Sep 30, 2014
1. (i) In terms of the Scheme of rehabilitation sanctioned by BIFR (the
scheme) 8.25% redeemable cumulative preference shares are redeemable in
five annual installments commencing from March, 2017.
(ii) 435 Equity shares for which calls were in arrears, were forfeited
in the previous year.
(iii) Equity share capital include 4200 equity shares amounting to
Rs.0.42 lacs issued in terms to the Scheme against fractional
entitlement of shares to a person authorised by the Board to hold these
shares in trust and sell the same to distribute the proceeds to the
shareholders against their fractional entitlements of shares.
iv) Terms and Rights attached to equity shares:
The company has one class of equity shares having par value of Rs. 10
per share. Each share holder is eligible for one vote per share held.
The dividend proposed by the board of directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, In
the event of liquidation the equity share holder are eligible to
receive the remaining assets after discharging all liabilities of the
Company, in proportion to their shareholding.
v) Terms and Rights attached to Redeemable Cumulative Preference
Shares (RCPS) :
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting. In the
event of liquidation of the company before redemption of the RCPS, the
holders of RCPS shall have priority over equity shareholders in the
payment of dividend and repayment of capital.
2. (i) The cash credit from bank, term loans from bank and Arcil
including non-fund based facilities retained for tea operation are
secured / to be secured by first charge over the immoveable properties
(both present and future), moveable fixed assets (both present and
future) and current assets (both present and future) and secured by way
of personal guarantee of one of the Director of the Company.
Further, term loans from bank is secured by pledge of shares of the
Company held by other body corporates and one of the Director and
collateral security of flat of another body corporate.
(ii) Term Loans from Bank:
a) Working Capital Term Loan of Rs. 2026.25 lacs (Rs.1466.30 lacs
included in current maturities of long term borrowings) is repayable
as: Rs. 530.50 lacs on 30th September, 2014, Rs. 655.80 lacs on 31st
March, 2015, Rs. 280 lacs on 30th September, 2015, Rs.280 lacs on 31st,
March 2016, Rs. 279.90 lacs on 30th September, 2016 and carries
interest of 4.80% per annum above base rate of SBI at monthly rests.
b) Funded Interest Term Loan (interest free) of Rs.599 lacs (Rs.359.00
lacs included in current maturities of long term borrowings) is
repayable in five equal half yearly installments of Rs.120 lacs each on
30th September and 31st March.
(iii) In terms of the BIFR order dated 22nd January, 2014, term loan
from ARCIL of Rs.1137 lacs (Rs.758 lacs included in current maturities
of long term borrowings) is repayable in three yearly installments of
Rs.618 lacs (including interest of Rs.239 lacs) commencing from 30th
September, 2014 (extended from 15th March, 2013). However, ARCIL has
preferred an appeal before AAIFR against the extension granted to the
Company for repayment of loan.
(iv) Current maturities of Long term borrowings include Rs.1029.50 lacs
and interest accrued and due (shown under Note 5(b)) includes Rs.289.93
lacs which have fallen due for payment on 30th September, 2014 in terms
(ii) & (iii) above.
(v) Current maturities of Long term borrowings has been disclosed under
Other Current Liabilities (Refer Note 5(b)).
(vi) The amount payable to the secured lenders as One Time Settlement
(OTS) in terms of the scheme has been deposited in Escrow with the SBI
(the Monitoring Agency appointed by BIFR), as per the stipulations in
the scheme. All the lenders excepting PICUP have accepted the payment
and the charges and securities against the loan given by them have been
released / yet to be released.
3. (i) Unsecured creditors of Rs.590.28 lacs (as on 30.9.2014 Rs.577.85
lacs) (Rs.381.09 lacs included in Current maturities of Other Long term
Liabilities) are payable in three equal annual installments after a
moratorium of one year from the date of sanction of the Scheme.
(ii) Unsecured advances from bodies corporate and 15% OCD of Rs.758.81
lacs (as on 30.9.2014 Rs.682.87 lacs) (Rs. 429.94 lacs included in
Current maturities of Other Long term Liabilities) is repayable in
three equal annual installments after a moratorium of one year from the
date of sanction of the Scheme.
(iii) Current maturities of Other Long term Liabilities pertaining to
(i) and (ii) has been disclosed under Other Current Liabilities (Refer
Note 5(b)).
(iv) Amount payable for hire purchase loans is due for payment and will
be adjusted against the subsidies available from Tea Board.
(v) The liability in respect of (ii) above is payable out of the funds
provided by Kanpur Fertilizers and Cement Limited (KFCL) pursuant to
the Scheme on transfer of Fertiliser Undertaking.
4. (i) Current maturities of Other Long term liabilities include
Rs.361.33 lacs due against unsecured creditors and liabilities as given
in Note 5(a)(i)&(ii)) above.
(ii) The amount of unclaimed refund warrants has been kept deposited in
separate bank a/c shown under other bank balances.(Note 14)
(iii) Security deposits and advances includes Rs.4888.11 lacs (Previous
Year Rs.3827.32 lacs) being advance financing against sale of tea.
(iv) The Company has sought confirmation from the suppliers confirming
their status under "The Micro Small and Medium Enterprises Development
Act, 2006" To the extent information is available with the Company,
there are no suppliers covered under the said Act.
(v) Refer Note 28 also.
(vi) # Investments net of diminution of Rs. 29021 lacs (Previous Year
Rs. 27843 lacs)
(vii) ## Market Quotations in respect of Non-Traded shares are not
available since long. Therefore market values of these investments have
not been stated.
(viii) During the year advance towards equity participation of Rs.
1163.94 lacs(Santipara Tea Company Ltd. Rs.853.78 lacs and Pentonville
Software Ltd. Rs.310.15 lacs) and loans and deposits of Rs.14.06 lacs
recoverable from Pentonville Software Ltd. have been converted into
equity shares of the respective companies.Physical/demat shares have
not been received.However, necessary formalities for issue of shares
etc.is yet to be completed.
5. (i) Loans and deposits includes Rs.1780.80 lacs (Previous Year
Rs.1721.47 lacs) outstanding from Santipaia Tea Company Ltd. (STCL).
Considering the strategic involvement and consequential restructuring
etc., no provision has been considered necessary in this respect.
(ii) Refer Note 28 also.
(iii) Loans and deposits include Rs.1685 lacs (Previous Year Rs.1685
lacs included in Long Term Loans and Advances) given to Andhra Cements
Limited (ACL) in earlier years in terms of the scheme of rehabilitation
of ACL is recoverable from ISG Traders Ltd.by March, 2015 in terms of
the agreement in this respect.
(iv) Refer Note 28 also.
(vi) Negotiations in respect of wage rate for tea workers due for
revision with effect from 1.4.2014 have not yet been concluded. Pending
this, wages for the period from April 2014 to September 2014 has been
recognized based on the rates prevailing till 31.3.2014.Impact of the
revision, if any, for the said period, will be given effect to on
finalization of the same.
