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Notes to Accounts of Kanco Tea & Industries Ltd.

Mar 31, 2015

1. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point), ISO 22000 Food Safety Management. The quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirements of ISO 9001:2008. Mackeypore Tea Estate & Lakmijan Tea Estate has been issued verification certificate under trusttea code for sustainable tea in India.

Terms and rights attached to Equity Shares

The company has only one class of Equity Share having par value of Rs 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Share will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of Rs100/- each fully paid up. Preference Shares carry a dividend of 7% ,only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March,2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

Nature of security

Term Loan from Bank is secured by hypothecation of green tea leaves, before and after plucking, teas in process, finished tea in stock/transit or tea lying with brokers, book debts (present and future) and by way of equitable mortgage of immovable properties and machineries of tea estates as collateral security and further guaranteed by a director.

Term Loan in the nature of Car Loan is secured by Hypothecation of Motor Cars.

Loan from Tea Board is secured by hypothecation of tea crops and mortgage of title deeds of Tea Estates in favour of Tea Board ranking subsequent to charge created in favour of Punjab National Bank.

Notes on Unsecured Loans

Unsecured Loan from the related parties are outstanding for a period of more than twelve months. Repayment of these loans will be made beyond 12 months from the date of reporting.

Deposits have been repaid on their due date and those deposits whose due dates were after 31st March,2015 have also been repaid on 31st March,2015 in accordance with section 74 (1) (a) of Companies Act, 2013 read with rule 20 of the Companies (Acceptance of Deposits Rules) 2014.

2. Contingent Liabilities and commiments (To the extent not provided for)

a) Contingent Liablilities

Claims, disputes and demands not acknowledged as debts:

i) Demand of Rs 7,94,960/- (P.Y Rs7,94,960/-) for F.Y 2009-10 has been raised under West Bengal Value Added Tax Rules,2005 by Joint Commissioner of Commercial Taxes,for which an appeal has been filed on 18/03/2014 before the West Bengal Commercial Taxes Appellate & Revision Board, West Bengal.

ii) Demand of Rs5,62,917/- (P.Y Nil) for A.Y 2011-2012 has been raised on 07/07/2014 under The Central Sales Tax (West Beangal) Rules, 1958 and against which, the Company has filed an Appeal with JCCT, West Bengal, Kolkata (South Circle) on 11/09/2014.

(iii) Demand of Rs2,99,714/- (P.Y. Nil) for A.Y 2011-2012 has been raised on 07/07/2014 under The West Bengal Value Added Tax Rules, 2005 and against which, the Company has filed an Appeal with JCCT, West Bengal, Kolkata (South Circle) on 11/09/2014.

(iv) Income Tax demand of Rs1,24,257/- has been raised by the I.T.O. Ward 4(4) after giving effect to the order of CIT (Appeals)-IV passed under section 250 of the Income Tax Act, 1961 against which the Company has filed a rectification application.

(v) The Company has paid Rs Nil (P.Y. Rs24,72,214/-) as interim measure as per order of Hon''ble High Court at Guwahati against debit note raised by GAIL (India) Limited for Rs68,80,820/- (P.Y. Rs68,80,820/-). Matter is now pending with Hon''ble Supreme Court.

(vi) Demand of Rs4,58,943/- (P.Y.Rs4,58,943/-) & Rs5,39,698/- (P.Y.Rs5,39,698/-) for A.Y. 2009-10 & 2010-11 respectively has been raised for Assam Agricultural Income Tax. The Company has filed an appeal and Rs Nil (P.Y. Rs1,14,736/-) & RsNil (P.Y. Rs1,34,925/-) for A.Y. 2009-10 & 2010-11 respectively has been paid.

(vii) Demand of Rs35,684/- has been raised u/s 143(3) of The Income Tax Act,1961 for the A.Y 2012-13 on date 13/06/2014 and an appeal against the same has been filed with CIT (Appeal), Kolkata.

The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Commitments

Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs5,34,325/- (Previous Year Rs8,74,910/-).

3. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to RsNil (P.Y. Rs1,73,250 /-)

4. Sundry Creditors do not include any amount due (Previous Year Rs Nil) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act,2006" as per the information available with the Company.Hence disclosures regarding a) Amount due and outstanding to suppliers as at the accounting period, b)Interest paid during period, c) Interest payable at the end of the accounting period and d) Interest accrued at the end of the accounting period has not been disclosed or provided.

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs 1,50,592/- and (Previous Year Rs 2,82,996/-) based on actuarial valuation. During the year ended 31st March, 2015 the company has paid Rs 2,78,209/- and (Previous Year Rs 1,23,981/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrawal from service or from retirement from services.In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 "Segment Reporting" are not attracted.

6. Related Party Disclosures

Related party disclosures, as required by AS-18 "Related Party Disclosures" are given below 1. Relationships :

(i) Key Management Personnel and their relatives :

Mrs. Anuradha Kanoria

Mr. Umang Kanoria

Ms. Stuti Kanoria

Mr. Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H. U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B. T. Investments Private Limited

Cosmos Resources Private Limited E. T. Resources Private Limited Facitcon Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited OCL Investments & Leasing Limited S. T. Investment Private Limited Suryasakti Commodities Private Limited

7. A company namely Winnow Investments & Securities Pvt Ltd. has been incorporated on 30th March, 2015 and a sum of Rs2,83,770/- has been incurred on incorporation, which has been shown as an advance in Schedule 19 "Short Term Loans and Advance". The wholly owned subsidiary did not commence business within 31st March,2015 and therefore the Consolidated Financial Statements as required under Accounting Standard - 21 "Consolidated Financial Statement" has not been prepared.

8. The company has assessed the carrying amount of the assets vis a vis their recoverable values and no impairment has been envisaged at the balance sheet date as per the requirements of Accounting Standard -28 on "Impairment of Assets".

9. In terms of Accounting Standard 22, Deferred Liability Tax Liablity reversed and recognised during the year is Rs10,72,782 (Previous Year DTL charged is Rs9,26,986). Consequently, the net DTL as the Year end stands Rs24,17,892 (Previous Year Rs34,90,674).

10. Effective from April 01,2014, the Company has changed Depreciation rates on various fixed assets as per the remaining useful lives specified in Part C of Schedule II to the Companies Act,2013. Based on the current estimate, the carrying value, net of residual value as at April 01, 2014 of Rs20,21,285/- on account of the fixed assets whose useful life is already exhausted as on April 01, 2014 has been adjusted to Retained Earnings. Had there not been any change in useful lives of the assets, depreciation for the year ended March 31, 2015, would have been lower by Rs64,19,779/-.

11. The Company has made a provision of Rs8,86,737/- in its books of accounts towards contribution for Corporate Social Responsibility under section 135 of the Companies Act, 2013. The company has formed "Kanco CSR Trust" , which got resgistered on 31st March, 2015. The amount earmarked for CSR activities in F.Y. 2014-2015 will be incurred in the financial year 2015-2016 through "Kanco CSR Trust" for activities specified in Schedule VII of the Companies Act,2013 in local areas in which tea estates of the Company are located.

12. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

The accompanying notes are an integral part of the financial statements.


Mar 31, 2014

Terms and rights attached to Equity Shares

The company has only one class of Equity Share having par value of Rs.10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Share will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of "100/- each fully paid up. Preference Shares carry a dividend of 7% ,only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March,2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

2. Contingent Liabilities not provided for in respect of following:

a) Claims, disputes and demands not acknowledged as debts: i) Demand of Rs.7,94,960/- (P.Y. Rs.1,15,28,196/-) for F.Y. 2009-10 has been raised under West Bengal Value Added Tax Rules,2005 by Joint Commissioner of Commercial Taxes,for which an appeal has been filed on 18/03/2014 before the West Bengal Commercial Taxes Appellate & Revision Board, West Bengal.

