1. Contingent Liabilities: -
(a) Demands contested by the Company Rs. lacs
As at 31st March
2011 2010
- Sales Tax* 1,916.59 1,917.82
- Excise Duty 360.84 378.77
- Customs Duty 149.50 144.10
- Income Tax 6,583.76 3,754.60
- Service Tax 35.03 1.85
- Property Cases 47.36 47.36
- Labour Cases 103.75 156.71
- Other Cases 453.79 449.82
- Number of cases where amount is not
quantifiable 29 Nos; (Previous year 31 Nos)
(b) Bills discounted 338.56 Nil
(c) Uncalled partly paid shares held as
Investments Nil 4.34
(d) Other guarantees issued by Bank for which the Company is
contingently liable to Rs. 1.10 lacs (Previous Year Rs.2.00 lacs).
These are covered by the charge created in favour of Companys bankers
by way of hypothecation of stock and debtors.
The Company does not expect any liability in respect of item (a), (b)
and (d) to devolve in respect of its exposure and therefore no
provision has been made in respect thereof.
2. Estimated amount of contracts remaining to be executed on capital
account is Rs. 2,451.22 lacs (Previous Year Rs. 8,550.75 lacs) against
which advances paid aggregate to Rs. 1,676.34 lacs (Previous Year
Rs.3,145.49 lacs).
3. During the year, the Company acquired a majority of the equity
shares of Metahelix Life Sciences Limited (Metahelix). Besides, the
shares already acquired, it has made the following commitments:
(a) to acquire from certain shareholders (other than founder
shareholders) 16,099 equity shares held by them for an amount
aggregating Rs. 3,148.80 lacs;
(b) to allow the founder shareholders, a put option exercisable over a
period of 5 years, 14,055 shares held by them for an amount aggregating
Rs. 2,749.02 lacs;
At the end of 5 years, the Company has a call option to acquire the
balance shares held by founder shareholders, at the fair market value
as at the date of exercise.
4. The shareholders approved the issue of 6,482,296 fully paid up
Equity Shares of Rs. 10 each as bonus share in the proportion of one
bonus share for every two equity shares held by postal ballot on May
29, 2010. Accordingly, a sum of Rs. 648.23 lacs has been transferred to
Equity Share Capital Account from Capital Redemption Reserve Account.
Consequently, the earnings per share have been adjusted for all the
periods presented. As no cash flows were involved, the same has not
been disclosed under financing activity.
5. Fixed assets include Rs. 449.45 lacs (Previous Year Rs. 720.14
lacs) representing the book value of assets held for disposal. The
Management expects to recover amounts higher than the carrying value of
these assets.
6. Amount payable to Micro, Small and Medium Enterprises are as
follows:
(a) The total amount of delayed payments during the year aggregates Rs.
1,552.36 lacs in respect of 61 parties (Previous Year Rs. 1174.14 lacs
in respect of 106 parties with amounts ranging from Rs. 0.01 lacs to
Rs. 34.61 lacs) with amounts ranging from Rs. 0.01 lacs to Rs. 47.48
lacs.
(b) The amount of principal outstanding in respect of the above as at
Balance Sheet date is Rs. 339.06 lacs in respect of 35 parties
(Previous Year Rs. 387.20 lacs in respect of 90 parties with amounts
ranging from Rs. 0.01 lacs to Rs. 171.41 lacs) with amounts ranging
from Rs. 0.06 lacs to Rs. 83.39 lacs.
(c) The total interest payable on account of delayed payment during the
year is Rs. 17.09 lacs. The Company has made payments of Rs. 1.20 lacs
during the year. The total interest payable aggregates to Rs. 40.78
lacs (Previous Year Rs. 28.49 lacs) and this entire amount was
outstanding as at the year end.
7. Secured Loans :-
(a) Bank overdrafts and temporary loans have been secured by a first
charge by way of hypothecation of stocks and receivables. The
hypothecation also extends to guarantees issued by the Companys
Bankers in the ordinary course of business.
(b) Loans from others on account of purchase of vehicles have been
secured by way of hypothecation of vehicles.
(c) 750 Secured, Redeemable, Non Convertible Debentures 2010-11 Series
I (Non Convertible Debentures) of face value of Rs. 10 lacs each were
issued on 29.10.2010 amounting to Rs. 7,500.00 lacs with redemption
period of 3 years at 9.05% rate of interest. These Non Convertible
Debentures are secured by a first pari-passu mortgage over factory
building and certain plant and machinery of Ankleshwar and Lote units.
