Sree Rayalaseema Hi-Strength Hypo Ltd. இன் கணக்கு குறிப்புகள்
Mar 31, 2023
The Company obtains independent valuations for its investment properties annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:
(i) current prices in an active market for properties of different nature
(ii) recent prices of similar properties in less active markets, adjusted to reflect those differences
The main input used is the price per square metre as per state government''s registration and stamps department rate for the property. All resulting fair value estimates for investment properties are included in level 2.
The average credit period on sales is 60 days
No interest is charged on trade receivables for delay in payment beyond credit period from the due date of the Invoice.
The Company has used a practical experience by computing the expected credit loss allowance for Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates are given in the provision matrix. The provision matrix at the end of the Reporting Period is as follows :
No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.
Before accepting any new customer, the Company uses an external credit scoring system and other potential information to assess the customer credit quality and defines credit limit. The limit and scoring attributable to customer are reviewed periodically.
(ii) Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of other reserves General Reserve
As General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to profit or loss.
FVTOCI intruments
The Company has elected to recognise changes in the fair value of certain investments in equity and preference securities in other comprehensive income. These changes are accumulated within the FVTOCI investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant securities are derecognised.
(a) The term loan from banks are secured by exclusive charge on specific fixed assets.
(b) The loan repayable on demand from banks are cash credits, bills purchases, discountings, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.
(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.
(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in thier individual capacities
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.
There are no transfers between levels 1 and 2 during the year.
NOTE 41: CAPITAL MANAGEMENT & RISK MANAGEMENT
Capital Management
The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.
The Companyâs capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings.
The Company is not subject to any externally imposed capital requirements. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.
Financial risk management and objectives and policies
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.
A Special Team with Senior Executives having exposure in various fields has been formed to assist Cheif Financial Officer (CFO) in (a) Overseeing and approving the Company''s enterprise wide risk management framework, and(b) Overseeing that all the risks that the organisation faces such as market risk (including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks.
The CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Company''s management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.
A. Market risk
The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/liabilities affected by this risk are borrowings, letter of credits and trade receivables.
The Company''s investments in equity securities are susceptible to price risk arising from uncertainities about future value of the investment secutities. The Company''s non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The Company''s Board of Directors reviews and approves all equity investment decisions.
Foreign currency risk management
The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.
The special team as mentioned above analysis the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk. The Company manages by having a balanced portfolio of variable and fixed interest rate borrowings.
Interest rate sensitivity:
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating base rate borrowings, as follows:
B. Credit risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the marketing department and in case the limits are exceeded, steps will be taken by the marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by letters of credit or advance receipts. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.âExport sales are fully secured through letters of credit or against advance receipts. (refer Note No.9 for Trade Receivbles outstanding).
C. Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
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42. CONTINGENT LIABILITIES AND COMMITMENTS: (to the extent not provided for) |
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Particulars |
Year Ended 31st March, 2023 |
Year Ended 31st March, 2022 |
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Contingent liabilities a) Claims against company not acknowledged as debts (Income tax dues under dispute and GST under dispute pending in Appeal) b) Guarantees issued by banks on behalf of the Company and outstanding at end of the year |
149.59 152.27 |
50.79 12,261.33 |
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Commitments a) Unexpired letters of credit established by the Company ^- |
4,607.05 |
6,159.11 -y |
43. EMPLOYEE BENEFITS:
A) Defined contribution plans
Employees contribution to provident fund and employees state insurance (ESI) are recognized as expenditure in statement of profit and loss account, as they are incurred. there are no other obligation other than the contribution payable to aforesaid respective Trust/Government Authorities
B) Defined benefit plan
The Company''s obligation towards the Gratuity (Lic) is a defined benefit plan and is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefits scheme and the amount recognised in financial statements as per Acturial Valuation:
LEASES:
The Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount as if the standard had been applied since the commencement date of the lease, but discounted at the Company''s incremental borrowing rate at the date of initial application.
The Company has taken a portion of factory land, office premises and movable assets (hydrozen cylinders) on operating lease. And the company has given a portion of land, hatchery unit on operating lease.
C. Lease receipts recognized in the Profit and Loss Account is ''48.91 Lakhs during the
year ended March 31,2023.
45. SEGMENT REPORTING:
Ind AS 108, Operating segments, establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographical areas and major customers. The Company''s operations predominantly relate to manufacturing of chemicals, real estate, trading of coal and power generation. The Chief Operating Decision Making (CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along business segments.The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segements, and are as set out in the accounting policies.
49. REVENUE FROM CONTRACTS WITH CUSTOMERS:
The Company is producer of calcium hypochlorite, sulphuricacid, stable bleaching powder, hydrogen gas, sodium methoxide, sodium hydride and also in coal trading and generation and distribution of Power.
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.
Revenue from sale of goods is recognized when control of the products being sold is transferred to our customer and when there are no longer any unfulfilled obligations.
The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
Income from services rendered is recognizedbased on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.
Interest income is recognized using the effective interest rate (EIR) method.
Dividend income on investments is recognized when the right to receive dividend is established.
The Company represents revenue net of indirect taxes in its Statement of Profit and Loss.
G. Remaining performance obligations
The remaining performance obligation disclosure provides the aggregate amount of transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.
Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of entity''s performance completed to date.
The aggregate amount of transaction price allocated to remaining performance obligations as per the requirements of Ind AS 115 is '' 6,238.65 Lakhs out of which, 100% is expected to be recognized as revenues within one year.
52. CONFIRMATION OF BALANCES
Confirmation of balances from certain parties for amounts due to them or due from them are yet to be received confirmation letters were received from some of the parties. And as per the letter of confirmation the balances are deemed to be accepted if not responded with in 15 days.
1. Total debt = Long term Borrowings (including current maturities of Long term borrowings), Sales tax deferrment loans
(Current and non-current), short term borrowings and Interest accrued on debts
2. Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations interest other adjustments like loss on sale of Fixed assets etc
3. Debt service = Interest & Lease Payments Principal Repayments
4. Avg. Shareholder''s Equity = Average of opening total equity and closing total equity
5. Avg. Inventory = Average of opening inventory and closing inventory
6. Avg. Trade Receivable = Average of opening trade receivables and closing trade receivables
7. Avg. Trade Payables = Average of Opening Trade Payables and Closing Trade Payables
8. Working capital shall be calculated as current assets minus current liabilities
9. Capital employed = Tangible Net Worth (excluding revaluation reserve) Total debt Deferred tax liability
10. Average total Assets = Average of opening total assets and closing total assets
11. Average total equity = Average of opening equity share capital other equity and closing equity share capital other equity.
