Mar 31, 2018
1. CORPORATE INFORMATION
Jocil Limited (hereinafter referred to as Jocil) is engaged in the manufacture of Stearic Acid, Fatty Acids, Soap Noodles, Toilet Soap, Glycerine and Industrial Oxygen. The manufacturing facilities of Jocil and its Registered Office are located at Dokiparru Village, Medikondur Mandal, Guntur District, Andhra Pradesh. It is also having a 6 MW Biomass Cogeneration Captive Power Plant to meet the power requirements of the manufacturing activity and surplus power is sold to AP Transco. Jocil is also having 4 Wind Energy Generators in the State of Tamil Nadu and the power generated is sold to Tamil Nadu Generation and Distribution Corporation Limited. Jocil is a subsidiary to The Andhra Sugars Limited (ASL), Tanuku, W.G.District, Andhra Pradesh. As on 31 March 2018 ASL owned 55.02% of the Jocilâs equity share capital.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) under historical cost convention on accrual basis of accounting except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013(âthe Actâ) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules there after.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
b) USE OF ESTIMATES AND JUDGEMENTS
The preparation of the companyâs financial statements in conformity requires management of the Company to make judgments, estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses and accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
The following are the critical judgements and estimates that have been made in the process of applying the companyâs accounting policies that have the most significant effect on the amounts recognized in the financial statements.
i) Depreciation / amortisation and useful lives of property plant and equipment and intangible assets:
Property, plant and equipment and intangible assets are depreciated/amortised based on the useful lives specified under schedule II of Companies Act, 2013. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/ amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Companyâs historical experience with similar assets and take into account anticipated technological changes. The depreciation/amortisation for future periods is revised if there are significant changes from previous estimates.
ii) Recoverability of trade receivables:
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, past history of receivables, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
iii) Fair value measurement of financial instruments:
Some of the Companyâs assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or liability, the Company uses market-observable data to the extent available. Where Level 1 inputs are not available, the fair value is measured using valuation techniques, including the discounted cash flow model, which involves various judgments and assumptions. The Company also engages third party qualified valuers to perform the valuation in certain cases. The appropriateness of valuation techniques and inputs to the valuation model are reviewed by the Management.
iv) Provisions:
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
v) Impairment of non-financial assets:
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or Cash Generating Units (CGUâs) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transaction are taken into account, if no such transactions can be identified, an appropriate valuation model is used.
vi) Impairment of financial assets:
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
vii) Income Taxes:
The Companyâs tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions.
viii) Defined benefit obligations:
The Company uses actuarial assumptions viz., discount rate, mortality rates, expected rate of return on plan assets, salary escalation rate etc., to determine such employee benefit obligations.
ix) Other estimates:
The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of collection of accounts receivable by analysing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.
The judgments, estimates and underlying assumptions are made with the managementâs best knowledge of the business environment and are reviewed on an on going basis. Accounting estimates could change from period to period. Actual results could differ from these estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
III) Standards Issued but not Effective :
On 28 March 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from 01 April 2018.
a) Issue of Ind AS 115 - Revenue from Contracts with Customers
Ind AS 115 will supersede the current revenue recognition standard Ind AS-18 Revenue, Ind AS 11 -Construction Contracts and the related interpretations. Ind AS-115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.
b) Amendment to Existing issued Ind AS
The MCA has also carried out amendments in some of the existing standards but application of said standards are not expected to have any significant impact on the Companyâs Financial Statements.
Rights, Preferences and restrictions attached to Equity shares
The Company has only one class of Equity shares having a face value of Rs.10/- each. Each holder of equity share is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to approval of share holders in the Annual General Meeting, except in the case of interim dividend. In the event of liquidation of Company, the holders of equity share will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the share holders.
Out of total equity shaes issued and subscribed, 48,86,500 shares are held by holding company The Andhra Sugars Limited, Tanuku.
No bonus shares were issued out of last five financial years.
None of the shares were issued pursuant to a contract without payment being received in cash.
Dividend :The board of Directors at its meeting held on 29 May 2018 have recommended a dividend of Rs.2 each per share of face value of Rs.10 each for the financial year ended 31 March 2018. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence not recognised as a liability.
Nature of reserves:
a) Capital Reserve : Capital reserve represents incentive given by the government in the year 1995 for furtherance of industry.
b) Securities premium : Securities premium represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of Companies Act, 2013.
c) General reserve : The general reserve is created by way of tranfer of part of the profits before declaring dividend pursuant to the provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
d) Retained earnings : Retained earnings are the profits that the company has earned till date less transfers to general reserves and dividends paid to share holders.
