Mar 31, 2023
Estimation of fair value
The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:
Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences
The main input used is the price per square metre as per state government''s registration and stamps department rate for the property All resulting fair value estimates for investment properties are included in level 2.
Terms/ rights attached to equity shares
The company has only one class of equity shares having face value of INR 10 per share. 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.
As per records of the Company including its register of share holders/members and other declarations received from share holders regarding benificial interest, the above share holding represents legal ownership of shares as at balance sheet date.
The Company has alloted 50,86,765 equity shares of Rs,10/- each on 14th March,2020 at a premium of Rs.27.01 to promotors group by conversion out of 1,52,73,682 share warrants alloted on 27th January, 2019 on preferential basis.
The Company has alloted 53,54,490 equity shares of Rs,10/- each on 20th May,2020 at a premium of Rs.27.01 to promotors group by conversion out of 1,52,73,682 share warrants alloted on 27th January, 2019 on preferential basis.
Nature and purpose of other reserves Securities Premium Reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act. Fair value of Equity Instruments through Other Comprehensive Income (FVOCI)
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Comapany transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
General Reserve
The General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purpose. As General Reserve is created by a transfer from one component of Equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclasified subsequently to profit or loss.
There is no default as at 31st March, 2023 and 31st March 2022, in repayment of loans and interest payments on Term Loans.
Terms of repayment
** Indian Bank Term Loan (Rs. 10000 Lakhs sanctioned for Chloromethanes expansion is repayable in 20 quarterly instalment from June 2022 at interest rate of 1 Year MCLR 0.70%).
"***Working Capital term loans availed from Indian Bank (Rs. 5000 lakhs repayable in 60 monthly instalments from Febuary, 2019 at interest rate of MCLR 1year Spread 3.15%p.a).â"
"COVID working capital term loans availed from, Indian Bank Rs 867 lakhs is repayable in 30 monthly instalments starting from April 2021 at interest rate of 1 Year MCLR., South Indian Bank Limited Rs. 75 lakhs is repayable in 12 monthly instalments starting from Dec 2020 at interest rate of MCLR 1.85.
GECLs working capital term loans availed from Indian Bank Rs. 953 lakhs are repayable in 48 monthly instlaments starting from Feb 2022 at interest rate of 1 Year MCLR 1%, âIDBI Bank Ltd. Rs. 957 lakhs is repayable in 48 monthly instlaments starting from Jan 2022 at interest rate of MCLR 1%,
Punjab National Bank Rs. 225 lakhs is repayable in 48 monthly instlaments starting from Jan 2022 at interest rate of MCLR 1%, and âSouth Indian Bank Limited Rs. 86 lakhs is repayable in 48 monthly instlaments starting from March 22 at interest rate of MCLR 1%.
GECL Term loan availed from IDBI Bank Rs. 480 lakhs is repayable in 48 monthly instalments starting from March 23 at interes rate of MCLR 1% and from Indian Bank Rs. 1800 lakhs repayable in 48 monthly instalments from Jan 24 at intereset rate of MCLR 1%."
Security Term loans
"The above Term Loan from Banks i.e., Indian Bank is secured by first pari passu charge on all fixed assets of the company including fixed assets of Chlorometahnes expansion project (excluding specific LC charges).
Working capital loans
The above Working capital term loan from Indian Bank secured by pari passu first charge on existing fixed assets of the Company and specific lien on government incentives receivable and personal guarantee of Shri. T.G.Venkatesh.âFor COVID / GECLs term loans from Banks India Bank, IDBI Bank, Punjab National Bank and South Indian Bank shall rank 2nd charge with existing credit faciliites.
Letter of Credit
Letters of credit for capital goods secured by exclusive charge on specific asset procured and guaranteed by Shri T.G.Venkatesh. The LC creditors for Capital goods were fully secured with 100% margin with Indian Bank.
There is no default as at 31st March, 2023, 31 st March 2022, in repayment of loans and interest payments on Working capital Loans, Letters of Credit issued and Bills discounted with Banks and others.
Security
a) Short Term Loans from Banks:
The above Working Capital Demand Loans and Cash Credits are with various banks at interest rate of MCLR plus Spread. Spread varies from 2.10% to 3.15%.
The Working Capital Demand Loans, Cash Credits and Bills discounted by Banks are secured by 1st pari passu charge by way of hypothecation of inventories and receivable of the Company and further secured by 2nd pari passu charge on land, building and Plant and machinery and guaranteed by Shri TG.Venkatesh.
b) Letters of Credit from Banks:
The above Letter of credit facility availed from Banks were secured by 1st pari passu by way of hypothecation of inventories and receivable of the Company and further secured by 2nd pari passu charge on land, building and Plant and machinery and Letters of credit for capital goods secured by exclusive charge on specific asset procured and guaranteed by Shri TG.Venkatesh.
c) Bills discounted with Can Bank Factors Ltd:
The above Sale Bill discounting facility from Can Bank Factors ltd is secured by second charge on respective fixed assets of the Company ranking pari passu with charges already created/ to be created by the Company and further guaranteed by Shri TG.Venkatesh and purchase bill discounting facility sanctioned by Can Bank Factors Ltd are secured by 2nd pari passu charge on fixed assets of the company."
A) Defined Contribution Plans
The Company makes Provident Fund and Superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.169.60 Lakhs (Previous year Rs.128.64 Lakhs) for Provident Fund contributions and Rs.47.57 Lakhs (Previous year Rs.28.75 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.
B) Defined Benefit Plan
The Company''s obligation towards the Gratuity Fund is a defined benefit plan and is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefits scheme and the amount recognized in financial statement as per Actuarial Valuation:
The Company records the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount as if the standard had been applied since the commencement date of the lease, but discounted at the Company''s incremental borrowing rate at the date of initial application.
Level 1: Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.
There are no transfers between levels 1 and 2 during the year.
Note 33: Capital Management & Risk management Capital management
The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. âThe Company''s capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings. âThe Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects and strategic acquisitions, to capture market opportunities at minimum risk.
Financial risk management and objectives and policies
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.
A Special Team with Senior Executives having exposure in various fields has been formed to assist Executive Director and CEO in â(a) Overseeing and approving the Company''s enterprise wide risk management framework, and â(b) Overseeing that all the risks that the organisation faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks. âThe Executive Director and CEO, monitors and reports on the principal risks and uncertainties that can impact the Company and its ability to achieve strategic objectives. The Company''s management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.
A. Market risk
The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/liabilities affected by this risk are borrowings, letter of credits and trade receivables.
The Company''s investments in listed and non-listed equity securities are susceptible to price risk arising from uncertainties about future value of the investment secutities. The Company''s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The company''s Board of Directors reviews and approves all equity investment decisions.
The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$, EUR, JPY CHF, Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.
The special team as mentioned above analysis the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.
Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk.
B. Credit risk
"Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the marketing department and in case the limits are exceeded, steps will be taken by the marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by ECGC Coverage or advance receipts. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.âExport sales are fully secured through ECGC Coverage or against advance receipts. (refer Note No.8(a) for Trade Receivbles outstanding)."
C. Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
(b) During the year 2022-23, the Company lodged a claim on A.P Gas Power Corporation Limited (APGPCL), a captive power generating Company by issuing debit note for an amount of Rs. 4766.73 Lakhs towards power purchased from APGPCL being full credit not given by Southern Power Distribution Company of A.P Ltd (APSPDCL) for the power supplied by APGPCL and APSPDCL also raised demand for the same power purchased from APGPCL on account of certain disputes pending between the above two companies.
Note 38: Revenue from contracts with Customers:
The Company produces Chloro-Alkali & Chloromethane products and also Castor Derivatives and Fatty Acids. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.
Revenue from sale of goods is recognized when control of the products being sold is transferred to our customer and when there are no longer any unfulfilled obligations.
The Performance Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
Income from services rendered is recognized based on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.
Interest income is recognized using the effective interest rate (EIR) method.
B. Remaining Performance Obligations
The remaining performance obligation disclosure provides the aggregate amount of transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.
Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of entity''s performance completed to date.
The aggregate amount of transaction price allocated to remaining performance obligations as per the requirements of Ind AS 115 is Rs.8500.34 Lakhs (Previous year Rs.15173.49 Lakhs) out of which, approximately 100% (Previous year 100%) is expected to be recognized as revenues within one year.
Note:
1. Total Debt = Long term Borrowings (including current maturities of Long term Borrowings), Sales tax deferrment loan (current and non-current),âshort term borrowings and Interest accrued on Debts
2. Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations Interestâ other adjustments like loss on sale of Fixed assets etc
3. Debt service = Interest & Lease Payments Principal Repayments
4. Avg. Shareholder''s Equity = Average of Opening Total Equity and Closing Total Equity
5. Avg. Inventory = Average of Opening Inventory and Closing Inventory
6. Avg. Trade Receivable = Average of Opening Trade Receivables and Closing Trade Receivables
7. Avg. Trade Payables = Average of Opening Trade Payables and Closing Trade Payables
8. Working capital shall be calculated as current assets minus current liabilities
9. Capital Employed = Tangible Net Worth (excluding revaluation reserve) Total Debt Deferred Tax Liability
10. Average Total Assets = Average of Opening Total Assets and Closing Total Assets
11. Avgerage Total equity = Average of Opening Equity Share capital Other equity and Closing Equity share capital Other equity.
Note 43: Additional Regulatory Information:
(1) The Company has not granted any loans or Advances in the nature of Loans to Promoters, Directors , KMPs and other related parties
(2) The Company is not holding any Benami property and no proceeding has been initiated or pending against the company.
(3) The Company has no transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey or any relevant provisions of Income Tax Act, 1961).
(4) (A) The Company has not advanced or loaned or invested any funds in any other person(s) or entity(ies),
including foreign entities (intermediaries).
(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party).
(5) The Company is not declared as willful defaulter by any Bank or Financial Institutions or RBI or other lenders.
(6) The Company has borrowings from Banks or Financial Institutions on the basis of security of Current Assets.
Quarterly returns or Statement of Current Assets filed by the company with Banks or Financial Institutions are in agreement with the Books of Accounts with some insignificant variances.
(7) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
(8) The company has no transactions and no relationship with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.
(9) The company has no subsidiaries.
(10) There are no Schemes of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
(11) The Company has not invested or traded in Crypto currency or Virtual Currency during the financial year 202223 and Previous year 2021 -22.
44. Figures have been rounded off to the nearest decimal of lakhs as required under Schedule III.
45. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2018
Note 1: General Information
TGV SRAAC LIMITED (formerly known as Sree Rayalaseema Alkalies and Allied Chemicals Limited) incorporated on 24th June, 1981 is the flagship company of the TGV Group. It is the leading producer of Chlor-Alkali products and also manufactures Castor Derivatives and Fatty Acids.
The Company is a public limited company domiciled in India. The equity shares of the Company are listed on Bombay Stock Exchange Limited (BSE).
The financial statements are approved for issue by the Companyâs Board of Directorâs on 5th May, 2018.
Estimation of fair value
The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:
current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences The main input used is the price per square metre as per state governmentâs registration and stamps department rate for the property. All resulting fair value estimates for investment properties are included in level 2.
* The Company has invested 23.43% in equity share capital of M/s. NCS Sugars Ltd, for procurement of power under power purchase agreement. It is clearly demonstrated by an agreement that there will not be any participation by TGV SRAAC Ltd for voting in any policymaking/decision making processes of NCS Sugars Ltd and also there is no representation on the board of directors or equivalent governing body of the NCS Sugars Ltd. As evidenced by such understandings, the Company does not exercise any control or have significant influence over the NCS Sugars Ltd. Hence investment in NCS Sugars Ltd., is not considered as an associate of the Company for accounting investment under equity method under Ind-AS 28 âInvestments in Associates and Joint Venturesâ.
