Jyothi Lab Finacial Reoport
Transcript of Jyothi Lab Finacial Reoport
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JYOTHY CONSUMER PRODUCTS LIMITED
[Formerly known as Henkel India Limited]
ANNUAL REPORT 2012
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BOARD OF DIRECTORS
Mr. M.P. RAMACHANDRAN CHAIRMAN
Mr. K. ULLAS KAMATH DIRECTOR
Ms. M.R. JYOTHY DIRECTOR
Mr. NILESH B. MEHTA DIRECTOR
Mr. K.P. PADMAKUMAR DIRECTOR
Mr. BIPIN R. SHAH DIRECTOR
Mr. R. LAKSHMINARAYANAN DIRECTOR
REGISTERED OFFICE
UJALA HOUSE,Ramakrishna Mandir Road, Kondivita,
Andheri (East), Mumbai - 400 059
AUDITORS
M/s. CNGSN & AssociatesChartered Accountants
Chennai - 600 017.
REGISTRARS & SHARE TRANSFER AGENTS
Cameo Corporate Services Ltd.,Subramaniam Building, V Floor, 1, Club House Road, Chennai - 600 002.
Tel : (044) 2846 0390 (5 Lines) Fax : (044) 2846 0129
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CONTENTS
1. Notice .....................................................................................................................3-
2. Directors Report .................................................................................................7-1
3. Corporate Governance Report.........................................................................11-2
4. Management Discussion and Analysis Report ..............................................21-2
5. Auditors Report ................................................................................................23-2
6. Balance Sheet.........................................................................................................2
7. Statement of Prot and Loss ................................................................................2
8. Statement of Cash Flow ..................................................................................46-4
9. Auditors Report Consolidated Financial Statements ........................................4
10. Consolidated Financial Statements ................................................................49-6
11. Consolidated Statement of Cash Flow ...........................................................67-6
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NOTICE FOR THE NINETY-FIRST ANNUAL GENERAL MEETING
Notice is hereby given that the 91st Annual General Meeting of Jyothy Consumer Products Limited (Formerly Henkel India Limit
will be held at M. C. Ghia Hall, Indian Textile Accessories & Machinery Manufacturers Association, Bhogilal Hargovindas Build
4th Floor, 18/20, K. Dubhash Marg, Kala Ghoda, Mumbai 400 001 on Thursday, the 22nd day of November, 2012 at 12.00 p.m
transact the following business:
ORDINARY BUSINESS:
1. To consider and adopt the audited Balance Sheet as at 31st March, 2012, Statement of Prot and Loss for the year ended
that date and the Reports of Auditors and Directors thereon.
2. To appoint a Director in place of Mr. M. P. Ramachandran, who retires by rotation and being eligible offers himself
re-appointment.
3. To appoint a Director in place of Mr. K. Ullas Kamath, who retires by rotation and being eligible offers himself for re-appointm
4. To appoint a Director in place of Ms. M. R. Jyothy, who retires by rotation and being eligible offers herself for re-appointme
5. To consider and if thought t, to pass with or without modications, the following resolution as an ORDINARY RESOLUTIO
RESOLVED THAT M/s. CNGSN & Associates, Chartered Accountants (Firm Registration No. 004915S), Chennai, the reti
auditors and M/s. S. R. Batliboi & Associates, Chartered Accountants (Firm Registration No. 101049W) Mumbai, be and
hereby appointed as Statutory Auditors of the Company to hold ofce, from the conclusion of this Annual General Meeting
the conclusion of the next Annual General Meeting and the Board of Directors be and are hereby authorized to x the term
appointment including the remuneration of the Statutory Auditors, as they deem t.
By order of the Bo
For Jyothy Consumer Products L
(Formerly known as Henkel India L
M. P. Ramachand
Chairm
Regd. Off: UJALA HOUSE,
Ramakrishna Mandir Road, Kondivita,
Andheri (East), Mumbai 400 059
Date :15th September, 2012
Place: Mumbai
NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING MAY APPOINT A PROXY
ATTEND, AND, ON A POLL, VOTE INSTEAD OF HIMSELF / HERSELF. A PROXY NEED NOT BE A MEMBER. Proxie
order to be effective must be received at the Registered Ofce of the Company not less than 48 hours before the commencem
of Annual General Meeting.
2. The documents referred to in the Notice and Explanatory Statement are open for inspection at the Registered Ofce of
Company between 11.00 a.m. to 1.00 p.m. on all days, except Saturdays, Sundays and holidays, up to the date of the Ann
General Meeting.
3. The Book Closure Date for the purpose of Annual General Meeting will be from 23rd October, 2012 to 31st October, 2012 (b
days inclusive).
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4. Members holding shares in physical form and desirous of making a nomination in respect of their shareholdings in the Compa
as permitted under Section 109A of the Companies Act, 1956, may ll Form 2B (in duplicate) and send the same to the of
of the Registrars and Share Transfer Agents of the Company. In case of shares held in dematerialized form, the nominati
change in nomination should be lodged with their DPs.
5. Members are requested to correspond with Registrars and Share Transfer Agents of the Company for all matters relating
shareholding in the Company.
6. Corporate Members are requested to send to the Companys Registrars and Share Transfer Agents, a duly certied copy of
Board Resolution authorizing their representative to attend and vote at the AGM.
7. Members are requested to hand over the enclosed Attendance Slip, duly lled in and signed in accordance with their specim
signature(s) registered with the Company for admission to the AGM hall. Members who hold shares in dematerialized form
requested to ll in their client ID and DP ID Numbers for identication.
8. Members desiring any information on the accounts are requested to write to the Company at least seven days in advanc
the AGM.
9. Green Initiative
Ministry of Corporate Affairs (MCA) has launched a Green Initiative in the Corporate Governance by allowing paper
compliances by the companies. MCA has issued circular nos. 17/2011 dated 21.04.2011 & 18/2011 dated 29.04.20
stating that the service of a notice / documents by a company to its shareholders can now be made through electro
mode.
In view of the above, the Company proposes to henceforth send Annual Report (Audited Financial Statements, Direct
Report, Auditors Report, etc.,) and documents such as the Notice of the Annual General Meeting, to the shareholder
Electronic Form to the email address registered with their Depository Participants.
Shareholders are requested to furnish their e-mail IDs to enable the Company forward all the requisite information
electronic mode. In case of shareholders holding shares in demat form, the email ids of the shareholders, registered w
the DP and made available to the Company, shall be the registered email IDs unless communication is received to
contrary. Shareholders requiring a printed copy of the Annual Report, should inform the details like name, PAN, DP ID and Cl
ID through an email at [email protected]. or a letter to Registrars and Share Transfer Agents of the Company
10. As required under Clause 49 of the Listing Agreement, executed with the stock exchanges, the details of Directors retiring
rotation and seeking re-appointment at the ensuing AGM are as below:
Item No.2 of the Notice: Re-appointment of Mr.M. P. Ramachandran
Age : 66 years
Qualication : Post Graduate degree in Financial Management
Expertise : Industrialist
Date of appointment : 31/5/2011
Mr. M. P. Ramachandran is the Chairman and Managing Director of Jyothy Laboratories Limited (JLL). He holds a postgradu
degree in Financial Management from University of Mumbai and began his career as an accountant in 1971 in Mumbai. He set
Jyothy Laboratories business in 1983. He has over 38 years of experience in sales, production and general management. In 20
and 2004, he was nominated by The Economics Times for Entrepreneur of the Year Award.
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He is holding Directorship in the following Indian companies. This list does not include Directorship in Companies excluded as
Section 278 of the Companies Act, 1956.
Sl. No. Company PositionCommittee Membership
Chairman Member
1. Jyothy Laboratories Limited Chairman & Managing Director - ShareholdersGrievanceCommittee
2. Jyothy Fabricare Services Limited Chairman & Managing Director Audit Committee -
3. Sivasakthi Ayurvedic Research Centre Limited Director - -
4. Jyothy Consumer Products Marketing Limited Chairman - -
Item No.3 of the Notice: Re-appointment of Mr.K.Ullas Kamath
Age : 49 years
Qualication : Chartered Accountant, Company Secretary
Bachelors Degree in Law & Masters Degree
in Commerce
Expertise : Finance, Sales & General Management
Date of appointment : 31/5/2011
Mr. K. Ullas Kamath is the Joint Managing Director of Jyothy Laboratories Limited (JLL). He is a qualied Chartered Account
and Company Secretary and holds a bachelors degree in Law and masters degree in Commerce. He has also participated in
Advanced Management Programme at Wharton Business School and at Harvard Business School. His responsibilities inclu
business development, new projects, sales, nancial management and supervision of day-to-day operations. He has been on Bo
of JLL since 1997. Prior to that, he was practicing as a Chartered Accountant. The Institute of Chartered Accountants of India g
him an Award CA BUSINESS ACHIEVER SME at a function held on January 25, 2009.
He is holding Directorship in the following Indian companies. This list does not include Directorship in Companies excluded as Section 278 of the Companies Act, 1956.
