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Notes to Accounts of Sanco Trans Ltd.

Mar 31, 2015

1. (i) Loan for acquisition of capital assets under deferred payment scheme is secured byhypothecation of related capital assets and guaranteed by Deputy Managing Director;

(ii) Loan Sanctioned for Rs.1,383 lakhs from a Bank for acquisition of immovable property(Note 1.3(a)(ii) and Note 1.7(a)) is secured by the immovable property (comprising Land and Building situated at Chennai) and is guaranteed by three Directors

(iii) Loan Sanctioned for Rs. 900 Lakhs(March 31, 2014 Rs. 810 Lakhs) (Note 1.3 (a) (i) and Note 1.7(a)) for construction of warehouse is secured by commercial property belonging to an enterprise which has a significant influence on the Company and is further secured by personal guarantee of three Directors and

(iv) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

2. Balance with banks in deposit accounts in Note 1.12(a) to the Balance Sheet includes Rs.445.30 lakhs (March 31, 2014 Rs. 389.90 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

3. Capital expenditure commitments (net of advances) Rs.7.00 lakhs (March 31, 2014 Rs. 137.04 lakhs)

4. Contingent liabilities - Claims against the Company not acknowledged as debts:

* Taxes Rs. 348.15 lakhs (2013-14 Rs. 301.46 lakhs).

* Bank guarantee Rs. 541.81 lakhs (2013-14 Rs 589.96 lakhs).

* Others Rs. 32.22 lakhs (2013-14 Rs.13.00 lakhs).

Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

5. Directors' remuneration - Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs.95.40 lakhs (2013-14 Rs. 94.60 lakhs), Allowances Rs.15.30 lakhs (2013-14 Rs. 15.10 lakhs), Contribution to Provident fund Rs. 11.45 lakhs (2013-14 Rs. 11.35 lakhs), Perquisites Rs.0.44 lakhs(2013-14 Rs. 1.81 lakhs). Total Rs.122.59 lakhs (2013-14 Rs. 122.24 lakhs).

6. (a) Warehouse earnings in Note 2.1 is net of incentives/ rebates/ trade discounts of Rs.913.55 lakhs (2013-14 Rs 1041.46 lakhs)

(b) Tax deducted at source on (i) Revenue from operations Rs. 115.27 lakhs (2013-14 Rs 189.85 lakhs); (ii) Interest income Rs. 4.68 lakhs (2013-14 Rs 4.05 lakhs).

7. (i) Depreciation for the year computed on revalued assets includes a charge of Rs 8.70 lakhs (2013-14 Rs 8.70 lakhs) being the excess over the depreciation computed under the method followed by the Company prior to revaluation. The same has been transferred from Revaluation reserve,

(a) To the General Reserve for the current year in terms of the Application on Guide on the provisions of schedule II to the Companies Act, 2013 issued by the Institute of Chartered Accountants of India,

(b) To the Statement of Profit and Loss for the earlier year.

This change in the current year has the effect of a higher charge of depreciation of Rs. 8.70 lakhs and consequent lower profit for the year by the said amount.

8. The Company has during the year changed its accounting policy to charge depreciation, in respect of assets sold/ disposed during the year, upto the date of such sale/ disposal. This change in accounting policy is in consonance with Note 2 to Schedule II to the Companies Act, 2013. There is no effect on the profit of the year due to the said change.

9. The Company has during the year adopted the useful life prescribed in Schedule II to the Companies Act, 2013 with regard to charging / amortising depreciation on its Fixed assets. In terms of Note 7 to the said Schedule, the carrying amount of the fixed assets as at April 1, 2014:

(a) is depreciated over the remaining useful life of the asset as per Schedule II and

(b) where the remaining useful life of an asset is Nil, is recognized in the opening balance of retained earnings as at April 1,2014.The amount so recognized aggregates to Rs. 17.36 lakhs.

The effect of change in useful life as above on the profit for the year, is a higher charge of depreciation of Rs. 52.40 lakhs and consequent lower profit for the year by the said amount.

