Mar 31, 2023
Description of the nature and purpose of each reserve within equity is as follows:-
a) Capital Reserve - Reserve is created on business combination as per statutory requirement.
b) Preference Share Redemption Reserve - Reserve is created for redemption of preference shares as per statutory requirement.
c) General Reserve - General Reserve are free reserves of the company which are kept aside out of company''s profits to meet the future requirements as and when they arise. The Company had transferred a portion of the Profit after Tax (PAT) to general reserve pursuant to the earlier provisions of Companies Act, 1956.
d) Retained Earnings - Retained Earnings are the accumulated profits earned by the Company and remaining undistributed as on date.
e) Other Comprehensive Income - Equity Instruments through Other Comprehensive Income (OCI) -This represents the cumulative gains and losses arising on fair valuation of equity instruments measured at fair value through other comprehensive income under an irrevocable option and remeasurement of Defined Benefit Obligation.
24.3- Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax laibilities relate to income tax levied by the same taxation authority.
26.1 - Details of Security Given for Loan
a) The working capital facilities from Punjab National Bank are secured/ to be secured by hypothecation of Tea Crop, Made Tea, Book Debts and all other Current Assets of the Tea Estates and guaranteed by a Director and are further secured/to be secured by way of Equitable Mortgage on immovable properties situated at the Tea Estates.
b) Working Capital Facilities from Other Banks, (except those availed by Tea Division of the Company from Punjab National Bank ) are secured/ to be secured by hypothecation of Company''s (other than Tea Division) entire current assets, both present and future, ranking pari passu inter-se, and are further secured/ to be secured by way of second charge on the property,Plant and Equipments of the Company (other than Tea Division) ranking pari passu inter-se.
26.2 - Details of Interest Rates on Short Term Borrowings
a) The Working Capital Facilities having interest rate varying between 7.50% p.a. - 11.60% p.a. are repayable on demand.
b) Short term loans from Body Corporates and Related Parties having 9.00%-10.50% p.a rate of i nterest.
c) Fixed Deposit from Public is having an interest rate of 8.00% p.a.
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity''s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets are transferred to receivables when the rights become unconditional and contract liabilities are recognised as revenue as and when the performance obligation is satisfied.
NOTE 40 - CONTINGENT LIABILITIES: A) Claims/Disputes/Demands not acknowledged as debts - |
||
Sl. Particulars No. |
As at 31st March 2023 |
As at 31st March 2022 |
a Sales Tax |
758.73 |
765.49 |
b Cess on Jute bags/Jute Twine |
7.32 |
7.32 |
c Cess and Excise on Captive Consumption |
11.33 |
11.33 |
d Service Tax |
38.67 |
141.35 |
e Income Tax |
113.88 |
113.06 |
f Provident Fund |
56.93 |
56.93 |
Note:- In respect of above, future cash flows are determinable only on receipt of judgements pending at various forums/authorities which in the opinion of the Company is not tenable and there is no possibility of any reimbursement in case of above. NOTE 41 - COMMITMENTS |
||
Particulars |
As at 31st March 2023 |
As at 31st March 2022 |
Estimated amount of contracts remaining to be executed on Capital Account and not provided for [Net of Advance of '' 6.40 Lakhs (P.Y. - '' 30.46 Lakhs)] |
16.00 |
41.07 |
41.1 For Lease commitments, refer Note 52(B)(a) and for derivatives contract refer Note 52(C )(b)
NOTE 42 - LEASES
42.1 - As Lessee
i) The lease liability is measured at the present value of remaining lease payments discounted using incremental borrowing rate at the date of initial application and right of use asset has been recognized at an amount equal to the lease liability plus prepaid rentals recognised in the Balance Sheet before the date of initial application, if any.
ii) Leases for which the lease term ends within 12 months of the date of initial application have been accounted as short term leases.
Further, refer Note 3.6: Significant Accounting Policies for detailed measurement and recognition principles on Leases.
The weighted average incremental borrowing rate applied to lease liabilities as at 1st April, 2019 is 10%.
The changes in the carrying value of right of use (ROU) assets for the year ended 31st March, 2023 are disclosed in Note 4
As per the requirement of Ind As -107 maturity analysis of lease liability have been shown under Note 52B(a).
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
Machinery Hire Charges and Rental expense recorded for short-term leases or cancellable in nature was '' 736.87 lakhs (P.Y. - '' 482.88 lakhs) and '' 34.64 lakhs (P.Y. - '' 41.39 lakhs) for the year ended 31st March, 2023 (Refer Note - 36).
42.2 - As Lessor
The company has given office premises under cancellable leases. The leasing arragements range between 3 years and 15 years generally or longer and are usually renewable by mutual consent on mutually agreeable terms. Initial direct costs for such leases are borne by the company and charged off to revenue. Lease rentals are recognised as income for '' 734.47 Lakhs during the year (P.Y. '' 702.68 Lakhs). The gross value and accumulated depreciation of such asset as at 31st March, 2023 was '' 16.57 Lakhs (P.Y. '' 16.57 Lakhs) and '' 4.66 Lakhs (P.Y. '' 4.42 Lakhs) respectively.
NOTE 43 - Revenue expenditure on Research and Development of '' 22.19 Lakhs (P.Y. '' 22.84 Lakhs) represents subscription to Tea Research Association.
The Company has compiled this information based on intimation received from the suppliers of their status as Micro or Small Enterprises and/or its registration with appropriate authority under the Micro, Small and Medium Enterprises Act, 2006 ("MSMED Act").
The Employee''s Gratuity Fund Scheme, a defined benefit plan, is administered by Life Insurance Corporation of India (LIC) and SBI Life Insurance Company Ltd. (SBI Life). LIC or SBI Life make payments to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment of an amount based on the respective employee''s salary and tenure of employment subject to a maximum limit as prescribed.
h) Asset-Liability Matching Strategy
The money contributed by the Company to the Gratuity Fund to finance the liabilities of the plan has to be invested.
The Employee''s Gratuity Fund Scheme, a defined benefit plan, is administered by the Life Insurance Corporation of India (LIC) and SBI Life Insurance Company Ltd (SBI Life). The Insurance Company in turn manages the funds as per the mandate provided to them by the Trustees. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy.
There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity and the level of under funding of the plan.
j) The estimates of future salary increases, considered in actuarial valuation, taken into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
NOTE 47 - Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmation/reconciliation and consequential adjustment, if any. Reconciliations are carried out on an on-going basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any material financial impact of such pending confirmation/reconciliation.
NOTE 50 - FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITES MEASURED AT AMORTISED COST
50.1 - The management assessed that the fair values of Loan given, cash and cash equivalents, other Bank balances, trade receivables, other financial assets, long term borrowings, trade payables, short term borrowings, and other financial liabilities approximates their carrying amounts.
50.2 - The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
NOTE 51 - FAIR VALUE HIERARCHY
The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement". An explanation of each level follows underneath the tables.
51.2 - The following are the judgements and estimates made in determining the fair value of the biological assets other than bearer plants that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its biological assets other than bearer plants into Level 2 in the fair value hierarchy, since no significant adjustments need to be made to the prices obtained from the local markets.
NOTE 52: FINANCIAL RISK MANAGEMENT
The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s financial risk management framework. The Company''s Audit Committee, is responsible for developing and monitoring the Company''s financial risk management policies. The Company''s financial risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate controls.
(A) Credit risk
Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets.
At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry practices and the business environment in which the Company operates.
Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties are banks and recognized financial institutions with high credit worthiness.
(i) Provision for expected credit losses
The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry practices and the business environment in which the Company operates.
For financial assets, a credit loss is the present value of the difference between:
(a) the contractual cash flows that are due to an entity under the contract; and
(b) the cash flows that the entity expects to receive
The Company recognises in profit and loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date in accordance with Ind AS 109.
In determination of the allowances for credit losses on trade receivables, the Company has used a practical experience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements.
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner.
The following table shows the maturity analysis of the Company''s derivative and non derivative financial liabilities based on contractually agreed undiscounted cash flows.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.
a) Interest rate risk:
Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference rates could have an impact on the Company''s cash flow as well as cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.
b) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognized underlying liabilities / assets and firm commitments. The Company''s policy is to hedge its exposures other than natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.
The Company''s objective when managing capital (defined as net debt and equity) is to safeguard the Company''s ability to continue as a going concern in order to provide returns to shareholders and benefit for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and strategic objectives of the Company.
NOTE 54 - SEGMENT REPORTING
54.1 - Information in accordance with the requirements of the IND AS - 108 on ''Segment Reporting'':-
The Company has identified four primary business segments viz :
i) Textile Manufacture and sale of yarn made out of Cotton and Man-made Fibre viz.,
Acrylic, Polyster, Viscose, Staple and Blends thereof.
ii) Tea Manufacture and sale of Tea
iii) Engineering (Micco) Manufacture and sale of Steel Structural, Pipes and equipments and Designing,
Supplying, Erectioning and Commissioning of projects on turnkey basis.
iv) Property Letting out property on rent
Segments have been identified and reported taking into account nature of products and services, the different risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with the following additional policies for segment reporting.
i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".
ii) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related asset and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".
54.4 - Other Disclosures
a) The Company''s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company is currently focused on four business groups : Textile, Tea, Engineering and Property. The Company''s organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.
b) The geographical information considered for disclosure are:
-Sales within India
NOTE 56 - OTHER STATUTORY INFORMATION
i) Details of Benami Property held - The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
ii) Relationship with Struck off Companies - The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956
iii) Registration of charges or satisfaction with Registrar of Companies (ROC) - The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) Details of Crypto Currency or Virtual Currency - The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) Utilisation of Borrowed funds and share premium - The Company have not advanced or loaned or invested funds, during the year, to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
vi) The Company have not received any fund, during the year, from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii) Disclosure in relation to undisclosed income - The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey) or any other relevant provisions of the Income Tax Act, 1961.
viii) Utilisation of Borrowing - The company has utilised the Borrowings from Banks and Financial Instituions for the purpose for which it was taken.
ix) Wilful Defaulter - The Company has not been declared as willfull defaulter by any Bank or Financial Institutions.
x) Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified persons - During the year the company did not provide any loans or advances (repayable on demand or without specifying any term or period of repayment) to specified person.
xi) Corporate Social Responsibility (CSR) - The average net profits made by the Company during the 3 immediately preceding financial years is negative, as such the Company did not spend any amount in CSR activities for the financial year 2022-2023.
xii) Compliance with number of layers of companies - The Company has complied with number of layers prescribed under clause (87) of Section 2 of Companies Act 2013 read with Companies (Restriction on number of layers) Rules 2017.
The current assets referred above are for Textile (GCM) and Engineering (Micco) Divisions of the Company. NOTE 57 - Previous years figures have been rearranged / regrouped wherever necessary.
Mar 31, 2018
Notes to the Standalone Financial Statements for the year ended 31st March 2018
Note 52: Financial Risk Management
The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s financial risk management framework. The Company''s Audit Committee, is responsible for developing and monitoring the Company''s financial risk management policies. The Company''s financial risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate controls.
(A) Credit risk
Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets.
At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry practices and the business environment in which the Company operates.
Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties are banks and recognized financial institutions with high credit worthiness.
(i) Provision for expected credit losses
The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry practices and the business environment in which the Company operates.
