Advanced Enzyme Technologies Ltd.
You can view the entire text of Notes to accounts of the company for the latest year
ISIN No INE837H01020 52Wk High (Rs.) 324 BV (Rs.) 50.08 FV (Rs.) 2.00
Bookclosure 14/09/2018 52Wk Low (Rs.) 165 EPS (Rs.) 8.07 P/E (X) 21.55
Mkt Cap. (Rs. Cr.) 1,941.01 P/BV (X) 3.47 Div Yield (%) 0.05 Mkt Lot 1


The share issue expenses had been incurred by the Company in relation to its Initial Public Offer ("the Offer") of equity shares. The Company has incurred Rs, 210.79 million (inclusive of service tax) as IPO expenses. Of the above IPO expenses certain expenses (such as legal counsel cost, listing fees and other cost) aggregating to Rs,3.84 million are directly attributable to the Company. Remaining IPO expenses aggregating to Rs, 206.95 million, have been allocated between the Company Rs, 25.48 million and selling shareholders Rs, 181.47 million in proportion to the Equity shares allotted to the public as fresh issue by the Company and under Offer for Sale by the selling shareholders. The total amount attributable to the Company has been adjusted towards the securities premium account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilization in the securities premium account post the issue of equity shares. The share of the Selling Shareholders of such expenses has been reimbursed to the Company

1. Earnings per share

The basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive. The earnings per share is calculated as under:

2. Segment reporting Primary segment

The Company operates only in one primary business segment viz. 'manufacturing and sales of enzymes' and hence no separate information for primary segment wise disclosure is required.

3. Related Party Disclosures - As per Accounting Standard 18 a) Names of related parties I Subsidiaries including step-down subsidiaries

Advanced Bio-Agro Tech Limited

Advanced EnzyTech Solutions Limited

JC Biotech Private Limited (w.e.f. 1 December 2016)

Advanced Enzymes USA, Inc.

Cal India Foods International (subsidiary of Advanced Enzymes USA, Inc.)

Advanced Supplementary Technologies Corporation (Wholly owned subsidiary of Advanced Enzymes USA, Inc.) Enzyme Innovation, Inc. (Wholly owned subsidiary of Cal India Foods International)

Dynamic Enzymes, Inc. (Wholly owned subsidiary of Advanced Enzymes USA)

Enzyfuel Innovation, Inc. (Wholly owned subsidiary of Advanced Enzymes USA, Inc. w.e.f. 30 December 2015)

II Key Management Personnel (KMP)

Mr. Vasant L Rathi Mr. Chandrakant L. Rathi Mrs. Savita C. Rathi Mr. Mukund M. Kabra Mr. Piyush C. Rathi Mr. Beni P. Rauka

Mr. Prabal Bordiya (up to 13 February 2017)

Mr. Sanjay Basantani (w.e.f. 14 February 2017)

Relatives of KMP :

Mrs. Prabha V. Rathi Mr. Kishore L. Rathi Mrs. Mangala M. Kabra

III Other related parties (entities in which either of the KMP's have significant influence) with whom transactions have taken place during the year

Advanced Vital Enzymes Private Limited Om Manufacturing Jalna Private Limited Silvertech Trading Company Private Limited Pranoo Financial Services Private Limited

4. Employee share-based payment plans

a) Description of share-based payment arrangements:

As at 31 March 2017, the Company has the following share-based payment arrangements for employees.

'AETL Employee Stock Option Scheme 2015'- ("AETL ESOS 2015")

AETL ESOS 2015 (amended) provides for the grant of 44,000 stock options to specified employees on 15 February 2017. The AETL ESOS 2015 had been formulated by Board of Directors which was further adopted by Nomination and Remuneration committee and recommended further changes to AETL ESOS 2015. The Shareholders approved the amended scheme on 15 September 2016. The plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share for every option at an exercise price of Rs, 300.

The Company had incurred the above expenditure on toxicity studies, product characterization, identification, evaluation, technical analysis of data and consultancy services for the purpose of registration of product dossiers under European Food Safety Authority (EFSA) and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Authority, which is mandatory requirement for export of food and non-food enzymes, food flavorings and additives to European countries. The Company will be permitted to sell its registered products; therefore it is considered as product permits to sell in European market. Since the final approvals for product dossiers filed with EFSA are currently awaited, such expenditure has been capitalized as "Intangible fixed assets under development" in the standalone financial statements. Cost have also been incurred towards filing of product dossiers with US Food Drug Authorities (US FDA) for Generally Regarded As Safe (GRAS) registrations for acceptability of food enzymes in the USA. The Company is in the process of filing the product dossier with US FDA, accordingly, such expenditure has been capitalized as "Intangible fixed assets under development" in the standalone financial statements.

This information also complies with the terms of the recognition granted up to 31 March 2019 to the Company's In- House Research and Development Activities by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India, vide their letter No. TU/IV-RD/2159/2016 dated 4 July 2016.

(b) In relation to the leasehold land held by the Company, the lease agreement has been executed for a period of 30 years with a renewable clause for a further period of 5 years as per the conditions applicable. The lease agreement provides for termination at will by the Company by giving a prior notice period of 3 months.

In relation to other leased facilities, the agreements are executed for a period ranging from 33 months to 62 months with a renewable clause and also provides for termination at will by either party giving a prior notice period of 3 months."

5. Corporate Social Responsibility

As required by section 135 of Companies Act, 2013 and Rules therein, a Corporate social responsibility committee has been formed by the Company. The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year 2016-17 Rs, 3.78 million (previous year Rs,4.24 million).

(b) Amount spent by the Company during the year on purpose other than construction/ acquisition of assets is Rs,3.9 million (previous year Rs,4.46 million)

6. Acquisition of JC Biotech Pvt. Ltd.

On 1 December 2016, the Company acquired 70% stake JC Biotech Pvt. Ltd. for a total upfront consideration of certificate 500.85 million approved by the Board of Directors in its meeting held on 28 October 2016. The Company has funded the acquisition through internal accruals. The Company has paid stamp duty and other related charges amounting to certificate 2.25 million, which has been added to the cost of acquisition

7. Proposed Dividend

The Board of Directors recommended a final dividend for the financial year 2016-17 of certificate 0.40 per equity share of the face value of certificate 2/- each. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2016 applicable with effect from 1 April 2016, this dividend (including dividend distribution tax) will be recorded and paid post the approval of shareholders in the Annual General Meeting.

Maximum amount outstanding during the year is Rs. 400 million (Previous year - Rs. Nil) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

8. Prior year regrouping / reclassification

The previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year's presentation as under: