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

Notes to Accounts of Nilkamal Ltd.

Mar 31, 2016

1 Share capital

(a) Rights, preferences and restrictions attached to Equity Shares: The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2 Borrowings:

(A) Secured loans:

(a) Working Capital loans :

Working capital facilities of Rs. 7,444.72 lacs (Previous Year Rs. 12,523.90 lacs) from banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immovable property and personal guarantee of Director/s. Working Capital Loans are repayable on Demand having Interest Rate from 9.30% p.a to 10.50% p.a (Previous Year 9.95% p.a to 12.50% p.a)

(b) Term Loans:

Term loans of Rs. 3,055.64 lacs (Previous Year Rs. 8,178.90 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immovable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir), Hosur (Tamil Nadu) together with all building and structures thereon and all Plant and Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director had been provided for the Term loans, except for a foreign currency loan of Rs. 3,055.64 lacs (Previous Year Rs. 5,625.45 lacs).

(c) Terms of Repayment

(i) Rupee Term loans

Rupee Term Loans were repayable in equal quarterly Installments, last installments due for various draw downs from October 2015 to March 2016 as per repayment schedules, having Interest rate from 11.60% p.a to 12.25% p.a (Previous Year 11.50% p.a to 14.00% p.a) which are reset periodically.

(ii) Foreign Currency loans

Foreign Currency loans are repayable in equal quarterly/half yearly installments, last installments due on March, 2018 as per repayment schedules, having interest rate from 3 month LIBOR 1.50% p.a to 2.50% p.a which are reset periodically.

(B) Commercial Paper balance outstanding at year end Rs. Nil (Previous Year Rs. Nil). Maximum balance outstanding during the year Rs. 5,000 Lacs (Previous Year Rs. 3,000 Lacs).

3 Cross Currency Interest Rate Swap:

The Company has adopted the principles of hedge accounting as set out in Accounting Standard (AS 30) on ''Financial Instruments: Recognition and Measurement'', in respect of Cross Currency Interest Rate Swap (CCIRS) to hedge its foreign currency risk and interest rate risk, which are not covered by the requirements of Accounting Standard (AS 11) ''The Effects of Changes in Foreign Exchange Rates''. Accordingly Rs. 13.18 Lacs (Previous Year Rs. 20.05 Lacs) being difference arising on fair valuation of outstanding derivatives as on 31st March, 2016 is disclosed in Cash Flow Hedge Reserve in the balance sheet.

4 Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

(5 Earnings in Foreign Currency :-

(i) FOB Value of exports Rs. 5,168.37 lacs (Previous year Rs. 5,145.12 lacs).

(ii) Technical and Management Fees from Subsidiaries Rs. 36.34 lacs (Previous Year Rs. 31.83 lacs).

(iii) Income earned from export of services Rs. 44.07 lacs (Previous Year Rs. 49.04 lacs).

(iv) Dividend Received from Subsidiaries Rs. 571.54 lacs (Previous Year Rs. 177.25 lacs).

(v) Lease Rent Received from Subsidiary Rs. 5.64 lacs (Previous Year Rs. 13.08 lacs).

(vi) Sale of Fixed Assets to Subsidiary Rs. 10.46 lacs (Previous Year Rs. 51.37 lacs)

6.(a) (i) Operating Lease in respect of Properties taken on Lease:

The Company has taken warehouses, showrooms, offices under operating leases. The agreements are executed for the period of 36 to 240 months with a non cancellable period upto 60 months. For certain properties taken on lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

7 In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

8 Corporate Social Responsibility

As required by As required by Section 135 of Companies Act, 2013 and rules therein, a Corporate social responsibility committee has been formed by the Company, The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013

(a) Gross amount required to be spent by the Company during the year 2015-16 Rs. 109.85 lacs (Previous year Rs. 115.22 lacs).

9. Previous year figures have been regrouped / reclassified wherever necessary.


Mar 31, 2015

1. Contingent Liabilities and commitments to the extent not provided for in respect of:

(a) Contingent liabilities :-

('' in lacs)

Particulars 31st March, 2015 31st March, 2014

i) Excise and Service Tax matters 190.88 341.44

ii) Sales Tax matters * 1,616.48 1,132.60

iii) Income Tax matters 4.16 3.39

iv) a) On account of surety given on behalf of Joint - 10.00 Venture for claiming exemption from the payment of Central Excise Duty for export of excisable goods to foreign country or to Special Economic Zone / Export Oriented Unit without payment of Central Excise Duty

b) On account of Cross Subsidy Surcharge on electricity 9.38 9.38

* Includes Rs. 972.61 lacs (Previous Year Rs. 972.61 lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963. The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise and Service Tax, Sales Tax and Income Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands by the authorities are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums/ authorities.

(b) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 292.33 lacs (Previous Year Rs. 207.64 lacs).

2. Share capital

(a) Rights, preferences and restrictions attached to Equity Shares: The Company has only one class of equity shares having a par value of 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Borrowings:

(A) Secured loans:

(a) Working Capital loans :

Working capital facilities of Rs. 12,523.90 lacs (Previous Year Rs. 17,599.17 lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immovable property and personal guarantee of Director/s. Working Capital Loans are repayable on Demand having Interest Rate from 9.95% to 12.50%.