Additional Regulatory Information:
(1) The Company has not granted any loans or Advances in the nature of Loans to Promoters, Directors, KMPs and other related parties except ''1171.53 lakhs to subsidiaries (note12) which are without specifying terms and period of repayment and constitutes 100% of total advances.
(2) The Company has no investment property as at the close of the year for fair valuation. The company has not revalued its Property Plant and Equipment (including Right of use Assets).
(3) The Company is not holding any Benami property and no proceeding has been initiated or pending against the company.
(4) The Company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961(such as search or survey or any relevant provisions of Income Tax Act, 1961)
(5) (A) The Company has not advanced or loaned or invested any funds in any other person(s)
or entity(ies), including foreign entities (intermediaries) with understanding that the intermediary shall be directly or indirectly lend or invest in other person or entitites on behalf of the company or provide any gurantee or security or the like to or on behalf of the company.
(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party) with the understanding that the company shall lend or
invest in other person or entity indentified in any manner by or on behalf of the funding party/Ultimate beneficiary or provide any guarantee or security or the like on behalf of the funding party/Ultimate beneficiary.
(6) The Company is not declared as willful defaulter by any Bank or Financial institutions or RBI or other lenders.
(7) The Company has borrowings from Banks or Financial institutions on the basis of security of Current Assets. Quarterly returns or Statement of current assets filed by the company with Banks or Financial Institutions are in agreement with the Books of Accounts.
(8) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
(9) The company has no transactions and no relationship with companies struck off under Section 248 of the Companies Act, 201 3 or Section 560 of Companies Act, 1956.
(10) The company has not made any investments through any layers of invesmtment companies.
(11) There are no Schemes of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 201 3.
(12) The Company has not invested or traded in crypto currency or virtual currency during the financial year 2021-22.
55. Figures have been rounded off to the nearest decimal of lakhs as required under Schedule III.
56. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current Year''s classification/ disclosure.
57. Approval of financial statements
The standalone financial statements approved by the Board of Directors in their meeting held on May 30, 2023
Mar 31, 2018
Note 1: General Information
Sree Rayalaseema Hi - Strength Hypo Limited incorporated on 28th March, 2005 It is the leading producer of Calcium Hypo Chloride, Stable Bleaching Powder, Sulphuric Acid and other chemicals.
The Company is a public limited company domiciled in India. The address off its registered office and principal place of business are disclosed in the introduction to the Annual Report. The equity shares of the Company are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The financial statements are approved for issue by the Companyâs Board of Directorâs on 30th May, 2018.
Contingent liability judgement:
Note 2 describes claims against the Company not acknowledged as debt. Contingencies may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum of contingencies inherently involve the exercise of significant judgement and the use of estimates regarding the outcome of future events.
3.1 Standards issued but not yet effective
The standards issued, but not effective up to the date of issuance of Financial Statements is disclosed below:
a. Ind AS 115 - Revenue from contracts with customers
In march, 2018, the Ministry of Company Affairs has notified Ind As 115, âRevenue from contracts with customersâ, which is effective for accounting periods beginning on or after 1 April 2018. This comprehensive new standard will supersede existing revenue recoginition guidance, and requires an entity to recognize revenue to depicit the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements.
Ind AS 115 is effective for annual reporting periods beginning on or after April 1,2018. The company intends to adopt Ind AS 115 effective April 1, 2018, using the modified retrospective method. The adoption of Ind AS 115 is not expected to have a significant impact on the Companyâs recognition of revenues.
b. Other amendments to Indian Accounting Standards;
The Ministry of Corporate Affairs (MCA), on 28 March 2018, issued certain amendments to Ind AS. The amendments relate to the following standards:
Ind AS 21, The Effects of Changes in Foreign Exchange Rates - The amendment lays down the principle regarding advance payment or receipt of consideration denominated or priced in foreign currency and recoginition of non-monetary prepayment asset or deferred income liability.
Ind AS 12, Income Taxes - The amendment explains that determining temporary differences and estimating probable future taxable profit against which deductible temporary differences are assessed for utilization are two separate steps and the carrying amount of an asset is relevant only to determining temporary differences.
Ind AS 28, Investments in Associates and Joint Ventures - The amendment clarifies when a venture capital, mutual fund, unit trust or similar entities elect to initially recognize the investments in associates and joint ventures.
Ind AS 112, Disclosure of Interests in Other Entities - The amendment clarifies that disclosure requirements for interests in other entities also apply to interests that are classified as Held for sale or discontinued operations in accordance with Ind AS 105.
Ind AS 40, Investment Property - The amendment clarifies when a property should be transferred to / from investment property.
The amendments are effective 1 April 2018. The company believes that the aforementioned amendments will not materially impact the financial position, performance or the cash flows of the Company.
Estimation of fair value
The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including:
Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences The main input used is the price per square metre as per state governmentâs registration and stamps department rate for the property.
All resulting fair value estimates for investment properties are included in level 2.
The Company has used a practical expedient by computing the expected credit loss allowance for Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates are given in the provision matrix. The provision matrix at the end of the Reporting Period is as follows :
No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member. Before accepting any new customer, the company uses an external credit scoring system and other potential information to assess the customer credit quality and defines credit limit. The limit and scoring attributable to customer are reviewed periodically.
Terms/ rights attached to equity shares
The company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
As per records of the Company including its register of share holders/members and other declarations received from share holders regarding benificial interest, the above share holding represents legal ownership of shares as at balance sheet date.
The Company declares and pays dividend in indian rupees. In the meeting held on 30th May 2018, the board had recommended a dividend as provided in the accounts is subject to approval of members at the ensuing Annual General Meeting, The Company had four wholly owned Subsidaries which ceased to be subsidiaries from 29th August, 2016.
