Mar 31, 2018
Note 1 Corporate Information
Lactose (India) Limited (âthe Companyâ) is a listed public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company is a Pharmaceutical Company and engaged in the Business of Manufacturing, trading and carrying out job work and manufacturing of Pharmaceutical Products. The equity of the Company is listed on the Bombay Stock Exchange.
The financial statements of the Company for the year ended 31 March 2018 were authorised for issue in accordance with resolution of the Board of Directors on 29th May, 2018.
NOTE 2.1 : FIRST TIME ADOPTION OF IND AS
These are Companyâs first financial statements prepared in accordance with Ind AS.
The accounting policies set out in Note 2.1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet as at April 1, 2016 (The Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with accounting standards notified under Companies(Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).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 tables and notes :
A) Exemptions and exceptions availed
1) Ind-AS optional exemptions :
Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:
a) Deemed cost
Ind AS 101 permits a first time adopter to elect to fair value of its property, plant and equipment as recognised in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS.
The company has elected to measure items of property plant & equipment at its carrying value at the transition date except for certain class of assets which are measured at Fair value as deemed cost.
b) For financial instruments, wherein fair market values are not available (viz. interest free and below market rate security deposits or loans) the Company has elected to adopt fair value recognition prospectively to transactions entered after the date of transition.
2) Ind AS mandatory exceptions :
a) Estimates
An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with 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 at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.
i) Impairment of financial assets based on expected credit loss model.
b) Derecognition of financial assets and financial liabilities
Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly,the Company has applied the derecognition requirement for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.
c) Classification of financial assets and liabilities
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that exist on the date of transition to Ind AS. Accordingly, the Company has applied the above requirement prospectively.Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.
d) Impairment of financial assets
Ind AS 101 requires an entity to assess and determine the impairment allowance on financial assets as per Ind AS 109 using the reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments which were initially recognised and compare that to the credit risk at the date of transition to Ind AS. The Company has applied this exception prospectively.
B) Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:
I. Reconciliation of Balance sheet as at April 1, 2016 and March 31, 2017
II. Reconciliation of Total Comprehensive Income for the year ended March 31, 2017
III. Reconciliation of Equity as at April 1, 2016 and March 31, 2017 between previous GAAP and IND AS
The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
Footnotes to the reconciliation of equity as at April 1, 2016 & March 31, 2017 and Statement of profit and loss for the year ended March 31, 2017
1) Trade Receivables
Under Indian GAAP, the Company has created provision for impairment of receivables which consists only in respect of specific amount for probable losses. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss (ECL) model.
2) Defined benefit liabilities
Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to the statement of profit and loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in 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 the balance sheet with a corresponding debit or credit to other equity through OCI.
3) Security Deposit
Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be initially recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposits has been recognised as prepaid rent.
4) Investment Properties
Under previous GAAP,investment properties were presented as a part of non-current investments/Plant, Property and Equipment. Under Ind AS,investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.
5) Deferred Tax (Including MAT Credit)
Indian GAAP requires deferred tax accounting 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. This has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.
In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences.Deferred tax adjustments are recognised in correlation to the underlying transaction either in other equity or a separate component of equity.
Under Previous GAAP, MAT credit was disclosed under non-current assets. In accordance with Ind AS 12, deferred tax shall include any carry forward unused tax credits. Hence, MAT credit entitlement has been included in deferred tax liability (net).
Leasehold land is a non-depreciable asset, Management is expecting that its carrying value will be recovered through sale and the indexation benefit at the time of disposal will be available, accordingly deferred tax asset on the difference between carrying value and indexed value has been created.
6) Revenue
Under Indian GAAP, revenue from sale of products was presented excluding excise duty.Under Ind AS, revenue from sale of products is presented inclusive of excise duty. Excise duty paid is presented on the face of the statement of profit and loss as part of expenses.There is no impact on total equity and profits.
7) Financial Assets (Investments)
Under Indian GAAP, the Company accounted for long term investments in unquoted and quoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments.Under Ind AS, the Company classified these investments in equity shares as FVTPL investments. Ind AS requires such investments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments at fair value and cost as at the date of transition has been recognised in other equity, net of related deferred taxes.
8) Property, Plant & Equipment
The Company have considered fair value of land in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.
9) Financial Liabilities
Under Previous GAAP, non-current liabilities were recognised on undiscounted basis. Ind AS requires such financial liabilities to be recognised at present value (discounted value) where the effect of time value of money is material. This led to a decrease in the value of non-current financial liabilities on the date of transition which was adjusted against retained earnings. Ind AS also provides that where discounting is used, the carrying amount of the liability increases in each period to reflect the passage of time. This increase is recognised as finance cost. The interest cost on unwinding of discount and impact of change in discount rate are recognised in the Statement of Profit and Loss under âFinance costsâ.
10) Other Comprehensive Income
Under Indian GAAP, the Group has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.
11) Statement of Cash Flows
The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flow from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.
Note:
i) For Investment Property exisiting as on the date of transition to Ind AS the company has used IGAAP carrying value as Deemed cost
The Company has availed the deemed cost exemption in relation to the investment property on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date. Refer note below for the gross block value and the accumulated depreciation on 1 April 2016 under the previous GAAP.
Estimation of Fair value :
The above valuation of the investment properties are in accordance with the Ready Reckoner rates prescribed by the Government of Maharashtra for the purpose of levying stamp duty. Since the valuation is based on the published Ready Reckoner rates. Since the valuation is based on the published Ready Reckoner rates, the company has classified the same under Level 2 of Fair value hierarchy.
b. Terms/rights attached to equity shares:
(i) The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. Any fresh equity shares shall rank pari-passu with the existing shares.
(ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
Note: 3,60,000 Equity Shares (of Rs 10 each fully paid up) have been issued on conversion of the Share warrant issued at a Rs 158.18 in the ratio of one share per warrant in the current year
Note:
I) Secured borrowings Term Loan From Financial Institution
a) Term loan from Piramal Finance Ltd. Amounting to Rs. 3707.87 lakhs (31.03.2017 : Rs. Nil 01.04.2016 : Rs Nil) is secured by
i) Exclusive charges over current and future Fixed assets of the borrower
ii) Joint, Several Irrevocable unconditional personal guarantee of Shri Atul Maheshwari and Smt. Sangeeta Maheshwari
iii) It carries an interest rate of 13.50% p.a.. The loan is repayable in 72 monthly installment starting from 5th September, 2017.
iv) A First charge by way of hypothecation by the Borrower of its current asset ranking on a pari paru basis with the charge created/to be created for securing non fund based working capital facility availed/to be availed by the Borrower agrregrating to the extent of Rs.300 lakhs
Term Loan From Banks :
a) Term loan from Oriental Bank of Commerce amounting to Rs.Nil (31.03.2017: Rs.1019.73 lakhs 01.04.2016 : Rs 1379.73 lakhs) was secured against hypothecation of Land and Building, Plant and Machinery, Furniture and Fixtures, Vehicles and other assets created out of the said Term loan. It carries an interest rate 4.00% Base Rate. The loan was repayable in 60 equal monthly installments of Rs. 30 lakhs each, starting from February, 2015. The same is fully repaid during the year.
b) Term loan from Oriental Bank of Commerce amounting to Rs. Nil (31.03.2017 : Rs. 343.70 lakhs 01.04.2016 : Rs : Nil) was secured against Hypothecation of all the Plant & Machineries, furnitures & fixtures, Vehicles and all other assets of the company created out of term loan. The asset shall be charged exclusively to our bank. It carries an interest rate 9.70% (Bank Rate) 4.25% (Bankâs Spread) - 0.25% (Concession). The loan was repayable in 60 equal monthly installments of Rs. 6.25 lakhs each starting from 07th October,2016. The Term Loan was sanctioned for Rs. 375 lakhs. The same is fully repaid during the year.
c) Term loan from ICICI Bank amounting to USD Nil (Equivalent to INR .Nil) (31.03.2017 : USD 15,09,603.66 equivalent to Rs 978.83 lakhs 01.04.2016 : USD 18,64,804 equivalent to Rs 1,236.98 lakhs) was secured by Pari pasu Charge with Oriental Bank of Commerce on present & future movable fixed assets ,Factory land & building and current assets of the company. It carries an interest rate of MCLR - 1Y - 9.15% Spread is 3.70% .The loan was repayable in quarterly installment of USD 88,800.20 , starting from July,2015. Equitable mortgage on residential premises of directors of the Company is also offered as a collateral security.The loan is further secured by personal guarantees by the directors and relative of directors of the company. The same is fully repaid during the year.