(vii) Refer Note 27 also.
6. Related Party disclosures pursuant to Accounting Standard - 18.
List of Related Parties with whom the Company had transaction:
(a) Subsidiaries
Dail Consultants Ltd (DCL), North India Fertiliser Ltd. (NIFL), Leyden
Leasing and Financial Services Ltd (LLFSL), and Pentonville Software
Ltd (PSL).
(b) Associate / Group Company
ISG Traders Limited (ISG),Santipara Tea Co Limited (STC)
(w.e.f.28.03.2014)
(c) Key Management Personnel
Mr. G. P. Goenka, Wholetime Director, Mr. A. K. Goel, Wholetime
Director (till 31.12.2013), Mr. S. P. Gupta, Executive Director (till
15.05.2012). Mr. M.H.Chinoy, Wholetime Director, (w.e.f. 01.01.2014)
and Mr. Rajesh Sharma, Managing Director (w.e.f.27.09.2014).
7. Notes:
(i) Previous year figures are given in brackets.
(ii) The above Related Party Information is as identified by the
Management and relied upon by the auditors.
(iii) In respect of the above parties, there is provision for doubtful
debts of Rs. 103.72 lacs as on 30.09.2014 (Previous Year. Rs. 427.94
lacs) out of which Rs. Nil (Previous Year. Rs. Nil) has been written
back during the year.
(iv) Reference is invited to Note 10(a) and (b).
Defined Benefit Scheme
The employee''s gratuity, superannuation and provident fund (other than
those covered and contributed under Employee''s Provident Fund
Organization) Scheme are defined benefit plans. The present value of
obligations are determined based on actuarial valuation using the
Projected Unit Credit Method, which recognizes 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. The
obligation for Leave Encashment is recognized in the same manner as
gratuity.
8. Notes:
i) Assumptions relating to future salary increases, attrition, interest
rate for discount & overall expected rate of return on Assets have been
considered based on relevant economic factors such as inflation, market
growth & other factors applicable to the year/period over which the
obligation is expected to be settled.
ii) The Guidance issued by the Accounting Standard Board (ASB) on
implementation AS-15, Employees benefit (Revised 2005) states that
provident funds set up by employers which requires interest shortfall
to be met by the employer, needs to be treated as defined benefit plan.
The fund does not have any unprovided existing deficit or interest
shortfall.
(c) During the year gratuity trust vide ltr dt 10.07.2014 from the
office of the Commissioner of Income Tax, Kolkata-II, Kolkata has been
dissolved and proceeds of Rs.809 lacs from the same has been shown as
recoverable from Fund to be utilized for repayment of gratuity
liability shown as above.
(d) The scheme for superannuation benefit to employees has ceased with
effect from 31st July, 2003 and the liability existing as on that date
is repayable to the eligible employees at specified return of 5% per
annum on their retirement. The scheme being presently not in operation
and the company''s liability now being restricted to the shortfall in
interest thereon if any, the liability in this respect as determined by
the actuary is charged to profit and loss account as employee benefit
on year to year basis.
9. (a) The Company having negative networth, is a sick industrial
company under the provisions of the Sick Industrial Companies (Special
Provisions) Act, 1985 (SICA). The Rehabilitation Scheme (the Scheme)
sanctioned by the Board for Industrial and Financial Reconstruction
(BIFR) is under implementation. Considering this and pending
ameliorative steps and prospects thereof, the accounts of the Company
has been prepared on going concern basis.
(b) Rehabilitation measures approved by the BIFR include reduction of
Equity Share Capital and 8.25% Redeemable Cumulative Preference Share
Capital by 60 % amounting to Rs.3763.36 lacs and consolidation thereof
at their original face value, reduction of 0.001 % Redeemable
Cumulative Preference Share Capital by Rs.16598.33 lacs, issuance of
further equity capital to the promoters of Rs.4221 lacs including
conversion of existing unsecured loans of Rs.3055.50 lacs from them
into equity post reduction and consolidation of the existing equity
share capital and transfer of capital redemption reserve amounting to
Rs.1500 lacs to the Surplus of the Company.
(c) Post reduction and consolidation as required in terms of the
scheme, equity Shares of Rs.10/- each amounting to Rs. 3947 lacs
(including Rs.525 lacs during the year) have been issued to the
promoters / associates and issuance of further equity shares on receipt
of balance contribution to the extent of Rs.274 lacs from the promoters
/ associates is under implementation.
10. In respect of dues of provident fund, during the year the
authorities have granted permission for payment of dues of Rs.2086.23
lacs (As on 30.09.2014 Rs.1908.83)(Rs.1535.70 lacs included in other
long term liabilities) in 72 equal monthly installments. However, the
necessary application for grant of waiver of the penal interest and
damages is pending before the relevant authority.
11. In respect of levy of salami by the Government of West Bengal on
renewal of lease of tea estates in certain circumstances and pursuant
to the decision of Hon''ble High Court at Calcutta in a similar matter,
the Company has preferred an appeal against the said imposition before
the appropriate authority. Accordingly, pending finalization of the
matter, Rs.811.67 lacs (Previous year Rs. 811.67 lacs) has not been
provided for in this respect which would be payable in equal annual
installments over the lease period i.e. 30 years. However, this is not
likely to have revenue impact, since the same will be capitalized to
the cost of land as and when paid by the Company.
12. Remuneration amounting to Rs.719.30 lacs (including Rs.196.68 lacs
for the twelve months period) paid to the current Managing Director /
Wholetime Directors and ex-wholetime director / ex-Managing Directors /
ex Executive Director are pending approval of Central Government.
13. Certain debit and credit balances including advances, trade
receivables, trade payables and other liabilities are subject to
confirmation and reconciliation thereof.
14. The Company operates in single business segment of Tea in India
and therefore disclosure requirements of AS-17 on Segment Reporting is
not applicable.
15. In accordance with Accounting Standard 22 ''Accounting for taxes on
Income'', the company has accounted for deferred tax. The company has
significant amount of carried forward losses and depreciation under the
Income Tax Act, 1961. However, as a matter of prudence deferred tax
asset has been recognised to the extent of deferred tax liability.
16. Contingent liabilities and commitments to the extent not provided
for :
(Rs. In lacs)
Year Ended 30th Period Ended 30th
September, 2014 September, 2013
a) Guarantees (excluding since
released) given by the Company
on behalf of bodies corporate
Limit 860.00* 860.00*
Amount Outstanding 860.00* 860.00*
b) Guarantees given by Bank
on behalf of the Company 500.89 347.71
c) Cumulative Dividend on
Preference Shanes 783.75 752.40
d) Claims against the Company
not acknowledged as debts (to the
extent ascertainable from
available records)
i) Income / Agriculture Tax
matters pending in appeal at
various stages (other than 88.83 88.83
matters awaiting quantification
by assessing authorities and/ or
with favourable appellate
decisions for earlier years,
against which further appeals
are pending)
ii) Sales Tax matters under
appeal (to the extent
ascertained) 61.05 252.22
e) A show cause notice issued
in 1986 in respect of erstwhile
tobacco division taken up for
hearing by the adjudicator.
