Mar 31, 2018
1. Corporate information
Milkfood Limited (âthe Companyâ) is a public limited company domiciled in India and incorporated under the provisions of the Indian Companies Act. The registered office of the Company is located at P.O. Bahadurgarh-147021 Distt. Patiala (Punjab), India. Its shares are listed on Bombay Stock Exchange (BSE). The Company is primarily engaged in the manufacture and sale of dairy products. The company has two manufacturing locations, one in the state of Punjab at Patiala and one in the state of Uttar Pradesh at Moradabad.
Footnote:
(i) For details of Property, plant and equipment charged as security of borrowings refer Note 16.
(ii) The company has elected measure item of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost. As a result accumulated depreciation on 01.04.2016 is shown at NIL.
(iii) Estimated amount of capital contracts remaining to be executed is Rs. 8 Lacs (Year 2017 Rs. 20 Lacs, Year 2016 Rs 18 Lacs)
(iv) * includes office equipment.
(v) Casien Plant has remained inactive for the last few years but maintenance is being incurred. Company decided to hold all the assets and machinery of the casein plant asinvestment for strategic alliance in financial year 2017. In current year company considered casein plant as normal PPE due to non disposal off, and charged normal depreciation including for financial year 2016-2017.
Footnotes:
(i) In view of insignifcant amount of bad debts in earlier years, no allowance for expected credit loss is made.
(ii) Considered good by the management. Adjustment in respect of dues from canteen stores Department (Govt.), if any, shall be made in financial year 2018-19.
(iii) No trade receivables are due from directors and other officers of the Company either severally or jointly with any other person. Nor any trade receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.
(i) Includes non moving stock of Rs. 46 lakhs (P.Y. 45 Lakhs). Managament is of the opinion that the same will be disposed off during financial year 2018-19 and will realise at a value not less than carrying amount.
(ii) In accordance with guidance note issued by the Institute of Chartered Accountants of India, (ICAI) Certified Emission Reduction (CER) units obtained under Clean Development Mechanism (CDM) are treated as inventory on credit by the United Nations Framework Convention on Climate Change (UNFCCC). CER''s are valued at lower of cost or Net Realisable Value (NRV) as per IND AS-2 .
(iii) The mode of valuation of inventories has been stated in Note 2.12
(iv) For details of inventories provided as security for borrowings Refer Note 19.
(i) Advance to Suppliers include an amount of Rs. 284 Lacs due from supplier on account of extinguishment of banks liability of supplier obtained against supplies to the company. Amount is confirmed by the supplier and will be adjusted in the F.Y. 2018-19. Further a sum of Rs. 129 Lacs due from suppliers are confirmed and in the opinion of managment will be adjusted/ recovered in F.Y. 2018-19.
(ii) Includes Rs. 126.51 Lacs( P.YRs. Nil ) GST receivable as on 31.03.2018.
(iii) Represents the realizable value of 97000 CER''s (PY 97000 Units) as certified by the consultant. The receivable is classified as short term as company is of the view that the units are likely to be sold in the FY 2018-19.
(i) The Company has only one class of equity shares having a par value of Re. 10 per share. Each holder of equity share is eligible for one vote per share.
(ii) 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.
(iii) Details of shares held by each shareholder holding more than 5% shares:
Footnotes:
(i) Where the Company issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to âSecurities Premium accountâ. The company may issue fully paid-up bonus shares to its members out of balance lying in the securites premium account and the Company can also use this reserve for buy-back of shares.
(ii) Includes revaluation reseve of Rs. 8443 Lacs (Rs. 7890 as on 31.03.2017 and Rs. 7990 Lacs as on 01.04.2016). Also refer to footnote (i) of Note 40.
(iii) The disaggregation of changes in each type of reserve, retained earnings and other comprehensive income are disclosed in Statement of Changes in Equity.
Footnotes:-
(i) (a) Rupee Loan from Canara Bank of Rs. 586 Lacs at interest rate of 12% p.a is payable in monthly installments fromDec''2016 to Jan''2022 (Refer Note No.21)
(b) The Loan of Canara Bank is secured by an exclusive charge on fixed assets to the extent of Rs.19.50 Crores and on pari-passu basis with State Bank of India on balance fixed assets. As per MCA 21 charge registered with Canara bank is of Rs. 20 Crores.
(ii) Rupee Loan from State Bank of India of Rs. 836 Lacs at interest rate 11.95% p.a is payable in monthly installment by June,2021 is secured against Fixed Assets as mentioned in (i)(b) above. (Refer Note 21).
(iii) Vehicle loans are secured against hypothecation of respective vehicles. (Refer Note 21)
(a) Vehicle Loans of Rs.138 Lacs from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by Mar'' 2021 and carry interest rate of 8.39% to 10.76% p.a .
(b) Vehicle Loans of Rs. 182 Lacs from Kotak Mahindra Prime Limited are repayable by Aug''2019 and carry interest of 14.50% .
(c) Total No.of vehicles financed by Kotak Mahindra Prime Limited: 22.
(iv) Term Loans from Kotak Mahindra Bank Ltd are detailed as under (Refer Note 21) :-
(a) Rupee Loan of Rs. 139 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Jan â2020.
(v) Term Loan from NBFCs are detaled as under (Refer Note 9) :-
(a) Rupee Loan from Magma Fincorp Ltd of Rs. 13 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct â2018.
(b) Rupee Loan from Bajaj Finance Ltd of Rs. 5 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct â2018.
(c) Rupee Loan from Tata Capital Financial Services Ltd of Rs. 20 Lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct â2019.
(d) Rupee Loan from Capital First Ltd of Rs. 17 Lacs at interest rate of 15.00% p.a is payable at monthly rests to be paid by June â2019.
(vi) Interest free intercorporate deposit of Rs. 50 Lacs from S J Finance and Holding (P) Ltd not payable before 31.03.2019 ascertified by the Management.
Footnote:
(i) Includes amount of Rs.Nil (PY Rs. 8 Lacs) interest on Income Tax refund.
(ii) Includes amount of Rs. 0.40 lacs ( P.Y. Rs. 34 Lacs) towards Misc. balance written back, Insurance claim of Rs. Nil ( P.Y. 2 Lacs) and input tax credit of excise duty on packing material of Rs. 11 Lacs (P.Y. Nil) on closing stock as on transtion date of Goods and Service Tax Act.
Footnote:
(i) No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties.
(ii) Related parties have been identified by the management.
(iii) Figures in bracket relates to the previous year.
* The Company is contesting these demands and the management, based on advise of its advisors, believes that its position will likely be upheld in the appellate process. No expense has been accrued in the standalone financial statements for these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and results of operations. The Company does not expect any reimbursements in respect of the above contingent liabilities.
In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company''s management reasonably does not expect that these legal actions, when ultimately concluded and determined, will have material effect on the Company''s results of operations or financial condition.
(B) Defined Benefit Plans
The Company operates one defined benefit plans i.e., gratuity fund for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.
Note: 2. Financial risk management objectives and policies
The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include , trade and other receivables, cash and cash equivalents, bank balances and security deposits that are out of regular business operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include borrowings, trade payables.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rate relates primarily to the Company''s borrowings with floating interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:
ii. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. There does not seem to be any significant risk as transaction in foreign currency are very few.
As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.
iii. Commodity price risk
The company does not have significant risk in raw material price variations. In case of any variation in price, the same is passed on to customers through appropriate adjustment to selling prices.
(b) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations. The Company''s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the Company does not expect any credit risk with respect to these financial assets. Trade receivables in respect of sale of Ghee , in majority of cases payment is received in Advance and with respect to SMP, the sale is institutional and expected credit loss is too low considering the past record.
(c) Liquidity risk
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings and security from consignment agents. The table below summarises the maturity profile of the Company''s financial liabilities:
Note: 3. Capital Management
For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective of the Company''s capital management is to ensure that it maintains a good credit rating and capital ratios in order to support its business and maximise shareholder value. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, all non-current and current borrowings reduced by cash and cash equivalents and other bank balances.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants of any interest-bearing borrowings in the current year.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.
Note 4. Fair value
Fair value measurement:
(i) All the financial assets and financial liabilities of the company are carried at amortised cost.
(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits, other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments have short-term maturities.
(iii) It is view of the management that fair value impact of long term security deposits/loan paid or payable would not be material.
Note 5. First time adoption of Ind AS
The Company has prepared financial statements which comply with Ind AS applicable for period ending on 31 March, 2018, together with the comparative period data as at end for the year ended 31 March, 2017 as described in summary of significant accounting policies. In preparing these financial statement the Company''s opening balance sheet was prepared as per Ind AS as of 1 April, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets and liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to certain exceptions and certain optional exemptions availed by the Company (as per Ind AS 101) as detailed below:
(a) Mandatory exceptions:
(i) Accounting estimates:
The Company''s estimates in accordance with Ind AS at the date of transition are consistent with previous GAAP (after adjustments to reflect any difference in accounting policies) or are required under Ind AS but not under previous GAAP.
