The Companyâs exposure to long-term floating rate borrowings (mainly on account of vehicle loans) is not significant hence the sensitivity is not disclosed.
(iii) Price risk
(a) Exposure
The Groupâs exposure to equity securities price risk arises from investments held by the Group in equity shares of OAT Agrio Co. Ltd. (Co-venturer of J.V.) and classified in the balance sheet as fair value through OCI (note 30).
(b) Sensitivity
The Groupâs investment in equity shares of OAT Agrio Co. Ltd. (Co-venturer of J.V.) is publicly traded in the Japanese stock exchange. With all other variables held constant, a 10% movement in the market value of the equity instrument will increase or decrease other comprehensive income by INR 83.11 (March 31, 2017: INR 31.03)
1. CAPITAL MANAGEMENT (a) Risk management
Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. For the purpose of the Companyâs capital management, net debt includes interest bearing loans and borrowings, less cash and cash equivalents. Capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2018 & March 31, 2017
In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
The amount of dividend distribution tax on dividends that were proposed or declared before the financial statements were approved for issue, but are not recognized as a liability amounts to INR 84.97 (March 31, 2017: INR 84.16)
2. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company is engaged in the business of manufacturing and distribution of Agro-chemicals comprising of technical and formulation, hence there is one operating segment.
The basis for attributing revenues from external customer is based on the country of domicile of the respective customers.
b) Revenue from Major Customers: There is no customer having revenue amounting to 10% or more of Companyâs total revenue.
37. RELATED PARTY TRANSACTIONS
(i) Names of related parties and related party relationship:-
a) Key Management Personnel (KMP)
1. Sh. Hari Chand Aggarwal - Chairman
2. Sh. Rajesh Aggarwal - Managing Director
3. Ms. Nikunj Aggarwal - Whole-time Director
4. Sh. Sandeep Aggarwal - Chief Financial Officer
5. Sh. Pankaj Gupta - Company Secretary (Upto March 29, 2017)
6. Sh. Sandeep Kumar - Company Secretary (w.e.f. April 17, 2017)
b) Independent directors
1. Sh. Vrijesh Kumar Gupta
2. Mr. Navin Shah
3. Mr. Jayaraman Swaminathan
4. Mr. Deepak Gupta (appointed w.e.f. April 30, 2016 & resigned w.e.f. January 15, 2018)
5. Mr Vinod Kumar Mittal
6. Sh. Navneet Goel (resigned w.e.f. September 21, 2016)
7. Sh. Anil Kumar Singh (resigned w.e.f. July 12, 2016)
8. Sh. Gopal Chandra Agarwal (resigned w.e.f. September 21, 2016)
c) Relatives of KMPs
1. Sh. Sanjeev Aggarwal
2. Ms. Sonia Aggarwal
3. Ms. Anju Aggarwal
4. Mrs Pushpa Aggarwal
d) Enterprises over which the Company exercises joint control 1. OAT & IIL India Laboratories Private Limited
e) Enterprises over which key management personnel and their relatives have control / significant influence:
1. Paras Agro Industries
2. ISEC Organics Ltd.
3. Evergreen Mineral Industries
4. Valve & Phneumaticals
5. Vinod Metals Industries
6. Crystal Crop Protection Pvt. Ltd.
7. HPM Chemicals & Fertilizers Ltd.
8. Crop Care Federation of India
9. IIL foundation
3. The Balances shown under the head Trade Receivables and Trade Payables are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from trade receivables and payables.
4. Amount due to Micro & Small enterprises under MSMED Act, 2006 is INR 825.86 (March 31, 2017: Nil, April 01, 2016: Nil). There are no overdue amounts payable to Micro, Small and Medium enterprises as required by Micro, Small & Medium Enterprises Development Act, 2006, as on the Balance Sheet date to the extent such enterprises have been identified based on information available with the company. In view of this there is no overdue interest payable.
5. First time adoption of Ind AS
These are the companyâs first financial statements prepared in accordance with Ind AS.
These financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Previous GAAP or Indian GAAP. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April 1, 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP or Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.
An explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position, financial performance and cash flows is set out in the following notes and tables:
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
1. Ind AS optional exemptions
a) Deemed cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment including capital work-in-progress as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets including intangible assets under development covered by Ind AS 38 Intangible assets.
Accordingly, the Company has elected to measure all of the mentioned assets at their previous GAAP carrying value.
b) Designation of previously recognized financial instruments
Ind AS 101 allows an entity to designate investments in equity instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.
c) Derivatives
The Company has measured all derivatives at fair value at the date of transition and de-recognized all deferred losses and gains arising on derivatives that were reported in accordance with previous GAAP as if they were assets or liabilities.
d) Determining whether an arrangement contain a lease
Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the lease contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place at the date of transition.
2. Ind AS mandatory exceptions
a) Estimates
An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 1, 2016 and March 31, 2017 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following item in accordance with Ind AS at the date of transition as this was not required under previous GAAP:
- Impairment of financial assets based on expected credit loss model.
- Derivatives
b) De-recognition of financial assets and liabilities
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of entityâs choosing provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
c) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets into amortized cost or FVTOCI on the basis of the facts and circumstances that exist at the date of transition to Ind AS, if retrospective application is impracticable. Accordingly, the Company has determined the classification and measurement of financial assets into amortized cost or FVTOCI based on the facts and circumstances that exist on the date of transition.
1 Leasehold land
Under Previous GAAP, land leases under perpetual leases were not depreciated. However, Ind AS requires such land leases (which do not provide an option to renew) to be depreciated over the lease term. Accordingly, property, plant and equipment is decreased by INR 29.47 (April 1, 2016 - INR 24.92), profit for the year has decreased by INR 4.54 and total equity has as at March 31, 2017 decreased by INR 29.47 (April 1, 2016 - INR 24.92).
2 Fair valuation of investments
Under Previous GAAP, the Company recognized long-term investments in equity shares at cost less provision for diminution in the value of investments. Under Ind AS, the Company has designated such investments as FVTOCI and measured them at fair value through Other comprehensive income. This has decreased total equity by INR 2.50 as at March 31, 2017 (April 1, 2016 - INR 5.43). Other comprehensive income for the year ended March 31, 2017 increased by INR 2.93 (net of tax impact of iNr 0.88). The investment in equity instruments decreased by iNr 3.25 (April 1, 2016 - INR 7.06).
3 Derivative instruments
Under Previous GAAP, the forward premium was amortized as expense over the tenure of the swap. Further, the net mark-to market losses on derivative financial instruments, as at the Balance Sheet date, were recognized in statement of profit and loss and the net gains, if any, were ignored. Under Ind AS, such derivative financial instruments are to be recognized at fair value and the changes are recognized in statement of profit and loss. Therefore, unamortized premium as at March 31, 2017 amounting to INR 82.25 (April 1, 2016 - INR 125.44) presented under other current and non-current assets has been de-recognized. Further, forward contract payable amounting to INR 207.46 (April 1, 2016 - INR Nil) has also been de-recognized.
Under Ind AS, Derivative assets (non-current) amounting to INR 11.70 (April 1, 2016 - INR 66.86), derivative assets (current) amounting to INR 46.78 (April 1, 2016 - INR 148.64) and derivative liabilities (current) amounting to INR 170.96 (April 1, 2016 - iNr 198.89) have been recorded.
Further, the associated long term borrowings have increased by 13.26 (April 1, 2016 - INR 75.00), short term borrowings have decreased by INR 28.65 (April 1, 2016 - INR 60.80), other financial liabilities have increased by INR 54.33 (April 1, 2016 - 147.36).
As a result of the above adjustments, profit for the year ended March 31, 2017 increased by INR 244.16 and total equity as on March 31, 2017 decreased by INR 26.21 (April 1, 2016 - 270.38).
4 Expected credit loss on receivables
Under Indian GAAP, Company has recognized specific amount towards impairment of Trade receivables on the basis of incurred losses. Under Ind AS, impairment allowance has been recognized based on Expected Credit Loss basis (ECL). As a result, the receivables decreased by INR 302.45 as at March 31, 2017 (April 1, 2016 - INR 238.19). Consequently, the total equity as at March 31, 2017 decreased by INR 302.45 (April 1, 2016 - INR 238.19) and profit for the year ended March 31, 2017 decreased by INR 64.26.
5 Deferred taxes
Under Previous GAAP, deferred taxes were recognized using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. In addition, the various transitional adjustments has led to temporary differences. Accordingly, Company has accounted for deferred tax on such differences in retained earnings and other comprehensive income. The net impact on deferred tax liabilities as at March 31, 2017 was an decrease of INR 114.49 (April 1, 2016 - INR 177.64). The profit and other comprehensive income for the year ended March 31, 2017 decreased by INR 62.26 and INR 0.88 respectively
6 Revenue from operations
Under Previous GAAP, discounts and incentives to customers were disclosed as an expense in the statement of profit and loss. Under Ind AS, such expenses have been netted off from revenue. Further, under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. As a result revenue for the year ended March 31, 2017 is lower by INR 3,112.87 the other expenses have decreased by INR 11,318.77 and excise duty expense has increased by INR 8,205.90. There is no impact on total equity and profit.
