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Notes to Accounts of Amrit Corp. Ltd.

Mar 31, 2015

1. Contingent Liabilities and Commitments (Fig in Rupees)

(i) Contingent Liabilities

2014-15 2013-14

(a) Bank Guarantee given to the Excise Deptt. against refund of excise duty to Amrit Food Division as per Order dated 91,63,301 91,63,301 02.02.2009 of the Hon''ble Supreme Court of India.

(b) Claims against the Company not acknowledged as debts. 6,89,170 6,89,170

Total 98,52,471 98,52,471

2. In terms of provisions of Section 73 of the Companies Act, 2013 (the ''Act''), the Company has discontinued the Public Deposit Scheme and repaid all outstanding deposits amounting to Rs.202.02 lacs together with accrued interest thereon before 31st March, 2015.

3. The Company has sold the entire shareholding of M/s Amrit Digvijay Infra-Tech Pvt.Ltd., joint venture company, since it decided to abandon the housing project at Dehradun due to land related issues. The JV Company has also repaid the unsecured loan together with interest obtained by it from the Company.

4. The Company continues to have an exposure of Rs. 57,57,417/- on account of commodity trade done on National Spot Exchange Ltd. (''NSEL''). NSEL has not been able to adhere to its payment obligations. The Company has filed criminal complaint in Economic Offences Wing (EOW), Delhi Police, through M/s Mount Shikhar Commodities LLP (formerly known as Mount Shikhar Commodities Pvt. Ltd.), Member - NSEL, which has been transferred to CBI, Mumbai. Pending final outcome, which is uncertain, the Company made provision of Rs. 57,80,054/- towards the above dues in the financial year 2013-2014. During the year a sum of Rs 22,637/- was received and the amount outstanding as recoverable as on 31.03.2015 stands at Rs 57,57,417/-. Consequent reduction of the recovered amount has been made in the provision for doubtful debts.

5. The Auditors have issued letters of confirmation in duplicate to all debtors, creditors, depositors & others for confirming their balances. Balance confirmations have been received from major parties, except some parties whose outstanding are not material and some of whom are in dispute and/or under litigation with the company. The balances of such parties have been incorporated in the financial statements at the value as per the books of account. The Company, to the extent stated, has considered them as good and necessary provisions have been made in respect of debtors/advances under litigation and where recovery is considered doubtful.

6. The Bombay Municipal Corporation (BMC) through the Special Land Acquisition Officer had acquired freehold land belonging to the company admeasuring 3857.069/- sq.mtrs. for Rs.5,61,927/-. The Company had filed a petition in the Hon''ble Bombay High Court for enhancement of compensation. By a judgment dated 24th October, 1994, the Bombay High Court enhanced the compensation, including interest, by Rs.31,27,603/- with a direction to pay further interest from 15th October, 1994 till the actual date of payment. Against the judgment by a Single Judge, the BMC filed an appeal before the Division Bench of the High Court for stay and vide order dated 21st November, 1995 the execution and operation of the judgment dated 24th October, 1994 was stayed on the condition that BMC deposits the decretial amount with up to date interest amounting to Rs.42,75,769.65 with the Court which the Company was allowed to withdraw after furnishing a solvent security. Rs.32,08,889.65 was received by the Company on 5th January, 1999 and the balance on account of interest accrued thereon amounting to Rs.10,66,880/- (including TDS) was received on 15.03.2000 and these have been accounted for in the books of account for the relevant period. The appeal by BMC was finally disposed off by the Division Bench of the Bombay High Court vide order dated 29th April, 2004, which has modified the order of the Single Judge and reduced the compensation to Rs.21,01,271.97 as against the amount of Rs.32,08,889.65 decreed by the Single Judge. The Company has filed an SLP before the Hon''ble Supreme Court of India against the order as well as a stay application against the deposit of the differential amount of Rs.11,07,617.68 together with interest @12% thereon from 29th January, 1999. The appeal came up for hearing on 25th November, 2004 and the Hon''ble Supreme Court of India was pleased to issue a Notice on the SLP as well as on the interim stay application. There has been no further progress in this matter during the year.

7. Milk products, namely, soft serve mix and milk shake mix manufactured by Amrit Food Division and supplied to McDonald''s restaurants had been held to be excisable products by the Commissioner, Central Excise, Meerut. On appeal, the CEGAT (now CESTAT) confirmed the order passed by the Commissioner. The Company filed an appeal against the CEGAT''s order before the Hon''ble Supreme Court of India challenging the excise ability of these products. The Hon''ble Supreme Court while setting- aside the order of CESTAT in so far as it pertained to determination of the classification of the aforesaid products remanded the matter back to CESTAT for the purpose of disposing of the same on merit. The CESTAT after detailed arguments passed an order dated 29th March, 2006 holding inter-alia that the products in question were classifiable under Chapter 4 heading 04.04 of the Central Excise Act having ''nil'' rate of duty and not under Chapter 19 heading 19.01.19, as contended by the Excise Department. The CESTAT has, thus, set-aside the order passed by the Commissioner imposing duty on the said products and the demands raised by the Excise Deptt. have also been set-aside with consequential relief. The Excise Department has, however filed an appeal before the Hon''ble Supreme Court against the order of CESTAT which has been admitted. In the meantime, Amrit Food filed appropriate application(s) seeking refund of the duty paid in the past.

On an application for stay filed by the Excise Deptt., the Hon''ble Supreme Court vide order dated 2.2.2009 allowed the Company refund of Rs.91,63,301/- subject to the Company furnishing bank guarantee for the same. In compliance of the order of the Hon''ble Supreme Court, the Company submitted the requisite bank guarantee to the Excise Deptt. and has received refund of Rs.91,63,301/- from the Excise Deptt. on 01.06.2009. The Company is also entitled to interest on the refund amount as applicable under the Central Excise Act/Rules, which is under appeal before CESTAT. Necessary adjustment entries for the refund/ interest will be passed upon adjudication of the appeal by the Hon''ble Supreme Court. The amount of Rs 91,63,301/- has been shown as recoverable in Note No. 13.