10. Foreign exchange and foreign currency transactions and derivatives -

(i) Imports - Rs. Nil (2013-14 Rs Nil);

(ii) Other expenditure in foreign currency Rs.15.06 lakhs(2013-14 Rs. 28.12 lakhs);

(iii) Other earnings in foreign exchange Rs.15.24 lakhs (2013-14 Rs. 29.11 lakhs);

(iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instruments are as under:

Amount receivable on account of services rendered, advances, etc. US $ 10,780.56 equivalent Rs.6.71 lakhs (March 31, 2014 US $ 2627 equivalent Rs 1.60 lakhs); Amount payable on account of services obtained US $ 4,263 equivalent Rs.2.69 lakhs (March 31,2014 US $ 5435.71 equivalent Rs. 3.36 lakhs).

11. Computation of earnings per share: (i) Profit for the year after tax Rs. 235.67 lakhs(2013-14 Rs. 416.27 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2014 - 18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i)-(ii) Rs. 13.09 (2013-14-Rs. 23.13)

12. Deferred tax - liabilities comprises tax effect of (i) timing differences relating to depreciation Rs.274.11 lakhs (March 31,2014 Rs. 357.50 lakhs); (ii) others Rs.1.94 lakhs (March 31,2014 Rs. 2.63 lakhs).

13. (i) The Company has complied with the revised Accounting Standard 15-Employee benefits. Accordingly provision of Rs.6.79 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2015 (2013-14 Rs. 30.14 lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31, 2015. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31, 2014 - 8%); (b)Salary escalation rate 8% (March 31, 2014 - 8%); (c) Mortality rate as per LIC (1994-96) Mortality Table: (d) Attrition rate 1 - 3% (March 31, 2014 1 - 3%); Method of valuation, Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b) - Contribution to provident fund Rs.53.35 lakhs,(2013-14 Rs 50.24 lakhs), Contribution towards gratuity Rs.6.79 lakhs (2013-14 Rs 30.14 lakhs), Employees' welfare expenses include contribution to employees' state insurance plan Rs.9.98 lakhs ( 2013-14 -Rs 9.92 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors for audit Rs. 4.00 Lakhs (2013-14 Rs. 3.93 Lakhs) which is an all inclusive fees covering statutory audit, tax audit and other certification work and Service tax thereon.

14. Segment information - The Company's primary segment is identified as business segment based on nature of services, risks, returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

15. Related party transactions

(1) Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(iv) Shri S R Srinivasan - Director-Finance

(2) Associate Company - Enterprise where significant influence is exercised on the company

* Sudharsan Logistics Private Limited

(3) Fully Owned Subsidiaries

* Sanco Transport Ltd

* Sanco Clearance Ltd

16. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

17. Details of terms of Secured loans- Refer separate statement annexed.

18. Comparative figures relating to the previous year have been reclassified /regrouped/ amended wherever necessary.


Mar 31, 2014

1) The holders of Equity Shares are entitled to vote at the General Meeting and also to the dividend declared/paid in proportion to the Shares held by them. Apart from the above, their rights, preferences and restrictions are governed by the terms of their issue under the provisions of the Companies Act, 1956.

1.1 (i) Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital assets and guaranteed by Deputy Managing Director; (ii) Loan Sanctioned for Rs.1383 lakhs from a Bank for acquisition of immovable property(Note 1.3(a)(ii) and Note 1.7(a)) is secured by the immovable property (comprising Land and Building situate at Chennai) and is guaranteed by three Directors (iii) Loan Sanctioned for Rs. 810 Lakhs(March 31,2013 Rs. 450 Lakhs) (Note 1.3(a)(i) and Note 1.7(a)) for construction of warehouse is secured by commercial property belonging to an associate Company and is further secured by personal guarantee of three Directors and (iv) cash credit facility is secured by frst charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

1.2 The net assets of the Company were revalued as on March 31, 2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets forthe purpose of the said revaluation has been computed upto March 31, 2009. The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs was credited to Revaluation reserve.

1.3 Balance with banks in deposit accounts in Note 1.12(a) to the Balance Sheet includes Rs. 389.90 lakhs (March 31,2013 Rs. 104.30 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

1.4 There are no amounts remaining to be credited to the Investor Education and Protection Fund.

1.5 Capital expenditure commitments (net of advances) Rs. 137.04 lakhs (March 31,2013 Rs. 367.78 lakhs)

1.6 Contingent liabilities - Claims against the Company not acknowledged as debts

Taxes Rs. 371.20 lakhs (2012-13 Rs.209.05 lakhs).

Bank guarantee Rs. 589.96 lakhs (2012-13 Rs. 487.28 lakhs).