For financial assets, a credit loss is the present value of the difference between:
(a) the contractual cash flows that are due to an entity under the contract; and
(b) the cash flows that the entity expects to receive
The Company recognises in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date in accordance with Ind AS 109.
In determination of the allowances for credit losses on trade receivables, the Company has used a practical expedience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.
(ii) The movement of Trade Receivables and Expected Credit Loss are as follows :
(Rs. In lakhs)
Particulars |
As at 31st March 2018 |
As at 31st March 2017 |
As at 1st April 2016 |
Trade Receivables (Gross) |
10,105.47 |
10,522.24 |
12,161.94 |
Less: Expected Credit Loss |
831.71 |
886.24 |
965.52 |
Trade Receivables (Net) |
9,273.76 |
9,636.00 |
11,196.42 |
(iii) The movement of Security Deposit and Loss Allowance thereto are as follows:
(Rs. In lakhs)
Particulars |
As at 31st March 2018 |
As at 31st March 2017 |
As at 1st April 2016 |
Security Deposits (Gross) |
8,609.89 |
9,954.30 |
10,385.49 |
Less: Expected Credit Loss |
4,667.96 |
5,674.65 |
5,681.88 |
Security Deposits (Net) |
3,941.93 |
4,279.65 |
4,703.61 |
(iv) Reconciliation of Loss allowance provision
(Rs. In lakhs)
Particulars |
Trade Receivables |
Loans & Deposits |
Total |
Loss Allowance on 1st April 2016 |
965.52 |
5,681.88 |
6,647.40 |
Change in Loss allowance |
(79.28) |
(7.23) |
(86.51) |
Loss Allowance in 31st March 2017 |
886.24 |
5,674.65 |
6,560.89 |
Change in Loss allowance |
(54.53) |
(1,006.69) |
(1,061.22) |
Loss Allowance in 31st March 2018 |
831.71 |
4,667.96 |
5,499.67 |
(B) Liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements.
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner..
The following table shows the maturity analysis of the Company''s derivative and non-derivative financial liabilities based on contractually agreed undiscounted cash flows.
a) As at 31st March 2018 (Rs In lakhs)
Particulars |
Total |
On Demand |
Within 1 year |
1 year to 5 Years |
Non-Derivative |
||||
Trade payables |
12,981.33 |
- |
12,981.33 |
- |
Long Term Borrowings |
10,556.30 |
- |
- |
10,556.30 |
Short Term Borrowing |
20,095.44 |
7,371.94 |
12,723.50 |
- |
Other financial liabilities |
7,922.64 |
2,283.85 |
4,550.49 |
1,088.30 |
Derivative |
||||
Foreign Exchange forwards contracts |
4.96 |
- |
4.96 |
- |
b) As at 31st March 2017
(Rs. In lakhs)
Particulars |
Total |
On Demand |
Within 1 year |
1 year to 5 Years |
Non-Derivative |
||||
Trade payables |
11,272.41 |
- |
11,272.41 |
- |
Long Term Borrowings |
11,956.62 |
- |
- |
11,956.62 |
Short Term Borrowing |
20,482.43 |
6,445.71 |
14,036.72 |
- |
Other financial liabilities |
7,885.15 |
2,276.62 |
3,967.53 |
1,641.00 |
Derivative |
||||
Foreign Exchange forwards contracts |
- |
- |
- |
- |
c) As at 1st April 2016
(Rs. In lakhs)
Particulars |
Total |
On Demand |
Within 1 year |
1 year to 5 Years |
Non-Derivative |
||||
Trade payables |
11,103.63 |
- |
11,103.63 |
- |
Long Term Borrowings |
12,619.15 |
- |
- |
12,619.15 |
Short Term Borrowing |
21,273.16 |
8,730.60 |
12,542.56 |
- |
Other financial liabilities |
8,645.97 |
2,017.92 |
4,950.74 |
1,677.31 |
Derivative |
||||
Foreign Exchange forwards contracts |
14.13 |
- |
14.13 |
- |
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.
a) Interest rate risk:
Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference rates could have an impact on the Company''s cash flow as well as cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.
The exposure of the Company''s borrowing to interest rate changes at the end of the reporting period are as follows:
(Rs. In lakhs)
Particulars |
As at 31st March 2018 |
% |
As at 31st March 2017 |
% |
As at 1st April 2016 |
% |
Variable rate borrowings |
16,247.95 |
47.66% |
17,246.34 |
48.36% |
22,224.65 |
58.34% |
Fixed Rate borrowings |
17,842.03 |
52.34% |
18,418.69 |
51.64% |
15,869.05 |
41.66% |
Total Borrowings |
34,089.98 |
100.00% |
35,665.03 |
100.00% |
38,093.70 |
100.00% |
Preference Shares, Fixed Deposit (From Public) and Inter Corporate Deposits are considered as Fixed rate borrowings and other borrowings are considered as Variable rate Borrowings.
Sensitivity: A change of 50 bps in interest rates of variable rate borrowings would have following Impact on profit before tax
(Rs. In lakhs)
Particulars |
For the year |
For the year |
2017-18 |
2016-17 |
|
50 bps increase would decrease the profit before tax by |
(81.24) |
(86.23) |
50 bps decrease would increase the profit before tax by |
81.24 |
86.23 |
b) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognized underlying liabilities / assets and firm commitments. The Company''s policy is to hedge its exposures other than natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.
The Company''s Derivative instruments and unhedged foreign currency exposure at the end of the reporting period are as follows:
(i) Derivatives Outstanding as at the reporting date
(Amount in lakhs)
Particulars |
Currency |
As at 31st March 2018 |
As at 31st March 2017 |
As at 1st April 2016 |
|||
Amount in Foreign Currency |
Amount in INR |
Amount in Foreign Currency |
Amount in INR |
Amount in Foreign Currency |
Amount in INR |
||
Forward Contract to Sell |
USD |
22.20 |
1,438.49 |
23.61 |
1,531.05 |
20.35 |
1,363.42 |
Forward Contract to Buy |
USD |
1.03 |
148.59 |
14.10 |
914.15 |
5.12 |
339.59 |
EURO |
1.82 |
66.93 |
- |
- |
- |
- |
(ii) Particulars of unhedged foreign currency exposures as at the reporting date
(Amount in lakhs)
Particulars |
Currency |
As at 31st March 2018 |
As at 31st March 2017 |
As at 1st April 2016 |
|||
Amount in Foreign Currency |
Amount in INR |
Amount in Foreign Currency |
Amount In INR |
Amount in Foreign Currency |
Amount In INR |
||
Trade & Other Receivable |
USD |
8.10 |
526.66 |
2.18 |
141.22 |
1.92 |
127.27 |
Trade & Other Payable |
USD |
0.71 |
45.90 |
1.51 |
97.86 |
6.71 |
445.17 |
Sensitivity: A change of 3% in Foreign currency would have following Impact on profit before tax
Particulars |
For the year 2017-18 |
For the year 2016-17 |
||
3% Increase |
3% Decrease |
3% Increase |
3% Decrease |
|
USD |
24.04 |
(24.04) |
2.17 |
(2.17) |
c) Other price risk:
The Company''s exposure to securities price risk arises from investments in mutual funds and equity instruments held by the Company and classified in the balance sheet as FVPL and FVOCI respectively.
Amount in lakhs) |
|||
Particulars |
As at 31st March 2018 |
As at 31st March 2017 |
As at 1st April 2016 |
Investment in Quoted Equity Instruments |
0.02 |
0.10 |
0.08 |
Investment in Mutual Funds |
113.78 |
110.62 |
104.25 |
Note:- As the company''s exposure to instruments tradable in market is immaterial, hence any movement in market indices will not have material impact on company''s profitability.
Note 53 - Capital Management
The Company''s objective when managing capital (defined as net debt and equity) is to safeguard the Company''s ability to continue as a going concern in order to provide returns to shareholders and benefit for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and strategic objectives of the Company.
NOTE 54 - Segment Reporting
54.1 Primary Segment Information (Business Segment)
in lakhs)
Particulars |
Textiles |
Tea |
Engineering (Micco) |
Property |
Unallocable |
Total |
Segment Revenue |
||||||
External Turnover |
35,838.23 |
20,531.02 |
5,563.40 |
746.31 |
. |
62,678.96 |
(36,630.75) |
(19,477.49) |
(8,231.77) |
(725.98) |
- |
(65,065.99) |
|
Intersegment Revenue |
- |
- |
- |
61.07 |
- |
61.07 |
- |
- |
- |
(72.93) |
- |
(72.93) |
|
Total Segment Revenue |
35,838.23 |
20,531.02 |
5,563.40 |
807.38 |
. |
62,740.08 |
(36,630.75) |
(19,477.49) |
(8,231.77) |
(798.91) |
- |
(65,138.92) |
|
Less: Intersegment Elimination |
- |
- |
- |
61.07 |
- |
61.07 |
- |
- |
- |
(72.93) |
- |
(72.93) |
|
Revenue from Operations |
35,838.23 |
20,531.02 |
5,563.40 |
746.31 |
- |
62,678.96 |
(36,630.75) |
(19,477.49) |
(8,231.77) |
(725.98) |
- |
(65,065.99) |
|
Segment Result |
1,677.53 |
568.06 |
1,077.30 |
564.18 |
- |
3,887.07 |
(2,135.75) |
(562.23) |
(-644.11) |
(571.79) |
- |
(2,625.66) |
|
Less: Unallocable Expenditure net of unallocable Income |
315.10 |
315.10 |
||||
(-826.02) |
(-826.02) |
|||||
Finance Costs |
4,492.68 |
4,492.68 |
||||
(4,794.65) |
(4,794.65) |
|||||
Profit Before Tax |
(920.70) |
|||||
(1,342.97) |
||||||
Other Information |
||||||
Segment Assets |
36,727.53 |
13,527.76 |
18,733.52 |
7,988.99 |
7,426.90 |
84,404.70 |
(34,793.38) |
(13,501.40) |
(20,293.36) |
(7,954.91) |
(7,034.61) |
(83,577.66) |
|
Segment Liabilities |
10,005.22 |
4,665.80 |
5,348.99 |
527.05 |
36,089.40 |
56,636.46 |
(11,383.51) |
(3,707.84) |
(6,331.97) |
(505.11) |
(33,166.52) |
(55,094.95) |
|
Capital Expenditure |
949.16 |
683.32 |
8.05 |
2.38 |
14.08 |
1,656.99 |
(433.65) |
(883.49) |
(22.01) |
(-) |
(-) |
(1,339.15) |
|
Depreciation |
1,038.44 |
435.76 |
99.58 |
2.07 |
39.92 |
1,615.77 |
(1,023.98) |
(584.31) |
(249.86) |
(1.98) |
(49.85) |
(1,909.98) |
Figures in bracket represents previous year figures 54.2 Secondary Segment Information (Geographical Segment)
Particulars |
Within India |
Outside India |
Total |
Segment Revenue |
51,553.10 |
11,125.86 |
62,678.96 |
(54,000.57) |
(11,065.42) |
(65,065.99) |
|
Segment Assets |
75,217.03 |
1,760.77 |
76,977.80 |
(74,655.77) |
(1,887.28) |
(76,543.05) |
|
Capital Expenditure |
1,656.99 |
. |
1,656.99 |
(1,339.15) |
(-) |
(1,339.15) |
Figures in bracket represents previous year figures
54.3 Other Disclosures
a The Company''s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company is currently focused
on four business groups : Textile, Engineering, Tea and Property. The Company''s organisational structure and governance processes are designed
to support effective management of multiple businesses while retaining focus on each one of them. b The geographical information considered for disclosure are:
-Sales within India
-Sales outside India c. The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from
transactions with any single external customer. d Inter-segment transfers are based on prevailing market prices. e The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.
