| 1. The company was incorported on 22.04.1971 with a view to use Natural
Gas as feedstock to produce Methanol. Currently the company is engaged
in manufacture and marketing of two versatile industrial petrochemical
products i.e. methanol and formaldehyde. The profitability of the
company is largely dependent on the price of methanol in the
international market which has direct impact on domestic price of
methanol.
2. The company embarking upon to set up a 500TPD Methanol & 200 TPD
Acetic Acid Project. To mobilize the requisite capital for the project,
the company has decided to raise the fund by partly issuing additional
equity. To raise the requisite additional equity capital the company
had increased its Authorised capital to Rs. 350 Crores. On the basis of
proposal made by the company, Govt. of Assam had sanctioned Rs. 17.02
crores vide letter No.CI&C(V)(P)67/2011/18/9986 Dtd.23-11-2011. The
Cabinet Approval relating to the Same was received vide CI
/105/2005(B)/269Dated March 04, 2014. The company has taken all
effective steps to materialise the project and since the money received
against the equity perticipation of Govt. of Assam in 500 TPD Methanol
and 200 TPD Acetic Acid Plant Project will be utilised for the
implementation of the project, it has been shown under the head "Share
application money pending allotment". All formalities for issue of
additional share capital are under process and decision will be taken
by the Board in due course after completion of the formalities.
3. Share application money pending allotment As at 31 March 2014, the
Company has received an amount of Rs. 17,02,00,00/- towards share
application money towards equity shares of the Company (As at 31 March,
2013 Rs. 17,02,00,00/- towards equity/preference shares). The money was
received against the equity perticipation of Govt. of Assam in 500 TPD
Methanol and 200 TPD Acidic Plant Project. The Company has sufficient
authorised capital to cover the allotment of these shares. Pending
allotment of shares, the amounts are maintained in a designated bank
account and is not available for use by the Company.
I. Contingent liabilities and commitments As at As at
(to the extent notprovided for) 31 March, 31 March,
2014 2013
Contingent liabilities Rs. Rs.
(a) Claims against the Company not
acknowledged as debt:
(i) Central Excise Duty (CESTAT, Kolkata,
period Feb.2009 to Jan.2011) 50,454,714 50,454,714
(ii) Central Excise Duty (CESTAT, Kolkata,
period Feb.2011 to Feb.2012) 20,956,450 20,956,450
(iii) Central Excise Duty (C(App),
Guwahati, period Mar.2012 to
Jan.2013) 8,244,126 -
(iv) Oil India Limited (Debit Note for
Vat on NG, period 2006-2007) 17,286,990 17,286,990
(v) AGCL (Debit Note for Service Tax
on Fuel Surcharge from 2007 to 2012) - 317,257
(vi) Arrear salary for the year 2009-2010
& 2010-2011 against Pay Revision - 62,754,977
(b) Guarantees - -
(c) Other money for which the Company is
contingently liable - -
(d) Commitments not provided for :
(i) Estimated amount of contract remaing
to be executed in Capital Account and
not provided for :
Tata Consulting Engineers Limited 7,500,000 15,000,000
SBI Capital Market Limited - 12,700,000
Total 7,500,000 27,700,000
Less: Advance to Consultants - 14,178,552
Balance 7,500,000 13,521,448
4. Employee benefit plans
a. Defined contribution plans
The Company makes Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised Rs.
2,00,41,862/- (Year ended 31 March, 2013 Rs. 1,31,36,856/-) for
Provident Fund contributions and Rs. 43,36,249/- (Year ended 31 March,
2013 Rs. 38,71,144/-) for Superannuation Fund contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
b. Defined benefit plans
The Company offers the following employee benefit schemes to its
employees:
i. Earned Leave Benefits (EL)
EL per employee accrual is 33 days per year. Two days of EL is earned
after 22 days of continuous service by an employee. Accumulation up to
360 days is allowed, out of which one part is encashable and other part
can either be encased at the time retirement or avail leave during the
service period.
ii. Sick Leave (SL)
SL per employee accrual is 10 days per year and same can't be encased
during the service tenure. Encashment of 50% of accumulated SL is
permitted at the time of retirement.
iii. Group Gratuity Scheme
15 days salary for each completed year of service or part thereof in
excess of 6 months of continuous service. The eligibility of gratuity
falls due on completion of 5 years of continuous service. The company
has taken a policy under "Group Gratuity Scheme" of employees with Life
Insurance Corporation of India (LICI). The amount payable calculated by
LICI based on membership data provided by the company, actuarial
assumption & valuation made by LICI & the balance in the Gratuity Fund
is charged to the Statement of Profit and loss. The APL Employees
Gratuity Fund is maintained by LICI in which interest accrued &
payments made by the company are credited and payment of claims made to
employees is debited.
iv. Leave Encashment Scheme
For the payment of leave encashment at the time of retirement, a policy
under "group leave Encashment scheme" of employees has been taken from
LICI. The amount payable, calculated by LICI on the basis of membership
data provided by the company, actuarial assumption and valuation made
by LICI and the balance in the fund maintained by LICI is charged to
the Statement of Profit and Loss.
5. Capital Work-In-Progress (CWIP)
All expenditure incurred for New 500TPD Methanol & 200TPD Acetic Acid
Plant have been shown under CWIP, since these expenditure are related
to the project only. No expenses which should have been charged to
Profit & Loss, has been included in CWIP.
6. Unused old catalyst held for disposal
The company is carrying unused catalyst valued Rs. 65,97,535 which is
more than 20 years old. A committee has been constituted for disposal
of the same. The loss / gain on sale will be accounted for at the time
of disposal.
7. Documents in respect of subsidiary company (M/s Pragjyotish
Fertilizer And Chemicals Limited) under section 212(1) of Companies
Act, 1956.
The documents required to be attached with Balance sheet of the company
as per Section 212(1) of the Act are not available.
8. Dues to Micro, Small & Medium Enterprise
There is no supplier under Micro, Small and Medium Enterprise
Development Act, 2006 on the basis of information made available to the
company. The company has neither paid any interest in the terms of
section16 of the above Act nor any interest remain unpaid and no
payments were beyond the "appointed date" to such enterprise during the
year ended 31.03.2014. Amount outstanding to these enterprise for the
year ended 31st March 2014 is Rs. Nil (previous year Rs. Nil)
Note 9 Previous year's figures
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
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