Home  »  Company  »  LT Foods Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of LT Foods Ltd.

Mar 31, 2016

a) During the year, the Company had issued and allotted 209,605 (previous year 147,973) equity shares to eligible employees of the Company and its subsidiaries under Employees stock option scheme.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having the 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.

During the year ended March 31, 2016 the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1.50 per share (previous year Rs. 2.00 per share).

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) Shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestments

The Company had reserved issuance of 849,538 (previous year 849,538) Equity shares of Rs. 10 each for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Plan (ESOP). During the year, the Company had issued and allotted 209,605 (previous year 147,973) equity shares to eligible employees of the Company and its subsidiaries under ESOP. The option would vest over a maximum period of 4 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria.

e) Details of security for each type of borrowings :

(i) Rupee term loan from all banks, other than those mentioned in (ii) & (iii) below are secured against first pari passu charge on the existing project assets, excluding assets charged specifically to the term lenders and Second Pari Passu on current assets of the Company.

(ii) Rupee term loan from Allahabad Bank amounting to Rs. 1,305.99 Lakhs (previous year Rs. 1,684.15 Lakhs ) is secured against first exclusive charge over the entire fixed assets of the Silos project located at Amritsar.

(iii) Rupee term loan from Allahabad Bank amounting to Nil (previous year- Rs.729.97 Lakhs) is secured against first exclusive charge over the entire fixed assets created under the Varpal, Amritsar project. second charge on current assets on reciprocal basis with ceding of second charge on the fixed assets in favour of working capital loan bankers.

(iv) Foreign currency term loan from Oriental Bank of Commerce are secured against first pari passu charge on the existing project assets, excluding assets charged specifically to the term lenders and Second Pari Passu on current assets of the Company.

(v) Vehicle loans from all banks are secured against hypothecation of respective motor vehicle financed.

b) Employee benefits

The Company has taken a group gratuity for its employees with the Life Insurance Corporation of India (LIC). Under this policy the eligible employees are entitled to receive gratuity payments upon their resignation or death in lump sum after deduction of necessary taxes up to a maximum limit of Rs. 1,000,000.

The following table set out the status of the gratuity plan as required under Accounting Standard (AS) - 15 - Employee benefits and the reconciliation of opening and closing balances of the present value of the defined benefit obligation.

* The Company earned income of Rs. 0.51 Lakhs (previous year Rs. 1.87 Lakhs) as share in profit from partnership firm and Rs. 2.43 Lakhs (previous year ?4.48 Lakhs) as interest on capital in partnership firm till September 30, 2015. Effective October 1, 2015, Raghunath Agro Industries (RAI), the partnership firm was acquired by Raghunath Agro Industries Private Limited and correspondingly, the Company was allotted equity shares in RAIPL in proportion to its share of partnership in the RAI.

Share of Investments in partnership firm :-The Company has 4% interest in partnership firm M/s Raghunath Agro Industries, which is engaged in the business of milling and export of rice. The financial results of the partnership firm for the year ended September 30, 2015 (previous year ended March 31, 2015) are as under:

a) Provident fund

Contribution made by the Company during the year is Rs. 127.76 Lakhs (previous year Rs. 101.85 Lakhs).

b) Share-based payment

The Company maintains an equity settled share-based payment scheme LT Foods Employee Stock Option Plan-2010, hereinafter referred to as (''the Plan'') adopted and approved by share-holders on September 30, 2010.

Under the Plan the Board of Directors of the Company has the powers to determine, from time to time, the persons eligible for grant of share options; when and how each option shall be granted; what type or combination of types of option shall be granted; the provisions of each option granted, including the time or times when a person shall be permitted to receive shares pursuant to an option grant. The Group has no legal or constructive obligation to repurchase or settle the options. In accordance with the Plan, upon vesting, the stock options will be settled by issuance of new shares on payment of exercise price.

The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. The total expense recognized in the income statement for the year ended March 31, 2016 is Rs. 0.36 Lakhs (March 31, 2015 Rs. 29.00 Lakhs).

The fair values of options granted were determined using Black Scholes option pricing model that takes into account factors specific to the share incentive plans along with other external inputs.

The following principal assumptions were used in the valuation: Expected volatility was determined by assuming that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome. The expected option life, average expected period to exercise, is assumed to be equal to the contractual maturity of the option. Dividend yield is taken as nil as the Group has not paid any dividend. The risk-free rate is the rate associated with a risk-free security with the same maturity as the option. At each balance sheet date, the Company reviews its estimates of the number of options that are expected to vest. The Company recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to ''retained earnings'' in equity.

1. Transfer Pricing

As per the international transfer pricing norms introduced in India with effect from April 1, 2001 and the domestic transfer pricing norms introduced with effect from April 1, 2012, the Company is required to use certain specified methods in computing arm''s length price of international and national transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial period. However, in the opinion of the Management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

2. In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of LT Foods Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

3. Previous year figures

Previous year''s figures have been regrouped/reclassified wherever necessary, to confirm to current year''s classification.


Mar 31, 2015

1. Corporate information

LT Foods Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. LT Foods Limited is primarily in the business of milling, processing and marketing of branded and non-branded basmati rice and manufacturing of rice food products in the domestic and overseas market. LT Foods Limited operations include contract farming, procurement, storage, processing, packaging and distribution. LT Foods Limited is also engaged in research and development to add value to rice and rice food products. LT Foods Limited rice product portfolio comprises brown rice, white rice, steamed rice, parboiled rice, organic rice, quick cooking rice, value added rice and flavoured rice in the ready to cook segment.

a. Terms /rights attached to equity shares

The Company has only one class of equity shares having the 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.

During the year ended March 31, 2015 the amount of per share dividend recognised as distributions to equity shareholders was Rs. 2.00 per share (previous year Rs. 2.25 per share).

