Rallis India

Rs. lacs
                                 As at      As at
                            31st March,     31st March,
                                  2009      2008
 
 1.  Contingent Liabilities :-
 
 (a) Demand contested by the Company
 
 - Sales tax                        1,651.18          1,637.50
 - Excise duty                        378.77          1,211.86
 - Customs Duty                       144.10            744.70
 - Income Tax                       1,455.55          1,315.94
 - Service tax                          1.85              1.85
 - Property cases                      65.56             63.56
 - Labour cases                       197.86            184.39
 - Other Cases                        536.87            535.73
 
 -Number of cases where amount is 
 not quantifiable 26 Nos.; (Previous
 Year 28 Nos.)
 
 (b) Bills discounted                 987.36          2,092.84
 
 (c) Uncalled partly paid shares held 
 as Investments                         4.34              4.34
 
 (d) A guarantee of Rs. 273.12 lacs (Previous Year Rs. 273.12 lacs) has
 been issued by the Company at the request of its wholly owned
 subsidiary in favour of its lending bank.
 
 (e) Other guarantees given to Government authorities for which the
 Company is contingently liable to Rs. 85.80 lacs (Previous Year Rs.
 132.16 lacs).
 
 (f) Recourse guarantee amounting to Rs. NIL (Previous Year Rs. 453.00
 lacs) has been given by the Company in respect of channel finance
 provided to its dealers by banks.
 
 The Company does not expect any liability in respect of item (a), (b),
 (d), (e) and (f) 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. 1,703.28 lacs (Previous Year Rs. 1,852.54 lacs)
 including advances paid aggregating Rs. 1,083.94 lacs (Previous Year
 Rs. 238.57 lacs).
 
 3.  Fixed assets include Rs. 769.52 lacs (Previous Year Rs. 821.81
 lacs) representing the book value of assets held for disposal.  The
 Management expects to recover amounts higher than the carrying value of
 these assets.
 
 4.  Amount payable to Micro, Small and Medium Enterprises are as
 follows:
 
 a.  The total amount of delayed payments during the year aggregated to
 Rs. 514.02 lacs in respect of 117 parties (Previous Year Rs. 4,034.79
 lacs in respect of 79 parties with amounts ranging from Rs. 0.01 lac to
 Rs. 701.17 lacs) with amounts ranging from Rs.0.01 lac to Rs.61.74
 lacs.
 
 b.  The amount of principal outstanding in respect of the above as at
 Balance Sheet date is Rs. 100.89 lacs in respect of 30 parties
 (Previous Year Rs. 532.38 lacs in respect of 38 parties with amounts
 ranging from Rs. 0.03 lac to Rs. 410.10 lacs) with amounts ranging from
 Rs.0.06 lac to Rs. 17.66 lacs.
 
 c.  The total interest payable on account of delayed payment aggregates
 to Rs.26.96 lacs (Previous YearRs.25.22 lacs) and this entire amount
 was outstanding as at the year end.
 
 5.  The charge in favour of the Companys bankers by way of
 hypothecation of stocks and receivables has been created to secure
 guarantees executed and bank overdraft and temporary loan facilities
 granted by the bankers in the normal course of business.
 
 6.  Secured Loans :-
 
 a.  Bank overdrafts and temporary loans have been secured by a first
 charge by way of hypothecation of stocks and receivables.
 
 b.  Loans from others on account of purchase of vehicles have been
 secured by way of hypothecation of vehicles.
 
 7.  Sundry Debtors include Rs. 1,062.87 lacs (Previous Year Rs.
 487.08 lacs), being amounts receivable from a company under the same
 Management, Rallis Australasia Pvt. Ltd. (RAPL) (wholly owned
 subsidiary).
 
 Also, induded inLoans and Advancesis a sum of \Rs.Nil
 (PreviousYearRs.Nil) being amounts loaned to RAPL. The maximum amount
 outstanding during the year was Rs. Nil (Previous Year Rs. 35.83 lacs).
 
 8.  Consumption of raw materials, packing materials and stores and
 spare parts includes provisions of Rs. 280.95 lacs (Previous
 YearRs.310.49lacs) for slow, non-moving and damaged stocks.
 
 9.  Operating Expenses includes net loss of Rs. 452.87 Lacs (Previous
 Year net gain Rs. 60.27 lacs grouped under Other Income) on account
 of foreign currency translation differences.
 
 10.  Segment Reporting :-
 
 The Company has determined its business segment as Agri -
 lnputscomprising of Pesticides, Plant Growth Nutrients and Seeds. The
 other business segment comprises Fine Chemicals and is
 non-reportable.
 
 11. The Company has invested Rs. 880.00 lacs in Non-Convertible
 Debentures (NCDs) of Advinus Therapeutics Pvt. Ltd. The NCDs carry a
 coupon rate of 4.25% and will be redeemed in three equal instalments in
 the years 2011,2012 and 2013 at a premium of 25%. Income recognised
 during the year includes Rs. 33.32 lacs (Previous Year Rs. 33.32 lacs)
 in respect of redemption premium determined on the basis of the
 Internal Rate of Return.
 
 12.  Employee Benefit Obligations :-
 
 Defined-Contribution Plans
 
 The Company makes contribution towards provident fund, family pension
 fund and superannuation fund to a defined contribution retirement
 benefit plan 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. Under the schemes, the Company is required to
 contribute aspecified 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 para 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.382.31 lacs (Previous Year Rs. 344.10 lacs) has been
 charged to the revenue account in this respect.
 
 Defined-Benefits Plans
 
 The Company offers its employees defiried-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. On adoption of the revised
 Accounting Standard, (AS) -15 on Employee Benefits prescribed under
 Section 211(3C) of the Indian Companies Act 1956, 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.
 
 13.  Accelerated Depreciation :-
 
 During the year, on the basis of estimates of the Companys technical
 staff, the Company has accelerated its depreciation charge on certain
 facilities which were used for manufacture of products which are
 currently discontinued. These assets have been brought down to the
 terminal value and the rates applied are numerous and cannot be
 meaningfully listed in the financial statements. As a result the
 depreciation charge for the year is higher by Rs. 598.49 lacs and the
 profit for the year, after adjusting the reduction in deferred tax
 liability of Rs. 203.42 lacs, lower by Rs. 395.06 lacs.
 
 14.  Profit on sale of assets includes a profit of Rs. Nil on sale of
 land and building (Previous Year Rs. 8,741.76 lacs).
 
 15.  Previous years figures have been regrouped/restated wherever
 necessary to conform to the classification of the current.