8. Related Party Disclosure A. Related Parties

(i) Key Managerial Personnel (KMP)

Mr. N.K. Bajaj, Chairman & Managing Director Mr. A.K. Bajaj, Managing Director

(ii) Associate Companies

M/s Amrit Banaspati Co. Ltd. (ABCL) M/s Amrit Trademart Pvt. Ltd. (ATPL)

(iii) Joint Venture

M/s Amrit Digvijay Infra-Tech Pvt. Ltd. (ADIPL)

(iv) KMP having substantial interest in these companies

M/s Amrit Agro Industries Ltd. (AAIL)

M/s Kamal Apparels Private Limited (KAPL) M/s Amrit Learning Ltd. (ALL)

M/s Varsha Realty LLP

9. Segment information for the year ended 31 st March, 2015

(a) Business Segments

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company''s business segments include milk/milk products (manufacture of dairy milk & milk products), real estate & services.

(b) Geographical Segments

Since the Company''s activities/operations are within the country and considering the nature of products it deals in, the risks and returns are the same and as such, there is only one geographical segment.

(c) Segment Accounting Policies

In addition to significant accounting policies applicable to the business segments, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses

The revenue and expenses of segments are directly attributable to the segments.

(ii) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets do not include income tax assets and interest bearing assets. Segment liabilities do not include interest bearing liabilities and income-tax liabilities.

10. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Statement of Profit & Loss for the financial year 2014-15.

11. From 1st April, 2014, as per applicable provisions of the Act, the depreciation has been provided on the straight line method as per the useful life of assets specified in the Act. Earlier, the depreciation was being provided on the straight line method at the depreciation rates specified in the Companies Act, 1956. As a result of this change, depreciation provided for the year is higher by Rs. 76,94,958/-

12. Earnings per share

13. The previous year''s figures have been regrouped/re-arranged, wherever necessary, to make them comparable with the figures for the current year.


Mar 31, 2013

1. Contingent Liability and Commitments

(i) Contingent Liabilities

(Fig. in Rs.)

2012-13 2011-12

(a) Bank Guarantee given to the Excise Deptt. against 91,63,301 91,63,301 refund of excise to Amrit Food Division as per order dated 02.02.2009 of the Hon''ble Supreme Court of India

(b) Claims against the company not acknowledged as debts 6,89,170 6,89,170

(c) Income Tax cases reopened u/s 148 of Income Tax Act 2,00,00,000 2,00,00,000 regarding treatment of capital gain on business profit by the

Assessing Officer. Writ filed by the company before the

Hon''ble High Court at Allahabad admitted and stay granted.

(ii) Commitments

(a) Outstanding commitments (futures) on account of sale of commodity purchased for trading as at 31st March, 2013 amounted to Rs. Nil (Previous Year - Rs 743,17,772/-). (Refer Note No. 14 for details of commodity trading).

(b) Capital commitments outstanding on account of Fixed Assets as at 31st March, 2013 amounted to Rs. 2,57,38,298/- (Previous Year Rs. Nil).

(c) Capital commitment outstanding on account of investment in real estate as at 31st March, 2013 amounted to Rs 3,88,65,004/- ( Previous year Rs. Nil.)

2. The company, in the previous year, sold Trademark ''Gagan'' used in hydrogenated vegetable oil and edible refined oils (''Gagan'' brand) to Bunge India Private Ltd. for a consideration of Rs.1,04,50,00,000/-. The net profit of Rs.1,03,81,59,345/- arising out of the sale of ''Gagan'' brand was booked in the books of accounts and shown under the head "Exceptional Income" in the statement of Profit & Loss.

3. The company promoted a joint venture company (hereinafter referred to as ''JV Company'') under the name & style of ''Amrit Digvijay Infratech (P) Ltd." for developing a housing project at Dehradun. The company invested a sum of Rs. 49,500/- towards equity and provided Rs 1,12,50,000/- as unsecured loan. The JV Company has already acquired and registered in its name a portion of the land. The Company could not acquire the balance land and, therefore, it has been decided by the JV Company to abandon the housing project on this land. Efforts are being made to sell the land and identify another project in Dehradun or any other suitable location. Pursuant to Accounting Standard (AS) 27 - Financial Reporting on interest in Joint Venture, the disclosures relating to the joint-venture viz., Amrit Digvijay Infra-Tech Pvt. Ltd. are as follows:

(a) The proportion of interest of the Company in the JV is by way of equal equity participation with M/s Digvijay Real Estate Developers Pvt. Ltd.;

(b) The aggregate amount of assets, liabilities, income and expenses relating to the company''s interest in the JVas on 31st March, 2013 is as follows:

(c) The company''s share of capital commitment in the JV as on 31st March, 2013 is Rs. Nil (previous year Rs. Nil).

(d) The company''s share of contingent liabilities of the JV as on 31st March, 2013 is Nil (previous year Nil).

(e) There was no contingent liability outstanding as on 31st March, 2013 in relation to the company''s interest in the JV alongwith the co-venturer.

4. The auditors have issued letters of confirmation in duplicate to all debtors, creditors, depositors & others for confirming their balances. Balance confirmations have been received from major parties, except some parties whose outstandings are not material and some of whom are in dispute and/or under litigation with the company. The balances of such parties have been incorporated in the financial statements at the value as per the books of account. The company, to the extent stated, has considered them as good and necessary provisions have been made in respect of debtors/advances under litigation and where recovery is considered doubtful.

5. The Bombay Municipal Corporation (BMC) through the Special Land Acquisition Officer had acquired freehold land belonging to the company admeasuring 3857069 sq.mtrs. for Rs.5,61,927/-. The company had filed a petition in the Hon''ble Bombay High Court for enhancement of compensation. By a judgment dated 24th October, 1994, the Bombay High Court enhanced the compensation, including interest, by Rs.31,27603/- with a direction to pay further interest from 15th October, 1994 till the actual date of payment. Against the judgment by a Single Judge, the BMC filed an appeal before the Division Bench of the High Court for stay and vide order dated 21st November, 1995 the execution and operation of the judgment dated 24th October, 1994 was stayed on the condition that BMC deposits the decrial amount with up to date interest amounting to Rs.42,75,769.65/- with the Court which the company was allowed to withdraw after furnishing a solvent security. Rs.32,08,889.65/- was received by the company on 5th January, 1999 and the balance on account of interest accrued thereon amounting to Rs.10,66,880/- (including TDS) was received on 15.03.2000 and these have been accounted for in the books of account for the relevant period. The appeal by BMC was finally disposed off by the Division Bench of the Bombay High Court vide order dated 29th April, 2004, which has modified the order of the Single Judge and reduced the compensation to Rs. 21,01,271.97/- as against the amount of Rs.32,08,889.65/- decreed by the Single Judge.The Company has filed an SLP before the Hon''ble Supreme Court of India against the order as well as a stay application against the deposit of the differential amount of Rs.11,07,617.68/- together with interest @ 12% thereon from 29th January, 1999. The appeal came up for hearing on 25th November, 2004 and the Hon''ble Supreme Court of India was pleased to issue a Notice on the SLP as well as on the interim stay application. There has been no further progress in this matter during the year.