(ii) De-recognition of financial assets and financial liabilities:
The Company has applied the de-recognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after 1 April, 2016 (the transition date)
(iii) Classification and measurement of financial assets:
The Company has determined the classification and measurement of financial assets in terms of whether they meet the amortised cost criteria or the fair value criteria or the fair value criteria based on the facts and circumstances that existed as on the transition date and considering the material impact.
(b) Optional Exemptions:
(i) Deemed cost for property, plant and equipment and intangible assets:
Ind AS 101 permits a first-time adopter to elect to measure fair value of property, plant and equipment and use that its deemed cost at the date of transition to Ind AS.
(ii) When an entity prepares separate financial statements, Ind AS 27 requires it to account for its investments in subsidiaries, joint ventures and associates either at cost or in accordance with Ind AS 109. A first-time adopter may choose either fair value at the entity''s date of transition to Ind AS in its separate financial statements or Previous GAAP carrying amount at that date, to measure its investment in subsidiary that it elects to measure using a deemed cost. Accordingly, the Company has elected to measure its investment in subsidiary using the Previous GAAP carrying amount as deemed cost.
The note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April, 2016 and the financial statements as at and for the year ended 31 March, 2017.
(i) Under previous GAAP, PPE was shown at historical cost. Ind AS 101 permits a first-time adopter to elect to continue with the carrying value of its property, plant and equipment under previous GAAP and use that as its deemed cost or to measure fair value of class assets of its property, plant and equipment as on the date of transition to Ind AS, and use that as its deemed cost as at the date of transition.
The company has elected to measure item of property, plant and equipmentand intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost.
As a result amount of Rs. 5450/- Lacs {for value refer Note 3 (ii)} towards revaluation and amount of Rs. 148/- Lacs towards reduction in deferred tax liabilities aggregating to Rs. 5598 Lacs was credited to retained earnings on 01.04.2016. The net impact on PPE as at 31.03.2017 of Rs. 5621 Lacs (inclusive of Rs 5450/- Lacs as on 01.04.2016) is due to reduction in depreciation amount of Rs. 173 Lacs on account of scaling down of value of plant & machinery (significant amount pertain to casin plant).
(ii) Under previous GAAP, there is no concept of other Comprehensive Income ( OCI). Under Ind AS specified items of income expenses, gain and loss are required to be presented in OCI.
Both under Previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, were charged to profit or loss. Under Ind AS, re-measurement (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the balance sheet with corresponding debit or credit to retained earnings through other comprehensive income. Thus, employee benefit cost for the year ended March 31, 2017 have been reduced by Rs. 21 Lakhs and re-measurement losses of Rs. 14 Lakhs (net of tax of Rs. 7 Lakhs), on defined benefit plans has been recognised in the other comprehensive income. Net impact during the F.Y.2017-18 is reduction in total comprehensive income by Rs. 25 lakhs.
(iii) Indain GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profit and accounting profit for the period Ind AS 12 requires accounting for deferred taxes using the balance sheet approach, which focuses on temporary difference between the carrying amount of an asset or liabilities in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transition adjustment lead to temporary differences and the Company has accounted for such differences. Deferred tax adjustment are recognised in correlation to the underlying transaction either in retained earnings or a separate component in equity.
Due to transition to Ind AS from previous GAAP, following adjustment were made to deferred tax assets (net) as on 31 March, 2017 and 1 April 2016.
Reduction in liability of deferred tax of Rs. 148 Lacs is on account of reduction in value of PPE (other than land & building which was increased by Rs. 8530 Lacs as refer note 3 (ii) substantial portion belonging to case in plant. Deferred tax has been computed in r/o Plant & Machinery representing temprorydiffrences. Charges to statement of profit & loss of31.03.2017, of Rs. 92 lakhs represent the amounts to confirm the figure computed as per Ind AS 12.
(iv) The transition from Previous GAAP to Ind AS did not have a material impact on statement of cash flows.
Note 6.
Standards issued but yet not effective
Ind AS 115 Revenue from Contracts with Customers
Ind AS 115 was notified on 28 March 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 April 2018. The Company will adopt the new standard on the required effective date using the modified retrospective method. The Company has established an implementation team to implement Ind AS 115 related to the recognition of revenue from contracts with customers and it continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. A reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the implementation project has been completed.
Note 7.
The comparative financial information of the company for the year ended 31 March, 2017 prepared in accordance with Ind AS included in this Financial Statements is based on Financial Statements audited under Indian GAAP by the predecessor auditor Madan& Associates, Chartered accountants vide their report dated 30 May, 2017.
Previous GAAP figures have been reclassified/regrouped wherever necessary to confirm with Financial Statements prepared under Ind AS.
Mar 31, 2016
(B) ADDITIONAL NOTES TO ACCOUNTS
i. Contingent liabilities:
Claims not acknowledged as debts Rs.99 Lac (Previous year Rs.95Lac) and guarantee / obligations of Rs.400 Lac. (Previous year 400 Lac ).
ii. Estimated amount of contracts remaining to be executed on capital account is Rs.18 Lac and not provided for (Net of Advances) (Previous year Rs. 5 Lac).
(vi) Related Party Disclosers:
A. Details of related parties with whom the Company had transactions during the year.
Description of relationship Names of related parties
(a) Enterprises over which KMP, major shareholder Jagatjit Industries Ltd.
is able to exercise significant influence MFL Trading Private Ltd (Wholly Owned Subsidiary)
(b) Key Management Personnel Ms Roshini Sanah Jaiswal (CEO/ Directors and their relatives) Mr. Sudhir Avasthi
Ms Asha Gadi Mr. Anil Girotra Mr. Amarjeet Kapoor Mr. K. K. Kohli Mr. Sanjeev Kothiala Mr. Rakesh Thakur
Note: Figures in bracket relates to the previous year
No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or payable to related parties.
(vii) Segment Reporting
The company is operating under a single segment i.e., âDairy Products- comprising Ghee, Milk Powder, Casein, Whey powder and Dairy whitenerâ and therefore there are no reportable segments as per AS-17"Segment Reportingâ issued by The Institute of Chartered Accountants of India.
Notes:-
Term Loans From Banks:
1 (a) Rupee Loan from Canara Bank of Rs.955 lacs at interest rate of 13.65% and 13.70% p.a is payable at monthly rests as
detailed hereunder :-
Rs.800 lacs (From April''2016 to January â2022) Refer Note No.9.1 (a)
Rs.155 lacs (From April''2016 to Nov''2016)
(b) This Loans sanctioned by Canara Bank are secured by the exclusive charge on fixed assets to the extent of Rs.19.50 Crores and exclusive charge on plant and machineries purchased for the fresh loan of Rs.8.00 Cr and pari-passu 1st charge with State Bank of Patiala on balance fixed assets. As per MCA 21charge registered with Canara bank is of Rs.20 Crores.
2 Vehicle Loan of Rs.4 Lac from ICICI Bank Ltd is repayable in monthly instalments by May''2017 and carry interest of 10.50%. Refer Note no. 9.1 (b).
3 Vehicle Loans of Rs. 61 Lac (Two in number) from HDFC Bank Limited is repayable in monthly instalments by Dec''2017 and carry interest of 10.25%. (Refer note no. 9 (a).
4 Rupee Loan from State Bank of Patiala of Rs. 1313 lacs at interest rate 11.95% p.a is payable at monthly installment by July, 2021
5 Vehicle loans are secured against hypothecation of respective vehicles.
(a) Vehicle Loans of Rs.187 Lac from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by June'' 2017 and carry interest rate of 14.15% p.a . Refer Note No.9.1(b)
(b) Vehicle Loans of Rs.253 Lac from Kotak Mahindra Prime Limited are repayable in monthly instalments of varied amounts and repayable by Mar â 2019 and carry interest rate of 9.95% to 11.89% p.a . Refer Note No.9.1(b)
(c) Vehicle Loans of Rs.38 Lac from Kotak Mahindra Prime Limited are repayable by Feb''2017 and carry interest of 14.91% . (Refer note no. 9.1(b)).
(d) Total No.of vehicles financed by Kotak Mahindra Prime Limited: 64.
6 Term Loans from Kotak Mahindra Bank Ltd as detail hereunder :-
(a) Rupee Loan from Kotak Mahindra Bank Ltd of Rs.154 lacs at interest rate of 15.25% p.a is payable at monthly rests and to be paid by Feb''2018. Refer note no.9.1(c).
(b) Rupee Loan from Kotak Mahindra Bank Ltd of Rs.73 lacs at interest rate of 15.25% p.a is payable at monthly rests and to be paid by Aug â2017. Refer note no.9.1(c).
(c) Rupee Loan from Kotak Mahindra Bank Ltd of Rs.99 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Feb â2017. Refer note no.9.1(c).