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. Shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestments

The Company had reserved issuance of 8,49,538 (previous year 849,538) Equity shares of Rs. 10 each for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Plan (ESOP). During the year, the Company had issued and allotted 147,973 (previous year 137,214) equity shares to eligible employees of the Company and its subsidiaries under ESOP. The option would vest over a maximum period of 4 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria.

c) Details of security for each type of borrowings:

(i) Rupee term loan from all banks are secured against first pari passu charge on the existing project assets, excluding assets charged specifically to the term lenders and Second Pari Passu on current assets of the Company.

(ii) Rupee term loan from Allahabad Bank amounting to Rs. 729.97 lacs is secured against first exclusive charge over the entire fixed assets created under the varpal, Amritsar project. second charge on current assets on reciprocal basis with ceding of second charge on the fixed assets in favour of working capital loan bankers.

(iii) Rupee term loan from Allahabad Bank amounting to Rs. 1,643.52 lacs is secured against first exclusive charge over the entire fixed assets of the Silos project located at Amritsar. second pari -passu charge over fixed assets of Bahalgarh unit along with equitable mortgage over land and building on pari passu basis to secure entire credit facilities sanctioned by consortium.

(iv) vehicle loans from all banks are secured against hypothecation of respective motor vehicle financed.

d) Employee benefits

The Company has taken a group gratuity for its employees with the Life Insurance Corporation of India (LIC). Under this policy the eligible employees are entitled to receive gratuity payments upon their resignation or death in lumpsum after deduction of necessary taxes upto a maximum limit of Rs. 1,000,000.

The following table set out the status of the gratuity plan as required under Accounting Standard (AS) - 15 - Employee benefits and the reconciliation of opening and closing balances of the present value of the defined benefit obligation.

2. Employee benefits

a) Provident fund

Contribution made by the Company during the year is Rs. 101.85 lacs (previous year Rs. 59.25 lacs).

b) Share-based payment

The Company maintains an equity settled share-based payment scheme LT Foods Employee Stock Option Plan-2010, hereinafter referred to as 'the Plan') adopted and approved by share-holders on September 30, 2010.

Under the Plan the Board of Directors of the Company has the powers to determine, from time to time, the persons eligible for grant of share options; when and how each option shall be granted; what type or combination of types of option shall be granted; the provisions of each option granted, including the time or times when a person shall be permitted to receive shares pursuant to an option grant. The Group has no legal or constructive obligation to repurchase or settle the options. In accordance with the Plan, upon vesting, the stock options will be settled by issuance of new shares on payment of exercise price.

The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. The total expense recognized in the income statement for the year ended March 31, 2015 is Rs. 29.00 lacs (March 31, 2014 Rs. 40.74 lacs).

The fair values of options granted were determined using Black Scholes option pricing model that takes into account factors specific to the share incentive plans along with other external inputs.

The following principal assumptions were used in the valuation: Expected volatility was determined by assuming that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome. The expected option life, average expected period to exercise, is assumed to be equal to the contractual maturity of the option. Dividend yield is taken as nil as the Group has not paid any dividend. The risk-free rate is the rate associated with a risk-free security with the same maturity as the option. At each balance sheet date, the Company reviews its estimates of the number of options that are expected to vest. The Company recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to 'retained earnings' in equity.

3. Contingent liabilities

(Rs. in lacs)

Nature of contingency March 31,2015 March 31,2014

* Income-tax demands * 2,345.19 834.37

* Haryana rural development fund demand of market committee, Sonepat - 30.78

* Food Corporation India demand for differential price /freight /taxes 339.00 339.00

* Saracen Advertising JLT demand for breach of contract 133.07 -

* Duty saved under EPCG licenses (export obligation outstanding Rs.2,728.53 lacs (previous year Rs. 3,702.13 lacs)) 451.40 609.05

* Bank Guarantees 710.72 1,524.59

* Guarantee given by Company to bank on behalf of subsidiary/firm in which the Company is a partner ** 62,844.00 54,284.43

* Guarantee given by Company on the behalf of subsidiary for export obligation under EPCG scheme ** 14.68 14.68

Total 66,838.06 57,636.89

* The company has filed appeals in previous years against the order of the AO before CIT(Appeals) for the AY 2003-04 to AY 2007-08. The CIT(Appeals) vide its order dated March 25, 2013, March 28, 2013 and October 10, 2013 has allowed substantial relief to the Company and after allowing appeal effect of the order of CIT(Appeals) by the AO, the demand has reduced to Rs. 89.84 lacs (previous year Rs. 89.84 lacs). The Company in previous years has filed appeals against the order of CIT(Appeals) for the above said assessment years before the Income Tax Appellate Tribunal, on issues for which relief has not been given by CIT(Appeals).

The Company's appeal for the AY 2008-09 and AY 2009-10 are still pending before Income Tax Appellate Tribunal and demand of Rs. 563.57 lacs (net of relief from CIT(Appeals)) are outstanding against the company (previous year Rs. 563.57 lacs). Further, the company appeal for the AY 2000-01 has been decided in the favor of company by ITAT and after allowing appeal effect of the order of ITAT, the liability is reduced to Rs. 1.47 lacs (previous year Rs. 180.96 lacs)which has been provided by the Company in the books in the current year.

During the current year, the Company has received demands under section 143(3) for AY 2010-11 and AY 2011-12 for Rs. 1,691.78 lacs. For AY 2010-11 the Company has already filed an appeal before the CIT (Appeals) and for AY 2011-12 the company is in the process of filing an appeal before the CIT (Appeals). Pending the orders from CIT (A) and filing of orders respectively, no adjustment has been made in the financial statements for the additional tax so demanded and the same has been disclosed as a contingent liability.