No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person.
No interest is charged on Trade Receivables for delay in payment beyond credit period from the due date of the Invoice.
The Company has used a practical expedient by computing the expected credit loss allowance for Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates are given in the provision matrix. The provision matrix at the end of the Reporting Period is as follows :
Terms/ rights attached to equity shares
The company has only one class of equity shares having par value of INR 10 per share. 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.
As per records of the Company including its register of share holders/members and other declarations received from share holders regarding benificial interest, the above share holding represents legal ownership of shares as at balance sheet date.
Out of Equity shares issued, subscribed and fully paid up 2,86,10,955 No. of equity shares of Rs.10/-each alloted on preferential allotment to Financial Institutions IDBI/IFCI by convertion of 15% Rupee/F.C loans and Debentures on 8th March, 2005.The company has alloted 1,45,80,000 number of equity shares of Rs.10/- each on 8th March, 2005 and 54,20,000 on 25th April, 2006 to promotors group on preferential allotment by conversion of 2,00,00,000 fully paid share warrants issued on 8th March, 2005.
The Company has alloted 39,36,042 number of equity shares of Rs.10/- each on 5th April, 2014 and 37,39,240 number of Equity shares on 27th April, 2013 and 35,52,278 number of Equity Share on 10th Dec, 2012 to promotors group by conversion of 1,12,27,560 Share Warrants allotted on 19th Nov, 2012 on preferential basis.
During the year the Company has allotted 45,90,805 equity shares of Rs,10/- each on 8th July, 2017, 43,61,265 number of equity share of Rs.10/- on 27th Jan, 2017 and 41,43,202 number of equity share of Rs.10/-each on 29th Jan, 2016 at a premium of Rs.7.02 to promotors group by conversion of 1,30,95,272 share warrants allotted on 13th Jan, 2016 on preferential basis.
Nature and purpose of other reserves Securities Premium Reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.
Capital Redemption Reserve
Cumulative Redeemable Preference shares issued<subscribed and fully paid up 1,88,82,332 of Rs.10/- each having a coupon rate of 0.01% from April, 2002 were alloted on sub-division and consolidation of 50% holding of equity shares and are redeemable after 15 year in 4 quarterly instalments commencing from 1.04.2018.As per section 55, of companies act, 2013 where such shares are proposed to be redeemed out of the profits of the company, there shall, out of such profits, be transferred, a sum equal to the nominal amount of the shares to be redeemed, to a reserve, to be called the Capital Redemption Reserve Account.
Other Reserve
Mandatory Redeemable Preference shares are treated as financial liability and are measured at amortised cost using effective rate of interest which is equivalent market rate of interest. The difference between fair value arrived using amortised cost and the actual issue value of preference shares is treated as other reserve.
Fair value of Equity Instruments through Other Comprehensive Income (FVTOCI)
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
General Reserve
The General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purpose. As General Reserve is created by a transfer from one component of Equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to profit or loss.
There is no default as at 31st March, 2018, 31st March 2017, 31st March 2016 in repayment of loans and interest payments on Term Loans. Terms of repayment
*Repayment of Term Loans from Banks in respect of Chloromethanes project availed from Indian Bank (repayable in 45 monthly instalments from Jan 2015 at interest rate of Base rate 2.80%p.a and additional term loan repayable in 39 monthly instalments from July, 2015 at interest rate of Base rate 3.30%p.a), United Bank of India (repayable in 72 monthly instalments from Oct, 2012 at interest rate of Base rate 4.50%p.a) and The South Indian Bank Ltd (repayable in 72 monthly instalments from April, 2012 at interest rate of Base rate 4.80%p.a and additional term loan repayable in 36 monthly instalments from April, 2016 at interest rate of Base rate 3.80%p.a).
**IFCI Ltd. Corporate Term Loan (Rs. 100 Cr. Loan is repayable in 48 monthly Instalments from Oct, 2016 and Rs. 45 Cr. loan is repayable in 48 monthly Instalments from December, 2017 and both carries interest rate of Base rate 1.50%p.a).
***Repayment of Working Capital term loans availed from IDBI Bank Ltd. (Rs. 629 lakhs repayable in 36 monthly instalments from April, 2015 and Rs.1571 Lakhs loan repayable in 20 Quarterly instalments from October, 2015 and both carries interest rate of Base rate 3.80%p.a). United Bank of India (Rs. 479 lakhs repayable in 36 monthly instalments from July, 2015 and Rs. 1198 lakhs repayable in 20 quarterly instalments from January, 2016 and both carries interest rate of Base rate 4.50%p.a).
The South Indian Bank Ltd. (Rs 215 lakhs repayable in 35 monthly instalments from August, 2015 and Rs. 539 lakhs repayable in 9 Quarterly instalments from April, 2016 and both carries interest rate of Base rate 3.80%p.a).
The Federal Bank Ltd. (Rs. 122 lakhs repayable in 36 monthly instalments from August, 2015 and Rs. 305 lakhs repayable in 20 quarterly instalments from April, 2016 and both carries interest rate of Base rate 3.80%p.a).
The Indian Bank (Rs. 5000 lakhs repayable in 60 monthly instalments from Febuary, 2019 at interest rate of MCLR 1year Spread 3.15%p.a). Preference shares Liability
Cumulative Redeemable Preference shares issued,subscribed and fully paid up 1,88,82,332 of Rs.10/- each having a coupon rate of 0.01% from April,2002 were alloted on sub-division and consolidation of 50% holding of equity shares and are redeemable after 15 years in 4 quarterly instalments commencing from 1st April, 2018 and are amortised using effective interest rate of 12%.
Security Term loans
The above Corporate Term Loan from IFCI Ltd is secured by first pari passu charge on immovable / movable assets of the company both present and future (excluding the project assets of Chloromethanes Project which are exclusively charged to Banks) and further guaranteed by the Chairman Sri.T.G.Venkatesh.
The above Term loans from Banks are secured by first pari passu charge on fixed assets of Chloromethanes Project, and 2nd pari - passu charge on other existing fixed assets and on the current assets and personal guarantee of Chairman Sri T.G.Venkatesh.
Working capital loans
The above Working capital term loans from banks by IDBI Bank Ltd., The South Indian Bank, The Federal Bank Ltd.and United Bank of India (agreed by company for modifying 2nd charge on fixed assets to 1st pari passu charge similar to other banks) are secured by first pari passu charge on current assets i.e., specific lien on incentives and first pari passu charge on entire fixed assets of the company excluding assets pertaining to Chloromethanes Project, Fatty Acid & Potassium Hydroxide Plant and personal guarantee of Chairman Sri. T.G.Venkatesh. For Indian Bank working capital term loan pari passu first charge on existing fixed assets of the company and specific lien on government incentives receivable and personal guarantee of Chairman Sri. T.G.Venkatesh.
a) Short Term Loans from Banks:
The above Working Capital Demand Loans and Cash Credits are with various banks at interest rate of MCLR plus Spread. Spread varies from 2.41% to 4.70%.
The Working Capital Demand Loans, Cash Credits and Bills discounted by Banks are secured by 1st pari passu charge by way of hypothecation of inventories and receivable of the company and further secured by 2nd pari passu charge on land, building and Plant and machinery and guaranteed by the Chairman Sri T.G.Venkatesh.
b) Letters of Credit from Banks:
The above Letter of credit facility availed from Banks were secured by 1st pari passu by way of hypothecation of inventories and receivable of the company and further secured by 2nd pari passu charge on land, building and Plant and machinery and Letters of credit for capital goods secured by exclusive charge on specific asset procured and guaranteed by the Chairman Sri T.G.Venkatesh.
c) Bills discounted with Canbank Factors Ltd:
The above Sale Bill discounting facility from Canbank Factors ltd is secured by second charge on respective fixed assets of the company ranking pari passu with charges already created/ to be created by the Company and further guaranteed by the and Chairman Sri T.G.Venkatesh and purchase bill discounting facility sanctioned by Canbank Factors Ltd are secured by 2nd pari passu charge on fixed assets of the company.
2. Employee Benefits:
A) Defined Contribution Plans
The Company makes Provident Fund and superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.99.12 Lakhs (Previous year Rs.94.16 Lakhs) for Provident Fund contributions and Rs.34.51 Lakhs (Previous year Rs.26.31 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.
B) Defined Benefit Plan
The Companyâs obligation towards the Gratuity Fund is a defined benefit plan and is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefits scheme and the amount recognised in financial statement as per Acturial Valuation:
3. Discontinued Operations Description:
The Power Purchase Agreement with Karnataka Electricity Board (Power Distribution Companies) pertaining to Bellary power plant was expired on 31.08.2012 and the agreement was not renewed and generation of power was stopped from September, 2012. The company has discontinued the operations of this segment from the year 2013-14 and exploring the possibilities for disposal of its Plant.
b) Fair value hierarchy
The following table provides the fair value measurement hierarchy of the Companyâs assets and liabilities. Quantitative disclosures fair value measurement hierarchy for assets as at 31st March 2018:
*the percentage of shareholding of the Company in Andhra Pradesh Gas Power Corporation Ltd companies is low and hence, it has not been provided with future projections including projected profit and loss account. Hence, the valuation exercise carried out by the Company with the help of available historical annual reports and other information in the public domain.
**NCS Sugars Ltd has not provided with future projections including projected profit and loss account by for the Company to use valuation techniques. Hence, the valuation exercise carried out by the Company with the help of available historical annual reports and other information in the public domain.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.
Note: There are no transfers between levels 1 and 2 during the year.
Note 4: Capital Management & Risk management Capital management
The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.
The Companyâs capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings.The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.
*Total Debt is defined as secured long-term including current maturities of borrowings excluding cummulative redeemable preference shares.
Financial risk management and objectives and policies
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.
A Special Team with Senior Executives having exposure in various fields has been formed to assist Executive Director and CEO in
(a) Overseeing and approving the Companyâs enterprise wide risk management framework, and
(b) Overseeing that all the risks that the organisation faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks.
The Executive Director and CEO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Companyâs management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.
A. Market risk
The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/ liabilities affected by this risk are borrowings, letter of credits and trade receivables.
The Companyâs investments in listed and non-listed equity securities are susceptible to price risk arising from uncertainities about future value of the investment secutities. The Companyâs non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The Companyâs Board of Directors reviews and approves all equity investment decisions.
Foreign Currency risk management
The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$, EUR, JPY. Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.
The special team as mentioned above analyses the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.
Foreign Currency Sensitivity Analysis
The Company is mainly exposed to US Dollor, EUR, JPY.
The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, JPY exchange rates, with all other variables held constant. The Companyâs exposure to foreign currency changes for all other currencies is not material.
Interest Rate Risk Management
Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk.
Interest Rate Sensitivity:
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating base rate borrowings, as follows:
B. Credit risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the Marketing Department and in case the limits are exceeded, steps will be taken by the Marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by ECGC Coverage. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.Export sales are secured through ECGC Coverage (refer Note No.8(a) for Trade Receivbles outstanding).
C. Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines. Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
5. Under the Micro, Small and Medium Enterprises Development Act, 2006 and in accordance with the notification issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises as defined in the said Act. The company is in the process of compiling the relevant information from its suppliers about their coverage under the said Act and hence required disclosures made to the extent available. This has been relied upon by the Auditors.
Note 6: First-time adoption of Ind AS Transition to Ind AS:
These are the Companyâs first financial statements prepared in accordance with Ind AS.The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March, 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April, 2016 (date of transition). In preparing opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.
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.
Ind AS optional exemptions
Deemed cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised 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 investment property covered by Ind AS 40 Investment Properties.Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.
Designation of financial instruments
Ind AS 101 allows an entity to make an irrevocable option at initial recognition for investments in equity instrument not held for trading to measure at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.The Company has elected to apply this exemption for its investment in equity instruments.
Leases
Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.The Company has elected to apply this exemption for such contracts/arrangements.
Ind AS mandatory exemptions
Estimates
An entityâs estimates in accordance with Ind ASs 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 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:- Investment in equity instruments carried at FVOCI; and- Impairment of financial assets based on expected credit loss model.
De-recognition of financial assets and liabilities
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
1 Investment property:
Ind AS 40 Investment property defines property (i.e land or a building â or part of a building â or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation or both as Investment property.Such properties identified by the Company are classified as Investment property in the balance sheet. The Investment properties are measured at cost and any incidental expenses have been added to the investment property.
2 Fair valuation of investments:
Under IGAAP Long-term Investments are usually carried at cost. Whereas under Ind AS 109 Financial Instruments, the equity instruments not held for trading, an entity can make an irrevocable option at initial recognition and measure the same at fair value and resulting fair value changes are recognised through Other Comprehensive Income (OCI).The Company has measured the equity instruments at fair value through OCI and gains/losses if any has been recognised through OCI.
3 Trade receivables
As per Ind AS 109 Financial Instruments, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. Impairment loss allowance is made in financial statements after considering âExpected Credit Loss modelâ. Where as under IGAAP provisions for trade receivables are provided based on the best judgement of management after analysing the facts and circumstances.
4 Preference share capital
Under IGAAP Cumulative Redeemable Preference shares are treated as Share Capital. Whereas, under Ind AS 109 Financial Instruments the same is recognised as Financial Liability since it provides madatory redemption by the issuer and it is measured at amortised cost using effective interest rate.â
5 Borrowings
Ind AS 109 Financial Instruments, requires transaction costs to be deducted from the carrying amount of borrowings on initial recognition. These costs are then capitalised or recognised in the Statement of Profit or Loss over the tenure of borrowings as part of the interest expense by applying the effective interest method. The corresponding adjustments have been recognised in retained earnings and to fixed assets as at the date of transition and subsequently in the Statement of Profit or Loss.
6 Government Grants
Under IGAAP Deferred sales tax loan is shown under long-term borrowings and Capital investment subsidy is shown under Capital reserve. Whereas, under Ind AS Deferred sales tax loan is classified as Government grants and amount proportionate to the notional interest cost is recognised in the Statement of Profit or Loss.Capital investment subsidy is also classified as Government grant and amortised to the Statement of Profit or Loss over the remaining useful life of assets.
7 Re-measurement of post-employment benefit plans
Under IGAAP remeasurement gains and losses relating to post employment benefits based on actuarial valuation were forming part of the Statement of Profit and Loss. Whereas under Ind AS these measurements are recognised through Other Comprehensive Income (OCI).
8 Deferred tax
IGAAP requires deferred tax accounting using income statement approach i.e recognising tax effect on timing difference between the accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e tax effect on temporary differences between carrying amount and tax base. Also deferred taxes are recognised on account of the above mentioned changes.
9 Retained earnings
Retained earnings as at April 1, 2016 have been adjusted consequent to the above Ind AS transition adjustments.
10 Other comprehensive income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans, fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.
Mar 31, 2016
1. The Company has no Subsidaries/ Associates and has no Holding Company.
2. Out of Equity shares issued, subscribed and fully paid up 2,86,10,955 No. of equity shares of Rs.10/- each alloted on preferential allotment to Financial Institutions IDBI/IFCI by convertion of 15% Rupee/F.C loans and Debentures on 08.03.2005.The company has alloted 1,45,80,000 No.of equity shares of Rs.10/- each on 08.03.2005 and 54,20,000 on 25.04.2006 to promotors groupon on preferential allotment by conversion of 2,00,00,000 fully paid share warrants issued on 08.3.2005.
The Company has allotted 39,36,042 No. of equity shares of Rs.10/- each on 05.04.2014 and 37,39,240 No. of Equity shares on 27.04.2013 and 35,52,278 No. of Equity Share on 10.12.2012 to promotors group on preferential allotment by conversion of 1,12,27,560 Share Warrants allotted on 19.11.2012.
During the year, the company has allotted 41,43,202 No. of Equity shares of Rs. 10/- each at premium of Rs. 7.02 on 29-01-2016 to Promoter Group on Preferential allotment by conversion out of 1,30,95,272 Share Warrants allotted on 31-01-2016
3. Cumulative Redeemable Preference shares issued, subscribed and fully paid up 1,88,82,332 of Rs.10/- each having a coupon rateof 0.01% from April, 2002 were alloted on sub-division and consolidation of 50% holding of equity shares and are redeemable after 15 year in 4 quarterly installments commencing from 01.04.2018.
4. Redeemable Optionally Fully Convertible Debentures of 5% Series "B" 2,05,177 of Rs.100/- each issued to IFCI Ltd as per restructuring package were redeemed in full during the year 2015-16.There were no defaults in redemption of debentures and IFCI Ltd not exercised the option of conversion to the extent of outstanding balance as on 31.3.2016 of Rs.NIL lakhs (as on 31.3.2015 Rs.23.51 lakhs).
5 There were no Long Term Deposits and Finance Lease obligations .
6 There is no default as on 31.3.2016/31.03.2015 in repayment of loans and interest payments on Debentures and Term Loans.
7 Redeemable Optionally Fully Convertible Debentures of 5% Series "B" 2,05,177 of Rs.100/-each issued to IFCI Ltd as per restructuring package were redeemed in full during the year 2015-16.There were no defaults in redemption of debentures and IFCI Ltd not exercised the option of conversion to the extent of outstanding balance as on 31.3.2016 of Rs.NIL lakhs (as on 31.3.2015 Rs.23.51 lakhs).
@ Repayment of Term Loans from Banks in respect of Chloromethane Project availed from Indian Bank (repayable in 45 monthly installments from Jan 2015 and additional term loan repayable in 39 monthly installments from July, 2015), United Bank of India (repayable in 72 monthly installments from Oct, 2012) and The South Indian Bank Ltd. (repayable in 72 monthly installments from April, 2012 and additional term loan repayable in 36 monthly installments from April, 2016).
# Repayment of Working Capital term loans availed from IDBI Bank Ltd. (Rs. 629 lakhs repayable in 36 monthly installments from April, 2015 and Rs. 1571 lakhs loan repayable in 20 Quarterly installments from October, 2015), United Bank of India (Rs. 479 lakhs repayable in 36 monthly installments from July, 2015 and Rs. 1198 lakhs repayable in 20 quarterly installments from January, 2016), The South Indian Bank Ltd., (Rs. 215 lakhs repayable in 35 monthly installments from August, 2015 and Rs. 539 lakhs repayable in 9 Quarterly installments from April, 2016) and The Federal Bank Ltd. (Rs. 122 lakhs repayable in 36 monthly installments from August, 2015 and Rs. 305 lakhs repayable in 20 quarterly installments from April, 2016).
8 SECURITY:
A) TERM LOANS
1) The above Corporate Term Loan from IFCI Ltd is secured by first pari passu charge on immovable / movable assets of the company both present and future (excluding the project assets of Chloromethane Project which are exclusively charged to Banks) and the project assets of Fatty Acids & Potassium Hydroxide, Power Plant at Bellary which are exclusively charged to IFCI will also form part of fixed assets for first pari passu charge after repayment of existing loans by March, 2016 and further guaranteed by the Chairman and Managing Director, Sri.T.G.Venkatesh.
2) The above Term loans from Banks are secured by first pari passu charge on fixed assets of Chloromethane Project, and 2nd pari passu charge on other existing fixed assets and on the current assets and personal guarantee of Chairman and Managing Director Sri T.G.Venkatesh.
3) The above Working capital term loans from banks by IDBI Bank Ltd. and The Federal Bank Ltd. are secured by first pari passu charge on current assets i.e., specific lien on incentives and first pari passu charge on entire fixed assets of the company exculding assets pertaining to Chloromethane Project and personal guarantee of Chairman and Managing Director Sri. T.G.Venkatesh and for United Bank of India and The South Indian Bank Ltd. are secured by first pari passu charge on on current assets i.e., specific lien on incentives and second pari passu charge on fixed assets of the company and personal guarantee of Chairman and Managing Director Sri. T.G.Venkatesh.
9 There were no loans repayable on demand and short term Deposits/loans and advances from related parties.
10 There is no default as on 31.03.2016 (31.03.2015) in repayment of loans and interest payments on Working capital Loans, Letters of Credit
issued and Bills discounted with Banks and others.
11 SECURITY
a) Short Term Loans from Banks:
The above Working Capital Demand Loans,Cash Credits and Bills discounted by Banks are secured by 1st pari passu charge by way of hypothecation of inventories and receivable of the company and further secured by 2nd pari passu charge on land, building and Plant and machinery and guaranteed by the Chairman and Managing Director, Sri T.G.Venkatesh.
b) Letters of Credit from Banks:
The above Letter of credit facility availed from Banks were secured by 1st pari passu by way of hypothecation of inventories and receivable of the company and further secured by 2nd pari passu charge on land, building and Plant and machinery and letters of credit for capital goods secured by exclusive charge on specific asset procured guaranteed by the Chairman and Managing Director,Sri T.G.Venkatesh.
c) Bills discounted with Can Bank Factors Ltd:
The above Sale Bill discounting facility from Can Bank Factors ltd is secured by second charge on respective fixed assets of the company ranking pari passu with charges already created/ to be created by the Company and further guaranteed by the Chairman and Managing director, Sri T.G.Venkatesh and purchase bill discounting facility sanctioned by Can Bank Factors Ltd are secured by 2nd pari passu charge on fixed assets of the company.
12. DISCONTINUEING OPERATIONS OF POWER PLANT AT BELLARY:
Disclosures under Accounting Standard (AS-24)
The Power Purchase Agreement with Karnataka Electricity Board (Power Distribution Companies) was expired on 31.08.2012 and the agreement was not renewed and generation of power was stopped from September, 2012. The company has discontinued the operations of this segment from the year 2013-14 and exploring the possibilities for disposal of its Plant.
13. a) Exchange differences on Foreign Currency Term Loans from Financial Institutions in respect of installments paid during the year resulting
in loss amounting toRs.30.50 lakhs (previous year loss Rs.3.98lakhs) and exchange difference on loans outstanding as on 31.3.2016 amounting to Rs. Nil (being loans repaid during the year) charged to statement of profit and loss as per AS-11 (previous year gain Rs.19.10 lakhs).
b) The Exchange difference in respect of imports and exports during the year resulting in loss amounting to Rs.310.64 lakhs debited to Statement of Profit and Loss. (Previous Year gain Rs.81.51 lakhs)
14. Lease Payments: The total future minimum lease payments under non-cancelable operating leases are as under:
15. Employee Benefits:
A) Defined Contribution Plans
Company makes Provident Fund and superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 90,16,376 (Previous year Rs.80,90,186/-) for Provident Fund contributions and Rs. Nil (Previous year Rs.6,13,785/) for Superannuation Fund contributions in the Statement of Profit and Loss. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.
B) Defined Benefit Plan
The Companyâs obligation towards the Gratuity Fund is a defined benefit plan and is funded with Life Insurance Corporation of India. The disclosures in respect of actuarial valuation of gratuity as required under Accounting Standard 15 are given below.
16. Balances of Sundry Creditors and Debtors are shown as appearing in the books of account of the company and the company has sent confirmation letters to the parties and the confirmations are awaited.
17. Earnings per Share:
Basic and diluted earnings per share calculated in compliance with the provisions of Accounting standard (AS20) for the year ending 31.03.16 comes to Rs. 3.07 p.a (Previous year Rs.2.82 p.a.) and Rs.3.06 p.a (previous year Rs.2.80 p.a.) respectively.
The denominator for Basic EPS is 7,94,35,974 (previous year 7,86,66,928) equity shares and the numerator is net profit after tax as per Profit and Loss account and after adjusting preference dividend for the year and tax thereon, amounting to Rs. 24,41,49,340 (previous year Rs.22,14,93,029 )
The denominator for diluted EPS is increased by potential equity deemed to be issued for OFCD i.e 7,95,96,249 (previous year 7,90,83,643) and the numerator for this calculation is the net profit after tax as per Statement of Profit and Loss and after adjusting preference dividend and the interest at 5 % on OFCDs and the tax liability thereon, amounting to Rs. 24,42,12,681 (previous year Rs.22,16,57,714)
18. Figures have been rounded off to the nearest decimal of lakhs as required under revised Schedule - III.
19. Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2015
1.1 EXCEPTIONAL ITEM:
The company has opted to exit from CDR Scheme and also paid recompense
amount in the previous year of Rs. 1345.71- lakhs as per CDR Scheme
terms and conditions and the exit certificate received from CDR forum
during the current year.
1.2 DISCONTINUEING OPERATIONS OF POWER PLANT AT BELLARY: Disclosures
under Accounting Standard (AS24)
The Power Purchase Agreement with Karnataka Electricity Board (Power
Distribution Companies) was expired on 31.08.2012 and the agreement was
not renewed and generation of power was stopped from September, 2012.
The company has discontinued the operations of this segment from the
year 2013-14 and exploring the possibilities for disposal of its Plant.
1.3 a) Exchange differences on Foreign Currency Term Loans from
financial institutions in respect of installments paid during the year
resulting in Profit amounting toRs.3.98 lakhs(previous year Loss
Rs.66.58 lakhs) and exchange difference on outstanding loans as on
31.3.2015 valued at applicable Foreign Currency Exchange Rates on 31st
March, 2015 resulting in Loss amounting to Rs. 19.10 lakhs debited to
statement of profit and loss as per AS-11 (previous year Loss Rs.128.95
lakhs).
b) The Exchange difference in respect of imports and exports during the
year resulting in Profit amounting to Rs.81.51 lakhs credited to
Statement of Profit and Loss. (Previous Year Loss Rs. 186.30 lakhs)
1.4 Lease Payments: The total future minimum lease payments under
non-cancelable operating leases are as under:
1.5 Employee Benefits:
A) Defined Contribution Plans
The Company makes Provident Fund and superannuation Fund contributions
which are defined contribution plans, for qualifying employees. Under
the Scheme, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognized Rs.80,90,186 (Previous year Rs.78,69,008)for Provident Fund
contributions and Rs.6,13,785 (Previous year Rs.23,94,257) for
Superannuation Fund contributions in the Statement of Profit and
Loss.The contribution payable to these plans by the Company is at rates
specified in the rules of the schemes.
B) Defined Benefit Plan
The Company's obligation towards the Gratuity Fund is a defined benefit
plan and is funded with Life Insurance Corporation of India. The
disclosures in respect of actuarial valuation of gratuity as required
under Accounting Standard 15 are given below.
1.6 Under the Micro, Small and Medium Enterprises Development Act,
2006 and in accordance with the notification issued by the Ministry of
Corporate Affairs, certain disclosures are required to be made relating
to Micro, Small and Medium Enterprises as defined in the said Act.The
company is in the process of compiling the relevant information from
its suppliers about their coverage under the said Act and hence
required disclosures made to the extent available. The following are
outstanding balances as at 31.03.2015:
A] SMALL ENTERPRISES-Rs.2211.82Lakhs (Previous Year Rs.2274.18Lakhs);
B] MICRO ENTERPRISES -Rs. 18.06Lakhs(Previous Year Rs.317.45Lakhs); and
C] MEDIUM ENTERPRISES- Rs.545.08Lakhs(Previous Year Rs.817.99Lakhs);
1.7 Balances of Sundry Creditors and Debtors are shown as appearing
in the books of account of the company and the company has sent
confirmation letters to the parties and the confirmations are awaited.
1.8. Earnings per Share:
Basic and diluted earnings per share calculated in compliance with the
provisions of Accounting standard (AS20) for the year ending 31.03.15
comes to Rs. 2.82 p.a (Previous year Rs.0.64 p.a.) and Rs.2.80 p.a
(previous year Rs.0.638 p.a.) respectively.
The denominator for Basic EPS is 7.86,66,928 (previous year
7,45,18,447) equity shares and the numerator is net profit after tax as
per Profit and Loss account and after adjusting preference dividend for
the year and tax thereon, amounting to Rs. 22,14,93,029 (previous year
Rs.4,76,95,806 )
The denominator for diluted EPS is increased by potential equity deemed
to be issued for OFCD i.e 7,90,83,643 (previous year7,51,48,862) and
the numerator for this calculation is the net profit after tax as per
Statement of Profit and Loss and after adjusting preference dividend
and the interest at 5 % on OFCDs and the tax liability thereon,
amounting to Rs. 22,16,57,714 (previous year Rs.4,79,08,744)
1.9. Figures have been rounded off to the nearest decimal of lakhs as
required under revised Schedule VI.
1.10 Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2014
The Company has no Subsidaries/ Associates and has no Holding
Company.
1. Out of Equity shares issued, subscribed and fully paid up
2,86,10,955 No. of equity shares of Rs.10/- each alloted on
preferential allotment to Financial Institutions IDBI/IFCI by
convertion of 15% Rupee/F.C loans and Debentures on 08.03.2005.The
company has alloted 1,45,80,000 No.of equity shares of Rs.10/- each on
08.03.2005 and 54,20,0000 on 25.04.2006 to promotors group on
preferential allotment by conversion of 2,00,00,000 fully paid share
warrants issued on 08.3.2005. During the year, 37,39,240 No. of equity
shares of Rs.10/- each alloted on 27.04.2013 and 35,52,278 No. of
Equity Share of Rs.10/- each alloted on 10.12.2012 to promotors group
on preferential allotment by conversion out of 1,12,27,560 Share
Warrants alloted on 19.11.2012.
2. Cumulative Redeemable Preference shares issued, subscribed and fully
paid up 1,88,82,332 of Rs.10/- each having a coupon rate of 0.01% from
April, 2002 were alloted on sub-division and consolidation of 50%
holding of equity shares and are redeemable after 15 year in 4
quarterly instalments commencing from 01.04.2018.
3. Redeemable Optionally Fully Convertible Debentures of 5% Series "B"
2,05,177 of Rs.100/- each issued to IFCI Ltd as per restructuring
package are redeemable in 96 monthly instalments from April, 2008. In
case of default in redemption of debentures, option can be exercised by
IFCI Ltd to the extent of outstanding balance as on 31.3.2014 of
Rs.55.56 lakhs (as on 31.3.2013 Rs.76.93 lakhs) and no fixed date of
conversion.
4. There were no Long Term Deposits, Deferred Payments liabilities and
Finance Lease obligations.
5. There is no continuing default as on 31.3.2014 (31.03.2013) in
repayment of loans and interest payments on Debtentures and Term Loans,
except two monthly instalments of Rs. 480.27 Lakhs. Deferred payment of
Sales Tax of Rs.289.83 Lakhs was over due as per instalments granted by
the Department. The above amounts were clasified as other current
liablities.
6. Redeemable Optionally Fully Convertible Debentures of 5% Series "B"
2,05,177 of Rs.100/- each issued to IFCI Ltd as per restructuring
package are redeemable in 96 monthly instalments from April, 2008. In
case of default in redemption of debentures, option can be exercised by
IFCI Ltd to the extent of outstanding balance as on 31.3.14 of Rs.55.56
lakhs (as on 31.3.13 Rs.76.93 lakhs) and no fixed date of conversion.
7. SECURITY:
A) DEBENTURES:
1) The above Debentures issued to IDBI are secured by first charge of
all the Company''s immovable properties both present and future ranking
paripassu with the mortgages and charges created / to be created with
other loans and further secured by first charge by way of mortgage of
Company''s properties (save and except book debts and assets exclusively
charged / to be charged in favour of IDBI) including movable machinery,
machinery spares, tools and accessories present and future subject to
prior charge created and /or to be created in favour of Company''s
Bankers on the Company''s stock of raw materials as well as to Banks on
semi- finished and finished goods, consumable stores and such other
movables as may be agreed to by the Trustees for securing the
borrowings for working capital requirements in the ordinary course of
business and further secured by pledge of 804000 Nos. of APGPCL Equity
shares of Rs.10/- each and guaranteed by the Ex-Chairman and Managing
Director, Sri T.G. Venkatesh.
2) The above series "A" debentures issued to IFCI are secured in favour
of theirTrustees by way of first charge on all immovable properties
situated at Bellary both present and future and further secured by way
of first charge on company''s movable (save and except book-debts),
including movable machinery, machinery spares, tools and accessories;
present and future, subject to prior charge created and/or to be
created in favour of company''s bankers on the stock of raw materials,
semi finished foods, consumable stores and such other movable, as may
be agreed to by the trustees, for securing the borrowings for working
capital requirements in the ordinary course of business and further
guaranteed by Ex-Chairman and Managing Director, Sri T.G. Venkatesh.
3) The above series "B&C" debentures issued to IFCI are secured in
favour of theirTrustees by way of first charge on all immovable both
present and future and further secured by way of first charge on
company''s movable (save and except book-debts), including movable
machinery, machinery spares, tools and accessories; present and future,
subject to prior charges created and / or to be created in favour of
company''s bankers on the stock of raw materials, semi finished goods,
consumable stores and such other movable, as may be agreed to by the
trustees, for securing the borrowings for working capital requirements
in the ordinary course of business and further guaranteed by
Ex-Chairman and Managing Director, Sri T.G. Venkatesh.
B) TERM LOANS
1) The above Term Loans and Deferred loans from Institutions [except
the Term Loan amount of Rs.2448 lakhs from M/s. IFCI Ltd. secured by
first exclusive charge on the building, plant and machinery acquired
under project schemes of Fatty Acid, Pottassium Hydroxide / and power
plant at Bellary are secured by first charge on all the immovable
properties both present and future and further secured by first charge
by way of hypothecation of all movables (save and except book debts and
inventories including movable machineries, spares, tools, accessories
both at present and future, subject to prior charges created/ to be
created in favour of the company''s bankers as specified movables for
working capital requirements) and further Guaranteed by the Ex-Chairman
& Managing Director, Sri T.G. Venkatesh.
IFCI''s Additional Margin money for working capital loan outstanding of
Rs.230.21 Lakhs is further secured by pledge of 536000 Nos. of APGPCL
Equity shares of Rs.10/- each and corporate guarantee provided by Sree
Rayalaseema Hi-strength Hypo Ltd.
2) The above Term loans from Banks are secured by first pari passu
charge on fixed assets of chloromethanes Project, and 2nd pari-passu
charge on other existing fixed assets, 2nd pari passu charge on the
current assets and personal guaranteed by Ex-Chairman and Managing
Director, Sri T.G. Venkatesh.
8. SECURITY
a) Short Term Loans from Banks:
The above Working Capital Demand Loans,Cash Credits and Bills
discounted by Banks are secured by 1st pari passu charge by way of
hypothecation of inventories and receivable of the company and further
secured by 2nd pari passu charge on land, building and Plant and
machinery and guaranteed by the Ex-Chairman and Managing Director, Sri
T.G. Venkatesh.
b) Letters of Credit from Banks:
The above Letter of credit facility availed from Banks were secured by
1st pari passu by way of hypothecation of inventories and receivable of
the company and further secured by 2nd pari passu charge on land,
building and Plant and machinery and guaranteed by the Ex-Chairman and
Managing Director, Sri T.G. Venkatesh.
c) Bills discounted with Can Bank Factors Ltd:
The above Sale Bill discounting facility from Can Bank Factors Ltd is
secured by second charge on respective fixed assets of the company
ranking pari passu with charges already created/ to be created by the
Company and further guaranteed by the Ex-Chairman and Managing
Director, Sri T.G. Venkatesh and purchase bill discounting facility
sanctioned by Can Bank Factors Ltd are secured by 2nd pari passu charge
on fixed assets of the company.
9. Contingent Liabilities not provided in respect of : (Rs. in Lakhs)
Particulars Current Year Previous Year
2013-2014 2012-2013
a) Cheques/ Bills Discounted with Banks. 171.72 513.67
b) Unexpired Letter of Credits/Bank 804.11 786.63
guarantees (net of margin money paid)
c) Estimated amount of Contracts
remaining to be executed on Capital
Account. (Net of advances). 2824.88 4603.15
d) Arrears of dividend on cumulative
redeemable preference shares of
Rs.1888.23 lakhs 2.27 2.08 at a coupon
rate of 0.01 % issued and allotted as
per Debt Restructuring package and
scheme of arrangement sanctioned by
High Court of A.P. for the period from
01.04.2002 to 31.03.2014. (Payable
after 15 years) i.e., from 01.04.2018.
e) Claims against the company not
acknowledged as debts, being disputed
and pending in appeals/ Assessments in
respect of
i) Central excise matters regarding
Cenvat credit availed on input
consumables and on service tax payments
on input services like freight,
telephone, and courier etc., 370.78 368.62
ii) 1. Customs matters regarding
dispute on classification of goods
pending before High Court 9.90 9.90
2. Imposition of Anti Dumping Duty on
in puts during December, 2010 pending 32.69 32.69
before ADC, Customs
3. Disputed duty levied on import of
material during the year 2006-07
pending in appeal before the
Commissioner Appeals. 16.06 16.06
iii) Sales tax matters regarding Input
tax credit availed on fuels used for
steam generation disallowed by the 53.91 53.91
Department and levied penalty and (53.91) (53.91)
interest; Case is pending before
Hon'' ble High Court of AP (Paid under
Protest )
iv) Claims of Vat regarding dispute
of Turnover, input tax credit on
sales returns and stock transfer value 44.24 44.24
treated as sale on account of non (6.94) (5.13)
acceptance of form F are pending in
appeal before Appellate Asst.
Commissioner (CT) Palakkad and Sales
Tax Tribunal, Ernakulam (Paid under
protest)
v) Claim of entry tax & interest on
Entry Tax payable on Machinery items is
pending before Assessing Officer DC 4.20 4.20
(CT), Bellary (50% Paid ) (2.10) (2.10)
vi) Sales tax matters regarding 132.11 132.11
liability of interest on delay in (44.04) -
payment of deferred sales tax liability
for the years 2005-06 and 2006-07. Stay
petition filed and stay granted by
Hon''ble High Court of AP. (Paid under
protest)
vii) Liability of differential tax for
non submission of C forms for the year
2009-10 Case is pending before Appellate 16.43 16.43
Deputy Commissioner ( Paid under (2.05) (2.05)
protest)
vi) Levy of delay charges on late
payment of Provident Fund by Regional 15.34 15.34
Provident Fund Commissioner.
vii) 1) Wheeling Charges levied by
APCPDCL pending in Supreme Court 24.21 24.21
2) Wheeling charges levied on APGAS
power supplies covered by Bank NIL NIL
guarantee Rs.69.30lakhs
x) The Fuel Surcharge Adjustment (FSA)
charges for the year 2008-09, 2009-10 and
for the 1st quarter of 2010-11 payable to 1567.27 1567.27
APCPDCL was contested by the Industrial
units including the company before
Hon''ble High Court of A.P. and obtained
favourable order for 2008-09 and the
matter was referred to Supreme Court and
the same is pending. Hon''ble High Court
granted stay for the year 2009-10 and
first quarter of 2010-11.
f) Differential duty on procurement of
raw material as per show cause notices
issued by the Customs Authorities is
contested and for which no provision is
considered as there will be on the 1161.14 1161.14
no liability company as per legal (125.00) (125.00)
opinion obtained (paid under Protest)
g) Demand raised by Power Distribution
Companies (DISCOMS) for the differential
tax on account of change in Income Tax
rates / tax holiday as per terms of PPA
was contested by the Company before the
Electricity Regulatory Commission and 500.00 500.00
the liability has been reduced to (500.00) (500.00)
Rs. 500 lakhs. The DISCOMS have
recovered the same from monthly bills.
The company contested before the Supreme
Court for refund of the recovered amount
and it is pending. (Recovered amount is
shown under loans and advances)
10. EXCEPTIONAL ITEM:
The company has opted to exit from CDR Scheme and the CDR Lenders (FIs
and Banks) have agreed and claimed the recompense amount of Rs.1345.71
lakhs as per CDR Scheme terms and conditions. The Company has
considered the recompense amount as an exceptional item of expenditure
in the accounts for the year 2013-14.
11. a) Exchange differences on Foreign Currency Term Loans from
financial institutions in respect of installments paid during the year
resulting in Loss amounting to Rs.66.58 lakhs (previous year Loss Rs.
27.08 lakhs) and exchange difference on outstanding loans as on
31.3.2014 valued at applicable Foreign Currency Exchange Rates on 31st
March, 2014 resulting in Loss amounting to Rs.128.95 lakhs debited to
statement of profit and loss as per AS-11 (previous year Loss Rs.67.35
lakhs).
b) The Exchange difference in respect of imports and exports during the
year resulting in Loss amounting to Rs.186.30 lakhs charged to
Statement of Profit and Loss. (Previous Year Loss Rs. 23.91 lakhs)
12. Employee Benefits:
A) Defined Contribution Plans
The Company makes Provident Fund and superannuation Fund contributions
which are defined contribution plans, for qualify- ing employees. Under
the Scheme, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognized Rs.78,60,153/- (Previous year Rs. 80,47,727/-) for Provident
Fund contributions and Rs.23,74,629/- (Previous year Rs.23,98,472/-)
for Superannuation Fund contributions in the Statement of Profit and
Loss. The contribution payable to these plans by the Company is at
rates specified in the rules of the schemes.
13. Under the Micro, Small and Medium Enterprises Development Act,
2006 and in accordance with the notification issued by the Ministry of
Corporate Affairs, certain disclosures are required to be made relating
to Micro, Small and Medium Enterprises as defined in the said Act. The
company is in the process of compiling the relevant information from
its suppliers about their coverage under the said Act and hence
required disclosures made to the extent available. The following are
outstanding balances as at 31.03.2014:
A] SMALL ENTERPRISES - Rs.2274.18 Lakhs (Previous Year Rs.2315.44
Lakhs)
B] MICRO ENTERPRISES - Rs.317.45 Lakhs (Previous Year Rs. 41.29 Lakhs);
and
C] MEDIUM ENTERPRISES - Rs.817.99 Lakhs (Previous Year Rs. 252.39
Lakhs);
14. Balances of Sundry Creditors and Debtors are shown as appearing
in the books of account of the company and the company has sent
confirmation letters to the parties and the confirmations are awaited.
15. Earnings per Share:
Basic and diluted earnings per share calculated in compliance with the
provisions of Accounting standard (AS-20) for the year ending 31.03.14
comes to Rs. 0.64 p.a (Previous year Rs.5.50 p.a.) and Rs 0.638 p.a
(previous year Rs.5.44 p.a.) respectively.
The denominator for Basic EPS is 7,45,18,447 (previous year 6,85,73,568
) equity shares and the numerator is net profit after tax as per Profit
and Loss account and after adjusting preference dividend for the year
and tax thereon, amounting to Rs.4,76,95,806 (previous year Rs.
37,72,56,038).
The denominator for diluted EPS is increased by potential equity deemed
to be issued for OFCD i.e 7,51,48,862 (previous year 6,94,60,423) and
the numerator for this calculation is the net profit after tax as per
Statement of Profit and Loss and after adjusting preference dividend
and the interest at 5 % on OFCDs and the tax liability thereon,
amounting to Rs.4,79,08,744 (previous year Rs. 37,75,55,595).
16. Figures have been rounded off to the nearest decimal of lakhs as
required under revised Schedule VI.
17. Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
/ disclosure.
Mar 31, 2013
1.1 There were no Long Term Deposits, Deferred Payments liabilities and
Finance Lease obligations.
1.2 There is no continuing default as on 31.03.2013 (31.03.2012) in
repayment of loans and interest payments on Debtentures, Term Loans and
Letter of Credit and sales tax deferment as per instalments granted by
the Department.
1.3 Redeemable Optionally Fully Convertible Debentures of 5% Series "B"
2,05,177 of Rs.100/- each issued to IFCI Ltd. as per restructuring
package are redeemable in 96 monthly instalments from April, 2008. In
case of default in redemption of debentures, option can be exercised by
IFCI Ltd. to the extent of outstanding balance as on 31.3.13 of
Rs.76.93 lakhs (as on 31.3.12 Rs.102.58 lakhs) and no fixed date of
conversion.
1.4 SECURITY:
A) DEBENTURES:
1) The above Debentures issued to IDBI are secured by first charge of
all the Company''s immovable properties both present and future ranking
paripassu with the mortgages and charges created / to be created with
other loans and further secured by first charge by way of mortgage of
Company''s properties (save and except book debts .and assets
exclusively charged / to be charged in favour of IDBI) including
movable machinery, machinery spares, tools and accessories present and
future subject to prior charge created and /or to be created in favour
of Company''s Bankers on the Company''s stock of raw materials as well as
to Banks on semi-finished and finished goods, consumable stores and
such other movables as may be agreed to by the Trustees for securing
the borrowings for working capital requirements in the ordinary course
of business and further secured by pledge of 8,04,000 Nos. of APGPCL
Equity shares of Rs.10/- each and guaranteed by the Ex-Managing
Director, Sri T.G.Venkatesh.
2) The above series "A" debentures issued to IFCI are secured in favour
of theirTrustees by way of first charge on all immovable properties
situated at Bellary both present and future and further secured by way
of first charge on company''s movable (save and except book-debts),
including movable machinery, machinery spares, tools and accessories;
present and future, subject to prior charge created and/or to be
created in favour of company''s bankers on the stock of raw materials,
semi finished foods, consumable stores and such other movable, asjnay
be agreed to by the trustees, for securing the borrowings for working
capital requirements in the ordinary course of business and further
guaranteed by Ex-Managing Director, Sri T.G.Venkatesh.
3) The above series "B&C" debentures issued to IFCI are secured in
favour of their Trustees by way of first charge on all immovable both
present and future and further secured by way of first charge on
company''s movable (save and except book-debts), including movable
machinery, machinery spares, tools and accessories; present and future,
subject to prior charges created and / or to be created in favour of
company''s bankers on the stock of raw materials, semi finished goods,
consumabler stores and such other movable, as may be agreed to by the
trustees, for securing the borrowings for working capital requirements
in the ordinary course of business and further guaranteed by
Ex-Managing Director, Sri T.G.Venkatesh.