Vehicle loans From Bank
a) Vehicle loan from HDFC Bank amounting to Rs. 6.71 lakhs (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.Nil) is secured against respective vehicle. It carries interest rate of 8.50% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 0.14 lakhs each, starting from 7th February 2018.
b) Vehicle loan from HDFC Bank amounting to Rs. 4.87 lakhs (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.Nil) is secured against respective vehicle. It carries interest rate of 8.50% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 0.1 lakhs each, starting from 7th February 2018.
c) Vehicle loan from HDFC Bank amounting to Rs. 6.42 lakhs (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.Nil) is secured against respective vehicle. It carries interest rate of 8.46% p.a. and is repayable in 48 equal monthly installment amounting to Rs. 0.17 lakhs each, starting from 5th November 2017.
d) Vehicle loan from HDFC Bank amounting to Rs. 5.26 lakhs (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.Nil) is secured against respective vehicle. It carries interest rate of 8.46% p.a. and is repayable in 48 equal monthly installment amounting to Rs. 0.14 lakhs each, starting from 5th November 2017.
e) Vehicle loan from ICICI Bank amounting to Rs. Nil (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.4.35 lakhs ) is secured against respective vehicle. It carries interest rate of 10.60% p.a. and was repayable in 60 equal monthly installment amounting to Rs. 0.75 lakhs each. The same has been fully repaid during the year 31st March 2017
f) Vehicle loan from ICICI Bank amounting to Rs.Nil (31.03.2017 : Rs.Nil, 01.04.2016 : Rs. 4.35 lakhs) is secured against respective vehicle. It carries interest rate of 10.60% p.a. and was repayable in 60 equal monthly installment amounting to Rs. 0.75 lakhs each. The same has been fully repaid during the year 31st March 2017.
g) Vehicle loan from Kotak Mahindra Bank amounting to Rs.Nil (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.1.88 lakhs) is secured against respective vehicle. It carries interest rate of 12.20% p.a. and was repayable in 47 equal monthly installment amounting to Rs. 0.32 lakhs each.The same has been fully repaid during the year 31st March 2017.
h) Vehicle loan from Kotak Mahindra Bank amounting to Rs.Nil (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.2.50 lakhs) is secured against respective vehicle. It carries interest rate of 11.40% p.a. and was repayable in 47 equal monthly installment amounting to Rs. 0.26 lakhs each. The same has been fully repaid during the year 31st March 2017.
Vehicle loans From Others
Vehicle loan from Tata Capital Limited amounting to Rs.Nil (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.1.34 lakhs) is secured against respective vehicle. It carries interest rate of 12.99% p.a. and was repayable in 60 equal monthly installment amounting to Rs. 0.2 lakhs each. The same has been fully repaid during the year.
Cash Credit
a) Cash Credit Facility from Oriental Bank of Commerce amounting to Rs Nil (31.03.2017 : Rs.5.97 lakhs, 01.04.2016 : Rs.311.65 lakhs) was secured against hypothecation of stocks of raw materials, stock in process, finished goods, stores & spares and trade receivables of the Company. It carries interest rate of 4.50% Base Rate. Outstanding balance of cash credit facility had been fully repaid during the year.
b) Cash Credit Facility from ICICI Bank amounting to Rs Nil (31.03.2017 : Rs.132.67 lakhs , 01.04.1016 : Rs.187.51 lakhs) was secured against hypothecation of stocks of raw materials, stock in process, finished goods, stores & spares and trade receivables of the Company ranking pari pasu with Oriental Bank of Commerce and second pari pasu charge on future and present movable fixed assets of the Company. Equitable mortgage of the residential premises of directors of the Company was also given as a collateral security.The loan was further secured by personal guarantees from directors and relative of directors.It carries interest rate of McLR - 1Y - 9.15% Spread is 3.70%. Outstanding balance of cash credit facility had been fully repaid during the year.
c) Packing Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.Nil (31.03.2017 : Nil, 01.04.1016 : Rs.66.7 lakhs) was secured against hypothecation of paid stocks meant for export.
II) Unsecured borrowings
Unsecured borrowings from Financial Institution
Long Term Loan From Bajaj Finserv amounting to Rs. 26.96 lakhs (31.03.2017 : Rs.Nil, 01.04.2016 : Rs.Nil) which are unsecured and carry interest rate of 16.75%p.a and is repayable in 36 installments of Rs. 1.24 lakhs each starting from 2nd June 2017.
Unsecured borrowings from Directors
Long term loans from Directors and Inter Corporate Loans which were unsecured and carry interest @ 12.5% p.a. are repaid during the current year.
Corporate Loan
The Company has taken inter corporate loan which carries interest 16.50% and are repayble before 31st March, 2018.
Note
a) During the FY 2013-14, the Company had commenced production of its upgraded manufacturing facility to manufacture up to 10000 metric tons 200 Mesh Lactose per year exclusively for Kerry Indegrients India Private Limited (KIIPL) and accordingly as per the manufacturing agreement with KIIPL , has recognised during the year income of Rs.57.77 lakhs (31.03.2017 :Rs.57.77 lakhs, 01.04.2016 : Rs57.77 lakhs) on proportionate basis out of total Advance Manufacturing Consideration amounting to Rs. 577.72 lakhs and the balance of Rs.57.77 lakhs (31.03.2017 Rs. 57.77 lakhs is disclosed under the head âOther Current liabilityâ and Rs. 312.93 lakhs (31.03.2017 Rs.370.70 lakhs, 01.04.2016 Rs 428.48 lakhs) is disclosed under the head âOther Long term liabilityâ.
*Interest paid or payable by the Company on the aforesaid principal amount has been waived by the concerned suppliers.
Note: This information, as required to be disclosed under the MSMED Act, has been determined to the extent such parties have been identified on the basis of information available with the Company.
Trade payables are normally non-interest bearing and settled as per the payment terms stated in the contract.
Added Tax (VAT),etc. have been replaced by GST. In accordance with Indian Accounting Standard - 18 on âRevenueâ and Schedule III of Companies Act 2013, GST is not Included in Revenue from operations from 1st July 2017 onwards. However, for the period April 2017 to June 2017 and Earlier Comparative Periods, excise duty is included in the revenue form operations hence not comparable.
Note 3 : Earnings per share (EPS)
The amount considered in ascertaining the Companyâs earnings per share constitutes the net loss after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.
Note (a): The Company has obtained Advance Licence for purchase of raw material and license under Export Promotion Capital Goods Scheme (EPCG) for purchase of capital goods on zero percent custom duty. Under the both licence the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty. Export Obligations amounting to Rs.810.32 lakhs (31.03.2017 Rs 2637.04 lakhs, 01.04.2016 Rs 3712.80 lakhs ) needs to be completed under both the licence. This export obligatition to be completed within 6 years from the date of purchase of respective EPCG license In case of advance licence, export obligation to be completed within 18 months from the date of purchase of advance licence
(b) Commitments
Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs.306.12 lakhs (31.03.2017 : Rs.247.50 lakhs, 01.04.2016 : Rs Nil ).
Note 4 : Disclosure relating to employee benefits as per Ind AS 19 âEmployee Benefits
A Defined benefit obligations - Gratuity (unfunded)
The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the memberâs length of service and salary at retirement age.
Note 5 : Segment Reporting as required under Indian Accounting Standard 108, âOperating Segmentsâ :
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (âCODMâ) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacture and trading of Pharmaceutical Products, hence does not have any reportable Segments as per Ind AS 108 âOperating Segmentsâ.
Note 6 : Operating leases
Leases as lessor
The Company has given its property on lease/ Leave and licence. The cancellable leases are renewable by mutual consent on mutually agreeable terms.
The future minimum lease payments for non-cancellable operating lease are as follows:
Leases as lessee
The future minimum lease payments for non-cancellable operating lease are as follows:
Note 7: Fair Value Measurement
A) Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value.
