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Notes to Accounts of Aries Agro Ltd.

Mar 31, 2015

1. 66,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paidup Bonus Shares since incorporation by capitalization of Rs. 4.90 Crores from Revaluation Reserve, Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from Statement of Profit and Loss.

2. 17,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paid Bonus Shares during the Financial Year 2006-07 by capitalization of Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from Statement of Profit and Loss.

3. There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Working Capital Facilities from Banks are secured by way of Charge on Company's Inventory, Book Debts, Charge on Land, Building, Plant & Machinery and all other movable fixed assets of the Company and guaranteed by Directors.

5. Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 85,54,564/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

6. Unclaimed Dividend do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

7. Statutory Dues includes Indirect Taxes, Tax Deducted at Source, Bonus, ESIC, Provident Fund and Profession Tax.

8. Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9. Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

11. Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited. The Registered Office of the Company is located at " SAIF Zone ( Emirates of Sharjah )". The said Company has no accumulated losses as at 31st March, 2015.

12. Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

13. Balance with Banks includes Unclaimed Dividend of Rs. 23.63 Lacs and Unclaimed Share Application Money of Rs. NIL Lacs (Previous Year Unclaimed Dividend Rs. 19.77 Lacs and Unclaimed Share Application Money Rs. 5.81 Lacs).

14. The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

a) All the above Loans and Advances are interest free loans except Loan granted to Golden Harvest Middle East FZC.

b) Receipt of the principal amount of the above loans are regular.

c) Other terms and conditions on which such loans and advances are given to the Companies are not prejudicial to the interest of the Company.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

15. The Company's significant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range up to 60 month's generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as "RENT" in Other Administrative Expenses under Note 24.

16. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

17. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given / Bills discounting Rs. 5,392.48 Lacs

b) Claims against company not acknowledged as debts Rs. 78.55 Lacs which includes tax dues disputed as Rs. 2.68 Lacs towards sales Tax Rs. 62.78 Lacs towards Income Tax and includes Rs. 13.09 Lacs pertaining to pending suits regarding quality issue.

c) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance up to June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

18. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profit and loss of the Company.

19. The Company has acquired a vehicle in the name of the Director which is yet to be transferred in the name of the Company. The Company has all the ownership rights and Depreciation thereon has been charged at the rates prescribed in the Schedule II to the Companies Act, 2013.

20. Previous Years figures have been regrouped wherever necessary so as to make them comparable with the current year.


Mar 31, 2014

1. Corporate Information

Aries Agro Limited(''Aries'' or the ''Company'') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branch of agro protection, seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company''s Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and micro- fertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of preparation

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out.

3. Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 75,91,742/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

4. Unclaimed Dividend do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

5. Unclaimed Share Application Money do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

6. Statutory Dues includes Indirect Taxes, Tax Deducted at Source, Bonus, ESIC, Provident Fund and Profession Tax.

7. Other Payables includes Book Overdrafts and advance received against sale of KW.

8. Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9. Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

10. Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited. The Registered Office of the Company is located at " SAIF Zone ( Emirates of Sharjah )". The said Company has no accumulated losses as at 31st March, 2014.

11. Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

12. Balance with Banks includes Unclaimed Dividend of Rs. 19.77 Lacs and Unclaimed Share Application Money of Rs. 5.81 Lacs (Previous Year Unclaimed Dividend Rs. 14.13 Lacs and Unclaimed Share Application Money Rs. 5.81 Lacs).

13. The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

14. Fixed Deposits with Banks includes Rs. 2,30,000/- being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

15. The Company''s significant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range upto 36 months generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as "RENT" in Other Administrative Expenses under Note 24.

16. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

17. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs. 4,464.20 Lacs

b) Bills discounting with Banks Rs. 1,000/- Lacs.

c) Claims against company not acknowledged as debts Rs. 87.13 Lacs which includes tax dues disputed as Rs. 2.68 Lacs towards sales Tax, Rs. 54.56 Lacs towards Income Tax and includes Rs. 29.88 Lacs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

18. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment "Agro Inputs "as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 ''Segmental Information'' notified pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

19. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profit and loss of the Company.

20. The Company has acquired a vehicle in the name of the Director which is yet to be transferred in the name of the Company. The Company has all the ownership rights and Depreciation thereon has been charged at the rates prescribed in the Schedule XIV to the Companies Act, 1956.

21. Previous Years figures have been regrouped wherever necessary so as to make them comparable with the current year.


Mar 31, 2013

1. Corporate Information

Aries Agro Limited(''Aries'' or the ''Company'') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversifi ed into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branch of agro protection, seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company''s Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and micro-fertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of preparation

i) The fi nancial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these fi nancial statements to comply in all material respects with the Accounting Standards, notifi ed by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The fi nancial statements have been prepared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out.

ii) The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for change in accounting policy as explained in 2.1(A) (i) below.

