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Notes to Accounts of Oriental Carbon & Chemicals Ltd.

Mar 31, 2019

1. Company Overview, Basis of Preparation and Significant Accounting Policies

I Corporate Information

Oriental Carbon & Chemicals Limited ( “OCCL” or “the Company” ) is a public limited company domiciled in India and has its registered office at Kolkata. The shares of the Company are listed on National Stock Exchange of India Ltd. and Bombay Stock Exchange Ltd. The Company’s core business is manufacturing and sales of Insoluble Sulphur. The Company is a global supplier of Insoluble Sulphur and about two-third of the turnover of the Company is from Exports. It has two manufacturing facilities, one in Haryana and other one in Gujrat.

II BASIS OF PREPARATION

a) Statement of compliance

These financial statements have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard (‘Ind AS’) as per the Companies (Indian Accounting Standards) Rules, 2015 (As amended) notified under Section 133 of the Companies Act, 2013 (‘the Act’) and other relevant provisions of the Act to the extent applicable.

These financial statements were authorised for issue by the Board of Directors on May 10, 2019

b) Basis of measurement

The financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following:

i. Certain financial assets and liabilities (including derivative instruments) measured at Fair Value / Amortised Cost;

ii. Defined benefit plan assets measured at Fair Value;

c) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (“the functional currency”). The financial statements are presented in Indian National Rupee (‘INR’), which is the Company’s functional and presentation currency. All amounts have been rounded to two decimal points of lakhs, unless otherwise indicated.

d) Current or Non current classification

All Assets and Liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of the business of the Company and its business time cycle from inception of an order and its completion on realization in cash and cash equivalents, the Company has ascertained the operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

e) Use of judgements and estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent liabilities and contingent assets as at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to estimates are recognised prospectively.

Application of accounting policies that require critical accounting estimates and assumption judgements having the most significant effect on the amounts recognised in the financial statements are:

Measurement of defined benefit obligations;

Recognition of deferred tax assets & MAT credit entitlement;

Useful life and residual value of Property, plant and equipment and intangible assets;

Measurement of Fair Value of Current Investments;

Measurement of fair value of Equity Investments.

a. Terms / rights attached to Equity Shares

Each holder of equity shares is entitled to one vote per share. 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. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.

b. Reconciliation of Shares outstanding at the beginning and at the end of the reporting period

d. Note on Buyback of Equity Shares

The Board of Directors of the Company, at its meeting held on November 01, 2018, has approved a proposal to buy back the Company’s fully paid-up equity shares of the face value of RS.10/- each at a maximum price of RS.1150/- per equity share up to total amount of buy back of RS.3500.00 lakhs from it’s members / beneficial owners / other than those who are promoters or persons in control of the Company and the promoter group, under the open market route through stock exchange. The buy back process commenced on November 14, 2018 and closed on March 02, 2019. During the period, the Company has bought back 3,05,970 equity shares and extinguished on March 02, 2019.

Notes: (i) Capital Reserve:

The Company had recognised Surplus arising out of transfer of Assets and Liabilities of erstwhile Carbon Black Division to Capital Reserve.

(ii) Securities Premium:

In the earlier years, the Company has received Share Premium on conversion of fully convertible debentures into equity shares and also on allotment of equity shares issued on rights basis.

(iii) Capital Redemption Reserve:

An amount of RS.30.60 lakhs (equivalent to nominal value of the equity shares bought back and cancelled by the Company in the year ended March 2019) has been transferred to Capital Redemption Reserve from General Reserve pursuant to the provisions of Section 69 of the Companies Act, 2013 and the article 8 of the Article of Association of the Company. (Refer Note No. 7(d)).

(iv) Items of Other Comprehensive Income

The Company recognises the gain or loss on fair value of non-current investments and Remeasurement Gain or loss on Defined Benefit Plans under Items of Other Comprehensive Income.

(v) During the year, the Company has paid Interim dividend of RS.4.00; (Previous year RS.3.00) per equity share.

Now, final dividend RS.8.00 (Previous year RS.7.00) per equity share for financial year 2018-19 is recommended by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Notes:

(i) (a) Securities:

Secured by (i) First exclusive charge on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit with State Bank of India; (ii) First pari-pasu charge with Exim Bank and Kotak Mahindra Bank Ltd on entire fixed assets including equitable mortgage of factory land and building of SEZ Mundra Unit; (iii) Second pari-pasu charge with Exim Bank on entire fixed assets of Dharuhera Unit including equitable mortgage of factory land and building of Dharuhera Unit; (iv) Second pari-pasu charge with Exim Bank on entire current assets of the Company.

(ii) Secured by hypothecation of vehicles purchased under the scheme and non-current portion of RS.89.51 lakhs (Previous year RS.0.43 lakhs) is repayable in 15 to 49 (Previous year 2) equated monthly instalments in 2019-20 onwards as per the repayment schedule.

(iii) Deposits from public carries rate of interest @ 7.75% to 8.00% (Previous year 7.75% to 8.00%) p.a. and non-current portion of RS.138.42 lakhs (Previous year RS.210.47 lakhs) is repayable after 1 to 3 years (Previous year 1 to 3 years) from the date of acceptance of deposits.