ii) Demand of Rs.16,243/- (P.Y. Rs.Nil) has been raised by Deputy Commissioner Commercial Taxes, Park Street Range, Kolkata under Central Sales Tax Act for the F.Y. 2010-11 and Company has filed an appeal before Joint Commissioner of Commercial Taxes, South Circle, Kolkata.

iii) Income Tax demand for Rs.2,48,520/- (P.Y. Rs.2,48,520/-) for A.Y. 2010-11, for which an amount of Rs.1,24,260/- (P.Y. Rs.Nil) has been deposited Under protest. The Company has filed an appeal before Commissioner of Income Tax (Appeals).

iv) Debit note raised by GAIL (India) Limited Rs.68,80,820/- (P.Y. Rs.68,80,820/-). Against this the Company has paid Rs.24,72,214/- (P.Y.Rs. Nil) as interim measure as per order of Hon''ble High Court at Guwahati. Matter is now pending with Hon''ble Supreme Court.

(v) Demand of Rs.4,58,943/- (P.Y. Rs.Nil) & Rs.5,39,698/- (P.Y. Rs.Nil) for A.Y. 2009-10 & 2010-11 respectively has been raised for Assam Agricultural Tax. The Company has filed an appeal and Rs.1,14,736/- (P.Y. Rs.Nil) & Rs.1,34,925/- (P.Y. Rs.Nil) for A.Y. 2009-10 & 2010-11 respectively has been paid.

The amounts shown in the item (a) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs.8,74,910/- (Previous Year Rs.7,19,950/-).

3. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 1,73,250/- (P.Y. Rs.4,81,783 /-)

4. Sundry Creditors do not include any amount due (Previous Year Rs. Nil/-) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act,2006" as per the information available with the Company.Hence disclosures regarding a) Amount due and outstanding to suppliers as at the accounting period, b)Interest paid during period, c) Interest payable at the end of the accounting period and d) Interest accrued at the end of the accounting period has not been disclosed or provided.

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs.2,82,996/- and (Previous Year Rs.3,69,415/-) based on actuarial valuation. During the year ended 31st March, 2014 the company has paid Rs.1,23,981/- and (Previous Year Rs.1,01,922/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrwal from service or from retirement from services.In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 "Segment Reporting" are not attracted.

35. Related Party Disclosures

Related party disclosures, as required by AS-18 “Related Party Disclosures” are gives below :- 1. Relationships :

(i) Key Management Personnel and their relatives : Mrs. Anuradha Kanoria Mr. Umang Kanoria Ms. Stuti Kanoria Master Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B. T. Investments Private Limited Cosmos Resources Private Limited E. T. Resources Private Limited Facitcon Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited OCL Investments & Leasing Limited S. T. Investment Private Limited Suryasakti Commodities Private Limited

6. The company has assessed the carrying amount of the assets vis a vis their recoverable values and no impairment has been envisaged at the balance sheet date as per the requirements of Accounting Standard -28 on "Impairment of Assets".

7. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point), ISO 22000 Food Safety Management and ISO 9001:2008.

8. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

The accompanying notes are an integral part of the financial statements.


Mar 31, 2013

1. Contingent Liabilities not provided for in respect of following:

a) Claims, disputes and demands not acknowledged as debts: i) Sales Tax demand of Rs. 1,15,28,196/- (Previous Year Rs. Nil). The Company has filed an appeal before the Joint Commissioner of Sales Tax.

ii) Income Tax demand Rs. 2,48,520/- (Previous Year Rs. Nil). Against this the Company has deposited Rs. 1,24,260/- under protest. The Company has filed an appeal before Commissioner of Income Tax (Appeals)

iii) Debit note raised by GAIL (India) Limited Rs. 68,80,820/- (Previous Year Rs. 49,44,429/-). Against this the Company has paid Rs. 24,72,214 (Previous Year Rs. 7,99,000/- )as interim measure as per order of Hon''ble High Court at Guwahati.

