Mar 31, 2018
15.CAPITAL MANAGEMENT - ADDITIONAL CAPITAL DISCLOSURES:
The Company adheres to the Capital Management framework which is underpinned by the following guiding principles:
(a) The key objective is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business.
(b) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance Sheet.
(c) The Company also focusses on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
(d) Proactively manage exposure in forex, interest and commodities to mitigate risk to earnings.
(e) The Company''s goal is to continue to be able to return excess liquidity to shareholders to distribute annual dividends in future years.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.
16.FINANCIAL INSTRUMENTS:
Valuation:
The financial instruments are initially recognized and subsequently re-measured at fair value as described below :
(a) The fair value of Forward Foreign Exchange contracts is determined using forward exchange rates and yield curves at the balance sheet date.
(b) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
(c) All foreign currency denominated assets and liabilities using exchange rate at the reporting date.
Fair Value measurement hierarchy:
The fair value of cash and cash equivalents, other bank balances, loans, trade receivables, trade payables and others approximates their carrying amount. The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques. The fair valuation of various financial assets are done by adopting Level 3 category valuation.
Level 1 :
Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2 :
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (derived from prices)
Level 3 :
Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The data required for disclosing information with regard to sensitivity analysis is not made available by the Actuary despite the concerted attempts made by the company to gather the information in this regard and hence the information relating to sensitivity analysis in terms of the amount of responsiveness and the financial impact consequent to change in discount rate, change in rate of salary escalation and change in rate of employee turnover (while holding all the other factors constant), have not been provided for during the year.
These plans typically expose the company to actuarial risks such as:
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk:
A decrease in the bond interest rate will increase the plan liability, however, this will be partially offset by an increase in the return on the plan debt investments.
Longevity risk:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
The company has one customer individually accounted for more than 10% of the total revenue amounting to approximately Rs.66 crores for the year 2017-18 and Rs.63 crores for the year 2016-17 respectively.
The interest rate sensitivity analysis is done holding on the assumption that all other variables remaining constant. The increase / decrease in interest expense is mainly attributable to the Company''s exposure to interest rates on its variable rate of borrowings.
32(iii) Commodity price risk:
Commodity price risk arises due to fluctuation in prices of eggs, feeds and other products. The company has a risk management framework aimed at prudently managing the risk by reducing the external dependability and enhancement of self reliance by manufacturing the commodities in house to the extent possible.
32(iv) Credit risk:
Credit risk is a risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due, causing financial loss to the company. Credit risk arises from Company''s outstanding receivables from customers and other parties. The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities.
32(v) Liquidity risk:
Liquidity risk arises from the company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and cash equivalents (Rs.19.99 crores as on 31st March 2018) & (Rs.17.11 crores as on 31st March 2017) and maintaining availability of standby funding through an adequate line up of committed credit facilities (Rs.43.72 crores as on 31st March 2018) & (Rs.43.07 crores as on 31st March 2017).
Mar 31, 2016
i. Previous year figures are regrouped, rearranged and reclassified wherever necessary to facilitate comparison with current year''s figures and figures have been rounded off to nearest rupee.
ii. Contingent Liability:
(a) Export Bills discounted with the State Bank of India, Commercial Branch, Erode Rs. 2141.66 Lacs. (Previous year Rs. 2114.84 Lacs).
(b) Income Tax Liability Rs.395.63 lacs (Net of recovery and Payments) (Previous year 492.81 lacs).
(c) Service Tax Liability Rs.44.38 Lacs (Previous year Rs.41.25 Lacs).
(d) Excise Duty Liability Rs.24.13 Lacs (Previous year Rs.32.48 Lacs).
(e) The company is in dispute with its bank (State Bank of India) regarding the claim made as "Right of Recompense (ROR)". The amount involved could not be quantified as there is a dispute in quantification of liability itself between the bank (State Bank of India) and the company. There is also dispute concerning the admission of liability by the company and the company is making best efforts to rebut the Right of Recompense (ROR) claim made by the bank towards the company. Hence, no provision has been made in the books for the items referred to in item no.(b) to (d) refer note no.2 (vii).
iii. Balances of Sundry creditors and Sundry debtors are subject to confirmation.