The management is of the view
that in accordance with the
Scheme of Arrangement approved Not Not
by Calcutta High Court, ascertainable ascertainable
liabilities relating to Excise
stood vested from 1st
April, 1984 to New Tobacco
Company Ltd. (NTC) pursuant to
transfer of tobacco business to
the said NTC effective that date.
Future cash out flow in respect of d) & e) is dependent upon the
outcome of judgments/decisions.
*The above figure does not include interest payable in respect of a
body corporate as it is not ascertainable.
16.1 Estimated value of Capital Commitments (Net of Advances Rs.Nil
Previous Year Rs. 7.51 lacs) - Rs.Nil (Previous Year Rs.68.19 lacs).
16.2 Expenditure in Foreign Currency on account of:
* Foreign Travel Rs.23.16 lacs (Previous Year Rs.9.59 lacs).
17.(a) Figures for the period ended 30th September, 2013 relates to the
period of 18 months and therefore, these are not comparable with
figures of current year.
(b) The previous period figures have been reclassified / regrouped /
rearranged to make it comparable with the current year''s figures.
1. No part of Subsidiaries'' Profits / (Losses) has been dealt with in
the Company''s Accouts.
2. There has been no change in the Company''s interest in the
Subsidiaries between the end of their financial years and that of the
Company.
3. Material changes in respect of Fixed Assets etc of Subsidiary
Companies between the close of their financial years and that of the
Company - Not Applicable.
Sep 30, 2013
1. (a) Exceptional item for the year ended 31st March, 2012
represents income arising on adjustments consequent to the settlement
of loans and liabilities (other than those pertaining to fertilizer
undertaking demerged to Kanpur Fertilizers and Cement Ltd. (KFCL)) and
net of charges on account of diminution in value of Investments.
(b) Profit from Discontinuing operation for the year ended 31st March,
2012 represents income arising on adjustments consequent to the
settlement of loans and liabilities pertaining to fertilizer
undertaking demerged to KFCL.
2. Prior period adjustment represents:
a. Subsidy on DAP, Interest and Other charges pertaining to fertilizer
undertaking transferred to KFCL amounting to Rs. 128.29 lacs.
b. Rs. 33.23 lacs being reversal on account of interest on Provident
Fund.
c. Rs. 4.94 lacs being reversal on account of other liabilities.
3 .1 Related Party disclosures pursuant to Accounting Standard  18.
List of Related Parties with whom the Company had transaction:
(a) Subsidiaries
Dail Consultants Ltd (DCL), North India Fertiliser Ltd. (NIFL), Leyden
Leasing and Financial Services Ltd (LLFSL) , and Pentonville Software
Ltd (PSL).
(b) Associate/Group Company
ISG Traders Limited (ISG)
(c) Key Management Personnel
Mr. G. P. Goenka, Wholetime Director, Mr. A. K. Goel, Wholetime
Director, and Mr. S. P. Gupta, Executive Director ( till 15.05.2012) .
4.1 (a) The Company is a sick industrial company under the provisions
of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA)
and the Rehabilitation Scheme (the Scheme) sanctioned by the Board for
Industrial and Financial Reconstruction (BIFR) is under implementation.
(b) The Company''s appeals filed before the Appellate Authority (AAIFR)
for rectification of certain inadvertent errors in the Scheme has been
allowed and BIFR has carried consequential modifications / corrections
in the scheme vide its order dated 25th April, 2013 issued on 9th
May,2013.
4.2 (a) Rehabilitation measures approved by the BIFR include reduction
of Equity Share Capital and 8.25% Redeemable Cumulative Preference
Share Capital by 60 % amounting to Rs 3763.36 lacs and consolidation
thereof at their original face value, reduction of 0.001 %Redeemable
Cumulative Preference Share Capital by Rs 16598.33 lacs, issuance of
further equity capital to the promoters of Rs.4221 lacs including
conversion of existing unsecured loans of Rs.3055.50 lacs (Previous
Year Rs 3055.50 lacs) from them into equity post reduction and
consolidation of the existing equity share capital and transfer of
capital redemption reserve amounting to Rs 1500 lacs to the Surplus of
the Company.
(b) Consequent to the above, reduction of share capital of the Company
and transfer of Capital Redemption Reserve has been given effect to in
these accounts by corresponding adjustment to carried forward losses to
the extent of Rs. 21861.69 lacs and the equity share capital and the
preference share capital so reduced has been consolidated.
(c) Post reduction and consolidation as required in terms of the
scheme, equity Shares of Rs 10/- each amounting to Rs 3422 lacs has
been issued during the period to the promoters / associates and
issuance of further equity shares on receipt of balance contribution to
the extent of Rs 799 lacs from the promoters / associates is under
implementation.
(d) In terms of the Scheme sanctioned by the BIFR , the fertiliser
undertaking has been de-merged and transferred to Kanpur Fertilizers
and Cement Ltd ( KFCL) w.e.f. 1st October,2010. In consideration of
transfer, KFCL has issued 1 (one) equity share of Rs.10 each fully paid
up for every 40 (forty) equity shares of Rs.10 each (post reduction and
consolidation as above) held by the equity shareholders of the Company
at the record date specified for the purpose.
5. In respect of the dues of the provident fund, the necessary
application has been filed before the relevant authority for grant of
waiver of the penal interest and damages and payment thereof in 72
monthly installments. The application made before Hon''ble BIFR for
issuance of necessary direction in this respect is pending.
6. In respect of levy of salami by the Government of West Bengal on
renewal of lease of tea estates in certain circumstances and pursuant
to the decision of Hon''ble High Court at Calcutta in a similar matter,
the Company has preferred an appeal against the said imposition before
the appropriate authority. Accordingly, pending finalization of the
matter, Rs 811.67 lacs (Previous year Rs. 811.67 lacs) has not been
provided for in this respect which would be payable in equal annual
installments over the lease period i.e. 30 years. However, this is not
likely to have revenue impact, since the same will be capitalized to
the cost of land as and when paid by the Company.
7. Remuneration amounting to Rs. 522.40 lacs (including Rs. 176.20
lacs for the eighteen months period) paid to the current Wholetime
Directors and ex-wholetime directors/ex-Managing Directors/Executive
Director are pending approval of Central Government.
8. The Company operates in single business segment of Tea in India
and therefore disclosure requirements of AS-17 on Segment Reporting is
not applicable.
