Mar 31, 2017
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 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.
1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
2. Contingent Liabilities
Claims, disputes and demands not acknowledged as debts:
3. Demand of Rs.7,94,960/- (P.Y. Rs.7,94,960/-) 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.
4. Income Tax demand of Rs. 1,24,257/- for the A.Y. 2010-11 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.
5 The Company has paid Rs.24,72,214/- as interim measure as per order of Honâble High Court at Guwahati against debit note raised by GAIL (India) Limited for Rs. 68,80,820/- (P.Y. Rs.68,80,820/-). Matter is now pending with Honâble Supreme Court.
6. Demand of Rs.35,684/- has been raised vide order u/s 143(3) of the Income Tax Act,1961 for the A.Y 2012-13 dated 13/06/2014 and an appeal against the same has been filed with CIT (Appeal)-2, Kolkata.
7. Demand of Rs.100/- has been raised vide order u/s 143(3) of the Income Tax Act,1961 for the A.Y 2013-14 dated 20/01/2016 and an appeal against the same has been filed with CIT (Appeal)-2, 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.
8. Commitments
Outstanding commitment in respect of Irrevocable Stand by Revolving Letter of Credit issued in favour of GAIL (India) Ltd. Rs.22,07,139/- (Previous Year Rs.22,68,177/-).
9. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for amount to Rs. 51,48,910/-/- (Previous Year Rs. 3,60,000/-)
10. Sundry Creditors do not include any amount due (Previous Year Rs. Nil) from suppliers as defined under the âMicro Small & Medium Enterprises Development Act, 2006â 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.
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.
The past service cost has been recognized as Rs.71,67,366/- as Ryam Commerce & Plantations Limited has transferred Rs. 63,00,000/- as current liabilities on account of Gratuity in terms of Business Transfer Agreement dated 29th March, 2017. The said Rs. 63,00,000/- has been subtracted from the total purchase consideration payable to Ryam Commerce & Plantations Limited.
11. Amount recognized as an expense in respect of Compensated Leave Absences is Rs.2,37,113/- and (Previous Year Rs. 3,52,711/-) based on actuarial valuation. During the year ended 31st March, 2017 the Company has paid Rs. 1,64,545/- and (Previous Year Rs. 1,55,890/-) 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, 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.
12. SEGMENT REPORTING
The Company has only one segment i.e. manufacturing of Black Tea and as a result the reporting required of AS - 17 âSegment Reportingâ are not attracted.
13. The Company has made a provision of Rs.6,03,759/- (Previous Year Rs.7,92,306/- in its books of accounts towards contribution for Corporate Social Responsibility under Section 135 of the Companies Act, 2013. Out of Rs.10,11,802/- earmarked for CSR activities in F.Y. 2016-2017 and F.Y. 2015-2016, Rs.8,08,000/- has been incurred for activities specified in Schedule VII of the Companies Act, 2013 in the financial year 2016-2017 through âKanco CSR Trustâ.
14. 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 at ââThe Calcutta Stock Exchange Limitedââ and permitted to be traded at the ââBombay Stock Exchangeââ. 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.
15. During the year, the Company has acquired Bamonpookrie Tea Estate from Ryam Commerce & Plantations Limited (herein after referred as Seller) in terms of Business Transfer Agreement dated 29th March, 2017 executed between the Company and Seller at a purchase consideration of Rs.28,50,00,000/-(Rupees Twenty Eight Crores Fifty Lakhs Only) and the undernoted assets have been shown as addition to Property, Plant & Equipments in Notes on Financial Statements No.11 as given below: -
16. In accordance with revised accounting standard AS-10 on âProperty, Plant & Equipment (PPE)â effective from 1st April, 2016, Bearer Plants have been recognized as an item of PPE and has been depreciated over their useful life resulting an additional depreciation amounting to Rs.10,81,363/- for the year ended 31st March, 2017. Expenditure on replanting of old tea bushes have been capitalized to the tune of Rs.47,03,805/- during the year ended 31st March, 2017 to comply with the requirements of revised AS-10, which was hitherto charged to Statement of Profit & Loss.
