Excel Industries Limited (the Company) is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed on two stock exchanges in India. The Company is
engaged in manufacturing of Chemicals, Pharma intermediates and
Environmental products. Chemicals comprising of Industrial and
Specialty chemicals and Pesticides Intermediates. Environmental
products comprising of Soil Enricher, Bio-Pesticides and other
Bio-products. The Company is also engaged in manufacturing activity on
behalf of third parties.
BASIS OF PREPARATION
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956, read with
General circular 8/2014 dated 4 April 2014, issued by the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
The financial statements have been prepared on an accrual basis and
under the historical cost convention, except in case of assets for
which revaluation is carried out. The accounting policies have been
consistently applied by the Company are consistent with those used in
the previous year.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI to the Companies Act, 1956. Based
on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current - non-current classification of
assets and liabilities.
1 (a) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 5/- per share. Each holder of equity share carries one vote and is
entitled to dividend that may be declared by the Board of Directors,
which is subject to the approval of the shareholders in the ensuing
Annual General Meeting.
During the year ended March 31, 2014, the amount of per share dividend
recognised as distributions to equity shareholders was Rs. 3.75/-
(Previous year: Rs. 3/-)
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
(b) Loan from Bank of India amounting to Rs. 5,23.61 lacs (Previous
Year: Rs. Nil) is for a period of five years carrying interest rate of
12% p.a. and is secured by first exclusive charge by way of
hypothecation of plant and machinery and further secured by equitable
mortgage of land and buildings of the factory located at Roha.
(c) Loan from HDFC Bank Ltd. amounting to Rs. 10,00 lacs (Previous
Year: Rs. Nil ) is for a period of five years carrying rate of interest
@12.6% p.a. and is secured by exclusive charge by way of hypothecation
of entire movable assets at Lote Parashuram and further secured by
equitable mortgage of immovable assets at Lote Parashuram.
(d) Term loan under vehicle finance from a financial institution
amounting to Rs. 21.86 lacs (Previous Year: Rs. 37.21 lacs) carrying
interest rate ranging from 12% to 14 % p. a. repayable in equated
monthly instalments and secured by hypothecation of the vehicles
acquired by utilising the said loans.
(e) Finance lease obligation to Siemens Financial Services Pvt. Ltd
amounting to Rs. 5,22.59 lacs (Previous Year: Rs. Nil) is for a period
of three years and carry the interest @ 12.50% p. a.
(f) Deposits from shareholders and public are repayable after two and
three years from the respective dates of deposits and carry the
interest @ 9.5% p.a. and @ 10% p.a. respectively.
The Company has recognised deferred tax asset since the management
believes that the reversal of the timing difference on account of
depreciation would result in sufficient future taxable income against
which the said deferred tax asset can be realised.
Cash credit, packing credit and working capital demand 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 receivable etc and is further
secured by a second charge on the fixed assets at Roha and Lote
Parashuram. The cash credit, packing credit and working capital demand
loan is repayable on demand and carries interest rates @ 10.45% to
Outstanding foreign currency buyer''s credit loan are unsecured and
carry an interest rate ranging from libor plus 85 bps to 130 bps.
Short term unsecured loan from HDFC Bank Ltd is payable within a period
of six months and carries interest rate of 11.25% p.a and unsecured
loan from YES Bank Ltd is payable within a period of twelve months and
carries interest rate of 12.75% p.a.
Inter Corporate Deposits are repayable within a period of 3 months and
carries interest rates @ 12% to 12.5% p.a.
Margin money deposits given as security
Margin money deposits with a carrying amount of Rs. 81.67 lacs
(Previous Year: Rs. 36.41 lacs) have been given against opening of
Letter of Credit Account with the Bank and Bank guarantee
Note:- Excise duty on sales amounting to Rs. 40,53.22 lacs (Previous
Year: Rs. 36,38.45 lacs) has been reduced from sales in statement of
profit and loss and excise duty increase/ decrease in stock amounting
to Rs. 6.62 lacs (Previous Year: Rs. 13.34 lacs) has been considered
(income)/expenses in Note 22 of financial statements.
2. MONEY RECEIVED AGAINST CONVERTIBLE WARRANTS ISSUED
The Company has issued and allotted 20,00,000 fully convertible
warrants of face value of Rs. 69/- each on a preferential basis
aggregating to Rs. 13,80 lacs (Previous Year Rs. Nil) to Utkarsh Global
Holdings Private Limited, a promoter group Company, pursuant to the
special resolution passed in the Extraordinary General Meeting held on
15 March 2014. The said issue was pursuant to Section 81 (1A) of the
Companies Act, 1956 and SEBI (ICDR) Regulations, 2009.
Each such warrant is convertible at the option of the holder of the
warrants into one equity share of face value of Rs. 5/- each of the
Company at a premium of Rs. 64/- per equity share. The Company has
received Rs. 345 lacs being 25% of consideration of the warrants.
The warrants will, at the option of the holder be converted into equity
shares in one or more tranches, but not later than 18 months from the
date of their allotment i.e. 27 March, 2014.
3. 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 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
The following tables summaries the components of net benefit expense
recognised in the Statement of profit and loss and the funded status
and amounts recognised in the balance sheet for the respective plans.
The overall expected rate of return on assets is determined based on
the market prices prevailing on that date, applicable to the period
over which the obligation is to be settled. There has been significant
change in the expected rate of return on assets due to the improved
stock market scenario
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 periods are as follows:
[AS15 Para 120(n)] 
1. The Company is organised into two business segments namely:
(a) Chemicals - Comprising of Industrial and Specialty Chemicals and
(b) Environment - Comprising of Soil enricher, Bio - pesticides and
other Bio products.
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
(b) Revenue outside India includes sales to customers located outside
4. Segment Revenue, Results, Assets and Liabilities includes the
respective amounts identifiable to each of segments and amounts
allocated on a reasonable basis.
6. 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 15% over the existing lease rent. There are no
restrictions imposed by lease agreements/arrangements.
7. CONTINGENT LIABILITIES
For the year ended For the year ended
March 31, 2014 March 31, 2013
Rs. in Lacs Rs. in Lacs
Bills discounted 5,05.91 8,11.93
Disputed Income-tax liability 21,01.91 17,11.50
Disputed Excise Duty liability 6,85.90 4,50.19
Disputed Sales Tax liability 16.52 19.96
Disputed Custom duty tax
liability 27.43 21.78
Disputed Service Tax
liability 48.02 32.22
Guarantees given by
Company''s Bankers on behalf
of the Company to third
parties 21.79 82.14
Claims against the Company
not acknowledged as debts 24.31 13.46
Liability in respect of
claim made by workers and
contract labourers Amount not Amount not
8. PREVIOUS YEAR FIGURES
Previous Year figures have been regrouped/reclassified, where necessary
to conform to this year''s classification.