Ar 201112
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CHAIRMAN’S SPEECH Dear Gentlemen, On behalf of Board of Directors and employees of HIL, I have great pleasure in welcoming you all on the occasion of the 58th Annual General Meeting of your Company. I would like to sincerely thank you all for being with us on this important occasion. The report of the Directors and audited accounts for the year ending 31st March 2012 along with the report of the Auditors and comments of Comptroller and Auditor General of India (CAG) has already been circulated. With your permission I take them as read. I am pleased to inform that CAG has given NIL comments for 2011-12 as well. I have, in my addresses in previous AGMs, highlighted the contributions, HIL is making to the society by keeping the dreaded diseases like Malaria and Kala Azar under check. The company has emerged as the leading supplier of DDT to the globe. It is a matter of pride to all of us that UNIDO is buying DDT from us for supplying to Zimbabwe. South Africa, Namibia, were also supplied DDT during 2011-2012. In spite of the confidence the company has in DDT, we see the writing on the wall and has taken the lead in developing an alternative to DDT to be used as an Indoor Residual spray. The new molecule is expected to be a breakthrough in vector control. The work is being carried out at a renowned university and is regularly being monitored by our team of scientists and engineers. Your Company is committed to explore the emerging options of disease vector control, development of alternative vector control interventions either through research / co-marketing arrangements, tie ups, collaborations or technology transfer. Your Directors are having regular discussions and meetings with various agencies for technology for Insecticide treated nets (ITN).
On the crop protection segment, HIL plays crucial a role by saving agricultural crops from pest menace through its high quality pesticides manufactured in state of the art manufacturing units. Your Company is engaged in manufacture of agro chemicals comprising of insecticides, weedicides, herbicides, fungicides, acaricides and fumigants. The company is buoyant on its outlook and is regularly adding new molecules to its product portfolio. Plant to manufacture Buprofezin is under erection and civil work is on to put up a multi-product plant to manufacture Chloropyriphos, Imidacloprid, Acetamiprid and Triazophos etc. Agriculture accounts for Rs.11 lacs crores of Indian GDP and is the source of livelihood for two-thirds of its population. A healthy agricultural sector is, therefore, key for balanced growth of Indian economy. Hence, every effort is being made by your company to carry out continuous research and development for development of safe, economical and environment friendly pesticide formulations. During the year 2011-12, we have initiated research on developing surfactants for various pesticide formulations. Research is on to develop soil amendments so as to regain the fertility of soil, for which soil samples have been collected from locations. This is expected to be a boon to the farmers. Till now, your Company was operating in 2 major segments i.e. public health and crop protection. Your directors have visualized that there are lot of opportunities in other areas of agriculture, where existing infrastructure and marketing network of the Company can be effectively used. Seed has been identified as a thrust area. Ministry of Agriculture, Government of India has given recognition to your Company as a nodal agency for certified seed production and marketing of field crops and vegetables. Accordingly, to cater to the requirements of high quality seed, initiative was taken to open a seed division so that HIL becomes a one stop shop for two critical agricultural inputs i.e. seed and pesticides. Company has facilitated the Seed division with adequate infrastructure and manpower and senior executives have been deputed to make seed a major contributor to our turnover in coming years.
2011-12 was a very challenging year for the Company. One of our highest selling crop protection products, Endosulfan was banned for production and sale by the Hon’ble Supreme Court of India. Importance of Endosulfan can
be understood from the fact that it used to account for approximately 20% of our annual Sales Turnover. In spite of a ban on production and sale of Endosulfan, this financial year was a remarkable year in terms of turnover and profitability. During the year, the total production of pesticides was 16363 MT/KL and the Company could increase the turnover to Rs.279.82 crores, the highest ever in our corporate History as against Rs.271.04 crores during last year. The Company posted a Profit before Tax Rs. 2.81 crores. The accumulated losses came down to Rs.4.31 crores and the net worth of the company increased to Rs.86.86 crores.. Your Company’s performance has also been well recognized and the same is reflected in various awards and recognitions received during the year. Your Chairman and Managing Director was conferred an award for Excellence for “Outstanding Contribution to the Public Sector Management-2010” by the Standing Committee on Public Enterprises (SCOPE). This award was conferred by SCOPE under Individual Leadership Category for steering the Company out of its sickness with a restructuring proposal merely through cleansing the balance sheet of the Company without any cash infusion. This was received from the hands of our Honourable Prime Minister. The fact that your company is a continuous performer is reflected from the “Very Good” MOU rating obtained by the company for the performance for the year 2010-11. Being a responsible Corporate Citizen, your company is committed towards upliftment of deprived, under-privileged and differently abled persons of the society and in this direction, a number of initiatives has been undertaken which includes providing free books to the needy for education, uniforms etc. to School Children, providing safe drinking water, Community health insurance scheme, contribution towards laying a drinking water pipe line etc. Your directors have also approved and adopted a CSR policy drafted in line with DPE Guidelines. Your company has been complying with the requirements of Corporate Governance as stipulated by the Department of Public Enterprise, Government of India in this regard. The Company is committed to confirm to the highest standard of Corporate Governance in the Country.
Your Company has taken a number of initiatives to maintain cordial relations with its employees. Wage settlement for 10 years (2007-2017) for workmen employees was implemented last year and approval for implementation for, Board level, and below Board level executives has been approved by the Government. I would like to express my thanks and appreciation to my esteemed colleagues on the Board and to all employees of HIL for their commitment and dedication. I am confident that with committed efforts, your company will further improve its performance in coming years. I take this opportunity to express my sincere gratitude for the immense support and guidance received by your company from Ministry of Chemicals and Fertilizers, Ministry of Health & Family Welfare, Ministry of Agriculture, Cost Accounts Branch of Ministry of Finance, Company’s Bankers, Auditors and all the Share holders and look forward for their continued support in ensuring smooth and successful operation of the company. Thanking you all. New Delhi 28th September, 2012 K.Harikumar Chairman & Managing Director
DIRECTORS' REPORT To the Members, Hindustan Insecticides Limited, The Directors of your Company have pleasure in presenting the 58th Annual Report on the business and operations of the Company together with the Audited Accounts for the year ended 31st March, 2012. 1. FINANCIAL PERFORMANCE:
The company achieved an all time record gross turnover of Rs.279.82 crores (Previous year Rs.271.04 crores) and recorded a gross profit of Rs.8.99 crores (previous year gross profit of Rs. 8.02 crore) before providing for depreciation and interest. The growth was achieved despite ban on production and sale of one of our key products viz. Endosulfan which used to account for more than Rs.50 crores per year. This shows the commitment of the entire team in converting challenges into opportunity. The net profit for the year after providing for depreciation and interest was at Rs.2.81 crores (previous year net profit of Rs.3.33 crores). The current year’s financial results are summarized as under:(Rs. in crores) Gross Profit (Profit before depreciation, interest and tax) Less: Depreciation Interest Profit before tax Income Tax Net Profit for the year Add: Brought forward loss Profit/Loss carried forward 8.99 4.09 2.09 2.81 1.21 1.60 (-) 5.91 (-) 4.31 8.02 3.60 1.09 3.33 1.75 1.58 (-) 7.49 (-) 5.91
The net worth of the company has increased to Rs.86.86 crores as against net worth of Rs. 85.13 crores the previous year.
2.
PRODUCTION PERFORMANCE:
The total production achieved during the current year was 16363 MT/KL against 17473 MT/KL during the previous year. The reduction in production is due to ban on production of ENDOSULFAN w. e f 14th May, 2011. 3. SALES PERFORMANCE:
In spite of ban on production of Endosulfan, the Company could increase the turnover to Rs.279.82 crores including Excise Duty and Education Cess during the year as against Rs.271.04 crores during last year. The turnover achieved is highest ever since inception.
4.
EXPORTS:
The company achieved the export turnover of Rs.21.18 crores as against export turnover of Rs. 28.96 crores during the previous year.
5.
SEED DIVISION
The Company has ventured into this new line of activity for which Ministry of Agriculture, Government Of India has given recognition as a nodal agency for certified seed production and marketing of field crops and vegetables.
6.
RESEARCH AND DEVELOPMENT:
The Company carried R & D activities in various areas like analysis of pesticides and development of safe, economical and environment friendly recipes for the existing pesticides formulations and carried out regular in-house R&D activities to reduce the cost of production and improve the product quality. As a result of regular R & D activities, the Company has been able to tackle process related problems at Units and replace higher cost inputs with suitable low cost alternatives. The R&D is also focusing on developing surfactants for inhouse use, developing soil amendments so as to regain soil health etc. 7. MOU RATING:
The performance of the Company for the year 2010-11 has been evaluated by the Department of Public Enterprises on various Memorandum of Understanding (MoU) parameters and rated as "Very Good".
The Memorandum of Understanding between your Company and Ministry of Chemicals and Fertilizers, Government of India for the year 201213 was signed on 19th March 2012.
8. AWARD/RECOGNITION:
Shri K. Harikumar, Chairman & Managing Director was conferred an award for Excellence for “Outstanding Contribution to the Public Sector Management-2010” by the Standing Committee on Public Enterprises. The award was received by Shri K.Harikumar from the Hon’ble Prime Minister of India on 31.1.2012 at Vigyan Bhawan, New Delhi.
ACCREDITATION:
All the manufacturing units of the Company are ISO certified. The units at Rasayani and Bathinda has been assessed and registered as complying with the requirements of International Standards of ISO 9001:2000, ISO 14001:2004 and ISO 18001:2007. While Udyogamandal unit complies to ISO 9001 to 14001, the Unit is on its way to obtain ISO 18001 certification. The Corporate Office is ISO 9001 certified. 9. CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES:
As a responsible corporate citizen, your Company is committed towards up-liftment of under privileged section of the society and has supported various social and community initiatives touching the lives of large number of people residing near to HIL factories. During the year, the Company conducted a baseline survey for its plant at Udyogamandal, Cochin to identify CSR activities in various areas and adopted a Board approved CSR policy in line with the DPE Guidelines on Corporate Social Responsibility. CSR initiatives taken by the Company includes education by means of free distribution of books, uniforms etc. to School Children at Eloor village in Udyogamandal, Kerala and Sawla Village near Rasayani in Maharashtra and providing safe drinking water to the residents of Eloor Gram Panchayat in Kerala and Community Health Insurance Scheme. The Company also contributed for laying a drinking water pipe line to Sawla Gram Panchayat near Rasayani in Maharashtra. 10. HUMAN RESOURCE DEVELOPMENT:
The Company has made onerous efforts and thrust towards development and optimum utilization of manpower to build up a healthy work culture & to achieve higher goals in productivity as well as to meet the challenges of the future.
Manpower: The total manpower as on 31.03.2012 was 1284 employees, comprising of 279 executives and 1005 non-executives compared to 1371 employees comprising of 287 executives & 1084 non-executives during the previous year.
Implementation of Long Term Settlement in respect Of Workmen employees: A Memorandum of Understanding (MOU) was reached with the Unions’ of the Company on 01.02.2011 for revision of pay scales with effect from 01.04.2007 and other benefits in respect of workmen employees of the company. The revision of pay scales in respect of workmen employees of the company has been implemented with effect from 28.04.2011.
Industrial Relations: The industrial relations of the Company remained cordial during the year under report.
SC/ST/OBC: The Presidential Directives on Reservation for Scheduled Caste/Scheduled Tribes/OBC were continued to be implemented during the year. The total number of SC/ST/OBC employees as on 31.03.2012 was :-
No. Scheduled Castes Scheduled Tribes OBC 204 80 416 ----Total 700 -----
The Activities/Steps taken for the Welfare of SCs & STs by the Company : The Company has undertaken the following welfare measures for the benefit of Scheduled Castes/ Scheduled Tribes Communities in the neighboring areas of our units:-
i).
Distribution of text/note books and uniforms to the school going children belonging to SCs & STs communities every year.
ii)
Assist local bodies in the supply of drinking water, in setting up of Primary Health Centers etc. as and when such requirements arose. The majority of beneficiaries belong to SCs & STs communities.
11. PARTICULARS OF EMPLOYEES:
None of employees of the Company is drawing remuneration in excess of the limits prescribed under section 217(2A) of the Companies Act 1956 read with the Companies (Particulars of employees) Rules, 1975. 12. IMPLEMENTATION OF OFFICIAL LANGUAGE HINDI:
Your company conducted quarterly meetings of Official Language Implementation Committee regularly to discuss and review the progress in Hindi and to achieve the targets of Annual Programme issued by the Department of Official Language (Ministry of Home Affairs).
The website of the company is also bilingual. Leaflets and labels of all products manufactured by the company are not only issued in English and Hindi but also in regional languages.
During the year, a workshop has been organized on Unicode to train the employees for doing their work in Hindi, in which 21 employees had participated. Besides organizing Hindi workshops, the Company’s head office and its Units also organized “Hindi Pakhwada” during which various Hindi competitions were organized such as Hindi Essay, Noting, Drafting, Debate, Hindi Writing, Translation and Public Speech. Successful candidates were awarded prizes in cash & kind under the incentive scheme introduced in the company. In the Annual Sales meeting, Senior Officers of the Marketing Department and Regional Sales Offices were acquainted with the Official Language Act, 1963 and the Official Language Rules, 1976 and the targets of the Annual Programme. The Committee of the Parliament on Official Language inspected the Head office. During the year, The Udyogamandal Unit has got 2nd price for excellent performance of Official Language from Cochin TOLIC. An employee of the company got 1st prize in noting & drafting and 16 employees got cash awards & certificates in various Hindi Competitions conducted by the Kendriya Sahivalaya Hindi Parishad and 24 employees of Rasayani unit passed the Pragaya exam organized by Hindi Shikashan Yojana.
13.
THE RIGHT TO INFORMATION ACT 2005:
In consonance with the provisions of the Right of the Information Act, 2005, Company has taken requisite measures and appointed Appellate Authority / Public Information Officers at all the Units / Offices of the Company in order to respond effectively to the requests of the applicant under the act. The purpose of the act is to bring transparency in the functioning of organization and the Company has created mechanism to meet the objective.
14.
REPORT ON ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO:
In terms of Company's (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 and notification No. 1029 dated 31.12.88 particulars relating to a) Conservation of Energy b) Technology Absorption and c) Foreign Exchange Earning and Out-go are annexed to this Report. 15. DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to section 217 (2AA) of Companies Act 1956, your Directors hereby confirm that:i) In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and no material departure has been made therefrom by the Company;
ii)
the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the company for the period under review;
iii)
the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safe-guarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv)
The Directors have prepared the Annual Accounts on a going concern basis.
v)
Proper systems are in place to ensure compliance of all laws applicable to the Company.
16.
COMPLIANCE WITH CORPORATE GOVERNANCE:
Hindustan Insecticides Limited is a Central Public Sector Enterprise, the entire shareholding is held by Govt. of India. HIL has been continuously making efforts towards raising the standards of Corporate Governance. Report on Corporate Governance is annexed as Annexure-I. 17. CODE OF CONDUCT FOR BOARD MEMBERS AND SENIOR MANAGEMENT:
In accordance with the provisions of the Corporate Governance, a Code of Conduct for the Board members and senior management has been framed and made effective by the Board. 18. BOARD OF DIRECTORS: The current composition of the Board of Directors of your Company is under: Sr. Name of Director No. 1 2 3 4 5 Shri K. Harikumar Shri Rakesh Sharma Shri V Sekar Dr. AJ Vara Prasad Shri Arun Agarwal Designation Chairman Director & Date of present appointment Managing 01/10/2010 12/06/2009 24/06/2010 Nominee 14/12/2011 Nominee 25/04/2012
Raj Director (Marketing) Director (Finance) Government Director Government Director
There were following changes in the Board of Directors of your Company:
a) Ministry of Chemicals and Fertilizers, Government of India, vide its order dated 4th August, 2011, appointed Smt. Neelkamal Darbari, Joint Secretary and Sh. Pawan Gupta, Deputy Secretary in the Department of Chemicals & Petrochemicals as Part–time Government Director on the Board of Directors of Hindustan Insecticides Limited in place of Shri S.C. Gupta, Joint Secretary and Smt. Asha Rani Rungta, Director for a period upto the next Annual General Meeting (2012) including any adjourned meeting. b) Ministry of Chemicals and Fertilizers, Government of India, vide its order dated 14th December, 2011, appointed Dr. AJ Vara Prasad, Joint Secretary, Department of Chemicals and Petrochemicals as Part–time Government Director on the Board of Directors of Hindustan Insecticides Limited in place of Smt. Neelkamal Darbari, Joint Secretary for a period upto the next Annual General Meeting (2012) or till further orders. c) Ministry of Chemicals and Fertilizers, Government of India, vide its order dated 25th April, 2012, appointed Shri Arun Agarwal, Director in the Department of Chemicals and Petrochemicals as Part–time Government Director on the Board of Directors of Hindustan Insecticides Limited in place of Shri Pawan Gupta, Deputy Secretary for a period upto the next Annual General Meeting (2012) or till further orders. The Board wishes to place on record its deep appreciation for the valuable services rendered by Sh. S.C. Gupta, Smt. Neelkamal Darbari, Smt. Asha Rani Rungta and Shri Pawan Kumar Gupta during their tenure as part time directors.
19.
AUDIT COMMITTEE:
The Audit Committee has been constituted in accordance with the requirements under the Companies Act, 1956. The constitution of Audit Committee as on 31.03.2012 is as under: 1. Dr. AJ Vara Prasad, Chairman (From 14.12.2011) 2. Shri K. Harikumar, Member. 3. Shri Pawan Gupta, Member. 4. Smt. Neel Kamal Darbari, Chairman (Upto 14.12.2011) During the year under report, Shri V Sekar, Director (Finance) also attended the meeting of Audit Committee. The Committee functions in accordance with the provisions of the Companies Act, 1956. 20. STATUTORY AUDITORS:
The Comptroller and Auditor General of India appointed following firms of Chartered Accountants as Statutory Auditors / Branch Auditors of the Company for the year 2011-12 in respect of the units/offices shown against each: M/s.AVA & Associates, New Delhi. Bathinda Unit, Regional Sales Office at Delhi, R&D Centre at Gurgaon & Head Office and consolidated accounts.
M/s.Jayesh Mumbai.
Sanghrajka
&
Co., Rasayani Unit and Regional Sales Offices at Akola and Ahmedabad.
M/s. Joseph & Nair, Kochi, Kerala
Udyogamandal Unit and Regional Sales Office at Hyderabad and Coimbatore
M/s.P. Bandyopadhyay & Co., Kolkata
Regional Sales Office at Kolkata
The Statutory Auditors' Report and replies of the Directors to their comments/ observations are annexed to Accounts.
21.
COST AUDITORS:
The following were appointed as Cost Auditors of the Company for the year 2011-12 in terms of Section 233-B of the Companies Act, 1956. 1. M/s N.P.Gopalakrishnan & Co., Kochi. 2. M/s V.J. Talati, Kalyan. 3. M/s K.C. Kohli & Co., Delhi 22. Udyogamandal Unit. Rasayani Unit.
Bathinda Unit.
MANAGEMENT DISCUSSIONS & ANALYSIS:
A report on Management Discussions and Analysis is placed at Annexure-II. 23. SUBSIDIARY COMPANY (SPCL) :
The Subsidiary Company i.e. Southern Pesticides Corporation Limited was ordered to be wound up on 2.4.2002. The Company was officially handed over to Official Liquidator attached to A. P. High Court, Hyderabad. Since, the Company is under liquidation, permission is not required from Ministry of Company Affairs, hence Annual Accounts of SPEC are not enclosed. However, a statement on the holding of interest in the said Company as required under
Section 212 of the Companies Act, 1956, is annexed to the Annual Accounts of the Company.
24.
ACKNOWLEDGEMENTS:
Your Directors gratefully acknowledge the valuable guidance and support extended by the Government of India in particular Ministry of Chemical and Fertilizers. Your Directors also wish to thank Ministry of Health, Ministry of Agriculture, Cost Accounts Branch of Ministry of Finance, State Governments and the Company’s Bankers for their continued support and co-operation. The Directors are also grateful to the C & AG of India, DPE, Statutory Auditors various suppliers and valued customers for their continued support and co-operation. The Directors also wish to place their deep sense of appreciation for the sincere efforts and hard works put in by all the employees of the Company and look forward to their services with zeal and dedication in the years ahead to enable the Company to scale even greater heights. For and on behalf of the Board of Directors
Sd/( K. Harikumar ) Chairman & Managing Director
Annexure-I
REPORT ON CORPORATE GOVERANCE Company’s Philosophy on Corporate Governance.
