TCC A Report
TCC A Report
TCC A Report
CONTENTS
Page
Board of Directors
03
04
Notice to Shareholders
06
08
12
16
Profit and Loss Account for the year ended 31st March, 2010
17
18
24
Notes on Accounts
28
39
40
41
46
48
49
50
MAJOR PRODUCTS
Caustic Soda (Rayon Grade) Lye & Flakes
Liquid Chlorine
Hydrochloric Acid (Mercury Free)
Sodium Hypochlorite
Bankers
State Bank of Travancore
Board of Directors
Shri. K. S. Srinivas, I.A.S
Chairman
Auditors
M/s. Menon & Ayyar
Chartered Accountants
Iyyattil Road, Ernakulam
Kochi-682 011
Director
Shri. M. R. Karmachandran
Nominee of KSIDC
Cost Auditors
N. P. Gopalakrishnan & Co.
Cost Accountants
DD Vyapar Bhavan
Kadavanthra P. O.
Kochi-682 020
Legal Advisors
M/s. Menon & Pai
Advocates, Ernakulam
Secretary
2008 2007- 2006- 2005- 2004- 2003- 2002- 20012009 2008 2007 2006 2005 2004 2003 2002
in lakhs
20002001
8869
9123
7421
9031
Other Income
686
313
1674
219
158
450
492
181
553
9253
167
Stock: Increase/Decrease
332
-36
199
13
-81
-143
-60
333
-257
Total Income
9238
9472
7542
9917
9163
Material Consumed
1603
2043
1268
1648
1594
1031
1161
990
1231
1501
6186
6374
5668
6702
5675
4663
5140
4252
6093
5772
Employee Cost
2455
2333
2634
2369
1678
2288
1556
1566
1609
1585
145
76
71
78
75
59
58
49
60
76
49
38
35
49
12
135
126
31
93
144
9078
Other Expenditure
Total Expenditure
8177
8041
6888
9086
Gross Margin
1332
1476
1392
1893
2014
1061
1431
654
831
85
660
790
289
964
606
657
687
669
677
816
Depreciation
937
969
1012
920
827
1233
643
603
820
556
-265
-283
91
581
-831
101
-618
-667
-1284
15
10
-47
53
-74
-250
-273
44
62
581
-829
101
-692
-667
-1284
Current Tax
-1
48
-1
11
10
-2
-249
-281
28
49
523
-829
83
-692
-667
-1282
Net Block
7222
7783
8558
9407
7998
6399
7061
7646
7290
7649
Capital Work-in-Progress
230
41
11
942
1915
25
14
197
207
4007
3636
3457
3717
3576
2589
4268
3325
4189
4200
4898
4701
5474
5583
5859
5064
4889
4498
7847
7232
Accumulated Loss
1315
1066
786
813
862
1385
555
639
3324
2658
Total Utilisation
7878
7827
7340
8357
7519
7224
7020
7126
7153
7482
-891
-621
-1173 -3658
-3032
Investments
in lakhs
2009
2010
2008 2007- 2006- 2005- 2004- 2003- 2002- 20012009 2008 2007 2006 2005 2004 2003 2002
20002001
4267
4008
4030
4574
4856
5088
4889
4859
5013
4596
982
979
807
588
144
46
2131
2131
2131
2131
2131
2131
2131
2131
2131
2131
Interest Accrued
125
338
1064
388
136
372
372
372
709
Total Sources
7878
7828
7340
8357
7519
7224
7020
7126
7153
7482
Networth
(SC+Reserves-Acc.loss)
816
1065
1345
1318
1269
746
1576
1492
-1193
-527
Capital Employed
(Net Block+WC)
6330
6718
6541
7541
5715
3924
6440
6473
3632
4617
Finished Goods
590
247
295
308
109
96
177
320
380
47
19
29
17
367
535
244
248
280
82
182
196
261
325
Work-in-Progress
Raw Materials
Materials in Transit
55
90
62
64
161
65
16
601
603
400
425
413
396
353
345
520
427
Sundry Debtors
1130
974
1229
1425
1099
955
1176
1218
1067
1398
59
102
115
139
124
165
710
202
416
497
1186
1056
1095
1108
1386
824
1046
915
1369
1309
84
113
148
163
531
25
31
Total
4007
3636
3457
3717
3576
2589
4268
3325
4189
4200
Cash Profit/(Loss)
688
689
1040
969
1350
404
726
(89)
153
(726)
Installed Capacity
Caustic Soda Lye & Flakes
57750 57750 57750 55520 48370 52250 74250 74250 66000 66000
By-products:Chlorine
51200 51200 51200 49190 42857 46295 65785 65785 58476 58476
Production
Caustic Soda Lye &Flakes
48923 47519 42298 57487 51004 47201 55285 47263 54141 58631
By-products:Chlorine
43745 42599 36423 50520 45190 41820 48983 41875 47969 51947
88.83
By-products:Chlorine
85.44
83.2
88.83
Excise Duty
872
1477
1466
1927
1706
1333
1318
1070
1353
1342
Sales Tax
370
418
388
459
431
422
405
335
411
400
48
Government Levies
NOTICE TO SHAREHOLDERS
Notice is hereby given that the Fifty-Eighth
Annual General Meeting of the Members of The
Travancore-Cochin Chemicals Limited will be
held on Thursday, the 30th September, 2010, at 11.00
AM at the Registered Office of the Company at
Eloor, Udyogamandal -683 501, Kerala to transact
the following:-
ORDINARY BUSINESS
1. To receive, consider and adopt the Directors
Report, the Audited Balance Sheet as at 31st
March, 2010 and the Profit & Loss Account
for the year ended 31 st March, 2010 and
Auditors Report thereon.