6. Milk products, namely, soft serve mix and milk shake mix manufactured by Amrit Food Division and supplied to McDonald''s restaurants had been held to be excisable products by the Commissioner, Central Excise, Meerut. On appeal, the CEGAT (now CESTAT) confirmed the order passed by the Commissioner. The Company filed an appeal against the CEGAT''s order before the Hon''ble Supreme Court of India challenging the excise ability of these products. The Hon''ble Supreme Court while setting-aside the order of CESTAT in so far as it pertained to determination of the classification of the aforesaid products remanded the matter back to CESTAT for the purpose of disposing of the same on merit. The CESTAT after detailed arguments passed an order dated 29th March, 2006 holding inter-alia that the products in question were classifiable under Chapter 4 heading 04.04 of the Central Excise Act having ''nil'' rate of duty and not under Chapter 19 heading 19.01.19, as contended by the Excise Department. The CESTAT has, thus, set-aside the order passed by the Commissioner imposing duty on the said products and the demands raised by the Excise Deptt. have also been set-aside with consequential relief. The Excise Department has, however filed an appeal before the Hon''ble Supreme Court against the order of CESTAT which has been admitted. In the meantime, Amrit Food filed appropriate application(s) seeking refund of the duty paid in the past.

On an application for stay filed by the Excise Deptt., the Hon''ble Supreme Court vide order dated 2.2.2009 allowed the Company refund of Rs.91,63,301/- subject to the Company furnishing bank guarantee for the same. In compliance of the order of the Hon''ble Supreme Court, the Company submitted the requisite bank guarantee to the Excise Deptt. and has received refund of Rs.91,63,301/- from the Excise Deptt. on 01.06.2009. The company is also entitled to interest on the refund amount as applicable under the Central Excise Act/Rules, which is under appeal before CESTAT. Necessary adjustment entries for the refund/ interest will be passed upon adjudication of the appeal by the Hon''ble Supreme Court. The amount of Rs 91,63,301/- has been shown as recoverable in Note No. 16 (c).

7. Segment information for the year ended 31st March, 2013

(a) Business Segment

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the company''s business segments include milk/milk products (manufacture of dairy milk & milk products), real estate & services.

(b) Geographical Segment

Since the company''s activities/operations are within the country and considering the nature of products it deals in, the risks and returns are the same and as such, there is only one geographical segment.

(c) Segment Accounting Policies

In addition to significant accounting policies applicable to the business segments, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses

The revenue and expenses of segments are directly attributable to the segments.

(ii) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets do not include income tax assets and interest bearing assets. Segment liabilities do not include interest bearing liabilities and income-tax liabilities.

8. Fixed Assets acquired under finance lease:

Disclosure in respect of assets taken on lease under Accounting Standard AS-19''Accounting for Leases" issued by the Institute of Chartered Accountants of India.

(1) General description of the finance lease

The company has entered into finance lease arrangements for vehicles. Some of the significant terms and conditions of such leases are as follows:

Renewal for a further period on such terms and conditions as may be mutually agreed upon between lessor and the company.

Assets to be purchased by the company or the nominee appointed by the company at the end of the lease term.

9. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the statement of Profit & Loss for the financial year 2012-13.

(b) Defined Benefit Plans & Other Long Term Benefits:

The following disclosures are made in accordance with AS-15 (Revised) pertaining to Defined Benefit Plans and Other Long Term Benefits:

10. The previous year''s figures have been regrouped/re-arranged, wherever necessary, to make them comparable with the figures for the current year.


Mar 31, 2012

1A(i) During the year ended 31st March, 2012, Company has repaid/prepaid all the term loans availed from Punjab National Bank. Consequently, necessary returns for statisfaction of charge have been filed and registered with the Registrar of Companies. The term loans were secured / to be secured by a equitable mortgage of the immovable properties both present and future and a first charge by way of hypothecation over the machinery, machinery spares, tools and accessories and other movables both present and future (save and except book debts) ranking pari-passu with the charges created/ to be created on the Company's assets, subject to prior charge of the bankers on working capital on specified movables. The term loans are also secured by:

(a) Exclusive first charge on the assets created/ to be created with Bank's term loans;

(b) First charge on all the fixed assets of the Company ranking pari passu with the existing charge holders;

(c) Second charge on all the current assets of the Company ranking pari passu with the existing charge holders; and

(d) Personal guarantees of S/Shri N.K. Bajaj, A.K. Bajaj and V.K. Bajaj.

** Special Category persons mean:

- Senior Citizens (60 years and above)

- Equity Shareholders of the Company having minimum 100 Equity Shares

1C Vehicle loan(s) are secured by hypothecation of the vehicles purchased out of the said loans. The vehicle loans have been taken for the period of 36 months at the rate varying from 9% to 12% on reducing balance basis.

NOTE:

6 (i) The working capital (Cash Credit) borrowings are secured by:

(a) Hypothecation of raw materials, stores, finished goods, stock-in-process, book-debts;

(b) 1st charge on Current Assets ranking pari-passu with the existing Charge holders;

(c) Second charge on the fixed assets of the Company ranking pari-passu with the existing charge holders; and

(d) Personal guarantees of S/Shri N.K. Bajaj, A.K. Bajaj and V.K. Bajaj.

(e) Interest Rate is 4% over Base Rate.

6 (ii) The overdraft facility which has been availed by the company during the previous year ended 31st March, 2011, has been squared up during the financial year ended 31st March, 2012. The facility of "overdraft against fixed deposit" was secured against the fixed deposit.

Valuation of inventory

(a) Raw materials, components, stores, spares and loose tools are valued at lower of weighted average cost.