Sl. No. Company PositionCommittee Membership
Chairman Member
1. Jyothy Laboratories Limited Joint Managing Director - Audit Committee &Shareholders Grievanc
Committee
2. Jyothy Fabricare Services Limited Director - Audit Committee
3. Jyothy Consumer Products Marketing Limited Director - -
Item No.4 of the Notice: Re-appointment of Ms. M. R. Jyothy
Age : 34 years
Qualication : Bachelors Degree in Commerce
MBA from Wellingkers Management Institute
Expertise : Management, Marketing
Date of appointment : 31/5/2011
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Ms. M. R. Jyothy is Whole-Time Director of Jyothy Laboratories Limited. She holds a bachelors degree in Commerce from
University of Mumbai and an MBA from Wellingkers Management Institute, Mumbai. She has undertaken a course in Fam
Managed Business Administration from S. P. Jain Institute of Management, Mumbai. She has recently completed Owner / Presid
Management Programme from Harvard University. She has been on the Board of the Company since October 2005 and hand
sales administration, marketing and brand communication.
She is holding Directorship in the following Indian companies. This list does not include Directorship in Companies excluded as
Section 278 of the Companies Act, 1956.
Sl. No. Company PositionCommittee Membership
Chairman Member
1. Jyothy Laboratories Limited Executive Director -
2. Jyothy Fabricare Services Limited Director - -
3. Sahyadri Agencies Limited Director - -
4. Jyothy Consumer Products Marketing Limited Director - -
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DIRECTORS REPORT
To,
The Shareholders
Your Directors have pleasure in presenting the 91st Annual Report of the Company together with the Audited Accounts for
15 months nancial period ended 31st March, 2012.
FINANCIALS
The nancial period under review commenced from 1st January, 2011 and ended on 31st March, 2012 comprised of 15 mon
while the nancial year 2010 comprised of 12 months commencing from 1st January, 2010 to 31st December, 2010. The closur
the nancial year was deferred to match the nancial year of Jyothy Laboratories Ltd. (JLL), holding company of the Company.
Company sold its Hair-Care Division SKP in the month of April, 2011 (before the take-over of the Company by JLL). Therefore,
gures for the previous nancial year 2010 included the Sales generated under Hair-Care Division whereas, except for the pe
upto April, 2011, the gures for period under review does not include the gures in respect of Hair-Care Division. Hence, the abso
gures for nancial performance for the year under review are not comparable with that of previous nancial year.
The Financial highlights of the period under review are as below:
Stand alone:
(`in
Particulars
From 1st January,
2011 to 31st
March, 2012
(15 Months)
From 1st Janua
2010 to 31st
December, 201
(12 Months)
Sales (net) 44,800.85 45,017
Other Income 163.05 381
EBITDA 3,146.74 2,412
Financial Expense 1,958.16 1,696
Depreciation and Amortizations 780.01 603
Prot before Tax and Exceptional items 408.57 112
Exceptional items
- Sale of Division 2,534.77
- Bad debt written off (9,000.00)
Prot Before Tax (6,056.66) 112
Tax expense
- Current tax - 20
- MAT credit entitlement - (20.2
Prot After Tax (6,056.66) 112.
Balance in Prot and Loss Account as per last Balance Sheet Brought Forward 808.49 695Add: Balance transferred from General Reserve 1,047.38
Balance at the end of the period Carried Forward (Prot and Loss Account) (4,200.79) 808
Earnings Per Share (Basic and Diluted) (5.20) 0
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Consolidated results
(`in
Particulars From 1st January,
2011 to 31st
March, 2012
(15 Months)
From 1st Janua
2010 to 31st
December, 201
(12 Months)
Sales (Net) 52,733.56 53,390.
EBITDA 2,514.83 (1,748.2
Financial Expense 5,822.61 2,832.
Depreciation and Amortisations 780.01 603.
Loss before Tax and Exceptional items (4,087.79) (5,184.2
Exceptional items 2,534.77
Loss before tax (1,553.02) (5,184.2
Loss after tax (1,553.02) (5,184.2
The Net Sales for the period under review was `52,733.56 lacs as against `53,390.35 lacs during the previous year 2010. EBIT
margin for the period under review was 4.77% as against negative EBITDA margin of 3.27% in the year 2010. The Company incurNet Loss after tax of ` 1,553.02 lacs as against `5,184.27 lacs during the year 2010.
HUMAN RESOURCES
During the year under review, the production at the Karaikal factory was affected due to interruptions, labour unrest and shut-do
for a period of 61 days which affected the performance of the Company during the respective quarter. Your Company supp
the Employees with tools, systems, standards and individualized training programs to create an environment in which individ
performance and teamwork can thrive. The Company believes in maintaining cordial relationship with all employees.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
With regard to the requirements of Section 217(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particu
in the Report of the Board of Directors) Rules, 1988, the Company has nothing specic to report.
Foreign Exchange Earnings and Outgo:
(`in
Particulars From 1st January,
2011 to 31st
March, 2012
From 1st Janua
2010 to 31st
December, 201
Foreign exchange earnings 1,217.29 436.
Foreign exchange outgo 2,331.58 3153.
SUBSIDIARY COMPANY
At the end of the Financial year, the Company had 1 (one) subsidiary viz., Henkel Marketing India Ltd.
As per General Circular No. 2/2012 dated 8th February, 2011, issued by the Ministry of Corporate Affairs, Govt. of India in term
provisions of Section 212 of the Companies Act, 1956, the Central Government granted general exemption under Section 212(8
the said Act from attaching to its Annual Report, the copies of the Balance Sheets, Statements of Prot & Loss, Directors Rep
and Auditors Reports and other documents of all its subsidiary companies that are required to be attached under Section 212(1the said Act.
Accordingly, your Directors have pleasure in attaching the consolidated nancial statements prepared in accordance with the Accoun
Standard AS-21 on consolidated nancial statements, which form part of this Annual Report. These consolidated nancial rep
provide nancial information about your Company and its subsidiaries as a single entity. In view of the same, nancial statements
subsidiary are not attached to the nancial statements of the Company. A gist of the nancial performance of the subsidiary is given
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this Annual Report. The annual accounts of the subsidiary are open for inspection by any member and the Company will make availa
these documents/details upon request by any member of the Company interested in obtaining the same.
AUDIT REPORT
The Audit Report does not contain any qualication. However it has been observed under point No. vii) of the Report that the Comp
does not have an adequate Internal Audit commensurate with size and nature of business. After the take-over of the Company by Jthe Audit Committee reviewed the same and recommended for appointment of Internal Auditors in its meeting held on 9th Novemb
2011. Accordingly, the Board, on recommendation by the Audit Committee, appointed M/s. Mahajan & Aibara, Chartered Accountan
Mumbai as Internal Auditors of the Company for the nancial year 2012-13 in its meeting held on 22nd May, 2012.
DIVIDEND
For the year under review, your Directors have not recommended dividend due to loss incurred by the Company.
PUBLIC DEPOSITS
Your Company has not accepted any deposit from the public during the year.
DIRECTORS
In accordance with the requirements of the Companies Act, 1956, and the Articles of Association of the Company, Mr. M.
Ramachandran, Mr. K. Ullas Kamath and Ms. M. R. Jyothy, Directors of the Company are due to retire by rotation at the ensuAnnual General Meeting of the Company and being eligible have offered themselves for re-appointment. The Board recomme
their re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT
In compliance with the provisions of Section 217(2AA) of the Companies Act, 1956 (the Act), your Directors conrm that:
i) in the preparation of the annual accounts for the 15 months period ended 31st March, 2012, the applicable accounting standahad been followed along with proper explanation relating to material departures;
ii) accounting policies were adopted and applied consistently and judgments and estimates were made that were reasonable prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2012 and of the prot or of the Company for the 15 months period ended on that date;
iii) proper and sufcient care has been taken for the maintenance of adequate accounting records in accordance with the provisof the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and
iv) the Annual Accounts have been prepared on a `going concern basis.
CORPORATE GOVERNANCE
As per Clause-49 of the Listing Agreement with the Stock Exchanges, a section on corporate governance is presented separat
and forms part of this Report.
PARTICULARS OF EMPLOYEES
The particulars of employees as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particu
of Employees) Rules, 1975, as amended, are attached to this report.
AUDITORS
M/s. CNGSN & Associates, Chartered Accountants, Chennai, the Statutory Auditors of the Company will retire at the conclusio
ensuing Annual General Meeting and are eligible for re-appointment as Auditors of the Company.
It is proposed to jointly appoint M/s. CNGSN & Associates, Chennai, and M/s. S.R. Batliboi & Associates, Chartered AccountanMumbai as statutory Auditors of the Company from the conclusion of ensuing Annual General Meeting till the conclusion of
subsequent Annual General Meeting to be held in the year 2013. The Company has received eligibility certicate from both
proposed Auditors in terms of Section 224(1B) of the Companies Act, 1956.
The Directors recommend the appointment of Statutory Auditors as proposed above.
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ACKNOWLEDGEMENT
Your Directors take this opportunity to express their gratitude to all the employees for the signicant personal efforts and t
collective contribution. Your Directors wish to thank the shareholders for their continued support, encouragement and the conde
reposed in the Management.
