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Excel Industries

BSE: 500650|NSE: EXCELINDUS|ISIN: INE369A01029|SECTOR: Chemicals
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Mar 15
Notes to Accounts Year End : Mar '17

(b) Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs.5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2017, the amount of per share dividend recognized as distributions to equity shareholders is Rs. Nil (Previous Year: Rs.4.50/- )

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Details of shareholders holding more than 5% shares in the Company (as per the register of members of the Company are as under):

(d) Buyback of Equity Shares

The board of Directors had approved to buyback a maximum up to 11,50,000 equity shares of the company at a price not exceeding Rs.275 per equity share and the total consideration not exceeding Rs.1800 lacs.

During the year, the company has bought back 3,34,938 equity shares utilizing Rs.9,26.71 lacs (including transaction charges, brokerage, tax etc.) from securities premium account under the said buyback offer. As a result of the buyback, total equity shares of the company has reduced from 1,29,05,630 to 1,25,70,692. Further, the company has transferred Rs.16.75 lacs to capital redemption reserve from General reserve being the sum equal to the nominal value of shares so purchased.

(e) Proposed Dividend on Equity Shares

The board proposed dividend on equity shares after the balance sheet date.

Proposed dividend on equity shares for the year ended 31 March 2017: Rs.6.00 per share (31 March 2016: Rs.4.50 per share) also refer note 2.1.1.

DDT on proposed dividend

(a) Loan from Bank of India amounting to Rs.331.00 lacs (Previous Year: Rs.531.00 lacs) is for a period of five years repayable in quarterly installments of Rs.50 lacs and carrying interest rate of 12.25% to 12.90% p.a. and is secured by first exclusive charge by way of hypothecation of plant and machinery and further to be secured by registered mortgage of land and buildings of the factory located at roha.

(b) Loan from HDFc Bank Ltd. amounting to Rs.333.33 lacs (Previous Year: Rs.555.56 lacs) is for a period of five years repayable in quarterly installments of Rs.55.56 lacs and carrying rate of interest @11.60% to 11.90% p.a. and is secured by exclusive charge by way of hypothecation of entire movable assets at Lote Parashuram and further to be secured by registered mortgage of immovable assets at Lote Parashuram.

(c) Term loans under vehicle finance from a financial institution amounting to Rs.49.11 lacs (Previous Year: Rs.49.99 lacs) carrying interest rate ranging from 12% to 14% p.a. repayable in equated monthly installments and secured by hypothecation of the vehicles acquired by utilizing the said loans.

(d) Finance lease obligation amounting to Rs.6,34.56 lacs (Previous Year: Rs.7,80.68 lacs) from siemens Financial services Pvt. Ltd. for a period of three years and is secured by hypothecation of equipment''s taken on lease. It will be discharged by monthly lease rental payments on various dates and carry the interest @ 11.50% p.a. to 12.50% p.a.

(e) Loan from Housing Development Finance corporation Limited amounting to Rs.4,09.60 lacs (Previous Year: Rs. Nil) carrying interest rate @ 11.50 % p. a. repayable in sixty equated monthly installments and secured by first equitable mortgage on property along with stilt area and undivided portion of freehold land at New Delhi both present and future and by way of first charge on all the receivables including lease rent and sale proceeds of the herein mentioned property.

Cash credit and packing credit loan from banks are secured by hypothecation of all tangible movable assets both present and future including stock of raw materials, finished goods, goods in process, stores and trade receivables etc and is further secured by a second charge on the Property, Plant and Equipment at Roha and Lote Parashuram. The cash credit and packing credit loan is repayable on demand and carries interest rates @ 11.70% to 13.20% p.a.

Outstanding foreign currency buyers''s credit are unsecured and carry an interest rate of libor plus 0.23% to 0.80%

Short term unsecured loans from Banks are payable within period of 3 to 6 months and carries interest rate of 8.90% p.a to 9.50% p.a.

Margin money deposits given as security

Margin money deposits with a carrying amount of Rs.6.63 lacs (Previous Year: Rs.6.79 lacs) have been given against opening of Letter of Credit Account and Bank guarantee.

During the year, the company has sold 2,45,760 Equity shares of Excel crop care Limited to sumitomo chemical company, Limited, Japan at a price of Rs.12,59.36 per Equity share in accordance with share Purchase Agreement executed on 5th June 2016. The profit earned (net of related expenses) on the said transaction has been disclosed as an exceptional item.

1. DETAILS OF EMPLOYEE BENEFITS

(I) Defined Benefit Plan Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service. If an employee completes more than 25 years of service as of 31st March 2017 except staff and workers, then instead of 15 days, he / she will get gratuity on retirement at 22 days last drawn salary. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial year. The scheme is funded with insurance Companies in the form of qualifying insurance policies.