7 Re-measurement of defined benefit obligations
Under Previous GAAP, re-measurements i.e. actuarial gains and losses and the return on plan assets (excluding amounts included in the net interest expense on the net defined benefit liability) were recognized in employee benefit expenses. Under Ind AS, such remeasurements are recognized in other comprehensive income (OCI). As a result of this change, the profit for the year ended March 31, 2017 has increased and OCI has decreased by INR 13.97 (net of current tax amounting to INR 7.40). There is no impact on the total equity as at March 31, 2017
8 Other comprehensive income
Under Previous GAAP, the Company has not presented other comprehensive income (OCI) separately. Items of income and expense that are recognized in âother comprehensive incomeâ includes remeasurements of defined benefit plans and fair value gains or (losses) on FVTOCI equity instruments. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.
9 Retained earnings
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.
10 Statement of cash flows
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows. Therefore, no reconciliation for the same has been presented
Mar 31, 2017
1. Rights, preferences and restrictions attached to shares :
The company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion to their shareholding
The Company has proposed Rs 2.00 per share as Dividend .
2. Nature of Security and terms of repayment for secured borrowing :
3. Term Loans from banks for vehicles have been secured by hypothecation of vehicles.Further, vehicles loans have been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. These loans are repayable in 36 monthly installments from the date of the loans along with interest rates ranging between 9.30% to 10.50% per annum .
4. The Foreign Currency outstanding loan amounting to NIL ( Previous Year -165.19 Lacs) was secured by the first charge over Plant and Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant ( Gujarat). Further, the loan was guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal.
5. The Foreign Currency outstanding loan amounting to NIL (Previous Year - 621.09 Lacs) was secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujrat). Further, the loan was guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal.
6. The Foreign Currency outstanding loan amounting to 339.06 Lacs (Previous Year - 610.31 Lacs) has been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujrat). Further, the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 5 quarterly installments . The interest is to be paid on quarterly basis at Libor plus 3.00%. Further, the company has entered into the derivative contract for hedging of the currency swaps and interest rate swaps.
7. The Indian Rupees Term Loans outstanding amounts to 2397.06 Lacs (Previous Year - 3779.41 Lacs) have been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujrat). Further, the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. These outstanding loans are repayable quarterly in 2 & 12 installments alongwith interest @ 11.50% & @ 10.95% respectively.
8. BONUS ISSUE
The company has allotted 63,41,483 number of Equity shares as Bonus shares on 25.04.2015 in the ratio of 2:1 during the preceding year and the same got listed on 08.05.2015.
9. EARNING PER SHARE (EPS)
The Company reports basic & diluted earnings per equity share in accordance with Accounting Standard - 20 issued by The Institute of Chartered Accountants of India. The same is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. The earning per share is calculated as under:
10. EMPLOYEE BENEFITS
11. RETIREMENT BENEFITS
12. Retirement benefits in the form of Provident Fund / Family Pension Fund, which are defined contribution plans, are accounted for on accrual basis and charged to the Statement of Profit & Loss of the year.
13. Retirement benefits in the form of Leave Encashment, which is defined benefit plan, is accounted for on the basis of an actuarial valuation done by applying the Projected Unit Credit Method.
14. Retirement benefits in the form of Gratuity, which is define benefit plan, is determined and accounted for on the basis of an actuarial valuation done by applying the Projected Unit Credit Method.
15. The actuarial Gains / Losses arising during the year are recognized in the Statement of Profit & Loss of the year.
The following tables summarize the components of net benefit expense recognized in the Statement of Profit & Loss and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan:
16. Short Term Employees Benefits are recognized as an expense in the Statement Profit & Loss of year in which the related service is rendered.
17. SEGMENT REPORTING
The Company is engaged in the business of Formulation & Manufacture of Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment Liabilities have been identified to the segments on the basis of their relationship to the operating activities of the segment. The Revenue, Expenses, Assets & Liabilities which are not allocable to segments, have been included under âUnallocated Revenue, Expenses, Assets & Liabilities.
18. PRIMARY SEGMENT
Based on the following guiding principles given in the Accounting Standard-17 âSegment Reportingâ issued by The Institute of Chartered Accountants of India, the Companyâs primary segments are Formulated Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant Growth Regulators and Technical Pesticides, which are the basic active ingredients used for making formulations so that they can be used directly by the Farmers and/or Consumers:
19. The nature of the products.
20. The related risks and returns.
21. The internal financial reporting system.
Revenue and Expenses have been accounted for based on the basis of their relationship to the operating activities of the segments.
Revenue and Expenses, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under âUn-allocable Expenses & Revenueâ.
Assets and Liabilities, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under âUn-allocable Assets / Liabilitiesâ.
22.. SECONDARY SEGMENT
The Company caters mainly to the need of the Indian Market. The Export Turnover during the year is less than 10% of the total turnover; as such there is no reportable geographical segment.
23.. RELATED PARTY DISCLOSURES
In compliance to AS 18 specified under the companies (Accounts) rules, 2014, the Disclosure of transactions with Related Parties as defined in Accounting Standard are given herein below: i.) RELATED PARTIES
24. Key Management Personnel & their Relatives :
25. Sh. Hari Chand Aggarwal 26. Sh. Vinod Kumar Mittal
27. Sh. Rajesh Aggarwal 28. Sh. Sandeep Aggarwal
29. Smt.. Nikunj Aggarwal 30. Sh. Sanjeev Aggarwal
31. Sh. Navneet Goel (Resigned) 32. Smt. Sonia Aggarwal
33. Sh. Virjesh Kumar Gupta 34. Smt. Anju Aggarwal
35. Sh. Gopal Chandra Agarwal (Resigned) 36. Sh. Pankaj Gupta (Resigned)
37. Sh. Navin Shah 37. Smt Pushpa Aggarwal
38. Sh. Anil Kumar Singh (Resigned) 39. Sh. Deepak Gupta
40. Sh. Jayaraman Swaminathan
41. Other related parties where common control exists and with whom the company had transactions during the year:
42. Paras Agro Industries Firm
43. ISEC Organics Ltd. Company
44. Evergreen Mineral Industries Firm
45. Valve & Phneumaticals Firm
46. Vinod Metals Industries Firm
47. OAT & IIL India Laboratories Private Limited Joint Venture Company
48. Crystal Crop Protection Pvt. Ltd. Company
49. HPM Chemicals & Fertilizers Ltd. Company
50. Crop Care Federation of India NPO
51. CORPORATE SOCIAL RESPONSIBILITY
As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The company''s policy covers current as well as proposed CSR activities to be undertaken by the company and examining their alignment with Schedule VII of the Act.
The company proposes to implement its CSR activities in various sectors which include promoting Education, green initiatives, and facilities for senior citizens, vocational & entrepreneurship skills, medical aid & healthcare, old age homes & women hostels, art and culture, destitute care and rehabilitation, rural development projects and others.
52. Estimated amount of Contract remaining to be executed on capital accounts (net of advances) & not provided for Rs.NIL (Previous year Rs.NIL).
53. In the opinion of the Board of Directors of the Company, the current assets, loans and advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/known liabilities have been made in the Accounts when reliable estimates can be made of the amount of obligation.
54. The Balances shown under the head sundry debtors and Sundry Creditors are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from sundry debtors & creditors.
55. The Company has valued inventories as required under AS-2 specified under the companies (Accounts) rules, 2014.
56. The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2017 is Rs.723.63 Lacs (Previous Year-Rs.933.80 Lacs).
57. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.
58. The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current yearâs figures.
59. All the common expenses incurred during the year in respect of Formulation (Products) units at Chopanki, Samba, Udhampur and Dahej have been allocated at the yearend in the proportion to sales (net) effected during the year. The Technical (Products) Units at Chopanki & Dahej are separate as well as independent units having no common activities if compared with above mentioned Formulation Units and as such, the expenses incurred by branches/ other units have not been allocated to the Technical unit except common expenses incurred by the Head office which are allocated in proportion to Sales (net) effected by all the units.
60. Foreign currency exposure that are not hedged by derivatives instruments as on March 31, 2017 amounts toRs.6175.13 lacs (Previous YearRs.1847.64 Lacs)
61. Mark to Market Losses provided by the company during the year amounts to Rs.89.25 lacs (Previous YearRs.2.91 Lacs)
Mar 31, 2016
Notes:-
1. The company has alloted 63,41,483 number of Equity Shares as Bonus Shares on 25.04.15 in the ratio of 2:1 during the year and the same got listed on 08.05.2015.