9. In accordance with Accounting Standard 22 "Accounting for taxes on
Income", the company has accounted for deferred tax. The company has
significant amount of carried forward losses and depreciation under the
Income Tax Act, 1961. However, as a matter of prudence deferred tax
asset has been recognised to the extent of deferred tax liability.
10.1 Estimated value of Capital Commitments (Net of Advances Rs. 7.51
lacs Previous Year Rs. 98.19 lacs)- Rs. 68.19 lacs (Previous Year Rs.
161.31 lacs).
10.2 Expenditure in Foreign Currency on account of:
- Foreign Travel Rs. 9.59 lacs (Previous Year Rs. 3.45 lac).
11. (a) Figures for the period ended 30th September, 2013 relates to
the period of 18 months therefore these are not comparable with the
previous year figures.
(b) The previous year''s figures have been
reclassified/regrouped/rearranged to make it comparable with the
current period figures.
Mar 31, 2012
Terms and Rights attached to equity shares:
The company has one class of equity shares having per value of Rs. 10
per share. Each share holder is eligible for one vote per share held.
The dividend proposed by the board of directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation the
equity share holder are eligible to receive the remaining assets after
discharging all liabilities of the Company, in proportion to their
shareholding.
Terms and Rights attached to preference shares:
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting. In the
event of liquidation of the company before redemption of the RCPS, the
holders of RCPS shall have priority over equity shareholders in the
payment of dividend and repayment of capital.
(i) In terms of the one time settlement (OTS) arrived at in respect of
secured borrowings, cash credit, term loans from bank and loan from
ARCIL has been continued for operations of tea division. The balance
amount of the borrowings from the secured creditors (other than 15%
NCD, OCD and loan from bodies corporate secured by pledge of shares of
ISG Traders Ltd.) have been settled for Rs. 25721 lacs (OTS amount) and
has been transferred to KFCL for payment there against in terms of the
Scheme (Note 29.1( c)).
(ii) Loans and Debentures in earlier years from Financial Institutions,
Banks, ARCIL and other bodies corporate including non fund based
facilities, save and except otherwise stated, against specific balances
under secured loans are secured/to be secured by a pari passu first
charge on the fixed and current assets of the Company. These loans and
facilities are further secured by the personal guarantee of a director
and the pledge of the unencumbered equity shares held by the promoters
in the Company.
OTS amount payable as per (i) above has since been deposited by the
KFCL in Escrow with the SBI, the Operating Agency appointed by BIFR, as
per the stipulations in the scheme. All the lenders excepting ARCIL and
a few other minority lenders (aggregating Rs. 13882 lacs) have since
accepted the payment and released the charges and securities against
the loan given by them. The Company's appeal filed before the AAIFR as
given in Note 29.2 (c) is pending for disposal. Moreover the matter has
also been taken up with the respective lenders for release of the
securities, etc and acceptance of the OTS amount.
(iii) The cash credit from bank, term loan from banks and ARCIL
including non-fund based facilities retained for tea operation are
secured/to be secured by first charge over the immoveable properties,
moveable fixed assets and current assets of Tea Division and security
by way of personal guarantee of one of the Director of the Company.
(iv) 15% Redeemable NCD's, 15% OCD and loan from bodies corporate
secured by pledge of 33,45,000 equity shares of ISG Traders Ltd held by
the Company have been settled for Rs.578 lacs and are repayable within
a period of 90 days (since repaid) from the date of the sanction of the
Scheme.
(v) Unsecured fixed deposits from shareholders and public are repayable
to the extent of 85% of the principal amount of the fixed deposits
within 180 days (since repaid) without carrying any interest in terms
of the Scheme, in full and final settlement of entire outstanding in
this respect.
(vi) Unsecured advances from bodies corporate and 15% OCD is repayable
for Rs 758.81 lacs being 25% value of the principal amount in three
equal annual installments after a moratorium of one year from the date
of sanction of the Scheme.
(vii) Unsecured advances from promoters amounting to Rs. 3055.50 lacs
are to be converted into equity shares at par after reduction of the
existing equity share capital in terms of the Scheme (Note 29.2 (a)).
(viii) Amounts payable as per (iv) to (vi) above have been transferred
to KFCL (Note 29.1(c)). In terms of the Scheme these amounts are
required to be paid through the Company and as such Rs. 7075.76 lacs
payable in respect of these have been included under Other Current
Liabilities and Rs. 758.81 lacs under Other Long Term Liabilities.
Corresponding amount receivable from KFCL have been included under
Other Current Assets.
(ix) In terms of the Scheme, Rs. 3643.75 lacs payable for FRCN has been
transferred to KFCL for full and final settlement in terms of the order
passed by Hon'ble High Court at Calcutta (Note 29.1(c)).
1. Non Current Investments:
(i) # Investments net of diminution of Rs. 27843 lacs (Previous Year
Rs. 23521 lacs).
(ii) Keeping in view of the provisions of Accounting Standard on
Investments (AS 13), the Company's investment in ISG Traders Ltd, an
associate company has been evaluated based on valuation carried out by
an independent firm of chartered accountants and further diminution in
value thereof by Rs. 4322.11 lacs has been recognized in this year and
included under Exceptional Items.
(iii) * Market quotations in respect of Non-Traded shares are not
available since long. Therefore market values of these investments have
not been stated.
2. (a) Long Term Loans and Advances:
(i) Loans and deposits include Rs.1685 lacs (Previous Year Rs.1685
lacs) given to Andhra Cements Limited (ACL) in earlier years. In terms
of the scheme of rehabilitation of ACL, the said loan has been assigned
to Boydell Media Private Ltd., a wholly owned subsidiary of ISG Traders
Ltd and is recoverable by March, 2015 in terms of the deed of
assignment.
(ii) Loans and deposits and advance towards equity participation
includes Rs. 2002.66 lacs (Previous Year Rs. 1577.61 lacs) outstanding
from Santipara Tea Company Ltd. (STCL) of which Rs. 853.79 lacs will be
converted into equity. Considering the strategic involvement and
consequential restructuring etc, provision of Rs. 853.79 lacs made in
earlier years has been considered to be adequate.
3. Exceptional Items:
Exceptional Items (net) Rs. 864.91 lacs represents income arising on
settlement of loans and liabilities amounting to Rs. 5187.02 lacs
(other than those pertaining to Fertiliser Undertaking de-merged to
KFCL) and charges on account of diminution in value of investments
amounting to Rs. 4322.11 lacs.
4. Discontinuing Operations:
Following the sanction of the Scheme by BIFR (Note 29.1(b)), Fertiliser
Undertaking has been de-merged to KFCL w.e.f.1st October, 2010 and
operations pertaining to said undertaking has been discontinued with
effect from the said date. Consequently income of Rs. 72947.20 lacs
arising on settlement of loans and liabilities and Rs. 586.57 lacs on
account of write back of expenses over income for the period from 1st
October, 2010 to 31st March, 2011, after deducting therefrom charges on
account of provisions for other current assets and other charges
pertaining to fertilizer undertaking Rs. 2752.49 lacs has been shown as
profit from discontinuing operations.