NOTE 55 Basic and Diluted- Earning per Share
Particulars |
Gratuity |
|
2017-18 |
2016-17 |
|
i) Profit / (Loss) after Tax available for Ordinary Sharholders (Rs. In lakhs) |
(1,063.51) |
(1,361.84) |
ii) Weighted Average of Ordinary Shares of Rs 10 each outstanding during the year (Numbers) |
21,342,346.00 |
21,342,346.00 |
iii) Basic and Diluted Earning per Share {(i) / (ii)} |
(4.98) |
(6.38) |
NOTE 56 - Information in accordance with the requirements of the Indian Accenting Standard -11 on " Construction Contract"
Particulars |
2017-18 |
2016-17 |
|
a) |
Contract revenue recognised for the year |
5,563.40 |
9,682.56 |
b) |
Aggreate amount of contract costs incurred and recognised Profits (less recognised losses) up to the year end for all the contarcts-in-Progress. |
137,284.81 |
135,068.56 |
Progress Billing |
133,635.61 |
131,113.24 |
|
Unbilled Revenue (Net) |
3,649.20 |
3,955.32 |
|
Due from Customer |
4,763.75 |
4,783.08 |
|
Due to Customer |
1,114.55 |
827.76 |
|
c) |
The amount of customer advances outstanding for Contract-in-Progress as at year end. |
514.86 |
728.89 |
d) |
The amount of retention money due from customers for Contract-in-Progress as at year end. |
8,316.28 |
9,618.04 |
e) |
Gross amount due from customers for Contracts-in-Progress as at year end [Included in work-in-progress Rs. 3397.75 lakhs (Previous year-Rs 151 3.14 lakhs), Sundry Debtors Rs. 5203.50 lakhs (Previous year - Rs. 6035.66 lakhs)] |
8,601.26 |
7,548.81 |
NOTE 57 - Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-ll of the Schedule-Ill of the Companies Act, 2013.
The accompanying Notes form an integral part of these Standalone Financial Statements.
As per our Report of even date annexed. |
For and on behalf of the Board |
||
For SINGHI & CO. |
|||
Chartered Accountants |
Manoj Sodhani |
Mahesh Sodhani |
Arun Kumar Kothari |
Firm Registration No. 302049E |
Executive Director & CEO |
Managing Director |
Chairman |
(DIN:02267180) |
(DIN:02100322) |
(DIN:00051900) |
|
Anurag Singhi |
|||
Partner |
|||
Membership No. 066274 |
Dhananjoy Karmakar |
Pravin Kumar Jain |
|
Kolkata, 30th May 2018 |
Company Secretary |
Chief Financial Officer |
Mar 31, 2016
1. Rights, Preferences and Restrictions attached to shares
i) Ordinary Shares
(a) The Company has only one class of Ordinary shares having a face value of Rs. 10 per share and each holder of Ordinary shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors (except interim dividend) is subject to the approval of the shareholders in the Annual General Meetings.
(b) In case of liquidation the Ordinary Shareholders are eligible to receive remaining assets of the company, after distribution of all the preferential amounts, in the proportion of their Shareholding.
(ii) Preference Shares
(a) The Company has one class of 8 % Redeemable Cumulative Preference Shares having a par value of Rs. 100 per share and the holder of Preference shares has a preferential right over the Ordinary shareholders with respect to payment of dividend and repayment of Share Capital in case of liquidation. The preference shareholder do not have voting powers except in a meeting of preference shareholder.
(b) The 8% Redeemable Cumulative Preference Shares are redeemable at par in 15 (fifteen) years from the date of allotment i.e. 31st March, 2005 with the option to the Company to redeem the same at any time after the expiry of 60 (sixty) months from the said date of allotment at the discretion of the Board of Directors of the Company.
2 Security Clauses
3. The Term Loan from IDBI Bank Ltd (IDBI), State Bank of Patiala (SBP) and State Bank of India (SBI), Corporate Loan from State Bank of India (SBI), State Bank of Patiala (SBP) and Letter of Credit facility from SBI for purchase of capital goods are secured by first charge by way of Equitable Mortgage by deposit of title deeds of the Company''s immovable properties situated at (a) Akbarpur, Punjab, (b) Champdani, West Bengal, (c) Gillander House, West Bengal, (d) Sodepur, West Bengal and (e) Konnagar, West Bengal and also secured by way of 1st charge on entire Fixed Assets, both present and future of the Company except those pertaining to the Tea Division but subject to prior charge(s) created on current assets (except Tea Division) in favour of Company''s bankers for securing working capital facilities availed from time to time in the ordinary course of business. The mortgage and charge shall rank pari passu with the mortgage and charges created / to be created in favour of IDBI, SBP and SBI. The term loans and letter of credit for Capital Goods are also secured by guarantee of a Director.
4. Lease Rental Discounting (LRD) Term Loan from SBI is secured by assignment/hypothecation of current and future lease proceed, rental receivables and other fees from certain chargeable area of Gillander House, West Bengal and are also secured / to be secured by 1st charge on entire Fixed Assets, both present and future of the Company except those pertaining to the Tea division but subject to prior charge(s) created / to be created on current assets (except Tea Division) in favour of Company''s bankers. The mortgage and charge shall rank pari passu with the mortgage and charges created / to be created in favour of IDBI, SBP and SBI. The term loan is also secured by guarantee of a Director.
5. Term Loan from YES Bank Limited is secured by guarantee of a Director.
6. The Term Loan from IndusInd Bank Ltd. , are secured by hypothecation of the related Equipments purchased and guarantee by a Director.
7. Term Loan from HDFC Bank Ltd., are secured by hypothecation of the related vehicles purchased.
8. The Term Loan from Tea Board of India under Special Purpose Tea Fund Scheme (SPTF) is secured by second charge by way of equitable mortgage on immovable properties situated at the Tea estates and also further secured by second charge by way of hypothecation of Tea crop of the estates.
9.1 Information in accordance with the requirements of the Accounting Standard - 15 on ''Employee Benefits'':-
a. Provident Fund
The Company makes a contribution for Provident Fund towards defined contribution plans for eligible employees. In respect of certain employees, Provident Fund Contribution is made to Trust Funds administered by the Company towards defined benefit plans. The Company shall make good for deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.
During the year Company has contributed Rs.852.30 Lakhs, which includes Rs.1.73 Lakhs for discontinuing operations (Previous Year Rs. 745.59 Lakhs, which includes Rs.6.13 Lakhs for discontinuing operations) towards provident fund.
Based on the Guidance Note on measurement of Provident Fund liabilities from The Actuarial Society the actuary has provided the valuation of interest guaranteed on Provident Fund. Accordingly, there is no shortfall of interest required to be provided for as at 31st March, 2016 as well as in the previous year.
b. Employee State Insurance Scheme
The Company make contribution for Employee State Insurance (ESI) Scheme towards defined contribution plan. During the year Company has contributed Rs.127.94 Lakhs, which includes Rs.0.34 Lakhs for discontinuing operations (Previous year Rs.133.41 Lakhs, which includes Rs.13.65 Lakhs for discontinuing operations).
c. Gratuity
The Employee''s Gratuity Fund Scheme, a defined benefit plan, is administered by Life Insurance Corporation of India (LIC) and SBI Life Insurance Company Ltd. (SBI Life). LIC or SBI Life make payments to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment of an amount based on the respective employee''s salary and tenure of employment subject to a maximum limit as prescribed. Vesting occurs upon completion of five years of service. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method at each balance sheet date.
Notes :-
10) The detail of experience adjustment arising on plan assets and liabilities as required by paragraph 120(n)(ii) of Accounting Standard-15 on ''Employee Benefits'' is given to the extent of information provided in the Actuarial Valuation Report.
11) The estimate of future salary increases, considered in actuarial valuations takes account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.
12) The expected rate of return on plan assets is based on actuarial assumption.
13) The company expect to contribute a sum of Rs. 751.70 Lakhs during 2016-17 towards Gratuity Fund.
14) The above information is actuarially determined.
15. During the year, the Company, along with its nominees, acquired 99.99% equity shares of Barfani Builder Limited ("BBL"), by purchasing 49,995 fully paid up equity shares of Rs. 10/- each at par from the shareholders of BBL .
16. The Company will apply with the Hon''ble High Court at Calcutta, for approval of a Scheme of Arrangement for reconstruction by transfer of its Chemical (Waldies) Division in West Bengal, of the company to BBL with effect from 1st April 2015. Pending approvals of Hon''ble High Court at Calcutta and of regulatory authorities and completion of requisite formalities, the financials of the Chemical (Waldies) Division has been included in these Financial Statements.
17. Discontinuing Operations
In view of the long term strategy of the Company, the Board of Directors in their meeting held on 31st March, 2016 have decided to close its Trading Division with effect from the close of business hours of 31st March, 2016.
18. Revenue expenditure on Research and Development of Rs. 12.13 Lakhs (Previous Year Rs. 11.40 Lakhs) represents subscription to Tea Research Association.
19. Related Party Disclosure
20. Information in accordance with requirements of the Accounting Standard-18 on ''Related Party Disclosures'':-
A) Subsidiary Companies:
i) Direct Subsidiary:
a) Gillanders Holdings (Mauritius) Limited, Mauritius (GHML)
b) Barfini Builder Limited (BBL)
ii) Indirect Subsidiaries :
c) Group Development Limited, Malawi (Wholly Owned Subsidiary (WOS) of GHML) (GDL)
d) Naming''omba Tea Estates Limited (WOS of GDL)
e) Mafisi Tea Estaes Limited (WOS of GDL)
f) Group Holdings Limited (WOS of GDL)
B) Name of the Companies in which Directors/Key Management Personnel and their relatives have significant influence
i. M D Kothari and Company Limited (MDKCL)
ii. Bharat Fritz Werner Ltd. (BFW)
iii. Kothari and Co Pvt. Limited (KCPL)
iv. Kothari Investment & Industries Pvt. Limited (KIIPL)
v. Commercial House Pvt. Limited (CHPL)
vi. Vishnuhari Investment and Properties Limited (VIPL)
vii. Kothari Medical Centre (KMC)
viii. Kothari Phytochemicals Industries Limited (KPIL)
ix. Albert David Limited (ADL)
C) Key Management Personnel of the Company
Mr. D K Sharda (DKS) - Managing Director & Chief Executive Officer
21. Operating Lease Commitments
a) The Company has taken various Plant and Machinery for its Engineering (MICCO) Division under cancellable operating lease. Lease range for the period between 3 to 8 months. During the year the Company has charged related lease rental of Rs. 991.13 Lakhs (Previous Year Rs. 417.53 Lakhs) in the Statement of Profit and Loss under the head Machinery Hire Charges.
b) The Company has given office premises under cancellable operating leases. These leasing arrangements range between 3 years and 15 years generally or longer and are usually renewable by mutual consent on mutually agreeable terms. Initial Direct costs for such leases are borne by the Company and charged off to revenue. Lease rentals are recognized as income for Rs.555.24 Lakhs during the year (Previous Year Rs.524.10 Lakhs). The gross value and accumulated depreciation of such asset as at 31st March, 2016 was Rs.23.59 Lakhs (Previous Year Rs.23.59 Lakhs) and Rs.22.41 Lakhs (Previous Year Rs.22.41 Lakhs) respectively.
c) The Company has certain operating leases for premises (residential, offices and godowns) which are not non-cancellable range between 3 months to 5 years generally and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged in the Statement of Profit and Loss under the head Rent (Refer Note - 29).
