Mar 31, 2018
1. Financial Instrument
a. All foreign currency denominated assets and liabilities are translated using exchange rate at the reporting date.
b. The fair value of the investment in Unquoted Equity Shares of BIDC are measured at cost.
Credit Risk
Trade receivables Customer Credit Risk is manages by business unit subject to Company''s established policy and procedures. Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The company has no concentration of credit risk as the customer base is widely distributed both economically and geographically. An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on account of time value of money and credit risk. For the purpose of this analysis, the receivables are categorized into group based on types of receivables. Each group is then assessed for impairment using the Expect Credit Loss (ECL) model as per the provisions of Ind AS 109 - Financial instruments. The calculation is based provision matrix which considers actual historical data adjusted appropriately for the future expectations and probabilities. Receivables from group companies and secured receivable are excluded for the purposes of this analysis since no credit risk is perceived on them. The loss rates are based on actual credit loss experience over past years. These loss rates are then adjusted appropriately to reflect differences between current and historical economic conditions and the company''s view of economic conditions overt he expected lives of the receivables.
Foreign Currency Risk
Foreign Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchanges rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (When revenue or expenses denominated in a foreign currency).
Liquidity Risk:
Liquidity Risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly close to its fair value. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing at an optimized cost.
Provident Fund dues amounting to 59,70,674/- and ESI dues amounting to 16,42,003/- paid during the year being defined contributions have been charged to the Profit and Loss Account.
No Provision for Short Term Compensated absences is required as at the yearend as per the policy of the Management.
The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible for gratuity @15 days salary (last drawn) for every completed year of service with a overall ceiling of 10 lakhs. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India ( a qualifying policy) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.
The estimates of rate escalation in salary is considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2017-18
The plan typically expose the Company to actuarial risks such as: interest rate risk, liquidity risk, salary escalation risk and regulatory risk.
Interest Rate Risk:
The plan exposes the Company to the risk off all in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability(as shown in financial statements.)
Liquidity Risk:
This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due to non-availability of enough cash/cash equivalent to meet the liabilities or holding of liquid assets not being sold in time.
Salary Escalation Risk:
The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.
Regulatory Risk:
Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity pay-outs (e.g. Increase in the maximum limit on gratuity of Rs. 10,00,000)
2. Related Party Transactions
The Company has identified all the related parties having transactions during the year in line with Accounting Standard 18. Details of the same areas under
List of Related Parties
Name of Related Parties Nature of Relationship
Mr. R. R. Shah Managing Director
Mr. D. R. Shah Executive Director
Mr. Paresh Mistry (w.e.f.01.10.17) Additional Director
Mercury Antibiotics Pvt. Ltd. An enterprise Managed by the Relatives of Directors
JAS Healthcare Inc. An enterprise in which director & his relative is director
Bio-Med India A Concern in which Directors are Partner
Mercury Marketing & Consulting Services A Concern in which Directors are Partner
Dilip R. Shah (H.U.F.) Relatives of Director
Kaumudiniben R. Shah Relatives of Director
Kishoriben D. Shah Relatives of Director
R. R. Shah( H.U.F) Relatives of Director
Adit D. Shah Relatives of Director
Janki R. Shah Relatives of Director
Payal Doshi CFO
Mukesh Khanna Company Secretary
3. Impairment of Assets
As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert. In terms of the same and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for same during year under report.
4. First Time Adoption of Ind As
The Company has followed the provisions of Ind AS 101-âFirst Time adoption of Indian Accounting Standardsâ (Ind AS 101), in preparing its opening Ind AS Balance Sheet as of the date of transition, i.e. April 1, 2016. In accordance with Ind AS 101, the Company has presented reconciliations of Shareholdersâ equity under Previous GAAP and Ind ASs as at March 31, 2017, and April 1, 2016 and of the Profit/(Loss) after Tax as per Previous GAAP and Total Comprehensive Income under Ind AS for the year ended March 31,2017.
5. Reconciliations between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive Income and cash flows for prior periods. The following table represent the reconciliations from erstwhile Indian GAAP to Ind AS.
Reconciliation of results between previous Indian GAAP and Ind AS
6. There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.
7. The figures in respect of previous year have been re-grouped / recast wherever necessary to confirm to the current year''s classification.
Mar 31, 2016
1. I n the opinion of the Board, all assets which are considered good (other than Fixed Assets and Non- Current Investments ) are expected to realized at least the amount at which they are stated, If realized In the ordinary course of business. Further in the opinion of the Beard, provision for all known liabilities has been adequately made in the accounts and as per management experience and estimates, no additional provisions are required.