Others Rs. 55.72 lakhs (2012-13 Rs. 16.72 lakhs)

outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

1.7 Directors'' remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 94.60 lakhs (2012-13 Rs.89.40 lakhs), Allowances Rs. 15.10 lakhs (2012-13 Rs.13.50 lakhs), Contribution to Provident fund Rs. 11.35 lakhs (2012-13 Rs.10.72 lakhs), Perquisites Rs. 1.81 lakhs(2012-13 Rs.2.58 lakhs). Total Rs. 122.24 lakhs(2012-13 Rs. 116.20 lakhs); (ii) Sitting fees to directors Rs. 2.85 lakhs (2012-13 Rs.2.55 lakhs).

1.8 Repairs to Buildings in Note 2.6 to the Statement of Profit and Loss - Nil (2012-13 Rs.14.51 lakhs) being amortised expenses on leasehold land.

1.9 (a) Warehouse earnings in Note 2.1 is net of incentives/rebates/trade discounts of Rs. 1041.46 lakhs(2012-13 Rs 1174.93 lakhs) (b) Tax deducted at source on (i) Revenue from operations Rs. 189.85 lakhs(2012-13 Rs 153.12 lakhs); (ii) Interest income Rs. 4.05 lakhs (2012-13 Rs 9.34 lakhs).

1.10 (i) Depreciation for the year computed on revalued assets includes a charge of Rs 8.69 lakhs (2012-13 Rs 8.69 lakhs) being the excess depreciation computed under the method followed by the Company prior to revaluation and the same has been transferred from Revaluation reserve to the Statement of Profit and loss (ii) Depreciation and amortization includes impairment in value of operating equipment is Rs. Nil (2012-13 Rs.65.50 lakhs) (iii) During the yearthe Company has revised the estimated useful life of Motor Vehicles and Operating Equipment. The effect of the charge relating to the current year is a higher depreciation of Rs. 52.89 lakhs. (iv) Useful life of Tangible and Intangible Assets:

1.11 Foreign exchange and foreign currency transactions and derivatives - (i) Imports – Rs.Nil (2012-13 Rs Nil); (ii) Other expenditure in foreign currency Rs. 28.12 lakhs(2012-13 Rs.50.22 lakhs); (iii) Other earnings in foreign exchange Rs. 29.11 lakhs (2012-13 Rs. 6.40 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives – Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 2627 equivalent Rs. 1.60 lakhs (March 31, 2013 US $ 13,409.22 equivalent Rs 7.28 lakhs); Amount payable on account of services obtained US $ 5435.71 equivalent Rs. 3.36 lakhs, DKK Nil, GBP Nil ( March 31,2013 US $ 1645 equivalent Rs.0.89 lakhs , DKK 2532 equivalent Rs 0.24 lakh, GBP 12074.94 equivalent Rs 9.97 lakhs).

1.12 Computation of earnings per share: (i) Profit for the year after tax Rs. 416.27 lakhs(2012-13 Rs.636.58 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2013- 18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i)÷(ii) Rs. 23.13 (2012-13-Rs. 35.37)

1.13 Deferred tax-liabilities comprises tax effect of (i) timing differences relating to depreciation Rs.357.50 lakhs (March 31,2013 Rs.414.90 lakhs); (ii) others Rs. 2.63 lakhs (March 31,2013 Rs.5.57 lakhs).

1.14 (i) The Company has complied with the revised Accounting Standard 15-Employee benefits.

Accordingly provision of Rs. 32.92 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2014 (2012-13 -Rs 35.15lakhs).

(ii) Deferred benefit plan-Gratuity: As per actuarial valuation on March 31, 2014. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31,2013 - 8%);(b)Salary escalation rate 8% (March 31,2013 8%); (c) Mortality rate as per LIC(1994-96) Mortality Table: (d) Attrition rate 1-3%(March 31,2013 - 1-3%); Method of valuation, Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b)- Contribution to provident fund Rs. 50.24 lakhs,(2012-13 Rs 45.70 lakhs: 2011-12-Rs 41.56 lakhs), Contribution towards gratuity Rs. 32.92 lakhs(2012-13 Rs 35.15 lakhs: 2011-12-Rs 56.24 lakhs), Employees'' welfare expenses include contribution to employees'' state insurance plan Rs. 9.92 lakhs( 2012-13 -Rs 9.12 lakhs:2011-12-Rs 16.42 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors-For audit Rs. 3.93 lakhs (2012-13 Rs 3.93 lakhs) which is an all inclusive fees covering Statutory audit, tax audit and other certification work and service tax thereon.