For and on behalf of the Board of Direct HENKEL INDIA L
Place : Mumbai M. P. Ramachand
Date : 22nd May, 2012 Chairm
PARTICULARS OF EMPLOYEES
The information pursuant to the provisions of Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars
Employees) Rules, 1975, as amended, regarding the employees is given below:
Name of the
employee
Designation Qualication Age in
years
Date of
joining
Experience Gross
Remunerationpaid (`in lac)
Previous Employme
Designation
Mr. Jayant K. Singh Managing Director
up to 31st May,
2011
MBA from
IIM, Lucknow
39 31/03/2009 15 years 29.15 Chairman and
Managing Director
for GSK Consumer
Healthcare, Sri Lank
Notes:
1. The remuneration shown above is the monthly remuneration paid upto 31st May, 2011 which included salary, allowanccompanys contributions to Provident Fund and other perquisites valued as per Income Tax Rules, 1962.
2. Mr. Singh was also paid a compensation of `1.38 crores for breach of contract on mutual consent for terminating the contof employment without requisite notice.
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CORPORATE GOVERNANCE REPORT
Your Company is committed to pursue growth by adhering to the high standards of Corporate Governance. The key eleme
of Corporate Governance are transparency, disclosure, supervision, internal controls, risk management, internal and exte
communications and high standards of safety and product quality. The Company believes that practice of each of these creates
right corporate culture that fulls the true purpose of the Corporate Governance.
1. COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE
The Company endeavors to achieve high level of transparency, integrity and equity in all its operations by implementing b
practices for Corporate Governance. Your Company also ensures high disclosure standards through continuous monitorin
its operations.
2. BOARD OF DIRECTORS
a. Composition
The Company is managed by the Board of Directors, which formulates strategies, policies, and procedures and reviews
performance periodically.
The Board comprises of 7 (seven) Directors (all are Non-executive Directors) of whom 4(four) are Independent DirectMr. M. P. Ramachandran, Mr. K. Ullas Kamath, Ms. M.R. Jyothy belong to promoters group of Jyothy Laboratories Ltd,
holding company. The composition of Board of Directors is in compliance with the requirement of the Listing Agreement.
b. The Composition of Board and Attendance of Directors
Name Status Attendance
in Board
Meetings
Attendance
in last AGM
held on
14/9/2011
Other
Directorships
held
Other
Committee
Membership
(Chairman)
held
Held Attended Yes/No/NA
Dr. A. C. Muthiah Non-executive Chairman % 7 2 NA NA NA
Mr. Patrick Kaminski Non- executive Director % 7 1 NA NA NA
Mr. Ben Ho Non- executive Director % 7 2 NA NA NA
Mr. Thomas Jungmann Non-executive Director % 7 2 NA NA NA
Dr. A. Besant C. Raj Independent Director % 7 3 NA NA NA
Mr. Sukhendu Ray Independent Director % 7 3 NA NA NA
Mr. RM. Muthukaruppan Independent Director ^ 7 2 NA NA NA
Mr. A. Satish Kumar Non-executive Director % 7 2 NA NA NA
Dr. Uddesh Kohli Independent Director % 7 1 NA NA NA
Prof. Debashis Chatterjee Independent Director % 7 1 NA NA NA
Mr. V. Selvaraj Independent Director % 7 3 NA NA NA
Mr. Jayant K. Singh Managing Director % 7 2 NA NA NA
Mr. M. P. Ramachandran Non-Executive Director $ 7 4 Yes 3 1(1)
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Name Status Attendance
in Board
Meetings
Attendance
in last AGM
held on
14/9/2011
Other
Directorships
held
Other
Committee
Membership
(Chairman)
heldHeld Attended Yes/No/NA
Mr. K. Ullas Kamath Non-executive Director $ 7 4 Yes 2 2
Ms. M. R. Jyothy Non-exectutive Director $ 7 4 Yes 3 -
Mr. Bipin R. Shah Independent Director $ 7 4 No 4 5(1)
Mr. K. P. Padmakumar Independent Director $ 7 2 No 5 3(1)
Mr. R. Lakshminarayanan Independent Director $ 7 3 No 1 -
Mr. Nilesh B. Mehta Independent Director $ 7 2 Yes 8 2(1)
NA Not Applicable$ Appointed as Additional Directors w.e.f 31/5/11
^ Resigned as a Director w.e.f 4/5/11% Resigned as Directors w.e.f. 31/5/11
All Independent Directors of the Company furnish a declaration at the time of their appointment as also annually that t
qualify the conditions of their being independent. These declarations are placed before the Board.
c. Number of Board Meetings
The Board Meetings are held atleast once in a quarter. Board of Directors met 7 (seven) times during the period from
January, 2011 to 31st March, 2012 i.e. on 8th February, 2011, 4th May, 2011, 31st May, 2011(two meetings), 27th July, 20
9th November, 2011 and on 23rd January, 2012. The period between two Board meetings was well within the maximum ga
four months as prescribed under Clause-49. The annual calendar of meetings is broadly determined at the beginning of e
year.
3. COMMITTEES OF THE BOARD
The Board has constituted various committees for smooth and efcient operation of the Company viz., Audit Commit
Remuneration Committee; Share Transfer and Investors Grievance Redressal Committee. The terms of reference of
Committees are laid down by the Board from time to time. Meetings of each Board Committees are convened by the Chairm
of the respective Committees. The minutes of the meetings of the Committee are placed before the subsequent meeting ofBoard. The role, composition of the Committees and other information of the Committees are provided below:
A. AUDIT COMMITTEE
The Audit Committee primarily oversees the Companys nancial reporting process and disclosure of its nancial informatio
ensure the correctness and adequacy. The Committee provides reassurance to the Board on the existence of effective inte
control system.
Terms of Reference
The Committee was constituted by the Board of Directors and its scope interalia includes the following :
Overseeing of the Companys nancial reporting process and the disclosure of its nancial information to ensure that
nancial statement is correct, sufcient and credible.
Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of
statutory auditor and xation of audit fees.
Reviewing, with the management, performance of statutory and internal auditors, and adequacy of the internal control system
Discussion with internal auditors any signicant ndings and follow up there on.
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Composition
The Audit Committee was reconstituted with new Members being Mr. Nilesh Mehta, Mr. K. P. Padmakumar, Mr. Bipin R. Sh
Mr. R. Lakshinarayanan and Mr. K. Ullas Kamath on 31st May, 2011 consequent to the resignation of Dr. A. Besant C. R
Mr. Ben Ho, Mr. Sukhendu Ray and Mr. A. Satish Kumar with effect from that date. The reconstituted Audit Commit
comprises of four Independent Directors and one Non-executive Director. Mr. Nilesh Mehta is the Chairman of the CommittAll members have nancial management expertise.
Prior to aforesaid re-constitution, the Audit Committee comprised of 4 (four) members, all being Non-executive Directors
which 2 (two) were Independent. All members of Audit Committee had nancial management expertise.
During the year, the Committee met on ve occasions on 2nd February, 2011, 5th May, 2011, 27th July, 2011, 9th Novem
2011 and on 23rd January, 2012. The meetings of Audit Committee were attended by the auditors and other senior person
of the Company. The recommendations of the Audit Committee were accepted and implemented by the Board.
Attendance
Name Meetings held Meetings attended
Dr. Besant C. Raj (Chairman till 31-05-2011) 5 2
Mr. Sukhendu Ray 5 2
Mr. A. Satish Kumar 5 1
Mr. Ben Ho 5 0
Mr. Nilesh Mehta (Chairman since 31-05-2011) 5 2
Mr. Bipin R. Shah 5 3
Mr. R. Lakshminarayanan 5 2
Mr. K. Ullas Kamath 5 3
Mr. K. P. Padmakumar 5 2
C. REMUNERATION COMMITTEE
The Committee was constituted to decide the Companys policy on specic remuneration packages for Executive and N
executive Directors on the Board. The Committee has also been empowered to recommend the periodic increments in saand annual incentives of the Executive Directors. The Committee has not met during 2011-12.
Composition
The Remuneration Committee has been reconstituted with new Members being Mr. Nilesh Mehta, Mr. K. P. Padmakum
Mr. R. Lakshminarayan and Mr. K. Ullas Kamath on 31st May, 2011, consequent to the resignation of Dr. A. Besant C. R
Mr. Sukhendu Ray and Mr. V. Selvaraj.
D. SHARE TRANSFER AND INVESTORS GRIEVANCE REDRESSAL COMMITTEE
Terms of Reference
The terms of reference of the Share Transfer and Investors Grievance Redressal Committee includes monitoring the w
related to transfer, transmission, dematerialization, rematerialisation, sub-division and consolidation of shares of the Comp
and also to ensure that all investors grievances and complaints are redressed expeditiously to strengthen the Inves
relations.
Composition
The Committee has been reconstituted with new Members being Mr. M. P. Ramachandran, Mr. K. Ullas Kamath, Ms. M
Jyothy and Mr. Nilesh Mehta on 31st May, 2011 consequent to the resignation of Dr. A. Besant C. Raj, Mr. A. Satish Kuma
Mr. RM. Muthukaruppan with effect from that date. Mr. M. P. Ramachandran is the Chairman of the Committee.