Mar 31, 2015
Note 1. Rights, Preferences and Restrictions attached to shares
i) Ordinary Shares
(a) The Company has only one class of Ordinary shares having a face
value of Rs. 10 per share and each holder of Ordinary shares is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees. The dividend proposed by the Board of Directors
(except interim dividend) is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
(b) In case of liquidation the Ordinary Shareholders are eligible to
receive remaining assets of the company, after distribution of all the
preferential amounts, in the proportion of their Shareholding.
(ii) Preference Shares
(a) The Company has one class of 8 % Redeemable Cumulative Preference
Shares having a par value of Rs. 100 per share and each holder of
Preference shares has a preferential right over the Ordinary
shareholders with respect to payment of dividend and repayment of Share
Capital in case of liquidation. The preference shareholders do not have
voting powers except in a meeting of preference shareholder.
(b) The 8% Redeemable Cumulative Preference Shares are redeemable at
par in 15 (fifteen) years from the date of allotment i.e. 31st March,
2005 with the option to the Company to redeem the same at any time
after the expiry of 60 (sixty) months from the said date of allotment
at the discretion of the Board of Directors of the Company.
Note 2. Security Clauses
1. The Term Loan from IDBI Bank Ltd (IDBI), State Bank of Patiala
(SBP) and State Bank of India (SBI), Corporate Loan from State Bank of
India (SBI) and Letter of Credit facility from SBI for purchase of
capital goods are secured by first charge by way of Equitable Mortgage
by deposit of title deeds of the Company's immovable properties
situated at (a) Akbarpur, Punjab, (b) Champdani, West Bengal, (c)
Gillander House, West Bengal, (d) Sodepur, West Bengal and (e)
Konnagar, West Bengal and also secured by way of 1st charge on entire
Fixed Assets, both present and future of the Company except those
pertaining to the Tea Division but subject to prior charge(s) created
on current assets (except Tea Division) in favour of Company's bankers
for securing working capital facilities availed from time to time in
the ordinary course of business. The mortgage and charge shall rank
pari passu with the mortgage and charges created in favour of IDBI, SBP
and SBI. The term loans and letter of credit for Capital Goods are also
secured by guarantee of a Director.
2. Lease Rental Discounting (LRD) Term Loan from SBI is secured by
assignment/hypothecation of current and future lease proceeds, rental
receivables and other fees from certain chargeable area of Gillander
House, West Bengal and are also secured by 1st charge on entire Fixed
Assets, both present and future of the Company except those pertaining
to the Tea division but subject to prior charge(s) created on current
assets (except Tea Division) in favour of Company's bankers. The
mortgage and charge shall rank pari passu with the mortgage and charges
created in favour of IDBI, SBP, SBI and KVB. The term loan is also
secured by guarantee of a Director
3. Corporate Loan from The Karur Vysya Bank Limited (KVB) is secured
by way of 1st charge on all fixed assets, both present and future of
the Company except those pertaining to the Tea Division on pari-passu
basis with existing term lenders.
4. The Term Loan from IndusInd Bank Ltd., are secured by hypothecation
of the related Equipments/Vehicles and guaranteed by a Director.
5. Term Loan from HDFC Bank Ltd., are secured by hypothecation of the
related vehicles purchased.
6. The Term Loan from Tea Board of India under Special Purpose Tea
Fund Scheme (SPTF) is secured by second charge by way of equitable
mortgage on Immovable properties situated at the Tea estates and also
further secured by second charge by way of hypothecation of Tea crop of
the estates .
Note 3. Information in accordance with the requirements of the
Accounting Standard - 15 on 'Employee Benefits':
a. Provident Fund
The Company makes a contribution for Provident Fund towards defined
contribution plans for eligible employees. In respect of certain
employees, Provident Fund Contribution is made to Trust Funds
administered by the Company towards defined benefit plans. The Company
shall make good for deficiency, if any, in the interest rate declared
by the trust vis-a-vis statutory rate.
During the year Company has contributed Rs. 745.59 Lakhs (Previous year
Rs. 714.98 Lakhs) towards Provident Fund.
Based on the Guidance Note on measurement of Provident Fund liabilities
from The Actuarial Society the actuary has provided the valuation of
interest guaranteed on Provident Fund. Accordingly a short fall of
interest of Nil as at 31st March, 2015 (Previous Year Rs. 13.31 Lakhs)
has been provided for under the head Staff Welfare Expenses.
b. Employee State Insurance Scheme
The Company make contribution for Employee State Insurance (ESI) Scheme
towards defined contribution plan. During the year Company has
contributed Rs. 133.41 Lakhs (Previous year Rs. 122.23 Lakhs).
c. Gratuity
The Employee's Gratuity Fund Scheme, a defined benefit plan, is
administered by Life Insurance Corporation of India (LIC) and SBI Life
Insurance Company Ltd. (SBI Life). LIC or SBI Life make payments to
vested employees or their nominees upon retirement, death,
incapacitation or cessation of employment of an amount based on the
respective employee's salary and tenure of employment subject to a
maximum limit as prescribed. Vesting occurs upon completion of five
years of service. The present value of obligation is determined based
on the actuarial valuation using the Projected Unit Credit Method at
each balance sheet date.
Note 4. Contingent Liabilities and Commitments
Rs. in Lakhs
Particulars As at As at
31st March, 31st March,
2015 2014
Contingent Liabilities
Claims against the Company not
acknowledged as debts
i) ESI - 17.87
ii) Sales Tax 983.35 2537.77
iii) Cess on Jute Bags/Jute Twine 7.32 7.32
iv) Cess and Excise on Captive
Consumption 11.33 11.33
v) Excise Duty 70.30 70.30
vi) Service Tax 425.90 442.58
vii) Income Tax 106.02 137.00
viii) Voltage Surcharge on
Electricity consumed 159.32 159.32
Note: In respect of above, future
cash flows are determinable only on
receipt of judgements pending at
various forums/authorities which in
the opinion of the Company is not
tenable and there is no possibility
of any reimbursement in case of above.
Commitments
i) Estimated amount of contracts
remaining to be executed on Capital 337.07 225.92
Account and to provided for
[Net of advance Rs. 147.00 Lakhs
(Previous Year Rs. 120.77 Lakhs)]
ii) Arrear Dividend on Redeemable
Cumulative Preference Shares 16.00 -
The Board has not declared any
dividend on Redeemable Cumulative
Preference Shares. Dividend in
arrears on cumulative preference
shares can be paid in a later year
where there are profits to justify
such payment.
iii) The Company has given counter
Guarantee to a bank for issue of
Stand by letter of Credit against
loan availed by the wholly owned
subsidiary from a bank :
a) Amount of Guarantee Given USD
13.00 Million 8,125.65 -
b) Amount outstanding as on 31st
March USD 12.60 Million 7,876.70 -
iv) Deposit with Bank Committed to
Continue till the tenure of Stand by
letter of Credit 1,611.74 -
Note 5. Information in accordance with the requirements of the
Accounting Standard-17 on 'Segment Reporting' :
(a) The Company has identified Six primary business segments viz :
i) Textile - Manufacture and sale of yarn and fabric made out of Cotton
and Man-Made Fibre viz., Acrylic, Polyster, Viscose Staple and Blends
thereof.
ii) Engineering (MICCO) - Manufacture and sale of Steel Structurals,
Pipes and Equipments and Designing, Supplying, Erectioning and
Commissioning of projects on turnkey basis.
iii) Tea - Manufacture and sale of tea
iv) Chemical (Waldies) - Manufacture and sale of lead oxide, white
lead, lead salts and metallic stearates
v) Trading - Purchase and sale of paints and allied products
vi) Property - Letting out property on rent
Segments have been identified and reported taking into account nature
of products and services, the different risks and returns and the
internal business reporting systems. The accounting policies adopted
for segment reporting are in line with the accounting policy of the
Company with the following additional policies for segment reporting.
Note 6.
i) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable".
ii) Segment assets and segment liabilities represent assets and
liabilities in respective segments. Investments, tax related asset and
other assets and liabilities that cannot be allocated to a segment on
reasonable basis have been disclosed as "Unallocable".
Note 7. A Corporate Social Responsibility (CSR) committee has been
formed by the company as per provisions of Section 135 of the Companies
Act, 2013. The details of expenditure being incurred during the year on
CSR activities are detailed below -
(a) Gross amount of Rs. 12.21 lakhs required to be spent by the company
during the year.
(b) Total revenue expenditure incurred during the year on Medical,
Health & Education purposes as part of CSR activities amounting to Rs.
12.26 lakhs.
Note 8. Revenue expenditure on Research and Development of Rs. 11.40
Lakhs (Previous Year Rs. 9.44 Lakhs) represents subscription to Tea
Research Association.
Note 9. a) During the year, the Company has set up a wholly owned
subsidiary at Mauritius in the name of Gillanders Holdings
(Mauritius) Limited (GHML) to explore various acquisition
opportunities.
b) The Company has acquired through GHML, 100% stake in Group
Development Limited, Malawi along with its three subsidiaries engaged
in the business of growing, production and sale of tea, macadamia nuts
and other crops.
Note 10. Related Party Disclosure
10.1 Information in accordance with requirements of the Accounting
Standard-18 on 'Related Party Disclosures':-
A) Subsidiary Companies:
i) Direct Subsidiary:
Gillanders Holdings (Mauritius) Limited, Mauritius (GHML)
ii) Indirect Subsidiaries :
Group Development Limited, Malawi (Wholly Owned Subsidiary (WOS) of
GHML (GDL)
Naming'omba Tea Estates Limited (WOS of GDL)
Mafisi Tea Estaes Limited (WOS of GDL)
Group Holdings Limited (WOS of GDL)
B) Name of the Companies in which Directors/Key Management Personnel
and their relatives have significant influence
i. M D Kothari and Company Limited (MDKCL)
ii. Bhaktwatsal Investments Limited (BIL)
iii. Bharat Fritz Werner Ltd. (BFW)
iv. Kothari and Co Pvt. Limited (KCPL)
v. Kothari Investments & Industries Pvt. Limited (KIIPL)
vi. Commercial House Pvt. Limited (CHPL)
vii. Vishnuhari Investments and Properties Limited (VIPL)
viii. Kothari Medical Centre (KMC)
ix. Kothari Phytochemicals Industries Limited (KPIL)
x. Albert David Limited (ADL)
C) Key Management Personnel of the Company
Mr. D K Sharda (DKS) - Managing Director & Chief Executive Officer
Note 11. The Company has charged deprecation based on the revised
remaining useful life of the assets as per requirement of Schedule II
of the Companies Act, 2013 or reassessed by the Company based on
technical evaluation, effective from April 1, 2014. Due to above,
depreciation charge for the year ended 31st March, 2015 is lower by
Rs. 695.83 lakhs. Further, based on transitional provision provided in
note 7(b) of Schedule II, an amount of Rs. 230.88 lakhs (net of
deferred tax) has been adjusted with retained earnings.