(b) Work-in-progress

(i) Work-in-progress (other than the property development or construction related) is valued at cost determined at different stages of production which include related overheads.

(ii) Property Development and construction-related work-in-progress is valued at cost till such time the outcome of the work cannot be ascertained and thereafter at lower of cost or net realizable value.

(c) Finished goods are valued at lower of weighted average cost or net realizable value. In the case of finished goods, cost is determined by taking material, labour and related factory overheads, including depreciation and fixed production overheads, which are apportioned on the basis of normal capacity.

(d) Unsold real estate inventory is valued at lower of cost or market value

(e) Stock in trade are valued at cost or at market value, whichever is lower. The cost in such cases is valued at the last month weighted average price.

2. Contingent Liabilities and Commitments

(i) Contingent Liabilities

(Fig. in Rs.)

2011-12 2010-11

(a) Bank Guarantee given to the Excise Deptt. against refund of excise duty to Amrit 91,63,301 91,63,301 Food Division as per Order dated 02.02.2009 of the Hon'ble Supreme Court of India

(b) Claims against the Company not acknowledged as debts 6,89,170 6,89,170

(c) Income Tax cases reopened u/s 148 of Income Tax Act 2,00,00,000 2,00,00,000 regarding treatment of capital gain on business profit by the Assessing Officer. Writ filed by the Company before the Hon'ble High Court at Allahabad admitted and stay granted.

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2012 amounted to Nil (Previous Year - Nil).

(b) Outstanding commitments (futures) on account of sale of commodity purchased for trading as at 31st March, 2012 amounted to Rs. 7,43,17,772/- (Previous Year - Nil), (refer Note 14 for details of commodity trading).

3. (a) The company, being the jegal/beneficial owner and registered proprietor of the Trademark 'Gagan' for use in hydrogenated vegetable oils and edible refined oils ('Gagan' brand), had licensed the same to Amrit Banaspati Co. Ltd. ("ABCL") for which ABCL was paying royalty. ABCL decided to exit the edible oils business and sold the same on slump sale basis and as a going concern to Bunge India Private Ltd. ("Bunge"). The said 'Gagan' brand being an integral part of the edible oils business of ABCL, Bunge also offered to purchase the same by way of transfer/assignment to it for a consideration of Rs. 1,04,50,00,000/-. The offer of Bunge was accepted by the Company after approval of the same by the Board of Directors and shareholders pursuant to Section 293(1 )(a) of the Companies Act, 1956. The said consideration was within the range of valuation computed by M/s SSPA & Co., Chartered Accountants, Mumbai, which valued the 'Gagan' brand in the range of Rs. 95,66,00,000/- and Rs. 1,07,90,00,000/-. The Company has, during the financial year, recognized net profit of Rs. 1,03,81,59,345/- in the books of accounts arising out of the sale of 'Gagan' brand as shown under the head "Exceptional Income" in the Profit & Loss Account.

(b) The transfer of the Trademark 'Gagan' to Bunge has resulted in a profit of Rs. 1,03,81,59,345/-. The same has been shown under the head "Exceptional Item" in the Profit & Loss Account. The profit of Rs. 1,03,81,59,345/- is computed as under:

4. The Company promoted a joint venture company (hereinafter referred to as 'JV Company') under the name & style of "Amrit Digvijay Infra-tech Pvt. Ltd." for developing a housing project at Dehradun. The company invested a sum of Rs. 49,500/- towards equity and provided Rs. 99,50,000/- as unsecured loan. The JV company has already acquired and registered in its name a portion of the land. The Company could not acquire the balance land and, therefore, it has been decided by the JV company to abandon the housing project on this land. Efforts are being made to sell the land and identify another project in Dehradun or any other suitable location. Pursuant to Accounting Standard (AS) 27 - Financial Reporting on interest in Joint Venture, the disclosures relating to the joint-venture viz., Amrit Digvijay Infra-Tech Pvt. Ltd. are as follows:

(a) The proportion of interest of the Company in the JV is by way of 50% equity participation.

(b) The aggregate amount of assets, liabilities, income and expenses relating to the company's interest in the JV as on 31st March, 2012 is as follows:

(c) The Company's share of capital commitment in the JV as on 31st March, 2012 is Nil (previous year Nil).

(d) The Company's share of contingent liabilities of the JV as on 31st March, 2012 is Nil (previous year Nil).

(e) There was no contingent liability outstanding as on 31st March, 2012 in relation to the Company's interest in the JV along with the co-venturer.

5 (a) Note on Change in Accounting Policy effected in Previous Year (i.e. 2010-2011) Depreciation on fixed assets, other than intangibles, was being provided on the written down value method at the Corporate Office and straight line method at the Amrit Food Unit at the rates specified in Schedule XIV of the Companies Act, 1956. In order to have uniformity in the depreciation accounting for both the units which would ensure more appropriate presentation of the financial statements of the enterprise, in the previous year ended 31st March, 2011, the Company changed (with retrospective effect) its method of providing depreciation on fixed assets in the Corporate Office (other than Intangibles) from the written down value ('WDV) method to the straight line (SLM) method at the Schedule XIV rates prescribed in the Companies Act, 1956. The excess of Rs. 29,59,921/- arising out of retrospective re-computation of depreciation and after considering the effect of deferred tax charge of Rs. 9,60,346/- on such excess amount, the previous year's profit and loss account has been credited with the net amount of Rs. 19,99,575/- and the same was shown separately.

Had the company not changed the policy and continued to provide depreciation on the earlier basis, the aforesaid excess amount of Rs. 19,99,575/- credited to the Profit & Loss account during the previous year, would not have arisen and there would have been in lieu thereof higher depreciation charge to the Profit and Loss account of Rs. 21,60,440/- and after considering effect of deferred tax charge of Rs. 7,00,955/- on such depreciation amount, the previous year's profit and loss account had been charged/debited with the net amount of Rs. 14,59,485/-. Consequently reserve and surplus as on 31st March, 2011, would have been lower by Rs. 34,59,060/-. Similarly, the net block of fixed assets as on 31st March, 2011 would have been lower by Rs. 51,20,361/- and deferred tax liability as on 31st March, 2011 would have been lower by Rs. 16,61,301/-.