7 Unsecured Loans
(a) Rupee Loan from Magma Fincorp Ltd of Rs.84 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct â2018. Refer note no.9.1(c)
(b) Rupee Loan from Bajaj Finance Ltd of Rs.33 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct â2018. Refer note no.9.1(c)
(c) Rupee Loan from Tata Capital Financial Service Ltd of Rs.33 lacs at interest rate of 15.00% p.a is payable at monthly rests and to be paid by Oct â2018. Refer note no.9.1(c)
8 During the year intercorporate deposit of Rs. 325 lakh from Win win traders (P) Ltd has been transferred to security deposit
account and Rs.175 Lac has been adjusted in supplier account. Refer note 5.1.
9 Public deposits matured but unclaimed amounting to Rs 19 lacs (Previous Year 10 lacs).
Footnote:
10 Security Deposits are confirmed by Suppliers payable after 31.03.2017 and have been accordingly classified.
11 (a) Security Deposits are confirmed by Consignees payable after 31.03.2017 and have been accordingly classified.
(b) Includes sum of Rs.79 Lacs which is repayable beyond twelve months from the reporting date, as certified by the
management.
12 Includes Rs 9 Lac towards Public Deposit interest payable (to be transferred to investor education fund in future years) and Rs. 1 lac payable to ex-employee pending final decision of court.
13 Provision for Gratuity and leave encashment has been made in terms of AS-15 (Revised). For Gratuity Liability has been determined as on 31.03.2016 and for Leave Encashment Liability it is determined on calender year basis. Also Refer Note No.10.
14 Cash Credit sanctioned by state Bank of Patiala/Canara Bank are secured by charge on pari passu basis on all present & future Current Assets (excluding vehicles) but including stocks and book debts and extension of charge on pari-passu basis on the fixed assets of the company, equitable mortgage of Land & Building at Gurgoan owned by Ispace Developers Private Limited and exclusive charge on company''s Brand âMILKFOODâ.
The State Bank of Patiala has also extended supplier''s line of credit to the extent of Rs.400 Lac covered in the charge created by the company in its overall limits. Refer Note 4.1(b).
Note:-
15. As per information available with the company there is no party registered under Micro, Small and Medium Enterprises Development Act, 2006.
16.(A) (i) There is no impairment of assets as per AS 28 of ICAI as the company has a composite plant with production facilities capable of interchangeable use for manufacture of casein and milk powder. All assets had been put to use for manufacture of milk powder.
(ii) Includes intangible assets of Rs. 597 lacs written down value of Rs. 173 lacs. In accordance with AS-26 expenses incurred on Intangible Asset and is amortized over a period of 10 years. The amount amortized during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).
(iii) Company has capitalized the opening work in progress and the additions made during the year at the close of the year at patiala unit and accordingly charged the depreciation.
(iv) In respect of Plant & Machinery, company is consistently following the policy of charging depreciation over 20 years for assets purchased before 01.04.2014 on the basis of certificate given by Govt. approved valuer (Chartered Engineer) of the useful life of more than 35 years. Similarly for additions in Plant & Machinery after 01.04.2014, company has estimated useful life of 20 years (as against 15 years specified in schedule II of the companies Act 2013) based upon the certificate of suppliers/manufacturers of Plant & Machinery.
(v) Interest of Rs 6.64 Lacs incurred prior to assets are put to use is capitalized in Plant & Machinery (PY Rs.38 Lac) as per AS -16.
17. (B) (a) Estimated amount of capital contracts remaining to be executed is Rs.18 Lac (PY Rs.5.08Lac).
(b) Includes Rs.148 Lac for Plant & Machinery & Rs.7 Lac for building.
Note:-
18. Pledged with Government Authorities towards fulfillment of statutory obligations.
19. Advances, security deposits and advances to employees are considered good for recovery as certified by the Management.(Refer Note No 18a). During the year company has realised Rs.15 lakh from non moving advances of earlier years. Amount is being realised as stipulated.
20. Deposit with Sales Tax Authorities represents the amount deposited as a condition for the appeal and considered good for recovery as certified by the management.
21. Pertains to earlier years and reconcilation is in process.
Notes:-
22. Includes Rs. 7 lakh due from government departments outstanding for a period exceeding 3 Years. Management certifies that these are good for recovery. Necessary adjustment, if any, will be effected in FY 2016-17
23. Reclassified as inventory (Refer Note 15.2)
24. Company has incurred Rs. 951.44 Lacs on advertisement of dairy creamer which has been launched during the year. This amount is being amortized in four years and accordingly Rs. 237.86 Lacs has been amortized during the year. An amount of Rs. 733.81 is being carried forward to subsequent years, out of which Rs. 237.86 Lacs has been shown as current and Rs 475.72 Lacs as non current assets.
Note:-
25. In accordance with guidance note issued by the Institute of Chartered Accountants of India, (ICAI) Certified Emission
Reduction (CER) units obtained under Clean Development Mechanism (CDM) are treated as inventory on credit by the United Nations Framework Convention on Climate Change (UNFCCC). CER''s are valued at lower of cost or Net Realisable Value (NRV- certified by the consultant) as per AS-2 of ICAI. Total cost incurred is Rs. 25.82 Lacs (Nil in current year) for CDM project being lower than NRV of 128919 CER Units. Company is confident of sale of these CER units in the FY 2016-17.
26. During the year company has accounted for income for Rs. 67.67 Lacs under exceptional item''s representing cost of trees and Plantations on account of expenses incurred on Power & Fuel and labour for irrigation of the plants in earlier years. In Absence of separate identifiable cost attributable to irrigation, the same has been estimated on the basis of opinion taken from the Agriculture Scientist. Further Expert has given an opinion that these trees have acquired sufficient growth for sale as at 31.03.2016. Based upon the opinion, company has classified the expenses under inventory.
Footnote:-
27.. Classified as Short Term loans as certified by the Management.
28. (1) Amortized on account advertisement expenses incurred on the launch of new product âDairy Whitenerâ.
29.A (2) Includes amounts written back on account of expenses incurred in earlier years on trees & plantation (Refer Note 15.2), security deposit and other balances written back which are no longer payable, as certified by the management. (Refer Note 5.1)
30.(a) Provision for Gratuity and Leave encashment has been made during the year in terms of AS-15 (Revised).
(b) Includes provision of minimum bonus of Rs. 14.25 lacs ( Previous year Rs.6.33 lacs) under the payment of Bonus Act 1965.
(c) Includes Rs.156 Lac paid to related party subject to approval by the shareholders in the AGM.
(d) Includes Rs 11.45 Lacs reimbursed to Ex- MD of the company towards medical expenses.
31 Interest of Rs 6.64 Lacs (PY Rs.38 Lac) capitalized towards Plant & Machinery installed during the year. (Refer Note 11 A (v)).
32 (a) Includes reimbursement of Rs 2.39 Lacs to Ex-MD of the company.
(b) Includes Rs 195 Lacs of Carbon Credit written off based on the opinion of the consultant.
33. While computing the Deferred tax liability /assets, benefit of brought forward losses has been taken on the basis of returned income (loss) instead of assessed income (loss) with regards to matters preferred in appeal (s).
Mar 31, 2015
1. Related Party Disclosers:
A. Details of related parties with whom the Company had transactions
during the year.
Description of relationship Names of related parties
(a) Enterprises over which KMP, Jagatjit Industries Ltd.
major shareholder is able to MFL Trading Private Ltd
exercise significant influence (Wholly Owned Subsidiary)
Triputi Infrastructure
Private Ltd
(b) Key Management Personnel Ms Roshini Sanah Jaiswal
(CEO/ Directors and their Mr. Sudhir Avasthi
relatives) Ms Asha Gadi
Mr. Suresh Alipuria
Mr. Anil Girotra
Mr. Amarjeet Kapoor
Mr. K. K. Kohli
Mr. Sanjeev Kothiala
Ms. Rishbha Ahluwalia
Mr. Rakesh Thakur
2. Term Loans From Banks:
i. Rupee Loan from Canara Bank of Rs.395 lacs at interest rate of
13.70% p.a is payable at monthly rests in equal instalments of Rs.20
Lac each, detailed hereunder:-
Rs.240 lacs ( From April'2015 to March'2016) Refer Note No.9(a)
Rs.155 lacs ( From April'2016 to Nov'2016)
ii. Term Loans sanctioned by Canara Bank are secured by the exclusive
charge on fixed assets to the extent of Rs.19.50 Crores and pari-passu
1st charge with State Bank of Patiala on balance fixed assets.As per
MCA 21charge registered with Canara bank is of Rs.27 Crores. Company
has vide letter dated 20.02.2015 written to the bank for satisfaction
of charge of Rs.15 Crores which is pending.
3. Vehicle loans are secured against hypothecation of respective
vehicles.
i. Vehicle Loans of Rs.315 Lac from Kotak Mahindra Prime Limited are
repayable in monthly instalments of varied amounts and repayable by
June' 2017 and carry interest rate of 14.15% p.a . Refer Note No.9(b)
ii. Vehicle Loans of Rs.117 Lac from Kotak Mahindra Prime Limited are
repayable in monthly instalments of varied amounts and repayable by
Sep' 2018 and carry interest rate of 9.95% to 11.38% p.a . Refer Note
No.9(b)
iii. Vehicle Loans of Rs.201Lac from Kotak Mahindra Prime Limited are
repayable by Feb'2017 and carry interest of 14.91% .(Refer note no. 9
(b))
(a)Total No.of vehicles financed by Kotak Mahindra Prime Limited:
47.
iv. Vehicle Loan of Rs.8 Lac from ICICI Bank Ltd is repayable in
monthly instalments by June'2017 and carry interest of 10.50%. Refer
Note no. 9 (b).