3.1 General description of Lease terms :

(a) Lease Rentals are charged on the basis of agreed terms.

(b) Assets are taken on Lease for a period of 36 months.

4. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confi rmation.

5. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs. 5,856.25 Lakhs

b) Bills discounting with Banks Rs. 1,000.00 Lakhs.

c) Claims against company not acknowledged as debts Rs. 88.97 Lakhs which includes tax dues disputed as Rs. 2.68 Lakhs towards sales Tax, Rs. 54.56 Lakhs towards Income Tax and includes Rs. 31.73 Lakhs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad had issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

6. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment " Agro Inputs "as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 ''Segmental Information'' notifi ed pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

7. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profi t and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profi t and loss of the Company.

8. Previous Years fi gures have been regrouped wherever necessary so as to make them comparable with the current year.


Mar 31, 2012

1. Corporate Information

Aries Agro Limited('Aries' or the 'Company') was incorporated at Mumbai in 1969 for manufacturing of small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use and currently is into business of manufacturing micronutrients and other nutritional products for plants and animals.

In January, 2007 the Company incorporated Aries Agro Care Private Limited as a Wholly Owned Subsidiary for carrying business in the Branches of agro protection, agro and seeds etc.

In January, 2007 the Company incorporated Aries Agro Equipments Private Limited as a Wholly Owned Subsidiary for carrying business in all type of farm equipments, machinery etc.

In 2008 the Company acquired 75% Shares in Golden Harvest Middle East FZC, Sharjah, UAE, by virtue of which the said Golden Harvest Middle East FZC has become a Subsidiary of the Company. Golden Harvest Middle East FZC is in the business of manufacturing chelated Micronutrients.

In June, 2008 the Company incorporated Aries Agro Produce Private Limited as a Subsidiary for carrying business in all kinds of farming etc.

In the year 2010 the Company's Overseas Subsidiary viz M/S Golden Harvest Middle East FZC acquired 75% Shares of M/S Amarak Chemicals FZC based in Fujairah Free Zone, UAE by virtue of which M/S Amarak Chemicals FZC has become a Step Down Subsidiary of Aries Agro Limited.

Aries Agro Limited is an Indian Multinational Company that offers the widest range of products in the primary, secondary and micro- fertilizer sector, ranging from individual elements to mixed specialty plant nutrient fertilizers. Since 1969, Aries has pioneered several innovative concepts of farming to Indian agriculturists, including the wonder of Chelation Technology, bio-degradable complexes of plant nutrients, water soluble NPK fertilizers, value added secondary nutrients, natural and biological products and water treatment formulations.

2. Basis of preparation

i) The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out.

ii) The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for change in accounting policy as explained in 2.1(A) (i) below.

3.1 6,600,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paidup Bonus Shares since incorporation by capitalisation of Rs. 4.90 Crores from Revaluation Reserve, Rs. 0.91 Crores from Securities Premium Account and Rs. 0.79 Crores from the Statement of Profit and Loss.

3.2 17,00,700 Equity Shares out of the Issued, Subscribed and Paidup Share Capital were allotted as fully paid Bonus Shares in the last five years i.e.during the Financial Year 2006-07 by capitalisation of Rs. 91.46 Lacs from Securities Premium Account and Rs. 78.61 Lacs from the Statement of Profit and Loss..

4.1 Secured Term Loans from Banks referred above to the extent of :

(a) Rupees 8,900,285/- are secured by way of Charge on the Company's Motor Vehicles.

(b) Rupees 118,301,455/- is a Foreign Currency Term Loan which is secured by way of Equitable Mortgage of Land and Building and personal guarantee of Directors.

(c) Rupees 15,593,693/- are secured to Axis Bank Ltd by way of Primary Charge on all Fixed Assets at Mouje Rajpur, Gujarat and personal guarantee of Directors.

4.2 Secured Term Loans from Companies are secured by way of Charge on the Company's Motor Vehicles.

4.3 Un-Secured Term Loans from Banks are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

4.4 Maturity Profile of Secured Term Loans are as set out below :

5.1 Working Capital Facilities from Banks are secured by way of Charge on Company's Inventory, Book Debts, Charge on Land, Building, Plant & Machinery and all other movable fixed assets of the Company and guaranteed by Directors.

6.1 There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identifed on the basis of information available with the Company.

7.1 Current Maturities of Long Term Debt includes amount repayable within one year of :

(a) Secured Term Loans from Banks Rs. 115,905,516/-.

(b) Secured Term Loans from Companies Rs. 82,368/-.

(c) Un-Secured Term Loans from Banks Rs. 2,911,006/-.

7.2 Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of :

(a) Rupees 6,576,118/- are secured by way of Charge on the Company's Motor Vehicles.