The company has paid Rs. 1,028.15 lacs (previous year Rs. 1,028.15 lacs) are per the directions of Income Tax Department against the outstanding demands and the same will be adjusted / refunded, once the appeals are final. The management is confident that it's position is likely to be upheld in the appeals pending before Income Tax Appellate Tribunal and no liability on the Company on account of these proceedings.

** The guarantees given by LT Foods Limited on behalf of subsidiary companies against the loan availed by subsidiaries is for their business purposes.

4. Capital commitments

Capital commitments remaining to be executed and not provided for, net of capital advances - Rs. 40.42 lacs (previous year: Rs. 1,304.67 lacs).

5. Related party disclosures

In accordance with the requirements of Accounting Standard (AS)-18 on "Related Party Disclosures", the names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management, are:

(i) Names of related parties and description of relationship

* Subsidiary companies LT Agri Services Private Limited

Daawat Foods Limited Kusha, Inc.

SDC Foods India Limited Nice International FZE ( liquidated on 22 March 2015)

Expo Services Private Limited LT Foods USA LLC

Nature Bio Foods Limited LT Foods Middle East DMCC

LT International Limited Raghuvesh Power Projects Limited

LT Overseas North America, Inc. Universal Traders Inc.

Sona Global Limited Royal Curry Delights LLC

Raghuvesh Foods & Infrastructure Fresco Fruit N Nuts Private Limited Limited

* Partnership firm

Raghunath Agro Industries

* Associate enterprises

LT Infotech Private Limited

Raghuvesh Agri Foods Private Limited

Raghuvesh Warehousing Private Limited

Key Management Personnel and their relatives Name Designation

Vijay Kumar Arora Managing Director

Surinder Kumar Arora Joint Managing Director

Ashwani Kumar Arora Joint Managing Director

Ashok Kumar Arora President-Punjab Operations

* Entities of KMP and their relatives

V.K Foods

SK Engineering Company

Super Texfab Private Limited

* Relatives of Key Management Personnel

Abinav Arora Aditya Arora

Aditi Arora Anita Arora

Gurucharan Dass Arora Gursajjan Arora

Isha Arora vandana Arora

Parvesh Rani Arora Purva Arora

Ranju Arora Ritesh Arora

Sakshi Arora Sanjana Arora

6. The Company has entered into rent agreements as a lessee for warehouses and office premises, which are in the nature of operating lease. Rental expense for operating lease for the years ended March 31, 2015 and 2014 was Rs. 372.27 lacs and Rs. 513.73 lacs respectively. The Company has not executed any non-cancelable operating leases.

7. Transfer Pricing

As per the international transfer pricing norms introduced in India with effect from April 1, 2001 and the domestic transfer pricing norms introduced with effect from April 1, 2012, the Company is required to use certain specified methods in computing arm's length price of international and national transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial period. However, in the opinion of the Management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing

implications, if any.

8. a) The Company uses derivative contracts to hedge its risks associated with fluctuations with foreign currencies relating to foreign currencies receivables. The following are outstanding derivative contracts as on March 31, 2015.

(Rs. in lacs)

Particulars Purpose

Forward contract to sell (USD) Hedge of highly probable foreign currency sales

USD 354.68 (previous year: USD 325.67)

Rs. 23,043.42 (previous year: Rs. 20,437.04)

b) The Company has taken put option of USD 40 lacs from Bank of Baroda to hedge its foreign currency receivable exposure having an exercising period between April 2015 to November 2015 for USD 5 lacs per month.

c) The Company has taken put option of USD 24 lacs from ICICI to hedge its foreign currency receivable exposure having an exercising period for April 2015 and November 2015 for USD 3 lacs per month.

d) The Company has taken put option of USD 39 lacs from ICICI Bank to hedge its foreign currency receivable exposure having an exercising period for September 2015 and February 2016 for USD 6.5 lacs per month.

9. In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of LT Foods Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

10. Corporate social responsibility expenses

(a) Gross amount required to be spent by the parent company during the year in compliance with section 135 of the Act is Rs. 69 lacs

(b) Amount spent during the year on-

In Cash Yet to be paid in Cash Total

Contribution Made 13 lacs - 13 lacs

11. Previous year figures

Previous year's figures have been regrouped/reclassified wherever necessary, to confirm to current year's classification.


Mar 31, 2014

1. (a) Corporate information

LT Foods Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. LT Foods Limited is primarily in the business of milling, processing and marketing of branded and non-branded basmati rice and manufacturing of rice food products in the domestic and overseas market. LT Foods Limited operations include contract farming, procurement, storage, processing, packaging and distribution. LT Foods Limited is also engaged in research and development to add value to rice and rice food products. LT Foods Limited rice product portfolio comprises brown rice, white rice, steamed rice, parboiled rice, organic rice, quick cooking rice, value added rice and flavored rice in the ready to cook segment.

2. Contingent liabilities

(Rs. in lacs)

Nature of contingency March 31, 2014 March 31, 2013

- Income-tax demands * 825.11 1,066.79

- Haryana rural development fund demand of market committee, Sonepat 30.78 30.78

- Food Corporation India demand for differential price / freight /taxes 339.00 339.00

- Duty saved under EPCG licenses (export obligation outstanding Rs.3,702.13 lacs (previous year 609.05 565.53 Rs.3,464.05 lacs))

- Bank Guarantees 1,524.59 1,266.00

- Guarantee given by Company to bank on behalf of subsidiary/firm in which the Company is a 54,284.43 56,334.93 partner

- Guarantee given by Company on the behalf of subsidiary for export obligation under EPCG 14.68 14.68 scheme

- Guarantee given by Company to others on behalf of subsidiary - 543.89

Total 57,627.64 60,161.60

* The Company has filed appeals against the order of the AO before CIT(Appeals) for the AY 2003-04 to AY 2007-08. The CIT(Appeals) vide its order dated 25/3/2013, 28/3/2013 and 10/10/2013 has allowed substantial relief to the Company and after allowing appeal effect of the order of CIT(Appeals) by the AO, the demand has reduced to Rs. 80.59 lacs (Previous year Rs. 205.82 lacs). The Company has filed appeals against the order of CIT(Appeals) for the above said assessment years before the Income Tax Appellate Tribunal, on issues for which relief has not been given by CIT(Appeals).

