a. The Equity Shares of the Company have voting rights and are subject
to the preferential rights as prescribed under law or those of the
preference shareholders, if any. The Equity Shares are also subject to
restrictions as prescribed under the Companies Act, 1956.
b. Shares held by Holding /Ultimate Holding Company and /or its
Out of total equity shares issued by the Company, shares held by its
holding company, ultimate holding company and its
subsidiaries/associates are as below:
a. A sum of Rs Nil (Previous Year Rs437.83 lacs) representing amount
received by the Company in earlier years on surrender of tenancy rights
has been transferred to the General Reserve.
b. An amount of Rs Nil (Previous Year Rs648.23 lacs) out of the Capital
Redemption Reserve was utilised for the issue of Nil (Previous Year
6,482,295) fully paid up Bonus Shares of Rs 10 each.
c. An amount of Rs Nil (Previous Year Rs17.80 lacs)appropriated to
Investment Allowance Reserve has been fully utilized for acquisition of
new plant and machinery, the balance has been transferred to General
d. As the entity is not engaged in non banking finance activities the
amount appropriated to Reserve under section 45IC of the Reserve Bank
of India Act, 1934, a balance of Rs Nil (Previous Year Rs10.39 lacs) has
been transferred to General Reserve.
e. The amount appropriated/transferred to General Reserve during the
(a) Rs Nil (Previous Year Rs466.02 lacs) transferred as per footnotes a,c
(b) Rs 1,013.90 lacs (Previous YearRs 1,262.13 lacs) has been
appropriated out of the Statement of Profit and Loss to the General
Reserve during the year.
a. 750 (Previous Year: 750) 9.05% Secured Redeemable Non-Convertible
Debentures (2010-11 Series 1) having a face value of Rs 10 lacs each
redeemable at par on 29th October, 2013.
b. 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.
c. The Company can repurchase some or all of the Debentures at any
time prior to date of redemption. The Company has the right to re-issue
debentures bought back subject to provisions of The Companies Act,
1. Cost of buildings includes cost of 50 shares (Previous Year 50
shares) of Rs 50 each fully paid and cost of 5 shares (Previous Year 5
shares) of Rs 100 each fully paid in respect of ownership flats in 7
(Previous Year 7) Co-operative Societies.
2. Buildings include an asset having gross block of Rs 169.29 lacs
(Previous Year Rs 181.63 lacs) and net block of Rs 116.06 lacs (Previous
Year Rs127.10 lacs) where the conveyance in favour of the Company is not
3. Fixed assets include Rs 434.98 lacs (Previous Year Rs449.45 lacs)
representing the book value of assets held for disposal. The Management
expects to recover amounts higher than the carrying value of these
1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
(i) Contingent Liabilities:
Particulars 2011-12 2010-11
a. Claims against the Company not
acknowledged as debts:
- Sales Tax 2,158.63 1,916.59
- Excise Duty 360.84 360.84
- Customs Duty 149.50 149.50
- Income Tax 6,655.04 6,583.76
- Service Tax 42.14 35.03
- Property Cases 47.36 47.36
- Labour Cases 109.00 103.75
- Other cases 472.01 453.79
- Number of cases where amount
is not quantifiable 41 Nos.
(Previous Year 29 Nos.)
b. Guarantees # 3.10 1.10
c. Other money for which the company
is contingently liable:
- Bills Discounted 104.10 338.56
(ii) Other Commitments:
(A) During the financial year 2010-11, the Company had acquired a
majority of the equity shares of Metahelix Life Sciences Limited
(Metahelix). Besides, the shares already acquired, it has made the
(a) to acquire shares from certain shareholders (other than founder
shareholders) 2,591 equity shares amount aggregating Rs 506.77 lacs.
(previous year 16,099 equity shares held by them for an amount
aggregating Rs3,148.80 lacs.)
(b) to allow the founder shareholders, a put option exercisable over a
period of 4 years (Previous Year: 5 years), 11,244 shares held by them
for an amount aggregating Rs 2,199.21 lacs (Previous Year: 14,055 shares
for an amount aggregating Rs2,749.02 lacs).
At the end of 4 years, the Company has a call option to acquire the
balance shares held by the founder shareholders, at the fair market
value as at the date of exercise.