5. Vehicle Loans of Rs.94 Lac (Two in number) from HDFC Bank Limited
is repayable in monthly instalments by Dec'2017 and carry interest of
10.25%. (Refer note no. 9 (a).
6. Vehicle loan of Rs.4 Lac from Magma Fincorp Ltd is repayable in
monthly instalments by Jan'2016 and carry interest of 12.33%. (Refer
note no. 9 ( b).
4. Rupee Loan from Kotak Mahindra Bank Ltd of Rs.193 lacs at interest
rate of 15.00% p.a is payable at monthly rests and to be paid by
Feb'2017. Refer note no. 7 b (1.2)
5. Inter Corporate Deposit of Rs.500 Lac from M/S Win Win Traders P
Ltd is payable by 31st March'2017 as certified by the Management.
6. Public Deposits:-
i. Public deposits are repayable as under:
(a) Rs.331 lacs Payable by March 2016 and carry interest of 11% to
11.5%.(Refer note no. 9 (c))
(b) Rs.225 lacs Payable by March 2017 and carry interest of 11% to
11.5%
ii. Public deposits guaranteed by Directors Rs.183 lacs/-
iii. Public deposits matured but unclaimed amounting to Rs 10 lacs
(Previous Year 9 lacs ).
7. Security Deposits are confirmed by suppliers payable after
31.03.2016 and have been accordingly classified.
a. Includes Rs.2542 Lac as security deposit from the consignees and
payable after 31.03.2016 as certified.
b. Includes sum of Rs.650 Lac which is repayable beyond twelve months
from the reporting date, as certified by the management.
c. Includes Rs 6 Lac towards Public Deposit interest payable (to be
transferred to investor education fund in future years) and Rs. 1 lac
payable to ex-employee pending final decision of court.
8.a Cash Credit sanctioned by State Bank of Patiala/Canara Bank are
secured by charge on pari passu basis on all present & future Current
Assets (excluding vehicles) but including stocks and book debts and
extension of charge on pari-passu basis on the fixed assets of the
company, equitable mortgage of Land & Building at Gurgoan owned by
Ispace Developers Private Limited and exclusive charge on company's
Brand "MILKFOOD".
The State Bank of Patiala has also extended supplier's line of credit
to the extent of Rs.400 Lac covered in the charge created by the
company in its overall limits. Refer Note 1.2 of Note 4.
b. Rupee Loan from Kotak Mahindra Bank Ltd of Rs.193 lacs at interest
rate of 15.00% p.a is payable at monthly rests and to be paid by
Feb'2017. (Refer Note no. 4 (3)
9.(i) There is no impairment of assets as per AS 28 of ICAI as the
company has a composite plant with production facilities capable of
interchangeable use for manufacture of casein and milk powder. All
assets had been put to use for manufacture of milk powder.
(ii) Includes intangible assets of Rs. 597 lacs written down value of
Rs. 233 lacs. In accordance with AS-26 expenses incurred on Intangible
Asset and is amortized over a period of 10 years . The amount amortized
during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).
a. Company has capitalized the opening work in progress and the
additions made during the year at the close of the year and accordingly
charged the depreciation.
b. In accordance with Schedule II of the Companies Act 2013, the
management has reassessed the remaining useful life of Plant &
Machinery with effect from 1st April 2014. As a result of the above,
depreciation of Rs.26.64 Lac has been charged to Statement of Profit &
Loss Account and Rs.3.36 Lac has been adjusted with opening retained
earnings (i.r.o.assets of which useful life is exhausted.) for twelve
months ended 31st March, 2015. In respect of Plant & Machinery, company
is consistently following the policy of charging depreciation over 20
years , notwithstanding certification by the Govt. approved valuer
(Chartered Engineer) of the useful life of Plant & Machinery is more
than 35 years. This is in pursuance of proviso to sub clause (i) of
clause 3 of Schedule ii of Companies Act 2013. Similarly for additions
of Plant & Machinery during the year company has estimated the useful
life of 20 years (as against 15 years specified in schedule ii) based
upon the certificate of suppliers/ manufacturers of Plant & Machinery.
c. Interest of Rs.38 Lac have been capitalized in Plant & Machinery in
accordance with As-16 as certified by the management.
10. In accordance with guidance note issued by the Institute of
Chartered Accountants of India, (ICAI) Certified Emission Reduction
(CER) units obtained under Clean Development Mechanism (CDM) are
treated as inventory on credit by the United Nations Framework
Convention on Climate Change (UNFCCC). CER's are valued at lower of
cost or Net Realisable Value (NRV- certified by the consultant) as per
AS-2 of ICAI. Total cost incurred is Rs.25.82 Lac. (Rs.21.90 Lac
pertaing to earlier years and Rs.3.92 Lac of current year) for CDM
project being lower than NRV of 128,919 CER units.
11.i) Classified as Short Term loans as certified by the Management.
ii. Includes Rs.700 Lac due from a Promoter company towards the sale of
Milkfood brand ( ealier year ) pending no objection from the lending
bank who hold the charge. Amount is recoverable within one year from
the reporting date as certified by the Management.
iii. Represents the realizable value of 97000 CER's (PY 97000 Units) as
certified by the consultant. The amount has been accounted for as
income in ealier years and is classified as short term as company is of
the view that the units are likely to be sold in the FY 2015-16.
Adjustments if any shall be effected on disposal of the units.
12. Expenses are net of interest received of Rs.91 Lac from M/S Triputi
Infrastructure Private Ltd. (P Y Nil). Further interest of Rs.38 Lac (P
Y Nil) has been capitalized in Plant & Machinery installed during the
year on the premise that the Plant & Machinery was put to use beyond
one year of its acquisition.
Mar 31, 2014
I. The Contingent liabilities:
Claims not acknowledged as debts Rs.152 Lac. (Previous year Rs.516
Lac).
ii. Estimated amount of contracts remaining to be executed on capital
account is Rs.23 Lac and not provided for (Net of Advances) (Previous
year Nil).
iii. Exceptional items represents Profit/(Loss) on Carbon Credits
written off, Security deposit written off, Abnormal wastage of Husk and
Packing material, provision for gratuity and leave encashment including
prior period and on sale of vehicles.
Notes:-
1 Term Loans From Banks:
(1.1) Rupee Loan from Canara Bank of Rs.188 lacs at interest rate of
15.00% p.a is payable in quarterly instalments as follows:-
Rs.188 lacs (From April''2014 to June''2014) Refer Note No.9(a)
(1.2) Rupee Loan from Canara Bank of Rs.635 lacs at interest rate of
13.70% p.a is payable at monthly rests,the details are as follows:-
Rs.240 lacs (From April''2014 to March''2015) Refer Note No.9(a)
Rs.395 lacs (From April''2015 to Nov''2016)
(1.3) Term Loans sanctioned by Canara Bank are secured by the exclusive
charge on fixed assets to the extent of Rs.19.50 Crores and rank
pari-passu with State Bank of Patiala on all present and future current
assets(excluding vehicles) and fixed assets including Plant &
Machinery/ immovable properties situated at Bahadurgarh & Moradabad
together with all Building and structures thereon, equitable mortgage
of Land & Building at Gurgaon in the name of Ispace Developers Pvt Ltd
and exclusive charge on Company''s Brand "MILKFOOD".
2. Vehicle loans are secured against hypothecation of respective
vehicles.
(2.1) Vehicle Loans of Rs.426 Lac (Twenty Nine in number) from Kotak
Mahindra Prime Limited are repayable in monthly instalments of varied
amounts and repayable by June'' 2017 and carry interest rate of 14.15%
p.a. Refer Note No.9(b)
(2.2) Vehicle Loans of Rs.74 Lac (Nine in number) from Kotak Mahindra
Prime Limited are repayable in monthly instalments of varied amounts
and repayable by Sep'' 2018 and carry interest rate of 9.95% to 11.38%
p.a. Refer Note No.9(a)
(2.3) Vehicle Loans of Rs.6 Lac from Volkswagen Finance Private Limited
are repayable in monthly instalments by May'' 2016 and carry interest of
10.50%. (Refer note no. 9 (b)).
(2.4) Vehicle Loans of Rs.47 Lac from HDFC Bank Limited is repayable in
monthly instalments by April'' 2016 and carry interest of 10.25%. (Refer
note no. 9 (a)).
(2.5) Vehicle Loan of Rs.8.22 Lac from Magma Fincorp Ltd is repayable
in monthly instalments by January'' 2016 and carry interest of 12.33%.
(Refer note no. 9 (a)).
3. Intercorporate Deposits are repayable by September2015 and carry
interest @14% on net basis.