(b) Note on Short Provision Adjustment on Depreciation in Previous Year (i.e F.Y. 2010-11):

The Amrit Food Division of the Company had short charged depreciation on some of the equipments in the previous years amounting to Rs. 7,37,077/- and the same has now been charged during the year ended 31st March, 2011 and has been shown as prior period adjustments in the Profit and Loss Account.

6. The auditors have issued letters of confirmation in duplicate to all debtors, creditors, depositors & others for confirming their balances. Balance confirmations have been received from major parties, except some parties whose outstandings are not material and some of whom are in dispute and/or under litigation with the Company. The balances of such parties have been incorporated in the financial statements at the value as per the books of account. The Company, to the extent stated, has considered them as good and necessary provisions have been made in respect of debtors/advances under litigation and where recovery is considered doubtful.

7. The Bombay Municipal Corporation (BMC) through the Special Land Acquisition Officer had acquired freehold land belonging to the Company admeasuring 3857.069 sq.mtrs. for Rs. 5,61,927/-. The Company had filed a petition in the Hon'ble Bombay High Court for enhancement of compensation. By a judgement dated 24th October, 1994, the Bombay High Court enhanced the compensation, including interest, by Rs. 31,27,603/- with a direction to pay further interest from 15th October, 1994 till the actual date of payment. Against the judgement by a Single Judge, the BMC filed an appeal before the Division Bench of the High Court for stay and vide order dated 21st November, 1995 the execution and operation of the judgement dated 24th October, 1994 was stayed on the condition that BMC deposits the decretal amount with upto date interest amounting to Rs. 42,75,769.65 with the Court which the Company was allowed to withdraw after furnishing a solvent security. Rs. 32,08,889.65 was received by the Company on 5th January, 1999 and the balance on account of interest accrued thereon amounting to Rs. 10,66,880/- (including TDS) was received on 15.03.2000 and these have been accounted for in the books of account for the relevant period. The appeal by BMC was finally disposed off by the Division Bench of the Bombay High Court vide order dated 29th April, 2004, which has modified the order of the Single Judge and reduced the compensation to Rs. 21,01,271.97 as against the amount of Rs. 32,08,889.65 decreed by the Single Judge. The Company has filed an SLP before the Hon'ble Supreme Court of India against the order as well as a stay application against the deposit of the differential amount of Rs. 11,07,617.68 together with interest @12% thereon from 29th January, 1999. The appeal came up for hearing on 25th November, 2004 and the Hon'ble Supreme Court of India was pleased to issue a Notice on the SLP as well as on the interim stay application. There has been no further progress in this matter during the year.

8. Milk products, namely, soft serve mix and milk shake mix manufactured by Amrit Food Division and supplied to McDonald's restaurants had been held to be excisable products by the Commissioner, Central Excise, Meerut. On appeal, the CEGAT (now CESTAT) confirmed the order passed by the Commissioner. The Company filed an appeal against the CEGAT's order before the Hon'ble Supreme Court of India challenging the excisability of these products. The Hon'ble Supreme Court while setting- aside the order of CESTAT in so far as it pertained to determination of the classification of the aforesaid products, remanded the matter back to CESTAT for the purpose of disposing of the same on merit. The CESTAT after detailed arguments passed an order dated 29th March, 2006 holding inter-alia that the products in question were classifiable under Chapter 4 heading 04.04 of the Central Excise Act having 'nil' rate of duty and not under Chapter 19 heading 19.01.19, as contended by the Excise Department. The CESTAT has, thus, set-aside the order passed by the Commissioner imposing duty on the said products and the demands raised by the Excise Deptt. have also been set-aside with consequential relief. The Excise Department has, however filed an appeal before the Hon'ble Supreme Court against the order of CESTAT which has been admitted. In the meantime, Amrit Food filed appropriate application(s) seeking refund of the duty paid in the past.

On an application for stay filed by the Excise Deptt., the Hon'ble Supreme Court vide order dated 2.2.2009 allowed the Company refund of Rs. 91,63,301/- subject to the Company furnishing bank guarantee for the same. In compliance of the order of the Hon'ble Supreme Court, the Company submitted the requisite bank guarantee to the Excise Deptt. and has received refund of Rs. 91,63,301/- from the Excise Deptt. on 01.06.2009. The Company is also entitled to interest on the refund amount as applicable under the Central Excise Act/Rules, which is under appeal before CESTAT. Necessary adjustment entries for the refund/ interest will be passed upon adjudication of the appeal by the Hon'ble Supreme Court. The amount of Rs. 91,63,301/- has been shown as recoverable in Note 16C.

9. The Company has amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at 31.03.2012. The disclosure pursuant to the said Act is as under:

10. Segment information for the year ended 31st March, 2012

(a) Business Segments

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company's business segments include milk/ milk products (manufacture of dairy milk & milk products), real estate & services.

(b) Geographical Segments .

Since the Company's activities/operations are within the country and considering the nature of products it deals in, the risks and returns are the same and as such, there is only one geographical segment.

(c) Segment Accounting Policies

In addition to significant accounting policies applicable to the business segments, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses

The revenue and expenses of segments are directly attributable to the segments.

(ii) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the Balance Sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets do not include income tax assets and interest bearing assets. Segment liabilities do not include interest bearing liabilities and income-tax liabilities.

11. Fixed Assets acquired under finance lease:

Disclosure in respect of assets taken on lease under Accounting Standard AS-19 "Accounting for Leases" issued by the Institute of Chartered Accountants of India.

(1) General description of the finance lease

The Company has entered into finance lease arrangements for vehicles. Some of the significant terms and conditions of such leases are as follows:

- Renewal for a further period on such terms and conditions as may be mutually agreed upon between lessor and the company.

12. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Profit & Loss Account for the financial year 2011-12.

(b) Defined Benefit Plans & Other Long Term Benefits

The following disclosures are made in accordance with AS-15 (Revised) pertaining to Defined Benefit Plans and Other Long Term Benefits:

13. The previous year's figures have been regrouped/re-arranged, wherever necessary, to make them comparable with the figures for the current year.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2011 amounted to Rs. Nil (Rs. 12,40,000/-).

