Mar 31, 2018
A. CORPORATE INFORMATION
The consolidated financial statements comprise financial statements of Super Tannery Limited (the company/parent company) and its subsidiaries (collectively, âthe Groupâ) for the year ended 31 March 2018. Group is primarily engaged in the business of manufacturing and trading of Leather and Leather Goods.
The Companyâs a public limited company having its registered office situated at 187/170, jaipur Road, Kanpur â 208010 (UP). The Companyâs equity shares are listed at the Bombay Stock Exchange (BSE)
The financial statements were approved for issue in accordance with a resolution of the directors on May 30, 2018.
Refer note 41(b) (II) & (III) on Interest rate risk and Liquidity Risk respectively.
Security details:-
Term Loan other than Vehicle Loans
Aforesaid Term Loans are secured by hypothecation/mortgage of companyâs moveable and im-moveable properties. Furthe secured by the personal guarantee of promoter Directors of the company.
Vehicle Loans
Secured by hypothecation od vehicle financed.
2 The Scheme of Arrangement (Dmerger)
(a) Pursuant to the Scheme of Arrangement i.e Dmerger (the âschemeâ),duly sanctioned by the National Company Law Tribunal, Bench Allahabad (NCLT) vide Order dated 27.12.2017 with effect from the Appointed Date i.e., April 01, 2017 (as per scheme initially appointed date was 01.04.2015 which was amended to 01.04.2017duly approved), the Goat Tanning Division of the Company stands transferred to and vested in the company for med for the purpose namely âAmin Tannery Limitedâ (the âresulting company) ongoing concern basis at their respective book value.
The certified copy of the order sanctioning the Scheme has been filed with the Registrar of Companies, UP and Uttaranchal on 01.02.2018.The scheme has been considered in these financial statements by transferring the carrying amount of assets and liabilities of the Goat Tannery Division with effect from the Appointed Date. Further, the financial statements for the year ended March 31 2017 have been restated by the management.
3 Disclosure pursuant to Ind AS 19 âEmployee Benefitsâ:
(a) Defined Contribution Plan
The employees of the Company are member so fastate-managed retirement benefit plans namely Provident fund and Pension and Employee State lnsurance (ESI) operated by the Government of lndia. The Company is required to contribute a specified percentage of payroll costs to the retirement benefit and ESI schemes.
The only obligation of the company with respect to such retirement and other benefit plan is to make the specified contributions.
The Company has recognized the following amounts in the lncome Statement during the year under âContribution to staff provident and other fundsâ (refer note 27)
(b) Defined Benefit Plan
The employees Gratuity Fund Scheme, which is a defined benefit plan,is managed by the trust maintained with LIC. The present value of obligation is determined based on actuarial valuation using Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
4 Transition to Ind AS:
These are the Companyâs first financial statements prepared in accordance with Ind-AS.
The Company has adopted lndian Accounting Standards (lnd AS) notified by the Ministry of Corporate Affairs with effect from 1st April,2016, with a transition date of 1stApril,2016. Ind AS 101-âFirst time Adoption of lndian Accounting Standardsâ requires that all lnd AS standards and interpretations that are issued and effective for the first lnd AS financial statements which is for the year ended 31st March,2018 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these lnd AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in lnd AS lOl. As explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the lnd AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).
A. Exemptions and exceptions availed
Set out below are the applicable Ind-AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind-AS.
A.l Ind-AS Optional Exemptions A.1.1 Deemed Cost
Ind-AS 101 permits a first - time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognized in the financial statements as at the date of transition to Ind-AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
A.I.2 Foreign Currency Monetary items
In terms of Para D13AA of Ind AS 101, the Company may continue to account for foreign exchange differences relating to long term foreign currency monetary items as per previous IGAAP. The Company has elected to apply the same.
A.2 Ind-AS Mandatory Exceptions A.2.1 Estimates
An entityâs estimates in accordance with Ind-ASs at the date of transition to Ind-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind-AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind-AS at the date of transition as these were not required under previous GAAP:
A.2.2 De-recognition of financial assets and liabilities
lnd-AS 101 requires a first-time adopter to apply the de-recognition provision so lnd-AS 109 prospectively for transactions occurring on or after the date of transition to lnd-AS. However, lnd-AS101 allows a first-time adopter to apply the de-recognition requirements in lnd-AS109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply lnd-AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.
The company has elected to apply the de-recognition provisions of Ind-AS 109 prospectively from the date of transition to Ind-AS.
A.2.3 Classification and measurement of financial assets
Ind-AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.
A.2.4 Impairment of Financial Assets
Ind AS 101 requires an entity to apply the Ind AS requirements retrospectively if it is practicable without undue cost and effort to determine the credit risk that debt financial instruments where initially recognized. The company has measured impairment losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of cost and effort.