The Company appeal for the AY 2008-09, AY 2009-10 and AY 2000-01 are still pending before Income Tax Appellate Tribunal and demand of Rs. 744.53 lacs is outstanding against the Company (Previous year Rs. 744.53 lacs).

The Company appeal before CIT(Appeals) for the AY 2010-11 against order of the AO for penalty u/s 272B of the Act has been allowed in favour of the Company vide order of the CIT(A) dated 25/9/2013 and the outstanding demand in the case has reduced to Nil (Previous year Rs. 116.80 lacs).

The Company has paid Rs. 1028.15 lacs are per the directions of Income Tax Department against the outstanding demands and the same will be adjusted / refunded, once the appeals are final. The management is confident that it''s position is likely to be upheld in the appeals pending before Income Tax Appellate Tribunal and no liability on the Company on account of these proceedings.

3. Capital commitments

Capital commitments remaining to be executed and not provided for, net of capital advances - Rs.1,304.67 lacs (previous year: Rs. 92.30 lacs).

4. Related party disclosures

In accordance with the requirements of Accounting Standard (AS)-18 on "Related Party Disclosures", the names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management, are:

(i) Names of related parties and description of relationship

- Subsidiary companies Daawat Foods Limited SDC Foods India Limited Expo Services Private Limited Nature Bio Foods Limited LT International Limited LT Overseas North America, Inc. Sona Global Limited Raghuvesh Foods & Infrastructure Limited LT Agri Services Private Limited

- Fellow subsidiaries Kusha, Inc.

Nice International FZE LT Foods USA LLC LT Foods Middle East DMCC Raghuvesh Power Projects Limited Universal Traders Inc. Royal Curry Delights LLC

- Partnership firm Raghunath Agro Industries

- Associate enterprises LT Infotech Private Limited

Key Management Personnel

Name Designation

Vijay Kumar Arora Managing Director

Surinder Kumar Arora Joint Managing Director

AshwaniKumar Arora Joint Managing Director

Ashok Kumar Arora President-Punjab Operations

Relatives of Key Management Personnel

Abinav Arora

Aditya Arora

Aditi Arora

Anita Arora

GurucharanDass Arora

Gursajjan Arora

Isha Arora

Munish Arora

Parvesh Rani Arora

Ranju Arora

Ritesh Arora

Sakshi Arora

Vandana Arora

Vaneet Arora

5. The Company has entered into rent agreements as a lessee for warehouses and office premises, which are in the nature of operating lease. Rental expense for operating lease for the years ended March 31, 2014 and 2013 was Rs. 513.73lacs and Rs. 582.25lacs respectively. The Company has not executed any non-cancelable operating leases.

6. Transfer Pricing

As per the international transfer pricing norms introduced in India with effect from April 1, 2001 and the domestic transfer pricing norms introduced with effect from April 1, 2012, the Company is required to use certain specified methods in computing arm''s length price of international and national transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions / class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial period. However, in the opinion of the Management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

7. a) The Company uses derivative contracts to hedge its risks associated with fluctuations with foreign currencies relating to foreign currencies receivables. The following are outstanding derivative contracts as on March 31, 2014.

b) The Company has taken put option of USD 90 lacs from Bank of Baroda to hedge its foreign currency receivable exposure having an exercising period between April 2014 to December 2014 for USD 10 lacs per month.

c) The Company has taken put option of USD 20 lacs from Bank of Baroda to hedge its foreign currency receivable exposure having an exercising period for August 2014 andSeptember 2014 for USD 10lacs per month.

8. In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of LT Foods Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

9. Previous year figures

Previous year''s figures have been regrouped/reclassified wherever necessary, to confirm to current year''s classification.


Mar 31, 2013

1. Corporate information

LT Foods Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956, primarily in the business of milling, processing, storage and transportation of food grains and trading in other agri products. The company is marketing branded and non-branded basmati rice and manufacturing rice food products in the domestic and overseas market. Its rice product portfolio comprises brown rice, white rice, steamed rice, parboiled rice, organic rice, quick cooking rice, value added rice and flavored rice in the ready to cook segment. The company''s operations include contract farming, procurement, storage, processing, packaging and distribution. The company is also engaged in international trade of non-basmati rice and other grains, warehousing facility, research and development to add value to rice and rice food products.

2. Contingent liabilities

(Rs. in lacs)

Nature of contingency March 31, 2013 March 31, 2012

- Income-tax demands * 1,066.79 3,161.59

- Haryana rural development fund demand of market committee, Sonepat 30.78 30.78

- Food Corporation India demand for differential price /freight /taxes 339.00 339.00

- Duty saved under EPCG licenses (export obligation outstanding Rs. 3,464.05 lacs 535.52 591.69 (previous year Rs. 3,815.92 lacs))

- Guarantees given by Company 58,159.50 58,891.87

Total 60,131.59 63,014.93



*The management has filed appeals against the order of Assessing Officer before CIT (A) for the Assessment Year 2003-04 to Assessment Year 2007-08. The CIT (A) vide its order dated March 28, 2013for the Assessment Year 2004-05 to Assessment Year 2007-08 has allowed substantial relief to the Company. However, the appeal effect of order of CIT (A) is yet to be given by the Income Tax Department. Also, the Company is in the process of filing appeal before ITAT for the Assessment Year 2004-05 to Assessment Year 2007-08 on issues for which relief has not been given by CIT (A). The Company appeal for the Assessment Year 2008-09 and Assessment Year 2009-10 and Assessment Year 2000-01 are still pending before ITAT. The Company has paid Rs. 775.00 Lacs fixed instalment as per the directions of Income Tax Department and the same amount will be adjusted, once the appeal is final. The management is confident that it''s position is likely to be upheld in the appeals pending before CIT(A) and ITAT and no liability will devolve on the Company on account of these proceeding.