2. The company has further alloted 16,43,347 number of Equity shares under QIP at premium of '' 499.70 per share on 17.08.2015 during the year and the same got listed on 20.08.2015.
3(b) Rights, Preferences and Restrictions attached to Shares :
The company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion to their shareholding.
The Company has declared '' 2.00 per share as Interim Dividend & paid the same on 18.03.2016.
4 (a) Nature of Security and terms of repayment for secured borrowing :
(i) Term Loans from banks for vehicles have been secured by hypothecation of vehicles. Further, vehicles loans have been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. These loans are repayable in 36 monthly installments from the date of the loans along with interest rates ranging between 10.00% to 12.50% per annum .
(ii) The Foreign Currency outstanding loan amounting to ''167.90 Lacs ( Previous Year - '' 706.25 Lacs) has been secured by the first charge over Plant and Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant ( Gujarat). Further, the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 2 quarterly instilments. The interest is to be paid on quarterly basis at Libor plus 2.50%. Further, the company has entered into the derivative contract for hedging of the currency swaps and interest rate swaps.
(iii) The Foreign Currency outstanding loan amounting to Rs, 621.36 Lacs (Previous Year - Rs,1367.57 Lacs) has been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujrat). Further , the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 3 quarterly instilments . The interest is to be paid on quarterly basis at Libor plus 3.50%. Further, the company has entered into the derivative contract for hedging of interest rate swaps & 36% of currency swaps.
(iv) The Foreign Currency outstanding loan amounting to Rs, 622.69 Lacs (Previous Year - Rs, 1021.31 Lacs) has been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujrat). Further , the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 9 quarterly instilments . The interest is to be paid on quarterly basis at Libor plus 3.00%. Further, the company has entered into the derivative contract for hedging of the currency swaps and interest rate swaps.
(v) The Indian Rupees Term Loans outstanding amounts to Rs, 3780.72 Lacs (Rs, 1050.36 Lacs Rs, 2730.36 Lacs) (Previous Year - Rs, 4650.95 Lacs) have been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujrat). Further , the loan has been guaranteed by the personal guarantee of the directors-Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. These outstanding loans are repayable quarterly in 6 & 16 installments alongwith interest @ 12.50% & @ 11.95% respectively.
Working Capital Loans (Demand Loan, Cash Credit & Buyers Credits) from banks are secured by first pari passu charge over present and future stock & book debts and moveable fixed assets of the company. These loans are additionally secured by equitable mortgage on pari passu basis over Lands & Buildings of the company and residential property of the director at Pitampura Delhi and negative lien on companyâs office at Azadpur (Delhi). Further, these loans have been guaranteed by the personal guarantee of the directors -Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal.
CAPITALIZED BORROWING COSTS :-
No borrowing cost has been capitalized during the year. A sum of Rs, 683.65 ( Previous Year Rs, 1005.40 ) has been transferred to Capital Work in Progress on account of borrowing cost during the year. The detail thereof is as under :
5. BONUS ISSUE
The company has allotted 63,41,483 number of Equity shares as Bonus shares on 25.04.2015 in the ratio of 2:1 during the year and the same got listed on 08.05.2015.
6. QUALIFIED INSTITUTIONAL PLACEMENT (QIP) ISSUE
The Company has further allotted 16,43,347 number of Equity shares under QIP at premium of Rs, 499.70 per share on 17.08.2015 during the year and the same got listed on 20.08.2015.
7. EARNING PER SHARE (EPS)
The Company reports basic & diluted earnings per equity share in accordance with Accounting Standard -20 issued by The Institute of Chartered Accountants of India. The same is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. The earnings per share is calculated as under:
8. EMPLOYEE BENEFITS
A. RETIREMENT BENEFITS
(a) Retirement benefits in the form of Provident Fund / Family Pension Fund, which are defined contribution plans, are accounted for on accrual basis and charged to the Statement of Profit & Loss of the year.
(b) Retirement benefits in the form of Leave Encashment, which is defined benefit plan, is accounted for on the basis of an actuarial valuation done by applying the Projected Unit Credit Method.
(c) Retirement benefits in the form of Gratuity, which is define benefit plan, is determined and accounted for on the basis of an actuarial valuation done by applying the Projected Unit Credit Method.
(d) The actuarial Gains / Losses arising during the year are recognized in the Statement of Profit & Loss of the year.
Investment Details of Plan Assets: 100% with Life Insurance Corporation of India
B. Short Term Employees Benefits are recognized as an expense in the Statement Profit & Loss of year in which the related service is rendered.
9. SEGMENT REPORTING
The Company is engaged in the business of Formulation & Manufacture of Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment Liabilities have been identified to the segments on the basis of their relationship to the operating activities of the segment. The Revenue, Expenses, Assets & Liabilities which are not allocable to segments, have been included under âUnallocated Revenue, Expenses, Assets & Liabilities.
A. PRIMARY SEGMENT
Based on the following guiding principles given in the Accounting Standard-17 âSegment Reportingââ issued by The Institute of Chartered Accountants of India, the Companyâs primary segments are Formulated Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant Growth Regulators and Technical Pesticides, which are the basic active ingredients used for making formulations so that they can be used directly by the Farmers and/or Consumers:
i) The nature of the products.
ii) The related risks and returns.
iii) The internal financial reporting system.
Revenue and Expenses have been accounted for based on the basis of their relationship to the operating activities of the segments.
Revenue and Expenses, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under âUn-allocable Expenses & Revenueâ.
Assets and Liabilities, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under âUn-allocable Assets / Liabilitiesâ.
B. SECONDARY SEGMENT
The Company caters mainly to the need of the Indian Market. The Export Turnover during the year is less than 10% of the total turnover; as such there is no reportable geographical segment.
10. RELATED PARTY DISCLOSURES
In compliance to AS 18 issued by The Institute of Chartered Accountants of India, the Disclosure of transactions with Related Parties as defined in Accounting Standard are given herein below:
i) RELATED PARTIES
A. Key Management Personnel & their Relatives :
1. Sh. Hari Chand Aggarwal 9. Sh. Jayaraman Swaminathan
2. Sh. Rajesh Aggarwal 10. Sh. Vinod Kumar Mittal
3. Ms. Nikunj Aggarwal 11. Sh. Sandeep Aggarwal
4. Sh. Navneet Goel 12. Sh. Sanjeev Aggarwal
5. Sh. Virjesh Kumar Gupta 13. Ms. Sonia Aggarwal
6. Sh. Gopal Chandra Agarwal 14. Ms. Anju Aggarwal
7. Sh. Navin Shah 15. Sh. Pankaj Gupta
8. Sh. Anil Kumar Singh
B. Other related parties where common control exists and with whom the company had transactions during the year:
2. ISEC Organics Ltd. Company
3. Evergreen Mineral Industries Firm
5. Vinod Metals Industries Firm
6. OAT & IIL India Laboratories Joint Venture Company Private Limited
7. Crystal Crop Protection Pvt. Ltd. Company
8. HPM Chemicals & Fertilizers Ltd. Company
9. Crop Care Federation of India NPO
(Except above, there is no other related persons / parties with whom transaction took place during the year as confirmed and certified by the Management of the Company)
11. CORPORATE SOCIAL RESPONSIBILITY
As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The companyâs policy covers current as well as proposed CSR activities to be undertaken by the company and examining their alignment with Schedule VII of the Act.
The Company proposes to implement its CSR activities in various sectors which include promoting Education, green initiatives, and facilities for senior citizens, vocational & entrepreneurship skills, medical aid & healthcare, old age homes & women hostels, art and culture, destitute care and rehabilitation, rural development projects and others.
(Except above no other contingent liabilities are outstanding as explained and certified by the Management of the Company)
With respect to contingent liabilities reported at (e) and (f) above, the management has taken an opinion from the legal advisors / professionals engaged by them and is very much hopeful that the appeals will be decided in the favor of the company and as such, no provision thereof has been made.
12. Estimated amount of Contract remaining to be executed on capital accounts (net of advances) & not provided for Rs, NIL (Previous year Rs, NIL).
13. In the opinion of the Board of Directors of the Company, the current assets, loans and advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/known liabilities have been made in the Accounts when reliable estimates can be made of the amount of obligation.
14. The Balances shown under the head sundry debtors and Sundry Creditors are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from sundry debtors & creditors.
15. The Company has valued inventories as required under AS-2 issued by The Institute of Chartered Accountants of India.
16. The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2016 is Rs, 933.80 Lacs (Previous Year- Rs, 1176.35 Lacs).
17. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.
