As at As at
31st March 2011 31st March 2010
(Rs. in Lacs) (Rs. in Lacs)
1. CONTINGENT LIABILITIES
a) Letters of Credit 3242.89 2933.74
b) Bank Guarantees 342.55 180.39
c) Corporate Guarantees to
Subsidiary 8673.47 -
d) Disputed liability in respect of:
i) Income tax* 268.58 73.79
iil Sales tax 17.56 17.56
iiil Customs Duty 25.00 49.50
iv) Excise Duty - 12.55
* includes demand ofRs. 216.53 lacs decided in favour of the Company but
disputed by Income-tax Department.
2. Hedging and Derivatives
Pursuant to ICAI Announcement Accounting for Derivatives on the early
adoption of Accounting Standard 30 - Financial Instuments
:Recognition and Measurement iAS 30), the company has early adopted
AS 30 with effect from October 1, 2008, to the extent that the adoption
does not conflict with existing mandatory accounting standards and
other authoritative pronouncements, company law and other regulatory
requirements. Pursuant to the adoption :-
a) Transitional Gain representing the Gain on fair valuation of foreign
currency options, determined to be ineffective cash flow hedges on the
date of adoption, amounting toRs. 194.41 Lacs has been adjusted against
the opening balance of General Reserve Account in the Balance Sheet.
b) Gain on the fair valuation of forward covers, which qualify as
effective cash flow hedge amounting to T501.29 Lacs, on the date of
adoption, has been recognised in the hedging reserve account.
3 DEFINED BENEFIT PLAN:
In accordance with applicable Indian laws, the Company provides for
gratutity. A defined benefit retirement plan (Gratuity Plan). The
Gratutity Plan provides a lump sum payment to vested employees, at
retirement or termination of employment, an amount based on the
respective employee''s last drawn salary and the years of employment
with the Company. The Company provides the gratutiy benefit through
annual contributions to a fund managed by the Insurer viz. (LIC). Under
this plan, the settlement obligation remains with the Company.although
the Employees Gratutity Trust administers the plan and determines the
contribution premium required to be paid by the Company.
4. Segment Information:
The company is primarily engaged and deals in pharmaceuticals & related
products, which in the context of Accounting Standard-17, is the only
business segment and has been identified as the primary reporting
segment. Accordingly, the information appearing in these financial
statements relate to the aforesaid primary reporting segment. Secondary
segmental reporting is performed on the basis of the geographical
locations of customers.
5. Debtors are secured to the extent of security deposit ofRs. 1334.60
lacs (Previous YearRs. 1271.50 lacs) received from Distributors and
Consignment Agents.
6. Sundry Debtors and Loans & Advances includes Rs. 848.06 lacs
(Previous Year Rs. 967.25 lacs) and Rs. 37.40.lacs (Previous Year Rs. 1415.56
lacs ) respectively, for value to be received, due from a company in
which one of the Directors of this company is interested as Director.
Maximum Debit Balance outstanding during the year Rs. 848.06 lacs and Rs.
836.94 lacs (Previous Year Rs. 1097.22 lacs and Rs. 1415.56 lacs)
respectively.
7 I Related Party Disclosures:-
Related party dislosures, as required by AS-18, Related Party
Disclosures are given below : Names of the related parties and
description of relationship :
Related parties where control exists (A) Subsidiaries
Elder International FZCO, Dubai, UAE
IB) Enterprises over which key management personnel and their relatives
are able to exercise significant influence
Elder Health Care Limited.
Elder Projects Limited.
Elder Instruments Private Limited.
Maveer Prints Private Limited
E W F Pharmaceuticals Private Limited.
Redle Pharmaceuticals Private Limited
Akshaya Holdings Private Limited.
Anjay Prints
Anshul Printers
(C) Key Management Personnel and their Relatives
Mr Jagdish Saxena
Mr M. V. Thomas (Upto 30-06-2010)
Mr Alok Saxena
Mr Yusuf Karim Khan
Mrs Shalini Kumar
Note: Related party relationship is as identified by the company and
relied upon by the auditors.
8. Previous year''s figures have been regrouped / rearranged wherever
necessary.
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