SENSEX NIFTY India | Notes to Account > Chemicals > Notes to Account from Excel Industries - BSE: 500650, NSE: EXCELINDUS
Excel Industries
BSE: 500650|NSE: EXCELINDUS|ISIN: INE369A01029|SECTOR: Chemicals
Aug 28, 16:00
-3.3 (-1.07%)
VOLUME 6,054
Aug 28, 16:01
-1.4 (-0.46%)
VOLUME 10,276
Mar 13
Notes to Accounts Year End : Mar '14
 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.
 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
 13.5% p.a.
 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.
 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.
 (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
 4. 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 periods are as follows:
 [AS15 Para 120(n)] [1]
 5.  Notes:
 1.  The Company is organised into two business segments namely:
 (a) Chemicals - Comprising of Industrial and Specialty Chemicals and
 Pesticides Intermediates.
 (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.
 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.
                                  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
                                      ascertainable        ascertainable
 Previous Year figures have been regrouped/reclassified, where necessary
 to conform to this year''s classification.
Source : Dion Global Solutions Limited
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