Note 12. Operating Lease Commitments
a) The Company has taken various Plant and Machinery for its
Engineering (MICCO) Division under cancellable operating lease. Lease
range for the period between 3 to 8 months. During the year the Company
has charged related lease rental of 417.53 Lakhs (Previous
Year Rs. 683.62 Lakhs) in the Statement of Profit and Loss under the
head Machinery Hire Charges.
b) The Company has given office premises under cancellable operating
leases. These leasing arrangements range between 3 years and 15 years
generally or longer and are usually renewable by mutual consent on
mutually agreeable terms. Initial Direct costs for such leases are
borne by the Company and charged off to revenue. Lease rentals are
recognised as income for Rs. 524.10 Lakhs during the year (Previous
Year Rs. 469.03 Lakhs). The gross value and accumulated depreciation of
such asset as at 31st March, 2015 was 23.59 Lakhs (Previous Year 23.59
Lakhs) and 22.41 Lakhs (Previous Year 23.55 Lakhs) respectively.
c) The Company has certain operating leases for premises (residential,
offices and godowns) which are not non-cancellable range between 3
months to 5 years generally and are usually renewable by mutual consent
on mutually agreeable terms. The aggregate lease rentals payable are
charged in the Statement of Profit and Loss under the head Rent.
Note 13. Previous year's figures have been regrouped and / or
reclassified, wherever considered necessary to correspond with the
current year's classification and / or disclosure.
Mar 31, 2013
1.1 Information In accordance with the requirements of the Accounting
Standard - 15 on ''Employee Benefits :-
a. Provident Fund
The Company makes a contribution far Provident Fund towards defined
contribution plans for eligitile employees. In respect of certain
employees, Provident Fund Contribution is made to Trust Funds
dministered by the Company towards defined benefit plans. The Company
shall make good for deficiency, if any, in the interest rate declared
by the trust vis-a-vis statutory rate.
During the year Company has contributed T 5.93.19 Lakhs (Previous yearRs.
&f 31.98 Lakhs] towards Provident Fund.
Based on the Guidance note on measurement of Provident Fund liabilities
from The Actuarial Society the actuary has provided the valuation of
interest guaranteed on Provident Fund. Accordingly a short fall of
Interest of T19.89 lakhs as at 3lst March, 2013 (Previous Year T 6.13
Lakhs) has been provided for under the head Staff Welfare Expenses.
b. Employee State Insurance Scheme
The Company make cortribution for Employee State Insurance (ESI) Scheme
towards defined contribution plan. During the year Company has
recognised Rs. 1,01.34 Lakhs (Previous year Rs. 82.12 Lakhs).
c. Gratuity
The Employees Gratuity Fund Scheme, a defined benefit plan, is
administered by Life Insurance Corporation of India (LIC) and SBI Life
Insurance Company Ltd- (SBI Life)- LIC or SBI Life make payments to
vested employees or their nominees upon retirement, death,
incapacitation or cessation of employment of an amount based on the
respective employee''s salary and tenure of employment subject to a
maxinum limit as prescribed. Vesting occurs upon completion of five
years of service. The present value of obligation Is determined based
on the actuarial valuation using the Projected Unit Credit Method at
each balance sheet date.
2. Contingent Liabilities and Commitments
Particulars As in As at
31st March, 31st March,
2013 2012
2.1 Contingent Liabilities
Claims agairst the Company not
acknowledged as debts
I) ESI 17.75 17.75
ii) Sales Tax 20,94.30 7,59.89
iii) Cess on Jute Bags/Jute Twine 7.32 7.32
iv) Cass and Excise on Captive
Consumption 11.33 11.33
v) Excise Duty 56.87 35.76
vii) Service Taz 4,89.26 1,93.36
vii) Income Tax 5.86 5.86
viii) Voltage Surcharge on
Electricity consumed 1,59.32 1,87.51
2.2 Commitment
Estimated amount of contracts
remaining to be executed on
Capital Account and 3,48.59 22,83.02
not provided for [Net of
advance Rs. 8,57.60 Lakhs
(Previous Year Rs. 3,00.09
Lakhs)]
Note: In respect of above, future cash flows are determinable only on
receipt at judgements pending at various forums/authorities which in
the opinion of the Company is not tenable and there is no possibility
of any reimbursement in case of above.
3. Information in accordance with therequirements of Accounting
Standard-17 on Segment Reporting:
(a) The Company has identified Six primary business Segments viz:
i) Textile - Manufacture and sale of yarn made out of cotton and
Man-Hade Fibre viz., Acrylic, Polyster Viscose Staple and Blends
thereof.
ii) Tea - Manufacture and sale of Tea
iii) Enginnering (MICCO)- Manufacture and sale structurals, Pipes and
equipments and Designing, Supplying, Erectioning and Commissioning of
projects on turnkey basis.
iv) Chemical (Waldies) - Manufacture and sale or lead oxide, white
lead, lead salts and metallic stearates
v) Property - Letting out property on rent.
vi) Trading - Purchase and sale or paints and allied products
Segments have been identified and reported taking into nature of
products and services, the different risks and returns and the internal
business reporting systems. The accounting policies adopted for segment
reporting are in line with the accuonting policy of the Company with
the following additional policies for segment reporting.
i) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
expenses which relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed as "Unallocable''.
II) Segment assets and segment liabilities represent assets and
liabiibes in respective segments. Investments, tax related asset and
other assets and liabilities that cannot be allocated to a segment on
reasonable basis have been disclosed as "Unallocable".
4. Related Party Disclosure
4.1 information In accordance with requirements of the Accounting
Standard-IB on ''Related Party Disclosures'';-
A) Name of the Companies in which Directors/Key Management Personel and
their relatives have significant Influence
i} M D Kothari and company Limited (MDKCL}
ii) Bhaktwatsal Investments Limited (BIL)
iii) Kothari and Co Pvt.Limited (KCPL)
iv) Kothari Investments & Industries Pvt. Limited (KIIPL)
v) Commercial House Pvt. Limited (CHPL}
vi) Vishnuhari Invastments and Properties Limitedd (VIPL)
vii) Kothari Medical Centre {KMC)
viii) Kothari Phytochemicals Industries Limited (KPIL)
B) Key Management Personnel of the Company
Mr. D K Sharda (DKS) - Managing Director & C.E.O
5. Operating Lease Commitments
a) The Company has taken various Plant and Machinery for Its
Engineering (MICOOJ Divisoin under cancellable operating lease. Lease
range for the period between 3 to 8 months. During the year the Company
has charged related lease rental of T3,55.80 Lakhs {Previous Year T
3,37.00 Lakhs) in the statement of Profit and Loss under the head
Machinery Hire Charges.
b) The Company has entered into a non- cancellable operating lease
agreement in previous year in respect of lease rental of a tea
manufacturing facility for a period of Thirteen months. The terms of
the lease include restrictionon to sell, sub-let and or part with
possession of the let-out premises without prior permission of the
lessor. The lease has teen expired during the year.
During the year Company has charged related lease rental of ( 17.50
Lakhs (Previous Year f 13.12 Lakhs) in the Statement of Profit and Loss
under the head Rent.
c) The Company les given office premises under cancellable operating
leases. These leasing arrangements range between 3 years and 15 years
generally or longer and are usually renovrable by mutual consent on
mutually agreeable terms. Initial Direct costs for such leases are
borne by the Company and charged off to revenue. Lease rentals are
recognised as income for Rs. 4,58.80 Lakhs during the year (Previous Year
Rs. 4,83.41 Lakhs). The gross value and accumulated depreciation of such
asset as at 31st March, 2013 was Rs. 23.59 Lakhs (Previous Year ( 23.59
Lakhs) and ( 23.55 Lakhs {Previous Year f 23.55 Lakhs;) respectively.
d) The Company has certain operating leases for premises {residential,
offices and godowns) which are not non-cancellable range between 3
months to 5 years generally and are usually renewable by mutual consent
on mutually agreeable terms. The aggregate lease rentals payable are
charged in the Statement of Profit and Loss under the head Rent (Refer
Note-28).
6. Previous year''s figures have been regrouped and/ or reclassified.
wherever considered necessary to correspond with the current year''s
classification and / or disclousure.
As per our report of even date.
Mar 31, 2012
1.1 Rights, Preferences and Restrictions attached to Shares
i) Ordinary Shares
(a) The Company has only one class of Ordinary shares having a par
value of Rs 10/- per share and each holder of Ordinary shares is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees. The dividend proposed by the Board of Directors
(except interim dividend) is subject to the approval of the shareholders
in the ensuing Annual General Meeting.
(b) In case of liquidation the Ordinary Shareholders are eligible to
receive remaining assets of the company, after distribution of all the
preferential amounts, in the proportion of their Shareholding.
(ii) Preference Shares
(a) The Company has one class of 8 % Redeemable Cumulative Preference
Shares having a par value of Rs.100 per share and each holder of
Preference share has a preferential right over the Ordinary
shareholders with respect to payment of dividend and repayment of Share
Capital in case of liquidation . The preference shareholders do not
have voting powers except in a meeting of preference shareholder.
(b) The 8% Redeemable Cumulative Preference Shares are redeemable at
par in 15 (fifteen) years from the date of allotment i.e. 31st March,
2005 with the option to the Company to redeem the same at any time
after the expiry of 60 (sixty) months from the said date of allotment
at the discretion of the Board of Directors of the Company.
1.1 Security Clauses
a) The Term Loan from IDBI Bank Ltd (IDBI),State Bank of India (SBI)
and State Bank of Patiala (SBP) (under TUFS A/c I,II & III) and Letter
of Credit Facility from SBI for purchase of capital goods are
secured/to be secured by first charge by way of Equitable Mortgage by
deposit of title deeds of the company's immovable properties situated
at (a) Akbarpur, Punjab,
(b) Champdani, West Bengal,
(c) Gillander House, Kolkata
(d) Sodepur, 24 Parganas (North) West Bengal and
(e) Konnagar, West Bengal and also secured/to be secured by way of 1st
charge on entire Fixed Assets, both present and future of the Company
except those pertaining to the Tea Division but subject to prior
charge(s) created/to be created on current assets (except Tea Division)
in favour of Company's bankers for securing working capital facilities
availed from time to time in the ordinary course of business. The
mortgage and charge shall rank pari passu with the mortgage and charges
created/ to be created infavour of IDBI,SBI, and SBP. The term loans
and letter of credit for Capital Goods are also secured by guarantee of
a Director.
b) The Term Loan from Vijaya Bank was secured by securitization of
future rentals by way of assignment of lease agreements with certain
tenant of Company's premises known as "Gillander House" and also
secured/to be secured by first Charge by way of equitable mortgage of
the Company's said premises on pari passu basis with the other Term
lenders viz., IDBI, SBI and SBP for their respective Term Loan under
Technology Up-gradation Fund Scheme (TUFS) A/c I, II & III granted to
the Company and Letter of Credit Facility from SBI for purchase of
capital goods.
c) The Term Loan from Indusind Bank Ltd., and HDFC Bank Ltd., are
secured by hypothecation of the related Equipment / vehicles purchased
and guaranteed by a director.
d) The Term Loan from Tea Board of India under Special Purpose Tea Fund
Scheme (SPTF) is secured /to be secured by second charge by way of
equitable mortgagee on Immovable properties situated at the Tea estates
and also further secured /to be secured by second charge by way of
hypothecation of Tea crop of the estates.
i) In respect of Tea Division, the working capital facilities from
United Bank of India are secured/ to be secured by Hypothecation of Tea
Crop, Made Tea, Book Debts and all other Current Assets of the Tea
Estates and are further secured/to be secured by way of Equitable
Mortgage on Immovable Properties situated at the Tea Estates.
ii) Working Capital Facilities from Banks (except those availed by Tea
Division of the Company from United Bank of India) are secured/ to be
secured by hypothecation of Company's (other than Tea Division) entire
current assets, both present and future, ranking pari passu inter-se,
and guaranteed by a Director and are further secured/ to be secured by
way of second charge on the Fixed Assets of the Company (other than Tea
Division) ranking pari passu inter-se.
iii) The Working Capital facilities having interest rate varying
between 11.50% p.a. to 14.00% p.a. are repayable on demand.
iv) The Unsecured Short Term Loan from Axis Bank having Base Rate
0.25% rate of interest is repayable in 2 installments of Rs 1,500 lakhs
and Rs 1,000 lakhs due on Aug'12 and Sep'12 respectively and is secured
by a guarantee of a Director.
v) The Unsecured Short Term Loan from Bodies Corporate having 13.50%
p.a. rate of interest are repayable on demand.
vi) Fixed deposits (From Public) is having interest rate varying
between 10.00% p.a. to 11.00%. p.a.