The philosophy of the Company in relation to Corporate Governance is to ensure transparency, disclosures and reporting that conforms fully with laws, regulations, guidelines and to promote ethical conduct throughout the organization with the primary objective of enhancing shareholders value. The Company is committed to conforming to the highest standards of Corporate Governance in the country. Board of Directors Composition of Board: The Board of HIL comprises five Directors out of which three are functional Directors including the Chairman & Managing Director and two non-executive Directors who are nominees of the Administrative Ministry, Government of India. During the financial year 2011-12, the following Directors were on the Board of HIL. Executive Director: Shri K.Harikumar-Chairman & Managing Director Shri R.R Sharma-Director (Marketing) Shri V.Sekar-Director (Finance) Non-Executive Directors: Shri Suresh Chandra Gupta (upto 4.8.2011) Fertilizers Ms. Asha Rani Rungta (upto 4.8.2011) Fertilizers Smt. Neelkamal Darbari Joint Secretary, Ministry of Chemicals & Director (Finance), Ministry of Chemicals & Joint Secretary,
(from 4.8.2011 to 14.12.2011) Fertilizers Shri Pawan Gupta (from 4.8.2011 25.4.2012) Fertilizers Dr. AJ Vara Prasad (w.e.f 14.12.2011) Fertilizers
Ministry of Chemicals & Deputy Secretary, Ministry of Chemicals & Joint Secretary, Ministry of Chemicals &
Number of Board Meeting/Attendance of each Directors at Board Meeting and the last AGM held during the year 2010-11. Date of Meeting Place of Meeting Directors present.
27.05.2011 10.08.2011 21.10.2011 3.1.2012 26.02.2012
New Delhi New Delhi New Delhi New Delhi New Delhi
4 Nos 5 Nos 5 Nos 4 Nos 4 Nos
Sl. Name of Directors No.
Number of Board meetings attended.
Attendance at last AGM held on 28.09.2010
No. of other Directorship in other companies as on 31.03.2011.
1. 2.
Shri K. Harikumar Shri Suresh Chandra Gupta
5 Nos 1 Nos.
Yes -
1$ 1@
3. 4. 5. 6. 7. 8.
Ms Asha Rani Rungta Smt. Neelkamal Darbari Shri Pawan Gupta Dr. AJ Vara Prasad Shri RR Sharma Shri V Sekar
2 Nos 2 Nos 2 Nos 5 Nos 5 Nos
Yes Yes
2& 2# Nil 2*# Nil Nil
$ Crop Care Federation of India @ Hindustan Organic Chemicals Limited & IDPL and KAPL # Brahmaputra Cracker and Polymer Limited, Hindustan Organic Chemicals Limited * Kangra Central Co-operative Bank, Food and Civil Supply Corporation Audit Committee. As per the provisions of Section 292-A of the Companies Act 1956, the Company is having an Audit Committee consisting of the following Directors. The Audit Committee has the powers, roles and functions in accordance with the Companies Act 1956. 1. Smt. Neelkamal Darbari, Chairperson.(upto 14.12.2011) 2. Dr. AJ Vara Prasad,Chairman 3. Shri K. Harikumar, Member. 4. Shri Pawan Gupta, Member.(upto 25.04.2012)
During the year 2011-2012, four Audit Committee meetings were held on 10.08.2011, 21.10.2011, 3.1.2012 & 26.03.2012 Name No. of meetings held during the year. Meetings attended.
Smt. Neelkamal Darbari Dr. AJ Vara Prasad Shri K. Harikumar. Shri Pawan Gupta
4 Nos 4 Nos 4 Nos 4 Nos
2 No 2 No. 4 No. 2 No.
Remuneration committee. Remuneration and allowances payable to Directors are determined by the President of India. However Department of Public Enterprise has directed that each CPSE will constitute a remuneration committee headed by a Part time non- Official independent Director which will decide the Annual Bonus/ Variable pay policy for its distribution across the Executive. After the Board approval the Remuneration Committee will be formed, committee will aim to make such policies that will motivate employees to excel in performance, retain talent in Organization and award merit.
Details of remuneration of functional Directors of the Company for the year 2011-2012. S. N o. 1. 2. 3. Name Salary & Other allowances benefits 1107015/1061300/774870/496796/1138906/252941/Total
Shri K. Hari Kumar. Shri R. R. Sharma. Shri V. Sekar
1603811/2200206/1027811/-
Share holders/investors grievance committee. Hindustan Insecticides Limited is a Government Company and the entire share capital is held by President of India and his nominees. Hence, no such committee is required to be constituted. Annual General Meetings. Sl. No. Year Location Date & Time Whether any special resolution passed. No No No
1. 2. 3.
2008-09 2009-10 2010-11
New Delhi New Delhi New Delhi
24.09.2009 (12.00 Noon) 28.09.2010 (12.00 Noon) 28.09.2011 (12.00 Noon)
Disclosures There were no material transactions with the Directors on the management or their relatives that may have potential conflict with interest of the Company at large. There have been no instances of non-compliance by the Company to any matter related to capital market since HIL is a non-listed Company and any matter related to any guidelines issued by Government during the last three years.
Whistle Blower Policy The Company has established a mechanism for employees to report concern about unethical behavior, actual or suspected fraud or violation of code of conduct or ethics policy. The employee can have direct access to the Chairman & Managing Director. The Whistle Blower Policy will safeguard against victimization of employees.
Vigilance
HIL being a PSU, the records of the Company are open to Audit by Comptroller and Auditor General of India and open to inspection by Vigilance. HIL has a Vigilance Deptt. headed by CVO.
Means of communication
Annual financial performance are posted in the Company’s website www.hilindia.com General shareholders information The entire paid up share capital of the company is held in the name of President of India and his nominees. AGM details are furnished at above. The Company shares are not listed in any stock exchange.
CS CHETAN GOEL 204,205, C-4, Sector 6, Rohini, Delhi-110085
CERTIFICATE ON CORPORATE GOVERNANCE To, The Members of Hindustan Insecticides Limited.
We have examined the compliance of the conditions of Corporate Governance by Hindustan Insecticides Limited for the financial year ended on March 31, 2012 as stipulated in DPE Guidelines on Corporate Governance for Central Public Sector Enterprises. The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review of the procedures and implementations thereof, adopted by the company for ensuring compliance with the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the company. In our opinion and to the best of our information and according to the explanation furnished to us, we certify that the company has complied with the conditions of Corporate Governance as stipulated in the above mentioned DPE Guidelines except clause 3.1.4 of Guidelines on Corporate Governance regarding number of independent Directors in the Board of Directors. However in this connection, requisite application has been forwarded by the Company to concerned Administrative Ministry. With Sincere Regards Sd/ACS Chetan Goel (COP No. 11165 )
ANNEXURE-II
MANAGEMENT DISCUSSION AND ANALYSIS
Management discussions and analysis aims to elucidate the developments in the business environment and assess the performance of the company in comparison to the last report and present the future outlook. Statements in the management discussion and analysis describing the company’s objectives, projections, estimates, expectations may be “forward looking statements”. It is cautioned that factors like climatic conditions, economic conditions affecting the demand/supply and price conditions in the domestic and overseas markets, changes in Govt. regulations and other incidental factors would have an impact on the actual results.
HIL. incorporated in 1954. to manufacture and supply DDT to Govt. of India has grown manifold, diversified and transformed into a total solution provider both for the public health and crop protection segments. The company has an equal foothold in both the segments and expect to further consolidate its position in its sphere of activities.
The Company has drawn an ambitious growth strategy to further consolidate its portfolio growing aggressively in new markets. HIL has been categorized as a nodal agency for certified seed production and marketing field crops and vegetables by Deptt.of Agriculture, Govt.of India and is confident that this will spearhead our growth plans..
The company has contributed perhaps more than any other Public Sector Undertaking to improve the rural health and agricultural productivity thereby aiming at bringing in prosperity to rural India.
As is known, rural health has a direct co-relation with agricultural productivity as agriculture is the main source of livelihood for rural India. Crop loss and loss of wages due to ill health has a direct linkage to rural prosperity.
INDUSTRY STRUCTURE, OPPORTUNITIES AND THREATS
MARKET
SCENARIO,
a)
Public Health segment
HIL is today the only major manufacturer and supplier of DDT in the world DDT is perhaps one of the most misunderstood products though it has saved more lives than penicillin and saved millions from Malaria, which probably has killed more people than both world wars put together. The world at large is recognizing that human lives are more important than untested, unproven, hypothetical environmental concerns. In line with the above, more and more countries have come forward and expressed their desire to the Stockholm Convention to use DDT for their vector control operations.
Procurement of DDT by UNDP for supply to Zimbabwe has renewed the confidence India and many African countries have been posing on the product and it is expected that more countries will come forward as Malaria remains to be the major killer specially in SubSahara Africa where every second a child dies due to Malaria. HIL exported DDT in the last financial year to countries like South Africa, Zimbabwe, Namibia, etc.and is today the leading supplier of DDT to the globe.
HIL also manufacture Malathion 25% WDP and supplies to various State Govts. for vector control purposes.
HIL has also taken up venturing into alternate methods of disease vector control like manufacture of synthetic pyrethroids, etc. apart from looking at other emerging options, so that the company can maintain itself as key supplier to the public health segments not only in India but also abroad,
b)
Crop protection segment
Agriculture accounts for Rs. 11 lacs crores of Indian GDP and is the source of livelihood for two-thirds of its population. A healthy agricultural sector is, therefore, key for balanced growth of Indian economy.
Indian agriculture has grown by leaps and bounds since Independence by resorting to intensive agriculture using pesticides, fertilizers, hybrid seeds etc. India has emerged as the second largest agricultural economy in the world after China overtaking USA which used to supply wheat under the PL-480 Food Programme.
The food production has gone up from 151million tones during 1950-51 to 950 tonnes during 2010-11 which is an ample proof of the growth we have achieved in agricultural production and productivity. With the granaries full with a record production of 250 million foodgrains, the scope of post harvest crop protection chemicals are also looking up.
The key drivers of the industry are growing food demand, limited land availability growth in horticulture/floriculture, greater awareness among farmers and Govt. etc.,
The industry is highly fragmented with diverse players ranging from multi national corporates with their patented products, big Indian corporates, middle of the road players and even spurious manufacturers vying for a piece of the pie.
The company is engaged in manufacture of agro chemicals comprising of insecticides, weedicides, herbicides, fungicides, acaricide and fumigants.
The company is buoyant on its outlook and are regularly adding new molecules to the product portfolio. Plant to manufacture Buprofezin is under erection and civil work is on to put up a multiproduct plant to manufacture Chloropyriphos, Imidacloprid, Acetamiprid and Triazophos at Rasayani. The company is also looking at debottlenecking the existing Mancozeb facility at Udyogamandal.
c)
Risks and concerns
Inspite of the growth Indian agriculture has achieved over the years, the average Indian farmer still remains poor. Farmers face greater challenges like unpredictable monsoon, no guarantee on returns, apart from constraints on storage and transportation.
Inspite of the contribution made by the industry, it is coming under attack from environmentalists. Indian farmers are often accused of using excessive dosage of pesticides. Pesticide consumption in India is less than 1 kg. per hectare as against 4-5 kg. per hectare in USA and 11 kg. in Japan. Pesticides are also alleged to be the cause of increasing cancer when none of the agricultural pesticides currently used in India are classified as cancer causing by IARC/WHO. Another false
propaganda is that pesticides residues affect our agricultural exports while it is proved that filth and microbial contamination.is the cause of more than 50% rejection and pesticides residues account for only around 1.9% of rejection.
The agro chemical industry is directly affected by complex needs, requirements, demand for different products as pest attacks are often region/crop./specific and calls for very quick response. This calls for higher level of inventory, resulting in higher credit period to push the stocks and at times even expiry of the shelf life of short expiry products.
An abrupt cessation on Endosulfan manufacture and sale pursuant to an ad-interim order of Hon’ble Supreme Court threw open lot of challenges to the company. Though the company surpassed sale targets through sale of other products, some quantity of Endosulfan Technical and formulation apart from various raw materials are lying in store.
The company, over the years, has established itself as a quality supplier of pesticides at reasonable prices and is often used as a bench mark in evaluating prices. With low entry barriers and a customer base who often gets lured by the dealer technique of ‘push sales’, the margins of generics are shrinking for quality producers.
As a responsible supplier, HIL also believes in educating the community about the safe and judicious use and has organized many camps for its target market both in the crop protection and the public health segments which has been widely appreciated.
With more and more states declaring themselves to be organic and many organic products getting distributed under the garb of organic, the company is putting its best to safeguard its terrain and grow by adopting
innovative methods like tie-ups with Fertilizer companies, venturing into seed market, take up contract manufacturing etc.
HIL today supplies its pesticides through the distribution channels of RCF, KRIBHCO, NFL, RAJFED, etc. and has drawn up ambitious plans for future.
Sales performance
The company could increase the turnover to Rs.279.32 crores including Excise duty and Education Cess during the year as against Rs.271.04 crores during last year. The turnover achieved is highest ever since inception of HIL.
Corporate social responsibility
Directors Report 2011-12 may kindly be referred and its contents and details in respect of Items No. 9 may be seen.
Internal control system and adequacy
The company has a proper and adequate system of internal controls. The internal audit function has been assigned to professional firm of Chartered Accountants. All major findings are reported and discussed.
A strong internal audit system and effective Audit Committee has contributed to a strong and adequate internal control system. The company is also implementing an Enterprise Resource Planning(ERP) package to further streamline the internal control.
Financial performance and Analysis
The sales turnover of the company stood at Rs.279.82 crores as compared to Rs.271.04 crores during last year. Inspite of the huge impact due to loss of Endosulfan business, the net profit for the year improved to Rs.1.60 crores during the current year.
Human Resource Development/Industrial Relations
Your company believes that human capital is a great asset. A long term settlement with the employees Union was signed during the year. The company in its history has not lost a single manday due to labour unrest. The company has a dedicated team at all levels to keep the flag flying high.
Cautionary statement
As stated in the opening paragraph, extraneous conditions including vagaries of monsoon can have an impact on the actual operating results of the company.
ANNEXURE TO DIRECTORS' REPORT FORM A Form for Disclosure of particulars with respect to Conservation of Energy DESCRIPTION UNIT 2011-12 2010-11
A 1
POWER AND FUEL CONSUMPTION ELECTRICITY Total Units Total Amount Rate/Unit FURNACE OIL Quantity Total Amount Rate/KL FUEL OIL (HSD) Quantity Total Amount Rate/Unit Consumption per unit of production DESCRIPTION
KWH Rs. Rs.
12931612 78548743 6.07
12465219 64242231 5.15
2
KL Rs. Rs.
4991.497 191469442 38359.12
4733.873 135320313 28585.54
3
KL Rs. Rs.
128.404 5452330.000 42462.31
116.382 4630462 39786.75
B.
UNIT
2011-12
2010-11
1
DDT TECHNICAL Electricity Furnace Oil DDT FORMULATION Electricity Furnace Oil MALATHION TECHNICAL Electricity Furnace Oil MALATHION FORMULATION Electricity ENDOSULFAN TECHNICAL Electricity Furnace Oil
KWH LTR
1246 1117
1222 1050
2
KWH LTR
739
674
3
KWH LTR
1248 321
902 247
4
KWH
96
89
5
KWH LTR
1687 554
1006 370
6
ENDOSULFAN FORMULATION(HILDAN) Electricity
KWH
64
25
7
MONOCROTOPHOS TECHNICAL Electricity Furnace Oil MONOCROTOPHOS FORMULATION Electricity BUTACHLOR TECHNICAL Electricity Furnace Oil Coal BUTACHLOR FORMULATION Electricity DICOFOL TECHNICAL Electricity Furnace Oil Coal DICOFOL FORMULATION Electricity
KWH LTR
978 328
810 321
8
KWH
25
24
9
KWH LTR MT
632 1798
470 1761
10
KWH
47
44
11
KWH LTR MT
5770 2717
6006 2143
12
KWH
30
25
13
MANCOZEB Electricity Furnace Oil Fuel Oil (HSD)
KWH LTR LTR
1085 96 193
1002 107 193
FORM B
Form for Disclosure of particulars with respect to technology absorption
Research and development (R&D) 1. Specific areas in which R&D a) Replace wet analysis by instrumentation is being carried out by the methods for analysis of Pesticides and their Company formulation. b) Development of safe, economical and environment friendly recipes for the existing pesticide formulations, to improve cost efficiency by using locally available indigenous raw materials and inerts. c) Improve existing processes to enhance the efficiency, use of less toxic and eco-friendly raw materials, and to minimize environmental pollution.
d) Assist manufacturing units in Plant Trails for commercial scale implementation of Technologies developed by in –house R & D at Laboratory and Pilot Plant levels. 2. Benefits derived as a result of the above R&D a) Tackled process related problems at Units. b) Replaced higher cost inputs with suitable low cost alternatives.
3. Future Plan of Action
a) Synthesis of Surfactant for DDT. b) Development of Soil amendments - From laboratory experiments it is observed that the amendments which have been prepared in laboratory with different composition are reducing the soil salinity and have made the soil pH to the optimum value. Detailed study is planned in field level.
c) To continue the study for the search of new solvents, fillers, emulsifiers and other Raw materials used in various agro formulations, which are eco-friendly and cost effective in order to make our products competitive in the market.
d) To tackle periodical process related problems in our different units, for quality maintenance and to give technical assistance for commercial level scale up activities of various products as and when needed.
4. Expenditure on R&D : a) Capital b) Recurring c) Total Rs. Nil Rs.1,11,57,779/Rs.1,11,57,779/-
FORM C
FOREIGN EXCHANGE EARNING & OUTGO:
i)
Activities relating to exports, initiatives taken to increase exports, development of new export market for products & services and export plans.
During the year, the Company exported 74.480 MT of Endosulfan Technical, 173.80 KL of Endosulfan Formulation, 393.42 MT of DDT 75% WP, 13.750 MT of Mancozeb & 100.000 MT of Mancozeb Formulation.
ii)
Total foreign exchange earnings & outgo: (Rs./Crore)
Foreign Exchange Earnings Foreign Exchange Outgo
21.18 5.49 ------
HINDUSTAN INSECTICIDES LIMITED BALANCE SHEET AS AT 31st MARCH, 2012 Particulars Note No. AS AT 31.03.2012 ` AS AT 31.03.2011 `
I 1) a) b) 2 3 a) b) c) 4 a) b) c) d) II 1 a) i) ii) iii) b) c) d) 2 a)
EQUITY AND LIABILITIES
Shareholders'Funds Share Capital Reserve and Surplus Share application money pending allotment Non Current Liabilites Long Term Borrowings Other Long Term Liabilites Long Term Provisions Current Liabilites Short Term Borrowings Trade Payable Other Current Liabilites Short Term Provisions Total
1 2
913324000.00 -43066136.00
913324000.00 -59105564.00
3 4 5
217440000.00 0.00 298071665.00
217440000.00 0.00 346817330.00
6 7 8
149274539.00 465088229.00 353528817.00 186864858.00 2540525972.00
92159591.00 463563114.00 460253771.00 147758476.00 2582210718.00
ASSETS
Non Current Assets Fixed Assets Tangible Assets Intangible Assets Capital Work-in-Progress Non Current Investments Long Term Loans and Advances Other Non Current Assets Current Assets Current Investments
9 10
289481196.00 0.00 87818460.00
298175756.00 0.00 43226428.00
11 12 13
520000.00 68227698.00 29021354.00
520000.00 164589692.00 15294796.00
14
0.00
0.00
b) c) d) e) f)
Inventories Trade Receivables Cash and Cash equivalents Short Term Loans and Advances Other Current Assets
15 16 17 18 19
725633543.00 1233069948.00 34821429.00 54292306.00 17640038.00 2540525972.00
618421853.00 1297675845.00 54404452.00 53515554.00 36386342.00 2582210718.00
As per our report of even date For AVA & Associates Chartered Accountants FRN:004017N
( R.Dhiman ) Asstt.Co.Secretary
( G. Nath ) General Manager (F&A)
( V. Sekar ) Director ( Finance )
( K. Harikumar Chairman & Managing Director )
( Avineesh Matta ) Partner Membership No.083054
Place : New Delhi Dated : 16.08.2012 HINDUSTAN INSECTICIDES LIMITED STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31st MARCH, 2012 Particulars Note No. AS AT 31.03.2012 `
2572188635.00 67204399.00
AS AT 31.03.2011 `
2495933632.00 144942338.00
REVENUE
I II III IV a) b) c) d) Revenue from Operations Other Income Total Revenue (I+II) 20 21
2639393034.00
2640875970.00
EXPENDITURE
Cost of Material consumed Change in inventories of finished goods, work in progress and stock in trade Employment benefits expense Finance Cost 22 23 24 25
974533053.00 1024936299.00
-66455904.00 998615646.00 20927411.00
-15348638.00 966758270.00 10900907.00
e) f)
Depreciation and Amortisation Exepnses Other Expenses Total Expenditure Profit before exceptional and extraordinary item Exceptional Item Profit before extraordinary item Extraordinary item Profit before tax Tax Expenses of on continuing operations current year Profit/Loss for the period from continuing operations Profit/Loss from discontinuing operations Tax expenses of discontinuing operations Profit/Loss from discontinuing operations (After Tax) Profit/Loss for the period (Profit After Tax)
40946109.00
36042017.00 584318456.00 2607607311.00
26
642687292.00 2611253607.00
V VI VII VIII IX X XI XII XIII XIV XV
28139427.00 0.00 28139427.00 0.00 28139427.00 12100000.00 16039427.00 0.00 0.00 0.00 16039427.00
33268659.00 0.00 33268659.00 0.00 33268659.00 17500000.00 15768659.00 0.00 0.00 0.00 15768659.00
As per our report of even date For AVA & Chartered Accountants Associates FRN:004017N
( R.Dhiman ) Asstt.Co.Secretar y
( G. Nath ) General Manager (F&A)
( V. Sekar ) Director (Finance )
( K. Harikumar Chairman & Managing Director )
( Avineesh Matta ) Partner Membership No.083054
Place : New Delhi Dated : 16.08.2012
NOTES TO FINANCIAL STATEMENT
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 1 : SHARE CAPITAL
A)
Authorised, Issued, Subscribed and Paid up Share and per value per share Authorised Share Capital
10,00,000 Equity Share of Rs.1,000/- each (Previous Year 10,00,000 Equity Share of Rs.1,000/- each) NIL Preference Share of Rs.0/- each (Previous Year 0 Preference Share of Rs.0/- each) Total Issued, Subsribed and Paid-up: 9,13,324 Equity Share of Rs.1,000/-each (Previous Year 9,13,324 Equity Share of Rs.1,000/- each) NIL Preference Share of Rs.0/- each (Previous Year 0 Preference Share of Rs.0/- each)
1000000000.00 1000000000.00
0.00
0.00
1000000000.00
1000000000.00
913324000.00
913324000.00
0.00
0.00
913324000.00
913324000.00
B)
Reconciliation of number of equity share outstanding at the beginning and at the end of the year Number of the share outstanding as at the beginning of the year Add: Number of share allotted during the year Number of the share outstanding as at the end of the year
913324
913324
0
0
913324
913324
C)
Terms / rights attached to equity shares The company has only one class of equity share having par value of Rs.1000/- per shre. Each Shareholder is entitled to one vote per share. Details of each Shareholder holding more than 5 percent share Name of shareholder Numer of shares hold as at 31.03.2012 31.03.2011
D)
President of India
913324 100%
913324 100%
E)
Other disclosures
Particulars
AS AT 31.03.2012 `
Nil
AS AT 31.03.2011 `
Nil
Aggregate numder of equity shares allotted by way of consideration other than cash during the period of five years immediately preceding the Balance Sheet date
NOTE NO. 2: RESERVE AND SURPLUS
A.