The terms of operating lease do not contain any exceptional /
restrictive covenants. Premises are taken by the Company on operating
leases that are cancellable.
8. “Sundry Debtors” include Rs. Nil (Previous Year Rs. Nil), being amount
receivable from Rallis Australasia Pty. Ltd. (RAPL), a wholly owned
subsidiary. The maximum amount outstanding during the year was Rs. 5.85
lacs (Previous Year Rs.1,101.46 lacs).
Also, included in “Loans and Advances” is a sum of Rs. 18.61 lacs
(Previous Year Rs.18.61) being amount due from Rallis Chemistry Exports
Ltd., a wholly owned subsidiary. The maximum amount outstanding during
the year was Rs. 18.61 lacs (Previous Year Rs. 18.61 lacs).
* includes amount of Rs. 364.14 lacs (Previous Year Rs. 129.37 lacs)
paid to an external agency.
# Recast
During the year the Company has also incurred Rs. 445.98 lacs (Previous
Year Rs. 271.31 lacs) towards product development and registration
which is included under Capital Work in Progress (“CWIP”). The total
amount included in CWIP as at 31st March 2011 Rs. 1,161.53 lacs
(Previous Year Rs. 715.57 lacs). Out of the CWIP a sum of Rs. Nil lacs
(Previous Year Rs. 398.44 lacs) was written off during the year.
* Commission payable to Managing Director for the year 2010-11 includes
Rs. 40 lacs relating to the previous year (Previous Year Rs. 5 lacs).
# Commission payable to Non Whole Time Directors for the year 2009-10
includes Rs. 5 lacs relating to the corresponding previous year.
(b) Directors Remuneration
The remuneration reported above excludes contributions to gratuity fund
and provision for leave encashment since the same are ascertained on an
aggregated basis for the Company as a whole by way of actuarial
valuation and separate values attributable to the Managing Director are
not available.
9. “Other Income” includes net gain of Rs. 177.14 lacs (Previous Year
net gain of Rs. 134.34 lacs grouped under “Other Income”) on account of
foreign currency translation differences.
10. Segment Reporting
The Company has determined its business segment as “Agri - Inputs”
comprising of Pesticides, Plant Growth Nutrients and Seeds. The other
business segment comprises “Polymer” and is non reportable.
b. Secondary Segment Information
Figures in italics relate to the previous year.
All tangible and intangible fixed assets of the Company are situated in
India and therefore cost incurred during the year for
acquisition of such assets under different geographic segments is not
furnished.
Footnotes:
(i) Unallocable assets include Deferred Tax Assets, Investments,
Advance Income Tax, Advance Fringe Benefits Tax and Interest Accrued on
Investments.
(ii) Unallocable liabilities includes Secured Loans, Unsecured Loans,
Provisions for Equity Dividend and tax thereon, Provisions for
Preference Dividend and tax thereon, Provision for Supplemental
Payments on Retirement, Provision for Pension under Voluntary
Retirement Schemes and Provision for Income and Fringe Benefit Tax.
(iii) Unallocable income includes income from investment activities.
(iv) Unallocable expenditure includes charge in respect of Supplemental
Payments on retirement valued on actuarial basis.
11. Related Party Disclosures
Disclosure as required by Accounting Standard (AS) - 18 “Related Party
Disclosures” as prescribed under section 211 (3C) of the Companies Act,
1956.
(a) Names of the related parties and description of relationship:
(i) Promoters: Tata Chemicals Limited
Tata Tea Limited - up to 18.08.2009
Tata Sons Limited - up to 18.08.2009
Tata Investment Corporation
Ewart Investments Limited
Tata AIG Life Insurance Co. Limited
(w.e.f.- 21.05.2010)
(ii) Holding Company: Tata Chemicals Limited on and from
09.11.2009
(iii) Subsidiary Companies: Rallis Australasia Pty. Ltd.
(Under liquidation from-31.03.2011)
Rallis Chemistry Exports Ltd. as
and from 07.07.2009 Metahelix Life
Sciences Ltd (w.e.f -30.12.2010)
Dhaanya Seeds Ltd. (w.e.f -30.12.2010)
(iv) Key Management
Personnel: Mr.V.Shankar - Managing Director & CEO
Footnotes: -
(i) Licensed Capacity - Delicensed vide Gazette Notification No.
S.O.477 (E) dated 25.07.1991.
(ii) Figures in italics are in respect of the previous year.