5. Expenditure in Foreign Currency on account of:
-Foreign Travel Rs.3.45 lacs (Previous Year Rs.0.52 lac).
6.1 Related Party disclosures pursuant to Accounting Standard -18.
List of Related Parties with whom the Company had transaction:
(a) Subsidiaries
Dail Consultants Ltd (DCL), North India Fertiliser Ltd. (NIFL), Leyden
Leasing and Financial Services Ltd (LLFSL) , and Pentonville Software
Ltd (PSL).
(b) Associate/Group Company
ISG Traders Limited (ISG)
(c) Key Management Personnel
Mr. A. K. Goel, Wholetime Director, and Mr. S. P. Gupta, Executive
Director.
6.2 The aggregate amount of transaction with Related Parties is as
follows:
Notes:
(i) Previous year figures are given in brackets.
(ii) The above Related Party Information is as identified by the
Management and relied upon by the auditors.
(iii) In respect of the above parties, there is provision for doubtful
debts of Rs. 427.94 lacs as on 31.3.2012 out of which Rs. 17.62 lacs
has been written back during the year.
7. (a) The disclosures required under Accounting Standard 15
"Employee Benefits" notified in the Companies (Accounting Standards)
Rules 2006 in respect of tea division are given below:
Defined Benefit Scheme
The employee's gratuity, superannuation and provident fund (other than
those covered and contributed under Employee's Provident Fund
Organization) Scheme are defined benefit plans. The present value of
obligations are determined based on actuarial valuation using the
Projected Unit Credit Method, which recognizes 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. The
obligation for Leave Encashment is recognized in the same manner as
gratuity.
Notes:
i) Assumptions relating to future salary increases, attrition, interest
rate for discount & overall expected rate of return on Assets have been
considered based on relevant economic factors such as inflation, market
growth & other factors applicable to the period over which the
obligation is expected to be settled.
ii) The Guidance issued by the Accounting Standard Board (ASB) on
implementation AS-15, Employees benefit (Revised 2005) states that
provident funds set up by employers which requires interest shortfall
to be met by the employer, needs to be treated as defined benefit plan.
The fund does not have any unprovided existing deficit or interest
shortfall. In regard to any future obligation arising due to interest
shortfall (i.e. in case Government interest to be paid on provident
fund scheme exceeds rate of interest earned on investment), pending the
issuance of the Guidance Note from the Actuarial Society of India, the
Company's actuary has expressed his inability to reliable measures the
same
(c) The scheme for superannuation benefit to employees has ceased with
effect from 31st July, 2003 and the liability existing as on that date
is repayable to the eligible employees at specified return of 5% per
annum. on their retirement. The scheme being presently not in operation
and the company's liability now being restricted to the shortfall in interest
thereon if any, the liability in this respect as determined by the
actuary is charged to profit and loss account as employee benefit on
year to year basis.
8. The Scheme of Arrangement for transfer of the Tea Undertaking of
the Company to Shubh Shanti Services Limited on a going concern basis
with effect from 1st April, 2001 has become infractus in view of the
current Scheme of Arrangement for de-merger of the Fertilizer
Undertaking sanctioned by BIFR as per Note 29.1(b). Necessary step for
withdrawing the petition pending before the Hon'ble High Court at
Calcutta is being taken.
9.1 (a) The Company is a sick industrial company under the provisions
of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
The Rehabilitation Scheme (the Scheme) for revival of the Company has
been sanctioned by the Board for Industrial and Financial
Reconstruction (BIFR) vide its Order dated 16th January, 2012 and the
rehabilitation measures in terms of the Scheme are under
implementation.
(b) In terms the of Scheme of Arrangement sanctioned by the BIFR
pursuant to the Order as given above the Fertiliser Undertaking has
been de-merged and transferred to Kanpur Fertilizers and Cement Limited
(KFCL) w.e.f 1st October, 2010 and the same has become effective on
filing of the Scheme with the Registrar of Companies of the respective
States on 24th January, 2012. Consequent to this all assets and
liabilities, rights and obligations including contingent liabilities,
employees and all legal and other proceedings and operations of the
said division with effect from said date have been transferred to and
vested with KFCL.
(d) Rs. 40317.75 lacs being the deferential amount with respect to
above assets and liabilities have been adjusted against the accumulated
losses of the Company.
(e) Further, other adjustments consequent to the sanction of the Scheme
and settlement of the loans and liabilities etc to the extent these are
relatable to Fertiliser undertaking amounting to Rs.70781.28 lacs (net)
have been shown as profit from discontinuing operation leaving the
balance amount of Rs. 5187.02 lacs (net) which has been shown under
exceptional items (Note 21 & 22).
9.2 (a) The Scheme also envisages reduction of Equity Share Capital
and 8.5% Cumulative Redeemable Preference Share Capital by 60 %
amounting to Rs 3763.36 lacs and consolidation thereafter at their
original face value, 0.001% Cumulative Redeemable Preference Share
Capital by Rs. 16598.33 lacs, issuance of further equity capital to the
promoters of Rs. 4182 lacs including conversion of unsecured loans of
Rs. 3055.50 lacs from them into equity post reduction and consolidation
of the existing equity share capital and transfer of capital redemption
reserve amounting to Rs. 1500 lacs to the surplus of the Company.
(b) KFCL in consideration of transfer as per note 29.1(c) above shall
issue 1 (one) equity share of Rs. 10 each fully paid up for every 40
(forty) equity shares of Rs. 10 each (post reduction and consolidation
as above) held by the equity shareholders of the Company at the record
date to be specified for the purpose.
(c) The Company has preferred appeals for rectification of certain
inadvertent errors in the Scheme which have been admitted by the
Appellate Authority (AAIFR). Necessary effect with respect to (a) and
(b) above will be given on completion of necessary formalities pending
disposal of appeals before AAIFR.
10. In terms of the Scheme, Hon'ble BIFR has directed to waive penal
interest and damages as per rules and policy for late/non payment of
provident fund dues till cut off date i.e. 1.10.2010, and to consider
to allow payment of provident fund dues with statutory rate of simple
interest after moratorium of one year in 36 monthly installments. The
matter is being pursued with the relevant authorities for necessary
approval.
11. The Company had filed a Writ Petition before the Hon'ble High
Court at Calcutta challenging the applicability of Section 274 (1) (g)
of the Companies Act, 1956 and a stay has been granted by the High
Court on this matter. Consequently, as per the legal opinion received,
provisions for the disqualification of directors in terms of the said
Section are not applicable to the Directors of the Company.