The amounts shown in the item (a) reprsent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal positions against such disputes.

b) Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs. 7,19,958/- (Previous Year Rs. 7,43,699/-).

2. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for, amount to Rs. 4,81,783/- (Previous Year Rs. 5,76,912/-)

3. Sundry Creditors do not include any amount due (Previous Year Rs. Nil/-) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act,2006" as per the information available with the Company. Further no interest has been paid/payable to such Enterprises.

The Estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs. 3,69,415/- and (Previous Year Rs. 4,24,998/-) based on actuarial valuation. During the year ended 31st March, 2013 the company has paid Rs. 1,01,922/- and (Previous Year Rs. 90,957/-) as actual leave encashment.

Note: Encashment of leave is payable on death whilst in service, withdrawal from service or from retirement from services.In the view of salary growth rates have been used to project the salary at the time when encashment of leave is assumed to take place. While making actuarial valuations certain assumptions, such as mortality rates, withdrawal rates and retirement age etc . have been taken into consideration by the actuarial valuer. The Method used for such valuation is projected Unit Credit Method, which are in compliance with AS-15 (Revised 2005) as issued by ICAI and Guidance Note 26 issued by Institute of Actuaries of India.

4. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 "Segment Reporting" are not attracted.

5. Related Party Disclosures

Related party disclosures, as required by AS-18 "Related Party Disclosures" are gives below :- 1. Relationships :

(i) Key Management Personnel and their relatives : Mrs. Anuradha Kanoria Mr. Umang Kanoria Miss Stuti Kanoria Master Satvik Kanoria Stuti Welfare Trust Satvik Welfare Trust Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B. T. Investments Private Limited Cosmos Resources Private Limited E. T. Resources Private Limited Facitcon Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited OCL Investments & Leasing Limited S. T. Investment Private Limited Suryasakti Commodities Private Limited

6. The company has assessed the carrying amount of the assets vis a vis their recoverable values and no impairment has been envisaged at the balance sheet date as per the requirements of Accounting Standard -28 on "Impairment of Assets".

7 Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of HACCP (Hazard Analysis and Critical Point and ISO 9001:2008)

8. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

The accompanying notes are an integral part of the financial statements.


Mar 31, 2012

Terms and rights attached to Equity Shares

The company has only one class of Equity Shares having par value of Rs.10/- per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Terms and rights attached to Preference Shares

During the year ended 31st March, 2004, The Company had issued 40,000 7% Non Cumulative Redeemable Preference Shares of Rs.100/- each fully paid up. Preference Shares carry a dividend of 7%, only when it is declared by the company. The dividend is paid by the company in Indian Rupees only. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Each holder of Preference share is entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to Preference Shares.

The 7% Non Convertible Preference Shares will be redeemed in the year ended 31st March, 2023 at par value only. In the event of liquidation of the company before redemption of Preference Shares, the holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital.

Notes on Unsecured Loans

Unsecured Loan from the related parties are outstanding for a period of more than twelve months. Repayment of these loans will be made beyond 12 months from the date of reporting.

The maturity period of deposits taken from related parties varies from 12 months and 36 months from the date of their acceptance. All these deposits are renewed by the company on the date of maturity subject to applicable terms & conditions.

Particulars 31.03.2012 (Rs.) 31.03.2011 (Rs.)

1. Contingent Liabilities not provided for :

Irrecvocable Stand by Revolving Letter of Credit issued in favour of 7,43,699 3,84,593

GAIL (India) Ltd.

Bank Guarantee issued in favour of Sales Tax Authorities, West Bengal 5,62,500

7,43,699 9,47,093

2. Estimated amount of contracts remaining to be executed on capital account for Rs. 5,76,912/- (P. Y. Rs. Nil) but not provided for.

3. Sundry Creditors do not include any amount due (Previous Year Rs. Nil) from suppliers as defined under the 'Micro Small & Medium Enterprises Development Act, 2006" as per the information available with the Company.