CAPITAL RESERVE
Opening Balance Add: Current Year Transfer Less: Written Bank in Current Year Closing Balance
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
B
Surplus/Deficit (Profit and Loss Account)
Opening Balance-Deficit Add: Current Year Transfer Less: Written Bank in Current Year Closing Balance Surplus (Profit and Loss Account) Profit/Loss for the year
-59105564.00 16039428.00 0.00 -43066136.00 0.00 -43066136.00 -74874223.00 15768659.00 0.00 -59105564.00 0.00 -59105564.00
Particulars
AS AT
AS AT
31.03.2012 ` NOTE NO. 3 : LONG TERM BORROWINGS (Secured Loan)
Term Loan: Secured: Govt. of India Interest Accrued and due Unsecured Govt. of India Interest Accrued and due Amount due within 12 months TOTAL Bonds/Debentures Secured Unsecured TOTAL Term Loan from Bank/Others Secured Unsecured TOTAL GRAND TOTAL
31.03.2011 `
0.00 0.00 0.00
0.00 0.00 0.00
217440000.00 0.00 0.00
217440000.00 0.00 0.00
217440000.00
217440000.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00 217440000.00
0.00 0.00 0.00 217440000.00
NOTE NO. 4 : OTHER LONG TERM LIABILITIES
Trade Payable Others TOTAL
0.00 0.00 0.00
0.00 0.00 0.00
NOTE NO. 5: LONG TERM PROVISIONS
Provisions for Employees Benefits
For Superanuation (Unfunded) For Half Pay Sick Leave For Gratuity Less: Transfer to HIL Employee's Gratuity Trust For Leave Salary For Bonus For Taxation TOTAL
30331559.00 420135887.00 -306096697.00 153700916.00 0.00 0.00 298071665.00
25511237.00 354179970.00 -160024874.00 127150997.00 0.00 0.00 346817330.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO.6 : SHORT TERM BORROWINGS A) SECURED
Cash Credit from Bank (Secured by Hypothecation of Raw Materials, Work in Progress, Finihsed Goods and Book Debts) TOTAL
149274539.00 92159591.00
149274539.00
92159591.00
NOTE NO. 7: OTHER CURRENT LIABILITIES
Current maturities of long term debt Interest accrued but not due on borrowings Interest accrued but due on borrowings Income received in advance Unpaid matured deposts and interest accrued thereon Advance From Customers Security Deposits/Earnest Money ESI Payable LIC Premium Payable
0.00 14194340.00 0.00 0.00 9235447.00 346489.00 51112983.00 861455.00 274633.00 0.00 14194340.00 0.00 0.00 5640220.00 5415835.00 53053705.00 5245647.00 287296.00
Commission Payable Unpaid Salary & Wages Amount payable to Ex-employees Other Payable Arrear/Amount Payable to Employees Provident Fund Payable Outstanding Liabilities Statutory Liabilites TDS on Salary Payable TDS on other than Salaries Payable CST Payable VAT Payable Excise Duty Payable Service Tax Payable TOTAL
7848204.00 637323.00 26312.00 37759598.00 1176336.00 2706912.00 217981581.00
4763674.00 146115.00 1316567.00 39484247.00 7616413.00 2392619.00 300727339.00
1872200.00 669619.00 3451807.00 1040932.00 2332646.00 0.00 353528817.00
2125279.00 753305.00 6767767.00 7751651.00 2509952.00 61800.00 460253771.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 8: SHORT TERM PROVISIONS
Provisions for Employees Benefits For Superanuation (Unfunded) For Half Pay Sick Leave For Gratuity Less: Transfer to HIL Employee's Gratuity Trust For Leave Salary For Bonus Other provisions For Taxation Total
9922019.00 107118334.00 0.00 57679505.00 45000.00
7946272.00 78045173.00 0.00 44267031.00 0.00
12100000.00 186864858.00
17500000.00 147758476.00
NOTE NO. 9: FIXED ASSETS - TANGIBLE Reconcialation of the gross carring amounts and net carrying amounts at the beginning and the end of the year Gross Carrying Amount Description As at 31st March'2011 Addition adj. during the year 1. Land Owned leased 2. Buildings Owned leased 3. Plant & Equipmnt Owned leased 4. Furnitures & Fixtures Owned leased 5. Vehicles Owned leased 6. Office Equipments Owned leased 7.Computer Owned leased 8. Others Owned leased Total 9. Capital work-in-progress Grand Total 1254870.20 0.00 1197816665.66 43226426.87 1241043092.53 6240.00 0.00 32754466.00 46928402.4 79682868.40 0.00 0.00 517170.01 2336369 2853539.01 1261110.20 0.00 1230053961.65 87818460.27 1317872421.92 1146498.49 0.00 899640909.28 0 899640909.28 11585.62 0.00 40969755.71 0 40969755.71 0.00 0.00 37899.00 0 37899.00 1158084.11 0.00 940572765.99 0.00 940572765.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 103026.09 0.00 289481195.66 87818460.27 377299655.93 0.00 NOTE NO. 10: FIXED ASSETS - INTANGIBLE 108371.71 0.00 298175756.38 43226426.87 341402183.25 11863620.42 0.00 664654.00 0.00 0.00 0.00 12528274.42 0.00 10246115.41 0.00 667934.96 0.00 0.00 0.00 10914050.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1614224.05 0.00 1617505.01 0.00 37382453.07 0.00 781980.00 0.00 88380.00 0.00 38076053.07 0.00 25544776.73 0.00 948337.47 0.00 37899.00 0.00 26455215.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11620837.87 0.00 11837676.34 0.00 5349509.72 0.00 428790.00 0.00 428790.01 0.00 5349509.71 0.00 3019407.76 0.00 380471.00 0.00 0.00 0.00 3399878.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1949630.95 0.00 2330101.96 0.00 8484458.47 0.00 428525.00 0.00 0.00 0.00 8912983.47 0.00 6843724.43 0.00 181477.05 0.00 0.00 0.00 7025201.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1887781.99 0.00 1640734.04 0.00 915034146.44 0.00 29516852.00 0.00 0.00 0.00 944550998.44 0.00 756105089.59 0.00 34786404.53 0.00 0.00 0.00 790891494.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 153659504.32 0.00 158929056.85 0.00 173666736.01 0.00 927425.00 0.00 0.00 0.00 174594161.01 0.00 93625640.98 0.00 3741142.76 0.00 0.00 0.00 97366783.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 77227377.27 0.00 80041095.03 0.00 19756501.40 25024369.93 0.00 0.00 0.00 0.00 19756501.40 25024369.93 0.00 3109655.89 0.00 252402.32 0.00 0.00 0.00 3362058.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19756501.40 21662311.72 19756501.40 21914714.04 Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Depreciation Provided duing the year Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Impairment Reversed during the year Provided during the year As at 31st March'2012 As at 31st March'2012 Net carrying Amount As at 31st March'2011
Reconcialation of the gross carring amounts and net carrying amounts at the beginning and the end of the year Gross Carrying Amount Description As at 31st March'2011 Addit. adj. during the year Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Depreciation Provided duing the year Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Impairment Reversed during the year Provided during the year As at 31st March'2012 As at 31st March'2012 Net carrying Amount As at 31st March'2011
1. Goodwill 2.Brand/Trade Mark 3.Computer Software 4.Mastheads 5.Mining Rights 6.Copy Rights 7.Patents Total
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 11: NON CURRENT INVESTMENT
Trade Investment Other Investment 50000 Equity shares of Rs.10/- each in Kerala Enviro Infrastructure Ltd., Cochin 100 shares of Rs.100/-each in HIL Employees Co-op. Credit Society,Udyogamandal. 100 shares of Rs.100/-each in HIL Consumer Co-op. Store,Udyogamandal. TOTAL
0.00 0.00
a) b) c)
500000.00
500000.00
10000.00
10000.00
10000.00
520000.00
10000.00
520000.00
520000.00
520000.00
NOTE NO. 12: LONG TERM LOANS AND ADVANCES
A Capital Advances Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (A) Security Deposits Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (B) Loans and Advances to related parties Secured, Considered Goods Unsecured, Considered Goods
0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
B
0.00 1848620.00 0.00 0.00 1848620.00
0.00 1951023.00 0.00 0.00 1951023.00
C
0.00 0.00
0.00 0.00
D
Doubtful Less: Provision for bad and doubtful advances Total (C) Other Loans and Advances Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (D) TOTAL (A+B+C+D)
0.00 0.00 0.00
0.00 0.00 0.00
0.00 66379867.00 10572611.00 10573400.00 66379078.00 68227698.00
0.00 162638669.00 10136616.00 10136616.00 162638669.00 164589692.00
Particulars
Note No.
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 13: OTHER NON CURRENT ASSETS A Long Term Trade Receivables
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (A)
0.00 1693779.00 0.00 0.00 1693779.00 0.00 1643183.00 0.00 0.00 1643183.00
B
Others
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (B)
0.00 25729856.00 1811.00 1811.00 25729856.00 0.00 10758616.00 1811.00 1811.00 10758616.00
C
Debts due by related parties (L&A Adv. To staff)
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total (C)
0.00
0.00
D
Derferred Revenue Expenditure
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (C) TOTAL (A+B+C+D)
0.00 1597719.00 0.00 0.00 1597719.00 0.00 2892997.00 0.00 0.00 2892997.00
29021354.00
15294796.00
NOTE NO. 14: CURRENT INVESTMENTS
a) b) c) d) e) Investment in Equity Investment in Preference Shares Investment in Govt. or Trust Securities Investment in Debentures or Bonds Other Investments TOTAL
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 17: CASH AND CASH EQUIVALENTS A.
I
Balance with Banks
Earmarked Bank Balances: In Current Account/Saving Account Bank Balances held as margin money or as security against:
32385145.00
52163449.00
II
a) b) c) d) III a) b)
Borrowings Guarantees Letter of credit Other commitments Other Bank Balance Bank deposits with more than 12 months Others
0.00 1419310.00 0.00 0.00
0.00 1000000.00 0.00 0.00
0.00 0.00
0.00 0.00
B
Cheques, Demand Draft in Hand
Cheque in hand Demand Draft in hand
690037.00 0.00 174327.00 0.00
C D
Cash in hand Others
TOTAL
319865.00 7072.00 34821429.00
385394.00 681282.00 54404452.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 15: INVENTORIES A. RAW MATERIALS
In Stock In Transit
162215323.00 3594562.00 106746123.00 0.00
B.
Work in Progress
In Stock In Transit
97091784.00 0.00 98195600.00 0.00
C
FINISHED GOODS
In Stock In Transit
350939012.00 0.00 295344085.00 1950800.00
By Products Provision for expired materials
11357.00 -19776803.00
6381.00 -20850483.00
D
STORES AND SPARES
In Stock In Transit
74943330.00 790739.00 90433300.00 0.00
E
LOOSE TOOLS
In Stock In Transit
185118.00 0.00 148780.00 0.00
F
PACKING MATREIALS
In Stock In Transit
51171626.00 0.00 41526854.00 0.00
G
FUELS In Stock In Transit TOTAL
4467495.00 0.00 725633543.00
4920413.00 0.00 618421853.00
NOTE NO. 16: TRADE RECEIVABLES A Trade Receivables Outstanding for more than six months from the date they become due for payment
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Allowed for bad and doubtful debts Total (A) B.
0.00 409871914.00 4427338.00 4427338.00 409871914.00 0.00 578042073.00 4434136.00 4434136.00 578042073.00
TRADE RECEIVABLE (OTHERS)
Secured, Considered Goods Unsecured, Considered Goods Doubtful
0.00 825202701.00 0.00 0.00 719633772.00 0.00
Less: Provision for bad and doubtful debts Less: Reserve for Sundry Debtors-Endosulfan Sales Total (B) TOTAL (A+B)
0.00 2004667.00 823198034.00 1233069948.00
0.00 0.00 719633772.00 1297675845.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 18: SHORT TERM LOANS AND ADVANCES
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful debts TOTAL
4512985.00 49779321.00 3477593.00 3477593.00 54292306.00 6098157.00 47417397.00 3454352.00 3454352.00 53515554.00
NOTE NO. 19: OTHER CURRENT ASSETS
Interest Accrued and due on investments Pre-paid Expenses Amount Recoverable from Govt./IPFT/RENPAP/Others Security & Other Deposits TOTAL
1800049.00 842296.00 1065276.00 13932417.00 17640038.00 4317837.00 662386.00 17250762.00 14155357.00 36386342.00
NOTE NO.20:REVENUE SALES
Revenue from Operations Sales of Products Other Operating Revenue Less: Excise Duty TOTAL
2798162900.00 0.00 2798162900.00 225974265.00 2572188635.00
2710379931.00 40000000.00 2750379931.00 254446299.00 2495933632.00
NOTE NO. 21: OTHER INCOME
INTEREST From Bank From Staff & Others Rent Export Benefits Agricultural Income Doubtful Debts Claims & Other recoveries/written back Sundry Amount Adjusted Waiver of Govt. Loan Misc. Income TOTAL(A)
236102.00 13063269.00 626390.00 1884815.00 0.00 125805.00 50527.00 0.00 39524843.00 55511751.00
115521.00 773881.00 370176.00 4450947.00 0.00 105754.00 14173.00 90900000.00 32298138.00 129028590.00
PRIOR PERIOD ADJUSTMENTS (CREDIT)
Sales Other Income Materials Personnel Sales & Admn. Expenses Tax Interest Others TOTAL(B) GRAND TOTAL(A+B)
407.00 4980.00 0.00 261359.00 1594831.00 9491181.00 0.00 339890.00 11692648.00 67204399.00 1960671.00 0.00 617944.00 606715.00 70345.00 0.00 4768079.00 7889994.00 15913748.00 144942338.00
NOTE NO. 22: COST OF MATERIAL CONSUMED
Opening Stock Purchase Total Sales/Adjustments Less:Consumed in Other Departments Less: Closing Stock TOTAL
106132143.00 1047626847.00 1153758990.00 6897968.00 10112646.00 1136748376.00 162215323.00 974533053.00 93118262.00 1049913318.00 1143031580.00 7767203.00 4195935.00 1131068442.00 106132143.00 1024936299.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 23: CHANGE IN INVENTORIES
OPENING STOCK Finished Products By - Products Work -in-Progress Less: Excise Duty on Stock CLOSING STOCK Finished Products By - Products Work -in-Progress Increase(-)/Decrease(+)
295344085.00 6381.00 98195600.00 393546066.00 13909817.00 379636249.00 276689397.00 35494.00 113985286.00 390710177.00 12512749.00 378197428.00
350939012.00 11357.00 95141784.00 446092153.00 -66455904.00
295344085.00 6381.00 98195600.00 393546066.00 -15348638.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 24: EMPLOYEES BENEFITS EXEPENSES
Salaries and incentives Contribution to Provident fund Contribution to Superannuation Scheme Gratuity Fund Contribution Social security and other benefits plans for overseas employees
664739029.00 57836108.00 0.00 159249326.00 0.00 629899001.00 58905249.00 0.00 174554043.00 0.00
Expenses on Employees Stock Option Scheme(ESOP) and Employee Stock Purchase Plan (ESPP) Staff Welfare Expenses Contribution to Employees State Insurance Contribution to HIL Employees Welfare Fund Bonus
0.00 0.00 116406626.00 319979.00 19578.00 45000.00 998615646.00
0.00 0.00 103282499.00 33346.00 71300.00 12832.00 966758270.00
NOTE NO. 25: FINANCE COST Interest Expenses Govt. Loans Other Borrowing costs Interest on Cash Credit Other Interest Less: Interest Income Less: Amount included in Capital Work in Progess TOTAL
0.00
24265504.00
20925940.00 1471.00 0.00 0.00 20927411.00
10900907.00 0.00 0.00 24265504.00 10900907.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 26: OTHER COSTS/EXPENSES
Manufacturing Expenses: Repacking & Formulation Charges Packing Material consumed Stores & Spares consumed Carriage inward Catalyst Consumed Power, Fuel and Water R&D and Laboratory Exps. Other Work/Job Expenses Excise Duty Repairs & Maintenance
318899.00 77655272.00 3988548.00 3869511.00 0.00 282015214.00 1622324.00 35738449.00 21827236.00
1808246.00 94348782.00 2533291.00 3538751.00 0.00 207647495.00 2613475.00 22284940.00 13909817.00
On Machinery & Plant Building On others Sales & Administration Exps. Rent Rates & Taxes Insurance Donations Social Obligation Electricity & Water Charges Advertisement Publicity Printing & Stationery Postage ,Telephone & E-mail Exps. Travelling Expenses CMD Directors Others Vehicle Running & Maintenance Exp. Legal & Professional Charges PAYMENT TO AUDITORS AS Auditors For Taxation Matter For company law matter for management services for other services for reimbursement of expenses Total c/f
31157528.00 13171098.00 3196450.00
35964055.00 10502543.00 3891046.00
3991324.00 6314615.00 2315338.00 0.00 1347812.00 1784960.00 5315098.00 2914620.00 2097564.00 2853201.00
3591639.00 5644304.00 1895645.00 0.00 0.00 2299797.00 3942924.00 3083546.00 2248468.00 2787313.00
383460.00 690987.00 14253933.00 1675421.00 4828861.00
160407.00 416314.00 12394116.00 1506533.00 3748791.00
150000.00 75000.00 0.00 0.00 0.00 67068.00 525619791.00
150000.00 75000.00 0.00 0.00 0.00 105726.00 443092964.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
OTHER COSTS/EXPENSES : Note 26 ( Contd…)
Total b/f CISF/Security Expenses Staff Training /Others Expenses Recruitment Expenses Guest House Expenses Filing Fee Township Expenses Subscription & Membership Fee News Papers & Periodicals Bank Charges Foreign Exchange Diff. (Net) Freight, Cartage & Handling Expenses Miscellaneous Expenses Entertainment Expenses Cash Discount/Rebate on Sales Commission Loss on Sale/Write off Assets Provision for Doubtful Debts, Claims & Others Loss on sales of current investments Provisions for losses of subsidiary companies Computer Expense Sundry Amount Written off Demurrage TOTAL(A)
525619791.00 18352137.00 1630329.00 955066.00 828394.00 26273.00 3136341.00 1808648.00 102334.00 2197675.00 1955911.00 43752274.00 6010482.00 1785629.00 19743360.00 8577949.00 43981.00 283161.00 0.00 0.00 782698.00 1044.00 1613028.00 639206505.00 443092964.00 16958058.00 1210456.00 538236.00 732051.00 3516.00 3037128.00 1417541.00 132415.00 2910329.00 0.00 47553663.00 5942286.00 1341997.00 34747105.00 7005121.00 146725.00 4826951.00 0.00 0.00 785773.00 0.00 277260.00 572659575.00
PRIOR PERIOD ADJUSTMENTS (DEBIT)
Sales Materials Manufacturing Expenses Personnel Sales & Admn. Expenses Depreciation Interest
869503.00 1088366.00 252436.00 653413.00 470942.00 23647.00 100947.00 106983.00 176993.00 2660685.00 150380.00 2221393.00 0.00 0.00
Others TOTAL(B) GRAND TOTAL(A+B)
21533.00 3480787.00 642687292.00
6342447.00 11658881.00 584318456.00
HINDUSTAN INSECTICIDES LIMITED
SCHEDULE FORMING PART OF ACCOUNTS FOR THE YEAR 2011-12 ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
A.