(b) Term Loans:

Term loans of Rs. 8,178.90 lacs (Previous Year: Rs. 14,388.53 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immovable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) , Hosur (Tamil Nadu) together with all building and structures thereon and all Plant and Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 5,625.45 lacs (Previous Year Rs. 7,190.40 lacs).

(c) Terms of Repayment

(i) Rupee Term loan

Term Loans are repayable in equal quarterly Installments, last installments due for various draw downs from October 2015 to December 2018 as per repayment schedules, having Interest rate from 11.50% to 14.00% which are reset periodically

(ii) Foreign Currency loan

Foreign Currency loan is repayable in equal quarterly/half yearly installments, last installments due on March, 2018 as per repayment schedules, having interest rate from 3 /6 month LIBOR 1.50% to 2.50 % which are reset periodically.

(B) Commercial Paper balance outstanding at year end Rs. Nil (Previous Year Rs. Nil). Maximum balance outstanding during the year Rs. 3,000 Lacs (Previous Year Rs. 3,000 Lacs).

4. Cross Currency Interest Rate Swap:

The Company has adopted the principles of hedge accounting as set out in Accounting Standard (AS 30) on ''Financial Instruments: Recognition and Measurement'', in respect of Cross Currency Interest Rate Swap (CCIRS) to hedge its foreign currency risk and interest rate risk, which are not covered by the requirements of Accounting Standard (AS 11) ''The Effects of Changes in Foreign Exchange Rates''. Accordingly '' 20.05 Lacs being difference arising on fair valuation of outstanding derivatives as on 31 March, 2015 disclosed in Cash Flow Hedge Reserve in the balance sheet.

5. Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

6. Related Party Disclosures:

Names of related parties and description of relationship

I Foreign Subsidiaries where control exists

Nilkamal Eswaran Plastics Pvt. Ltd.

Nilkamal Eswaran Marketing Pvt. Ltd.

Nilkamal Crates and Bins, FZE.

II Joint Venture

Nilkamal Bito Storage Systems Pvt. Ltd.

Cambro Nilkamal Pvt. Ltd.

III Key Management Personnel

Mr. Vamanrai V. Parekh, Chairman Mr. Sharad V. Parekh, Managing Director Mr. Hiten V. Parekh, Executive Director Mr. Manish V. Parekh, Executive Director Mr. Nayan S. Parekh, Executive Director

IV Relatives of Key Management Personnel

Mrs. Dhruvi Nakul Kumar Miss Priyanka H. Parekh

V Enterprise owned or significantly influenced by key Management Personnel or their relatives, where transactions have taken place Nilkamal Crates & Containers

M. Tech Industries

7. (a) (i) Operating Lease in respect of Property taken on Lease:

The Company has taken warehouses, showrooms, offices under operating leases. The agreements are executed for the period of 36 to 240 months with a non cancelable period upto 60 months. For certain properties taken on Lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

(b) Asset given on Operating Lease:

The Company has leased out some of its Material Handling equipments. The lease term is in the range of 36-60 months. There is no escalation or renewal clause in the lease agreements and sub-letting is not permitted. The carrying amounts of equipments given on operating leases and depreciation thereon for the period are:

8. Disclosure pursuant to Accounting Standard - 15 "Employee Benefits":

(a) The Company recognised Rs. 356.72 lacs (Previous Year Rs. 282.89 lacs) for provident fund contribution in the Statement of Profit and Loss.

(c) Compensated Absences:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation. Compensated Absences debited to Statement of Profit and Loss during the year amounts to Rs. 207.42 lacs (Previous Year Rs. 125.07 lacs) and is included in Note 23 - ''Employee benefits expenses''. Accumulated non-current provision for leave encashment aggregates Rs. 375.31 lacs (Previous Year Rs. 321.73 lacs) and current provision aggregates Rs. 248.15 lacs (Previous Year Rs. 219.90 lacs).

(b) Contingent Liability in respect of the Jointly Controlled Entities: (`Rs. in lacs)

Particulars 2014-15 2013-14

(a) Directly incurred by the Company - 10.00

(b) Share of the Company in contingent liabilities which have been incurred - -

jointly with other ventures 85.29 -

(c) ShareoftheCompany in contingent liabilities incurred by jointly controlled entity - - (to the extent ascertainable)

(d) Share of other ventures in contingent liabilities incurred by jointly controlled entity.

9. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

10. Previous year figures have been regrouped / reclassified wherever necessary.


Mar 31, 2014

1. Contingent Liabilities and commitments to the extent not provided for in respect of:

a) Contingent liabilities :-

(Rs. in lacs)

Particulars 31st March, 31st March, 2014 2013

(i) Excise and Service Tax matters 341.44 366.26

(ii) Sales Tax matters * 1,132.60 1,192.11

(iii) Income Tax matters 3.39 3.39

(iv) (a) On account of corporate guarantee given to the - 59.50

Department of Customs for availing custom duty benefits under Export Promotion Capital Goods Scheme on behalf of Joint venture for facilities availed by them (amount outstanding at close of the year)

(b) On account of surety given on behalf of Joint Venture for 10.00 10.00 claiming exemption from the payment of Central Excise

Duty for export of excisable goods to foreign country or to SEZ/EOU unit without payment of Central Excise Duty

(c) On account of Cross Subsidy Surcharge on electricity 9.38 9.38

* Includes Rs. 972.61 lacs (Previous Year 972.61 lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963. The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise, Service Tax, Sales Tax and Income Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands by the authorities are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums / authorities.

b) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.207.64 lacs (Previous Year Rs.504.52 lacs).

Provision is estimated for expected warranty claim in respect of products sold during the year based on past experience regarding defective claim of products and cost of rectifcation or replacement. It is expected that most of this cost will be incurred over next 12 months which is as per warranty terms.

2. Share capital

(a) Rights, preferences and restrictions attached to Equity Shares: The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Borrowings : (A) Secured loans :

(a) Working Capital loans :

Working capital facilities of Rs. 17,599.17 lacs (Previous year Rs. 24,254.51 lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immoveable property and personal guarantee of Director/s. Working capital loans repayable on demand having interest rate from 9.95% to 12.50%.

(b) Term Loans:

(i) Term loans of Rs. 14,388.53 lacs (previous year Rs. 15,085.91 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir), Hosur (Tamil nadu) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 5,392.80 lacs (Previous Year Rs. 4,887.66 lacs).

(ii) Vehicle loan of Rs. Nil (Previous Year Rs. 4.81 lacs) was secured against respective assets.

(c) Terms of Repayment

(i) Rupee Term loan

Term loans are repayable in equal quarterly installments, last installments due for various draw downs from December, 2014 to December, 2017 as per repayment schedules, having interest rate from 11.50% to 14.00% which are reset periodically.

(ii) Foreign Currency loan

Foreign Currency loan is repayable in equal quarterly/half yearly installments, last installments due on March, 2018 as per repayment schedules, having interest rate from 3 / 6 month LIBOR 1.50% to 2.50 % which are reset periodically.

(B) Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 3,000 lacs (Previous Year Rs. 5,000 lacs)

4. Cross Currency Interest Rate Swap:

The Company has transacted a cross currency interest rate swap (CCIRS) agreement with banks to hedge the principal and interest of the ECB Loan of USD 9.40 Million (Previous year USD 5.10 Million). The Company has designated this ECB loan and the CCIRS in a cash fow hedge accounting relationship. The change in the fair value of the CCIRS, to the extent considered effective, is taken to the ''Cash fow hedge reserve account'' under Reserves & Surplus under Note 2. Of this, during current year Rs. 322.22 Lacs has been debited to statement of profit and loss to offset the loss on restatement of this ECB (previous year, credit of Rs. 77.21 lacs). The net effect on restatement of ECB amounts to Rs. 245.01 lacs (previous year, credit of Rs. 45.59 lacs). The net balance amounting to Rs. 94.81 lacs (previous year Rs. 45.59 lacs) represents the balance effective portion of cash fow hedge. Had the Company not exercised such option, the net profit after tax for the year ended on 31st March, 2014 would have been higher by Rs.49.22 lacs (Previous Year Rs. 45.59 lacs ).

5. Dues to micro and small suppliers

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as Defined in the Micro, Small and Medium Enterprises Development Act, 2006.

6. The foreign exchange fuctuation on outstanding foreign currency loan has been accounted for as per Accounting Standard (AS 11) as amended wide Notifcation dated 29th December, 2011 with further clarifcation note dated 9th August, 2012 issued by the Ministry of Corporate Affairs Government of India. Consequently, an amount of Rs. 474.84 lacs (Previous year Rs. 327.06 lacs) is capitalised as cost of fixed assets. The Company has provided additional amount of depreciation of Rs. 197.01 lacs (Previous year Rs. 97.90 lacs) on such costs. Had the Company not exercised the said option, the net profit after tax for the year ended on 31st March, 2014 would have been lower by Rs.183.40 lacs (Previous year Rs. 154.81 lacs).

(g) Earnings in Foreign Currency :- (i) FOB Value of exports Rs. 4,443.36 lacs (Previous year Rs. 3,827.88 lacs).

(ii) Technical and Management Fees from Subsidiaries Rs. 28.96 lacs (Previous year Rs. 115.60 lacs). (iii) Income earned from export of services Rs. 81.07 lacs (Previous Year Rs. 37.93 lacs). (iv) Dividend Received from Subsidiaries Rs. 11.72 lacs (Previous Year Rs. 54.97 lacs). (v) Lease Rent Received from Subsidiary Rs. 6.76 lacs (Previous Year Rs. 5.37 lacs).

Names of related parties and description of relationship

(i) Foreign Subsidiaries where control exists

Nilkamal Eswaran Plastics Pvt. Ltd. Nilkamal Eswaran Marketing Pvt. Ltd. Nilkamal Crates & Bins, FZE.