B) Measurement of fair values
Valuation techniques and significant unobservable inputs
The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments measured at fair value in the balance sheet, as well as the significant unobservable inputs used. Related valuation processes are described in Note 4.
i) Financial instruments measured at amortised cost
Note 8 : Financial risk management objectives and policies
The Companyâs activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
i. 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. Major financial instruments affected by market risk includes loans and borrowings.
a) 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 Company does not have any exposure to the risk of changes in market interest rates relates primarily to the Companyâs total debt obligations with fixed interest rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit/(loss) before tax is affected through the impact on floating rate borrowings, as follows:
Fair value sensitivity analysis for fixed-rate instruments :
The Companyâs fixed rate borrowings are carried at amortised 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 flow will fluctuate because of a change in market interest rates.
b) Foreign currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Companyâs business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.
c) Commodity and other price risk
The Company is not exposed to the commodity and other price risk.
ii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers and investment securities. The carrying amounts of financial assets represent the maximum credit exposure.
Trade receivables
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. To manage credit risk, the Company periodically assesses the financial reliability of the customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivables. Outstanding customer receivables are regularly monitored to make an assessment of recoverability. Receivables are provided as doubtful / written off, when there is no reasonable expectation of recovery. Where receivables have been provided / written off, the Company continues regular follow up,engage with the customers, legal options / any other remedies available with the objective of recovering these outstandings.The Company is not exposed to concentration of credit risk to any one single customer since services are provided to vast specturm. The Company also takes security deposits, advances , post dated cheques etc from its customers, which mitigate the credit risk to an extent.
Cash and cash equivalents
The Company held cash and cash equivalents with credit worthy banks of Rs 267.89 lakhs; Rs 5.75 and Rs 14.12 lakhs as at 31 March 2018 ; 31 March 2017 and 1 April 2016 respectively. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.
iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.
Exposure to liquidity risk
The table below summarises the maturity profile of the Companyâs financial liabilities at the balance sheet date based on contractual undiscounted repayment obligations.
Note 9 : Capital management
For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.
To maintain or adjust the capital structure, the Company usually turns to reputed banks and other financial institutions for funds. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debts.
Note 10 : Disclosure of Specified Bank Notes (SBNs)
During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 30 March 2017 on the details of Specified Bank Notes (SBNs) Disclosure related to Specified Bank Notes (SBNs) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:
* For the purpose of this clause, the term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.
Note 11 : Prior year comparatives
Previous yearâs figures have been regrouped or reclassified, to conform to the current yearâs presentation wherever considered necessary.
Notes 1 to 38 form an integral part of the financial statements
Mar 31, 2017
b. Terms & Conditions
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c. Shareholders having more than 5 % shareholding
Note 1 : Money received against Share Warrants
The Company in August, 2015 has made a preferential issue of 12,60,000 Convertible Share Warrants at a premium of Rs. 17.50 per warrant (Face value Rs.10 each) in accordance with SEBI guidelines and has received 25 % upfront money amounting to Rs. 86,62,500.
During the FY 2015-16 out of 12,60,000 share warrants 4,20,000 share warrants had been converted into 4,20,000 fully paid equity shares of Rs. 10 each at a premium of Rs. 17.50 per share on 5th February 2016 after receiving balance amounting to Rs.86,62,500.
During the current FY 2016-17 remaining 8,40,000 share warrants had been converted into 8,40,000 fully paid equity shares of Rs. 10 each at a premium of Rs. 17.50 per share after receiving balance amounting to Rs.1,73,25,000.
In terms of the issue, the amount so received from the above issue of shares has been utilized for general corporate purpose.
Other information regarding secured loans :
Term loan from banks :
a) Term loan from Oriental Bank of Commerce amounting to Rs.10,19,73,439 (PY Rs. 13,79,73,439) is secured against hypothecation of Land and Building, Plant and Machinery, Furniture and Fixtures, Vehicles and other assets created out of the said Term loan. It carries an interest rate 4.00% Base Rate. The loan is repayable in 60 equal monthly installments of Rs. 30,00,000 each, starting from February, 2015. The interest is payable as and when due. The term loan was sanctioned for Rs. 18,00,00,000.
b) Term loan from Oriental Bank of Commerce amounting to Rs. 3,43,70,315 (PY Rs. Nil) is secured against Hypothecation of all the Plant & Machineries, furnitureâs & fixtures, Vehicles and all other assets of the company created out of term loan. The asset shall be charged exclusively to our bank. It carries an interest rate 9.70% (Bank Rate) 4.25% (Bank''s Spread) - 0.25% (Concession). The loan is repayable in 60 equal monthly installments of Rs. 6,25,000 each starting from 07th October, 2016. The Term Loan was sanctioned for Rs. 3,75,00,000.
c) Term loan from ICICI Bank amounting to USD 15,09,603.66 (Equivalent to INR .9,78,82,685) (PY USD.18,64,804 equivalent to INR 12,36,97,891 ) is secured by Pari pasu Charge with Oriental Bank of Commerce on present & future movable fixed assets ,Factory land & building and current assets of the company. It carries an interest rate of MCLR - 1Y - 9.15% Spread is 3.70% . The loan is repayable in quarterly installment of USD 88,800.20 , starting from July,2015. Equitable mortgage on residential premises of directors of the Company is also offered as a collateral security. The loan is further secured by personal guarantees by the directors and relative of directors of the company.
Vehicle loans from banks :
a) Vehicle loan from ICICI Bank amounting to Rs. Nil (PY Rs.4,34,905 ) is secured against respective vehicle. It carries interest rate of 10.60% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 74,749 each. The same has been fully repaid during the year.
b) Vehicle loan from ICICI Bank amounting to Rs. Nil (PY Rs. 4,34,914) is secured against respective vehicle. It carries interest rate of 10.60% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 74,749 each. The same has been fully repaid during the year.
c) Vehicle loan from Kotak Mahindra Bank amounting to Rs. Nil (PY Rs.1,87,678 ) is secured against respective vehicle. It carries interest rate of 12.20% p.a. and is repayable in 47 equal monthly installment amounting to Rs. 32,400 each. The same has been fully repaid during the year.
d) Vehicle loan from Kotak Mahindra Bank amounting to Rs. Nil (PY Rs.2,49,776) is secured against respective vehicle. It carries interest rate of 11.40% p.a. and is repayable in 47 equal monthly installment amounting to Rs. 26,300 each. The same has been fully repaid during the year.
Vehicle Loan from Others :
Vehicle loan from Tata Capital Limited amounting to Rs. Nil (PY Rs. 1,33,866) is secured against respective vehicle. It carries interest rate of 12.99% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 19,880 each. The same has been fully repaid during the year.
Loan from Directors / Inter Corporate Loans :
Loans from Directors and Inter Corporate Loans are unsecured and repayable only after 31st March, 2018. The loans carry interest @ 12.25% p.a.
Note 2 : Deferred Tax Liabilities (Net)
Other Information regarding loans repayable on demand
a) Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.5,96,87,139 (PY Rs.3,11,65,018 ) is secured against hypothecation of stocks of raw materials, stock in process, finished goods, stores & spares and trade receivables of the Company. It carries interest rate of 4.50% Base Rate.
b) Cash Credit Facility from ICICI Bank amounting to Rs. 1,32,67,082 (PY Rs.1,87,50,999) is secured against hypothecation of stocks of raw materials, stock in process, finished goods, stores & spares and trade receivables of the Company ranking pari pasu with Oriental Bank of Commerce and second pari pasu charge on future and present movable fixed assets of the Company. Equitable mortgage of the residential premises of directors of the Company is also given as a collateral security. The loan is further secured by personal guarantees from directors and relative of Directors. It carries interest rate of MCLR - 1Y - 9.15% Spread is 3.70%
c) Packing Cash Credit Facility from Oriental Bank of Commerce amounting to Rs. Nil (PY Rs.66,70,000) is secured against hypothecation of paid stocks meant for export.
Unsecured Loan
The Company has taken inter corporate loan which carries interest 16.50% and are repayable before 31st March, 2018.
Note (a): The Company has obtained Advance License for purchase of raw material and license under Export Promotion Capital Goods Scheme (EPCG) for purchase of capital goods on zero percent custom duty. Under the both license the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty. Export Obligations amounting to Rs.26,37,04,328 (PY Rs.37,12,79,689/-) needs to be completed under both the license. This export obligatition to be completed within 6 years from the date of purchase of respective EPCG license. In case of advance license, export obligation to be completed within 18 months from the date of purchase of advance license.
