Notes to Accounts of Xpro India Ltd.
Mar 31, 2022
a. Term, loan from State Bank of India, outstanding Rs.Nil (previous year: Rs.2,72.00 lacs), carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.3.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.10.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.12.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs. 12.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to Oldenburgische Landesbank AG (âOLBâ)) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
b. Term Loan from Punjab National Bank, outstanding Rs.3,47.35 lacs (previous year: Rs.5,74.78 lacs), carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.7.25 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.24.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.28.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.30.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
c. Term Loan from State Bank of India, outstanding Rs.9,05.72 lacs (previous year: Rs.14,08.00 lacs) carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.15.50 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.51.75 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.62.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.64.75 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
d. Term Loan from State Bank of India, outstanding Rs.6,99.26 lacs (previous year: Rs.10,88.00 lacs) carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.12.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.40.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.48.00 lacs each starting from April 2019; & (iv) 16 quarterly instalments of Rs.50.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
e. Term Loan from State Bank of India, outstanding Rs.7,22.62 lacs (previous year: Rs.11,25.50 lacs ) carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.12.50 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.41.50 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.49.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.51.75 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
f. Term Loan from Indian Bank, outstanding Rs.6,36.23 lacs (previous year: Rs.10,20.00 lacs), carrying interest linked to the bankâs MCLR is repayable in (i) 2 quarterly instalments of Rs.7.50 lacs each starting from October, 2016; (ii) 4 quarterly instalments of Rs.11.25 lacs each starting from April 2017; (iii) 4 quarterly instalments of Rs.37.50 lacs each starting from April 2018 (iv) 12 quarterly instalments of Rs.44.50 lacs each starting from April 2019 & (v) 16 quarterly instalments of Rs.47.25 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets,
present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
g. Corporate Loan from State Bank of India outstanding Rs. Nil (previous year: Rs.1,67.79 lacs) carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.4.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.13.25 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.15.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs. 16.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
h. Corporate Loan from State Bank of India, outstanding Rs.3,55.66 lacs (previous year: Rs.10,20.00 lacs), carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.11.25 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.37.50 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.45.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.47.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
i. Corporate Loan from State Bank of India, outstanding Rs.Nil (previous year: Rs.2,47.00 lacs), carrying interest linked to the bankâs MCLR is repayable in (i) 4 quarterly instalments of Rs.2.75 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.9.25 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.11.00 lacs each starting from April 2019 & (v) 16 quarterly instalments of Rs.11.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to âOLBâ) of the Company & second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
j. Term Loan from Punjab National Bank, outstanding Rs.1,35.99 lacs (previous year: Rs.3,39.77 lacs), carrying interest linked to the bankâs MCLR, is repayable in (i) 24 quarterly instalments of Rs.25.00 lacs each starting from June, 2020; and is secured by exclusive 1st charge on the assets to be acquired out of above loan and ranking pari passu 2nd charge on all the current assets of the Company with other term lenders.
k. During the year, term/corporate loans aggregating to Rs.26,90.00 lacs has been pre-paid to banks.
l. During the previous year, the Company had been granted a moratorium of 6 months w.e.f. March 2020 for payment of instalment(s) on above mentioned terms loans as per RBI guidelines following the Covid-19 pandemic; accordingly the re-payment schedule has been extended.
m. Working Capital Term Loan from State Bank of India, under Guaranteed Emergency Credit Line 2.0 (GECL2.0) scheme, outstanding Rs.15,00.01 lacs (previous year: Rs.16.00.00 lacs), carrying interest linked to the bankâs MCLR, repayable in (i) 47 monthly instalments of Rs.33.33 lacs each starting from January 2022 & (ii) last instalment of Rs.33.49 lacs in December 2025 is secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from National Credit Guarantee Trustee Company Ltd (NCGTC).
n. Working Capital Term Loan from Punjab National Bank, under GECL2.0 scheme, outstanding Rs.2,15.60 lacs (previous year: Rs.230.00 lacs), carrying interest linked to the bankâs MCLR, repayable in (i) 35 monthly instalments of Rs.6.38 lacs each starting from February 2022 & (ii) last instalment of Rs.6.70 lacs in January 2025 is secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from NCGTC.
o. Working Capital Term Loan from Indian Bank, under GECL2.0 scheme, outstanding Rs.4,26.93 lacs (previous year: Rs. Nil), carrying interest linked to the bankâs MCLR, repayable in 48 monthly instalments of Rs.8.96 lacs each starting from April 2022 is secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from NCGTC.
p. The above-mentioned term loans carry interest rate between 7.9 to 12 % per annum (previous year: 7.9 to 12 %).
q. ECB from Oldenburgische Landesbank AG (âOLBâ), in the nature of term loan, outstanding â¬2,268,005; equivalent to Rs.19,41.19 lacs (previous year: â¬3,402,008; equivalent to Rs.29,75.74 lacs), carrying annual interest at Euribor 1.75% is repayable in 14 semi-annual instalments of â¬567,001.34 each, along with interest, commencing from April 2017, is secured by hypothecation of specified Dielectric Film Line and slitter at Barjora and is insured under Hermes export credit guarantee;
r. Vehicle Loan(s) of Rs.70.32 lacs (previous year: Rs.30.61 lacs) carrying interest at between 7 to 7.8 % per annum (previous year: 9 to 9.5%) repayable in 36 monthly instalment(s) commencing from date of disbursement, are secured by hypothecation of specified vehicles;
s. Lenders retain the right to recompense for NPV loss amount of upto Rs.3,65.00 lacs arising on rescheduling of term loans effective April 1, 2016;
t. There has been no default in servicing of loans and interest due thereon during and as at the end of the year;
u. Loans from Indian banks are further secured by pledge of 15% of promoters equity shareholding in the Company;
v. Rs.Nil, (March 31, 2021: Rs.80.46 lacs) has been adjusted against long term borrowings being adjustments on account of adoption of Ind AS.
As per Ind AS 12 - Income Taxes, deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. In assessing the recoverability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. As a matter of abundant caution, deferred tax assets have been recognized in the balance sheet only to the extent reasonably likely to be recoverable within the next financial year.
1) The Company has opted for the alternate tax regime under Section 115BAA of the Income Tax Act, 1961, with effect from the Financial Year 2019-20, which allows the Company a lower tax rate of 25.17% (against 34.94%) but restricts availability
of exemptions/incentives under different provisions of income tax, and is accompanied with immediate expiry of carry forward balance of Minimum Alternative T ax (MAT) credit. Accordingly taxable income for financial year 2020-21 had been adjusted against assessed business losses brought forward and revised return for A.Y. 2020-21 had been filed.
2) The Deferred T ax Assets/Liabilities as at March 31, 2021 and March 31, 2020 and the estimate of Tax Expense for the year ended March 31, 2021 had been accordingly re-measured and Deferred Tax Asset amounting to Rs.5,33.58 lacs, in the nature of MAT credit carried forward had been written off in 2020-21 as no longer available to the Company.
a) Working Capital loans, repayable on demand, and bearing interest at the rate of between 8.75 to 10.75 % per annum are secured by first charge, ranking pari-passu, in favour of members of the Consortium of Banks, on all current assets of the Company, present and future, and second charge, ranking pari-passu with term lender banks, on the entire fixed assets of the Company, present and future, wherever situated.
a) Trade payables are non-interest bearing and are normally settled within 90 days except for payments to MSME which are settled within 45 days. Refer note 47 for information on the Companyâs credit risk management processes.
b) Acceptances include arrangements where operational supplies of goods and services are initially paid by banks while the Company continues to recognise the liability till settlement with the banks which are normally effected within a period of 90 days.
c) Disclosures with respect to related party transactions is given in note 42.
d) Micro & small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. The disclosure pursuant to MSMED Act on the amount due to micro and small enterprises is given below:
Defined Contribution Plan
The Company makes contribution towards provident fund and ESI for qualifying employees to government administered /approved funds wherein the Company is required to contribute a specified percentage of payroll cost to the schemes to fund the benefits. The Company has no further obligations beyond the periodic contributions.
The Company recognized Rs.2,82.69 lacs (March 31, 2021: Rs 2,77.70 lacs) towards provident fund contributions and ESI contribution in the Statement of Profit and Loss included in "Employee benefits expense" (note 35).
Defined Benefit Plan Gratuity
The Company provides for gratuity as per the Payment of Gratuity Act, 1972 or as per applicable Company rules, whichever is higher. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The Company accounts for the liability for gratuity benefits payable in future based on actuarial valuation.
The following table sets out the status of the gratuity plan, based on the actuarial valuation obtained in this respect and the amounts recognised in the Companyâs financial statements as at balance sheet date:
Note: The Hon''ble Supreme Court had in its judgement in February 2019 opined on the applicability of allowances that should be considered as forming part of basic wages for computing provident fund contribution. Management believes that there are interpretative challenges in the application of the judgement retrospectively and therefore has not considered any probable obligations for past periods while awaiting further directions/clarifications in the matter to assess any potential impact on the Company as no reliable estimate can yet be made.
Exceptional items: Rs.Nil (Rs.51.00 lacs in 2020-21 representing the amount of impairment in value of unquoted investment in Xpro Global Limited written off).
The Company operates predominantly within a single reportable business segment i.e. Polymers Processing business and mainly in a single geographic segment i.e. India. There are no separate reportable business or geographic segments. The aforesaid is in line with review of performance and allocation of resources by the chief operating decision maker.
Revenue of Rs.1,32,64.60 lacs (previous year: Rs. 1,73,37.31 lacs) was derived from external customers each accounting for over ten percent of the revenue.
46. Fair Value MeasurementFinancial instrument by category
All financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, other bank balances, interest receivable, trade payables, employee related liabilities and short term loans from banks, are measured at amortised cost.
Fair Value hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorised into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical financial instruments;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
Level 3: if there are unobservable inputs for the asset or liability, then the instrument is included in level 3.
The management assessed that for current assets including security deposits, loans, cash and cash equivalents, trade receivables, other recoverable, borrowings, trade payables and other current financial liabilities, the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
(i) The fair values of the Companyâs interest-bearing borrowings, loans and receivables are determined by applying discounted cash flows (âDCFâ) method, using discount rate that reflects the issuerâs borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2022 was assessed to be insignificant.
(ii) All the longterm borrowing facilities availed by the Company are variable rate facilities which are subject to changes in underlying Interest rate indices. The management believes that the carrying rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.
Note: Investment in subsidiaries as at the close of year ended March 31, 2022 and March 31, 2021 respectively are carried at cost, per the exemption availed by the Company; hence not considered herein.
The carrying amount of trade receivables, trade payables, capital creditors and cash and cash equivalent are considered to be the same as their fair values, due to short-term in nature.
The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates. ii) Risk management
The entityâs activities expose it to market risk, liquidity risk and credit risk. The entity board of directors has overall responsibility for the establishment and oversight of the entityâs risk management framework. âThis note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
Credit risk is the risk that a counterparty fails to discharge its obligation to the entity. The entityâs exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
Credit risk arises from cash and cash equivalents, trade receivables, investment carried at amortised cost and deposits with banks and financial institutions.
Credit risk management Credit risk rating
The entity assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets:
i) Low credit risk; ii) Moderate credit risk and iii) High credit risk on financial reporting date
Assets are written off when there is no reasonable expectation of recovery, such a debtor declaring bankruptcy or a litigation decided against the entity. The entity continues to engage with parties whose balances are written off and attempts to enforce repayment. The entity does not have any of the debts which are recoverable.
Cash & cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
The Company closely monitors the credit-worthiness of the debtors through internal systems for corporate customers, thereby, limiting the credit risk. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivables become one year past due.
Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances to employees, security deposit and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are written defined limits.
Expected credit risk losses for financial assets other than trade receivables
Company provides for expected credit losses on loans and advances by assessing individual financial instruments for expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the Company can draw to apply consistently to entire population. For such financial assets, the Companyâs policy is to provide for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.
Expected credit loss for trade receivables under simplified approach
The Company recognizes life-time expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trends of default. There have been no significant past due trade receivables as Company receives its significant revenue from selling to major customers directly, wherein there are very low or no chances of non-recoverability. For the rest of operations there were no significant past due receivables.
Ultimate responsibility for liquidity risk management rests with the Board of Directors. 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. Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows.
Maturities of financial liabilities
The tables below analyse the Companyâs financial liabilities into relevant groupings based on their contractual maturities for all non-derivative financial liabilities.
Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering that part of the borrowings are in foreign currency and also purchases are made in foreign currency, the Companyâs exposure to foreign currency at each reporting date is disclosed herein.
The Companyâs fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rate.
Capital management policies and procedures
For the purpose of the Companyâs capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders.
The Companyâs capital management objectives are
- to ensure the Companyâs ability to continue as a going concern
- to provide an adequate return to shareholders
Management assesses the Companyâs capital requirements in order to maintain an efficient overall financing structure. This takes into account the subordination levels of the Companyâs various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
a. The Company has adopted Ind AS 116 -âLeaseâ from April 1, 2019, which resulted in changes in accounting policies in the standalone financial statements.
b. Practical expedients applied
The Company has used the practical expedients permitted by the standard:
⢠applying a single discount rate to a portfolio of leases with reasonably similar characteristics
⢠accounting for operating leases with a remaining lease term of less than 12 months as at April 1, 2019 as short-term leases.
c. The weighted average lesseeâs incremental borrowing rate applied for the lease liabilities on April 1, 2019 was 11.25% with maturity between 2020 - 2028.
d. Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. The Company is prohibited from selling or pledging the underlying leased assets as security. For lease over office building the Company must keep the property in a good state of repair and return the property in the original condition at the end of the lease.
50. Pursuant to the special resolution passed at the Extraordinary General Meeting held on December 29, 2021, and relevant regulatory provisions, the Company issued and allotted on January 11, 2022 by way of preferential allotment 19,68,000 warrants at a price of Rs.762 each, each warrant carrying a right upon being fully paid-up within a period of 18 months from date of allotment to subscribe to one equity share of face value Rs.10 of the Company (including premium of Rs.752 each). The Company has received allotment money of Rs.3749.04 lacs, being 25% of the total warrant price by the end of this financial year. As per the offer letter, the issue proceeds may be utilized for growth capital and expansion/diversification requirements (whether organic or inorganic), to meet capital expenditure, to reduce borrowings, to enhance long-term resources and strengthen the financial structure, for meeting working capital requirements and for other general corporate purposes and purposes permitted by applicable laws. The proceeds of the said issue are being fully utilized for the purposes stated.
51. Estimation of uncertainties relating to global pandemic - Covid-19
The Company has considered the possible effects that may result from COVID-19 on the carrying amounts of financials assets, deferred tax assets, inventory, receivables, advances, property, plant and equipment, intangibles etc. as well as liabilities accrued. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company has used internal and external information such as current contract terms, market and financial strength of customers, future volume estimates etc. Having reviewed the underlying data and based on current estimates the Company expects the carrying amount of these assets will be recovered and there will be no significant impact on liabilities accrued. The impact of COVID-19 on the Companyâs financial statements may differ from that estimated as at the date of approval of these financial statements and the Company continues to closely monitor material changes to the economic conditions and impact on business to address and mitigate the overall impact, if any, in this unprecedented situation.
53. Significant events after the reporting period
The Board of Directors has recommended a dividend of Rs.2.00 per share for the year 2021-22, (March 31, 2021 - Rs. Nil per share) subject to approval by the shareholders at the ensuing Annual General Meeting of the Company; No liability has been recognised as at March 31, 2022.
Further, the Board of Directors has recommended for approval by shareholders the issue and allotment of Bonus shares by capitalization of appropriate reserves and surplus, in the ratio of 1 equity share for every 2 equity shares.
There were no other significant adjusting events that occurred subsequent to the reporting period other than events disclosed in the relevant notes.
54. Additional Regulatory Information:
a. There are no immovable properties where the title deeds are not held in the name of the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company);
b. There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and related parties, either severally or jointly with another person, that are (i) repayable on demand or (ii) without specifying any terms or period of repayment;
c. The Company does not have any Benami property, and no proceedings have been initiated or is pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988;
d. The Company has been regular in filling quarterly returns or statements of current assets with banks and those are in agreement with the books of accounts;
e. The Company has not been declared a wilful defaulter by any bank or financial institution;
f. The Company has no transactions with companies struck off under Sec.248 of the Companies Act, 2013 or Sec. 560 of the Companies Act, 1956;
g. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period;
h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year;
i. The Company has not advanced, loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or (ii) provide any guarantee, security or the like to or on behalf of the Company;
j. The Company has not received any funds from any person(s) or entity(ies), including foreign entities with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or (ii) provide any guarantee, security or the like to or on behalf of the Company;
k. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
55. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its standalone financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
56. Previous period''s figures have been regrouped/reclassified wherever necessary to correspond with the current period''s classification/ disclosure.
57. The audited standalone financial results along with the report thereon are also available on the Company''s website www.xproindia.com and on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com).
58. The standalone financial statements were approved for issue by the Board of Directors at their meeting, deemed to have been held at New Delhi, through video conferencing on May 25, 2022.
Mar 31, 2019
1. Company Information:
Xpro India Limited (the "Company") is a public limited company domiciled in India with its registered office located at Barjora-Mejia Road, P.O. Ghutgoria, Tehsil: Barjora, Dist.: Bankura 722 202, West Bengal. Incorporated on November 26, 1997 as "Biax Films Limited" under the Companies Act, 1956, the present name was adopted w.e.f. September 22, 1998. Equity shares of the Company are listed on the National Stock Exchange (NSE) and are admitted for trading on the Bombay Stock Exchange (BSE). Organised into operating divisions for operational convenience, the Company is engaged mainly in the business of Polymers Processing at multiple locations and is the leading manufacturer in India of Coextruded Plastic Sheets, Thermoformed Liners and Speciality Films (including Dielectric Films and special purpose BOPP Films).