Security:

Cash Credit, Packing Credit and Bill Discounting are secured by first exclusive charge on entire current assets of the Company and second exclusive charge over the entire fixed assets including equitable mortgage of factory land and building of Mundra SEZ Unit with State Bank of India.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. During the year ended March 31, 2019, the Company has paid dividend to its shareholders. This has resulted in payment of DDT to the taxation authorities. The Company believes that DDT represents additional payment to taxation authority on behalf of the shareholders. Hence DDT paid is charged to equity.

* During the year the Company Created MAT Credit amounting to RS.105.68 lakhs (Previous year RS.21.72 lakhs).

2. Employee Benefits

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.

a) Defined Contribution Plans

Amount recognized as an expense and included in Note No. 18 Item “Contribution to Provident and Other Funds” RS.196.33 lakhs (Previous year RS.177.25 lakhs) Consist of Contribution to Superannuation Fund RS.38.63 lakhs (Previous year RS.36.39 lakhs) and to Provident and other fund H 157.70 lakhs (Previous year RS.140.86 lakhs).

b) Other long-term benefits

Amount recognized as an expense and included in Note No. 18 Item “Long Term Compensated Absences RS.64.47 lakhs (Previous year RS.48.85 lakhs) for long term compensated Absences.

c) Defined benefits plans - as per actuarial valuation

Gratuity Expense RS.46.61 lakhs (Previous year RS.83.78 lakhs) has been recognized in “Gratuity” under Note No. 18 as per Actuarial Valuation.

I. Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

a) Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

c) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

d) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

3. Related Party Disclosures

Related party disclosure, as required by Indian Accounting Standard-24, is as below:

I. Nature of Related Party relationship

(a) Duncan Engineering Limited (Formerly known as Schrader Duncan Limited) : Subsidiary Company

(b) Duncan International (India) Limited : Enterprise over which relative of key management personnel is having significant influence.

(c) Cosmopolitan Investments Ltd. : Enterprise over which key management personnel is having significant influence.

(d) Haldia Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.

(e) Disciplined Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.

II. Key Management Personnel (KMP) & their relatives with whom transactions have taken place:

(a) Key Management Personnel

(i) Mr. J.P. Goenka - Chairman : Chairman and Relative of Key Management Personnel *

(ii) Mr. Arvind Goenka - Managing Director : Key Management Personnel

(iii) Mr. Akshat Goenka - Joint Managing Director : Key Management Personnel

(iv) Mr. S.J. Khaitan - Director : Non-Executive Director *

(v) Mr. O.P. Dubey - Director : Non-Executive Director *

(vi) Mr. B.B. Tandon - Director : Non-Executive Director *

(vii) Mr. K. Raghuraman - Director : Non-Executive Director *

(viii) Mr. H.S. Shashikumar - Nominee of Life Insurance Corporation of India : Non-Executive Director *

(ix) Mrs. Runa Mukherjee - Director : Non-Executive Director *

(x) Mr. Anurag Jain - Chief Financial Officer : Key Management Personnel

(xi) Mr. Pranab Kumar Maity - Company Secretary : Key Management Personnel

* Director’s Fees and Commission paid

(b) Relatives of Key Management Personnel

(i) Mrs. Aparna Goenka : Relative of Key Management Personnel

(ii) Mr. Shreyans Goenka : Relative of Key Management Personnel

III. Entities Controlled by Key Management Personnel with whom transactions have taken place:

(i) OCCL CSR Trust : Trust in which key management personnel are Trustees

(ii) Oriental CSR Trust : Trust in which key management personnel are Trustees

(iii) Oriental Carbon & Chemicals Limited Employees Gratuity Fund : Trust in which key management personnel are Trustees

4. Segment Reporting

The Company’s business activity falls within a single segment viz., Manufacturing and Sales of Chemicals. The segment has been identified by taking into account the nature of product, the differing risks, the returns, the organisation structure and the internal reporting systems and the manner in which operating results are reviewed by the Chief Operating Decision Maker (CODM).

The fair value of cash and cash equivalents, bank balances other than cash and cash equivalents trade receivables, short term loans, current financial assets, trade payables, current financial liabilities and borrowings at their carrying amount.

Fair value hierarchy

The table shown above analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below: Level 1 This includes financial instruments measured using quoted prices.

Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

The use of quoted market prices

The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date (MTM)

As per Para D-15 of Appendix D of Ind AS 101, Company has opted to value its investment in Subsidiary at Cost.

The fair values for security deposits (assets & liabilities) were based on their carrying values.

5. Financial Risk Management Objectives and Policies

A Financial risk factors

The Company is exposed to various financial risks i.e. market risk, credit risk and risk of liquidity. These risks are inherent and integral aspect of any business. The primary focus of the Risk Management Policy is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk consists of foreign exchange risk and interest rate risk. The Company calculates and compares the various proposals of funding by including cost of currency hedging also. The Company uses derivative financial instruments (Forward Covers) to reduce foreign exchange risk exposures.

i. Credit risk

The Company evaluates the customer credentials carefully from trade sources before extending credit terms and credit terms are extended to only financially sound customers. The Company secures adequate advance from its customers whenever necessary and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances and credit limit determined by the Company. The Company have stop supply mechanism in place in case outstanding goes beyond agreed limits.

ii Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

a) Foreign Currency risk

The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the Company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

The following table analyses foreign currency risk from financial instruments as of March 31, 2019:

