1. Contingent Liabilities:
as] In respect of bank guarantees issued & L/C opened by Companys
bankers Rs. 437.73 lakhs [As at 31st March 2007 Rs 1811.00 lakhss].
bs] Demand in respect of additional income tax disputed in appeal Rs.583
lakhs [As at 31st March 2007 Rs. 259.06 lakhss] refund effect in respect
of appeals decided in favour of Comp. aggregating to Rs.284 lakhs
cs] The Comp. has given Corporate Guarantee for Term Loan and Working
Capital of Rs.1600 lakhs [As at 31st March, 2007 Rs.825 lakhss] to
Suyash Laboratories Ltd.
ds] Demand / Rebate in respect of Excise duty in case of Ammonium
Sulphate of Rs. 102.90 lakhs [As at 31st March, 2007 Rs. 102.90 lakhss]
appeal pending before High Court.
es] Liability for duty on raw material imported under advance licence
benefit scheme against which export obligation remained to be fulfilled
Rs.105.36 lakhs [As at 31st March,2007 Rs.25.90 lakhss].
fs] Estimated amount of contracts remaining to be executed on capital
account & not provided for [net of advancess] Rs 40.28 lakhs [As at
31st March, 2007 Rs.78.22 lakhss].
2. Securities for loans taken from Banks:
as] Balances in respect of outstanding term loan from The-Industrial
Development Bank of India Rs. 123.02 lakhs [As at 31st March, 2007
Rs.248.16 lakhss], The Export Import Bank of India Rs.3994.85 lakhs [As
at 31st March, 2007 Rs 2722.22 lakhss], RABO Bank N.A. Rs.677.19 lakhs
[As at 31st March, 2007 Rs. 1250.34 lakhss], are secured by pari-passu
first charge by way of mortgage of immovable properties and
hypothecation of movable fixed assets, both present & future at
Tarapur and Sarigam units. The working Directors of Comp. have
personally guaranteed these loans.
bs] Loans from Scheduled Banks Rs.7070.50 lakhs [As at 31st March, 2007
Rs. 7493.41 lakhss] are secured by hypothecation of Companys raw
materials stock, stock-in-process, finished goods, packing materials,
stores and spares, book debts, foreign documentary bills & all other
current assets including goods in transit governed by documents of
title & also pari-passu second charge by way of mortgage of immovable
properties & hypothecation of movable fixed assets. The working
Directors of Comp. have personally guaranteed these loans.
3. The Comp. had issued 12750,1.5% Foreign Currency Convertible
Bonds of US $ 1000 each aggregating US $ 12.75 Million, at par. The
bonds were redeemable on April 7, 2008 at a premium so as to give the
bondholders a yield to maturity of 5.25% per annum. These bonds were
convertible into shares at the option of bondholders at any time on
or after May 7,2005 & prior to the close of business on April 7,2008.
The bondholders did not exercise the conversion option & the bonds
were redeemed on April 7,2008.
4. There are no Micro & Small Enterprises, to whom the Comp. owes
dues, which are outstanding for more than 45 days as at 31st March,
2008. This information as required to be disclosed under the Micro,
Small & Medium Enterprises Development Act, 2006 has been determined
to the extent such parties have been identified on the basis of
information available with the Company.
5. Investments made by Comp. are strategic & long-term in
nature & are shown at cost. Any diminution in the value of
Investments are considered as temporary in nature & hence no
provision has been made in these Acc. as per Accounting Standard:
6. In the opinion of Board, the Current Assets & Loans and
Advances have a value on realisation at least equal to the amounts at
which they are stated in the Balance Sheet.
7. Advance towards equity of E-Novative Solutions [Is] Pvt. limited of
Rs.31.50 lakhs [As at 31st March 2007 Rs. 31.50 lakhss] in which the
Company is one of co-promoters, is intended to be adjusted against
the value of equity shares to be issued by such co-promoted Comp. in
the event the relative project is implemented.
8. Segment-wise Disclosure as per Accounting Standard: 17.
I. BUSINESS SEGMENTS AS PRIMARY SEGMENTS
The Comp. is considered to be a single segment Comp. engaged in
pharmaceuticals business, hence the disclosure requirement as per AS-17
Business Segments as Primary Segment is not attracted.
9. Related party transactions:
Related party disclosure as required by Accounting Standard -18.
Related Party Disclosures issued by The Institute of Chartered
Accountants of India are given below :
A. Name & Relationship of Related Parties :
Suyash Laboratories Ltd.
3[bs] Associates and Joint Ventures
Huanggang Yinhe Aarti Pharmaceutical Co.Ltd.
3[cs] Individuals owning directly or indirectly, an interest in the
voting power of reporting enterprise that gives them control or
significant influence over the enterprise, & relatives of such
Mr. Chandrakant V. Gogri Mr. Rajendra V. Gogri
10. Sales & other sales income include export benefits amounting to
Rs. 8,49,02,754/- [As at 31st March 2007 Rs. 6,21,12,848/-s]