3. Capital commitments

Capital commitments remaining to be executed and not provided for, net of capital advances - Rs. 92.30 lacs (previous year: Rs. 1.96 lacs).

4. Related party disclosures

In accordance with the requirements of Accounting Standard (AS)-18 on "Related Party Disclosures", the names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management, are:

(i) Names of related parties and description of relationship

- Subsidiary companies

Daawat Foods Limited

SDC Foods India Limited

Expo Services Private Limited

Nature Bio Foods Limited

LT International Limited

LT Overseas North America, Inc.

Kusha, Inc.

Sona Global Limited

Nice International FZE

Raghuvesh Foods & Infrastructure Limited

LT Foods USA LLC

Raghuvesh Power Projects Limited Universal Traders Inc. LT Agri Services Private Limited Royal Curry Delights LLC

- Partnership firm

Raghunath Agro Industries

- Associate enterprises

LT Infotech Private Limited

Cordia LT Communications Private limited (till October 03, 2012)

- Relatives of Key Management Personnel

Abhinav Arora Aditya Arora Anita Arora Gursajjan Arora Parvesh Rani Ranju Arora Sakshi Arora Vandana Arora

5. The Company has entered into rent agreements as a lessee for warehouses and office premises, which are in the nature of operating lease. Rental expense for operating lease for the years ended March 31, 2013 and 2012 was Rs. 582.25 lacs and Rs. 453.01 lacs respectively. The Company has not executed any non-cancelable operating leases.

6. Transfer Pricing

As per the international transfer pricing norms introduced in India with effect from April 1, 2001 and the domestic transfer pricing norms introduced with effect from April 1, 2012, the Company is required to use certain specified methods in computing arm''s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial period. However, in the opinion of the Management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

7. The remuneration paid to Mr. Vijay Kumar Arora (Chairman and Managing Director), Mr. Ashwani Kumar Arora (Joint Managing Director) and Mr. Surinder Kumar Arora (Joint Managing Director) was approved by the shareholders of the Company. However, owing to the insufficient profits during the previous year, not determinable on the date of such approval, the remuneration paid during the year ended March 31, 2012 is in excess of the limits specified under the provisions of the Companies Act, 1956 by Rs. 119.25 lacs. The Company is taking necessary steps to seek approval from the shareholders and Central Government for excess remuneration paid.

8. In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of LT Foods Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

9. Previous year figures

Previous year''s figures have been regrouped/reclassified wherever necessary, to confirm to current year''s classification.


Mar 31, 2012

1. Corporate information

LT Foods Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956.LT Foods Limited is primarily in the business of milling, processing and marketing of branded & non-branded basmati rice and manufacturing of rice food products in the domestic and overseas market. LT Foods Limited operations include contract farming, procurement, storage, processing, packaging and distribution. LT Foods Limited is also engaged in research and development to add value to rice and rice food products. LT Foods Limited rice product portfolio comprises brown rice, white rice, steamed rice, parboiled rice, organic rice, quick cooking rice, value added rice and flavored rice in the ready to cook segment.

a) There is no movement in the equity share capital during the current and previous year.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having the 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.

During the year ended March 31, 2012 the amount of per share dividend recognised as distributions to equity shareholders was nil (previous year Rs 1 per share).

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestments

The Company had reserved issuance of 6,48,329 ( Previous year Nil) Equity shares of Rs 10 each for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Plan (ESOP). During the year, the Company had issued and allotted Nil (Previous year Nil) equity shares to eligible employees of the Company and its subsidiaries under ESOP. The option would vest over a maximum period of 4 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria.

d) Details of security for each type of borrowings:-

(I) Rupee term loan from all banks amounting to Rs 6,398.31 lacs are secured against first pari passu charge on the existing project assets, excluding assets charged specifically to the term lenders and Second Pari Passu on current assets of the Company.

(II) Rupee term loan from Allahabad Bank amounting to Rs 2,722 lacs is secured against first exclusive charge over the entire fixed assets created under the Varpal, Amritsar project. Second charge on current assets on reciprocal basis with ceding of second charge on the fixed assets in favour of working capital loan bankers.

(III) Rupee term loan from Allahabad Bank amounting to Rs 2,526 lacs is secured against first exclusive charge over the entire fixed assets of the Silos project located at Amritsar. Second pari -passu charge over fixed assets of Bahalgarh unit along with equitable mortgage over land and building on pari passu basis to secure entire credit facilities sanctioned by consortium.

(IV) Vehicle loans from all banks are secured against hypothecation of respective motor vehicle financed.

e) Employee benefits

"The Company has taken a group gratuity for its employees with the Life Insurance Corporation of India (LIC). Under this policy the eligible employees are entitled to receive gratuity payments upon their resignation or death in lumpsum after deduction of necessary taxes upto a maximum limit of Rs 1,000,000.

The following table set out the status of the gratuity plan as required under Accounting Standard (AS) - 15 - Employee benefits and the reconciliation of opening and closing balances of the present value of the defined benefit obligation."

Notes

(i) The gratuity expenses have been recognized under note 25

(ii) Provident fund contribution made by the company during the year is Rs 40.82 lacs (Previous year Rs 33.28 lacs).

Cash credits/ working capital demand loans are secured by hypothecation of stocks and book debts of the Company.

The cash credits/working capital demand loans is repayable on demand and the interest on above term loans from banks are linked to the respective banks base rates which are floating in nature. The interest rate ranges from 11.50 % to 15.50 % on rupee working capital loan and 3.00% to 6.50% on foreign currency working capital loans.

