Assam Petro-Chemicals Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

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.

---

Mar 31, 2013

1. Corporate information

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 profi tability of the company is largely dependent on the price of methanol in the international market which has direct impact on domestic price of methanol.

---

Mar 31, 2012

1.01 Employees benefits (AS-15)

1.01.01 A General Description on the type of Plans

a) 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.

b) 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.

c) Gratuity

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.

d) Leave Encashment

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.

01.2 Segment Information (AS-17) :

The company has disclosed business segment as the primary segment. Segments have been identified taking into account the nature of the products, the different risks and returns, the organization structure and internal reporting system.

Segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments allocated on a reasonable basis. Inter segment transfer have been carried out at average net realized price.

01.03 Related Party Disclosure ( AS-18)

a) The company is a state controlled enterprise. Thus related party relationship and transactions with other state controlled enterprises are not required to be disclosed as para 9 of AS-18.b) Related Party Relationship

i) Holding Company Assam Industrial Development Corporation Limited

ii) Subsidiary Company PragJyotish Fertilisers and Chemicals Limited

iii) Key Managerial Personnel Shri Ratul Bordoloi (Managing Director)

Note : Figures in brackets represent previous year figures

The Related Parties with whom the company has no transactions during the current year or in previous year have not been disclosed like fellow subsidiaries and relatives of key management personnel.

01.04 Consolidated Financial Statements (AS-21)

Since the financial statements of subsidiary company are not available, the consolidated Financial Statements could not be prepared and presented as required under AS-21.

01.05 Provisions And Contingent Liabilities ( AS-29)

01.05.01 Movement in Provisions

01.06 Capital Work -In -Progress (CWIP)

All expenditure incurred for New 500 TPD Methanol Plant, New 100 TPD Formalin Plant, Methanol Revamping Plant & Formalin Revamping Plant have been shown under CWIP, since these expenditure are related to these projects only. No expenses which should have been charged to Profit & Loss, has been included in CWIP

01.07 Fixed Asset - Replacement of Reformer Tubes

The company has replaced 42 nos. of imported Reformer Tubes costing Rs. 3, 90, 83,964 in reformer section of the Methanol Plant. The replacement has extended the useful life of Methanol Plant which is about 23 years old. The Reformer tubes were previously replaced in the year 2001-02 and were capitalized in that year. Normally the life of the reformer tubes are about 11 to 12 years and thus were due for replacement but in the mean time an accident occurred in the reformer section of the Methanol Plant and the company compelled to replace the old tubes during FY 2011-12. The company already claimed 95 % depreciation of original cost of the Methanol Plant up to FY 2008-2009. The company did not claim any depreciation on Methanol Plant for FY 2009-10 and 2010-11 as per the policy and considering the life of the plant. However, by replacing the Reformer Tubes the life of the plant gets extended.

Further, in the reformer section of the Methanol Plant originally used tubes were IN -519 Grade. Later these were replaced with improved quality tubes - Modified Micro Alloy. Presently the company is using this latest version of reformer tubes, which are having advantages over the original IN-519. These micro alloy tubes have I.D. of 110mm against the original of 95.5mm and hence more volume of gas contains in the tubes. The wall thickness of this present tubes are 7.5mm against the original 11 mm we had with IN -519, and hence more effective heat transfer across the wall with more improved tube efficiency. Because of the increased volume of the tubes, it is capable of processing more natural gas as well as catalyst. Presence of elements like Zirconium (Zr) and Titanium (Ti) in these micro alloy tubes makes them more robust and strong.

In view of above facts, replacement are considered to be "betterment OR improvement", and thus the above cost of replacement has been capitalized.

The balance of principal of loan -I f 25,00,000 is overdue and interest on none of the loans has been received so far. The company is pursuing through Govt. of Assam for repayment of balance amount of principal & the amount of interest over due as shown above. In past also the repayments were received through intervention of Govt. of Assam. The Company is fully hopeful of recovering the full amount of the balance principal and interest. Thus the principal outstanding Rs.25,00,000 has been considered good but the interest has not been recognized as income in view of AS-9 issued by the Companies Accounting Standard Rules, 2006 and prudent accounting principles.