(ii) Joint Venture

Nilkamal Bito Storage Systems Pvt. Ltd. Cambro Nilkamal Pvt. Limited.

(iii) Key Management Personnel

Shri Vamanrai V. Parekh, Chairman Shri Sharad V. Parekh, Managing Director Shri Hiten V. Parekh, Executive Director Shri Manish V. Parekh, Executive Director Shri Nayan S. Parekh, Executive Director

(iv) Enterprise owned or significantly influenced by key Management Personnel or their relatives, where transactions have taken place

Nilkamal Crates & Containers Mrs. Dhruvi Nakul Kumar Miss Priyanka H. Parekh

(c) Compensated Absances:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation. Compensated Absences debited to Statement of profit and Loss during the year amounts to Rs. 125.07 lacs (Previous Year Rs. 185.63 lacs) and is included in Note 23 - ''Employee benefits expenses''. Accumulated non-current provision for leave encashment aggregates Rs. 321.73 lacs (Previous Year Rs. 266.13 lacs) and current provision aggregates Rs. 219.90 lacs (Previous Year Rs. 245.49 lacs).

7. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

8. Previous year figures have been regrouped / recast wherever necessary.


Mar 31, 2013

1. Contingent Liabilities and commitments to the extent not provided for in respect of :

a) Contingent liabilities :- (Rs. in Lacs)

Particulars 31st March, 31st March, 2013 2012

i) Excise and Service Tax matters 366.26 339.09

ii) Sales Tax matters * 1,192.11 1,260.93

iii) Income Tax matters 3.39 -

iv) a) On account of corporate guarantee given to the Department of Customs for availing custom duty benefits under Export Promotion 59.50 59.50 Capital Goods Scheme on behalf of Joint venture for facilities availed by them (amount outstanding at close of the year)

b) On account of surety given on behalf of Joint Venture for claiming exemption from the payment of Central Excise Duty for export 10.00 10.00 of excisable goods to foreign country or to SEZ/EOU unit without '' Rs. payment of Central Excise Duty

c) On account of Cross Subsidy Surcharge on electricity 9.38 -

* Includes Rs. 972.61 Lacs (Previous Year Rs. 972.61 Lacs) paid in full against the disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963. The matter is pending for hearing in the Honorable Supreme Court of India.

Note: The Excise, Service Tax, Sales Tax and Income Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands by the authorities are not tenable. Future cash flows in respect of these are determinable only on receipt of judgements / decisions pending with various forums/ authorities.

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 504.52 Lacs (Previous Year Rs. 694.81 Lacs).

ii) Export commitment on EPCG license utilisation remaining to be executed Rs. Nil (Previous Year Rs. 375.20 Lacs )

2. Share Capital

a) Rights, preferences and restrictions attached to Equity Shares: The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Borrowings :

(A) SECURED LOANS :

a) Working capital facilities from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Company''s immoveable property and personal guarantee of Director/s.

b) Term loans of Rs. 11,174.07 lacs (Previous Year: Rs. 10,983.75 lacs) from the Banks are secured on first pari passu basis by way of Equitable mortgage created on Company''s immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry (UT), Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) , Hosur (Tamil nadu) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company. Also personal guarantee of a Director has been provided for the Term loans, except for a foreign currency loan of Rs. 4,887.66 lacs (Previous Year Rs. 1,272 lacs ).

c) Term loan of Rs. 4.81 lacs (Previous Year Rs. 13.31 lacs) is secured against respective assets.

d) Terms of Repayment Rupee Term Loan

Terms of Repayment of Rupee term loans having interest rate from 11.50% to 14.00%, which are reset periodically are given below:

i) Term loan amounting to Rs. Nil lacs (March 31, 2012: Rs. 249.94 lacs) repayable in equal quarterly installments, last installment due in December 2013.

ii) Term loan amounting to Rs. 208.31 lacs (March 31, 2012: Rs. 333.32 lacs) repayable in equal quarterly installments, last installment due in May 2015.

iii) Term loan amounting to Rs. 666.64 lacs (March 31, 2012: Rs. 1000.00 lacs) repayable in equal quarterly installments, last installment due in June 2016.

iv) Term loan amounting to Rs. 1,312.50 lacs (March 31, 2012: Rs. 2,062.50 lacs) repayable in equal quarterly installments, last installment due in January 2016.

v) Term loan amounting to Rs. 366.67 lacs (March 31, 2012: Rs. 400.00 lacs) repayable in equal quarterly installments, last installment due in December 2016.

vi) Term loan amounting to Rs. Nil (March 31, 2012: Rs.500.00 lacs) repayable in equal quarterly installments, last installment due in March 2014.

vii) Term loan amounting to Rs. 252.77 lacs (March 31, 2012: Rs. 585.00 lacs) repayable in equal quarterly installments, last installment due in December 2014.

viii) Term loan amounting to Rs. Nil (March 31, 2012: Rs. 344.00 lacs) repayable in equal quarterly installments, last installment due in March 2014.

ix) Term loan amounting to Rs. 574.00 lacs (March 31, 2012: Rs. 929.00 lacs) repayable in equal quarterly installments, last installment due in January 2016.

x) Term loan amounting to Rs. 400.00 lacs (March 31, 2012: Rs. 400.00 lacs) repayable in equal quarterly installments, last installment due in March 2017.

xi) Term loan amounting to Rs. 747.77 lacs (March 31, 2012: Rs. 999.99 lacs) repayable in equal quarterly installments, last installment due in July 2016.

xii) Term Loan amounting to Rs. 4.81 Lacs (March 31, 2012 Rs. 13.31 Lacs) repayable in equal monthly installments, last installment due in December 2014.

xiii) Term Loan amounting to Rs. 400.00 lacs (March 31, 2012 Rs. Nil) repayable in equal quarterly installments, last installment due in June 2017.