4. Public Deposits:-
(4.1) Public deposits are repayable as under:
(a) Rs. 535 lacs Payable by March 2015 and carry interest of 10.50% to
11.5%.(Refer note no. 9 (c)).
(b) Rs. 553 lacs Payable by March 2016 & 2017 and carry interest of 11%
to 11.5%
(4.2) Public deposits guaranteed by Directors Rs. 290 lacs.
(4.3) Public deposits matured but unclaimed amounting to Rs. 9 lacs
(Previous Year 9 lacs).
5.Note:-
1. Security Deposits are confirmed by suppliers payable after
31.03.2015 and have been accordingly classified.
2. (i) Includes a sum of Rs. 961 lacs which is repayable beyond twelve
months from the reporting date, as certified by the management.
(ii) Includes Rs.2176 lacs confirmed by the creditors payable after 12
months from the reporting date.Including Rs.83 lacs due to customer on
account of sales return. Amount will be adjusted after expiry of
limitation period.
3. Includes Rs. 4 lacs towards Public Deposit interest payable (to be
transferred to investor education fund in future years) and Rs. 1 lacs
payable to ex-employee pending final decision of court.
6. Provision of Rs.173 lacs has been made towards gratuity and leave
encashment in terms of AS-15 (Revised). Refer Note No.10 and 21.3
Note:-
7 Cash Credit sanctioned by State Bank of Patiala/Canara Bank are
secured by first charge on pari passu basis on all present & future
current assets (excluding vehicles) and fixed assets including Plant &
Machinery/ immovable properties situated at Bahadurgarh & Moradabad
together with all Building and structures thereon, equitable mortgage
of Land & Building at Gurgoan in the name of Ispace Developers Pvt Ltd
and exclusive charge on company''s Brand "MILKFOOD". The State Bank of
Patiala has also extended supplier''s line of credit to the extent of
Rs.400 Lac covered in the charge created by the company in its overall
limits. Refer Note 1.3 of Note 4.
8 Rupee Loan from Kotak Mahindra Bank Ltd of Rs.168 lacs at interest
rate of 16.00% p.a is payable at monthly rests and to be paid by
Jan''2015.
Note:
9 (a) As per information available with the company there is no amount
due to any party registered under Micro, Small and Medium Enterprises
Development Act, 2006.
(b) Refer Note 5(1).
10 Notes:-
1 (i) There is no impairment of assets as per AS 28 of ICAI as the
company has a composite plant with production facilities capable of
interchangeable use for manufacture of casein and milk powder. All
assets had been put to use for manufacture of milk powder for domestic
and exports owing to better realization.
(ii) Includes intangible assets of Rs. 597 lacs written down value of
Rs. 292 lacs. In accordance with AS-26 expenses incurred on Intangible
Asset and is amortized over a period of 10 years . The amount amortized
during the year is Rs. 60 lacs ( Previous Year Rs.60 lacs).
2. The company has computed depreciation in respect of plant &
machinery as per the prescribed rates under schedule XIV of the
Company''s Act 1956 on straight line method since 1.4.1988 and prior to
that as per section 205 and other applicable provisions of the
Company''s Act 1956. This has resulted into an excess depreciation of
Rs.252 Lac at Patiala unit and Rs.48 Lac in Moradabad unit. The excess
depreciation charged of Rs.300 Lac as certified by management is shown
net of short depreciation charged of Rs.83 Lac in the previous FY
2012-13.
3. Company has capitalized the opening work in progress and the
additions made during the year (including substantial renovation) at
the close of the year and accordingly charged the depreciation.
11 Note:
1. Due to closure of business of the investee company the entire
amount is written off and charged to extra ordinary items - Refer Note
No.21.3
2. Pledged with Government Authorities towards fulfillment of
statutory obligations.
12 Notes:
1. Advances, security deposits and advances to employees are considered
good for recovery as certified by the Management. Refer Note No. 19 b
1.1 Deposit with Sales Tax Authorities represents the amount deposited
as a condition for the appeal and considered good for recovery as
certified by the management.
13 Notes:
1. Excludes Rs 4.89 lacs on account of issue of cheques (stale) against
payment of interest.
14 Note:
1 (i) Includes Rs.700 Lac due from a Promoter company towards the sale
of Milkfood brand pending no objection from the lending bank who hold
the charge.
(ii) Includes Rs.468 Lac due from suppliers of Milk. Management is of
the view that the same will be recovered within 12 months from the
reporting date.
2. Represents the realizable value of Carbon credits as certified by
the consultant. During the year company has charged off Rs.225 Lac
against Extra ordinary income. (Refer Note 21.3). It is certified by
the management that the amount would be realized within a year from the
reporting date.
15 Note:
(a) Provision for Gratuity and Leave encashment of Rs.173 Lac has been
made during the year in terms of AS-15 (Revised) and charged of as
exceptional items. (Refer Note No. 21.3)
(b) Includes provision of minimum bonus of Rs. 7.41 lacs (Previous year
Rs.10 lacs) under the payment of Bonus Act 1965.
1. Excludes Rs.13.51 Lac capitalized in Tangible Assets.
2. Excludes Rs. 162 Lac (Refer Note No. 21.3)
3. Excludes Rs. 104 Lac (Refer Note No. 21.3)
4. Includes Prior period expenses of Rs.7.15 Lac, Misc balances
written off Rs.18.15 Lac and income Tax on perquisites Rs.13.35 Lac.
16 Note:
While computing the Deferred tax liability /assets , benefit of
brought forward losses has been taken on the basis of returned
income(loss) instead of assessed income (loss) with regards to matters
preferred in appeal (s).
Mar 31, 2013
I. Contingent liabilities:
Claims not acknowledged as debts Rs.516 Lacs net of tax u/s 115 JB
Rs.415 Lacs. (Previous year Rs.594 Lacs net of tax u/s 115 JB Rs.476
Lacs).
ii. Estimated amount of contracts remaining to be executed on capital
account is nil and not provided for (Net of Advances) (Previous year
Rs.212 Lacs).
iii. Exceptional items represents Proft/(Loss) on sale of vehicle.
Note: Figures in bracket relates to the previous year
No amounts have been written off / provided for or written back during
the year in respect of amounts receivable from or payable to related
parties.
Term Loans From Banks:
(1.1) Rupee Loan from Canara Bank of Rs.875 lacs at interest rate of
15.00% p.a is payable in quarterly instalments as follows:- (a) Rs.688
lacs ( From April''2013 to March''2014) Refer Note No.9(a)
(b) Rs.188 lacs ( From April''2014 to June 2014).
(1.2) Cash Credit and Term Loans sanctioned by State Bank of
Patiala/Canara Bank are secured by frst and exclusive charge on all
present and future current assets (excluding vehicles) and fxed assets
including Plant & Machinery/ immovable properties situated at
Bahadurgarh & Moradabad together with all Building and structures
thereon, equitable mortgage of Land & Building at Gurgaon in the Name
of Ispace Developers Pvt Ltd and exclusive charge on company''s Brand
"MILKFOOD". The State bank of Patiala has also extended supplier''s line
of credit to the extent of Rs. 400 lacs covered in the charge created
by the company in its overall limits.
2. Vehicle loans are secured against hypothecation of respective
vehicles.
(2.1) Vehicle Loans (fve in number) from ICICI Bank are repayable in
monthly instalments of varied amount and repayable by February 2015 and
carry interest rate of 10.49% to 12% p.a based upon terms & conditions
of respective Loans.
(2.2) Vehicle loan from BMW Financial Services is payable in 5 years
monthly instalments and is repayable by September 2016 and carry
interest rate of 12% p.a. (Refer note no. 9 (a))
(2.3) Vehicle Loans (fve in number) from Kotak Mahindra Prime Ltd are
repayable in monthly instalments of varied amount and are repayable by
December 2015 and carry different rates of interest in range of 10.55%
to 11.94%. (Refer note no. 9 (a))
3. Loan from Religare Finvest limited carry foating rate of Interest
of 16% in respect of both the loan of Rs. 700 lacs & of Rs.1500 lacs.
Both the loans are on equated monthly of Rs. 11 lacs and Rs.17 lacs
respectively and are repayable by 1st March 2018. (Refer note no. 9
(a))
4. Intercorporate Deposits are repayable by September 2014 and carry
interest @ 14% p.a. on net basis.
5. Public Deposits:-
(5.1) Public deposits are repayable as under:
(a) Rs. 539 lacs Payable by March 2014 and carry interest of 10.50% to
11.50%. (Refer note no. 9 (a))
(b) Rs. 555 lacs Payable by March 2015 & 2016 and carry interest of 11%
to 11.50% (5.2) Public deposits guaranteed by Directors Rs.281 lacs/-
(5.3) Public deposits matured but unclaimed amount to Rs. 9 lacs
(Previous Year 10 lacs).
1. Addition represents stamp duty/ charges paid on registration of
Moradabad land in favour of the company.