2. Contingent Liability

(Rs.lacs)

2010-11 2009-10

(a) Bank Guarantee given to the Excise Deptt. against refund of excise to Amrit Food Division as per order dated 02.02.2009 of the hon'ble Supreme Court of India 91.63 91.63

(b) Claims against the Company not acknowledged as debts 6.89 7.48

(c) Income Tax cases reopened u/s 148 of Income Tax Act regarding treatment of capital gain on business profit by Assessing Officer. Writ filed by the Company before Hon'ble High Court at Allahabad admitted and stay granted. 200.00 200.00

3. The Company promoted in collaboration with M/s Digvijay Real Estate Developers (P) Ltd., New Delhi a joint venture company (hereinafter referred to as 'JV Company') under the name & style of "Amrit Digvijay Infra-Tech (P) Ltd." for developing a housing project at Dehradun. The company invested a sum of Rs. 49,500/- towards equity and provided Rs 92,00,000/- as unsecured loan. The JV Company has already acquired and registered in its name a portion of the land. The Company could not acquire the balance land and, therefore, it has been decided by the JV company to abandon the housing project on this land. Efforts are being made to sell the land and identify another project in¦ Dehradun or any other suitable location. Pursuant to Accounting Standard (AS) 27 - "Financial Reporting on Interest in Joint Venture", the disclosures relating to the joint-venture viz., Amrit Digvijay Infra-Tech Pvt. Ltd. are as follows:

(a) ¦ The proportion of interest of the Company in the JV is by way of equal equity participation with M/s Digvijay Real Estate Developers Pvt. Ltd.;

(c) The Company's share of capital commitment in the JV as on 31st March, 2011 is Rs. Nil (previous year Rs. Nil).

(d) The Company's share of contingent liabilities of the JV as on 31st March, 2011 is Rs. Nil (previous year Rs. Nil).

(e) There was no contingent liability outstanding as on 31st March, 2011 in relation to the Company's interest in the JV alongwith the co-venturer.

4. Depreciation on fixed assets, other than Intangibles, was being provided on Written Down Value Method at the Corporate Office and Straight Line Method at the Amrit Food Unit at the rates specified in Schedule XIV of the Companies Act, 1956. In order to have uniformity in the depreciation accounting for both the units which will ensure more appropriate presentation of the financial statements of the enterprise, in the current year, the company changed (with retrospective effect) its method of providing depreciation on fixed assets in Corporate Office (other than Intangibles) from the Written Down Value (WDV) method to the Straight Line (SLM) method at the Schedule XIV rates prescribed in Companies Act, 1956. The excess of Rs. 29,59,921/- arising out of retrospective re-computation of depreciation and after considering effect of deferred tax charge of Rs 9,60,346/- on such excess amount, the current year's profit and loss account has been credited with the net amount of Rs 19,99,575/- and the same has been shown separately.

Had the company not changed the policy and continued to provide depreciation on earlier basis, the aforesaid excess amount of Rs 19,99,575/- credited to the profit & loss account during the current year, would not have arisen and there would have been in lieu thereof higher depreciation charge to the Profit and Loss account of Rs 21,60,440/- and after considering effect of deferred tax charge of Rs 7,00,955/- on such depreciation amount, the current year's profit and loss account has been charged/debited with the net amount of Rs 14,59485/-. Consequently reserve and surplus as on 31st March, 2011, would have been lower by Rs 34,59,060/-. Similarly, the net block of fixed assets as on 31st March, 2011 would have been lower by Rs 51,20,361/- and deferred tax liability as on 31s1 March, 2011 wouid have been lower by Rs 16,61,301/-.

5. The Amrit Food Division of the Company had short charged depreciation on some of the equipments in1 the previous years amounting to Rs.7,37,077/- and the same has now been charged during the year under review and the same has been shown as prior period adjustments in profit and loss account.

6. During the year, the Company sold/transferred its long term investment of 22,99,900/- equity shares of Rs.10/- each of M/s ABC Paper Ltd. to a co-promoter by way of inter-se transfer between the promoters consequent to restructuring of shareholding amongst the promoters of the Company. It has resulted into an income of Rs. 16,55,92,800/- which is of exceptional nature. Accordingly, such income of Rs.16,55,92,800/- has been shown as exceptional income in the profit and loss account.

7. The Auditors have issued letters of confirmation in duplicate to all debtors, creditors, depositors & others for confirming their balances. Balance confirmations have been received from major parties, except some parties whose outstanding are not material and some of whom are in dispute and/or under litigation with the Company. The balances of such parties have been incorporated in the financial statements at the value as per the books of account. The company, to the extent stated, has considered them as good and necessary provisions have been made in respect of debtors/advances under litigation and where recovery is considered doubtful.

8. The Bombay Municipal Corporation (BMC) through the Special Land Acquisition Officer had acquired freehold land belonging to the company admeasuring 3857.069 sq.mtrs. for Rs.5,61,927/-. The company had filed a petition in the Hon'ble Bombay High Court for enhancement of compensation. By a judgement dated 24th October, 1994, the Bombay High Court enhanced the compensation, including interest, by Rs.31,27,603/- with a direction to pay further interest from 15th October, 1994 till the actual date of payment. Against the judgement by a Single Judge, the BMC filed an appeal before the Division Bench of the High Court for stay and vide order dated 21st November, 1995 the execution and operation of the judgement dated 24th October, 1994 was stayed on the condition that BMC deposits the decretal amount with upto date interest amounting to Rs.42,75,769.65 with the Court which the company was allowed to withdraw after furnishing a solvent security. Rs.32,08,889.65 was received by the Company on 5th January, 1999 and the balance on account of interest accrued thereon amounting to Rs.10,66,880/- (including TDS) was received on 15.03.2000 and these have been accounted for in the books of account for the relevant period. The appeal by BMC was finally disposed off by the Division Bench of the Bombay High Court vide order dated 29th April, 2004, which has modified the order of the Single Judge and reduced the compensation to Rs.21,01,271.97 as against the amount of Rs.32,08,889.65 decreed by the Single Judge. The Company has filed an SLP before the Hon'ble Supreme Court of India against the order as well as a stay application against the deposit of the differential amount of Rs. 11,07,617.68 together with interest @12% thereon from 29th January, 1999. The appeal came up for hearing on 25th November, 2004 and the Hon'ble Supreme Court of India was pleased to issue a Notice on the SLP as well as on the interim stay application. There has been no further progress in this matter during the year.