B) TERM LOANS
1) The above Term Loans and Deferred loans from Institutions [except
the Term Loan amount of Rs.2448 lakhs from M/s. IFCI Ltd., secured by
first exclusive charge on the building, plant and machinery acquired
under project schemes of Fatty Acid, Pottassium Hydroxide / and power
plant at Bellary are secured by first.charge on all the immovable
properties both present and future and further secured by first charge
by way of hypothecation of all movables (save and except book debts and
inventories including movable
¦ macnineries.spares.tools, accessories both at present and
future,subject to prior charges created/ to be created in favour of the
company''s bankers as specified movables for working capital
requirements) and further.Guaranteed by the Ex-Managing Director,
Sri''T.G.Venkatesh: IFCI s Additional Margin money fpr working capital
loan outstanding of Rs.318.75 Lakhs is further secured by pledge of
5,36,000 Nos. of APGPCL Equity shares of Rs.10/- each.and corporate
guarantee provided by Sree Rayalaseema Hi-strength Hypo Ltd.
2) The above Term loans from Banks are secured by first pari passu
charge on fixed assets of chloromethanes Project, and 2"" pari-passu
charge on other existing fixed assets, 2"a pari passu charge on the
current assets and personal guarantee by Ex-Managing Director, Sri
T.G.Venkatesh.
C) Specific Letter of Credit
'' The above Letter of credit is secured by specific charge on import of
capital goods out of this LC and Lien on fixed deposits of build-up
margin every month.
2.1 There were no loans repayable on demand and short term
Deposits/loans and advances from related parties.
2.2 There is no default as on 31.3.2013 (31.03.2012) in repayment of
loans and interest payments on Working capital Loans, Letters of Credit
issued and Bills discounted by Banks and others.
2.3 SECURITY
a) Short Term Loans from Banks
The above Working Capital Demand Loans.Cash Credits and Bills
discounted by Banks are secured by 1* pari passu charge by way of
hypothecation of inventories and receivable of the company and further
secured by'' 2nd pari passu charge on land, building and Plant and
machinery and guaranteed by the Ex-Managing Director, Sri
T.G.Venkatesh.
b) Letters of Credit from Banks:
The above Letter of credit facility availed from Banks were secured by
1s" pari passu by way of hypothecation of inventories and receivable of
the company and further secured by 2"" pari passu charge on land,
building artfj Plant and machinery and guaranteed by the Ex-Managing
Director, Sri T.G.Venkatesh
c) Bills discounted with Can Bank Factors Ltd
The above Sale Bill discounting facility from Can Bank Factors ltd is
secured by second charge on respective fixed assets of the company
ranking pari passu with charges already created/ to be created by the
Company and further guaranteed by the Ex-Managing Director. Sri
T.G.Venkatesh and purchase bill discounting facSfty sanctioned by Can
Bank Factors Ltd. are secured by 2nd pari passu charge on fixed assets
of the Company.
3.1 During the year, the company has opted to exit from CDR Scheme and
the CDR Lenders (FIs and Banks) have agreed and the company has to pay
the recompense amount as per the terms and conditions. The CDR lenders
have calculated the ROR amounting to Rs. 1366 lakhs. The matter was
referred to CDR Empowered Group for necessary directions and the
recompense amount Will be considered in the accounts on receiving the
decision of CDR-EG.
3.2 BELLARY PLANT OPERATIONS:
The Power Purchase Agreement with Karnataka Electricity Board (Power
Distribution Companies) was expired on 31.08.2012 and hence there was
no generation of power from September, 2012. The company is intending
to continue the operations of the plant and exploring the possibility
of alternative avenues.
3.3 a) Exchange differences on Foreign Currency Term Loans from
financial institutions in respect of installments paid during the year
amounting to Rs.27.08 lakhs (previous year loss Rs.27.94 lakhs) and
exchange difference on outstanding loans as on 31.3.2013 valued at
applicable Foreign Currency Exchange Rates on 31s'' March, 2013 and
exchange difference amounting to Rs.67.35 lakhs debited to statement of
profit and loss as per AS-11 (previous year Rs.205.10 lakhs).
b) The Exchange difference in respect of imports and exports during the
year amounting to Rs.23.91 lakhs charged to»Statement of Profit and
Loss. (Previous Year Rs.215.40 lakhs).
3.4 Employee Benefits:
A) Defined Contribution Plans
The Company makes Provident Fund and superannuation Fund contributions
which are defined contribution plans, for qualifying employees. Under
the Scheme, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognized Rs.80,47,727/- (Previous year Rs.77,96,169/-) for Provident
Fund contributions and Rs.23,98,472/- (Previous year Rs.23,26,265/-)
for Superannuation Fund contributions in the Statement of Profit and
Loss. The contribution payable to these plans by the Company is at
rates specified in the rules of the schemes.
B) Defined Benefit Plan
The Company''s obligation towards the Gratuity Fund is a defined benefit
plan and is funded with Life Insurance Corporation of India. The
disclosures in respect of actuarial valuation of gratuity as required
under Accounting Standard 15 are given below.
3.5 Under the Micro, Small and Medium Enterprises Development Act 2006
and in accordance with the notification issued by the Ministry of
Corporate Affairs, certain disclosures are required to be made relating
to Micro, Small and Medium Enterprises as defined in the said Act. The
company is in the process of compiling the relevant information from
its suppliers about their coverage under the said Act and hence
required disclosures made to the extent available. The following are
outstanding balances as at 31.03.2013:
A] SMALL ENTERPRISES - Rs.2315.44 Lakhs (Previous Year Rs.961.50
Lakhs);
B] MICRO ENTERPRISES - Rs.41.29 Lakhs (Previous Year Rs.85.82 Lakhs);
and
C] MEDIUM ENTERPRISES - Rs.252.39 Lakhs (Previous Year Rs.492.86
Lakhs);
3.6 Balances of Sundry Creditors and Debtors are shown as appearing
in the books of account of the company anc the company has sent
confirmation letters to the parties and the confirmations are awaited.
3.7 Earnings per Share:
Basic and diluted earnings per share calculated in compliance with the
provisions of Accounting standard (AS-20) for the year ending 31.03.13
comes to Rs.5.50 p.a (Previous year Rs.2.06 p.a.) and Rs 5.44 p.a
(previous yeai Rs.2.03 p.a.) respectively.
The denominator for Basic EPS is 685,73,568 (previous year 6,74,93,286)
equity shares and the numerator is net profit after tax as per
statement of Profit and Loss and after adjusting preference dividend
for the year and tax thereon, amounting to Rs.37,72,56,038 (previous
year Rs.13,88,23,770).
The denominator for diluted EPS is increased by potential equity deemed
to be issued for OFCD i.e (6,85,73,568 8,86,855) = 6,94,60,423
(previous year 6,86,36,581) and the numerator for this calculation is
the net profit after tax as per Statement of Profit and Loss and after
adjusting preference dividend and the interest al 5% on OFCDs and the
tax liability thereon, amounting to Rs.37,75,55,595 (previous year
Rs.13,92,09,946).
3.8 Figures have been rounded off to the nearest decimal of lakhs as
required under revised Schedule-VI.
3.9 Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the currenl year''s classification
/ disclosure.
Mar 31, 2012
1.1 The Company has no Subsidaries/ Associates and has no Holding
Company.
1.2 Out of Equity shares issued, subscribed and fully paid up
2,86,10,955 No. of equity shares of Rs.10/- each alloted on
preferential allotment to Financial Institutions IDBI/IFCI by
convertion of 15% Rupee/F.C loans and Debentures on 08.03.2005. And
2,00,00,000 No.of equity shares of Rs.10/- each alloted on preferential
allotment to promotors group by conversion of fully paid share warrants
of 1,45,80,000 on 08.03.2005 and 54,20,000 on 25.04.2006.
1.3 Cumulative Redeemable Preference shares issued, subscribed and
fully paid up 1,88,82,332 of Rs.10/- each having a coupon rate of 0.01%
from April, 2002 were alloted on sub-division and consolidation of 50%
holding of equity shares and are redeemable after 15 year in 4
quarterly instalments commencing from 01.04.2018.
1.4 Redeemable Optionally Fully Convertible Debentures of 5% Series
"B" 2,05,177 of Rs.100/- each issued to IFCI Ltd as per restructuring
package are redeemable in 96 monthly instalments from April,2008.ln
case of default in redemption of debentures, option can be exercised by
IFCI Ltd to the extent of outstanding balance as on 31.3.12 of
Rs.102.58 lakhs (as on 31.3.11 Rs.128.22 lakhs) and no fixed date of
conversion.
2.1 There were no Long Term Deposits, Deferred Payments liabilities and
Finance Lease obligations.
2.2 There is no continuing default as on 31.3.2012 (31.03.2011) in
repayment of loans and interest payments on Debtentures, Term Loans and
Letter of Credit and sales tax deferment as per instalments granted by
the Department.
2.3 Redeemable Optionally Fully Convertible Debentures of 5% Series
"B" 2,05,177 of Rs.100/- each issued to IFCI Ltd as per
restructuring package are redeemable in 96 monthly instalments from
April, 2008. In case of default in redemption of debentures, option can
be exercised by IFCI Ltd to the extent of outstanding balance as on
31.3.12 of Rs.102.58 lakhs (as on 31.3.11 Rs.128.22 lakhs) and no fixed
date of conversion. .
2.4 SECURITY
A) DEBENTURES
1) The above Debentures issued to IDBI are secured by first charge of
all the Company's immovable properties both present and future
ranking paripassu with the mortgages and charges created / to be
created with other loans and further secured by first charge by way of
mortgage of Company's properties (save and except book debts and
assets exclusively charged / to be charged in favour of IDBI) including
movable machinery, machinery spares, tools and accessories present and
future subject to prior charge created and /or to be created in favour
of Company's Bankers on the Company's stock of raw materials as well as
to Banks on semi- finished and finished goods, consumable stores and
such other movables as may be agreed to by the Trustees for securing
the borrowings for working capital requirements in the ordinary course
of business and further secured by pledge of 8,04,000 Nos. of APGPCL
Equity shares of Rs.10/- each and guaranteed by the Ex-Managing
Director, Sri T.G.Venkatesh. ,
2) The above series "A" debentures issued to IFCI are secured in
favour of their Trustees by way of first charge on all immovable
properties situated at Bellary both present and future and further
secured by way of first charge on company's movable (save and except
book-debts), including movable machinery, machinery spares, tools and
accessories, present and future, subject to prior charge created and/or
to be created in favour of company's bankers on the stock of raw
materials, semi finished foods, consumable stores and such other
movable, as may be agreed to by the trustees, for securing the
borrowings for working capital requirements in the ordinary course of
business and further guaranteed by Ex-Managing Director, Sri
T.G.Venkatesh.
3) The above series "B & C" debentures issued to IFCI are secured in
favour of their Trustees by way of first charge on all immovable both
present and future and further secured by way of firs charge on
company's movable (save and except book-debts), including movable
machinery, machinery spares, tools and accessories; present and future,
subject to prior charges created and / or to be created in favour of
company's bankers on the stock of raw materials, semi finished goods,
consumabler stores and such other movable, as may be agreed to by the
trustees, for securing the borrowings for working capital requirements
in the ordinary course of business and further guaranteed by Ex-
Managing Director,Sri T.G.Venkatesh.
B) TERM LOANS .
1) The above Term Loans and Deferred loans from Institutions [except
the Term Loan amount of Rs.3234.21 lakhs from M/s IFCI Ltd. secured by
first exclusive charge on the building, plant and machinery acquired
under project schemes of Fatty Acid, Pottassium Hydroxide / and power
plant at Bellary are secured by first charge on all the immovable
properties both present and future and further secured by first charge
by way of hypothecation of all movables (save and except book debts and
inventories including movable machineries, spares, tools, accessories
both at present and future,subject to prior charges created/ to be
created in favour of the company's bankers as specified movables for
working capital requirements) and further Guaranteed by the Ex-Managing
Director, Sri T.G.Venkatesh.
IFCI's Additional Margin money for working capital loan outstanding of
Rs.531.25 Lakhs is further secured by pledge of 5,36,000 Nos. of APGPCL
Equity shares of Rs.10/- each.
2) The above Term loans from Banks are secured by first pari passu
charge on fixed assets of Chloromethanes Project, and 2M pari - passu
charge on other existing fixed assets, 2n0 pari passu charge on the
current assets and personal guarantee by Ex-Managing Director Sri
T.G.Venkatesh.
C) Specific Letter of Credit
The above Letter of credit s secured by specific charge on import of
capital goods out of this LC and Lien on fixed deposits of build-up
margin every month.
3.1 There were no loans repayable on demand and short term
Deposits/loans and advances from related parties.
3.2 There is no default as on 31.03.2012 (31.03.2011) in repayment of
loans and interest payments on Working Capital Loans, Letters of Credit
issued and Bills discounted by Banks and others.
3.3 SECURITY
a) Short Term Loans from Banks
The above Working Capital Demand Loans,Cash Credits and Bills
discounted by Banks are secured by 1st pari passu charge by way of
hypothecation of inventories and receivable of the company and further
secured by 2nd pari passu charge on land, building and Plant and
machinery and guaranteed by the Ex-Managing Director, Sri
T.G.Venkatesh.
b) Letters of Credit from Banks
The above Letter of credit facility availed from Banks were secured by
1 st pari passu by way of hypothecation of inventories and receivable
of the company and further secured by 2nd pari passu charge on land,
building and Plant and machinery and guaranteed by the Ex-Managing
Director, Sri T.G.Venkatesh.
c) Bills discounted with Can Bank Factors Ltd
The above Sale Bill discounting facility from Can Bank Factors Ltd is
secured by second charge on respective fixed assets of the company
ranking pari passu with charges already created/ to be created by the
Company and further guaranteed by the Ex-Managing Director, Sri
T.G.Venkatesh and purchase bill discounting facility sanctioned by Can
Bank Factors Ltd are secured by 2nd pari passu charge on fixed assets
of the Company.
4.1 There were no investments in Subsidiaries, Associates, Joint
Ventures and controlled special purpose Entities and in Preference
Shares, Bonds, Debentures, Mutual Funds and in Partnership Firms.
5.1 Contingent Liabilities not provided in respect of
Current Year Previous Year
Particulars 2011-2012 2010-2011
(Rs. in Lakhs) (Rs. in Lakhs)
a) Cheques / Bills Discounted with Banks. 168.54 226.67
b) Unexpired Bank guarantees / letters of
Credit (net of margin money paid) 665.03 523.34
c) Estimated amount of Contracts remaining
to be executed on Capital Account 4760.67 2705.05
(Net of advances). -
d) Arrears of dividend on cumulative
redeemable preference shares of
Rs. 1888.23 - 1.70
lacs at a coupon rate of 0.01 %, issued and 1.89
allotted as per Debt Restructuring
package and scheme of arrangement sanctioned
by High Court of A. P. for
the . period from 01,04,2002 to 31.03.2012.
(payable after 15 years)
i.e., from 01.04.2018.
e) Claims against the company not acknowledged
as debts being disputed
and pending in appeals and for which no
provision is considered as the
company is hopeful of success in the appeals.
i) Central excise matters regarding Cenvat
credit availed on input
358.87 322.76
consumables and on service tax payments on
input services like freight,
telephone, and courier etc.,
ii) 1. Customs matters regarding dispute
on classification of goods pending 9.90 9-90
before High Court.
2. Imposition of Anti dumping duty on
imports during December 2010 32.69 -
" pending before ADC, Customs
3. Differential duty leved on import of
materials during the year 16.06 -
2006-07, pending before the
Commissioner of Appeals .
iii) Sales tax matters regarding Input
tax credit availed on fuels used for steam 91.47 74.42
generation disallowed by the Department and
levied penalty and interest; (59.03) (59.03)
and tax on disputed turn over of
Palakkad Branch which is pending in
appeal before DC (Appeals)
(Paid under Protest)
iv) Levy of delay charges on late
payment of Provident Fund by Regional 15.34 15.34
Provident Fund Commissioner.
v) 1) Wheeling Charges levied by APCPDCL
pending in Supreme Court. 24.21 24.21
2) Wheeling charges levied on APGAS power
supplies covered by Bank NiL NIL
guarantee Rs.69.30 lakhs.
f) Differential duty on procurement of
raw material as per show cause notices 1161.14 1161,14
issued by the Customs Authorities is
contested and for which no provision is (125.00) (125.00)
considered as there will be no liability
on the company as per legal opinion
obtained (paid under Protest)
g) Refund sought by M/s.Karnataka Power
Transmission Corporation Ltd., (KPTCL) ; 1609.00 1609.00
/DISCOMS of the differential tax on
account of Incbme Tax rates / tax holiday
as per terms of PPA is contested by the
Company before the Karnataka
Electricity Regulatory Commission ,
5.2 INSURANCE CLAIM:
Insurance claim for Loss of Profits on account of turnover Loss due to
Floods during October, 2009 was considered by company at Rs. 1755.36
lakhs. The insurance underwriter has settled the claim during the year
for Rs. 1255.10 lakhs and the short fall in the claim settlement of Rs
500.26 lakhs was charged to statement of Profit and Loss for the year
ended 31.3.2012.
5.3 a) Exchange differences on Foreign Currency Term Loans from
financial institutions in respect of installments paid during the year
amounting to Rs. 27.94 lacs (previous year loss Rs. 6.31 lakhs) and
exchange difference on outstanding loans as on 31.3.2012 valued at
applicable Foreign Currency Exchange Rates on 31st March, 2012 and
exchange difference amounting to Rs. 205.10 lacs debited to profit and
loss account as per AS-11 (previous year Rs.15.56 lacs).
b) Foreign Currency receivables on exports made and outstanding as on
31.03.12 are valued at applicable exchange nte and the exchange
difference of Rs. 20.42 lacs was credited to profit and loss account
(Previous year Rs. 1.70 lacs debited to profit and loss account).
5.4 Under The Micro, Small and Medium Enterprises Development Act,
2006 and in accordance with the notification issued by the Ministry of
Corporate Affairs, certain disclosures are required to be made relating
to Micro, Small arid Medium Enterprises as defined in the said Act. The
company is in the process of compiling the relevant information fromlts
suppliers about their coverage under the said Act and hence required
disclosures made to the extent available. The following are outstanding
balances as at 31.03.2012:
A] SMALL ENTERPRISES-Rs. 951.50 Lacs ( Previous Year Rs.584.25 Lacs);
B] MICRO ENTERPRISES Rs. 85.82 Lacs ( Previous Year Rs. 1.62 Lacs); and
C] MEDIUM ENTERPRISES Rs. 492.86 Lacs ( Previous Year Rs.434.08 Lacs);
5.5 Lease1 Payments:
The Company has not taken any assets under non cancelable operating
lease agreements and hence no future lease payments. -
5.6 Balances of Sundry Creditors and Debtors are shown as appearing
in the books of account of the company and the company has sent
confirmation letters to the parties and the confirmations are awaited.
5.7 Earnings per Share:
Basic and diluted earnings per share calculated incompliance with the
provisions of Accounting standard (AS20) for the year ending 31.03.12
comes to Rs. 2.06 p.a (Previous year Rs.2.02 p.a.) and Rs.2.03 p.a
(previous year Rs.1.99 p.a.) respectively.
The denominator for Basic EPS is 6,74,93,286 ( previous year
6,74,93,286) equity shares and the numerator is net profit after tax as
per Statement of Profit and Loss and after adjusting preference
dividend for the year and tax thereon, amounting to Rs. 13,88,23,770
(previous year Rs. 13,64,70,638)
The denominator for diluted EPS is increased by potential equity deemed
to be issued for OFCD i.e (6,74,93,286 11,43,295) = 6,86,36,581
(previous year 6,88,93,021) and the numerator for this calculation is
the net profit after tax as per statement of Profit and Loss and after
adjusting preference dividend and the interest at 5% on OFCDs and the
tax liability thereon, amounting to Rs.13,92,09,946 (previous year
Rs.13,69,38,027).
5.8 Figures have been rounded off to the nearest decimal of Lacs as
required under Revised Schedule VI.
5.9 The Revised Schedule VI has become effective from 1st April, 2011
for preparation of financial statements for the year 2011-12. This has
significantly impacted the disclosure and presentation in financial
statements. Consequently previous year's figures have been regrouped
/ reclassified wherever necessary to correspond with the current
year's classification / disclosure as required under Revised Schedule
VI.
Mar 31, 2011
1. Contingent Liabilities not provided in respect of
Particulars Current Year Previous Year
2010-11 2009-10
(Rs. in (Rs. in
Lakhs) Lakhs)
a) Cheques / Bills Discounted
with Banks. 226.67 217.94
b) Unexpired Bank guarantees /
letters of Credit (net of margin
money paid) 523.34 193.06
c) Estimated amount of Contracts
remaining to be executed on
Capital Account 2705.05 3517.19
(Net of advances).
d) Arrears of dividend on cumul 1.70 1.51
ative redeemable preference
shares of Rs. 1888.23 lacs at a
coupon rate of 0.01 %, issued and
allotted as per Debt Restructuring
package and scheme of arrangement
sanctioned by High Court of A.P.
for the period from 01.04.2002
to 31.03.2011 (payable after
15 years) i.e
from 01.04.2018.
e) Claims against the company
not acknowledged as debts',
being disputed and pending in
appeals/ Assessments in respect
of
i) Central excise matters regarding
Cenvat credit availed on input 322.76 302.06
consumables and on service tax
payments on input services like
freight, telephone, and courier etc.,
ii) Customs matters regarding
dispute on classification of goods 9.90 9.90
iii) Sales tax matters regarding
Input tax credit availed on fuels
used for steam 74.42 53.91
generation disallowed by the (59.03) (53.91)
Department and levied penalty and
interest (Paid under protest)
iv) Levy of delay charges on late 15.34 15.34
payment of Provident Fund by
Regional Provident Fund Commissioner
v) 1) Wheeling Charges levied by 24.21 24.21
APCPDCL pending in Supreme Court
2) Wheeling charges levied on NIL NIL
APGAS power supplies covered by
Bank guarantee Rs.69.30 lacs
f) Differential duty on procurement 1161.14 1161.14
of raw material as per show cause (125.00) (125.00)
notices issued by the Customs
Authorities is contested and for
which no provision is considered
as there will be no liability on
the company as per legal opinion
obtained (paid under Protest)
g) Refund sought by M/s.Karnataka 1609.00 NIL
Power Transmission Corporation Ltd.,
(KPTCL)/ DISCOMS of the differential
tax on account of Income Tax rates /
tax holiday as per terms of PPA is
contested by the Company before The
Hon'ble High Court ' of Karnataka
and the Court has directed to file
a petition before the Electricity
Regulatory Commission and further
directed not to take any precipitate
action against the Company
2. Customs Duty on goods in Bonded Ware house/at Port as at the year
end has not been provided in accounts and not included in the valuation
of inventory. The same is accounted at the time of clearance of goods
and the duty is estimated at Rs. 108.26 lacs (Previous Year Rs. Nil
lacs) and this has no impact on profit for the year.
3. INSURANCE CLAIM:
Claims receivable under Loans and Advances (Schedule 'G') includes an
amount of Rs. 1755.36 lacs (Previous Year Rs. 3239.26 lacs) towards
Insurance claim for loss of / damage to Inventories, Vehicles, Plant
and Machinery and Loss of Profits on account of unprecedented floods at
factories located at Kurnool and Bellary during October, 2009. The
Insurance Claim for Loss of Profits on account of production loss
during October, 2009 was considered by the company at Rs.1755.36 lacs
on prudential basis and the claim is subject to final settlement by the
Insurer.
