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Notes to Accounts of Keerthi Industries Ltd.

Mar 31, 2015

1. Pursant to the Companies Act 2013(the act) being effective from April 1, 2014 the Company has revised depreciation rates on fixed assets as per the use full life specified in Part 'C' of Schedule II of the Act . As a result of this change the depreciation charred for the year ended 31st March 2015 is lower by Rs. 343.50 lakhs accordingly the profit as gone up by same amount.

2. In the year 2007-08 Company paid Rs. 1.47 crores to the land owners for acres 98 and 15 grunts in the vicinity of the Cement factory for surrendering their Pattadar pass Books, to the Revenue authorities, Government of Telangana to facilitate granting of the lease rights in favor of the company, in respect of the said surrendered lands for lime stone mining. Company's application for lease rights in this regard is under process. The said amount of Rs. 1.47 crores is shown as advance for mining lease rights.

3. Upfront lease amount of Rs. 18 lakhs paid to Karnataka Forest Dept. towards Wind mill land lease is amortized over the lease period of 30 years. Accordingly Rs. 0.6 lakhs for the current year is amortized (up to Previous year Rs. 4.20 lakhs).

4. The Company could not obtain confirmation of balances as at 31st March 2015 in respect of trade receivables Rs. 170.35 lakhs, Loans and advances Rs. 2073.52 lakhs and Trade payables amounting to Rs. 1467.71 lakhs ,and the Company hopes that they would be collected, adjusted and paid.

5. The National Savings Certificate VIII issue (shown under investments) has been pledged with Sales Tax Department towards Sales Tax Deposit.

6. Defined Benefit Scheme in accordance with AS-15 "Employee Benefits. As per actuarial valuation as on 31.03.2015 and recognized in financial statements in respect of employee defined benefit scheme.

7. Deferred Tax:

In accordance with accounting standard 22, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company worked out taxes on income resulting deferred tax asset of Rs. 0.58 lakhs as at 31.03.2015.The components of deferred tax assets and deferred tax liabilities are given hereunder.


Mar 31, 2014

A. Terms/ rights attached to equity shares.

Each holder of equity share is entitled to one vote per share. The dividends recommended by the Board of Directors, if any are subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity share holders are entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of shares held.The rights attached to the Equity shareholders are subject to the provisions of Companies Act, 1956 and other applicable laws.

B. Terms/ rights attached to 9% cumulative redeemable preference shares.

Preference shares would not carry any voting rights. Dividends recommended by the Board of Directors for not exceeding the copun rate, if any, are subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the preferential share holders will have preferential right over the Equity share holders for their principal amount and the dividend, if any, declared thereon on remaining assets of the Company after distribution to the secured and the preferential creditors.The rights attached to the 9% Cumulative Redeemable Preferential shareholders are subject to the provisions of Companies Act, 1956 and other applicable laws.

A. All the installments falling due within 12 months from the date of Balance Sheet have been classified as current maturities, the aggregate amounts are shown under ''Other Current Liabilities''.

B. The term loans from Canara bank, Andhra Bank and Indian Bank are secured by: (a) First charge on the fixed assets of the Company, (b) Second Charge on Current Assets of the Company and ( c) Pledge of equity shares of the company held by the promoters equivalent to 30% of the equity shares of the company. The said charges and the pledge are on pari passu basis.

C. All the term loans obtained from the banks are guaranteed by two of the directors of the Company in their individual capacities.

D. The term loans from Banks which are restructured are repayable in 30 equal quarterly instalments efective December 2014, Working Capital term loan from Canara Bank are repayable in 36 Monthly installments and effective October 2014,Funded interest term loans from Banks are repayable in 30 Monthly installments and effectve April 2014. Other terms of repayment of term loans are given below:

1.1 a) Contingent Liabilities not provided for in respect of:

Current Year Previous Year rs in lakhs rs in.lakhs

i) Bank Guarantee 183.04 182.84

ii) Income tax demand for Asst.Year 2007-08* 262.59 262.59

(This demand arised mainly on account of treatment of brought forward unabsorbed depreciation. In the opinion of the Company this demand may not be sustained in the appellate forums.)

iii) Incometax demand for Asst.Year 2006-07 183.80 Nil

(This demand arised not showing as income in the reduction in the liability at time of one time settlement of dues to the Financial Institution.)