9. Milk products, namely, soft serve mix and milk shake mix manufactured by Amrit Food Division and supplied to McDonald's restaurants had been held to be excisable products by the Commissioner, Central Excise, Meerut. On appeal, the CEGAT (now CESTAT) confirmed the order passed by the Commissioner. The Company filed an appeal against the CEGAT's order before the Hon'ble Supreme Court of India challenging the excisability of these products. The Hon'ble Supreme Court while setting-aside the order of CESTAT in so far as it pertained to determination of the classification of the aforesaid products, remanded the matter back to CESTAT for the purpose of disposing of the same on merit. The CESTAT after detailed arguments passed an order dated 29th March, 2006 holding inter-alia that the products in question were classifiable under Chapter 4 heading 04.04 of the Central Excise Act having 'nil' rate of duty and not under Chapter 19 heading 19.01.19, as contended by the Excise Department. The CESTAT has, thus, set-aside the order passed by the Commissioner imposing duty on the said products and the demands raised by the Excise Deptt. have also been set-aside with consequential relief. The Excise Department has, however filed an appeal before the Hon'ble Supreme Court against the order of CESTAT which has been admitted. In the meantime, Amrit Food filed appropriate application(s) seeking refund of the duty paid in the past.

On an application for stay filed by the Excise Deptt., the Hon'ble Supreme Court vide order dated 2.2.2009 allowed the Company refund of Rs.91,63,301/- subject to the Company furnishing bank guarantee for the same. In compliance of the order of the Hon'ble Supreme Court, the Company submitted the requisite bank guarantee to the Excise Deptt. and has received refund of Rs.91,63,301/- from the Excise Deptt. on 01.06.2009. The Company is also entitled to interest on the refund amount as applicable under the Central Excise Act/Rules, which is under appeal before CESTAT. Necessary adjustment entries for the refund/ interest will be passed upon adjudication of the appeal by the Hon'ble Supreme Court.

10. Related Party Disclosure

A. Related Parties

(i) Key Management Personnel Mr.N.K.Bajaj, Chairman & Managing Director

: Mr.A.K.Bajaj, Managing Director

(ii) Associate Companies : M/s Amrit Banaspati Co. Ltd. (ABCL)

M/s ABC Paper Ltd. (ABCP)*

M/s Amrit Agro Industries Ltd. (AAIL)

M/s Kamal Apparels Pvt. Ltd. (KAPL)

M/s Amrit Learning Ltd. (ALL)

M/s Amrit Digvijay Infra-Tech Pvt.Ltd. (ADIPL)

*ABC Paper Ltd. has ceased to be the associated company/related party w.e.f. 16th July, 2010 consequent to divestment of the shareholding of ABC Paper by the Company and the resignations of common directors from both the companies. Accordingly, the transactions with ABC Paper Ltd. have been furnished till 15th July 2010.

11. Segment information for the year ended 31st March, 2011

(a) Business Segments

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company's business segments include Milk/Milk products (manufacture of dairy milk & milk products), Real Estate and Services.

(b) Geographical Segments

Since the Company's activities/operations are within the country and considering the nature of products it deals in, the risks and returns are the same and as such, there is only one geographical segment.

(c) Segment Accounting Policies

In addition to significant accounting policies applicable to the business segments, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses

The revenue and expenses of segments are directly attributable to the segments.

(ii) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets do not include income tax assets and interest bearing assets. Segment liabilities do not include interest bearing liabilities and income-tax liabilities.

12. Fixed Assets acquired under finance lease

Disclosure in respect of assets taken on lease under Accounting Standard AS-19 "Accounting for Leases" issued by the Institute of Chartered Accountants of India.

(1) General description of the finance lease

The Company has entered into finance lease arrangements for vehicles. Some of the significant terms and conditions of such leases are as follows:

Renewal for a further period on such terms and conditions as may be mutually agreed upon between lessor and the company.

Assets to be purchased by the company or the nominee appointed by the company at the end of the lease term.

13. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Profit & Loss Account for the financial year 2010-11.

14. The current tax liability has been shown net of MAT credit entitlement of Rs. 80.42 Lacs.

15. The previous year's figures have been regrouped/re-arranged, wherever necessary, to make them comparable with the figures for the current year.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2010 amounted to Rs. 12,40,000 (Rs. 9,25,000/-).

2. Contingent Liability

(Rs.lacs)

2009-10 2008-09

(a) Bank Guarantee given to the Excise Deptt. against refund of excise to Amrit Food Division as per order dated 02.02.2009 of the honble Supreme Court of India 91.63 91.63

(b) Claims against the Company not acknowledged as debts 7.48 8.91

3. The Company promoted in collaboration with M/s Digvijay Real Estate Developers (P) Ltd., New Delhi a joint venture company (hereinafter referred to as JV Company) under the name & style of "Amrit Digvijay Infra-Tech (P) Ltd." for developing a housing project at Dehradun. The company invested a sum of Rs. 49,500/- towards equity and provided Rs 85,00,000/- as unsecured loan. The JV Company has already acquired and registered in its name a portion of the land. It is facing difficulties in acquiring the balance land. Efforts are being made to sell the land already acquired and apply the proceeds in another project in Dehradun or another suitable location. Pursuant to Accounting Standard (AS) 27 - Financial Reporting on interest in Joint Venture, the disclosures relating to the joint-venture viz., Amrit Digvijay Infra-Tech Pvt. Ltd. are as follows:

(a) The proportion of interest of the Company in the JV is by way of equal equity participation with M/s Digvijay Real Estate Developers Pvt. Ltd.;

(c) The Companys share of capital commitment in the JV as on 31st March, 2010 is Rs. Nil lacs (previous year Rs. 198.78 lacs).

(d) The Companys share of contingent liabilities of the JV as on 31st March, 2010 is Nil (previous year Nil).

(e) There was no contingent liability outstanding as on 31st March, 2010 in relation to the Companys interest in the JV alongwith the co-venturer.

4. The Auditors have issued letters of confirmation in duplicate to all debtors, creditors, depositors & others for confirming their balances. Balance confirmations have been received from major parties, except some parties whose outstandings are not material and some of whom are in dispute and/or under litigation with the Company. The balances of such parties have been incorporated in the financial statements at the value as per the books of account. The company, to the extent stated, has considered them as good and necessary provisions have been made in respect of debtors/advances under litigation and where recovery is considered doubtful.