During the year due to change in accounting policy in respect of Property, Plant & Equipment, corresponding changes as depreciation, profit for the year has been affected as below: -
17. During the year, profit has increased by Rs. 47,03,805/- on account of replanting expenses, capitalized due to change in AS-10 on âProperty, Plant & Equipment (PPE)â effective from 1st April, 2016
18. During the year, profit has decreased by Rs.10,81,363/- on account of depreciation on bearer plants as per revised AS-10 on âProperty, Plant & Equipment (PPE)â effective from 1st April, 2016.
Mar 31, 2016
Terms and rights attached to Equity Shares
The company has only one class of Equity Share having par value of '' 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.
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 favor 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.
Cash credit 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.
1. Contingent Liabilities and Commitments (To the extent not provided for)
a) Contingent Liabilities
Claims, disputes and demands not acknowledged as debts:
i) Demand of Rs, 7,94,960/- (P.Y. Rs, 7,94,960/-) 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) Income Tax demand of Rs, 1,24,257/- for the A.Y. 2010-11has 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.
(iii) The Company has paid Rs, 24,72,214/- as interim measure as per order of Honâble High Court at Guwahati against debit note raised by GAIL (India) Limited for Rs, 68,80,820/- (P.Y. Rs, 68,80,820/-). Matter is now pending with Honâble Supreme Court.
(iv) Demand of Rs, 35,684/- 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)-2, Kolkata.
(v) Demand of Rs, 100/- has been raised u/s 143(3) of The Income Tax Act,1961 for the A.Y 2013-14 on date 20/ 01/2016 and an appeal against the same has been filed with CIT (Appeal)-2, 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. Rs, 22,68,177/- (Previous Year Rs, 5,34,325/-).
2. Estimated value of contracts on capital account, excluding capital advances, remaining to be executed and not provided for amount to Rs, 3,60,000/- (Previous Year Rs, Nil)
3. Sundry Creditors do not include any amount due (Previous Year Rs, Nil/-) from suppliers as defined under the âMicro Small & Medium Enterprises Development Act,2006â 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.
4. Disclosure pursuant to Accounting Standard -15 (Revised) âEmployee Benefitsâ
a. Defined Contribution Plans :
Contribution to Defined Contribution Plans, recognized as expense for the year included in âEmployee Benefit Expenseâ in Note-24 to the statement of Profit & Loss Account is as under :
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 recognized as an expense in respect of Compensated Leave Absences is Rs, 3,52,711/- and [Previous Year Rs, 1,50,592/-] based on actuarial valuation. During the year ended 31st March,2016 the company has paid Rs, 1,55,890/- and (Previous Year Rs, 2,78,209/-) 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 value. 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 âSegment Reportingâ are not attracted.
6. Related Party Disclosures
Related party disclosures, as required by AS-18 âRelated Party Disclosuresâ are given below :-
7. 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 Faction Investments Private Limited Innova Properties Private Limited Kanco Enterprises Limited Milan Agencies Private Limited Nidhi Private Limited
S. T. Investment Private Limited Suryasakti Commodities Private Limited Kanco CSR Trust
(iii) Subsidiary
Winnow Investments and Securities Private Limited
8. The following transactions were carried out with the related parties in the ordinary course of business. Details relating to parties referred to in item 1(i), 1(ii) and 1(iii) above:
9. 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 âImpairment of Assetsâ.
10. In terms of Accounting Standard 22, Deferred Tax Liability reversed and recognized during the year is Rs,4,65,245 (Previous Year DTL reversed is Rs,10,72,782). Consequently, the net DTL as the Year end stands Rs,19,64,505 (Previous Year Rs,24,29,750).
11. 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 Rs,20,21,285/- 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 Rs,64,19,779/-.
12. The Company has made a provision of Rs,7,92,306/- (Previous Year Rs,8,86,737/- in its books of accounts towards contribution for Corporate Social Responsibility under section 135 of the Companies Act, 2013. Out of Rs,16,79,043/- earmarked for CSR activities in F.Y. 2014-2015 and F.Y. 2015-2016, Rs,12,74,000/- has been incurred for activities specified in Schedule VII of the Companies Act,2013 in the financial year 2015-2016 through âKanco CSR Trustâ.
13. 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 Mackey pore 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 Mackey pore 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 trust tea code for sustainable tea in India.
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 ÂRelated 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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