1.15 Segment information - The Company''s primary segment is identified as business Segment based on nature of services, risks, returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

1.16 Related party transactions

(1) Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(iv) Shri S R Srinivasan - Director-Finance

(2) Associate company - Sudharsan Logistics Private Limited

1.17 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

1.18 Details of terms of Secured loans- Refer separate statement annexed.

1.19 Comparative figures relating to the previous year have been reclassified /regrouped/amended wherever necessary


Mar 31, 2013

1.1 (i)Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital assets and guaranteed by Deputy Managing Director; (ii) Loan for acquisition of land for Container Freight Station is secured by first charge on the said land and structures thereon and guaranteed by three Directors;(iii)Loan of Rs 1383 lakhs from a Bank for acquisition of immovable property(Note 1.3(a) and Note 1.7(a)) is secured by the immovable property (comprising Land and Building situated at Chennai) and is guaranteed by three Directors (iv) Loan of Rs 450 Lakhs(Note 1.3(a) and Note 1.7(a)) drawn for construction of warehouse is secured by commercial property belonging to an associate company and is further secured by personal guarantee of three Directors and (v) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

1.2 The net assets of the company were revalued as on March 31,2009 by aci external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31, 2009. The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs was credited to Revaluation reserve.

1.3 Balance with banks in deposit accounts in Note 1.12(a) to the Balance Sheet includes Rs. 104.30 lakhs (March 31,2012 Rs. 97.29 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

1.4 There are no amounts remaining to be credited to the Investor Education and Protection Fund.

1.5 Capital expenditure commitments (net of advances) Rs.367.78 lakhs(March 31,2012 - Rs. 732.07 lakhs)

1.6 Contingent liabilities - Claims against the Company not acknowledged as debts Rs.46.00 lakhs (2011-12 Rs.0.29 lakh). Bank guarantee Rs 487.28 lakhs(2011-12 Rs 331.95 lakhs). Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

1.7 Directors'' remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 89.40 lakhs (2011-12 Rs.74.72 lakhs), Allowances Rs 13.50.lakhs (2011-12 Rs.18.83 lakhs), Contribution to Provident fund Rs. 10.72 lakhs (2011-12 Rs.8.97 lakhs), Perquisites Rs. 2.58 lakh (2011-12 Rs.0.14 lakh). Total Rs. 116.20 lakhs{2011-12 Rs. 102.66 lakhs); (ii) Sitting fees to directors Rs2.55 lakhs (2011-12 Rs.2.85 lakhs).

1.8 Repairs to Buildings in Note 2.6 to the Statement of Profit and Loss include Rs. 14.51 lakhs (2011- 12 Rs. 13.93 lakhs) being amortised expenses on leasehold land.

1.9 (a) Warehouse earnings in Note 2.1 is net of incentives/rebates/trade discounts of Rs 1174.93 lakhs(2011-12 Rs 1230.52 lakhs)

(b) Tax deducted at source on (i) Revenue from operations Rs153.12iakhs(2011-12 Rs 156.88 lakhs); (ii) Interest income Rs. 9.34 lakhs (2011-12 Rs 3.66 lakhs).

1.10 (i) Depreciation for the year computed on revalued assets includes a charge of Rs 8.69 lakhs (2011-12 Rs 8.69 lakhs) being the excess depreciation computed under the method followed by

the company prior to revaluation and the same has been transferred from Revaluation reserve to the Statement of Profit and loss (ii) Depreciation and amortization includes impairment in value of operating equipment Rs 65.50 lakhs(2011-12 Rs Nil)(iii) Gain on acquisition of land by government disclosed as extraordinary item in earlier year is after netting surplus of Rs 138.98 lakhs in Revaluation Reserve.