B. Transition to Ind AS Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS, as required under Ind AS 101:
(i) Reconciliation of Balance sheet as at April 1, 2016 (Transition Date);
(ii) Reconciliation of Balance sheet as at March 31, 2017;
(iii) Reconciliation of Total Comprehensive Income for the year ended March 31, 2017;
(iv) Reconciliation of Total Equity as at April 1, 2016 and as at March 31, 2017;
(v) Adjustments to Cash Flow Statements as at March 31, 2017
The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with previous GAAP.
(v) Adjustments to Cash Flow Statements as at March 31, 2017
The lnd AS adjustments are non cash adjustments. Consequently, lnd AS adoption has no impact on the net cash flow for the year ended March 31, 2017 as compared with the previous GAAP.
Notes to Reconciliations:
The following explains the material adjustments made during transition from previous GAAP to Ind AS:
1.Trade receivable
Under previous GAAP the company has recognized provision on trades receivable based on expectation of company. Under lnd AS, the company provides loss allowance on receivable based on the expected Credit Loss (ECL) model which is measured following the âsimplified approach at amount equal to lifetime expected credit loss in addition to debts identified as bad/doubtful at each reporting date.
2. Borrowings
Under previous GAAP transaction cost were recognized in Statement of Profit and Loss. Under lnd AS financial liability inform of borrowing have been measured at amortized cost using Effective Interest Method. However, the same has not resulted in any adjustments required to be made.
3. Government Grants
Under previous GAAP, Government Grants in respect of Property, Plant and Equipment was presented as a deduction from Property, Plant and Equipment. Under lnd AS, Government Grants in respect of Property, Plant and Equipment need to be presented as deferred income in profit or loss on a systematic basis over the useful life of the asset.
Under lnd AS, import duty waivers for capital assets purchased under Export Promotion Credit Guarantee (EPCG) schemes are recorded as deferred revenue and recognized in Statement of Profit and Loss on a systematic basis over the periods in which the related performance obligations are fulfilled.
On the transition date, the Company, therefore, recorded an adjustment to measure such property, plant and equipment in accordance with Ind AS 16. Under Previous GAAP, cost of the property, plant and equipment was recorded at the cash price paid to acquire such assets. Consequently, depreciation relating to the above differences in the cost of property, plant and equipment under Ind AS and Previous GAAP has also been adjusted.
4. Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. lnd-AS12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application no lnd-AS 12 approach has not resulted in any adjustment to deferred tax recognised under previous GAAP.
5. Remeasurement of Defined benefits liabilities
Under previous GAAP the company recognized remeasurement of defined benefits plans under profit and loss. Under lnd AS, remeasurement of defined benefits plans are recognized in Other Comprehensive Income
6. Retained Earnings.
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind-AS transition adjustments.
7. Other Comprehensive Income
Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard enquires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.
5 Expenditure on Corporate Social Responsibility (CSR)
ln pursuance of the provisions of the Companies Act,2013 and CSR Policy of the Company it is required to spend two percent of the average net profits for the three immediately preceding financial years towards CSR activities.
Since the company has earned profits in previous years, gross amount required to be spent by the company towards CSR activities during the year is Rs. 11.25 Lacs.
The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is Rs.11.25 Lacs (previous year: Rs.10.50 Lacs) detailed as under:
6 Disclosure pursuant to Ind AS 17 âLeasesâ:
(a) Where the company is Lessor
i. Operating Lease:
The company has not entered into any non-cancellable Operating Lease.
ii. Finance Lease: The Company has not entered into any finance lease.
(b) Where the company is Lessee
i. Finance Lease:
The company does not have any finance lease arrangement.
ii. Operating Lease: The Company has not entered into any non-cancellable operating leases.
7 Financial Instruments
(i) Capital Management
The Companyâs capital management is intended to create value for shareholders by facilitating the meeting of long â term and short â term goals of the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic
Investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Companyâs policy is aimed at combination of short-term and long-term borrowings.
The capital structure of the company consists of debt, which includes the borrowings including temporary over drawn balance, cash and cash equivalents including short term bank deposits, equity comprising issued capital, reserves and non-controlling interests. The gearing ratio for the year is as under:
(ii) Categories of financial instruments Calculation of Fair Values
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:
a)The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.
b)The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under â lying credit risk of the Company (since the date of inception of the loans).
c) The fair value of loans from banks and other financial in debtedness as well as other non current financial liabilities is estimated by discounting future cash flows using rates currently available for debt or similar terms and remaining maturities.
d) Cash and cash equivalents, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.
(iii) Financial risk management objectives:
The Companyâs principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The main purpose of these financial liabilities is to raise finance for the Companyâs operations. The Company has various financial assets such as trade receivables. Cash and short term deposits, which arise directly from its operations.