2. POST EMPLOYMENT BENEFITS :
Provided Fund and ESI dues paid during the year being defined contributions have been charged to the Profit and Loss Account
In accordance with the policy for accounting for Gratuity Obligation, Gratuity Fund Contribution to the tune of Rs. 7,42,241/- (being current service cost) has been debited to the Profit and Loss Account for the year.
Further in terms of Actuarial Valuation carried out by the Insurer, the Present Value of Obligations as at the yearend comes to Rs. 76,62,067/- (PY Rs. 77,43,743/-} against which the Fair Value of Plan Assets comes to Rs. 86,16,404/- {PY Rs. 65, SO ,272/-) resulting a net asset of Rs. 9,54,337/- (PY Rs. 8,36,529/-).
3. RELATED PARTY TRANSACTIONS :
The Company has identified all the related parties having transactions during the year in line with Accounting Standard 18. Details of the same areas under
(a) LIST OF RELATED PARTIES :
Name of Related Parties Nature of Relationship
Mr. R .R. Shah Managing Director
Mr. D. R. Shah Executive Director
Mercury Antibiotics Pvt. Ltd. An enterprise Managed by the Relatives of Directors
Bio- Med India A Concern in which Directors are Partner
Mercury Marketing & Consulting Services A Concern in which Directors are Partner
D. R. Shah (H.U.F) Relatives of Director
Kaumudiniben R. Shah Relatives of Director
Kishoriben D. Shah Relatives of Director
R.R. Shah( H.U.F) Relatives of Director
Adit D. Shah Relatives of Director
Jankl R. Shah Relatives of Director
4. Impairment of Assets :
As a tool to measure to the value of fixed assets, the Company has considered the technical Valuation carried out by expert. In terms of the same and further in absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for same during year under report.
5. The figures in respect of previous year have been re-grouped / recast wherever necessary to confirm to (he current year''s classification.
Mar 31, 2015
1. General Information of the Company.
Mercury Laboratories the registered partnership firm started its
business activity in the year 1962. Subsequently it converted into
Private Ltd. Company, & incorporated in the year 1982. Later it further
converted into Limited Company in the year 1992 in state of
Maharashtra. The company has obtained ISO 9001:2008 registration and
engaged in the business of Pharmaceutical items. The company is profit
making and dividend paying Public Limited Company.
The Company made its public issue in the year 1992 and is listed on the
OTC Stock Exchange.
2. Note on amalgamation:
Mercury Laboratories Limited (MLL) (Transferee Company) was
incorporated in the year 1992 and engaged in the business of
manufacturing, exporting & importing of Pharmaceutical Drugs &
Medicines. Mercury Antibiotics Private Limited (MAPL) (Transferor
Company) was incorporated in the year 1989 and it is engaged in the
business of manufacturing, importing, exporting of pharmaceutical
Drugs, Medicines formulations, Bulk Drugs including a wide variety of
Oral Dosage Products such as Liquids, Syrups and Dry Powder based
medicinal products. Both the Companies have been promoted by Shri Dilip
R. Shah & Shri Rajendra R. Shah having a several decades of experience
and standing in the pharmaceutical companies.
The Board of Directors of MAPL (Transferor Company) & the Board of
Directors of MLL (Transferee Company) have respectively passed the
resolutions on 05th January, 2012 to amalgamate both the companies. The
scheme of amalgamation has been presented under Section 391 to Section
394 of the Companies Act, 1956 to Honorable High Court at Mumbai
(Maharastra).
The Board of Directors has passed the resolution dated 3rd April, 2014
after due deliberation and decided to withdraw the application made to
Honorable High Court of Mumbai for amalgamation of the two companies
decided in the earlier year.
3. Share Capital
(a) The Company has a single class of equity shares which are having
par value of Rs. 10 per equity share. All shares rank pari passu with
reference to all rights relating thereto. Each Shareholder is eligible
for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all
preferential amounts, in proportions to their shareholding.
4. SECURED LOAN
The State Bank of India has sanctioned various credit facilities which
are working capital finance, Export Credit facility & FCNRB which is
secured by way of Equitable mortgage over factory, land & building at
Vadodara & at Jarod, District Vadodara & against Hypothecation charged
over Plant & Machinery at Baroda & Jarod & against the stock of
inventories & book-debts of the company.
UNSECURED DEPOSITS
The amount taken as deposits from directors and members are unsecured
and are for the period of 36 months. Interest on unsecured deposits has
been paid at the rate of 8 percent.
5. Micro and Small Enterprises
With reference to amounts shown as payable to Micro, Small and Medium
Enterprises, the information has been compiled in respect of parties to
the extent they could be identified as Micro, Small and Medium
Enterprises on the basis of information collected and available with
the Company and same has been relied upon by the auditors. The Company
deals with various Micro Small and Medium Enterprises on mutually
accepted terms and conditions. No interest is payable if the mutual
terms are adhered to by the Company.