2. Application of new and revised Indian Accounting Standards (Ind AS)
All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are authorized have been considered in preparing these financial statements.
2.1 Standards issued but not yet effective
On March 30, 2019, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2018. The effective date for adoption is financials periods beginning on or after April 1, 2019.
2.1.1 Ind AS 116 - Leases
On March 30, 2019, Ministry of Corporate Affairs (''MCA'') has clarified that Ind AS 116 is effective for annual periods beginning on or after April 1, 2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees - leases of ''low-value'' assets and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.
2.1.2 Amendment to Ind AS 12, Income taxes
On March 30, 2019, Ministry of Corporate Affairs ("MCA") has notified Appendix C to Ind-AS 12 Income taxes - "Uncertainty over Income Tax Treatments". The amendment to Ind AS 12 requires the entities to consider recognition and measurement requirements when there is uncertainty over income tax treatments. In such a circumstance, an entity shall recognise and measure its current or deferred tax asset or liability accordingly. The effective date of amendment is April 1, 2019. Further, there has been amendments in relevant paragraphs in Ind-AS 12 "Income Taxes" which clarifies that an entity shall recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognized those past transactions or events in accordance with Ind-AS 109. The Company is evaluating the requirements of the amendments and their impact on the financial statements.
2.1.3 Amendment to Ind AS 19, Employee benefits
On March 30, 2019, Ministry of Corporate Affairs ("MCA") has issued an amendment to Ind AS 19 which requires the entities to determine current service cost using actuarial assumptions and net interest using discount rate determined at the start of the annual reporting period. However, if an entity re-measures the net defined benefit liability (asset) as per the requirement of the standard, it shall determine current service cost and net interest for the remainder of the annual reporting period after the plan amendment, curtailment or settlement using the actuarial assumptions used to re-measure the net defined benefit liability (asset). The effective date of amendment is April 1, 2019. The Company is evaluating the requirements of the amendments and their impact on the financial statements.
2.1.4 Amendment to Ind AS 109, Financial instruments
On March 30, 2019, Ministry of Corporate Affairs ("MCA") issued an amendment to Ind-AS 109 in respect of prepayment features with negative compensation, which amends the existing requirements in Ind-AS 109 regarding termination rights in order to allow measurement at amortized cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments. This amendment is effective for annual periods beginning on or after April 1, 2019. The Company is evaluating the requirements of the amendments and their impact on the financial statements.
2.1.5 Amendment to Ind AS 23, Borrowing costs
On March 30, 2019, Ministry of Corporate Affairs ("MCA") issued an amendment to Ind-AS 23 "Borrowing Costs" clarifies that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings. This amendment is effective for annual periods beginning on or after April 1, 2019. The Company is evaluating the requirements of the amendments and their impact on the financial statements.
3. Basis for Preparation:
a. Statement of compliance with Indian Accounting Standards (Ind AS)
These financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 read with Section 133 of the Companies Act, 2013.
These financial statements of the Company for the year ended March 31, 2019 were approved and authorized for issue by Board of Directors on May 25, 2019.
b. Basis of measurement
These financial statements have been prepared on a historical cost basis except for (a) certain financial instruments that are measured at fair values at the end of each reporting period and (b) net defined benefit assets/liability measured at fair value of planned assets less present value of defined benefit obligations. The methods used to measure fair values are discussed further in notes to financial statements.
c. Functional and presentation currency
The financial statements of the Company are presented in Indian Rupees (Rs.), which is also its functional currency. All financial amounts disclosed in the financial statements and notes have been rounded to the nearest lakh (upto two decimals), unless stated otherwise.
d. Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:
i) Expected to be realised or intended to be sold or consumed in normal operating cycle;
ii) Held primarily for the purpose of trading;
iii) Expected to be realised within twelve months after the reporting period; or
iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
Current assets include current portion of non-current financial assets.
All other assets are classified as non-current.
A liability is current when:
i) It is expected to be settled in normal operating cycle;
ii) It is held primarily for the purpose of trading;
iii) It is due to be settled within twelve months after the reporting period;
iv) There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.
Current liabilities include current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
Deferred tax assets/liabilities are classified as non-current.
Operating Cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of classification of assets and liabilities as current and non-current.
e. Fair Value Measurements
The Company measures financial instruments at fair value which is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either in the principal market for the asset or liability or in the absence of a principal market in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as follows:
- Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2: Inputs other than quoted prices, included in Level 1 that are directly or indirectly observable for the asset or liability;
- Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. The Company recognises transfer between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in Note 3(q) - Financial Instruments.
Overall Considerations
The financial statements have been prepared on going concern basis using the significant accounting policies and measurement basis summarized below.
These accounting policies have been used throughout all periods presented in the financial statements, except where the company has applied certain accounting policies and exemptions upon transition to Ind AS.
Notes:
a) Refer Note 22 for information on property, plant and equipment pledged as security by the Company;
b) Refer note 11 for disclosure of contractual commitments for the acquisition of property, plant and equipment.
c) Portion of leasehold land in possession of the Company and of which the Company is the beneficial owner is pending for transfer in the name of the Company and for which necessary steps are being taken;
d) Additional depreciation includes Rs.9,03.74 lacs (2017-18) provided on the basis of external valuation conducted by the management, to reflect realisable value assessed as reasonable and fair on plant and equipment at the Pithampur and Faridabad units respectively
e) The Company assessed potential generation of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business; there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts;
f) Para D13AA of Appendix D - Exemptions from Ind AS of Ind AS 101 allows a first-time adopter to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the begi nning of the first Ind AS financial reporting period as per the previous GAAP. Accordingly exchange differences on all long term monetary items resulted in an deletion of Rs. 1,47.70 lacs (March 31, 2018: addition of Rs. 8,13.47 lacs) to Gross Block of fixed assets, being the exchange difference on long term monetary items related to the acquisition of a depreciable capital asset.
Note:
Capital commitment:
a) Estimated amount of contracts remaining to be executed on capital account and not provided for in the amount (net of capital advances): Rs.40.53 lacs (31 March 2018: Rs.3,22.46 lacs)
b) Unpaid portion of subscribed equity capital in subsidiary: Rs.47.50 lacs (31 March 2018: Rs.47.50 lacs)
Note:
(a)There are no amounts due by directors or other officers of the Company either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.
(b) All amounts are short-term. The net carrying value of trade receivables is considered a reasonable approximation of fair value.
Notes:
(a) The management assesses the fair value of these financial assets not to be materially different from the amounts recognised in the financial statements;
(b) Balance with government authorities represents goods and service tax (earlier service tax) paid on inputs (earlier input and services) consumed by the company and eligible for utilisation towards discharge of goods and service tax (earlier service tax liability) in respect of services rendered by the company. The company expects the utilisation of outstanding balances as at each date of statement of financial position within twelve months thereof.
The management decided, during the year ended March 31, 2019, to sell or otherwise dispose non-core asset being Biax Division Unit 1, located at Barjora, Dist. Bankura, West Bengal, and subsequently obtained necessary shareholder approval. Accordingly, in terms of Ind AS 105 Non-current assets held for sale and discontinuing operations, the property, plant and equipment situated at Biax Division Unit 1 are presented as ''Assets held for sale'' separately from other assets in the balance sheet. These assets are expected to be sold during 2019-20. (Pithampur Unit - classified as assets held for sale as at March 31, 2018 sold in the current year and profit of Rs.84.80 lacs realised shown under exceptional income)
The carrying value of asset held for sale as on the date of agreement does not exceed the fair value less cost to sell and hence there is no impairment loss to be recognised in the statement of profit and loss account.
a) Share Capital Suspense comprises of 12 equity shares pending to be allotted as fully paid up to some non-resident equity shareholders without payment being received in cash in terms of Regulation 7 of Notification No. FEMA 20/2000 RB of May 3, 2000 and 1 equity share of Rs.10 pending to be allotted as fully paid to a non-resident share holder by way of bonus share in terms of RBI regulations.
c) Terms/rights attached to equity shares
The Company has issued only one class of equity shares having a par value of Rs. 10 per share. All Equity Shares carry one vote per share without restrictions and are entitled to Dividend, as and when declared. All shares rank equally with regard to the Company''s residual assets.
e) There have been no shares which has been issued for a consideration other than cash and no shares bought back by the company during the period of 5 years immediately preceding the reporting date.
f) Employees'' Stock Option Scheme(s)
Employees'' Stock Option Scheme - 2009 ("ESOP 2009"), approved by the Shareholders of the Company in their meeting held on July 23, 2009, provides for 457500 stock options representing one equity share each. The grant date of the scheme is April 1, 2010. All options were granted at Rs.30.85 per share (market price at the time of grant). A compensation committee comprising independent members of the Board of Directors administers the Scheme.
30% of the options granted vest with the eligible employees on the expiry of one year, another 30% on the expiry of two years and the balance 40% on the expiry of three years from the date of grant.
The employee compensation costs has been calculated using the intrinsic value-based method of accounting for options granted and amounted to Rs. Nil for the financial year 2017-18. The Company has availed the option available under Ind AS 101 considering that the vesting period has elapsed on the transition date.
The fair value of each option is estimated using the Black Scholes Option Pricing Model after applying the following key assumptions on a weighted average basis:
Nature and purpose of reserves
a) Capital subsidy reserve
This represents the profit earned by the company through a special transaction in the nature of a government subsidy, that is not available for distributing dividend;
b) Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of the Companies Act, 2013;
c) General reserve
General reserve is a distributable reserve created by way of transfer from time to time from annual profits;
d) Retained earnings
Represents the profit/(loss) accumulated over the years;
a. Term loan from State Bank of India, outstanding Rs.3,44.00 lacs (previous year: Rs.3,71.00 lacs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.3.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.10.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.12.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.12.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to Oldenburgische Landesbank AG (''OLB'')) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
b. Term Loan from Punjab National Bank, outstanding Rs.5,93.21 lacs (previous year: Rs.6,65.75 lacs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.7.25 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.24.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.28.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.30.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2019, Rs.2,31.79 lacs had been paid in advance;
c. ECB from Oldenburgische Landesbank AG (''OLB'') (with whom Bremer Kreditbank AG (''BKB Bank'') has merged as of September 1, 2018), in the nature of term loan, outstanding â¬5,670,013.36; equivalent to Rs.44,58.61 lacs (previous year: â¬6,804,016.00; equivalent to Rs.55,48.66 lacs), carrying interest linked to Euribor has been rescheduled, is now repayable in 14 semi-annual instalments of â¬567,001.34 each, along with interest, commencing fro m April 2017, is secured by hypothecation of specified Dielectric Film Line and slitter at Barjora and is insured under Hermes export credit guarantee;
d. Term Loan from State Bank of India, outstanding Rs.17,80.00 lacs (previous year: Rs.19,19.75 lacs) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.15.50 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.51.75 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.62.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.64.75 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
e. Term Loan from State Bank of India, outstanding Rs.13,76.00 lacs (previous year: Rs.14,05.06 lacs) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.12.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.40.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.48.00 lacs each starting from April 2019; & (iv) 16 quarterly instalments of Rs.50.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
f. Term Loan from State Bank of India, outstanding Rs.14,18.53 lacs (previous year: Rs.15,36.00 lacs ) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.12.50 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.41.50 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.49.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.51.75 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2019, Rs.5.47 lacs had been paid in advance;
g. Term Loan from Allahabad Bank, outstanding Rs.12,90.00 lacs (previous year: Rs.14,39.76 lacs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 2 quarterly instalments of Rs.7.50 lacs each starting from October, 2016; (ii) 4 quarterly instalments of Rs.11.25 lacs each starting from April 2017; (iii) 4 quarterly instalments of Rs.37.50 lacs each starting from April 2018 (iv) 12 quarterly instalments of Rs.44.50 lacs each starting from April 2019 &
(v) 16 quarterly instalments of Rs.47.25 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
h. Corporate Loan from State Bank of India outstanding Rs.1,73.29 lacs (previous year: Rs.1,73.29 lacs) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.4.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.13.25 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.15.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.16.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.2,78.71 lacs had been paid in advance;
i. Corporate Loan from State Bank of India, outstanding Rs.11,80.97 lacs (previous year: Rs.13,32.59 lacs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.11.25 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.37.50 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.45.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.47.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2019, Rs.1,09.03 lacs had been paid in advance;
j. Corporate Loan from State Bank of India, outstanding Rs.3,13.00 lacs (previous year: Rs.3,38.00 lacs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.2.75 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.9.25 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.11.00 lacs each starting from April 2019 & (v) 16 quarterly instalments of Rs.11.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company & second charge on all the current assets of the Company ranking pari-passu with other term lenders.
k. Corporate Loan from Allahabad Bank, outstanding Rs.3,51.00 lacs (previous year: Rs.4,07.00 lacs ), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 2 quarterly instalments of Rs.4.45 lacs each starting from October, 2016; (ii) 4 quarterly instalments of Rs.6.65 lacs each starting from April 2017; (iii) 4 quarterly instalments of Rs.22.15 lacs each starting from April 2018 (iv) 12 quarterly instalments of Rs.26.30 lacs each starting from April 2019 & (v) 16 quarterly instalments of Rs.27.90 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2019, Rs.4,10.90 lacs had been paid in advance;
l. Term Loan from Punjab National Bank, outstanding Rs.2,90.01 lakhs (previous year: Rs. Nil), carrying interest linked to the bank''s MCLR, is repayable in (i) 24 quarterly instalments of Rs.25.00 lakhs each starting from June, 2020; and is secured by exclusive 1st charge on the assets to be acquired out of above loan and ranking pari passu 2nd charge on all the current assets of the Company with other term lenders.
m Working Capital Term Loan from State Bank of India, outstanding Rs.1,12.00 lacs (previous year: Rs. 1,25.50 lacs), carrying interest linked to the bank''s MCLR, repayable in (i) 4 quarterly instalments of Rs.3.75 lacs each starting from April 2017; (ii) 8 quarterly instalments of Rs.5.75 lacs each starting from April 2018; (iii) 4 quarterly instalments of Rs.6.75 lacs each starting from April 2020; & (iii) 8 quarterly instalments of Rs.7.75 lacs each starting from April 2021, is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
n. Working Capital Term Loan from State Bank of India, outstanding Rs.1,02.23 lacs (previous year: Rs. 1,04.38 lacs), carrying interest linked to the bank''s MCLR, repayable in (i) 4 quarterly instalments of Rs.3.53 lacs each starting from April 2017 (ii) 8 quarterly instalments of Rs.5.29 lacs each starting from April 2018; (iii) 4 quarterly instalments of Rs.6.17 lacs each starting from April 2020 & (iv) 8 quarterly instalments of Rs.7.05 lacs each starting from April 2021 is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
o. Working Capital Term Loan from Punjab National Bank, outstanding Rs.Nil (previous year: Rs. 23.97 lacs), carrying interest linked to the bank''s MCLR was repayable in (i) 4 quarterly instalments of Rs.0.73 lacs each starting from April 2017; (ii)8 quarterly instalments of Rs.1.09 lacs each starting from April 2018; (iii) 4 quarterly instalments of Rs.1.27 lacs each starting from April 2020 & (iv) 8 quarterly instalments of Rs.1.45 lacs each starting from April 2021 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
p. Working Capital Term Loan from State Bank of India, outstanding Rs.79.00 lacs (previous year: Rs. 82.02 lacs), carrying interest linked to the bank''s MCLR, repayable in (i)2 quarterly instalments of Rs.1.50 lacs each starting from October, 2016 (ii) 4 quarterly instalments of Rs.2.50 lacs each starting from April 2017; (iii) 8 quarterly instalments of Rs.4.00 lacs each starting from April 2018 (iv) 4 quarterly instalments of Rs.4.75 lacs starting from April, 2020 & (v) 8 quarterly instalments of Rs.5.50 lacs each starting from April 2021 is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
q. Working Capital Term Loan from Allahabad Bank, outstanding Rs.1,19.00 lacs (previous year: Rs.1,42.60 lacs), carrying interest linked to the bank''s MCLR, repayable in (i)2 quarterly instalments of Rs.2.00 lacs each starting from October, 2016 (ii) 4 quarterly instalments of Rs.4.00 lacs each starting from April 2017; (iii) 8 quarterly instalments of Rs.6.00 lacs each starting from April 2018 (iv) 4 quarterly instalments of Rs.7.25 lacs each starting from April 2020 & iv) 8 quarterly instalments of Rs.8.25 lacs each starting from April 2021 is secured by pari-passu charge by way of hypothecation/ mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and sl itter which are exclusively charged to ''OLB'') of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
r. Vehicle Loan(s) of Rs.23.71 lacs (previous year: Rs.51.33 lacs) carrying interest linked to the bank''s Base Rate, repayable in 36 monthly instalment(s) commencing from date of disbursement, are secured by hypothecation of specified vehicles;
s. Lenders retain the right to recompense for NPV loss amount of Rs. 3,65.00 lacs arising on rescheduling of term loans;
t. There has been no default in servicing of loans as at the end of the year.
u. Rs.2,23.74 lacs, (March 31, 2018: Rs.3,06.87 lacs) has been adjusted against long term borrowings being adjustments on account of adoption of Ind AS.
v. Interest accrued and due on above borrowings is Rs.1,45.68 lacs (March 31, 2018: Rs.1,02.53 lacs).