The main risks arising from Companyâs financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk.
The Board of Directors review and agree policies for managing each of these risks.
(a) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired
(b) Market risk:
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.
(I) Foreign currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is lndian Rupee. Companyâs exposure is mainly denominated in USD, GBP and Euro. The exchange rates have changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has put in place a Financial Risk Management Policy to identify the most effective and efficient ways of managing the currency risks. The Company uses derivative instruments (mainly foreign exchange forward contracts) to mitigate the risk of changes in foreign currency exchange rate.
The Company do not use derivative financial instruments for trading or speculative purposes.
(II) Interest rate risk:
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates . Any movement in the reference rates could have an impact on the Companyâs cash flows as well as costs. The Company also uses amix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short-term loans.
Interest rate sensitivity analysis:
As at March 31, 2018 interest bearing financial liability (secured loan from banks) stood at Rs.7924.41 Lacs, was subject to variable interest rates.
Increase / decrease of 50 basis points in interest rates at the balance sheet date would result in decrease / increase in profit before tax of Rs.39.62 Lacs.
(Ill) Liquidity risk:
The Company follows a Conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times through a strategy of profitable growth. Efficient working capital management as well as prudent capital expenditure. The Company has a overdraft facility with banks to support any temporary funding requirements.
The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
Liquidity table:
Liquidity tables drawn up based on the cash flows of financial liabilities based on the earliest date on which the Company can be required to pay is disclosed at Note no. 51.
(IV) Other price risk:
The Company is not exposed to any significant equity price risks arising from equity investments, as on 31st March 2018. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.
(V) Equity price sensitivity analysis:
There is no exposure to equity price risks as at the reporting date or as at the previous reporting date.
8 Disclosure pursuant to Ind AS 27 âSeparate Financial Statementsâ
Investments in following subsidiaries and associates is accounted at cost:
9 There is no amount due and outstanding to be credited to Investor Education & Protction Fund as at March 31, 2018.
10 Disclosure pursuant to Ind AS 37 âProvisions, Contingent Liabilities and Contingent assetsâ:
The company has recognised contingent liabilities as disposed in Note 33 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.
11 Disclosure pursuant to Ind AS 105 âNon-current assets held for sale and discontinued operationsâ:
There are no such asset held for sale and discontinued operations on 31 March 2018.
12 Financial Statements of the subsidiary companies and related detailed information will be made available to the investors, of the company and subsidiary companies. seeking such information. The financial statements of the subsidiary companies are also kept at Registered Office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary companies.
Mar 31, 2015
1. Disclosure in terms of AS 15
Defined Benefit Plan
The employees Gratuity Fund Scheme, which is a defined benefit plan, is
managed by the trust maintained with LIC. The present value of
obligation is determined based on actuarial valuation using Projected
Unit Credit Method, which recognises each period of service as giving
rise to additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.
2. The related party disclosure in accordance with AS 18 'Related
Party Disclosures' issued by ICAI, is given below:
A. Relationship
i. SubsidiaryCompany
Aarifi Tanners Limited, Super Tannery (U.K.) Limited, Safety Solutions
s.r.o, Super Corporation Limited
ii. Joint Ventures, Associates & Entities:
Joint Venture: Nil
Associates & Entities : Secure Safety Limited
iii. Key Management Personnel (KMP) & Relatives:
Mr. Iftikharul Amin (Managing Director)
Mr. Iqbal Ahsan (Joint Managing Director)
Mr. Veqarul Amin (Joint Managing Director)
Mr. Imran Siddiqui (Whole-time Director)
Mr. Arshad Khan (Whole-time Director)
Mr. Mohd. Imran (Whole-time Director)
Mr. Mubasherul Amin (Son of Mr. Iqbal Ahsan)
Mr. Tanveerul Amin (Son of Mr. Iftikharul Amin)
Mr. Umairul Amin (Son of Mr. Iqbal Ahsan)
Mr. Khalid Sayeed (Brother of Mr. Imran Siddique)
iv. Other : Enterprise over which KMP or relatives of KMP are able to
exercise significance influence:
Super Shoes Limited, Amin Tannery Limited, Amin Colonizers & Developers
Ltd, Super Tannery FZE, Banthar Industrial Pollution Control Company
Industrial Infrastructure Services (I) Ltd, Super House Limited
B. The following transactions were carried out with related parties in
the ordinary course of business during the year:
3. The Company's operation predominantly comprises only one segment
i.e. Leather and Leather Products; hence provisions of AS-17 on
Segment Reporting is not applicable.
4. During the year under consideration no borrowing cost has been
capitalized by the company in accordance with the provisions of AS-16
on Borrowing Costs.