''However the company has paid Rs. 183 lakhs (Previous year Rs. 183 lakhs) under protest and shown under long term loans and advances.

iv) A.P. General Sales Tax liability of Rs. 18.77 lakhs ( up to Previous year 7 18.77 lakhs) on packing materials purchased during the accounting years 1990-91 and 1991-92 as the Company preferred appeals before Appellate Authorities and the same are pending.

v) Karnataka Sales Tax demand of Rs. 6.20 lakhs (up to Previous year Rs. 6.20 lakhs ) for the accounting year 1993- 94 as the company preferred an appeal in the Hon''ble High Court of Karnataka.

2.1 b) Other Contingent Liabilities:

i) In the year 2007-08 A P Commercial Tax Department had revised the CST Assessment for the year 2000- 2001 and demanded Rs. 39.25 lakhs. The company got stayed the demand through an order of Hon''ble High Court of A.P. and the department had collected Rs. 19.09 lakhs around 50% of the demand which is grouped under long term loans and advances. As the matter is pending in appeal before the A P Sales Tax Appellate Tribunal, no provision is made in the accounts for the disputed tax of Rs. 39.25 lakhs.

ii) Demand from Central Excise Authorities for Rs.95.01 lakhs together with penalty of Rs. 95.01 lakhs (Previous year Rs.190.02 lakhs) against alleged irregular availment of Cenvat Credit on inputs by Cement Division, as the Company''s legal counsel opined that the demand is not sustainable and the matter is pending before CESAT, Bangalore.

iii) Demand from Central Excise Authorities for Rs. 1.38 lakhs together with penalty of Rs.1.38 lakhs against irregular credit of service tax availed and utilized. The same has been stayed by the Commissioner (Appeals -I ) on payment of Rs. 0.33 lakhs.

iv) a) Voltage surcharge: In the year 2003-04, Central Power Distribution Company of A.P. Ltd. had levied Voltage Surcharge of Rs. 130.29 lakhs for getting the energy through general lines over and above the contracted load instead of dedicated lines. As getting the energy through specified line is not within the control of the company, the company challenged the levy before Hon''ble High Court of Andhra Pradesh and the High Court was pleased to grant staying the collection of the said levy. However the Company has paid Rs. 72.06 lakhs ( previous year Rs. 72.06 lakhs) under protest and shown under Long term loans and advances and the said amount was not provided for in the books. The appeal is pending.

b) Fuel Surcharge Adjustment (FSA) : FSA for the period from April 2008 to June 2010 amounting to Rs.248.75 lakhs which were stayed by the Hon''ble High Court of Andhra Pradesh was not accounted.

3.1 c) i) Estimated amount of contracts to be executed on capital on account of Project expansion of Cement Division NIL (Net of advances ) (previous year NIL).

ii) Arrears of fixed Cumulative Dividends-9% cumulative dividend for the current year is Rs. 79.96 lakhs (up to Previous year Rs. 898.34 lakhs).

3.2. In the year 2007-08 Company paid Rs. 1.47 crores to the land owners for acres 98 and 15 guntas in the vicinity of the Cement factory for surrendering their Pattadar pass Books, to the Revenue authorities, Government of A.P. to facilitate granting of the lease rights in favour of the company, in respect of the said surrendered lands for lime stone mining. Company''s application for lease rights in this regard is under process. The said amount of Rs. 1.47 crores is shown as advance for mining lease rights and grouped under long term loans & advances.

3.3. The Company could not obtain confirmation of balances as at 31st March 2014 in respect of trade receivables Rs. 337.95 lakhs, Loans and advances Rs. 1788.32 lakhs and Trade payables amounting to Rs. 1131.50 lakhs, which were subsequently, collected adjusted and paid.

3.4. The National Savings Certificate VIII issue (shown under investments) has been pledged with Sales Tax Department towards Sales Tax Deposit.

3.5. A.S-19:Lease:

Upfront lease amount of Rs. 18 lakhs paid to Karnataka Forest Dept. towards Wind mill land lease is amortised over the lease period of 30 years. Accordingly Rs. 0.6 lakhs for the current year is amortised (up to Previous year Rs. 3.60 lakhs).

3.6. Deferred Tax:

In accordance with accounting standard 22, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company worked out taxes on income resulting deferred tax liability of Rs. 1093.30 lakhs as at 31.03.2014.The components of deferred tax assets and deferred tax liabilities are given hereunder.