4. Deferred tax liabilities (net)
As per Ind AS 12 - Income Taxes, deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The Company has taken strategic steps to rationalize and improve operations including through discontinuing un-economic activities and impact of these steps have started bearing positive results. However, as a matter of abundant caution, deferred tax assets have been recognized only to the extent of deferred tax liability.
a) Working Capital loans, repayable on demand, are secured by first charge, ranking pari-passu, in favour of members of the Consortium of Banks, on all current assets of the Company, present and future, and second charge, ranking pari-passu with term lender banks, on the entire fixed assets of the Company, present and future, wherever situated and carry interest linked to Bank''s MCLR;
b) Overdraft against term deposits is secured by way of pledge of term deposit receipts with banks;
c) There has been no default in servicing of loans during and as at the end of the year.
a) Trade payables are non-interest bearing and are normally settled within 90 days except for payments to MSME which are settled within 45 days. Refer Note 47 for information on the Company''s credit risk management processes.
b) Acceptances include arrangements where operational supplies of goods and services are initially paid by banks while the Company continues to recognise the liability till settlement with the banks which are normally effected within a period of 90 days.
c) Disclosures with respect to related party transactions is given in note 42.
d) Micro & small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMDE Act) have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. The disclosure pursuant to MSMED Act on the amount due to micro and small enterprises is given below:
5. Employee benefits
Defined Contribution Plan
The Company makes contribution towards provident fund and ESI for qualifying employees to government administered /approved funds wherein the Company is required to contribute a specified percentage of payroll cost to the schemes to fund the benefits. The Company has no further obligations beyond the periodic contributions.
The Company recognized Rs.2,50.61 lacs (March 31, 2018: Rs 2,33.89 lacs) towards provident fund contributions and ESI contribution in the Statement of Profit and Loss included in "Employee benefits expense" (note 34).
Defined Benefit Plan A. Gratuity:
The Company provides for gratuity as per the Payment of Gratuity Act, 1972 or as per applicable company rules, whichever is higher. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The Company accounts for the liability for gratuity benefits payable in future based on actuarial valuation.
Gratuity is payable to the employees on death or resignation or on retirement at the attainment of superannuation age. To provide for these eventualities, the Actuary has used Indian Assured Lives Mortality (2006-08) Ultimate table.
These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience.
B. Compensated absence:
The leave obligations cover the Company''s liability for earned leave. The liability towards compensated absences for the year ended March 31, 2019 based on the actuarial valuation carried out by using projected accrued benefit method as reduced by the contribution in the plan assets has resulted in a net asset of Rs.51.83 lacs (as on March 31, 2019) and Rs. 54.20 lacs (as on March 31, 2018) which has been shown under financial assets under Financial Statements.
Note: The Hon''ble Supreme Court has in a recent decision ruled that special allowan ce would form part of basic wages for computing provident fund contribution. Management believes that there are numerous interpretative issues on inclusion of special allowances for the purpose of provident fund contribution as well as the effective date applicable. The Company is evaluating the implications of the order while awaiting further directions/clarifications in the matter to assess any potential impact on the company and no reliable estimate can yet be made.
6. Leases
The Company has entered into various agreements of cancellable operating lease for factory premises, and offices; rent amounting to Rs. 57.03 lacs (Rs. 59.71 lacs for the year ending March 31, 2018) has been debited to statement of profit and loss for the year ending 31 March 2019.
7. Related party disclosures:
According to Ind AS 24 ''Related Party Disclosures''
Non-executive Directors are disclosed as Key Managerial Personnel as per the requirement of Ind AS24.
However, they are not KMPs as per Companies Act, 2013
A. List of Related Parties:
1. Subsidiary companies (wholly owned)
a) Xpro Global Limited;
b) Xpro Global Pte. Ltd., Singapore;
2. Promoter companies
a) iPro Capital Limited;
b) Intellipro Finance Pvt. Ltd.;
3. Entities over which Key Managerial Personnel have control
a) Alpha Capital Resources Pte. Ltd., Singapore;
b) Tanjore Partners LLP;
4. Post employment benefit funds
a) Xpro India Limited Employees Provident Fund Trust
b) Xpro India Limited Senior Officers Superannuation Fund
c) Xpro India Limited Employees Gratuity Fund
5. Key managerial personnel
a) Executive Directors:
(i) Sri Sidharth Birla, Chairman;
(ii) Sri C Bhaskar, Managing Director & CEO
b) Non-executive Independent Directors:
(i) Sri Amitabha Guha;
(ii) Sri Ashok Kumar Jha;
(iii) Ms Nandini Khaitan;
(iv) Sri P Murari (upto 31/3/2019)
(v) Sri Utsav Parekh;
(vi) Sri S Ragothaman
c) Non-executive Non-Independent Directors:
(i) Smt Madhushree Birla
d) Others:
(i) Sri H Bakshi, President & COO
(ii) Sri V K Agarwal, Jt. President & CFO
(iii) Sri S C Jain, Company Secretary
C. No Balances were outstanding at the end of the current or previous year from/to any of the Related parties, other than as stated above;
D. Related party relationships have been identified by the management and relied upon by the auditors
8. Exceptional items
Exceptional items of Rs.84.79 lacs represents the net surplus on sale of Company''s non-core asset comprising of unit located at Pithampur. (Previous year exceptional items of Rs.21,88.29 lacs represented gain of Rs.32,58.98 Lacs on sale of non-core assets located at Kolkata and Faridabad, net of additional depreciation/write-down on fixed assets (to reflect realisable value assessed as reasonable and fair) of Rs.8,24.99 lacs and Rs.2,45.70 lacs at Pithampur and Faridabad unit respectively.)
9. Segment Information
The Company operates predominantly within a single reportable business segment i.e. Polymers Processing business and mainly in a single geographic segment i.e. India. There are no separate reportable business or geographic segments. The aforesaid is in line with review of performance and allocation of resources by the chief operating decision maker. Revenue of Rs. 1,81,31.24 lacs (previous year: Rs. 1,89,54.61 lacs) was derived from external customers each accounting for over ten percent of the revenue.
10. CSR Expenditure
Gross amount required to be spent by the Company (i.e. 2% of Average Net Profits u/s 198 of Companies Act. 2013 of last three years): Nil
11. Fair Value Measurement Financial instrument by category
All financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, other bank balances, interest receivable, trade payables, employee related liabilities and short term loans from banks, are measured at amortised cost.
Fair Value hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorised into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical financial instruments;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
Level 3: if there are unobservable inputs for the asset or liability, then the instrument is included in level 3.
The management assessed that for current assets including security deposits, loans, cash and cash equivalents, trade receivables, other recoverable, borrowings, trade payables and other current financial liabilities, the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
(i) Long-term fixed-rate receivables are evaluated by the Company based on parameters such as interest rates, individual creditworthiness of the counterparty and other market risk factors.
(ii) The fair values of the Company''s interest-bearing borrowings, loans and receivables are determined by applying discounted cash flows (''DCF'') method, using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31 March 2017 was assessed to be insignificant.
(iii) All the long term borrowing facilities availed by the Company are variable rate facilities which are subject to changes in underlying Interest rate indices. The management believes that the carrying rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.
Note: Investment in subsidiaries as at the close of year ended March 31, 2019 and March 31, 2018 respectively are carried at cost, per the exemption availed by the Company; hence not considered herein.
The carrying amount of trade receivables, trade payables, capital creditors and cash and cash equivalent are considered to be the same as their fair values, due to short-term in nature.
The carrying value of the amortized financial assets and liabilities approximate to the fair value on the respective reporting dates.
ii) Risk management
The entity''s activities expose it to market risk, liquidity risk and credit risk. The entity board of directors has overall responsibility for the establishment and oversight of the entity''s risk management framework. "This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A. Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the entity. The entity''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
Credit risk arises from cash and cash equivalents, trade receivables, investment carried at amortized cost and deposits with banks and financial institutions.
Credit risk management Credit risk rating
The entity assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets:
i) Low credit risk;
ii) Moderate credit risk and
iii) High credit risk on financial reporting date
Based on business environment in which the entity operates, there have been no defaults on financial assets of the entity by the counterparty.
Assets are written off when there is no reasonable expectation of recovery, such a debtor declaring bankruptcy or a litigation decided against the entity. The entity continues to engage with parties whose balances are written off and attempts to enforce repayment. The entity does not have any of the debts which are recoverable.
Cash & cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
Trade receivables
The Company closely monitors the credit-worthiness of the debtors through internal systems for corporate customers, thereby, limiting the credit risk. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivables become one year past due.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost includes loans and advances to employees, security deposit and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are written defined limits.
Expected credit risk losses for financial assets other than trade receivables
Company provides for expected credit losses on loans and advances by assessing individual financial instruments for expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the company can draw to apply consistently to entire population. For such financial assets, the Company''s policy is to provide for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.
Expected credit loss for trade receivables under simplified approach
The Company recognizes life-time expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trends of default. There have been no significant past due trade receivables as Company receives its significant revenue from selling to major customers directly, wherein there are very low or no chances of non-recoverability. For the rest of operations there were no significant past due receivables.
B. Liquidity Risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors. 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. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows.
Maturities of financial liabilities
The tables below analyse the Company''s financial liabilities into relevant groupings based on their contractual maturities for all non-derivative financial liabilities.
C. Market risk -
Foreign currency risk -
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering that part of the borrowings are in foreign currency and also purchases are made in foreign currency, the Company''s exposure to foreign currency at each reporting date is disclosed herein.
Interest rate risk Liabilities
The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. At March 31, 2018, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. The Company''s investments in Fixed Deposits all pay fixed interest rates.
Assets
The Company''s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rate.
Capital management policies and procedures
For the purpose of the Company''s capital management, capital includes issued equity share capital, instruments entirely equity in nature and all other equity reserves attributable to the equity holders.
The Company''s capital management objectives are
- to ensure the Company''s ability to continue as a going concern
- to provide an adequate return to shareholders
Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
12. Revenue related disclosures
The Company has adopted Ind AS 115 ''Revenue from Contract with Customer'' from April 1, 2018 (modified retrospective approach) which resulted in changes in accounting policies and adjustments to the amounts recognized in the financial statements. There is no impact on the earning per share pursuant to above.
D. The Company has applied Ind AS 115 prospectively from April 1, 2018. The adoption of this standard did not have a material impact on the financial statements of the Company.
13. The standalone financial statements were approved for issue by the Board of Directors on May 25, 2019.
Mar 31, 2018
1. Company Information:
Xpro India Limited (the "Company") is a public limited company domiciled in India with its registered office located at Barjora-Mejia Road, P.O. Ghutgoria, Tehsil: Barjora, Dist.: Bankura 722 202, West Bengal. Incorporated on November 26, 1997 as "Biax Films Limited" under the Companies Act, 1956, the present name was adopted w.e.f. September 22, 1998. Equity shares of the Company are listed on the National Stock Exchange (NSE) and are admitted for trading on the Bombay Stock Exchange (BSE). Organised into operating divisions for operational convenience, the Company is engaged mainly in the business of Polymers Processing at multiple locations and is the leading manufacturer in India of Coextruded Plastic Sheets, Thermoformed Liners and Speciality Films (including Dielectric Films and special purpose BOPP Films).
2. Basis for Preparation:
a. Statement of compliance
These financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
Financial statements for the year ended March 31, 2018 are the first to have been prepared in accordance with Ind AS. For all the periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the generally accepted accounting principles in India, including accounting standards specified under Section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP''). The date of transition to Ind AS is April 1, 2016. The opening Balance Sheet as at April 1, 2016 and the financial statements for the year ended March 31, 2017 have been restated in accordance with Ind AS for comparative information. The Company followed the provisions of Ind AS 101 in preparing its opening Ind AS Balance Sheet as of the date of transition. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company''s financial statements are provided in note 47.
b. Basis of measurement
These financial statements have been prepared on a historical cost basis except for (a) certain financial instruments that are measured at fair values at the end of each reporting period and (b) net defined benefit assets/liability measured at fair value of planned assets less present value of defined benefit obligations. The methods used to measure fair values are discussed further in notes to financial statements.
c. Functional and presentation currency
The financial statements of the Company are presented in Indian Rupees (Rs.), which is also its functional currency. All financial amounts disclosed in the financial statements and notes have been rounded to the nearest lakh (upto two decimals), unless stated otherwise.
d. Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:
i) Expected to be realised or intended to be sold or consumed in normal operating cycle;
ii) Held primarily for the purpose of trading;
iii) Expected to be realised within twelve months after the reporting period; or
iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
Current assets include current portion of non-current financial assets.
All other assets are classified as non-current.
A liability is current when:
i) It is expected to be settled in normal operating cycle;
ii) It is held primarily for the purpose of trading;
iii) It is due to be settled within twelve months after the reporting period;
iv) There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Current liabilities include current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
Deferred tax assets/liabilities are classified as non-current.
Operating Cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of classification of assets and liabilities as current and non-current.
e. Fair Value Measurements
The Company measures financial instruments at fair value which is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either in the principal market for the asset or liability or in the absence of a principal market in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as follows:
- Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2: Inputs other than quoted prices, included in Level 1 that are directly or indirectly observable for the asset or liability;
- Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. The Company recognises transfer between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in Note 3(q) - Financial Instruments.
Notes:
(a) The management assesses the fair value of these financial assets not to be materially different from the amounts recognised in the financial statements;
(b) Balance with government authorities represents good and service tax (earlier cenvat and service tax) paid on capital goods and inputs (earlier capital goods and input materials and services) utilized/consumed by the company and eligible for utilisation towards discharge of goods and service tax (earlier cenvat and service tax liability) in respect of supplies and services rendered by the company. The company expects the utilisation of outstanding balances as at each date of statement of financial position within twelve months thereof.
The management decided, during the year ended March 31, 2018, to sell or otherwise dispose non-core asset being Pithampur Unit of the Company, and obtained necessary shareholder and bank approvals. Accordingly, in terms of Ind AS 105 Non-current assets held for sale and discontinuing operations, the property, plant and equipment situated at Pithampur Unit (March 31, 2017 Faridabad Unit) are presented as ''Assets held for sale'' separately from other assets in the balance sheet. These assets are expected to be sold during 2018-19. Assets classified as held for sale as at March 31, 2017 have been sold during the year. Under previous GAAP, the Company disclosed the property, plant and equipment held for sale under ''Other current assets'' in accordance with AS 10 - Accounting for fixed assets.
a) Share Capital Suspense comprises of 12 equity shares pending to be allotted as fully paid up to some non-resident equity shareholders without payment being received in cash in terms of Regulation 7 of Notification No. FEMA 20/2000 RB of May 3, 2000 and 1 equity share of Rs.10 pending to be allotted as fully paid to a non-resident share holder by way of bonus share in terms of RBI regulations.
e) There have been no shares which has been issued for a consideration other than cash and no shares bought back by the company during the period of 5 years immediately preceding the reporting date.
f) Employees'' Stock Option Scheme(s)
Employees'' Stock Option Scheme - 2009 ("ESOP 2009"), approved by the Shareholders of the Company in their meeting held on July 23, 2009, provides for 457500 stock options representing one equity share each. The grant date of the scheme is April 1, 2010. All options were granted at Rs.30.85 per share (market price at the time of grant). A compensation committee comprising independent members of the Board of Directors administers the Scheme.
30% of the options granted vest with the eligible employees on the expiry of one year, another 30% on the expiry of two years and the balance 40% on the expiry of three years from the date of grant.