5. The company has incurred Research & Development expenses during
the year, the same are immaterial and no future economic benefit will
accrue, therefore no expenses have been capitalized.
6. Disclosure in terms of AS-28
The management has carried out an exercise of identifying the assets
that may have been impaired, during the year, in respect of each cash
generating unit. On the basis of review carried out by the management,
there was no impairment loss on fixed assets during the year.
7. Disclosure in terms of AS-29
The company has recognised contingent liabilities as disclosed in Note
39 above and as such no provision is required to be made. No provision
was outstanding as at the beginning and at the end of the year.
8. Confirmation of Balances with Sundry debtors, creditors, loans and
advances and other parties have not been received in few cases.
9. Certain assets of erstwhile Super Agro-Tech Limited (SATL)
acquired pursuant to the scheme of amalgamation sanctioned by Hon'ble
High Court of Judicature at Allahabad, included in the books of the
company remain under the name of SATL pending completion of the certain
formalities. Further to aforesaid certain land at Banthar, Unnao though
used for the business purposes of the company is lying registered in
the name of one of the director of the company.
10. Other Liabilities includes Rs. 2,93,10,000 being advance money
received against sale of land at Dehradoon.
11. The current assets, loans and advances are approximately of the
values stated, if realised in the ordinary course of business. The
provisions for all known liabilities adequate and not in excess of the
amount considered reasonably necessary.
12. The figures of the previous year have been regrouped/rearranged
wherever necessary in order to make them comparable with the figures of
the current year. Figures have been rounded off to the nearest rupee.
Figures in brackets pertain to previous year
Mar 31, 2014
1. Disclosure in terms of AS 15 Defined Benefit Plan
The employees Gratuity Fund Scheme, which is a defined benefit plan, is
managed by the trust maintained with LIC. The present value of
obligation is determined based on actuarial valuation using Projected
Unit Credit Method, which recognises each period of service as giving
rise to additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.
2. The related party disclosure in accordance with AS 18 ''Related
Party Disclosures'' issued by ICAI, is given below:
A. Relationship
i. SubsidiaryCompany
Aarifi Tanners Limited Super Safetywears Limited Super Tannery (U.K.)
Limited Safety Solutions s.r.o Super Corporation Limited
ii. Joint Ventures, Associates & Entities: Joint Venture: Nil
Associates & Entities :
Secure Safety Limited
iii. Key Management Personnel & Relatives:
Mr. Iftikharul Amin (Managing Director)
Mr. Iqbal Ahsan (Joint Managing Director)
Mr. Veqarul Amin (Joint Managing Director)
Mr. Imran Siddiqui (Whole-time Director)
Mr. Arshad Khan (Whole-time Director)
Mr. Mohd. Imran (Whole-time Director)
Mr. Mubasherul Amin (Son of Mr. Iqbal Ahsan)
Mr. Tanveerul Amin (Son of Mr. Iftikharul Amin)
Mr. Umairul Amin (Son of Mr. Iqbal Ahsan)
Mr. Khalid Sayeed (Brother of Mr. Imran Siddique)
iv. Other : Enterprise over which KMP or relatives of KMP are able to
exercise significance influence:
Super Shoes Limited
Amin Colonizers & Developers Ltd
Super Tannery FZE
Banthar Industrial Pollution Control Company
Industrial Infrastructure Services (I) Ltd
3. Contingent liabilities ( Rupees )
Particulars Period
2013-14 2012-13
i. L C issued by the Bank 3,33,85,014 4,55,54,739
ii. Guarantee issued by the
Bank 30,70,454 19,14,704
iii. The detail of disputed dues as per the clause ix (b) of Section
227 (4A) of the Act is as follows:
Income Tax:
CIT Appeals, Kanpur A.Y.
2010-11 63,98,520 63,98,520
CIT Appeals, Kanpur A.Y.
2011-12 14,30,260 -
ITAT Lucknow Bench A.Y. 2007-08 30,54,620 30,54,620
ITAT Lucknow Bench A.Y. 2009-10 2,36,052 2,36,052
(Above claims are likely to be decided in favour
of the company, hence not provided for)
4. The Company''s operation predominantly comprises only one segment
i.e. Leather and Leather Products; hence provisions of AS-17 on Segment
Reporting is not applicable.
5. In the absence of the Notification in the Official Gazette of the
Central Government of India, the cess payable under Section 441A has
not been paid / provided. The payment of cess shall be made in
accordance with the Notification, as and when issued by the Central
Government of India in its Official Gazette.
6. During the year under consideration, no borrowing cost has been
capitalized by the company in accordance with the provisions of AS-16
on Borrowing Costs.
7. The company has incurred in Research & Development expenses during
the year, the same are immaterial and no future economic benefit will
accrue, therefore no expenses have been capitalized.
