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Notes to Accounts of FE (India) Ltd.

Mar 31, 2015

1. Contingent Liabilities and Provisions

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

There is a claim against company arised from arbitation award in favour of a shipping company by the arbitation authority at Singapore amounting to USD 1,62,027.75 plus interest of USD 7657.48 plus arbitation costs of SGD 54,225.86. (INR Value as per 31/03/2015 exchange rates Rs 1,31,51,319.43. This claim is being defended in Delhi High Court by the company. The company is confident to defend this, so no iability is being provided.

2. Related Party Disclosures

As per accounting standard 18 on "Related party Disclosure" issued by the Institute of Chartered Accountants of India the disclosure of transactions with the related party is as under:

Name of Party Nature of Relationship



Mrs Abhilasha Agarwal Director/Promoter

Mr. Raja Ram Chandghotia COO

Mrs. Deepti Dabral Company Secretary

Mr. Praveen Chowdhary CFO

Mrs. Rekha Chowdhary Key Managerial personal relative

Key Managerial

Mrs. Rashmi Jain personal relative

Muren Impex Pvt. Ltd. Common Director

Whitewood Trading Pvt. Ltd. Controlled by Promoter's Relative

Kiran Tradewings Pvt Ltd Substantial Interest

Andaz Mercantile Pvt. Ltd. Promoter Group

E commodities Ltd. Common Director

FE Aagrochem Pvt. Ltd. Controlled by Promoter

Name of Party Nature of Transactions

Remunaration & Other Expenses Mrs Abhilasha Agarwal on behalf

Mr. Raja Ram Chandghotia Remuneration

Mrs. Deepti Dabral Remuneration

Mr. Praveen Chowdhary Remuneration

Mrs. Rekha Chowdhary Professional Fees

Mrs. Rashmi Jain Rent Payments

Muren Impex Pvt. Ltd. Sale & Purchase

Rent Payments and Payments on Whitewood Trading Pvt. Ltd. behalf

Payments on behalf, Loan

Kiran Tradewings Pvt Ltd received and and given

Payments on behalf, Loan recd Andaz Mercantile Pvt. Ltd. and and given

E commodities Ltd. Sales

Payments on behalf ,Loan recd FE Aagrochem Pvt. Ltd. and and given

3. The LIC Policies shown under the head 'Investments' amounting to Rs. 35 lacs had been taken in the name of whole time director on her life by the company out of its funds through its bankers. The WTD is also promoter of the company. The company was the intended beneficiary, however it could not be mentioned on policies at the time of issuance of policies. The Director has given her consent for unconditional absolute assignment in favour of company and to deal with these policies as per free will of the company. The Company is in process of completing the assignment to register itself ultimate beneficiary of the policies.

4. In the current financial year the company has considered a stock loss recoverable of Rs 158.75 lacs from one of its clearing agent and his account represent net balance of Rs. 105.52 lacs debit as on 31/03/2015 due to this claim.

5. Information pursuant to the provisions of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006.

As per Information obtained from the parties,none of the parties are covered under the Micro, Small and Medium Enterprises Development Act, 2006.Hence no disclosure is required.

6. Segment Reporting

Company is operating in a single segment environment; there is no separate reportable segment which contributes more than 10% in commercial/economic activities of the company(i.e. assets, liabilities, revenue, losses etc.), than its main business activities i.e. trading in agriculture product. Hence reporting under Accounting standard-17 "Segment Reporting" is not applicable.

7. The accounts of certain Sundry Debtors and Creditors, Advances for supplies and are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year's financial statements.

In the opinion of the management, the current assets, loans and advances except the accounts classified under doubtful catagory are expected to realize at least the amount at which they are stated , if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the books of accounts.

8. The company has not spent any amount on CSR activities during the period.

9. The Current Year refers to the period January 1 2014 to March 31, 2015. (Previous year refers to October 01, 2012 to December 31, 2013)

10. The previous year figures have been regrouped, rearranged and reclassified wherever necessary to conform to this year's classification.


Dec 31, 2013

1 Corporate Information

FE (INDIA) Limited formely known as Financial Eyes (India) Ltd is a company registered under the Companies Act,19S6 listed on Bombay Stock Exchange. The company mainly engaged into the export of food agric commodities and food grains such as maize, Rice (both long rain and parboiled), sorghum etc. Gradually the basket of Items being dealt by the company is growing.