Accordingly, no interest has been paid during the year and further no
provision for interest payable to such units is required or has been
made under Micro, Small and Medium Enterprises Development Act, 2006.
Hence, information as required under Schedule VI of the Companies Act,
1956 relating to delayed payments and interest on delayed payments to
Micro, Medium and Small Enterprises has not been compiled and
presented.
6. CONTINGENT LIABILITIES AND COMMITMENTS :
31/03/2015 31/03/2014
(Rs) (Rs.)
Contingent Liabilities
Claims against the Company not 21,82,587 29,59,359
acknowledged as debt
Guarantees (Bank Gurantee) 68,88,570 65,29,253
Other Moneys for which Company is - -
contingently liable
TOTAL Rs. 90,71,157 94,88,612
Commitments
Estimated amounts of contracts
remaining to be executed on capital - -
account and not provided for
Uncalled liability on shares or - -
investments partly paid
Other Commitments - -
TOTAL Rs. - -
7. In the opinion of the Board, all assets which are considered good
( other than Fixed Assets and Non- Current Investments) are expected to
realised at least the amount at which they are stated, if realised in
the ordinary course of business. Further in the opinion of the Board,
provision for all known liabilities has been adequately made in the
accounts and as per management experience and estimates, no additional
provisions are required.
8. POST EMPLOYMENT BENEFITS :
Providend Fund and ESI dues paid during the year being defined
contributions have been charged to the Profit and Loss Account.
In accordance with the policy for accounting for Gratuity Obligation,
Gratuity Fund Contribution to the tune of Rs. 4,93,069/- (being current
service cost) has been debited to the Profit and Loss Account for the
year.
Further in terms of Actuarial Valuation carried out by the Insurer, the
Present Value of Obligations as at the year end comes to Rs.
77,43,743/- (PY Rs. 67,61,967/-) against which the Fair Value of Plan
Assets comes to Rs. 8580272/- (PY Rs.78,82,799/-) resulting a net asset
of Rs. 8,36,529/- (PY Rs. 11,20,833/-).
Method Used Projected Unit Credit Method
Actuarial Assumptions Used
Mortality Rate LIC (1994-96)
Discount Rate 8%
Expected Return on Plan Assets 9%
Salary Escalation Rate 7%
Withdrawal Rate 1% to 3% depending
Major Categories of Plan Assets Insurer Managed Funds -100%
9. RELATED PARTY TRANSCATIONS
The Company has identified all the related parties having transactions
during the year in line with Accounting Standard 18. Details of the
same are as under
(a) LIST OF RELATED PARTIES :
Name of Related Parties Nature of Relationship
Mr. R .R. Shah Managing Director
Mr. D.R. Shah Executive Director
Mercury Antibiotics Pvt. Ltd. An enterprise Managed by the
Relatives of Directors
Bio- Med India A Concern in which Directors are
Partner
Mercury Marketing & Consulting A Concern in which Directors are
Services Partner
Kusumben R. Shah Relatives of Director
Kaumudiniben R. Shah Relatives of Director
Kishoriben D. Shah Relatives of Director
R.R. Shah( H.U.F) Relatives of Director
Adit D. Shah Relatives of Director
Janki R. Shah Relatives of Director
10. Impairment of Assets :
As a tool to measure to the value of fixed assets, the Company has
considered the technical Valuation carried out by expert. In terms of
the same and further in absence of any indications, external or
internal, as to any probable impairment of assets, no provision has
been made for same during year under report.
11. The figures in respect of previous year have been re-grouped /
recast wherever necessary to confirm to the current year's
classification.
Mar 31, 2014
1. General Information of the Company.
Mercury Laboratories the registered partnership firm started its
business activity in the year 1962. Subsequently it converted into
Private Ltd. Company, & incorporated in the year 1982. Later it further
converted into Limited Company in the year 1992 in state of
Maharashtra. The company has obtained ISO 9001:2008 registration and
engaged in the business of Pharmaceutical items. The company is profit
making and dividend paying Public Limited Company.
The Company made its public issue in the year 1992 and is listed on the
OTC Stock Exchange.
2. Note on amalgamation:
Mercury Laboratories Limited (MLL) (Transferee Company) was
incorporated in the year 1992 and engaged in the business of
manufacturing, exporting & importing of Pharmaceutical Drugs &
Medicines. Mercury Antibiotics Private Limited (MAPL) (Transferor
Company) was incorporated in the year 1989 and it is engaged in the
business of manufacturing, importing, exporting of pharmaceutical
Drugs, Medicines formulations, Bulk Drugs including a wide variety of
Oral Dosage Products such as Liquids, Syrups and Dry Powder based
medicinal products. Both the Companies have been promoted by Shri Dilip
R. Shah & Shri Rajendra R. Shah having a several decades of experience
and standing in the pharmaceutical companies.