The Company has issued 24,48,132 convertible warrants in 2017 of which 8,15,329 warrants were converted into equity shares on 26th March, 2018 and 8,58,241 warrants will be converted on or before 30th September, 2018. As per terms of preferential allotment the outstanding 8,58,241 warrants be fully convertible into equal number of shares.
On 30th May, 2018 the Board of directors have proposed a dividend of Rs.2/- (Two) per equity share in respect of the year ended 31st March, 2018 subject to approval of the shareholders in the Annual General Meeting. If approved, dividend would be paid to shareholders on the record date resulting in a cash out flow of Rs.392.53 Lakhs inclusive of dividend distribution tax of Rs.66.40 Lakhs
Nature and purpose of other reserves Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.
General Reserve
The General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purpose. As General Reserve is created by a transfer from one component of Equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to profit or loss.
FVTOCI intruments
The Company has elected to recognise changes in the fair value of certain investments in equity and preference securities in other comprehensive income. These changes are accumulated within the FVTOCI investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant securities are derecognised.
Money received against warrants
The above amounts were received at 25% upfront for the share warrants issued pending conversion on or before 30th September, 2018 on payment of balance 75% of issue price.
Security
(a) The term loan from banks are secured by exclusive charge on specific fixed assets.
(b) The loan repayable on demand from banks are cash credits, bills purchases, discountings, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.
(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.
(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in individual capacities
During the Current Year, the Tax Liability under normal Provisions of the Income Tax Act, 1961 is less than the Tax Liability under MAT Provisions of Income Tax Act, 1961 as detailed below. Hence, the Company is required to pay the tax under MAT Provisions of Income Tax Act, 1961. Accordingly, MAT credit Entitlement reflects the difference between the normal tax and tax under MAT Provisions.
The income tax expense for the year can be reconciled to the accounting profit as follows :
4. Employee Benefits:
A) Defined Contribution Plans
Employers contribution to provident fund and Employees state insurance are recognized as expenditure in statement of profit and loss account, as they are incurred. There are no other obligation other than the contribution payable to aforesaid respective Trust/ Government Authorities
B) Defined Benefit Plan
The Companyâs obligation towards the Gratuity Fund is a defined benefit plan and is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefits scheme and the amount recognised in financial statements as per Acturial Valuation:
Operating lease:
The Company has taken a portion of factory land, office premises and movable assets(hydrozen cylinders) on operating lease. And the company has given a portion of land, hatchery unit on operating lease. The expenses on such lease rentals recognized in the statement of profit and loss for the year ended31st March,2018 are given hereunder.
A. The total future commitments on Lease Payments are detailed hereunder:
C. Lease Payments recognized in the Profit and Loss Account is Rs.204.57 Lakhs during the year 2017-18.
D. Lease Receipts recognized in the Profit and Loss Account is Rs.14.82 Lakhs during the year 2017-18.
Note No. 5. Related Party Disclosures
As required under Ind As 24, Related Party Disclosures, the following are the related parties identified, transactions with such related parties during the year ended 31st March, 2018 an the balances as on that date are given below:
Note 6: Capital Management & Risk management Capital management
The Company being in a capital intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.The Companyâs capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings. The Company is not subject to any externally imposed capital requirements. The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align maturity profile of its debt commensurate with life of the assets, and closely monitors its judicious allocation amongst competing capital expansion projects to capture market opportunities at minimum risk.
Gearing ratio
The Company monitors its capital using gearing ratio as given below:
*Total Debt is defined as secured long-term including current maturities of borrowings. Financial risk management and objectives and policies
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact in the financial statements.
A Special Team with Senior Executives having exposure in various fields has been formed to assist Cheif Financial Officer (CFO) in :
(a) Overseeing and approving the Companyâs enterprise wide risk management framework, and
(b) Overseeing that all the risks that the organisation faces such as market risk(including currency risk, interest rate risk and other price risk), Credit risk and liquidity risk have been identified and assessed and there is an adequate risk management infrastructure in place capable of addressing those risks.The CFO, monitors and reports on the principal risks and uncertainties that can impact the company and its ability to achieve strategic objectives. The Companyâs management systems, organisational structures, processes, standards, code of conduct and behaviors together form the Management and business of the Company.
A.Market risk
The Company is exposed to market risk through changes in foreign currency exchange rates and changes in interest rates. Financial assets/liabilities affected by this risk are borrowings, letter of credits and trade receivables.
The Companyâs investments in equity securities are susceptible to price risk arising from uncertainities about future value of the investment secutities. The Companyâs non-current investment in equity shares are strategic investments and hence are considered as Fair Value through Other Comprehensive Income. The companyâs Board of Directors reviews and approves all equity investment decisions.
Foreign Currency risk management
The Company operates internationally and is exposed to foreign currency risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from import as well as exports of goods. The risk is measured through a forecast of highly probable foreign currency cash flows.
The special team as mentioned above analysis the options for hedging. Based on the analysis the management takes decision regarding hedging of foreign currency exposures. Currently, the Company has not hedged any of the foreign currency transactions in the veiw of the natural hedging. The natural hedging is sufficient to manage the current foreign currency risk management.
The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities are restated at the end of each reporting period. The same at the end of the reporting period are as follows :
Foreign Currency Sensitivity Analysis
The Company is mainly exposed to US Dollor.
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The Companyâs exposure to foreign currency changes for all other currencies is not material.
Interest Rate Risk Management
Interest rate risk is the risk that the fair value or future cash flows of a financial intruments will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs borrowings with floating base interest rates. Based on the interest rate sensitivity the Company decides on the management of interest rate risk. The Company manages by having a balanced portfolio of variable and fixed interest rate borrowings.
Interest Rate Sensitivity:
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating base rate borrowings, as follows: _
B. Credit risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is operating through network of dealers based at different locations. Regular monitoring of the receivables is undertaken by the Marketing Department and in case the limits are exceeded, steps will be taken by the Marketing departments and after discussing with the management the Company will decide whether to stop or not further supplies to the concerned dealer till the amount outstanding is recovered. For the export made by the Company, the sales are backed by letters of credit or advance receipts. The internal risk management committee of the Company meets regularly to discuss the dealers and credit risks, measures taken to address them and the status and level of risk after the measures taken.Export sales are fully secured through letters of credit or against advance receipts. (refer Note No.8(a) for Trade Receivbles outstanding).
C. Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining availability under committed credit lines.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
(i) Financing arrangements
The table below provides details regarding the remaining contractual maturities of financial liabilities as at reporting date
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.
There are no transfers between levels 1 and 2 during the year.
7. Income and expenditure in foreign currency and Foreign Currency Exposures earning in foreign currency
8. The Company identified Micro, Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro, Small and Medium Enterprises. The principal amounts outstandinaas on 31-03-2018 and remaining unpaid to any Micro, Small and MediumEnterprises is Rs 80.01 and the said amounts are due for less than 45 days as on 31-03-2018. Hence, excepting above, there is no reportable information under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act, 2006 read with part I of Schedule VI to the Companies Act, 2013.
Note 9: First-time adoption of Ind AS Transition to Ind AS:
These are the Companyâs first financial statements prepared in accordance with Ind AS.The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (date of transition). In preparing opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.
Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
Ind AS optional exemptions Business combinations
Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.
The Company has elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investment in subsidaries. Deemed cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for investment property covered by Ind AS 40 Investment Properties.Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value. Designation of financial instruments
Ind AS 101 allows an entity to make an irrevocable option at initial recognition for investments in equity instrument not held for trading to measure at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.The Company has elected to apply this exemption for its investment in equity instruments.
Leases
Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.The Company has elected to apply this exemption for such contracts/arrangements.
Ind AS mandatory exemptions Estimates
An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:- Investment in instruments carried at FVOCI; and- Impairment of financial assets based on expected credit loss model.
De-recognition of financial assets and liabilities
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
Notes:
a) Under IGAAP transaction costs incurred towards origination of borrowings were either capitalised or recognised in the Statement of Profit or Loss. Whereas, under Ind AS these transaction costs are deducted from the carrying amount of borrowings on initial recognition. These costs are then capitalised or recognised in the Statement of Profit or Loss over the tenure of borrowings as part of the interest expense by applying the effective interest method. The corresponding adjustments have been recognised in retained earnings as at the date of transition and subsequently in the Statement of Profit or Loss.
b) Under IGAAP provisions for trade receivables are provided based on the best judgement of management after analysing the facts and circumstances. Whereas, Under Ind AS the trade receivables are subject to Expected Credit Loss model. Impairment loss allowance is made in financial statements after considering âExpected Credit Loss modelâ.
c) Under IGAAP Long-term Investments are usually carried at cost. Whereas under Ind AS Long-term Investments are measured at fair value and resulting fair value changes are recognised through Other Comprehensive Income (OCI).
d) Under previous GAAP, dividends on Equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends together with dividend distribution tax are recognised when approved by the members in the General Meeting.
e) IGAAP requires deferred tax accounting using income statement approach i.e recognising tax effect on timing difference between the accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e tax effect on temporary differences between carrying amount and tax base. Also deferred taxes are recognised on account of the above mentioned changes.
Footnotes to the reconciliation of equity as at April 1st, 2016 and March 31, 2017 and total comprehensive income for the year ended March 31, 2017:
10.1 Investment property:
Ind AS 40 Investment property defines property (i.e land or a buildingâor part of a buildingâor both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation or both as Investment property.Such properties identified by the Company are classified as Investment property in the balance sheet. The Investment properties are measured at cost and any incidental expenses have been added to the investment property. There is no impact on the total equity or profit as a result of this adjustment.
10.2 Fair valuation of investments:
Under IGAAP Long-term Investments are usually carried at cost. Whereas under Ind AS 109 Financial Instruments, the equity instruments not held for trading, an entity can make an irrevocable option at initial recognition and measure the same at fair value and resulting fair value changes are recognised through Other Comprehensive Income (OCI).The Company has measured the equity instruments at fair value through OCI and gains/ losses if any has been recognised through OCI.
10.3 Trade receivables
As per Ind AS 109 Financial Instruments, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. Impairment loss allowance is made in financial statements after considering âExpected Credit Loss modelâ. Where as under IGAAP provisions for trade receivables are provided based on the best judgement of management after analysing the facts and circumstances.
10.4 Borrowings
Ind AS 109 Financial Instruments, requires transaction costs to be deducted from the carrying amount of borrowings on initial recognition. These costs are then capitalised or recognised in the Statement of Profit or Loss over the tenure of borrowings as part of the interest expense by applying the effective interest method. The corresponding adjustments have been recognised in retained earnings and to fixed assets as at the date of transition and subsequently in the Statement of Profit or Loss.
10.5 Deposits
As per the current accounting system in India, there is no specific treatment defined for any kind of security deposits which are being taken/ given in normal course of business by an entity and all such deposits that are refundable shown at their respective transaction values.Under Ind AS 109, Financial Instruments Deposits which are being given/ received from parties on account of return in future (refund period is certain) in cash will be discounted and will be shown at their present value at the time of its initial recognition. These present value calculated as mentioned in above will be treated as fair values of these securities deposits and it will be recognized as financial asset/ liabilities accordingly.Subsequently, these fair valued deposit amounts will charged for finance expense/ income using discount rate which was used for discounting initially (or the new one if there is any change subsequently) and accordingly will be transferred/ charged to PL and at the same time prepaid exp/ deferred income will be released to PL using some systematic allocation.
10.6 Re-measurement of post-employment benefit plans
Under IGAAP remeasurement gains and losses relating to post employment benefits based on actuarial valuation were forming part of the Statement of Profit and Loss. Whereas under Ind AS these measurements are recognised through Other Comprehensive Income (OCI).
10.7 Deferred tax
IGAAP requires deferred tax accounting using income statement approach i.e recognising tax effect on timing difference between the accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e tax effect on temporary differences between carrying amount and tax base. Also deferred taxes are recognised on account of the above mentioned changes.
10.8 Dividend payable
Under Indian GAAP, proposed dividends including DDT are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is approved by shareholders in a general meeting.
10.9 Retained earnings
Retained earnings as at April 1, 2016 have been adjusted consequent to the above Ind AS transition adjustments.
10.10 0ther comprehensive income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans, fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.
11 Confirmation of balances.
Confirmation of balances from certain parties for amounts due to them or due from them is yet to be received. Confirmation letters were received from some of the parties. No material discrepancies are observed.