The company has not received any intimation from the suppliers regarding status under the Micro, Small and Medium enterprises development Act, 2006 (The Act) and hence disclosure regarding:
I) Amount due and outstanding to suppliers as at the end of the accounting year.
ii) Interest paid during the year.
iii) Interest payable at the end of the accounting year.
iv) "Interest accrued and unpaid at the end of the accounting year, have not been provided."
The company is making efforts to get the confirmations from the suppliers as regards their status under the Act.
vi. Provision for Income Tax :
Provision had been made in respect of Income Tax liability arising under the Normal Provisions of the Income Tax Act, 1961, since the tax liability when computed in accordance with the Provisions of MAT under section 115JB of the Income Tax Act, 1961 is higher than the book profits. Excess tax amount paid over the tax paid/payable under normal provisions of the Income Tax Act during the yester years, if any, constitutes MAT credit and the same has been taken credit and set off against the provision for taxation made during the year.
vii. No provision has been made in respect of demand of Excise Duties Rs.24.13 lacs and Service Tax of Rs.44.38 Lacs, for which the company has filed appeals with various Higher Appellate Forums, against the orders of the Lower Authorities since the company is confident of coming out successful in the Appeals as per the advice taken from the legal experts. Similarly there are Income Tax Demands totaling to the tune of of Rs.395.63 lacs i.e for the Assessment year 2008-2009 (Rs.244.15 Lacs - Net of Recovery) and 2009-2010 (Rs.151.48 Lacs Net of Part Payment and payments in installments). Based on the decisions of Appellate Authorities and the interpretations of other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made for the balance amount net of payments.
The carried forward losses under the Income Tax Act,1961 of the earlier assessment years has been reduced by the Assessing Officer while completing the assessment for the A.Y2011-12 and A.Y 12-13 by making some adjustments to the returned Loss. The Company has preferred appeals before the immediate superior authority which appeal is pending for disposal as on the date of the financial reports. Since the adjustments have resulted only in the reduction of carry forward losses, there is no immediate demand raised for the relevant assessment years, but the adjustments have an impact on the availability of Future MAT credit to the extent of Rs.1.55 Crores which has been considered while making provision for Income Tax for the current year on conservative basis. The MAT Credits available in the Books of Accounts will be suitably dealt with on the outcome of the appellate decisions.
viii. There are no impairment of assets in terms of Accounting Standard No.28 issued by The Institute of Chartered Accountants of India. The Company had disposed some of the assets during the current financial year which has been suitably recognized / dealt with in the financial statements in accordance with the Accounting Standard No.10 issued by the Institute of Chartered Accountants of India.
The Company made annual Contributions to the LIC of an amount advised by the LIC. The Company was not informed by LIC of the investments made by the LIC or the Break-down of plan assets by investment type.
xiii. Poultry Division :
All the consumption of Feeds, Drugs, Vaccines and Medicines up to the grower stage are being added on the value of birds and shown as âValue of Livestockâ under the head Inventories in the Balance Sheet.
The Cost of Birds thus arrived at is being amortized over remaining life time of the Birds and is recognized in the Profit and loss account.
The remaining unamortized value of the Birds is shown as âUnamortized Value of Live Stockâ under the head Other Current Assets in the Balance Sheet.
xiv. CSR Expenditure :
The company during the year has incurred an expenditure to the extent of Rs.30.67 lacs towards CSR expenditure and has contributed towards the CSR Related Activities, details of which have been furnished separately. The company has complied with the CSR Provisions as envisaged under Section 135 of the Companies Act, 2013.
XV. Foreign Exchange Fluctuation - Net :
The net Foreign exchange fluctuation difference of Rs.504.91 lacs has been disclosed under the head "Other Income" instead of the head "Finance charges" as required by Schedule III of the Companies Act 2013 and hence the figures disclosed under both the heads are to be read taking into consideration of the above fact. However there is no impact on the profit or loss for the year.
XVI. Details Of Loans Given, Investments Made And Guarantee Given Covered Under Section 186(4) of The Companies Act 2013
I) Loans Given Nil
ii) Investments Made Disclosed under Respective Heads
iii) Corporated Guarantees Nil
Mar 31, 2015
WORKING CAPITAL FINANCE FROM SBI ARE SECURED BY
a) Hypothecation of stocks consisting of Raw materials, semi finished
goods, finished goods and stores and spares and other current assets of
the company.
b) Personal guarantees of Executive Chairman and Managing director.
c) Second charge on the entire fixed assets of the company.
d) SBI - Pledge of shares 33,72,752 Nos of the company held by the
Managing Director.