2. To fix the remuneration of Auditors, and in
this connection to pass with or without
modifications, the following resolution as an
ORDINARY RESOLUTION:
RESOLVED THAT pursuant to the provisions
of Section 619 read with Section 224(8)(aa) and
other applicable provisions, if any of the
Companies Act, 1956, the Board of Directors of
the Company be and is hereby authorized to fix
the remuneration plus traveling and other outof-pocket expenses incurred by the Statutory
Auditors of the Company appointed by the
Comptroller and Auditor General of India for
the year 2010-11.
SPECIAL BUSINESS
4. To consider and if thought fit, to pass with or
without modifications, the following
resolution as an ORDINARY RESOLUTION:RESOLVED THAT Shri. N.I. Paulose, who
was appointed by the Board of Directors
pursuant to the provisions of Section 260 of
the Companies Act, 1956 and Article 77 of the
Articles of Association of the Company, as an
Item No.5
Consequent upon the advice of the Government
of Kerala, your Directors appointed Shri. R.
Madhusoodhanan Nair as a Director to fill the
casual vacancy caused by resignation, on 26th
June, 2010. In accordance with Section 262 of
the Companies Act, 1956 and Article 77 of the
Articles of Association of the Company, Shri. R.
Madhusoodhanan Nair will hold office only up
to the date of the Fifty Eighth Annual General
Udyogamandal
28. 08. 2010
Note: A member entitled to attend and vote at a meeting is entitled to appoint a proxy to attend and vote
instead of himself and a proxy need not be a member. The form of proxy should be deposited at
the registered office of the Company not less than 48 hours before the time of holding the meeting.
SUMMARY OF PERFORMANCE
(` in lakhs)
2009-2010 2008-2009
687
695
Depreciation
937
969
(250)
(274)
(249)
(281)
(3527)
(3808)
(4057)
MARKETING
The ECU realization for the products during
2009-2010 shows declining trend from April
2009. Chlorine and Hydrochloric Acid prices
showed slight improvement from March 2010.
The average ECU realization for the year was
` 22968 per MT.
The Company has sold 44549MT of Caustic Soda
(in Lye and flakes forms), 12838MT of Liquid
Chlorine, 93068MT of Hydrochloric Acid
(Commercial Grade) and achieved a turnover of
` 116.18 crores.
PRODUCTION
The Gross Production of Caustic Soda for the year
2009-10 was 48922.535MT out of which
38701.213MT was produced in 125 TPD AGC
Plant, 5353.098MT in UHDE-I Plant and
4868.224MT UHDE-II Plant. The Capacity
Utilization was 84.71% only, mainly due to
PROJECTS
(1) 50 TPD Caustic Soda Capacity
Augmentation Project
The Companys proposal for the
enhancement of Caustic Soda capacity
DIRECTORS
PERSONNEL RELATIONS
Industrial Relations remained cordial and
peaceful. The period of the Long Term wage
settlement for workmen expired on 31.03.2010.
All the existing vacancies up to April 2010
among the worker category were filled up by
recruiting suitable candidates from Employment
Exchange. A referendum was held among the
employees and three unions qualified and got
recognised.
AUDITORS
10
AUDIT COMMITIEE
As per the provisions of Section 292A of the
Companies Act 1956, the Board of Directors has
constituted an Audit Committee. Presently, the
Audit Committee comprises of three Directors,
namely Shri. M. R Karmachandran, Shri. R.
Madhusoodhanan Nair and Shri. J.
Vijayamohanan. Shri. M. R Karmachandran is
the Chairman of the Audit Committee. Three
Audit Committee meetings were held during the
year.