01.08 Unused old catalyst held for disposal

The company is carrying unused catalyst valued Rs. 65.98 lakhs 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.

01.09 Mistake in the Financial Statement of FY 2010-11 corrected in the printed Annual Report.

There was a mistake in schedule no 13 in respect of product wise turn over (Methanol & Formalin) which was corrected in printed Annual Report on being pointed out by Comptroller &Auditor General of India auditors. For the purpose of Previous Year figures in the current year, the figures in the printed Annual Report have been taken as basis.

01.10 Prior Period Items ( Cr.) - Consumption of Stores & Spares Rs. 28,75,626.

An amount of Rs. 28,75,626 was wrongly debited to consumption of stores & spares parts in the previous year (FY 2010-2011). The spare part was wrongly issued in the previous year and has been returned back to the stores in the current year.

01.11 Stock of Natural Gas & Work -In - Progress.

The closing stock of raw material i.e Natural Gas and Closing stock of Work -In-Progress is not valued because they are not measurable and these are subject to risk of being flared.

01.12 VAT payable on Natural Gas etc.Rs. 41,07,284.

The liability was created in the earlier years on prudent accounting principles. The amount will be written back after taking legal opinion

01.13 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.

01.14 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 31.03.2012. Amount outstanding to these enterprise for the year ended 31st March 2012 is Rs. Nil (previous year Rs.Nil)

01.15 Branch Offices of the company

The Company has no branch office u/s 2(9) of the Companies Act 1956, the Factory of the Company at Namrup (Assam) is not a branch u/s 2(9)(c) of the Companies Act 1956 because the Head Office of the Company is situated there.

01.16 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre Revised Schedule VI to the Companies Act, 1956.Consequent to the notification of Revised Schedule VI under the Companies Act 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year''s figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI for previous year''s figures does not impact recognition and measurement principle followed for preparation of financial statements.

---

Mar 31, 2011

1) Information required by Paragraphs 3 and 4 of Part II of Schedule VI to the Companies Act, 1956.

2) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil, previous Year Nil.

3) Pragjyotish Fertilizer & chemicals Ltd. (PFCL) a subsidiary of the company has net finalised its accounts for 2003-09 to 2010-11 and therefore Sec 212 of the Companies Act 1956 could not be complied with.

4) Related Party Disclosure:

As per accounting Standard 18 issued by the Institute of Chartered Accounts of India. The disclosure of transaction with related parties as defined in the accounting standard are given below:

i) List of related parties with whom transaction have taken place and relationship:

5) Gratuity as per AS-15:

Defined Contribution plan:

Contribution to Defined contribution Plan are recognized and charged to Profit & Loss Account as Employer's Contribution to Provident Fund & Pension Scheme Rs. 1,64,02,046/-

Defined Benefit Plan:

The company provides for Gratuity which is applicable to all permanent and full time employees of the company which is unfunded Gratuity paid out is based on last drawn basic salary and deafness pay & allowance at the time of termination or retirement. The Gratuity scheme takes into account each completed year of service or part there of in excess of six months. The normal age of retirement is 59 years. The annual contribution is borne by the company based on actuarial valuation carried out by them at the year end.

6) The balances of debtors and creditors are subject to confirmation and necessary reconciliation, if any issued to the parties.

7) Previous year's figures have been recasted and re-arranged wherever necessary to make them comparable with the current year's figures.

8) Schedule to balance Sheet & Profit & Loss Account form an integral part of the Balance Sheet and Profit & loss Account.

9) In the opinion of the Board, all current assets, loans and advances and other receivables are approximately of the value stated if realised in the ordinary course of business.

10) An application has been made to the Ministry of Corporate Affairs, Government of India, seeking approval not to attach various documents of its subsidiary company asset in section 212(1) of the Companies Act, 1956.

11) The company has appealed against CSTNAT demand against FY 2008-09 for RS.1, 45, 965/- related to Namrup sale and Rs. 1.53.218/- related to Raninagar sale respectively.

12) Valuation of unsold Stock has been made on conservative basis cased on earlier year's capacity utilization

13) The cash & bank balance Rs. 514,357,302 includes FD pledged against FLC for Rs. 27,300,000 in Axis Bank, Guwahati Branch.

