Annual Report 2006 - Clariant

NotesSchedule 19Notes on the Balance Sheet and Profit and Loss Account for the nine months period ended 31st December, 20061. (a) In accordance with the Scheme of Amalgamation (‘the Scheme’) of erstwhile Clariant (India) Limited, Vanavil Dyes and Chemicals Limited,BTP India Private Limited and Kundalika Investments Limited (herein after referred to as the “Transferor Companies”) with the Company asapproved by the members at a Court convened Extra Ordinary General Meeting held on 8th December, 2005 and subsequently sanctionedby the Honourable High Court of Judicature at Madras on 22nd February, 2006 and Honourable High Court of Judicature at Bombay on24th February, 2006 which was modified vide order dated 17th March, 2006, the entire business and the whole of the undertaking of theTransferor Companies being all its assets and properties and all its debts and liabilities as defined in the Scheme have been transferred toand vested in the Company retrospectively with effect from 1st April, 2005. The Scheme had accordingly been given effect to in the previousaccounting year.(b)The Board of Directors in their meeting held on 14th September, 2006 had decided to change the accounting year from financial yearApril-March to calendar year January-December. Accordingly, the Company has closed its accounting year for a period of 9 months ended31st December, 2006.In view of the above, the figures of current reporting period of 9 months ended 31st December, 2006 are not strictly comparable with thefigures relating to previous reporting period of 12 months ended 31st March, 2006.2. Segment Information for the nine months period ended 31st December, 2006 (As required by Accounting Standard (AS)-17 ‘‘SegmentReporting’’)(a)The Company is organised into three primary business segments mainly:(i)(ii)(iii)Intermediates & Colours:Consist of pigment dyestuffs and their dispersion, Intermediates for dyes, pesticides and pharmaceuticals.Dyes & Specialty Chemicals:Includes dyestuff synthetic resins, binder materials, auxiliaries and chemicals.Masterbatches:Covers commodity and specialty Masterbatches for Plastics and nylon fibers.(b)The secondary segments of the company are geographical segments mainly:(i)(ii)India.Outside India.(c)(d)Segments have been identified and reported taking into account the nature of products and services, the differing risk and returns, theorganisation structure and the internal financial reporting system.Segment Revenue in each of the above Business Segments primarily includes Sales and Processing Charges.(e) (i) Segment Revenue and Results:The expenses which are not directly attributable to the business segment are shown as unallocated corporate cost.(ii)(iii)Segment assets and liabilities:Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors andinventories. Segment liabilities primarily include creditors and other liabilities.Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocable corporate assets andliabilities respectively.Information about Primary Business Segments:April 06 to December 06 April 05 to March 06Rs. lakhsRs. lakhsInter-Dyes andMaster-Total Inter- Dyes and Master- TotalmediatesSpecialtybatches mediates Specialty batches& ColoursChemicals & Colours ChemicalsRevenueExternal Sales/Revenue 26072.52 41350.61 1790.49 69213.62 35510.33 48401.28 1684.54 85596.15Less: Inter Segment Revenue — — — — — — — —Total Revenue (Net) 26072.52 41350.61 1790.49 69213.62 35510.33 48401.28 1684.54 85596.15ResultsSegment Results 1398.08 4804.66 244.48 6447.22 1526.98 6360.43 125.52 8012.93Unallocated Corporate Expenses (Net) (1112.98) (1827.85)Operating profits 5334.24 6185.08Interest Income/Dividend income 273.36 778.79Interest Expenses (205.17) (485.12)65