DIRECTORS RESPONSIBILITY
STATEMENT:
ACKNOWLEDGEMENT:
Udyogamandal
28. 08. 2010
11
tic Soda Plant etc. with a total potential saving of 5.11 lakhs Kwh per
annum and 352.174MT of Furnace Oil
per annum.
Twelve identified energy saving proposals were implemented. These identified measures include application of
variable frequency drives, downsizing
of pumps, replacement of lower efficiency motors with higher efficiency
class motors, installation of LT capacitor bank, implementation of Energy
Monitoring Systems, increased utilization of Hydrogen in Continuous Caus-
12
Previous Year
2008-2009
1305.52
1283.63
4529.83
4804.91
Rate/Unit (`.)
3.47
3.74
b) Own Generation
Nil
Nil
NA
NA
2935.86
3504.78
699.44
849.04
23824
24225.00
1. Electricity
a) Purchased
Units
(Lakhs Kwh)
(MT)
(Kwh)
2669
2701
Furnace Oil
(Litres)
60.01
73.75
46203
44628
Coal
NA
NA
Others
NA
NA
13
3.
a) Imported Membrane Cell Technology has been adopted for the production of Caustic Soda. 25 TPD
Membrane Plant UHDE-II is the third
stage of conversion of Mercury Cell
Plant to Membrane Cell Plant.
Nil
2.
3.
4.
Expenditure on R & D
d) N A
Nil
TECHNOLOGY ABSORPTION,
ADOPTION AND INNOVATION
1.
Nil
2.
Udyogamandal
28. 08. 2010
Nil
14
Thiruvananthapuram
1st September 2010
15
Schedule
As at
As at
31st March 2010
31 st March 2009
` in lakhs
` in lakhs
` in lakhs
SOURCES OF FUNDS
Shareholders Funds:
Share Capital
Reserves & Surplus
1
2
2,131.19
0.00
2,131.19
2,131.19
0.00
Loan Funds:
Secured Loans
Unsecured Loans
3
4
5,248.91
497.45
5,746.36
5,267.23
429.44
7,877.55
7,827.86
TOTAL
APPLICATION OF FUNDS
Fixed Assets:
Gross Block
Less: Depreciation
Net Block
CAPITAL WORK-IN-PROGRESS
Investments
Current Assets, Loans and Advances
Less: Current Liabilities & Provisions
Net Current Assets
Profit & Loss Account
5
16,485.75
9,264.12
6
7
8
9
7,827.86
4,006.67
4,898.03
10
21
7,877.55
7,221.63
229.93
2.30
TOTAL
NOTES ON ACCOUNTS
(891.36)
1,315.05
16,190.32
8,407.28
7,783.04
41.32
2.30
3,636.45
4,701.13
(1,064.68)
1,065.88
Sd/SUSAN ABRAHAM
Company Secretary
Udyogamandal
28 th August, 2010
16
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2010
Current
Year
` in lakhs
Previous
Year
` in lakhs
11,617.63
869.79
10,747.84
4.61
685.60
11,438.05
13,537.10
1,475.85
12,061.25
1.40
313.46
12,376.11
1,601.53
1.38
6,186.25
2,454.88
144.93
49.28
660.01
936.94
12,035.20
(332.81)
11,702.39
(264.34)
14.61
(249.73)
2,035.24
7.64
6,374.41
2,333.12
76.33
37.72
789.87
969.47
12,623.80
35.62
12,659.42
(283.31)
9.79
(273.52)
0.00
(0.56)
(1.53)
8.56
(249.17)
(3,808.32)
(4,057.49)
(1.17)
(280.55)
(3,527.77)
(3,808.32)
(1.32)
Schedule
INCOME
Sales (Gross)
Less: Excise Duty
Net Sales
Trading Sales
Other Income
11
12
TOTAL
EXPENDITURE
Raw Material Consumed
Trading Purchase
Power, Fuel, Stores and Repairs
Employee Cost
Selling & Administration Expenses
Other Expenditure and Losses
Interest and Financial Charges
Depreciation
13
14
15
16
17
18
(Increase)/Decrease in Stocks
TOTAL
Profit/(Loss) Before Prior Period Items
Prior Period Items (Net)
Profit/(Loss) Before Taxation
Provision for Taxation
Income Tax
Fringe Benefit Tax
19
20
Sd/SUSAN ABRAHAM
Company Secretary
Udyogamandal
28 th August, 2010
17
As at
31 March 2009
` in lakhs
st
st
SCHEDULE 1
SHARE CAPITAL
Authorised:
3,25,00,000 Equity Shares of ` 10 each
3,250.00
1,750.00
5,000.00
5,000.00
2,131.19
2,131.19
2,131.19
2,131.19
2,131.19