Mar 31, 2013

1.1 a) Contingent Liabilities not provided for in respect of:

Current Year Previous Year Rs. in lakhs Rs. in lakhs

i) Bank Guarantee 182.84 219.04

ii) Income tax demand of Asst Year 2007-08 262.59* 290.97

*(Reduction in the liability is due to the appeal order passed by Commissioner of Income tax (Appeals).)

However the company has paid Rs. 183 lakhs(Previous year Rs.116.97 lakhs) under protest and shown under long term loans and advances.

iii) A.P. General Sales Tax liability of Rs.18.77 lakhs (up to Previous year Rs.18.77 lakhs) on packing materials purchased during the accounting years 1990-91 and 1991-92 as the Company preferred appeals before Appellate Authorities and the same are pending

iv) In the year 2007-08 A P Commercial Tax Department had revised the CST Assessment for the year 2000- 2001 and demanded Rs. 39.25 lakhs. The company got stayed the demand through an order of Hon''ble High Court of A.P. and the department had collected Rs. 19.09 lakhs around 50% of the demand which is grouped under long term loans and advances. As the matter is pending in appeal before the A P Sales Tax Appellate Tribunal, no provision is made in the accounts for the disputed tax of Rs. 39.25 lakhs.

v) Karnataka Sales Tax demand of Rs. 6.20 lakhs (up to Previous year Rs.6.20 lakhs ) for the accounting year 1993- 94 as the company preferred an appeal in the Hon''ble High Court of Karnataka.

vi) Demand from Central Excise Authorities for Rs. 95.01 lakhs together with penalty of Rs. 95.01 lakhs (Previous year Rs.190.02 lakhs) against alleged irregular availment of Cenvat Credit on inputs by Cement Division, as the Company''s legal counsel opined that the demand is not sustainable and the matter is pending before CESAT, Bangalore.

vii) Demand from Central Excise Authorities for Rs.1.38 lakhs together with penalty of Rs.1.38 lakhs against irregular credit of service tax availed and utilized. The same has been stayed by the Commissioner (Appeals -I ) on payment of Rs. 0.33 lakhs.

viii) a) Voltage surcharge: In the year 2003-04, Central Power Distribution Company of A.P. Ltd. had levied Voltage Surcharge of Rs. 130.29 lakhs for getting the energy through general lines over and above the contracted load instead of dedicated lines. As getting the energy through specified line is not within the control of the company, the company challenged the levy before Hon''ble High Court of Andhra Pradesh and the High Court was pleased to grant staying the collection of the said levy. However the Company has paid Rs. 72.06 lakhs ( previous year Rs. 72.06 lakhs) under protest and shown under Long term loans and advances and the said amount was not provided for in the books. The appeal is pending.

b) Fuel Surcharge Adjustment (FSA) :

FSA for the period from April 2008 to June 2010 amounting to Rs. 248.75 lakhs which were stayed by the Hon''ble High Court of Andhra Pradesh was not accounted.

viii) Claim against the Company:

In the year 2007-08 a supplier filed a suit and obtained an ex-party decree against the Company from District Court Cuddalore, Tamilnadu demanding Rs. 39.50 lakhs against the liability of Rs. 23.59 lakhs towards Lignite supplied in earlier years. Company disputed the liability of Rs.39.50 lakhs and deposited Rs.5.00 lakhs in court as directed by Madras High Court and case is pending before Vriddachalam Additional District Court (FTC).

b) i) Estimated amount of contracts to be executed on capital on account of Project expansion of Cement

Division NIL (Net of advances ) (previous year Rs.158 lakhs).

ii) Arrears of fixed Cumulative Dividends-9% cumulative dividend for the current year is Rs. 79.96 lakhs (up to Previous year Rs.818.39 lakhs ).

1.2. In the year 2007-08 Company paid Rs. 147 lakhs to the land owners for acres 98 and 15 guntas in the vicinity of the Cement factory for surrendering their Pattadar pass Books, to the Revenue authorities, Government of A.P. to facilitate granting of the lease rights in favour of the company, in respect of the said surrendered lands for lime stone mining. Company''s application for lease rights in this regard is under process. The said amount of Rs. 147 lakhs is shown as advance for mining lease rights.

1.3. Upfront lease amount of Rs. 18 lakhs paid to Karnataka Forest Dept. towards Wind mill land lease is amortised over the lease period of 30 years. Accordingly Rs.0.60 lakhs for the current year is amortised (up to Previous year Rs. 3 lakhs).