Nature and purpose of reserves
a) Capital subsidy reserve
This represents the profit earned by the company through a special transaction in the nature of a government subsidy, that is not available for distributing dividend;
b) Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of the Companies Act, 2013;
c) General reserve
General reserve is a distributable reserve created by way of transfer from time to time from annual profits;
d) Retained earnings
Represents the profit/(loss) accumulated over the years;
a. Term loan from State Bank of India, outstanding Rs.3,71.00 lakhs (previous year: Rs.3,95.66 lakhs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.3.00 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.10.00 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.12.00 lakhs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.12.50 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.13.00 lakhs had been paid in advance;
b. Term Loan from Punjab National Bank, outstanding Rs.6,65.75 lakhs (previous year: Rs.9,50.00 lakhs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.7.25 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.24.00 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.28.75 lakhs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.30.00 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.2,55.25 lakhs had been paid in advance;
c. ECB from Bremer Kreditbank AG (''BKB Bank'') (formerly known as KBC Bank Deutschland AG), in the nature of term loan, outstanding Rs.6,804,016.00; equivalent to Rs.55,48.66 lakhs (previous year: Rs.7,938,018.72; equivalent to Rs.55,85.19 lakhs), carrying interest linked to Euribor has been rescheduled, is now repayable in 14 semi-annual instalments of Rs.567,001.34 each, along with interest, commencing from April 2017, is secured by hypothecation of specified Dielectric Film Line and slitter at Barjora and is insured under Hermes export credit guarantee;
d. Term Loan from State Bank of India, outstanding Rs.19,19.75 lakhs (previous year: Rs.20,49.00 lakhs) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.15.50 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.51.75 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.62.00 lakhs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.64.75 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.67.25 lakhs had been paid in advance;
e. Term Loan from State Bank of India, outstanding Rs.14,05.06 lakhs (previous year: Rs.15,84.00 lakhs) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.12.00 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.40.00 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.48.00 lakhs each starting from April 2019; & (iv) 16 quarterly instalments of Rs.50.00 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.1,30.94 lakhs had been paid in advance;
f. Term Loan from State Bank of India, outstanding Rs.15,36.00 lakhs (previous year: Rs.16,40.00 lakhs ) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.12.50 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.41.50 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.49.75 lakhs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.51.75 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.54.00 lakhs had been paid in advance;
g. Term Loan from Allahabad Bank, outstanding Rs.14,39.76 lakhs (previous year: Rs.15,00.00 lakhs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 2 quarterly instalments of Rs.7.50 lakhs each starting from October, 2016; (ii) 4 quarterly instalments of Rs.11.25 lakhs each starting from April 2017; (iii) 4 quarterly instalments of Rs.37.50 lakhs each starting from April 2018 (iv) 12 quarterly instalments of Rs.44.50 lakhs each starting from April 2019 & (v) 16 quarterly instalments of Rs.47.25 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.0.24 lakhs had been paid in advance;
h. Corporate Loan from State Bank of India outstanding Rs.1,73.29 lakhs (previous year: Rs.5,21.00 lakhs) carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.4.00 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.13.25 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.15.75 lakhs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.16.50 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.3,31.71 lakhs had been paid in advance;
i. Corporate Loan from State Bank of India, outstanding Rs.13,32.59 lakhs (previous year: Rs.14,85.00 lakhs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.11.25 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.37.50 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.45.00 lakhs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.47.00 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.1,07.41 lakhs had been paid in advance;
j. Corporate Loan from State Bank of India, outstanding Rs.3,38.00 lakhs (previous year: Rs.3,61.00 lakhs), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 4 quarterly instalments of Rs.2.75 lakhs each starting from April 2017; (ii) 4 quarterly instalments of Rs.9.25 lakhs each starting from April 2018; (iii) 12 quarterly instalments of Rs.11.00 lakhs each starting from April 2019 & (v) 16 quarterly instalments of Rs.11.50 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company & second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.12.00 lakhs had been paid in advance;
k. Corporate Loan from Allahabad Bank, outstanding Rs.4,07.00 lakhs (previous year: Rs.9,70.00 lakhs ), carrying interest linked to the bank''s MCLR, has been rescheduled, is now repayable in (i) 2 quarterly instalments of Rs.4.45 lakhs each starting from October, 2016; (ii) 4 quarterly instalments of Rs.6.65 lakhs each starting from April 2017; (iii) 4 quarterly instalments of Rs.22.15 lakhs each starting from April 2018 (iv) 12 quarterly instalments of Rs.26.30 lakhs each starting from April 2019 & (v) 16 quarterly instalments of Rs.27.90 lakhs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.4,43.50 lakhs had been paid in advance;
l. Working Capital Term Loan from State Bank of India, outstanding Rs.1,25.50 lakhs (previous year: Rs. 1,50.00 lakhs), carrying interest linked to the bank''s MCLR, repayable in (i) 4 quarterly instalments of Rs.3.75 lakhs each starting from April 2017; (ii) 8 quarterly instalments of Rs.5.75 lakhs each starting from April 2018; (iii) 4 quarterly instalments of Rs.6.75 lakhs each starting from April 2020; & (iii) 8 quarterly instalments of Rs.7.75 lakhs each starting from April 2021, is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.9.50 lakhs had been paid in advance;
m. Working Capital Term Loan from State Bank of India, outstanding Rs.1,04.38 lakhs (previous year: Rs. 1,37.48 lakhs), carrying interest linked to the bank''s MCLR, repayable in (i) 4 quarterly instalments of Rs.3.53 lakhs each starting from April 2017 (ii) 8 quarterly instalments of Rs.5.29 lakhs each starting from April 2018; (iii) 4 quarterly instalments of Rs.6.17 lakhs each starting from April 2020 & (iv) 8 quarterly instalments of Rs.7.05 lakhs each starting from April 2021 is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.18.99 lakhs had been paid in advance;
n. Working Capital Term Loan from Punjab National Bank, outstanding Rs.23.97 lakhs (previous year: Rs. 28.28 lakhs), carrying interest linked to the bank''s MCLR is now repayable in (i) 4 quarterly instalments of Rs.0.73 lakhs each starting from April 2017; (ii)8 quarterly instalments of Rs.1.09 lakhs each starting from April 2018; (iii) 4 quarterly instalments of Rs.1.27 lakhs each starting from April 2020 & (iv) 8 quarterly instalments of Rs.1.45 lakhs each starting from April 2021 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.1.41 lakhs had been paid in advance;
o. Working Capital Term Loan from State Bank of India, outstanding Rs.82.02 lakhs (previous year: Rs. Nil), carrying interest linked to the bank''s MCLR, repayable in (i)2 quarterly instalments of Rs.1.50 lakhs each starting from October, 2016 (ii) 4 quarterly instalments of Rs.2.50 lakhs each starting from April 2017; (iii) 8 quarterly instalments of Rs.4.00 lakhs each starting from April 2018 (iv) 4 quarterly instalments of Rs.4.75 lakhs starting from April, 2020 & (v) 8 quarterly instalments of Rs.5.50 lakhs each starting from April 2021 is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.12.98 lakhs had been paid in advance;
p. Working Capital Term Loan from Allahabad Bank, outstanding Rs.1,42.60 lakhs (previous year: Rs. Nil), carrying interest linked to the bank''s MCLR, repayable in (i)2 quarterly instalments of Rs.2.00 lakhs each starting from October, 2016 (ii) 4 quarterly instalments of Rs.4.00 lakhs each starting from April 2017; (iii) 8 quarterly instalments of Rs.6.00 lakhs each starting from April 2018 (iv) 4 quarterly instalments of Rs.7.25 lakhs each starting from April 2020 & iv) 8 quarterly instalments of Rs.8.25 lakhs each starting from April 2021 is secured by pari-passu charge by way of hypothecation/ mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. As on March 31, 2018, Rs.0.40 lakhs had been paid in advance;
q. Vehicle Loan(s) of Rs.51.33 lakhs (previous year: Rs.58.30 lakhs) carrying interest linked to the bank''s Base Rate, repayable in 36 monthly instalment(s) commencing from date of disbursement, are secured by hypothecation of specified vehicles;
r. Lenders retain the right to recompense for NPV loss amount of Rs. 3,65.00 lakhs arising on rescheduling of term loans;
s. There has been no default in servicing of loans as at the end of the year.
t. Rs.3,06.87 lakhs, (March 31, 2017: Rs.2,66.06 lakhs; April 1, 2016: Rs.3,27.57 lakhs) has been adjusted against long term borrowings being adjustments on account of adoption of Ind AS (refer Note 47).
3. Deferred tax liabilities (net)
As per Ind AS 12 - Income Taxes, deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The Company has taken strategic steps to rationalize and improve operations including through discontinuing un-economic activities and impact of these steps have started bearing positive results. However, as a matter of abundant caution, deferred tax assets have been recognized only to the extent of deferred tax liability.
a) Working Capital loans, repayable on demand, are secured by first charge, ranking pari-passu, in favour of members of the Consortium of Banks, on all current assets of the Company, present and future, and second charge, ranking pari-passu with term lender banks, on the entire fixed assets of the Company, present and future, wherever situated and carry interest linked to Bank''s MCLR;
b) Loan from related party carries interest at 10 % per annum and is repayable on demand;
c) Loan from others carries interest at 12 % per annum and is repayable on demand.
a) There are no dues to Micro and Small Enterprises, determined to the extent such parties have been identified on the basis of information available with the Company, as at March 31, 2018, March 31, 2017 and April 1, 2016 which require disclosure under the Micro, Small and Medium Enterprises Development Act, 2006. This has been relied upon by the Auditors. Refer Note 46 for information about credit risk and market risk of Trade payables.
b) Acceptances include arrangements where operational supplies of goods and services are initially paid by banks while the Company continues to recognise the liability till settlement with the banks which are normally effected within a period of 90 days.
c) Disclosures with respect to related party transactions is given in note 41.
Gratuity is payable to the employees on death or resignation or on retirement at the attainment of superannuation age. To provide for these eventualities, the Actuary has used Indian Assured Lives Mortality (2006-08) Ultimate table.
These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience.
B. Compensated absence:
The leave obligations cover the Company''s liability for earned leave. The liability towards compensated absences for the year ended March 31, 2018 based on the actuarial valuation carried out by using projected accrued benefit method as reduced by the contribution in the plan assets has resulted in a net asset of Rs.54.20 lakhs (as on March 31, 2018) and Rs.24.91 lakhs (as on March 31, 2017) which has been shown under financial assets under Financial Statements.
4. Leases
The Company has entered into various agreements of cancellable operating lease for factory premises, and offices; rent amounting to Rs. 59.71 lakhs (Rs. 53.12 lakhs for the year ending March 31, 2017) has been debited to statement of profit and loss for the year ending 31 March 2018.
5. Exceptional items
Exceptional items of Rs.2188.29 lacs represents gain of Rs.3258.98 Lacs on sale of non-core assets located at Kolkata and Faridabad, net of additional depreciation/write-down on fixed assets (to reflect realisable value assessed as reasonable and fair) of Rs.824.99 lacs and Rs.245.70 lacs at Pithampur and Faridabad unit respectively.
6. Segment Information
The Company operates predominantly within a single reportable business segment i.e. Polymers Processing business and mainly in a single geographic segment i.e. India. There are no separate reportable business or geographic segments. The aforesaid is in line with review of performance and allocation of resources by the chief operating decision maker. Revenue of Rs. 1,89,54.61 lakhs (previous year; Rs. 1,69,32.66 lakhs) was derived from external customers each accounting for over ten percent of the revenue.
7. CSR Expenditure
Gross amount required to be spent by the Company (i.e. 2% of Average Net Profits u/s 198 of Companies Act. 2013 of last three years): Nil
8. Fair Value Measurement
Financial instrument by category
All financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, other bank balances, interest receivable, trade payables, employee related liabilities and short term loans from banks, are measured at amortised cost.
Fair Value hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorised into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical financial instruments;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
Level 3: if there are unobservable inputs for the asset or liability, then the instrument is included in level 3.
The carrying amount of trade receivables, trade payables, capital creditors and cash and cash equivalent are considered to be the same as their fair values, due to short-term in nature.
The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates.
ii) Risk management
The entity''s activities expose it to market risk, liquidity risk and credit risk. The entity board of directors has overall responsibility for the establishment and oversight of the entity''s risk management framework. "This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A. Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the entity. The entity''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
Credit risk arises from cash and cash equivalents, trade receivables, investment carried at amortised cost and deposits with banks and financial institutions.
Credit risk management
Credit risk rating
The entity assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets:
i) Low credit risk; ii) Moderate credit risk and iii) High credit risk on financial reporting date
Cash & cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
Trade receivables
The Company closely monitors the credit-worthiness of the debtors through internal systems for corporate customers, thereby, limiting the credit risk. The Company assesses increase in credit risk on an ongoing basis for amounts receivable hat become past due and default is considered to have occurred when amounts receivables become one year past due.
Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances to employees, security deposit and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are written defined limits.
Expected credit risk losses for financial assets other than trade receivables
Company provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the company can draw to apply consistently to entire population. For such financial assets, the Company''s policy is to provide for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.
B. Liquidity Risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors. 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. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows.
Maturities of financial liabilities
The tables below analyse the Company''s financial liabilities into relevant groupings based on their contractual maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
C. Market risk -
Foreign currency risk -
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering that part of the borrowings are in foreign currency and also purchases are made in foreign currency, the Company''s exposure to foreign currency at each reporting date is disclosed herein.
Interest rate risk Liabilities
The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. At March 31, 2017, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. The Company''s investments in Fixed Deposits all pay fixed interest rates.
Assets
The Company''s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rate.
Capital management policies and procedures
For the purpose of the Company''s capital management, capital includes issued equity share capital, instruments entirely equity in nature and all other equity reserves attributable to the equity holders.
The Company''s capital management objectives are
- to ensure the Company''s ability to continue as a going concern
- to provide an adequate return to shareholders
Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
9. First time adoption of Ind AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the Company''s date of transition). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set in the following tables and notes.
A. Optional exemption availed:
Deemed cost for property, plant and equipment and intangiible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as 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. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Asset. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.
Deemed cost of investments in subsidiaries
The Company has elected to carry the investment in subsidiary and associates at its actual cost determined as per Ind AS 27 "Separate financial statements'' as its carrying value in these financial statements on the date of transition.
Exchange differences arising on long-term monetary assets
The Company has elected to continue the policy adopted for accounting for exchange differences arising from transition of long-term foreign currency monetary items recognised in the financial statements.
B. Mandatory exemptions:
Estimates:
An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 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.
- Provision for doubtful debts as per expected credit loss model.
Classification and measurement of financial assets and liabilities
The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition. Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of time value of money i.e.l the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.
Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:
The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.
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 derecognition requirements in Ind AS 109 retrospectively from date of the entity''s 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 transition.
The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
C. Reconciliation between previous GAAP and Ind AS
Ind AS 101 requires entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliation from previous GAAP to Ind AS.
Note 1
Measurement of financial assets and liabilities initially at fair value and subsequently at amortised cost
Under previous GAAP, all financial assets and financial liabilities were carried at cost.
Under Ind AS, certain financial assets and financial liabilities are subsequently measured at amortised cost which involves the application of effective interest method. In applying the effective interest method, an entity identifies fees that are an integral part of the effective interest rate of a financial instrument. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or financial liability.
For certain financial assets and liabilities, the fair value of the financial instruments at the date of transition to Ind AS has been considered as the new amortised cost of those financial instrument at the date of transition to Ind AS.
The aforesaid adjustment has been made for following categories of financial assets and financial liabilities:
(i) Security deposits paid
(ii) Long term borrowings
Note 2
Re-measurement gains on defined benefit plans
Under Ind AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined liability, are recognized in other comprehensive income instead of profit or loss in previous GAAP.
Note 3
Stores and Spares
Stores and spares having a useful life for more than 1 year has been capitalised in property, plant and equipment and depreciated accordingly.
Note 4
Transaction costs (like loan origination or processing fees, issue expenses) are adjusted in proceeds of borrowings initially and recognised over the tenor using effective interest rate method.
Note 5
Revenue has been shown as gross of excise duty and net of GST.
(v) There are no material adjustments made to the Statement of Cash Flows on adoption of Ind AS.
10. Recent accounting pronouncements
Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:
On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transition for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.
Ind AS 115
On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers. The standard permits two possible methods of transition:
Retrospective approach - Under this approach the standard will be applied retrospective to each prior reporting period presented in accordance with Ind AS 8-Accounting Policies, Changes in Accounting Estimates and Errors.
Retrospectively with cumulative effect of initially applying that standard recognised at the date of initial application (Cumulative catch-up approach)
The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS is expected to be insignificant.
11. The standalone financial statements were approved for issue by the Board of Directors on May 24, 2018.
Mar 31, 2016
1 Share Capital Suspense comprises of 12 equity shares pending to be allotted as fully paid up to some non-resident equity shareholders without payment being received in cash in terms of Regulation 7 of Notification No. FEMA 20/2000 RB of May 3, 2000 and 1 equity share of Rs.10 pending to be allotted as fully paid to a non -resident share holder by way of bonus share in terms of RBI regulations.
2 The Company has issued only one class of shares referred to as equity shares having a par value of Rs.10. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regard to the Company''s residual assets after distribution of all preferential amounts.
3 Shareholder(s) holding more than 5% shares in the Company as on March 31, 2016 are:
i) IntelliPro Finance Private Limited : 22,70,000 shares; 19.47% (previous year: 22,70,000 shares; 19.47%) and
ii) iPro Capital Limited: 29,00,000 shares; 24.87% (previous year: 29,00,000; 24.87%).
4 Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period:
5 Employees'' Stock Option Scheme(s)
Employees'' Stock Option Scheme - 2009 ("ESOP 2009"), approved by the Shareholders of the Company in their meeting held on July 23, 2009, provides for 457500 stock options representing one equity share each. The grant date of the scheme is April 1, 2010. All options were granted at Rs.30.85 per share (market price at the time of grant). A compensation committee comprising independent members of the Board of Directors administers the Scheme.
30% of the options granted vest with the eligible employees on the expiry of one year, another 30% on the expiry of two years and the balance 40% on the expiry of three years from the date of grant.