Based on, and to the extent of information received from the suppliers with regard to their status under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), on which the auditors have relied, the disclosure requirements with regard to the payments made/due to Micro, Small and Medium Enterprises are given below:
Note:
a) Production of Fatty Acids includes 9,057 MT (Previous year 13,621 MT) utilized for captive consumption at Soap Plant and 614 MT (Previous year - 2,976 MT) processed on behalf of others.
b) Production of Glycerine includes 244 MT (Previous year 290 MT) consumed for captive consumption at Soap Plant.
c) Production of Industrial Oxygen includes captive consumption of 1841 cubic meters (Previous year 2,940 cu. mtrs).
d) Power Generation includes 1,53,10,866 units (Previous year 1,56,03,238 units) utilized for captive consumption.
Note :
a. The Company has considered business segment as the primary segment for disclosure. The products included in each of the reported domestic business segments are
- Chemicals - Fatty acids
- Soap - Toilet soap and Soap products
- Power - Power generated by Biomass Power Plant and Wind Energy Generators (WEGs)
b. Segment revenue relating to each of the above domestic business segments includes income from processing on behalf of others wherever applicable.
c. Identification of segments:
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Operating segments have been identified considering the following:
- the nature of products and services
- the differing risks and returns
- the organization structure and
- the internal financing reporting systems
d. The Company predominantly operates in Indian market and has no production facilities or any significant sales outside India. Hence there are no separate reportable geographical segments.
e. Inter segment transfers are priced at market related rates.
3. Foreign exchange earnings on exports during the year calculated on FOB basis Rs.28,95,34,372 (Previous year Rs. 61,28,74,150).
4. RELATED PARTY DISCLOSURES
a. List of related parties and description of relationship:
1. Holding Company : The Andhra Sugars Ltd.
2. Key Managerial Personnel : J. Murali Mohan, Managing Director
3. a. Relatives of Key Managerial Personnel
J. Ganga Bhavani Mother
J. Sunita Mohan Wife
J. Namrata Daughter
V. Indira Sister
J. Murali Mohan HUF
Sensitivity Analysis
Discount Rate, Salary esclation rate and withdrawal Rate are significant acturial assumptions. The change in the Present Value of Defined Benefit Obligation for a change of 100 basis points from the assumed assumption is given below.
The Company has disclosed financial instruments such as cash and cash equivalents, trade receivables, trade payables and Short Term Borrowings at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short-term nature.
Calculation of fair values
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31 March 2017.
Financial assets and liabilities measured at fair value as at Balance Sheet date
The fair values of investments in mutual funds is based on the net asset value [âNAVâ] as stated by issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual funds and the price at which issuers will redeem such units from the investors.
5. FAIR VALUE HIERARCHY
The fair value of financial instruments as referred to above note have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identified assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements]
The categories used are as follows:
Level 1: Quoted prices for identified instruments in an active market.
Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and Level 3: Inputs which are not based on observable market data.
This note provides information about how the Company determines fair values of various financial assets and financial liabilities. Fair value of the Companyâs financial assets and financial liabilities are measured at fair value on a recurring basis. Some of the Companyâs financial assets are measured at the fair value at the end of each reporting period.
Note: The fair value of trade receivables, trade payables, loans and other current financial assets and liabilities is considered to be equal to the carrying amount of these items due to their short-term nature.
6. FINANCIAL RISK MANAGEMENT
The Companyâs business activities are exposed to a variety of financial risks, namely liquidity risk, credit risk and foreign currency risk. The Companyâs senior management has the overall responsibility for establishing and governing the Companyâs risk management framework. The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also planned before the Board of Directors of the Company.
A. Credit risk
Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligation. To manage this, the company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of the account receivables. Individual risk limits are set accordingly.
Trade receivables
Concentration of credit risk with respect to trade receivables are limited, due to Companyâs customer base being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis. Historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a single class of financial assets.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks and money market liquid mutual funds.
The Companyâs maximum exposure of credit risk as at March 31, 2018, and March 31, 2017 is the carrying value of each class of financial assets.
B. Foreign currency risk management
The Company is subject to the risk that changes in foreign currency values impact the Companyâs export revenues and import of raw materials. The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollars.
The Company manages currency exposures within prescribed limits. The aim of the Companyâs approach to management of currency risk is to leave the Company with no material residual risk.
The following table presents foreign currency risk from non-derivative financial instruments as of 31 March 2018 and 31 March 2017
Foreign currency sensitivity analysis
A 5% strengthening of the INR against key currencies to which the Company is exposed would have led to approximately an additional Rs. 51,93,874 gain in the Statement of Profit and Loss (2016-17 - Rs.2,26,89,268 gain). A 5% weakening of the INR against these currencies would have led to an equal but opposite effect.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 5% change in foreign currency rates. The company has not entered into any derivative contracts like foreign exchange forward contracts to hedge the risk of exposure in foreign currency.
C. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31 March 2018 and 31 March 2017. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.
The Company regularly maintains the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and mutual funds with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities. All the payables such as trade payables and borrowings falls due for payment within one year
d. Capital Management
Equity share capital and other equity are considered for the purpose of Companyâs capital management.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on Managementâs judgment of its strategic day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.
The Management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or is necessary, adjust its capital structure.
7. DIVIDEND
The board of directors at its meeting held on 29 May 2018 have recommended a dividend of Rs.2 share of face value of Rs.10 each for the financial year ended 31 March 2018. The above is subject to approval at the ensuing Annual general meeting of the company and hence is not recognised as a liability.
8. Disclosure as per Regulation 53(f) of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
i) Loans and advances in the nature of loans given to company in which Directors are interested Rs. NIL. (31 March 2017 : Rs. NIL).
ii) Details of investments, loans / guarantees made u/s 186 of Companies Act 2013 : Rs. NIL (31 March 2017 : Rs. NIL).
9. a) Balances in personal accounts of various parties are subject to confirmation by and reconciliation with the said parties.
b) In the opinion of the management, Current Assets, Loans and advances have a value on realization in the ordinary course of business equal to the values at which they are stated.
10. Previous yearâs figures have been regrouped wherever necessary to confirm to the current year classification.
11. Paise have been rounded off.
Mar 31, 2015
1. Rights attached to Equity share holders :- The company has only one
class of Equity Shares having a par value of Rs.10/- each. Each holder
of Equity Share is entitled to one vote per share on poll and has one
vote on show of hands. The dividend proposed by the board of directors
is subject to the approval of share holders in the annual general
meeting, except in case of interim dividend. In the event of
liquidation, the Equity share holders are eligible to receive the
remaining assets of the company in proportion to their share holding
after distribution of payments to preferential creditors.
2. Particulars regarding bonus issues and other details during the
period of last five financial years:
Out of last five financial years, the company issued and allotted
44,40,575 equity shares of Rs.10/- each as bonus shares in the ratio of
1:1 during the financial year 2011-12 by way of capitalization of
General Reserves.
3. None of the shares were issued in pursuant to contract without
payment being received in cash.
4. Out of total equity shares issued and subscribed, 48,86,500 shares
are held by holding company, The Andhra Sugars Ltd, Tanuku.
*Of above, Rs.22,27,248 was adjusted against general reserve consequent
to applicability of Schedule-II of Companies Act, 2013.
Note:
a. The working capital loans from Andhra Bank and SBI carries interest
@11.25%. No amounts were overdrawn exceeding the limits sanctioned by
the banks.
b. Fixed deposits accepted during the year carries interest @9.50%.
The company made no defaults in repayment of fixed deposits.
Disclosures required under the Micro, Small and Medium Enterprises
Development Act, 2006.
Based on, and to the extent of information received from the suppliers
with regard to their status under Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED Act), on which the auditors have relied,
the disclosure requirements with regard to the payments made/due to
Micro, Small and Medium Enterprises are given below:
* The unclaimed dividends represent those relating to the years 2007-08
to 2013-14 and no part thereof has remained unpaid or unclaimed for a
period of seven years or more from the date they became due for payment
requiring transfer to the Investor Education and Protection Fund.
Note: 1. Sale value of Biomass Power in the previous year includes an
amount of Rs. 2,33,07,042 being differential sale price of power for
earlier years received as per the interim order of Appellate Tribunal
for Electricity.
5. Sales of Biomass Power does not include 1,69,36,089 kWh, value
Rs.11,00,84,582 (Previous year 1,66,58,028 kWh, value Rs.10,56,11,899)
consumed internally.
Note:
a. Production of Fatty Acids includes 12525 MT (Previous year 22,627
MT) utilized for captive consumption at Soap Plant and 7877 MT
(Previous year  1177 MT) processed on behalf of others.
b. Production of Toilet Soap during the year is on behalf of others
(Previous year 2,124 MT).
c. Production of Soap Products includes 11677 MT (Previous year 1,224
MT) consumed for production of Toilet Soap at Soap Plant and 1722 MT
(Previous year 1,791 MT) processed on behalf of others.
d. Production of Glycerine includes 112 MT (Previous year 129 MT)
consumed for captive consumption at Soap Plant.
e. Production of Industrial Oxygen includes captive consumption of
3269 cubic meters (Previous year 5,467 cu. mtrs).
f. Power Generation includes 16936089 units (Previous year 16658028
units) utilized for captive consumption.
Note :
a. The Company has considered business segment as the primary segment
for disclosure. The products included in each of the reported domestic
business segments are
- Chemicals  Fatty acids
- Soap  Toilet soap and Soap products
- Power  Power generated by Biomass Power Plant and Wind Energy
Generator (WEG)
b. Segment revenue relating to each of the above domestic business
segments includes income from processing on behalf of others wherever
applicable.
c. The above business segments have been identified considering :
- the nature of products and services
- the differing risks and returns
- the organization structure and
- the internal financing reporting systems
d. The Company predominantly operates in Indian market and has no
production facilities or any significant sales outside India. Hence
there are no separate reportable geographical segments.
e. Inter segment transfers are priced at market related rates.