The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2012 has been made in the financial statements based on information received and available with the Company. Further in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the MSMED Act, 2006 is not expected to be material.

a) Provident fund

Contribution made by the Company during the year is Rs 40.82 lacs (previous year Rs 33.28 lacs).

b) Share-based payment

The Company maintains an equity settled share-based payment scheme LT foods employee stock option plan-2010, hereinafter referred to as 'the Plan1) adopted and approved by share-holders on September 30, 2010.

Under the Plan the Board of Directors of the Company has the powers to determine, from time to time, the persons eligible for grant of share options; when and how each option shall be granted; what type or combination of types of option shall be granted; the provisions of each option granted, including the time or times when a person shall be permitted to receive shares pursuant to an option grant. The Group has no legal or constructive obligation to repurchase or settle the options. In accordance with the Plan, upon vesting, the stock options will be settled by issuance of new shares on payment of exercise price.

The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. The total expense recognized in the income statement for the year ended March 31, 2012 is Rs 71.08 lacs (March 31, 2011: Nil).

The fair values of options granted were determined using Black Scholes option pricing model that takes into account factors specific to the share incentive plans along with other external inputs.

The following principal assumptions were used in the valuation: Expected volatility was determined by assuming that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome. The expected option life, average expected period to exercise, is assumed to be equal to the contractual maturity of the option. Dividend yield is taken as nil as the Group has not paid any dividend. The risk- free rate is the rate associated with a risk-free security with the same maturity as the option. At each balance sheet date, the Company reviews its estimates of the number of options that are expected to vest. The Company recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to 'retained earnings' in equity.

The inputs to the Black Scholes model for options that have been granted during the reporting periods are summarised as follows:

2. Contingent liabilities

(Rs In lacs)

Nature of contingency March 31, March 31, 2012 2012

- Income-tax demands * 3,161.59 256.33

- Haryana rural development fund demand of market committee, Sonepat 30.78 102.03

- Food Corporation India demand for differential price /freight /taxes 339.00 339.00

- Liability against duty saved under EPCG licenses Issued 3,815.92 1,092.29

- Guarantee given by Company to bank on behalf of subsidiary/firm in which the 57,797.82 40,607.50 Company is a partner

- Guarantee given by Company on the behalf of subsidiary for export obligation under 14.68 14.68 EPCG scheme

- Guarantee given by Company to other company on behalf of subsidiary 511.57 446.50

- Guarantee given by Company for loan taken by others from banks - 3,000.00

Total 65,671.36 45,858.33

*The demand of Rs 135.96 lacs are disputed and the matter is subjudice with Commissioner of Income tax Appeals.

These are departmental appeals with Income tax appellate tribunal, which has redirected the assessing officer to re-compute the deduction under section 80IA and 80HHC in the case for AY 2002- 2003 and order of the Income tax appellate tribunal is awaited in the case for AY 2006-2007.

LT Foods Limited on August 19, 2011 received a tax demand of Rs 2,863.83 lacs pursuant to the proceedings initiated by the income tax department post the search and seizure procedures on February 10, 2009. The Company has filed appeals against the above mentioned orders and no further provisions have been made pending conclusion of the appeals. The management believes that its position is likely to be upheld and no financial liability will devolve on the Company on account of these proceeding.

3. Capital commitments

Capital commitments remaining to be executed and not provided for, net of capital advances - Rs 1.96 lacs (previous year: Rs 20.91 lacs).

4. Related party disclosures

In accordance with the requirements of Accounting Standard (AS)-18 on "Related Party Disclosures", the names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management, are:

(i) Names of related parties and description of relationship

- Subsidiary companies

Daawat Foods Limited

SDC Foods India Limited

Expo Services Private Limited

Nature Bio Foods Limited

LT International Limited

LT Overseas North America, Inc.

Kusha, Inc.

Sona Global Limited

Nice International FZE

Raghuvesh Foods & Infrastructure Limited

LT Foods USA LLC.

Raghuvesh Power Projects Limited

- Partnership firm

Raghunath Agro Industries

- Associate enterprises

LT Infotech Private Limited

Cordia LT Communications Private Limited (Subsidiary of LT Infotech Private Limited)

5. In the opinion of the board of directors, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated and provision for all known liabilities have been made in the Financial Statements.

6. The Company is a lessee under an operating lease. Rental expense for operating lease for the years ended March 31, 2012 and 2011 was Rs 453.01 lacs and Rs 376.46 lacs respectively. The Company has not executed any non-cancelable operating leases.

7. The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise is as follows:

8. Transfer Pricing

As per the transfer pricing norms introduced in India with effect from April 1, 2001, the Company is required to use certain specified methods in computing arm's length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/ class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial period. However, in the opinion of the Management the same would not have a material impact on these financial statements. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.

9. The remuneration paid to Mr. Vijay Kumar Arora (Managing Director), Mr. Ashwani Kumar Arora (Joint Managing Director) and Mr. Surinder Kumar Arora (Joint Managing Director) was approved by the shareholders of the Company. However, owing to the insufficient profits during the year, not determinable on the date of such approval, the remuneration paid during the year ended March 31, 2012 is in excess of the limits specified under the provisions of the Companies Act, 1956 by Rs 119.25lacs. The Company is taking necessary steps to seek approval from the shareholders and Central Government for excess remuneration paid.