Sensitivity Analysis

A reasonable possible strengthening (weakening) of the Indian Rupee at March 31 would have affected the measurement of financial instruments denominated in Foreign Currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. A 1% increase or decrease is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonable possible change in foreign currency rate.

b) Interest Rate Risk and Sensitivity

The Company’s exposure to the risk of changes in market interest rates relates primarily to long term debt. Borrowings at variable rates expose the Company to cash flow interest rate risk. With all other variables held constant, the following table demonstrates composition of fixed and floating rate borrowing of the Company and impact of floating rate borrowings on Company’s profitibality.

iii Liquidity risk

Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The risk management action focuses on the unpredictability of financial markets and tries to minimise adverse effects. The Company uses derivative financial instruments to hedge risk exposures. Risk management is carried out by the Finance department under Forex Policies as adopted and duly approved by the Board. The Company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due and company monitors rolling forecasts of its liquidity requirements.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2019:

6. Financial Risk Management Objectives and Policies (contd.)

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018:

B Capital Risk Management

The Company’s Policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the Company may use appropriate means to enhance or reduce capital, as the case may be.

7. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.


Mar 31, 2018

Notes:

(i) Gross Block includes Rs. 129.69 Lakhs (Previous year Rs. 176.21 Lakhs) purchased under Car Finance Scheme.

(ii) The Expansion at Mundra has commenced commercial production on 20th December’2016. Pre-Operative and start up expenses aggregating Rs. 810.03 Lakhs (including cumulative borrowing cost Rs. 59.32 Lakhs Previous year Rs. Nil ) has been allocated to fixed assets proportionate to their direct cost.

(iii) Building includes properties costing Rs. 3,496.42 Lakhs pending for registration (Previous year Rs. 49.20 Lakhs)

(iv) The Company has exercised option under notification no. GIR 914 (E) dated 29th December’2011 issued by Ministry of Corporate Affairs and accordingly net exchange loss for the year amounting to Rs. 34.37 Lakhs (Previous year Rs. 138.39 Lakhs) on long term foreign currency loans have been capitalized.

(v) During the year 2016-17, the Company has changed the useful life of Air conditioners and Coolers from 10 years to 5 years resulting in an increase in depreciation by Rs. 22.76 Lakhs; (Previous year Nil).

NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2018

Level 1 This includes financial instruments measured using quoted prices.

Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

The use of quoted market prices

The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date (MTM) As per Para D-15 of Appendix D of Ind AS 101, the first time adopter may chose to measure its investment in Subsidiary at Cost or at Fair Value. Company has opted to value its investment in Subsidiary at Cost.

The fair values for security deposits (assets & liabilities) were based on their carrying values.

33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

A. Financial risk factors

The Company is exposed to various financial risks i.e. market risk, credit risk and risk of liquidity. These risks are inherent and integral aspect of any business. The primary focus of the Risk Management Policy is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk consists of foreign exchange risk and interest rate risk. The Company calculates and compares the various proposals of funding by including cost of currency hedging also. The Company uses derivative financial instruments (Forward Covers) to reduce foreign exchange risk exposures.

i. Credit risk

The Company evaluates the customer credentials carefully from trade sources before extending credit terms and credit terms are extended to only financially sound customers. The Company secures adequate advance from its customers whenever necessary and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances and credit limit determined by the Company. The Company have stop supply mechanism in place in case outstanding goes beyond agreed limits.

ii Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

a. Foreign Currency risk

The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognizance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

iii Liquidity risk

Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The risk management action focuses on the unpredictability of financial markets and tries to minimize adverse effects. The Company uses derivative financial instruments to hedge risk exposures. Risk management is carried out by the Finance department under Forex Policies as adopted and duly approved by the Board. The Company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due and Company monitors rolling forecasts of its liquidity requirements.

34. RELATED PARTY DISCLOSURES

Related party disclosure, as required by Indian Accounting Standard-24, is as below:

I. Nature of Related Party relationship

(a) Duncan Engineering Limited (Formerly known as

Schrader Duncan Limited) : Subsidiary Company

(b) Duncan International (India) Limited : Enterprise over which relative of key management

personnel is having significant influence.

(c) Cosmopolitan Investments Ltd. : Enterprise over which key management personnel is

having significant influence.

(d) Haldia Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.

(e) Disciplined Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.

II. Key Management Personnel (KMP) & their relatives with whom transactions have taken place:

(a) Key Management Personnel

(i) Mr. J.P. Goenka - Chairman : Chairman and Relative of Key Management Personnel *

(ii) Mr. Arvind Goenka - Managing Director : Key Management Personnel

(iii) Mr. Akshat Goenka - Joint Managing Director : Key Management Personnel

(iv) Mr. S.J. Khaitan - Director : Non-Executive Director *

(v) Mr. O.P. Dubey - Director : Non-Executive Director *

(vi) Mr. B.B. Tandon - Director : Non-Executive Director *

(vii) Mr. K. Raghuraman - Director : Non-Executive Director *

(viii) Mr. H.S. Shashikumar - Nominee of Life

Insurance Corporation of India : Non-Executive Director *

(ix) Mrs. Runa Mukherjee - Director : Non-Executive Director *

(x) Mr. Anurag Jain - Chief Financial Officer : Key Management Personnel

(xi) Mr. Pranab Kumar Maity - Company Secretary : Key Management Personnel

* Director''s Fees and Commission paid

(b) Relatives of Key Management Personnel

(i) Mrs. Aparna Goenka : Relative of Key Management Personnel

(ii) Mr. Shreyans Goenka : Relative of Key Management Personnel

III. Entities Controlled by Key Management Personnel with whom transactions have taken place:

(i) OCCL CSR Trust : Trust in which key management personnel are Trustees

(ii) Oriental Carbon & Chemicals Limited Employees : Trust in which key management personnel are Trustees Gratuity Fund

