Ind-Swift Laboratories

1 Contingent liabilities not provided for: (Rs.in lacs)
 
                                              2008-09         2007-08
 
 a.  Letter of Credit against purchase of 
 raw material:                               13125.63         1426.57
 
 b.  Export obligation in respect of 
 custom duty :                                 200.93          171.60
 
 c. Contingent Liabilities in respect of 
    unassessed cases of                     Unascertained  Unascertained
 Income Tax, Excise Duty, Sales Tax 
 and Service Tax.
 
 d.  Corporate guarantees given on behalf of
 
 Ind Swift Land Ltd                              Nil           2500.00
 
 Essix Biosciences Ltd                       1050.00             Nil
 
 Kiran Flour Mills Industries Ltd*           8200.00           7100.00
 
 * Corporate Guarantee given to State Bank of India and ICICI Bank Ltd.
 against the Working Capital Facilities sanctioned to Kiran Flour Mills
 Industries Ltd. The Extent of working capital limit released by the SBI
 & outstanding amount against that is Rs. 2870.24 Lac as on 31.03.09
 
 2 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (Net of advances) Rs 675.87 lacs (Previous
 year Rs. 320.11 Lacs)
 
 3 In the opinion of the Board, the Current Assets, Loans & Advances
 shown in the Balance Sheet have a value on realisation in the ordinary
 course of business at least equal to the amount at which they are
 stated.
 
 4 Company has revalued its assets Comprising of Land, Building,
 Machinery of Derabassi Unit by the approved External Valuer to reflect
 the market value and accordingly the appreciation amounting to
 Rs.10138.73 Lac have been credited to Capital Reserve Account
 (Re-valuation Reserve A/c) as on 31.03.2007. Depreciation amounting to
 Rs. 367.35 Lac has been provided during the year & the same is reduced
 from Revaluation Reserve.
 
 5 Other expenses under head admnistrative expenses includes Rs. 37,000
 (Previous Year Rs.35000) paid to directors as sitting fee.
 
 6 In accordance with Accounting Standard 18, Related Party
 Disclosures issued by the Institute of Chartered
 
 Accountants of India, the Company has compiled the following
 information :
 
 a. List of related parties and their relationship
 
 Associates
 
 Ind Swift Limited
 
 Essix Biosciences Limited
 
 Ind swift communications (p) ltd
 
 Ind Swift Land Ltd
 
 Hakim Farayand Chemi Co (Iran)
 
 Kiran Flour Mills Industries Ltd.
 
 Key Management personnel-
 Directors
 
 Mr. N.R.Munjal
 Mr.V.K.Mehta
 
 Subsidiary
 
 Ind Swift Laboratories Inc. USA
 
 7 The balance in the parties accounts whether in debit or credit are
 subject to confirmation and resultant adjustment.
 
 8 Fixed deposits with banks of Rs. 1320.08 Lacs (Previous year
 Rs.655.20 Lacs) are pledged with banks as margin money for working
 capitial facilities.
 
 9 Company has not received intimation from supplier regarding the
 status under Micro, Small and Medium Enterprises Development Act 2006
 and hence disclosuers, if any, relating to amounts unpaid as at the
 year end together with the interest paid/payable as required under the
 said Act have not been given.
 
 10 The company operates only in one business segment viz. Bulk Drugs &
 Pharmaceutical. However the figures in Segment reporting is based on
 geographical location of its customers.
 
 11 Total amount of Term Loans installments payable during twelve months
 following 31-03-2009 are Rs.  7949.24 Lacs (Previous year Rs.5843.27
 Lacs).
 
 12 The outstanding dues of small scale industrial undertakings have
 been determined to the extent such parties have been identified on the
 basis of information available with the Compnay. The parties to whom
 the Company owes sum outstanding for more than 30 days as at the
 balance sheet date are: Euro Containers, Ammonia Supply Co.
 
 13 The Compnay has ESOP scheme called ESOS 2006.During the year,
 Company has granted no Employee Stock Option.(Previous year 460000)
 Deferred Employee Compesation Cost is being amortised over a period of
 three years, being the vesting period and on proportionate basis.
 Accordingly a sum of Rs.43.56 Lac has been amortised during the year.
 
 14 Obligations/Entitlements on account of advance license not
 recognised at the time of export during the year amounts to Rs. 726.93
 Lac (Previous year Rs.474.16 Lac) . The above treatment has no impact
 on the profit & loss account.
 
