Home  »  Company  »  Binny Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Binny Ltd.

Mar 31, 2015

1. The company has reviewed the deferred tax assets and liabilities as at the year end. The timing differences relates mainly to depreciation and carry forward losses for the period up to 31-03-2015 resulting in a Net Deferred Tax asset. As a prudent measure, this net deferred tax asset has not been recognized in the accounts.

2. The company has received wealth tax demand from AY 1993-94 to AY 2003-04 and 2005-06 to 2010-11 of Rs.2553.78 lakhs for which the company has filed appeals with ITAT, Chennai. The entire Wealth tax demands were provided for in the books and the entire wealth tax demands were paid by the company. The Company has paid a sum of Rs.404.92 lakhs in excess of demands raised by the Department which was shown as 'Wealth tax paid under Protest' under Note 17 – Other Current Assets.

3..a. The company has received Income Tax demand for Asst. year 2008 – 09 Rs.19.21 lakhs which is disputed before ITAT, Chennai. The Company has also received Income Tax demand for Asst. Year 2010 – 2011 demanding a sum of Rs.11464.23 Lakhs and company has filed appeals before CIT (A). The Company has also filed a writ before the High Court and the HC has stayed the demand. Considering the company's chance of success in appeal no provision has been made in the accounts.

4.b.. During the year, the company has received order from the Service tax department demanding penalty of Rs. 34.34 lacs for the period from October, 2009 to October, 2010., The company has paid the dues before Show Cause Notice is being served on the Company. On the basis of the merits of the case the company has paid Rs. 2.57 lakhs as pre-deposit which is shown under 'Note-17-Other Current Assets' and has appealed before Commissioner of Central Excise (Appeals), Chennai. Since, it is considered that the case shall be favorable to the Company no provision was made in the books.

5. During the previous year, the company has entered in to MOU for sale of land held as stock in trade. The company has received Rs. 19145.58 lacs as advance for sale of land. The transfer of title, settlement of employees occupying some portion of the land etc are under progress. Upon receipt of the entire sale consideration and transfer of title to the buyers the said amount shall be recognized as income as per the accounting policy of the company. Pending transfer of title the entire amounts were shown as Other Long Term Liabilities as on 31-Mar-2015.

6. The Company has discontinued its Warehousing operations from January, 2015. In order to carry on the real estate activity the land held in Fixed Assets have been converted in to Stock- in-trade effective 01.12.2014 The company has entered in to MOU for development of land held as stock-in-trade for real estate activities. As per MOU the company has received Rs. 6145.57 lakhs, as part of interest free Security Deposit which was shown as Other Long-term liabilities.

7. During the year, the land held in Fixed Assets has been converted in to Stock-in-trade with effect from 01-12-14. The Fixed Asset value of land includes revaluation addition made during previous years. Some portion of revaluation reserve was utilized for write off losses as per the sanctioned scheme of Demerger by the High Court. Hence, the value of Inventory is taken as the value of Fixed Asset standing as on the date of conversion in to stock-in-trade which is much less than net realizable value.

ii) Enterprises where Key Management Personnel exercise Influence

- Mohan Breweries & Distilleries Ltd (Related company by Director)

- Binny Mills Ltd. (Related company by Director)

- Mother Mira Industries Limited (Related company by Director)

- Mira Textile & Industries Limited (Related company by Director)

8. The Company has not entered in to any long term contracts including derivatives and there are no outstanding obligations, and there are no foreseeable losses on these as at the year end.

9. The Company is not liable to spend any amount as per Section 135 of the Companies Act, 2013 for the year ended 31-Mar-2015..

10. There are no amounts to be transferred to Investor Education and Protection Fund as at the year ended 31-Mar-2015.

11. Previous year figures have been regrouped wherever necessary to conform to current year classifications.


Mar 31, 2014

1. As per the Sanctioned Scheme of Arrangement by the High Court of Madras dated 22/04/2010 the management has implemented all the terms of the Scheme. SEBI has approved the Relaxation of Rule 19 (2) (b) of the Securities Contracts (Regulation) Rules, 1957 of Resulting Companies'' during March, 2013. The Listing / Trading of Resulting Companies'' have been complied with. Upon completion of formalities, the change in Directorship and inter se transfer of shares among the Promoters have been complied with.