6. a. Balances in personal accounts of various parties are subject
to confirmation by and reconciliation with the said parties.
b. In the opinion of the management, Current Assets, Loans and
advances have a value on realization in the ordinary course of business
equal to the values at which they are stated.
7. Previous year's figures have been regrouped wherever necessary to
confirm to the current year classification.
8. Paise have been rounded off.
Mar 31, 2014
1. Rights attached to Equity Shareholders
The company has only one class of Equity Shares having a par value of
Rs.10/- each. Each holder of Equity Share is entitled to one vote per
share on poll and has one vote on show of hands. In the event of
liquidation, the Equity shareholders are eligible to receive the
remaining assets of the company in proportion to their share holding
after distribution of payments to preferential creditors.
2. Details of shares held by share holders holding more than 5% of the
aggregate shares in the Company.
3. Out of total equity shares issued and subscribed, 48,86,500 shares
are held by holding company, The Andhra Sugars Ltd, Tanuku.
a. Particulars regarding bonus issues and other details during the
period of last five financial years:
Out of last five financial years, the company issued and alloted
44,40,575 equity shares of Rs.10/- each as bonus shares in the ratio of
1:1 during the financial year 2011-12 by way of capitalisation of
General Reserves.
b. None of the shares were issued in pursuant to contract without
payment being received in cash.
4 Note:
a) The working capital loan from Andhra Bank and SBI carries interst
@11.25% and @10.90% respectively.
No amounts were overdrawn exceeding the limits sanctioned by the banks.
b) Fixed deposits accepted during the year upto 21/07/2013 carries
interest @9.75% and thereafter @9.50%. The company made no defaults in
repayment of fixed deposits.
* The unclaimed dividends represent those relating to the years 2006-07
to 2012-13 and no part thereof has remained unpaid or unclaimed for a
period of seven years or more from the date they became due for payment
requiring transfer to the Investor Education and Protection Fund.
5 Note:- In the opinion of Management, the shortfall in value of
non-current investments is to be considered temporary. In view of past
trend in Market Price of Share and considering the performance of the
company, the diminution in market value of Shares is considered
temporary in nature.
6 Note: 1) Sale value of Bio-mass power includes an amount of
Rs.2,33,07,042 (PY Rs.2,13,51,548) being differential sale price of
power for earlier years received as per the order of Appellate Tribunal
for Electricity.
7) The sale of Bio-mass power does not include 1,66,58,028 KWH value of
Rs.10,56,11,899 (PY 1,79,68,840 KWH value of Rs.9,43,36,412 consumed
internally.)
8 Note:
a) Production of Fatty Acids includes 22,627 MT (Previous year 24,730
MT) utilized for captive consumption at Soap Plant and 1,177 MT
(Previous year - 3,292 MT) processed on behalf of others.
b) Production of Toilet Soap includes 2,124 MT processed on behalf of
others (Previous year 5,337 MT)
c) Production of Soap Products includes 1,224 MT (Previous year 1,924
MT) utilized for production of Toilet Soap at Soap Plant and 1,791 MT
(Previous year 4,845 MT) processed on behalf of others.
d) Production of Glycerine includes 129 MT (Previous year 80 MT)
utilized for captive consumption at Soap Plant
e) Production of Industrial Oxygen includes captive consumption of
5,467 cubic meters (Previous year 7,686 cu. mtrs).
f) Power Generation includes 1,66,58,028 units (Previous year
1,79,68,840 units) utilized for captive consumption.
g) Expenditure incurred in foreign currency during the year towards
Consultancy services Rs. Nil (Previous year Rs. 23,29,204/-) and
towards traveling expenses Rs. Nil (Previous Year Rs.93,107/-)
9. Comparison between consumption of imported and indigenous spares
and components during the year charged to appropriate heads of account.
10 Note :
a. The Company has considered business segment as the primary segment
for disclosure. The products included in each of the reported domestic
business segments are
* Chemicals - Fatty acids
* Soap - Toilet soap and Soap products
* Power - Power generated by Biomass Power Plant and Wind Energy
Generator (WEG)
b. Segment revenue relating to each of the above domestic business
segments includes income from processing on behalf of others wherever
applicable.
c. The above business segments have been identified considering :
* the nature of products and services
* the differing risks and returns
* the organization structure and
* the internal financing reporting systems
d. The Company predominantly operates in Indian market and have no
production facilities or any significant sales outside India. Hence
there are no separate reportable geographical segments.
e. Inter segment transfers are priced at market related rates.
As at 31-3-2014 As at 31-3-2013
Rs. Rs.