1.4. Exceptional Item represent the provision made towards fuel surcharge adjustment (FSA) relating to the periods April 2010 to March 2012 in line with the FSA rates approved by Andhra Pradesh Electricity Regulatory Commission.

1.5. The Company could not obtain confirmation of balances in respect of trade receivables Rs. 266.23 lakhs, Loans and advances Rs. 506.77 lakhs and Trade payables amounting to Rs. 1171.60 lakhs which were subsequently collected, adjusted and paid.

1.6. Executive Chairperson and Managing Director were paid up to 12th August 2012, minimum remuneration of Rs. 2 lakhs per month each amounting to Rs. 17.62lakhs. With effect from 13th August 2012 to 31st March 2013, their remuneration is enhanced to Rs. 4 lakhs per month each by the Board of Directors of the Company amounting to Rs. 60.83 lakhs. The enhanced remuneration is subject to the approval of shareholders in the ensuing Annual General Meeting.

1.7. The National Savings Certificate VIII issue (shown under investments) has been pledged with Sales Tax Department towards Sales Tax Deposit.

1.8. Defined Benefit Scheme in accordance with A S-15 "Employee Benefits" issued by ICAI. As per actuarial valuation as on 31.03.2013 and recognised in financial statements in respect of employee defined benefit scheme.

1.9. Deferred Tax:

In accordance with accounting standard 22, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company worked out taxes on income resulting deferred tax liability of Rs. 1138.36 lakhs as at 31.03.2013.The components of deferred tax assets and deferred tax liabilities are given hereunder.


Mar 31, 2012

A. Terms/ rights attached to equity shares

Each holder of equity share is entitled to one vote per share. The dividends recommended by the Board of Directors, if any are subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity share holders are entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of shares held.The rights attached to the Equity shareholders are subject to the provisions of Companies Act,1956 and other applicable laws.

b. Terms/ rights attached to 9% cumulative redeemable preference shares

Preference shares would not carry any voting rights. Dividends recommended by the Board of Directors for not exceeding the coupon rate, if any, are subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the preferential share holders will have preferential right over the Equity share holders for their principal amount and the dividend, if any, declared thereon on remaining assets of the Company after distribution to the secured and the preferential creditor' The rights attached to the 9% Cumulative Redeemable Preferential shareholders are subject to the provisions of Companies Act, 1956 and other applicable laws.

A. All the installments falling due within 12 months from the date of Balance Sheet have been classified as current maturities, the aggregate amounts are shown under 'Other Current Liabilities'.

B. The term loans from Candara bank, Andhra Bank and Indian Bank are secured by: (a) First charge on the fixed assets of the Company, (b) Second Charge on Current Assets of the Company and ( c ) Pledge of equity shares of the company held by the promoters equivalent to 30% of the equity shares of the company. The said charges and the pledge are on pari passu basis.

C. All the term loans obtained from the banks are guaranteed by two of the directors of the Company in their individual capacities.

D. The term loans from Banks are repayable in 32 equal quarterly installments and repayment started from June 2009. Other terms of repayment of term loans are given below:

E. Sales Tax Deferment(Cement Division): Conesquent to the introduction of VAT from 01.04.2005, the Tax Holiday, being the sales tax incentive, against expanded capacity, has been converted into Deferment and the Company got entitlement to defer tax collections up to Rs. 1590.43 lakhs over a period of ten years effective 01.04.2005 and repayable after fourteen years from the end of the relevant financial year. Due dates for repayment are given below.

(ii) Electronic Division is allowed to defer its Sales Tax Liability on Domestic sales to Rs. 528 lakhs during the period 01.09.1994 to 31.08.2004. Accordingly, Sales Tax collected on DTA Sales up to 31.08.2004 of Rs.13.15 lakhs is shown as unsecured loan. Repayment dues and the accounting years in which they are due are as given below:

a. Secured: (i) Cash Credit from Canara Bank sanctioned limit of Rs. 480 lakhs, is secured by way of hypothecation of work-in-process, finished goods, raw materials, stores and spares, receivables both present and future and also by a second charge on the immovable properties and other fixed assets of the company. Further, working capital loans are guaranteed by two of the directors of company individually and by the corporate guarantee of M/s Hyderabad Bottling Company Limited.and equitable motgage against the residential property of a director of Company. (ii) Overdraft from State Bank of India was secured by Fixed Deposit Receipt of Rs.103.69 Lakhs.

b. Unsecured: (1) Loan from a director is free of interest and is repayable on demand. (2) Inter corporate deposits to the extent of Rs.430 lakhs carry an interest of 10% per annum and is repayable on demand.

Note: Balances with banks include i) Rs. 158.54 lakhs (previous year: Rs. 157.15 lakhs kept as margin money deposits against the guarantee giben by bankeRs. ii ) Fixed Deposit Receipts for Rs. 103.69 lakhs (previous year Rs.103.69 lakhs) are held by the bankers with a lien marked in their favour towards overdraft sanctioned by the a bank.

Fixed Deposits receipts are with the bankers with alien marked in their favor towards the overdraft/bank guarantee limits sanctioned by them.

1.1 a) Contingent Liabilities not provided for in respect of:

Current Year Previous Year Rs. in lakhs Rs. in lakhs

i) Bank Guarantee 219.04 214.24

ii) During the year Income tax department has raised demand for Rs. 290.97 lakhs for the Assessment year 2007- 08 disallowing unabsorbed depreciation relating to the Assessment years 1997-98 to 2001-02 which was set off in the Assessment year 2007-08 by the company. The company has not recognized this liability in the books of accounts as the company preferred an appeal before the Commissioner (appeals). However the company has paid Rs. 116.97 lakhs under protest and shown under long term loans and advances..

iii) A.P. General Sales Tax liability of Rs. 18.77 lakhs ( up to Previous year Rs. 18.77 lakhs) on packing materials purchased during the accounting years 1990-91 and 1991-92 as the Company preferred appeals before Appellate Authorities and the same are pending

iv) Karnataka Sales Tax demand of Rs. 6.20 lakhs (up to Previous year Rs. 6.20 lakhs) for the accounting year 1993- 94 as the company preferred an appeal in the Hon'ble High Court of Karnataka.

v) Demand from Central Excise Authorities for Rs.95.01 lakhs together with penalty of Rs.95.01 lakhs (Previous year Rs.190.02 lakhs) against alleged irregular availment of Cenvat Credit on inputs by Cement Division, as the Company's legal counsel opined that the demand is not sustainable.

vi) In the year 2003-04, Central Power Distribution Company of Andhra Pradesh had levied Voltage Surcharge of Rs. 130.29 lakhs for getting the energy through general lines over and above the contracted load instead of dedicated lines. As getting the energy through specified line is not within the control of the company, the company challenged the levy before Hon'ble High Court of Andhra Pradesh and the High Court was pleased to grant staying the collection of the said levy. However the Company has paid Rs. 72.06 lakhs ( previous year Rs. 72.06 lakhs) under protest and shown under Long term loans and advances and the said amount was not provided for in the books. The appeal is pending.

vii) In the year 2007-08 A P Commercial Tax Department had revised the CST Assessment for the year 2000- 2001 and demanded Rs. 39.25 lakhs. The company got stayed the demand through an order of Hon'ble High Court of A.P. and the department had collected Rs. 19.09 lakhs around 50% of the demand which is grouped under long term loans and advances. As the matter is pending in appeal before the A P Sales Tax Appellate Tribunal, no provision is made in the accounts for the disputed tax of Rs. 39.25 lakhs.

viii) In the year 2007-08 a supplier filed a suit and obtained an ex-party decree against the Company from District Court Cuddalore, Tamilnadu demanding Rs. 39.50 lakhs against the liability of Rs. 23.59 lakhs towards Lignite supplied in earlier yeaRs. Company disputed the liability of Rs. 39.50 lakhs and deposited Rs. 5.00 lakhs in court as directed by Madras High Court and case is pending before Vriddachalam Additional District Court (FTC).

b) i) Estimated amount of contracts to be executed on capital on account of Project expansion of Cement Division Rs. 158 lakhs (Net of advances ) (previous year Rs. 9.30 lakhs).

ii) Arrears of fixed Cumulative Dividends-9% cumulative dividend for the current year is Rs. 93.46 lakhs (up to Previous year Rs. 864.81 lakhs).

1.2. In the year 2007-08 Company paid Rs. 147 lakhs to the land owners for acres 98 and 15 guntas in the vicinity of the Cement factory for surrendering their Pattadar pass Books, to the Revenue authorities, Government of A.P. to facilitate granting of the lease rights in favour of the company, in respect of the said surrendered lands for lime stone mining. Company's application for lease rights in this regard is under process. The said amount of Rs. 147 lakhs is shown as advance for mining lease rights.