12 Regrouped/ Rearranged/ Reclassified.
Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current yearâs disclosures and figures.
13 Rounding off
Figures shown in the Financial Statements have been rounded off to the nearest Rupee.
Signature to note 1 to 39
Mar 31, 2016
1. Rights, preferences and restrictions
The company has only one class of share capital being Equity Shares having a face value of Rs. 10/- per share. Each share holder is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend payable on equity shares is subjected to recommendations of Board of Directors and share holders in Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportionate to their share holdings.
2. The Company declare and pays dividend in Indian rupees. In the meeting held on 30th May, 2016, the Board has proposed a dividend of Rs.1.50 (15%) per equity share for the year ended 31st March, 2016. The proposed dividend as provided in the accounts is subject to approval of members at the ensuing Annual General meeting.
3. The Company has Four Wholly owned Subsidiaries and has an Associate Company. The Company has no Holding Company.
4. Of the above issued shares, 24,86,028 Equity shares of Rs. 10/- each fully paid were issued for consideration with out payment received in cash as per terms of amalgamation
5. Utilized of issue proceeds
There are no Unutilized Proceeds of issue as at the close of the Financial Year.
6. Additional information on borrowings
1. Security
(a) The term loan from banks are secured by exclusive charge on specific fixed assets.
(b) The loan repayable on demand from banks are cash credits, bills purchases, discounting, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.
(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.
(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in individual capacities
7. Defaults
There are no defaults/continuing defaults as on 31st Mar, 2016 in payment of interest and repayment of loans.
8. Rights, preferences and restrictions
The company has only one class of share capital being Equity Shares having a face value of Rs. 10/- per share. Each share holder is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend payable on equity shares is subjected to recommendations of Board of Directors and share holders in Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company in proportionate to their share holdings.
9. The Company declare and pays dividend in Indian rupees. In the meeting held on 30th May, 2016, the Board has proposed a dividend of Rs.1.50 (15%) per equity share for the year ended 31st March, 2016. The proposed dividend as provided in the accounts is subject to approval of members at the ensuing Annual General meeting.
10. The Company has Four Wholly owned Subsidiaries and has an Associate Company. The Company has no Holding Company.
11. Of the above issued shares, 24,86,028 Equity shares of Rs. 10/- each fully paid were issued for consideration with out payment received in cash as per terms of amalgamation
12. Utilized of issue proceeds
There are no Unutilized Proceeds of issue as at the close of the Financial Year.
13. Additional information on borrowings
13.1. Security
(a) The term loan from banks are secured by exclusive charge on specific fixed assets.
(b) The loan repayable on demand from banks are cash credits, bills purchases, discounting, letter of credits limits and bank guarantees are secured by Hypothecation of Raw-material, Stock in process, Finished goods, consumable Spares, Book debts and receivables.
(c) The working capital and Term loans from banks are also secured by first and second charge on some of the fixed assets of the company.
(d) The working capital and Term loans are further secured by guarantee from Managing Director and a promoter in individual capacities
13.2. Defaults
There are no defaults/continuing defaults as on 31st Mar, 2016 in payment of interest and repayment of loans.
14. Micro, Small and Medium Enterprises
The Company identified Micro, Small and Medium Enterprises on the basis of information made available to the company by the suppliers. The Company is regular in making payments to Micro, Small and Medium Enterprises. The principal amounts outstanding as on 31-03-2016 and remaining unpaid to any Micro, Small and Medium Enterprises is Rs1,69,56,532/- and the said amounts are due for less than 45 days as on 31-03-2016. Hence, excepting above, there is no reportable information under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act, 2006 read with part I of Schedule VI to the Companies Act, 1956.
15. Disclosure pursuant to clause 34(3) of SEBI (LODR) Regulation 2015 (As applicable to the company)
Disclosure pursuant to clause 34(3) of Securities Exchange Board of India (listing obligations and disclosure requirement) Regulations, 2015, in respect of amount of loans and advances in the nature of loans outstanding from subsidiaries as at 31st March, 2016.
16. Disclosure under AS-15 Employee benefits
A. Defined contribution plan:
Contributions to defined contribution plan recognized as expenditure in profit and loss account are as under:
2015-16 (Rs.) 2014-15(Rs.)
Employers contribution to Provident fund 35.87 29.91
The provident fund contributions are remitted to Regional Provident fund Commissioner, Kadapa.
B. Defined benefit plan:
The company has employee group gratuity fund through a policy with LIC and contributes to the fund through annual renewal premium determined based on actuarial valuation using projected unit credit method as at 31-03-2016.The company has funded current service cost obligations and contributions made are recognized as expenses. The unfunded past service cost is provided as per actuarial valuation as on 31-03-2016.The disclosures in respected of funded and unfunded defined benefit obligations as required by AS 15 are as below.
VII. Major category of fair value of plan asset at close of the year
Fund with LIC under a policy
Percentage of total plan assets 100%
VIII. Principal actuarial assumptions:
Demographic assumptions
a) Retirement age of employees of the company are assumed at 58 years and average age is 40.31years.
b) The Mortality is as per the published rates of Life Insurance Corporation of India (1994-96).
Mortality table (ultimate), which is considered as a Standard Table.
c) Average past service : 10.54 years
d) Withdrawal rate : 1 to 3% depending upon age
Financial assumptions
b)Expected rate of return(p.a.) 9.50%
c)Salary escalation rate(p.a.) 7.00%
17. Disclosure under AS-17 Segment reporting
The Company has disclosed Business segment as the primary segment with geographical segment being secondary segment based on geographical location of customers. Segment have been identified taking into account the nature of the products differing risks and returns, the organization structure and internal reporting system.
The Company operations predominantly relate to manufacture of chemicals. Other business segments reported are Energy generation.
Segment revenue, Segment Results, Segment Assets and Segment liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.
The expenses, which are not directly attributed to the business segment, are shown as un-allocable corporate cost.
Assets and liabilities that cannot be allocated between the segments are shown as a part of un-allocable corporate assets and liabilities respectively.
18. Disclosure under AS-22 Taxes on income.
Deferred tax liability:
The company has accounted for Deferred tax in accordance with Accounting Standard 22 âAccounting for Taxes on Incomeâ issued under section 133 of the Companies Act 2013 and has charged the net profit and loss account with the deferred tax liability of Rs.1,26,20,041/-relating to the year.
