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-1.9 (-1.12%)
-1.15 (-0.67%) | Notes to Accounts | Year End : Mar '12 |
1. Contingent Liabilities Not Provided For
a) Claims against the Company not acknowledged as debts:
As at March 31, 2012 As at March 31, 2011
(Rs lakhs) (Rs lakhs)
Excise duty, customs duty
and service tax* @ 5924.08 5865.44
Sales Tax** @ 1225.28 925.42
Income Tax 356.82 976.37
Stamp Duty**** 2881.55 2881.55
Others *** 474.33 94.43
* Amount deposited Rs 315.92 lakhs (Previous year - Rs 315.92 lakhs)
** Amount deposited Rs 7.16 lakhs (Previous Year - Rs 7.16 lakhs)
*** Amount deposited Rs 8.00 lakhs (Previous Year Rs 8.00 lakhs)
**** In the matter of acquisition of the Tyrecord Division at Malanpur
from Ceat Limited the Collector of Stamps, Bhind (Madhya Pradesh) has
by his order dated 07.11.2001 assessed the value of the subject matter
of the Deed of Conveyance dated 13.06.1996 at Rs 30300 lakhs and levied
a stamp duty of Rs 2372.50 lakhs and imposed a penalty of Rs 509.05
lakhs. The said demand was challenged before the High Court of Madhya
Pradesh Bench at Gwalior. The High Court accepted the case of the
Company that the subject matter of the Deed of Conveyance dated
13.06.1996 is only the superstructures valued at Rs 2776.18 lakhs and
not the entire undertaking valued at Rs 30300.00 lakhs as claimed by
the State. Consequently, the High Court of Madhya Pradesh quashed the
order and demands issued by the Collector of Stamps, Bhind (Madhya
Pradesh) and allowed the writ petition by an order dated 29th November
2004. Against the said order, the State of Madhya Pradesh preferred a
Special Leave Petition before the Hon''ble Supreme Court which the State
of Madhya Pradesh has withdrawn to enable it to approach the Hon''ble
High Court of Madhya Pradesh at Gwalior in view of the change in law in
the State of Madhya Pradesh relating to Letters Patent Appeal.
@ As per Business Transfer Agreement with KAMA Holdings Limited, the
liabilities of Rs 1793.81 lakhs (Previous Year - Rs 1793.81
lakhs) and Rs 38.00 lakhs (Previous Year - Rs 38.00 lakhs) respectively
towards Excise Duty and Sales tax are covered under Representations and
Warranties.
All the above matters are subject to legal proceedings in the ordinary
course of business. In the opinion of the management, the legal
proceedings, when ultimately concluded, will not have a material effect
on the results of the operations or financial position of the Company.
b) Liability on account of Bank Guarantees Rs 1260.26 lakhs (Previous
Year Rs 1137.53 lakhs)
c) Guarantees given to banks for repayment of financial facilities
availed by wholly owned subsidiaries:
(i) USD 20.00 million (Previous Year USD 20.00 million). Outstanding
amount as at the year-end is USD 20.00 million (Previous Year USD
20.00 million)
(ii) Nil (Previous Year AED 10.35 million) and Nil (Previous Year
Euro 0.20 million). Outstanding amount as at the year-end is Nil
(Previous Year Nil)
(iii) USD 15.00 million (Previous Year Nil). Outstanding amount as at
the year-end is USD 13.00 million (Previous Year Nil).
(iv) USD 16.00 million (Previous Year Nil). Outstanding amount as at
year end is EURO 11.25 million (Previous Year Nil).
(v) EURO 3.50 million (Previous Year Nil). Outstanding amount as at
year end is EURO 3.50 million (Previous Year Nil)
d) Guarantees given to banks for repayment of financial facilities
availed by others Rs 250.00 lakhs (Previous Year Nil). Outstanding
amount as at the year-end is Nil (Previous Year Nil).
e) The Company has been served with show cause notices regarding
certain transactions as to why additional customs / excise duty
amounting to Rs 72.24 lakhs (Previous year - Rs 76.04 lakhs) should not
be levied. The Company has been advised that the contention of the
department is not tenable and hence the show cause notice may not be
sustainable.
2. Capital and other commitments
The estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) amounts to Rs 10233.03
lakhs (Previous Year - Rs 12965.89 lakhs).