(b) Rupees 105,730,854/- is a Foreign Currency Term Loan which is secured by way of Equitable Mortgage of Land and Building and personal guarantee of Directors.

(c) Rupees 3,598,544/- are secured to Axis Bank Ltd by way of Primary Charge on all Fixed Assets at Mouje Rajpur, Gujarat and personal guarantee of Directors.

7.3 Secured Term Loans from Companies included in Current Maturities of Long Term Debt to the extent of Rs. 82,368/- are secured by way of Charge on the Company's Motor Vehicles.

7.4 Un-Secured Term Loans from Banks included in Current Maturities of Long Term Debt to the extent of Rs. 2,911,006/- are secured by way of Charge on personal Assets of Directors and guaranteed by the Directors.

7.5 Statutory Dues includes Indirect Taxes, Provident Fund, Employees State Insurance and Profession Tax.

7.6 Other Payables includes Book Overdrafts.

8.1 The Gross Block of Fixed Assets includes Rs. 176,000,000/- ( Previous Year Rs. 176,000,000/-) on account of revaluation of Building carried out in F Y 1994-95. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 2,804,433/- ( Previous Year Rs. 2,804,433/-) and an equivalent amount has been debited to Revaluation Reserve and Credited to Accumulated Depreciation on Buildings. This has no impact on Profit or Loss for the year.

8.2 Capital Work in Progress represents Advance for Existing Office Building renovation and Expenditure incurred in connection with Project Africa and Chhatral (Gujarat). On completion the Capital Work in Progress will be allocated to relavent Assets.

9.1 Aries Agro Care Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 5th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business in all branches of agro protection, agro care, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9.2 Aries Agro Equipments Pvt. Ltd. has been incorporated as a wholly owned subsidiary on 12th January, 2007 with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of manufacturing, repair, etc. of all types of rural and farm equipments, machinery, etc. The Registered Office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

9.3 Golden Harvest Middle East FZC was incorporated on 31st December, 2004 as a Free Zone Company with limited liability to carry on the activities of manufacturing Chemical Fertilizer and exporting all the necessities, material and acts related to its natural work or needed to the above mentioned works. In the year 2008 it became 75% subsidiary of the Company, Aries Agro Limited.The Registered Office of the Company is located at " SAIF Zone ( Emirates of Sharjah )". The said Company has no accumulated losses as at 31st March, 2012.

9.4 Aries Agro Produce Pvt. Ltd. has been incorporated on 20th June, 2008 as 75% owned subsidiary with the Registrar of Companies, Maharashtra, Mumbai. to carry out the business of all kinds of Farming, agriculture, horticulture etc. and to plant, grow, cultivate and in any other way deal in farming and agricultural produce. The registered office of the Company is located at "Aries House, Plot no 24, Deonar, Govandi (E), Mumbai - 400 043".

10.1 The Fixed Deposits are kept as Margin against various Credit Limits / Guarantees.

10.2 Fixed Deposits with Banks includes Rs. 295,000/- being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

a) All the above Loans and Advances are interest free loans except Loan granted to Golden Harvest Middle East FZC.

b) Receipt of the principal amount of the above loans are regular.

c) Other terms and conditions on which such loans and advances are given to the Companies are not prejudicial to the interest of the Company.

All Employees having served from the 1st day of their employment are entitled to the benefits of the contribution to Provident Fund.

The Company contributes specified percentage of the salary paid to Employees to the Defined Fund.

Defined Benefit Plan

All Employees who have completed five years or more of service are entitled to benefits of Gratuity. The Company has the Employee's Gratuity scheme managed by Life Insurance Corporation of India which is a Defined Benefits Plan. The present value of obligation is determined based on actuarial valuation. The obligation for Leave Encashment is recognised in the same manner as Gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

The Company had not provided in Leave Salary upto 31st March, 2011 of Rs. 4,482,314/-. During the current year the Company has provided the same and includes the obligations in respect of earlier year.

11.1 The Company's signifcant leasing arrangements are in respect of Operating Leases for Vehicles. These leasing arrangements which are not non-cancellable range upto 36 months generally and are renewable by mutual consent on mutually agreeable terms. The aggregate Lease Rentals payable are charged as "RENT" in Other Administrative Expenses under Note 24.

11.2 General description of Lease terms :

(a) Lease Rentals are charged on the basis of agreed terms.

(b) Assets are taken on Lease for a period of 36 months.

13. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

14. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs. 4,135.11 lakhs

b) Bills discounting with Banks Rs. 1,700.76 lakhs

c) Claims against company not acknowledged as debts Rs. 86.50 lakhs which includes tax dues disputed as Rs. 5.12 lakhs towards sales Tax, Rs. 54.56 lakhs towards Income Tax and includes Rs. 25.73 lakhs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad has issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

e) Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of Advances) is Rs 697/- Lakhs.

f) Claim made under Workmen's Compensation Act by ex-contract labourer at Bangalore of Rs. 20/- Lakhs.