19. Confirmation of balances.
Confirmation of balances from certain parties for amounts due to them or due from them is yet to be received.
Confirmation letters were received from some of the parties. No material discrepancies are observed.
20. Regrouped/ Rearranged/ Reclassified.
Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current yearâs disclosures and figures.
21. Rounding off
Figures shown in the Financial Statements have been rounded off to the nearest Rupee.
Mar 31, 2015
1. Rights, preferences and restrictions
The company has only one class of share capital being Equity Shares
having a face value of Rs. 10/- per share. Each share holder is
entitled to one vote per share. The company declares and pays dividend
in indian rupees. The dividend payable on equity shares is subjected to
recommendations of Board of Directors and share holders in Annual
General Meeting, except in the case of interim dividend. In the event
of liquidation, the equity shareholders are eligible to receive the
remaining assets of the company in proportionate to their share
holdings.
2. The Company has no Subsidaries or Holding Company or associate
companies holding shares in the company as on the date of Balance sheet
3. Of the above 1,47,16,689 issued shares, 24,86,028 Equity shares of
Rs. 10/- each fully paid were issued for consideration for
constructions with out payment received in cash as per terms of
amalgamation.
4. Additional information on borrowings
1. Security
(a) The term loan and vehicle loans from banks are secured by exclusive
charge on specific fixed assets.
(b)The loan repayable on demand from banks are cash credits, bills
purchases, discountings, letter of credits limitsand bank guarantees
are secured by Hypothecation of Raw-material, Stock in process,
Finished goods, consumable Spares, Book debts and receivables.
(c) The working capital and Term loans from banks are also secured by
first and second charge on some of the fixed assets of the company.
(d) The working capital and Term loans from banks arefurther secured by
guarantee from Managing Director and a promoter in their individual
capacities.
2. Defaults
There are no defaults/continuing defaults as on 31st Mar, 2015 in
payment of interest and repayment of loans.
5. Contingent liabilities and Commitments
Contingent liabilities:
(to the extent not provided for )
a) Claims against company not
acknowledged as debts 3,57,04,682 10,20,24,054
b) Corporate Guarantees outstanding 97,40,000 2,30,20,816
c) Other money for which company is
contingently liable - -
Commitments :
a) Estimated amount ofcontracts
remainingtobeexecuted - 3,61,43,574
on capital account and not provided for
b) Uncalled liability on shares and
other investments partly paid 500 500
c) Other commitments
1) Incometax appeal pending
against ITOAO 3,04,714 3,04,714
2) Consumers cheques / bills
discounted with Banks 14,39,81,914 16,88,48,875
3) Unexpired Bank Guarantees
provided on behalfofthe Company. 3,38,11,382 1,06,01,216
4) Unexpired Letters of Credit
established on behalfofthe Company. 27,29,42,422 27,14,50,919
d) Dividends remitted in Foreign Currency NIL
i) Total number of shares held by non-residents -
ii) Amount of dividend -
iii) No. of non resident share holders -
iv) Year to which the dividend is related -
6. Notes forming part of financial statements:
7. Corporate Information
Sree Rayalaseema Hi-Strength Hypo Limited is a public company domiciled
in India and is Incorporated under the provisions of the companies Act,
1956. The company's principal business is manufacturing and sale of
industrial chemicals and generation and distribution of power. The
company caters to both domestic and Indian markets.
8. Basis of preparation
i) The accounts are maintained under Historical cost Convention and are
prepared on accrual basis (except income and expenditure below Rs.5000/
per transaction and impairment or revaluation if any) as a 'going
concern' by complying with generally accepted accounting principles and
applicable Accounting Standards.
ii) The Accounting policies have been consistently followed and
financial statements are prepared to comply in all material aspects in
respect with Accounting Standards notified by the Companies Accounting
Standards Rules, 2006 and relevant provisions of the Companies Act,
1956.
9. Use of estimates
The preparation of financial statements is in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of such assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the result of operations during the end of
reporting period. Although these estimates are based upon management's
best knowledge of current events and actions, actual results could
differ from estimates.
10. Presentation and disclosure in Financial Statements:
For the year ended 31st Mar, 2015, the newly enacted Companies Act,
2013 is applicable w.e.f. 01st April, 2014 to the company for
presentation and disclosure in financial statements. The company's
financial statements are in accordance with Schedule-III of the
companies act 2013 and rules made there under and reclassifies the
previous years figure accordingly.
11. Micro, Small and Medium Enterprises
The Company identified Micro, Small and Medium Enterprises on the basis
of information made available to the company by the suppliers. The
Company is regular in making payments to Micro, Small and Medium
Enterprises. The principal amounts outstanding as on 31-03-2015 and
remaining unpaid to any Micro, Small and Medium Enterprises is Rs.
2,50,10,056/- and the said amounts are due for less than 45 days as on
31-03-2015. Hence, excepting above, there is no reportable information
under Sec 22 (i) to (v) of Micro, Small and Medium Enterprises Act,
2006 read with part I of Schedule VI to the Companies Act, 1956.
12. Disclosure pursuant to clause 32 of the listing agreement (As
applicable to the company)
1) Cash flow statement according to AS3, Cash flow and related party
disclosure as per AS18 are furnished as part of these financial
statements.
2) Loans and Advances
Loans and Advances to associates are Rs.0/- outstanding as on
31.03.2015.
13. Disclosure under AS-15 Employee benefits
A. Defined contribution plan:
Contributions to defined contribution plan recognized as expenditure in
profit and loss account are as under:
2014-15 2013-14
(Rs.) (Rs.)
Employers contribution to Provident fund 29.91 29.47
The provident fund contributions are remitted to Regional Provident
fund Commissioner, Kadapa.
B. Defined benefit plan:
The company has employees group gratuity fund through a policy with LIC
and contributes to the fund through annual renewal premium determined
based on actuarial valuation using projected unit credit method as at
31-03-2015.The company has funded current service cost obligations and
contributions made are recognized as expenses. The unfunded past
service cost is provided as per actuarial valuation as on
31-03-2015.The disclosures in respected of funded and unfunded defined
benefit obligations as required by AS 15 are as below.
