| 1.1 Contingent liabilities not provided for:
(a) Bills discounted with bank outstanding - Rs. Nil (Previous year Rs.
Nil).
(b) Letter of Credits outstanding - Rs. 9970.61 Lacs (Previous year -
Rs. 10766.63 Lacs)and Margin Money given there against Rs.1907.80 Lacs
(Previous Year - Rs. 2427.03 Lacs).
(c) Guarantees given by Company's Banker on behalf of the Company
-Rs.227.15 Lacs (Previous year Rs. 228.46 Lacs).
(d) The Company has executed bonds in favour of Excise Department in
connection with purchases of raw material without levy of excise - Rs.
344.00 Lacs ( Previous year Rs. 244.00 Lacs).
(e) The company purchased manufacturing facilities of fertilizers from
Liberty Pesticides & Fertilizers Ltd (A Subsidiary Company) on
1.10.1997. Registration of transfer is pending as the company disputed
that the registration of property in the name of company, is not liable
for the payment of stamp duty under Rajasthan Stamp Law (Adaption) Act,
1952 read with section 9(1) (a) of Indian Stamp Act, 1899 and
accordingly preferred writ before hon'ble High Court of Rajasthan.
Likely amount of stamp duty, if any payable, will be Rs.26.85 Lacs
(Previous year 26.85 Lacs).
(f) Demands of Sales Tax Authorities not acknowledged by the Company
and contested/appealed, Rs.13.02 Lacs (Previous Year Rs. 13.02 Lacs).
Amount paid there against as the matter of prudence Rs.2.77 Lacs
(Previous Year- Rs.2.77 Lacs).
(g) Demand of Income Tax not acknowledged by the company and
contested/appealed Rs. 03.50 Lacs (Previous year - Rs. 03.50 Lacs).
Amount paid there against as the matter of prudence Rs. 03.50 Lacs
(Previous year -Rs. 03.50 Lacs).
(h) Demand of Differential Customs Duty on Import of Rock Phosphate not
acknowledged by the company and contested/appealed Rs.344.16 Lacs
(Previous year - Rs. 344.16).
1.2 Claims against the company not acknowledged as debts:- Claims on
account of rebate, discount & freight - Rs. NIL (Previous year- Rs.
Nil).
1.3 Estimated capital commitments not provided for - Rs. 500.00 Lacs
(Previous year Rs. 2000.00 Lacs).
1.4 Depreciation for the period has been calculated at the rates and
in the manner specified in Schedule XIV to the Companies Act, 1956 vide
notification No. GSR 756 (E) dated 16.12.93 of the Department of
Company Affairs, Govt. of India. For the purpose of determining the
appropriate depreciation rates, Plant and Machinery falling in the
category of continuous process plants has been identified on the basis
of technical opinion obtained by the company. Extra shift depreciation,
wherever applicable is calculated on actual shift basis in respect of
each plant/unit.
1.5 No provision has been made in respect of : - fall in the value of
long term investment in shares of subsidiary company and others, since
in the opinion of the management book value of the shares is sufficient
to cover temporary fall in the value of shares.
Further, to inform that investment made is in the nature of trade
investment.
-The Company has not received information from vendors regarding their
status under the Micro,Small & Medium Enterprises Development Act, 2006
and hence disclosure relating to Amount unpaid at the year end together
with interest paid/payable under the Act have not been given.
1.6 Remittance in Foreign Currency on account of Dividend:
The Company has remitted Rs. 53.61 Lacs (Previous Year Rs 29.61 Lacs)
in foreign currencies on account of dividends during the year and does
not have information as to the extent to which remittance, if any, in
foreign currencies on account of dividends have been made by/on behalf
of non-resident shareholders. The particulars of dividends paid to non-
resident shareholders for the year 2011-2012 and 2012-2013, are as
under:
1.7 Capitalisation of Pre Operative Expenditure :
During the Year, the company has capitalized the following expenses of
revenue nature to the cost of capital work in progress. Consequently,
the expenses disclosed under the respective notes are net of amounts
capitalized by the Company.
1.8 In view of mandatory Accounting Standard (AS) -15 " Accounting for
Retirement Benefits in the Financial Statements of Employers" is dealt
as under: - Liability in respect of provident fund are provided for by
monthly payments to pension and provident fund under the Employees'
Provident (and Miscellaneous Provisions) Act, 1952, which are charged
against revenue.
- Gratuity liabilities are determined as per the actuarial valuation
done using the projected unit credit method.
- Accumulated Leave are determined as per the actuarial valuation done
using the projected unit credit method.