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4. REMUNERATION TO DIRECTORS:
Remuneration
Non-executive Directors are paid sitting fees for every meeting of the Board and the Committees attended by them. The det
whereof are as below:
Directors Total
Dr. A. Besant C. Raj 47,500.00
Mr. Satish Kumar A. 32,500.00
Mr. Sukhendu Ray 27,000.00
Mr. V. Selvaraj 18,000.00
Mr. R. M. Muthukaruppan 15,500.00
Dr. A. C. Muthiah 6,000.00
Dr. Uddesh Kohli 6,000.00
Prof. Debashis Chatterjee 6,000.00
Mr. Bipin R Shah 36,000.00
Mr. R. Laxminarayanan 26,000.00
Mr. K. P. Padmakumar 23,000.00
Mr. Nilesh Mehta 23,000.00
Mr. K. Ullas Kamath 3,000.00
Mr. M. P. Ramachandran 3,000.00
Mr. M. R. Jyothy 3,000.00
Grand Total 275,500.00
None of the above Directors have been paid any Commission during the year. During the previous nancial year, Mr. Jay
K. Singh was paid a total remuneration of Rs.29.15 lacs up to May 31, 2011 and Rs.1.38 crores was paid as compensation
breach of contract on mutual agreement against pre-mature termination of his contract.
5. GENERAL BODY MEETING
Details of last three Annual General Meetings:
Year Date Time Special Resolutions pass
2008 11th September, 2009 10.15 am None
2009 16th September, 2010 10.30 am None
2010 14th September, 2011 11.00 am None
* All AGMs were held in Rajah Annamalai Hall, Esplanade, Near High Court, Chennai 600 108.
Postal Ballot:
During the year under review, 2 (two) Special and 2 (two) Ordinary Resolutions were passed through postal ballot proce
Details of voting conducted through postal ballot process for the business stated in the Notice dated November 9, 2011
respect of aforesaid resolutions were as below:
Sr.
No.
Particulars Valid Postal
Ballot forms
received
Votes in
favour of the
resolution
Votes
against the
Resolution
Invalid
Postal Forms
received
Results
1 Special Resolution for shifting of registeredofce from State of Tamilnadu to the State ofMaharashtra (within jurisdiction of Registrarof Maharashtra, Mumbai):
1696 9,83,79,110 28,219 86 Approvedwith requismajority
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Sr.
No.
Particulars Valid Postal
Ballot forms
received
Votes in
favour of the
resolution
Votes
against the
Resolution
Invalid
Postal Forms
received
Results
2 Special Resolution for making loan,
investment, guarantee or provide securitybeyond the prescribed limits under Section372A of the Companies Act, 1956:
1625 9,83,32,640 52,726 157 Approved
with requismajority
3 Ordinary Resolution for enhancing thepower of Board of Directors of the Companyto borrow funds under Section 293(1)(d) ofthe Companies Act, 1956
1622 9,83,52,667 33,386 160 Approvedwith requismajority
4 Ordinary Resolution for empowering theBoard of Directors of the Company to createcharge over the assets of the Company interms of Section 293(1)(a) of the CompaniesAct, 1956
1619 9,83,49,875 35,754 163 Approvedwith requismajority
Procedure for Postal Ballot:
Ms. Lalitha Kannan, Partner of M/s K. Padmanabhan & Associates, Practising Company Secretaries, Chennai, was appoinas scrutinizer to conduct postal ballot proceedings in a fair and transparent manner by the Board of Directors at the mee
held on November 9, 2011. The postal ballot notice containing the draft proposed resolutions along with the explanat
statements thereto, postal ballot forms and postage pre-paid envelope were sent to all the members as on the cut-off date
January 20, 2012). The Company published advertisement in requisite newspapers specifying date of completion of dispatc
postal ballot notice, date of end of voting and other matters as specied under Rule 3 of the Postal ballot Rules on 26th Janu
2012. The Company did not avail e-voting facility.
The members were required to read the instructions printed in the postal ballot forms and give their assent/dissent on
Resolutions and at the end of the form sign the same as per the specimen signatures available with the Company or Deposit
Participants, as the case may be, and return the form duly completed in the self-addressed postage pre-paid envelope by
before the close of the working hours of the last date xed for the purpose i.e. 20th February, 2012. Postal ballot forms recei
after that date were treated as if the forms had not been received from the members.
Voting rights were reckoned on the basis of number of shares and paid-up value of shares registered in the name of respective shareholders as on the cut-off date mentioned in the postal ballot notice.
The Scrutinizer, appointed for the purpose, had scrutinized the postal ballot forms received and submitted the report da
22nd February, 2012 to the Company. Resolutions were deemed to have been passed as Special Resolution if the votes c
in favour are atleast three times the votes cast against and in case of Ordinary Resolution, the resolution were deemed to h
been passed, if votes cast in favour were more than the votes cast against.
The results of the postal ballot process were declared on February 29, 2012 at 3.00 p.m. UJALA HOUSE, Ramakrishna Ma
Road, Kondivita, Andheri (East), Mumbai 400059 and thereafter the results were displayed on the website of the Comp
and the stock exchanges were informed on March 2, 2012 in accordance with Clause 35A of the Listing Agreement.
6. DISCLOSURES
Related party transactions during the year have been disclosed elsewhere in the annual report as required under Accoun
Standard-18 notied by the Companies (Accounting Standards) Rules, 2006. There has been no non-compliance by
Company or penalty or strictures imposed on the Company by the Stock exchange or SEBI or any statutory authority, on matter related to capital markets, during the last 3 years. In the preparation of the nancial statements, the Company
followed the Accounting Standards notied by the Companies (Accounting Standards) Rules 2006, as amended from tim
time. The signicant accounting policies which are consistently applied are set out in the Note 1 & 2 to the Accounts.
None of the Directors held any shares in the Company as on 31st March, 2012:
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7. MEANS OF COMMUNICATION
The Financial results of the Company were published in compliance with the requirements of Clause-41 of the Lis
Agreement. The nancial results and the press releases were posted on the website of Jyothy Laboratories Ltd.
www.jyothylaboratories.comunder the section provided for Henkel India Ltd.
8. MANAGEMENTS DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report forms part of this Report and given separately elsewhere in this Annual Repo
9. SUBSIDIARY COMPANY
The Company has one unlisted subsidiary Company namely Henkel Marketing India Limited with its Registered Ofce
Chennai. The minutes of the Board Meetings of unlisted Subsidiary Company are considered and taken on record in the Bo
Meetings of the Holding Company.
10. RISK MANAGEMENT PROCEDURE:
The Company has laid down procedures and apprised the Board of Directors regarding key risk assessment and risk mitiga
mechanisms.
11. GENERAL SHAREHOLDER INFORMATION
Registered Ofce of the Company Regd. Off: 43A, T. H. Road, KKD Nagar,
Kodungaiyur, Chennai 600 118
Forthcoming Annual General Meeting will be held on Thursday, November 22, 2012 at 12.00 p.m. at M.C. Ghia Hall, Ind
Textile Accessories & Machinery Manufacturers Association, Bhogilal Hargovindas Building, 4th Floor, 18/20. K. Dubh
Marg, Kala Ghoda, Mumbai 400 001
Financial Calendar -2012-13 (Proposed)
First quarter results July/August 2012
Second quarter results Oct/Nov 2012
Third quarter results Jan/Feb 2012
Fourth quarter and Annual results May 2013
Book Closure Dates
From 23rd October, 2012 to 31st October, 2012 (both days inclusive)
Listing on Stock Exchanges
The shares of the Company are listed on Bombay, Madras & Calcutta Stock Exchanges. The Annual Listing fees in respec
the shares of the Company for the nancial year 2012-2013 has been paid by the Company promptly.
Stock Code
Stock Exchange Stock Code
Madras Stock Exchange Limited,11, Second Lane Beach, Chennai -600 001.
HIL
Bombay Stock Exchange LimitedPhiroze Jeejeebhoy Towers, Dalal Street,Mumbai 400 001.
532671
The Calcutta Stock Exchange Ltd.Lyons Range, Kolkata 700 001
37210 & 10037210
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Depository Connectivity
National Securities Depository Limited (NSDL)
Central Depository Services (India) Limited (CDSL)
ISIN : INE099H01019
Stock Market price data in BSE
Month Monthly High
(`)
Monthly Low
(`)
January 2011 48.20 36.05
February 2011 37.65 28.00
March 2011 49.95 32.70
April 2011 43.90 32.90
May 2011 40.00 32.60
June 2011 40.70 38.45
July 2011 41.40 38.00
August 2011 41.00 32.55September 2011 39.75 30.75
October 2011 32.00 25.55
November 2011 31.00 21.90
December 2011 26.95 20.00
January 2012 27.60 21.40
February 2012 36.45 24.60
March 2012 29.60 22.05
9. Share Transfer System
A Committee constituted for this purpose interalia approves transfers in the physical form. As per the directions of SEBI,
Company immediately on transfer of shares, sends letters to the investors in the prescribed format informing them about
simultaneous transfer and dematerialisation option available for the shares transferred in their names.