SIGNIFICANT ACCOUNTING POLICIES:
1)
Accounting Concepts: The Company prepares its accounts on accrual basis under the historical cost convention.
2)
Fixed Assets: All fixed assets are stated at historical cost reduced by depreciation provided.
3)
Expenditure on Project under Erection: a) All direct expenditure incurred by the company during the construction of projects is capitalised.
b) Interest paid on long term loans, allocable to the project is capitalised.
4) Depreciation: a) Depreciation is provided on straight line method based on estimated useful life of assets as per the rates prescribed in Schedule XIV of the Companies Act, 1956. b) Cost of leasehold land is amortised over the period of the lease. c) Items, each costing Rs.5,000 or less, are fully depreciated in the year of acquisition.
5)
Investments:
Investments categorised as "Long Term" are carried at cost.
6) Inventory Valuation: a) Stock-in-trade: Inventories are valued at lower of cost and net realisable value. Cost of conversion includes cost directly related to units of production such as direct labour and systematic allocation of fixed and variable overheads incurred in converting raw materials into finished goods.
-
The cost of finished goods includes liability towards excise duty paid/payable on excisable finished goods held as inventory, such liability being considered on the basis of provisional/ known sale price where the final prices are not determined.
b) Stores and Spares are valued at cost. c) The costs are based on the weighted average cost.
7)
Redundant/Damaged Equipment/Materials: The Profit/Loss on redundant/damaged equipments/materials is accounted for in the year of disposal of such equipments/materials.
8)
Retirement Benefits: Provision is made as at the end of each financial year on the basis of actuarial valuation to cover the liability in respect of employees towards: a) Gratuity on death / retirement; and b) Accumulated leave.
9)
10)
Grant-in-aid: The grants received from Govt. of India are deducted from the related expenditure.
Deferred Revenue Expenditure:
The expenditure (net of Grant in Aid, if any) incurred on account of Ex-gratia/ compensation paid on Voluntary Retirement of employees under the Voluntary Retirement Scheme is amortised in equal instalments over a period of five years beginning from the year of relieving.
11)
Foreign Currency Transactions: a) Transactions in foreign exchange, are accounted at the exchange rate prevailing on the date(s) of the transaction(s). b) Exchange difference arising out of foreign currency transactions are recognised as income or as expenses in the year in which they arise, except those arising on repayment of liability incurred for acquiring of fixed assets.
12)
Intangible Assets Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and accumulated impairment losses, if any.
13)
Revenue Recognition: a) The supplies to the NVBDCP (formerly NAMP) are valued at the adopted prices worked out by the company keeping in view the parameters followed by the Cost Accounts Branch, Ministry of Finance.
b) The closing stocks of products meant for NVBDCP (formerly NAMP) are valued at lower of cost of production or adopted prices. c) The difference arising out of final prices fixed by CAB and the adopted prices are adjusted in the sales for the year in which the prices are fixed. d) Excise Duty & Sales Tax are provided at provisional price (as per purchase order) in the year of supply. The impact of excise duty and sale tax on account of difference between provisional and final price is provided for in the year in which the final prices are fixed. 14) Provision for old debts
Provision is made in the accounts of the company at the end of the financial year for debts which are outstanding for more than three years and considered doubtful and non recoverable. No provision is made for the debts under litigation/arbitration which are tenable and no financial liability against the same is expected at the end of the financial year.
HINDUSTAN INSECTICIDES LIMITED
SCHEDULE FORMING PART OF ACCOUNTS FOR THE YEAR 2011-12 ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.):
B. 1.
NOTES ON ACCOUNTS: CONTINGENT LIABILITIES AND COMMITMENTS ( TO THE EXTENT NOT PROVIDED FOR)
Particulars
As at 31 March'2012
As at 31 March'2011
A)Contingent Liabilities a) Claims against the company not acknowledged as debts b)Arrear for Workmen Employees (1.04.2007 to 27.04.2011) B)Commitments a) Estimated amount of contracts remaining to be executed on the capital account and not provided for b) Others TOTAL (A+B) 49,09,26,806 68,08,14,061 43,16,92,062 46,97,61,582 34,59,215 37,72,710 7,44,28,040 11,20,00,000 2,97,44,549 45,52,261
2) In case the Counter Guarantees given by the Company in favour of Southern Pesticides Corporation Ltd. (shown above as Contingent Liability), are invoked by Financial Institutions , Govt. of India will provide support, as approved by Cabinet Committee on Economic Affairs (CCEA) on 27th July,06. 3) During the year 2011-12 with the approval of Govt. Of India, the revision of pay scales of workmen has been implemented and the revised salary has been paid from 28.4.2011. The arrear w.e.f. 1.4.2007 to 27.4.2011 shall become payable only when the company generates adequate surplus resources through improved productivity and profitability to the satisfaction of Government and after obtaining prior approval of Govt. Has been shown as Contingent Liability. 4) No provision has been made in the accounts of the company as at 31.3.2012 respect of the following amounts which are considered good and recoverable: a) Sundry Debtors: Outstanding for more than three years amounting to Rs.1141.16 lakhs. b) Loans and Advances: Outstanding for more than three years amounting to Rs.334.13 lakhs. 5) a) The balances of some of the Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation/ reconciliation/ adjustments. b) Sundry Debtors include a sum of Rs. 12.95 lakhs payable by a debtor who has filed a petition to the effect that he is insolvent. The petition has been challenged by the Company. Sundry Debtors also includes a company which has been referred to BIFR with balance outstanding of Rs.9.18 lakhs. c) Stores & Spare parts worth Rs.272.07 lakhs and raw material and packing material worth Rs17.58 lakhs have not moved for more than three years . No provision has been made for the same since these are considered as serviceable / usable . d) Pending investigation, the finished goods of Rs.1.45 lakhs were found short and stores items(packing material) on physical verification as on 31.03.2012 have not been adjusted in the accounts. 6) Difference in the prices adopted in the accounts for 2011-12 over the provisional prices at which supplies to NVBDCP have been made amounts to Rs5092.16 lakhs(Sales – Rs.5013.26 lakhs & Closing Stock - Rs.78.90 lakhs). Further, sales for the year includes Rs.235.89 lakhs towards price difference for the year 2010-11. 7) Related Party Disclosures: Key Management Personnel: a) Shri K. Harikumar, Chairman & Managing Director b) Shri R.R.Sharma, Director (Marketing) c) Shri V. Sekar, Director (Finance) Transactions with the Related Parties is given below: Key Management Personnel: Name of the Director Shri K.Harikumar Shri R.R. Sharma Shri V. Sekar Nature of Transaction Remuneration Remuneration Remuneration Amount (Rs.) 11,09,015 10,63,300 7,76,870
8) The amount of exchange difference included in the Profit & Loss Account for the year comprises Rs.18.95lakhs (Dr.) for Imports and Rs.36.11 lakhs (Cr.) for Exports. 9) (a) The company has equity investment of Rs. 496.66 lakhs (49,666 shares of Rs.1,000 each) in the Southern Pesticides Corporation Ltd. (SPCL) as on 31.03.2008. SPCL was referred to BIFR and BIFR issued order for winding up of SPCL. The Hon'ble High Court of Andhra Pradesh has issued orders for closure of SPCL w.e.f. 2nd April 2002 and all the assets and liabilities have been handed over to Official Liquidator. As any return/payment against the Investment, Sundry Debtors and Loan & Advances is doubtful, the investment in SPCL and the full amount of Sundry Debtors and Loan & Advances have been written off in the year 2009-10. (b) Since the Subsidiary Company, SPCL is under winding-up and all its assets and liabilities have been handed over to Official Liquidator, there is no probability of its operations and it significantly impairs its ability to transfer funds to its parent company i.e. HIL. Accordingly, accounts of SPCL are not being consolidated with the accounts of the company as per AS-21. 10) Out of the township land (leasehold), 2,158 square yards were acquired by Delhi Municipal Corporation. A claim of Rs.4.32 lakhs for compensation was lodged by the company. The claim has not yet been settled for want of `No Objection Certificate’ from Delhi Development Authority. Delhi Development Authority has demanded Rs.1.10 lakhs towards transfer levy charges for issuance of ‘No Objection Certificate’. Adjustments on this account will be made in the accounts on settlement of the issue. Income Tax Assessment has been completed up to Financial Year 2008-09 (Assessment Year 2009-10). Appeals have been preferred by the company in respect of some of the assessments. No provision for contingent liability including penalty if any, arising out of the disposal of such appeals has been made. Particulars/Break-up of R&D Expenditure as shown in note no 13(D) is as per Part-C of Accounting policies and notes on Accounts. The Company is not creating deferred tax asset as there is no viable certainty that the company will earn sufficient income against which such assets will be realized. Keeping in view the nature of business & geographical status of the Company, the Segment Reporting under AS-17 is not applicable. As per existing rules/policies of SCOPE, office premises at Scope Complex can not be registered in the name of allotted Company. The names of the micro & small enterprises to whom the company owes a sum exceeding Rs.1 lakh which is outstanding for more than 30 days as on 31.03.2012 are as NIL. No provision towards impairment of assets as per AS-28 is considered necessary as per book value of assets does not exceed the amount to be recovered through use or disposal of assets.
Disclosure in accordance with AS – 15(R): In line with the accounting policy and as per the Accounting Standard – 15 (R), the Summarized position of post employment benefits are recognized in the profit & loss a/c and balance sheet as under:-
11)
12) 13) 14) 15) 16) 17)
18)
a) Principal Actuarial assumption at the Balance Sheet date (expressed as weighted averages)
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave
201112 2010-11
2011-12
2010-11
2011-12
2010-11
Discount Rate Rate of increase in compensation level Rate of return on plan assets: b)
8.60% 7.00% 9.40%
8.00% 6.00% 9.40%
8.60% 7.00% -------
8.00% 6.00% ------
8.60% 8.00% 7.00% 6.00% -------------
Changes in Present value of Obligation during the period Gratuity Leave Salary Half Pay Sick Leave 3,34,57,509
Particulars
Present value of Obligation as at the beginning Acquisition adjustment Interest Cost Past Service Cost Current Service Cost Curtailment Cost/ Credit Settlement Cost / Credit Benefit Paid (By Enterprises) Benefit Paid (Out of Fund) Actuarial (gain) / loss on obligations Present value of Obligation as at the end of the period c)
43,22,25,143
17,14,18,028
-3,45,78,011 -1,98,78,684 --(78,91,788) (5,63,28,459) 10,47,92,630 52,72,54,221
-1,37,13,442 -2,18,22,123 --(2,56,53,322) -3,00,80,150 21,13,80,421
-26,76,601 -46,81,035 --(44,69,861) -39,08,294 4,02,53,578
Changes in the Fair value of Plan Assets during the period Gratuity Leave Salary Half Pay Sick Leave --
Particulars
Fair Value of Plan Assets at the beginning of the period
16,00,24,874
--
Acquisition adjustment Expected Return on Plan Assets Contributions Benefits Paid Actuarial Gain / (loss) on Plan Assets
-1,24,00,282 19,00,00,000 (5,63,28,459) --
------
------
Fair Value on Plan Assets at the end of the period
30,60,96,697
--
--
d)
Fair Value of Plan Assets
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave --
Fair Value of Plan Assets at the beginning of the period Acquisition adjustment Actual return on plan assets Contributions Benefits Paid Fair Value on Plan Assets at the end of the period Funded Status Excess of actual over estimated return on plan assets e)
16,00,24,874
--
-1,24,00,282 19,00,00,000 (5,63,28,459) 30,60,96,697
------
------
(22,11,57,524) --
(21,13,80,421) --
(4,02,53,578) --
Actuarial Gain / Loss Recognized for the period
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave (39,08,294)
Actuarial gain / loss for the period Obligation
(10,47,92,630)
(3,00,80,150)
Actuarial gain / loss for the period – Plan Assets Total (gain)/ loss for the period Actuarial (gain)/ loss recognized in the period Unrecognized actuarial (gain) / losses at the end of period f)
--
--
--
10,47,92,630 10,47,92,630
3,00,80,150 3,00,80,150
39,08,294 39,08,294
--
--
--
Amount to be recognized in balance sheet and statements of profit and loss Gratuity Leave Salary Half Pay Sick Leave 4,02,53,578
Particulars
Present value of Obligation as at the end of the period Fair value of plan assets as at the end of the Funded Status Unrecognized Actuarial (gains)/losses Unrecognized Past service cost (non vested benefits) Net liability recognized in Balance sheet
52,72,54,221
21,13,80,421
30,60,96,697
--
--
(22,11,57,524) ---
(21,13,80,421) ---
(4,02,53,578) ---
22,11,57,524
21,13,80,421
4,02,53,578
g)
Expense recognized in the statement of profit and loss for the period
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 46,81,035 -26,76,601 ----
Current service cost Past service cost Interest Cost Expected return on plan assets Curtailment Cost/ (Credit) Settlement Cost / (Credit)
1,98,78,684 -3,45,78,011 (1,24,00,282) ---
2,18,22,123 -1,37,13,442 ----
Net actuarial (Gain)/ loss recognized in the period Expenses recognized in the statement of profit & loss
(10,47,92,630)
3,00,80,150
39,08,294
14,68,49,043
6,56,15,715
1,12,65,930
h)
Amount for the current period
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 4,02,53,578 -(4,02,53,578) (33,05,909)
Present value of Obligation Plan assets Surplus (deficit) Experience adjustments on plan liabilities –(loss) / Gain Experience adjustments on plan assets – (loss) / Gain i)
52,72,54,221 30,60,96,697 (22,11,57,524) (9,83,40,063)
21,13,80,421 -(21,13,80,421) (2,72,80,769)
--
--
--
Reconciliation Statement of expense in the statement of Profit & Loss
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 4,02,53,578
Present value of Obligation as at the end of period Present value of obligation as at the beginning of the period Benefit Paid: (i) Directly paid by the enterprise (ii) Payment made out of the fund Actual Return on plan Assets Expenses recognized in the statement of profit & losses
52,72,54,221
21,13,80,421
(43,22,25,143)
(17,14,18,028)
(3,34,57,509)
78,91,788 5,63,28,459 (1,24,00,282) 14,68,49,043
2,56,53,322 --6,56,15,715
44,69,861 --1,12,65,930
j)
Movement in the liability recognized in the Balance Sheet
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 3,34,57,509 1,12,65,930 (44,69,861)
Opening Net Liability Expense as above Benefits paid directly by the enterprise Contribution paid into the Fund Closing Net Liability
27,22,00,269 14,68,49,043 (78,91,788) (19,00,00,000) 22,11,57,524
17,14,18,028 6,56,15,715 (2,56,53,322) -21,13,80,421
4,02,53,578
k)
Major categories of plan assets (as percentage of total plan assets)
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave -----------
Government of India Securities State Government Securities High Quality Corporate Bonds Equity Shares of listed Companies Property Special Deposit Scheme Funds managed by Insurer Bank Balance Fixed Deposit Other Assets 100%
-------
--------
----
----
l)
Other Details 1279 58 years
Number of Employees Normal Retirement Age
Limit on Amount of Gratuity Limit for leave salary( EL) Limit for leave salary (HPSL)
Rs. 10,00,000/- Maximum 300 days Maximum 180 days
19) C.
Previous years figures have been re-grouped / re-arranged wherever necessary. RESEARCH AND DEVELOPMENT EXPENSES Year ended 31.03.2012 (Rupees) ---Nil Year ended 31.03.2011 (Rupees) ---Nil
Opening Balance Expenditure during the year Amount Written off/adjusted Closing Balance
D. 1.
ADDITIONAL INFORMATION Information pursuant to the provisions of Clauses 3, 4, 4C & 4D of Part II of Schedule VI of the Companies Act,1956:A. Expenditure on Personnel includes payment to Chairman & Managing Director and Directors.
S.No.
Particulars
Salary & Allowances Co. Contribution to P.F. Perquisites: Medical 10,116 20,232 10,116 17,056 Canteen 14,460 28,920 13,085 23,597 4. Provisions/Payments: Gratuity 1,04,043 97,556 65,945 70,120 Leave Encashment 1,64,520 8,20,340 1,13,818 1,24,108 Half Pay Sick Leave 85,951 2,18,223 24,433 33,658 Total 16,03,811 32,28,017 13,14,467 19,25,636 Note : The Chairman & Managing Director and Directors have been allowed the use of staff car including for private journey upto a ceiling of 1000 K.M. per month on payment of prescribed amount in accordance with the provisions of Govt. of India, Ministry of Finance, Bureau of Public Enterprises O.M.No.2(18)/PC/64 dated 20th Nov.,64 as amended from time to time.
1. 2. 3.
2011-12 C.M.D. Directors (Rupees) 11,09,015 18,40,170 1,15,706 2,02,576
2010-11 C.M.D. Directors (Rupees) 9,83,743 14,95,390 1,03,327 1,61,707
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
I. Registration Details Registration No. 0 0 2 3 7 7 State Code 5 5 (Refer Code list)
Balance Sheet Date
3 1
0 3
2 0 1 2
Date
Month
Year
II. Capital raised during the year ( Amount in Rs. Thousands)
Public Issue
Rights Issue
Govt.
Bonus Issue
Private Placement
III. Position of Mobilisation and Deployment of Funds( Amount in Rs. Thousands)
Total Liabilities 2 5 4 0 5 2 6
Total Assets 2 5 4 0 5 2 6
92 c Inserted by Notification NO. GSR 388(E) , dated 15.05.1995.
Sources of Funds
Paid-up Capital 9 1 3 3 2 4
Reserves & Surplus 4 3 0 6 6
Secured Loans 1 4 9 2 7 4
Unsecured Loans 2 1 7 4 4 0
Application of Funds
Net Fixed Assets (Including new projects under erection) 3 7 7 3 0 0
Investments
5 2 0
Net Current Assets 8 5 7 5 5 5
Misc. Expenditure 1 5 9 8
Accumulated Losses 4 3 0 6 6
IV.
Performance of Company (Amount Rs. in Thousand): Turnover 2 6 3 9 3 9 3 Profit/Loss before tax + 2 8 1 3 9 + Total Expenditure (Net) 2 6 1 1 2 5 4 Profit/Loss after tax 1 6 0 3 9
(Please tick Appropriate box + for profit, - for Loss) Dividend % rate Earning per Share in rupees during the year N I L
1 8 V. Generic Names of five principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description D D T 3 8 0 8 . 1 0
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
M A L A T H I O N
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
B U T A C H L O R
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
M A N C O Z E B
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
D I
C O F O L
Note : For ITC Code of Products please refer to the Publication of India Trade Classification based on harmonized commodity description and coding system by Ministry of Commerce, Directorate of Commercial Intelligence & Statistics, Calcutta-700 001.
( R. Dhiman) Asstt.Co.Secretary ( G. Nath ) General Manager (F&A) ( V. Sekar ) Director (Finance) ( K. Harikumar ) Chairman & Managing Director
Place : New Delhi Dated: 16.8.2012
STATEMENT OF SUBSIDIARY COMPANY
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO THE SUBSIDIARY COMPANY THE SOUTHERN PESTICIDES CORPORATION LIMITED, HYDERABAD. (Rs. in thousand)
Sl.No.
Items
As on 31.3.2012
As at 31.3.2011
1.
The Financial Year of the Subsidiary Company ended on
31.3.2012
31.3.2011
2.
Shares of the Subsidiary Company held by HIL on the above date
(i) Number
49,666 of Rs. 1000/each
49,666 of Rs. 1000/each
(ii) Extent of Holding
76%
76%
3.
The net aggregate amount of profit of the Subsidiary Company for the Financial year so far as it concerns HIL
(i) Dealt with the accounts of HIL for the year
Nil
Nil
(ii) Not dealt with in the accounts of HIL for the year
(-)11,34,92
(-)11,34,92
4.