18. The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current yearâs figures.
19. All the common expenses incurred during the year in respect of Formulation (Products) units at Chopanki, Samba, Udhampur and Dahej have been allocated at the yearend in the proportion to sales (net) effected during the year. The Technical (Products) Units at Chopanki & Dahej are separate as well as independent units having no common activities if compared with above mentioned Formulation Units and as such, the expenses incurred by branches/ other units have not been allocated to the Technical unit except common expenses incurred by the Head office which are allocated in proportion to Sales (net) effected by all the units.
b) Foreign currency exposure that are not hedged by derivatives instruments as on March 31, 2016 amounts to Rs, 1847.64 Lacs (Previous Year Rs, 6722.36 Lacs)
c) Mark to Market Losses provided by the company in earlier year, reversed during the year amounts to Rs, 11.77 Lacs i.e. M to M as on March 31, 2016 stands at Rs, 2.91 Lacs (Previous Year- Rs, 14.68 Lacs)
During the year, Mr. Jayaraman Swaminathan, being Chairman of the Nomination and Remunerations Committee attended one Committee Meeting
- Mr. Pankaj Gupta, Company Secretary of the Company acted as the Secretary to the Committee.
B. Terms of Reference
The Terms of reference of Nomination and Remuneration Committee include:
a) To identify persons who are qualified to become Directors and who may be appointed in senior
Mar 31, 2015
1. EARNING PER ShARE (EPS)
The Company reports basic & diluted earnings per equity share in
accordance with Accounting Standard  20 issued by The Institute of
Chartered Accountants of India. The same is computed by dividing the
net profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
The earnings per share is calculated as under:
2. Employee BENEFITS
A. Retirement Benefits
(a) Retirement benefits in the form of Provident Fund / Family Pension
Fund, which are defend contribution plans, are accounted for on accrual
basis and charged to the Statement of Profit & Loss of the year.
(b) Retirement benefits in the form of Leave Encashment, which is defend
benefit plan, is accounted for on the basis of an actuarial valuation
done by applying the Projected Unit Credit Method.
(c) Retirement benefits in the form of Gratuity, which is define benefit
plan, is determined and accounted for on the basis of an actuarial
valuation done by applying the Projected Unit Credit Method.
(d) The actuarial Gains / Losses arising during the year are recognized
in the Statement of Profit & Loss of the year.
The following tables summarize the components of net benefit expense
recognized in the Statement of Profit & Loss and the funded status and
amounts recognized in the Balance Sheet for the Gratuity Plan:
3. SEGMENT REPORTING
The Company is engaged in the business of Formulation & Manufacture of
Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment
Liabilities have been identified to the segments on the basis of their
relationship to the operating activities of the segment. The Revenue,
Expenses, Assets & Liabilities which are not allocable to segments,
have been included under "Unallocated Revenue, Expenses, Assets &
Liabilities.
A. Primary Segment
Based on the following guiding principles given in the Accounting
Standard-17 "Segment Reporting'' issued by The Institute of Chartered
Accountants of India, the Company's primary segments are Formulated
Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant
Growth Regulators and Technical Pesticides, which are the basic active
ingredients used for making formulations so that they can be used
directly by the Farmers and/or Consumers:
i) The nature of the products.
ii) The related risks and returns.
iii) The internal financial reporting system.
Revenue and Expenses have been accounted for based on the basis of
their relationship to the operating activities of the segments.
Revenue and Expenses, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "Un-allocable Expenses & Revenue''.
Assets and Liabilities, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "Un-allocable Assets / Liabilities''.
4. CORPORATE SOCIAL Responsibility
As per Section 135 of the Companies Act, 2013, a CSR committee has been
formed by the company. The company's policy covers current as well as
proposed CSR activities to be undertaken by the company and examining
their alignment with Schedule VII of the Act.
The company proposes to implement its CSR activities in various sectors
which includes promoting Education, green initiatives, facilities for
senior citizens, vocational & entrepreneurship skills, medical aid &
healthcare, old age homes & women hostels, art and culture, destitute
care and rehabilitation, rural development projects and others.
5. CONTINGENT LIABILITIES
(In Lacs)
S . Particular As at As at
No. March 31, 2015 March 31, 2014
(a) Letter of Credits
(FLC & ILC) 8825.99 13326.63
(b) Bank Guarantee 326.93 424.57
(c) Import Bills Accepted
with Banks NIL 563.55
(d) Excise Matter with Appellate
Authority, New Delhi NIL 75.67
(Period Covered  March, 2002
to October,2002)
(e) Excise Matter with Appellate
Authority, New Delhi 186.11 186.11
(Period Covered  Sept.,2004
to August,2007)
(f) Sales Ta x Matters 473.55 464.04
(Except above no other contingent liabilities are outstanding as
explained and Certified by the Management of the Company)
With respect to contingent liabilities reported at (e) and (f) above,
the management has taken an opinion from the legal advisors /
professionals engaged by them and is very much hopeful that the appeals
will be decided in the favour of the company and as such, no provision
thereof has been made.
6. Estimated amount of Contract remaining to be executed on capital
accounts (net of advances) & not provided for NIL (Previous year H950
Lacs).
7. In the opinion of the Board of Directors of the Company, the
current assets, loans and advances have the value at least equal to the
figures stated in the Balance Sheet on realization in the ordinary
course of business and provision for all determinable/known liabilities
have been made in the Accounts when reliable estimates can be made of
the amount of obligation.
8. The Balances shown under the head sundry debtors and Sundry
Creditors are subject to confirmation and reconciliations. However, the
Company has initiated the process of obtaining confirmations from sundry
debtors & creditors.
9. The Company has valued inventories as required under AS-2 issued
by The Institute of Chartered Accountants of India.
10. The total amount payable to Small Scale Industries (SSI)
outstanding for more than 30 days as at March 31, 2015 is H1176.35 Lacs
(Previous Year - H1312.75 Lacs).
11. The Company has not received any confirmation from suppliers
regarding their status of registration under the Micro, Small & Medium
Enterprises Development Act, 2006 which came into effect from October
2, 2006 and hence disclosure required under the said act have not been
given.
12. The Previous Year Figures have been reworked , regrouped ,
rearranged, reclassified and / or re-casted wherever deemed necessary to
make them comparable with those of the current year's figures.
13. All the common expenses incurred during the year in respect of
Formulation (Products) units at Chopanki, Samba, Udhampur and Dahej
have been allocated at the yearend in the proportion to sales (net)
effected during the year. The Technical (Products) Units at Chopanki &
Dahej are separate as well as independent units having no common
activities if compared with above mentioned Formulation Units and as
such, the expenses incurred by branches/ other units have not been
allocated to the Technical unit except common expenses incurred by the
Head office which are allocated in proportion to Sales (net) effected by
all the units.
14. derivatives INSTRUMENTS & Unheeded FOREIGN Currency Exposure
a) The nominal amount of derivative contracts entered into by the
company and outstanding as on March 31, 2015 amounts to H2607.90 Lacs
(Previous Year  H3074.96 Lacs). The Category wise break-up is given
below:-
b) Foreign currency exposure that are not hedged by derivatives
instruments as on March 31, 2015 amounts to H6722.36 Lacs (Previous
Year H15060.70 Lacs).
c) Mark to Market Losses provided by the company in earlier year,
reversed during the year amounts to H17.96 Lacs i.e. M to M as on March
31, 2015 stands at H14.68 Lacs (Previous Year- H32.64 Lacs)
Mar 31, 2014
Rights, Preferences and Restrictions attached to Shares
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each shareholder is eligible for one vote per share
held. The Company declares and pays dividends 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. In the event
of liquidation of the company, the equity shareholders are eligible to
receive the remaining assets of the company after distribution of all
preferential amount, in proportion to their shareholding.
During the financial year ended on March 31, 2014, the amount of per
share dividend recognized as distributions to equity shareholders was
Rs. 3.00 (Previous Year Rs. 3.00)
Nature of Security and Terms of Repayment for Secured Borrowing
(i) Term Loans from banks for vehicles have been secured by
hypothecation of vehicles.Further, vehicles loans have been guaranteed
by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and
Mr. Rajesh Aggarwal. These loans are repayable in 36 monthly
installments from the date of the loans along with interest rates
ranging between 10.50% to 12% per annum.
(ii) The Foreign Currency outstanding loan amounting to Rs. 1128.37
Lacs (Previous Year - Rs.1401.31 Lacs) has been secured by the first
charge over Plant and Machineries situated at CH-21, GIDC Industrial
Estate, Dahej Plant (Gujarat). Further, the loan has been guaranteed by
the personal guarantee of the directors- Mr. Hari Chand Aggarwal and
Mr. Rajesh Aggarwal. The outstanding loan is repayable in 14 quarterly
instalments. The interest is to paid on quarterly basis at Libor plus
2.5%. Further, the company has entered into the derivative contract for
hedging of the currency swaps and interest rate swaps.