10. Shareholding Pattern / Distribution as on 31/03/2012
Number of
Shares slab
No. of
Shareowners
% of shareowners No. of Shares % to Total
1 100 24,371 44.23 16,57,894 1.42
100 500 26,038 47.26 64,92,019 5.58
501 1000 2,775 5.04 22,35,801 1.92
1001 2000 1,063 1.93 16,32,724 1.40
2001 3000 288 0.52 7,39,760 0.64
3001 4000 142 0.26 5,09,243 0.44
4001 5000 130 0.24 6,21,976 0.53
5001 and 10000 162 0.29 12,12,010 1.04
> 10001 130 0.23 10,13,52,844 87.03
TOTAL 55,099 100.00 11,64,54,271* 100.00
* 10,200 shares have been kept in abeyance pending settlement of disputes over title.
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11. CATEGORIES OF SHAREOWNERS AS ON 31/03/2012
Category No. of Share
Owners
No. of Shares
Held
Voting
Strength (%)
Promoters, Relatives & Associates 1 9,74,26,487 83.66
Bodies Corporate (Domestic) 562 19,12,000 1.64
Banks, Mutual Funds & Financial Institutions 10 10,795 0.01
Foreign Institutional Investors (FIIs) 1 10,000 0.01
NRI /OCBs/ Foreign Nationals 386 4,63,395 0.40
Clearing Member, Trust, Resident (Public & others) 54,139 1,66,31,594 14.28
Total 55,099 11,64,54,271* 100.00
* 10,200 shares have been kept in abeyance pending sattlement of disputes over title.
12. Top 10 Shareholders as on 31/03/2012
Name Category Shares %
Jyothy Laboratories Limited Promoter 9,74,26,487 83.65
Mangal Keshav Securities Limited Public 5,50,000 0.47Lal Tolani Public 2,75,671 0.24
Smarniya Properties Pvt. Ltd. Public 1,02,229 0.09
Lumesh T Sanghavi Public 1,00,000 0.09
Sainath Roopesh Kumar Public 1,00,000 0.09
S. Roopesh Kumar Public 99,830 0.09
Divyesh Bharat Shah Public 92,289 0.08
Tara Chand Jain Public 82,534 0.07
Dr. Anil Gupta Public 65,400 0.06
13. HIL Performance Composition v/s BSE Index
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14. Dematerialisation/Rematerialisation
SEBI mandated compulsory dematerialisation of shares for all purpose of trading through registered channels. As
31st March, 2012, 11,26,26,478 shares of the Company held by the Shareholders are in demat form aggregating 96.71% of
total equity Paid Up Capital. The Company has signed agreements with both National Securities Depository Limited (NSD
and with Central Depository Services (India) Limited (CDSL) to provide the facility of holding equity shares in dematerialisform.
15. Outstanding GDRs/ADRs etc.
The Company has not issued any Global Depository Receipt/American Depository Receipt/Warrant or any convert
instruments pending conversion or any other instrument likely to impact the equity share capital of the Company.
16. COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE
Certicate from the Practicing Company Secretary Mrs. B. Chandra, Chennai conrming compliance certicate with
conditions of corporate governance as stipulated under clause 49 of the listing agreement forms part of the Annual Report
17. COMPLIANCE OFFICER
Mr. P. Sampath
Ofcer (Secretarial)
Henkel India Limited
43A, T. H. Road, KKD Nagar,
Kodungaiyur, Chennai 600 118
Ph: 044-39196871/ 862
Email ID : [email protected]
18. ADDRESS FOR COMMUNICATION - REGISTRARS AND SHARE TRANSFER AGENTS
M/s. Cameo Corporate Services Limited
Unit Henkel India
Fifth Floor, Subramaniam Building,
No.1, Club House Road,
Chennai - 600 002.
Tel: (044) 28460390 (5 lines)
Fax: (044) - 28460129 Email: [email protected]
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PRACTISING COMPANY SECRETARIES CERTIFICATE ON CORPORATE GOVERNANCE
To: The Shareholders of Henkel India Ltd
We have examined the compliance of conditions of corporate governance by Henkel India Ltd, for the period ended on 31st Ma2012 as stipulated in clause-49 of the Listing Agreement of the Company with Stock Exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination has been lim
to a review of procedures and implementation thereof, adopted by the Company for ensuring the compliance with the condition
Corporate Governance as stipulated in the said clause. It is neither an audit nor an expression of opinion on the nancial stateme
of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the representations made by
Directors and the Management, I certify that the Company has complied in all material respects with the conditions of Corpor
Governance as stipulated in clause-49 of the above-mentioned Listing Agreement.
We state that no investor grievances are pending for a period exceeding one month against the Company as per the reco
maintained by the Shareholder Grievance Committee.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efciency
effectiveness with which the management has conducted the affairs of the Company.
CHANDRA
Practising Company Secret
CP No.7
Place : Chennai
Dated : 22nd May, 2012
CONFIRMATION ON CODE OF CONDUCT
To,
The Shareholders of Henkel India Ltd.
Pursuant to Clause 49 (1) (D) (ii), I hereby conrm that, for the 15 month nancial period ended 31st March, 2012, all the Memb
of the Board of Directors and the Senior Management Personnel have afrmed compliance with the Code of Conduct framed by
Company.
M. P. Ramachand
Chairm
Place : Mumbai
Dated : 22nd May, 2012
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We have audited the attached Balance Sheet of Henkel India
Limited as at March 31, 2012, the Prot and Loss Account
and also the Cash Flow Statement for the period ended on
that date annexed thereto. These nancial statements are the
responsibility of the Companys management. Our responsibility
is to express an opinion on these nancial statements based on
our audit.
We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the nancial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
nancial statements. An audit also includes assessing theaccounting principles used and signicant estimates made by
the management, as well as evaluating the overall nancial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order 2003,
issued by the Department of Company Affairs on June 12, 2003
and as amended under Notication dated November 25, 2004 in
terms of sub-section (4A) of Section 227 of the Companies Act,
1956, we enclose in the annexure a statement on the matters
specied in paragraph 4 and 5 of the said Order.
Further to our comments in the annexure referred to above, we
report that:
i. We have obtained all the information and explanations
which, to the best of our knowledge and belief were
necessary for purpose of the audit;
ii. In our opinion, proper books of accounts have been kept
as required by law so far as appears from our examination
of those books;
iii. The Balance Sheet, Prot and Loss Account and C
Flow Statement dealt with by this report are in agreem
with books of account;
iv. In our opinion, Balance Sheet, Prot and Loss Acco
and Cash Flow Statement dealt with by this report com
with the Accounting Standards referred to in sub-sect
(3C) of Section 211 of the Companies Act, 1956 to
extent applicable.
v. On the basis of written representations received f
Directors, as on March 31, 2012 and taken on record
the Board of Directors, we report that, none of the Directare disqualied as on March 31, 2012 from being appoin
as a Director in terms of clause (g) of sub-section (1
Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information
according to the explanation given to us, the said accou
together with the notes thereon, give the informat
required by the Companies Act, 1956 in the manner
required, and give a true and fair view in conformity w
the accounting principles generally accepted in India
a. in the case of Balance Sheet, the state of affair
the Company as at March 31, 2012.
b. in the case of Prot and Loss Account, of the L
for the period ended on that date and
c. in the case of Cash Flow Statement, of the c
ows for the period ended on that date.
AUDITORS REPORT TO THE MEMBERS OF HENKEL INDIA LIMITED
For CNGSN & ASSOCIATChartered Accountants
F.R. No. 04915S
C.N. GANGADARAN
PartnerMemb. No. 11205
Place : ChennaiDate : May 22, 2012
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Annexure referred to in paragraph 3 of the report of even dateof the Auditors to the Members of Henkel India Limited on the
accounts for the period ended March 31, 2012
i) a) The Company is maintaining proper records,showing full particulars including quantitative detailsand situation of xed assets.
b) The Company has a programme of physicalverication of xed assets, which in our opinion isreasonable having regard to the size of the Companyand the nature of its business.
c) None of the xed assets have been revalued duringthe period.
d) A substantial part of the xed assets have not beendisposed of during the period.
ii) a) Physical verication of inventory was conducted atreasonable intervals by the management during theperiod.
b) In our opinion, procedures for physical vericationof inventory followed by the management arereasonable and adequate in relation to the size ofthe Company and nature of its business.
c) The Company is maintaining proper recordsof inventory and the discrepancies noticed onverication were not material.
iii) a) The Company has taken unsecured loan of `26,395/-lacs during the year from a party listed in the Registermaintained under Section 301 of the Companies Act,1956. The year end balance is `14,204/- lacs andthe maximum outstanding amount during the year is`26,395/-. No loans have been granted to any suchparties.
b) In our opinion rates of interest and other terms andconditions are not prejudicial to the interest of theCompany.
c) The repayment of the principal amounts and interestwherever applicable are regular.
d) The loans taken by the Company are repayableon demand and therefore the question of overdueamounts does not arise.