2,131.19
2,742.44
2,742.44
2,742.44
2,742.44
0.00
0.00
Issued:
2,13,11,900 (Previous year 2,13,11,900)
Equity Shares of ` 10 each**
TOTAL
**(Out of these 65,97,500 shares are allotted
as fully paid bonus shares by capitalisation
of general reserve during the year 1993-94)
SCHEDULE 2
RESERVES AND SURPLUS
TOTAL
18
As at
31 st March 2009
` in lakhs
SCHEDULE 3
SECURED LOANS
1) Term Loan from Financial Institutions:
Foreign Currency Loan from SBT
0.00
20.49
0.00
3,987.64
4,266.50
4,266.50
0.00
0.00
279.98
982.41
979.12
5,248.91
5,267.23
372.05
372.05
125.40
57.39
497.45
429.44
19
SCHEDULE 5
FIXED ASSETS
` in lakhs
DEPRECIATION
GROSS BLOCK
Freehold Land
Sales
Written Written Withdrawn
As
Total
As
As
on assets
&
off
off
on
upto
on
on
sold/
Adjust- 31-3-2010 upto
during
31-3-2010 31-3-2010 31-3-2009
ments
31-3-2009 the year adjustments
171.32
0.00
7.77
163.55
0.00
0.00
0.00
0.00
163.55
171.32
1,978.29
0.40
30.87
1,947.82
1,121.15
78.74
19.23
1,180.66
767.16
857.14
2.50
0.00
0.00
2.50
2.37
0.00
0.00
2.37
0.13
0.13
13,337.22
328.29
33.02
13,632.49
6,736.39
810.98
33.02
7,514.35
6,118.14
6,600.83
10.14
0.00
0.00
10.14
9.63
0.00
0.00
9.63
0.51
0.51
Service Equipments
518.80
65.39
28.51
555.68
397.22
37.91
27.09
408.04
147.64
121.58
172.05
2.33
0.81
173.57
140.52
9.31
0.76
149.07
24.50
31.53
TOTAL
16,190.32
396.41
100.98
16,485.75
8,407.28
936.94
80.10
9,264.12
7,221.63
7,783.04
16,173.02
233.12
215.82
16,190.32
7,614.92
969.47
177.11
8,407.28
7,783.04 8,558.10
Buildings
20
20
PARTICULARS
Additions
As
during
on
the
31-3-2009
year
NET BLOCK
As at
31st March 2009
` in lakhs
SCHEDULE 6
CAPITAL
WORK-IN-PROGRESS
Horizontal Saturator
202.69
29.28
27.24
12.04
229.93
41.32
0.05
0.05
0.25
0.25
2.00
2.00
2.30
2.30
600.67
367.35
54.77
18.94
589.86
1,631.59
633.95
31.02
602.93
535.30
89.99
29.43
246.56
1,504.21
Others
TOTAL
SCHEDULE 7
INVESTMENTS
Trade-Long Term, Not Quoted
5 shares of ` 1000/- each fully paid up in
Capexil Agencies Ltd.
Non Trade-Long Term, Not Quoted
TOTAL
SCHEDULE 8
CURRENT ASSETS, LOANS AND ADVANCES
A) Inventories
(As taken, valued and certified by the
Managing Director)
Stores and Spares in Stock
Less: Provision for Stores Obsolescence
631.69
31.02
21
As at
31st March 2009
` in lakhs
61.57
153.57
1,068.22
1,283.36
153.57
1,129.79
46.73
149.57
927.38
1,123.68
149.57
974.11
2.23
1.92
5.71
4.28
46.50
0.11
30.84
25.12
44.48
0.11
0.02
0.02
56.62
58.85
48.76
24.78
92.63
91.19
479.77
14.77
568.08
165.76
15.42
365.00
14.77
15.42
349.58
553.31
22
100.57
102.49
10
LOSS ACCOUNT
Account
Reserve as per contra
23
As at
31st March 2009
` in lakhs
221.00
20.47
0.64
362.21
28.81
0.00
1,186.44
4,006.67
246.85
40.44
2.02
383.64
32.84
0.27
1,055.64
3,636.45
3,354.72
163.29
322.14
30.80
3,870.95
2,953.53
374.42
339.73
134.87
3,802.55
0.00
457.24
493.40
76.44
1,027.08
4,898.03
8.56
446.83
369.19
74.00
898.58
4,701.13
4,057.49
2,742.44
1,315.05
3,808.32
2,742.44
1,065.88
SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2010
Quantity in MT
Value
Current
Year
Previous
Year
Current Year
` in lakhs
Previous Year
` in lakhs
Caustic Soda
44,549
45,450
8,754.60
9,484.75
Chlorine Products
42,801
40,917
1,993.24
2,576.50
10,747.84
12,061.25
88.05
47.61
162.01
162.77
Miscellaneous Receipts
64.48
47.93
Interest
29.44
28.88
336.21
0.69
0.00
0.25
0.00
2.53
0.00
17.03
5.41
5.77
685.60
313.46
1,448.81
1,773.31
152.72
261.93
1,601.53