35. FIRST TIME ADOPTION OF IND AS

As stated in Note 1(II), these are the Company’s first financial statements prepared in accordance with Ind AS The accounting policies set out in Note 1(III) 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 statement of financial position at April 01 2016 (the Company’s date of transition). In preparing its opening Ind AS statement of financial position, the Company has adjusted amounts reported previously in financial statements prepared in accordance with Indian GAAP (previous GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.

Exemptions and exceptions availed:

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Ind AS optional exemptions:

i. Property, plant and equipment & Intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

ii. Investment in subsidiary

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its investment in subsidiary as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure its investments in subsidiary at their previous GAAP carrying value.

iii. Long-term foreign currency monetary items

Under previous GAAP, paragraph 46A of AS 11 The Effects of Changes in Foreign Exchange Rates, provided an alternative accounting treatment to companies with respect to exchange differences arising on restatement of long term foreign currency monetary items. Exchange differences on account of depreciable assets could be added/deducted from the cost of the depreciable asset, which would then be depreciated over the balance life of the asset. The Company has opted for the said Accounting Treatment as per Ind AS 101.

B. Ind AS mandatory exceptions

i. Estimates

An entity’s 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 as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimation that were consistent in conformity with previous GAAP.

ii. Classification and measurement of financial assets

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. Accordingly the Company has determined the classification of Financial Assets based on the facts and circumstances exist as on the date of transition

D. Notes to first-time adoption:

1. Investments (Non-Current & Current)

i) The Company has elected to apply previous GAAP carrying amount of its investment in subsidiary as deemed cost as on the date of transition to Ind AS.

ii) For investment in Mutual Fund, Company has elected to fair value through Profit and Loss Account(FVTPL)

iii) For investment in Equity Instruments, Company has elected to fair value through OCI (FVTOCI)

2. Financial Instruments

a) Derivative Financial Instruments

Under Indian GAAP, derivative contracts are restated at each balance sheet date to the extent of any reduction in value is recognized in Statement of Profit and Loss. A gain on valuation is only recognized by the Company if it represents the subsequent reversal of an earlier loss. Also under IGAAP premium on forward contract is amortized over the contract period and value was calculated excluding the premium.

Under Ind AS, both reductions and increases to the fair values of derivative contracts are recognized in profit & loss. Premium is not separately accounted and amortized.

b) Cost of borrowing

Borrowing designated and carried at amortized cost are accounted on EIR method. The upfront fee or cost of borrowing incurred is deferred and accounted on EIR basis. Borrowings are shown as net of amortized amount of upfront fee incurred. Accordingly as at March 31, 2017, Finance Cost was decreased by Rs 20.26 lakhs in statement of profit and loss and the value of term loans were also decreased to that extent.

3. Proposed Dividend

Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS a proposed dividend is recognized as liability in the period in which it is declared (on approval of shareholders in a general meeting) or paid. Therefore the proposed dividend and dividend distribution tax for the F.Y 2015-16 has been derecognized and recognized during 2016-17 on payment basis.

4. Deferred Tax

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.

5. Fair Valuation of Financial Assets

Mutual Funds has been fair valued through Profit and Loss (FVTPL)

6. Trade Receivables

As per Ind AS 109 requirement, Trade Receivables are to be reported inclusive of Bills Discounted, accordingly Trade Receivables as at March 31, 2017 were increased by Rs. 402.71 Lakhs and the Current Bank Borrowings also increased to that extent.

7. Excise Duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs. 1,316.78 Lakhs. There is no impact on the total equity and profit.

8. Remeasurement of post-employment benefit obligations

Under Ind AS, remeasurement i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurement were forming part of the profit or loss for the year.

9. There is no significant reconciliation items between cash flow prepared under Previous GAAP and those prepared under Ind AS. 36 Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year’s classification.


Mar 31, 2017

A. Terms / rights attached to Equity shares

Each holder of equity shares is entitled to one vote per share. 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. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.

(a) (i) Securities :

Secured by first exclusive charge on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit and first pari-pasu charge with Exim Bank and Kotak Mahindra Bank Ltd on entire fixed assets including equitable mortgage of factory land and building of SEZ Mundra Unit and second pari-pasu charge with Exim Bank on entire current assets of the company.

(b) Secured by hypothecation of vehicles purchased under the scheme and non-current portion of Rs. 11.98; (Previous Year Rs. 30.03) is repayable ranging from 1 to 14 equated monthly installments (Previous year 2 to 23 equated monthly installments) in 2017-18 onwards as per the repayment schedule and carries rate of interest of 10.39% to 9.50% (Previous year 10.39% to 9.50%) p.a.

(c) Deposits from public carries rate of interest @ 9% to 11%; ( Previous year 9.50% to 10%) p.a. and non-current portion of Rs. 2,08.65; (Previous year Rs. 3,91.28) is repayable after 1 to 3 years (Previous year 1 to 3 years) from the date of acceptance of deposits.