11. Contingent Liabilities not
provided for -
a) Estimated amount of contracts
remaining to be executed and not
provided for which commitment is 20,47,49,535 27,56,27,424
made
b)Claims against the Company
not admitted as debts relating
to:
i) Excise and Service Tax 1,21,08,997 91,29,997
ii) Income-tax 66,09,990 48,59,971
ii) State Levies 2,45,58,664 2,26,09,309
iiii) Other Contracts 3,72,156 3,60,225
12. The Company billed the entire power supplied by it to AP Transco
during the year at Rs.5.66 per kwh, (5% increase over the previous
year) pending finalization of rate by AP Electricity Regulatory
Commission (APERC) on the petition filed by Biomass Energy Developers
Association (BEDA), Hyderabad in which the Company is a member in order
to maintain claim for payment in case of favourable decision. However,
the Company recognized revenue from power sales during the year based
on the rate at which AP Transco/ SPDCL is currently paying for
supplies. Accordingly an amount of Rs.461.14 lakhs was recognized as
income and balance of Rs.19.77 lakhs has not been recognized as income
during the year.
13. Foreign exchange earnings on exports during the year calculated on
FOB basis Rs.12,34,262 (Previous year Rs. 1,30,50,778)
14. RELATED PARTY DISCLOSURES
a) List of related parties and description of relationship:
1. Holding Company : The Andhra Sugars Ltd.
2. Fellow Subsidiaries : The Andhra Farm Chemicals Corp. Ltd.
3. Key Management Personnel : J. Murali Mohan
4. Relatives of Key Management Personnel - J. Murali Mohan
J. Ganga Bhavani Mother
J. Sunita Mohan Wife
J. Namrata Daughter
V Indira Sister
J. Murali Mohan HUF
15. a) Balances in personal accounts of various parties are subject to
confirmation by and reconciliation with the said parties.
b) In the opinion of the management, Current Assets, Loans and advances
have a value on realization in the ordinary course of business equal to
the values at which they are stated.
16. Previous year''s figures have been regrouped wherever necessary to
confirm to the current year classification.
17. Paise have been rounded off.
Mar 31, 2013
CORPORATE INFORMATION
Jocil Limited (hereinafter referred to as Jocil) is engaged in the
manufacture of Stearic Acid, Fatty Acids, Soap Noodles, Toilet Soap,
Glycerine and Industrial Oxygen. The manufacturing facilities of Jocil
and its Registered Office are located at the same place at Dokiparru
Village, Medikondur Mandal, Guntur District, Andhra Pradesh. It is also
having a 6 MW Biomass Cogeneration Captive Power Plant to meet the
power requirements of the manufacturing activity and surplus power is
sold to AP Transco. Jocil is also having 4 Wind Energy Generators in
the State of Tamil Nadu and the power generated is sold to Tamil Nadu
Generation and Distribution Corporation Limited. Jocil is a subsidiary
to The Andhra Sugars Limited (ASL), Tanuku, W.G.District, Andhra
Pradesh. As on 31-03-2013 ASL owned 55.02% of the Jocil''s equity share
capital.
As at
31-3-2013 As at
31-3-20l2
Rs. Rs.
2. Contingent Liabilities
not provided for -
a) Estimated amount of contracts
remaining to be executed and
not provided for which
commitment is made 27,56,27,424 40,36,19,016
b) Claims against the Company
not admitted as debts relating to:
i) Excise and Service Tax 1,68,27,630 1,67,60,762
ii) Income-tax 48,59,971 19,57,886
ii) State Levies 2,26,09,309 10,99,165
iiii) Other Contracts 3,60,225 3,48,295
3. The Company billed the entire power supplied by it to AP Transco
during the year at Rs. 5.39 per kwh, (5% increase over the previous
year) pending finalization of rate by AP Electricity Regulatory
Commission (APERC) on the petition filed by Biomass Energy Developers
Association (BEDA), Hyderabad in which the Company is a member, in
order to maintain claim for payment in case of favourable decision.
However, the Company recognized revenue from power sales during the
year based on the rate at which AP Transco/ SPDCL is currently paying
for supplies. Accordingly an amount of Rs. 329.11 lakhs was recognized
as income and balance of Rs. 93.01 lakhs has not been recognized as
income during the year.
4. Foreign exchange earnings on exports during the year calculated on
FOB basis Rs. 1,30,50,778 (Previous year Rs. 2,18,08,672)
5. RELATED PARTY DISCLOSURES
a) List of related parties and description of relationship:
1. Holding Company : The Andhra Sugars Ltd.
2. Fellow Subsidiaries : The Andhra Farm Chemicals Corp. Ltd.
3. Key Management Personnel : J. Murali Mohan
4. Relatives of Key Management Personnel - J. Murali Mohan J. Ganga
Bhavani Mother
J. Sunita Mohan Wife
J. Namrata Daughter
V. Indira Sister
J. Murali Mohan HUF
6. a) Balances in personal accounts of various parties are subject to
confirmation by and reconciliation with the said parties.
b) In the opinion of the management, Current Assets, Loans and advances
have a value on realization in the ordinary course of business equal to
the values at which they are stated.
7. Previous year''s figures have been regrouped wherever necessary to
confirm to the current year classification.