2,035.24
SCHEDULE 11
SALES
TOTAL
SCHEDULE 12
OTHER INCOME
Other Sales
Rent
TOTAL
SCHEDULE 13
RAW MATERIALS CONSUMED
Common Salt
82,688
81,887
Other Chemicals
TOTAL
24
0.00
4.56
5,410.78
5,700.26
Water Consumed
10.06
0.27
68.44
50.91
Factory Expenses
17.62
11.20
Factory Insurance
25.12
23.02
654.23
584.19
6,186.25
6,374.41
1,819.72
1,714.83
344.56
334.63
Welfare Expenses
290.60
283.66
2,454.88
2,333.12
TOTAL
SCHEDULE 16
SELLING & ADMINISTRATION EXPENSES
Lighting
3.09
4.77
68.33
2.56
7.30
7.66
14.69
16.33
8.66
10.49
10.03
0.00
General Expenses
27.13
23.35
0.06
0.02
25
Current Year
` in lakhs
Value
Current Year
Previous Year
` in lakhs
` in lakhs
Remuneration to Auditors:
Audit Fees
0.90
0.90
Certification Fee
0.06
0.05
Expenses
0.25
1.21
0.25
0.28
0.13
1.93
1.86
0.38
2.01
Exchange Loss
1.84
5.95
144.93
76.33
1.47
37.69
10.54
0.03
4.00
0.00
33.27
0.00
49.28
37.72
467.09
595.91
Other Interests
163.44
161.65
Bank Charges
29.21
29.53
0.27
2.78
TOTAL
660.01
789.87
TOTAL
SCHEDULE 17
OTHER EXPENDITURE AND LOSSES
Assets scrapped
Bad debts and claims written off
Provision for doubtful debts
Excise Duty Paid (Net)
TOTAL
SCHEDULE 18
INTEREST & FINANCIAL CHARGES
26
Value
Current Year
Previous Year
` in lakhs
` in lakhs
SCHEDULE 19
INCREASE/DECREASE IN STOCKS & WORK-IN-PROGRESS
Opening Stock of Finished Goods & Work-in-Progress
275.99
311.61
608.80
275.99
-332.81
35.62
TOTAL
SCHEDULE 20
PRIOR PERIOD ITEMS (NET)
Income/Credit
Interest
Inspection of DM Water units
Service tax on transportation
Excise Duty on raw materials
Factory General expenses
TOTAL (A)
Computer/Weigh Bridge Service Charges
Repairs & Maintenance
Safety Manual
Transport Charges
Testing Charges
Analysis Charges for Pollution
Book Binding Charges
Civil Works
Staff Training Expenses
Water Cess
TOTAL (B)
0.00
0.25
3.25
0.91
17.22
21.63
0.00
0.41
0.00
0.70
0.00
3.06
0.00
0.37
0.09
2.39
7.02
Net (A-B)
11.60
0.00
0.17
0.00
0.00
11.77
0.27
0.84
0.10
0.40
0.13
0.16
0.08
0.00
0.00
0.00
1.98
14.61
27
9.79
NOTES ON ACCOUNTS
SCHEDULE 21
1 . ACCOUNTING POLICIES
1. Accounting Convention
All revenues, costs, assets and liabilities are accounted for on accrual basis except
duty claims and insurance claims which are accounted for on receipt basis.
customs
2. Sales
Sales (gross) exclude Sales Tax.
3. Retirement Benefits
a) The Companys liability towards gratuity to employees is covered by a Group Gratuity
Scheme with Life Insurance Corporation of India.
b) Leave encashment on cessation of employment is accounted on the basis of actuarial
valuation.
4. Inventories
a) Stock-in-Trade
Caustic Soda Lye, Flakes and by-products are valued at lower of cost or net realisable
value. Work-in-Progress is valued at cost.
b) Raw materials, Packing materials, Fuel Oil and Stores and Spares are valued at cost. Cost
means the Weighted Average Cost.
5. Investments
All Investments are of long term nature and are carried at cost.
6. Fixed Assets
All Fixed Assets are carried at cost less depreciation. Interest on loan during the period of
construction is added to the cost of Fixed Asset.
28
29
30
3.
4.
Balances of Sundry Debtors, Sundry Creditors and Advances are subject to confirmation.
5.
In the opinion of the Board, the Current Assets, Loans and Advances have the value, on realisation, in
the ordinary course of business at least equal to the amount at which they are stated.
6.