1.11 Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs.Nil (2011- 12 Rs Nil); (ii) Other expenditure in foreign currency Rs. 50.22 lakhs(2011-12 Rs.31.58 lakhs); (iii) Other earnings in foreign exchange Rs6.40 lakhs (2011-12 Rs. 10.52 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $13,409.22 equivalent RS 7.28 lakhs, Euro Nil equivalent Rs . Nil lakhs (March 31,2012 US $ 977.72 equivalent Rs 0.51 lakhs, Euro 438.84 equivalent Rs 0.30lakh); Amount payable on account of services obtained US$1645 equivalent Rs 0.89 lakhs, DKK 2532 equivalent Rs 0.24 lakhs, GBP 12074.94 equivalent Rs 9.97 lakhs (March 31,2012 US $ 80 equivalent Rs.0.04 lakhs , DKK 2532 equivalent Rs 0.24 lakh, GBP Nil).

1.12 Computation of earningspershare: (i)Profit for the year after tax Rs636.58 lakhs (2011-12 Rs.766.04 lakhs); (ii) Profit for the year before extraordinary interns (net of tax) Rs 636.58 lakhs(2011-12 Rs 727.37 lakhs) (iii)Equity shares outstanding 18,00,000 (March 31,2012-18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i) (iii) Rs 35.37 (2011-12-Rs 42.56); (v) Earnings per share- Basic and diluted before extra ordinary item (net of tax) Rs 35.37 (2011-12 Rs 40.41)

1.13 Deferred tax-liabilities comprises tax effect of (i) timing differences relating to depreciation Rs. 414.90 lakhs (March 31,2012 Rs.306.90 lakhs); (ii) others Rs. 5.57 lakhs (March 31,2012 Rs.9.37 lakhs).

1.14 (i) The company has complied with the revised Accounting Standard 15-Employee benefits.

Accordingly provision of Rs 35.15 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2013 (2011-12 -Rs 56.24lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2013. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31,2012 8 %);(b)Salary escalation rate 8%(March 31,2012 5%); (c) Mortality rate as per LIC(1994-96) Mortality Table: (d) Attrition rate 1-3%(March 31,2012 1-3%); Method of valuation, Projected unit credit method.

(iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv) During the year the Company has recognized the following amounts in the Statement of Profit and loss in Note 2.4 (b)- Contribution to provident fund Rs 45.70 lakhs,(2011-12 Rs 41.56 lakhs: 2010-11-Rs 37.95 lakhs), Contribution towards gratuity Rs 35.15 lakhs( 2011-12 Rs 56.24 lakhs: 2010-11-Rs 38.44 lakhs), Employees'' welfare expenses include contribution to employees'' state insurance plan Rs 9.12 lakhs( 2011-12-Rs 16.42 lakhs:2010-11-Rs 9.57 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors-For audit Rs3.93 Lakhs (2011-12 Rs 2.98 lakhs) which is an all inclusive fees covering Statutory audit, tax audit and other certification work and service tax thereon.

1.15 Segment information - The Company''s primary segment is identified as business Segment based on nature of services, risks , returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

1.16 Related party transactions

(1) Key management personnel

(i) Shri V Upendran - Managing Director

(ii) Shri S Sathyanarayanan - Deputy Managing Director

(iii) Shri U Udayabhaskar Reddy - Wholetime Director

(iv) Shri S R Srinivasan -Director-Finance

(2) Associate company- Sudhajrsan Logistics Private Limited

1.17 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

1.18 Details of terms of Secured loans- Refer separate statement annexed.

1.19 Comparative figures relating to the previous year have been reclassified /regrouped/amended wherever necessary.


Mar 31, 2012

1)The holders of Equity Shares are entitled to vote at the General Meeting and also to the dividend declared/paid in proportion to the shares held by them. Apart from the above, their rights, preferences and restrictions are governed by the terms of their issue under the provisions of the Companies Act, 1956

Note:(a)Securities for the long term debt: Refer Note 3.1 to the financial statements

(b) Details of terms of the current maturities of long term debt: Refer Note 3.18 to the financial statements.

2.1 (i)Loan for acquisition of capital assets under deferred payment scheme is secured by hypothecation of related capital assets and guaranteed by Deputy Managing Director;

(ii) Loan for acquisition of land for Container Freight Station is secured by first charge on the said land and structures thereon and guaranteed by three Directors;(iii) cash credit facility is secured by first charge on the book debts, land and structures thereon at Container Freight Station and guaranteed by three Directors.

2.2 The net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31,2009.The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs was credited to Revaluation reserve.