The Board of Directors of MAPL (Transferor Company) & the Board of
Directors of MLL (Transferee Company) have respectively passed the
resolutions on 05th January, 2012 to amalgamate both the companies. The
scheme of amalgamation has been presented under Section 391 to Section
394 of the Companies Act, 1956 to Honorable High Court at Mumbai
(Maharastra).
The Board has passed the resolution dated 3rd April, 2014 after due
deliberation and decided to withdraw the application made to Honorable
High Court of Mumbai for amalgamation of the two companies decided in
the earlier year.
3. The Company has a single class of equity shares which are having
par value of Rs. 10 per equity share. All shares rank pari passu with
reference to all rights relating thereto. Each Shareholder is eligible
for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all
preferential amounts, in proportions to their shareholding.
SECURED LOAN
The State Bank of India has sanctioned various credit facilities which
are working capital finance, Export Credit facility & FCNRB which is
secured by way of Equitable mortgage over factory, land & building at
Vadodara & at Jarod, District Vadodara & against Hypothecation charged
over Plant & Machinery at Baroda & Jarod & against the stock of
inventories & book-debts of the company.
UNSECURED LOAN The amount to taken as unsecured loan from directors are
usually payable on demand but the company reserves it right to differ
the payment of the some for a period exceeding 12 months. Interest on
unsecured loan''s has been paid at the rate of 8 percent.
Micro and Small Enterprises:
With reference to amounts shown as payable to Micro, Small and Medium
Enterprises, the information has been compiled in respect of parties to
the extent they could be identified as Micro, Small and Medium
Enterprises on the basis of information collected and available with
the Company and same has been relied upon by the auditors. The Company
deals with various Micro Small and Medium Enterprises on mutually
accepted terms and conditions. No interest is payable if the mutual
terms are adhered to by the Company.
Accordingly, no interest has been paid during the year and further no
provision for interest payable to such units is required or has been
made under Micro, Small and Medium Enterprises Development Act, 2006.
Hence, information as required under Schedule VI of the Companies Act,
1956 relating to delayed payments and interest on delayed payments to
Micro, Medium and Small Enterprises has not been compiled and
presented.
4. CONTINGENT LIABILITIES AND COMMITMENTS :
31/03/2014 31/03/2013
(Rs.) (Rs.)
Contingent Liabilities
Claims against the Company not 2,959,359 2,810,369
acknowledged as debt
Guarantees (Bank Gurantee) 6,529,253 4,274,966
Other Moneys for which Company is - 1,961,125
contingently liable
TOTAL Rs. 9,488,612 9,046,460
Commitments
Estimated amounts of contracts
remaining to be executed on capital
account and not provided for - -
Uncalled liability on shares or
investments partly paid - -
Other Commitments - -
TOTAL Rs. - -
5. In the opinion of the Board, all assets which are considered good
(other than Fixed Assets and Non- Current Investments) are expected to
realised at least the amount at which they are stated, if realised in
the ordinary course of business. Further in the opinion of the Board,
provision for all known liabilities has been adequately made in the
accounts and as per management experience and estimates, no additional
provisions are required.
6. POST EMPLOYMENT BENEFITS :
Providend Fund and ESI dues paid during the year being defined
contributions have been charged to the Profit and Loss Account.
In accordance with the policy for accounting for Gratuity Obligation,
Gratuity Fund Contribution to the tune of Rs.4,79,170 /- (PY Rs.
4,83,404/-) (being current service cost) has been debited to the Profit
and Loss Account for the year.
Further in terms of Actuarial Valuation carried out by the Insurer, the
Present Value of Obligations as at the year end comes to Rs.
67,61,967/- (PY Rs. 65,61,627/-) against which the Fair Value of Plan
Assets comes to Rs. 78,82,799/- (PY Rs.76,54,631 /-) resulting a net
asset of Rs. 11,20,833/- (PY Rs. 10,93,004/-).
Method Used Projected Unit Credit Method
Actuarial Assumptions Used
Mortality Rate LIC (1994-96) Ultimate
Discount Rate 8%
Expected Return on Plan 9%
Assets
Salary Escalation Rate 7%
Withdrawal Rate 1 % to 3% depending on age
Major Categories of Plan Insurer Managed Funds - 100%
Assets
7. Impairment of Assets :
As a tool to measure to the value of fixed assets, the Company has
considered the technical Valuation carried out by expert. In terms of
the same and further in absence of any indications, external or
internal, as to any probable impairment of assets, no provision has
been made for same during year under report.