Note: Amounts stated under "current maturities" above are disclosed under the head "other current liabilities" (note 10)
a. Term Loan from State Bank of India, outstanding Rs.4,44,65,564 (previous year: Rs. 5,79,65,564), carrying interest linked to the bank''s Base Rate, repayable in (i) 2 quarterly installments of Rs.30.00 lacs each paid in December 2012 and March 2013; (ii) 20 quarterly installments of Rs.45.00 lacs each starting from June 2013; & (iii) 2 quarterly installments of Rs.20.00 lacs each payable in June 2018 and September 2018 is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Company situated at Ranjangaon & second charge on all the current assets of the Company ranking pari -passu with other term lenders;
b. Term Loan from Punjab National Bank, outstanding Rs.9,60,00,000 (previous year: Rs. 11,40,00,000), carrying interest linked to the bank''s Base Rate, repayable in 16 quarterly installments of (a) first 4 of Rs.40,00,000 each; (b) next 4 of Rs.45,00,000 each; (c) next 4 of Rs.90,00,000 each and (d) last 4 of Rs.1,50,00,000 each , commencing from April 2014, is secured by pari-passu charge by way of hypothecation/mortgage of all movable and immovable assets, present and future, of the Company situated at Ranjangaon & second charge on all the current assets of the Company ranking pari -passu with other term lenders;
c. ECB from Bremer Kreditbank AG (''BKB Bank'') (formerly known as KBC Bank Deutschland AG), in the nature of term loan, outstanding â¬7,938,018.72; equivalent to Rs.60,15,43,055 (previous year: â¬8,505,020.06 equivalent to Rs.58,19,13,470), carrying interest linked to Euribor, repayable in 16 semi-annual installments of â¬567,001.34 each, along with interest, commencing from October 2014, is secured by hypothecation of specified Dielectric Film Line and slitter to be installed at Barjora and is insured under Hermes export credit guarantee.
d. Term Loans under SBI TL Consortium comprising (i) State Bank of India: outstanding Rs.22,08,00,000 (previous year: Rs.26,22,00,000) repayable in 20 quarterly installments of Rs.1,38,00,000, along with interest, commencing from March, 2015; (ii) State Bank of Hyderabad: outstanding Rs.17,59,50,000 (previous year: Rs.20,70,00,000) repayable in 20 quarterly installments of Rs.1,03,50,000 each, along with interest, commencing from April, 2015; and (iii) State Bank of Patiala: outstanding Rs.17,00,00,000 (previous year: Rs.20,00,00,000) repayable in 20 quarterly installments of Rs.1,00,00,000 each, along with interest, commencing from April, 2015; carrying interest linked to the respective Bank''s Base Rates are secured by pari-passu charge by way of hypothecation/mortgage of all movable and immovable assets, present and future, of the Company situated at Barjora (excluding specified Dielectric Film Line and slitter which are exclusively charged to BKB Bank) & second charge on all the current assets of the Company ranking pari-passu with other term lenders excluding BKB Bank;
e. Term Loan from Allahabad Bank, outstanding Rs.14,89,97,855 (previous year: Rs.2,00,00,000), carrying interest linked to the bank''s Base Rate, repayable in 17 quarterly installments of Rs.84,00,000 and last installment of Rs.72,00,000 commencing from September 2016, is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Company''s unit situated at Ranjangaon, & second charge on all the current assets of the Company ranking pari-passu with other term lenders;
f. Corporate Loan from Allahabad Bank, outstanding Nil (previous year: Rs.8,25,00,000), carrying interest linked to the bank''s Base Rate, is repayable in bullet payment of Rs.8,25,00,000 in June 2015 and is secured by first charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Coex Division of the Company situated at Faridabad & second charge on all the current assets of the Company ranking pari -passu with other term lenders;
g. Corporate Loan from State Bank of India, outstanding Rs.5,79,00,000 (previous year: Rs.7,38,00,000), carrying interest linked to the bank''s Base Rate, is repayable in 16 quarterly installments of Rs.53,00,000 each and last 2 installments of Rs.52,00,000 and Rs.50,00,000 respectively commencing from June, 2014 is secured by first charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Coex Division of the Company situated at Greater Noida & second charge on all the current assets of the Company ranking pari-passu with other term lenders;
h. Corporate Loan from State Bank of Hyderabad, outstanding Rs.15,00,00,000 (previous year: Rs.15,00,00,000), carrying interest linked to the bank''s Base Rate, is repayable in 17 quarterly installments of Rs.83,00,000 each and last installment of Rs.89,00,000 commencing from July, 2016 is secured by first charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Biax Division of the Company situated at Pithampur & second charge on all the current assets of the Company ranking pari-passu with other term lenders;
i. Corporate Loan from State Bank of India, outstanding Rs. 3,65,00,000 (previous year: Rs. Nil), carrying interest linked to the bank''s Base Rate, is repayable in 14 equal installments of Rs.18,25,000 each starting from December 2017 followed by 4 installments of Rs.27,37,500 each and is secured by ranking pari-passu first charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Coex Division of the Company situated at Faridabad & on all the current assets of the Company ranking pari -passu with other working capital lenders;
j. Corporate Loan from Allahabad Bank, outstanding Rs. 10,00,00,000 (previous year: Rs. Nil), carrying interest linked to the bank''s Base Rate is repayable in 5 equal installments of Rs.30,00,000 each starting from March 2016, followed by 12 installments of Rs.60,00,000 each and last installment of Rs.1,30,00,000 and is secured by ranking pari passu first charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future, of the Coex Division of the Company situated at Faridabad & second charge on all the current assets of the Company ranking pari -passu with other term lenders;
k. Car Loan(s) of Rs.54,40,204 (previous year: Rs.54,67,565) carrying interest linked to the bank''s Base Rate, repayable in 36 monthly installment(s) commencing from date of disbursement, are secured by hypothecation of specified vehicles.
a. Working Capital loans are secured by first charge, ranking pari-passu, in favour of members of the Consortium of Banks, on all current assets of the Company, present and future, and second charge, ranking pari-passu with term lender banks, on the entire fixed assets of the Company, present and future, wherever situated.
b. Overdraft against term deposits is secured by way of pledge of Term Deposit Receipts with the bank(s).
There are no dues to Micro and Small Enterprises (determined to the extent such parties have been identified on the basis of information available with the Company, as at March 31, 2016) which require disclosure under the Micro, Small and Medium Enterprises Development Act, 2006.
i) Capital work-in-progress includes (previous year figures in italics) Leasehold Land: Rs.31,24,436 (Rs.31,24,436); Plant & Machinery: Rs.17,16,825 (Rs.3,60,306); Finance Cost: Rs.Nil (Rs.14,16,184); Other Pre-operative Expenses: Rs.Nil (Rs.8,12,369);
Borrowing cost capitalized during the year as fixed assets: Rs.77,27,854 (Rs. 20,52,78,087)
ii) Some assets of which the Company is the beneficial owner are pending for transfer in the name of the Company and for which necessary steps are being taken.
iii) As stipulated in AS-28 on Impairment of Assets, the Company assessed potential generation of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.
iv) The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 relating to Accounting Standard 11 (AS-11) notified by Government of India on 31st March, 2009. Accordingly, exchange differences on all long term monetary items, with retrospective effect from April 01, 2007 are: (a) To the extent such items are used for the acquisition of a depreciable asset, added to / deducted from the cost of the asset and depreciated over the balance life of the asset. As a result addition of an amount of Rs. 5,92,79,989 has been made (Previous Year Rs.(-) 13,13,96,893) to Gross Block of fixed assets, being the exchange difference on long term monetary items related to the acquisition of a depreciable capital asset.
v) Of the total depreciation for the year shown above, Rs.25,73,688 has been included under the head ''Extraordinary Items'' and thus not included under the head ''Depreciation and Amortization Expense'' in the Statement of Profit and Loss.
g. The Contribution expected to be made by the Company during the next financial year has not been ascertained.
h. The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme 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.1,23,04,560 (Previous year Rs.1,10,12,682) for Provident Fund contributions, Rs.29,01,080 (Previous Year Rs.23,85,090) for Superannuation Fund contributions and Rs.7,14,533 [Previous year Rs.6,22,559) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
(*includes amount paid to a firm in which some of the partners of the Statutory Auditors are partners: Rs.14,75,000 (previous year: Rs. Nil)
b. The Company is lessee under various operating leases, none of which are non-cancellable.
29. As at March 31, 2016, Company''s current liabilities are over its current assets. The Company has taken up with its Term Lenders to reschedule payments. The Company expects to earn operating profit and a positive cash flow from operations during the current year.
7. Foreign Exchange Exposure
The Company periodically avails Foreign Exchange Contracts to hedge its exposures in foreign currency related to firm commitments and highly probable forecasted transactions.
Forward contract outstanding at year-end: Nil [Previous year: Nil]
Foreign exchange currency exposures that have not been hedged by a derivative instrument or otherwise at year -end: Payables: US$665,733 (Rs.4,45,51,009) & ⬠Nil (Rs. Nil); [Previous year: US$1,204,502 (Rs.7,59,55,896) & â¬5,773 (Rs.3,94,989)];
Receivables: US$ Nil (Rs. Nil) & â¬60,791 (Rs.45,08,284); [Previous year: US$3,893 (Rs.2,42,222) & â¬156,241 (Rs.1,04,50,960)];
Loans (including interest accrued but not due): â¬7,979,811 (Rs.60,47,10,109); [Previous year: â¬8,556,319 (Rs.58,54,23,346)];
8. Related Party Disclosures (as per AS 18)
A. List of Related Parties
i) Parties where control exists:
- Wholly owned subsidiaries:
a) Xpro Global Limited;
b) Xpro Global Pte. Ltd., Singapore;
ii) Promoters:
a) IntelliPro Finance Private Limited;
b) iPro Capital Limited;
c) Sri Sidharth Birla, Chairman;
d) Smt. Madhushree Birla, Director;
iii) Key Management Personnel:
Sri C. Bhaskar, Managing Director & Chief Executive Officer;
iv) Enterprises over which Key Managerial Personnel are able to exercise significant influence:
a) Digjam Limited (formerly Digjam Textiles Limited);
b) Market Cafe Foods Limited
B. Transactions with Related Parties: (Previous year figures in italics)
i) No transactions with related parties referred to in A(i) above;
ii) With related parties referred to in A(ii) above:
- Remuneration (including Sitting fees): Rs. 79,45,514 (Rs.70,25,563);
- Inter-corporate deposits received (from iPro Capital Limited) and re-paid: Rs.5,00,00,000 (Rs.Nil);
- Interest paid on inter-corporate deposits (to iPro Capital Limited): Rs.31,13,425 (Rs.Nil);
- Expenses incurred and reimbursement received (from iPro Capital Limited): Rs.1,07,794 (Rs.1,14,375);
iii) With related parties referred to in A(iii) above:
- Remuneration (including leave encashment): Rs.84,12,559 (Rs.1,08,74,479)
iv) With related party referred to in A(iv) above:
a) Digjam Limited: Aggregate of short term intercorporate deposits given from time-to-time: Rs.2,00,00,000 (Rs.5,25,00,000); Deposits repaid by party from time-to-time: Rs.2,50,00,000 (Rs.9,00,00,000); Outstanding amount at year end: Rs.Nil (Rs.50,00,000); Interest received: Rs.37,89,517 (Rs.58,06,489); Expenses incurred and realised: Rs.7,39,784 (Rs.6,97,577);
b) Market Cafe Foods Limited: Purchases: Rs.21,351 (Rs.2,24,384)
C. The above include following individual transactions in excess of 10% of the respective totals:
(i) Remuneration (including leave encashment) paid to Sri Sidharth Birla & Sri C. Bhaskar: Rs.77,45,514 (Rs.68,75,563); & Rs.84,12,559 (Rs.1,08,74,479) respectively;
D. No Balances were outstanding at the end of the current or previous year from/to any of the Related parties, other than Rs.Nil (Rs.56,31,382) due from party referred to in A(iv) above;
9. Extraordinary items:
Extraordinary items represents the extraordinary loss (Rs.1,61,98,161) due to damages attributable e t o heavy rains and flash floods at the Pithampur Unit of Biax Division in July 2015. Insurance claims are in process and will be accounted for upon settlement.
10. Segment Accounting in terms of AS 17 issued by the Institute of Chartered Accountants of India
The Company operates in a single business segment i.e. Polymers Business and mainly in a single geographic segment
i.e. India in the context of Accounting Standard 17, on Segment Reporting issued by the Institute of Chartered Accountants of India, hence there are no reportable segments.
11. Previous year''s figures have been regrouped/reclassified as necessary.
12. Principles of Consolidation:
The consolidated financial statements relate to Xpro India Limited (âthe Company") and its subsidiary companies. The consolidated financial statements have been prepared on the following basis:
a) The financial statements of the Company and its subsidiary companies are combined on a line-by-line basis by adding together the book value of like terms of assets, liabilities, income and expenses, after fully eliminating intra -group balances, intra-group transactions and resulting unrealized profits or losses in accordance with Accounting Standard-21
- âConsolidated Financial Statements" issued by the Institute of Cha rtered Accountants of India.
b) The Consolidated Financial Statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible in the same manner as the Company''s Separate Financial Statements.
13. Other Significant Accounting Policies:
These are same as set out in Note 2 (âSignificant Accounting Policies") to the Financial Statements of the Company.
14. In view of insignificant/negligible transactions of the above named two subsidiary companies, notes involving material items are stated hereunder. These are to be read together with the Notes to the Financial Statements of the Company.
a. Term Deposits pledged with bank(s) for overdraft & other facilities - Rs.3,73,66,692 (Previous year: Rs. 8,75,66,863)
15. Extraordinary item:
Extraordinary item represents the extraordinary loss (Rs.1,61,98,161) due to damages attributable to heav y rains and flash floods at the Pithampur Unit of Biax Division in July 2015. Insurance claims are in process and will be accounted for upon settlement.
( *includes amount paid to a firm in which some of the partners of the Statutory Auditors are partners: Rs.14 ,75,000 (previous year: R s. Nil)
ii) The Company is lessee under various operating leases, none of which are non-cancellable.
16. As at March 31, 2016, the Holding Company''s current liabilities are over its current assets. The Holding Company has taken up with its Term Lenders to reschedule payments. The Holding Company expects to earn operating profit and a positive cash flow from operations during the current year.
17. Related Party Disclosures (as per AS 18)
A. List of Related Parties
i) Promoters:
a) IntelliPro Finance Private Limited; b) iPro Capital Limited;
c) Sri Sidharth Birla, Chairman; d) Smt. Madhushree Birla, Director;
ii) Key Management Personnel:
Sri C. Bhaskar, Managing Director & Chief Executive Officer;
iii) Enterprises over which Key Managerial Personnel are able to exercise significant influence:
a) Digjam Limited (formerly DIgjam Textiles Limited); b) Market Cafe Foods Limited
B. Transactions with Related Parties: (Previous year figures in italics)
i) With related parties referred to in A(i) above:
- Remuneration (including Sitting fees): Rs. 79,45,514 (Rs.70,25,563);
- Inter-corporate deposit received (from iPro Capital Limited) and re-paid: Rs.5,00,00,000 (Rs.Nil);
- Interest paid on inter-corporate deposits (to iPro Capital Limited) : Rs.31,13,425 (Rs.Nil);
- Expenses incurred and reimbursement received (from iPro Capital Limited) : Rs.1,07,794 (Rs.1,14,375);
ii) With related parties referred to in A(ii) above:
- Remuneration (including leave encashment): Rs.84,12,559 (Rs.1,08,74,479);
iii) With related party referred to in A(iii) above:
a) Digjam Limited: Aggregate of short term interoperate deposits given from time-to-time: Rs.2,00,00,000 (Rs.5,25,00,00,000); Deposits repaid by party from time-to-time: Rs.2,50,00,000 (Rs.9,00,00,000); Outstanding amount at year end: Rs.Nil (Rs.50,00,000); Interest received: Rs.37,89,517 (Rs.58,06,489); Expenses incurred and realized: Rs.7,39,784 (Rs.6,97,577);
b) Market Cafe Foods Limited: Purchases: Rs.21,351 (Rs.2,24,384)
C. The above include following individual transactions in excess of 10% of the respective totals:
(i) Remuneration (including leave encashment) paid to Sri Sidharth Birla & Sri C. Bhaskar: Rs.77,45,514 (Rs.68,75,563); & Rs.84,12,559 (Rs.1,08,74,479) respectively;
D. No Balances were outstanding at the end of the current or previous year from/to any of the Related parties, other than Rs.Nil (Rs.56,31,382) due from party referred to in A(iv) above;
18. Previous year''s figures have been regrouped/reclassified as necessary.
Mar 31, 2015
1. Company Overview:
Xpro India Limited ("the Company") is a public company incorporated as
"Biax Films Limited" on November 26, 1997 under the Companies Act,
1956; the present name was adopted w.e.f. September 22, 1998. Equity
shares of the Company are listed on Calcutta Stock Exchange and
National Stock Exchange and are admitted for trading on Bombay Stock
Exchange. Organized into operating divisions for operational
convenience, the Company is engaged mainly in the business of Polymers
Processing at multiple locations and is the leading manufacturer in
India of Coextruded Plastic Sheets, Thermoformed Liners and Speciality
Films (including Dielectric Films and special purpose BOPP Films).
2.1 Share Capital Suspense comprises of 12 equity shares pending to be
allotted as fully paid up to some non-resident equity shareholders
without payment being received in cash in terms of Regulation 7 of
Notification No. FEMA 20/2000 RB of May 3, 2000 and 1 equity share of
Rs.10 pending to be allotted as fully paid to a non-resident share
holder by way of bonus share in terms of RBI regulations.
2.2 The Company has issued only one class of shares referred to as
equity shares having a par value of Rs.10. All equity shares carry one
vote per share without restrictions and are entitled to dividend, as
and when declared. All shares rank equally with regard to the Company''s
residual assets after distribution of all preferential amounts.
2.3 Shareholder(s) holding more than 5% shares in the Company as on
March 31, 2015 are:
i) IntelliPro Finance Private Limited : 22,70,000 shares; 19.47%
(previous year: 22,50,000 shares; 19.30%) and
ii) iPro Capital Limited: 29,00,000 shares; 24.87% (previous year:
29,00,000; 24.87%).
3.1 Employees'' Stock Option Scheme(s)
Employees'' Stock Option Scheme - 2009 ("ESOP 2009"), approved by the
Shareholders of the Company in their meeting held on July 23, 2009,
provides for 457500 stock options representing one equity share each.
The grant date of the scheme is April 1, 2010. All options were granted
at Rs.30.85 per share (market price at the time of grant). A
compensation committee comprising independent members of the Board of
Directors administers the Scheme.
30% of the options granted vest with the eligible employees on the
expiry of one year, another 30% on the expiry of two years and the
balance 40% on the expiry of three years from the date of grant.
4. Long-term Borrowings
a. Term Loan from State Bank of India, outstanding Rs.5,79,65,564
(previous year: Rs.7,59,65,564), carrying interest linked to the bank''s
Base Rate, repayable in (i) 2 quarterly installments of Rs.30.00 lacs
each paid in December 2012 and March 2013; (ii) 20 quarterly
installments of Rs.45.00 lacs each starting from June 2013; & (iii) 2
quarterly installments of Rs.20.00 lacs each payable in June 2018 and
September 2018 is secured by pari-passu charge by way of
hypothecation/mortgage of all the movable and immovable assets, present
and future, of the Company situated at Ranjangaon & second charge on
all the current assets of the Company ranking pari-passu with other
term lenders;
b. Term Loan from State Bank of Hyderabad, outstanding Rs.Nil (previous
year: Rs.2,81,25,000), carrying interest linked to the bank''s Base
Rate, has been repaid and was secured by pari-passu charge by way of
hypothecation/mortgage of all the movable and immovable assets, present
and future, of the Company''s unit situated at Ranjangaon, first charge
on specified sheet line installed at Greater Noida & second charge on
all the current assets of the Company ranking pari- passu with other
term lenders;
c. Term Loan from Allahabad Bank, outstanding Rs.Nil (previous year:
Rs.3,51,00,000), carrying interest linked to the bank''s Base Rate, has
been repaid and was secured by first charge by way of
hypothecation/mortgage of all the movable and immovable assets, present
and future, of the Company situated at Pithampur & second charge on all
the current assets of the Company ranking pari-passu with other term
lenders;
d. Term Loan from Punjab National Bank, outstanding Rs.11,40,00,000
(previous year: Rs.11,27,90,000), carrying interest linked to the
bank''s Base Rate, repayable in 16 quarterly installments of (a) first 4
of Rs.40,00,000 each; (b) next 4 of Rs.45,00,000 each; (c) next 4 of
Rs.90,00,000 each and (d) last 4 of Rs.1,50,00,000 each, commencing
from April 2014, is secured by pari-passu charge by way of
hypothecation/mortgage of all movable and immovable assets, present and
future, of the Company situated at Ranjangaon & second charge on all
the current assets of the Company ranking pari- passu with other term
lenders;
e. ECB from Bremer Kreditbank AG (''BKB Bank'') (formerly known as KBC
Bank Deutschland AG), in the nature of term loan, outstanding
Â8,505,020.06; equivalent to Rs.58,19,13,470 (previous year:
Â9,072,021.40 equivalent to Rs.75,73,32,346), carrying interest
linked to Euribor, repayable in 16 semi-annual installments of
Â567,001.34 each, along with interest, commencing from October 2014,
is secured by hypothecation of specified Dielectric Film Line and
slitter to be installed at Barjora and is insured under Hermes export
credit guarantee.
f. Term Loans under SBI TL Consortium comprising (i) State Bank of
India: outstanding Rs.26,22,00,000 (previous year: Rs.27,60,00,000)
repayable in 20 quarterly installments of Rs.1,38,00,000, along with
interest, commencing from March, 2015; (ii) State Bank of Hyderabad:
outstanding Rs.20,70,00,000 (previous year: Rs.20,70,00,000) repayable
in 20 quarterly installments of Rs.1,03,50,000 each, along with
interest, commencing from April, 2015; and (iii) State Bank of Patiala:
outstanding Rs.20,00,00,000 (previous year: Rs.20,00,00,000) repayable
in 20 quarterly installments of Rs.1,00,00,000 each, along with
interest, commencing from April, 2015; carrying interest linked to the
respective Bank''s Base Rates are secured by pari-passu charge by way of
hypothecation/mortgage of all movable and immovable assets, present and
future, of the Company situated at Barjora (excluding specified
Dielectric Film Line and slitter which are exclusively charged to BKB
Bank) & second charge on all the current assets of the Company ranking
pari-passu with other term lenders excluding BKB Bank;
g. Corporate Loan from Allahabad Bank, outstanding Rs.8,25,00,000
(previous year: Rs.8,25,00,000), carrying interest linked to the bank''s
Base Rate, is repayable in bullet payment of Rs.8,25,00,000 in June
2015 and is secured by first charge by way of hypothecation/mortgage of
all the movable and immovable assets, present and future, of the Coex
Division of the Company situated at Faridabad & second charge on all
the current assets of the Company ranking pari- passu with other term
lenders;
h. Corporate Loan from State Bank of India, outstanding Rs.7,38,00,000
(previous year: Rs.9,50,00,000), carrying interest linked to the bank''s
Base Rate, is repayable in 16 quarterly installments of Rs.53,00,000
each and last 2 installments of Rs.52,00,000 and Rs.50,00,000
respectively commencing from June, 2014 is secured by first charge by
way of hypothecation/mortgage of all the movable and immovable assets,
present and future, of the Coex Division of the Company situated at
Greater Noida & second charge on all the current assets of the Company
ranking pari-passu with other term lenders;
i. Corporate Loan from State Bank of Hyderabad, outstanding
Rs.15,00,00,000 (previous year: Rs.Nil), carrying interest linked to
the bank''s Base Rate, is repayable in 17 quarterly installments of
Rs.83,00,000 each and last installment of Rs.89,00,000 commencing from
July, 2016 is secured by first charge by way of hypothecation/mortgage
of all the movable and immovable assets, present and future, of the
Biax Division of the Company situated at Pithampur & second charge on
all the current assets of the Company ranking pari-passu with other
term lenders;
j. Term Loan from Allahabad Bank, outstanding Rs.2,00,00,000 (previous
year: Rs.Nil) (balance Rs.13,00,00,000 yet to be drawn), carrying
interest linked to the bank''s Base Rate, repayable in 17 quarterly
instalments of Rs.84,00,000 and last instalment of Rs.72,00,000
commencing from September 2016, is secured by pari-passu charge by way
of hypothecation/mortgage of all the movable and immovable assets,
present and future, of the Company''s unit situated at Ranjangaon, &
second charge on all the current assets of the Company ranking
pari-passu with other term lenders;
k. Car Loan(s) of Rs.54,67,565 (previous year: Rs.34,76,910) carrying
interest linked to the bank''s Base Rate, repayable in 36 monthly
installment(s) commencing from date of disbursement, are secured by
hypothecation of specified vehicles.
5. Short Term Borrowings
a. Working Capital loans are secured by first charge, ranking
pari-passu, in favour of members of the Consortium of Banks, on all
current assets of the Company, present and future, and second charge,
ranking pari-passu with term lender banks, on the entire fixed assets
of the Company, present and future, wherever situated.
b. Overdraft against term deposits is secured by way of pledge of Term
Deposit Receipts with the bank(s).
6. Trade Payables
There are no dues to Micro and Small Enterprises (determined to the
extent such parties have been identified on the basis of information
available with the Company, as at March 31, 2015) which require
disclosure under the Micro, Small and Medium Enterprises Development
Act, 2006.
7. Contingent Liabilities and Commitments (to the extent not provided
for)
March 31, 2015 March 31, 2014
Rs. Rs.
Contingent Liabilities
Claims against the Company, not
acknowledged as debt 2,50,208 2,50,208
Sales Tax, Excise & Customs matters
under appeal 4,34,25,411 4,40,27,623
Entry tax under appeal 82,76,433 33,14,134
Bills discounted 4,04,05,615 3,49,33,516
9,23,57,667 8,25,25,481
(In the opinion of the Company, the possibility relating to net outflow
on the above accounts are remote)
Commitments
Estimated amount of contracts remaining
to be executed on Capital Account 6,71,91,048 4,46,61,854
(Net of Advances)
Unpaid portion of subscribed Equity
Capital in subsidiary 47,50,000 47,50,000
7,19,41,048 4,94,11,854
Total 16,42,98,715 13,19,37,335
8. Foreign Exchange Exposure
The Company periodically avails Foreign Exchange Contracts to hedge its
exposures in foreign currency related to firm commitments and highly
probable forecasted transactions.
Forward contract outstanding at year-end: Nil [Previous year: Nil]
Foreign exchange currency exposures that have not been hedged by a
derivative instrument or otherwise at year-end: Payables: US$1,204,502
(Rs.7,59,55,896) & Â5,773 (Rs.3,94,989); [Previous year: US$983,525
(Rs.5,94,93,427) & Nil]; Receivables: US$3,893 (Rs.2,42,222) &
Â156,241 (Rs.1,04,50,960); [Previous year: US$14,447 (Rs.8,57,429) &
 62,691 (Rs.50,97,405)];
Loans (including interest accrued but not due): Â8,556,319
(Rs.58,54,23,346); [Previous year: Â9,379,359 (Rs. 78,29,88,889)];
Others: Nil [Previous year: Â9,006 (Rs.75,182)];
9. Related Party Disclosures (as per /AS 18)
A. List of Related Parties
i) Parties where control exists:
- Wholly owned subsidiaries:
a) Xpro Global Limited; b) Xpro Global Pte. Ltd., Singapore;
ii) Promoters:
a) IntelliPro Finance Private Limited; b) iPro Capital Limited; c) Sri
Sidharth Birla, Chairman; d) Smt. Madhushree Birla, Director;
iii) Key Management Personnel:
Sri C. Bhaskar, Managing Director & Chief Executive Officer;
iv) Enterprises over which Key Managerial Personnel are able to
exercise significant influence:
a) Digjam Limited; b) Market Cafe Foods Limited
B. Transactions with Related Parties: (Previous year figures in
italics)
i) No transactions with related parties referred to in A(i) above;
ii) With related parties referred to in A(ii) above:
- Dividend paid: Rs.Nil (Rs.52,02,000);
- Remuneration (including Sitting fees): Rs. 70,25,563 (Rs.55,55,996);
- Expenses incurred and reimbursement received: Rs.1,14,375
(Rs.4,27,703);
iii) With related parties referred to in A(iii) above:
- Dividend paid: Rs.Nil (Rs.80,001);
- Remuneration (including leave encashment): Rs.1,08,74,479
(Rs.63,43,376);
iv) With related party referred to in A(iv) above:
a) Digjam Limited: Aggregate of short term intercorporate deposits
given from time-to-time: Rs.5,25,00,000 (Rs.14,00,00,000); Deposits
repaid by party from time-to-time: Rs.9,00,00,000 (Rs.13,75,00,000);
Outstanding amount at year end: Rs.50,00,000 (Rs.4,25,00,000); Interest
received: Rs.58,06,489 (Rs.69,54,414); Expenses incurred and realised:
Rs.6,97,577 (Rs.7,82,240);
b) Market Cafe Foods Limited: Purchases: Rs.2,24,384 (Rs. Nil)
C. The above include following individual transactions in excess of 10%
of the respective totals:
(i) Dividend paid to Promoters, Intellipro Finance Private Limited:
Rs.Nil (Rs.21,00,000), and iPro Capital Limited: Rs.Nil (Rs.29,00,000);
(ii) Remuneration (including leave encashment) paid to Sri Sidharth
Birla & Sri C. Bhaskar: Rs.68,75,563 (Rs.54,75,996); & Rs.1,08,74,479
(Rs.63,43,376) respectively;
D. No Balances were outstanding at the end of the current or previous
year from/to any of the Related parties, other than Rs.56,31,382
(Rs.4,25,00,000) due from party referred to in A(iv) above;
10. Segment Accounting in terms of AS 17 issued by the Institute of
Chartered Accountants of India
The Company operates in a single business segment i.e. Polymers
Business and mainly in a single geographic segment i.e. India in the
context of Accounting Standard 17, on Segment Reporting issued by the
Institute of Chartered Accountants of India, hence there are no
reportable segments.
11. Previous year''s figures have been regrouped/reclassified as
necessary.
Mar 31, 2014
1. Company Overview:
Xpro India Limited ("the Company") is a public company incorporated as
"Biax Films Limited" on November 26, 1997 under the Companies Act,
1956; the present name was adopted w.e.f. September 22, 1998. Equity
shares of the Company are listed on Calcutta Stock Exchange and
National Stock Exchange and are admitted for trading on Bombay Stock
Exchange. Organized into operating divisions for operational
convenience, the Company is engaged mainly in the business of Polymers
Processing at multiple locations and is the leading manufacturer in
India of Coextruded Plastic Sheets, Thermoformed Liners and Speciality
Films (including Dielectric Films and special purpose BOPP Films).
2.1 Employees'' Stock Option Scheme(s)
The Company has two stock option schemes.
a) Employees'' Stock Option Scheme - 2008 ("ESOP 2008")
ESOP 2008 was approved by the Shareholders of the Company in their
meeting held on July 29, 2008 and provides for 437500 stock options
representing one equity share each. The grant date of the scheme is
April 29, 2009. All options were granted at Rs.11 per share (market
price at the time of grant was Rs.17.50). The difference between grant
price and fair market value of Rs.6.50 per option has been recognised
as employee compensation expenses in the financial statements. A
compensation committee comprising independent members of the Board of
Directors administers the Scheme.
b) Employees'' Stock Option Scheme - 2009 ("ESOP 2009")
ESOP 2009, approved by the Shareholders of the Company in their meeting
held on July 23, 2009, provides for 457500 stock options representing
one equity share each. The grant date of the scheme is April 1, 2010.
All options were granted at Rs.30.85 per share (market price at the
time of grant). A compensation committee comprising independent members
of the Board of Directors administers the Scheme.
Under both schemes, 30% of the options granted vest with the eligible
employees on the expiry of one year, another 30% on the expiry of two
years and the balance 40% on the expiry of three years from the date of
grant respectively.
3. Contingent Liabilities and Commitments (to the extent not provided
for) Contingent Liabilities
Claims against the Company, not
acknowledged as debt 2,50,208 2,50,208
Sales Tax, Excise & Customs matters
under appeal 4,73,41,757 4,36,58,032
Bills discounted 3,49,33,516 2,58,99,343
8,25,25,481 6,98,07,583
(In the opinion of the Company, the
possibility relating to net outflow
on the above accounts are remote)
Commitments
Estimated amount of contracts
remaining to be executed on Capital 4,46,61,854 11,60,74,942
Account (Net of Advances)
Unpaid portion of subscribed Equity
Capital in subsidiary 47,50,000 47,50,000
4,94,11,854 12,08,24,942
Total 13,19,37,335 19,06,32,525
4. Foreign Exchange Exposure
The Company periodically avails Foreign Exchange Contracts to hedge its
exposures in foreign currency related to firm commitments and highly
probable forecasted transactions.
Forward contract outstanding at year-end: Nil (Previous year: Nil)
Foreign exchange currency exposures that have not been hedged by a
derivative instrument or otherwise at year-end:
Purchases: US$983,525 & ÂNil; Sales: US$14,447 & Â62,691; Loans
(including interest accrued but not due):Â9,379,359;
Others:Â9,006 (Previous year: US$696,910 & Â147,338; US$8,099 & Â
62,459; Â8,845,449; Nil respectively)
5. Related Party Disclosures
A. List of Related Parties
i) Parties where control exists:
- Wholly owned subsidiaries:
a) Xpro Global Limited;
b) Xpro Global Pte. Ltd., Singapore;
ii) Promoters:
- IntelliPro Finance Private Limited;
- iPro Capital Limited;
- Sri Sidharth Birla, Chairman;
- Smt. Madhushree Birla, Director;
iii) Key Management Personnel & their relatives:
- Sri C. Bhaskar, Managing Director & Chief Executive Officer
- Smt. Rajalakshmi Bhaskar (wife)
iv) Enterprises over which Key Managerial Personnel are able to
exercise significant influence:
- Digjam Limited
B. Transactions with Related Parties: (Previous year figures in
italics)
i) No transactions with related party referred to in A(i) above;
ii) With related party referred to in A(ii) above:
- Dividend paid: Rs.52,02,000 (Rs.1,25,17,500);
- Remuneration: Rs. 54,75,996 (Rs.54,76,000);
- Expenses incurred and reimbursement received: Rs.4,27,703
(Rs.2,66,483);
iii) With related party referred to in a(iii) above:
- Dividend paid: Rs.80,001 (Rs.2,00,003);
- Remuneration: Rs.63,43,376 (Rs.59,73,978);
iv) With related party referred to in A(iv) above:
- Aggregate of short term intercorporate deposits given from
time-to-time: Rs.14,00,00,000 (Rs.10,50,00,000); Deposits repaid by
party from time-to-time: Rs.13,75,00,000 (Rs.11,50,00,000); Maximum
amount outstanding during the year: Rs.5,12,32,535 (Rs.5,84,42,988);
Outstanding amount at year end: Rs.4,25,00,000 (Rs.4,00,00,000);
Interest received: Rs.69,54,414 (Rs.75,85,927); Expenses incurred and
realised: Rs.7,82,240 (Rs.38,944); Outstanding dues realised: Nil (Rs.
22,10,455);
C. The above include following individual transactions in excess of 10%
of the respective totals:
(i) Dividend paid to Promoters, Intellipro Finance Private Limited:
Rs.21,00,000 (Rs.50,00,000), and iPro Capital Limited: Rs.29,00,000
(Rs.72,12,500);
(ii) Remuneration paid to Shri Sidharth Birla and Shri C. Bhaskar:
Rs.54,75,996 (Rs.54,76,000) and Rs.63,43,376 (Rs.59,73,978)
respectively;
D. No Balances were outstanding at the end of the current or previous
year from/to any of the Related parties, other than Rs.4,25,00,000
(Rs.4,00,00,000) due from party referred to in A(iv) above;
6. Segment Accounting in terms of AS 17 issued by the Institute of
Chartered Accountants of India
The Company operates in a single business segment i.e. Polymers
Business and mainly in a single geographic segment in the context of
Accounting Standard 17, on Segment Reporting issued by the Institute of
Chartered Accountants of India.
7. Previous year''s figures have been regrouped/reclassified as
necessary.
Mar 31, 2013
1. Company Overview:
Xpro India Limited ("the CompanyÂ) is a public company incorporated as
"Biax Films Limited on November 26, 1997 under the Companies Act,
1956; the present name was adopted w.e.f. September 22, 1998. Equity
shares of the Company are listed on Calcutta Stock Exchange and
National Stock Exchange and are admitted for trading on Bombay Stock
Exchange. Organized into operating divisions for operational
convenience, the Company is engaged mainly in the business of Polymers
Processing at multiple locations and is the leading manufacturer in
India of Coextruded Plastic Sheets, Thermoformed Liners and Speciality
Films (including Dielectric Films and special purpose BOPP Films).