I) Previous year figures are regrouped, rearranged and reclassified
wherever necessary to facilitate comparison with current year's figures
and figures have been rounded off to nearest rupee.
II) ContingentLiability:
i) Export Bills discounted with the State Bank of India, Commercial
Branch, Erode Rs. 2114.84 Lacs. (Previous year Rs. 2085.65 Lacs).
ii) Income Tax Liability Rs. 492.81 lacs (Net of recovery and Payments)
(Previous year 552.81 lacs).
iii) Service Tax Liability Rs.41.25 Lacs (Previous year Rs.39.62 Lacs).
iv) Excise Duty Liability Rs.32.48 Lacs (Previous year Rs.27.17
Lacs).for the items referred to in item no.(b) to (d) refer note no.2
(vii).
III) Balances of Sundry creditors and Sundry debtors are subject to
confirmation.
The company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium ienterprises
development Act, 2006 (The Act) and hence disclosure regarding I)Amount
due and outstanding to suppliers as at the end of the accounting year.
ii) Interest paid during the year.
iii) Interest payable at the end of the accounting year.
iv) Interest accrued and unpaid at the end of the accounting year, have
not been provided.
The company is making efforts to get the confirmations from the
suppliers as regards their status under the Act.
IV) Disclosure of Related Party transactions, as required under
Accounting Standard (AS) 18 of the Companies (Accounting Standards)
Rules, 2006
(a) Name of the Related PartiesI)
i) SKM Animal Feeds and Foods (India) Limited
ii) SKM Siddha and Ayurvedha Company (India) Limited
iii) SKM Universal Marketing Company India Ltd
iv) SKM Shree Shivkumar
v) Sri.SKM Maeilanandhan
vi) SKM Europe BV,Utrecht,The Netherlands
(b) Description of relationship between the parties :
I)SKM Animal Feeds and Foods (India) Limited Common Directors
ii) SKM Siddha and Ayurvedha Company (India) Limited Common Managing
Director
iii) SKM Universal Marketing Company India Ltd Common Directors
iv) SKM Shree Shivkumar Managing Director
v) Sri.SKM Maeilanandhan Whole time Director
vi) SKM Europe BV,Utrecht,The Netherlands Subsidiary Company
VI. Provision for Income Tax
Provision had been made in respect of Income Tax liablility arising
under the provisions of MAT under section 115JB of the Income Tax Act,
1961, since the tax liability when computed in accordance with the
Normal Provisions of the Income Tax Act, 1961 is lesser than the book
profits. Excess tax amount paid/payable over the tax paid/payable under
normal provisions of the Income Tax Act constitutes MAT credit and is
thus recognised as an asset in the balance sheet, since the asset can
be measured reliably and it is probable that the future economic
benefit associated with the asset will fructify
VII. No provision has been made in respect of demand of Excise Duties
Rs.32.48 lacs and Service Tax of Rs.41.25 Lacs, for which the company
has filed appeals with various Higher Appellate Forums, against the
orders of the Lower Authorities since the company is confident of
coming out successful in the Appeals as per the advice taken from the
legal experts. Similarly there are Income Tax Demands totalling to the
tune of of Rs.492.81 lacs i.e for the Assessment year 2008-2009
(Rs.270.07 Lacs - Net of Recovery) and 2009-2010 (Rs.222.74 Lacs Net of
Part Payment and payments in instalments). Based on the decisions of
Appellate Authorities and the interpretations of other relevant
provisions, the company has been legally advised that the demand is
likely to be either deleted or substantially reduced and accordingly no
provision has been made for the balance amount net of payments.
The carried forward losses under the Income Tax Act,1961 of the earlier
assessment years has been reduced by the Assessing Officer while
completing the assessment for the A.Y.2011-12 vide his order under
section 143(3) of the Income Tax Act, 1961 dated 31.03.2015 by making
some adjustments by way of disallowances of expenses against which the
company has preferred an appeal before the immediate superior authority
which appeal is pending for disposal as on the date of the financial
reports. Since the adjustment has resulted only in the reduction of
carry forward losses, there is no immediate demand raised for the
relevant assessment year, but the adjustments have an impact on the
availability of Future MAT credit of Rs.97.81 lacs
VIII. There are no impairment of assets in terms of Accounting Standard
No.28 issued by The Institute of Chartered Accountants of India. The
Company had disposed some of the assets during the current fnancial
year which has been suitablly recognised / dealt with in the financial
statements in accordance with the Accounting Standard No.10 issued by
the Institute of Chartered Accountants of India.