iv) In our opinion, and according to the information explanations given to us, there are adequate inte
control procedures commensurate with the size of Company and the nature of its business with regards
purchase of inventories and xed assets and for the s
of goods. During the course of audit no continuing fail
to correct major weaknesses in internal control system w
observed.
v) a) According to the information and explanation gi
to us, we are of the opinion that the particulars
contracts or arrangements that need to be ente
into a Register in pursuance of Section 301 of
Companies Act, 1956 have been duly entered.
b) In our opinion and according to the information
explanation given to us, transactions exceeding ` 5
in respect of each party which have been made
pursuance of contracts or arrangements entered
the Register maintained under Section 301 of
Companies Act, 1956 have been made at pri
which are reasonable, having regard to the prevai
market prices at the relevant time.
vi) The Company has not accepted any Fixed Deposits f
the public during the period and therefore, the quest
of compliance with the directives issued by the Rese
Bank of India and the provisions of Section 58A and 58
or any other relevant provisions of the Companies A
1956 and the rules framed thereunder does not arise.
vii) The Company does not have an adequate Internal A
commensurate with the size and nature of its business
viii) The cost accounts and the records prescribed by
Central Government under clause (d) of sub-section (1
section 209 of the Companies Act, 1956 have been ma
and maintained.
ix) a) According to the records of the Compa
undisputed statutory dues including Provident Fu
Employees State Insurance Fund, Income-t
Wealth tax, Service tax, Sales tax, Customs d
Excise duty, Cess and other statutory dues hbeen deposited regularly during the period with
appropriate authorities. According to the informa
and explanation given to us, there are no undispu
ANNEXURE TO THE AUDITORS REPORT
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amounts payable which are outstanding as on March
31, 2012 for a period of more than six months from
the date they became payable.
b) The following amounts have not been deposited with
respective authorities because of disputes.
Statute Year Amount (`)Forum where
pending
Income Tax1990-2000 to
2001-0232,82,050
Commissioner(Appeal)
Income Tax Total 32,82,050
Central Excise-KKL
1996-1997 to2002-2003
15,52,086 CESTAT
Ambattur 2003-2004 4,36,187 CESTAT
Excise Total 19,88,273
Sales Tax-MP2000-2001 to
2002-0318,47,888 CTO
Grand Total 1,18,45,119
x) At the end of the nancial period, the accumulated lossof the Company is less than 50% of its Net worth. TheCompany has incurred cash loss during the nancial periodbut not in the immediately preceding nancial period.
xi) The Company has not defaulted in repayment of dues toBanks during the period.
xii) No loans or advances have been granted by the Companyagainst pledge of Shares and Debentures and othersecurities.
xiii) The Company is not a chit fund or a nidhi mutual benfund/society.
xiv) The Company is not dealing in or trading in ShaSecurities, Debentures and other instruments.
xv) According to the information and explanation given tothe Company has not given any Corporate Guaranduring the period.
xvi) The Company has received long term loan during period and has applied it for the purpose for which it been raised.
xvii) According to the information and explanations given toby the management, the funds raised on short term bahave not been used for long term investment.
xviii) During the period the Company has not made apreferential allotment to parties and companies covein the register maintained under Section 301 of
Companies Act, 1956.
xix) The Company has not issued any debentures during period and therefore the question of creation of securitcharge does not arise.
xx) During the period, the Company has not raised any moby way of public issue and the question of disclosing end use of money by the management does not arise.
xxi) According to the information and explanations given tono fraud on or by the Company was noticed or reporduring the course of our audit.
Place : ChennaiDate : May 22, 2012
For CNGSN & ASSOCIATChartered Accountants
F.R. No. 04915S
C.N. GANGADARAN
PartnerMemb. No. 11205
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BALANCE SHEET AS AT MARCH 31, 2012
The accompanying notes are an integral part of the nancial statements.
As per our report of even date For and on behalf of the Board of Directors ofFor M/s. CNGSN & Associates HENKEL INDIA LIMITEDChartered AccountantsFirm registration number: 04915S
C. N. GangadaranPartner M.P. Ramachandran K. Ullas KamathMembership No. 11205 Chairman Director
Place : Mumbai Place : MumbaiDate : May 22, 2012 Date : May 22, 2012
`In L
Note As atMarch 31, 2012
As atDecember 31, 20
EQUITY AND LIABILITIES
Shareholders funds
Share capital 3 18,446.45 18,446
Reserves and surplus 4 (3,120.52) 2,806
15,325.93 21,252
Non-current liabilities
Borrowings 5 13,000.00 18,507
Provisions 6 117.22 12
13,117.22 18,520
Current liabilities
Borrowings 5 1,204.40
Trade payables 7 5,175.25 5,125
Other liabilities 8 435.74 651
Provisions 6 24.88 15
6,840.27 5,791
TOTAL 35,283.42 45,564
ASSETS
Non-current assets
Fixed assets 9
(i) Tangible assets 7,296.62 8,108
(ii) Intangible assets 17,720.13 17,720
Investments 10 2.30 2
Loans and advances 11 736.92 701
Other assets 12 0.40
25,756.37 26,532
Current assets
Inventories 13 3,556.37 4,901
Trade receivables 14 3,679.38 9,747
Cash and bank balances 15 398.16 38
Loans and advances 11 1,866.37 4,345
Other assets 12 26.77
9,527.05 19,031
TOTAL 35,283.42 45,564
Summary of signicant accounting policies 2
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The accompanying notes are an integral part of the nancial statements.
As per our report of even date For and on behalf of the Board of Directors ofFor M/s. CNGSN & Associates HENKEL INDIA LIMITEDChartered AccountantsFirm registration number: 04915S
C. N. GangadaranPartner M.P. Ramachandran K. Ullas KamathMembership No. 11205 Chairman Director
Place : Mumbai Place : MumbaiDate : May 22, 2012 Date : May 22, 2012
STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE FIFTEE
MONTHS PERIOD ENDED MARCH 31, 2012`In La
Note January 1, 2011 toMarch 31, 2012
January 1, 2010December 31, 20
(15 Months) (12 Months)
REVENUE
Sales 45,967.70 46,772Less: Excise duty (1,166.85) (1,755.Net sales 44,800.85 45,017Other operating income 16 274.94 157Revenue from operations 45,075.79 45,174Other income 17 163.05 381Total Revenue 45,238.84 45,556
EXPENDITURE
Cost of raw material and components consumed 18 9,306.76 13,847Purchase of traded goods 19,970.45 15,290(Increase)/decrease in inventories of nished goods, work-in-progress andtraded goods
19 563.72 186
Employee benets expense 20 2,833.98 1,693Other expenses 21 9,417.19 12,125Depreciation and amortisation 9 780.01 603Interest and nance charges 22 1,958.16 1,696Total Expense 44,830.27 45,443
Prot before tax and Exceptional items 408.57 112
Exceptional items
Sale of Division 2,534.77 Bad debt written off (9,000.00)Prot/(Loss) before tax (6,056.66) 112
Current tax 20Less: MAT Credit entitlement (20.
Prot/(Loss) after tax (6,056.66) 112
EARNINGS PER SHARE (EPS)
Basic and Diluted (`) (5.20) 0
Nominal value per share (`) 10
Weighted average number of shares outstanding for calculation 116,464,471 116,464,4of Basic and Diluted EPSSummary of signicant accounting policies 2
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NOTES TO FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS PERIO
ENDED MARCH 31, 2012
NOTE 1 - BASIS OF PREPARATION
The nancial statements of the Company have been prepared in accordance with generally accepted accounting principlesIndia (Indian GAAP). The Company has prepared these nancial statements to comply in all material respects with the accounstandards notied under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of Companies Act, 1956. The nancial statements have been prepared under the historical cost convention on an accrual basis excin case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Compand are consistent with those used in the previous year, except for the change in accounting policy explained below.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The signicant accounting policies are as follows:
a) Change in accounting policy
i) During the year ended March 31, 2012, the revised Schedule VI notied under the Companies Act, 1956, has becoapplicable to the Company, for preparation and presentation of its nancial statements. The adoption of revised SchedVI does not impact recognition and measurement principles followed for preparation of nancial statements. Howevit has signicant impact on presentation and disclosures made in the nancial statements. The Company has areclassied the previous year gures in accordance with the requirements applicable in the current year.
ii) During the year, the Company has changed valuation of inventory from weighted-average cost method to First-in-First-method to align with the group accounting policy of inventory valuation. Accordingly, the impact of the change was material to the nancial statements for the nancial year.
b) Use of estimate
The preparation of nancial statements, in conformity with Indian GAAP requires management to make judgements, estimaand assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabiliat the end of the reporting period. Although these estimates are based upon managements best knowledge of current eveand actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustmto the carrying amounts of assets or liabilities in future periods.
c) Fixed assets
Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost of acquisition is inclusive of inward frei
duties and taxes and incidental expenses related to acquisition. In case of projects involving construction, related pre-operatioexpenses form part of value of xed asset capitalized. Expenses capitalized also include applicable borrowing costs aadjustments arising from foreign exchange rate variations relating to borrowings attributable to the xed assets.