26.1 Details of Employee Benefits as required by Accounting Standard -
15 "Employee Benefits" are as follows:
a. Provided Fund
The Company makes a contribution for Provident fund towards defined
contribution Plans for eligible employees. In respect of certain
employees, Provident Fund Contribution is made to Trust Funds
administered by the Company towards defined benefit plans. The company
shall make good for deficiency, if any, in the interest rate declared
by the trust vis-a-vis statutory rate.
During the year company has contributed Rs. 5,31.98 lakhs (Previous
Year - Rs. 4,82.54 lakhs) towards provident fund during the year 31st
March, 2012.
Based on the guidance Note on measurement of Provident Fund liabilities
from The Actuarial Society the actuary has provided the valuation of
interest guaranteed on Provident fund. Accordingly a short fall of
interest of Rs. 6.13 lakhs as at 31st March, 2012 has been provided for
under the head Staff Welfare Expense.
The current year is the first year of actuarial valuation of the
provident fund administered through Trust, in view of the issuance of
the Guidance Note by the Institute of Actuaries of India, hence
previous year figure has not neen disclosed.
b. Employee State Insurance Scheme
The Company make contribution for Employee State Insurance Scheme
towards defined contribution plan. During the year company has
recognized Rs. 82.12 lakhs (Previous year - Rs. 85.69 lakhs.)
c. Gratuity
The Company's Gratuity Scheme, a defined benefit plan, is administered
by Life Insurance Corporation of India (LIC) and SBI Life Insurance
Company Ltd (SBI Life). LIC or SBI Life make payments to vested
employees or their nominees upon retirement, death, incapacitation or
cessation of employment of an amount based on the respective employee's
salary and tenure of employment subject to a maximum limit as
prescribed. Vesting occurs upon completion of five years of service.
The present value obligation is determined based on the actuarial
valuation using the Projected Unit Credit Method at each Balance Sheet
date.
d. Leave Encashment
The Company's leave encashment scheme covers certain categories of
employees. Pursuant to the Scheme cash equivalent of unutilized leave
balance is paid at the time of exit of service.
2 Contingent Liabilities : Rs. in lakhs
Particulars As at As at
31st March, 31st March,
2012 2011
a) Claims against the Company
not acknowledged as debts
i) ESI 17.75 17.75
ii) Sales Tax 7,59.89 7,59.89
iii) Cess on Jute Bags/Jute Twine 7.32 7.32
iv) Cess and Excise on Captive Consumption 11.33 11.33
v) Excise Duty 35.76 35.76
vi) Service Tax 1,93.36 42.46
vii) Income Tax 5.86 5.86
viii) Voltage Surcharge on
Electricity consumed 1,87.51 1,87.51
b) Corporate Guarantee given
on behalf of a Company:
i) Amount of Guarantee given - 150.00
ii) Amount outstanding as at 31st March - 36.59
Note: In respect of item (a) future cash flows is determinable only on
receipt of judgments pending at various forums/authorities which in
the opinion of the company is not tenable and in case of item (b) the
maximum amount of cash flows would be the amount of guarantee given by
the Company. There is no possibility of any reimbursement in case of
item (a) above.
3 Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs. 22,83.02 lakhs (Previous Year - Rs.
11,52.37 lakhs) net of advances Rs. 3,00.09 lakhs (Previous Year - Rs.
1,77.92 lakhs).
4 The Company has made necessary application in respect of Chemical
(Waldies) Division for exemption under the Urban Land (Ceiling &
Regulation) Act, 1976 in respect of its landholding held in excess in
terms of the said Act.
5. Information given in accordance with requirements of AS-17 on
Segment Reporting prescribed under the Act :
(a) The Company has Six primary business segments viz :
i) Trading Division - Purchase and sale of paints and allied products
ii) Tea Division - Manufacture and sale of Tea
iii) Property Division - Letting out property on rent
iv) Textile Division - Manufacture and sale of yarn made out of Cotton
and Man-made Fibre viz., Acrylic, Polyster,Viscose Staple and Blends
thereof.
v) Engineering (MICCO) Division - Manufacture and sale of Steel
Structural's , Pipes and equipments and Designing , Supplying,
fractioning and Commissioning of projects on turnkey basis.
vi) Chemical (Waldies) Division - Manufacture and sale of lead oxide,
white lead, lead salts and metallic stearates
6. Related Party Disclosures
6.1 Information in accordance with requirements of Accounting
Standard-18 on Related Party disclosures prescribed under the Act:-
A) Enterprises over which Key Management Personnel & Relatives of such
Personnel are able to exercise significant influence
a) M D Kothari and Company Limited (MDKCL)
b) Bhaktwatsal Investments Limited (BIL)
c) Kothari and Co Pvt. Limited (KCPL)
d) Kothari Investments & Industries (P) Limited (KIIPL)
e) Commercial House Pvt. Limited (CHPL)
f) Vishnuhari Investments and Properties Limited (VIPL)
g) G Das and Company Pvt. Limited (GDCPL)
h) Kothari Medical Centre (KMC)
B) Key Management Personnel of the Company
a) Mr D K Sharda (DKS) - Managing Director
b) Mr A. Mallick (AM) - Executive Director & CEO (retired w.e.f
31.03.2012)
7 Advances recoverable in cash or kind or for value to be received
include Rs 5.92 lakhs (Previous Year Rs. Nil lakhs) adjustable against
future lease rental of a manufacturing facility availed during the year
as disclosed in Note 42(c ) below.
8 Operating Lease Commitments
a) The Company had entered into a non-cancellable operating lease
agreement in earlier year for a period of 117 Months in connection with
certain Plant and Machinery at its unit at Akbarpur, Punjab. The terms
of the lease include operating term for renewal and restrict the right
to sell, sub-let or allow any third person to use the machinery without
the prior consent of the lessor in writing.
During the year lease has expired and the Company has charged related
lease rental of Rs. 19.75 lakhs (Previous Year - Rs 26.33 lakhs) in the
Statement of Profit and Loss under the head Machinery Hire Charges.
b) The Company has taken various Plant and Machinery for its
Engineering (MICCO) Division under cancellable operating lease. Lease
range for the period between 3 to 8 months. During the year the Company
has charged related lease rental of Rs 3,37.00 lakhs (Previous Year -
Rs 2,91.83 lakhs) in the Statement of Profit and Loss under the head
Machinery Hire Charges.
c) The Company has entered into a non- cancellable operating lease
agreement during the year 2011-12 in respect of lease rental of a tea
manufacturing facility for a period of Thirteen months. The terms of
the lease include restriction to sell, sub-let and or part with
possession of the let-out premises without prior permission of the
lessor. As per terms of the lease, an additional rent at a prescribed
rate is payable from 1st February, 2012 onwards in case of production
from the let-out premises exceeds a specified limit.
d) The Company has given office premises under cancellable operating
leases. These leasing arrangements range between 3 years and 15 years
generally or longer and are usually renewable by mutual consent on
mutually agreeable terms. Initial Direct costs for such leases are
borne by the Company and charged off to revenue. Lease rentals are
recognized as income which was Rs. 4,83.41 lakhs during the year
(Previous Year - Rs. 4,30.93 lakhs). The gross value and accumulated
depreciation of such asset as at 31st March, 2012 was Rs. 23.59 lakhs
(Previous Year - Rs. 23.59 lakhs) and Rs 23.55 lakhs (Previous Year -
Rs. 23.55 lakhs) respectively.
e) The Company has certain operating leases for premises (residential,
offices and godowns) which are not non-cancellable range between 3
months to 5 years generally and are usually renewable by mutual consent
on mutually agreeable terms. The aggregate lease rentals payable are
charged in the Statement of Profit & Loss Account under the head Rent
(Note - 28).
9 The revised Schedule VI has become effective from 1st April, 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2011
1. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs. 11,52,37 thousands (Previous Year -
Rs. 1,60,75 thousands) net of advances Rs. 1,95,39 thousands (Previous
Year - Rs. 33,54 thousands).
2. Contingent Liabilities: Rs. '000
As at As at
31st March 31st March
2011 2010
a) Claims against the Company not
acknowledged as debts :
i) ESI 17,75 17,75
ii) Sales Tax 7,59,89 1,63,15
iii) Cess on Jute Bags/Jute Twine 7,32 7,32
iv) Cess and Excise on Captive Consumption 11,33 11,33
v) Excise Duty 35,76 36,53
vi) Service Tax 42,46 -
vii) Voltage Surcharge on Electricity Consumed1,87,51 1,87,51
b) Corporate Guarantee given on behalf of Company:
i) Amount of Guarantee given 1,50,00 1,50,00
ii) Amount outstanding as on 31st March 36,59 61,60
Note: In respect of item (a) future cash flows is determinable only on
receipt of judgements pending at various forums/ authorities which in
the opinion of the company is not tenable and in case of item (b) the
maximum amount of cash flows would be the amount of guarantee given by
the Company. There is no possibility of any reimbursement in case of
item (a) above.
3. Secured Loans
3.1 The Term Loan from Vijaya Bank is secured by securitisation of
future rentals by way of assignment of lease agreements with certain
tenant of Company's premises known as "Gillander House" and also
secured/to be secured by first Charge by way of equitable mortgage of
the Company's said premises on pari passu basis with the other Term
lenders viz., State Bank of India (SBI), State Bank of Patiala (SBP),
and IDBI Bank Ltd. (IDBI) for their respective Term Loan under
Technology Up-gradation Fund Scheme (TUFS) A/c 1 & 2 granted to the
Company and Letter of Credit Facility from SBI for purchase of capital
goods.
3.2 The Term Loan from IDBI under Project Finance Scheme is secured by
first charge by way of Equitable Mortgage by deposit of Title Deeds of
the Company's immovable properties situated at Akbarpur in Punjab and
at Champdani in West Bengal and also secured by way of hypothecation of
all the movable assets both present and future relating to North India
Spinning Mill, GIS Cotton Mill and MICCO Divisions of the Company both
present and future but subject to prior charge(s) created on Current
Assets relating to North India Spinning Mill, GIS Cotton Mill and MICCO
Divisions of the Company in favour of the Company's Working Capital
Bankers.