8. Disclosure in terms of AS-28
The management has carried out an exercise of identifying the assets
that may have been impaired, during the year, in respect of each cash
generating unit. On the basis of review carried out by the management,
there was no impairment loss on fixed assets during the year.
9. Disclosure in terms of AS-29
The company has recognised contingent liabilities as disclosed in Note
39 above and as such no provision is required to be made. No provision
was outstanding as at the beginning and at the end of the year.
10. Confirmation of Balances with Sundry debtors, creditors, loans and
advances and other parties have not been received in few cases.
11. Certain assets of erstwhile Super Agro-Tech Limited (SATL)
acquired pursuant to the scheme of amalgamation sanctioned by Hon''ble
High Court of Judicature at Allahabad, included in the books of the
company remain under the name of SATL pending completion of the certain
formalities. Further to aforesaid certain land at Banthar, Unnao though
used for the business purposes of the company is lying registered in
the name of one of the directors of the company.
12. Other Liabilities includes Rs. 2,93,10,000 being advance money
received against sale of land at Dehradoon.
13. The current assets, loans and advances are approximately of the
value stated, if realised in the ordinary course of business. The
provisions for all known liabilities are adequate and not in excess of
the amount considered reasonably necessary.
14. The figures of the previous year have been regrouped/rearranged
wherever necessary in order to make them comparable with the figures of
the current year. Figures have been rounded off to the nearest rupee.
Figures in brackets pertain to previous year.
Mar 31, 2013
1. Disclosure in terms of AS 15 Defined Benefit Plan
The employees Gratuity Fund Scheme, which is a defined benefit plan, is
managed by the trust maintained with LIC. The present value of
obligation is determined based on actuarial valuation using Projected
Unit Credit Method, which recognises each period of service as giving
rise to additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.
2. The related party disclosure in accordance with AS 18 ''Related
Party Disclosures'' issued by ICAI, is given below: A. Relationship
i. Subsidiary (Wholly owned) Company
Aarifi Tanners Limited Super Safetywears Limited Super Tannery (U.K.)
Limited Safety Solutions s.r.o
ii. Joint Ventures, Associates & Entities: Joint Venture: Nil
Associates : Nil
iii. Key Management Personnel & Relatives:
Mr. Iftikharul Amin (Managing Director)
Mr. Iqbal Ahsan (Joint Managing Director)
Mr. Veqarul Amin (Joint Managing Director)
Mr. Imran Siddiqui (Whole-time Director)
Mr. Arshad Khan (Whole-time Director)
Mr. Mohd. Imran (Whole-time Director)
Mr. Mubasherul Amin (Son of Mr. Iqbal Ahsan)
Mr. Tanveerul Amin (Son of Mr. Iftikharul Amin)
Mr. Khalid Sayeed (Brother of Mr. Imran Siddique)
iv. Other : Enterprise over which KMP or relatives of KMP are able to
exercise significance influence:
Super Shoes Limited
Amin Colonizers & Developers Ltd
Super Tannery FZE
Banthar Industrial Pollution Control Company
Industrial Infrastructure Services (I) Ltd
3. The Company''s operation predominantly comprises only one segment
i.e. Leather and Leather Products; hence provisions of AS-17 on Segment
Reporting is not applicable.
4. In the absence of the Notification in the Official Gazette of the
Central Government of India, the cess payable under Section 441A has
not been paid / provided. The payment of cess shall be made in
accordance with the Notification, as and when issued by the Central
Government of India in its Official Gazette.
5. During the year under consideration no borrowing cost has been
capitalized by the company in accordance with the provisions of AS-16
on Borrowing Costs.
6. The company has incurred in Research & Development expenses during
the year, the same are immaterial and no future economic benefit will
accrue, therefore no expenses have been capitalized.
7. Disclosure in terms of AS-28
The management has carried out an exercise of identifying the assets
that may have been impaired, during the year, in respect of each cash
generating unit. On the basis of review carried out by the management,
there was no impairment loss on fixed assets during the year.
8. Disclosure in terms of AS-29
The company has recognised contingent liabilities as disclosed in Note
39 above and as such no provision is required to be made. No provision
was outstanding as at the beginning and at the end of the year.
9. Confirmation of Balances with Sundry debtors, creditors, loans and
advances and other parties have not been received in few cases.
10. Certain assets of erstwhile Super Agro-Tech Limited (SATL)
acquired pursuant to the scheme of amalgamation sanctioned by Hon''ble
High Court of Judicature at Allahabad, included in the books of the
company remain under the name of SATL pending completion of the certain
formalities. Further to aforesaid certain land at Banthar, Unnao though
used for the business purposes of the company is lying registered in
the name of one of the directors of the company.
11. Other Liabilities includes Rs. 2,93,10,000 being advance money
received against sale of land at Dehradoon.