2.3 Balance with banks in deposit accounts in Note 1.13(a) to the Balance Sheet includes Rs. 97.29 lakhs (March 31,2011 Rs. 96.28 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

2.4 There are no amounts remaining to be credited to the Investor Education and Protection Fund.

2.5 Capital expenditure commitments (net of advances) Rs. 732.07 iakhs(March 31,2011 - Rs. Nil)

2.6 Contingent liabilities - Claims against the Company not acknowledged as debts Rs.0.29 lakhs (2010-11 Rs.46.89 lakhs). Outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.

2.7 Directors' remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 74.72lakhs (2010-11 Rs.65.00 lakhs), Allowances Rs18.83.lakhs (2010-11 Rs.16.50 lakhs), Contribution to Provident fund Rs. 8.97 lakhs (2010- 11 Rs.7.80 lakhs). Perquisites Rs. 0.14 lakh (2010-11 Rs.0.78 lakh). Total Rs. 102.66 lakhs(2010- 11 Rs. 90.08 lakhs); (ii) Sitting fees to directors Rs 2.85 lakhs (2010-11 Rs.2.35 lakhs).

2.8 Repairs to container yard and warehouses in Note 2.6 to the Profit and Loss Statement include Rs. 13.93 lakhs (2010-11 Rs.13.35 lakhs) being amortised expenses on leasehold land.

2.9 Tax deducted at source on (i) Revenue from operations Rs 156.88 lakhs(2010-11 Rs 135.04 lakhs); (ii) interest income Rs. 3.66 lakhs (2010-11 Rs.5.20 lakhs) .

2.10 Depreciation for the year computed on revalued assets includes a charge of Rs8.69 lakhs (2010-11 Rs 8.69 lakhs) being the excess depreciation computed under the method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the Profit and loss Statement (Refer Note 1.2 (a) to the Balance Sheet.

2.11 Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs.Nil (2010-11 Rs Nil); (ii) Other expenditure in foreign currency Rs. 31.58 lakhs(2010-11 Rs.37.37 lakhs); (iii) Other earnings in foreign exchange Rs10.52 lakhs (2010-11 Rs. 9.04 lakhs): (iv) There was no remittance in foreign currencies on account of dividend to non-resident

shareholders; (v) Net exchange difference credited to Profit and loss account Rs. 0.50 lakh (2010-11 Rs.0.38 lakh); (vi) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 977.72 equivalent Rs 0.51 lakhs, Euro 438.84 equivalent Rs . 0.30 lakhs (March 31,2011 US $ 3797.33 equivalent Rs 1.70 lakhs, Euro 382.36 equivalent Rs 0.24 lakh); Amount payable on account of services obtained US $ 80 equivalent Rs 0.04 lakhs, DKK 2532 equivalent Rs 0.24 lakh, ( March 31.2011 US $ 2468.65 equivalent Rs.1.10 lakhs , Euro 2532 equivalent Rs 0.21 lakh, GBP Nil).

2.12 Computation of earnings per share: (i) Profit for the year after tax Rs 766.04 lakhs(2010-11 Rs.828.45 lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2011 - 18,00,000); (iii) Face value per Equity share Rs 10.00 (iv) Earnings per share - Basic and diluted (i) (ii) Rs 42.56. (2010-11-Rs 46.03).

2.13 Deferred tax-liabilities comprises tax effect of (i) timing differences relating to depreciation Rs. 306.90 lakhs (March 31,2011 Rs.283.30 lakhs); (ii) others Rs. 9.37 lakhs (March 31,2011 Rs.11.19 lakhs).

2.14 (i) The company has complied with the revised Accounting Standard 15-Employee benefits issued by the Institute of Chartered Accountants of India. Accordingly provision of Rs 56.24 lakhs has been made for the incremental liability towards gratuity for the year ended March 31.2012 (2010-11 -Rs 38.44 lakhs).

(ii)Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2012. The disclosures furnished by Life Insurance Corporation of India in this regard are (a) Discounting rate 8%(March 31,2011 8 %);(b)Salary escalation rate 8%(March 31,2011 5%); (c) Mortality rate as per LIC(1994- 96) Mortality Table: (d) Attrition rate 1-3%(March 31,2011 1-3%); Method of valuation, Projected unit credit method.

(iii)Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation.