1.3. Upfront lease amount of Rs. 18.00 lakhs paid to Karnataka Forest Dept. towards Wind mill land lease is amortised over the lease period of 30 yeaRs. Accordingly Rs. 0.60 lakhs for the current year is amortised (up to Previous year Rs. 2.40lakhs).

1.4. The National Savings Certificate VIII issue (shown under investments) has been pledged with Sales Tax Department towards Sales Tax Deposit.

1.5. Foreign Exchange Earnings and Expenditure:

1.6 During the year ended 31st March, 2012, the revised format of accounts was notified by modifying Schedule VI under the Companies Act, 1956. The new format has been followed for preparation and presentation of the financial statements. The adoption of revised Schedule VI, as aforesaid, does not impact recognition and measurement principles followed for preparation of the financial statements. The Company has reclassified the previous year's figures in accordance with the requirements applicable in the current year.


Mar 31, 2010

1. A.R State Government had paid capital investment subsidy of Rs.20.00 lakhs to erstwhile Hyderabad Flextech Ltd with a basic stipulation that the unit should be in continuous production for 20 years. On Amalgamation this is transferred to the company and shown in Electronics Division.

2. 9% Cumulative Redeemable Preference Shares 5,00,000 Nos. allotted on 24.10.2001 and 2,70,100 Nos. allotted on 31.10.2002 are redeemable at par at the end of 11th ,12th andl3th year from the date of allotment and the amount payable per share is Rs.30, Rs.35 and Rs.35 respectively.

3. Secured Loans:

(i) Term loans are secured by an equitable mortgage of immovable properties and a charge by way of hypothecation of all the movable properties (save and except Book Debts) including movable machinery, spares, tools and accessories both present and future subject to prior charges created in favour of respective bank on specific movable assets for Working Capital loans sanctioned together with interest and commitment charges.

(ii) Working Capital Loans are secured by hypothecation of raw-materials, work-in-process, finished goods, stores and spares and receivables both present and future and also by a second charge on the immovable properties and other fixed assets of the company.

Further the the Term Loan and Working Capital Loans are guaranteed by two of the directors of the company individually and by the Corporate guarantee of M/s.Hyderabad Bottling Company Limited.

4. Consequent to the introduction of VAT from 01.04.2005,the Tax Holiday, being the sales tax incentive, against expanded capacity, has been converted into Deferment and the Company got entitlement to defer tax collections up to Rs. 1590.43 lacs over a period of ten years effective 01.04.2005 and repayable after fourteen years from the end of the relevant financial year.

5. In the year 2007-08 Company paid Rs.1.47 crores to the land owners in the vicinity of the Cement factory for surrendering their Pattadar pass Books, for acres 98 and 15 guntas, to the Revenue authorities, Government of A.P to facilitate granting of the lease rights in favour of the company, in respect of the said surrendered lands for lime stone mining. Companys application for lease rights in this regard is under process. The said amount of Rs.1.47 crores is shown as advance for mining lease rights.

6. Up front lease amount of Rs. 18,00,000-/ paid to Karnataka Forest Dept. towards Wind mill land lease is amortised over the lease period of 30 years.Accordingly Rs.60,000/- for the current year is amortised( up to Previous year Rs. 1,20,000/-).

7. The National Savings Certificate VIII issue (shown under investments) has been pledged with Sales Tax Department towards Sales Tax Deposit.

8. Fixed deposit receipts are with the bankers with a lien marked in their favor of the overdraft/ bank guarantee limits sanctioned by them.

9. There were no outstanding payable to micro and small enterprises as on 31.03.2010.

10. AS -18 Related party disclosures:

Related party disclosures as required by AS-18 are given below: i) Particulars of Associate Companies :

Name of the Related Party Nature of Relationship

a. Hyderabad Bottling Co.Ltd

b. Triveni Capital Leasing &

Investments Pvt Limited Associate Companies

c. I 0 (J Projects Limited

ii) Key Management Personnel

Mrs. J. Triveni Managing Director

Mr. J.S.Rao Managing Director of erstwhile Hyderabad Flextech Ltd

Late Mr. J. S. Krishna Executive Chairman (since deceased 19.09.2009)

iii) Transaction with Associate Companies

11. Deferred Tax:

In accordance with accounting standard 22, "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company worked out taxes on income resulting deferred tax liability of Rs.596.69 lacs as at 31.03.2010.The components of deferred tax assets and deferred tax liabilities are given hereunder.

12. Previous year figures have been regrouped wherever necessary.





 
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