8. The figures in respect of previous year have been re-grouped /
recast wherever necessary to confirm to the current year''s
classification.
Mar 31, 2013
1. General Information of the Company.
Mercury Laboratories the registered partnership firm started its
business activity in the year 1962. Subsequently it converted into
Private Ltd. Company, & incorporated in the year 1982. Later on further
converted into Limited Company in the year 1992 in state of
Maharashtra. The company has obtained ISO 9001:2008 registration and
engaged in the business of Pharmaceutical items. The company is profit
making and dividend paying Public Limited Company.
The Company made its public issue in the year 1992 and is listed on the
OTC Stock Exchange.
2. Note on amalgamation:
Mercury Laboratories Limited (MLL) (Transferee Company) was
incorporated in the year 1992 and engaged in the business of
manufacturing, exporting & importing of Pharmaceutical Drugs &
Medicines. Mercury Antibiotics Private Limited (MAPL) (Transferor
Company) was incorporated in the year 1989 and it is engaged in the
business of manufacturing, importing, exporting of pharmaceutical
Drugs, Medicines formulations, Bulk Drugs including a wide variety of
Oral Dosage Products such as Liquids, Syrups and Dry Powder based
medicinal products. Both the Companies have been promoted by Shri Dilip
R. Shah & Shri Rajendra R. Shah having a several decades of experience
and standing in the pharmaceutical companies.
The Board of Directors of MAPL (Transferor Company) & the Board of
Directors of MLL (Transferee Company) have respectively passed the
resolutions on 05th January, 2012 to amalgamate both the companies. The
scheme of amalgamation has been presented under Section 391 to Section
394 of the Companies Act, 1956 to Honorable High Court at Mumbai
(Maharastra).
The proposed amalgamation will create the synergy of Operations,
minimize the Cost, Cost & Administrative expenses & generate the higher
profitability for the companies. In terms of the scheme of
amalgamation, all the assets & liabilities of MAPL will get transferred
to MLL with effect from 01st April, 2011 as appointed date & all the
transactions carried out by MAPL on & after the said Date will be to
the account of MLL.
Consequent upon the receipt of approval from the Honorable High Court
at Bombay (Maharastra), MAPL will stand merged with MLL with effect
from 01st April, 2011 & will stand extinguished & the account of MLL
for the year 2011-12 & 2012-13 will be re-stated for giving the effect
to the said scheme.
The Company has a single class of equity shares which are having
par value of Rs. 10 per equity share. All shares rank pari passu with
reference to all rights relating thereto. Each Shareholder is eligible
for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all
preferential amounts, in proportions to their shareholding.
Micro and Small Enterprises :With reference to amounts shown as payable
to Micro, Small and Medium Enterprises, the information has been
compiled in respect of parties to the extent they could be identified
as Micro, Small and Medium Enterprises on the basis of information
collected and available with the Company and same has been relied upon
by the auditors. The Company deals with various Micro Small and Medium
Enterprises on mutually accepted terms and conditions. No interest is
payable if the mutual terms are adhered to by the Company.
Accordingly, no interest has been paid during the year and further no
provision for interest payable to such units is required or has been
made under Micro, Small and Medium Enterprises Development Act, 2006.
Hence, information as required under Schedule VI of the Companies Act,
1956 relating to delayed payments and interest on delayed payments to
Micro, Medium and Small Enterprises has not been compiled and
presented.
3. CONTINGENT LIABILITIES AND COMMITMENTS
31/03/2013 31/03/2012
(Rs) (Rs.)
Contingent Liabilities
Claims against the Company not 2,810,369 2,698,386
acknowledged as debt
Guarantees ( Bank Gurantee ) 4,274,966 2,585,785
Other Moneys for which Company is 1,961,125 2,766,328
contingently liable
TOTAL RS. 9,046,460 8,050,499
Commitments
Estimated amounts of contracts remaining
to be executed
on capital account and not provided for - 78,900,000
Uncalled liability on shares or - -
investments partly paid
Other Commitments - -
TOTAL RS. - 78,900,000
4. In the opinion of the Board, all assets which are considered good (
other than Fixed Assets and Non- Current Investments ) are expected to
realised at least the amount at which they are stated, if realised in
the ordinary course of business. Further in the opinion of the Board,
provision for all known liabilities has been adequately made in the
accounts and as per management experience and estimates, no additional
provisions are required.
5. POST EMPLOYMENT BENEFITS
Providend Fund and ESI dues paid during the year being defined
contributions have been charged to the Profit and Loss Account.
In accordance with the policy for accounting for Gratuity Obligation,
Gratuity Fund Contribution to the tune of Rs.4,83,404 /- (PY Rs.
4,05,162/-) (being current service cost) has been debited to the Profit
and Loss Account for the year.