Foreign Currency Loan

Terms of Repayment of Foreign Currency loans having interest rate from 2.50% to 4.00% are given below:

i) Term loan amounting to Rs. 1,357.75 lacs (March 31, 2012: Rs.1,908.00 lacs) repayable in equal half yearly installments, last installment due in March 2016.

ii) Term loan amounting to Rs. 4,887.66 lacs (March 31, 2012: Rs. 1,272.00 lacs) repayable in equal quarterly installments, last installment due in March 2017.

(B) Terms of repayment for Long Term unsecured borrowings:

Term loan amounting to Rs. Nil (March 31, 2012: Rs.45.42 Lacs) repayable in equal quarterly installments, last installment due in November 2013. Rate of interest as at year end Nil p.a. (Previous year 10.69 % p.a.).

Installments falling due within twelve months from the year end have been classified as "Current maturities of long term debts" in Note 8.

(C) Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 5,000 Lacs (Previous Year Rs. 2,000 Lacs)

4. Cross Currency Interest Rate Swap:

The Company has transacted a cross currency interest rate swap (CCIRS) agreement with a bank to hedge the principal and interest of the ECB Loan of USD 5.10 Million (Previous year Nil). The Company has designated this ECB loan and the CCIRS in a cash flow hedge accounting relationship. The change in the fair value of the CCIRS, to the extent considered effective, is taken to the ''Cash flow hedge reserve account'' under Reserves & Surplus under Note 2. Of this, Rs. 77.21 Lacs (previous year Nil) has been transferred to statement of profit and loss to offset the profit on restatement of this ECB. The net balance amounting to Rs. 45.59 Lacs (previous year Nil) represents the balance effective portion of cash flow hedge. Had the Company not exercised such option, the net profit after tax for the year ended on 31st March, 2013 would have been higher by Rs.45.59 lacs (Previous Year Rs. Nil).

5. i) Principal outstanding of amount payable as on 31st March 2013, relating to Supplier registered as Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous Year Rs. Nil) interest due thereon is Rs. Nil (Previous Year Rs. Nil).

ii) Amount of interest paid along with the amount of payments made beyond the amount due is Rs. Nil (Previous Year Rs. Nil).

iii) Amount of interest due and payable where the principal is already due is Rs. Nil (Previous Year Rs. Nil).

iv) The amount of interest accrued and remaining unpaid at the end of each accounting year Rs. Nil (Previous Year Rs. Nil).

6. The foreign exchange fluctuation on outstanding foreign currency loan has been accounted for as per Accounting Standard (AS 11) as amended wide Notification dated 29th December, 2011 with further clarification note dated 9th August, 2012 issued by the Ministry of Corporate Affairs Government of India. Consequently, an amount of Rs.327.06 lacs (Previous year Rs. 208.68 lacs) is capitalized as cost of fixed assets. The Company has provided additional amount of depreciation of Rs.97.90 lacs (Previous year Rs. 28.27 lacs) on such costs. Had the Company not exercised the said option, the net profit after tax for the year ended on 31st March, 2013 would have been lower by Rs.154.81 lacs (Previous year Rs. 121.88 lacs).

7. ''Nilkamal'' brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

8. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

9. Previous year''s figures have been regrouped/recast wherever necessary.


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

(Rs.in Lacs)

31st March, 2011 31st March, 2010

i) Excise matters 10.94 10.94

ii) Sales Tax matters 1048.12 923.23

Includes Rs. 972.61 Lacs paid in full against the disputed Sales Tax liability (Previous Year contingent liability Rs. 844 Lacs, paid there against Rs. 600 Lacs) under the Kerala General Sales Tax Act, 1963 The matter is pending for hearing in the Honorable Supreme Court of India.

Note : The Excise and Sales Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands are not tenable.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 1,747.28 Lacs (Previous Year Rs.653.24 Lacs).

