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Clariant Chemicals India

BSE: 506390|NSE: CLNINDIA|ISIN: INE492A01029|SECTOR: Dyes & Pigments
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« Dec 14
Notes to Accounts Year End : Mar '16

Shares bought back during the IS months period ended March 31,2016:

The Board of Directors at its meeting held on April 22, 2015 approved the proposal of buyback of 35,78,947 equity shares of X 10
each from shareholders of the Company in accordance with the relevant provisions of Companies Act, 2013 and Securities and
Exchange Board of India (Buy Back of Securities) Regulations, 1988 at a price of X 950 per equity share, aggregating to X 34000
Lakhs. Consequently, a sum of X 3545.65 Lakhs and X 30096.45 Lakhs has been utilized in respect of the buy back from Securities
premium account and General reserve respectively. Further a sum of X 357.89 Lakhs has been appropriated from General reserve to
Capital redemption reserve and the same has been reduced from the paid up share capital.

1.Rights, preferences and restrictions attached to shares

The Company has one class of equity share having a par value oiX 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.


Notes:

1. Buildings include X 450/- ( Previous year: X 450/-) being the cost of shares in co-operative housing society

2. Additions include assets acquired on acquisition of Lanxess India Private Limited (Refer note 43 )

3. Deductions include fixed assets transferred on sale of business of Industrial and Consumer Specialties (ICS) (Refer note 42 )

4. The Company has revised its estimate of useful life of tangible assets as prescribed in Part C of Schedule II of the
Companies Act, 2013, w.e.f January 01,2015, except for certain assets for which different useful life has been considered based
on a technical evaluation, which management believes best represents the period over which assets are expected to be used by the
Company. As prescribed in the said Schedule II, an amount of X 250.46 Lakhs has been charged to the opening balance of retained
earnings (net of deferred tax of X 85.12 Lakhs) for the assets in respect of which the remaining useful life became Nil as on
January 01, 2015 and in respect of other assets on that date, depreciation has been calculated based on the remaining useful life
on a prospective basis. Had the Company continued with the useful life adopted in earlier years, charge for depreciation for
thel5 months ended March 31,2016 would have been lower by X 300.48 Lakhs and the net profit for the same period would have

been higher by the same amount.


2. Segment Information :

(As required by Accounting Standard (AS) -17 Segment Reporting) :

(a) The Company is organized into two primary business segments as follows: (i) Pigments and Colors :

Includes pigments, pigment preparations, additives and master batches. (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 mainly: (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 organization 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 unallowable corporate assets and
liabilities respectively.


As Less or:

The company has given certain buildings on operating lease. The lease arrangements for 11 months to 4 years are cancellable and
are generally renewable by mutual consent or mutually agreeable terms. The rental income of X 278.10 Lakhs (Previous year X
195.04 Lakhs) on such lease is included in Other Income (Refer note 22).

3. 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


4. Discontinuing operations

(a) The Company has executed the Business Transfer Agreement on July 31, 2015 and has sold/transferred on August 01, 2015 the
business of Industrial and Consumer Specialties (ICS), included in the Dyes and Specialty Chemicals Segment, along with
employees, assets, liabilities and including all licenses, permits, consents and approvals on a going concern basis by way of a
slump sale on a as is where is basis to Clariant India Ltd. for an aggregate consideration of X 4200 Lakhs. The profit on sale
of the ICS business amounting to X 2656 Lakhs is shown under Exceptional Items, credit (net) (Refer note 29). The Capital Gains
tax arising from the transaction is included in Tax Expense.

(b) The company had sold its Leather services business, relating to Dyes and Specialty Chemicals Segment, to Stahl India Private
Ltd. on April 30, 2014.

5. The Company after obtaining necessary approvals from the Board of Directors, vide an agreement dated March 31, 2015, acquired
the Carbon Black Business from Lanxess India Private Limited (Lanxess) effective close of business hours on March 31, 2015,
comprising the Carbon Black Dispersion plant located at Nagda, India, together with its respective assets, liabilities and
employees as a going concern on a slump sale basis for a lump sum consideration ofRs, 1346 Lakhs (including non compete fees)
after working capital adjustment, as at March 31, 2015. The excess of consideration paid to Lanxess over the fair value of net
assets acquired is considered as goodwill.

6. Pursuant to the sale of Industrial and Consumer Specialties business in the current period and sale of Leather Services
business in the previous year (Refer note 42), acquisition of Carbon Black business in current period (Refer note 43) and change
in accounting year of the company [Refer note 1 (a)], the figures of the current period are not comparable with those of the
previous year. Figures for the previous year have been regrouped / reclassified wherever necessary to correspond with the current
period''s classification / disclosure.

Source : Dion Global Solutions Limited
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