The Net Aggregate amount of Profit (+)/Loss(-) of the Subsidiary Company cumulative till end of the Year so far as it concerns HIL
(i) Dealt with in the accounts of HIL for the year
Nil
Nil
(ii) Not dealt with in the accounts of HIL for the year
(-) 32,45,02
(-)32,45,02
Note: The above information is based on Annual Accounts of the subsidiary company for the year 200102 (last audited accounts). Since the subsidiary company is under liquidation, the accounts for the year 2011-12 are not available.
On the crop protection segment, HIL plays crucial a role by saving agricultural crops from pest menace through its high quality pesticides manufactured in state of the art manufacturing units. Your Company is engaged in manufacture of agro chemicals comprising of insecticides, weedicides, herbicides, fungicides, acaricides and fumigants. The company is buoyant on its outlook and is regularly adding new molecules to its product portfolio. Plant to manufacture Buprofezin is under erection and civil work is on to put up a multi-product plant to manufacture Chloropyriphos, Imidacloprid, Acetamiprid and Triazophos etc. Agriculture accounts for Rs.11 lacs crores of Indian GDP and is the source of livelihood for two-thirds of its population. A healthy agricultural sector is, therefore, key for balanced growth of Indian economy. Hence, every effort is being made by your company to carry out continuous research and development for development of safe, economical and environment friendly pesticide formulations. During the year 2011-12, we have initiated research on developing surfactants for various pesticide formulations. Research is on to develop soil amendments so as to regain the fertility of soil, for which soil samples have been collected from locations. This is expected to be a boon to the farmers. Till now, your Company was operating in 2 major segments i.e. public health and crop protection. Your directors have visualized that there are lot of opportunities in other areas of agriculture, where existing infrastructure and marketing network of the Company can be effectively used. Seed has been identified as a thrust area. Ministry of Agriculture, Government of India has given recognition to your Company as a nodal agency for certified seed production and marketing of field crops and vegetables. Accordingly, to cater to the requirements of high quality seed, initiative was taken to open a seed division so that HIL becomes a one stop shop for two critical agricultural inputs i.e. seed and pesticides. Company has facilitated the Seed division with adequate infrastructure and manpower and senior executives have been deputed to make seed a major contributor to our turnover in coming years.
2011-12 was a very challenging year for the Company. One of our highest selling crop protection products, Endosulfan was banned for production and sale by the Hon’ble Supreme Court of India. Importance of Endosulfan can
be understood from the fact that it used to account for approximately 20% of our annual Sales Turnover. In spite of a ban on production and sale of Endosulfan, this financial year was a remarkable year in terms of turnover and profitability. During the year, the total production of pesticides was 16363 MT/KL and the Company could increase the turnover to Rs.279.82 crores, the highest ever in our corporate History as against Rs.271.04 crores during last year. The Company posted a Profit before Tax Rs. 2.81 crores. The accumulated losses came down to Rs.4.31 crores and the net worth of the company increased to Rs.86.86 crores.. Your Company’s performance has also been well recognized and the same is reflected in various awards and recognitions received during the year. Your Chairman and Managing Director was conferred an award for Excellence for “Outstanding Contribution to the Public Sector Management-2010” by the Standing Committee on Public Enterprises (SCOPE). This award was conferred by SCOPE under Individual Leadership Category for steering the Company out of its sickness with a restructuring proposal merely through cleansing the balance sheet of the Company without any cash infusion. This was received from the hands of our Honourable Prime Minister. The fact that your company is a continuous performer is reflected from the “Very Good” MOU rating obtained by the company for the performance for the year 2010-11. Being a responsible Corporate Citizen, your company is committed towards upliftment of deprived, under-privileged and differently abled persons of the society and in this direction, a number of initiatives has been undertaken which includes providing free books to the needy for education, uniforms etc. to School Children, providing safe drinking water, Community health insurance scheme, contribution towards laying a drinking water pipe line etc. Your directors have also approved and adopted a CSR policy drafted in line with DPE Guidelines. Your company has been complying with the requirements of Corporate Governance as stipulated by the Department of Public Enterprise, Government of India in this regard. The Company is committed to confirm to the highest standard of Corporate Governance in the Country.
Your Company has taken a number of initiatives to maintain cordial relations with its employees. Wage settlement for 10 years (2007-2017) for workmen employees was implemented last year and approval for implementation for, Board level, and below Board level executives has been approved by the Government. I would like to express my thanks and appreciation to my esteemed colleagues on the Board and to all employees of HIL for their commitment and dedication. I am confident that with committed efforts, your company will further improve its performance in coming years. I take this opportunity to express my sincere gratitude for the immense support and guidance received by your company from Ministry of Chemicals and Fertilizers, Ministry of Health & Family Welfare, Ministry of Agriculture, Cost Accounts Branch of Ministry of Finance, Company’s Bankers, Auditors and all the Share holders and look forward for their continued support in ensuring smooth and successful operation of the company. Thanking you all. New Delhi 28th September, 2012 K.Harikumar Chairman & Managing Director
DIRECTORS' REPORT To the Members, Hindustan Insecticides Limited, The Directors of your Company have pleasure in presenting the 58th Annual Report on the business and operations of the Company together with the Audited Accounts for the year ended 31st March, 2012. 1. FINANCIAL PERFORMANCE:
The company achieved an all time record gross turnover of Rs.279.82 crores (Previous year Rs.271.04 crores) and recorded a gross profit of Rs.8.99 crores (previous year gross profit of Rs. 8.02 crore) before providing for depreciation and interest. The growth was achieved despite ban on production and sale of one of our key products viz. Endosulfan which used to account for more than Rs.50 crores per year. This shows the commitment of the entire team in converting challenges into opportunity. The net profit for the year after providing for depreciation and interest was at Rs.2.81 crores (previous year net profit of Rs.3.33 crores). The current year’s financial results are summarized as under:(Rs. in crores) Gross Profit (Profit before depreciation, interest and tax) Less: Depreciation Interest Profit before tax Income Tax Net Profit for the year Add: Brought forward loss Profit/Loss carried forward 8.99 4.09 2.09 2.81 1.21 1.60 (-) 5.91 (-) 4.31 8.02 3.60 1.09 3.33 1.75 1.58 (-) 7.49 (-) 5.91
The net worth of the company has increased to Rs.86.86 crores as against net worth of Rs. 85.13 crores the previous year.
2.
PRODUCTION PERFORMANCE:
The total production achieved during the current year was 16363 MT/KL against 17473 MT/KL during the previous year. The reduction in production is due to ban on production of ENDOSULFAN w. e f 14th May, 2011. 3. SALES PERFORMANCE:
In spite of ban on production of Endosulfan, the Company could increase the turnover to Rs.279.82 crores including Excise Duty and Education Cess during the year as against Rs.271.04 crores during last year. The turnover achieved is highest ever since inception.
4.
EXPORTS:
The company achieved the export turnover of Rs.21.18 crores as against export turnover of Rs. 28.96 crores during the previous year.
5.
SEED DIVISION
The Company has ventured into this new line of activity for which Ministry of Agriculture, Government Of India has given recognition as a nodal agency for certified seed production and marketing of field crops and vegetables.
6.
RESEARCH AND DEVELOPMENT:
The Company carried R & D activities in various areas like analysis of pesticides and development of safe, economical and environment friendly recipes for the existing pesticides formulations and carried out regular in-house R&D activities to reduce the cost of production and improve the product quality. As a result of regular R & D activities, the Company has been able to tackle process related problems at Units and replace higher cost inputs with suitable low cost alternatives. The R&D is also focusing on developing surfactants for inhouse use, developing soil amendments so as to regain soil health etc. 7. MOU RATING:
The performance of the Company for the year 2010-11 has been evaluated by the Department of Public Enterprises on various Memorandum of Understanding (MoU) parameters and rated as "Very Good".
The Memorandum of Understanding between your Company and Ministry of Chemicals and Fertilizers, Government of India for the year 201213 was signed on 19th March 2012.
8. AWARD/RECOGNITION:
Shri K. Harikumar, Chairman & Managing Director was conferred an award for Excellence for “Outstanding Contribution to the Public Sector Management-2010” by the Standing Committee on Public Enterprises. The award was received by Shri K.Harikumar from the Hon’ble Prime Minister of India on 31.1.2012 at Vigyan Bhawan, New Delhi.
ACCREDITATION:
All the manufacturing units of the Company are ISO certified. The units at Rasayani and Bathinda has been assessed and registered as complying with the requirements of International Standards of ISO 9001:2000, ISO 14001:2004 and ISO 18001:2007. While Udyogamandal unit complies to ISO 9001 to 14001, the Unit is on its way to obtain ISO 18001 certification. The Corporate Office is ISO 9001 certified. 9. CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES:
As a responsible corporate citizen, your Company is committed towards up-liftment of under privileged section of the society and has supported various social and community initiatives touching the lives of large number of people residing near to HIL factories. During the year, the Company conducted a baseline survey for its plant at Udyogamandal, Cochin to identify CSR activities in various areas and adopted a Board approved CSR policy in line with the DPE Guidelines on Corporate Social Responsibility. CSR initiatives taken by the Company includes education by means of free distribution of books, uniforms etc. to School Children at Eloor village in Udyogamandal, Kerala and Sawla Village near Rasayani in Maharashtra and providing safe drinking water to the residents of Eloor Gram Panchayat in Kerala and Community Health Insurance Scheme. The Company also contributed for laying a drinking water pipe line to Sawla Gram Panchayat near Rasayani in Maharashtra. 10. HUMAN RESOURCE DEVELOPMENT:
The Company has made onerous efforts and thrust towards development and optimum utilization of manpower to build up a healthy work culture & to achieve higher goals in productivity as well as to meet the challenges of the future.
Manpower: The total manpower as on 31.03.2012 was 1284 employees, comprising of 279 executives and 1005 non-executives compared to 1371 employees comprising of 287 executives & 1084 non-executives during the previous year.
Implementation of Long Term Settlement in respect Of Workmen employees: A Memorandum of Understanding (MOU) was reached with the Unions’ of the Company on 01.02.2011 for revision of pay scales with effect from 01.04.2007 and other benefits in respect of workmen employees of the company. The revision of pay scales in respect of workmen employees of the company has been implemented with effect from 28.04.2011.
Industrial Relations: The industrial relations of the Company remained cordial during the year under report.
SC/ST/OBC: The Presidential Directives on Reservation for Scheduled Caste/Scheduled Tribes/OBC were continued to be implemented during the year. The total number of SC/ST/OBC employees as on 31.03.2012 was :-
No. Scheduled Castes Scheduled Tribes OBC 204 80 416 ----Total 700 -----
The Activities/Steps taken for the Welfare of SCs & STs by the Company : The Company has undertaken the following welfare measures for the benefit of Scheduled Castes/ Scheduled Tribes Communities in the neighboring areas of our units:-
i).
Distribution of text/note books and uniforms to the school going children belonging to SCs & STs communities every year.
ii)
Assist local bodies in the supply of drinking water, in setting up of Primary Health Centers etc. as and when such requirements arose. The majority of beneficiaries belong to SCs & STs communities.
11. PARTICULARS OF EMPLOYEES:
None of employees of the Company is drawing remuneration in excess of the limits prescribed under section 217(2A) of the Companies Act 1956 read with the Companies (Particulars of employees) Rules, 1975. 12. IMPLEMENTATION OF OFFICIAL LANGUAGE HINDI:
Your company conducted quarterly meetings of Official Language Implementation Committee regularly to discuss and review the progress in Hindi and to achieve the targets of Annual Programme issued by the Department of Official Language (Ministry of Home Affairs).
The website of the company is also bilingual. Leaflets and labels of all products manufactured by the company are not only issued in English and Hindi but also in regional languages.
During the year, a workshop has been organized on Unicode to train the employees for doing their work in Hindi, in which 21 employees had participated. Besides organizing Hindi workshops, the Company’s head office and its Units also organized “Hindi Pakhwada” during which various Hindi competitions were organized such as Hindi Essay, Noting, Drafting, Debate, Hindi Writing, Translation and Public Speech. Successful candidates were awarded prizes in cash & kind under the incentive scheme introduced in the company. In the Annual Sales meeting, Senior Officers of the Marketing Department and Regional Sales Offices were acquainted with the Official Language Act, 1963 and the Official Language Rules, 1976 and the targets of the Annual Programme. The Committee of the Parliament on Official Language inspected the Head office. During the year, The Udyogamandal Unit has got 2nd price for excellent performance of Official Language from Cochin TOLIC. An employee of the company got 1st prize in noting & drafting and 16 employees got cash awards & certificates in various Hindi Competitions conducted by the Kendriya Sahivalaya Hindi Parishad and 24 employees of Rasayani unit passed the Pragaya exam organized by Hindi Shikashan Yojana.
13.
THE RIGHT TO INFORMATION ACT 2005:
In consonance with the provisions of the Right of the Information Act, 2005, Company has taken requisite measures and appointed Appellate Authority / Public Information Officers at all the Units / Offices of the Company in order to respond effectively to the requests of the applicant under the act. The purpose of the act is to bring transparency in the functioning of organization and the Company has created mechanism to meet the objective.
14.
REPORT ON ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO:
In terms of Company's (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 and notification No. 1029 dated 31.12.88 particulars relating to a) Conservation of Energy b) Technology Absorption and c) Foreign Exchange Earning and Out-go are annexed to this Report. 15. DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to section 217 (2AA) of Companies Act 1956, your Directors hereby confirm that:i) In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed and no material departure has been made therefrom by the Company;
ii)
the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the company for the period under review;
iii)
the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safe-guarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv)
The Directors have prepared the Annual Accounts on a going concern basis.
v)
Proper systems are in place to ensure compliance of all laws applicable to the Company.
16.
COMPLIANCE WITH CORPORATE GOVERNANCE:
Hindustan Insecticides Limited is a Central Public Sector Enterprise, the entire shareholding is held by Govt. of India. HIL has been continuously making efforts towards raising the standards of Corporate Governance. Report on Corporate Governance is annexed as Annexure-I. 17. CODE OF CONDUCT FOR BOARD MEMBERS AND SENIOR MANAGEMENT:
In accordance with the provisions of the Corporate Governance, a Code of Conduct for the Board members and senior management has been framed and made effective by the Board. 18. BOARD OF DIRECTORS: The current composition of the Board of Directors of your Company is under: Sr. Name of Director No. 1 2 3 4 5 Shri K. Harikumar Shri Rakesh Sharma Shri V Sekar Dr. AJ Vara Prasad Shri Arun Agarwal Designation Chairman Director & Date of present appointment Managing 01/10/2010 12/06/2009 24/06/2010 Nominee 14/12/2011 Nominee 25/04/2012
Raj Director (Marketing) Director (Finance) Government Director Government Director
There were following changes in the Board of Directors of your Company:
a) Ministry of Chemicals and Fertilizers, Government of India, vide its order dated 4th August, 2011, appointed Smt. Neelkamal Darbari, Joint Secretary and Sh. Pawan Gupta, Deputy Secretary in the Department of Chemicals & Petrochemicals as Part–time Government Director on the Board of Directors of Hindustan Insecticides Limited in place of Shri S.C. Gupta, Joint Secretary and Smt. Asha Rani Rungta, Director for a period upto the next Annual General Meeting (2012) including any adjourned meeting. b) Ministry of Chemicals and Fertilizers, Government of India, vide its order dated 14th December, 2011, appointed Dr. AJ Vara Prasad, Joint Secretary, Department of Chemicals and Petrochemicals as Part–time Government Director on the Board of Directors of Hindustan Insecticides Limited in place of Smt. Neelkamal Darbari, Joint Secretary for a period upto the next Annual General Meeting (2012) or till further orders. c) Ministry of Chemicals and Fertilizers, Government of India, vide its order dated 25th April, 2012, appointed Shri Arun Agarwal, Director in the Department of Chemicals and Petrochemicals as Part–time Government Director on the Board of Directors of Hindustan Insecticides Limited in place of Shri Pawan Gupta, Deputy Secretary for a period upto the next Annual General Meeting (2012) or till further orders. The Board wishes to place on record its deep appreciation for the valuable services rendered by Sh. S.C. Gupta, Smt. Neelkamal Darbari, Smt. Asha Rani Rungta and Shri Pawan Kumar Gupta during their tenure as part time directors.
19.
AUDIT COMMITTEE:
The Audit Committee has been constituted in accordance with the requirements under the Companies Act, 1956. The constitution of Audit Committee as on 31.03.2012 is as under: 1. Dr. AJ Vara Prasad, Chairman (From 14.12.2011) 2. Shri K. Harikumar, Member. 3. Shri Pawan Gupta, Member. 4. Smt. Neel Kamal Darbari, Chairman (Upto 14.12.2011) During the year under report, Shri V Sekar, Director (Finance) also attended the meeting of Audit Committee. The Committee functions in accordance with the provisions of the Companies Act, 1956. 20. STATUTORY AUDITORS:
The Comptroller and Auditor General of India appointed following firms of Chartered Accountants as Statutory Auditors / Branch Auditors of the Company for the year 2011-12 in respect of the units/offices shown against each: M/s.AVA & Associates, New Delhi. Bathinda Unit, Regional Sales Office at Delhi, R&D Centre at Gurgaon & Head Office and consolidated accounts.
M/s.Jayesh Mumbai.
Sanghrajka
&
Co., Rasayani Unit and Regional Sales Offices at Akola and Ahmedabad.
M/s. Joseph & Nair, Kochi, Kerala
Udyogamandal Unit and Regional Sales Office at Hyderabad and Coimbatore
M/s.P. Bandyopadhyay & Co., Kolkata
Regional Sales Office at Kolkata
The Statutory Auditors' Report and replies of the Directors to their comments/ observations are annexed to Accounts.
21.
COST AUDITORS:
The following were appointed as Cost Auditors of the Company for the year 2011-12 in terms of Section 233-B of the Companies Act, 1956. 1. M/s N.P.Gopalakrishnan & Co., Kochi. 2. M/s V.J. Talati, Kalyan. 3. M/s K.C. Kohli & Co., Delhi 22. Udyogamandal Unit. Rasayani Unit.
Bathinda Unit.
MANAGEMENT DISCUSSIONS & ANALYSIS:
A report on Management Discussions and Analysis is placed at Annexure-II. 23. SUBSIDIARY COMPANY (SPCL) :
The Subsidiary Company i.e. Southern Pesticides Corporation Limited was ordered to be wound up on 2.4.2002. The Company was officially handed over to Official Liquidator attached to A. P. High Court, Hyderabad. Since, the Company is under liquidation, permission is not required from Ministry of Company Affairs, hence Annual Accounts of SPEC are not enclosed. However, a statement on the holding of interest in the said Company as required under
Section 212 of the Companies Act, 1956, is annexed to the Annual Accounts of the Company.
24.
ACKNOWLEDGEMENTS:
Your Directors gratefully acknowledge the valuable guidance and support extended by the Government of India in particular Ministry of Chemical and Fertilizers. Your Directors also wish to thank Ministry of Health, Ministry of Agriculture, Cost Accounts Branch of Ministry of Finance, State Governments and the Company’s Bankers for their continued support and co-operation. The Directors are also grateful to the C & AG of India, DPE, Statutory Auditors various suppliers and valued customers for their continued support and co-operation. The Directors also wish to place their deep sense of appreciation for the sincere efforts and hard works put in by all the employees of the Company and look forward to their services with zeal and dedication in the years ahead to enable the Company to scale even greater heights. For and on behalf of the Board of Directors
Sd/( K. Harikumar ) Chairman & Managing Director
Annexure-I
REPORT ON CORPORATE GOVERANCE Company’s Philosophy on Corporate Governance.
The philosophy of the Company in relation to Corporate Governance is to ensure transparency, disclosures and reporting that conforms fully with laws, regulations, guidelines and to promote ethical conduct throughout the organization with the primary objective of enhancing shareholders value. The Company is committed to conforming to the highest standards of Corporate Governance in the country. Board of Directors Composition of Board: The Board of HIL comprises five Directors out of which three are functional Directors including the Chairman & Managing Director and two non-executive Directors who are nominees of the Administrative Ministry, Government of India. During the financial year 2011-12, the following Directors were on the Board of HIL. Executive Director: Shri K.Harikumar-Chairman & Managing Director Shri R.R Sharma-Director (Marketing) Shri V.Sekar-Director (Finance) Non-Executive Directors: Shri Suresh Chandra Gupta (upto 4.8.2011) Fertilizers Ms. Asha Rani Rungta (upto 4.8.2011) Fertilizers Smt. Neelkamal Darbari Joint Secretary, Ministry of Chemicals & Director (Finance), Ministry of Chemicals & Joint Secretary,
(from 4.8.2011 to 14.12.2011) Fertilizers Shri Pawan Gupta (from 4.8.2011 25.4.2012) Fertilizers Dr. AJ Vara Prasad (w.e.f 14.12.2011) Fertilizers
Ministry of Chemicals & Deputy Secretary, Ministry of Chemicals & Joint Secretary, Ministry of Chemicals &
Number of Board Meeting/Attendance of each Directors at Board Meeting and the last AGM held during the year 2010-11. Date of Meeting Place of Meeting Directors present.