3. Remuneration to Directors comprise of (a) Salary, allowances, etc. Rs. 313.16 Lacs (Previous Year Rs. 315.51 Lacs) and (b) Other Perquisites Rs.1.58 Lacs (Previous year Rs.1.58 Lacs)

4. Sundry Expenses include net effect of changes in the foreign currency rates :

Loss / (Gain) on revenue items included in Profit and Loss account for the year Rs. 58.43 Lacs. (Previous Year Rs. (294.80) Lacs)

5(A) Secured Loans :

a) The Working Capital Facilities amounting to Rs. 17,897.98 Lacs. (Previous Year 17,514.14 Lacs.) and a Term Loan amounting to Rs. 375 Lacs (Previous Year Rs. 1,125 Lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Companys immoveable property and personal guarantees of Director/s.

b) Other Term Loans from Banks amounting to Rs. 7,968.39 Lacs (Previous Year Rs. 9,408.59 Lacs) are secured on first pari passu basis by way of Equitable mortgage created on Companys immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry, Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company and personal guarantee of a Director and Rs.2,344.37 lacs (Previous Year Rs.Nil) are secured on first pari passu basis by way of Equitable mortgage for which charge has since been created.

c) Vehicle Loans amounting to Rs. 10.10 Lacs (Previous Year Rs. 55.68 Lacs) are secured against respective assets.

(B) Unsecured Loans :

Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 5,000 Lacs (Previous Year Rs. 2,000 Lacs)

6. The Company has an investment of Rs. 2,215.50 Lacs in Nilkamal Bito Storage Systems Private Limited (NBSSPL), a Joint Venture Company. NBSSPL has incurred losses over the years, however, it has earned cash profit during the year. The Company has, at the close of the year, assessed the carrying value of investment in NBSSPL and no provision there against is considered necessary at present for diminution in the carrying value of the investment.

7. Sundry Debtors:

(a) Outstanding for more than six months includes Secured debts Rs. 0.51 Lacs (Previous Year Rs. 3.93 Lacs).

(b) Other Debts includes Secured debts Rs. 1,835.86 Lacs (Previous Year Rs. 1,544.97 Lacs).

(c) Includes Rs. 23.44 Lacs (Previous Year Rs. 78.77 Lacs), outstanding from Nilkamal Bito Storage Systems Pvt. Ltd., a joint venture company.

8. Advance recoverable in Cash or in Kind includes

i) Rs.10.84 Lacs (Previous Year Rs. 442.11 Lacs) being Interest Receivable on Loans and other Deposits.

ii) Rs.29.97 lacs (Previous Year Rs.Nil) being claims lodged with Insurance Company on account of three employee related frauds by way of embezzlement of funds during the year, estimated at Rs. 29.97 lacs (Previous Year Rs.Nil). Appropriate steps and Legal proceeding against the concerned employees have been taken.

9. Deposits include Security Deposit for premises, etc., of Rs. 720 Lacs (Previous Year Rs. 720 Lacs), Maximum balance during the year Rs. 720 Lacs (Previous Year Rs.720 Lacs) being amounts paid to a firm in which the Directors of the Company are interested and Rs. Nil (Previous Year Rs. 10 Lacs) to the Directors of the Company, Maximum balance during the year Rs. 10 Lacs (Previous Year Rs. 10 Lacs)

10. i) Principal outstanding of amount payable as on 31st March 2011, relating to Supplier registered as Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous Year Rs. Nil) interest due thereon is Rs. Nil (Previous Year Rs. Nil).

ii) Amount of interest paid along with the amount of payments made beyond the amount due is Rs. Nil (Previous Year Rs. Nil).

iii) Amount of interest due and payable where the principal is already due is Rs. Nil (Previous Year Rs. Nil).

iv) The amount of interest accrued and remaining unpaid at the end of each accounting year Rs. Nil (Previous Year Rs. Nil).

g) Earnings in Foreign Currency :-

i) FOB Value of exports Rs. 2,354.44 Lacs (Previous year Rs. 1,507.83 lacs).

ii) Technical and Management Fees Rs. 126.94 Lacs (Previous year Rs. 84.79 Lacs).

iii) Income earned from export of services Rs. 78.98 Lacs (Previous Year Rs. 96.79 Lacs).

iv) Dividend Received from a Subsidary Company Rs. 60.64 Lacs (Previous Year Rs. 86.87 Lacs).

Note:

Following individuals and entities taken together with persons and entities shown above under Related

Party Transactions disclosure will constitute to form a Group.

Mrs. Nalini V. Parekh, Mrs. Maya S. Parekh, Mrs. Smriti H. Parekh, Mrs. Manju M. Parekh, Mrs. Purvi N. Parekh, Mrs. Rajul M Gandhi, Mrs. Dhruvi Nakul Kumar, Miss Priyanka H. Parekh, Mr. Mihir H. Parekh, Master Eashan M. Parekh, Master Dhanay N. Parekh, Miss Dhaniti N. Parekh, Mr. Manoj K. Gandhi, Mr. Nakul Kumar, Vamanrai V. Parekh (HUF), Sharad V. Parekh (HUF), Hiten V. Parekh (HUF), Manish V. Parekh (HUF), Nayan S. Parekh (HUF), Parekh Plasto Industries Pvt. Ltd., Shrimant Holding Pvt. Ltd., Heirloom Finance Pvt. Ltd., Nilkamal Builders Pvt. Ltd.

Related Parties is as identified by the Management and relied upon by the auditors.