Fixed assets acquired on the merger of Henkel SPIC India Limited into the Company during 2004 have been taken the books at fair value as per the scheme of amalgamation, as approved by the Honble High Court of Madras. In caserevaluation of Fixed Assets, the original cost as written up to the extent certied by the valuer is considered in the accounts the differential amount is transferred to Revaluation Reserve.
d) Depreciation and amortisation
Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the managemenat the rates prescribed under Schedule XIV of the Companies Act, 1956 whichever is higher.
The estimated useful life of the assets is as follows:
Category Estimated useful life
(in years)Factory Buildings 30Building (Other then Factory Building) 60Plant and machinery 21Furniture and xtures 16Ofce equipments 21Vehicles 8-10
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e) Impairment
i. The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If indication exists, or when annual impairment testing for an asset is required, the Company estimates the asserecoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units (CGU) selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset do
not generate cash inows that are largely independent of those from other assets or groups of assets. An impairmloss is recognized wherever the carrying amount of an asset exceed its recoverable amount. The recoverable amounthe greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash owsdiscounted to their present value at the pre-tax discount rate.
ii. A previously recognized impairment loss is increased or reversed only if there has been a change in the assumptiused to determine the assets recoverable amount since the last impairment loss was recognized. The reversal is limso that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount twould have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior year
f) Operating Leases
Leases, where the lessor effectively retains substantially all the risks and benets of ownership of the leased item, are classias operating leases. Lease payments on operating leases are recognized as an expense in the Prot and Loss Account ostraight-line basis, over the lease term.
g) Government grants and subsidies Grants and subsidies from the government are recognized when there is reasonable assurance that the grant/subsidy wil
received and all attaching conditions will be complied with.
When the grant or subsidy relates to revenue item, it is recognized as income over the periods necessary to match thema systematic basis to the costs, which it is intended to compensate. Where the grant or subsidy relates to an asset, its vais deducted from the gross value in arriving at the carrying amount of the related asset. Government grant in the naturepromoters contribution is credited to the investment subsidy reserve.
h) Investment
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributaacquisition charges such as brokerage, fees and duties and other costs that arise on acquisition of investment. Investmethat are readily realizable and intended to be held for not more than one year from the date on which such investments made are classied as current investments. All other investments are classied as long-term investments. Current investmare carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are car
at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of investments.
i) Inventories
Inventories of raw materials, packing materials, work-in-progress, nished goods, stores and consumables items are valuecost or net realizable value, whichever is lower. However, materials and other items held for use in the production of inventoare not written down below cost if the nished products in which they will be incorporated are expected to be sold at or abcost.
Cost is ascertained on First-in-First-out (FIFO) basis and includes all applicable costs incurred in bringing goods to tpresent location and condition. Cost of work-in-progress, manufactured packing material and nished goods includes mateand all applicable manufacturing overheads. The Company accrues for excise duty liability in respect of manufactured nisgoods/intermediary inventories lying in the factory.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion
estimated cost necessary to make the sale.j) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benets will ow to the Company and the revenue be reliably measured.
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Sale of Goods
Revenue is recognized when all the signicant risks and rewards of ownership of the goods have passed to the buyer, usuon delivery of the goods. Excise Duty, Sales Tax and VAT deducted from turnover (gross) is the amount that is included in amount of turnover (gross) and not the entire amount of liability arised during the year. Revenue includes the amount of excduty refund received/due in accordance with incentive scheme. Revenue is net of trade discount given.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
k) Foreign currency translation
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are reported using the exchange rate prevailing at the reporting date. Non-moneitems which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rat the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominain a foreign currency are reported using the exchange rates that existed when the values were determined.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting Companys monetary items at radifferent from those at which they were initially recorded during the year, or reported in previous nancial statements,recognized as income or as expenses in the year in which they arise.
l) Retirement and other employee benets
(i) Retirement benets in the form of Provident Fund and Superannuation Fund are dened contribution schemes andcontributions are charged to the Prot and Loss Account of the year when the contributions to the respective funds due. There are no other obligations other than the contribution payable to the respective fund.
(ii) Gratuity liability is dened benet obligation and is provided for on the basis of an actuarial valuation on projected credit method made at the end of each nancial year.
m) Sales promotion items
Sales promotion items are valued at cost. Cost is ascertained on First-in-First-out (FIFO) basis and includes all applicacosts incurred in bringing goods to their present location and condition.
n) Income-tax
Income-tax expense comprises of current tax and deferred tax charge or release. Provision for current income-tax is based onassessable prots computed in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognised, subto consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure toriginate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recogniunless there is virtual certainty that sufcient future taxable income will be available against which such deferred tax asswill be realized.
o) Provisions
A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outof resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are
discounted to its present value and are determined based on best estimate required to settle the obligation at the BalanSheet date. These are reviewed at each Balance Sheet date and adjusted to reect the current best estimates.
p) Excise duty
Excise duty on turnover is reduced from turnover. Excise duty relating to the difference between the opening stock and closstock is recognized as income/expense as the case may be, separately in the Prot and Loss Account.
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NOTES TO FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS PERIO
ENDED MARCH 31, 2012`In L
As atMarch 31, 2012
As atDecember 31, 20
NOTE 3
SHARE CAPITAL
AUTHORISED CAPITAL
172,000,000 (2010 - 172,000,000) equity shares of `10 (2010 - `10) each 17,200.00 17,200
68,000,000 (2010 - 68,000,000) redeemable non-cumulative / cumulative
preference shares of `10 (2010 - `10) each 6,800.00 6,800
24,000.00 24,000
ISSUED, SUBSCRIBED AND PAID UP CAPITAL
116,464,471 (2010 - 116,464,471) equity shares of `10 (2010 - `10) each fully paid 11,646.45 11,646
28,000,000 (2010 - 28,000,000) 9% redeemable
non-cumulative preference shares of `10 (2010 - `10) each 2,800.00 2,800
40,000,000 (2010 - 40,000,000) 4% redeemablecumulative preference shares of `10 (2010 - `10) each 4,000.00 4,000
18,446.45 18,446
a. Out of the total shares issued by Henkel SPIC India Limited during 1999 on Rights basis, 10,200 shares have been kepabeyance pending settlement of disputes on title. Henkel India Limited shares will be issued to these shareholders on settlemof disputes.
b. Details of shareholders holding more than 5% shares in the Company
As at March 31, 2012 As at December 31, 2010
Name of Shareholder No. of shares % Holding in the
class
No. of shares % Holding in
class
Equity Shares
Henkel Ag & Co. KGaA 59,360,203 50.9
Tamilnadu Petroproducts Limited 19,395,900 16.6
Jyothy Laboratories Limited 97,426,487 83.66%
Non-cumulative Preference Shares
Henkel Ag & Co. KGaA 28,000,000 100.0
Jyothy Laboratories Limited 28,000,000 100.00%
Cumulative Preference Shares
Henkel Ag & Co. KGaA 40,000,000 100.0
Jyothy Laboratories Limited 40,000,000 100.00%
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c. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
`In L
As at March 31, 2012 As at December 31, 2010
No. of shares Amount No. of shares Amount
Equity SharesAt the beginning of the period/year 116,464,471 11,646.45 116,464,471 11,646
Issued during the period/year
Outstanding at the end of the period/year 116,464,471 11,646.45 116,464,471 11,646
Non-cumulative Preference Shares
At the beginning of the period/year 28,000,000 2,800.00 28,000,000 2,800
Issued during the period/year
Outstanding at the end of the period/year 28,000,000 2,800.00 28,000,000 2,800
Cumulative Preference Shares
At the beginning of the period/year 40,000,000 4,000.00 40,000,000 4,000
Issued during the period/year
Outstanding at the end of the period/year 40,000,000 4,000.00 40,000,000 4,000
NOTE 4RESERVES AND SURPLUS
As atMarch 31, 2012
As atDecember 31, 20
Capital reserve 843.19 843
General reserves
Balance, beginning of the period/year 1,047.38 1,047
Add: Amount transferred to surplus/(decit) balance in the Prot and Loss (1,047.38)
Balance, end of the period/year 1,047
Preference Share Redemption Reserve 10.95 10
Revaluation reserve
Balance, beginning of the period/year 95.73 95
Add: Addition pursuant to revaluation of Land 205.61
Less: Reversal pursuant to sale of Land (75.50)
Balance, end of the period/year 225.84 95
Share premium account 0.29 0
Surplus/(Decit) in the Prot and Loss Account
Balance, beginning of the period/year 808.49 695
Add: Amount transferred from general reserves 1,047.38
Prot/(Loss) for the period/year (6,056.66) 112
Balance, end of the period/year (4,200.79) 808
(3,120.52) 2,806
NOTE 5 Non-Current Current
BORROWINGS As atMarch 31, 2012
As atDecember 31, 2010
As atMarch 31, 2012
As atDecember 31, 20
Loan from Holding company 13,000.00 18,507.91 1,204.40
13,000.00 18,507.91 1,204.40
The above amount includes
Unsecured borrowings 13,000.00 18,507.91 1,204.40
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NOTE 7TRADE PAYABLE
As atMarch 31, 2012
As atDecember 31, 20
Trade Payable
- Micro and Small Enterprises 1,431.76
- Others 1,467.08 1,340
Sundry Creditors for expenses 2,276.41 3,784
5,175.25 5,125
Trade payables includes `1431.76 Lacs due to small scale and ancillary undertakings to the extent such parties have been identifrom the available documents/information.
