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April 2012

Chemplast Sanmar Ltd. (31-3-2011)

By Himanshu V. Kishnadwala, Chartered Accountant
Reading Time 1 mins
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Revenue recognition: Montreal Protocol compensation: The company is eligible to receive compensation from Multilateral Fund under the Montreal Protocol for phasing out the production of Chlorofluorocarbons and supply of Carbon Tetra Chloride to non-feedstock sector. The aforesaid compensation is received in periodic instalments, subject to meeting certain conditions stipulated in the Protocol and accordingly the compensation is accounted only after complying with such conditions and ensuring that there is no uncertainty in this regard. Following this practice compensation received during the year alone has been accounted and shown under Other Income.

Income from Certified Emission Reduction (CER): The company is entitled to receive Carbon Credits towards CER from United Nations Framework Convention for Climate Change (UNFCCC). Income from CER is reckoned when the company is entitled to such credits, which occurs

— on incineration of HFC 23 at Mettur
— on production of steam from waste heat recovery boiler at Karaikal.

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