2.1 Share Capital Suspense comprises of 12 equity shares pending to be
allotted as fully paid up to some non-resident equity shareholders
without payment being received in cash in terms of Regulation 7 of
Notification No. FEMA 20/2000 RB of May 3, 2000 and 1 equity share of
Rs.10 pending to be allotted as fully paid to a non-resident share
holder by way of bonus share in terms of RBI regulations.
2.2 The Company has issued only one class of shares referred to as
equity shares having a par value of Rs.10. All equity shares carry one
vote per share without restrictions and are entitled to dividend, as
and when declared. All shares rank equally with regard to the Company''s
residual assets.
2.3 The amount of per share dividend recognised as distributions to
equity shareholders for the year ended March 31, 2013 is Re.1.00
(previous year: Rs.2.50), subject to approval by shareholders in the
ensuing annual general meeting.
2.4 Shareholder(s) holding more than 5% shares in the Company as on
March 31, 2013 are:
i) IntelliPro Finance Private Limited : 20,16,000 shares; 17.29%
(previous year: 20,00,000 shares; 17.59%) and ii) iPro Capital Limited:
28,30,000 shares; 24.27% (previous year: 28,05,000; 24.67%).
2.5 Employees'' Stock Option Scheme(s)
The Company has two stock option schemes.
a) Employees'' Stock Option Scheme - 2008 ("ESOP 2008Â)
ESOP 2008 was approved by the Shareholders of the Company in their
meeting held on July 29, 2008 and provides for 437500 stock options
representing one equity share each. The grant date of the scheme is
April 29, 2009. All options were granted at Rs.11 per share (market
price at the time of grant was Rs.17.50). The difference between grant
price and fair market value of Rs.6.50 per option has been recognised
as employee compensation expenses in the financial statements. A
compensation committee comprising independent members of the Board of
Directors administers the Scheme.
b) Employees'' Stock Option Scheme - 2009 ("ESOP 2009Â)
ESOP 2009, approved by the Shareholders of the Company in their meeting
held on July 23, 2009, provides for 457500 stock options representing
one equity share each. The grant date of the scheme is April 1, 2010.
All options were granted at Rs.30.85 per share (market price at the
time of grant). A compensation committee comprising independent members
of the Board of Directors administers the Scheme.
Under both schemes, 30% of the options granted vest with the eligible
employees on the expiry of one year, another 30% on the expiry of two
years and the balance 40% on the expiry of three years from the date of
grant respectively.
a. Term Loan from State Bank of India, outstanding Rs.1,35,65,000
(previous year: Rs.3,01,65,000), carrying interest linked to the bank''s
Base Rate, is repayable in 20 quarterly installments of Rs.44,00,000
each, along with interest, commencing from March 2009 and is secured by
pari-passu hypothecation/mortgage of all movable and immovable assets,
present and future, of the Company situated at Ranjangaon & second
charge on all the current assets of the Company ranking pari-passu with
other term lenders;
b. Term Loan from State Bank of India, outstanding Rs.9,60,00,000
(previous year: Rs.4,58,25,000), carrying interest linked to the bank''s
Base Rate, repayable in (i) 2 quarterly installments of Rs.30.00 lacs
each paid in December 2012 and March 2013; (ii) 20 quarterly
installments of Rs.45.00 lacs each starting from June 2013; & (iii) 2
quarterly installments of Rs.20.00 lacs each payable in June 2018 and
September 2018 and is secured by pari-passu hypothecation/mortgage of
all the movable and immovable assets, present and future, of the
Company situated at Ranjangaon & second charge on all the current
assets of the Company ranking pari-passu with other term lenders;
c. Term Loan from State Bank of Hyderabad, outstanding Rs.6,56,25,000
(previous year: Rs.10,31,25,000), carrying interest linked to the
bank''s Base Rate, is repayable in 16 quarterly installments of
Rs.93,75,000 each, along with interest, commencing from March 2011 and
is secured by pari-passu hypothecation/mortgage of all the movable and
immovable assets, present and future, of the Company''s unit situated at
Ranjangaon, first charge on specified sheet line installed at Greater
Noida & second charge on all the current assets of the Company ranking
pari-passu with other term lenders;
d. Term Loan(s) from Allahabad Bank, outstanding Rs.Nil (previous year:
Rs.13,65,00,000), carrying interest linked to the bank''s Base Rate, has
been repaid and was secured by first hypothecation/ mortgage of all the
movable and immovable assets, present and future, of the Coex Division
of the Company situated at Faridabad & second charge on all the current
assets of the Company ranking pari-passu with other term lenders;
e. Term Loan from Allahabad Bank, outstanding Rs.5,87,00,000 (previous
year: Rs.8,23,00,000), carrying interest linked to the bank''s Base
Rate, repayable in 16 quarterly installments of Rs.59,00,000 each and
last installment of Rs.56,00,000, along with interest, commencing from
August 2011, is secured by first hypothecation/ mortgage of all the
movable and immovable assets, present and future, of the Company
situated at Pithampur & second charge on all the current assets of the
Company ranking pari-passu with other term lenders.
f. Term Loan from Punjab National Bank, outstanding Rs.7,00,00,000
(previous year: Rs.Nil) (balance to be drawn: Rs.,6,00,00,000),
carrying interest linked to the bank''s Base Rate, repayable in 16
quarterly installments of Rs.81,25,000 each, along with interest,
commencing from April 2014, and is secured by pari-passu
hypothecation/mortgage of all movable and immovable assets, present and
future, of the Company situated at Ranjangaon & second charge on all
the current assets of the Company ranking pari-passu with other term
lenders.
g. ECB from KBC Bank Deutschland AG, in the nature of term loan,
outstanding Â8,817,021.40; equivalent to Rs.62,30,10,732 (previous
year: Â108,388.13 equivalent to Rs.75,25,708), carrying interest linked
to Euribor, (balance to be drawn Â556,865.60, through direct payments
to machinery supplier(s) in Germany and Euler Hermes
Kreditversicherungs AG) repayable in 16 semi-annual installments of
Â585,867.94 each, along with interest, commencing from March 2014, is
secured by hypothecation of specified Dielectric Film Line and slitter
to be installed at Barjora and is insured under Hermes export credit
guarantee.
h. Term Loans under SBI TL Consortium comprising (i) State Bank of
India: outstanding Rs.17,00,00,000 (previous year: Rs.Nil) (balance to
be drawn: Rs.10,60,00,000) repayable in 20 quarterly installments of
Rs.1,38,00,000, along with interest, commencing from June, 2014; (ii)
State Bank of Hyderabad: outstanding Rs.13,50,00,000 (previous year:
Rs.Nil) (balance to be drawn: Rs.7,20,00,000) repayable in 20 quarterly
installments of Rs.1,03,50,000 each, along with interest, commencing
from July, 2014; and (iii) State Bank of Patiala: outstanding
Rs.13,50,00,000 (previous year: Rs.Nil) (balance to be drawn:
Rs.6,50,00,000 repayable in 20 quarterly installments of Rs.1,00,00,000
each, along with interest, commencing from June, 2014; carrying
interest linked to the respective Bank''s Base Rates are secured by
pari- passu hypothecation/mortgage of all movable and immovable assets,
present and future, of the Company situated at Barjora (excluding
specified Dielectric Film Line and slitter which are exclusively
charged to KBC Bank & second charge on all the current assets of the
Company ranking pari-passu with other term lenders excluding KBC Bank;
3. Contingent Liabilities and Commitments (to the extent not provided
for) Contingent Liabilities
Claims against the Company, not
acknowledged as debt 2,50,208 2,50,208
Sales Tax, Excise & Customs
matters under appeal 4,36,58,032 5,22,41,532
4,39,08,240 5,24,91,740
(In the opinion of the Company,
the possibility relating to net
outflow on the above accounts
are remote)
Commitments
Estimated amount of contracts
remaining to be executed
on Capital 11,60,74,942 62,76,86,761
Account (Net of Advances)
Unpaid portion of subscribed
Equity Capital in subsidiary 47,50,000 47,50,000
12,08,24,942 63,24,36,761
Total 16,47,33,182 68,49,28,501
4. Foreign Exchange Exposure
The Company periodically avails Foreign Exchange Contracts to hedge its
exposures in foreign currency related to firm commitments and highly
probable forecasted transactions. Forward contract outstanding at
year-end: Nil (Previous year: Nil) Foreign exchange currency exposures
that have not been hedged by a derivative instrument or otherwise at
year-end: Purchases: US$696,910 & Â147338; Sales: US$8,099 & Â62,459;
Loans (including interest accrued but not due):
Â8,845,449 (Previous year: US$736,620 & Â Nil; US$2,869 & Â 97,960;
Â108,388 respectively)
5. Related Party Disclosures
A. List of Related Parties
i) Parties where control exists:
- Wholly owned subsidiaries:
a) Xpro Global Limited;
b) Xpro Global Pte. Ltd., Singapore; ii) Promoters:
- IntelliPro Finance Private Limited;
- iPro Capital Limited;
- Sri Sidharth Birla, Chairman;
- Smt. Madhushree Birla, Director;
iii) Key Management Personnel & their relatives:
- Sri C. Bhaskar, Managing Director & Chief Executive Officer
- Smt. Rajalakshmi Bhaskar (wife)
iv) Companies where common management may be deemed to exist:
- Digjam Limited
B. Transactions with Related Parties: (Previous year figures in
italics) i) No transactions with related party referred to in A(i)
above; ii) With related party referred to in A(ii) above:
- Dividend paid: Rs.1,25,17,500 (Rs.98,03,750);
- Remuneration: Rs. 54,76,000 (Rs.54,76,000);
- Expenses incurred and reimbursement received: Rs.2,66,483 (Rs.Nil)
iii) With related party referred to in a(iii) above:
- Dividend paid: Rs.2,00,003 (Rs.90,002);
- Remuneration: Rs.59,73,978 (Rs.59,93,150); iv) With related party
referred to in A(iv) above:
- Aggregate of short term intercorporate deposits given from
time-to-time: Rs.10,50,00,000 (Rs.10,00,00,000); Deposits repaid by
party from time-to-time: Rs.11,50,00,000 (Rs.6,00,00,000); Maximum
amount outstanding during the year: Rs.5,84,42,988 (Rs.5,22,10,455);
Outstanding amount at year end: Rs.4,00,00,000 (Rs.5,22,10,455);
Interest received: Rs.75,85,927 (Rs.25,52,338); Expenses incurred and
realised: Rs.38,944 (Rs.3,36,945); Outstanding dues realised:
Rs.22,10,455 (Rs. Nil);
C. The above include following individual transactions in excess of 10%
of the respective totals:
(i) Dividend paid to Promoters, Intellipro Finance Private Limited:
Rs.50,00,000 (Rs.40,00,000), and iPro Capital Limited: Rs.72,12,500
(Rs.54,00,000);
(ii) Remuneration paid to Shri Sidharth Birla and Shri C. Bhaskar:
Rs.54,76,000 (Rs.54,76,000) and Rs.59,73,978 (Rs.59,93,150)
respectively;
D. No Balances were outstanding at the end of the current or previous
year from/to any of the Related parties, other than Rs.4,00,00,000
(Rs.5,22,10,455) due from party referred to in A(iv) above;
6. Discontinuing Operations
In March 2011 the Board had approved, consistent with long-term
strategy, an agreement for sale of the Company''s Thermosets Division at
Ranjangaon (engaged in manufacture of Thermoset Moulding Powders &
Synthetic Resins) on an all-cash, going concern and slump sale basis.
Following all necessary approvals, the transaction was completed in the
previous year (on August 18, 2011) at a consideration of
Rs.74,50,00,000. The pre-tax gain recognised in the previous year on
disposal of business and payment of liabilities of the discontinuing
operations amounted to Rs.34,57,46,443. Necessary disclosures in this
respect have been made in the financial statements for the previous
year.
7. Segment Accounting in terms of AS 17 issued by the Institute of
Chartered Accountants of India
The Company operates in a single business segment i.e. Polymers
Business and mainly in a single geographic segment in the context of
Accounting Standard 17, on Segment Reporting issued by the Institute of
Chartered Accountants of India.
Mar 31, 2012
Under both schemes, 30% of the options granted vest with the eligible
employees on the expiry of one year, another 30% on the expiry of two
years and the balance 40% on the expiry of three years from the date of
grant respectively.
Biax Speciality Films Private Limited ("BSFPL"), wholly owned
subsidiary of the Company, engaged in the manufacture of Biaxially
Oriented Polypropylene Films (including for speciality applications)
was amalgamated with the Company with effect from April 1, 2010, and
accordingly, opening balances in the accounts of the Company for the
year 2010-11 include the opening balances of the erstwhile BSFPL.
a. Term Loan from State Bank of India, outstanding Rs.301.65 lacs
(previous year: Rs.479.00 lacs), carrying interest linked to the bank's
PLR, is repayable in 20 quarterly installments of Rs.44 lacs each,
along with interest, commencing from March 2009 and is secured by
pari-passu hypothecation/mortgage of all movable and immovable assets,
present and future, of the Company situated at Ranjangaon & second
charge on all the current assets of the Company ranking pari- passu
with other term lenders;
b. Term Loan from State Bank of India, outstanding Rs.458.25 lacs
(previous year: Rs.64.13 lacs), carrying interest linked to the bank's
Base Rate, (balance to be drawn Rs.537.00 lacs) is repayable in (i) 2
quarterly installments of Rs.30.00 lacs each payable in December 2012
and March 2013; (ii) 20 quarterly installments of Rs.45.00 lacs each
starting from June 2013; & (iii) 2 quarterly installments of Rs.20.00
lacs each payable in June 2018 and September 2018 and is secured by
pari-passu hypothecation/mortgage of all the movable and immovable
assets, present and future, of the Company situated at Ranjangaon &
second charge on all the current assets of the Company ranking
pari-passu with other term lenders;
c. Term Loan from State Bank of Patiala, outstanding Nil (previous
year: Rs.450.00 lacs), was secured by pari-passu hypothecation/mortgage
of all the movable and immovable assets, present and future, of the
Company situated at Ranjangaon & second charge on all the current
assets of the Company ranking pari-passu with other term lenders;
d. Term Loan from State Bank of Hyderabad, outstanding Rs.1031.25 lacs
(previous year: Rs.1406.25 lacs), carrying interest linked to the
bank's Base Rate, is repayable in 16 quarterly installments of Rs.93.75
lacs each, along with interest, commencing from March 2011 and is
secured by pari-passu hypothecation/mortgage of all the movable and
immovable assets, present and future, of the Company's unit situated at
Ranjangaon, first charge on specified sheet line installed at Greater
Noida & second charge on all the current assets of the Company ranking
pari-passu with other term lenders;
e. Term Loan(s) from Allahabad Bank, outstanding Rs.1365.00 lacs
(previous year: Rs.1853.13 lacs), carrying interest linked to the
bank's Base Rate, is repayable in (i) bullet payment of Rs.1000 lacs on
March 13, 2013; and (ii) 7 quarterly installments of Rs.122.00 lacs
each and last installment of Rs.121.00 lacs each, along with interest,
commencing from March 2011, and is secured by first hypothecation/
mortgage of all the movable and immovable assets, present and future,
of the Coex Division of the Company situated at Faridabad & second
charge on all the current assets of the Company ranking pari-passu with
other term lenders;
f. Term Loan from Allahabad Bank, outstanding Rs.823.00 lacs (previous
year: Rs.1000.00 lacs), carrying interest linked to the bank's Base
Rate, repayable in 16 quarterly installments of Rs.59.00 lacs each and
last installment of Rs.56.00 lacs each, along with interest, commencing
from August 2011, is secured by first hypothecation/ mortgage of all
the movable and immovable assets, present and future, of the Company
situated at Pithampur & second charge on all the current assets of the
Company ranking pari-passu with other term lenders.
g. ECB from KBC Bank Deutschland AG, in the nature of term loan,
outstanding Ã0.11 million (previous year: Nil), carrying interest
linked to Euribor, (balance to be drawn Ã9.26 million, through direct
payments to machinery supplier(s) in Germany and Euler Hermes
Kreditversicherungs AG) repayable in 16 semi-annual installments of
Ã0.59 million each, along with interest, commencing from March 2014,
is secured by hypothecation of specified Dielectric Film Line and
slitter to be installed at Barjora and is insured under Hermes export
credit guarantee.
a. Working Capital loans are secured by first charge, ranking
pari-passu, in favour of members of the Consortium of Banks, on all
current assets of the company, present and future, and second charge,
ranking pari-passu, on the entire fixed assets of the Company, present
and future, wherever situated.
b. Overdraft against term deposits outstanding Rs.1532.91 lacs
(previous year: Rs.143.46 lacs) is secured by way of pledge of Term
Deposit Receipts with the bank(s).