10. In accordance with AS-17 "Segment Reporting", segment information has been given in the consolidated financial statements of LT Foods Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

11. Previous year figures

Till the year ended March 31, 2011 the Company was using pre-revised schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended March 31, 2012 the revised schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to confirm to this year's classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, its significantly impacts presentation and disclosure made in the financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. Contingent liabilities

(Rs. in Lacs)

Nature of contingency March 31,2011 March 31,2010

- Income-tax demands

Assessment Year 1999-2000** - 5.51

Assessment Year 2000- 2001 * 135.18 135.18

Assessment Year 2000 -2001 (Penalty) 81.10 81.10

Assessment Year 2002 -2003** 33.66 33.66

Assessment Year 2003 -2004 - 44.55

Assessment Year 2006 -2007 6.39 11.70

Assessment Year 2006 - 2007 (Penalty) - 0.95

- Sales tax demand-Ghaziabad - 41.91

- Haryana rural development fund demand of market committee, Sonepat 71.25 91.75

- Food Corporation India demand for differential price /freight /taxes 339.00 339.00

- Liability against duty saved under EPCG licenses Issued 1,092.29 1,027.33

- Guarantee given by Company to bank on behalf of subsidiary/firm in which the Company isa partner 40,607.50 34,009.56

- Guarantee given by Company on the behalf of subsidiary for export obligation under EPCG scheme 14.68 14.68

- Guarantee given by Company to other company on behalf of subsidiary 446.50 451.40

- Guarantee given by Company for loan taken by others from banks 3,000.00 3,000.00

Total 47,149.08 40,423.53

* The demand is disputed and the matter is sub judice with Commissioner of Income tax who has directed the Assessing officer to provide remand report. The Company has deposited Rs.45.00 lacs against this disputed demand.

** These are departmental appeals with Income tax appellate tribunal, which has redirected the assessing officer to recompute the deduction under section 80IA and 80HHC in the case for AY 2002-2003 and order of the Income tax appellate tribunal is awaited in the case for AY 2006-2007.

2. Capital contracts

Capital commitments remaining to be executed and not provided for, net of capital advances - Rs.20.91 lacs (previous year: Rs.1,321.93 lacs).

3. Employee benefits

The Company is providing the following benefits to their employees:

a) Contribution to gratuity fund

b) Leave encashment

c) Provident fund

The Company makes contribution to LT Overseas Limited gratuity fund which is administered by its trustees. The trust further makes contributions to Life Insurance Corporation of India which administers its funds. Information regarding planned assets, has been obtained by the Company from Life Insurance Corpo ration of India.

Leave encashment

During the year the Company changed its policy of accounting for leave encashment liability from full cost basis to where the liability in respect of compensated absences becoming due and expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on March 31,2011. Had the Company followed the erstwhile policy, personnel cost during the year would have been Rs.1,456.27 lacs as against the reported figure of Rs.1,444.16 lacs and the profit before tax for the year would have been Rs.2,386.38 lacs as against the reported figure of Rs.2,3 98.49 lacs.

Gratuity

The Company changed the independent actuary in the Current year accordingly the disclosure tables provided by the previous actuary are not comparable and therefore not disclosed below. Owing to the change in actuary, present value of obligation as at April 1, 2010 has changed in from Rs.93.48 lacs to Rs.71.01 lacs, primarily for different estimate and the difference has been included in actuarial gain losses.

4. Related party disclosures

In accordance with the requirements of Accounting Standard (AS)-18 on "Related Party Disclosures", the names of related parties where control exist and/or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management, are:

(i) Names of related parties and description of relationship

Subsidiary companies

Daawat Foods Limited

SDC Foods India Limited (formally known as Staple Distribution Company Limited)

Expo Services Private Limited

Vedic Spices Private Limited

Nature Bio Foods Limited

LT International Limited

LT Overseas North America, Inc.

Kusha,lnc.

SonaGlobal Limited

Nice International FZE

Raghuvesh Foods& Infrastructure Limited

LT Foods USA LLC. Partnership firm

Raghunath Agro Industries Associate enterprises

LTInfotech Private Limited

Cordia LT Communications Private Limited (Subsidiary of LTInfotech Private Limited)

Enterprise owned or significantly influenced by group of individuals or their relatives having control or significant influence over the Company

Swami Freight Brokers

RS Rice &General Mills

Key Management Personnel

Name Designation

Vijay Kumar Arora Chairman and Managing Director

Surinder Kumar Arora Joint Managing Director

Ashwani Kumar Arora Joint Managing Director

Ashok Arora President-Punjab Operations

5. In the opinion of the board of directors, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated and provision for all known liabilities have been made in the Financial Statements.

6. The Company is a lessee under an operating lease. Rental expense for operating lease for the years ended March 31,2011 and 2010 was Rs.339.51 lacs and Rs. 282.10 lacs respectively. The Company has not executed any non-cancelable operating leases.

7. With respect to the search proceedings under Section 132 of the Income-tax Act, 1961 on the Company in connection with the search proceedings conducted by the Income Tax Department (the 'Department') on the Company and its group companies/associates, no demand has been raised by the Department yet. The Company continues to cooperate with the Department and management is confident that no financial liability will devolve on the Company on account of these proceedings. An audit under Section 142(2A) of the Income-tax act, 1961 is being conducted on the accounts of the Company, the audit is still in progressand no report has been received for such audit.

8. In accordance with AS-17"Segment Reporting", segment information has been given in the consolidated financial statements of LT Foods Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

9. Previous year's figures have been regrouped/reclassified wherever necessary, to confirm to current year's classification.