12. In respect of levy of salami by the Government of West Bengal on
renewal of lease of tea estates in certain circumstances and pursuant
to the decision of Hon'ble High Court at Calcutta in a similar matter,
the Company has preferred an appeal against the said imposition before
the appropriate authority. Accordingly, pending finalization of the
matter, Rs. 811.67 lacs (Previous year Rs. 811.67 lacs) has not been
provided for in this respect which would be payable in equal annual
installments over the lease period i.e. 30 years. However, this is not
likely to have revenue impact, since the same will be capitalized to
the cost of land as and when paid by the Company.
13. Remuneration amounting to Rs. 597.29 lacs (including Rs. 105.78
lacs for the year) paid to the current Wholetime/Executive Directors
and ex-wholetime directors/ex-Managing Director are pending approval of
Central Government.
14. Consequent to demerger of Fertiliser Undertaking, the Company
operates in single business segment of Tea.
15.1 Contingent liabilities and commitments to the extent not provided
for :
(Rs. in lacs)
Year ended Year ended
31st March, 31st March,
2012 2011
a) Guarantees (excluding since released)
given by the Company on behalf of bodies
corporate Limit 5568.89 5568.89
Amount Outstanding 4010.21 4746.14
b) Guarantees given by Banks on behalf
of the Company 256.12 267.64
c) Cumulative Dividend on Preference Shares 705.38 627.72
d) Claims against the Company not
acknowledged as debts (to the extent
ascertainable from available records)
i) Income/Agriculture Tax matters
pending in appeal 685.84 644.33
at various stages (other than matters
awaiting quantification by assessing
authorities and/or with favourable
appellate decisions for earlier years,
against which further appeals are pending)
ii) Sales Tax matters under appeal 257.52 24.65
(to the extent ascertained)
e) A show cause notice issued in 1986 in respect Not ascertainable Not
ascertainable of erstwhile tobacco division taken up for hearing by the
adjudicator. The management is of the view that in accordance with the
Scheme of Arrangement approved by Calcutta High Court, liabilities
relating to Excise stood vested from 1st April, 1984 to New Tobacco
Company Ltd. (NTC) pursuant to transfer of tobacco business to the said
NTC effective that date.
Future cash out flow in respect of a) to e) is dependent upon the
outcome of judgments/ decisions.
15.2 Estimated value of Capital Commitments (Net of Advances Rs. 98.19
lacs Previous Year Rs. 33.82 lacs) -Rs. 161.31 lacs (Previous Year Rs.
130.30 lacs).
16.1 Consequent to the notifications under the Companies Act,1956, the
financial statements for the year ended 31st March,2012 are prepared
under revised Schedule VI . Accordingly, the previous year's figures
have been reclassified/regrouped/rearranged to make it comparable with
the current year's figures.
16.2 The previous years figures are inclusive of the figures of the
fertilizer undertaking which has been transferred to KFCL in terms of
the scheme for revival of the company sanctioned by the Hon'ble BIFR
(Note 29.1 and 29.2). Accordingly, figures for the current year are not
comparable with the corresponding figures of previous year.
Mar 31, 2010
1. Estimated value of Capital Commitments (Net of Advances Rs. 17.53
lacs Previous Year Rs. Nil) - Rs. 72.48. lacs (Previous Year Rs. 19.00
lacs).
1.1 Contingent Liabilities not provided for in respect of :
(Rs. in lacs)
Year ended Year ended
31st March, 31st March,
2010 2009
a) Guarantees (excluding since released)
given by the Company on behalf
of bodies corporate
Limit 6568.89 6568.89
Amount Outstanding 4406.68 4225.27
b) Guarantees given by Banks on behalf
of the Company 234.09 229.03
c) Cumulative Dividend on Preference Shares 549.18 470.64
d) Claims against the Company not
acknowledged as debts (to the extent
ascertainable from available records)
i) Income/Agriculture Tax matters
pending in appeal 47.32 47.32
at various stages (other than matters
awaiting quantification by
assessing authorities and/or with
favourable appellate decisions for
earlier years, against which further
appeals are pending)
ii) Sales Tax matters under appeal 14.29 14.29
(to the extent ascertained)
iii) Excise matters relating to
Fertiliser operations 86.60 86.60
iv) Claims for interest and
other suppliers etc. 5541.93 5442.13
contested/under negotiation pending
finalisation of the matters
v) In respect of other matters under Not Not
litigation (including workmen claims) ascertainable ascertainable
pending at different stages In respect
of Fertiliser Division
e) A show cause notice issued in
1986 in respect Not Not
of tobacco
division taken up for hearing by the ascertainable ascertainable
adjudicator. The management is of the view
that in accordance with the Scheme of
Arrangement approved by Calcutta High Court,
liabilities relating to
Excise stood vested from 1st
April, 1984 to New Tobacco Company Ltd.(NTC)
pursuant to transfer of tobacco business to the
said NTC effective that date.
2. During the period from 9th August, 2000 to 16th September, 2001,
Kanpur Electric Supply Co. Ltd (KESCO) levied a surcharge for
maintaining independent feeder for the fertiliser plant of the Company
and a claim of Rs. 2463.22 lacs for the said period was made against
the Company. Being aggrieved by the said claim, the Company filed a
writ petition before the Honble Allahabad High Court in the month of
February 2002 and the matter is sub- judice. The company has also
sought waiver of the said claim in the rehabilitation scheme pending
before BIFR as per Note 7 below. Pending final decision in this
respect, no provision has been considered necessary.
3. The Company had issued in November, 1996, Foreign Currency
Convertible Bonds (FCCB) aggregating to Swiss Francs 50 million to
foreign investors with a maturity period of seven years.
The FCCB holders have exercised their put option and proceedings for
the recovery of the outstanding amount of principal and interest along
with additional interest, etc. (amount not ascertained) are pending
before the Honble High Court at Calcutta. The amount payable to FCCB
holders is covered under Rehabilitation Scheme and will be dealt with
while giving effect to the scheme on necessary sanction from BIFR.
Pending this, no further interest on such loan has been accrued.
4. In terms of the Scheme of Arrangement (the Scheme) submitted before
the Honble High Court at Calcutta, the Tea Undertaking of the Company
comprising of the tea business and certain Investments, Loans and
Advances, etc. were proposed to be transferred to and vested in Shubh
Shanti Services Limited on a going concern basis with effect from 1st
April, 2001. The Scheme was approved by the shareholders of the Company
in the General Meeting held on 25th January, 2002 and is pending for
the approval of the Honble High Court. In view of the draft
rehabilitation scheme pending before BIFR as per note 7, steps are
being taken to withdraw the scheme.
5.1 Sundry Creditors include :
à Rs. 404.71 lacs (Previous Year Rs. 280.70 lacs) outstanding in
respect of Fixed Assets Original Cost Rs. 555.16 lacs (Previous Year
Rs. 555.16 lacs) including interest thereon, purchased in terms of Hire
Purchase Agreements.