(iii) The Foreign Currency outstanding loan amounting to Rs. 2059.75
Lacs (Previous Year - Rs. 2545.85 Lacs) has been secured by the
exclusive first charge over assets being financed including Land &
Building and Plant & Machineries situated at CH-21, GIDC Industrial
Estate, Dahej Plant (Gujarat). Further , the loan has been guaranteed
by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and
Mr. Rajesh Aggarwal. The outstanding loan is repayable in 15 quarterly
instalments . The interest is to paid on quarterly basis at Libor plus
3.5%. Further, the company has entered into the derivative contract for
hedging of interest rate swaps.
(iv) The Foreign Currency outstanding loan amounting to Rs. 1205.08
Lacs (Previous Year -NIL) has been secured by the exclusive first
charge over assets being financed including Land & Building and Plant &
Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant
(Gujarat). Further , the loan has been guaranteed by the personal
guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh
Aggarwal. The outstanding loan is repayable in 16 quarterly
instalments. The interest is to paid on quarterly basis at Libor plus
3.00%. Further, the company has entered into the derivative contract
for hedging of the currency swaps and interest rate swaps.
SHORT TERM BORROWINGS
Working Capital Loans (Demand Loan,Cash Credit & Buyers Credits) from
banks are secured by first pari passu charge over present and future
stock & book debts and moveable fixed assets of the company . These
loans are additionally secured by equitable mortgage on pari passu
basis over Lands & Buildings of the company and residential property of
the director at Pitampura Delhi and negative lien on company''s Samba
Unit (J&K) Udhampur Unit (J&K) and office at Azadpur (Delhi). Further,
these loans have been guaranteed by the personal guarantee of the
directors -Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. Further,
the company has entered into the derivative contract for hedging of
buyer''s credit amounting to Rs.621.94 Lacs during the year (P.Y. -
Rs.966.88 Lacs).
EMPLOYEE BENEFITS
A. RETIREMENT BENEFITS
(a) Retirement Benefits in the form of Provident Fund / Family Pension
Fund, which are defined contribution plans, are accounted for on
accrual basis and charged to the Statement of Profit & Loss of the
year.
(b) Retirement Benefits in the form of Leave Encashment, which is
defined benefit plan, is accounted for on cash basis every year and
charged to the Statement of Profit & Loss of the year.
(c) Retirement Benefits in the form of Gratuity, which is define
benefit plan, is determined and accounted for on the basis of an
Actuarial Valuation done by applying the Projected Unit Credit Method.
(d) The Actuarial Gains / Losses arising during
the year are recognized in the Statement of Profit & Loss of the year.
SEGMENT REPORTING
The Company is engaged in the business of Formulation & Manufacture of
Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment
Liabilities have been identified to the segments on the basis of their
relationship to the operating activities of the segment. The Revenue,
Expenses, Assets & Liabilities which are not allocable to Segments,
have been included under "Unallocated Revenue, Expenses, Assets &
Liabilities.
PRIMARY SEGMENT
Based on the following guiding principles given in the Accounting
Standard-17 "Segment Reporting'''' issued by The Institute of Chartered
Accountants of India, the Company''s primary segments are Formulated
Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant
Growth Regulators and Technical Pesticides, which are the basic active
ingredients used for making formulations so that they can be used
directly by the Farmers and/or Consumers:
i) The Nature of the Products.
ii) The Related Risks and Returns.
iii) The Internal Financial Reporting System.
Revenue and Expenses have been accounted for based on the basis of
their relationship to the operating activities of the Segments.
Revenue and Expenses, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "Un-allocable Expenses & Revenue".
Assets and Liabilities, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "Un-allocable Assets / Liabilities''''.
SECONDARY SEGMENT
The Company caters mainly to the need of the Indian Market. The Export
Turnover during the year is less than 10% of the Total Turnover; as
such there is no reportable Geographical Segment.
CONTINGENT LIABILITIES
(Rs. In Lacs)
S. Particulars As at As at
No. March 31, 2014 March 31, 2013
(a) Letter of Credits (FLC & ILC) 13326.63 5185.47
(b) Bank Guarantee 424.57 209.75
(c) Import Bills Accepted with Banks 563.55 294.25
(d) Excise Matter with Appellate
Authority, New Delhi (Period
Covered - March, 2002 to October,2002) 75.67 75.67
(e) Excise Matter with Appellate Authority,
New Delhi (Period Covered - September
2004 to August,2007) 161.72 161.72
(f) Sales Tax Matter with Appellate
Authorities at Asansol (West Bengal) 5.70 5.70
(g) Sales Tax Matter with Appellate
Authorities at Nagpur 15.93 NIL
(h) Sales Tax Matter with Sales Tax
Tribunal, Jammu (J & K) (Period
covered 2009- 2010) 144.22 144.22
(i) Sales Tax Matter with Dy. Comm.
of Sales Tax, Jammu(J & K) (Period
covered 2010-2011) 415.77 -
(J) Sales Tax Matter with Appellate
Authorities (West Bengal) (Period
Covered 2010-11) 12.22 -
(Except above no other contingent liabilities are outstanding as
explained and certified by the Management of the Company)
With respect to Contingent Liabilities reported at (d) to (j) above,
the Management has taken an opinion from the Legal Advisors /
Professionals engaged by them and is very much hopeful that the appeals
will be decided in the favour of the Company and as such, no provision
thereof has been made.
* Estimated amount of contract remaining to be executed on capital
accounts (net of advances) & not provided for Rs. 950 Lacs (Previous
year Rs. NIL)
* In the opinion of the Board of Directors of the Company, the Current
Assets, Loans and Advances have the value at least equal to the figures
stated in the Balance Sheet on realization in the ordinary course of
business and provision for all determinable/known liabilities have been
made in the Accounts when reliable estimates can be made of the amount
of obligation.
* The Balances shown under the head Sundry Debtors and Sundry Creditors
are subject to confirmation and reconciliations. However, the Company
has initiated the process of obtaining confirmations from Sundry
Debtors & Creditors.
* The Company has valued inventories as required under AS-2 issued by
The Institute of Chartered Accountants of India.
* The total amount payable to Small Scale Industries (SSI) outstanding
for more than 30 days as at March 31, 2014 is Rs. 1312.75 Lacs
(Previous Year - Rs. 856.70 Lacs).
* The Company has not received any confirmation from suppliers
regarding their status of registration under the Micro, Small & Medium
Enterprises Development Act, 2006 which came into effect from October
2, 2006 and hence disclosure required under the said act have not been
given.
* The Previous Year Figures have been reworked , regrouped ,
rearranged, reclassified and / or re-casted wherever deemed necessary
to make them comparable with those of the current year''s figures.
* All the common expenses incurred during the year in respect of
Formulation (Products) Units at Chopanki, Samba, Udhampur and Dahej
have been allocated at the year end in the proportion to sales (net)
effected during the year. The Technical (Products) Units at Chopanki &
Dahej are separate as well as independent units having no common
activities if compared with above mentioned Formulation Units and as
such, the expenses incurred by Branches/ Other Units have not been
allocated to the Technical Unit except common expenses incurred by the
Head Office which are allocated in proportion to Sales (Net) effected
by all the Units.
* The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 08/2014 dated April 4, 2014 has granted a general
exemption from compliance with Section 212 of the Companies Act, 1956
subject to fulfillment of conditions stipulated in the circular. The
Company has satisfied the conditions stipulated in the circular and
hence is entitled to the exemption.
Mar 31, 2013
1. CORPORATE INFORMATION
Insecticides (India) Limited (The Company) is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two Stock Exchanges (i.e.
Bombay Stock Exchange Limited and National Stock Exchange Limited) in
India. The Company is engaged in the manufacturing activities of Agro
Chemicals, Pesticides and Technical Products for agriculture purposes.
The Company caters to both domestic and international markets.
2. EARNING PER SHARE (EPS)
The Company reports basic & diluted earnings per equity share in
accordance with Accounting Standard  20 issued by The Institute of
Chartered Accountants of India. The same is computed by dividing the
net profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
The earning per share is calculated as under:
3. EMPLOYEE BENEFITS
A. RETIREMENT BENEFITS :
(a) Retirement benefits in the form of Provident Fund / Family Pension
Fund, which are defined contribution plans, are accounted for on
accrual basis and charged to the Statement of Profit & Loss of the
year.
(b) Retirement benefits in the form of Leave Encashment, which is
defined benefit plan, is accounted for on cash basis every year and
charged to the Statement of Profit & Loss of the year.
(c) Retirement benefits in the form of Gratuity, which is define
benefit plan, is determined and accounted for on the basis an actuarial
valuation done by applying the Projected Unit Credit Method.
(d) The Actuarial Gains / Losses arising during the year are recognized
in the Statement of Profit & Loss of the year.
The following tables summarize the components of net benefit expense
recognized in the Statement of Profit & Loss and the funded status and
amounts recognized in the Balance Sheet for the Gratuity Plan:
Investment Details of Plan Assets: 100% with Life Insurance Corporation
of India
B. Short Term Employees Benefits are recognized as an expense in the
Statement Profit & Loss of year in which the related service is
rendered.