8. Paise have been rounded off.
Mar 31, 2012
1. CORPORATE INFORMATION
Jocil Limited (hereinafter referred to as Jocil) is engaged in the
manufacture of Stearic Acid, Fatty Acids, Soap Noodles, Toilet Soap,
Glycerine and Industrial Oxygen. The manufacturing facilities of Jocil
and its Registered Office are located at the same place at Dokiparru
Village, Medikondur Mandal, Guntur District, Andhra Pradesh. It is also
having a 6 Mw Biomass Cogeneration Captive Power Plant to meet the
power requirements of the manufacturing activity and surplus power is
sold to AP Transco. Jocil is also having 4 Wind Energy Generators in
the State of Tamil Nadu and the power generated is sold to Tamil Nadu
Generation and Distribution Corporation Limited. Jocil is a subsidiary
to The Andhra Sugars Limited (ASL), Tanuku, W.G.District, Andhra
Pradesh.
a. Rights attached to Equity shareholders
The company has only one class of Equity Shares having a par value of
Rs. 10/- each. Each holder of Equity Shares is entitled to one vote per
share on poll and have one vote on show of hands. In the event of
liquidation, the Equity shareholders are eligible to receive the
remaining assets of the company in proportion to their share holding
after distribution of payments to preferential creditors.
b. Out of total equity shares issued and subscribed, 48,86,500 shares
are held by holding company. The Andhra Sugars Ltd, Tanuku.
c. Particulars regarding bonus issues and other details during the
period of last five financial years:
i) Out of last five financial years, the company issued and allotted
44,40,575 equity shares of Rs. 10 each as bonus shares in the ratio of
1: 1 in the financial year 2011-12 by way of capitalisation of General
Reserves.
ii) None of the shares were issued in pursuant to contract without
payment being received in cash.
I) a) Term Loan from Axis Bank is secured by way of first charge on
entire fixed assets of the company Also secured by second Pari Passu
charge on entire current assets of the Company.
b) The above Term Loan is repayable in 36 equal monthly installments
starting from 1st April, 2011 i.e., in 2011-12 Rs. 125 lakhs : in
2012-13 Rs. 125 lakhs and in 2013-14 Rs. 125 lakhs. The said loan
carries interest 13.75%.
c) However, the above loan is repaid in full during the current
financial year 2011-12.
d) The company is regular in repaying the above Term Loan within the
stipulated time period.
II) The company has availed Interest free sales tax loan for the period
from 1996-97 to 1998-99 aggregating to Rs. 1,10,16,620/-. The said loan
is repayable within a period of 14 years from the year of availment.
Of the above, an amount of Rs.38,97,599/- falls due for repayment in
the financial year 2012-13.
Notes:
1. Production of Fatty Acids includes 25164 MT (Previous year 29615
MT) utilized for captive consumption at Soap Plant and 1475 MT
(Previous year - 1651 MT) processed on behalf of others.
2. Production of Toilet Soap includes 5144 MT processed on behalf of
others (Previous year 8014 MT)
3. Production of Soap Products includes 2235 MT (Previous year 1565
MT) utilized for production of Toilet Soap at Soap Plant and 2187 MT
(Previous year 3620 MT) processed on behalf of others.
4. Production of Glycerin includes 64 MT (Previous year 186 MT)
utilized for captive consumption at Soap Plant
5. Production of Industrial Oxygen includes captive consumption of
13811 cubic meters (Previous year 10974 cu. mtrs).
6. Power Generation includes 16685632 units (Previous year 14154675
units) utilized for captive consumption.
7. The Installed Capacities are as per Certification given by the
Managing Director on which the Auditors have relied.
b) Expenditure incurred in foreign currency during the year towards
Consultancy services Rs.4,26,383/- (Previous year Rs. Nil)
Note :
a. The Company has considered business segment as the primary segment
for disclosure. The products included in each of the reported domestic
business segments are
- Chemicals - Fatty acids
- Soap - Toilet soap and Soap products
- Power - Power generated by Biomass Power Plant and Wind Energy
Generator (WEG)
b. Segment revenue relating to each of the above domestic business
segments includes income from processing on behalf of others wherever
applicable.
c. The above business segments have been identified considering :
- the nature of products and services
- the differing risks and returns
- the organization structure and
- the internal financing reporting systems
d. The Company predominantly operates in Indian market and have no
production facilities or any significant sales outside India. Hence
there are no separate reportable geographical segments.
e. Inter segment transfers are priced at market related rates.
As at As at
31-3-2011 31-3-2011
Rs. Rs.
