Notes to Accounts of Coastal Roadways Ltd.

Mar 31, 2015

1. CORPORATE INFORMATION

The company is a company incorporated under the Companies Act, 2013. It is engaged in providing road transport services.

2. During the year an amount of Rs. 49,99,691/- (Previous Year Nil) was realized from customers towards Service Tax applicable on services rendered in prior years. The same has been suomoto deposited with tax authorities and accordingly accounted for.

3. Contingent Liability not provided for :

In respect of counter guarantees outstanding Rs. 83,00,000/- (Previous year Rs. 1,05,50,000 /-) given to company''s bankers against performance guarantees issued by them to customers.

4. Employee benefits of short term nature comprising annual encashment of unavailed leave of upto 30 days for each year and medical benefits are recognized as expenses as and when they accrue.

Employee benefits of long term nature comprising gratuity were being accounted for on cash basis. On 20.03.2014 the company has received approval of the Income Tax Authorities for entering into a Group Gratuity Scheme with the Life Insurance Corporation of India which provides for payment of past service liability in installments in 5 years of which 2 annual installments have already been paid till 31.03.2015. The present value of unprovided Gratuity as computed by Actuaries amounted Rs. 15,62,472/- (Previous Year Rs. 19,48,373/-).

Disclosures as per Revised Accounting Standard - 15

5. Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement plan for qualifying employees. The Provident Fund plan is operated by duly constituted and approved independents trustees/ governments. Under the said scheme the Company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the retirement benefit scheme to fund the benefits.

During the year the Company has contributed Rs. 9,12,337/- (Previous Year Rs. 9,23,454/-) for Provident Fund and Pension Fund. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

6. Defined Benefit Plans

(i) The Company makes annual contribution of gratuity to gratuity funds duly constituted and administered by independent trustees and funded with LIC/independent trust for the qualifying employees. The scheme provides for a lump sum payment to vested employees upon retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of 5 years of continuous service.

The present value of defined obligation and related current cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

7. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

8. The Gratuity Scheme is invested in a Group Gratuity - Cum - Life Assurance Cum Accumulation Policy offered by Life Insurance Corporation of India and the Independent Administered Gratuity Fund. The information on the allocations of fund managed by LIC into major assets classes and expected return on each major classes are not readily available. In case of company''s administered trust, 100% allocation of fund has been made towards government securities. The expected rate of return on plan assets is based on the assumed rate of return provided by Company''s actuary.

The Company is expected to contribute Rs. 18.57 Lacs (Previous Year Rs. 15.68 Lacs) to its gratuity fund in 2015-16, subject to the LIC of India''s scheme of repayment of past dues in 5 installments.

The disclosure as required by Para 120 of Accounting Standard - 15 "Employee Benefit" have been made to the extent applicable to the Company.

9. Fixed Deposits with Banks include Rs. 27,60,881/- (previous year Rs. 23,94,141/-) with maturity of more than 12 months being deposits under lien with bank as margin money against non-funded credit facilities.

10. Expenditure on foreign travel Rs. Nil (Previous year Rs. 10,01,445/-) includes expenditure in foreign currency Rs. Nil (previous year Rs. 6,35,312/-).

11. During the year Deferred Tax Liability (net of Deferred tax assets) amounted to Rs. 747675/- which has been set off against the unrecognized value of brought forward deferred tax assets (net of deferred tax liability) Rs. 3236772/-.

12. Disclosure pursuant to Accounting Standard AS-18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India :-

Related Parties

(a) Where Control Exists N.A.

(b) Associates & Joint Ventures 1. Todi Services Ltd

2. Snuk Properties Pvt Ltd

3. Syscon Logistic Services PvtLtd

4. Anupurna Tie Up Pvt. Ltd.

(c) Key Management Personnel 1. Shri Kanhaiya Kumar Todi

2. Shri Sushil Kumar Todi

3. Shri Ashok Kumar Todi

4. Shri Udit Todi

(d) Relatives of Key Smt.Shikha Todi Management Personnel (wife of Shri Kanhaiya Kumar Todi)

(e) Other Related Parties N.A.

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Mar 31, 2014

1. CORPORATE INFORMATION

The company is a company incorporated under the Companies Act, 1956. It is engaged in providing road transport services.

2. Extra Ordinary Item amounting to Rs.1,92,31,350/- (Previous year NIL) during the year represent gain on sale of freehold rural agricultural land at Pethredi, Haryana.

3. Contingent Liability not provided for:

In respect of counter guarantees outstanding Rs.1,05,50,000 /-(Previous year Rs.45,00,000/-) given to company''s bankers against performance guarantees issued by them to customers.