Security:

Cash Credit & Packing Credit facilities are secured by first exclusive charge on entire current assets of the company and second charge over the entire fixed assets including equitable mortgage of factory land and building of Mundra SEZ Unit and second pari-pasu charge with Exim Bank on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit and other fixed assets of the Company (except assets having specific charge).

Notes:

(i) Gross Block includes Rs. 1,29.69 ; (Previous year Rs. 1,76.21) purchased under Car Finance Scheme.

(ii) The expansion project at Mundra has commenced commercial production on 20th December, 2016. Pre-Operative and start up expenses aggregating Rs. 8,10.03 Lakhs (including cumulative borrowing cost Rs. 59.32 Lakhs Previous year Rs. Nil ) has been allocated to fixed assets proportionate to their direct cost.

(iii) Building includes properties costing Rs. 34,96.42; pending for registration (Previous year Rs. 49.20)

(iv) The company has exercised option under notification no. GIR 914 (E) dated 29th December''2011 issued by Ministry of Corporate Affairs and accordingly net exchange loss for the year amounting to Rs. 34.37; (Previous year Rs. 1,38.39) on long term foreign currency borrowing has been adjusted with the depreciable fixed assets acquired. As at 31st March 2017 Rs. 4,54.65; (Previous year Rs.4,43.74) remain to be amortized over the balance life of the assets.

(v) During the year, the company has changed the useful life of Air Conditioners and Coolers from 10 years to 5 years resulting in an increase in depreciation by Rs. 22.76; (previous year Nil).

1. Due to Commencement of Expansion project at Mundra, Current year''s figures are not comparable with Previous year.

2. Previous year figures have been regrouped to conform to current year figures


Mar 31, 2016

30.06 Related Party Disclosures as per Accounting Standard - 18 (Related Party Disclosures), to the extent Identified by the Company

1. Name & Relationship of the Related Parties:

(a) Schrader Duncan Limited : Subsidiary Company

(b) Duncan International (India) Limited : Enterprise over which relative of key

management personnel is having significant influence.

(c) Cosmopolitan Investments Ltd. : Enterprise over which key management (w.e.f. 17.12.2015) personnel is having significant influence.

(d) Haldia Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd. (w.e.f. 17.12.2015)

(e) Disciplined Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd. (w.e.f. 17.12.2015)

(f) Mr. Arvind Goenka- Managing Director : Key Management Personnel

(g) Mr. Akshat Goenka - Vice President

(From 01.04.15 to 31.05.15) : Key Management Personnel Joint Managing Director (From 01.06.15 onwards)

(h) Mr.Shreyans Goenka - Sr.Manager : Relative of Key Management Personnel

(i) Mrs. Aparna Goenka : Relative of Key Management Personnel (j) Mrs. Uma Goenka I (From 01.04.2015 : Relative of Key Management Personnel (k) Ms. Shreya Goenka | to 12.08.2015) : Relative of Key Management Personnel

(l) Ms. Sujata Goenka : Relative of Key Management Personnel


Mar 31, 2015

A. Terms / rights attached to Equity shares

Each holder of equity shares is entitled to one vote per share. 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. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.

@ During the year, the Company has paid Interim dividend of Rs. 3/-; (Previous year Rs. 2/-) per equity share. Now, final dividend Rs. 5.50/-; (Previous Year Rs. 5/-) per equity share for financial year 2014-15 is recommended by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(a) (i) Securities :

Secured by first exclusive charge on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit and first pari-pasu charge with Exim Bank on entire fixed assets including equitable mortgage of factory land and building of SEZ Mundra Unit and second pari-pasu charge with Exim Bank on entire current assets of the Company.

(b) Housing Loans From HDFC Ltd.

i) Rs. 35.72 (Previous Year Rs. 2,05.74) is secured by way of first equitable mortgage of ground floor of the property purchased with collateral security of rest of the said property owned by the other borrower non-current portion Rs. Nil (Previous Year Rs. 82.69 repayable in 8 equal monthly instalments as per the repayment schedule), and carries rate of interest of 12.75% (Previous year 13.00%) p.a.

ii) Rs. Nil (Previous Year Rs. 11.28 is secured by way of equitable mortgage of three residential flats at Bhiwadi, Rajasthan) .

iii) Rs. Nil (Previous Year Rs. 61.39 to be secured by way of first equitable mortgage of two residential flats at Gurgaon, Haryana) and non-current portion of Rs. Nil (Previous Year Rs. 61.39 repayable in 60 equated monthly instalments as per the repayment schedule and carries rate of interest of 15.35% p.a.)

(c) Secured by hypothecation of vehicles purchased under the scheme and non-current portion of Rs. 45.46; (Previous Year Rs. 14.03) is repayable in maximum 20 equated monthly instalments (Previous year 19 equated monthly instalments) in 2016-17 onwards as per the repayment schedule and carries rate of interest of 10.45%to 10.39% (Previous year 9.25% to 10.59%) p.a.

(d) Deposits from public carries rate of interest @ 10.50% to 11%; (Previous year 10.50% to 11%) p.a. and non- current portion of Rs. 2,68.54 (Previous year Rs. 1,94.45) is repayable after 1 to 3 years (Previous year 1 to 3 years) from the date of acceptance of deposits.

