SENSEX NIFTY India | Notes to Account > Dyes & Pigments > Notes to Account from Clariant Chemicals India - BSE: 506390, NSE: CLNINDIA

Clariant Chemicals India

BSE: 506390|NSE: CLNINDIA|ISIN: INE492A01029|SECTOR: Dyes & Pigments
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« Dec 13
Notes to Accounts Year End : Dec '14
for the year ended 31st December, 2014
 1 Company Information:
 Clariant Chemicals (India) Limited (the ''company'') is a public limited
 company domiciled in India and is listed on the Bombay Stock Exchange
 (BSE) and the National Stock Exchange (NSE). The company is engaged
 interalia, in manufacturing and selling of Specialty Chemicals. The
 Company has its own manufacturing sites in the State of Maharashtra,
 Tamil Nadu and Gujarat.
 2 The company has not allotted any equity shares for consideration
 other than cash, bonus shares, nor have any shares been bought back
 during the period of five years immediately preceding the Balance Sheet
 3 Rights, preferences and restrictions attached to shares
 The Company has one class of equity share having a par value of RS.
 10/- per share. Each shareholder is eligible for one vote per share
 held. The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing annual general meeting,
 except in case of interim dividend. In the event of liquidation, the
 equity shareholders are eligible to receive the remaining asset of the
 Company after distribution of all preferential amounts, in proportion
 to their shareholding.
                                              31-12-2014     31-12-2013
                                              RS.Lakhs       RS. Lakhs
 (to the extent not provided for)
 (a) Contingent liabilities:
 (i) in respect of income tax matters            665.97        1681.25
 (ii) in respect of sales tax / VAT matters    13687.01        5366.10
 (iii) in respect of excise / 
       service tax matters                      1024.86        1107.99
 (iv) in respect of bills of exchange 
      discounted with banks                      506.89         581.62
      (since realised RS. 506.89 Lakhs
      [ RS. 581.62 Lakhs])
 (v) Other matters in dispute                    209.82         186.77
 In respect of above items, future cash 
 outflows, if any are determinable only
 on receipt of judgements pending at various
 (b) Commitments:
 (i) Estimated amount of contracts remaining
     to be executed on capital account and        984.53       1924.74
     not provided for (net of capital advances)
 (ii) Others - amount of future minimum lease
      payments under non-cancellable             6884.56       3580.22
      operating leases (Refer note 39)
 The Company uses forward contracts to hedge against its foreign
 currency exposure in respect of purchases, as and when considered
 appropriate. The company does not enter into any forward contracts
 which are intended for trading or speculative purposes. There are no
 forward contracts outstanding as at the year end. The year end foreign
 currency exposures that have not been hedged
 (i) Gratuity is administered through duly constituted and approved
 independent trusts and also through Group gratuity scheme with Life
 Insurance Corporation of India.
 (ii) Future salary increases considered in actuarial valuation take in
 to account inflation, seniority, promotion and other relevant factors,
 such as supply and demand in the employment market.
 (iii) Basis used to determine expected rate of return on plan assets:
 The expected rate of return on plan assets is based on market
 expectation at the beginning of the year for returns over the
 entire life of the related
 (a) Enterprises where control exists:
 (i) Ultimate Holding Company
 * Clariant AG, Switzerland
 (ii) Principal Shareholders (subsidiaries of the ultimate holding
 Company) :
 * EBITO Chemiebeteiligungen AG
 * Clariant Participations AG
 * Clariant International AG
 (b) Other related parties in the Clariant group with whom the Company
 has transactions:
 Fellow subsidiary companies :
 Clariant (China) Ltd.         Clariant Masterbatches (Deutschland) GmbH
 Clariant (Japan) K.K.         Clariant Masterbatches (Italia) S.p.A.
 Clariant (Malaysia) Sdn Bhd   Clariant Masterbatches (Saudi Arabia)
 Clariant (Mexico) S.A.        Clariant Masterbatches (Shanghai) Ltd.
 de C.V.
 Clariant (Pakistan) Ltd.
 ( Related Party till
 30.09.2013 )                  Clariant Masterbatches (Thailand) Ltd.
 Clariant (Singapore) Pte.
  Ltd.                         Clariant Masterbatches Benelux SA
 Clariant (Thailand) Ltd.      Clariant Masterbatches Norden AB
 Clariant (Tianjin) Ltd.
 ( Related Party till
 30.09.2013 )                  Clariant Masterbatches (France)
 Clariant (Turkiye) Boya ve
 Kimyevi Maddeler Sanayi ve
 Ticaret A.S.                  Clariant Prodotti (Italia) S.p.A.
 Clariant Chemicals (China)
 Ltd.                          Clariant Produkte (Deutschland) GmbH
 Clariant Chemicals (Huizhou)
 Co., Ltd.                     Clariant Produkte (Schweiz) AG
 Clariant Chemicals (Taiwan)
  Co., Ltd.                    Clariant S.A.
 Clariant Chemicals Pakistan
 (Pvt) Ltd.( New Company wef
 30.09.2013)                   Italtinto S.r.l.