12. The current assets, loans and advances are approximately of the
value stated, if realized in the ordinary course of business. The
provisions for all known liabilities are adequate and not in excess of
the amount considered reasonably necessary.
13. The figures of the previous year have been regrouped/rearranged
wherever necessary in order to make them comparable with the figures of
the current year. Figures have been rounded off to the nearest rupee.
Figures in brackets pertain to previous year.
Mar 31, 2012
1.1 Term/rights attached to equity shares
The company has only one class of equity shares having a par value of
Rs. 1 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the numberof equity shares held by the
shareholders.
At the annual general meeting held on 30th September 2010, the members
of company have approved a stock split i.e. sub-division each equity
share of the company of the face value of Rs. 21- each as existing on
Record Date, shall stand sub-divided into two equity shares of face
value of Rs. 1/- each fully paid up, and consequently the Authorized
and Paid up Equity Share Capital of the company be changed accordingly.
1.2 Shares held by holding/ultimate holding company and/or their
subsidiaries/associates: NIL
"Corporate loan (INR) from bank carries interest @ 14.25% p.a. The loan
is repayable in 9 regular installments as under:-
a) First6quarterlyinstallmentsofRs.0.50crore.(From31.l2.2011
to31.03.2013)
b) Next 2 quarterly installments of Rs. 0.70 crore. (On 30.06.2013 and
30.09.2013)
c) Last installment of Rs. 0.60 crore. on 30.11.2013
along with interest, from the date of loan, Viz 31.st December, 2011.
The loan is secured by first charge over entire fixed assets (both
present and future, except vehicles financed by other Banks/ Fis) of
the Company. Extension of charge on current assets of the Company.
'Working Capital Loan from State Bank of India is secured by
hypothecation of stocks, Book Debts, Plant & Machineries and equitable
mortgage of Company's land & building and personal guarantee of some
of the directors. Foreign Currency Loan from State Bank of India, Qatar
is secured by providing lien on cash credit limit of the company.
2.1 The company has requested confirmation from Suppliers regarding
their registration (filling of Memorandum) under the Micro, Small and
Medium Enterprises Development Act, 2006 (the Act). According to the
information available with the company there was no amount (principal
and/or interest) due to any micro/small enterprises (SME as defined in
the Act) as at the end of the year. There is no delay in payment to SME
during the year. No interest was paid/payable on account of delay in
payment to SME during the year in terms of Section 16 of the Act.
3.1 There are no amounts due for payment to Investor Education &
Protection Fund under Section 205C of , the Companies Act, 1956 as at
the year end.
4.1 Gross Depreciation for the year is Rs. 3,56,93,914 (Rs.
3,38,97,923) out of which Rs. 2,46,343 (Rs. 2,76,402) being
depreciation on revalued amount, has been adjusted from Revaluation
Reserve as per accounting policy given in the accounting policy of the
depreciation.
4.2 Certain Fixed Assets of the Company were revalued by the Approved
Valuer as on 31st March, 1992. Accordingly value of Fixed Assets of the
Company was increased by Rs. 4,11,23,987 (Land Rs. 1,73,96,063,
Building Rs. 70,44,300 and Plant and Machinery Rs. 1,66,83,624) and the
corresponding amount was credited to the Revaluation Reserve.
In respect of items which are purchased both from indigenous and
imported sources, the identity of individual items consumed cannot be
established but segregation of consumption between imported and
indigenous sources has been made on a reasonable approximation
determined from the Company's records.
5. Acturial valuation of Gratuity as required by Accounting Standard
15 "Employee Benefits" issued by the Institute of Chartered
Accountants of India has not been done by the Company. However on 11th
june, 2009 the company has taken a Group Gratuity Scheme from Life
Insurance Corporation of India.
6. The related party disclosure in accordance with AS 18 ÃRelated
Party Disclosures' issued by ICAI, is given below:
A. Relationship
i. Subsidiary (Wholly owned) Company
Aarifi Tanners Limited
Super Safetywears Limited
Super Tannery (U.K.) Limited
Safety Solutions s.r.o
ii. Joint Ventures, Associates & Entities:
Joint Venture: Nil
Associates & Entities:
Super Shoes Limited Amin Colonizers & Developers Ltd Gentraco India
Exim Ltd Super Tannery FZE
Banthar Industrial Pollution Control Company Industrial Infrastructure
Services (I) Ltd
iii. Key Management Personnel & Relatives:
Mr. Iftikharul Amin (Managing Director)
Mr. Iqbal Ahsan (Joint Managing Director)
Mr. Veqarul Amin (Joint Managing Director)
Mr. Imran Siddiqui (Whole-time Director)
Mr. Arshad Khan (Whole-time Director)
Mr. Mohd. Imran (Whole-time Director)
Mr. Mubasherul Amin (Son of Iqbal Ahsan)
Mr. Tanveerul Amin (Son of Iftikharul Amin)
Mr. Khalid Sayeed (Brother of Imran Siddique)
7. Contingent liabilities 2011-12 2010-11 Contingent Liabilities in
respect of:
i. Guarantees issued by the Bank NIL NIL
ii. Foreign Bills negotiated/Purchased with Bankers 9,02,50,013
8,36,19,900
Above claims are likely to be decided in favour of the company, hence
not provided for.