1.1.1 Money received against share warrants

a) Terms & Conditions : Covertible within IB months from date of allottment i.e.22.07.2013 into equity shares at the discretion of the warrant holder (no voting rights/dividend rights)

b) Number of shares proposed to be issued: 4347826 Equity Shares of Rs.10/- each.

c)The amount of premium : Rs.24.S0/- per shares minimum (as per the minimum rate of Rs.34.50/- approved)

d) The period before which shares to be allotted : 21.01.2015

e) Whether the company have suffiecient authorized share capital amount on allottment of shares : Yes

f) Interest accrued on amount due for refund: Nil

g) The period for which share application money has been pending beyond the period of allottment as mentioned in the share application from along with the reasons for such share application money being pending : Not Applicable

1.2 Contingent Liabilities and Provisions

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.3 Information pursuant to the provisions of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006

As per Information obtained from the parties,none of the parties are covered under the Micro, Small and Medium Enterprises Development Act, 2006.Hence no disclosure is required.

1.4 Segment Reporting

Company is operating in a single segment environment; there is no separate reportable segment which contributes more than 10% in commercial/economic activities of the company(i.e. assets, liabilities, revenue, losses etc.), than its main business activities i.e. trading in agriculture product. Hence reporting under Accounting standard-17 "Segment Reporting" is not applicable.

1.5 The accounts of certain Sundry Debtors and Creditors, Advances for supplies and are subject to confirmation j reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year''s financial statements.

1.6 The Current Year refers to the period October 01, 2012 to December 31, 2013. (Previous year refers to October 01, 2011 to September 30, 2012)

1.7 The previous year figures have been regrouped, rearranged and reclassified wherever necessary to conform to this year''s classification.


Sep 30, 2012

1 Corporate Information

FE (INDIA) Limited formely known as Financial Eyes (India) Ltd is a company registered under the Companies Act,1956 listed on Bombay Stock Exchange. Initially the company engaged into the export of food agric commodities and food grains such as maize, Rice (both long rain and parboiled), sorghum etc. Gradually the basket of commodities being dealt by the company has been expanded to include coffee, spices, imports & exports of raw sugar, PVC and other commodities.

2.1.1 Share application money pending allotment

- Share Application Money represents amount received against "Fully Convertible Warrants" pending preferential allotment to the promoters of the Company in terms of Board Resolution dated May 15, 2012, subject to the approval of the members / shareholders.

- The Share Application Money has been received by the Company on September 29, 2012 which have been classified as Cheques in Hand - refer note 3.5.3 and 3.21

2.2.1 Deferred Tax Asset / Liability (NET)

As per the requirement of the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the net Deferred Tax Liability charged to Profit during the year is ` 944,938 [Previous Year–Deferred Tax Liability debited ` 987,803]. The year-end position of Deferred Tax Liability and Asset is given below:

Details of Loans

1. Working capital loan comprises of ` 190,277,994 from State Bank of India and ` 655,004,700 from Punjab National Bank in the current year and ` 178,144,307 and ` 289,335,227 in the previous year respectively is secured against Hypothecation of Stocks, Book Debts and Movable Fixed Assets of the Company, both present and future. The loan consists of (i) Packing Credit from bank for a term of six months to year carrying interest Libor plus applicable spread ranging from 1.45% to 3.5% P.a.(ii) Cash credit from bank repayable on demand and carries Interest @ 12% to 15% p.a.

2.Term loan obtained from various financial institutions carrying interest ranging from 8.5% - 16 % is secured against the hypothecation of specific vechile financed out of the proceed of the loan amount.

2.3 Contingent Liabilities and Provisions

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.4 Related Party Disclosures

As per accounting standard 18 on "Related party Disclosure" issued by the Institute of Chartered Accountants of India the disclosure of disclosure of transaction with related party is as follows:

a) Related Party where control exists:

FE (Singapore) Pte. Limited- Subsidiary Company

b) Person having Substantial Interest in the company

Andaz Mercantile Pvt. Ltd- Associate Company

c) Key Managerial Personnal

Ms Abhilasha Agarwal – Whole Time Director

Mr Ravi Kant Joshi – Director

Mr Praveen Chowdhary – Chief Financial Officer

Mr Raja Ram Chandghotia – Chief Executive (Operations)

Mr K. C. Mathur – Chief Executive Officer

2.5 Information pursuant to the provisions of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 During the year company has not paid any interest in terms of the section 18 of the above mentioned act.