Note 3: Commitments
Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs. 2,47,50,000/-(PY: Rs. Nil/-).
Note 4 : In the opinion of the Board the Current Assets and Long Term Loans and advances, are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.
Note 5:
a) During the FY 2013-14, the Company had commenced production of its upgraded manufacturing facility to manufacture up to 10000 metric tons 200 Mesh Lactose per year exclusively for Kerry Indegrients India Private Limited (KIIPL) and accordingly as per the manufacturing agreement with KIIPL , has recognized during the year income of Rs.57,77,208 (P.Y. Rs.57,77,208/-) on proportionate basis out of total Advance Manufacturing Consideration amounting to Rs. 5,77,72,000 and the balance of Rs. 57,77,208/- (P.Y. Rs. 57,77,208/- is disclosed under the head âOther Current liabilityâ and Rs.3,70,70,345 /-(P.Y. Rs.4,28,47,553 /-) is disclosed under the head ââOther Long term liabilityâ
b) During the FY2014-2015, Company had received an advance amounting to Rs. 2,60,00,000/- from Sanofi India Limted for procurement of machinery, equipment and carrying out civil work for structural modification of manufacturing facility exclusively meant for Sanofi India Limited through an agreement dated 10th April, 2014 and addendum thereto dated 1st January, 2015. As per said agreement with Sanofi India Limited,it has adjusted Rs. 76,47,178 by way of monthly deductions by Sanofi India Limited equivalent to 20% of the Conversion and Packaging charges billed to Sanofi India Limited by Lactose (India) Limited in F.Y 2015-2016 out of total advance of Rs. 2,60,00,000/- and the balance of Rs. Nil (P.Y.1,83,52,822/-) is disclosed under the head âOther Current liabilityâ .
Note 6 : Segment Reporting Basis of preparation
In accordance with the requirements of Accounting Standard 17 âSegment Reportingâ, the Company''s business consists of one reportable business segment i.e., âManufacturing & Trading of Pharmaceutical Productsâ, hence no separate disclosures pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital Employed are given.
Note 7 : Previous yearâs figures have been re-grouped / re-classified to conform to this yearâs classification.
Mar 31, 2016
b. Terms & Conditions
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
The Company in August, 2015 has made a preferential issue of 12,60,000 Convertible Share Warrants at a premium of Rs. 17.5 per warrant (Face value Rs.10 each) in accordance with SEBI guidelines and has received 25 % upfront money amounting to Rs. 86,62,500.
Out of 12,60,000 share warrants 4,20,000 share warrants had been converted into 4,20,000 fully paid equity shares of Rs. 10/each at a premium of Rs. 17.50 per share on 8th February 2016 after receiving balance amounting to Rs.86,62,500.
In terms of the issue, the amount so received from the above issue of shares has been utilized for the working capital requirements of the Company.
Other information regarding secured loans :
Term loan from banks :
a) Term loan from Oriental Bank of Commerce amounting to Rs. 13,79,73,439 (PY Rs. 17,39,73,439) is secured against hypothecation of Land and Building, Plant and Machinery, Furniture and Fixtures, Vehicles and other assets created out of the said Term loan. Loan is taken for the specific purpose of expansion of capacity for manufacturing of Lactose Monohydrate and Setting-up the new facility of Lactulose Solution. It carries an interest rate 4.00% Base Rate. The loan is repayable in 60 equal monthly installments of Rs. 30,00,000 each, after a moratorium of 12 months, which has commenced from February, 2015. The interest is payable as and when due. The Term Loan was sanctioned for Rs. 18,00,00,000.
b) Term loan from ICICI Bank amounting to USD 18,64,804.46 (equivalent to INR 12,36,97,891) (P.Y Rs.13,33,93,830 ) is secured by Pari pasu Charge with Oriental Bank of Commerce on present & future movable fixed assets ,Factory land & building and current assets of the company. It carries an interest rate of 3 months LIBOR Rate 1.86% . The loan is repayable in 9 equal quarterly installment of USD 88,800 and one last installment of USD 1,332,003, starting from July,2015. Equitable mortgage on residential premises of directors of the Company is also offered as a collateral security. The loan is further secured by personal guarantees by the directors and relative of directors of the company.
Vehicle loans from banks :
a) Vehicle loan from ICICI Bank amounting to Rs.4,34,905 /- (PY Rs.12,38,857/- ) is secured against respective vehicle. It carries interest rate of 10.60% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 74,749 each, starting from 1st November 2011.
b) Vehicle loan from ICICI Bank amounting to Rs.4,34,914/- (PY Rs. 12,38,864/-) is secured against respective vehicle. It carries interest rate of 10.60% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 74,749 each, starting from 1st November 2011.
c) Vehicle loan from Kotak Mahindra Bank amounting to Rs.1,87,678 (PY Rs.5,30,576 ) is secured against respective vehicle. It carries interest rate of 12.20% p.a. and is repayable in 47 equal monthly installment amounting to Rs. 32,400 each, starting from 10th November 2012.
d) Vehicle loan from Kotak Mahindra Bank amounting to Rs.2,49,776 (PY Rs.5,19,975) is secured against respective vehicle. It carries interest rate of 11.40% p.a. and is repayable in 47 equal monthly installment amounting to Rs. 26,300 each, starting from 20th March 2013.
Vehicle Loan from Others :
a) Vehicle loan from Kotak Mahindra Prime Limited amounting to Rs.Nil (PY Rs. 2,40,259) is secured against respective vehicle. It carries interest rate of 9.46% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 35,415 each, starting from 1st December 2010
b) Vehicle loan from Tata Capital Limited amounting to Rs.1,33,866 (PY Rs. 3,43,130) is secured against respective vehicle. It carries interest rate of 12.99% p.a. and is repayable in 60 equal monthly installment amounting to Rs. 19,880 each, starting from 9th December 2011.
Loan from Directors / Inter Corporate Loans :
Loans from Directors and Inter Corporate Loans are unsecured and repayable only after 31st March, 2017. The loans carry interest
@ 12.5% p.a.
Other Information regarding loans repayable on demand
a) Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.3,11,65,018 (PY Rs.2,95,33,233/- ) is secured against hypothecation of stocks of raw materials, stock in process, finished goods, stores & spares and trade receivables of the Company. It carries interest rate of 4.50% Base Rate.
b) Cash Credit Facility from ICICI Bank amounting to Rs.1,87,50,999 (PY Rs. 72,27,950/-) is secured against hypothecation of stocks of raw materials, stock in process, finished goods, stores & spares and trade receivables of the Company ranking pari pasu with Oriental Bank of Commerce and second pari pasu charge on future and present movable fixed assets of the Company. Equitable mortgage of the residential premises of directors of the Company is also given as a collateral security. The loan is further secured by personal guarantees from directors and relative of directors. It carries interest rate of 4% Base Rate.
c) Packing Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.66,70,000 (PY Rs. Nil ) is secured against hypothecation of paid stocks meant for export.
Unsecured Loan
The Company has taken inter corporate loan from Cellseed Enterprises Pvt. Ltd. Which carries interest 4% to 6% and are repayable before 31st March, 2017.
Note 1 : Commitments
Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs. Nil (PY: Rs.7,48,39,714/-).
Note 2 : In the opinion of the Board the Current Assets and Long Term Loans and advances, are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.
Note 3 : Balances of trade receivables, payables, loans and advances are subject to confirmation, reconciliation and consequential adjustment, if any. Consequently revenue impact, presently is not ascertainable, will be considered as and when determined.
Note 4 :
a) During the FY 2013-14, the Company had commenced production of its upgraded manufacturing facility to manufacture up to 10000 metric tons 200 Mesh Lactose per year exclusively for Kerry Indegrients India Private Limited (KIIPL) and accordingly as per the manufacturing agreement with KIIPL , has recognized during the year income of Rs.57,77,208 (P.Y. Rs.57,77,206/-) on proportionate basis out of total Advance Manufacturing Consideration amounting to Rs. 5,77,72,000 and the balance of Rs. 57,77,208/- (P.Y. Rs. 57,77,208/- is disclosed under the head ââOther Current liabilityââ and Rs.3,70,70,345 /-(P.Y. Rs.4,28,47,553 /-) is disclosed under the head ââOther Long term liabilityââ.
b) During the FY2014-2015, Company had received an advance amounting to Rs. 2,60,00,000/- from Sanofi India Limited for procurement of machinery, equipment and carrying out civil work for structural modification of manufacturing facility exclusively meant for Sanofi India Limited through an agreement dated 10th April, 2014 and addendum thereto dated 1st January, 2015. As per said agreement with Sanofi India Limited, it has adjusted Rs. 76,47,178 by way of monthly deductions by Sanofi India Limited equivalent to 20% of the Conversion and Packaging charges billed to Sanofi India Limited by Lactose (India) Limited in F.Y 2015-2016 out of total advance of Rs. 2,60,00,000/- and the balance of Rs.1,83,52,822 (P.Y.36,00,000/-) is disclosed under the head âOther Current liabilityâ and Rs. Nil (P.Y.Rs. 2,24,00,000/-) is disclosed under the head âOther Long term liabilityâ on estimated basis.