4. Employee benefits of short term nature comprising leave and medical benefits are recognized as expense as and when it accrues. Employee benefits of long term nature comprising gratuity were being accounted for on cash basis. On 20.03.2014 the company has received approval of the Income Tax Authorities for entering into a Group Gratuity Scheme with the Life Insurance Corporation of India. The present value of unprovided Gratuity as computed by LIC Actuaries amounted to Rs.24,53,320/- (Previous Year Rs.23,56,392/-) which has to be paid in 5 years against which the company has paid Rs.5,05,000/- to the Coastal Roadways Limited Employees'' Gratuity Fund during the year ended 31.03.2014.

5. Fixed Deposits with Banks include Rs.23,94,141/- (previous year Rs. 27,32,334/-) with maturity of more than 12 months being deposits under lien with bank as margin money against non-funded credit facilities.

6. Expenditure on foreign travel Rs.10,01,445/- (Previous year Rs. 7,30,993/-) includes expenditure in foreign currency Rs.6,35,312/- (previous year Rs.2,64,719/-).

7. During the year an amount of Rs.83,90,322/- (Previous year Rs.Nil) is estimated to be Deferred Tax Assets on account of unabsorbed depreciation and current business loss. However the same has been recongnised only to the extent of accumulated deferred tax liability already provided for in the books as on 31.03.2013 i.e. Rs.51,53,550/- on account of timing difference for which there is a reasonable certainty of realization.

8. Disclosure pursuant to Accounting Standard AS-18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India :-

Related Parties

(a) Where Control Exists N.A.

(b) Associates & Joint Ventures

1. Todi Services Ltd

2. Snuk Properties Pvt Ltd

3. Syscon Logistic Services Pvt Ltd

4. Anupurna Tie Up Pvt. Ltd.

(c) Key Management Personnel

1. Shri Kanhaiya Kumar Todi

2. Shri Sushil Kumar Todi

3. Shri Ashok Kumar Todi

4. Shri Udit Todi

(d) Relatives of Key Management Personnel

Smt.Shikha Todi

(wife of Shri Kanhaiya Kumar Todi)

(e) Other Related Parties

N.A.

F. The previous year figures have been regrouped/ reclassified wherever necessary.

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Mar 31, 2013

1. CORPORATE INFORMATION

The company is a company incorporated under the Companies Act, 1956. It is engaged in providing road transport services.

2. Contingent Liability not provided for:

i) In respect of counter guarantees outstanding 745,00,000 /-(Previous year 752,00,000/-) given to company''s bankers against performance guarantees issued by them to customers.

ii) Estimated amount of Contracts remaining to be executed on capital account and not provided for 78,99,800/- (Previous year 712,63,800/-).

3. Employee benefits of short term nature comprising leave and medical benefits are reoognized as expense as and when it accrues. Employee benefits of long term nature comprising gratuity is accounted for on cash basis. Actuarial valuation for gratuity liability as on 31st March, 2013 amounts to 737,42,350/- (previous year 738,00,2367-) remains not provided for in accounts in accordance with past practice. However, in compliance to the applicable statutes, the company entered into a Group Gratuity Scheme with the Life Insurance Corporation of India for which necessary application for approvals is pending before the Income Tax authorities.

4. No provision has been made in respect of Sundry Debtors doubtful of recovery 73,09,725/- (Previous year 73,03,592/-) though adequately covered by reserves of the Company.

5. Other advanceiioderCurrent Assets indude 71,12,36,950/- (Previous year 71,30,50,102/-) being hire purchase charges in relation to interest on future installments for purchase of vehicles under installment payment arrangements.

6. Fixed Deposits with Banks include 727,32,334/- (previous year 719,98,978/-) with maturity of more than 12 months being deposits under Tien with bank as margin money against non-funded credit facilities.

7. Expenditure on foreign travel 77,30,993/- (Previous year 710,10,405/-) includes expenditure in foreign currency 72,64,719/- (previous year 76,31,480/-).

8. Trje Provisions of Accounting Standard AS-17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable as the Company''s business activities fall under a single segment viz. Logistic.

9. Disclosure pursuant to Accounting Standard AS-18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India :-

Related Parties

(a) Where Control Exists N.A.

(b) Associates & Joint Ventures 1. Todi Services Ltd

2. Snuk Properties Pvt Ltd

3. Syscon Logistic Services Pvt Ltd

4. Anupuma Tie Up Pvt. Ltd.

(c) Key Management Personnel 1. Shri Kanhaiya Kumar Todi

2. Shri Sushil Kumar Todi

3. Shri Ashok Kumar Todi

4. Shri Udit Todi

(d) Relatives of Key Management Personnel SmtShtkha Todi

(wife of Shri Kanhaiya Kumar Todi)

(e) Other Related Parties N.A.

