Latin Manharlal Chat
BSE Prices delayed by 5 minutes...
     Prices as on Jan 25, 2022     
  ABB India 2399.95 [ -0.04% ]
  ACC 2180.25 [ 0.53% ]
  Axis Bank Ltd. 751.95 [ 6.76% ]
  Bank of Baroda 98.5 [ 6.37% ]
  Bharti Airtel 711.9 [ 3.23% ]
  Bharat Heavy Ele 57.6 [ 0.52% ]
  Cipla 904.1 [ 1.39% ]
  Coal India 161.15 [ 3.00% ]
  Colgate Palm. 1419.05 [ 1.07% ]
  Dabur India 543.2 [ -0.60% ]
  DLF Ltd. 378.85 [ 1.86% ]
  Dr. Reddy's Labs 4407 [ 1.02% ]
  GAIL (India) 143.7 [ 1.99% ]
  Grasim Inds. 1720.2 [ 1.72% ]
  HDFC 2528.15 [ -0.43% ]
  HDFC Bank 1487.25 [ -0.01% ]
  Hero MotoCorp 2775.8 [ 2.55% ]
  ICICI Bank 801.55 [ 0.42% ]
  IDFC L 61.45 [ 4.06% ]
  IndusInd Bank 882.75 [ 3.87% ]
  Infosys 1722.1 [ -0.85% ]
  ITC Ltd. 214.2 [ 1.16% ]
  Jindal St & Pwr 376.8 [ -0.03% ]
  L&T 1924.7 [ 1.31% ]
  Lupin Ltd. 915.4 [ -0.68% ]
  Mahi. & Mahi 854 [ -0.01% ]
  MTNL 27.55 [ -4.17% ]
  Nestle India 18795.25 [ 0.45% ]
  NIIT Ltd. 388 [ -4.49% ]
  NMDC Ltd. 135.7 [ 1.27% ]
  NTPC 135.2 [ 2.00% ]
  ONGC 165.1 [ -0.24% ]
  Punj. NationlBak 39.4 [ 3.68% ]
  Reliance Inds. 2373.7 [ -0.16% ]
  SBI 514.85 [ 4.20% ]
  Vedanta 317.9 [ 1.86% ]
  Shipping Corpn. 120.85 [ -0.25% ]
  Sun Pharma. 807 [ 0.89% ]
  Tata Chemicals 919.3 [ 0.79% ]
  Tata Steel 1108.7 [ 0.87% ]
  Tata Power Co. 238.85 [ 4.05% ]
  Tata Consultancy 3770.1 [ -0.04% ]
  Tech Mahindra 1500.5 [ -0.77% ]
  United Spirits 876.05 [ 2.37% ]
  Wipro 562.85 [ -1.75% ]

Company Information

Home » Market » Company Information

Aarti Industries Ltd.

Jan 25
982.80 +0.15 (+ 0.02 %)
 
VOLUME : 36860
Prev. Close 982.65
Open Price 960.00
TODAY'S LOW / HIGH
952.95
 
 
 
988.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
537.28
 
 
 
1168.40
Jan 25
981.80 -0.60 ( -0.06 %)
 
VOLUME : 450881
Prev. Close 982.40
Open Price 975.00
TODAY'S LOW / HIGH
954.00
 
 
 
987.65
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
536.28
 
 
 
1168.00
Company Information Menu

Search Company

Market Cap. ( ₹ ) 35590.65 Cr. P/BV 11.92 Book Value ( ₹ ) 82.37
52 Week High/Low ( ₹ ) 1168/536 FV/ML 5/1 P/E(X) 67.99
Bookclosure 11/11/2021 TTM EPS ( ₹ ) 17.72 Div Yield (%) 0.31
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2021-03 

9.4 Note on Issued, Subscribed and Paid up Equity Share Capital:

(a) During the year 2019-20, 8,71,17,237 shares are issued as Bonus Shares in the ratio of 1:1 equity share of ' 5 each.

(b) During the year 2019-20, 4,48,590 Shares were alloted to the shareholders of Nascent Chemical Industries Limited pursuant to the terms of the Scheme of Arrangement approved by the Honorable National Company Law Tribunal (NCLT), Ahmedabad Bench.

(c) During the year 2018-19, 53,68,647 Shares were issued through Qualified Institutions Placement at the issue price of ' 1,397 per Equity Share (including ' 1,392 towards share premium) to qualified institutional buyers.

(d) During the year 2017-18, 8,20,383 Shares were brought back at a premium of ' 1,195/-.

(e) During the year 2016-17, 12,00,000 Shares were brought back at a premium of ' 795/-.