à Rs. 2342.14 lacs (Previous Year Rs. 876.83 lacs) being advances
received against the sale of tea.
à Rs. 22.92 lacs (Previous Year Rs. 1212.34 lacs) in respect of amounts
advanced by group/associate companies on current account.
5.2 The Company is in the process of identifying the suppliers who are
covered under "The Micro Small and Medium Enterprises Development Act,
2006." Due to non availability of data, especially relating to
Fertilizer division of the Company as given in Note 9 below the details
required as such could not be compiled/furnished.
6. In a reference made by the Company before the Board for Industrial
and Financial Reconstruction (BIFR), the Company has been declared a
sick industrial company under the provisions of the Sick Industrial
Companies (Special Provisions) Act, 1985. The Draft Rehabilitation
Scheme (DRS) has since been submitted to BIFR and Operating Agency on
24th June, 2010. Pending finalisation of the same, which envisages
restructuring of fertilizer business, various reliefs and concessions,
these accounts have been prepared on a going concern basis.
7. (a) The CDR Cell vide its letter dated 29th May, 2008 has approved
the proposal for settlement of loans and debentures from Banks/Financial
Institutions/others, etc.. In terms of said CDR approval, entire Loans
and Debentures from Banks/Financial Institutions/others which were
repayable over a period of 12 years commencing from March, 2008 will be
repaid as a part of the settlement on lump sum basis for Rs. 27155 lacs
(of which Rs. 1434 lacs towards additional working capital loan has
been repaid) leaving a balance of Rs. 6000 lacs, which will be
continued as cash credit/working capital loan in the tea business of
the Company.
(b) Certain loans (included in the above settlement) aggregating
Rs.3605.83 lacs are also to be restructured and settled in line with
CDR approval. However, the respective lenders in this respect are yet
to sanction the proposal.
(c) The Company along with its group company ISG Traders Limited (ISG)
has entered into an Investment Agreement with Jaypee Fertilizers &
Industries Limited (Jaypee) and others to provide necessary financial
and strategic support for rehabilitation of fertiliser business. In
terms of the said agreement, DRS submitted to BIFR as per note 7 above
envisages de-merger of Fertiliser Undertaking on going concern basis to
Kanpur Fertilizers & Cement Limited (KFCL), a company in which required
funds will be provided by Jaypee Uttar Bharat Vikas Private Limited, a
Joint Venture Company (JV Co.) promoted by Jaypee and ISG, for
participating in the revival and rehabilitation of fertilizer business
of the Company.
(d) The DRS as per note 7 above also envisages settlement with term and
other lenders. No adjustment with respect to the above, pending
sanction of the scheme, has been given effect to in the scheme.
8. Loans, Debentures from Financial Institutions and Banks and non
fund based facilities, save and except otherwise stated, against
specific balances under secured loans are secured/to be secured by a
pari passu first charge on the fixed and current assets of the Company.
These loans and facilities are further secured by the personal
guarantee of a director and the pledge of the unencumbered equity
shares held by the promoters in the Company. Additional Working Capital
Loan of Rs. 3221 lacs (net of Rs. 1434 lacs already repaid) provided by
the banks included under Cash Credit for Fertiliser Division are
additionally secured by way of pledge of 16908280 equity shares of
Andhra Cements Ltd. held by a group company.
8.1 Impact of the various proposals envisaged in the DRS including
provision for interest on loans, liabilities, other provisions and
write backs etc. would be determined and given effect to on sanction of
the scheme.
9. (a) Due to suspension of operation in fertilizer division, since
October 2005 computer system (SAP) could not be operated and various
records, supporting and other related details pertaining to the said
division could not be accessed. Consequently, in current state of affairs
there being inherent limitations and constraints, the balances of various
assets and liabilities, income and expenses including depreciation on
fixed assets and details and disclosures including for contingent
liabilities given in these accounts have either been taken as appearing
in the accounts for the year ended 31st March, 2006 or have been compiled
based on balances as on that date outside the financial system on the
basis of and to the extent information and details are available.
(b) In view of the above, details of various debit and credit balances
including with respect to advances, liabilities for employees and
others, debtors, bank balances etc could not be reconciled and
adjustments with respect to balances lying unmoved from earlier years
in absence of relevant details could not be determined.
(c) Certain year end exercises with respect to the following were
carried out as follows:
i. Physical verification of inventories has since been undertaken. The
adjustments on account of discrepancies, obsolescence if any etc. will
be carried out on ascertainment there of on completion of the exercise.
ii. Physical verification of fixed assets, compilation/reconciliation
of balances of these, accumulated depreciation, capital
work-in-progress, with records containing individual assets were yet to
be undertaken and will be carried out on resumption of operation at the
plant.
10. Consequent to the suspension of operations at the fertiliser plant,
the Company faced severe liquidity crisis. As a result, the Company was
not able to make the payment of interest and the principal amount of
the fixed deposits on due dates. Accordingly, an application with the
Company Law Board (CLB) for the re-schedulement of the repayments of
the fixed deposits was made and an Order to this effect was passed by
the CLB in June, 2002. Certain depositors have appealed against the
Order of CLB and the matters are pending before the Honble Calcutta
High Court.
However, in view of the continuing liquidity crunch, the Company was
not able to adhere to the schedule for the repayment of the fixed
deposits in terms of the aforesaid CLB Order. Subsequently, the Company
has filed a revised application with the CLB and the same is pending
before it.
Meanwhile, as given in note 7 the Company has been declared a sick
industrial company and the liabilities towards fixed deposits being
form part of rehabilitation scheme will be dealt with in terms of the
rehabilitation scheme on approval thereof by BIFR.
1. In view of the liquidity crunch, the Company was not able to
deposit the Provident and Family Pension Funds dues in earlier years
regularly. Necessary approval has been received from Provident Fund
authorities to deposit the dues in installments and the same has been
complied with.
2. The Company has arrived at a Memorandum of Understanding (MOU) on
6th June, 2010 with the workmen of the fertilizer division and the same
has been considered while submitting the DRS. Besides, the amount
payable in respect of other employees including gratuity, pension and
other retirement benefits at fertilizer division have also been
considered in the DRS on the basis of said MOU. Consequently, liability
towards employees related cost to the extent of Rs. 2546 lacs upto 31st
March, 2010 (Rs. 858 lacs for the year) remain unprovided in the
accounts pending sanction of the scheme. Adjustments in this respect as
ascertained will be carried out on approval of the DRS by BIFR.
11. The Company has filed a Writ Petition before the Honble High
Court at Calcutta challenging the applicability of Section 274 (1)(g)
of the Companies Act, 1956 and a stay has been granted by the High
Court on this matter. Consequently, as per the legal opinion received,
provisions for the disqualification of directors in terms of the said
Section are not applicable to the Directors of the Company.