27.05.2011 10.08.2011 21.10.2011 3.1.2012 26.02.2012
New Delhi New Delhi New Delhi New Delhi New Delhi
4 Nos 5 Nos 5 Nos 4 Nos 4 Nos
Sl. Name of Directors No.
Number of Board meetings attended.
Attendance at last AGM held on 28.09.2010
No. of other Directorship in other companies as on 31.03.2011.
1. 2.
Shri K. Harikumar Shri Suresh Chandra Gupta
5 Nos 1 Nos.
Yes -
1$ 1@
3. 4. 5. 6. 7. 8.
Ms Asha Rani Rungta Smt. Neelkamal Darbari Shri Pawan Gupta Dr. AJ Vara Prasad Shri RR Sharma Shri V Sekar
2 Nos 2 Nos 2 Nos 5 Nos 5 Nos
Yes Yes
2& 2# Nil 2*# Nil Nil
$ Crop Care Federation of India @ Hindustan Organic Chemicals Limited & IDPL and KAPL # Brahmaputra Cracker and Polymer Limited, Hindustan Organic Chemicals Limited * Kangra Central Co-operative Bank, Food and Civil Supply Corporation Audit Committee. As per the provisions of Section 292-A of the Companies Act 1956, the Company is having an Audit Committee consisting of the following Directors. The Audit Committee has the powers, roles and functions in accordance with the Companies Act 1956. 1. Smt. Neelkamal Darbari, Chairperson.(upto 14.12.2011) 2. Dr. AJ Vara Prasad,Chairman 3. Shri K. Harikumar, Member. 4. Shri Pawan Gupta, Member.(upto 25.04.2012)
During the year 2011-2012, four Audit Committee meetings were held on 10.08.2011, 21.10.2011, 3.1.2012 & 26.03.2012 Name No. of meetings held during the year. Meetings attended.
Smt. Neelkamal Darbari Dr. AJ Vara Prasad Shri K. Harikumar. Shri Pawan Gupta
4 Nos 4 Nos 4 Nos 4 Nos
2 No 2 No. 4 No. 2 No.
Remuneration committee. Remuneration and allowances payable to Directors are determined by the President of India. However Department of Public Enterprise has directed that each CPSE will constitute a remuneration committee headed by a Part time non- Official independent Director which will decide the Annual Bonus/ Variable pay policy for its distribution across the Executive. After the Board approval the Remuneration Committee will be formed, committee will aim to make such policies that will motivate employees to excel in performance, retain talent in Organization and award merit.
Details of remuneration of functional Directors of the Company for the year 2011-2012. S. N o. 1. 2. 3. Name Salary & Other allowances benefits 1107015/1061300/774870/496796/1138906/252941/Total
Shri K. Hari Kumar. Shri R. R. Sharma. Shri V. Sekar
1603811/2200206/1027811/-
Share holders/investors grievance committee. Hindustan Insecticides Limited is a Government Company and the entire share capital is held by President of India and his nominees. Hence, no such committee is required to be constituted. Annual General Meetings. Sl. No. Year Location Date & Time Whether any special resolution passed. No No No
1. 2. 3.
2008-09 2009-10 2010-11
New Delhi New Delhi New Delhi
24.09.2009 (12.00 Noon) 28.09.2010 (12.00 Noon) 28.09.2011 (12.00 Noon)
Disclosures There were no material transactions with the Directors on the management or their relatives that may have potential conflict with interest of the Company at large. There have been no instances of non-compliance by the Company to any matter related to capital market since HIL is a non-listed Company and any matter related to any guidelines issued by Government during the last three years.
Whistle Blower Policy The Company has established a mechanism for employees to report concern about unethical behavior, actual or suspected fraud or violation of code of conduct or ethics policy. The employee can have direct access to the Chairman & Managing Director. The Whistle Blower Policy will safeguard against victimization of employees.
Vigilance
HIL being a PSU, the records of the Company are open to Audit by Comptroller and Auditor General of India and open to inspection by Vigilance. HIL has a Vigilance Deptt. headed by CVO.
Means of communication
Annual financial performance are posted in the Company’s website www.hilindia.com General shareholders information The entire paid up share capital of the company is held in the name of President of India and his nominees. AGM details are furnished at above. The Company shares are not listed in any stock exchange.
CS CHETAN GOEL 204,205, C-4, Sector 6, Rohini, Delhi-110085
CERTIFICATE ON CORPORATE GOVERNANCE To, The Members of Hindustan Insecticides Limited.
We have examined the compliance of the conditions of Corporate Governance by Hindustan Insecticides Limited for the financial year ended on March 31, 2012 as stipulated in DPE Guidelines on Corporate Governance for Central Public Sector Enterprises. The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review of the procedures and implementations thereof, adopted by the company for ensuring compliance with the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the company. In our opinion and to the best of our information and according to the explanation furnished to us, we certify that the company has complied with the conditions of Corporate Governance as stipulated in the above mentioned DPE Guidelines except clause 3.1.4 of Guidelines on Corporate Governance regarding number of independent Directors in the Board of Directors. However in this connection, requisite application has been forwarded by the Company to concerned Administrative Ministry. With Sincere Regards Sd/ACS Chetan Goel (COP No. 11165 )
ANNEXURE-II
MANAGEMENT DISCUSSION AND ANALYSIS
Management discussions and analysis aims to elucidate the developments in the business environment and assess the performance of the company in comparison to the last report and present the future outlook. Statements in the management discussion and analysis describing the company’s objectives, projections, estimates, expectations may be “forward looking statements”. It is cautioned that factors like climatic conditions, economic conditions affecting the demand/supply and price conditions in the domestic and overseas markets, changes in Govt. regulations and other incidental factors would have an impact on the actual results.
HIL. incorporated in 1954. to manufacture and supply DDT to Govt. of India has grown manifold, diversified and transformed into a total solution provider both for the public health and crop protection segments. The company has an equal foothold in both the segments and expect to further consolidate its position in its sphere of activities.
The Company has drawn an ambitious growth strategy to further consolidate its portfolio growing aggressively in new markets. HIL has been categorized as a nodal agency for certified seed production and marketing field crops and vegetables by Deptt.of Agriculture, Govt.of India and is confident that this will spearhead our growth plans..
The company has contributed perhaps more than any other Public Sector Undertaking to improve the rural health and agricultural productivity thereby aiming at bringing in prosperity to rural India.
As is known, rural health has a direct co-relation with agricultural productivity as agriculture is the main source of livelihood for rural India. Crop loss and loss of wages due to ill health has a direct linkage to rural prosperity.
INDUSTRY STRUCTURE, OPPORTUNITIES AND THREATS
MARKET
SCENARIO,
a)
Public Health segment
HIL is today the only major manufacturer and supplier of DDT in the world DDT is perhaps one of the most misunderstood products though it has saved more lives than penicillin and saved millions from Malaria, which probably has killed more people than both world wars put together. The world at large is recognizing that human lives are more important than untested, unproven, hypothetical environmental concerns. In line with the above, more and more countries have come forward and expressed their desire to the Stockholm Convention to use DDT for their vector control operations.
Procurement of DDT by UNDP for supply to Zimbabwe has renewed the confidence India and many African countries have been posing on the product and it is expected that more countries will come forward as Malaria remains to be the major killer specially in SubSahara Africa where every second a child dies due to Malaria. HIL exported DDT in the last financial year to countries like South Africa, Zimbabwe, Namibia, etc.and is today the leading supplier of DDT to the globe.
HIL also manufacture Malathion 25% WDP and supplies to various State Govts. for vector control purposes.
HIL has also taken up venturing into alternate methods of disease vector control like manufacture of synthetic pyrethroids, etc. apart from looking at other emerging options, so that the company can maintain itself as key supplier to the public health segments not only in India but also abroad,
b)
Crop protection segment
Agriculture accounts for Rs. 11 lacs crores of Indian GDP and is the source of livelihood for two-thirds of its population. A healthy agricultural sector is, therefore, key for balanced growth of Indian economy.
Indian agriculture has grown by leaps and bounds since Independence by resorting to intensive agriculture using pesticides, fertilizers, hybrid seeds etc. India has emerged as the second largest agricultural economy in the world after China overtaking USA which used to supply wheat under the PL-480 Food Programme.
The food production has gone up from 151million tones during 1950-51 to 950 tonnes during 2010-11 which is an ample proof of the growth we have achieved in agricultural production and productivity. With the granaries full with a record production of 250 million foodgrains, the scope of post harvest crop protection chemicals are also looking up.
The key drivers of the industry are growing food demand, limited land availability growth in horticulture/floriculture, greater awareness among farmers and Govt. etc.,
The industry is highly fragmented with diverse players ranging from multi national corporates with their patented products, big Indian corporates, middle of the road players and even spurious manufacturers vying for a piece of the pie.
The company is engaged in manufacture of agro chemicals comprising of insecticides, weedicides, herbicides, fungicides, acaricide and fumigants.
The company is buoyant on its outlook and are regularly adding new molecules to the product portfolio. Plant to manufacture Buprofezin is under erection and civil work is on to put up a multiproduct plant to manufacture Chloropyriphos, Imidacloprid, Acetamiprid and Triazophos at Rasayani. The company is also looking at debottlenecking the existing Mancozeb facility at Udyogamandal.
c)
Risks and concerns
Inspite of the growth Indian agriculture has achieved over the years, the average Indian farmer still remains poor. Farmers face greater challenges like unpredictable monsoon, no guarantee on returns, apart from constraints on storage and transportation.
Inspite of the contribution made by the industry, it is coming under attack from environmentalists. Indian farmers are often accused of using excessive dosage of pesticides. Pesticide consumption in India is less than 1 kg. per hectare as against 4-5 kg. per hectare in USA and 11 kg. in Japan. Pesticides are also alleged to be the cause of increasing cancer when none of the agricultural pesticides currently used in India are classified as cancer causing by IARC/WHO. Another false
propaganda is that pesticides residues affect our agricultural exports while it is proved that filth and microbial contamination.is the cause of more than 50% rejection and pesticides residues account for only around 1.9% of rejection.
The agro chemical industry is directly affected by complex needs, requirements, demand for different products as pest attacks are often region/crop./specific and calls for very quick response. This calls for higher level of inventory, resulting in higher credit period to push the stocks and at times even expiry of the shelf life of short expiry products.
An abrupt cessation on Endosulfan manufacture and sale pursuant to an ad-interim order of Hon’ble Supreme Court threw open lot of challenges to the company. Though the company surpassed sale targets through sale of other products, some quantity of Endosulfan Technical and formulation apart from various raw materials are lying in store.
The company, over the years, has established itself as a quality supplier of pesticides at reasonable prices and is often used as a bench mark in evaluating prices. With low entry barriers and a customer base who often gets lured by the dealer technique of ‘push sales’, the margins of generics are shrinking for quality producers.
As a responsible supplier, HIL also believes in educating the community about the safe and judicious use and has organized many camps for its target market both in the crop protection and the public health segments which has been widely appreciated.
With more and more states declaring themselves to be organic and many organic products getting distributed under the garb of organic, the company is putting its best to safeguard its terrain and grow by adopting
innovative methods like tie-ups with Fertilizer companies, venturing into seed market, take up contract manufacturing etc.
HIL today supplies its pesticides through the distribution channels of RCF, KRIBHCO, NFL, RAJFED, etc. and has drawn up ambitious plans for future.
Sales performance
The company could increase the turnover to Rs.279.32 crores including Excise duty and Education Cess during the year as against Rs.271.04 crores during last year. The turnover achieved is highest ever since inception of HIL.
Corporate social responsibility
Directors Report 2011-12 may kindly be referred and its contents and details in respect of Items No. 9 may be seen.
Internal control system and adequacy
The company has a proper and adequate system of internal controls. The internal audit function has been assigned to professional firm of Chartered Accountants. All major findings are reported and discussed.
A strong internal audit system and effective Audit Committee has contributed to a strong and adequate internal control system. The company is also implementing an Enterprise Resource Planning(ERP) package to further streamline the internal control.
Financial performance and Analysis
The sales turnover of the company stood at Rs.279.82 crores as compared to Rs.271.04 crores during last year. Inspite of the huge impact due to loss of Endosulfan business, the net profit for the year improved to Rs.1.60 crores during the current year.
Human Resource Development/Industrial Relations
Your company believes that human capital is a great asset. A long term settlement with the employees Union was signed during the year. The company in its history has not lost a single manday due to labour unrest. The company has a dedicated team at all levels to keep the flag flying high.
Cautionary statement
As stated in the opening paragraph, extraneous conditions including vagaries of monsoon can have an impact on the actual operating results of the company.
ANNEXURE TO DIRECTORS' REPORT FORM A Form for Disclosure of particulars with respect to Conservation of Energy DESCRIPTION UNIT 2011-12 2010-11
A 1
POWER AND FUEL CONSUMPTION ELECTRICITY Total Units Total Amount Rate/Unit FURNACE OIL Quantity Total Amount Rate/KL FUEL OIL (HSD) Quantity Total Amount Rate/Unit Consumption per unit of production DESCRIPTION
KWH Rs. Rs.
12931612 78548743 6.07
12465219 64242231 5.15
2
KL Rs. Rs.
4991.497 191469442 38359.12
4733.873 135320313 28585.54
3
KL Rs. Rs.
128.404 5452330.000 42462.31
116.382 4630462 39786.75
B.
UNIT
2011-12
2010-11
1
DDT TECHNICAL Electricity Furnace Oil DDT FORMULATION Electricity Furnace Oil MALATHION TECHNICAL Electricity Furnace Oil MALATHION FORMULATION Electricity ENDOSULFAN TECHNICAL Electricity Furnace Oil
KWH LTR
1246 1117
1222 1050
2
KWH LTR
739
674
3
KWH LTR
1248 321
902 247
4
KWH
96
89
5
KWH LTR
1687 554
1006 370
6
ENDOSULFAN FORMULATION(HILDAN) Electricity
KWH
64
25
7
MONOCROTOPHOS TECHNICAL Electricity Furnace Oil MONOCROTOPHOS FORMULATION Electricity BUTACHLOR TECHNICAL Electricity Furnace Oil Coal BUTACHLOR FORMULATION Electricity DICOFOL TECHNICAL Electricity Furnace Oil Coal DICOFOL FORMULATION Electricity
KWH LTR
978 328
810 321
8
KWH
25
24
9
KWH LTR MT
632 1798
470 1761
10
KWH
47
44
11
KWH LTR MT
5770 2717
6006 2143
12
KWH
30
25
13
MANCOZEB Electricity Furnace Oil Fuel Oil (HSD)
KWH LTR LTR
1085 96 193
1002 107 193
FORM B
Form for Disclosure of particulars with respect to technology absorption
Research and development (R&D) 1. Specific areas in which R&D a) Replace wet analysis by instrumentation is being carried out by the methods for analysis of Pesticides and their Company formulation. b) Development of safe, economical and environment friendly recipes for the existing pesticide formulations, to improve cost efficiency by using locally available indigenous raw materials and inerts. c) Improve existing processes to enhance the efficiency, use of less toxic and eco-friendly raw materials, and to minimize environmental pollution.
d) Assist manufacturing units in Plant Trails for commercial scale implementation of Technologies developed by in –house R & D at Laboratory and Pilot Plant levels. 2. Benefits derived as a result of the above R&D a) Tackled process related problems at Units. b) Replaced higher cost inputs with suitable low cost alternatives.
3. Future Plan of Action
a) Synthesis of Surfactant for DDT. b) Development of Soil amendments - From laboratory experiments it is observed that the amendments which have been prepared in laboratory with different composition are reducing the soil salinity and have made the soil pH to the optimum value. Detailed study is planned in field level.
c) To continue the study for the search of new solvents, fillers, emulsifiers and other Raw materials used in various agro formulations, which are eco-friendly and cost effective in order to make our products competitive in the market.
d) To tackle periodical process related problems in our different units, for quality maintenance and to give technical assistance for commercial level scale up activities of various products as and when needed.
4. Expenditure on R&D : a) Capital b) Recurring c) Total Rs. Nil Rs.1,11,57,779/Rs.1,11,57,779/-
FORM C
FOREIGN EXCHANGE EARNING & OUTGO:
i)
Activities relating to exports, initiatives taken to increase exports, development of new export market for products & services and export plans.
During the year, the Company exported 74.480 MT of Endosulfan Technical, 173.80 KL of Endosulfan Formulation, 393.42 MT of DDT 75% WP, 13.750 MT of Mancozeb & 100.000 MT of Mancozeb Formulation.
ii)
Total foreign exchange earnings & outgo: (Rs./Crore)
Foreign Exchange Earnings Foreign Exchange Outgo
21.18 5.49 ------
HINDUSTAN INSECTICIDES LIMITED BALANCE SHEET AS AT 31st MARCH, 2012 Particulars Note No. AS AT 31.03.2012 ` AS AT 31.03.2011 `
I 1) a) b) 2 3 a) b) c) 4 a) b) c) d) II 1 a) i) ii) iii) b) c) d) 2 a)
EQUITY AND LIABILITIES
Shareholders'Funds Share Capital Reserve and Surplus Share application money pending allotment Non Current Liabilites Long Term Borrowings Other Long Term Liabilites Long Term Provisions Current Liabilites Short Term Borrowings Trade Payable Other Current Liabilites Short Term Provisions Total
1 2
913324000.00 -43066136.00
913324000.00 -59105564.00
3 4 5
217440000.00 0.00 298071665.00
217440000.00 0.00 346817330.00
6 7 8
149274539.00 465088229.00 353528817.00 186864858.00 2540525972.00
92159591.00 463563114.00 460253771.00 147758476.00 2582210718.00
ASSETS
Non Current Assets Fixed Assets Tangible Assets Intangible Assets Capital Work-in-Progress Non Current Investments Long Term Loans and Advances Other Non Current Assets Current Assets Current Investments
9 10
289481196.00 0.00 87818460.00
298175756.00 0.00 43226428.00
11 12 13
520000.00 68227698.00 29021354.00
520000.00 164589692.00 15294796.00
14
0.00
0.00
b) c) d) e) f)
Inventories Trade Receivables Cash and Cash equivalents Short Term Loans and Advances Other Current Assets
15 16 17 18 19
725633543.00 1233069948.00 34821429.00 54292306.00 17640038.00 2540525972.00
618421853.00 1297675845.00 54404452.00 53515554.00 36386342.00 2582210718.00
As per our report of even date For AVA & Associates Chartered Accountants FRN:004017N
( R.Dhiman ) Asstt.Co.Secretary
( G. Nath ) General Manager (F&A)
( V. Sekar ) Director ( Finance )
( K. Harikumar Chairman & Managing Director )
( Avineesh Matta ) Partner Membership No.083054
Place : New Delhi Dated : 16.08.2012 HINDUSTAN INSECTICIDES LIMITED STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31st MARCH, 2012 Particulars Note No. AS AT 31.03.2012 `
2572188635.00 67204399.00
AS AT 31.03.2011 `
2495933632.00 144942338.00
REVENUE
I II III IV a) b) c) d) Revenue from Operations Other Income Total Revenue (I+II) 20 21
2639393034.00
2640875970.00
EXPENDITURE
Cost of Material consumed Change in inventories of finished goods, work in progress and stock in trade Employment benefits expense Finance Cost 22 23 24 25
974533053.00 1024936299.00
-66455904.00 998615646.00 20927411.00
-15348638.00 966758270.00 10900907.00
e) f)
Depreciation and Amortisation Exepnses Other Expenses Total Expenditure Profit before exceptional and extraordinary item Exceptional Item Profit before extraordinary item Extraordinary item Profit before tax Tax Expenses of on continuing operations current year Profit/Loss for the period from continuing operations Profit/Loss from discontinuing operations Tax expenses of discontinuing operations Profit/Loss from discontinuing operations (After Tax) Profit/Loss for the period (Profit After Tax)
40946109.00
36042017.00 584318456.00 2607607311.00
26
642687292.00 2611253607.00
V VI VII VIII IX X XI XII XIII XIV XV
28139427.00 0.00 28139427.00 0.00 28139427.00 12100000.00 16039427.00 0.00 0.00 0.00 16039427.00
33268659.00 0.00 33268659.00 0.00 33268659.00 17500000.00 15768659.00 0.00 0.00 0.00 15768659.00
As per our report of even date For AVA & Chartered Accountants Associates FRN:004017N
( R.Dhiman ) Asstt.Co.Secretar y
( G. Nath ) General Manager (F&A)
( V. Sekar ) Director (Finance )
( K. Harikumar Chairman & Managing Director )
( Avineesh Matta ) Partner Membership No.083054
Place : New Delhi Dated : 16.08.2012
NOTES TO FINANCIAL STATEMENT
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 1 : SHARE CAPITAL
A)
Authorised, Issued, Subscribed and Paid up Share and per value per share Authorised Share Capital
10,00,000 Equity Share of Rs.1,000/- each (Previous Year 10,00,000 Equity Share of Rs.1,000/- each) NIL Preference Share of Rs.0/- each (Previous Year 0 Preference Share of Rs.0/- each) Total Issued, Subsribed and Paid-up: 9,13,324 Equity Share of Rs.1,000/-each (Previous Year 9,13,324 Equity Share of Rs.1,000/- each) NIL Preference Share of Rs.0/- each (Previous Year 0 Preference Share of Rs.0/- each)
1000000000.00 1000000000.00
0.00
0.00
1000000000.00
1000000000.00
913324000.00
913324000.00
0.00
0.00
913324000.00
913324000.00
B)
Reconciliation of number of equity share outstanding at the beginning and at the end of the year Number of the share outstanding as at the beginning of the year Add: Number of share allotted during the year Number of the share outstanding as at the end of the year
913324
913324
0
0
913324
913324
C)
Terms / rights attached to equity shares The company has only one class of equity share having par value of Rs.1000/- per shre. Each Shareholder is entitled to one vote per share. Details of each Shareholder holding more than 5 percent share Name of shareholder Numer of shares hold as at 31.03.2012 31.03.2011
D)
President of India
913324 100%
913324 100%
E)
Other disclosures
Particulars
AS AT 31.03.2012 `
Nil
AS AT 31.03.2011 `
Nil
Aggregate numder of equity shares allotted by way of consideration other than cash during the period of five years immediately preceding the Balance Sheet date
NOTE NO. 2: RESERVE AND SURPLUS
A.