(iv)During the year the Company has recognized the following amounts in the Profit and loss statement in Note 2.4 (b)- Contribution to provident fund Rs41.56 lakhs,(2010-11 Rs 37.95 lakhs: 2009-10-Rs 32.80 lakhs), Contribution towards gratuity Rs56.24 lakhs( 2010-11 Rs 38.44 lakhs: 2009-10-Rs 30.10 lakhs), Employees' welfare expenses include contribution to employees' state insurance plan Rs 16.42 lakhs( 2010-11-Rs 9.57 lakhs:2009-10-Rs 7.76 lakhs).

(v) Note 2.6(j)-Others under other expenses include Fees to auditors-For audit Rs 2.98 Lakhs (2010-11 Rs 2.25 lakhs) which is an all inclusive fees covering Statutory audit, tax audit and other certification work.

2.15 Segment information - The Company's primary segment is identified as business Segment based on nature of services, risks , returns and the internal business reporting System. The Company is primarily engaged in a single business segment viz., logistics.

2.17 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

2.18 Details of terms of Secured loans- Refer separate statement annexed.

2.19 During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. Accordingly the company has reclassified /re-grouped /amended the previous year's figures in accordance with the requirements applicable in the current year.


Mar 31, 2010

(1) Issued and subscribed capital include 2,50,000 Equity shares allotted as fully paid-up by way of bonus shares by capitalisation of part of General reserve.

(2) Movement in reserves -(i) Revaluation reserve- Surplus arising on the revaluation of the net assets Rs Nil (March 31,2009 Rs 4859.84 lakhs); Transfer to Depreciation in Schedule 2.6 (refer Note 15 below) Rs 8.70 lakhs(March 31,2009 Rs Nil); (ii) General reserve - Transfer from Profit and loss account Rs. 540.00 lakhs (March 31,2009 Rs.868.60 lakhs); Adjustment on account of provision for taxation and other balances : Charge( -)/Credit(+) - Rs. Nil (-) (March 31,2009, Rs.68.60 lakhs(-).

(3) Nature of security for secured loans - (i) Term loan and cash credit facility from banks are secured by a first charge on the entire fixed assets (excluding assets under hire purchase) and current assets, present and future, (ii) Deferred liability under hire purchase is secured by hypothecation of equipments acquired under the hire purchase scheme; (iii) Term loan and cash credit facilities are guaranteed by three directors. The liability stated at (ii) above is guaranteed by the Managing Director and Deputy Managing Director.

(4) Unsecured loans include Rs. 20.11 lakhs (March 31,2009 Rs.47.22 lakhs) repayable within twelve months from the end of the year.

(5) The net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated prevailing market value for similarly located assets in the case of land and buildings, (ii) estimated depreciated replacement cost in the case of other fixed assets, (iii) estimated realizable value or cost whichever is lower in the case of inventories and (iv) estimated values which are likely to be realized /discharged in the case of other assets and liabilities. Depreciation in the case of fixed assets for the purpose of the said revaluation has been computed upto March 31,2009.The resulting net surplus on such revaluation aggregating Rs 4859.84 lakhs has been credited to Revaluation reserve.

(6) There is no diminution, other than temporary in the value of the investments.

(7) Deposits with banks in Schedule 1.8 include Rs. 187.49 lakhs (March 31,2009 Rs.65.65 lakhs) in respect of which the relative deposit receipts have been pledged with banks as security for the guarantee facilities extended by them to the Company.

(8) There are no amounts remaining to be credited to the Investor Education and Protection Fund.

(9) Capital expenditure commitments (net of advances) Rs. 41.26 lakhs (March 31,2009-Rs Nil).

(10) Contingent liabilities - Claims against the Company not acknowledged as debts Rs.26.35 lakhs (2008-09 Rs.9.93 lakhs).

(11) Directors remuneration - (i) Managing Director, Deputy Managing Director, Director-Finance and Wholetime Director - Salary Rs. 61.66 lakhs (2008-09 Rs.43.89 lakhs), Allowances Rs. 18.50 lakhs (2008-09 Rs.13.10 lakhs), Contribution to Provident fund Rs. 7.40 lakhs (2008-09 Rs.5.26 lakhs), Perquisites Rs. 0.32 lakh (2008-09 Rs.0.82 lakh). Total Rs. 87.88 lakhs(2008-09 Rs. 63.07 lakhs); (ii) Sitting fees to directors Rs 1.80 lakhs (2008-09 Rs.1.45 lakhs).