Security:

Cash Credit & Packing Credit facilities are secured by first exclusive charge on entire current assets of the Company and second charge over the entire fixed assets including equitable mortgage of factory land and building of Mundra SEZ Unit and second pari-pasu charge with Exim Bank on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit and other fixed assets of the Company (except assets having specific charge).

#Includes Rs. 12.95 (previous year Rs. 12.95) under legal dispute between the Joint Holders of the deposit.

* Includes amount added on revaluation Rs. 2,72.45 during 1992-93, out of which Rs. 43.34 on Building, Rs. 1,52.59 on Plant & Equipment and on Electric Installation Rs. 12.59 is being adjusted from gross block and depreciation block on 1st April' 2014.

Notes:

(i) Gross Block includes Rs. 1,50.06; (Previous year Rs. 1,77.98) purchased under Car Finance Scheme.

(ii) The company has exercised option under notification no. GIR 914 (E) dated 29th December'2011 issued by Ministry of Corporate Affairs and accordingly net exchange difference for the year amounting to Rs. (99.97); (Previous year Rs. 3,96.89) on long term foreign currency borrowing has been (Deducted)/ added to the depreciable fixed assets acquired. As at 31st March 2015 Rs. 3,27.18 (Previous year Rs.4,49.91) remain to be amortised over the balance life of the assets.

(iii) During the year, the company has provided depreciation with refrence to the useful life of respective assets specified in and in the manner prescribed in Schedule II to the Companies Act, 2013. Consequently, depreciation for the year is higher by Rs. 2,37.30; (Previous year Rs. Nil).

* As on 31st March 2015, market value of the shares of subsidiary company M/S Schrader Duncan Limited was lower by Rs. 2,18.85 (Previous year Rs. 4,81.33).

However in view of long term strategic investment in the subsidiary company, no provision for diminution in value has been made as same is not permanent in nature. ** During the year the company has delisted and shown the same under Unquoted investments.

* Under Rule 13 of the Companies (Acceptance of Deposits) rules, 2014 .

** Includes Rs. 91.02 (Previous Year Rs. 84.18); pledged with Government Authority and Rs. 3,25.98 (Previous Year Rs. 3,03.54); against margin money which can be withdrawn at any point of time without prior notice or exit costs on the principal amount.

(Rs. In Laks) As At As At 31st March,2015 31st March,2014

2 Contingent Liabilities & Committments:

2.01 Contingent Liabilities

(i) Bank Guarantees given to various Govt.Authorities/Others (Margin money/ Short Term Deposits Rs. 1.54; Previous year Rs. 1.54) 10.26 10.26

(ii) Bills discounted with Banks 13,91.02 11,52.63

(iii) Corporate guarantee given to a bank for loan taken by Subsidiary Company (to the extent loan outstanding) 14,69.21 14,70.03

(iv) Matter under Litigations/Appeals

(a) Income tax demand (Deposited Rs. 24.57; Previous year Rs. 10.03) 46.60 32.07

(b) Central Excise demand (Deposited Rs.85.58 Previous year Rs.85.58) 1,05.58 1,05.58

(c) Other demands (Deposited Rs.12.00; 22.69 22.69 Previous year Rs.12.00)

The Company is hopeful of favourable decisions and expect no outflow of resources, hence no provision is made in the books of account.

The estimates of the future salary increase considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors.

3.01 Related Party Disclosures as per Accounting Standard - 18 (Related Party Disclosures), to the extent Identified by the Company

1. Name & Relationship of the Related Parties:

(a) Schrader Duncan Limited : Subsidiary Company

(b) Duncan International (India) Limited : Enterprise over which relative of key management personnel is having significant influence.

(c) Mr. Arvind Goenka-Managing Director : Key Management Personnel

(d) Mr. Akshat Goenka-Vice President : Son of Key Management Personnel

(e) Mr. Shreyans Goenka-Sr.Manager : Son of Key Management Personnel (w.e.f. 1st June' 2014)


Mar 31, 2014

(Rs. In Lacs)

As At As At 31st March, 2014 31st March, 2013

1 Contingent Liabilities & Committments:

1.01 Contingent Liabilities

(i) Bank Guarantees given to various Govt.Authorities/Others (Margin money/Short Term Deposits Rs. 1.54 ;

Previous year Rs. 1.54) 10.26 10.26

(ii) Income tax demand under appeal

(Deposited Rs. 10.03; Previous year Rs. Nil) 32.07 -

(iii) Bills discounted with Banks 11,52.63 15,05.47

(iv) Central Excise demand under appeal (Deposited Rs. 85.58 ; Previous year Rs. 85.58) 1,05.58 1,05.58

(v) Other demands under appeal (Deposited Rs. 12.00 ; Previous year Rs. 12.00) 22.69 22.69

(vi) Custom Duty liability on import of raw material under Advance Licence - 55.57

(vii) Corporate guarantee given to a bank for loan taken by Subsidiary Company (to the extent loan outstanding) 14,70.03 15,22.12

1.03 Segment reporting has been given in Consolidated Financial Statement.

1.04 Previous year fgures have been regrouped to conform current year fgures.


Mar 31, 2013

(Rs. In Lacs)