2. Long Term Borrowings: Unsecured

The company was receiving the loans from the Promoters individually and through their group companies since 1994, to meet the requirements of rehabilitation schemes submitted to BIFR. As per the Sanctioned Scheme of Arrangement of Hon''ble High Court of Madras the company has recorded a sum of Rs.3800 lakhs as unsecured loan due to promoter group. The Company has settled the entire loan with liquidated damages of Rs.2037.10 lakhs..

3. Binny Engineering Limited (BEL)

During the year the Company has disinvested the shares in BEL and the resultant loss on sale of shares has been accounted for as exceptional item and the Loan & Advances given to BEL was also written off. As at the balance sheet date, there is no subsidiary company.

4. Contingent Liabilities

No provision is considered necessary in respect of the following contingent liabilities as the management is hopeful of getting relief / succeeding in the appeals:

(Rs. In Lakhs) 31-03-2014 31-03-2013

a) Electricity charges on 117.50 117.50 revision of Tariff rates for the period from 1-12-82 to 31-12-87 contested by the company, the recovery of which is stayed by the Hon''ble High Court of Madras

b) Estimated surcharge on 729.69 700.31 belated payment above up to 31/3/2014

c) Claim for back wages in Liability, if any respects of various not ascertainable disputes

d) Income Tax demand for Asst. 19.21 19.21 Year 2008-09 (pending before Chennai ITAT)

e) Income Tax demand for Asst. 11464.23 11464.23 Year 2010 - 2011 (pending before CIT (A), Chennai)

f) Wealth Tax Demand for Asst. NIL 2553.77 year 1993-94 to 2010-11

5. Other Moneys for which the company is contingently liable

a) Claims against the company not acknowledged as Debts 131.32 131.32

6. During the year the company has entered into MOU for sale of land, held as stock in trade and received a sum of Rs.6057.63 lakhs as advance. The transfer of title, settlement of employees occupying some portion of the land, etc are under progress. Upon receipt of sale consideration and transfer of title to the buyers the said amount shall be recoginised as income. Pending transfer of title the entire amounts were shown as Other long term liabilities as on 31st March, 2014.

7. The company reviewed the deferred tax assets and liabilities as at the year end. The timing differences relates mainly to depreciation and carry forward losses for the period up to 31-03-2014 resulting in a Net Deferred Tax asset. As a prudent measure, this net deferred tax asset has not been recognized in the accounts.

8. a. The company has received wealth tax demand from AY 1993-94 to AY 2010-11 of Rs.2553.78 lakhs for which the company has filed appeals with ITAT, Chennai except for the year AY 2004- 05. Out of these demands a sum of Rs.710.09 lakhs was paid by the erstwhile Binny Karnataka Ltd for the assets taken over by them and a sum of Rs.866.44 lakhs was provided for in the books during the year ended 31st March, 2010. For the balance demand of Rs.977.24 lakhs with the wealth tax demands for AY 2011-12 to 2013-14 amounting to Rs.83.82 lakhs (total demand of Rs.1061.06 lakhs) was provided during this year and shown as exceptional item in Note 24. Wealth-tax liability for the Asst year 2014-15 amounting to Rs.27.92 lakhs was included in Rates & Taxes. The entire wealth tax demands were paid to the Department and the Company has paid a sum of Rs. 313.02 lakhs in excess of demands raised by the Department which was shown as ''Wealth-tax paid under Protest'' under ''Note 17 - Other Current Assets''

b. Finance cost includes Rs.197.57 lakhs Interest levied on the above wealth tax demands and Rs. 3.95 lakhs for Income-tax dues by the Income-tax Department and the same was paid by the company.

c. The company has received Income Tax demand for Asst. year 2008 - 09 Rs.19.21 lakhs which is disputed before ITAT, Chennai. The Company has also received Income Tax demand for Asst. Year 2010 - 2011 demanding a sum of Rs.11464.23 Lakhs, additions were made on flimsy grounds, and company has filed appeals before CIT (A). Considering the company''s chance of success in appeal no provision has been made in the accounts. The Company has also filed a writ before the High Court and the HC has stayed the demand.