Further, the Company is to make the following investments:
i) Capital expenditure projects for Packaging Films Business in South
Africa and Thailand USD 89.50 million (equivalent to Rs 45528.65
lakhs) (Previous Year Nil).
ii) SRF Holiday Home Limited Rs 309.00 lakhs (Previous Year Rs
353.00 lakhs)
The Company has other commitments, for purchase / sales orders which
are issued after considering requirements per operating cycle for
purchase / sale of goods and services, employee benefits including
union agreements in normal course of business. The Company does not
have any other long term commitments or material non-cancellable
contractual commitments / contracts, which might have material impact
on the financial statements.
3. Employee Benefits
The Company has classified various benefits provided to employees as
under: i) Defined contribution plans
a) Superannuation fund
b) Provident fund administered through Regional Provident Fund
Commissioner
c) Employees'' State Insurance Corporation
The expenses incurred on account of the above benefits have been
included in Note 25 Employee Benefits Expenses under the head
Contribution to provident and other funds
ii) Defined benefit plans
a) Gratuity
b) Compensated absences earned leaves
c) Provident fund for certain category of employees administered
through a recognized provident fund trust
Long Term Retention Pay
The Company has a Long Term Retention Pay Plan extending over 3 years.
The plan covers employees selected on the basis of their current band
and their long term value to the Company. The incentive is payable in
three years starting from financial year 2010-11 subject to achievement
of certain performance ratings. Based on the management estimate, the
Company has accrued Rs 259.39 lakhs (Previous Year Rs 295.52 lakhs)
towards this plan till March 31, 2012.
Superannuation - Defined Contribution Plan where contributions are made
to a Trust which in turn contributes to ICICI Prudential Life Insurance
Co. Limited
Apart from being covered under the Gratuity Plan described above, the
employees of the Company also participate in a defined contribution
superannuation plan maintained by the Company. The Company has no
further obligations under the plan except making annual contributions
based on a specified percentage of each covered employee''s salary. From
1st November, 2006, the Company provided an option to the employees to
receive the said benefit as cash compensation along with salary in lieu
of the superannuation benefit. Thus, no contribution is required to be
made for the category of employees who opted to receive the benefit in
cash.
Provident Fund - Defined Contribution Plan
In addition to the above benefits, all employees are entitled to
Provident Fund benefits as per the law. For certain category of
employees the Company administers the benefits through a recognized
Provident fund trust. For other employees contributions are made to the
regional Provident Fund Commissioners as per law. The Government
mandates the annual yield to be provided to the employees on their
corpus. For the first category of employees (covered by the Trust), the
Company has an obligation to make good the shortfall, if any, between
the yield on the investments of the trust and the yield mandated by the
Government.
4. Segment Reporting
A. Business Segments
Based on the guiding principles laid down in Accounting Standard (AS) -
17 Segment Reporting, the Company''s business segments include:
- Technical Textiles Business: includes nylon tyre cord fabric, belting
fabric, coated fabric, laminated fabric, polyester tyre cord fabric and
industrial yarns and its research and development
- Chemicals and Polymers Business: includes refrigerant gases,
chloromethanes, pharmaceuticals, Certified Emissions Reductions &
Allied products, Engineering Plastics business and its research and
development.
- Packaging Film Business includes Polyester Films.
Segment revenue, Results and Capital Employed include the respective
amounts identifiable to each of the segments. Other unallocable
expenditure includes expenses incurred on common services provided to
the segments, which are not directly identifiable.
In addition to the significant accounting policies applicable to the
business segments as set out in note 1 above, the accounting policies
in relation to segment accounting are as under: -
a) Segment revenue and expenses
Joint revenue and expenses of segments are allocated amongst them on a
reasonable basis. All other segment revenue and expenses are directly
attributable to the segments.
b) Segment assets and liabilities
Segment assets include all operating assets used by a segment and
consist principally of operating cash, debtors, inventories and fixed
assets, net of allowances and provisions, which are reported as direct
offsets in the balance sheet. Segment liabilities include all operating
liabilities and consist principally of creditors and accrued
liabilities and do not include deferred income taxes. While most of the
assets / liabilities can be directly attributed to individual segments,
the carrying amount of certain assets / liabilities pertaining to two
or more segments are allocated to the segments on a reasonable basis.
5. The Revised Schedule VI has become effective from April 1, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year''s figures have been regrouped / reclassified,
wherever necessary, to correspond with the current year''s
classification / disclosure. |
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| Source : Dion Global Solutions Limited | |
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