The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

(a) The amounts recognized in the Statement of profit and loss are as follows: Defined Benefit Plan

Notes:

1. The estimates of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

2. Amounts for the current and previous four years are as follows: [As15 Para 120(n)] [1]

2. Notes:

1. The company is organized into two business segments namely:

(a) chemicals - comprising of Industrial and specialty chemicals, Pesticides Intermediates, Polymer and Pharma intermediates.

(b) Environment - comprising of soil enricher, Bio-pesticides and other Bio products. The Environment and Biotech segment has been shown as discontinuing operations as an Business transfer Agreement has been executed by the company dated 31st March, 2017 for transferring the said segment to its wholly owned subsidiary company viz Excel Bio resources Limited as a going concern by way of slump sale.

2. segment revenue in the above segments includes sales, export incentives, processing charges and other income from operations.

3. segment revenue in the geographical segments considered for disclosure are as follows:

(a) revenue within India includes sales to customers located within India.

(b) revenue outside India includes sales to customers located outside India.

4. segment revenue, results, Assets and Liabilities includes the respective amounts identifiable to each of segments and amounts allocated on a reasonable basis.

Related Party Transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year: (a) Sale/purchase of goods & services and other transactions

3. OPERATING LEASES

Office premises and godowns are obtained on operating leases for various tenors. except for the Office premises, none of the operating leases are renewable. In respect of Office premises, the operating lease are renewable for further period of five years, with an escalation clause of 5% over the existing lease rent. There are no restrictions imposed by lease agreements / arrangements.

*includes Rs.1,42.05 lacs, Rs.1,25.55 lacs and Rs.2,57.11 lacs (Previous Year: Rs.1,23.84 lacs, Rs.91.29 lacs and Rs.1,81.09 lacs) in respect of research and Development Units at roha, Lote and Mumbai respectively which is approved by the Department of scientific & Industrial research, Ministry of science & Technology.

capital expenditure incurred during the year on research and Development [including capital expenditure on qualifying assets of Rs.44.88 lacs, Rs.23.92 lacs and Rs.89.55 lacs (Previous Year: Rs.4.86 lacs, Rs.37.56 lacs and Rs.49.99 lacs in respect of research and Development Units at roha, Lote and Mumbai respectively which is approved by the Department of scientific & Industrial research, Ministry of science & Technology)].

4. DISCONTINUING OPERATION OF ENVIRONMENT AND BIO-TECH DIVISION

On 29 March 2017, the company announced the decision of its board of directors to discontinue the Environment and Bio-tech (E & BT) Division, which is also a separate segment as per As 17 segment reporting. The proposed discontinuation is consistent with the company''s long-term strategy to focus its activities in the areas of solid waste management and related services, and to divest unrelated activities. On 31st March 2017, the company signed a business transfer agreement to sell the Biotech Division to Excel Bio resources Limited for Rs.975.00 lacs.

At 31st March 2017, the carrying amount of assets of the Environment and Bio-tech (E&BT) Division was Rs.11,50.84 lacs (31st March 2016: Rs.10,28.73 lacs) and its liabilities were Rs.2,16.86 lacs (31st March 2016: Rs.2,09.04 lacs). The process of transferring the Environment and Bio-tech (E&BT) Division would be completed on fulfillment of conditions precedent as provided in the business transfer agreement.

The following statement shows the revenue and expenses of discontinuing operations:

5. FINANCE LEASE : COMPANY AS LESSEE

The company has finance leases for various items of plant & machinery. These leases involve significant upfront lease payment, having terms of renewal and bargain purchase option. However, there is no escalation clause. each renewal is at the option of lessee. Future minimum lease payments (MLP) under finance leases together with the present value of the net MLP are as follows:

6. DETAILS OF CORPORATE SOCIAL RESPONSIBILITY (CSR):

As a responsible corporate citizen, our csr strategy complements our business philosophy and objectives. During the year, the company had as its social responsibility, partnered with its group NGOs like shree VRTI, samarth Gram Vikas Trust etc and other reputed organizations for undertaking various social activities in the field of education, employment through vocational training activities, rural development, environment and nature conservation.

During the year the company has incurred an amount of Rs.75.84 lacs (Previous Year: Rs.69.83 lacs) towards the above mentioned activities.

A. Gross amount required to be spent by the Company during the Year: Rs.71.41 lacs (Previous Year: Rs.59.02 lacs)

B. Amount spend during the year:

7. DISCLOSURE REQUIRED UNDER SEC 186(4) OF THE COMPANIES ACT, 2013

Included in loans and advance are certain intercorporate loan the particulars of which are disclosed below as required by Sec. 186(4) of Companies Act, 2013 (Refer Notes 13, 29 & 35)

8. DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE PERIOD 8TH NOVEMBER, 2016 TO 30TH DECEMBER, 2016: DISCLOSURE AS STATED IN NOTIFICATION G.S.R. 308€ DATED 30TH MARCH 2017.

9. PREVIOUS YEAR FIGURES

Previous Year figures have been regrouped/reclassified, where necessary to conform to this year''s classification.

Source :
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