Mar 31, 2013

1. As per the Sanctioned Scheme of Arrangement by the High Court of Madras dated 22/04/2010 the management has implemented all the terms of the Scheme. SEBI has approved the Relaxation of Rule 19 (2) (b) of the Securities Contracts (Regulation) Rules, 1957 of Resulting Companies'' during March, 2013. The Listing / Trading of Resulting Companies'' shares are under process. Upon completion of formalities, the change in Directorship and interse transfer of shares among the Promoters shall be complied with.

2. Revaluation Reserve is as per the Scheme of Arrangement Sanctioned by the High Court of Madras. The outstanding Revaluation Reserve Rs.4906.62 lakhs (P.Y. 4910.50 lakhs) represents the adjusted amount of fixed assets (Land) revalued as per the Sanctioned Scheme effective from 01.01.2010.

As per the MOU entered into with workers during the year 1000 sq.ft. of land (P.Y. 1500 sq. ft) has been transferred / sold to the workers as agreed. The revaluation reserve on these sales of land has now been reduced from the Fixed Assets and Revaluation Reserve account.

3. Long Term Borrowings: Unsecured

The company was receiving the loans from the Promoters individually and through their group companies since 1994, to meet the requirements of rehabilitation schemes submitted to BIFR. As per the Sanctioned Scheme of Arrangement of Hon''ble High Court of Madras the company has recorded a sum of Rs.3998.62 lakhs as unsecured loan due to promoter group. The balance sum of Rs.100.20 lakhs has been received from promoters group are shown separately, for which the confirmation of balance are pending. All the loans are interest free and repayable on demand.

4. Binny Engineering Limited (BEL)

Investment & Advances to subsidiary company - BEL

The investment in subsidiary are considered to be long term in nature. The Management has not provided for diminution in value for the carrying amount as at the balance sheet date.

The company has advanced a sum of Rs.1148.52 lakhs (Previous Year Rs.435.49 lakhs) to Binny Engineering Limited for meeting their liabilities such as interest on PF, ESI contribution, Sales Tax etc. Considering the advances are recoverable in the ordinary course of business, the Management decided to carry these amounts at cost and no provision has been made.

5. Contingent Liabilities

No provision is considered necessary in respect of the following contingent liabilities as the management is hopeful of getting relief / succeeding in the appeals:

31.03.2013 31.03.2012

(Rs. Lacs)

a) Electricity charges on revision of Tariff rates for the period 117.50 117.50 from

1-12-82 to 31-12-87 contested by the company, the recovery of which is stayed by the Hon''ble High Court of Madras

b) Estimated surcharge on belated payment above upto 700.31 672.11 31/03/2013

c) Claim for back wages in respects of various disputes Liability, if any, not ascertainable

d) Income Tax demand for Asst. Year 2008-09 19.21 19.21

e) Wealth Tax Demand for Asst. year 1993-94 to 2010-11 2553.77 2553.77

f) Income Tax demand for Asst. Year 2010 - 2011 11464.23 Nil

6. Other Moneys for which the company is contingently liable

a) Claims against the company not acknowledged as Debts 131.32 156.43

7. Balances in Trade receivable, Trade payable and Loans and Advances are subject to confirmation/ reconciliation. However, in the opinion of the Management, all current assets, debtors and loans/ advances would in the ordinary course of business realize at the value stated.

8. To comply with the Accounting Standard - 22 - Accounting for Taxes on income, the company reviewed the deferred tax assets and liabilities. The timing differences relates mainly to depreciation and carry forward losses for the period up to 31-03-2013 resulting in a Net Deferred Tax asset. As a prudent measure, this net deferred tax asset has not been recognized in the accounts.