As At As At 31st March, 2013 31st March, 2012

1 Contingent Liabilities & Committments:

29.01

Contingent Liabilities

(i) Bank Guarantees given to various Govt. Authorities/Others

(Margin money/Short Term Deposits Rs. 1.54 ; Previous year Rs. 1.54) 10.26 10.26

(ii) Bills discounted with Banks 15,05.47 6,77.32

(iii) Central Excise demand under appeal (Deposited Rs.85.58 ; Previous year Rs. 85.58) 1,05.58 1,05.58

(iv) Other demands under appeal (Deposited Rs.12.00 ; Previous year Rs.12.00) 22.69 22.69

(v) Custom Duty liability on import of raw material under Advance Licence 55.57 37.65

2.01 Commitments

(i) Estimated amount of capital commitments outstanding and not provided for (Gross) 26,89.22 7,75.34

(Advance Paid Rs. 10,25.32; Previous Year Rs. 4,19.32) (ii) The Company has entered into an agreement with a foreign company to buy its holding of 18,48,000 equity shares in a domestic company.

3.01 During this year the Company has acquired 18,48,500 equity shares (of Rs. 10 each) at a value of Rs. 14,53.65 of M/S Schrader Duncan Limited. Thereby the said Company became subsidiary of the Company with effect from 13.04.2013.

3.02 Consequently upon the implementation of SAP 6.1 during the year, the Company has changed its method of determining cost of Raw Materials from FIFO to Weighted Average Method. However, it has no material impact on the valuation of the Raw Material Stock.

3.03 Disclosure relating to amount outstanding at year end and maximum outstanding during the year of loans and advances, in nature of loan,required as per clause 32 of the Listing Agreement,are given below:

3.04 Segment Reporting

Segment information has been prepared in conformity with the accounting policies adopted for preparing and presenting the fnancial statements of the Company.

As part of Secondary reporting, revenues are attributed to geographic areas based on the location of the customers.

The following tables present the revenue, proft, assets and liabilities information relating to the Business/Geographical segment for the year ended 31.03.2013

3.05 Related Party Disclosures (To the extent Identifed by the company)

1. Name & Relationship of the Related Parties:

(a) Schrader Duncan Limited : Subsidiary Company

(b) Duncan International (India) Limited : Associate

(c) Mr. Arvind Goenka - Managing Director : Key Management Personnel

(d) Mr. Akshat Goenka - Son of Mr. Arvind Goenka : Relative of Key Management Personnel

3.06 Due to commencement of Phase II of new project at Mundra, current year''s fgures are not comparable with previous year.

3.07 Previous year fgures have been reclassifed/regrouped to conform current year fgures.


Mar 31, 2012

Terms / rights attached to Equity shares

Each holder of equity shares is entitled to one vote per share. 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. The distribution will be in proportion of the number of equity shares held by the shareholders. There is no restriction on distribution of dividend. However, same is subject to the approval of the shareholders in the Annual General Meeting.

(i) Securities :

(a) Secured against first charge on the fixed assets of the company including equitable mortgage of factory land and building at Dharuhera, Haryana (except assets having specific charge) and second charge over current assets of the company.

(b) (i) Rs.43,00.00 (Previous year Rs.29,50.00) secured by first charge on the fixed assets of the company at SEZ Mundra, Gujarat including equitable mortgage of factory land and building on paripassu basis and extension of charge over current assests of the company.

(ii) Rs.8,49.83 (previous year Rs.5,07.32) secured by first charge on the fixed assets of the company at SEZ Mundra, Gujarat including equitable mortgage of factory land and building on paripassu basis and second charge on the fixed assets of the company at Dharuhera, Haryana.

(iii) Rs.25,00.00 (previous year Rs.Nil) secured by first charge on the entire fixed assets of the company at Dharuhera, Haryana and first charge on the fixed assets of the company at SEZ Mundra, Gujarat including equitable mortgage of factory land and building on paripassu basis and extension of charge over current assets of the company.

(c) Housing Loans From HDFC Ltd.

i) Rs. 4,64.81; (Previous Year Rs. 5,75.31) is secured by way of first equitable mortgage of ground floor of the property purchased with collateral security of rest of the said property owned by the other borrower and repay- able within a period of 60 months as per the repayment schedule.

ii) Rs. 37.38; ( Previous Year Rs. 47.81) is secured by way of equitable mortgage of three residential flats at Bhi- wadi, Rajasthan and repayable within a period of 60 months as per the repayment schedule.

iii) Rs. 51.90; (Previous Year Rs. 20.61) to be secured by way of first equitable mortgage of two residential flats at Gurgaon, Haryana and repayable within a period of 60 months as per the repayment schedule.

(d) Secured by way of absolute charge on specific assets purchased under the scheme and repayable within a period of

1 months as per the repayment schedule.

Security:

Cash and Packing Credit facility is secured by first charge on the entire current assets of the Company including receivables both present and future and second charge over the fixed assets of the company (except assets having specific charges).

2. Nature of Operations

The Company is a manufacturer of Insoluble Sulphur and Sulphuric Acid. The Company has manufacturing facilities at Dharuhera (Haryana) and Mundra SEZ (Gujarat). Insoluble Sulphur produced by the company is sold globally.