8. The Company's operation predominantly comprises only one segment
i.e. leather and leather Products, therefore, Segment Reporting as per
Accounting Standard (AS-17) issued by the Institute of Chartered
Accountants of India is not applicable.
9. In the absence of the Notification in the Official Gazette of the
Central Government of India, the cess payable under Section 441A has
not been paid / provided. The payment of cess shall be made in
accordance with the Notification, as and when issued by the Central
Government of India in its Official Gazette.
10. During the year under consideration no borrowing cost has been
capitalized by the company in accordance with the Accounting Standard
16 Borrowing Cost' issued by the Institute of Chartered Accountants
of India.
11. The company has incurred in Research & Development expenses during
the year, the same are immaterial and no future economic benefit will
accrue, therefore no expenses have been capitalized.
12. Disclosure in terms of AS 28
The management has carried out an exercise of identifying the assets
that may have been impaired, during the year, in respect of each cash
generating unit. On the basis of review carried out by the management,
there was no impairment loss on fixed assets during the year.
13. Disclosure in terms of AS 29
The company has recognised contingent liabilities as disclosed in Note
39 above and as such no provision is required to be made. No provision
was outstanding as at the beginning and at the end of the year.
14. Confirmation of Balances with Sundry debtors, creditors, loans and
advances and other parties have not been received in few cases.
15. The figures of the previous year have been regrouped/rearranged
wherever necessary in order to make them comparable with the figures of
the current year. Figures have been rounded off to the nearest rupee.
16. Other Liabilities includes advance money received against land at
Dehradoon.
17. Certain assets of erstwhile Super Agro-Tech Limited (SATL)
acquired pursuant to the scheme of amalgamation sanctioned by Hon'ble
High Court of Judicature at Allahabad, included in the books of the
company remain under the name of SATL pending completion of the
relevant formalities.
Likewise, certain land at banthar, Unnao is lying registered in the
name of some the Directors of the Company. .
18. Previous Year Figures
The financial statements for the year ended 31 st March, 2011 had been
prepared as per the then applicable, pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of revised Schedule
VI under the Companies Act, 1956 the financial statements for the year
ended 31 st March,2012 are prepared as per revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year's classification. The adoption of revised
Schedule VI for the previous year figures does not impact recognition
and measurement principles followed for preparation of financial
statements.
Mar 31, 2010
1. Estimated amount of contracts remaining to be executed on capital
account Rs.200 lacs (Rs. 250 lacs) against which advances have been
paid Rs. 28.78 lacs (Rs. 120.80 lacs).
2. Contingent liability on account of:
31st March, 2010 31st March. 2009
a. Foreign Bills negotiated/
Purchased with Bankers 6,82,22,248 1,94,65,835
b. Bank Guarantee 4,25,000 15,95,000
c. Electricity Demand Pending
litigation NIL 58,60,703
3. Equity Share Capital includes:
5,00,000 Shares of Rs.2/- each allotted as fully paid up pursuant to a
contract without the payment being received in cash;
22,50,000 Shares of Rs.2/- each allotted as fully paid up Bonus Shares
by capitalization of General Reserve;
29,95,560 Shares of Rs.2/- each allotted as fully paid up pursuant to
the Scheme of amalgamation to the erstwhile Share Holders of Super
Agro-tech Limited.
1,53,000 Shares of Rs. 21- each forfeited and re-issued to the
promoters of the company.
3,59,91,120 Shares of Rs. 21- each allotted as fully paid up Bonus
Shares by capitalization of Share Premium Reserve.
4. At the annual general meeting held on 30th September 2009, the
shareholders of the company approved issue of Bonus Equity Shares in
the ratio 1:2. The record date was fixed by the Board of Directors of
the Company on 9th February, 2010. Accordingly the shares were credited
to the eligible share holders as per record date. Pursuant to the
provisions of Accounting Standard - 20 "Earning per Share", figures in
respect of Earning per Share for the last year has been disclosed at
Restated Value.
5. Working capital Loan from State Bank of India is secured by
hypothecation of stocks, Book Debts, plant and machineries and
equitable mortgage of Companys land and building and personal
guarantee of some of the directors. Term-loan from State Bank of India
is secured by equitable Mortgage of Companys Land and Building at
Leather Technology Park, Banthar, Unnao and personal guarantee of some
of directors. Secured loans-others (Vehicle loan) is secured against
hypothecation of respective Vehicles.