4. SEGMENT REPORTING
The Company is engaged in the business of Formulation & Manufacture of
Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment
Liabilities have been identified to the segments on the basis of their
relationship to the operating activities of the segment. The Revenue,
Expenses, Assets & Liabilities which are not allocable to segments,
have been included under "Unallocated Revenue, Expenses, Assets &
Liabilities.
A. PRIMARY SEGMENT
Based on the following guiding principles given in the Accounting
StandardÂ17 "Segment ReportingÂÂ issued by The Institute of Chartered
Accountants of India, the CompanyÂs primary segments are Formulated
Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant
Growth Regulators and Technical Pesticides, which are the basic active
ingredients used for making formulations so that they can be used
directly by the Farmers and/or Consumers:
i) The nature of the products.
ii) The related risks and returns.
iii) The internal financial reporting system.
Revenue and Expenses have been accounted for based on the basis of
their relationship to the operating activities of the segments.
Revenue and Expenses, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "UnÂallocable Expenses & RevenueÂÂ.
Assets and Liabilities, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "UnÂallocable Assets / LiabilitiesÂÂ.
B. SECONDARY SEGMENT
The Company caters mainly to the need of the Indian Market. The Export
Turnover during the year is less than 10 % of the Total Turnover; as
such there is no reportable Geographical Segment.
5. RELATED PARTY DISCLOSURES
In compliance to AS 18 issued by The Institute of Chartered Accountants
of India, the disclosure of transactions with Related Parties as
defined in Accounting Standard (Excluding Reimbursements) are given
herein below:
(I) RELATED PARTIES
A. Key Management Personnel & Directors :
1. Mr. Hari Chand Aggarwal
2. Mr. Rajesh Aggarwal
3. Mr. Sanjeev Bansal (till April 30, 2013)
4. Mrs. Nikunj Aggarwal (from May 2, 2013)
5. Mr. Navneet Goel
6. Mr. Rajender Pershad Gupta (till Sep. 25, 2012)
7. Mr. Vrijesh Kumar Gupta (from Sep. 25, 2012)
8. Mr. Gopal Chandra Agarwal
9. Mr. Navin Shah 10. Mr. Anil Kumar Singh
B. Other related parties where common control exists and with whom the
company had transactions during the year:
1. Paras Agro Industries Associate Firm
2. ISEC Organics Limited Associate Company
3. Evergreen Mineral Industries Associate Firm
(Except above, there is no other related persons / parties with whom
transaction took place during the year as confirmed and certified by
the Management of the Company)
6. Remittance in Foreign Currency on account of Dividend : NIL
7. Estimated amount of Contract remaining to be executed on Capital
Accounts (Net of Advances) & not provided for Rs. Nil (Previous Year Rs.
964 Lacs).
8. In the opinion of the Board of Directors of the Company, the
Current Assets, Loans and Advances have the value at least equal to the
figures stated in the Balance Sheet on realization in the ordinary
course of business and provision for all determinable/known liabilities
have been made in the accounts when reliable estimates can be made of
the amount of obligation.
9. The Balances shown under the head Sundry Debtors and Sundry
Creditors are subject to confirmation and reconciliations. However, the
Company has initiated the process of obtaining confirmations from
Sundry Debtors & Creditors.
10. The Company has valued inventories as required under AS-2 issued
by The Institute of Chartered Accountants of India except the taxes /
duties recoverable has been included in the valuation of stocks as per
the past practice.
11. The total amount payable to Small Scale Industries (SSI)
outstanding for more than 30 days as at March 31, 2013 is Rs. 856.70 Lacs
(Previous Year- Rs. 1276.48 Lacs).
12. The Company has not received any confirmation from suppliers
regarding their status of registration under the Micro, Small & Medium
Enterprises Development Act, 2006 which came into effect from October
2, 2006 and hence disclosure required under the said act have not been
given.
13. The Previous Year Figures have been reworked , regrouped ,
rearranged, reclassified and / or re-casted wherever deemed necessary
to make them comparable with those of the current year''s figures.
14. All the common expenses incurred during the year in respect of
Formulation (Products) units at Chopanki, Samba, Udhampur and Dahej
have been allocated at the year end in the proportion to Sales (Net)
effected during the year. The Technical (Products) Units at Chopanki &
Dahej are separate as well as independent units having no common
activities if compared with above mentioned Formulation Units and as
such, the expenses incurred by branches/ other units have not been
allocated to the Technical Unit except common expenses incurred by the
Head Office which are allocated in proportion to Sales (Net) effected
by all the Units.
15. DERIVATIVES INSTRUMENTS & UNHEDGED FOREIGN CURRENCY EXPOSURE
(a) The nominal amount of derivative contracts entered into by the
company and outstanding as on March 31, 2013 amount to Rs.1431.80 Lacs
(Previous Year Rs. 1559.95 Lacs). The Category wise break-up is given
below:-
(b) Foreign currency exposure that are not hedged by derivatives
instruments as on March 31, 2013 amount to Rs. 9474.54 Lacs (Previous
Year Rs.10779.98 Lacs).
(c) Mark to Market Losses provided for by the company during the year
amount to Rs. 0.92 Lacs (Previous Year Rs. 56.12 Lacs).
Mar 31, 2012
1. CORPORATE INFORMATION
Insecticides (India) Limited (The Company) is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two Stock Exchanges (i.e.
Bombay Stock Exchange Limited and National Stock Exchange Limited) in
India. The Company is engaged in the manufacturing activities of Agro
Chemicals, Pesticides and Technical Products for agriculture purposes.
The Company caters to both domestic and international markets.
1(a) Rights, Preferences and Restrictions attached to Shares
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each shareholder is eligible for one vote per share
held. The Company declares and pays dividends 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. In the event
of liquidation of the company, the equity shareholders are eligible to
receive the remaining assets of the company after distribution of all
preferential amount, in proportion to their shareholding.
During the financial year ended on March 31, 2012, the amount of per
share dividend recognized as distributions to equity shareholders was
Rs.2.50 (Previous Year Rs.2.50)
(a) Nature of Security and terms of repayment for secured borrowing
(i) Term Loans from banks for vehicles have been secured by
hypothecation of vehicles. Further, vehicles loans have been guaranteed
by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and
Mr. Rajesh Aggarwal. These loans are repayable in 36 monthly
installments from the date of the loans along with interest rates
ranging between 12 to 14% per annum.
(ii) Term Loan from banks have been secured by exclusive charge over
Plant and Machineries situated at Dahej Plant (Gujarat). Further, term
loans have been guaranteed by the personal guarantee of the directors-
Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The loan are repayable
in 8 quarterly installments starting from September 30, 2010 along with
interest rates approx at 12% per annum.
(iii) The Foreign Currency Loan amounting to Rs.1533.72 Lacs (Previous
Year -Nil) has been secured by the first charge over Plant and
Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant
(Gujarat). Further, the loan has been guaranteed by the personal
guarantee of the directors - Mr. Hari Chand Aggarwal and Mr. Rajesh
Aggarwal. The loan is repayable in 16 quarterly installments starting
from November 02, 2012. The interest is to paid on quarterly basis at
Libor plus 2.5%. Further, the company has entered into the derivative
contract for hedging of the currency swaps and interest rate swaps.
(iv) The Foreign Currency Loan amounting to Rs.2569.73 Lacs (Previous
Year -Nil) has been secured by the exclusive first charge over assets
being financed including Land & Building and Plant & Machineries
situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujarat).
Further , the loan has been guaranteed by the personal guarantee of the
directors - Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The loan
is repayable in 16 quarterly installments starting from March 29, 2013.
The interest is to paid on quarterly basis at Libor plus 3.5%. Further,
the Company has entered into the derivative contract for hedging of
interest rate swaps.
(b) Terms of repayment for unsecured borrowing
The loan from related parties is repayable after 24 months from the
date of loan and interest is payable on yearly basis at 12% per annum.
Working Capital Loans (Demand Loan, Cash Credit & Buyers Credits) from
banks are secured by first pari passu charge over present and future
stock & book debts and moveable fixed assets of the Company.
These Loans are additionally secured by equitable mortgage on pari
passu basis over Lands & Buildings situated at Chopanki Unit
(Rajasthan), Samba Unit (J&K), Udhampur Unit (J&K) and residential
property in the name of director at Pitampura(Delhi) and negative lien
on Company's office at Azadpur (Delhi). Further, these loans have been
guaranteed by the personal guarantee of the directors -Mr. Hari Chand
Aggarwal and Mr. Rajesh Aggarwal.