Note 5 : Segment Reporting Basis of preparation
In accordance with the requirements of Accounting Standard 17 âSegment Reportingâ, the Company''s business consists of one reportable business segment i.e., âManufacturing & Trading of Pharmaceutical Productsâ, hence no separate disclosures pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital Employed are given.
Note 6 : Previous year''s figures have been re-grouped / re-classified to conform to this year''s classification.
Mar 31, 2015
A. Terms & Conditions
The Company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity share is entitled to one vote per
share.
In the event of liquidation of the Company, the holder of equity shares
will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders
B. Increase in Authorised Share Capital
The Company in its Annual General Meeting held on 25th September, 2014
has increased its authorised share capital from Rs. 100,000,000/- divided
into 10,000,000 Equity Shares of Rs.10/- each to Rs. 120,000,000/- divided
into 12,000,000 Equity Shares of Rs.10/- each.
The Company in March, 2013 had made a preferential issue of 11,34,000
Convertible Warrants at a premium of Rs. 2.65 per warrant (Face value Rs.10
each) in accordance with SEBI guidelines and had received 25 % upfront
money amounting to Rs. 35,86,275. In terms of the issue, the Company had
converted 7,15,000 share warrants into 7,15,000 fully paid equity
shares of Rs. 10/- after receiving balance 75% amounting to Rs. 67,83,563/-
till 31st March, 2014
During the year, the Company has converted balance 4,19,000 share
warrants into 4,19,000 fully paid equity shares of Rs. 10/- each after
receiving balance 75% money on 26th June, 2014.
In terms of the issue, the amount so received from the above issue of
shares has been utilized for the working capital requirements of the
Company.
Other information regarding secured loans :
Term loan from banks :
a) Term loan from Oriental Bank of Commerce amounting to Rs. 17,39,73,439
(PY Rs. 17,96,33,190) is secured against hypothecation of Land and
Building, Plant and Machinery, Furniture and Fixtures, Vehicles and
other assets created out of the said Term loan. Loan is taken for the
specific purpose of expansion of capacity for manufacturing of Lactose
Monohydrate and Setting-up the new facility of Lactulose Solution. It
carries an interest rate 4.00% Base Rate. The loan is repayable in 60
equal monthly installments of Rs. 30,00,000 each, after a moratorium of
12 months, which has commenced from February, 2015. The interest is
payable as and when due. The Term Loan was sanctioned for Rs.
18,00,00,000.
b) Term loan from ICICI Bank amounting to USD 2,131,105 (equivalent to
INR 13,33,93,830) (P.Y Rs. Nil) is secured by Pari pasu Charge with
Oriental Bank of Commerce on present & future movable fixed assets,
Factory land & building and current assets of the company. It carries
an interest rate of 3 months LIBOR Rate 1.83% . The loan is repayable
in 9 equal quarterly installment of USD 88,800 and one last installment
of USD 1,332,003, starting from July,2015. Equitable mortgage on
residential premises of directors of the Company is also offered as a
collateral security. The loan is further secured by personal guarantees
by the directors and relative of directors of the company.
Vehicle loans from banks :
a) Vehicle loan from ICICI Bank amounting to Rs. 12,38,857/- (PY Rs.
19,62,258/- ) is secured against respective vehicle. It carries
interest rate of 10.60% p.a. and is repayable in 60 equal monthly
installment amounting to Rs. 74,749 each, starting from 1st November
2011.
b) Vehicle loan from ICICI Bank amounting to Rs. 12,38,864/- (PY Rs.
19,62,263/-) is secured against respective vehicle. It carries interest
rate of 10.60% p.a. and is repayable in 60 equal monthly installment
amounting to Rs. 74,749 each, starting from 1st November 2011.
c) Vehicle loan from Kotak Mahindra Bank amounting to Rs. 5,30,576 (PY Rs.
8,34,336) is secured against respective vehicle. It carries interest
rate of 12.20% p.a. and is repayable in 47 equal monthly installment
amounting to Rs. 32,400 each, starting from 10th November 2012.
d) Vehicle loan from Kotak Mahindra Bank amounting to Rs. 5,19,975 (PY Rs.
7,61,219) is secured against respective vehicle. It carries interest
rate of 11.40% p.a. and is repayable in 47 equal monthly installment
amounting to Rs. 26,300 each, starting from 20th March 2013.
Vehicle Loan from Others :
a) Vehicle loan from Kotak Mahindra Prime Limited amounting to Rs.
2,40,259 (PY Rs. 6,22,600) is secured against respective vehicle. It
carries interest rate of 9.46% p.a. and is repayable in 60 equal
monthly installment amounting to Rs. 35,415 each, starting from 1st
December 2010
b) Vehicle loan from Tata Capital Limited amounting to Rs. 3,43,130 (PY Rs.
5,29,414) is secured against respective vehicle. It carries interest
rate of 12.99% p.a. and is repayable in 60 equal monthly installment
amounting to Rs. 19,880 each, starting from 9th December 2011.
Loan from Directors / Inter Corporate Loans :
Loans from Directors and Inter Corporate Loans are unsecured and
repayable only after 31st March, 2016. The loans carry interest @ 14%
p.a.
Other Information regarding loans repayable on demand
a) Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.
2,95,33,233/- (PY Rs. 2,32,86,465) is secured against hypothecation of
stocks of raw materials, stock in process, finished goods, stores &
spares and trade receivables of the Company. It carries interest rate
of 13.90% (3.50% Base Rate of 10.40%).
b) Cash Credit Facility from ICICI Bank amounting to Rs. 72,27,950 (PY Rs.
Nil) is secured against hypothecation of stocks of raw materials, stock
in process, finished goods, stores & spares and trade receivables of
the Company ranking pari pasu with Oriental Bank of Commerce and second
pari pasu charge on future and present movable fixed assets of the
Company. Equitable mortgage of the residential premises of directors of
the Company is also given as a collateral security.The loan is further
secured by personal guarantees from directors and relative of
directors.
Note:
Interest paid or payable by the Company on the aforesaid principal
amount has been waived by the concerned suppliers.
Note 2 : Contingent Liabilities
As at As at
Particulars March 31, 2015 March 31,2014
Guarantee given by Bank on
behalf of the Company 805,000 455,000
Letter of Credit 11,358,199 11,727,450
Custom Duty against Export
Obligation (Refer Note below) 16,510,288 10,985,244
TOTAL 28,673,487 23,167,694
Note: The Company has obtained license under Export Promotion Capital
Goods Scheme (EPCG) for purchase of capital goods on zero percent
custom duty. Under the EPCG the Company needs to fulfill certain export
obligations, failing which, it is liable for payment of custom duty.
Export Obligations amounting to Rs. 48,82,86,691/- (PY Rs. 32,85,69,733 /-)
needs to be completed within 6 years from the date of purchase of
respective license.
Note 3 : Commitments
Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for is Rs. 1,48,39,714/ - (PY:
Rs. 7,39,39,966/-).
Note 4 :
In the opinion of the Board the Current Assets and Long Term Loans and
advances, are realisable in the ordinary course of business at least
equal to the amount at which they are stated in the Balance Sheet. The
provision for all known liabilities is adequate and not in excess of
amount reasonably necessary.
Note 5 :
Balances of trade receivables, payables, loans and advances are subject
to confirmation, reconciliation and consequential adjustment, if any.
Consequently revenue impact, presently is not ascertainable, will be
considered as and when determined.