There are no dues to Micro and Small Enterprises (determined to the
extent such parties have been identified on the basis of information
available with the Company, as at March 31, 2012) which require
disclosure under the Micro, Small and Medium Enterprises Development
Act, 2006.
i) Disposals during the year includes tangible assets (Gross value:
Rs.3703.87 lacs; Net value: Rs.2598.17 lacs) transferred and sold as
part of slump sale of discontinued operations comprising Leasehold Land
(Gross value: Rs.217.01 lacs; Net value: Rs.199.39 lacs), Buildings
(Gross value: Rs.1547.52 lacs; Net value: Rs.1319.10 lacs), Plant &
Machinery (Gross value: Rs.1852.49 lacs; Net value: Rs.1017.93 lacs),
Furniture and Fixtures (Gross value: Rs.40.08 lacs; Net value: Rs.30.54
lacs), Vehicles (Gross value: Rs.21.14 lacs; Net value: Rs.14.73 lacs),
Computers (Gross value: Rs.10.96 lacs; Net value: Rs.5.07 lacs), and
Equipment & Fittings (Gross value: Rs.14.68 lacs; Net value: Rs.11.40
lacs).
ii) Loss on disposal of fixed assets (excluding disposal of
discontinuing operations - Note 32) during the year is Rs.6.54 lacs
(previous year: profit of Rs.42.81 lacs).
iii) Some assets of which the Company is the beneficial owner are
pending for transfer in the name of the Company and for which necessary
steps are being taken.
iv) As stipulated in AS-28 on Impairment of Assets, the Company
assessed potential generation of economic benefits from its business
units and is of the view that assets employed in continuing businesses
are capable of generating adequate returns over their useful lives in
the usual course of business, there is no indication to the contrary
and accordingly the management is of the view that no impairment
provision is called for in these accounts.
a. Term Deposits pledged with bank(s) for overdraft and other
facilities - Rs.2481.34 lacs (Previous year: Rs.2275.18 lacs);
b. Unpaid Dividend shall be credited to Investor Education and
Protection Fund on completion of statutory period;
Erstwhile Biax Speciality Films Private Limited (amalgamated with the
Company w.e.f. April 1, 2010) had during earlier years imported certain
capital goods under EPCG Scheme at concessional custom duty by
executing legal undertaking in favour of the Government of India,
thereby saving customs duty of Rs.50.37 lacs against which the said
company had an obligation under EPCG Scheme to export goods amounting
to Rs.402.98 lacs within a period of 8 years. The Company has furnished
bank guarantee of Rs.13.88 lacs to the customs department. Following
amalgamation, the Company assumed a remnant export obligation of
Rs.356.93 lacs as of April 1, 2010. During the year, exports amounting
to Rs.242.36 lacs (aggregating to Rs.398.79 lacs till March 31, 2012)
have been executed against the said obligation. Based on current export
trends and future plans, the management is confident of meeting this
obligation by executing required exports and hence does not consider
necessary to provide for any liability on this account.
Effective 2007-08 the Company adopted Accounting Standard (AS) 15
(Revised 2005) on Employee Benefits, as issued by Institute of
Chartered Accountants of India. The Company has defined benefit plans
for gratuity and compensated absence to eligible employees,
contributions for which are made to Life Insurance Corporation of
India, who invest the funds as per IRDA guidelines. The details of
these defined benefit plans recognized in the financial statements are
as under:
g. The Contribution expected to be made by the Company during the next
financial year has not been ascertained.
b. The Company is lessee under various operating leases, none of which
are non-cancellable.
1. Foreign Exchange Exposure
The Company periodically avails Foreign Exchange Contracts to hedge its
exposures in foreign currency related to firm commitments and highly
probable forecasted transactions.
Forward contract outstanding at year-end: Nil (Previous year: Nil)
Foreign exchange currency exposures that have not been hedged by a
derivative instrument or otherwise at year-end: Purchases: US$ 736,620
& Ã Nil; Sales: US$ 2869 & Ã 97,960; Loans (including interest
accrued but not due): Ã 108,388 (Previous year: US$ 540,508 &Ã
569,234; US$ 5,753 & Ã Nil; Ã Nil respectively)
C. The above include following individual transactions in excess of
10% of the respective totals:
(i) Dividend paid to Promoters, Intellipro Finance Private Limited:
Rs.40.00 lacs (Rs.35.00 lacs), and iPro Capital Limited: Rs.54.00 lacs
(Rs.45.85 lacs);
(ii) Remuneration paid to Shri Sidharth Birla and Shri C. Bhaskar:
Rs.54.76 lacs (Rs.61.43 lacs) and Rs.59.93 lacs (Rs.50.16 lacs)
respectively;
D. No Balances were outstanding at the end of the current or previous
year from/to any of the Related parties;
2. Discontinuing Operations
In March 2011 the Board had approved, consistent with long-term
strategy, an agreement for sale of the Company's Thermosets Division at
Ranjangaon (engaged in manufacture of Thermoset Moulding Powders &
Synthetic Resins) on an all-cash, going concern and slump sale basis.
Following all necessary approvals the transaction was completed on
August 18, 2011 at a consideration of Rs.74,50.00 lacs. The pre-tax
gain recognised on the disposal of business and payment of liabilities
of the discontinuing operations amounted to Rs.34,57.46 lacs. As at the
balance sheet date there were no assets to be disposed or liabilities
to be settled relating to the discontinuing operations.
Net cash flows attributable to operating, investing and financing
activities of discontinuing operations during the year aggregated to
(Rs.26,19.11 lacs), Rs.51,85.31 lacs and (Rs.83.70 lacs) respectively.
3. The Company prepares and presents its financial statements as per
Schedule VI to the Companies Act, 1956, as applicable to it from time
to time. In view of the revision to the Schedule VI as per a
notification issued during the year by the Central Government, the
financial statements for the financial year ended 31s March, 2012 have
been prepared as per the requirements of the Revised Schedule VI to the
Companies Act, 1956. The previous year figures have been accordingly
regrouped/reclassified and presented to conform to the current year's
classification.
Mar 31, 2011
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956. The company
follows mercantile system of accounting and recognizes significant
items of income and expenditure on accrual basis. Wherever it is not
possible to determine the quantum of accrual with reasonable certainty,
e.g. Insurance & other claims, refund of Customs Duty and export
incentives these continue to be accounted for on settlement basis.
b. FIXED ASSETS :
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises of freight, duties, taxes, interest and other incidental
expenses related to acquisition and installation.
c. DEPRECIATION / AMORTISATION :
Depreciation is charged under Straight Line Method in accordance with
the rates and manner specified in Schedule XIV to the Companies Act,
1956. Certain Plant & Machinery considered as continuous process plant
based on technical evaluation. Depreciation on addition/disposal is
provided pro-rata with reference to the days of addition/disposal.
Leasehold lands and development expenses thereof are amortized over the
period of lease. Software are amortized over a period of six years.
Technical know-how fees are amortized over the life of the plant from
date of commencement of commercial production using such know-how.
d. IMPAIRMENT :
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
e. INVESTMENTS :
Long term Investments are stated at cost less provision for diminution
in value other than temporary, if any.
f. INVENTORIES :
Inventories include stock-in-transit/bonded warehouses and with others
for manufacturing / processing / replacement. Inventories are valued
"at lower of cost and net realizable value". Cost is determined on the
weighted average method. Finished goods and process stock include cost
of conversion and other costs incurred in bringing the inventories to
their present location and condition.
g. REVENUE RECOGNITION:
i. Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
ii. Sale of goods: Revenue is recognized when the significant risks
and rewards of ownership of the goods have passed to the customer (on
dispatch to the customer). Excise Duty deducted from turnover (gross)
is the amount that is included in the amount of turnover (gross) and
not the entire amount of liability that arose during the year. Sales
are reported net of sales tax.
iii. Income from Services: Revenue (including sales commission) is
recognized on accrual basis.
iv. Interest: Revenue is recognized on a time proportion basis taking
into account the amount outstanding and rate applicable.
h. BORROWING COST :
Borrowing cost relating to
(i) funds borrowed for acquisition of qualifying fixed assets are
capitalized till the date of commissioning and thereafter charged to
Profit and Loss Account and
(ii) funds borrowed for other purposes are charged to Profit and Loss
Account.
i. RESEARCH AND DEVELOPMENT :
Revenue expenditure charged to Profit and Loss Account under respective
heads of account and capital expenditure added to the cost of Fixed
Assets in the year in which it is incurred.
j. GOVERNMENT GRANTS :
Grants relating to Fixed Assets are shown as deduction from the gross
value of the Fixed Assets and those of the nature of Project Capital
Subsidy are credited to Capital Subsidy Reserves & other Government
grants including export incentives are credited to Profit & Loss
Account or deducted from the related expenses.
k. EMPLOYEE BENEFITS :
Contributions to Provident Fund and Superannuation Fund, which are
defined contribution schemes, are made to a government
administered/approved Provident Fund(s) and an LIC administered fund
respectively, and are charged to the Profit and Loss account as
incurred. The Company has no further obligations beyond its monthly
contributions to these funds. Provision for gratuity and compensated
absence, under LIC administered fund(s), which are in the nature of
defined benefit plans, are provided based on valuations, as at the
balance sheet date, made by the administrators (LIC). Termination
benefits are recognized as expense as and when incurred.
l. TAXATION :
Tax liability of the company is estimated considering the provisions of
the Income Tax Act,1961. Deferred Tax is recognized subject to the
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
m. EMPLOYEES STOCK OPTION PLAN :
The accounting value of stock options representing the excess of the
market price on the date of grant over the exercise price of the shares
granted under "Employees' Stock Option Scheme" of the Company, is
amortized as "Deferred employees compensation" on a straight-line basis
over the vesting period in accordance with the SEBI (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.
n. Provisions, contingent liabilities and contingent assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities, if any, are not recognized but disclosed by way
of notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
Note: 1. Installed Capacities are as certified by the Management
2. None of the products are covered under current IDR licensing norms.
Hence, "Licensed Capacity" not reported.
3. Production includes outside job work for others.
4. Thermoplastic Films/Sheets/Liners production includes 1,048 MT
inter-unit transfer/internal consumption (previous year: 1,667 MT)
Note: Cash and Cash Equivalents represent Cash and Bank balance (refer
schedule 8) Cash and Cash Equivalents include Rs.49,57,989 (Previous
year: Rs.46,45,206) of unpaid dividend not available for use by the
Company
Fixed Deposits of Rs.22,75,17,631 (Previous year: Rs.15,62,04,781) are
pledged with bank(s) towards overdraft & other facilities
Previous year figures have been regrouped/rearranged wherever
considered necessary
Mar 31, 2010
1. Sales are reported net of returns/adjustments and include:
Excise duty charged to customers.
- Export Benefits Rs.1,64,135 (Previous year: Rs. 14,89,258).
Processing charges Rs.2,48,44,086 is net of Haryana Local Area
Development Tax Rs.Nii (Previous year: Rs.10,17,53,675 and Rs.5,41,404
respectively).
2. Profit/Loss on sale of Raw Materials and Stores are adjusted in
respective consumption accounts.
3. a. Term Loan from State Bank of India, outstanding Rs.6,61,19,558
(previous year Rs.8,31,00,000) is secured by pari-passu
hypothecation/mortgage of all the movable and immovable assets, present
and future, of the Company situated at Ranjangaon and second charge on
all the current assets of the Company ranking pari-passu with other
term lenders;
b. Term Loan from State Bank of Patiala, outstanding Rs.8,97,93,685
(previous year Rs.13,41,69,154), is secured by pari-passu
hypothecation/mortgage of all the movable and immovable assets, present
and future, of the Company situated at Ranjangaon and second charge on
all the current assets of the Company ranking pari-passu with other
term lenders;
c. Term Loan from State Bank of Hyderabad, outstanding Rs.7,57,04,957
(previous year Nil), is secured by pari-passu hypothecaiion/mortgage of
all the movable and immovable assets, present and future, of the
Companys unit situated at Ranjangaon, first charge on specified sheet
line to be installed at Greater Noida, and second charge on all the
current assets cf ihe Company ranking pari-passu with other term
lenders;
d. Term Loan(s) from Allahabad Bank, outstanding Rs.17,57,78,114
(previous year Rs.7,40,00,000), is secured by first hypothecation/
mortgage of all the movable and immovable assets, present and future,
of the Coex Division of the Company situated at Faridabad and second
charge on all the current assets of the Company ranking pari-passu with
other term lenders.
e. Working Capital Loans are secured/to be secured by first charge,
ranking pari-passu, in favour of members of the consortium of bankers,
on all current assets ot the company both present and future and second
charge, ranking pari-passu, on the entire fixed assets of the company
wherever situated both present and future;
f. Over-draft against term deposits outstanding Rs.3,23,24,026
(previous year: Rs.11,57,38,144) is secured by way of pledge of Term
Deposit Receipts with the Bank;
g. Term loan from others outstanding Rs.27,58,573 (previous
year:Rs.13,21,471) is secured by hypothecation of vehicles purchased
thereunder.
4. The Company has not received intimation from vendors regarding
their status under the .Micro, Small and Medium Enterprises Development
Act, 2006, and hence disclosures relating to their outstanding amount
and interest have not been given.
5. Interest paid to others is net of interest received Rs.3,78,08,938
(of which Rs.3,29,18,730 from banks and Rs.43,90,208 from others)
(previous year: Rs. 3,59,54,778). TDS: Rs.38,14,080 (previous year:
Rs.38,9/,896).
6. Exceptional items includes Rs.1,22,70,081 income on account of
salvage of structures at discontinued location and Rs.32,30,470 cost of
voluntary separation.
7. a. Advances recoverable in cash or in kind or for value to be
received include taxes (net of provisions) Rs.1,84,91,659 (previous
year: Rs. 1,45,15,85?);
b. Loans and advances include Rs.14,70,19,442 (Previous year: Rs.
4,54,24,395) due from Biax Speciality Films Private Limited
(wholly-owned subsidiary). Maximum amount due during the year
Rs.16.31,00,000 (previous year Rs. 4,54,24,395);
c. Loans and advances include Rs.72,10,169 (previous year:
Rs.46,56,219) in the nature of interest free loans provided to
employees as per the rules of the company. Maximum amount due at any
time during the year Rs.94,49,099 (previous year: Rs.67,11,358).
8. Capital work-in-progress includes machinery under installation,
buildings under construction, advances for purchase of machinery,
construction and erection.
9. Some assets of which the Company is the beneficial owner are
pending for transfer in the name of the Company and for which necessary
steps are being taken.
10. As stipulated in AS-28 on Impairment of Assets, the Company
assessed potential generation of economic benefits from its business
units and is of the view that assets employed in continuing businesses
are capable of generating adequate returns over their useful fives in
the usual course of business, there is no indication to the contrary
and accordingly the management is of the view that no impairment
provis[on is called for in these accounts.
11. Lease rentals are consistently charged to Profit & Loss Account
with reference to the term(s) of the lease(s).
12. Disclosures in respect of Employees Stock Option Scheme(s) -
2007,2008 and 2009 are provided in the Annexure to the Report of the
Directors. The Company has incurred, during the year, a cost of Rs.
17,448 (previous year: Nil) in issuing Employee Stock Options to an
employee of a wholly owned subsidiary.
13. Related Party Disclosures: a) List ot Related Parties:
i) Parties where control exists:
Wholly owned subsidiaries: Biax Speciality Films Private Limited & Xpro
Global Limited:
ii) Promoters:
Sri Sidharth Birla, Chairman; Smt. Madhushree Birla, Director,
Intellipro Finance Private Limited & iPro Capital Limited;
iii) Key Management Personnel & their relatives:
Sri C. Bhaskar, Managing Director & Chief Executive Officer & Smt.
Rajalakshmi Bhaskar (wife)
b) Transactions with Related Parties: (Previous yoar figures in
italics)
i) With related party referred to in a(i) above: Purchase of finished
goods: Rs.35,42,814 (Nil); Purchase input materials: Rs.74,30,076
(Nil); Transfer of Capital work-in-progress: Rs.2,79,44,079 (Nil); Sale
of used vehicle. Rs.3,67,880 (Nil); Sale of input materials:
Rs.11,46,763 (Nil); Reimbursements Received: Rs.3,27,591 (Nil);
Reimbursements made: Rs.1,69,386(W//); Loans given: Rs.15,46,50,000
(Rs.6,00,000); Loan repayments received: Rs.5,11,50,000 (Rs.6,00,000);
Interest Income: Rs,1,16,73.107 (Nil);
ii) With related party referred to in a(ii) above: Dividend paid:
Rs.43,21,850 (Rs. 64,18,373); Interest paid: Rs.6,97,069 (Nil); Loans
taken & repaid: Rs.1,00,00,000 (Nil); Investment: Nil (1);
Remuneration: Rs. 54,76,000 (Rs.60,96,000);
iii) With related party referred to in a(iii) above: Dividend paid:
Rs.1,381 (Rs.902); Remuneration- Rs. 43,02,303 (Rs.52,05,453);
c) The above include following individual transactions in excess of 10%
of the respective totals: (i) Dividend paid to Promoters, Intellipro
Finance Private Limited: Rs.20,00,000 (Rs.30,00,000), and iPro Capital
Limited: Rs.20,70,000 (Rs.30,40,o00) and (ii) Remuneration paid to Shri
Sidharth Birla and Shri C. Bhaskar: Rs.54,76,000/- (Rs.60,96,000) and
Rs.43,02,303/- (Rs.52,05.453) respectively;
d) Balance outstanding at the end of the year: (Previous year figures
in italics)
i) To related party referred to in a(i) above: Sales consideration
payable:Rs.4,23,921 (Nis);
ii) From related party referred to in a(i) above: Loans:
Rs.14,35,00,000 (Rs.4,00,00,000); Interest receivable (net of
TDS):Rs.35,00,574 (Rs.54,24,395).
14. Contingent Liabilities not provided for
March 31, 2010 March 31, 2009
Rs. Rs.
Claims against the Company, not
acknowledged as debts 8,26.469 3,86,757
Sales Tax, Excise & Customs
matters under appeal 3,95,60,733 3,32,33,970
Income tax matters under appeal 3,35,11,106 3.35.11.106
Bank guarantees outstanding 19,11,817 12,00,000
Outstanding guarantee to bank
for Subsidiary Company 15.00.00.000 -
(In the opinion of the Company,
the possibility relating to net
outflow on the above accounts
are remote)
Estimated amount of contracts
remaining to be executed on
Capital Account 1,84,11,207 2,10,69,940
(Net of Advances)
Bills discounted 1,61,70,600 73,66,856
Unpaid portion of subscribed
Equity Capital in subsidiary 47,50,000 47,50,000
15. Previous year figures have been regrouped/rearranged wherever
considered necessary.
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