5. The Bombay Municipal Corporation (BMC) through the Special Land Acquisition Officer had acquired freehold land belonging to the company admeasuring 3,857.069 sq.mtrs. for Rs.5,61,927/-. The company had filed a petition in the Honble Bombay High Court for enhancement of compensation. By a judgement dated 24th October, 1994, the Bombay High Court enhanced the compensation, including interest, by Rs.31,27,603/- with a direction to pay further interest from 15th October, 1994 till the actual date of payment. Against the judgement by a Single Judge, the BMC filed an appeal before the Division Bench of the High Court for stay and vide order dated 21st November, 1995 the execution and operation of the judgement dated 24th October, 1994 was stayed on the condition that BMC deposits the decretal amount with upto date interest amounting to Rs.42,75,769.65 with the Court which the company was allowed to withdraw after furnishing a solvent security. Rs.32,08,889.65 was received by the Company on 5th January, 1999 and the balance on account of interest accrued thereon amounting to Rs. 10,66,880/- (including TDS) was received on 15.03.2000 and these have been accounted for in the books of account for the relevant period. The appeal by BMC was finally disposed off by the Division Bench of the Bombay High Court vide order dated 29th April, 2004, which has modified the order of the Single Judge and reduced the compensation to Rs.21,01,271.97 as against the amount of Rs.32,08,889.65 decreed by the Single Judge. The Company has filed an SLP before the Honble Supreme Court of India against the order as well as a stay application against the deposit of the differential amount of Rs.11,07,617.68 together with interest @12% thereon from 29th January, 1999. The appeal came up for hearing on 25th November, 2004 and the Honble Supreme Court of India was pleased to issue a Notice on the SLP as well as on the interim stay application. There has been no further progress in this matter during the year.

6. Milk products, namely, soft serve mix and milk shake mix manufactured by Amrit Food Division and supplied to McDonalds restaurants had been held to be excisable products by the Commissioner, Central Excise, Meerut. On appeal, the CEGAT (now CESTAT) confirmed the order passed by the Commissioner. The Company filed an appeal against the CESTATs order before the Honble Supreme Court of India challenging the excisability of these products. The Honble Supreme Court while setting-aside the order of CESTAT in so far as it pertained to determination of the classification of the aforesaid products, remanded the matter back to CESTAT for the purpose of disposing of the same on merit. The CESTAT after detailed arguments passed an order dated 29th March, 2006 holding inter-alia that the products in question were classifiable under Chapter 4 heading 04.04 of the Central Excise Act having nil rate of duty and not under Chapter 19 heading 19.01.19, as contended by the Excise Department. The CESTAT has, thus, set-aside the order passed by the Commissioner imposing duty on the said products and the demands raised by the Excise Deptt. have also been set-aside with consequential relief. The Excise Department has, however filed an appeal before the Honble Supreme Court against the order of CESTAT which has been admitted. In the meantime, Amrit Food filed appropriate application(s) seeking refund of the duty paid in the past.

On an application for stay filed by the Excise Deptt., the honble Supreme Court vide order dated 2.2.2009 allowed the Company refund of Rs.91,63,301/- subject to the Company furnishing bank guarantee for the same. In compliance of the order of the honble Supreme Court, the Company submitted the requisite i>ank guarantee to the Excise Deptt. and has received refund of Rs.91,63,301/- from the Excise Deptt. on 01.06.2009. The Company is also entitled to interest on the refund amount as applicable under the Central Excise Act/Rules, which is under appeal before CESTAT.Necessary adjustment entries for the refund/ interest will be passed upon adjudication of the appeal by the honble Supreme Court.

7. The Company has amounts due to suppliers under the Micro, Small and Medium Enterprises

Development Act, 2006 (MSMED Act) as at 31.03.2010. The disclosure pursuant to the said Act is as under:

Note: The information has been given in respect of such vendors who could be identified as "Micro and Small" enterprises on the basis of information available with the Company.

8. Related Party Disclosure

A. Related Parties

(i) Key Management Personnel : Mr.N.K.Bajaj, Chairman & Managing Director

Mr.A.K.Bajaj, Managing Director (ii) Associate Companies M/s ABC Paper Ltd. (ABC Paper)

M/s Amrit Banaspati Co. Ltd. (ABCL)

M/s Amrit Agro Industries Ltd. (AAIL)

M/s Amrit Learning Ltd. (ALL)

M/s Amrit Digvijay Infra-Tech Pvt.Ltd. (ADIPL)

9. Segment information for the year ended 31" March, 2010

(a) Business Segments

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segments include Milk/Milk products (manufacture of dairy milk & milk products), Real Estate & Services.

(b) Geographical Segments

Since the Companys activities/operations are within the country and considering the nature of products it deals in, the risks and returns are the same and as such, there is only one geographical segment.

(c) Segment Accounting Policies

In addition to significant accounting policies applicable to the business segments, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses

The revenue and expenses of segments are directly attributable to the segments.

(ii) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets do not include income tax assets and interest bearing assets. Segment liabilities do not include interest bearing liabilities and income-tax liabilities.

10. Fixed Assets acquired under finance lease:

Disclosure in respect of assets taken on lease under Accounting Standard AS - 19 "Accounting for Leases" issued by the Institute of Chartered Accountants of India.

(1) General description of the finance lease

The Company has entered into finance lease arrangements for vehicles. Some of the significant terms and conditions of such leases are as follows:

Renewal for a further period on such terms and conditions as may be mutually agreed upon between lessor and the company.

Assets to be purchased by the company or the nominee appointed by the company at the end of the lease term.

Vehicles in Fixed Assets Schedule E - include assets acquired under finance lease arrangements, the details of which are given below:

11. Employee Benefits:

(a) Defined Contribution Plans

The Company has recognized the contribution/liability in the Profit & Loss Account for the financial year 2009-10.

Notes:

(a) The estimates ot future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors;

(b) The Company estimates that the amount to be contributed to the Gratuity fund for the financial year 2010-11 will be Rs. Nil.

(c) The liability towards the earned leave for the year ended 31st March. 2010, based on actuarial valuation amounting to Rs. 11.90 lacs has been recognizee in the profit & loss account.

12. The previous years figures have been regrouped/re-arranged, wherever necessary, to make them comparable with the figures for the current year.

 
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