 Clariant Corporation          PT Clariant Indonesia
 Clariant Iberica Produccion
 S.A.                          Clariant India Private Limited
 Clariant Masterbatch Iberica
 (c) Key management personnel :
 Executive Directors
 P. Palm          (upto 26.04.2013)
 Dr. D. Parikh    (from 01.02.2013)
 B.L. Gaggar      (from 16.07.2013)
 (As required by Accounting Standard (AS) - 17 Segment Reporting) :
 (a) The Company is organised into two primary business segments as
 (i) Pigments and Colors :
 Includes pigments, pigment preparations, additives and masterbatches.
 (ii) Dyes and Specialty Chemicals :
 Includes dyestuff, synthetic resins, binder materials, functional
 effects and coating, auxiliaries and chemicals.
 (b) The secondary segments of the Company are geographical segments
 (i) India
 (ii) Outside India
 (c) Segments have been identified and reported taking into account the
 nature of products and services, the differing risks and returns, the
 organisation structure, and the internal financial reporting system.
 (d) (i) Segment revenue and results :
 Segment revenue and expenses are directly attributable to segments. It
 does not include interest income, interest expense and income tax.
 Revenue and expenses which relate to the company as a whole and are not
 allocable to segments on a reasonable basis have been included under
 Unallocated corporate expenses (Net).
 (ii) Segment assets and liabilities :
 Segment assets include all operating assets used by the business
 segments and consist principally of fixed assets, trade receivable and
 inventories. Segment liabilities primarily include trade payables and
 other current and non-current liabilities.
 Assets and liabilities that cannot be allocated among the segments are
 shown as a part of unallocable corporate assets and liabilities
 9 Disclosures as required under the Micro, Small and Medium
 Enterprises Development Act, 2006 (MSMED Act). This information has
 been determined to the extent such parties have been identified on the
 basis of intimations received from suppliers. This has been relied upon
 by the auditors.
 (a) In accordance with the approval of the shareholders, the Company
 has executed the Business Transfer Agreement dated April 30, 2014 and
 has sold/transferred on May 01, 2014 the business of Leather Services
 included in the Dyes and Specialty Chemicals Segment, including
 production facility at Kanchipuram in Tamil Nadu and laboratories,
 along with employees, assets and liabilities on a going concern basis
 by way of a slump sale to Stahl India Private Ltd. for an aggregate
 consideration of RS. 15600 Lakhs. The profit on sale of the Leather
 Services business amounting to RS. 10408.63 Lakhs is shown as an
 Exceptional Item (Refer note 29). The Capital gains tax arising from
 the transaction is included in Tax Expense.
 (b) The company has sold its Textile Chemicals, Paper Specialities and
 Emulsions business (TPE business), relating to Dyes and Specialty
 Chemicals Segment to Archroma India Private Ltd. on September 30, 2013.
 (c) Necessary information relating to the discontinuing operations is
 as follows
 11 The Company after obtaining necessary approval from the Board of
 Directors acquired all assets and liabilities including Intangible
 assets such as trademarks, skilled manpower, contracts, processes and
 methodologies of the Masterbatches business from a partnership firm
 M/s Plastichemix Industries vide Business Transfer agreement dated
 April 30, 2014 with effect from May 01, 2014, on a going concern basis
 for a total consideration of RS. 13102.20 Lakhs. The excess of
 consideration paid to M/s Plastichemix Industries, over the fair value
 of the net assets taken over, has been accounted as Goodwill (Refer
 note 11) which is amortised over its estimated useful life of 10 years.
 12 In accordance with the approval of the shareholders, the Company has
 entered into an Agreement dated April 15, 2014 to sell land aggregating
 about 87 acres, together with the buildings and structures standing
 thereon, located at Thane, on an as is where is basis to M/s Ishwer
 Realty and Technologies Private Limited (a subsidiary of Lodha
 Developers Private Limited) for a full and final consideration of RS.
 110250 Lakhs (as against originally agreed consideration of RS. 115425
 Lakhs). The company has concluded the sale and has received the full
 and final consideration on the closing date December 31, 2014. The
 profit of RS. 108548.52 Lakhs arising on sale of Land is shown as an
 Exceptional Item (Refer note 29). The Capital gains tax arising from
 the transaction is included in Tax Expense.
 13 The Company is legally advised, that the provisions of Section 196,
 197, 203 and Schedule V of the Companies Act, 2013 in respect of
 managerial remuneration do not apply to the Company for the year ended
 December 31, 2014 as the current financial year commenced prior April
 1, 2014. Accordingly, based on the provisions of Section 198 and 310 of
 the Companies Act, 1956 and read with Notification GSR 534 (E) dated
 July 14, 2011 issued by Ministry of Corporate Affairs, the Company has
 not considered it necessary to make an application to Central
 Government for managerial remuneration paid during the year [Refer note
 37(iii)] which is in excess of the limits specified in Schedule XIII to
 the Companies Act, 1956.
 14 Pursuant to the sale of Leather Services business in the current
 year and sale of TPE Business in the previous year (Refer note 42) and
 acquisition of Masterbatches business in current year (Refer note 43),
 the figures of the current year are not strictly comparable with those
 of the previous year. Figures for the previous year have been regrouped
 / reclassified wherever necessary to correspond with the current year''s
 classification / disclosure.
Source : Dion Global Solutions Limited
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