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Moneycontrol.com India | Notes to Account > Pharmaceuticals > Notes to Account from Elder Pharmaceuticals - BSE: 532322, NSE: ELDERPHARM

Elder Pharmaceuticals

BSE: 532322  |  NSE: ELDERPHARM  |  ISIN: INE975A01015  |  Pharmaceuticals

Explore Elder Pharma connections « Mar 08
Notes to Accounts Year End : Mar '09
(Rs. in Lacs)
 
                                          As at             As at
                                      31.03.2009         31.03.2008
 
 1. Contingent Liabilities
 a) Letters of Credit                    2208.39           1343.79
 b) Bank Guarantees                       222.08             65.01
 c) Corporate Guarantees to Subsidiary* 13986.70          13986.70
 d) Disputed liability in respect of:
 i) Income tax                            263.14            108.40
 ii) Sales tax                              8.61             10.40
 iii) Customs Duty                         49.50
 iv) Excise Duty                            7.94
 v) Foreign Exchange                         -               45.50
 
 * The loan tafeen by Dubai Subsidiary in respect whereof the corporate
 guarantee was given by the Company has since been repaid.
 
 2. Hedging and Derivatives Pursuant to ICAI Announcement Accounting
 for Derivatives on the early adoption of Accounting Standard 30 -
 Financial Instruments :Recognition and Measurement (AS 30), the
 Company has early adopted AS 30 with effect from October l, 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 loss representing the loss on fair valuation of foreign
 currency options, determined to be ineffective cash flow hedges on the
 date of adoption, amounting to Rs.2527.09 Lacs (net of tax) has been
 adjusted against the opening balance of General Reserve Account in the
 Balance Sheet.
 
 b) Loss on the fair valuation of forward covers, which qualify as
 effective cash flow hedge amounting to Rs.425.74 Lacs (net of tax), on
 the date of adoption, has been recognised in the hedging reserve
 account.
 
 3. DEFINED BENEFIT PLANS
 
 The Company offers its employees defined benefit plans in the form of
 Gratuity Scheme. Gratuity Scheme covers all employees as statutorily
 required under Payment of Gratuity Act, 1972. The Company contributes
 funds to Life Insurance Corporation of India, which are irrevocable.
 Commitments are actuarially determined at the year end. The actuarial
 valuation is done based on Projected Unit Credit method. Gains and
 losses of changed actuarial assumptions are charged to the Profit &
 Loss Account under the head Other Expenses.
 
 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.The geographical segments
 considered for disclosure are based on the revenue within India
 (including sales to customers located in India and service income
 accrued in India) and revenues outside India (sales to customers
 located outside India).
 
 5.  During the year under review the Ministry of Corporate Affairs,
 New Delhi had commenced an investigation against the Company under
 section 235 of the Companies Act, 1956. The investigating agency sought
 information from the Company relating to some of the affairs of the
 Company for the past periods of up to eight years.The Company has
 furnished all available information as sought for by the investigating
 agency. The Company believes that the investigation appears to be
 complete since the investigating agency has issued a show cause notice
 for alleged violations of certain provisions of the Companies Act, 1956
 which the Company has replied.
 
 6.  Debtors are secured to the extent of security deposit of Rs.940.00
 lacs (Previous Year Rs.917.50 lacs) received from Distributors and
 Consignment Agents.
 
 7.  Sundry Debtors and Loans & Advances includes Rs. 1097.22 lacs
 (Previous Year Rs. 1180.03 lacs) and Rs 396.86 lacs (Previous Year
 Rs.3.25 lacs) respectively 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. 1097.22 lacs and Rs. 396.86
 lacs (Previous year Rs. 1180.03 lacs and Rs. 3.25 lacs) respectively.
 
 8.  The construction of Building and erection of Plant & Other
 Manufacturing Infrastructure facilities at Charba, Langa Road were
 delayed due to delay in getting statutory clearance. The Company has
 obtained all the clearances now and the work is getting completed and
 trial runs are going on. It is expected to commence the commercial
 production during current financial year. The above delay, beyond
 control of the management has resulted in cost over run of the plant
 and putting the plant in to commercial production.
 
 9.  Related Party Disclosures :-
 
 Related party dislosures, as required by AS-18, Related Party
 Disclosures are given below : Names of the related parties an
 description of relationship :-
 
 (A) Related parties where control exists
 
 Subsidiaries Elder International F2CO Dubai, UAE
 
 Somerta Holdings Limited, Cyprus
 
 (B) 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
 Redle Pharmaceuticals Private Limited
 E W F Pharmaceuticals Private Limited.
 Afeshaya Holdings Private Limited.
 
 (C)Key Management Personnel       
 and their Relatives               
 
 Mr J Saxena
 Mr M V Thomas
 Mr lofe Saxena
 Mr Yusuf Karim Khan
 Mrs Shalini Kumar
 
 Note: Related party relationship is as identified by the Company and
 relied upon by the auditors
 
 10. Previous years figures have been regrouped / rearranged wherever
 necessary.
Source : Religare Technova

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