The Company has opted for Amnesty Scheme for the years 1980-81 to 2004-05 introduced by
the Government of Kerala for PSUs as per notification No. 9948/G2/09-10 Dt. 17/04/2009 for
one time settlement of pending Sales Tax cases. Accordingly the Company has paid ` 65.37
lakhs (including the payments made during earlier years) against full settlement of pending cases
and this amount is charged to Profit & Loss Account during the year under the head Rates &
Taxes.
7.
Income Tax appeals for the assessment years 1992-93, 1993-94, 1994-95, 1996-97, 1997-98,
1998-99, 2001-02 and assessment for the assessment years 2008-09 and 2009-10 are pending.
8.
Stock of stores and spares include stock of packing materials ` 16.45 lakhs and stock of Fuel
Oil ` 25.70 lakhs.
31
Individual items in excess of ` 5000/- each only have been disclosed under the head prior period
Income/Expenditure.
10. Margin on Letter of Credit and Bank Guarantees have been deposited with State Bank of
Travancore.
11. Loan from Kerala Financial Corporation and working capital loan from State Bank of Travancore
are secured by first mortgage on pari-passu basis in favour of the lender of all the immovable
properties, both present and future and first charge on pari-passu basis by way of hypothecation
in favour of the lender, of all the movables (save and except book debts) including movable
machinery, machinery spares, tools and accessories present and future. In addition to this,
working capital loan is also secured by hypothecation of raw materials, general stores, packing
materials, finished goods and book debts.
12. Micro & Small Scale Business Entities:
There are no Micro and Small Enterprises, to whom the company owes dues, which are
outstanding for more than 45 days as at 31 st March 2010. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information available
with the company.
13. Claims receivable considered good includes ` 44.38 lakhs being the cenvat claims taken from
the purchase of raw material and capital goods.
14. Credit to be availed on the KVAT on Capital goods: ` 0.86 lakhs.
15. As directed by the Govt. of Kerala vide G.O. No. (MS) No. 165/98/ID dated Thiruvananthapuram,
24.11.1998, the Company has leased out 20 acres of land to M/s. BSES Kerala Power Ltd. for 15 years.
The lease deed has been registered on 23.07.1999.
16. Deferred Tax: The Company has unabsorbed depreciation and carried forward business losses
available for set off against taxable income to be generated in future years as per Income Tax
Act, 1961. However, in consideration of the accumulated loss of the company and in the
absence of virtual certainty regarding generation of future taxable income, no deferred tax
asset has been recognised for the year as a measure of prudence, in accordance with the
Accounting Standard 22 on Accounting for Taxes on Income issued by the Institute of
Chartered Accountants of India.
32
33
b)
1.
Particulars
Defined Benefit obligation
at beginning of the year
Current Service Cost
Interest Cost
Actuarial (gain)/loss
Benefits paid
Defined Benefit obligation
at year end
2..
(` in lakhs)
Gratuity
Leave Encashment
(Funded)
(Unfunded)
2009-10
2008-09
2009-10
2008-09
746.43
33.84
61.06
88.74
(203.11)
709.19
34.71
58.31
103.65
(159.25)
446.83
168.55
42.49
(57.77)
(142.86)
393.50
177.20
38.57
(108.06)
(54.38)
726.96
746.43
457.24
446.83
34
(` in lakhs)
Gratuity (Funded)
2009-10
2008-09
377.24
490.82
30.18
39.27
(5.31)
0.12
34.56
6.28
(203.11)
(159.25)
233.56
377.24
4.
2009-10
2008-09
2009-10
2008-09
233.56
377.24
Nil
Nil
726.96
746.43
457.24
446.83
493.40
369.19
457.24
446.83
Particulars
Current Service Cost
Interest Cost
Expected return on Plan Assets
Actuarial (gain)/loss
Net Cost
5.
Leave Encashment
(Unfunded)
2009-10
2008-09
2009-10
2008-09
33.84
61.06
(30.18)
94.05
158.77
34.71
58.13
(39.27)
103.53
157.10
168.55
42.49
Nil
(57.77)
153.27
177.20
38.57
Nil
(108.06)
107.71
Actuarial Assumptions
(` in lakhs)
Gratuity
Leave Encashment
(Funded)
(Unfunded)
1994-96
1994-96
(Ultimate)
(Ultimate)
Particulars
Mortality Table (Indian Lives Mortality)
Discount rate (per annum)
Expected return on plan assets (per annum)
Rate of escalation in salary (per annum)
35
8%
8%
5%
8%
5%
Production
Licensed
M. T.
2009-10
Installed
M. T.
2008-09
Installed
M. T.
2009-10
M. T.
2008-09
M. T.
85,800
57,750
57,750
48,923
47,519
76,019
51,200
51,200
43,745
42,599
Caustic Soda
By-products of
Caustic Soda:
Chlorine
23. a)
Closing Stock as on
31-03-2010
Quantity
Value
M.T.