(B) Estimated amount of contracts remaining to be executed on capital
account is Rs 1,944.45 lacs ( Previous Year Rs 2,451.22 lacs) against
which advances paid aggregate to Rs 144.15 Lacs (Previous Year Rs
(i) # Other guarantees issued by Bank for which the Company is
contingently liable. These are covered by the charge created in favour
of Company''s bankers by way of hypothecation of stock and debtors.
(ii) The Company does not expect any liability in respect of items (a),
(b) and (c ) of item (i) to devolve in respect of its exposure and
therefore no provision has been made in respect thereof.
2 The Company has procured 126 motor vehicles (Previous Year 44 Nos)
under non-cancellable operating leases. Lease rent charged to the
Statement of Profit and Loss during the year is Rs 203.53 lacs (Previous
Year Rs 23.81 lacs) net of amount recovered from employees Rs 2.34 lacs
(Previous Year Rs8.22 lacs). Disclosures in respect of non-cancellable
leases are given below:
During the year the Company has also incurred Rs 471.14 lacs (Previous
Year Rs 445.98 lacs) towards capital research and development
expenditure which is included under Intangible Assets under
Development/Capital work in progress. The total amount included in
Intangible Assets under Development/Capital work in progress as at 31st
March 2012 is Rs 1,638.98 lacs (Previous Year Rs 1,167.84 lacs).
Included in the foregoing is an amount of Rs 582.94 lacs (Previous Year
Rs364.14 lacs) paid to an external agency.
(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
(iv) Production includes quantities manufactured at sub-contracting
plants. Installed capacity represents capacity installed at the
(v) N.A. = Not Applicable.
# During the year ended 31st March, 2012, the Company''s Equity Shares
of face value of Rs 10 each were sub-divided into ten Equity Shares of
face value of Rs 1 each. Hence Basic and Diluted Earning Per Share for
previous year presented has been adjusted as required by Accounting
Standard 20 Earning Per Share''.
3 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.
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 Company''s strategy approved by the
Board of Directors, which provide principles on the use of such forward
contracts consistent with the Company''s Risk Management Policy. The
Company does not use forward contracts for speculative purposes.
(a) The following derivative instruments are outstanding as at balance
4 EMPLOYEE BENEFIT OBLIGATIONS:
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). 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 Statement of profit and loss.
*The figures in respect of previous one period is not available.
The contributions expected to be made by the Company during the
financial year 2012-13 amount to Rs 230.18 lacs. Defined-Contribution
Amount recognised as expense and included in the Note 23 —
Contribution to Provident and Other Funds — Rs 413.78 lacs (Previous
Year Rs450.21 lacs).
5 TRADE PAYABLE INCLUDES AMOUNT PAYABLE TO MICRO, SMALL AND MEDIUM
ENTERPRISES AS FOLLOWS:
a The total amount of delayed payments during the year aggregate Rs
37.62 lacs in respect of 7 parties with amounts ranging from Rs 0.57
lacs to Rs 17.11 lacs. (Previous Year Rs 1,552.36 lacs in respect of 61
parties 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 379.67 lacs in respect of 28 parties (Previous Year Rs
339.06 lacs in respect of 35 parties with amounts ranging from Rs 0.06
lacs to Rs 83.39 lacs) with amounts ranging from Rs 0.02 lacs to Rs 166.60
c The total interest payable on account of delayed payment during the
year is Rs 0.12 lacs. The Company has made payment of Rs 34.37 lacs
during the year. The total interest payable aggregates Rs 0.12 lacs
(Previous Year Rs 40.78 lacs) and this entire amount was outstanding as
at the year end.
6 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 22.72
lacs (Previous Year Rs30.44 lacs) in respect of redemption premium
determined on the basis of the internal rate of return. During the year
debentures amounting to Rs 290.40 lacs (Previous Year Rs 189.62 lacs)
were redeemed at a 25% premium which aggregated Rs 72.60 lacs (Previous
Year Rs47.96 lacs).
7 During the year, Rallis Australasia Pty. Ltd. a subsidiary of the
Company has been liquidated. The Company has received an amount of Rs
107.69 lacs as a surplus over its investment on account of liquidation.
8 Previous years''s figures have been regrouped / restated wherever
necessary to conform to the classification of the current year.