XI. FOB Value of goods exported Rs.25,396 Lacs (Previous Year Rs.21,214
Lacs)
The Company made annual Contributions to the LIC of an amount advised
by the LIC. The Company was not informed by LIC of the investments made
by the LIC or the Break-down of plan assets by investment type.
XIII. Poultry Division
All the consumption of Feeds, Drugs, Vaccines and Medicines upto the
grower stage are being added on the value of birds and shown as
"Value of Livestock" under inventory in the Balance Sheet.
The Cost of Birds thus arrived at is being amortised over remaining
life time of the Birds and is recognized in the Profit and loss
account.
The remaining unamortized value of the Birds is shown as "Unamortised
Value of Live Stock" under the head under inventory in the Balance
Sheet.
XIV. CSR Expenditure:
Though the company's net profit had exceeded Rs.5 crores and provisions
of Corporate Social Responsibility are attracted, the average net
profits of the company is in negative when computed for the three
immediately preceding financial years and hence, for the current
financial year, there is no obligation on the part of the company to
incur Expenditures on account of CSR Related Activities for the year.
XV Foreign Exchange Fluctuation - Net:
The net foreign exchange fluctuation difference of Rs.930.26 lacs has
been disclosed under the head "Other Income" instead of the head
"Finance charges" as required by Schedule III of the Companies Act 2013
and hence the figures disclosed under both the heads are to be read
taking into consideration of the above fact. However there is no impact
on the profit or loss for the year.
XVI. Details Of Loans Given, Investments Made And Guarantee Given
Covered Under Section 186(4) of The Companies Act 2013
I)Loans Given Nil
ii) Investements Made Disclosed under Respective Heads
iii) Corporated Guarantees Nil
Mar 31, 2014
1. Previous year figures are regrouped, rearranged and reclassified
wherever necessary to facilitate comparison with currentyear sfigures
and figures have been rounded offto nearest rupee.
2. Contingent Liability
i) Export Bills discounted with the State Bank of India, Commercial
Branch, Erode Rs. 2085.65 Lacs. (Previous year Rs. 2464.11 Lacs).
ii) Income Tax Liability Rs. 552.81 lacs (Net of recovery and Payments)
(Previous year Rs.359.06 lacs).
iii) Service Tax Liability Rs.39.62 Lacs (Previous year Rs.39.62 Lacs).
iv) Excise Duty Liability Rs.27.17 Lacs (Previous year Rs.14.53 Lacs).
forthe items referred to in item no. (ii) to (iv) refer note no.27.
3. Balances of Sundry creditors and Sundry debtors are subject to
confirmation.
The company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium enterprises
development Act, 2006 (The Act) and hence disclosure regarding:
i) Amount due and outstanding to suppliers as at the end of the
accounting year.
ii) Interest paid during the year.
iii) Interest payable atthe end of the accounting year.
iv) Interest accrued and unpaid atthe end of the accounting year, have
not been provided.
The company is making efforts to getthe confirmations from the
suppliers as regards their status underthe Act.
4. Disclosure of Related Party transactions, as required under
Accounting Standard (AS) 18 of the Companies (Accounting Standards)
Rules, 2006.
(a) Name ofthe Related Parties
i) SKM Animal Feeds and Foods (India) Limited
ii) SKM Universal Marketing Company India Ltd.
iii) SKM Meailanandhan (Excutive Chairman) - Key Managerial Person
iv) SKM Shree Shivkumar (Managing Director) - Key Managerial Person
v) SKM Europe BV,Utrecht, The Netherlands
(b) Description of relationship between the parties Presumption of
significance influence
(c) Transaction Details
i. Sale of Egg Shell waste to SKM Animal Feeds and Foods (India)
Limited Rs.20.88/- Lacs (Tonnage 911.70 Tons)
5. Provision for Income Tax
Provision had been made in respect of Income Tax liablility arising
under the provisions of MAT under section 115 JB of the Income Tax Act
1961 and there is no tax liability when computed in accordance with the
Normal Provisions of the Income Tax Act 1961 because of the
availability of benefit of set off of brought forward losses of the
earlier years. MAT thus paid/payable is recognised as an asset in the
balance sheet since the asset can be measured reliably and it is
probable that the future economic benefit associated with the asset will
fructify.