` in lakhs
1026
(1578)
220
(287)
2969
(1026)
574
(220)
649
(362)
27
(25)
344
(649)
16
(27)
Opening
Stock
Purchase
Sales
Closing
Stock
2009-10
MT
Nil
Value
Nil
MT
576.34
Value
1.38
MT
576.34
Value
4.61
MT
Nil
Value
Nil
2008-09
Nil
Nil
521.39
7.64
521.39
1.04
Nil
Nil
36
24.
Current Year
` in lakhs
Previous Year
` in lakhs
Nil
Nil
Nil
Nil
Current Year
(` in lakhs)
Previous Year
( ` in lakhs)
13.17
0.17
0.10
13.44
9.86
0.79
0.09
10.74
Current Year
(` in lakhs)
0.85
0.49
7.33
8.67
Previous Year
( ` in lakhs)
1.46
0.39
8.64
10.49
Managing Director
Directors
Staff
Total
27. Value of imports calculated on CIF basis during the period in respect of:
Current Year
(` in lakhs)
Previous Year
( ` in lakhs)
Nil
Nil
111.97
319.52
Capital Goods
65.24
27.55
37
Professional charges
Other matters
Current Year
(` in lakhs)
Previous Year
( ` in lakhs)
Nil
Nil
Nil
Nil
29. Value of all Raw Materials, Stores and Spares and Components consumed:
Current Year
Value
%
(` in lakhs)
186.53
8.01
2141.28
91.99
2327.81
100
Imported
Indigenous
Total
Previous Year
Value
%
( ` in lakhs)
165.76
6.20
2509.84
93.80
2675.60
100
30. Earnings in Foreign Exchange on account of Export and Sales for Export
38
Current Year
(` in lakhs)
Previous Year
( ` in lakhs)
Nil
Nil
31-03-2010
31-03-2009
` (249.17 lakhs)
` (280.55 lakhs)
21311900
21311900
-1.17
-1.32
Registration Details
Registration No.
Balance Sheet Date
U24299KL1951SGC001237
31-3-2010
State Code
09
Nil
Nil
(89136)
131505
Misc. Expenditure
1168778
(24917)
Nil
V . Generic Names of Three Principal Products/Services of Company (as per monetary terms)
Item Code No. (ITC Code)
Product Description
2815.12
Caustic Soda
2801.19
Chlorine
For and on behalf of the Board of Directors
Sd/Sd/V. MURALEEDHARAN NAIR R.MADHUSOODHANAN NAIR
Director
Managing Director
Sd/JIJU FRANCIS
Deputy Financial Controller
Sd/SUSAN ABRAHAM
Company Secretary
Udyogamandal
28 th August, 2010
39
2008-09
-249.74
-273.52
936.94
660.01
1.47
29.44
336.21
983.03
969.47
789.87
37.69
28.88
0.69
1493.94
-155.69
-130.80
-127.38
300.97
0.57
870.70
255.03
47.34
-485.94
-808.06
-7.03
495.28
-585.02
355.62
29.44
-199.96
-263.87
1.71
28.88
-233.28
258.38
3.29
-976.05
-714.38
-43.64
102.49
58.85
-21.75
172.54
-425.56
-274.77
-12.77
115.26
102.49
B.
Sd/SUSAN ABRAHAM
Company Secretary
Udyogamandal
28 th August, 2010
40
To
The Members of
The Travancore-Cochin Chemicals Limited
41
iii) in the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
For MENON & AYYAR
Chartered Accountants
(Firm Regn. No. 0020S8S)
Sd/MOHANAN KUTTICKAT
Ernakulam
1st September, 2010
42
Partner
(Membership No. 15842)
4.
In our opinion and according to the information and explanations given to us, the
internal control procedures for the purchase of inventories and fixed assets and
for the sale of goods and services, are
generally adequate commensurate with the
size of the company and the nature of its
business. During the course of our audit,
we have not observed any continuing
failure to correct major weakness in internal controls.
5.
b) According to the information and explanations given to us, the physical verification of major items of fixed assets was
carried out by the management during the
year and no material discrepancies were
noticed on such verification.
c) During the year the company has not
disposed of substantial part of its fixed
assets which has effect on the Company
as a going concern.
2.
6.
43
8.
9.
Sl.
Nature of Dues
No.
1. Excise Duty
Amount involved
(` in lakhs)
1.85
15.88
35.57
Forum where
dispute is pending
With Deputy Commissioner (Appeals)
With Commissioner (Appeals)
With CESTAT
2.
Income Tax
144.90
10.81
3.