11. Nilkamal brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

12. Interest Expense in Schedule O represents Interest on Fixed Loans and Debentures Rs. 1,123.79 Lacs (Previous Year Rs. 1,416.42 Lacs); Discount on issue of Commercial Papers Rs. 172.54 Lacs (Previous Year Rs. 59.86 Lacs) and Other Interest Rs. 1,465.56 Lacs (Previous Year Rs. 1,228.18 Lacs)

The agreements are executed for the period of 36 to 240 months with a non cancelable period from 0 to 60 months having a Renewable Clause.

For certain properties taken on Lease, contingent rent payable as a percentage of revenue from the respective stores, subject to a minimum rent.

13. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

14. Previous years figures have been regrouped/rearranged wherever necessary.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

(Rs. in Lacs)

31st March, 2010 31st March, 2009

i) Excise matters 10.94 101.32

ii) Sales Tax matters * 923.23 132.58

iii) Corporate Guarantees given on behalf of Subsidiary Company, Bangladesh Taka (BDT) Nil. (Previous year (BDT) 888.99 Lacs), (amount outstanding at the close of the year) Refer Note 9(a) 646.80

* Includes Rs. 844 Lacs towards disputed Sales Tax liability under the Kerala General Sales Tax Act, 1963 against which the Company has received conditional stay from Honble Supreme Court of India.

Note : The Excise and Sales Tax demands are being contested by the Company at various levels. The Company has been legally advised that it has a good case and the demands are not tenable.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 653.24 Lacs (Previous Year Rs. 487.91 Lacs).

3. Remuneration to Directors comprise of (a) Salary, allowances, etc. Rs. 315.51 Lacs (Previous Year Rs. 155.82 Lacs) and (b) Other Perquisites Rs. 1.58 Lacs (Previous Year Rs.Nil).

4. Sundry Expenses include net effect of changes in the foreign currency rates:

Loss / (Gain) on revenue items included in Profit and Loss Account for the year Rs. (294.80) Lacs. (Previous Year Rs. 342.29 Lacs).

6. The Company, divested its entire stake in Starshine Land Developers Private Limited (a Subsidiary Company) (SLDPL) at cost, on 23rd July, 2009. In terms of the Share Purchase Agreement, loan given to SLDPL is to be repaid over a period of time. Advance recoverable in cash or in kind or for the value to be received in Schedule G, includes loan to SLDPL as at 31st March, 2010 Rs. 3,178.24 Lacs. ((Maximum balance of loan outstanding to SLDPL upto 23rd July, 2009 is Rs. 6,005.74 Lacs and Rs. 3,178.24 Lacs thereafter (Previous year Rs. 5,705.46 Lacs).

7. (A) Secured Loans :

a) The Working Capital Facilities amounting to Rs. 17,284.12 Lacs. (Previous Year Rs. 11,601.75 Lacs.) and a Term Loan amounting to Rs. 1,125 Lacs (Previous Year Rs. 1,500 Lacs) from Banks are secured on first pari passu basis by way of hypothecation of current assets of the Company, second pari passu charge by way of equitable mortgage on the Companys immoveable property and personal guarantees of Director/s.

b) Other Term Loans from Banks amounting to Rs. 9,408.59 Lacs (Previous Year Rs. 12,321.80 Lacs) are secured on first pari passu basis by way of Equitable mortgage created on Companys immoveable properties situated at Sinnar (Maharashtra), Barjora (West Bengal), Noida (Uttar Pradesh), Vasona (UT of D & NH), Puducherry, Kharadpada (UT of D & NH), Jammu (Jammu & Kashmir) together with all building and structures thereon and all Plant & Machinery, second pari passu charge by way of hypothecation of current assets of the Company and personal guarantees of Director/s.

c) Vehicle Loans amounting to Rs. 55.68 Lacs (Previous Year Rs. 96.91 Lacs) are secured against respective assets.

(B) Unsecured Loans:

Maximum balance outstanding during the year by way of issue of Commercial Papers Rs. 2,000 Lacs (Previous Year Rs. 2,000 Lacs).

8. Capital Work in Progress includes advances for Capital Expenditure Rs. 565.21 Lacs (Previous Year Rs. 223.33 Lacs).

9. a) The Company, during the year, sold its entire stake in Nilkamal Padma Plastics Private Limited (Bangladesh) (NPPPL) for an aggregate consideration of BDT 1. The carrying value of investments in NPPPL amounting to Rs. 438 Lacs has been charged to Profit and Loss Account during the Current Year. Further, a sum of Rs. 143.00 Lacs (included in Sundry Expenses in Schedule N) has been incurred to release the Corporate Guarantee given by the Company to the lenders of NPPPL, which has since been discharged after the close of the year.

b) The Company has an investment of Rs. 2,215.50 Lacs (including Rs. 390 Lacs made during the year) in Nilkamal Bito Storage Systems Private Limited (NBSSPL), a Joint Venture Company. NBSSPL has incurred losses over the years. Considering the efforts taken by the Management of NBSSPL to improve its performance, the Company has at the close of the year assessed the carrying value of investment in NBSSPL and no provision thereagainst is considered necessary at present for diminution in the carrying value of the investment.