No principal amount or interest amount are due at the end of this accounting year which is payable to any Micro, Small or Medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

2.6 Segment Reporting

Company is operating in a single segment environment; there is no separate reportable segment which contributes more than 10% in commercial/economic activities of the company(i.e. assets, liabilities, revenue, losses etc.), than its main business activities i.e. trading in agriculture product. Hence reporting under Accounting standard-17 "Segment Reporting" is not applicable.

2.7 The accounts of certain Sundry Debtors and Creditors, Advances for supplies and are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year''s financial statements.

2.8 Cheques in hand include cheques received agsint issue of ''Fully Convertible Warrants" pending preferential allotment to the promoters of the Company in terms of meeting of the board of Directrs held on May 15, 2012. The said allotment is however subject to the approval of shareholders in a General Meeting.

2.9 Leases

The company is a lessee under various operating leases. Rental expenses for the operating leases for the years ended September 30,2012 and September 30, 2011 are Rs. 13,157,397 and Rs. 61,51,567 respectively.

2.10 Till the year ended 30 September 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 30 September 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year''s classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

2.11 The Current Year refers to the period October 01, 2011 to September 30, 2012. (Previous year refers to July 01, 2010 to September 30, 2011)


Sep 30, 2011

1. Accounting Year and Previous Year Comparatives

The Current Year refers to the period commencing from 1st July, 2010 and ending on 30th September, 2011. (Previous year refers to period commencing from 1st April, 2009 and ending on 30th June, 2010).

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances): Rs Nil (Previous Year Rs. Nil).

3. Proposed Dividend:

In its meeting held on November 29, 2011, the Board has recommended a dividend of 2.5% i.e. Rs0.25 per Equity Shared of Rs10 Each) for the period ended September 30, 2011

4. Deferred tax Assets (Liability)

As per the requirement of the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the net deferred tax liability charged to profit during the year is Rs 987,803/- [Previous Year - Deferred Tax Liability debited Rs 515,543/-]. The break-up and movement of deferred tax assets and liabilities into major components is given below:

*The financial year followed by the company does not commensurate with the financial year prescribed under the Income Tax Act, 1961. Therefore, timing difference has been considered only in respect of fixed assets and other timing differences have been ignored.

5. Contingent Liabilities not provided for in respect of:

Current Year Previous Year Particulars (Rs In lacs) (Rs In lacs)

a) Claims against the company not acknowledged as debts NIL NIL

b) Corporate guarantees given / securities provided to banks / financial institutions against NIL NIL credit facilities extended to other bodies corporate c) Bills purchased and discounted NIL NIL

d) Other matters NIL NIL

6. The accounts of certain Sundry Debtors and Creditors, Advances for supplies and are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year's financial statements.

In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the books of accounts.

07. Related Party Disclosure

As per accounting standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India the disclosure of transactions with the related party is as under:

a) Related Party where control exists

Ms. Abhilasha Agarwal - (Whole Time Director)

Andaz Mercantile Pvt. Ltd.-(AssociateCompany)

- FE Singapore Pte Ltd. - (Associate Company)

b) Key Managerial Personnel

- Mr. Ravi KantJoshi-(Director)

- Mr. P. Chowdhary-(Chief Financial Officer)

- Mr. Raja Ram Chandghotia-(Chief Operating Officer)

- Mr. K. C. Mathur - (Chief Executive Officer)

08. Information pursuant to the provisions of Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 During the year company has not paid any interest in terms of the section 18 of the above mentioned act.

No principal amount or interest amount are due at the end of this accounting year which is payable to any Micro, Small or Medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

09. Segment Reporting: Company is operating in a single segment environment; there is no separate reportable segment, which contributes more than 10% in commercial/economic activities of the company (i.e. assets, liabilities, revenue, losses etc.), than its main business activities i.e. trading in agriculture product. Hence reporting under Accounting Standard - 17 "Segment Reporting" not applicable.

10. Previous year's figures/disclosures have been reclassified/regrouped wherever necessary to conform/make more suitable to this year's classification/disclosure/presentation.

 
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