9. a. The company has received wealth tax demand for the Asst. Year 2004-05 to 2010 - 2011

Rs.1060.18 lakhs against which the company has filed appeals with CWT (A). A/Y 1993-94 to 2003-04 Rs.1493.59 lakhs against the company has filed appeals with ITAT, Chennai. Against these demands a sum of Rs.648.66 lakhs has been paid under protest. Considering the company''s chance of success in appeal no provision has been made in the accounts.

b. The company has received Income Tax demand for asst. year 2008 - 09 Rs.19.21 lakhs which is disputed before CIT (A). Company also received Income Tax demand for Asst. Year 2010 - 2011 demanding a sum of Rs.11464.23 Lakhs, additions were made on flimsy grounds, and company has filed appeals before CIT (A). Considering the company''s chance of success in appeal no provision has been made in the accounts.

10. Related Party Disclosure (a) List of Related Parties

(i) Parties where control exists Subsidiary

Binny Engineering Limited (BEL)

(ii) Other related Parties with whom transactions have taken place during the year Associates

S.V. Sugar Mills Ltd (SVSM)

The Thirumagal Mills Ltd (TML)

Mohan Breweries & Distilleries Ltd (MBDL) TCP Ltd S V Global Mill Ltd. (SVG)

Binny Mills Ltd (BML)

(iii) Key Management

Personnel M. Ethiraj

E. Shanmugam M. Nandagopal V.R. Venkataachalam Arvind Nandagopal


Mar 31, 2012

Terms of Issue and redemptions of Cumulative Redeemable Preference Shares (CRPS):

Subsequent to the reduction as per the Scheme of Arrangement, the remaining issued CRPS and their respective redemption details are under:

The above CRPS are allotted to the promoters, their nominees and bodies corporate against their unsecured loan brought into the Company to meet out the commitments under the sanctioned scheme of BIFR and other statutory liabilities and also in terms of the Scheme of Arrangement sanctioned by the High Court of Madras

* Redemption due on 30.9.2010, 30.6.2011 & 31.1.2012 have been extended till 30.9.2015, 30.6.2016 & 31.1.2017 respectively Details of shares held by shareholders holding more than 5% of the aggregate shares of the Company:

1. As per the Sanctioned Scheme of Arrangement by the High Court of Madras dated 22/04/20I0 the management has implemented all the terms of the Scheme. The Listing / Trading of Resulting Companies Shares are under process and the Resulting Companiesfjapplications for relaxation of Rule I9 (2) (b) of the Securities Contracts (Regulation) Rules, I957 are presently pending with SEBI. Upon completion of formalities, the change in Directorship and interse transfer of shares among the Promoters shall be complied with.

2. Revaluation Reserve is as per the Scheme of Arrangement Sanctioned by the High Court of Madras. The outstanding Revaluation Reserve Rs.49I0.50 lakhs (PY. 49I6.32 lakhs) represents the adjusted amount of fixed assets (Land) revalued as per the Sanctioned Scheme effective from 0I.0I.20I0.

As per the MOU entered into with workers during the year I500 sq.ft. of land (PY. 6I500 sq. ft) has been transferred / sold to the workers as agreed. The revaluation reserve on these sales of land has now been reduced from the Fixed Assets and Revaluation Reserve account.

3. Long Term Borrowings: Unsecured

The company was receiving the loans from the Promoters individually and through their group companies since I994, to meet the requirements of rehabilitation schemes submitted to BIFR. As per the Sanctioned Scheme of Arrangement the company has recorded a sum of Rs.3892.92 lakhs as unsecured loan due to promoter group. The balance sum of Rs.I00.20 lakhs has been received from promoters group are shown separately, for which the confirmation of balance are pending. All the loans are interest free and repayable on demand.

4. Binny Engineering Limited (BEL)

Investment & Advances to subsidiary company - BEL

The investment in subsidiary are considered to be long term in nature. The Management has not provided for diminution in value for the carrying amount as at the balance sheet date.