CAPITAL RESERVE
Opening Balance Add: Current Year Transfer Less: Written Bank in Current Year Closing Balance
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
B
Surplus/Deficit (Profit and Loss Account)
Opening Balance-Deficit Add: Current Year Transfer Less: Written Bank in Current Year Closing Balance Surplus (Profit and Loss Account) Profit/Loss for the year
-59105564.00 16039428.00 0.00 -43066136.00 0.00 -43066136.00 -74874223.00 15768659.00 0.00 -59105564.00 0.00 -59105564.00
Particulars
AS AT
AS AT
31.03.2012 ` NOTE NO. 3 : LONG TERM BORROWINGS (Secured Loan)
Term Loan: Secured: Govt. of India Interest Accrued and due Unsecured Govt. of India Interest Accrued and due Amount due within 12 months TOTAL Bonds/Debentures Secured Unsecured TOTAL Term Loan from Bank/Others Secured Unsecured TOTAL GRAND TOTAL
31.03.2011 `
0.00 0.00 0.00
0.00 0.00 0.00
217440000.00 0.00 0.00
217440000.00 0.00 0.00
217440000.00
217440000.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00 217440000.00
0.00 0.00 0.00 217440000.00
NOTE NO. 4 : OTHER LONG TERM LIABILITIES
Trade Payable Others TOTAL
0.00 0.00 0.00
0.00 0.00 0.00
NOTE NO. 5: LONG TERM PROVISIONS
Provisions for Employees Benefits
For Superanuation (Unfunded) For Half Pay Sick Leave For Gratuity Less: Transfer to HIL Employee's Gratuity Trust For Leave Salary For Bonus For Taxation TOTAL
30331559.00 420135887.00 -306096697.00 153700916.00 0.00 0.00 298071665.00
25511237.00 354179970.00 -160024874.00 127150997.00 0.00 0.00 346817330.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO.6 : SHORT TERM BORROWINGS A) SECURED
Cash Credit from Bank (Secured by Hypothecation of Raw Materials, Work in Progress, Finihsed Goods and Book Debts) TOTAL
149274539.00 92159591.00
149274539.00
92159591.00
NOTE NO. 7: OTHER CURRENT LIABILITIES
Current maturities of long term debt Interest accrued but not due on borrowings Interest accrued but due on borrowings Income received in advance Unpaid matured deposts and interest accrued thereon Advance From Customers Security Deposits/Earnest Money ESI Payable LIC Premium Payable
0.00 14194340.00 0.00 0.00 9235447.00 346489.00 51112983.00 861455.00 274633.00 0.00 14194340.00 0.00 0.00 5640220.00 5415835.00 53053705.00 5245647.00 287296.00
Commission Payable Unpaid Salary & Wages Amount payable to Ex-employees Other Payable Arrear/Amount Payable to Employees Provident Fund Payable Outstanding Liabilities Statutory Liabilites TDS on Salary Payable TDS on other than Salaries Payable CST Payable VAT Payable Excise Duty Payable Service Tax Payable TOTAL
7848204.00 637323.00 26312.00 37759598.00 1176336.00 2706912.00 217981581.00
4763674.00 146115.00 1316567.00 39484247.00 7616413.00 2392619.00 300727339.00
1872200.00 669619.00 3451807.00 1040932.00 2332646.00 0.00 353528817.00
2125279.00 753305.00 6767767.00 7751651.00 2509952.00 61800.00 460253771.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 8: SHORT TERM PROVISIONS
Provisions for Employees Benefits For Superanuation (Unfunded) For Half Pay Sick Leave For Gratuity Less: Transfer to HIL Employee's Gratuity Trust For Leave Salary For Bonus Other provisions For Taxation Total
9922019.00 107118334.00 0.00 57679505.00 45000.00
7946272.00 78045173.00 0.00 44267031.00 0.00
12100000.00 186864858.00
17500000.00 147758476.00
NOTE NO. 9: FIXED ASSETS - TANGIBLE Reconcialation of the gross carring amounts and net carrying amounts at the beginning and the end of the year Gross Carrying Amount Description As at 31st March'2011 Addition adj. during the year 1. Land Owned leased 2. Buildings Owned leased 3. Plant & Equipmnt Owned leased 4. Furnitures & Fixtures Owned leased 5. Vehicles Owned leased 6. Office Equipments Owned leased 7.Computer Owned leased 8. Others Owned leased Total 9. Capital work-in-progress Grand Total 1254870.20 0.00 1197816665.66 43226426.87 1241043092.53 6240.00 0.00 32754466.00 46928402.4 79682868.40 0.00 0.00 517170.01 2336369 2853539.01 1261110.20 0.00 1230053961.65 87818460.27 1317872421.92 1146498.49 0.00 899640909.28 0 899640909.28 11585.62 0.00 40969755.71 0 40969755.71 0.00 0.00 37899.00 0 37899.00 1158084.11 0.00 940572765.99 0.00 940572765.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 103026.09 0.00 289481195.66 87818460.27 377299655.93 0.00 NOTE NO. 10: FIXED ASSETS - INTANGIBLE 108371.71 0.00 298175756.38 43226426.87 341402183.25 11863620.42 0.00 664654.00 0.00 0.00 0.00 12528274.42 0.00 10246115.41 0.00 667934.96 0.00 0.00 0.00 10914050.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1614224.05 0.00 1617505.01 0.00 37382453.07 0.00 781980.00 0.00 88380.00 0.00 38076053.07 0.00 25544776.73 0.00 948337.47 0.00 37899.00 0.00 26455215.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11620837.87 0.00 11837676.34 0.00 5349509.72 0.00 428790.00 0.00 428790.01 0.00 5349509.71 0.00 3019407.76 0.00 380471.00 0.00 0.00 0.00 3399878.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1949630.95 0.00 2330101.96 0.00 8484458.47 0.00 428525.00 0.00 0.00 0.00 8912983.47 0.00 6843724.43 0.00 181477.05 0.00 0.00 0.00 7025201.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1887781.99 0.00 1640734.04 0.00 915034146.44 0.00 29516852.00 0.00 0.00 0.00 944550998.44 0.00 756105089.59 0.00 34786404.53 0.00 0.00 0.00 790891494.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 153659504.32 0.00 158929056.85 0.00 173666736.01 0.00 927425.00 0.00 0.00 0.00 174594161.01 0.00 93625640.98 0.00 3741142.76 0.00 0.00 0.00 97366783.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 77227377.27 0.00 80041095.03 0.00 19756501.40 25024369.93 0.00 0.00 0.00 0.00 19756501.40 25024369.93 0.00 3109655.89 0.00 252402.32 0.00 0.00 0.00 3362058.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19756501.40 21662311.72 19756501.40 21914714.04 Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Depreciation Provided duing the year Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Impairment Reversed during the year Provided during the year As at 31st March'2012 As at 31st March'2012 Net carrying Amount As at 31st March'2011
Reconcialation of the gross carring amounts and net carrying amounts at the beginning and the end of the year Gross Carrying Amount Description As at 31st March'2011 Addit. adj. during the year Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Depreciation Provided duing the year Deduction during the year As at 31st March'2012 As at 31st March'2011 Accumulated Impairment Reversed during the year Provided during the year As at 31st March'2012 As at 31st March'2012 Net carrying Amount As at 31st March'2011
1. Goodwill 2.Brand/Trade Mark 3.Computer Software 4.Mastheads 5.Mining Rights 6.Copy Rights 7.Patents Total
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 11: NON CURRENT INVESTMENT
Trade Investment Other Investment 50000 Equity shares of Rs.10/- each in Kerala Enviro Infrastructure Ltd., Cochin 100 shares of Rs.100/-each in HIL Employees Co-op. Credit Society,Udyogamandal. 100 shares of Rs.100/-each in HIL Consumer Co-op. Store,Udyogamandal. TOTAL
0.00 0.00
a) b) c)
500000.00
500000.00
10000.00
10000.00
10000.00
520000.00
10000.00
520000.00
520000.00
520000.00
NOTE NO. 12: LONG TERM LOANS AND ADVANCES
A Capital Advances Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (A) Security Deposits Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (B) Loans and Advances to related parties Secured, Considered Goods Unsecured, Considered Goods
0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
B
0.00 1848620.00 0.00 0.00 1848620.00
0.00 1951023.00 0.00 0.00 1951023.00
C
0.00 0.00
0.00 0.00
D
Doubtful Less: Provision for bad and doubtful advances Total (C) Other Loans and Advances Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (D) TOTAL (A+B+C+D)
0.00 0.00 0.00
0.00 0.00 0.00
0.00 66379867.00 10572611.00 10573400.00 66379078.00 68227698.00
0.00 162638669.00 10136616.00 10136616.00 162638669.00 164589692.00
Particulars
Note No.
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 13: OTHER NON CURRENT ASSETS A Long Term Trade Receivables
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (A)
0.00 1693779.00 0.00 0.00 1693779.00 0.00 1643183.00 0.00 0.00 1643183.00
B
Others
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (B)
0.00 25729856.00 1811.00 1811.00 25729856.00 0.00 10758616.00 1811.00 1811.00 10758616.00
C
Debts due by related parties (L&A Adv. To staff)
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total (C)
0.00
0.00
D
Derferred Revenue Expenditure
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful advances Total (C) TOTAL (A+B+C+D)
0.00 1597719.00 0.00 0.00 1597719.00 0.00 2892997.00 0.00 0.00 2892997.00
29021354.00
15294796.00
NOTE NO. 14: CURRENT INVESTMENTS
a) b) c) d) e) Investment in Equity Investment in Preference Shares Investment in Govt. or Trust Securities Investment in Debentures or Bonds Other Investments TOTAL
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 17: CASH AND CASH EQUIVALENTS A.
I
Balance with Banks
Earmarked Bank Balances: In Current Account/Saving Account Bank Balances held as margin money or as security against:
32385145.00
52163449.00
II
a) b) c) d) III a) b)
Borrowings Guarantees Letter of credit Other commitments Other Bank Balance Bank deposits with more than 12 months Others
0.00 1419310.00 0.00 0.00
0.00 1000000.00 0.00 0.00
0.00 0.00
0.00 0.00
B
Cheques, Demand Draft in Hand
Cheque in hand Demand Draft in hand
690037.00 0.00 174327.00 0.00
C D
Cash in hand Others
TOTAL
319865.00 7072.00 34821429.00
385394.00 681282.00 54404452.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 15: INVENTORIES A. RAW MATERIALS
In Stock In Transit
162215323.00 3594562.00 106746123.00 0.00
B.
Work in Progress
In Stock In Transit
97091784.00 0.00 98195600.00 0.00
C
FINISHED GOODS
In Stock In Transit
350939012.00 0.00 295344085.00 1950800.00
By Products Provision for expired materials
11357.00 -19776803.00
6381.00 -20850483.00
D
STORES AND SPARES
In Stock In Transit
74943330.00 790739.00 90433300.00 0.00
E
LOOSE TOOLS
In Stock In Transit
185118.00 0.00 148780.00 0.00
F
PACKING MATREIALS
In Stock In Transit
51171626.00 0.00 41526854.00 0.00
G
FUELS In Stock In Transit TOTAL
4467495.00 0.00 725633543.00
4920413.00 0.00 618421853.00
NOTE NO. 16: TRADE RECEIVABLES A Trade Receivables Outstanding for more than six months from the date they become due for payment
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Allowed for bad and doubtful debts Total (A) B.
0.00 409871914.00 4427338.00 4427338.00 409871914.00 0.00 578042073.00 4434136.00 4434136.00 578042073.00
TRADE RECEIVABLE (OTHERS)
Secured, Considered Goods Unsecured, Considered Goods Doubtful
0.00 825202701.00 0.00 0.00 719633772.00 0.00
Less: Provision for bad and doubtful debts Less: Reserve for Sundry Debtors-Endosulfan Sales Total (B) TOTAL (A+B)
0.00 2004667.00 823198034.00 1233069948.00
0.00 0.00 719633772.00 1297675845.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 18: SHORT TERM LOANS AND ADVANCES
Secured, Considered Goods Unsecured, Considered Goods Doubtful Less: Provision for bad and doubtful debts TOTAL
4512985.00 49779321.00 3477593.00 3477593.00 54292306.00 6098157.00 47417397.00 3454352.00 3454352.00 53515554.00
NOTE NO. 19: OTHER CURRENT ASSETS
Interest Accrued and due on investments Pre-paid Expenses Amount Recoverable from Govt./IPFT/RENPAP/Others Security & Other Deposits TOTAL
1800049.00 842296.00 1065276.00 13932417.00 17640038.00 4317837.00 662386.00 17250762.00 14155357.00 36386342.00
NOTE NO.20:REVENUE SALES
Revenue from Operations Sales of Products Other Operating Revenue Less: Excise Duty TOTAL
2798162900.00 0.00 2798162900.00 225974265.00 2572188635.00
2710379931.00 40000000.00 2750379931.00 254446299.00 2495933632.00
NOTE NO. 21: OTHER INCOME
INTEREST From Bank From Staff & Others Rent Export Benefits Agricultural Income Doubtful Debts Claims & Other recoveries/written back Sundry Amount Adjusted Waiver of Govt. Loan Misc. Income TOTAL(A)
236102.00 13063269.00 626390.00 1884815.00 0.00 125805.00 50527.00 0.00 39524843.00 55511751.00
115521.00 773881.00 370176.00 4450947.00 0.00 105754.00 14173.00 90900000.00 32298138.00 129028590.00
PRIOR PERIOD ADJUSTMENTS (CREDIT)
Sales Other Income Materials Personnel Sales & Admn. Expenses Tax Interest Others TOTAL(B) GRAND TOTAL(A+B)
407.00 4980.00 0.00 261359.00 1594831.00 9491181.00 0.00 339890.00 11692648.00 67204399.00 1960671.00 0.00 617944.00 606715.00 70345.00 0.00 4768079.00 7889994.00 15913748.00 144942338.00
NOTE NO. 22: COST OF MATERIAL CONSUMED
Opening Stock Purchase Total Sales/Adjustments Less:Consumed in Other Departments Less: Closing Stock TOTAL
106132143.00 1047626847.00 1153758990.00 6897968.00 10112646.00 1136748376.00 162215323.00 974533053.00 93118262.00 1049913318.00 1143031580.00 7767203.00 4195935.00 1131068442.00 106132143.00 1024936299.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 23: CHANGE IN INVENTORIES
OPENING STOCK Finished Products By - Products Work -in-Progress Less: Excise Duty on Stock CLOSING STOCK Finished Products By - Products Work -in-Progress Increase(-)/Decrease(+)
295344085.00 6381.00 98195600.00 393546066.00 13909817.00 379636249.00 276689397.00 35494.00 113985286.00 390710177.00 12512749.00 378197428.00
350939012.00 11357.00 95141784.00 446092153.00 -66455904.00
295344085.00 6381.00 98195600.00 393546066.00 -15348638.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 24: EMPLOYEES BENEFITS EXEPENSES
Salaries and incentives Contribution to Provident fund Contribution to Superannuation Scheme Gratuity Fund Contribution Social security and other benefits plans for overseas employees
664739029.00 57836108.00 0.00 159249326.00 0.00 629899001.00 58905249.00 0.00 174554043.00 0.00
Expenses on Employees Stock Option Scheme(ESOP) and Employee Stock Purchase Plan (ESPP) Staff Welfare Expenses Contribution to Employees State Insurance Contribution to HIL Employees Welfare Fund Bonus
0.00 0.00 116406626.00 319979.00 19578.00 45000.00 998615646.00
0.00 0.00 103282499.00 33346.00 71300.00 12832.00 966758270.00
NOTE NO. 25: FINANCE COST Interest Expenses Govt. Loans Other Borrowing costs Interest on Cash Credit Other Interest Less: Interest Income Less: Amount included in Capital Work in Progess TOTAL
0.00
24265504.00
20925940.00 1471.00 0.00 0.00 20927411.00
10900907.00 0.00 0.00 24265504.00 10900907.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
NOTE NO. 26: OTHER COSTS/EXPENSES
Manufacturing Expenses: Repacking & Formulation Charges Packing Material consumed Stores & Spares consumed Carriage inward Catalyst Consumed Power, Fuel and Water R&D and Laboratory Exps. Other Work/Job Expenses Excise Duty Repairs & Maintenance
318899.00 77655272.00 3988548.00 3869511.00 0.00 282015214.00 1622324.00 35738449.00 21827236.00
1808246.00 94348782.00 2533291.00 3538751.00 0.00 207647495.00 2613475.00 22284940.00 13909817.00
On Machinery & Plant Building On others Sales & Administration Exps. Rent Rates & Taxes Insurance Donations Social Obligation Electricity & Water Charges Advertisement Publicity Printing & Stationery Postage ,Telephone & E-mail Exps. Travelling Expenses CMD Directors Others Vehicle Running & Maintenance Exp. Legal & Professional Charges PAYMENT TO AUDITORS AS Auditors For Taxation Matter For company law matter for management services for other services for reimbursement of expenses Total c/f
31157528.00 13171098.00 3196450.00
35964055.00 10502543.00 3891046.00
3991324.00 6314615.00 2315338.00 0.00 1347812.00 1784960.00 5315098.00 2914620.00 2097564.00 2853201.00
3591639.00 5644304.00 1895645.00 0.00 0.00 2299797.00 3942924.00 3083546.00 2248468.00 2787313.00
383460.00 690987.00 14253933.00 1675421.00 4828861.00
160407.00 416314.00 12394116.00 1506533.00 3748791.00
150000.00 75000.00 0.00 0.00 0.00 67068.00 525619791.00
150000.00 75000.00 0.00 0.00 0.00 105726.00 443092964.00
Particulars
AS AT 31.03.2012 `
AS AT 31.03.2011 `
OTHER COSTS/EXPENSES : Note 26 ( Contd…)
Total b/f CISF/Security Expenses Staff Training /Others Expenses Recruitment Expenses Guest House Expenses Filing Fee Township Expenses Subscription & Membership Fee News Papers & Periodicals Bank Charges Foreign Exchange Diff. (Net) Freight, Cartage & Handling Expenses Miscellaneous Expenses Entertainment Expenses Cash Discount/Rebate on Sales Commission Loss on Sale/Write off Assets Provision for Doubtful Debts, Claims & Others Loss on sales of current investments Provisions for losses of subsidiary companies Computer Expense Sundry Amount Written off Demurrage TOTAL(A)
525619791.00 18352137.00 1630329.00 955066.00 828394.00 26273.00 3136341.00 1808648.00 102334.00 2197675.00 1955911.00 43752274.00 6010482.00 1785629.00 19743360.00 8577949.00 43981.00 283161.00 0.00 0.00 782698.00 1044.00 1613028.00 639206505.00 443092964.00 16958058.00 1210456.00 538236.00 732051.00 3516.00 3037128.00 1417541.00 132415.00 2910329.00 0.00 47553663.00 5942286.00 1341997.00 34747105.00 7005121.00 146725.00 4826951.00 0.00 0.00 785773.00 0.00 277260.00 572659575.00
PRIOR PERIOD ADJUSTMENTS (DEBIT)
Sales Materials Manufacturing Expenses Personnel Sales & Admn. Expenses Depreciation Interest
869503.00 1088366.00 252436.00 653413.00 470942.00 23647.00 100947.00 106983.00 176993.00 2660685.00 150380.00 2221393.00 0.00 0.00
Others TOTAL(B) GRAND TOTAL(A+B)
21533.00 3480787.00 642687292.00
6342447.00 11658881.00 584318456.00
HINDUSTAN INSECTICIDES LIMITED
SCHEDULE FORMING PART OF ACCOUNTS FOR THE YEAR 2011-12 ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
A.