15. Segmental Reporting as per Accounting Standard - 17

The Company has only One business Segment " Agro Inputs "as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 'Segmental Information' notified pursuant to the Companies (Accounting Standard) Rules, 2006 (as amended).

16. Derivative Instrument

The Company has entered into hedging contract in respect of Interest rate on ECB Loans. The profit and loss arising on account of such hedging contract is accounted as and when payment of interest falls due. The Company recovers such costs from its Subsidiary and hence there is no effect on profit and loss of the Company.

17. Previous years figures have been regrouped wherever necessary so as to make them comparable with the current year.


Mar 31, 2011

1. Current Assets, Loans & Advances and Provisions

a) The current assets and loans and advances are approximately of the value stated, if realized in the ordinary course of business.

b) The provision for all known liabilities is not in excess of the amounts reasonably necessary.

c) The balances of Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confrmation.

2. Gratuity

The Company has opted for Life Insurance Corporation of India's group gratuity scheme for its employees. The scheme offered by the Life Insurance Corporation of India permits the company for payment of arrears in five yearly installments commencing from 1st December, 2005. The total contribution payable including arrears as per life insurance corporation of india as on 31/03/11 is Rs 33,881,684/-. During the year the company has paid Rs 17,807,357/- (Previous year Rs 3,879,534/-) towards gratuity fund. The unprovided liability as on 31/03/2011 is Rs Nil/- ( Previous year Rs Nil ). The details of contribution to gratuity fund are as under:

a) Present value of obligations as on 31/03/2011 is Rs 33,881,684/ (Previous Year Rs 25,900,077/-).

b) Fair value of plan assets as on 31/03/2011 is Rs 26,826,802/- (Previous Year Rs 9,850,079/-).

c) Provisions made (fully) as on 31/03/2011 is Rs 7,054,882/- (Previous Year Rs 16,049,998/-).

3. Contingent Liability not provided for in the accounts:

a) Letters of credit / guarantees given to Banks Rs 5,715.01 lakhs

b) Bills discounting with Banks Rs 2,214.05 lakhs

c) Claims against company not acknowledged as debts Rs 86.50 lakhs which includes tax dues disputed as Rs 5.12 lakhs towards sales Tax, Rs 54.56 lakhs towards Income Tax and includes Rs 25.73 lakhs pertaining to pending suits regarding quality issue.

d) The Commissioners of Central Excise, Mumbai and Hyderabad has issued Show Cause-Cum-Demand Notices for levy of Excise Duty on clearances of Micronutrients. The Commissioner of Central Excise, Mumbai, vide his Order dated 27th November, 2006 and Commissioner of Central Excise, Hyderabad, vide his Order dated 30th November 2005 had cancelled these demands in respect of clearance upto June, 2006. The Department has preferred appeals against the said orders. The Department has issued Show Cause Notices to the Company in respect of clearances thereafter. Though, in view of the Orders referred to above and the pending appeals, no action has been taken. The Company expects no liability in this regard.

e) Estimated amount of Contracts remaining to be executed on capital account and not provided for (Net of Advances) is Rs 140 Lacs.

4. Income Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred Tax Assets and Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profit offered for Income Tax and profit as per financial statements.

Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted on the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

Assumption:

All the expenses claimed (but allowable on the condition of payment U/s 43B) will be paid on or before "due date".

5. Segmental Reporting as per Accounting Standard - 17

The Company has only One Reportable Segment in terms of Accounting Standard 17 issued by ICAI

6. Remuneration to Directors

Remuneration paid to Chairman & Managing Director and Executive Director is within the limits laid down under Schedule XIII to the Companies Act, 1956 and included in the profit and Loss Account, as Directors Remuneration.

7. Micro and Small Scale Business Entities

There are no micro and small Enterprises to whom company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identifed on the basis of information available with the company.

8. (A) Additional information required under Part II of Schedule VI of the Companies Act, 1956 is as under:

(As certifed by the management and relied upon by the Auditor)

Licensed Capacity : Not Applicable

Installed Capacity : 84,600 Metric Tonnes

(84,600 Metric Tonnes)

(B) Actual Production : 39,577 Metric Tonnes

(35,647 Metric Tonnes)

9. Term Loans from HDFC (classifed as unsecured) is secured against the personal assets of the directors.

10. Management Fees receivables on management of Farmer's Loan from HDFC Bank will be accounted for on raising of invoices / accrual basis.

11. Loans & Advances includes the Custom Duty Refund awaited Rs 2,493,152/-.

12. Margin for Bank Guarantees includes 295,000/- being the amount of Fixed Deposits for issue of Bank Guarantees on behalf of Subsidiaries / Associates.

13. Previous years fgures have been regrouped wherever necessary so as to make them comparable with the current year.

 
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