Syngenta India

Rupees 000 
                                               31.03.2009    31.03.2008
 
 1 Contingent Liabilities not provided for
 
 Claims against the Company not acknowledged as debts
 
 Excise matters                                      500             500
 Other matters                                      6,663          23,434
 
 (The contingent liabilities, if materialised, shall entirely be borne
 by the company, as there is no likely reimbursement from any other
 party.)
 
 Note : The above excludes provision for leave encashment,
 superannuation fund and gratuity which are determined based on
 actuarial valuation done on an overall basis for the Company.
 
 2 Employee Benefits
 
 The Company have adopted the Revised Accounting Standard AS15 on
 employee benefits with effect from January 1, 2007 as required by
 Institute of Chartered Accountants of India.
 
 General Description of Defined Benefit plan
 
 Gratuity
 
 The Company operates different type of Gratuity plans wherein every
 employee is entitled to the benefit equivalent to fifteen days or one
 month salary last drawn for each completed year of service depending on
 the date of joining and eligibility terms. The same is payable on
 termination of service or retirement whichever is earlier. The benefit
 vests after five years of continuous service.
 
 Provident Fund
 
 The Company manages Provident Fund plan through a Provident Fund Trust
 for its employees which is permitted under The Employees Provident
 Fund and Miscellaneous Provisions Act, 1952. The plan envisages
 contribution by employer and employees and guarantee interest at the
 rate notified by the Provident Fund Authority. The contribution by
 employer and employee, together with interest, are payable at the time
 of separation from service or retirement, whichever is earlier. The
 benefit under this plan vests immediately on rendering of service.
 
 The Guidance Note on implementing AS-15, Employee Benefits (revised
 2005) issued by the Accounting Standard Board (ASB) states that
 provident funds set up by employers, which requires interest shortfall
 to be met by the employer, needs to be treated as defined benefit plan.
 Pending the issuance of the Guidance Note from the Actuarial Society of
 India, the companys actuary has expressed his inability to reliably
 measure the provident fund liability.  However, the company, on a
 conservative basis has made a provision for the deficit in the fund.
 
 Pension Benefit Scheme
 
 Under the Companys Pension Scheme, certain categories of employees, on
 retirement, are eligible for monthly pension which is accounted for on
 an actuarial basis as on the Balance Sheet date.
 
 Post Retirement Medical Benefit (PRMB)
 
 Under the Companys Medical Benefit Scheme , certain categories of
 employees , on retirement are eligible for yearly payout of
 Rs.7,500/-from the year of retirement till the date of death.
 
 The following tables summaries the components of net benefit expense
 recognised in the profit and loss account and the funded status and
 amounts recognised in the balance sheet for the respective plans.
 
 Notes:
 
 1 Components and spare parts referred to in para 4D(c) of Part II of
 Schedule VI to the Companies Act 1956, are assumed to be those
 incorporated in the goods produced and not those used for maintenance
 of plant and machinery.
 
 2 Consumption of raw materials includes:
 
 - Consumption by third parties under contract with the Company
 
 - Consumption on account of manufacturing of samples
 
 Notes:
 
 1 Since the Companys installation can technically be considered as a
 multi-purpose plant, its capacity is necessarily variable in line
 with process improvements and the product/pack mix adopted from time to
 time. The figures given in relation to installed capacity, are
 therefore, approximate and refer to the product/pack mix of the year.
 
 2 @ Installed capacities are as certified by the Management, but not
 verified by the Auditors, being a technical matter and excludes
 installed capacity of third party.
 
 3 Actual production includes:
 
 (i) Quantities produced by third parties under contract with the
 Company.
 
 (ii) Quantities of samples.
 
 (iii) Quantities for captive consumption.
 
 Notes :
 
 1 Business Segments :
 
 The Company is organised into two business segments: Crop Protection
 and Seeds, based on internal management accounts. The Crop Protection
 division of the company mainly manufactures, distributes and sells
 herbicides, insecticides and fungicides. The Seeds division mainly
 sells seeds for growing corn, oilseeds, vegetables and flowers.
 
 2 Geographical Segment:
 
 For the purpose of geographical segment the consolidated sales are
 divided into two segments - India and outside India.
 
 3 Common cost represents corporate unallocable cost which includes
 general income & expense items which are not allocated to any business
 segments.
 
 4 The analysis of secondary segmental reporting is based on the
 geographical location of the customer & geographical location of the
 asset.
 
 3 Related party disclosures as required under AS-18, Related Party
 Disclosures, are given below:
 
 (a) Name and nature of relationship of the Related Party where Control
 exists :
 
 Syngenta Participation AG , Switzerland : Holding Company (holds
 16,246,450 equity shares i.e. 50.99% of the equity share capital as at
 the year end, and is the wholly owned subsidiary of Syngenta AG,
 Switzerland)
 
 Syngenta South Asia AG (holds 14,434,178 equity shares i.e.45.30% of
 the equity capital as at the year end, and is the wholly owned
 subsidiary of Syngenta AG, Switzerland)
 
 * The company has initiated the process off identification of suppliers
 registered under Micro, Small and Medium Enterprise Development Act,
 2006, by obtaining confirmations from all suppliers. Information has
 been collated only to the extent of information received as at balance
 sheet date.
 
 4 The company had changed the accounting year in the Previous year
 from 31st December to 31st March. The Previous year accounting period
 was for fifteen months ended March 31,2008, where as current accounting
 period is for twelve months ended March 31, 2009. The figures for the
 current period are therefore not comparable with corresponding figures
 of the previous year.
 
 5 The figures in respect of the previous year have been regrouped,
 wherever necessary to conform to this years classification.