3.3 The Term Loans from IDBI, SBP and SBI (under TUFS A/c 1 & 2 ) and
Letter of Credit Facility from SBI for purchase of capital goods are
secured/to be secured by first charge by way of Equitable Mortgage by
deposit of title deeds of the company's immovable properties situated
at (a) Akbarpur, Punjab (b) Champdani, West Bengal (c) Gillander House,
Kolkata (d) Sodepur, 24 Parganas (North) West Bengal and (e) Konnagar,
West Bengal and also secured by way of 1st charge on entire Fixed
assets, both present and future of the Company except those pertaining
to the Tea Division but subject to prior charge(s) created/to be
created on current assets (except Tea Division) in favour of the
Company's Bankers for securing working capital facilities availed from
time to time in the ordinary course of business. The mortgage and
charge shall rank pari passu with the mortgage and charges created/to
be created in favour of IDBI, SBI, SBP and Vijaya Bank. The term loans
and Letter of Credit for Capital Goods are also secured by guarantee of
a Director.
3.4 The Term Loan from Tea Board under Special Purpose Tea Fund Scheme
(SPTF) is secured/to be secured by second charge by way of equitable
mortgage on Immovable properties situated at the Tea estates and also
further secured/ to be secured by second charge by way of hypothecation
of Tea crop of the estates.
3.5 The Term Loan from Indusind Bank Ltd., and HDFC Bank Ltd., are
secured by hypothecation of the related Equipment/ vehicles purchased
and guaranteed by a director.
3.6 Working Capital Facilities from Banks (except those availed by Tea
Division of the Company from United Bank of India) are secured/ to be
secured by hypothecation of Company's (other than Tea Division) entire
current assets, both present and future, ranking pari passu inter-se,
and guaranteed by a Director and are further secured/ to be secured by
way of second charge on the Fixed Assets of the Company (other than Tea
Division) ranking pari passu inter-se.
3.7 In respect of Tea Division, the working capital facilities from
United Bank of India are secured/ to be secured by Hypothecation of Tea
Crop, Made Tea, Book Debts and all other Current Assets of the Tea
Estates and are further secured/to be secured by way of Equitable
Mortgage on Immovable Properties situated at the Tea Estates.
4. The Company has made necessary application in respect of Chemical
(Waldies) Division for exemption under the Urban Land (Ceiling &
Regulation) Act, 1976 in respect of its landholding held in excess in
terms of the said Act.
5. (a) The Company had entered into a non-cancellable operating lease
agreement in earlier year for a period of 117 Months in connection with
certain Plant and Machinery at its unit at Akbarpur, Punjab. The terms
of the lease include operating term for renewal and restrict the right
to sell, sub-let or allow any third person to use the machinery without
the prior consent of the lessor in writing. The future minimum lease
commitments of the Company at the year-end are as follows:
(b) The Company has taken various Plant and Machinery for its
Engineering (MICCO) Division under cancellable operating
lease. Lease range for the period between 3 to 8 months. During the
year the Company has charged related lease rental of Rs 2,91,83
thousands (Previous Year à Rs 2,35,00 thousands) in the Profit and Loss
Account under the head Machinery Hire Charges (Schedule 16 to
Accounts).
(c) The Company has entered into a non- cancellable operating lease
agreement during the year 2009-10 in respect of lease rental of a tea
manufacturing facility for a period of two years and ten months. The
terms of the lease include restriction to sell, sub-let and or part
with possession of the let-out premises without prior permission of the
lessor. As per terms of the lease, an additional rent at a prescribed
rate is payable from 2nd April, 2009 onwards in case of production from
the let-out premises exceeds a specified limit.
(d) The Company has given office premises under cancellable operating
leases. These leasing arrangements range between 3 years and 15 years
generally or longer and are usually renewable by mutual consent on
mutually agreeable terms. Initial Direct costs for such leases are
borne by the Company and charged off to revenue. Lease rentals are
recognised as income which was Rs.4,30,93 thousands during the year
(Previous Year à Rs. 3,86,24 thousands). The gross value and
accumulated depreciation of such asset as at 31st March, 2011 was Rs.
23,59 thousands (Previous Year à Rs. 23,59 thousands) and Rs 23,55
thousands (Previous Year à Rs. 23,55 thousands ) respectively.
(e) The Company has certain operating leases for premises (residential,
offices and godowns) which are not non-cancellable range between 3
months to 5 years generally and are usually renewable by mutual consent
on mutually agreeable terms. The aggregate lease rentals payable are
charged in the Profit & Loss Account under the head Rent (Schedule 16
to Accounts).
6. Advances recoverable in cash or kind or for value to be received
include Rs Nil thousands (Previous Year Rs. 13,12 thousands) adjustable
against future lease rental of a manufacturing facility availed during
the year as disclosed in Note 12(c) above.
7. Details of Employee Benefits as required by Accounting Standard Ã
15 "Employee Benefits" are as follows:
7.1 Providend Fund
The Company makes a contribution for Provident fund towards defined
contribution Plans for eligible employees. In respect of certain
employees, Provident Fund Contribution is made to Trust Funds
administered by the Company towards defined benefit plans. The company
shall make good for deficiency, if any, in the interest rate declared
by the trust vis-a-vis statutory rate.
During the year, based on applicable rates, the Company has recognised
Rs. 4,82,54 thousands (Previous year - Rs. 4,44,82 thousands) on this
account in "Contribution to Provident Fund" under Schedule 16.
7.2 Employee State Insurance Scheme
The Company make contribution for Employee State Insurance Scheme
towords defined contribution plan. During the year company has
recognised Rs. 85,69 thousands (Previous year - Rs. 63,70 thousands) on
this accounts in "Staff Welfare Expense" under Schedule 16.
7.3 Gratuity
The Company's Gratuity Scheme, a defined benefit plan, is administered
by Life Insurance Corporation of India (LIC) and SBI Life Insurance
Company Ltd (SBI Life). LIC or SBI Life make payments to vested
employees or their nominees upon retirement, death, incapacitation or
cessation of employment of an amount based on the respective employee's
salary and tenure of employment subject to a maximum limit as
prescribed. Vesting occurs upon completion of five years of service.
7.4 Leave Encashment
The Company's leave encashment scheme covers certain categories of
employees. Pursuant to the Scheme cash equivalent of unutilised leave
balance is paid at the time of exit of service.
8. Information in accordance with requirements of Accounting
Statdard-18 on Related Party disclosures prescribed under the Act :- A)
Enterprises over which Key Management Personnel & Relatives of such
Personnel are able to exercise significant influence
a) M.D.Kothari and Company Limited (MDKCL)
b) Bhaktwatsal Investments Limited (BIL)
c) Kothari and Co Pvt. Limited (KCPL)
d) Kothari Investments & Industries Pvt. Limited (KIIPL)
e) Commercial House Pvt. Limited (CHPL)
f ) Vishnuhari Investments and Properties Limited (VIPL) g) G.Das and
Company Pvt. Limited (GDCPL) h) Kothari Medical Centre (KMC)
B) Key Management Personnel of the Company
a) Mr D.K.Sharda (DKS) - Managing Director
b) Mr A.Mallick (AM) - Executive Director & CEO
18. Information given in accordance with requirements of AS-17 on
Segment Reporting prescribed under the Act :
(a) The Company has Six primary business segments viz :
i) Trading Division - Purchase and sale of paints and allied products
ii) Tea Division - Manufacture and sale of tea
iii) Property Division - Letting out property on rent
iv) Textile Division - Comprises manufacture and sale of yarn made out
of Cotton and Man-made Fibre viz., Acrylic, Polyster, Viscose Staple
and Blends thereof. v) Engineering (MICCO) Division - Comprise
manufacture and sale of Steel Structurals , Pipes and Equipments and
Designing , Supplying , Erectioning and Commissioning of projects on
turnkey basis.
vi) Chemical (Waldies) Division - Manufacture of lead oxide, white
lead, lead salts and metallic stearates
9. Taxation
(i) Current Tax charge for the year has been reckoned after taking into
account, benefit under Section 33AB of the Income Tax Act, 1961 (which
are available on timely deposit of required amount with development
bank).
10. There are no Micro, Small and Medium enterprises, as defined in the
Micro, Small, Medium Enterprises Development Act, 2006. The information
has been determined on the basis of information available with the
Company.
11. Previous year's figures have been rearranged / regrouped wherever
necessary.
Mar 31, 2010
1. Schemes of Amalgamation/Arrangement given effect to in earlier
years:
Pending completion of the relevant formalities of transfer of certain
assets and liabilities acquired pursuant to the schemes, such assets
and liabilities remain included in the books of the Company under the
names of the transferor companies amalgamated with the Company from
time to time.
2. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs. 1,60,75 thousands (2009-Rs. 1,61,56
thousands) net of advances Rs. 33,54 thousands (2009-Rs. 60,07
thousands).
3. Contingent Liabilities: Rs. 000
2010 2009
a) Claims against the Company
not acknowledged as debts :
i) ESI 17,75 17,75
ii) Sales Tax 1,63,15 1,64,81
iii) Cess on Jute Bags/Jute Twine 7,32 7,32
iv) Cess and Excise on Captive
Consumption 11,33 11,33
v) Excise Duty 36,53 35,80
vi) Voltage Surcharge on
Electricity Consumed 1,87,51 1,87,51
b) Corporate Guarantee
given on behalf of Company:
i) Amount of Guarantee given* 1,50,00 1,50,00
ii) Amount outstanding as on
31st March 61,60 84,13
* Excluding Rs. 45,00 thousands being guarantee given on behalf of
erstwhile The Tengpani Tea Company Limited which has now been
amalgamated with the Company
Note: In respect of item (a) future cash flows is determinable only on
receipt of judgements pending at various forums/ authorities and in
case of item (b) the maximum amount of cash flows would be the amount
of guarantee given by the Company. There is no possibility of any
reimbursement in case of item (a) above.
4. Secured Loans
4.1 The Term Loan from Vijaya Bank is secured by securitisation of
future rentals by way of assignment of lease agreement with certain
tenant of Companys premises known as Gillander House and also by 1st
Charge by way of equitable mortgage of the Companys said premises on
pari passu basis with the other Term lenders viz., State Bank of India
(SBI), State Bank of Patiala (SBP), and IDBI Bank Ltd. (IDBI) for their
respective Term Loan under Technology Up-gradation Fund Scheme (TUFS)
A/c 2 granted to the Company.
4.2 The Term Loan from IDBI under Project Finance Scheme is secured by
first charge by way of equitable mortgage by deposit of Title Deeds of
the Companys immovable properties situated at Akbarpur in Punjab and
at Champdani in West Bengal and also secured by way of hypothecation of
all the movable assets (except book debts) both present and future
relating to North India Spinning Mill, GIS Cotton Mill and MICCO
Divisions of the Company (except book debts) both present and future
but subject to prior charge(s) created on Current Assets relating to
North India Spinning Mill, GIS Cotton Mill and MICCO Divisions of the
Company in favour of the Companys Bankers.
4.3 The Term Loan from SBI is secured by exclusive first charge on the
entire Plant and Machinery and other assets purchased under TUFS A/c 1
and also secured by first charge by way of equitable mortgage by
deposit of Title Deed of the Companies immovable properties situated at
Akbarpur in Punjab and at Champdani in West Bengal on pari passu basis
with IDBI and guaranteed by a Director.