2 (i) Operations of Casein Plant (Patiala) remained suspended till
December''2012 because of ban on export of casein, which had been
partially lifted in August''
2012. Company obtained the license during the year and has manufactured
and exported 140 MT and 119 MT respectively. Company is very optimistic
about the future and has made the projections of cash fow of 5 years
considering that it will be able to manufacture and sell 1200MT of
casein during the FY2013-14 based upon the orders in hand of 544 MT.and
at incremental growth @5% for subsequent years. . In confrmity with
Accounting Standard AS- 28 issued by the ICAI, the total carrying
amount of assets including intangible Assets is Rs.3432 lacs of Casien
Plant. and the present value of the future cash fow discounted @ 12% is
Rs3467 lacs. Since present value of Rs 3467 lacs exceeds the carrying
amount , no impairment of Asset is recognised.
(ii) Includes intangible assets of Rs. 597 lacs written down value of
Rs. 352 lacs. In accordance with AS-26 expenses incurred on
development/defning the manufacturing process of any product to meet
the required standard is recognized as Intangible Asset and is
amortized over a period of 10 years. The amount amortized during the
year is Rs. 60 lacs ( Previous Year Rs.60 lacs).
3 Assets at Gurgaon:
(a) Plant and Machinery and furniture and fxtures held for disposal
have been depreciated at the rates prescribed under Schedule XIV of the
Companies Act. The aggregate written down value of such assets is
Rs.17.75 Lacs (Previous year Rs.21.09 lacs). Plant and Machinery and
furniture and fxtures held for disposal have been depreciated at the
rates prescribed under Schedule XIV of the Companies Act. The aggregate
written down value of such assets is Rs.15 lacs under Schedule XIV of
the Companies Act. The aggregate written down value of such assets is
Rs.15 lacs (Previous year Rs.18 lacs).
4 (i) Based upon technical evaluation about life of assets Company has
charged depreciation on Plant & Machinery at the rate 3.17% instead at
4.75% prescribed in schedule XIV of the Companies Act 1956.As a result
depreciation charged is less by Rs.84 lacs during the year. Company has
made an application for approval of lower rates than prescribed in
schedule XIV of the Companies Act 1956. Approval from Ministry of
Corporate Affairs is awaited.
(ii) Addition to plant and machinery at Patiala Unit of Rs 870 lacs
includes expenses of Rs 100 lacs being proportionate overheads
capitalized at the close of the year and depreciation provided
accordingly.
5. Company has capitalized the opening work in progress and the
additions made during the year (including substantial renovation) at
the close of the year and accordingly charged the depreciation.
1. In the earlier years company had invested Rs.425 lacs in the
preference share capital of M/s Grand Regency Hospitalities (P) Ltd.
The investee company had stopped the business due to termination of
lease of premises. More than 50% of net worth of investee company is
eroded due to losses. However Company is of the view that there is no
need for creating any provision for diminution in the value of
investments considering the estimated fair value of the Brand of
investee company.
2. Pledged with Government Authorities towards fulfllment of statutory
obligations.
1. (a) Stocks on consignment of Rs.31 lacs (Previous year Rs 25 lacs )
remains unconfrmed at the year end.
(b) Includes stock of Whey Powder (By-product) of Rs. 27 lacs (previous
year Rs 69 lacs).
(c). Includes Rs.35 lacs towards unutilized Input Credit . Management
is of the opinion that the same will be utilized in the next fnancial
year.
1 Include Rs.200 lacs paid by the company to the respondents on the
directions of Hon''ble Supreme Court for admitting the Special Leave
Petition against the order of High Court of Patna confrming the payment
of Rs.328 lacs (Shown as Contingent Liability) Hon''ble supreme court
has ruled that Delhi High court holds the jurisdiction . Management
believes that the matter will be decided within 12 months of the
reporting date.
2. Represents amount deposited in earlier years on a demand raised by
the authorities. Identical matter is pending in appeal before Supreme
Court. Management believes that the same is likely to be decided in the
coming year.
3. Includes Rs.19 lacs pertaining to earlier years for disputed
matters pending in appeals.
4. Represents balance due on account of VCS certifcates at the close
of the year. In the opinion of management and as certifed by the
consultant that in view of the improved international prices the
remaining VCS certifcates will be sold by next fnancial year and the
amount realized will not be less than the amount recorded in books.
1 Based upon technical evaluation about life of assets Company has
charged depreciation on Plant & Machinery at the rate 3.17% instead at
4.75% prescribed in schedule XIV of the Companies Act 1956. As a result
depreciation charged is less by Rs.84 lacs during the year. Company has
made an application for approval of lower rates than prescribed in
schedule XIV of the Company Act 1956. Approval from Ministry of
Corporate affairs is awaited.
2. Refer note 3 of Note 11 A
1 While computing the Deferred tax liability /assets , beneft of
brought forward losses has been taken on the basis of returned
income(loss) instead of assessed income (loss) with regards to matters
preferred in appeal (s).
Mar 31, 2012
I. Contingent liabilities:
Claims not acknowledged as debts Rs.594.43 lacs net of tax u/s 115 JB
Rs.475.50 Lacs. (Previous year Rs.766.56 lacs net of tax Rs.613.98
lacs).
ii. Estimated amount of contracts remaining to be executed on capital
account and not provided for (Net of Advances) Rs.211.82 lacs (Previous
year Rs. 58.87 lacs).
iii. Exceptional items represents Profit/(Loss) on sale of vehicles.
iv. Extra ordinary items represent miscellaneous income arising on
account of recovery made from contractual obligations of earlier years.
Note:- Figures in bracket relates to the previous year
No amounts have been written off / provided for or written back during
the year in respect of amounts receivable from or payable to related
parties.
Notes:-
1 Term Loans From Banks:
(1.1) Rupee Loan from Canara Bank of Rs.1500 lacs at interest rate of
15.50% p.a is payable in quateriy instalments as follows:-
(a) Rs. 62.50 lacs from September 2011 to June 2012
(b) Rs. 125.00 lacs from September 2012 to June 2013
(c) Rs. 187.50 lacs from September 2013 to June 2014.
(1.2) Rupees Loan from State Bank of Patiala are repayable in equated
monthly instalments of Rs.35.90 lacs and Rs. 8.50 lacs upto a period of
5 years from the date of respective loan. Loan is repayable by 30th
August, 2012 and carry interest of 15.25% & 15.75% p.a.
(1.3) Cash Credit and Term Loans sanctioned by state Bank of
Patiala/Canara Bank are secured by first and exclusive charge on all
present and future current assets and fixed assets including Plant &
Machinary/ immovable properties situated at Bahadurgarh & Moradabad
together with all Building and structures thereon, equitable mortagage
of Land & Building at Gurgaon in the Name of Ispace Developers Pvt Ltd
and exclusive charge on company's Brand ÃMILKFOODÃ. The State bank
of Patiala has also extended supply line of credit to the extent of Rs.
8 crore against which company has created a charge on its immovable
assets.
2. Vehicle loans are secured against hypothecation of respective
vehicles.
(2.1) Term Loans (Vehicle) from ICICI Bank are repayable in monthly
instalments of varied amount and repayable by February 2015 and carry
interest rate of 6.66% to 12% p.a based upon terms & conditions of
respective Loans.
(2.2) Vehicle loan from BMW Financial Services is payable in 5 years
monthly instalments and is repayable by September 2016 and carry
interest rate of 12% p.a.
(2.3) Vehicle Loans (thirty three in number) from Kotak Mahindra Prime
Ltd are repayable in monthly instalments of varied amount and are
repayable by March 2013 and carry different rates of interest.
3. Loan from Religare Finvest limited carry floating rate of Interest
of 15.5 to 16% (in respect of loan of Rs.7.00 crores & of Rs.15.00
crores). Loan of Rs.7 crores is repayable in equaled monthly
instalment of Rs. 10,45,176/- and repayable by 1.11.2021. Similarly
loan of Rs.15 crore is payable in Equal monthly instalements of
Rs.16,50,461/- is repayable by 1st March 2021.
4. Intercorporate Deposits are repayable by September 2014 and carry
interest @ 12% p.a. on net basis.
5. Public Deposits:-
(5.1) Public deposits are repayable as under:
(a) Rs. 4,31,40,000 Payable by March 2013 and carry interest of
10-11.50%
(b) Rs .3,64,16,000 Payable by march 2014 & 2015 and carry interest of
10-11.5%
(5.2) Public deposits guaranteed by Directors Rs.1,26,58,000/-
(5.3) Public deposits matured but unclaimed amount to Rs 9.78 lacs
(Previous Year 5.38 lacs).
Note:-
1. No provision for Gratuity liability as on 31st March, 2012 amounting
to Rs.196.59 lacs (Previous year Rs. 220.57 lacs) calculated in
accordance with acturial valuation as per AS-15 (Revised), of which
(Rs.23.98 lacs) relates to current year (Previous year Rs.35.85 lacs)
has been made in these accounts.
Notes:-
1. Land purchased at Moradabad includes Land valued at Rs.85.09 lacs
(previous year Rs.85.09 lacs) for which agreement to purchase has been
entered and steps are being taken to register the land in the name of
the company. The company is in full control and possession of the land
and the same is used for the business purposes.