7. No provision has been made in respect of demand of excise duties
Rs.27.17 lacs and Service Tax of Rs.39.62 Lacs, for which the company
has filed appeals with various Higher Appellate Forums, against the
orders of the Lower Authorities and the company is confident of coming
out successful in the Appeals. Similarly there are Income Tax Demands
totalling to the tune of of Rs.552.81 lacs i.e for the Assessment year
2008-2009 (Rs.270.07 Lacs - Net of Recovery) and 2009-2010 (Rs.282.74
Lacs Net of Part Payment). Based on the decisions of Appellate
Authorities and the interpretations of other relevant provisions, the
company has been legally advised that the demand is likely to be either
deleted or substantially reduced and accordingly no provision has been
made.
8. There are no impairment of assets in terms of Accounting Standard
No.28 issued by The Institute of Chartered Accountants of India. The
Company had disposed some of the assets during the current financial
year which has been suitably recognised / Deal with in the financial
statements in accordance with the Accounting Standard No.10 issued by
the Institute of Chartered Accountants of India.
9. FOB Value of goods exported Rs.21,214 Lacs (Previous Year Rs.16,801
Lacs)
10. During the year the company has recognized the following amounts in
the Profit and Loss Account:
The Company made annual Contributions to the LIC of an amount advised
by the LIC. The Company was not informed by LIC of the investments made
by the LIC or the Break-down of plan assets by investment type.
11. Poultry Division
All the consumption of Feeds, Drugs, Vaccines and Medicines upto the
growerstage are being added on the value of birds and shown as Value of
Livestock under thefixed assets in the Balance Sheet.
The Cost of Birds thus arrived at is being amortised over remaining
life time of the Birds and is recognized in the Profit and loss
account.
The remaining unamortized value of the Birds is shown as Unamortised
Value of Live Stock under the head Other Current Assets in the Balance
Sheet.
Mar 31, 2013
1. Previous year figures are regrouped, rearranged and reclassified
wherever necessary to facilitate comparison with current year''s figures
and figures have been rounded off to nearest rupee.
2. Contingent Liability:
i) Export Bills discounted with the State Bank of India, Commercial
Branch, Erode Rs. 2464.11 Lacs. (Previous year Rs. 2092.58 Lacs).
ii) Income Tax Liability Rs. 359.06 lacs (net of recovery) (Previous
year Rs.359.06 lacs). iii) Service Tax Liability Rs.39.62 Lacs
(Previous year Rs.35.19 Lacs).
iv) Excise Duty Liability Rs.14.53 Lacs (Previous year Rs.9.55 Lacs).
for the items referred to in item no. (ii) to (iv) refer note no.26.
3. Balances of Sundry creditors and Sundry debtors are subject to
confirmation.
The company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium enterprises
development Act, 2006 (The Act) and hence disclosure regarding: i)
Amount due and outstanding to suppliers as at the end of the accounting
year. ii) Interest paid during the year.
iii) Interest payable at the end of the accounting year.
iv) Interest accrued and unpaid at the end of the accounting year, have
not been provided.
The company is making efforts to get the confirmations from the
suppliers as regards their status under the Act.
4. Disclosure of Related Party transactions, as required under
Accounting Standard (AS) 18 of the Companies (Accounting Standards)
Rules, 2006
(a) Name of the Related Parties
i) SKM Animal Feeds and Foods (India) Limited
ii) SKM Universal Marketing Company India Limited
iii) SKM Shree Shivkumar ( Managing Director) - Key Managerial Person
iv) Sri.SKM Meailanandhan (Excutive Chairman) - Key Managerial Person
(b) Description of relationship between the parties :
Presumption of significance influence
(c) Transaction details :
i. Sale of Egg Shell waste to SKM Animal Feeds and Foods (India)
Limited  Rs.25.05/- Lacs (Tonnage 1164.85 Tons)
ii. Details of Loans Borrowed, Repayments and Interest Payments
(Amount in Rs.)
iv. Rent Paid to Managing Director, Rs. 76,500/- v. Lease Rent
received from SKM Universal Marketing Company India Limited Rs.6 lacs
(Net of VAT and Service Tax).