 15 Investment of Rs.2337.51 Lac ( Previous Year 2337.51 Lac)
 Unquoted-Long Term are at Cost.
 
 a) Investment in Ind Swift Laboratories Inc, USA Common Stock RS. 0.45
 Lac (Previous Year Rs.0.45 Lac) Share Application Money Rs. 544.09 Lac
 (Previous Year Rs.544.09 Lac)
 
 b) Units of Principle Global Opportunities Fund Rs. 5.00 Lac (Previous
 Year Rs.5.00 Lac)
 
 c) Investment in Vardhman Chemtech Pvt Limited is Rs.100.00 Lac
 (Previous Year Rs. 100.00 Lac) 10,00,000 Equity Share of Rs. 10/- each
 fully paid up.
 
 d) Investment in Nimbua Green Field (Punjab) Ltd 207200 (Previous Year
 207200 ) Equity Share of Rs. 10/- each fully paid Rs. 2072000 (Previous
 Year Rs 2072000)
 
 e) Investment in Swift Land Limited 48,20,00 (Previous Year 482000)
 Equity Share of Rs.10/- each fully paid up.  Rs.  482.00 Lac (Previous
 Year Rs.  482.00 Lac)
 
 f) Investment in Essix Bioscience Limited
 
 3,00,000 (Previous Year 300000) Equity Share of Rs.10/- each fully paid
 up issued at a premium of Rs. 90/-per share, Rs. 300.00 Lac (Previous
 Year Rs. 300 Lac) Share Application Money Rs.  467.50 Lac ( Previous
 Year Rs.467.50 Lac).
 
 g) Investment in Farayand Chemi Hakim Company Ltd (Iran) Common Stock
 RS. 27.17 Lac (Previous Year Rs. 27.17 Lac) Share Application Money Rs.
 386.30 Lac (Previous Year Rs. 386.30 Lac )
 
 16 Office Building includes Mumabi Office Building Rs.41.46 Lac
 purchased in Mumbai in the name of the Managing Director of the Company
 which is mortgaged with ICICI Bank.
 
 The Company has entered into an agreement to sell and has taken GPA
 from the Managing Director. The property is yet to be registered in the
 name of Company.
 
 Freehold land includes Rs.4.04 crore being purchase of Lands situated
 at Barwala (Haryana) for which agreement to sell has been executed and
 the property is yet to be registered in the name of the company.
 
 17 Sundry creditors of Rs 11696.39 Lacs include creditors having debit
 balance of Rs. 349.11 lacs for projects & services.
 
 18 Sundry Debtors & Loans and Advances includes Rs. 2669.40 Lacs
 (Previous year Rs. 1587.40 Lacs) & Rs.2297.04 Lacs as debtors and loans
 respectively
 
 (Previous year 3263.97 Lacs) recoverable from companies under the same
 management.  Pl Refer to Notes No 7of Notes to Accounts
 
 19 As at the Balance Sheet Date, Company has Unhedged Foreign Currecy
 Exposure (Net) to the tune of US $/Mn Nil ,(Previous Year $/Mn 11.32,
 Rs. 45.26 crore).
 
 20 In compliance with AS-28, During the year, company has identified
 fixed assets amounting to Rs.415.20 Lac for impairement. The Net
 Realisable Value of such fixed assets has been estimated at Rs. 85.48
 lac. Accordingly Impairment Loss of Rs.252.60 Lac has been charged to
 Profit & Loss Account during the year.
 
 21 In compliance with AS-15, During the year, company has provided Rs.
 20.67 Lac as additional provision towards the Company Gratuity Policy
 maintained with LIC after the actuarial valuation done by the LIC.
 
 22 During the year, the Company has incurred foreign currency revenue
 expenditure of RMB 473570 on its China Office and GBP 8000 on its U.K
 office Operation. Such Foreign Currency Expenditure has been translated
 in Indian Currency @ One RMB equivalent to Rs.6.83 and One GBP
 equivalent to Rs.  71.99 at the year end on the basis of average
 exchange rate during the year computed as per cross currency reference
 rates published by RBI.
 
 23 Capital Reserve includes Rs. 20.40 Lacs being Subsidy for DG Set
 which is net of Rs 1.12 Lacs amortised and treated as income during the
 year.
 
 24 Loans & Advances include Rs. 3.87 lacs (Previous Year 3.81 lacs) due
 from Company Secretary.  Maximum amount due during the year is Rs. 3.87
 Lacs (Previous Year 3.81 Lacs)
 
 25 Previous year figures have been regrouped, rearranged wherever
 considered necessary for comparison.