(Rs. in Lacs)
Year Ended Year Ended
31st March, 2012 31st March, 2011
CONTINGENT LIABILITIES :
a) Letters of Credit 3,308.91 3,242.89
b) Bank Guarantees 9,689.04 342.55
c) Corporate Guarantees to Subsidiary 16,034.65 8,673.47
d) Disputed liability in respect of :
i) Income tax * 268.58 268.58
ii) Sales tax 36.21 17.56
iii) Customs Duty 25.00 25.00
iv) Service Tax 492.62 -
* Includes demand of Rs. 216.53/- lacs
decided in favour of the Company
but disputed by Income-tax Department.
e) Estimated amount of contracts
remaining to be executed on Capital 230.70 1869.96
Account and not provided for.
2. The balance in respect of trade receivables and loans & advances
are subject to confirmations by the respective parties. The balances of
trade payables were confirmed at random and reconciliations /
adjustments have been made in such accounts, wherever necessary.
3 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 1, 2008, to the extent that the adoption
does not conflict 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 to Rs. 667.67 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 Rs. 206.18 Lacs, on the date of
adoption, has been recognised in the hedging reserve account.
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 Long term loans and advances include Rs. 3434.20 Lacs advances against
acquisition of trade mark.
6. During the year under review, the Income Tax authorities had
carried out search operations in the office and factory premises of the
Company. The liability, if arises, on completion of block assessment
proceedings under the provisions of the Income Tax Act, 1961, will be
provided as and when ascertained.
7. The Board of Directors of the Company has at its meeting held on
2nd August 2012 approved Scheme of Arrangement for merger of Elder
Health Care Ltd. with the Company under sections 391 to 394 of the
Companies Act, 1956, subject to the approvals of shareholders and other
The Scheme of Arrangement will become effective from 1st April 2012. On
the approval of the Scheme of Arrangement, it is proposed to allot 100
equity shares of Rs.10/- each of the Company for every 358 equity
shares of Rs.10/- each held by the shareholders of Elder Health Care
8. The revised schedule VI notified under Companies Act 1956 has
become applicable to the Company during the current year. The previous
years figures have been re-grouped, re-arranged, re-worked &
reclassified, wherever necessary, to conform to revised schedule VI
classification and are to be read in relation to the amounts and other
disclosures relating to the current year.