Further in terms of Actuarial Valuation carried out by the Insurer, the
Present Value of Obligations as at the year end comes to Rs.
65,61,627/- (PY Rs. 46,62,791/-) against which the Fair Value of Plan
Assets comes to Rs. 76,54,631/- (PY Rs. 66,86,360/-) resulting a net
asset of Rs. 10,93,004/- (PY Rs. 20,23,569/-). The Company has not
recognized this asset following the concept of prudence.
Method Used Projected Unit Credit Method
Actuarial Assumptions Used
Mortality Rate LIC (1994-96) Ultimate
Discount Rate 8%
Expected Return on Plan Assets 9%
Salary Escalation Rate 7%
Withdrawal Rate 1% to 3% depending on age
Major Categories of Plan Assets Insurer Managed Funds - 100%
6. RELATED PARTY TRANSACTIONS :-
The Company has identified all the related parties having transactions
during the year in line with Accounting Standard 18. Details of the
same are as under (a) List of Related Parties
Name of Related Parties Nature of Relationship
Mr. R .R. Shah Managing Director
Mr. D.R. Shah Executive Director
Mercury Antibiotics Pvt. Ltd. An enterprise Managed by the
Relatives of Directors
Bio- Med India A Concern in which Directors are
Partner
Mercury Marketing & Consulting A Concern in which Directors
Services are Partner
Kusumben R. Shah Relatives
Kaumudiniben R. Shah Relatives
Kishoriben D. Shah Relatives
R.R. Shah( H.U.F) Relatives
Adit D. Shah Relatives
Janki r shah Relatives
7. Impairment of Assets
As a tool to measure to the value of fixed assets, the Company has
considered the technical Valuation carried out by expert. In terms of
the same and further in absence of any indications, external or
internal, as to any probable impairment of assets, no provision has
been made for same during year under report.
8. The figures in respect of previous year have been re-grouped /
recast wherever necessary to confirm to the current year''s
classification.
Mar 31, 2012
2. General Information of the Company.
Mercury Laboratories the registered partnership firm started its
business activity in the year 1962. Subsequently it converted into the
Private Ltd. Company & incorporated in the year 1982. Later on further
converted into Limited Company in the year 1992 in the state of
Maharashtra. The company has obtained ISO 9001:2008 registration and
engaged in the business of Pharmaceutical items. The company is profit
making and dividend paying Public Limited Company.
The Company made its public issue in the year 1992 and is listed on the
OTC Stock Exchange.
3. Notes on Amalgamation :
Mercury Laboratories Limited (MLL) (Transferee Company) was
incorporated in the year 1992 and engaged in the business of
manufacturing, exporting & importing of Pharmaceutical Drugs &
Medicines. Mercury Antibiotics Private Limited (MAPL) (Transferor
Company) was incorporated in the year 1989 and it is engaged in the
business of manufacturing, importing, exporting of pharmaceutical
Drugs, Medicines formulations, Bulk Drugs including a wide variety of
Oral Dosage Products such as Liquids, Syrups and Dry Powder based
medicinal products. Both the Companies have been promoted by Shri Dilip
R. Shah & Shri Rajendra R. Shah having a several decades of experience
and standing in the pharmaceutical business.
The Board of Directors of MAPL (Transferor Company) & the Board of
Directors of MLL (Transferee Company) have respectively passed the
resolutions on 10th December, 2011 to amalgamate both the companies.
The scheme of amalgamation has been presented under Section 391 to
Section 394 of the Companies Act, 1956 to Honorable High Court at
Mumbai (Maharastra).
The proposed amalgamation will create the synergy of Operations,
minimize the Cost, Cost & Administrative expenses & will generate the
higher profitability for the companies. In terms of the scheme of
amalgamation, all the assets & liabilities of MAPL will get transferred
to MLL with effect from 01st April, 2011 as appointed date & all the
transactions carried out by MAPL on & after the said Date will be to
the account of MLL.
Consequent upon the receipt of approval from the Honorable High Court
at Mumbai (Maharastra), MAPL will stand merged with MLL with effect
from 01st April, 2011 & will stand extinguished & the account of MLL
for the year 2011-12 will be re-stated for giving the effect to the
said scheme.
(4) The Company has a single class of equity shares which are having
par value of Rs. 10 per equity share. All shares rank pari passu with
reference to all rights relating thereto. Each Shareholder is eligible
for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company after distribution of all
preferential amounts, in proportions to their shareholding.
(5) Micro and Small Enterprises :
With reference to amounts shown as payable to Micro, Small and Medium
Enterprises, the information has been compiled in respect of parties to
the extent they could be identified as Micro, Small and Medium
Enterprises on the basis of information collected and available with
the Company and same has been relied upon by the auditors. The Company
deals with various Micro Small and Medium Enterprises on mutually
accepted terms and conditions. No interest is payable if the mutual
terms are adhered to by the Company.