4. a) Exchange differences on Foreign Currency Term Loans from
financial institutions in respect of installments paid during the year
amounting to Rs. 6.31 lacs ( previous year loss Rs.14.54 lacs) and
exchange difference on outstanding loans as on 31.03.2011 valued at
applicable foreign Currency Exchange Rates on 31s" March, 2011 and
exchange difference amounting to Rs. 15.56 lacs debited to profit and
loss account as per AS-11 (previous year gain Rs.307.02 lacs credited
to profit and loss account).
b) Foreign Currency receivables on exports made and outstanding as on
31.03.2011 are valued at applicable exchange rate and the exchange
difference of Rs. 1.70 lacs was debited to profit and loss account
(Previous year Rs. 4.53 lacs debited to profit and loss account).
5. Under The Micro, Small and Medium Enterprises Development Act, 2006
and in accordance with the notification issued by the Ministry of
Corporate Affairs, certain disclosures are required to be made relating
to Micro, Small and Medium Enterprises as defined in the said Act. The
company is in the process of compiling the relevant information from
its suppliers about their coverage under the said Act and hence
required disclosures made to the extent available. The following are
outstanding balances as at 31.03.2011:
A] SMALL ENTERPRISES - Rs.584.25 Lacs (Previous Year Rs.42.29 Lacs)
B] MICRO ENTERPRISES - Rs.1.62 Lacs (Previous Year Rs.1.78 Lacs) and
C] MEDIUM ENTERPRISES - Rs.434.08 Lacs (Previous Year Rs. Nil Lacs)
6. Related Parties Disclosures :
1. The names of transacting related party and description of
relationship are given below :
A. Particulars of Associate
Companies:
SI. Name of the transacting Nature of Relationship
No. related party
1. Sree Rayalaseema Hi-Strength
Hypo Ltd. Associate
2. TGV Projects and Investments
Pvt. Ltd. Associate
3. Brilliant Bio Pharma Ltd. Associate
4. Sree Maruthi Marine
Industries Ltd. Associate
5. Sree Maurthi Agro Tech Ltd. Associate
6. Gowri Gopal Hospitals Pvt. Ltd. Associate
7. Sree Rayalaseema Galaxy
Projects Pvt. Ltd. Associate
8. SRHHL Industries Ltd. Associate
9. Roopa Industries Ltd. Associate
10. S.K.Salts Pvt. Ltd. Associate
11. JSM International Ltd. Associate
12. TGV Securities Pvt. Ltd. Associate
13. TGV Pharma Pvt. Ltd. Associate
Note: Associate companies by virtue of shareholding by key management
personnel and relatives.
B. Key Management Personnel: T.G.Venkatesh, Chairman and Managing
Director and Executive Directors (Finance & Technical) and Directors of
the company.
C. Relatives to Key Management Personnel: Sri TG.Bharath, Smt
T.G.Rajyalakshmi.
7. Balances of Sundry Creditors and Debtors are shown as appearing in
the books of account of the company and the company has sent
confirmation letters to the parties and the confirmations are awaited.
8. Earnings per Share:
Basic and diluted earnings per share calculated in compliance with the
provisions of Accounting standard (AS-20) for the year ending 31.03.11
comes to Rs.2.02 p.a (Previous year Rs.2.08 p.a.) and Rs.1.99 p.a
(previous year Rs.2.03 p.a.) respectively.
The denominator for Basic EPS is 6,74,93,286 (previous year
6,74,93,286) equity shares and the numerator is net profit after tax as
per Profit and Loss account and after adjusting preference dividend for
the year and tax thereon, amounting to Rs.13,64,70,638 (previous year
Rs. 14,00,70,692)
The denominator for diluted EPS is increased by potential equity deemed
to be issued for OFCD i.e., (6,74,93,286 13,99,735) = 6,88,93,021
(previous year 6,91,49,461) and the numerator for this calculation is
the net profit after tax as per Profit and Loss account and after
adjusting preference dividend and the interest at 5% on OFCDs and the
tax liability thereon, amounting to Rs.13,69,38,027 (previous year
Rs.14,06,19,225).
9. Figures have been rounded off to the nearest to thousand and
expressed in decimals of lacs.
10. Previous year figures have been regrouped/ rearranged wherever
necessary to make them comparable with the current year figures.
11. Additional Information pursuant to paragraphs 3, 4C and 4D of
Schedules - VI of Companies Act, 1956.
B. Actual Production, Turnover and Stocks: (Quantity in MTs and Rs. in
lakhs)
a) Production shown is net of internal consumption.
b) Figures in brackets relate to previous year..
c) Opening and closing stocks includes sales returns, branch and
consignment stock transfers.
d) Above production figures are exclusive of production made under
processing agreements Refined Glycerine 1603 MTs (Previous Year 2419
MT).
e) Previous year turnover Quantities includes Stocks Lost in Floods -
namely
(1) Caustic Soda Flakes - 231 MTs.
(2) Hydrogenated Castor Oil - 41 MTs.
(3) 12 Hydroxy Stearic Acid - 55 MTs.
(4) Caustic Potash Flakes - 182 MTs.
(5) Stearic Acid - 98 MTs.
(6) Risinolic Acid - 2 MTs.
f) Power generation at Bellary includes deemed generation value of
Rs.623.50 lacs (previous year Rs.358.45 lacs).
g) Wind power generation was totally used for captive consumption
through grid.
Mar 31, 2010
1. Contigent Liabilities not provided in respect of
Current Year Previous Year
Particulars 2009-10 2008-09
Rs. in Lakhs, Rs. in Lakhs
a) Cheques / Bills
Discounted with Banks. 217.94 249.24
b) Unexpired Bank guarantees /
letters of Credit (net of margin
money paid) 193.06 236.89
c) Estimated amount of Contracts
remaining to be executed on
Capital Account.(Net of advances 3517.19 2363.65
d), Arrears of dividend on
cumulative redeemable preference
shares of
Rs.1888.23 lacs at
a coupon rate of 0.01 %, issued
and allotted as per
Debt Restructuring package and
scheme of arrangement sanctioned
by High
Court of A.P. for the period from
01.04.2002 to 31.03.2010. (payable
after 15 years) i.e from 01.04.2018. 1.51 1.32
e) Claims against the company
not acknowledged as debts,
being disputed and pending in
appeals/ Assessments in respect of
i) Central excise matters
regarding Cenvat credit availed
on input consumables and on
service tax payments on input
services like freight,
telephone, and courier etc., 302.06 253.30
ii) Customs matters regarding
dispute on classification of goods
pending before High Court 9.90 9.90
iii) Sales tax matters regarding
Input tax credit availed on fuels
used for steam generation disallowed
by the Department and 53.91 53.91
levied penalty and interest
(Paid under protest) (53.91) (53.91)
iv) Levy of delay charges on late
payment of Provident Fund by
Regional Provident Fund Commissioner 15.34
v) 1) Wheeling Charges levied by APCPDCL pending in
Supreme Court 24.21 24.21
2) Wheeling charges levied, on
APGAS power supplies
covered by Bank guarantee
Rs.69.30 lacs NIL NIL
f) Differential duty on procurement of raw material as per show
cause notices issued by the Customs Authorities is contested
1161.14 1161.14
and for which no provision is
considered as there will be no (125.00) (125.00)
liability on the company as per
legal opinion obtained (paid under
Protest)
2. Customs Duty on goods in Bonded Ware house/at Port as at the year
end has not been provided in accounts and not included in the valuation
of inventory. The same is accounted at the time of clearance of goods
and the duty is estimated at Rs. Nil (Previous Year Rs.352.40 lacs) and
this has no impact on profit for the year.
3. INSURANCE CLAIM:
Claims receivable under Loans and Advances ( Schedule G) includes an
amount of Rs. 3239.26 lakhs towards Insurance claim for loss of /
damage to Inventories, Vehicles, Plant and Machinery and Loss o Profits
on account of unprecedented floods at factories located at Kurnool and
Bellary during October 2009. The Insurance Claim for Loss of Profits on
account of production loss during October, 2009 was considered by the
company at Rs. 1755.36 lakhs on prudential basis and the claims are
subject to fina settlement by the Insurer.
4. a) Exchange differences on Foreign Currency Term Loans from
financial institutions in respect of installments paid during the year
amounting to Rs. 14.54 lakhs ( previous year loss Rs. 79.50 lacs ) and
exchange difference on outstanding loans as on 31.3.2010 valued at
applicable Foreign Currency Exchange Rates on 31s1 March, 2010 and
exchange difference amounting to Rs. 307.02 lakhs credited to profit
and loss account as per AS-11 (previous year Loss Rs.538.53 lakhs
debited to profit and loss account).
b) Foreign Currency receivables on exports made and outstanding as on
31.03.10 are valued at applicable exchange rate and the exchange
difference of Rs. 4.53 lakhs was debited to profit and loss account
(Previous year Rs. 13.32 lakhs credited to profit and loss account).
5. Under The Micro, Small and Medium Enterprises Development Act, 2006
and in accordance with the notification issued by the Ministry of.
Corporate Affairs, certain disclosures are required to be made relating
to Micro, Small and Medium Enterprises as defined in the said Act. The
company is in the process of compiling the relevant information from
its suppliers about their coverage under the said Act and hence
required disclosures made to the extent available. The following are
outstanding balances as at 31.03.2010:
A] SMALL ENTERPRISES:
1) Arun & Company Rs. 5.17 lakhs; 2) B.D.K. Engineering Industrials
Ltd., Rs. 0.49 lakhs; 3) Chemical Process Equipments Pvt. Ltd., Rs.
14.67 lakhs; 4) Colour Shade Quality Printers Rs. 2.77 lakhs; 5) Dolf
Industries Rs. 0.62 lakhs; 6) Rapid Valves India Private Limited Rs.
0.03 lakhs; 7) Kamakshi Lamipack Pvt. Ltd., Rs. 9.65 lakhs; 8) Vikas
Rubber Industries Rs. 0.19 lakhs; 9) Vijaya Krishna Enterprises Rs.
0.10 lakhs; 10) VBM Cable Corporation Rs. 8.60 lakh.
B] MICRO ENTERPRISES:
1) T.I.A. Technologies (I) Pvt. Ltd., Rs. 1.40 lakhs; 2) Southern Cogen
Systems Pvt. Limited Rs. 0.38 lakhs
12. Balances of Sundry Creditors and Debtors are shown as appearing in
the books of account of the company and the company has sent
confirmation letters to the parties and the confirmations are awaited.
6. Earnings Per Share:
Basic and diluted earnings per share calculated in compliance with the
provisions of Accounting standard (AS20) for the year ending 31.03.10
comes to Rs.2.08 p.a (Previous year Rs.4.05 p.a.) and Rs2.03 p.a
(previous year Rs.3.94 p.a.) respectively.
The denominator for Basic EPS is 6,74,93,286 (previous year
6;74,93,286) equity shares and the numerator is net profit after tax as
per Profit and Loss account and after adjusting preference dividend for
the year and tax thereon, amounting to Rs. 14,00,70,692 (previous year
Rs. 27,30,35,358). The denominator for diluted EPS is increased by
potential equity deemed to be issued for OFCD i.e
(6,74,93,286+16,56,175) = 6,91,49,461 (previous year 6,94,05,901) and
the numerator for this calculation is the net profit after tax as per
Profit and Loss account and after adjusting preference dividend and the
interest at 5 % on OFCDs and the tax liability thereon, amounting to
Rs.14,06,19,225 (previous year Rs. 27,36,69,744).
7. Figures have been rounded off to the nearest to thousand and
expressed in decimals of lakhs.
8. Previous year figures have been regrouped/ rearranged wherever
necessary to make them comparable with the current year figures.