SIGNIFICANT ACCOUNTING POLICIES:
1)
Accounting Concepts: The Company prepares its accounts on accrual basis under the historical cost convention.
2)
Fixed Assets: All fixed assets are stated at historical cost reduced by depreciation provided.
3)
Expenditure on Project under Erection: a) All direct expenditure incurred by the company during the construction of projects is capitalised.
b) Interest paid on long term loans, allocable to the project is capitalised.
4) Depreciation: a) Depreciation is provided on straight line method based on estimated useful life of assets as per the rates prescribed in Schedule XIV of the Companies Act, 1956. b) Cost of leasehold land is amortised over the period of the lease. c) Items, each costing Rs.5,000 or less, are fully depreciated in the year of acquisition.
5)
Investments:
Investments categorised as "Long Term" are carried at cost.
6) Inventory Valuation: a) Stock-in-trade: Inventories are valued at lower of cost and net realisable value. Cost of conversion includes cost directly related to units of production such as direct labour and systematic allocation of fixed and variable overheads incurred in converting raw materials into finished goods.
-
The cost of finished goods includes liability towards excise duty paid/payable on excisable finished goods held as inventory, such liability being considered on the basis of provisional/ known sale price where the final prices are not determined.
b) Stores and Spares are valued at cost. c) The costs are based on the weighted average cost.
7)
Redundant/Damaged Equipment/Materials: The Profit/Loss on redundant/damaged equipments/materials is accounted for in the year of disposal of such equipments/materials.
8)
Retirement Benefits: Provision is made as at the end of each financial year on the basis of actuarial valuation to cover the liability in respect of employees towards: a) Gratuity on death / retirement; and b) Accumulated leave.
9)
10)
Grant-in-aid: The grants received from Govt. of India are deducted from the related expenditure.
Deferred Revenue Expenditure:
The expenditure (net of Grant in Aid, if any) incurred on account of Ex-gratia/ compensation paid on Voluntary Retirement of employees under the Voluntary Retirement Scheme is amortised in equal instalments over a period of five years beginning from the year of relieving.
11)
Foreign Currency Transactions: a) Transactions in foreign exchange, are accounted at the exchange rate prevailing on the date(s) of the transaction(s). b) Exchange difference arising out of foreign currency transactions are recognised as income or as expenses in the year in which they arise, except those arising on repayment of liability incurred for acquiring of fixed assets.
12)
Intangible Assets Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and accumulated impairment losses, if any.
13)
Revenue Recognition: a) The supplies to the NVBDCP (formerly NAMP) are valued at the adopted prices worked out by the company keeping in view the parameters followed by the Cost Accounts Branch, Ministry of Finance.
b) The closing stocks of products meant for NVBDCP (formerly NAMP) are valued at lower of cost of production or adopted prices. c) The difference arising out of final prices fixed by CAB and the adopted prices are adjusted in the sales for the year in which the prices are fixed. d) Excise Duty & Sales Tax are provided at provisional price (as per purchase order) in the year of supply. The impact of excise duty and sale tax on account of difference between provisional and final price is provided for in the year in which the final prices are fixed. 14) Provision for old debts
Provision is made in the accounts of the company at the end of the financial year for debts which are outstanding for more than three years and considered doubtful and non recoverable. No provision is made for the debts under litigation/arbitration which are tenable and no financial liability against the same is expected at the end of the financial year.
HINDUSTAN INSECTICIDES LIMITED
SCHEDULE FORMING PART OF ACCOUNTS FOR THE YEAR 2011-12 ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.):
B. 1.
NOTES ON ACCOUNTS: CONTINGENT LIABILITIES AND COMMITMENTS ( TO THE EXTENT NOT PROVIDED FOR)
Particulars
As at 31 March'2012
As at 31 March'2011
A)Contingent Liabilities a) Claims against the company not acknowledged as debts b)Arrear for Workmen Employees (1.04.2007 to 27.04.2011) B)Commitments a) Estimated amount of contracts remaining to be executed on the capital account and not provided for b) Others TOTAL (A+B) 49,09,26,806 68,08,14,061 43,16,92,062 46,97,61,582 34,59,215 37,72,710 7,44,28,040 11,20,00,000 2,97,44,549 45,52,261
2) In case the Counter Guarantees given by the Company in favour of Southern Pesticides Corporation Ltd. (shown above as Contingent Liability), are invoked by Financial Institutions , Govt. of India will provide support, as approved by Cabinet Committee on Economic Affairs (CCEA) on 27th July,06. 3) During the year 2011-12 with the approval of Govt. Of India, the revision of pay scales of workmen has been implemented and the revised salary has been paid from 28.4.2011. The arrear w.e.f. 1.4.2007 to 27.4.2011 shall become payable only when the company generates adequate surplus resources through improved productivity and profitability to the satisfaction of Government and after obtaining prior approval of Govt. Has been shown as Contingent Liability. 4) No provision has been made in the accounts of the company as at 31.3.2012 respect of the following amounts which are considered good and recoverable: a) Sundry Debtors: Outstanding for more than three years amounting to Rs.1141.16 lakhs. b) Loans and Advances: Outstanding for more than three years amounting to Rs.334.13 lakhs. 5) a) The balances of some of the Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation/ reconciliation/ adjustments. b) Sundry Debtors include a sum of Rs. 12.95 lakhs payable by a debtor who has filed a petition to the effect that he is insolvent. The petition has been challenged by the Company. Sundry Debtors also includes a company which has been referred to BIFR with balance outstanding of Rs.9.18 lakhs. c) Stores & Spare parts worth Rs.272.07 lakhs and raw material and packing material worth Rs17.58 lakhs have not moved for more than three years . No provision has been made for the same since these are considered as serviceable / usable . d) Pending investigation, the finished goods of Rs.1.45 lakhs were found short and stores items(packing material) on physical verification as on 31.03.2012 have not been adjusted in the accounts. 6) Difference in the prices adopted in the accounts for 2011-12 over the provisional prices at which supplies to NVBDCP have been made amounts to Rs5092.16 lakhs(Sales – Rs.5013.26 lakhs & Closing Stock - Rs.78.90 lakhs). Further, sales for the year includes Rs.235.89 lakhs towards price difference for the year 2010-11. 7) Related Party Disclosures: Key Management Personnel: a) Shri K. Harikumar, Chairman & Managing Director b) Shri R.R.Sharma, Director (Marketing) c) Shri V. Sekar, Director (Finance) Transactions with the Related Parties is given below: Key Management Personnel: Name of the Director Shri K.Harikumar Shri R.R. Sharma Shri V. Sekar Nature of Transaction Remuneration Remuneration Remuneration Amount (Rs.) 11,09,015 10,63,300 7,76,870
8) The amount of exchange difference included in the Profit & Loss Account for the year comprises Rs.18.95lakhs (Dr.) for Imports and Rs.36.11 lakhs (Cr.) for Exports. 9) (a) The company has equity investment of Rs. 496.66 lakhs (49,666 shares of Rs.1,000 each) in the Southern Pesticides Corporation Ltd. (SPCL) as on 31.03.2008. SPCL was referred to BIFR and BIFR issued order for winding up of SPCL. The Hon'ble High Court of Andhra Pradesh has issued orders for closure of SPCL w.e.f. 2nd April 2002 and all the assets and liabilities have been handed over to Official Liquidator. As any return/payment against the Investment, Sundry Debtors and Loan & Advances is doubtful, the investment in SPCL and the full amount of Sundry Debtors and Loan & Advances have been written off in the year 2009-10. (b) Since the Subsidiary Company, SPCL is under winding-up and all its assets and liabilities have been handed over to Official Liquidator, there is no probability of its operations and it significantly impairs its ability to transfer funds to its parent company i.e. HIL. Accordingly, accounts of SPCL are not being consolidated with the accounts of the company as per AS-21. 10) Out of the township land (leasehold), 2,158 square yards were acquired by Delhi Municipal Corporation. A claim of Rs.4.32 lakhs for compensation was lodged by the company. The claim has not yet been settled for want of `No Objection Certificate’ from Delhi Development Authority. Delhi Development Authority has demanded Rs.1.10 lakhs towards transfer levy charges for issuance of ‘No Objection Certificate’. Adjustments on this account will be made in the accounts on settlement of the issue. Income Tax Assessment has been completed up to Financial Year 2008-09 (Assessment Year 2009-10). Appeals have been preferred by the company in respect of some of the assessments. No provision for contingent liability including penalty if any, arising out of the disposal of such appeals has been made. Particulars/Break-up of R&D Expenditure as shown in note no 13(D) is as per Part-C of Accounting policies and notes on Accounts. The Company is not creating deferred tax asset as there is no viable certainty that the company will earn sufficient income against which such assets will be realized. Keeping in view the nature of business & geographical status of the Company, the Segment Reporting under AS-17 is not applicable. As per existing rules/policies of SCOPE, office premises at Scope Complex can not be registered in the name of allotted Company. The names of the micro & small enterprises to whom the company owes a sum exceeding Rs.1 lakh which is outstanding for more than 30 days as on 31.03.2012 are as NIL. No provision towards impairment of assets as per AS-28 is considered necessary as per book value of assets does not exceed the amount to be recovered through use or disposal of assets.
Disclosure in accordance with AS – 15(R): In line with the accounting policy and as per the Accounting Standard – 15 (R), the Summarized position of post employment benefits are recognized in the profit & loss a/c and balance sheet as under:-
11)
12) 13) 14) 15) 16) 17)
18)
a) Principal Actuarial assumption at the Balance Sheet date (expressed as weighted averages)
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave
201112 2010-11
2011-12
2010-11
2011-12
2010-11
Discount Rate Rate of increase in compensation level Rate of return on plan assets: b)
8.60% 7.00% 9.40%
8.00% 6.00% 9.40%
8.60% 7.00% -------
8.00% 6.00% ------
8.60% 8.00% 7.00% 6.00% -------------
Changes in Present value of Obligation during the period Gratuity Leave Salary Half Pay Sick Leave 3,34,57,509
Particulars
Present value of Obligation as at the beginning Acquisition adjustment Interest Cost Past Service Cost Current Service Cost Curtailment Cost/ Credit Settlement Cost / Credit Benefit Paid (By Enterprises) Benefit Paid (Out of Fund) Actuarial (gain) / loss on obligations Present value of Obligation as at the end of the period c)
43,22,25,143
17,14,18,028
-3,45,78,011 -1,98,78,684 --(78,91,788) (5,63,28,459) 10,47,92,630 52,72,54,221
-1,37,13,442 -2,18,22,123 --(2,56,53,322) -3,00,80,150 21,13,80,421
-26,76,601 -46,81,035 --(44,69,861) -39,08,294 4,02,53,578
Changes in the Fair value of Plan Assets during the period Gratuity Leave Salary Half Pay Sick Leave --
Particulars
Fair Value of Plan Assets at the beginning of the period
16,00,24,874
--
Acquisition adjustment Expected Return on Plan Assets Contributions Benefits Paid Actuarial Gain / (loss) on Plan Assets
-1,24,00,282 19,00,00,000 (5,63,28,459) --
------
------
Fair Value on Plan Assets at the end of the period
30,60,96,697
--
--
d)
Fair Value of Plan Assets
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave --
Fair Value of Plan Assets at the beginning of the period Acquisition adjustment Actual return on plan assets Contributions Benefits Paid Fair Value on Plan Assets at the end of the period Funded Status Excess of actual over estimated return on plan assets e)
16,00,24,874
--
-1,24,00,282 19,00,00,000 (5,63,28,459) 30,60,96,697
------
------
(22,11,57,524) --
(21,13,80,421) --
(4,02,53,578) --
Actuarial Gain / Loss Recognized for the period
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave (39,08,294)
Actuarial gain / loss for the period Obligation
(10,47,92,630)
(3,00,80,150)
Actuarial gain / loss for the period – Plan Assets Total (gain)/ loss for the period Actuarial (gain)/ loss recognized in the period Unrecognized actuarial (gain) / losses at the end of period f)
--
--
--
10,47,92,630 10,47,92,630
3,00,80,150 3,00,80,150
39,08,294 39,08,294
--
--
--
Amount to be recognized in balance sheet and statements of profit and loss Gratuity Leave Salary Half Pay Sick Leave 4,02,53,578
Particulars
Present value of Obligation as at the end of the period Fair value of plan assets as at the end of the Funded Status Unrecognized Actuarial (gains)/losses Unrecognized Past service cost (non vested benefits) Net liability recognized in Balance sheet
52,72,54,221
21,13,80,421
30,60,96,697
--
--
(22,11,57,524) ---
(21,13,80,421) ---
(4,02,53,578) ---
22,11,57,524
21,13,80,421
4,02,53,578
g)
Expense recognized in the statement of profit and loss for the period
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 46,81,035 -26,76,601 ----
Current service cost Past service cost Interest Cost Expected return on plan assets Curtailment Cost/ (Credit) Settlement Cost / (Credit)
1,98,78,684 -3,45,78,011 (1,24,00,282) ---
2,18,22,123 -1,37,13,442 ----
Net actuarial (Gain)/ loss recognized in the period Expenses recognized in the statement of profit & loss
(10,47,92,630)
3,00,80,150
39,08,294
14,68,49,043
6,56,15,715
1,12,65,930
h)
Amount for the current period
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 4,02,53,578 -(4,02,53,578) (33,05,909)
Present value of Obligation Plan assets Surplus (deficit) Experience adjustments on plan liabilities –(loss) / Gain Experience adjustments on plan assets – (loss) / Gain i)
52,72,54,221 30,60,96,697 (22,11,57,524) (9,83,40,063)
21,13,80,421 -(21,13,80,421) (2,72,80,769)
--
--
--
Reconciliation Statement of expense in the statement of Profit & Loss
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 4,02,53,578
Present value of Obligation as at the end of period Present value of obligation as at the beginning of the period Benefit Paid: (i) Directly paid by the enterprise (ii) Payment made out of the fund Actual Return on plan Assets Expenses recognized in the statement of profit & losses
52,72,54,221
21,13,80,421
(43,22,25,143)
(17,14,18,028)
(3,34,57,509)
78,91,788 5,63,28,459 (1,24,00,282) 14,68,49,043
2,56,53,322 --6,56,15,715
44,69,861 --1,12,65,930
j)
Movement in the liability recognized in the Balance Sheet
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave 3,34,57,509 1,12,65,930 (44,69,861)
Opening Net Liability Expense as above Benefits paid directly by the enterprise Contribution paid into the Fund Closing Net Liability
27,22,00,269 14,68,49,043 (78,91,788) (19,00,00,000) 22,11,57,524
17,14,18,028 6,56,15,715 (2,56,53,322) -21,13,80,421
4,02,53,578
k)
Major categories of plan assets (as percentage of total plan assets)
Particulars
Gratuity
Leave Salary
Half Pay Sick Leave -----------
Government of India Securities State Government Securities High Quality Corporate Bonds Equity Shares of listed Companies Property Special Deposit Scheme Funds managed by Insurer Bank Balance Fixed Deposit Other Assets 100%
-------
--------
----
----
l)
Other Details 1279 58 years
Number of Employees Normal Retirement Age
Limit on Amount of Gratuity Limit for leave salary( EL) Limit for leave salary (HPSL)
Rs. 10,00,000/- Maximum 300 days Maximum 180 days
19) C.
Previous years figures have been re-grouped / re-arranged wherever necessary. RESEARCH AND DEVELOPMENT EXPENSES Year ended 31.03.2012 (Rupees) ---Nil Year ended 31.03.2011 (Rupees) ---Nil
Opening Balance Expenditure during the year Amount Written off/adjusted Closing Balance
D. 1.
ADDITIONAL INFORMATION Information pursuant to the provisions of Clauses 3, 4, 4C & 4D of Part II of Schedule VI of the Companies Act,1956:A. Expenditure on Personnel includes payment to Chairman & Managing Director and Directors.
S.No.
Particulars
Salary & Allowances Co. Contribution to P.F. Perquisites: Medical 10,116 20,232 10,116 17,056 Canteen 14,460 28,920 13,085 23,597 4. Provisions/Payments: Gratuity 1,04,043 97,556 65,945 70,120 Leave Encashment 1,64,520 8,20,340 1,13,818 1,24,108 Half Pay Sick Leave 85,951 2,18,223 24,433 33,658 Total 16,03,811 32,28,017 13,14,467 19,25,636 Note : The Chairman & Managing Director and Directors have been allowed the use of staff car including for private journey upto a ceiling of 1000 K.M. per month on payment of prescribed amount in accordance with the provisions of Govt. of India, Ministry of Finance, Bureau of Public Enterprises O.M.No.2(18)/PC/64 dated 20th Nov.,64 as amended from time to time.
1. 2. 3.
2011-12 C.M.D. Directors (Rupees) 11,09,015 18,40,170 1,15,706 2,02,576
2010-11 C.M.D. Directors (Rupees) 9,83,743 14,95,390 1,03,327 1,61,707
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
I. Registration Details Registration No. 0 0 2 3 7 7 State Code 5 5 (Refer Code list)
Balance Sheet Date
3 1
0 3
2 0 1 2
Date
Month
Year
II. Capital raised during the year ( Amount in Rs. Thousands)
Public Issue
Rights Issue
Govt.
Bonus Issue
Private Placement
III. Position of Mobilisation and Deployment of Funds( Amount in Rs. Thousands)
Total Liabilities 2 5 4 0 5 2 6
Total Assets 2 5 4 0 5 2 6
92 c Inserted by Notification NO. GSR 388(E) , dated 15.05.1995.
Sources of Funds
Paid-up Capital 9 1 3 3 2 4
Reserves & Surplus 4 3 0 6 6
Secured Loans 1 4 9 2 7 4
Unsecured Loans 2 1 7 4 4 0
Application of Funds
Net Fixed Assets (Including new projects under erection) 3 7 7 3 0 0
Investments
5 2 0
Net Current Assets 8 5 7 5 5 5
Misc. Expenditure 1 5 9 8
Accumulated Losses 4 3 0 6 6
IV.
Performance of Company (Amount Rs. in Thousand): Turnover 2 6 3 9 3 9 3 Profit/Loss before tax + 2 8 1 3 9 + Total Expenditure (Net) 2 6 1 1 2 5 4 Profit/Loss after tax 1 6 0 3 9
(Please tick Appropriate box + for profit, - for Loss) Dividend % rate Earning per Share in rupees during the year N I L
1 8 V. Generic Names of five principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description D D T 3 8 0 8 . 1 0
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
M A L A T H I O N
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
B U T A C H L O R
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
M A N C O Z E B
Item Code No. (ITC Code) Product Description
3 8 0 8
.
1 0
D I
C O F O L
Note : For ITC Code of Products please refer to the Publication of India Trade Classification based on harmonized commodity description and coding system by Ministry of Commerce, Directorate of Commercial Intelligence & Statistics, Calcutta-700 001.
( R. Dhiman) Asstt.Co.Secretary ( G. Nath ) General Manager (F&A) ( V. Sekar ) Director (Finance) ( K. Harikumar ) Chairman & Managing Director
Place : New Delhi Dated: 16.8.2012
STATEMENT OF SUBSIDIARY COMPANY
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO THE SUBSIDIARY COMPANY THE SOUTHERN PESTICIDES CORPORATION LIMITED, HYDERABAD. (Rs. in thousand)
Sl.No.
Items
As on 31.3.2012
As at 31.3.2011
1.
The Financial Year of the Subsidiary Company ended on
31.3.2012
31.3.2011
2.
Shares of the Subsidiary Company held by HIL on the above date
(i) Number
49,666 of Rs. 1000/each
49,666 of Rs. 1000/each
(ii) Extent of Holding
76%
76%
3.
The net aggregate amount of profit of the Subsidiary Company for the Financial year so far as it concerns HIL
(i) Dealt with the accounts of HIL for the year
Nil
Nil
(ii) Not dealt with in the accounts of HIL for the year
(-)11,34,92
(-)11,34,92
4.
The Net Aggregate amount of Profit (+)/Loss(-) of the Subsidiary Company cumulative till end of the Year so far as it concerns HIL
(i) Dealt with in the accounts of HIL for the year
Nil
Nil
(ii) Not dealt with in the accounts of HIL for the year
(-) 32,45,02
(-)32,45,02
Note: The above information is based on Annual Accounts of the subsidiary company for the year 200102 (last audited accounts). Since the subsidiary company is under liquidation, the accounts for the year 2011-12 are not available.