Note 6 :
a) During the FY 2013-14, the Company had commenced production of its
upgraded manufacturing facility to manufacture up to 10000 metric tons
200 Mesh Lactose per year exclusively for Kerry Indegrients India
Private Limited (KIIPL) and accordingly as per the manufacturing
agreement with KIIPL , has recognised during the year income of Rs.
57,77,200 (P.Y. Rs. 33,70,033/-) on proportionate basis out of total
Advance Manufacturing Consideration amounting to Rs. 5,77,72,000 and the
balance of Rs. 57,77,200/ - (P.Y. Rs. 57,77,200/- is disclosed under the
head "Other Current liability" and Rs. 4,28,47,561/-(P.Y. Rs.
4,86,24,767/-) is disclosed under the head "Other Long term
liability".
b) During the year, Company has received an advance amounting to Rs.
2,60,00,000/- from Sanofi India Limted for procurement of machinery,
equipment and carrying out civil work for structural modification of
manufacturing facility exclusively meant for Sanofi India Limited
through an agreement dated 10th April, 2014 and addendum thereto dated
1st January, 2015.As per said agreement, advance payment is to be
adjusted by way of monthly deductions by Sanofi India Limited
equivalent to 20% of the Conversion and Packaging charges billed to
Sanofi India Limited by Lactose (India) Limited from F.Y
2015-2016.Accordingly, out of advance of Rs. 2,60,00,000/-, Rs. 36,00,000/-
is disclosed under the head "Other Current liability" and Rs.
2,24,00,000/- is disclosed under the head "Other Long term
liability" on estimated basis.
Note 7 : Segment Reporting Basis of preparation
In accordance with the requirements of Accounting Standard 17
"Segment Reporting", the Company's business consists of one
reportable business segment i.e., "Manufacturing & Trading of
Pharmaceutical Products", hence no separate disclosures pertaining to
attributable Revenues, Profits, Assets, Liabilities, Capital Employed
are given.
Note 8 : Depreciations
Effective from April 1,2014, the Company has charged depreciation on
its assets based on their useful life as stipulated under Schedule II
of the Companies Act, 2013. Due to this, the depreciation for the year
ended on 31st March, 2015 is lower by Rs.49,13,249/ - as compared to the
depreciation computed under the earlier provisions of the Companies
Act, 1956.
Mar 31, 2014
1.a. Terms & Conditions
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity share is entitled to one vote
per share.
In the event of liquidation of the Company, the holder of equity shares
will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
The Company in March 2013 had made a preferential issue of 11,34,000
Convertible Warrants at a premium of Rs. 2.65 per warrant (Face value
Rs. 10 each) in accordance with SEBI guidelines and had received 25 %
upfront money amounting to Rs. 35,86,275.
In terms of the issue out of the above.
a) 3,18,000 share warrants had been converted into 3,18,000 fully paid
equity shares of Rs. 10/- each at a premium of Rs. 2.65 per share on
18th March 2013 and had received Rs. 30,17,025 against the balance
amount receivable on warrants.
b) 3,97,000 share warrants have been converted into 3,97,000 fully paid
equity shares of Rs. 10/- each at a premium of Rs. 2.65 per share on
21st January 2014 and have received Rs. 37,66,538 against the balance
amount receivable on warrants.
c) Further, the Company on the balance 4,19,000 shares had received an
amount of Rs. 3,32,063 in addition to the 25 % upfront money and the
entire balance of Rs. 16,57,150 is reflected under Money received
against Convertible Share Warrants.
The total amount so received so received from the above issue of shares
has been utilized for the working capital requirements of the Company.
Other information regarding secured loans :
Term loan from banks :
a) Term loan from Oriental Bank of Commerce amounting to Rs.
17,96,33,190 (PY Rs. 4,17,90,616) is secured against hypothecation of
Building, Plant and Machinery, Furniture and Fixtures, Vehicles and
other assets created out of Term Loan. Loan is taken for the specific
purpose of expansion of capacity for manufacturing of Lactose
Monohydrate and Setting-up the new facility of Lactulose Solution in
the factory. It carries an interest rate of 14.40 % (4.00% Base Rate
of 10.40%). The loan is repayable in 60 equal monthly installments of
Rs. 30,00,000 each, after a moratorium of 12 months, starting from the
February, 2014. However, at the specific request of the Company, the
bank has extended the date of repayment by a year i.e. from February
2014 to February 2015. The interest is payable as and when due. The
Term Loan is sanctioned for Rs. 18,00,00,000.
Vehicle loans from banks :
a) Vehicle loan from HDFC Bank amounting to Rs. NIL (PY Rs. 74,724) is
secured against respective vehicle. It carries interest rate of 10.14%
p.a. and is repayable in 36 equal monthly installment amounting to Rs.
12,825 each, starting from 7th October 2010.
b) Vehicle loan from ICICI Bank amounting to Rs. NIL (PY Rs. 82,779) is
secured against respective vehicle. It carries interest rate of 12.99%
p.a. and is repayable in 36 equal monthly installment amounting to Rs.
12,533 each, starting from 15th November 2010.
c) Vehicle loan from ICICI Bank amounting to Rs. 19,62,258/- (PY Rs.
26,13,178) is secured against respective vehicle. It carries interest
rate of 10.60% p.a. and is repayable in 60 equal monthly installment
amounting to Rs. 74,749 each, starting from 1st November 2011.
d) Vehicle loan from ICICI Bank amounting to Rs. 19,62,263/- (PY Rs.
26,13,181) is secured against respective vehicle. It carries interest
rate of 10.60% p.a. and is repayable in 60 equal monthly installment
amounting to Rs. 74,749 each, starting from 1st November 2011.
e) Vehicle loan from Kotak Mahindra Bank amounting to Rs. 8,34,336 (PY
Rs. 11,03,429) is secured against respective vehicle. It carries
interest rate of 12.20% p.a. and is repayable in 47 equal monthly
installment amounting to Rs. 32,400 each, starting from 10th November
2012.
f) Vehicle loan from Kotak Mahindra Bank amounting to Rs. 7,61,219 (PY
Rs. 9,76,614) is secured against respective vehicle. It carries
interest rate of 11.40% p.a. and is repayable in 47 equal monthly
installment amounting to Rs. 26,300 each, starting from 20th March
2013.
Vehicle Loan from Others :
a) Vehicle loan from Kotak Mahindra Prime Limited amounting to Rs.
6,22,600 (PY Rs. 9,70,531) is secured against earmarked vehicle. It
carries interest rate of 9.46% p.a. and is repayable in 60 equal
monthly installment amounting to Rs. 35,415 each, starting from 1st
December 2010
b) Vehicle loan from Tata Capital Limited amounting to Rs. 5,29,414 (PY
Rs. 6,95,211) is secured against earmarked vehicle. It carries interest
rate of 12.99% p.a. and is repayable in 60 equal monthly installment
amounting to Rs. 19,880 each, starting from 9th December 2011.
Loan from Directors / Inter Corporate Loans :
Loans from Directors and Inter Corporate Loans are unsecured and
repayable only after financial year 2020-21. The loans carry interest @
14% p.a.
Other Information regarding loans repayable on demands
a) Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.
2,32,86,465 (PY Rs. 2,81,08,037) is secured against hypothecation of
stocks of raw material, stock in process, finished goods, stores &
spares and Trade receivables of the Company. It carries interest rate
of 13.90% (3.50% Base Rate of 10.40%).
Note: The Company had during the earlier years received an amount of
Rs. 1,90,00,000 from Kerry Ingredients Private Limited (KIIPL) for
transfer of Company''s customers as per the manufacturing agreement
executed on 11th January, 2013. During the Current year in terms of
Manufacturing Agreement, the Comapny has transferred its entire
customers to KIIPL and accordingly the amount received has been
recognized as income under exceptional item.
Note 2 : Contingent Liabilities
As at As at
Particulars March 31, 2014 March 31,2013
Guarantee given by Bank on 455,000 455,000
behalf of the Company
Letter of Credit 11,727,450 -
TOTAL 12,182,450 455,000
Note 3 : Commitments
Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for is Rs. 7,39,39,966/ -
(PY: Rs. 48,65,059).
Note 4 :
In the opinion of the Board the Current Assets and Long Term Loans and
advances, are realisable in the ordinary course of business atleast
equal to the amount at which they are stated in the Balance Sheet. The
provision for all known liabilities is adequate and not in excess of
amount reasonably necessary.