1. Contingent Liabilities not
provided for -
a) Estimated amount of contracts remaining
to be executed and not provided for which
commitment is made 40,36,19,016 28,87,52,866
b) Outstanding guarantees to Banks including
letter of credit opened with Bankers for
purchase of material 3,44,58,580 42,04,440
c) Claims against the Company not admitted
as debts relating to:
i) Excise and Service Tax 1,67,60,762 90,70,382
ii) State Levies 12,41,487 -
iiii) Other Contracts 3,48,295 3,36,364
2. Foreign exchange earnings on exports during the year calculated on
FOB basis Rs.2,18,08,672/- (Previous years. 36,59,13,419)
3. GROUP GRATUITY :
a) The company has a defined benefit gratuity plan. Every employee who
has completed five years or more of service gets a gratuity on
departure at 15 days salary (last drawn salary) for each completed year
of service subject to the limits as per the rules of the company. The
scheme is funded with an insurance company in the form of a qualifying
insurance policy.
The following tables summarise the components of net benefit expense
recognised in the statement of profit and loss and the fund status and
amounts recognised in the balance sheet for the Group gratuity.
Statement of Profit and Loss Net employee benefit expense (contribution
to Group gratuity)
4. a) Balances in personal accounts of various parties are subject to
confirmation by and reconciliation with the said parties.
b) In the opinion of the management, Current Assets, Loans and advances
have a value on realization in the ordinary course of business equal to
the values at which they are stated.
5. Previous year's figures have been regrouped wherever necessary as
per the requirements of revised Schedule-VI of The Companies Act, 1956,
and have been shown in brackets in some of the places.
6. Paise have been rounded off.
Mar 31, 2011
1. "Sundry Creditors" under "Current Liabilities" includes
Rs.66,11,194 (Previous year Rs.64,39,535) due to Managing Director.
As at As at
31-3-2011 31-3-2010
Rs. Rs.
2. Contingent Liabilities not provided for Ã
a) Estimated amount of contracts remaining
to be executed on capital account and not
provided for which commitment is made 2,19,69,599 4,66,54,264
b) Outstanding guarantees to Banks
including letter of credit opened with
Bankers for purchase of material 42,04,440 5,73,31,250
c) Claims against the Company not admitted
as debts relating to
i) Excise and Service Tax 90,70,382 88.97,229
iii) State Levies à 30,48,520
iv) Other Contracts 3,36,364 3,24,434
3. Disclosures required under the Micro, Small & Medium Enterprises
Development Act, 2006
Details Amount (Rs.)
i) Principal and Interest over due as on 31-3-2011 Nil
ii) Interest paid on delayed payments during 2010-11 Nil
iii) Interest due on principal amounts paid beyond due date during
2010-11 Nil
iv) Interest accrued but not due Nil
v) Total interest due but not paid NIl
The above details were prepared based on information furnished by the
respective suppliers and available with the company regarding their
status under Micro, Small & Medium Enterprises Development Act, 2006.
The said information to the extent furnished by the suppliers has been
relied upon by the company and its auditors for the said purpose.
4. Cash at Scheduled Banks in Fixed Deposits includes :
1. Rs.38,00,000 (Previous year Rs.35,00,000) deposited towards
maintenance of Liquid Assets under provisions of the Companies
(Acceptance of Deposits) Rules, 1975.
2. Rs.7,77,232 (Previous year Rs.46,66,377) towards margin money for
Bank Guarantees and Foreign Letters of Credit.
3. Rs.16,59,014 (Previous year Rs.10,69,623) on account of Unclaimed
Dividends.
5. Foreign exchange earnings on exports during the year calculated on
FOB basis Rs.36,59,13,419 (Previous year - Rs.44,61,48,528)
6. RELATED PARTY DISCLOSURES
a) List of related parties and description of relationship :
1. Holding Company : The Andhra Sugars Ltd.
2. Fellow Subsidiaries : The Andhra Farm Chemicals Corp. Ltd.
3. Key Management Personnel : J. Murali Mohan
4. Relatives of Key Management Personnel -
J. Ganga Bhavani Mother
J. Sunita Mohan Wife
J. Namrata Daughter
V. Indira Sister
J. Murali Mohan (HUF) HUF
7. GROUP GRATUITY
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service
subject to the limits as per the rules of the company. The scheme is
funded with an insurance company in the form of a qualifying insurance
policy.
The following tables summarise the components of net benefit expense
recognised in the profit and loss account and the fund status and
amounts recognised in the balance sheet for the Group gratuity.
8. a) Balances in personal accounts of various parties are subject to
confirmation by and reconciliation with the said parties.
b) In the opinion of the management, Current Assets, Loans and Advances
have a value on realization in the ordinary course of business equal to
the values at which they are stated.
9. Paise have been rounded off.
10. Previous year's figures have been regrouped wherever necessary,
and have been shown in brackets in some of the places.
Mar 31, 2010
Notes : 1. Production of Fatty Acids includes 26048.180 MT (Previous
year - 15932.738 MT).utilised for captive consumption at Soap Plant and
2227.358 MT (Previous year - 5691.348 MT) processed on behalf of
others.
2. Production of Glycerine includes 22.000 MT (Previous year - 8.000
MT) utilised for captive consumption at Soap Plant and Nil MT (Previous
year - 131.500 MT) processed on behalf of others.