6. Rupee Term Loan includes a sum of Rs. 39.46 lacs (Rs. 133.44 lacs)
due for payment within one year and Foreign Currency Loan amounting to
Rs. 270.30 Lacs has been paid during the year.
7. The current assets, loans and advances are approximately of the
value stated, if realized in the ordinary course of business. The
provisions for all known liabilities are adequate and not in excess of
the amount considered reasonably necessary.
8. Acturial valuation of Gratuity as required by Accounting Standard
15 "Employee Benefits" issued by the Institute of Chartered Accountants
of India has been done by the Company. However on 11th June, 2009 the
company has taken a Group Gratuity Scheme from Life Insurance of India.
9. Certain Fixed Assets of the company were revalued by approved
valuer as on 31st March, 1992. Accordingly value of Fixed assets of the
company was increased by Rs. 411.24 Lacs (Land Rs. 173.96 Lacs.
Building Rs. 70.44 Lacs & Plant and Machinery Rs. 166.84.Lacs) and the
corresponding amount was credited to the Revaluation Reserve.
10. Gross depreciation for the year is Rs. 3,29,79,931 (Rs.
2,86,02,285) out of which Rs. 3,10,667 (Rs: 3,49,769) being
depreciation on revalued amount, has been adjusted from Revaluation
Reserve as per accounting policy given in the accounting policy of the
depreciation.
11. The company has requested confirmation from suppliers regarding
their registration (filing of Memorandum) under the Micro, Small and
Medium Enterprises Development Act, 2006 (the Act). According to the
information available with the company there was no amount (principal
and/or interest) due to any micro/small enterprises (SME as define in
the Act) as at the end of year. There is no delay in payment to SME
during the year. No interest was paid/payable on account of delay in
payment to SME during the year in terms of the Section 16 of the Act.
12. Pursuant to the exemption under Section 211(4) of the Companies
Act,1956 obtained from Government of India Ministry of Corporate
Affairs, vide order No. 46/99/201 OtCL-III dated 4/5/2010 the company
is not required to disclose quantitative details of paras 3(ii) (a) (I)
and 3(ii) (d) of part II of Schedule VI to the CompaniesAct, 1956.
13. Certain assets of erstwhile Super Agro-Tech Limited (SATL)
acquired pursuant to the scheme of amalgamation sanctioned by Honble
High Court of Judicature at Allahabad, included in the books of the
company remain under the name of SATL pending completion of the
relevant formalities. Likewise, certain land at Banthar, Unnao is lying
registered in the name of some of the Directors of the Company.
14. Sundry creditors for capital goods includes advance money received
against land at Dehradoon.
15. The Companys operation predominantly comprises only one segment
i.e. leather and leather Products, therefore, Segment Reporting as per
Accounting Standard (As-17) issued by the Institute of Chartered
Accountants of India is not applicable.
16. The Company has accounted deferred tax liability i.e. difference
of taxable income and accounting income, comprising tax effect of
timing difference as under:-
17. In the absence of the Notification in the Official Gazette of the
Central Government of India, the cess payable under Section 441A has
not been paid / provided. The payment of cess shall be made in
accordance with the Notification, as and when issued by the Central
Government of India in its Official Gazette.
18. During the year under consideration no borrowing cost has been
capitalized by the company in accordance with the Accounting Standard
16. Borrowing Cost issued by the Institute of Chartered Accountants
of India.
19. The company has incurred in Research & Development expenses during
the year, the same are immaterial and no future economic benefit will
accrue, therefore no expenses have been capitalized.
20. Disclosure in terms of AS 28
The management has carried out an exercise of identifying the assets
that may have been impaired, during the year the respect of each cash
generating unit. On the basis of review carried out by the management,
there was no impairment loss on fixed assets during the year.
21. Interest includes Rs. 17,44,643 (Rs. 54,24,084) being interest on
fixed period loans.
22. Confirmation of Balances with Sundry debtors, creditors, loans and
advances and other parties have not been received in few cases.
23. Disclosures in terms of AS 29.
The company has recognized contingent liabilities as disclosed in Note
No. B-2 above and as such no provision is required to be made. No
provision was outstanding as at the beginning and at the end of the
year.
24. Figures in brackets pertain to previous year.
25. The figures of the previous year have been regrouped/rearranged
wherever necessary in order to make them comparable with the figures of
the current year.
26. Figures have been rounded off to the nearest rupee.
27. Information pursuant to provisions of Part IV of Schedule VI of
the Companies Act, 1956, is attached. Signature to Schedules 1 to 19