(iii) Production figures are net of captive consumption and exclude
by-products (Previous Year Recast).
(iv) Production includes quantities manufactured at sub-contracting
plants. Installed capacity represents capacity installed at Companys
facilities.
(v) N.A. = Not Applicable.
Footnote: -
Figures in italics are in respect of the previous year.
Out of investments made during the year disclosed above, Rs. 31,736.06
lacs (Previous Year Rs. 67,914.74 lacs) were on account of switches not
requiring the use of Cash and Cash Equivalents. Therefore, these
amounts are not included under “Investing Activities” in the Cash Flow
Statement.
12. The Company has invested Rs. 880.00 lacs in Non - Convertible
Debentures (“NCDs”) of Advinus Therapeutics Pvt. Ltd. having a coupon
rate of 4.25%. The NCDs will be redeemed between December 2010 and May
2013 at a premium of 25%. Income recognised during the year includes
Rs. 30.44 lacs (Previous Year Rs. 33.32 lacs) in respect of redemption
premium determined on the basis of the internal rate of return. During
the year debentures amounting to Rs. 189.62 lacs were redeemed at a 25%
premium which aggregated Rs. 47.96 lacs.
13. Foreign Currency Exposures :-
The Company, in accordance with its risk management policies and
procedures, enters into foreign currency forward contracts and currency
option contracts to manage its exposure in foreign exchange rate
variations. The counter party is generally a bank. These contracts are
for a period between one day and four years.
Derivative Instruments:
The Company uses foreign currency forward contracts to hedge its risks
associated with foreign currency fluctuations relating to certain firm
commitments and forecasted transactions. The use of foreign currency
forward contracts is governed by the Companys strategy approved by the
Board of Directors, which provide principles on the use of such forward
contracts consistent with the Companys Risk Management Policy. The
Company does not use forward contracts for speculative purposes.
The net gain on the derivative instrument of Rs. 73.66 lacs (net of
Deferred Tax Liability of Rs. 35.38 lacs) is recognised in the Hedging
Reserve Account as at 31st March, 2011 of which Rs. 62.02 lacs
(Previous Year Rs. 64.49 lacs) is expected to be reclassified in the
Profit and Loss Account by 31st March 2012.
14. Employee Benefit Obligations
Defined-Contribution Plans
The Company makes contributions towards provident fund, family pension
fund and superannuation fund to defined contribution retirement benefit
plans for qualifying employees. The provident fund is administered by
the Trustees of Rallis India Limited Provident Fund Trust, the family
pension fund is administered by the Government of India and the
superannuation fund is administered by the Life Insurance Corporation
of India and HDFC Standard Life Insurance Company Ltd. Under the
schemes, the Company is required to contribute a specified percentage
of salary to the retirement benefit schemes to fund the benefit. The
rules of the Companys Provident Fund administered by a Trust require
that if the Board of Trustees are unable to pay interest at the rate
declared by the Employees Provident Fund by the Government under
paragraph 60 of the Employees Provident Fund Scheme, 1952 for the
reason that the return on investment is less or for any other reason,
then the deficiency shall be made good by the Company. Having regard to
the assets of the Fund and the return on the investments, the Company
does not expect any deficiency in the foreseeable future.
A sum of Rs. 450.21 lacs (Previous Year Rs. 383.96 lacs) has been
charged to the revenue account in this respect.
Defined-Benefits Plans
The Company offers its employees defined-benefit plans in the form of a
gratuity scheme (a lump sum amount) and a supplemental pay scheme (a
life long pension). Benefits under the defined benefit plans are
typically based either on years of service and the employees
compensation (generally immediately before retirement). The gratuity
scheme covers substantially all regular employees, while supplemental
pay plan covers certain executives. In the case of the gratuity scheme,
the Company contributes funds to Gratuity Trust, which is irrevocable,
while the supplemental pay scheme is not funded. Commitments are
actuarially determined at year-end. The actuarial valuation is done
based on “Projected Unit Credit” method. Gains and losses of changed
actuarial assumptions are charged to the profit and loss account.
The plan assets are managed by the Gratuity Trust formed by the
Company. The management of funds is entrusted with the Life Insurance
Corporation of India and HDFC Standard Life Insurance Company Limited.
15. Rallis Australasia Pty. Ltd., a subsidiary of the Company, has
applied for voluntary liquidation as of 31st March, 2011. The Company
expects to recover an amount higher than the carrying value of the
investment.
16. Previous years figures have been regrouped / restated wherever
necessary to conform to the classification of the current year. |