Accordingly, no interest has been paid during the year and further no
provision for interest payable to such units is required or has been
made under Micro, Small and Medium Enterprises Development Act, 2006.
Hence, information as required under Schedule VI of the Companies Act,
1956 relating to delayed payments and interest on delayed payments to
Micro, Medium and Small Enterprises has not been compiled and
presented.
(6) Sundry Creditors and Sundry Debtors are as per books and have not
been corroborated by circulation / confirmation of balances /
reconciliation of accounts. Confirmations of parties concerned, for the
amount receivable / due to them as per accounts of the company, are
under process of reconciliation and adjustments required, if any, will
be made as and when the accounts are settled.
(7) In the opinion of the Board, the Current Assets, Loans and
Advances which are considered good are expected to realise at least the
amount at which they are stated, if realized in the ordinary course of
business. Further, in the opinion of the Board and as per management,
provision of all known liabilities has been adequately made in the
accounts.
(8) Contingent Liabilities (to the extent not provided for)
Guarantees:
Bank Guarantees outstanding as on 31st March, 2012, amounted to Rs
25,85,785/- (p.y Rs 8,50,620/-) and Letters of Credit outstanding as at
31st March 2012, amounted to Rs 27,66,328/- (p.y. Rs. 21,59,730/-)
against which the company has kept the Margin Money in the form of
Fixed Deposit worth Rs. 63,13,215/- (p.y Rs. 1,03,13,997/-).
Claims against the Company not acknowledged as debt:
The company has disputed the following statutory liabalities & pending
with following authorites as mentioned below :
Disputed Sales Tax Liabilities : 2,08,608/-
Disputed Service Tax Liabilities : 18,48,486/-
Disputed Central Excise Liabilities : 6,41,292/-
(9) Commitments (to the extent not provided for)
Estimated amt. of contracts remaining to be executed on capital
account: Rs.789 lacs (p.y. Rs. Nil) Other Commitments : Nil
(10) Proposed Dividend :
Amount of Rs. 1.50 per Equity Share aggregating to Rs. 18,00,000/- is
being proposed as dividend on equity shares.
There are no arrears of dividends.
(11) Post Employment Benefits
Provident Fund & ESI dues amounting to Rs.16,84,214 (PY Rs.21,83,038)
paid during the year being defined contributions has been charged to
the Statement of Profit and Loss.
The value of obligation towards entitlement of employees accumulating
earned leave and eligibility of compensation or encashment of the same
is measured at the expected amount required to be paid as a result of
actual unused entitlement standing to the credit of the employees as at
end of the year based on current salary standards. Accordingly a sum of
Rs. 3,30,821 (p.y. Rs.3,08,619) has been determined as obligation as at
the year end. The differential of Rs. 1,28,240 (p.y. 41,655) between
the obligation as at the end of previous year, compensation paid during
the year and the obligation as the year end has been charged to the
Statement of Profit and Loss.
The Company has a defined benefit gratuity plan. As per the Payment of
Gratuity Act, 1972, every employee who has completed five or more years
of service is eligible for gratuity @ 15 days salary (last drawn) for
every completed year of service with an overall ceiling of Rs.
10,00,000 (PY Rs. 3,50,000) at the time of separation from the Company
or retirement whichever is earlier. The Company has taken a Group
Gratuity cum Life Insurance Policy from Life Insurance Corporation of
India (a qualifying policy) and makes annual contributions to the same
to create a fund to meet this defined benefit gratuity obligation.
(12) Segment Reporting
With respect to Accounting Standard-17on segment reporting issued by
the Institute of Chartered Accountants of India, the Management of the
Company is of the view that the products offered by the Company are in
the nature of Pharmaceuticals Formulations. Hence, the business of
production and sale of Pharmaceuticals Formulations belong to one
business segment only.
(13) The Company has not made any forward contracts during the year.
(14) To comply with the International standard of regulatory market the
company has undertaken the project to construct the factory building
and availed the Term Loan in foreign currency (FCNRB) from State Bank
of India Baroda. The undertaken project will take substantial period of
time. The Company has capitalized the borrowing cost of Rs. 14,56,041/-
in terms of the accounting practice followed by the Company in
consonance with Accounting Standard-16 Borrowing Costs.
(15) There are no amounts pending to be transferred to the Investors
Education and Protection Fund as at the end of the year.
(16) These financial statements have been prepared in the format
prescribed by the Revised Schedule VI to the Companies Act, 1956.
Previous periods figures have been recast / restated.