NOTE 8
OTHER LIABILITIES
Other current liabilities 372.99 524
Security deposits 15.38 19
Advances from customers 47.37 106
435.74 651
`In La
NOTE 6 LONG-TERM SHORT-TERM
PROVISIONS As atMarch 31, 2012
As atDecember 31, 2010
As atMarch 31, 2012
As atDecember 31, 20
Provision for gratuity 117.22 12.10 13.31
Provision for leave encashment 11.57 15117.22 12.10 24.88 15
NOTE 9FIXED ASSETS
Gross Block Depreciation and Amortisation Net Block
Particulars As atJan. 1, 2011 Additions
Deletions/
Adjustment
As atMar. 31, 2012
As atJan. 1, 2011
For theyear
DeletionsAs at
Mar. 31, 2012As at
Mar. 31, 2012As at
Dec. 31, 20
Intangible assets
Goodwill 17,944.13 17,944.13 224.00 224.00 17,720.13 17,720
Tangible assets
Freehold land 1,150.76 205.61 75.80 1,280.57 1,280.57 1,150
Building 1,080.20 31.01 1,049.19 251.66 39.83 11.73 279.76 769.43 828
Plant and machinery 8,428.98 15.33 36.93 8,407.38 2,969.59 621.72 13.71 3,577.60 4,829.78 5,459
Furniture and xture 239.11 20.81 30.34 229.58 96.88 30.04 5.58 121.34 108.24 142
Ofce equipments 1,043.17 19.87 141.61 921.43 647.39 72.19 45.14 674.44 246.99 395
Vehicle 196.97 73.67 123.30 65.66 16.23 20.20 61.69 61.61 131
Total 30,083.32 261.62 389.36 29,955.58 4,255.18 780.01 96.36 4,938.83 25,016.75 25,828
Previous period 29,941.68 187.77 46.13 30,083.32 3,662.66 603.39 10.89 4,255.18 25,828.14
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`In La
NOTE 10
NON-CURRENT INVESTMENTS
As at
March 31, 2012
As at
December 31, 20
Trade Investments (Unquoted)
Henkel SPIC Employees Co-operative Thrift and Credit Society Limited
2,000 (2010 - 2,000) equity shares of `100 (2010 - `100) each fully paid up 2.00 2Henkel Marketing India Limited*
825,550 (2010 - 825,550) equity shares of `10 (2010 - `10) each fully paid up 421.03 421
Capexil (Agencies) Ltd.
5 (2010 - 5) equity shares of `10,000 (2010 - `10,000) each fully paid up 0.05 0
Madras Industrial Cooperative Analytical Laboratory Limited
2 (2010 - 2) equity shares of `500 (2010 - `500) each fully paid up 0.01 0
Ambattur Industrial Estate Manufacturers Service Industrial Cooperative Society Ltd.
1 (2010 - 100) equity shares of `1 (2010 - `100) each fully paid up
423.09 423
Less: Provision for diminution in the value of investments 421.09 421
Total (A) 2.00 2
Investment in Government Securities (Unquoted)
3% Government of India conversion loan, 1946 0.01 0National Saving Certicates 0.30 0
(Pledged with Government authorities) 0.31 0
Less: Provision for diminution in the value of investments (0.01) (0.Total (B) 0.30 0
Total (A+B) 2.30 2
Aggregate amount of unquoted investments 2.30 2
*Refer note 2.1
NOTE 11
LOANS AND ADVANCES
Non-Current Current
As at
March 31, 2012
As at
December 31, 2010
As at
March 31, 2012
As at
December 31, 20
Unsecured, considered goodDeposits 564.33 545.64
Advances recoverable in cash or in kind orfor value to be received
172.59 156.31 61.48 97
Advance to suppliers 714.43 3,122
Balance with Govt. authorities 947.08 1,004
Staff loans 7.48
Advance Income Tax 36.79 21
Mat Credit 99.11 99
736.92 701.95 1,866.37 4,345
NOTE 12
OTHER ASSETS
Non-Current Current
Fixed Deposit with Bank (Refer note 15) 0.40
Other assets 26.77
0.40 26.77
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NOTE 15 Non-Current Current
CASH AND BANK BALANCES As at
March 31, 2012
As at
December 31, 2010
As at
March 31, 2012
As at
December 31, 20
Cash and cash equivalents
Cash in hand 0.27 0
Balance with banks - Current account 116.07 2
Other bank balances Deposits with original maturity for morethan 12 months
0.40 281.82 35
Amount disclosed under other assets(refer note 12)
(0.40)
398.16 38
`In L
NOTE 13
INVENTORIES
As at
March 31, 2012
As at
December 31, 20
Raw and packing materials (includes goods in transit - `Nil (2010 - `131.6) 1,235.85 2,024
Work-in-progress 90.16 77
Finished goods 2,114.94 2,691
Stores and spare parts 115.42 108
3,556.37 4,901
NOTE 14
TRADE RECEIVABLES
Unsecured
a) Debt outstanding for period exceeding six months
Considered doubtful 35.17 50
Less: Provision for doubtful debts (35.17) (50
b) Other debts
Considered good 3,679.38 9,747Considered doubtful 35
Less: Provision for doubtful debts (35
3,679.38 9,747
3,679.38 9,747
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`In L
NOTE 16
OTHER OPERATING INCOME
January 1, 2011 to
March 31, 2012
January 1, 2010
December 31, 20
(15 Months) (12 Months)
Other Operating Income 274.94 157
274.94 157
NOTE 17
OTHER INCOME
Interest on xed deposit 12.27 0
Foreign exchange uctuation gain (net) 92.46 102
Prot on sale of xed assets (net of loss) 58.32 278
163.05 381
NOTE 18
MATERIAL COSTS
Raw and packing materials consumed
Opening stock 2,024.20 2,291
Add: Cost of purchases (net) 8,518.41 13,580
10,542.61 15,872
Less: Closing stock 1,235.85 2,024
9,306.76 13,847
NOTE 19
(INCREASE)/ DECREASE IN INVENTORIES
(Increase)/ decrease in inventories
Closing stock
Finished goods 2,114.94 2,691
Work in progress 90.16 77
2,205.10 2,768
Opening stock
Finished goods 2,691.34 2,899
Work in progress 77.48 55
2,768.82 2,954
563.72 186
NOTE 20
EMPLOYEE BENEFITS EXPENSES
Salaries, wages and bonus 2,500.37 1,415
Contribution to provident and other funds 94.50 73
Gratuity 123.44 54
Staff welfare expenses 115.67 150
2,833.98 1,693
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`In L
NOTE 21
OTHER EXPENSES
January 1, 2011 to
March 31, 2012
(15 months)
January 1, 2010
December 31, 20
(12 months)
Conversion charges 172.09 253
Power and fuel expenses 350.79 394
Rent 467.33 399
Insurance 77.17 51
Repairs and maintenance
- Building 6.66 15
- Plant and machinery 53.01 123
- Others 36.53 66
Consumption of stores and spares 41.84 20
Research and development 0.95
Bank charges and commission 31.12 14
Printing and stationery 10.58 13
Communication costs 127.08 76
Legal and professional fees 525.75 884
Rates and taxes 234.60 210
Directors sitting fees 3.17 4
Vehicle maintenance 43.11
Donation 0.04
Loss on discarded of xed assets 3.49
Bad debt written off 7
Advertisement and publicity 423.79 2,219
Sales promotion and schemes 2,911.69 3,318
Freight, handling and forwarding charges 2,131.96 2,076
Travelling and conveyance 556.50 413
Brokerage on sales 369.68 389
Royalty 421.28 770
Miscellaneous expenses 416.98 401
9,417.19 12,125
NOTE 22
INTEREST AND FINANCE CHARGES
Interest expense 1,737.56 1,696
Other borrowing cost 220.60
1,958.16 1,696
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NOTE 23EMPLOYEE BENEFIT
As per Accounting Standard 15 (Revised 2005) Employee Benets the disclosures of employee benets as dened in the AccounStandard are given below:
`In La
January 1, 2011 toMarch 31, 2012
January 1, 2010December 31, 20
(15 Months) (12 Months)
Employers contribution to Provident Fund 94.50 73
As per the Companys leave policy all the leave entitlement needs to be utilised in the same calendar year. The leave balancesnot get encashed or carry forward to the next year and hence no actuarial liability has been considered as at the year end.
Gratuity:Reconciliation of opening and closing balances of dened benet plan:
As atMarch 31, 2012
As atDecember 31, 20
Opening Dened Benet obligation 160.82 148
Current service cost 25.51 21
Interest costs 16.69 11
Actuarial (gain)/loss 50.44 29
Benets paid (120.36) (51.
Closing Dened Benet obligation 133.10 160
Reconciliation of opening and closing balances of fair value of plan assets:
Ope