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Mar 31, 2012

1 Contingent Liability not provided for:

i) In respect of guarantees and counter guarantees outstanding Rs. 52,00,000/- (Previous year Rs. 62,00,000/-)

ii) Estimated amount of Contracts remaining to be executed on capital account and not provided for Rs. 12,63,800/- (Previous year Rs. 12,63,800/-).

2. Employee benefits of short term nature comprising leave and medical benefits are recognized as expense as and when it accrues. Employee benefits of long term nature comprising gratuity is accounted for on cash basis. Actuarial valuation for gratuity liability as on 31st March, 2012 amounts to Rs. 38,00,236/- (previous year Rs. 33,60,954/-) remains not provided for in accounts in accordance with past practice.

3. No provision has been made in respect of Sundry Debtors doubtful of recovery Rs.3,03,592/- (Previous year Rs. 3,30,118/-) though adequately covered by reserves of the Company.

4. Other advance under Current Assets include Rs. 1,30,50,102/- (Previous year Rs. 1,85,96,716/-) being hire purchase charges in relation to interest on future installments for purchase of vehicles under installment payment arrangements.

5. Fixed Deposits with Banks include Rs. 19,98,978/- (previous year Rs. 16,48,525/-) with maturity of more than 12 months being deposits under lien with bank as margin money against non-funded credit facilities.

6. Expenditure on foreign travel Rs. 10,10,405/- (Previous year Rs.3,79,831/-) includes expenditure in foreign currency Rs. 6,31,480/- (previous year Rs. 1,90,246/-).

7. The Provisions of Accounting Standard AS-17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable as the Company's business activities fall under a single segment viz. Logistic.

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Mar 31, 2010

1 Contingent Liability not provided for;

i) In respect of guarantees and counter guarantees outstanding Rs. 62,00,000/- (PreviousyearRs. 48,00,000-)

ii) Estimated amount of Contracts remaining to be executed on capital account and not provided for Rs. 5,47,63,800/- (Previous year Rs. 45,63,B95A).

2. Employee benefits of short term nature comprisihg leave and medical benefits are recognized as expense as and when it accrues. Employee benefits of long term nature comprising gratuity is accounted for on cash basis. Actuarial valuation for gratuity liability as on 31st March, 2010 amounts to Rs. 20,54,879/- (previous year Rs 20,64,1067) remains unprovided in accounts in accordance with past practice

3. No provision for has been made for diminution in the value of Long Term Investments of Rs 10,13,650/-, (Previous year Rs. 10,13,650/-) required as per Accounting Standard AS-13 in respect of 13400 Equity Shares of M/s Incab Industries Ltd., whose market realisable value according to last available quotation on The Calcutta Stock Exchange was Rs. 53,600/-. The said Company has been declared as Sick Company and has gone to BIFR.

5. No provision has been made in respect of Sundry Debtors doubtful of recovery Rs. 6,37,905/- (Previous year Rs. 6,46,018/-) though adequately covered by reserves of the Company.

6. Other advance under Current Assets include Rs. 1,00,68,731/-{Previous year Rs.1,26,83,790/-) being hire purchase charges in relation to interest on future instalments for purchase of vehicles under installment payment arrangements.

7. No interest Income has been recognised for the year on Unsecured Loan of Rs. 78,734/- (Previous year Rs.8,28,734/-) due from M/s. Kanoi Plantation Pvt. Ltd. in view of legal pro- ceedings which are pending in the Honble Kolkata High Court far recovery of the said amount.

8. Fixed Deposits with Banks include Rs. 13,86,225/- [previous year Rs 13, 32, 669/-) being deposits under lien with bank as margin money against non-funded credit facilities.

9 Expenditure on foreign travel Rs 5,17,916/- (Previous years Rs 2,42,932/-) includes expenditure in foreign currency Rs. 3,87.092/- (previous year Rs. 73,125/-)

10. The Provisions of Accounting Standard AS-17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable as the Company fall under a single segment viz. Logistic.

11. Disclosure pursuant to Accounting Standard AS-18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India :

Related Parties

a) Where ControJ Busts

b) Associates & Joint Ventures

c) Key Management Personnel

N.A.

1. Shri Kanhafya Kumar Todi

2. Shrl Sushil Kumar Todi

3. Shrl Ashok Kumar Todi

A. Shri Udit Todi

d) Relatives of Key Management Personnel

N.A

[e) Other Related Parties

N.A.

12. Previous year figures have been regrouped/rearranged wherever necessary