(Rs. Lakhs)

As At As At 31st March 2012 31st March 2011

3 Contingent Liabilities & Committments:

3.01 Contingent Liabilities

(i) Bank Guarantees given to various Govt. Authorities/Others (Margin money/Short Term Deposits Rs. 1.54 ; Previous year Rs. 1.54) 10.26 10.26

(ii) Bills discounted with Banks 6,77.32 9,42.24

(iii) Income Tax demands under appeal (Amount deposited Rs. NIL; Previous Year Rs.1.00) - 1.00

(iv) Central Excise demand under appeal (deposited Rs.85.58 ; Previous year Rs. 85.58) 1,05.58 1,05.58

(v) Others under appeal (deposited Rs.12.00 ; Previous year Rs.12.00) 22.69 22.69

(vi) Custom Duty liability on import of raw material under advance licence 37.65 26.82

3.02 Commitments

(i) Estimated amount of capial commitments outstanding and not provided for (Gross) 7,75.34 19,74.59 (Advance Paid Rs. 4,19.32. Previous Year Rs. 5,21.58)

(ii) The Company has entered into a agreement with a foreign company to buy its holding of 1848000 equity shares in a domestic company at the agregate value of Rs. 14,53.00.

4.1 The Company has prepared current year account as per presentation and disclosure requirement of Revised Schedule Vi to the Companies Act, 1956 applicable with effect from 1st April 2011. Previous year figures have been reclassified/regrouped to conform to current year figure.

4.2 Due to commencement of new project at Mundra, current year's figures are not comparable with previous year.


Mar 31, 2011

(Rs. Lakhs) As at As at

1. Contingent Liabilities: 31.03.2011 31.03.2010

(i) Bank Guarantees given to various Govt.Authorities/Others (Margin money/Short Term Deposits Rs. 1.54 ; Previous year Rs. 1.54) 10.26 10.26

(ii) Bills discounted with Banks 9,42.24 1,001.72

(iii) Sales Tax demands under appeal (Amount deposited Rs.Nil; Previous year Rs. 0.18) - 0.18

(iv) Income Tax demands under appeal (Amount deposited Rs.1.00 ; Previous Year Rs.26.00) 1.00 143.97 ( v) Central Excise demand under appeal (deposited Rs.85.58 ; Previous year Rs. 85.58) 1,05.58 105.58

(vi) Others under appeal (deposited Rs.12.00 ; Previous year Rs.12.00) 22.69 22.69

2. Loans & Advances include Rs. 75.00 to a Company under liquidation against the use of an offce premises. The same is pending transfer in favour of the Company as per the agreed terms.

3. Expenses/adjustment relating to previous years includes Commissions on sales Rs.4.16 lacs (Previous Year Rs.NIL); Other Expenses Rs. 0.10; (Previous Year Rs.1.39)

4. The asset of Rs.362.36 lacs (Previous year Rs.150.60 lacs) recognised by the company as "MAT credit entitlement under ‘Loans and Advances represents that portion of MAT liability, which can be recovered and set off in subsequent years based on the provisions of Section 115JAA of the Income Tax Act,1961. The management based on the present trend of Profitability and also the future Profitability projections, opines that there would be suffcient taxable income in foreseeable future, which will enable the Company to utilize MAT Credit Assets.

5. The Company has imported raw materials under Advance licence against export obligiation. As on 31st March2011, The Company is contingently liable to pay Custom duty of Rs.26.82 lacs in case of non-fulflment of export obligation. The Company is expected to fullfill the obligation within the scheduled date.

6. There were no outstanding dues to Micro, Small and Medium Enterprises to the extent information available with the Company and the payments in respect of such suppliers are made within the appointed day.

7. (i) The previous years figures have been regrouped/rearranged wherever necessary, to conform to this years classification.

(ii) Figures in brackets relate to previous year.


Mar 31, 2010

(Rs.Lakhs)

As at As at 31.03.2010 31.03.2009

1.Contingent Liabilities: (i)Bank Guarantees given to various Govt.Authorities/Others (Margin money/Short Term Deposits Rs.1.54 ;Previous year Rs.1.54) 10.26 10.26

(ii)Bills discounted with Banks 1,001.72 661.01

(iii)Sales Tax demands under appeal (Amount deposited Rs.0.18 ; Previous year Rs.0.18) 0.18 0.18 (iv)Income Tax demands under appeal (Amount deposited Rs.26.00 ; Previous Year Rs.1.00) 143.97 1.00

(v)Central Kxcisc demand under appeal (deposited Rs.85.58 ; Previous year Rs.85.58) 105.58 105.58

(vi)Others und,er appeal (deposited Rs.12.00;Previous year Rs.12.00) 22.69 22.69



2.Loans &Advances include Rs.75.00 to a company under liqui -dation against the use of an office premises.The same is pending transfer in favour of the company as per the agreed terms.

3.expenses Expenses/adjustment relating to previous years includes (ravelling expense Rs.Nil.(Previous Year Rs.4.00); Other Rs.1.39;(Previous Year Rs.4.66)

4.There were no outstanding dues to Micro,Small and Medium Enterprises to the extent information available with the company and the payments in respect of such suppliers are made within the appointed day.

5. The appointment and remuneration paid to Mr. Akshat Gocnka amounting to Rs. 0.46, w.c.f. 04.01.2010, is subject to the approval of the Shareholders in the ensuing Annual General Meeting u/s 314 of The Companies Act, 1956.

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