2. (i) Operations of Casein Plant (Patiala) remained suspended during
the year under Audit due to ban on export of casein, which has been
partially lifted with condition of obtaining licence from DGFT. Company
is in the process of making an application for obtaining licence. Total carrying amount of fixed assets including intangible assets is Rs. 3632
lacs (Previous Year Rs. 3787 Lacs) as at close of the year. Interest of
Rs. 75.41 lacs has been debited to Plant & Machinery Casein Plant. In pursuance of requirement of AS-28 Company is in the process of computing
the projections of cash flow and present value, considering the global
economic scenario. Management has utilized portion of Assets of Casein
plant for its dairy business considering the facts as stated.
Management is of view that there is no impairment of Assets within the
meaning of AS-28 and hence no provision as such is made during the
year.
(ii) Includes intangible assets of Rs. 59677 (thousands) written down
value of Rs. 41207 (thousand). In accordance with AS-26 - expenses
incurred on development/defining the manufacturing process of any
product to meet the required standards is recognized as Intangible
Asset and is amortized over a period of 10 years. The amount amortized
during the year is Rs.59.67 lacs (Previous Year Rs. 59.67 Lacs).
3. Assets at Gurgaon:
Plant and Machinery and furniture and fixtures held for disposal have
been depreciated at the rates prescribed under Schedule XIV of the
Companies Act. The aggregate written down value of such assets is
Rs.17.75 lacs (Previous year Rs. 21.09 lacs).
Note:-
1. Includes Rs. 47993 thousands capitalised during the year in respect
of expenses incurred in earlier years through erstwhile subsidiary
company. No depreciation has been charged during the year under audit.
Notes:-
1. In the earlier years company had invested Rs. 425 lacs in the
preference share capital of M/s Grand Regency Hospitalities (P) Ltd.
The investee company had stopped the business due to termination of
lease of premises. More than 50% of net worth of investee company is
eroded due to losses. However Company is of the view that there is no
need for creating any provision for dimunition in the value of
investments considering the estimated fair value of the Brand of
investee company.
2. Pledged with Government Authorities towards fulfilment of statutory
obligations.
Notes:-
1. Refer Note 19(4).
2. Is receivable in three financial years i.e by 2014-15
3. Refer Note No. 19(2).
4. Refer Note No. 19(3).
Note:-
1. (a) Stocks on consignment of Rs.24.83 lacs (Rs.200 lacs ) remains
unconfirmed at the year end.
(b) Closing stocks includes stock of Whey Powder (By-product) of Rs.
68.87 lacs (previous year Rs. 425 lacs). Net realizable value of
Rs.100/- per kg is estimated by the Management on the basis of net
realizable value of the final product.
Notes:-
1. Loans & Advances include Rs. 2.00 crores paid by the company to the
respondents on the directions of Hon'ble Supreme Court for admitting
the Special Leave Petition against the order of high Court of Patna
confirming the payment of Rs. 3,28,35,000/-. As the matter is subjudice
no amount has been charged to Statement of Profit & Loss .
2. Loans and advances includes Rs. 59.27 lacs deposited in earlier
years against the demand raised by the Punjab State Electricity Board.
Identical matter in third party case is pending before the Supreme
Court hearing of which is fixed in the last week of October, 2012.
Company is reasonably hopeful that the matter will be decided against
PSEB and Company will be entitled to refund from PSEB. Therefore amount
is retained as recoverable till the matter is finally decided by the
Supreme Court. Keeping in view the facts as stated the amount is
expected to be realized with in 12 months.
3. Balance with sales tax authorites is considered to be realizable
within a period of 12 months as it is pending appeals will be decided
in favour of company with in 12 months of reporting date.
4. Under United Nation Framework Convention on Climate Change (UNFCCC)
Company's project for 1.60MW Bundled Rice Husk Based co-generation
plant at factory premises Patiala & Moradabad has been approved by the
Host Country. As per certificate of consultant 69683 VCS Per Year have
been approved and same have been registered with VCS Registry NYSE
BLUE. Similarly the CDM project of company has been registered w.e.f
14.02.2012 with UNFCCC after due validation process Carbon reduction
(CER's) are 69692 per annum and applicable till 23.02.2022. Further
consultant has certified that on conservative basis company must
realise a minimum of Rs. 818 lacs by sale of carbon credits that
company has earned for two calender years 2009-10 and for a period up
to 31.05.2011.
1. A sum of Rs.4.00 lacs has been charged to Statement of Profit and
Loss on account of reduction in estimated realizable value in respect
of general stores of Rs.32.79 lacs (previous year Rs.36.79 lacs)
Mar 31, 2011
1. Contingent liabilities:
Claims not acknowledged as debts Rs.766.56 Lacs net of tax u/s 115 JB
Rs.613.98 Lacs. (Previous year Rs.755.93 Lacs net of tax Rs.627.46
lacs).
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (Net of Advances) Rs.58.87 Lacs (Previous
year Rs. 1.51 Lacs)
3. Equity shares capital include 30,10,225 Equity Shares (Previous
year 30,10,225) allotted by way of Bonus Shares by capitalisation of
General Reserve/Share Premium Account.
4 (i) Cash Credit, Term Loan and other term loans sanctioned by State
Bank of Patiala/Canara Bank are secured by first and exclusive charge
on all present and future current assets and fixed assets including
Plant & Machinery/immovable properties situated at Bahadurgarh &
Moradabad together with all Buildings and structures thereon, equitable
mortgage of land & building at Gurgaon in the name of Ispace Developers
Pvt Ltd and exclusive charge on company's Brand 'milkfood'. The State
Bank of Patiala has also extended supply line of credit to the extent
of Rs.8 Crores against which company has created a charge on its
immovable assets.
(ii) Vehicles Loans are secured against hypothecation of vehicles.
(iii) Term Loans payable within one year are Rs.1169.15 Lacs (Previous
Year 859.00 Lacs).
5. Schedule 3 Unsecured Loans include deposits of Rs.5.38 Lacs
(Previous year - Rs.3.13 Lacs) matured but not claimed. Deposits for
Rs.3.68 Lacs have since been renewed/repaid.
6a. Schedule 9 - Loans and advances includes amount due from Directors
of the Company as at 31st March, 2011 Rs.0.22 Lacs (Previous Year
Rs.0.24 lacs). Maximum amount due at any time during the year Rs.3.68
lacs (Previous year Rs.4.07 lacs).
6b. Schedule - 10 Current Liabilities includes Rs.0.06 lacs due to
directors of the Company (Previous Year Rs.0.11 lacs). Maximum amount
due during the year Rs.0.11 lacs.
7. No provision for gratuity liability as on 31st March, 2011
amounting to Rs.220.57 Lacs (Previous year Rs. 184.72 Lacs) calculated
in accordance with actuarial valuation as per AS-15 (Revised), of which
Rs.35.85 Lacs relates to current year (Previous year Rs.NIL Lacs) has
been made in these accounts.
8. Schedule 9 - Loans and advances include Rs.498 Lacs recognized in
current year (For Previous Year Rs.320 Lacs) pending registration and
sale of carbon credits, is based on UNFCCC validator's report.
9. There is no amount due to any party under Micro, Small and Medium
Enterprises Development Act, 2007.
10. Land at Moradabad of Rs.85.09 Lacs (previous year Rs.85.09 Lacs)
purchased through an Associate Company, for which steps have been taken
to register the same in the name of the company. The company is in full
control and possession of the land and the same is used for the
business purposes.
11. Assets at Gurgaon:
(a) Plant and Machinery and furniture and fixtures held for disposal
have been depreciated at the rates prescribed under Schedule XIV of the
Companies Act. The aggregate written down value of such assets is
Rs.21.09 Lacs (Previous year Rs.26.44 Lacs).
(b) A sum of Rs.4.00 Lacs has been charged to Profit and Loss Account
on account of reduction in estimated realizable value in respect of
general stores of Rs.36.79 Lacs (previous year Rs.40.79 Lacs).
12. The Company had invested Rs.425 lacs in the preference share
capital of M/s Grand Regency Hospitality Private Ltd. The investee
company has stopped the business as the lease of the premises occupied
by it could not be renewed. The investee company is finalizing new
lease and other options to carry on the business. Considering the
estimated fair value of the brand of the investee company and other net
realizable value of the assets, the company is of the view that no
provision is required in this year as the diminution in the value of
investment due to suspension of business by the investee company is
temporary in nature.
13. (i) Stocks on consignment of Rs.2 Crores is pending comfirmation
at the year end.
(ii) Miscellaneous receipts includes Rs.66.08 Lakhs representing
differential amount on account of revision of rates of export sales.
14. In conformity with Accounting Standard AS-28 issued by the ICAI,
the total carrying amount of assets including intangible assets is Rs.
3787 Lacs. In pursuance of projections made for the financial year
2010-11. Company has registered sale of casein (including Whey Powder
of Rs.1223 Lacs) against projected sales of Rs.3948 Lacs. At present,
export of Casein is banned. However, Management is hopeful that the ban
will be lifted in the near future. Considering the entire current and
likely economic scenario (Global & domestic) Company has revised
projections and has estimated the present value at Rs.4241.00 Lacs.