4.4 The Term Loans from IDBI, SBP and SBI (under TUFS A/c 2 ) are
secured by first charge by way of equitable mortgage by deposit of
title deeds of the Companys immovable properties situated at (a)
Akbarpur, Punjab (b) Champdany, West Bengal (c) Gillander House,
Kolkata (d) Sodepur, 24 Parganas (North) West Bengal and (e) Konnagar,
West Bengal and also secured by way of hypothecation of all the movable
assets (except book debts) both present and future of the Company
except those pertaining to the Tea Division but subject to prior
charge(s) created/to be created on current assets (except Tea Division)
in favour of the Companys Bankers for securing working capital
facilities availed from time to time in the ordinary course of
business. The mortgage and charge shall rank pari passu with the
mortgage and charges created/to be created in favour of IDBI, SBI, SBP
and Vijaya Bank. The term loans are also secured by guarantee of a
Director. The term loan from SBP is further secured by guarantee of a
body corporate.
4.5 The Term Loan from Tea Board under Special Purpose Tea Fund Scheme
(SPTF) is secured by second charge by way of equitable mortgage on
Immovable properties situated at the Tea estates excluding Tea estate
of Tengapani and also further secured by second charge by way of
hypothecation of Tea crop of the estates excluding the Tea estate of
Tengapani.
4.6 The Term Loan from Indusind Bank Ltd., Srei Equipment Finance Pvt
Ltd., and HDFC Bank Ltd., are secured by hypothecation of the related
Equipments / Vehicles purchased and guaranteed by a Director.
4.7 Working Capital Facilities from Banks (except those availed by Tea
Division of the Company from United Bank of India and State Bank of
India) are secured/ to be secured by hypothecation of Companys (other
than Tea Division) Stocks of Raw Materials, Finished Goods,
Stocks-in-Process, Book Debts, Stores and Spares, Usance Bills,
Receipted Challans and Irrevocable Letter of Credit, Export Bills,
Shipping Documents and Other movable assets, ranking pari passu
inter-se, tangible movables of MICCO Division of the Company, both
present and future, and guaranteed by a Director and a body corporate
and are further secured/ to be secured by way of second charge on the
Fixed Assets of the Company (other than Tea Division) ranking pari
passu inter-se.
4.8 In respect of Tea Division, the working capital facilities from
United Bank of India and State Bank of India are secured/ to be secured
by Hypothecation of Tea Crop, Book Debts and all Movable Assets of the
Tea Estates and are further secured/to be secured by way of equitable
mortgage on Immovable Properties situated at the Tea estates.
5. Advances recoverable in cash or in kind or for value to be received
include Rs. Nil thousands (2009- Rs. 1,43 thousands) representing
year-end balance of amounts paid to Financial Institution as upfront
fees for loan restructuring, which is being amortised over the period
through which benefit of lower interest arises.
6. The Company has made necessary application in respect of Chemical
(Waldies) Division for exemption under the Urban Land (Ceiling &
Regulation) Act, 1976 in respect of its landholding held in excess in
terms of the said Act.
Notes:
(i) Green Leaf Plucked (being Raw Material consumed) were harvested in
the Companys own estates as agricultural produce involving integrated
activities of nursery, cultivation, growth, etc. and utilised in the
manufacture of tea and their values at the intermediate stage is not
readily ascertainable. (ii) Excluding Parties Materials mild steel, etc
14,470 M.T. (2009 Ã 15,190 M.T.) pipes 52,893 Mtrs. (2009-17,172 Mtrs)
Sheeting Nil (2009 Ã 6,269 SQM) and 18 M.T. (2009-227 M.T.), Equipment
5,826 M.T. (2009-5,869 M.T.) (iii) As none of the related items
exceeded individually 10% of the total value of consumption
quantitative information has not been provided.
(A) Net of internal consumption of 717 M.T. (2009 Ã 634 M.T.).
(B) Net of Stock loss in Transit 8 M.T. and Stock written off 6 M.T.
(C) Net of Stock written off 1 M.T.
(D) Net of Stock loss in Transit 5 M.T. and Stock written off 1 M.T.
(E) Net of Stock loss in Transit 2 M.T. and Stock written off 1 M.T.
(F) Excludes internal consumption, shortage/(excess), sample and
transit loss 65.52 M.T. (2009- 56.38 M.T.).
(G) Nil M.T. (2009 - 108 M.T.) short billed, being not realisable.
(H) 349 M.T. (2009 - 156 M.T.) short billed, being not realisable.
(I) Fabrication and Erection 369 M.T. (2009 - 80 M.T.) short billed due
to exceeding maximum ceiling of Billing Schedule, being not billable.
($) Including conversion sales of 28 M.T. of Rs. 2,50 thousands (2009 -
53 M.T. of Rs. 4,53 thousands).
(J) Sales includes adjustment of Stock of contract-in-progress.
Note: Materials Short billed and/or for job consumption a) Valves 472
Nos. (2009 Ã 120 Nos.), b) Equipments and Fittings 1,245 Nos. (2009 Ã
277 Nos.) , c) Pipe/Cable Wire 46,052 Mtrs (2009 Ã 11,267 Mtrs.), d)
Pipes/Fittings 5 Lot (2009 Ã 10 Lot), e) Grating, M.S. Steel 89 M.T.
(2009 Ã 100 M.T.), f) Electrical Parts/Motors 326 Nos/Set (2009 Ã 334
Nos/Set), g) Pipe/Fittings 549 M.T. (2009 Ã Nil), h) Coal Tar 678 SQM
(2009 Ã Nil), costing Rs. 13,57,23 thousands (2009 - 5,01,11 thousands)
being excess supply as per contractual obligations but not covered by
billing schedule price break-up.
7. (a) The Company had entered into a non-cancellable operating lease
agreement in earlier year for a period of 117 Months in connection with
certain Plant and Machinery at its unit at Akbarpur, Punjab. The terms
of the lease include operating term for renewal and restrict the right
to sell, sub-let or allow any third person to use the machinery without
the prior consent of the lessor in writing. The future minimum lease
commitments of the Company at the year-end are as follows:
During the year the Company has charged related lease rental of Rs.
26,33 thousands (2009- Rs 26,33 thousands) in the Profit and Loss
Account under the head Machinery Hire Charges (Schedule 17 to
Accounts).
(b) The Company has taken various Plant and Machinery for its
Engineering (MICCO) Division under cancellable operating lease. Lease
range for the period between 3 to 8 months. During the year the Company
has charged related lease rental of Rs 2,35,00 thousands (2009 -
Rs.1,60,41 thousands) in the Profit and Loss Account under the head
Machinery Hire Charges (Schedule 17 to Accounts).
(c) The Company has entered into a non- cancellable operating lease
agreement during the year 2009-10 in respect of lease rental of a tea
manufacturing facility for a period of two years and ten months. The
terms of the lease include restriction to sell, sub-let and or part
with possession of the let-out premises without prior permission of the
lessor. As per terms of the lease, an additional rent at a prescribed
rate is payable from 2nd April, 2009 onwards in case of production from
the let-out premises exceeds a specified limit.
(d) The Company has given office premises under cancellable operating
leases. These leasing arrangements range between 3 years and 15 years
generally or longer and are usually renewable by mutual consent on
mutually agreeable terms. Initial direct costs for such leases are
borne by the Company and charged off to revenue. Lease rentals are
recognised as income which was Rs.3,86,24 thousands during the year
(2009 - Rs. 4,36,65 thousands). The gross value and accumulated
depreciation of such asset as at 31st March, 2010 was Rs. 23,59
thousands (2009 - Rs. 23,59 thousands) and Rs 23,55 thousands ( 2009 -
Rs. 23,55 thousands ) respectively.
8. Advances recoverable in cash or kind or for value to be received
include Rs 13,12 thousands (2009 Rs. 23,43 thousands) adjustable
against future lease rental of a manufacturing facility availed during
the year as disclosed in Note 14(c) above.
9. Employee Benefits
a. With effect from 1st April, 2007 the Company has adopted The
Revised Accounting Standard AS - 15 for employee benefits.
b. Gratuity Fund
The Companys Gratuity Scheme, a defined benefit plan, is administered
by Life Insurance Corporation of India (LIC) and SBI Life Insurance
Company Ltd (SBI Life). LIC or SBI Life make payments to vested
employees or their nominees upon retirement, death, incapacitation or
cessation of employment of an amount based on the respective employees
salary and tenure of employment subject to a maximum limit of Rs. 3,50
thousands (Rs. 10,00 thousands w.e.f 24th May 2010). Vesting occurs
upon completion of five years of service.
c. Leave Encashment
The Companys leave encashment scheme covers certain categories of
employees. Pursuant to the Scheme cash equivalent of unutilised leave
balance is paid at the time of exit of service.
Notes: 1) The estimate of future salary increases is considered after
taking into account inflation, promotion and other relevant factors.
2) The expected return on Plan assets is based on actuarial expectation
of the average long term rate of return expected on investments of the
funds during the estimated terms of obligations.
10. Information in accordance with requirements of Accounting
Statdard-18 on Related Party disclosures prescribed under the Act :- A)
Enterprises over which Key Management Personnel & Relatives of such
Personnel are able to exercise significant influence
a) M. D. Kothari and Company Limited (MDKCL)
b) Bhaktwatsal Investments Limited (BIL)
c) Kothari and Co Pvt. Limited (KCPL)
d) Kothari Investments & Industries Pvt. Limited (KIIPL)
e) Commercial House Pvt. Limited (CHPL)
f ) Vishnuhari Investments and Properties Limited (VIPL) g) G. Das and
Company Pvt. Limited (GDCPL)
B) Key Management Personnel of the Company
a) Mr D. K. Sharda (DKS) - Joint Managing Director
(Managing Director w.e.f. April 01, 2010)
b) Mr A. Mallick (AM) - Executive Director
(Executive Director & CEO w.e.f. April 01, 2010)
c) Mr S. K. Lakhotia (SKL) - Executive Director & CEO
(resigned w.e.f. March 31, 2010)
11. Information given in accordance with requirements of AS-17 on
Segment Reporting prescribed under the Act :
(a) The Company has Six primary business segments viz :
i) Trading Division - Purchase and sale of paints and allied products
ii) Tea Division - Manufacture and sale of tea
iii) Property Division - Letting out property on rent
iv) Textile Division - Comprises manufacture and sale of yarn made out
of Cotton and Man-made Fibre viz., Acrylic, Polyster,Viscose Staple
and Blends thereof.
v) Engineering (MICCO) Division - Comprise manufacture and sale of Steel
Structurals , Pipes and Equipments and Designing , Supplying , Erectioning
and Commissioning of projects on turnkey basis.
vi) Chemical (Waldies) Division - Manufacture of lead oxide, white lead,
lead salts and metallic stearates
Figures in brackets represent particulars for 2008-2009.
(b) Secondary Segment
The Company operates predominantly within geographical limits of India
accordingly Secondary Segment has not been considered.
12. Taxation
(i) Current Tax charge for the year has been reckoned after taking into
account, benefit under Section 33AB of the Income Tax Act, 1961 (which
are available on timely deposit of required amount with development
bank).
(iii) In accordance with the requirements of Accounting Standard on
Accounting for Taxes on Income, Deferred Tax Liability, net of Deferred
Tax Assets, has been recognised in the Accounts as explained below:
a) Deferred Tax Assets comprise those arising out of provision for
doubtful debts, items under the Income Tax Act, which will be allowed
on actual payment and losses.
13. Previous years figures have been rearranged / regrouped wherever
necessary.
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