Note 5 :
During the FY 2013-14, the Company has commenced Commercial production
of its upgraded manufacturing facility to produce Lactose exclusively
for Kerry Indegrients India Private Limited (KIIPL) from 1st September,
2013 and accordingly as per the manufacturing agreement with KIIPL
dated 11th January, 2013, has recognised income of Rs. 33,70,033 (P.Y.
Nil) on proportionate basis out of total Advance Manufacturing
Consideration amounting to Rs. 5,77,72,000 and the balance Rs.
5,44,01,967 is disclosed as liabilities under Note no. 7 of the
financial statements.
Note 6 : Segment Reporting Basis of preparation
In accordance with the requirements of Accounting Standard 17 "Segment
Reporting", the Company''s business consists of one reportable business
segment i.e., "Manufacturing & Trading of Pharmaceutical Products",
hence no separate disclosures pertaining to attributable Revenues,
Profits, Assets, Liabilities, Capital Employed are given.
Secondary segment reporting is on the basis of geographical location of
the customers. The operation of the Company comprises local sales and
export sales. The management views the Indian market and Export market
as distinct geographical segments. The following is the distribution of
the Company''s sales by geographical markets:
Note 7 :
Previous year''s figures have been re-grouped re-classified to conform
to this year''s classification.
Mar 31, 2013
Note 1 :
In the opinion of the Board the Current Assets and Long Term Loans and
advances, are realisable in the ordinary course of business atleast
equal to the amount at which they are stated in the Balance Sheet. The
provision for all known liabilities is adequate and not in excess of
amount reasonably necessary.
Note 2:
Balances of trade receivables, payables, loans and advances are subject
to confirmation, reconciliation and consequential adjustment, if any.
Consequently revenue impact, presently is not ascertainable, will be
considered as and when determined.
Note 3:
a) During the F.Y 2011-12, the Company had received from Kerry
Ingredients India Private Limited (Kerry) a sum of Rs. 767.72 lacs for
expansion of production capacity and others measures for strengthening
of business and the same had been reflected as Liabilities in the
financial statements for the year ended 31st March 2012 in absence of
any agreement with Kerry.
b) During the current year, the Company has executed a Manufacturing
Agreement with Kerry on 11th January, 2013 and as per the terms of the
agreement the said sum Rs. 767.72 has been received as follows:
I. Rs. 190 Lacs has been received for the purchase of Company''s
customers for such products. The said sum will be accounted for as
Income in the year when the Company''s customers will be transferred to
Kerry,
ii. Rs. 577:72 Lacs has been received as Advance Manufacturing
Consideration by the Company on having agreed to upgrade its plant and
produce up to 10000 metric tons. 200 Mesh Lactose per year exclusively
for Kerry. This Consideration shall be apportioned over a period of 10
years from the commencement date which is the date on which the Company
commences the production of the upgraded manufacturing facility as
agreed in the Manufacturing Agreement.
Accordingly, the said sum of Rs. 767.72 Lacs has been reflected as
current / long term liability as the case may in the in the Financial
Statements for the year ended 31st March 2013.
Note 4:
The previous year''s figures have been re-grouped / re-classified to
conform to this year''s classification.
Mar 31, 2012
A) During the year, in order to comply with Accounting Standsed (AS) 15
(Revised 2005) "Employee Benefits" as notified by the Companies
(Accounting Standard) Rule 2006, the method of accounting of Gratuity
has been from cash basis to accrual basis of accounting.
(Refer Note 32)
c. Terms & Conditions
The Company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity share is entitled to one vote per
share.
'In the event of liquidation of the Company, the holder of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of aH preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholder
During the year, the Company has received balance amount of government
grants amounting to Rs. 25,00,000 (PY Rs. 25,00,000) under the scheme
for ÃTechnology Up gradation / Establishment / Modernization of Food
Processing Industries'' from Ministry of Food Processing Industries
for the expansion of Milk Processing Unit of the Company at Vadodara -
Gujarat and the same has been credited to Capital Reserves. ''
Other information regarding secured loans : Term loan from banks :
a) Term loan from Oriental Bank of Commerce amounting to 130,59,413 (PY
t Nil) is secured against hypothecation of assets to be created at a
total cost of Rs. 60,00,000. Loan is taken for the specific purpose of
setting up a new Effluent Treatment Plant in the factory. It carries an
interest rate of 15.25 % (4.50% Base Rate of 10.75%). The loan is
repayable in 36 equal monthly installments of 1 1,25,000 each, after a
moratorium of 1 month, starting from the September, 2012. The interest
is payable as and when due.
b) Working Capital Term Loan (WCTL) from Oriental Bank of Commerce
amounting to Rs. 71,44,382 (PY Rs. Nil) is secured by hypothecation of raw
materials, stock in trade, finished goods, stores & spares and
receivables. It carries interest rate of 15.25 % (4.50% Base Rate of
10.75%). The WCTL is repayable in 35 equal monthly installments of t
2,43,000 each, starting from September, 2012. ,
Vehicle loans from banks :
a) Vehicle loan from ICICI Bank amounting to Rs. 2,13070 (PY Rs. 3,27,563)
is secured against respective vehitle. It carries interest rate of
12.99% p.a. and is repayable in 36 equal monthly installment amounting
to Rs. 12,533 each, starting from 15th November 2010 to 15th October,
2013. .
b) Vehicle loan from ICICI Bank amounting to Rs. 31,98,880 (PY Rs. Nil) is
secured against respective vehicle. It carries interest rate of 10.60%
p.a. and is repayable in 60 equal monthly installment amounting to Rs.
74,749 each, starting from 1st November 2011 to 1st September, 2016.
c) Vehicle loan from ICICI Bank amounting to Rs. 31,98,880 (PY Rs. Nil) is
secured against respective vehicle. It carries interest rate of 10.60%
p.a. and is repayable in 60 equal monthly installment amounting to f
74,749 each, starting from 1st November 2011 to 1st September, 2016.
d) Vehicle loan from HDFC Bank amounting to Rs. 2,13,315 (PY Rs. 3,38,596)
is secured against respective vehicle. It carries interest rate of
10.14% p.a. and is repayable in 36 equal monthly installment amounting
to Rs.12,825 each, starting from 7th October 2010 to 7th September, 2013.
Vehicle Loan from Others:
a) Vehicle loan from Kotak Mahindra Prime Limited amounting to Rs.
12,87,149 (PY Rs. 15,75,271) is secured against earmarked vehicle. It
carries interest rate of 9.46%.p.a. and is repayable in 60 equal
monthly installment amounting to Rs. 35,415 each, starting from 1st
December 2010 to 1st October, 2015.
b) Vehicle loan from Tata Capital Limited amounting to Rs. 8,42,970 (PY
Rs.. Nil) is secured against earmarked vehicle. It carries interest rate
of 12.99% p.a. and is repayable in 60 equal monthly installment
amounting to Rs. 19,880 each, starting from first advance installment on
14th November 2011 & balance from 9th December 2011 to 9th October,
2016.
Other Information regarding loans repayable on demands
a) Cash Credit Facility from Oriental Bank of Commerce amounting to Rs.
2,71,21,906 (PVT 4,68,96,455) is secured against hypothecation of
stocks of raw material, stock in process, finished goods, stores &
spares and receivables of the Company.
It carries interest rate of 15.25% (4.50% Base Rate of 10.75%).
b) Packing Credit Facility from Oriental Bank of Commerce amounting to
Rs. 50,80,000 (PY Rs. 37,50,000) is secured against hypothecation of paid
stock meant for export and advance shall be covered under whole
turnover packing credit gaurantee obtained by the bank from ECGC. The
rate of interest is as per the directives & guidelines issued by the
Reserve Bank of ' India from time to time.
Note 1:
In the opinion of the Board the Current Assets and Long Term Loans and
advances, are realisable in the ordinary course of business atleast
equal to the amount at which they are stated in the Balance Sheet. The
provision for all known liabilities is adequate and not in excess of
amount reasonably necessary.
Note 2:
Balances of trade receivables, payables, loans and advances are subject
to confirmation, reconciliation and consequential adjustment, if any.
Consequently revenue impact, presently is not ascertainable, will be
considered as and when determined.
Note 3 :
During the year, in order to comply with the Accounting Standard (AS)
15 (Revised 2005) "Employee Benefits" as notified by the Companies
(Accounting Standard) Rules 2006, the method of accounting of Gratuity
has been changed from cash jbasis to accrual basis of accounting.