Mar 31, 2010

1. CONTINGENT LIABILITIES : (Rs. in Lacs)

2009-10 2008-09

(a) Claims against the Company not acknowledged as debts which in the opinion of the Management are not tenable/under appeal at various stages: (Figures as per demand notice received by the Company exclusive of interest thereafter)#

(i) Income-Tax Demands

Assessment Year 1999 - 00** 5.51 5.51

Assessment Year 2000 - 01 * 135.18 135.18

Assessment Year 2000 - 01 (Penalty) 81.10 81.10

Assessment Year 2002 - 03 ** 33.66 33.66

Assessment Year 2002 - 03 (Penalty) NIL 4.39

Assessment Year 2003 - 04 44.55 44.55

Assessment Year 2003 - 04 (Penalty) NIL 4.05

Assessment Year 2004 - 05 (Penalty) NIL 5.27

Assessment Year 2005 - 06 (Penalty) NIL 8.17

Assessment Year 2006 - 07 11.70 11.70

Assessment Year 2006 - 07 (Penalty) 0.95 NIL

(ii) Sales Tax Demand - Ghaziabad 41.91 41.91

(iii) HRDF Demand of Market Committee, Sonepat 91.75 166.75

(iv) FCI Demand for Differential Price / Freight / Taxes 339.00 339.00

(v) Labour Related Claims 9.62 9.62

(vi) Trademark Related Claims NIL 20.00

(b) Guarantees given by Banks on behalf of the Company 123.92 93.26

(c) Letter of credits opened with bankers and remaining outstanding 1011.33 108.53

(d) Liability against Duty Saved under EPCG Licenses Issued 1027.33 1008.42

(e) Guarantee given by Company to Bank on behalf of Subsidiary/ Firm in which the Company is a Partner 34009.56 23025.50

(f) Guarantee given by Company to subsidiary for export obligation under EPCG scheme 14.68 14.67

(g) Guarantee given by Company to other Company on behalf of Subsidiary 451.40 509.50

Notes:

- The demand is disputed and the matter is subjudice with CIT who has directed the AO to provide Remand Report. The Company has deposited Rs. 45.00 Lacs against this disputed demand.

- These are departmental appeals with ITAT and ITAT has redirected the AO to recomputed the deduction under section 80IA and 8OHHC.

- Future cash outflows in respect of (a) above can be determined only on receipt of Judgment/ Decisions pending with various Forums/ Authorities.

2. Some of the receivables, loans & advances and payables are subject to confirmation from the parties.

3. Travelling Expenses include foreign travelling expenses of Rs.104.14 Lacs (Previous Year - Rs. 106.46 Lacs).

4. As required by Accounting Standard 28 “Impairment of Assets” issued by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

5. List of Small Scale Industrial Undertakings to whom payment is outstanding for more than 30 days as on 31st March, 2010 to the extent available to the Company is as under:

Adishri Marketing & Packaging Co, Ashmit Packaging Co, Avon Containners Pvt Limited, Bag Poly International Pvt. Ltd., Bharat Hosiery Factory, Box & Carton India Pvt. Ltd, Daawat Foods Pvt. Ltd., Bhopal, G.R.M. Plastic, Golden Rolls Pvt.Ltd, Indo Pack Industries, Jhaveri Flexo India Ltd., JBL Saks Pvt. Ltd., Jets Inks Private Limited, Kris Flexipacks Pvt. Ltd., Leotronic Scales Pvt. Ltd, Montage Enterprises Pvt. Ltd., Mheshwari Printpack, Nanak Chand Bhagwan Dass Jain, New Sales Corporation, Neel Kanth Packaging Industries, Nichrome India Limited, Nirmal Packaging Systems, Orient Press Limited, Packaging India Pvt. Ltd, Pearl Polymers Limited, Rajesh Die Cutting Works, Rajeev Enterprises, Reed Midway Packaging Company of, Sanmati Printo Graphics, Shri Radhey Enterprises, Shree Ram Corg Pack, S R S Engg. Co., S.R Agro Engineering, The Paper Products Ltd., Unique Corrugated Containers, Visitech Engineers Pvt. Ltd.

6. Related Party Disclosure

A. Related Parties and their Relationship

I. Subsidiary Companies

Sona Global Ltd., Dubai,UAE

L T Overseas North America Inc., California,USA

Daawat Foods Ltd.

L T International Ltd.

Nature Bio Foods Ltd.

Staple Distribution Company Ltd.

II. Fellow Subsidiaries

Nice International FZE, Dubai, UAE Kusha Corporation, California, USA

III. Enterprises controlled by Company

Raghunath Agro Industries, Bhikiwind, Amritsar (PUNJAB)

IV. Associate Enterprises

LT Infotech (Pvt.) Ltd.

Cordia LT Communications Pvt. Ltd.

V. Key Management Personnel

Mr. Vijay Kumar Arora (Chairman & Managing Director)

Mr. Surinder Arora (Joint Managing Director)

Mr. Ashwani Arora (Joint Managing Director)

Mr. Ashok Arora (President - Punjab Operations)

7. Information pursuant to provisions of paragraph 3 &4 of part II of Schedule VI of the Complantes Act, 1956.

I CAPACITY-PADDYMILLING (INSTALLED)

OWNED 33.0 MTPERHOUR

(33.0 MTPERHOUR)

5.00 MTPERHOUR

(4.5 MTPERHOUR)



The installed capacity given above is based on the information provided by the management. This being the relied upon.

8. Derivative Financial Instruments

The Company, in accordance with its risk / interest management policies and procedures, enters into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rates and interest costs. The counter party is generally a bank. These contracts are generally for a period between one day and eight years.

The Company has following outstanding derivative instruments as on March 31, 2010.

9. As per the exit rights agreement between company, Daawat Foods Limited, India Agri- business Fund Limited and Real Trust (the last two parties termed as investors in the agreement), contingent upon trigger events, investors shall have the right but not the obligation to require the company to acquire all( but not less than all) of the subscription shares held by investors at the put option price on spot delivery basis. For the purpose of the agreement put option price shall mean an amount which gives investors an IRR of fifteen percent per annum on the investment or the fairmarket value whicheveris higher. Investors are holding 56,55,341 equity share of rupees ten each, fully paid up of Daawat foods Limited at an investment price of rupees 23,30,00,050/-. Company proposes to account for this liability on occurrence of triggering events.

10. Previous year figures have been regrouped, recast and rearranged wherever necessary.

20. Figures are rounded off nearest to the Rupees in lacs.

Find IFSC