4. Amount recognised as an expense in respect of Compensated Leave Absences is Rs. 4,24,998/- (Previous Year Rs. 6,06,817/-) based on actuarial valuation.

5. Segment Reporting

The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 'Segment Reporting" are not attracted.

6. Related Party Disclsoures

Related party disclosures, as required by AS-18 'Related Party Disclosures" are given below.

1. Relationships :

(i) Key Management Personnel and their relatives

Mrs. Anuradha Kanoria

Mr. Umang Kanoria

Miss Stuti Kanoria

Master Satvik Kanoria

Stuti Welfare Trust

Satvik Welfare Trust

Umang Kanoria H.U.F.

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence :

B. T. Investments Private Limited

Cosmos Resources Private Limited

E. T. Resources Private Limited

Facitcon Investments Private Limited

Innova Properties Private Limited

Kanco Enterprises Limited

Milan Agencies Private Limited

Nidhi Private Limited

OCL Investments & Leasing Limited

S. T. Investment Private Limited

Suryasakti Commodities Private Limited

7. Corporate Information

Kanco Tea & Industries Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of black tea. The company caters to only the domestic market. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirements of HACCP (Hazard Analysis and Critical Point and ISO 9001:2008.

8. The financial statements for the year ended 31st March,2012 has been prepared as per Notification on Revised Schedule - VI under the Companies Act,1956 and accordingly, the previous year figures have also been rear- ranged/reclassified to confirm to this years classification.

The accompanying notes are an integral part of the financial statements.


Mar 31, 2011

31st March, 31st March, 2011 2010 Rs. Rs.

1. Contingent liabilities not provided for :

Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. 3,84,593 4,01,746

Bank Guarantee issued in favour of Sales Tax Authorities,West Bengal 5,62,500 -

2. Estimated amount of contracts remaining to be executed on capital account for Rs.Nil (P.Y. Rs.1,28,900/-) but not provided for.

3. Sundry Creditors do not include any amount due (Previous Year Rs. Nil/-) from suppliers as defined under the "Micro Small & Medium Enterprises Development Act, 2006" as per the information available with the Company.

4. Prior period adjustments represent a sum of Rs. 3,63,303 (net credit) [Previous Year Rs. 2,114 (net debit)] shown under "OTHER INCOME" in Schedule '14'.

5. 27050 units of shares costing Rs. 90,60,774 was purchased and 27050 units of shares were sold for Rs. 94,23,092 during the year

6. Additional Information pursuant to the provisions of Part II of the Schedule VI of the Companies Act, 1956 :

7. Details of Raw Materials Consumed :

Green Tea Leaves Consumed (Raw Materials) 85,43,819 Kgs. (P.Y. 88,30,761 Kgs) of which 20,07,459 Kgs. (P.Y. 14,01,537 Kgs) Purchased - Value Rs. 3,62,41,647/- (P.Y.Rs.2,52,05,914/-)

vi. Amount recognised as an expense in respect of Compensated Leave Absences is Rs.6,06,817/- [P.Y. Rs.(73,601/-)] based on acturial valuation.

vii. Current year figures are not comparable with that of previous year in view of creation of new fund with LIC of India consequent to Scheme of Arrangement.

8. Related Party Disclosures

Related party disclosures, as required by AS-18 "Related Party Disclosures" are given below:

1. Relationships :

(i) Key Management Personnel and their relatives: Mrs. A. Kanoria Mr. U. Kanoria Miss S. Kanoria Master S. Kanoria

(ii) Enterprises over which the key management personnel and/or their relatives have significant influence : B.T.Investments Pvt. Ltd Cosmos Resources Pvt. Ltd E.T.Resources Pvt. Ltd Facitcon Investments Private Limited Innova Properties Pvt. Ltd. Kanco Enterprises Limited Milan Agencies Pvt. Ltd. Nidhi Pvt Limited OCL Investments & Leasing Ltd. S.T.Investment Pvt. Ltd. Suryasakti Commodities Pvt. Ltd.

 
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