Gratuity has been provided on the basis of actuarial valuation. Due to
change, in this accounting policy, the profit for the period is lower
by Rs. 4,16,443 having consequential effect on the Reserves and Surplus
and Current & Non Current Liabilities. As per the Guidance on
Implementing Accounting Standard (AS) 15, Employee Benefits (Revisad
2005), - issued by the Accounting Standard Board of the Institute of
Chatered Accountants of India, the liability upto the previous year
i.e. 31st March, 2011 amounting to Rs. 27,90,046 has been reflected as a
Prior Period Item.
Note 4:
During the year, based on certain commercial negotiations, the Company
has received from Kerry Ingredients Private limited a sum of Rs.
7,67,72,000 for expansion of production capacity and others measures
for strengthening of business and Rs. 3,36,81,113 as an advance against
goods to be supplied by the Company. The final terms & conditions of
these transactions are sbill under negotiation. Till then the said
amounts have been reflected as "other long term liabilities" and
"advance from customers" respectively in the financial statements.
Note 5: Contingent Liabilities
Particulars As at As at
March 31
, 2012 March 31
, 2011
Guarantee given by Bank on
behalf of the Company 515,750 l 65,750
TOTAL 515,750 165,750
Note 6 : Segment Reporting Basis of preparation
In accordance with the requirements of Ac mting Standard 17 "Segment
Reporting", the Company's business consist:; of one reportable
business segment i.e., "Manufar & Trading of Pharmaceutical
Products", hence no separate disclosures pertaining to attributable
Revenues, Profits, Assets, L Cities, Capital Employed are given.
Secondary segment reporting is on the basis of geographical location of
the customers. The operation of the Company comprises local sales and
export sales. The management views the Indian market and Export market
as distinct geographical segments. The following is the distribution of
the Company''s sales by geographical markets:
Note 7:
Till the year ended 31st March 2011, the Company was using pre-revised
schedule VI to the Companies Act 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March, 2012, the revised schedule VI notified under the Companies Act,
1956 has become applicable to the Company. The Company has re- grouped,
reclassified and/or re-arranged previous year''s figures, wherever
necessary to conform to currert year''s classification. The adoption
of revised schedule VI does not impact recognition and measurement
principleslollowed for preparation of financial statements. However, it
has significant impact on presentation and disclosures jnade in the
financial statements applicable in the current year. (See Note Annexure
"1")
Mar 31, 2010
1. Liabilities in respect of Gratuities and Leave Encashment are
accounted for on cash basis which is not in conformity with Accounting
Standard (AS) 15 (Revised 2005) on Employee Benefits as notified by the
Companies (Accounting Standards) Rules, 2006 which requires that
Gratuity and Leave Encashment be accounted for on accrual basis.
2. Contingent Liabilities not provided for :
i) Guarantee given by Banks on behalf of the Company Rs. 1.05 lacs.
(Previous year Rs. 1.21 lacs)
ii) Estimated amount of contracts remaining to be executed on capital
account is Rs. Nil (Previous year Rs.58.75 lacs)
iii) Income Tax Demands which are under dispute and is being contested
by the Company by the way of appeal with ITAT Rs.111.15 Lacs (Previous
year Rs.111.15 Lacs). Amount Paid Rs.55.10 Lacs (Previous year Rs.55.10
Lacs)
iv) Guarantee to Assistant Commissioner of Central Excise on behalf of
other Company is NIL. (Previ- ous year Rs.100 Lacs)
3. In the opinion of the Board the Current Assets, Loans & Advances
are approximately of the value stated and are realisable in the
ordinary course of business except for those which are considered
doubtful and provided for. The provisions for all known liabilities are
adequate and not in excess of the amount reasonably necessary.
4. Balances of sundry debtors, creditors, loans and advances including
cash held at Baroda are subject to confirmation, reconciliation and
consequential adjustment, if any.
5. Secured Loans:
i) Term Loans from Banks:
Term Loan I - Rs.64.50 Lacs ** (Previous year Rs. 34.09 Lacs) is
secured by Equitable Mortgage of Plant & Machinery, Furniture &
Fixtures and Other Fixed Assets.
Term Loan II - Rs.146.79 Lacs** (Previous year Rs. 162.80 Lacs) is
secured by Equitable Mortgage of Plant & Machinery, Furniture &
Fixtures and Other Fixed Assets.
ii) Working Capital Loans from Banks:
a) Cash Credit Loan**:
Rs.368.20 Lacs (Previous year Rs. 400.66 Lacs) is secured by
hypothecation of Stocks and Book Debts.
b) Packing Credit Loan:
Rs.4.9 Lacs (Previous year Rs27.90 Lacs) is secured by hypothecation of
Stocks and Book Debts of export division and the personal guarantee of
promoter directors.
iii) Vehicle Loans (Hire Purchase Loan):
Rs.30.48Lacs (Previous year Rs 42.55 Lacs) is secured by specific
assets financed.
**Term Loans and Cash Credit Loans are further collaterally secured by:
- Equitable Mortgage over Factory Land.
- Hypothecation of all Movable Assets of the Company.
- Personal Guarantee of Directors of the Company.
6. Additional Information Pursuant to the Provisions of Part II of the
Schedule VI of the Companies Act 1956
i) Quantitative Information:
i) Installed Capacity 2500 MT
Note: - Figures in brackets are pertaining to the previous year.
Notes: 1) Licensed capacity is not applicable
2) All capacities are expressed on triple shift basis
3) The installed capacities are as per the certificate given by the
Executive Director on which the Auditors have relied, being a technical
matter.
7. Amounts due to Micro, Small and Medium Enterprises:
The name of the Micro, Small and Medium Enterprises suppliers defined
under "The Micro, Small and Medium Enterprises Development Act 2006
could not be identified, as necessary evidence is not in the possession
of the Company.
Note:
The Basic EPS is calculated by dividing the net profit after tax for
the year by the weighted average number of equity shares outstanding
during the year.
8. Taxation:
i) Provision for taxation for the year has been made in accordance with
the provisions of the Income Tax Act, 1961.
ii) In terms of Accounting Standard 22 on "Accounting for Taxes on
Income", the Company has recognised st Deferred Tax Liabilities
amounting to Rs.25.17 lacs for the year ended 31 March 2010 in the
Profit & Loss Account.
9. Segmental Information:
i) Primary (Business) Segment:
In accordance with the requirements of Accounting Standard 17 "Segment
Reporting", the Companys business consists of one reportable business
segment i.e., "Manufacturing & Trading of Pharmaceutical Products",
hence no separate disclosures pertaining to attributable Revenues,
Profits, Assets, Liabilities, Capital Employed are given.
10. Advances recoverable in cash or in kind includes advance paid for
office premises to a relative of the directors amounting to Rs. 135.00
lacs (P.Y Rs. 131.91 lacs). The registration and stamp duty for the
transfer of the premises is under process.
11. Related Party Disclosures:
As required under Accounting Standard 18 "Related Party Disclosure",
following are the details of transactions during the year with the
related parties of the Company as defined in AS 18:
i) For the year ended 31st March, 2010
a) Key Management Personnel
Mr. S. M. Maheshwari Director
Mr. Atul Maheshwari Director
b) Relative of Director and Name of the enterprises having same Key
Management Personnel and / or their relatives as the reporting
enterprise with whom the Company has entered into transactions during
the year.
- Mrs. Sangita Maheshwari
- Madhusha Projects Private Limited
Note: Related Parties are as disclosed by the Management and relied
upon by the Auditors.
i) For the year ended 31st March, 2009
a) Key Management Personnel
Mr. S. M. Maheshwari Director
Mr. Atul Maheshwari Director
Mr. Anand Sharma Director
(Upto 04.04.2008)
b) Name of the enterprises having same Key Management Personnel and /
or their relatives as the reporting enterprise with whom the Company
has entered into transactions during the year.
- Mrs. Sangita Maheshwari
- Madhusha Projects Private Ltd
Note: Related Parties are as disclosed by the Management and relied
upon by the Auditors.
12. During the year, the company has raised funds amounting to Rs.
29.52 lacs through the conversion of share warrants which were issued
in previous years.
13. Figures of the previous year have been regrouped, reclassified
and/or rearranged wherever necessary.