(12) Repairs to container yard and warehouses in Schedule 2.2 include Rs. 188.82 lakhs (2008-09 Rs. 111.91 lakhs) being amortised expenses on leasehold land.

(13) Human resources include Rs. 0.93 lakh (2008-09 Rs.2.22 lakhs) being amortisation of compensation under voluntary separation plan.

(14) Tax deducted at source on interest income is Rs. 5.39 lakhs (2008-09 Rs.4.82 lakhs) .

(15) Depreciation for the year computed on revalued assets includes a charge of Rs 8.70 lakhs (2008-09 Rs Nil) being the excess depreciation computed by the method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the Profit and loss account.

(16) Foreign exchange and foreign currency transactions and derivatives - (i) Imports - Rs. Nil (2008-09 Rs 338.64 lakhs); (ii) Other expenditure in foreign currency Rs. 24.34 lakhs(2008-09 Rs.9.40 lakhs); (iii) Other earnings in foreign exchange Rs. 23.48 lakhs (2008-09 Rs. 7.03 lakhs); (iv) There was no remittance in foreign currencies on account of dividend to non-resident shareholders; (v) Net exchange difference credited to Profit and loss account Rs. 0.63 lakh (2008-09 Rs.0.01 lakh); (vi) Derivatives - Company has not so far used derivative financial instruments such as forward contracts, currency swap to hedge currency exposures, present and anticipated. However, currency exposure not hedged by derivative instrument are as under: Amount receivable on account of services rendered, advances, etc. US $ 15,527.10 equivalent RS 7.07 lakhs, Euro 214.85 equivalent Rs .0.13 lakh (March 31,2009 US $ 2,375.44 equivalent Rs 1.21 lakhs, Euro 4,969.01 equivalent Rs 3.35 lakhs); Amount payable on account of services obtained US $ Nil, Euro 474.89 equivalent Rs 0.29 lakh, GBP 6,875.55 equivalent Rs 4.68 lakhs (March 31,2009 US $ 368.46 equivalent Rs 0.18 lakh, Euro Nil, GBP 1,165.41 equivalent Rs 0.93 lakh).

(17) Computation of earnings per share: (i) Profit after taxation Rs 610.90 lakhs(2008-09 Rs1060.58lakhs); (ii)Equity shares outstanding 18,00,000 (March 31,2009 - 18,00,000); (iii) Earnings per share - Basic and diluted (i)/(ii) Rs. 33.94 (2008-09-Rs 58.92).

(18) Deferred tax-liability comprises tax effect of (i) timing differences relating to depreciation Rs.313.68 lakhs (March 31,2009 Rs.241.51 lakhs); (ii) others Rs. 32.74 lakhs (March 31,2009 Rs.86.74 lakhs).

(19) (i) The company has complied with the revised Accounting Standard 15-Employee benefits issued by the Institute of Chartered Accountants of India. Accordingly provision of Rs 30.10 lakhs has been made for the incremental liability towards gratuity for the year ended March 31,2010 (2008-09 -Rs 40.51 lakhs).

(ii) Deferred benefit plan- Gratuity: As per actuarial valuation on March 31,2010. The disclosures required in the said Accounting standard regarding computation of the said benefit plan have not been furnished since the said information is not considered as material. (iii) Gratuity is administered through Group Gratuity Scheme with Life Insurance corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year for the returns over the entire life of the related obligation. (iv) During the year the Company has recognized the following amounts in the Profit and loss account in Schedule 2.3 to the accounts- Contribution to provident fund Rs 32.80 lakhs,(2008- 09 Rs 31.48lakhs: 2007-08-Rs 24.38 lakhs), Contribution towards gratuity Rs 30.10 lakhs( 2008-09 Rs 40.51 lakhs: 2007-08-Rs 19.71 lakhs), Employees welfare expenses include contribution to employees state insurance plan Rs 7.76 lakhs( 2008-09-Rs 7.65 lakhs: 2007-08- Rs 13.21 lakhs).

(20) Segment information - The Company is principally engaged in a single business segment viz. Logistics.

(21) Related party transactions

(1) Related party - Key management personnel

(i) Shri V Upendran - Managing Director

(ii). Shri S Sathyanarayanan - Deputy Managing Director

(22) The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

(23) Comparative figures relating to previous year have been reclassified to conform the classification adopted this year.

 
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