Service Tax
115.39
44
18. According to the information and explanations given to us, the Company has not
made any preferential allotment of shares
to parties and companies covered in the
register maintained under section 301 of
the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
For
Sd/Ernakulam
1st September, 2010
45
MOHANAN KUTTICKAT
Partner
(Membership No. 15842)
standing of the financial statements and the related Audit Report issued by the Statutory
Auditors.
46
A. COMMENTS ON PROFITABILITY
Profit and loss account - Loss for the year ` 249.17 lakh
1.
This includes ` 324.06 lakh being profit on sale of land and structures, the sale deed of
which was executed only on 15 July 2010. The accounting of the transaction in the current
year has resulted in understatement of loss for the year by ` 324.06 lakh with corresponding
understatement of Fixed Assets by ` 18.64 lakh (net) and overstatement of current assets by `
342.70 lakh.
2.
Loss for the year is understated by ` 35.07 lakh due to incorrect valuation of closing stock of
Caustic Soda flakes by adopting price higher than what was actually realized. Valuation of
closing stock of raw materials was also not in accordance with the provisions of Accounting
Standard 2-Valuation of Inventories.
47
GOVERNMENT OF KERALA
No. 82400/PU.D3/2010/Fin.
The accumulated loss of the company is ` 4057 lakhs, which is more than 50%
of its networth.
2)
The company has been in loss during the year evenafter the sale of assets to the
tune of ` 336.21 lakhs and the conversion of loan from KIRFB to KFC resulted
in the reduction of interest and Bank charges, compared to the previous year of
2008-09.
3)
The management should take initiatives to explore the possibilities of new export
markets for products and services by strengthening the Research and Development
wing by absorbing new technologies and bringing diversification of activities.
4)
Sharp increase in salary expenses to the tune of ` 105 lakhs against the previous
year, does not seem commensurate with expansion of business opportunities.
5)
The company should take effective measures to settle the income tax appeals &
assessment and the statutory dues pending before the Court/Tribunals.
6)
48
Comments on Profitability
1.
The Government of Kerala has vide its order G.O. (MS) No.113/2010 RD.dt.24/03/2010 has accorded
sanction to transfer the land to NHAI for construction of the Vallarpadom ICTT connectivity road
and to receive the compensation by the company. Even though the registration of sale deed was
executed only on 15.07.2010, the compensation was accrued in the year in which the compensation
package was determined as per the DLPC package and eligibility of the company established
which is in the year 2009-10. The Company accounted this amount of compensation as per the
legal advice and with the consent of the Board of Directors and hence no understatement of loss of
` 324.06 lakhs and understatement of fixed assets of ` 18.64 lakhs and overstatement of current
assets of ` 342.70 lakhs.
2.
As per the accounting policy of the company, stock in trade is valued at lower of the cost or net
realisable value. Accordingly the stock in trade is to be valued at lower of the cost or sale value as
at the year end and not on the basis actual amount realised on subsequent sales. The accounting
standard 2 defines the net realisable value as net realisable value is the estimated selling price in
the ordinary course of business less the estimated costs of completion and the estimated costs
necessary to make the sales. As such the valuation was correctly done. This method was
consistently followed during previous years also. Earlier, the company used to value the stock in
trade at lower of cost or average sales realisation of the financial year. Subsequently as per the
direction of the then AGS audit, we changed the valuation to lower of average cost of production
or sale value in the month of April next year. This policy is being continuously followed since then
and hence there is no understatement of loss.
Sd/K. S. SRINIVAS, I.A.S
CHAIRMAN
Thiruvananthapuram
21.12.2010
49
The accumulated loss of the Company is ` 1315 lakhs and not ` 4057 lakhs as mentioned in the comments after
adjusting the earlier years surplus and which is more than 50% of the net worth.
2.
The Company is taking all efforts to increase the profitability and thereby improve the net worth. The Company was
unable to make profit during the year 2009-10 on account of power cut imposed by KSEB and power surcharge resulting
in reduced capacity utilization. The fixed overheads of the Company are huge and the Company has to produce at 100
% capacity in order to generate profits.
3.
The Management is taking all the efforts to increase profitability including exploring new export markets. The
Company is planning to incur an amount of ` 5 crores in the current financial year in order to make the plant energy
efficient and to reduce the cost of power which constitutes 50% of cost of production.
4.
The increase in employee cost is due to the increase in dearness allowance and effect of revision in salary.
5.
The income tax assessments are pending only for the assessment years 2008-09 to 2010-11 and income tax appeals are
pending for seven years which is under various stages of the process.
6.
The cash flow position of the Company is not sufficient to repay the government loan and interest on account of the
above reasons. The loan will be repaid once the cash flow improves.
Sd/K. S. SRINIVAS, I.A.S
CHAIRMAN
Thiruvananthapuram
21.12.2010
50