The company has advanced a sum of Rs.435.49 lakhs (Previous Year Rs.288.94 lakhs) to Binny Engineering Limited for meeting their liabilities such as interest on PF, ESI contribution, Sales Tax etc. Considering the advances are recoverable in the ordinary course of business, the Management decided to carry these amounts at cost and no provision has been made.

5. Contingent Liabilities

No provision is considered necessary in respect of the following contingent liabilities as the management is hopeful of getting relief / succeeding in the appeals:

6. Balances in Trade receivable, Trade payable and Loans and Advances are subject to confirmation/ reconciliation. However, in the opinion of the Management, all current assets, debtors and loans/ advances would in the ordinary course of business realize at the value stated.

7. a. To comply with the Accounting Standard - 22 - Accounting for Taxes on income, the company reviewed the deferred tax assets and liabilities. The timing differences relates mainly to depreciation and carry forward losses for the period up to 3I-03-20I2 resulting in a Net Deferred Tax asset. As a prudent measure, this net deferred tax asset has not been recognized in the accounts.

b. The company has received wealth tax demand for the Asst. Year 2005-06, 2006-07, 2007-08, 2008 - 09, 2009-I0 & 20I0 - 20II for Rs.977.24 lakhs against which the company has filed appeals with CWT (A). Against these demands a sum of Rs.535.I3 lakhs has been paid under protest. Considering the company's chance of success in appeal no provision has been made in the accounts.

c. The company has received Income Tax demand for asst. year 2008 Q 09 Rs.I9.2I lakhs which is disputed before CIT (A). Considering the company's chance of success in appeal no provision has been made in the accounts.

8. Related Party Disclosure

(a) List of Related Parties

(i) Parties where control exists

Subsidiary

Binny Engineering Limited (BEL)

(ii) Other related Parties with whom transactions have taken place during the year Associates

S.V Sugar Mills Ltd (SVSM)

The Thirumagal Mills Ltd (TML)

Mohan Breweries & Distilleries Ltd (MBDL)

TCP Ltd

S V Global Mill Ltd. (SVG)

Binny Mills Ltd (BML)

(iii) Key Management Personnel

M. Ethurajan

E. Shanmugam

M. Nandagopal

VR. Venkataachalam

Arvind Nandagopal

9. Previous year figures have been regrouped wherever necessary to conform to current year classifications.


Mar 31, 2010

1. BIFR sanctioned a Rehabilitation Scheme to Binny Limited on 22/10/2003. BIFR passed an order on 26/12/06 stating that the company is out of purview of BIFR which order was challenged before Honble High Court of Madras by employees union. The High Court (by order dated 07/08/2008) "made it clear that the company is ceased to be a sick industrial undertaking with effect from 30/09/2005" based on the joint memo filed by company and employees union. During this period the company has demerged into three companies as here under.

2. The Scheme of Arrangement was placed before the shareholders at their EGM held on 10.03.2010. The High Court of Judicature at Madras has approved the Scheme of Arrangement as per Section 391 & 394 along with capital reduction as per Section 101 vide order dated 22.04.2010. The order of the Court was received by the company on 07.05.2010. As per the Court direction the certified copy of the order was filed with ROC on 08.05.2010 which is the effective date of the Sanctioned Scheme of arrangement. As per the sanctioned Scheme of arrangement the Appointed date is 1st January 2010, i.e. date on which the demerger related entries have been given effect in the books of the companies. However the increase in authorized share capital, issue of preference share capital, reduction in preference share capita! have been done at the Board Meeting held on 12.05.2010, pending these formalities the preference share capital pending allotment and Pending Reduction in preference share capital have been accounted for in the Balance Sheet as on 31.03.2010.