14. Disclosure under AS-17 Segment reporting
The Company has disclosed Business segment as the primary segment with
geographical segment being secondary segment based on geographical
location of customers. Segment have been identified taking into account
the nature of the products differing risks and returns, The
organization structure and internal reporting system.
The Company operations predominantly relate to manufacture of
chemicals. Other business segments reported are Wind energy
generation.
Segment revenue, Segment Results, Segment Assets and Segment
liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis.
The expenses, which are not directly attributed to the business
segment, are shown as un-allocable corporate cost.
15. Disclosure under AS-18, Related Party Disclosure.
The Company has the following related parties on account of
shareholdings by Key Management Personnel and their relatives.
(B) Enterprises on which Key Management Person has Significant
Influence
a) TGV Securities Pvt. Ltd No
b) Vibhu Cement Pvt. Ltd No
c) Sree Arya Lakshmi Steels Pvt.Ltd., No
(C) Key Management Personnel :
Name of the Related Party Nature of Relationship
a) Mr. T G Bharath Chairman & Managing Yes
Director
(D) Relatives of Key Relationship to Key
Management person Management person
a) Sri T G Venkatesh Father
b) Smt.T G Rajyalakshmi Mother
c) Smt.T G Shilpha Bharath Wife
(i) Assets taken on Lease: Factory Buildings, Office Buildings and
Hydrogen Cylinders
(ii) Leased out Assets: Chlorine Cylinders.
(iii) Future lease rentals are determined on the basis of agreed terms.
(iv) At the expiry of the lease term, the Company has an option either
to return the asset or extended the term by giving notice in writing.
16. Disclosure under AS-22 Taxes on income.
Deferred tax liability:
The company has accounted for Deferred tax in accordance with
Accounting Standard 22 " Accounting for Taxes on Income" issued by the
Institute of Chartered Accountant of India and has charged the net
profit and loss account with the deferred tax liability relating to the
year net of Rs.164,21,693/-
17. Confirmation of balances.
Confirmation of balances from certain parties for amounts due to them
or due from them is yet to be received.
Confirmation letters were received from some of the parties. No
material discrepancies are observed.
18. Regrouped/ Rearranged/ Reclassified.
Previous year figures have been regrouped/rearranged wherever necessary
to make them comparable with current year's disclosures and figures.
19. Rounding off.
Figures shown in the Financial Statements have been rounded off to the
nearest rupee.
Mar 31, 2014
1.1 Rights, preferences and restrictions
The company has only one class of share capital being Equity Shares
having a face value of Rs. 10/- per share. Each share holder is
entitled to one vote per share. The company declares and pays dividend
in indian rupees. The dividend payable on equity shares is subjected to
recommendations of Board of Directors and share holders in Annual
General Meeting, except in the case of interim dividend. In the event
of liquidation, the equity shareholders are eligible to receive the
remaining assets of the company in proportionate to their share
holdings
1.2 The Company has no Subsidiries or Holding Company as on date of
Balance sheet
1.3 During the year 4,92,506 Equity shares of Rs. 10/- each were issued
pursuant to convertion of warrants under preferential allotment for
cash at a premium of Rs. 44.62 per share as fully paid up.
1.4 Of the above 14716689 issued shares, 24,86,028 Equity share of Rs.
10/- each fully paid were issued for consideration with out payment
received in cash as per terms of amalgamation
1.5 Additional information on borrowings 1. Security
(a) The term loan from banks are secured by exclusive charge on
specified fixed assets.
(b) The loan repayable on demand from banks are cash credits, bills
purchases, bills discounting, letter of credits limits and bank
guarantees which are secured by hypothecation of Raw-material, Stock in
process, Finished goods, consumable Spares, Book debts and receivables.
(c) The working capital and Term loans from banks are also secured by
first and second charge on some of the fixed assets of the company.
(d) The working capital and Term loans from banks are further secured
by guarantee from Managing Director and a promoter in their individual
capacities
As at As at
31st Mar, 2014 31st Mar, 2013
2 Contingent liabilities and Commitments
Contingent liabilities: (to the extent
not provided for )
a) Claims against company not
acknowledged as debts 102024054 128903475
b) Guarantees outstanding 23020816 37075000
c) Other money for which company is
contingently liable Commitments :
1) Estimated amount of
contracts remaining to be executed
on capital account and not provided for 36143574 44177391
2) Uncalled liability on shares & other
investments partly paid 500 500
3) Other commitments
i) Income tax appeal pending against
ITO AO 304714 304714
ii) Customers cheques / bills discounted
with Banks 168848875 158034276
iii) Unexpired Bank Guarantees provided
by the Company 10601216 12102768
iv) Unexpired Letters of Credit
established by the Company 271450919 217701067
d) Dividends remitted in Foreign Currency during the year i) Total
number of shares held by non-residents
ii) Amount of dividend
Nil iii) No. of non resident share holders
iv) Year to which the dividend is related
Mar 31, 2013
1.1) Basis of preparation
i) The accounts are maintained under Historical cost Convention and are
prepared on accrual basis (except income and expenditure below
Rs.5000/per transactions and impairment or revaluation if any) as a
''going concern'' by complying with generally accepted accounting
principles and applicable Accounting Standards.
ii) The Accounting policies have been consistently followed and
financial statements are prepared to comply in all material aspects in
respect with Accounting Standards notified by the Companies Accounting
Standards Rules, 2006 and relevant provisions of the Companies Act,
1956.
1.2) Use of estimates
The preparation of financial statements is in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts of such assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the result of operations during the end of
reporting period. Although these estimates are based upon management''s
best knowledge of current events and actions, actual results could
differ from estimates.
1.3 Micro, Small and Medium Enterprises
The Company identified Micro, Small and Medium Enterprises on the basis
of information made available to the company by the suppliers. The
Company is regular in making payments to Micro, Small and Medium
Enterprises. The principal amounts outstanding as on 31-03-2013 and
remaining unpaid to any Micro, Small and Medium Enterprises is
Rs.3,20,97,715/- and the said amounts are due for less than 45 days as
on 31-03-2013. Hence,excepting above, there is no reportable
information under Sec 22 (i) to (v) of Micro, Small and Medium
Enterprises Act, 2006 read with part I of Schedule VI to the Companies
Act, 1956.