The Executive Chairman and Managing Director''s remuneration is covered
under part II of Schedule XIII of the Companies Act, 1956.
5. Provision for Income Tax :
Provision had been made in respect of Income Tax liablility arising
under the provisions of MAT under section 115 JB of the Income Tax Act
1961 and there is no tax liability when computed in accordance with the
Normal Provisions of the Income Tax Act 1961 because of the
availability of benefit of set off of brought forward losses of the
earlier years. MAT thus paid/payable is recognised as an asset in the
balance sheet since the asset can be measured reliably and it is
probable that the future economic benefit associated with the asset
will fructify.
6. No provision has been made in respect of demand of Excise Duties
Rs.14.53 lacs and Service Tax of Rs.39.62 Lacs, for which the company
has filed appeals with various Higher Appellate Forums, against the
orders of the Lower Authorities and the company is confident of coming
out successful in the Appeals. Similarly there are Income Tax Demands
of Rs.4.29/- crores for the Assessment years 2007-2008 (Rs.88.98 Lacs),
2008-2009 (Rs.270 Lacs - Net of Recovery) and 2009-2010 (Rs.302.74 Lacs
- Demand raised after the end of the financial year). Based on the
decisions of Appellate Authorities and the interpretations of other
relevant provisions, the company has been legally advised that the
demand is likely to be either deleted or substantially reduced and
accordingly no provision has been made. (For the demand for the
Asst.year 2008-09 the Income Tax department has recovered taxes to the
extent of Rs.70.07 lakhs through seperate proceedings) (Seperate stay
proceedings in respect of the above demands are pending before varies
judicial authorities).
7. There are no impairment of assets in terms of Accounting Standard
No.28 issued by The Institute of Chartered Accountants of India. The
Company had disposed some of the assets in the subsequent financial
year which will be suitablly recognised/Deal with in the financial
statements of the subsequent year in accordance with the Accounting
Standard No.10 issued by the Institute of Chartered Accountants of
India.
The Company made annual Contributions to the LIC of an amount advised
by the LIC. The Company was not informed by LIC of the investments made
by the LIC or the Break-down of plan assets by investment type.
8. Poultry Division:
All the consumption of Feeds, Drugs, Vaccines and Medicines upto the
grower stage are being added on the value of birds and shown as "Value
of Livestock" under the fixed assets in the Balance Sheet.
The Cost of Birds thus arrived at is being amortised over remaining
life time of the Birds and is recognized in the Profit and loss
account.
The remaining unamortized value of the Birds is shown as "Unamortised
Value of Live Stock" under the other Current Assets in the Balance
Sheet.
Mar 31, 2010
1. Previous year figures are regrouped, rearranged and reclassified
wherever necessary to facilitate comparison with current years figures
and figures have been rounded off to nearest rupee.
2. Contingent Liability :
a. Export Bills discounted with the State Bank of India, Commercial
Branch, Erode Rs. 2,093.31Lacs. (Previous year Rs. 1,477.44Lacs).
b. Income Tax Liability Rs.43.76 Lacs
c. Service Tax Liability Rs.34.21 Lacs
d. Excise Duty Liability Rs.4.20 Lacs
3. Balances of Sundry creditors and Sundry debtors are subject to
confirmation.
The company has not received any intimation from the suppliers
regarding status under the Micro, Small and Medium enterprises
development Act, 2006 (The Act) and hence disclosure regarding:
a) Amount due and Outstanding to suppliers as at the end of the
accounting year.
b) Interest paid during the year.
c) Interest payable at the end of the accounting year.
d) Interest accrued and unpaid at the end of the accounting year, have
not been provided.
The company is making efforts to get the confirmations from the
suppliers as regards their status under the Act.
4. Additional Information pursuant to the provisions of paragraph (4D)
of part à II of schedule VI to Companies Act, 1956 :
I. Details of Licensed Capacity, installed capacity.
a. Licensed Capacity not applicable.
b. Installed Capacity 6,300 Metric Tonnes per annum.