3. In terms of above Scheme of arrangement under section 391 to 394 of the Companies Act, 1956 between Binny Limited and two other companies, the Binny Limited (remaining company after demerger) has reorganized and segregated by way of demerger into two separate companies viz. S V Global Mill Ltd (Resulting Company I) and Binny Mills Ltd (Resulting Company 2). All the assets and liabilities are transferred and shares were allotted as per the sanctioned order of Honble High Court of Judicature at Chennai dated 22.04.2010,

As per the said scheme: in consideration of demerger, the shareholders in Binny Ltd shall get in the case of Resulting Company-1, in the ratio of

a. 7 (seven) equity shares in the Resulting Company-I of face value of Rs.5/- each credited as fully paid up for every 7 (seven) equity shares of Rs.5/- each fully paid-up.

b. I (one) 9.75% Cumulative Redeemable Preference Share of face value of Rs.5/- each credited as fully paid up for every 30 (Thirty) 9.75% Cumulative Redeemable Preference Shares of Rs.5/- each fully paid-up.

c. 138 (One hundred and thirty eight) 9% Cumulative Redeemable Preference Share of face value of Rs.5/- each credited as fully paid up for every 3,125 (Three thousand one hundred and twenty five) 9% Cumulative Redeemable Preference Shares of Rs.5/- each fully paid-up

As per the said scheme: in consideration of demerger, the shareholders in Binny Ltd shall get in the case of Resulting Company-2, in the ratio of

a. I (one) equity share in the Resulting Company of face value of Rs. 10/- each credited as fully paid up for every 7 (seven) equity shares of Rs.5/- (Rupees five) each fully paid-up.

b. 15 (Fifteen) 9.75% Cumulative Redeemable Preference Share of face value of Rs.5/- (Rupees five) each credited as fully paid up for every 30 (Thirty) 9.75% Cumulative Redeemable Preference Shares of Rs.5/- (Rupees five) each fully paid-up.

c. 1,631 (One thousand six hundred and thirty one) 9% Cumulative Redeemable Preference Share of face value of Rs.5/- each credited as fully paid up for every 3,125 (Three thousand one hundred and twenty five) 9% Cumulative Redeemable Preference Shares of Rs.5/- each fully paid-up

4. As per the sanctioned Scheme of Arrangement the company has cancelled 6,27,200 Number of 9.75% Cumulative Redeemable Preference Shares and 30,51,20,658 Number of 9% Cumulative Redeemable Preference Shares and issued further fresh 7,13,04,713 9% Cumulative Redeemable I Preference Shares to the existing Preference Shareholders with the same terms and conditions. As per the Scheme of Arrangement the reduction in paid up preference share capital has been issued in the Resulting Companies with the same terms and conditions. The allotment of fresh preference share capital was done on 12.05.2010.

5. In terms of clause 8.2 of the sanctioned Scheme and in accordance with Section 391 and Section 394 of the Companies Act 1956, the Board of Directors carried out:

a) revaluation of B&C Mill compound property in; to Rs.2994300 thousands, (book value Rs. 194 thousands), the difference being accounted as Revaluation Reserve: and

b) writing off of Miscellaneous and P & L Debit balances amounting to Rs.2478627 thousands (as per clause 8.3 of the scheme) which was adjusted against the above Revaluation Reserve:

Based on the above, the final accounts have been revalued and increased to Rs.2994300 thousands as against the Present book value of Rs 194 thousands . The difference amount Rs.2994106 thousands has been transferred to revaluation Reserve account. Against this reserve the entries relating to the amount brought in by promoters, towards expenses and unsecured Loans were adjusted to the extent of Rs.591402 thousands. Expenses recognized at the time of demerger amounting to Rs.384335 thousands and P & L account Debit balances amounting to Rs. 1502890 thousands have also been adjusted against the above revaluation reserve.

6. Appreciation in land value credited to Capita! Reserve during 1981 - 82 on their conversion into stock in trade remaining outstanding as at the date of demerger has been reversed to bring the asset / stock in trade cost. The notional appreciation in the value of land and buildings held as stock in trade taken to credit in P&L a/c in earlier years Rs.78254 thousands has also got reversed.