Mar 31, 2011
1 a. Contingent Liabilities not provided for in respect of:
(Rs. In Thousand)
31/03/2011 31/03/2010
Bank guarantees pending to be redeemed 850.62 1114.34
Pending Letters of Credit 2159.73 13063.90
Sales tax matters in dispute 208.61 208.61
b. There is no claim against company to be acknowledged as debt.
c. Estimated amount of contracts to be executed on capital account not
provided for Rs. NIL
3 Sundry Debtors includs Rs. 29.23 lacs outstanding for more than six
months and considered to be doubtful of recovery. However, no provision
has been made in the accounts for the same and to that extent the
Profits/Reserves are reflectef on the higher side.
4 In cases where letters of confirmation have been received from the
parties, book balance have been generally reconcilled and adjusted. In
other cases, balances in the account of sundry debtors, sundry
creditors and loans and advances or deposits are taken as per the books
of accounts.
5 In case of Sundry Debtors and Loans & Advances which are considered
good, the Company holds no security other than the personal security of
the parties.
6 The Company has aviled the Finance from State Bank of India which is
secured by way of hypothecation charges on all types of stocks, whether
lying in the premises of the Company or elsewhere, books-debts, inland
and Foreign bills in course of collection. The loans are further
secured by way of first charge on the Plant & Machinery, equipments and
all other movable assets,both present or future and also by way of
Equitable Mortgage of Company''s Land & Building at Vadodara and also
the Building at Jarod. These loans are also personally guaranteed by
the Directors of the Company.
7 In the opinion of the Board, the Current Assets, Loans & Advances,
are expected to realize at least the amount at which they are stated,
if realised in the ordinary course of business and provision for all
known liabilities has been adequately made in the accounts.
8 With reference to amounts shown as payable to Micro & Small
Enterprises, the information has been complied in respect of parties to
the extent they could be identified as Micro and Small Enterprises on
the basis of information collected and available with the company and
same has been relied upon by the auditors. The Company deals with
various Micro and Small Enterprises on mutually accepted terms and
conditions. No interest is payable if the mutual terms are adhered to
by the Company. Accordingly, no interest has been paid during the year
and further no provision for interest payable to such units is required
or has been made under Micro, Small and Medium Enterprises Development
Act, 2006. Hence, information as required under Schedule VI of the
Companies Act, 1956 relating to delayed payments and interest on
delayed payments to Micro and Small Enterprises has not been compiled
and presented.
9 Post Employment Benefits :
The Company, during the year, has adopted Accounting Standard
15(Revised) "Employee Benefits" issued by the ICAI in accordance with
stipulations of the Standard.
Provident Fund dues during the year being defined contributions have
been charged to the Profit and Loss Account.
Long Term Employee Benefits on account of compensated absences have
been accounted for on actuarial basis using the Projected Unit Credit
Method.
10 Impairment of Assets :
As a tool to measure to the value of fixed assets, the Company has
considered the technical Valuation carried out by expert. In terms of
the valuation report and further in absence of any indications,
external or internal, as to any probable impairment of assets, no
provision has been made for the same during the year under report.
11 There are no amounts pending to be transferred to the Investors
Education and Protection Fund as at the end of the year.
12 Segment Reporting:
With respect to Accounting Standard 17 on Segment Reporting issued by
the Institute of Chartered Accountants of India, the management is of
the view the products of the Company can be classified into only one
category i.e. "Pharmaceutical Formulations". Thus, the business of
production and sales of pharmaceutical products belong to one segment
only.
13 Deferred Taxes :
In compliance with Accounting Standerd 22 on Taxes on income issued by
the institute of Chartered Accounttants of India, the Company has
disclosed net deferred tax liability of Rs.6476.31 Thousand for the
year ended 31st March 2011 after charging net deferred tax liability
for the year under report of Rs.68.61 Thousand to the profit and loss
account.
(b) In respect of the transactions entered with releted entities by the
Company till 31st December, 2010 to which section 297(1) of the
Companies Act 1956, were attracted, as an abudant caution, the Company
has submitted its SUO MOTTO application to the Registrar of Companies,
Maharashtra, for compounding of offence to the Regional Director under
Section 621-A of the Companies Act.1956, which is pending for Disposal.
The transaction with releted entities after 1 st January, 2011 the
Company has obtained the approval of Central Govt. through Regional
Director, Westen Regional, Mumbai, vide approval letter No.
RD/297/372/2374/12/2010/10066 dated 28/02/2011.
14 ContingenciesProvisions :
Contingencies which can be reasonably ascertained are provided for, if
in the opinion of the Management,there is a probability that it will
result in an outflow for the Company in the future. Other
Contingencies,the outcome of which is not certain, have been disclosed
in these notes as Contingent Liabilities. Contingent Assets have not
been provided for.
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