14) All write-offs related to Advance with suppliers, sundry debtors will be completed with in 31-12-2011.

15) The company decided for physical verification of inventories and analysis of non moving, slow moving items will be done with in 31-12-2011.

16) The company spent Rs. 2.54 Crs (3,86.380 $) on CIF basis for importing 42 nos. of Reformer tubes to replace damaged tubes in its reformer section during May 2011.

17) The company decided to go for physical verification of Fixed Assets and the assignment will be completed within 31-12-2011.

18) The company needs an ERP/SAP system in its new projects.

---

Mar 31, 2010

1) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (Previous Year Nil)

2) Pragjyotish Fertilizer & Chemicals Ltd. (PFCL) a subsidiary of the company has not finalised its accounts for 2005-06 to 2009-10 and therefore Sec. 212 of the Companies Act 1956 could not be complied with,

3) Related Party Disclosure:

As per accounting Standard 16 issued by the Institute of Chartered Accounts of India. the disclosure of transaction with related parties as defined in the accounting standard are given below:

I) List of related parties with whom transaction have taken place and relationship:

Pragiyotish Fertilizer & Chemicals Limited Subsidiary Company

Assam Industrial Development Corporation Ltd. Holding Company

Shri Ratul Bordoloi Key Managerial Person

4) Gratuity as per AS-15

Defined Contribution Plan:

Contribution to Defined contribution Plan, are recognised and charged to Profit & Loss Account as Employer's Contribution to Provident Fund & Pension Scheme Rs. 153,37,118/-

Defined Benefit Plan:

The company provides for Gratuity which is applicable to all permanent and full time employees of the company which is unfunded Gratuity paid out is based on last drawn basic salary and dearness allowance at the time of termination or retirement, The Gratuity scheme takes into account each completed year of service or part thereof in excess of six months. The normal age of retirement is years. The annual contribution is borne by the company, based on actuarial valuation carried out them at the year end.

5) The balances of debtors and creditors are subject to confirmation and necessary reconciliation, if any, issued to the parties.

6) Previous year's figures have been recasted and re-arranged wherever necessary to make them comparable with the current year's figures.

7) Schedule to balance Sheet & Profit & Loss Account form an integral part of the Balance Sheet and Profit & loss Account

8) In the opinion of the Board, all current assets, loans and advances and other receivables are approximately of the value stated if realised in the ordinary course of business.

9) An application has been made to the Ministry of Corporate Affairs, Government of India, seeking approval not to attach various documents of its subsidiary company as set in section 212(1) of the Companies Act, 1956.

10) The company has appealed to CIT (Appeal) Shillong for rectification of allowable depreciation as per I/Tax Act, 1961 for the year 2004-2005, 2005-2006, as per the instruction of ACIT Range 2 Dibrugarh

---

Mar 31, 2002

1. Contingent liabilities not provided for in the accounts in respect of:

(a) Demand of Assam Finance Tax for the period from March, 1989 to June, 1993 amounting to Rs. 21.07 lakhs (Previous year Rs. 21.07 lakhs) for which an appeal is pending with the authorities.

(b) Demand of Central Sales Tax for Rs. 0.60 lakhs for the period from 30th September, 1978 to 30th September, 1984 is pending for payment for which rectification petition is pending with the sales tax authority.

(c) Claims against company not acknowledged as debt for which suits are pending for Rs. 81.47 lacs. (Previous years Rs. 81.47 lacs).

(d) Suit filed at Guwahati High Court for Rs. 4.67 Lacs (Previous year Rs. 4.28 lacs) against the company by its 9 (nine) officers.

2. PAY REVISION:

The Board has approved pay revision w.e.f. 1.4.1999 in its meeting No. 213 held on 24th April 2002 subject to clearance by the State Government. Estimated liability in this account has been provided for Rs. 101.00 lacs for the period from 1999-2000 to 2001-02. The liability is provided for in accordance with the approval of the Board and in addition to interim Relief being paid.

3. Previous years figures have been recasted, and re-arranged wherever necessary to make them comparable with the current years figures.