2. EARNING PER SHARE (EPS)
The Company reports basic & diluted earnings per equity share in
accordance with Accounting Standard- 20 issued by The Institute of
Chartered Accountants of India. The same is computed by dividing the
net profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
The Earning Per Share is calculated as under:
3. EMPLOYEE BENEFITS
A. RETIREMENT BENEFITS
(a) Retirement Benefits in the form of Provident Fund / Family Pension
Fund, which are defined contribution plans, are accounted for on
accrual basis and charged to the Statement of Profit & Loss of the
year.
(b) Retirement Benefits in the form of Leave Encashment, which is
defined benefit plan, is accounted for on cash basis every year and
charged to the Statement of Profit & Loss of the year.
(c) Retirement Benefits in the form of Gratuity, which is define
benefit plan, is determined and accounted for on the basis an actuarial
valuation done by applying the Projected Unit Credit Method.
(d) The Actuarial Gains/ Losses arising during the year are recognized
in the Statement of Profit & Loss of the year.
The following tables summarize the components of net benefit expense
recognized in the Statement of Profit & Loss and the funded status and
amounts recognized in the Balance Sheet for the Gratuity Plan:
Investment Details of Plan Assets: 100% with Life Insurance Corporation
of India
B. Short Term Employees Benefits are recognized as an expense in the
Statement of Profit & Loss for the year in which the related service is
rendered.
4. SEGMENT REPORTING
The Company is engaged in the business of Formulation & Manufacture of
Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment
Liabilities have been identified to the segments on the basis of their
relationship to the operating activities of the segment. The Revenue,
Expenses, Assets & Liabilities which are not allocable to segments,
have been included under "Unallocated Revenue, Expenses, Assets &
Liabilities"
A. PRIMARY SEGMENT
Based on the following guiding principles given in the Accounting
Standard-17 "Segment Reporting'' issued by The Institute of Chartered
Accountants of India, the Company's primary segments are Formulated
Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant
Growth Regulators and Technical Pesticides, which are the basic active
ingredients used for making formulations so that they can be used
directly by the Farmers and/or Consumers:
i) The Nature of the Products.
ii) The Related Risks and Returns.
iii) The Internal Financial Reporting System.
Revenue and Expenses have been accounted for based on the basis of
their relationship to the operating activities of the segments.
Revenue and Expenses, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "Un-allocable Expenses'.
Assets and Liabilities, which relates to the enterprise as a whole and
are not allocable to the segments on a reasonable basis, have been
included in under "Un-allocable Assets / Liabilities''.
B. SECONDARY SEGMENT
The Company caters mainly to the need of the Indian Market. The Export
Turnover during the year is less than 10 % of the total turnover; as
such there is no reportable Geographical Segment.
5. RELATED PARTY DISCLOSURES
In compliance to AS 18 issued by The Institute of Chartered Accountants
of India, the Disclosure of transactions with Related Parties as
defined in Accounting Standard (Excluding reimbursements) are given
herein below:
(i) RELATED PARTIES
A. Key Management Personnel & Directors
1. Mr. Hari Chand Aggarwal
2. Mr. Rajesh Aggarwal
3. Mr. Sanjeev Bansal
4. Mr. Navneet Goel
5. Mr. Gopal Chandra Agarwal
6. Mr. Rajender Pershad Gupta
7. Mr. Navin Shah
8. Mr. Anil Kumar Singh
B. Other related parties where common control exists and with whom the
company had transactions during the year
1. Paras Agro Industries Associate Firm
2. ISEC Organics Ltd. Associate Company
3. Evergreen Mineral Industries Associate Firm
(Except above, there is no other related persons/ parties with whom
transaction took place during the year as confirmed and certified by
the Management of the Company)
6. The Company has suffered a loss of Rs.37.75 Lacs due to loss of
inventory and fixed assets burnt in fire occurred in Dahej Plant on
19-03-2012. This loss is fully recoverable from the insurer and the
company has already lodged the claim with the insurance company. Due to
small incidence of fire, there is no disturbance in the operations of
the company. The insurance claim has not been settled till date and the
company has shown said loss recoverable from the insurance company in
financial statement for year under consideration. The loss if any due
to any deduction / disallowance of claim by the insurer shall be
adjusted in the financial statement during year in which claim will be
finally settled.
7. CONTINGENT LIABILITIES
(Rs. In Lacs)
S. Particulars As at As at
31.03.2012 31.03.2011
(a) Letter of Credits 4681.03 2871.88
(b) Bank Guarantee 197.35 NIL
(c) Import Bills Accepted with Banks 393.43 NIL
(d) Excise Matter with Appellate Authority,
New Delhi 75.67 75.67
(Period Covered - March, 2002 to October, 2002)
(e) Excise Matter with Appellate Authority,
New Delhi 161.72 161.72
(Period Covered - September, 2004 to August, 2007)
(f) Sales Tax Matter with Appellate Authorities
at Asansol 5.70 NIL
(West Bengal)
(g) Sales Tax Matter with Appellate Authorities
at Ghaziabad 9.64 NIL
(Uttar Pradesh)
(Except above no other contingent liabilities are outstanding as
explained and certified by the Management of the Company)
With respect to Contingent Liabilities reported at (d) to (g) above,
the management has taken an opinion from the legal advisors/
professional engaged by them and is very much hopeful that the appeals
will be decided in the favour of the company and as such, no provision
thereof has been made.
8. Estimated amount of contract remaining to be executed on capital
accounts (net of advances) & not provided for Rs.5703465 Lacs (Previous
year Rs.964 Lacs)
9. In the opinion of the Board of Directors of the Company, the
current assets, loans and advances have the value at least equal to the
figures stated in the Balance Sheet on realization in the ordinary
course of business and provision for all determinable/known liabilities
have been made in the Accounts when reliable estimates can be made of
the amount of obligation.
10. The Balances shown under the head Sundry Debtors and Sundry
Creditors are subject to confirmation and reconciliations. However, the
Company has initiated the process of obtaining confirmations from
Sundry Debtors & Creditors.
11. The Company has valued inventories as required under AS-2 issued
by The Institute of Chartered Accountants of India except the taxes/
duties recoverable has been included in the valuation of stocks as per
the past practice.
12. The total amount payable to Small Scale Industries (SSI)
outstanding for more than 30 days as at March 31, 2012 is Rs.1276.48 Lacs
( Previous Year- Rs.188.75 Lacs).
13. The Company has not received any confirmation from suppliers
regarding their status of registration under the Micro, Small & Medium
Enterprises Development Act, 2006 which came into effect from October
02, 2006 and hence disclosure required under the said act have not been
given.
14. The Previous Year Figures have been reworked , regrouped ,
rearranged, reclassified and / or re- casted wherever deemed necessary
to make them comparable with those of the Current Year's Figures.
15. All the common expenses incurred during the year in respect of
Formulation (Products) Units at Chopanki, Samba, Udhampur and Dahej
have been allocated at the year end in the proportion to Sales (Net)
effected during the year. The Technical (Products) Unit at Chopanki is
a separate as well as independent unit having no common activities if
compared with above mentioned Formulation Units and as such the
expenses incurred by branches/ other units have not been allocated to
the Technical Unit except common expenses incurred by the Head Office
which are allocated in proportion to Sales (Net) effected by all the
Units.
(b) Foreign Currency exposure that are not hedged by derivatives
instruments as on March 31, 2012 amount to Rs.10779.98 Lacs (Previous
Year Rs.3581.40 Lacs)
(c) Mark to Market Losses provided for by the company as on March 31,
2012 amount to Rs.56.12 lacs (Previous Year-Nil)
Mar 31, 2011
1. CONTINGENT LIABILITIES
Sl. Particular Current Year Previous Year
No. (Rs in Lacs) (Rs in Lacs)
(a) Letter of Credits 2871.88 2827.41
(b) Bank Guarantee NIL 18.46
(c) Excise matter with Appellate
Authority, New Delhi (Period 75.67 75.67
C overed à March, 2002 to
October, 2002)
(d) Excise matter with Appellate 16.72 161.72
Authority, New Delhi (Period
Covered à September, 2004 to
August, 2007)
(Except above no contingent liabilities are outstanding as explained
and Certified by the Management of the Company )
With respect to contingent liabilities reported at 1 (c) & (d) above,
the management has taken an opinion from the legal advisors /
professional engaged by them and is very much hopeful that the appeals
will be decided in the favour of the Company and as such, no provision
thereof has been made.
2. The Previous Year Figures have been reworked , regrouped ,
rearranged, reclassified and / or recasted wherever deemed necessary to
make them comparable with those of the Current Year's Figures.
3. In the opinion of the Board of Directors of the Company, the
current assets, loans and advances have the value at least equal to the
figures stated in the Balance Sheet on realization in the ordinary
course of business and provision for all determinable/ known
liabilities have been made in the Accounts when reliable estimates can
be made of the amount of obligation.
4. The Company has valued inventories as required under AS-2 issued by
The Institute of Chartered Accountants of India except the taxes /
duties recoverable has been included in the valuation of stocks as per
the past practice.
