A. Terms/Rights attached with Equity Shares
The Company has only one class of Equity Shares having a par value of Rs
10/- per share. Each holder of Equity Shares is entitled to one vote
The Company declares and pays dividend in Indian Rupees except in the
case of overseas shareholders where dividend is paid in respective
foreign currencies considering foreign exchange rate applied at the
date of remittance. The dividend proposed by the Board of Directors is
subject to the approval of shareholders in the ensuing Annual General
During the year ended 31st March, 2012 the amount of dividend per share
recognized as distribution to equity shareholders is Rs 5.50 (31st March
2011, Rs 5.00).
In the event of liquidation of the Company the holders of Equity Share
will be entitled to receive remaining assets of the Company, after
distribution of all preferential distribution in proportion to the
number of Equity Shares held by the shareholders.
(*) Represents relief/incentive granted by Government of India by way
of refund of 90% of Customs Duty paid on NP Projects Imports. This
amount is being adjusted against depreciation over the remaining useful
life of the Fixed Assets of NP Project.
Note: The Company has entered into option contract to cover its risk
towards foreign exchange exposure on External Commercial Borrowings.
The marked to market loss of Rs Nil (Previous Year: Rs 221.80 Lacs) has
been provided in the accounts.
Note: (i) Cash Credit facilities sanctioned by Banks including Working
Capital Demand Loan and Buyer''s Credit are secured by a first charge by
way of hypothecation of stocks of raw materials, finished goods,
stock-in-process, consumable stores and book debts.
(ii) Cash Credit is repayable on demand and carries variable interest
(average for the year 13.25%).
(iii) Buyer''s credits are generally due within 180 days and carry
variable interest (average for the year 1.81%).
The aggregate amount of unclaimed dividend of previous years'' as on
31st March, 2012 was Rs 372.73 Lacs (Previous Year: Rs327.18 Lacs). In
accordance with the provisions of Section 205A (5) of the Companies
Act, 1956, the dividend unclaimed for a period of seven years from the
date of transfer to the Unpaid Dividend Account shall be credited to
the Investor Protection and Education Fund.
(a) Freehold land includes:
- Rs 3,600 Lacs (Previous Year Rs 3,600 Lacs) represented by 24,000
Equity Shares of Rs 10/- each in a company, which is the legal owner of
the land in respect of which the Company has acquired exclusive rights
- Rs 1,046.42 Lacs (Previous Year: Rs 815 Lacs) represented by 1,38,888
Equity Shares (Previous Year: 8,024) of Rs 10/- each in the said
company, which is the legal owner of the land on which the Company has
been granted the rights of use and occupation by virtue of the shares
(b) Buildings include a sum of Rs 11,572.87 Lacs (Previous Year: Rs
3,308.87 Lacs) represented by 38,236 (Previous Year: 17,628) Equity
Shares of Rs 10/- each in a company which is the legal owner of the
buildings in respect of which the Company has an exclusive right of use
and occupation by virtue of the shares so held.
(c) Gross Block of Plant and Machinery includes:
- Rs.421.63 Lacs (Previous Year: Rs 421.63 Lacs) being the cost of Fixed
Assets, ownership of which does not vest with the Company, being
amortized over 60 months.
- Rs.6,212.61 Lacs (Previous Year: Rs 4,564.61 Lacs) towards foreign
exchange fluctuation on Long Term Loans.
(d) During the year, the Company has acquired additional equity shares
of an associate company viz: Yerrowda Investments Ltd. (YIL) by virtue
of which The said company has become the Company''s subsidiary under the
Companies Act, 1956. However, since these shares represent indefeasible
and perpetual occupancy rights in the immovable properties owned by the
said company, the cost of acquisition thereof is treated as part of
fixed assets in consonance with the past practice.
(e) Impairment of Assets: The Company has examined carrying cost of its
identified Cash Generating Units (CGU) by comparing present value of
estimated future cash flows from such CGUs, in terms of Accounting
Standard-28 on Impairment of Assets, according to which no provision
for impairment is required as assets of none of CGUs are impaired
during the Financial Year ended 31st March, 2012.
1. Contingent liabilities (Rs.in Lacs)
Liabilities classified and considered contingent due to contested
claims and legal
31st March 2012 31 st March 2011
Claim by Supplier 2,610.52 5,963.81
Income Tax demands 2,131.50 1,152.77
Excise demands 2,295.06 1,574.16
Sales Tax/VAT demands 1,747.58 1,657.20
TOTAL 8,784.66 10,347.94
2. Gas Authority of India Limited (GAIL) supplier to the Company of
natural gas, one of the main raw materials, has affected the supplies
at provisional rate as indicated in the invoices. According to the
Company any revision in Natural Gas price will be only prospective as
per the existing convention/practice followed by Government of India.
3. Details of Micro and Small Enterprises as defined under MSMED Act,
To comply with the requirement of The Micro, Small And Medium
Enterprises Development Act, 2006, the Company requested its suppliers
to confirm it whether they are covered as Micro, Small or Medium
enterprise as is defined in the said Act. Based on the communications
received from such suppliers confirming their coverage as such
enterprise, the Company has recognized them for the necessary treatment
as provided under the Act, from the date of receipt of such
confirmations and there is no default in payment to such enterprise as
specified in the said Act. However, the amounts outstanding as well as
interest applicable are insignificant and hence not separately
4. Previous year''s figures have been re-grouped wherever necessary to
conform to current year''s grouping.
5. The Financial Statements for the year ended 31st March, 2011 had
been prepared as per the then applicable, pre-revised Schedule VI to
the Companies Act, 1956. Financial Statements for the year ended 31st
March, 2012 has been prepared as per Revised Schedule VI. Accordingly,
the previous year figures have also been reclassified to conform to
this year''s classification. The adoption of Revised Schedule VI does
not impact recognition and measurement principles followed for
preparation of Financial Statements.
6. Inter-segment Sales Pricing: Inter-segment revenue has been
recognized as estimated under Excise Regulations.
7. Secondary Segment Information: There are no reportable geographical
segments since the Company caters mainly to needs of Indian Markets.