7. Unsecured Loans

The company was receiving the loans from the Promoters individually and through their group companies since 1994, to meet the requirements of rehabilitation schemes submitted to BIFR. During this period the Unsecured Loans were reconciled and the preference share capital were issued as per the sanctioned Scheme of Arrangement The remaining unsecured loans as on 31.03.2010 is Rs.382261 thousands represents 372241 thousands accounted as per the scheme 5.1.2 and the balance are relating to earlier years.

8. Binny Engineering Limited (BEL)

The investment in Binny Engineering Limited Rs.287481 thousands is shown at cost. The company has advanced a sum of Rs.22136 thousands (Rs.4636 thousands) to Binny Engineering Limited for meeting their liabilities such as interest on PF, ESI contribution etc. Considering the investments are long term in nature and advances and recoverable in the ordinary course of business these amounts are carried at cost.

9. Balances in sundry debtors, sundry creditors and Loans and Advances are subject to confirmation/ reconciliation. How- ever, in the opinion of the Management, all current assets, debtors and loans/ advances would in the ordinary course of business realize at the value stated.

10. Sundry creditors outstanding Rs.78239 thousands as on 31/03/2010 include dues to creditors other than Micro, Small and Medium Enterprise There is no principal or interest due or unpaid thereon to any suppliers of Micro, Small and Medium Enterprises as at year end.

11. The Company has already fully provided for loss on account of impairment of assets as required by AS 28 amounting to Rs.! 76754 thousands (Previous Year 176754 thousands),

12. No provision for income tax is considered necessary for the year in view of brought forward losses.

All the wealth tax pending cases were disposed off by High Court. As per the orders of High Court the AO has completed the Assessments and raised demand of Rs.86644 thousands which was paid by the company and disputed before CWT(A). The dispute is for and upto the Assessment Year 2004 - 05. The company has filed its Wealth Tax Return for later years with Nil taxable wealth as in previous years. The Department has not ralsed any demands till 31.03.2010. As per the sanctioned scheme of demerger some of the assets got transferred to Resulting Company I & Resulting Company 2 as at 31.03.2010. the management is of the view that there are no wealth tax liability as on 31.03.2010.

13. To comply with the Accounting Standard - 22 - Accounting for Taxes on income, the company reviewed the deferred tax assets and liabilities. The timing difference relates mainly to depreciation and carry forward losses for the period up to 31 -03-2010 resulting in a Net Deferred Tax asset. As a prudent measure, this net deferred tax asset has not been recog- nized in the accounts.

14. Related Party Disclosure

(a) List of Related Parties

(i) Parties where control exists Subsidiary

Binny Engineering Limited ii) Other related Parties with whom transactions have taken place during the year

Associates

S.V. Sugar Mills Ltd

The Thirumagal Mills Ltd

Mohan Breweries & Distilleries Ltd

TCP Ltd

S V Global Mill Ltd. .. with effect from 01.01.2010

Binny Mills Ltd

(iii) Key Management Personnel

M. Ethurajan

M.E. Shanmugam

M. Nandagopal

VR. Venkataachalam

Nataraja.1 Nandhagopal

Arvind Nandagopil



Notes relating to segment



(i) Business Segments

The company has considered business segments as the primary segment for disclosure. The business segments are textiles, services and properties. Textile segment comprise of Trading Agencies. Services consist of shipping and container Freight Station activities.

(ii) Geographical Segments

The geographical segments considered for disclosure are India and Rest of the world. All the manufacturing facilities and sales offices are located in India. There are no sales to the rest of the world.

(iii) Segmental Assets includes all operating assets used by respective segment and consists principally of operating cash, debtors, inventories and Fixed Assets net of allowances and provisions. Segmental liabilities include all operating liabilities and consists primarily of creditors and accrued liabilites. Segment assets and liabilities do not include Income Tax assets and liabilities.

15. Previous period figures have been regrouped wherever necessary. The figures in brackets relate to previous period. Cur- rent period figures are for 6 months and hence not comparable with those of the previous accounting year of 18 months. Current period figures consist of 3 months before demerger and 3 months after demerger and hence not strictly compa- rable. All the figures are rounded off to nearest 1000s

 
Subscribe now to get personal finance updates in your inbox!