10. Sundry Debtors :

a) Outstanding for more than six months includes Secured debts Rs. 3.93 Lacs (Previous Year Rs. 29.34 Lacs).

b) Other Debts includes Secured debts Rs. 1,544.97 Lacs (Previous Year Rs. 1,298.24 Lacs).

c) Includes Rs. 78.77 Lacs (Previous Year Rs. 51.24 Lacs), outstanding from Nilkamal Bito Storage Systems Pvt. Ltd., a Joint Venture Company.

11. Advance recoverable in Cash or in Kind includes Rs. 442.11 Lacs (Previous Year Rs. 336.91 Lacs) being Interest Receivable on Loans and other Deposits.

12. Deposits include Security Deposit for premises, etc., of Rs. 720.00 Lacs (Previous Year Rs. 645.25 Lacs), Maximum balance during the year Rs. 720 Lacs (Previous Year Rs. 645.25 Lacs) being amounts paid to a firm in which the Directors of the Company are interested and Rs. 10.00 Lacs (Previous Year Rs. 10.00 Lacs) to the Directors of the Company, Maximum balance during the year Rs. 10.00 Lacs (Previous Year Rs. 10.00 Lacs).

13. i) Principal outstanding of amount payable as on 31st March, 2010, relating to supplier registered as Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nif. Interest due thereon is Rs. Nil.

ii) Amount of interest paid along with the amount of payments made beyond the amount due is Rs. Nil.

iii) Amount of interest due and payable where the principal is already due is Rs. Nil.

iv) The amount of interest accrued and remaining unpaid at the end of each accounting year Rs. Nil.

g) Earnings in Foreign Currency :-

i) FOB Value of exports Rs. 1,507.83 Lacs (Previous year Rs. 1,502.92 Lacs).

ii) Technical and Management Fees Rs. 84.79 Lacs (Previous year Rs. 76.30 Lacs).

iii) Income earned from export of services Rs. 96.79 Lacs (Previous Year Rs. 34.95 Lacs).

iv) Dividend Received from a Subsidary Company Rs. 86.87 Lacs (Previous Year Rs. 12.71 Lacs).

Names of related parties and description of relationship

i Subsidiaries

a) Foreign

Nilkamal Eswaran Plastics Pvt Ltd.

Nilkamal Eswaran Marketing Pvt.Ltd.

Nilkamal Padma Plastics Pvt. Ltd. (ceased to be a Subsidiary w.e.f 1st January, 2010)

Nilkamal Crates & Bins, FZE.

b) Indian

Starshine Land Developers Pvt. Ltd. (ceased to be a Subsidiary w.e.f. 23rd July, 2009)

ii Joint Venture

Nilkamal Bito Storage Systems Pvt Ltd.

iii Key Management Personnel

Shri Vamanrai V. Parekh Shri Sharad V. Parekh Shri Hiten V. Parekh Shri Manish V. Parekh Shri Nayan S. Parekh

iv Enterprise owned or significantly influenced by key Management personnel or their relatives, where transactions have taken place Nilkamal Crates & Containers Starshine Land Developers Pvt. Ltd. (w.e.f. 23rd July, 2009)

Note:

Following individuals and entities taken together with persons and entities shown above under Related Party Transactions disclosure will constitute to form a Group.

Mrs. Nalini V. Parekh, Mrs. Maya S. Parekh, Mrs. Smriti H. Parekh, Mrs. Manju M. Parekh, Mrs. Purvi N. Parekh, Mrs. Rajul M. Gandhi, Mrs. Dhruvi Nakul Kumar, Miss Priyanka H. Parekh, Master Mihir H. Parekh, Master Eashan M. Parekh, Master Dhanay N. Parekh, Miss Dhaniti N. Parekh, Mr. Manoj K. Gandhi, Vamanrai V Parekh (HUF), Sharad V. Parekh (HUF), Hiten V. Parekh (HUF), Manish V Parekh (HUF), Nayan S. Parekh (HUF), Parekh Plasto Industries Pvt. Ltd., Shrimant Holding Pvt. Ltd., Heirloom Finance Pvt. Ltd, Nilkamal Builders Pvt. Ltd.

Related Parties is as identified by the Management and relied upon by the auditors.

14. Nilkamal brand used by Nilkamal Limited, is owned by Nilkamal Crates & Containers against interest free deposit of Rs. 370 Lacs.

15. Interest Expense in Schedule O represents Interest on Fixed Loans and Debentures Rs. 1,416.42 Lacs (Previous Year Rs. 1,347.41 Lacs); Discount on issue of Commercial Papers Rs. 59.86 Lacs (Previous Year Rs. 54.97 Lacs) and Other Interest Rs. 1,228.18 Lacs (Previous Year Rs. 2,783.12 Lacs).

16. In accordance with Accounting Standard 17 "Segment Reporting", segment information has been given in the Consolidated Financial Statement of Nilkamal Limited and therefore no separate disclosure on segment information is given in these financial statements.

17. Previous years figures have been regrouped / rearranged wherever necessary.

 
Subscribe now to get personal finance updates in your inbox!