- Gratuity Scheme in respect of the employees of the company is
administered through Life Insurance Corporation of India (LIC). Annual
contribution as determined by the LIC are charged to the Profit & Loss
Account. The additional liability, if any, arising out of the
difference between the actuarial valuation as at the Balance Sheet date
and the fund balance is accrued and provided for at the year end.
- Employees are entitled to accumulate their privilege leave within
specified limits and can claim encashment thereof while in service or
on separation or on superannuation or otherwise. This is not treated as
specific retirement benefit and the cost thereof is accounted for in
the year in which the claims are received. 29.15 Related party
disclosure under Accounting Standard (AS) -18
a) The list of the related parties as identified by the management are
as under for the period from 01/04/2012 to 07/03/2013:
i) Enterprises over which Key Management Personnel with relatives, is
able to exercise significant influence:
1. Tungabhadra Fertilizers & Chemicals Co. Ltd.
2. Liberty Pesticides & Fertilizers Limited (A wholly owned
subsidiary).
3. A.R. Exports.
4. Liberty Urvarak Limited.
ii) Ke y Management personne l of the Company:
Directors of the Company.
iii) Relative of Key Management personnel:
1. Smt. A.R.Dhanani 2. Smt. Suchitra Dhanani
b) The list of the related parties as identified by the management are
as under for the period from 08/03/2013 to 31/03/2013:
i) Enterprises over which Key Management Personnel with relatives, is
able to exercise significant influence:
1. Coromandel International Ltd.
2. Liberty Pesticides & Fertilizers Limited (A wholly owned
subsidiary).
3. Liberty Urvarak Limited.
1.9 Segment Reporting:
That the Board of Directors, is of the opinion that the company is
engaged in manufacture & sale of Fertilizers namely Single Super
Phosphate , NPK Mixture Fertilizers & MGSO4 and accordingly dealing in
same segment namely Chemical Fertilizers. Likewise, the manufacturing
and marketing operations of the company are also confined only in the
India. As such, no segment is f ormed and accordingly no segment
reporting is done in terms of the requirement of Accounting Standard
(AS-17) " Segment Reporting" issued by the Institute of Chartered
Accountants of India for the year ended 31st March, 2013.
1.10 Impairment of Assets :
That the Board of Directors, is of the opinion that the discounted net
future generation from the Assets in use & shown in the schedule of
Fixed Assets, is more than the carrying amount of Fixed Assets in
Balance Sheet, as such, no provision for Impa irment of Assets is
required to be made in terms of the requirement of Accounting Standard
(AS -28) " Impairment of Assets" issued by the Institute of Chartered
Accountants of India for the year ended 31st March'2013.
1.11 Financial Derivative Instruments and unhedged foreign currency
exposure:
a. Nominal amount of forward contracts entered into by the Company and
outstanding as on 31st March amount to Rs. 5409.17 Lacs (Previous Year
Rs. Nil).
b. Foreign currency exposures on account of Import Trade Payable and
are not hedged by forward contracts as on 31st March, 2013 amount to
Rs. 1073.93 Lacs (Previous Year Rs. 5115.29 Lacs) ((In USD 19.78 Lacs )
(Previous Year USD 100.55 Lacs)).
1.12 In the opinion of the Directors, Current Assets, Loans and
Advances have the value at which they are stated in the Balance Sheet,
if realized in the ordinary course of business. Further, Directors are
of the opinion that all the liabilities have been duly reflected in the
Balance Sheet and nothing is remained to be disclosed for. Sundry
Debtors, Creditors and Advances are subject to reconciliation and
confirmation.
1.13 In the opinion of Board of Directors there exists adequate
accounting & internal control system designed to prevent and detect
fraud or errors and in the opinion of Board of Directors that any
uncorrected misstatements resulting from either fraud or errors are in
the managements opinion immaterial both individually & aggregate in the
Financial statements.
1.14 The company has reclassified previous year figures to conform to
this year' classification.
1.15 That during the year under review there is a change in the
actuarial method used or assumption adopted for providing the
retirement benefits cost comprising of Gratuity and Leave Encashment
and accordingly, additional liability arising on the date of Balance
Sheet on account of the new actuarial method on the amount of gratuity
amounting to Rs. 85.82 Lacs and Leave Encashment Rs. 32.96 Lacs,
aggregating to Rs. 118.78 Lacs, shown under the head as extraordinary
item in the Statement of Profit and Loss for the year 31/03/2013, vide
Clause 29 of the AS-15(Accounting for retirement benefit in the
Financial Statement of Employees).
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