1.4 Disclosure pursuant to clause 32 of the listing agreement (As
applicable to the company)
1) Cash flow statement according to Accounting Standard - 3, Cash flow
and related party disclosure as per Accounting Standard - 18 are
furnished as part of this financial statements.
2) Investments in own shares of the company
The company had acquired its own equity shares as per scheme of
arrangement from transferor company. The beneficiary interest is held
through its directors. The shares held as on 31.03.2013 are 1025289
equity shares.
3) Loans and Advances
Loans and Advances to associates is Rs. 25,29,380/- outstanding as on
31.03.2013.
1.5 Disclosure under AS-16 Borrowing costs
During the financial year the company has two qualifying assets i.e.
expansion of calcium hypo chlorite project and captive thermal project
at the end of the year and these are under implementation. The
Borrowing cost that are directly relate to these qualifying assets are
determined, identified and capitalised during the financial year
amounted to Rs 4,88,93,646/- (previous year : Rs.1,65,57,218/- )
1.6 Disclosure under AS-17, Segment Reporting
The Company has disclosed Business segment as the primary segment with
geographical segment being secondary segment based on geographical
location of customers. Segment have been identified taking into account
the nature of the products differing risks and returns, The
organization structure and internal reporting system.
The Company operations predominantly relate to manufacture of
chemicals. Other business segments reported are Wind energy
generation.
Segment revenue, Segment Results, Segment Assets and Segment
liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis.
The expenses, which are not directly attributed to the business
segment, are shown as un-allocable corporate cost.
Assets and liabilities that cannot be allocated between the segments
are shown as a part of un-allocable corporate assets and liabilities
respectively.
1.7 Confirmation of balances.
Confirmation of balances from certain parties for amounts due to them
or due from them is yet to be received.
Confirmation letters were received from some of the parties. No
material discrepancies are observed.
1.8 Regrouped/ Rearranged/ Reclassified.
Previous year figures have been regrouped/rearranged/reclassified
wherever necessary to make them comparable with current year''s
disclosures and figures.
1.9 Rounding off the figures
Figures shown in the accounts have been rounded off to the nearest
Rupee.
Mar 31, 2010
1) The Sales tax liability is being accumulated in view of sanction of
deferment by the Government of Andhra Pradesh as per State Incentive
Scheme and is included under unsecured loans.
2) Confirmation of balances from certain parties for amounts due to
them or due from them are yet to be received. Confirmation letters were
received from some of the parties. No material discrepancies are
observed.
3) The Company identified Micro,Small and Medium Enterprises on the
basis of information made available to the company by the suppliers.
The Company is regular in making payments to Micro,Small and Medium
Enterprises. The principal amounts outstanding as on 31-03-2010 and
remaining unpaid to any Micro,Small and Medium Enterprises is
Rs.1,30,15,961/-and the said amounts are due for less than 45 days as
on 31-03-2010.Hence,excepting above, there is no
4. Related parties Disclosures :
The Company has the following related parties on account of
shareholdings by Key Management Personnel and their relatives.
(A) Particulars of Associate Companies
Name of the Related Party
a) Sree Rayalaseema Alkalies and Allied Chemicals Ltd.
b) Sree Rayalaseema Dutch kassenbouw Pvt. Ltd.
c) TGV Projects & Investments Pvt. Ltd.
d) Brilliant Bio Pharma Ltd.
e) Sree Maruthi Marine Industries Ltd.
f) Gowri Gopal Hospitals Pvt. Ltd
g) Sree Rayalaseema Galaxy Projects Pvt. Ltd. h) SRHHL Industries Ltd.
i) Sree Maruthi Agro Tech Ltd.
j) T G V Pharma Pvt. Ltd.
k) Vibhu Cements Pvt. Ltd.
l) Shree Arya Lakshmi Steels Pvt. Ltd.
5. Segment Reporting
The Company has disclosed Business segment as the primary segment with
geogrophical segment being secondary segment based on geographical
location of customers. Segments have been identified taking into
account the nature of the products differing risks and returns, the
organisation structure and internal reporting system.
The Companys operations predominantly relate to manufacture of
chemicals.
Other business segments reported are wind energy generation.
Segment Revenue, Segment Results, Segment Assets and Segment
liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis.
The expenses, which are not directly attributed to the business
segment, are shown as unallocable corporate cost.
Assets and liabilities that cannot be allocated between the segments
are shown as a part of unallocable corporate assets and liabilities
respectively.
6).Disclosure pursuant to Accounting Standard 15 (Revised 2005)
Employee benefits:
A. Defined contribution plan:
Contribution to defined contribution plan recognized as expenditure in
profit and loss account are as under:
2009-10 2008-09
(Rs. in lakhs) (Rs. in lakhs)
Employers contribution to
Provident fund 27.57 26.64
The provident fund contributions are remitted to Regional provident
fund Commissioner,Kadapa.
B. Defined benefit plan:
The company has employees Group Gratuity Fund through a policy with LIC
and contributes to the fund through annual renewal premium determined
based on actuarial valuation using projected unit credit method as at
30-09-2009.The company has funded current service cost obligations and
contributions made are recognized as expenses. The unfunded past
service cost is provided as per actuarial valuation as on
30-09-2009.The disclosures in respected of funded and unfunded defined
benefit obligations as required by Accounting Standard 15 are given
below.
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Sree Rayalaseema Hi-Strength Hypo Ltd. குறித்த கூடுதல் தகவல்களை
-
Sree Rayalaseema Hi-Strength Hypo Ltd. டூல்ஸ்
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Sree Rayalaseema Hi-Strength Hypo Ltd. நிறுவன தகவல்கள்
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-
நிறுவன வரலாறு
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- விகிதங்கள்
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Sree Rayalaseema Hi-Strength Hypo Ltd. முடிவுகள்
- காலாண்டு முடிவுகள்
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- தணிக்கை முடிவுகள்
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Sree Rayalaseema Hi-Strength Hypo Ltd. அறிக்கை
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Sree Rayalaseema Hi-Strength Hypo Ltd. கார்ப்பரேட் அறிவிப்புகள்
- புத்தக முடிவு
- ஈவுத்தொகை
- நிர்வாகக் குழுக் கூட்டங்கள்