11.1 a) Outstanding Term Loans/ECBs to the extent of ' 1,614.08 Crs are secured by way of Pari Passu Hypothecation of the Moveable Plant & Machinery, Machinery Spares, Tools and Accessories and other movables, both present and future (except book debts, inventories and other current assets) wherever situated, excluding those charged exclusively to other Term Lenders/Specifically excluded.

b) Vehicle loans from Banks/Financial Institutions are secured by way of hypothecation of respective vehicles.

12.1 The Company has received advances of ' 401.30 Crs (previous year ' 529.69 Crs) for export commitments under the long term contracts (contracts with period more than five year) executed by the company with its customers. The advances shall be adjusted against the export sales/supplies over a period of time, as per the terms of these contracts. Further, as per the terms of said contracts, the Company has issued a Bank Guarantee to the extent of '219.33 Crs (previous year ' 138.30 Crs) in favour of the customer.

14.1 Working Capital Loans availed from Scheduled Banks, are secured/to be secured by way of Pari Passu first charge by hypothecation of Raw Materials, Stock-In-Process, Semi-Finished Goods, Finished Goods, Packing Materials and Stores and Spares, Bills Receivables and Book Debts and all other moveable, both present and future. Also by way of Joint Equitable Mortgage of the Company’s immovable properties situated at Sarigam, Vapi, Jhagadia and Bhachau in the State of Gujarat and at Tarapur in the State of Maharashtra and further by way of hypothecation of all moveable plant & machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts & inventories) wherever situated, ranking second to the charge held by ECB/Other Term Lenders.

26. There are no Micro and Small Enterprise, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2021. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

27. Interest received of ' 13.15 Crs (Tax Deducted at Source ' 0.66 Crs) [previous year ' 26.64 Crs (Tax Deducted at Source ' 2.10 Cr)] is netted off against interest paid on Working Capital.

28. In the opinion of the Board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

32. EMPLOYEE BENEFITS:Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Note:

The estimate of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion, other relevant factor's including supply and demand in the employment market. The above information is certified by the actuary.

*Actuarial Gain due to experience represents movement in the liability due to rectification of error of the salary data in the current year.

Leave Encashment:

Leave Encashment liability amounting to ' 16.88 Crs (previous year ' 11.02 Crs) has been provided in the Books of Accounts.

33. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and firm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

During the Year Company had hedged in aggregate an amount of ' 318.15 Crs (previous year ' 488.07 Crs) out of its annual trade related operations (Exports & Imports) aggregating to ' 2,575.35 Crs (previous year ' 2,585.09 Crs).

The Company had hedged its currency risks to the tune of ' 179.63 Crs (previous year ' 240.90 Crs), in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rate borrowing of ' 365.50 Crs (previous year ' 323.59 Crs) into a fixed rate loan through an interest rate swap.

(B) Net foreign exchange gain arriving out of export and import activities of the Company of ' 20.22 Crs (previous year gain of ' 28.46 Crs) is included in Profit & Loss Account.

Company had entered into forward contracts to hedge its medium and long term exports contracts. Mark to Market gain on such contracts to the tune of ' 8.41 Crs (including gain of ' 4.24 Crs for contracts of more than one year) is recognised in the Profit & Loss Account. Company had further provided for Revaluation gain on long term borrowing (ECBs) to the extent of ' 12.96 Crs as at 31st March, 2021 and have recognised the same in the Profit & Loss Account.

36. CAPITAL MANAGEMENT:

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net Debt is calculated as loans and borrowings less cash & marketable securities.

37. FINANCIAL RISK MANAGEMENT:

The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to credit risk, market risk and liquidity risk. The Company’s senior management oversees the management of these risks.

I. Credit Risk

The company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities (deposits with banks and other financial instruments).

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises from company’s activities in investments, dealing in derivatives and outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to customers on credit are generally secured through Letters of Credit, Bank Guarantees, Parent Company Guarantees, advance payments and factoring & forfaiting without recourse to AIL.

Credit Risk Management

To manage the credit risk, the Company follows an adequate credit control policy and also has an external credit insurance cover with ECGC policy wherein the customers are required to make an advance payment before procurement of goods. Thus, the requirement of assessing the impairment loss on trade receivables does not arise, since the collectability risk is mitigated.

Bank balances are held with only high rated banks and majority of other security deposits are placed majorly with government/statutory agencies.

II. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities such as trade payables and other financial liabilities.

(a) Liquidity Risk Management

The Company’s corporate treasury department is responsible for liquidity and funding as well as settlement. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

III. Market Risk

Foreign Currency Risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities in exports and imports which is majorly in US dollars.

Hence, to combat the foreign currency exposure, the Company follows a policy wherein the net sales are hedged by forward Contract.

Commodity Price Risk

The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.

The Company’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company enters into various transactions using derivatives and uses Over the Counter (OTC) as well as Exchange Traded Futures, Options and Swap contracts to hedge its commodity and freight exposure.

38. The figures of previous year have been regrouped and rearranged wherever necessary.