5. The prior period expenses debited to profit & loss account during
the year amounting to Rs. 3.00 lacs (Previous Year Rs. 2.71 lacs)
6. The total amount payable to Small Scale Industries (SSI)
outstanding for more than 30 days as at March 31, 2011 is Rs. 188.75
lacs (Previous Year- Rs. 256.36 lacs).
7. The Company has not received any confirmation from suppliers
regarding their status of registration under the Micro, Small & Medium
Enterprises Development Act, 2006 which came into effect from October
2, 2006 and hence disclosure required under the said act have not been
given.
8. Estimated amount of contract remaining to be executed on capital
accounts (net of advances) and not provided for Rs. 964 lacs (Previous
year Rs. 1132 lacs).
9. In compliance to AS 18 issued by The Institute of Chartered
Accountants of India, the Disclosure of Transactions with Related
Parties as defined in Accounting Standard (Excluding Reimbursements)
are given herein below:
RELATED PARTIES
A. Key Management Personnel & Directors :
1. Sh. Hari Chand Aggarwal 2. Sh. Rajesh Aggarwal
3. Sh. Sanjeev Bansal 4. Sh. Navneet Goel
5. Sh. Gopal Chandra Agarwal 6. Sh. Rajender Pershad Gupta
7. Sh. Navin Shah 8. Sh. Anil Kumar Singh
B. Other related parties where common control exists and with whom the
company had transactions during the year:
1. Paras Agro Industries Associate Firm
2. ISEC Organics Limited Associate Company
3. Evergreen Mineral Industries Associate Firm
4. Sabarmati Agri Chem Associate Firm
10. The Balances shown under the head Sundry Debtors and Sundry
Creditors are subject to confirmation and reconciliations. However,
the Company has initiated the process of obtaining confirmations from
sundry debtors & creditors.
11. Remittance in Foreign Currency on account of Dividend : NIl
12. EMPLOYEE BENEFITS
A. RETIREMENT BENEFITS
(a) Retirement Benefits in the form of Provident Fund / Family Pension
Fund , which are defined contribution plans, are accounted for on
accrual basis and charged to the Profit & Loss Account of the year.
(b) Retirement Benefits in the form of Leave Encashment, which is
defined benefit plan, is accounted for on cash basis every year and
charged to the Profit & Loss Account of the year.
(c) Retirement Benefits in the form of Gratuity, which is defined
benefit plan, is determined and accounted for on the basis of an
actuarial valuation done by applying the Projected Unit Credit Method.
(d) The Actuarial Gains / Losses arising during the year are recognized
in the Profit & Loss Account of the year.
13. CHANGE IN ACCOUNTING POLICY
During the current year, the Company has started considering the
valuation of inventories of stores & spares and fuel on the basis of
weighted average cost method. Up to the previous year ended on March
31, 2010, the Company has been treating stores & spares and fuel
purchased as consumed and no closing stock at the end of year was taken
and considered in the final accounts. Due to the above change, the
inventories at the end year has increased by a sum of ` 3.34 lacs and
consequently the profit of the company for the current year has
increased by a sum of ` 3.34 lacs However, this has no material impact
on the overall profits of the company and therefore not disclosed as
exceptional item
14. Additional information pursuant to provision under paragraph 3,4C
and 4D of the Part-II of Schedule VI of the Companies Act, 1956 (As
Certified by the Management)
VII. The Ministry of Corporate Affairs, Government of India vide its
General Notification No. S.O.301 (E) dated 8th February, 2011 issued
under Section 211(3) of the Companies Act, 1956 has exempted certain
class of companies from disclosing certaininformation in their profit &
loss account. The Company being a ÃManufacturing Company' is entitled
to exemption. Accordingly, disclosures required by paragraph 3(i) (a)
& 3(ii) (a) of Part II of Schedule VI of the Companies Act, 1956 have
not been given by the Company in respect of those goods which form less
than 10% of total value of turnover, purchase, consumption of raw
material etc.
Mar 31, 2010
1. CONTINGENT LIABILITIES/ ASSETS
(a) Letter of credits- Rs.2827.41 Lacs (Previous year - Rs.3126.18
Lacs)
(b) Excise matter with Appellate Authority, New Delhi - Rs.75.67 Lacs
(Previous year - Rs.75.67 Lacs) (Period Covered - March 2002 to
October 2002)
(c) Bank Guarantee- Rs.18.46 Lacs (Previous year - Rs.21.26 Lacs).
(d) Excise Matter with Appellate Authority, New Delhi - Rs.161.72 Lacs
(Previous Year - Rs.161.72 Lacs) (Period Covered September 2004 to
August 2007)
(e) Service Tax Matter with Appellate Authority, Gurgaon - for the
period from April 2006 to September 2006 - Rs.41.94 (Previous Year -
Rs. NIL)
(Except above no contingent liabilities are outstanding as explained
and certified by the Management of the Company) With respect to
contingent liabilities reported at 1(b), (d) & (e) above, the
management has taken an opinion from the legal advisors / professional
engaged by them and is very much hopeful that the appeals will be
decided in the favour of the Company and as such, no provision thereof
has been made.
2. The Previous Year Figures have been reworked , regrouped ,
rearranged, reclassified and / or recasted wherever deemed neces- sary
to make them comparable with those of the current years figures.
3. In the opinion of the Board of Directors of the Company, the
current assets, loans and advances have the value at least equal to the
figures stated in the Balance Sheet on realization in the ordinary
course of business and provision for all determinable/ known
liabilities have been made in the Accounts when reliable estimates can
be made of the amount of obligation.
4. The Company has valued inventories as required under AS-2 issued by
The Institute of Chartered Accountants of India except the taxes /
duties recoverable has been included in the valuation of stocks.
5. The prior period expenses debited to profit & loss account during
the year amounting to Rs.2.71 Lacs (Previous year Rs.1.84 Lacs)
6. The total amount payable to Small Scale Industries (SSI)
outstanding for more than 30 days as at March 31, 2010 is Rs.256.36
Lacs ( Previous Year- Rs.300.72 Lacs).
7. The Company has not received any confirmation from suppliers
regarding their status of registration under the Micro, Small & Medium
Enterprises Development Act, 2006 which came into effect from October
2, 2006 and hence disclosure required under the said act have not been
given.
8. Estimated amount of Contract remaining to be executed on capital
accounts (net of advances) and not provided for Rs.1132 Lacs (Previous
year Rs.1400 Lacs ).
9. In compliance to AS 18 issued by The Institute of Chartered
Accountants of India, the Disclosure of transactions with Related
Parties as defined in Accounting Standard (Excluding Reimbursements)
are given herein below:
10. Balances of Sundry Debtors and Sundry Creditors are subject to
reconciliations.
11. EARNING PER SHARE: The Company reports basic & diluted earnings
per equity share in accordance with Accounting Standard - 20 issued by
The Institute of Chartered Accountants of India. The same is computed
by dividing the net profit attributable to equity shareholders for the
year, by the weighted average number of equity shares outstanding
during the year. The Earning Per Share is calculated as
12. Remittance in Foreign Currency on account of Dividend : NIL
13. The scheme of amalgamation ("Scheme") for merging the wholly owned
subsidiary company M/s Advance Crop Solutions Ltd. (ACSL) with the
Company under Section 391 to 394 of the Companies Act, 1956 sanctioned
by The Honble Delhi High Court, New Delhi vide their order dated
January 19, 2010 has come into effect on February 28, 2010 from the
appointed date of April 1, 2009. On the scheme becoming effective,
Advance Crop Solutions Ltd. stands dissolved without winding up.
Pursuant to the scheme:
The amalgamation of erstwhile ACSL with the Company has become
accounted for under the "Pooling of Interest Method" in the manner
specified in the Scheme and Complies with the Accounting Standard
notified u/s 211(3C) of the Companies Act, 1956 and the following
balances as at April 1, 2009 of erstwhile ACSL have been adjusted with
the profit & loss account forming part of reserves of the Company:
The transactions including Income & Expenses for the period from April
1, 2009 to February 28, 2010 when the business was being run and
managed in trust by erstwhile ACSL have also been incorporated in these
accounts which do not have any material impact on the profit for the
year and net assets at the balance sheet date.
Moreover, as per order of Scheme of Amalgamation sanctioned by The
Honble Delhi High Court, New Delhi, the Goodwill has been set off with
Share Premium Account.
14. EMPLOYEE BENEFITS
A. RETIREMENT BENEFITS :
A. Retirement benefits in the form of Provident Fund/Family Pension
Fund, which are defined contribution plans, are accounted on accrual
basis and charged to the Profit & Loss Account of the year.
B. Retirement benefits in the form of Leave Encashment, which is
defined benefit plan, is accounted for on cash basis every year and
charge
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