5. Related Party Disclosures:
i. Sale of Egg Shell grits to SKM Animal Fees and Foods (India) Limited
à Rs.10.15 lacs. (Tonnage 1,083.815 Tons)
ii. Loan received from SKM Universal Marketing co.(India) Ltd., Rs.2.49
crores (Balance payable as on 31.03.2010, Rs. 2.49 crores)
iii. Loan received from Managing Director during the year Rs.4.30
crores (Opening Balance Rs.3.39 crores) and repayment made during the
year Rs.6.78 Crores (Balance payable as on 31.03.2010, Rs.90.89 lacs)
iv. Interest paid to Universal Marketing, Rs.5.46 lacs for the year
2009-2010
v. Interest paid to Managing Director, Rs.25.03 lacs.
vi. Energy Consumed (Electricity) from SKM Siddha & Ayurvedic Medicines
India Pvt. Limited - Rs.6.36 lacs and Honey purchased Rs.44,554/-
(200gms 504 bottle, 100gms 504 bottle, 50gms 504 bottle).
vii. Purchase of Feeds from SKM Animal Feeds and Foods (India) Limited
during the year amounting to Rs. 05.10 Crores (Tonnage: 3,891 Tonnes)
and Purchased DOB for Rs.19,580/- (3.04 Tonnes).
Description of the Relationship Between the Parties à Presumption of
significant influence
6. Loans and Advances includes advance of Rs. 1.86/- Crores (Last Year
- Rs.1.69 Crores) to subsidiary company of SKM Europe BV, the
Netherlands.
7. Provision for Income Tax, Fringe Benefit Tax and Deferred Tax
Liability:
Income Tax:
Provision has been made in respect of Income Tax Liability under the
Provisions of Section 115 JB (Minimum Alternate Tax) of the Income Tax
Act 1961, since there is no Tax liability under the normal provisions
of the Income Tax Act 1961, in view of the fact that the companys
income when computed in accordance with the normal provisions of the
Income Tax Act 1961 is less than 10% of the Book Profits of the Company
because of the higher rate of Depreciation provided at rates specified
in the Income Tax Act 1961. The Provision thus made for MAT Liability
for the current year as well as for the earlier years have been
transferred to MAT Credit Entitlement Account shown under the Current
Assets in the Balance sheet, since the company is entitled to adjust
the asset against the future Tax Liability.
8. No provision has been made in respect of demand of Excise Duties
of Rs.4.20 Lacs and Service Tax of Rs.34.21 Lacs, for which the company
has filed appeals with various Higher Appellate Forums, against the
orders of the Lower Authorities and the company is confident of coming
out successful in the Appeals. Similarly no provision has been made in
respect of Income Tax Liability of Rs.43.76/ - for the Assessment years
2004-2005 and 2007-2008 since appeals have been filed against the order
of the Assessing Officer with the Honourable Commissioner of Income
Tax, Appeals à II, Coimbatore and the company is confident that the
appeals would be decided in favour of the company.
9. The Cess specified under Sub-Section (2) of Section 441A of the
Companies Act 1956, has not been provided for nor paid, in view of the
rate and manner of payment having not yet been notified by the Central
Government.
10. There are no impairment of assets in terms of Accounting Standard
No.28 issued by The Institute of Chartered Accountants of India.
11. Financial and Derivative Instruments:
a. Nominal amount of Derivative contracts entered into by the Company
for hedging currency and outstanding as on 31st March 2010 amounts to
Rs.28,97,03,790/- (Previous Year à 7,14,18,666/-) 41
b. Financial and Derivative contracts entered into by the company
during the year are for only for hedging purposes.
c. Foreign Currency exposure that are not hedged by derivative or
forward contracts as on 31st March 2010 amounts to Rs.Nil (Previous
Year Rs.27,86,850/-)
d. During the year company not entered in any contract for
Speculation.
12. Poultry Division:
All the Consumption of Feeds, Drugs and Vaccines and Medicines up to
the Grower Stage were added with the cost of Birds and shown as ÃValue
of Live Stockà under the Fixed Assets in the Balance Sheet.
The Cost of Birds thus arrived at is being amortised over remaining
life time of the Birds and is recognized in the Profit and loss
account.
The remaining unamortized value of the Birds is shown as "Unamortised
Value of Live Stock" under the Current Assets in the Balance Sheet.