Projections of 10 years includes sale of Whey Powder in domestic
market. While making the projections, Management has duly considered
the factors in the past and consciously has made the projection on most
conservative basis. Therefore in the opinion of Management there is no
impairment of assets within the meaning of AS-28.
15. Loans & Advances include Rs.8.75 Lacs recoverable on account of
Sales Tax of earlier years which are outstanding from earlier years:
16. During the year M/S Ispace Developers Pvt. Ltd. has ceased to be
the subsidiary of the company. M/S MFL Trading Private Limited has
become the wholly owned subsidiary of the company.
17. Related Party Disclosures
In accordance with the requirements of Accounting Standard 18 on the
Related Party Disclosures, the transactions and Related Parties with
whom transactions have taken place during the year are as follows:
(A) Related parties and transactions with them as identified by the
management are given below:
List of related parties with whom transactions have taken place.
(a) Enterprises over which Major shareholders, Key Management Personnel
and their relatives have significant influence -
- Jagatjit Industries Ltd. (Associate Concern)
- Ispace Developers Pvt. Ltd. (Wholly owned subsidiary)
(b) Key Management Personnel (Directors) and their relatives
(a) Mr. Umesh Saxena (Managing Director)
(b) Ms. Asha Gadi
(c) Mr. Suresh Alipuria
(d) Mr. Amarjeet Kapoor
(e) Mr. K.K. Kohli
(f) Mr. Nitin Saxena (son of Mr. Umesh N. Saxena)
(g) Mr. Udit Saxena (son of Mr. Umesh N. Saxena)
22. Capacities, production, sales, opening and closing stocks
*A As per Notification No.477 (E) dated 25-07-91 issued under the
Industries (Development and Regulation) Act, 1951.
*B Installed capacity, being a technical matter, is as certified by
Management on which Auditors have relied upon.
*C This comprises Weaning Food, Milk Powder, Infant Milkfood, Condensed
Milk and Cheese.
*D The products are manufactured in integrated plant; hence, installed
capacity cannot be given.
*E Captive consumption is not included.
18. Previous Years figures have been recast /regrouped where ever
necessary in order to conform to the current years' presentation.
Mar 31, 2010
1. Contingent liabilities:
Claims not acknowledged as debts Rs. 755.93 lacs net of tax Rs. 670.28
lacs (Previous year Rs. 736.68 lacs net of tax Rs. 653.21 lacs).
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (Net of Advances) Rs. 1.51 lacs (Previous
year Rs. 39.52 lacs)
3. Equity shares capital include 30,10,225 Equity Shares (Previous
year 30,10,225) allotted by way of Bonus Shares by capitalisation of
General Reserve/Share Premium Account.
4 (i) Cash Credit, Term Loan and other term loans sanctioned by State
Bank of Patiala is secured by first and exclusive charge on all present
and future current assets and fixed assets including Plant &
Machinery/immovable properties situated at Bahadurgarh & Moradabad
together with all Buildings and structures thereon, equitable mortgage
of land & building at Gurgaon in the name of Ispace Developers Pvt Ltd
and exclusive charge on companys Brand milkfood. The Bank has also
extended supply line of credit to the extent of Rs. 8 crores against
which company has created a charge on its immovable assets.
(ii) Vehicles Loans are secured against hypothecation of vehicles.
(iii) Term Loans payable within one year are Rs. 859 lacs (Previous
Year 1016.27 lacs).
5. Unsecured Loans (Schedule 3) include deposits of Rs. 3.13 lacs
(Previous year - Rs. 0.70 lacs) matured but not claimed. Deposits for
Rs. 2.23 lac have since been renewed.
6. Loans and advances (Schedule 9) includes amount due from Directors
of the Company as at 31st March, 2010 Rs. 0.24 lacs (Previous Year Rs.
1.39 lacs). Maximum amount due at any time during the year Rs. 4.07
lacs (Previous year Rs. 3.95 lacs). Current Liabilities (Schedule 10)
includes Rs. 0.11 lacs due to directors of the Company (Previous Year
Rs. 1.20 lacs). Maximum amount due during the year Rs. 0.11 lacs.
7. Loans and Advances/sales include Rs. 3.20 crores towards sale of
Carbon credits under clean development mechanism (CDM) of Kyoto
Protocol pending final registration with UNFCCC and actual sales in the
International market.
8. No provision for gratuity liability as on 31st March, 2010
amounting to Rs. 184.72 lacs (Previous year Rs. 213.67 lacs) calculated
in accordance with actuarial valuation as per AS-15 (Revised), of which
Rs. NIL relates to current year (Previous year Rs. 46.03 lacs) has been
made in these accounts. Above calculations are based upon the limit of
Gratuity of Rs. 3.5 lakhs instead of revised limit of Rs. 10.00 lakhs
per employee under the payment of Gratuity Act, 1972.
9. As per information available with the company there is no amount
due to any party under Micro, Small and Medium Enterprises Development
Act, 2007.
10. Land purchased at Moradabad includes Land valued at Rs. 85.09 lacs
(previous year Rs. 85.09 lacs) for which agreement to purchase has been
entered and steps are being taken to register the land in the name of
the company.
11. Assets at Gurgaon:
(a) Plant and Machinery and furniture and fixtures held for disposal
have been depreciated at the rates prescribed under Schedule XIV of the
Companies Act. The aggregate written down value of such assets is Rs.
26.44 lacs (Previous year Rs. 31.78 lacs).
(b) A sum of Rs. 4.00 lacs has been charged to Profit and Loss Account
on account of reduction in estimated realizable value in respect of
general stores of Rs. 40.79 lacs (previous year Rs. 44.79 lacs).
12. The Company had invested Rs. 425 lacs in the preference share
capital of M/s Grand Regency Hospitality Pvt Ltd. The investee company
has stopped the business as the lease of the premises occupied by it
could not be renewed. The investee company is finalizing new lease and
other options to carry on the business. Considering the estimated fair
value of the brand of the investee company and other net realizable
value of the assets, the company is of the view that no provision is
required in this year as the dimunition in the value of investment due
to suspension of business by the investee company is temporary in
nature.
13. (i) Stocks on consignment of Rs. 1.08 crores remains unconfirmed
at the year end.
(ii) Miscellaneous receipts includes Rs. 17.70 lacs representing
differential amount on account of revision of rates of sales.
14. In conformity with Accounting Standard AS-28 issued by the ICAI,
the total carrying amount of assets including intangible assets is Rs.
4027 lacs of Casein Plant. The Company in the year 2008-09 had
projected the future cash inflow of 4 years from the said plant and
calculated the present value @12% of Rs. 5646 lacs. Company has made
sales of Rs. 6.77 crores during the financial year 2009-10 against the
projected sales of Rs. 35.17 crores. Company has reprojected the future
cash flow of 10 years based upon the current and likely economic
scenario and has recalculated the present value @ 12% of Rs. 4844 lacs
against the carrying amount of Rs. 4027 lacs. Therefore in the opinion
of Management there is no impairement of assets within the meaning of
AS-28.
15. Current Liabilities includes Rs. 9.00 crores received from a
Company as interest free deposit for short term purposes.
16. Loans & Advances include Rs. 8.75 lacs recoverable on account of
Sales Tax of earlier years which are outstanding from earlier years: -
17. Deferred Tax
As per Accounting Standard (AS-22), "Accounting for Taxes on Income"
issued by the ICAI, Deferred Tax Asset (Net) for the year has been
accounted for at Rs. 121.42 lacs as income (Previous Year Rs. 223.91
Lacs as income) in the Profit & Loss Account.
Deferred Tax Liability (Net) as at 31st March 2010 is net of deferred
tax asset in respect of unabsorbed depreciation of Rs. 2620.47 lacs
(Previous Year Rs. 1844.01 lacs). Deferred Tax Asset has been
recognized in cases where the company has been allowed relief in first
appeal in respect of addition/disallowances made in assessment
proceedings of Income Tax.
18. Related Party Disclosures
In accordance with the requirements of Accounting Standard 18 on the
Related Party Disclosures, the transactions and Related Parties with
whom transactions have taken place during the year are as follows:
(A) Related parties and transactions with them as identified by the
management are given below:
List of related parties with whom transactions have taken place.
(a) Enterprises over which Major shareholders, Key Management Personnel
and their relatives have significant influence-
- Jagatjit Industries Ltd. (Associate Concern)
- Ispace Developers Pvt. Ltd. (Wholly owned subsidiary)
(b) Key Management Personnel (Directors) and their relatives Dr. Umesh
N. Saxena
Ms. Asha Gadi
Mr. Suresh Alipuria
Mr. Amarjeet Kapoor
Mr. K.K. Kohli
Mr. Nitin Saxena (son of Dr. Umesh N. Saxena)
Mr. Udit Saxena (son of Dr. Umesh N. Saxena)
26. Previous Years figures have been recast /regrouped where ever
necessary in order to conform to the current years presentation.
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