3. Production of Toilet Soap includes 8150.578 MT processed on behalf
of others (Previous year - 6266.9938 MT).
4. Production of Soap Products includes 1549.148 MT (Previous
year-456.888 MT) utilised for production of Toilet Soap at Soap Plant
and 3638.310 MT (Previous year - 9426.187 MT) processed on behalf of
others.
5. Production of Industrial Oxygen includes captive consumption of
4417 cubic metres (Previous year - 3339 cubic metres).
6. Power Generation includes 16186065 Units (Previous year - 14110066
Units) utilised for captive consumption.
7. The Installed Capacities are as per Certification given by the
Managing Director on which the Auditors have relied.
8. "Inter Corporate Loans" under "Loans and Advances" comprise -
A) Loan to holding company, The Andhra Sugars Limited, Tanuku of Rs.
Nil (Previous year Rs.1.50 crores). Maximum balance outstanding during
the year Rs.1.50 crores (Previous year Rs.4.00 crores).
B) Loan to a company under the same management Sree Akkamamba Textiles
Limited, Tanuku Rs. Nil (Previous year Rs.2.50 crores).
Maximum balance outstanding during the year Rs.2.50 crores (Previous
year Rs.4.00 crores).
9. "Sundry Creditors" under "Current Liabilities" and Provisions
includes Rs.64,39,535 (Previous year Rs.50,64,560) due to Managing
Director.
Note :
1. The Company has considered business segment as the primary segment
for disclosure. The products included in each of the reported domestic
business segments are :
- Chemicals - Fatty acids
- Soap - Toilet Soap and Soap products
à Power - Power generated by Biomass Power Plant and Wind Energy
Generators (WEGs)
2. Segment revenue relating to each of the above domestic business
segments includes income from processing on behalf of others wherever
applicable.
3. The above business segments have been identified considering : Ã
the nature of products and services
- the differing risks and returns
- the organization structure and
- the internal financing reporting systems
4. The Company predominantly operates in Indian market and has no
production facilities or any significant sales outside India. Hence
there are no separate reportable geographical segments.
10. Contingent Liabilities not provided for -
a) Estimated amount of contracts remaining to be
executed on capital account and not provided
for 4,66,54,264 21,38,832
b) Outstanding guarantees to Banks
including letter of credit opened with
Bankers for purchase of material 5,73,31,250 2,82,73,700
c) Claims against the Company not admitted
as debts relating to
i) Excise and Service Tax 88.97,229 -
iii) State Levies 30,48,520 1,86,47,414
iv) Other Contracts 3,24,434 3,12,504
11. The Company billed the entire power supplied by it to AP Transco
during the year at Rs.4.66 per kwh. Since the appeals of APERC and AP
Transco arising out of petition filed by Biomass Energy Developers
Association (BEDA), Hyderabad in which the Company is a member for
revision of rate is pending before Supreme Court, the company has
recognized the revenue during the year based on Rs.3.80 per kwh the
rate at which the AP Transco / SPDCL is currently paying for supplies.
Accordingly an amount of Rs.348.79 lakhs only has been recognized as
income and balance of Rs.79.54 lakhs has not been recognized as income
during the year.
12. The Company made provision of Rs.2,70,81,996 towards the
electricity duty on the captive consumption of power on account of
demand raised by Chief Electrical Inspector to the Govt. of Andhra
Pradesh. The demand was contested by the company.
13. Cash at Scheduled Banks in Fixed Deposits includes :
1. Rs.35,00,000 (Previous year Rs.12,37,331) deposited towards
maintenance of Liquid Assets under provisions of the Companies
(Acceptance of Deposits) Rules, 1975.
2. Rs.46,66,377 (Previous year Rs.67,69,382) towards margin money for
Bank Guarantees and Foreign Letters of Credit.
3. Rs.10,69,623 (Previous year Rs.12,53,375) on account of Unclaimed
Dividends.
14. Foreign exchange earnings on exports during the year calculated on
FOB basis Rs.44,61,48,528 (Previous year - Rs.19,49,06,344)
15. RELATED PARTY DISCLOSURES
a) List of related parties and description of relationship :
1. Holding Company : The Andhra Sugars Ltd.
2. Fellow Subsidiaries : The Andhra Farm Chemicals Corp. Ltd.
3. Key Management Personnel : Shri J. Murali Mohan
4. Relatives of Key Management
Personnel - Shri J. Murali Mohan
Smt. J. Ganga Bhavani Mother
Smt. J. Sunita Mohan Wife
Miss J. Namrata Daughter
Smt. V. Indira Sister
16. a) Balances in personal accounts of various parties are subject to
confirmation by and reconciliation with the said parties.
b) In the opinion of the management, Current Assets, Loans and Advances
have a value on realization in the ordinary course of business equal to
the values at which they are stated.
17. Paise have been rounded off.
18. Previous years figures have been regrouped wherever necessary,
and have been shown in brackets in some of the places.
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