12. Pursuant to the Jute Packaging Material (Compulsory use in Packing
Commodities) Act, 1987, the Company is liable to compensate in the
event of lower use of jute bags for urea packing to the extent
prescribed therein. The Supreme Court has upheld the validity of the
said Act. However, no demand has been received in this respect.
13. Fixed Assets comprising Land, Buildings, Plant and Machinery,
Vehicles, Furniture and Fixtures, etc. were revalued for Tea Division
on 31st March, 1994 and 1st January 1999. The assets for the
Fertiliser Division were revalued on 31st March 2001. The revaluation
was carried out by approved valuers on market value/replacement cost
basis. Consequent to the above, the increase in the value of Fixed
Assets aggregating to Rs. 56596.64 lacs was credited to Revaluation
Reserve in the respective years of revaluation.
14. Recoverable amount of fixed assets of the Company was estimated
considering Tea and Fertiliser Divisions as two separate Cash
Generating Units (CGUs), on the basis of valuation of these assets as
at 1st April, 2006 by independent valuers and impairment loss of Rs.
28260 lacs was determined in the said year of which Rs. 23986 lacs was
adjusted against revaluation reserve. In absence of any indication for
significant variation in the amount of impairment so recognized in the
earlier years, no further adjustment in this respect has been
considered necessary.
15. In keeping with the applicable accounting policy (Note 1.12
above), year end Stock of Stores and Spares Parts include unamortised
value of catalysts to the extent of Rs. 252.02 lacs (Previous Year Rs.
252.02 lacs).
16. The Deed of Conveyance in respect of Land and Buildings at
Vijayawada purchased in March, 1986 at Rs.40 lacs is yet to be
executed. This property is however under the Companys possession. The
Vendor of the said property has executed an irrevocable power of
attorney in favour of the Company and thereby, the Company has entered
into agreement for sale of the said property with a third party in
earlier years. The title in respect of the said property has however
been disputed by another party in a proceeding before the Honble High
Court at Calcutta and the matter is pending for adjudication.
17. The Company has acquired in earlier years, land for tea
plantations measuring 5744 acres in the State of West Bengal. Lease
documents in respect of 2586 acres of such land are yet to be executed.
18. The Company surrendered 6085.69 acres of land in earlier years
under the West Bengal Estates Acquisition Act, 1954, Assam Fixation of
Ceiling on Land Holding Act, 1956 and Kerala Land Reforms (Amendment)
Act, 1969. Necessary adjustment in respect of compensation will be made
in the accounts as and when determined. Further, requisite statutory
returns have been filed by the Company with the appropriate authorities
for exemption of other land holdings from the related ceiling limits.
19. Pursuant to pending litigations, the Company has been restrained
from transferring its fixed assets without prior leave of the Court.
19.1 In respect of levy of salami by the Government of West Bengal on
renewal of lease of tea estates in certain circumstances and pursuant
to the decision of Honble High Court at
Calcutta in a similar matter, the Company has preferred an appeal
against the said imposition before the appropriate authority.
Accordingly, pending finalization of the matter, Rs.811.67 lacs
(Previous year Rs. 811.67 lacs) has not been provided for in this
respect which would be payable in equal annual installments over the
lease period i.e. 30 years. However, this is not likely to have
revenue impact, since the same will be capitalized to the cost of land
as and when paid by the Company.
20. Rural Employment and Education Cess (Cess) amounting to Rs. 428.28
lacs (including Rs. 70.47 lacs for the year) has not been recognized in
this accounts, since the Government of West Bengal has exempted the
levy of the said Cess till 31st March, 2010. However, this exemption is
subject to payment of amount of Cess in arrear for the period upto 31st
March, 2004 by 31st March, 2011.
21. Loans and Advances include Rs 1685 lacs (Previous Year Rs. 1685
lacs) given to Andhra Cements Limited (ACL) as interest free loans in
terms of the Scheme of Rehabilitation sanctioned by the Board for
Industrial and Financial Reconstruction (BIFR). Subsequent to this,
this has been stipulated to be repaid in terms of the term loans
sanctioned to the said Company by the financial institution.
Considering the Companys long term involvement with ACL and the
prospects thereof, the outstanding balance has been considered good and
recoverable.
22. Loans and advances include Rs. 853.79 lacs (previous year Rs.
853.79 lacs) outstanding from Santipara Tea Company Ltd. (STCL) which
will be converted into equity at a premium of Rs. 10/- per share.
Pending this, full provision against the same has been made in the
accounts.
22.1 Interest amounting to Rs. 22888.26 lacs (Previous Year Rs.
17214.72 lacs) including for the year Rs. 5673.54 lacs (Previous Year
Rs. 3777.47 lacs) calculated as per document rates or as per CDR as
applicable on loans, liabilities, debentures, and deposits have not
been considered in these accounts.
22.2 The above amount does not include interest including differential,
additional, penal, etc. even though demanded in certain cases on
various statutory and other liabilities, borrowings, creditors, etc.
22.3 Necessary effect with respect to the above has not been considered
in view of relief and concessions sought in DRS pending sanction
thereof by BIFR.
Defined Benefit Scheme
The employees gratuity, superannuation and provident fund (other than
those covered and contributed under Employees Provident Fund
Organization) Scheme are defined benefit plans. The present value of
obligations are determined based on actuarial valuation using the
Projected Unit Credit Method, which recognizes 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. The
obligation for Leave Encashment is recognized in the same manner as
gratuity.
23. (b) Liability for employee benefit under defined benefit plans
pertaining to fertlizer division and Superannuation has not been
ascertained. Necessary adjustment/disclosure as required in terms of
AS-15 with respect to these will be done on ascertainment of amount
thereof.
24. Certain debit and credit balances including advances, debtors,
creditors, are subject to reconciliation and confirmation. Necessary
adjustments will be carried out on ascertainment of amounts thereof.
25. Advances recoverable in cash or in kind or for value to be
received include interest free advances (being housing loans, vehicle
loans, furniture loans, advances against medical expenses, festival
advances, etc.) to various workers and staff, which are recoverable
from their remuneration as per the repayment schedule in terms of the
relevant scheme /specific approvals except in case of Fertiliser
Division where recovery will commence on reopening of the plantà Rs.
324.42 lacs (Previous Year Rs. 230.14 lacs).
26. The Companys Infotech Division and its related wholly owned
subsidiary have ceased their operations. Necessary application dealing
with related obligation etc. are being made and adjustments, if any,
will be carried out as and when ascertained.
27. Related Party disclosures pursuant to Accounting Standard à 18.
List of Related Parties with whom the Company had transaction:
(a) Subsidiaries
Dail Consultants Ltd. (DCL)
North India Fertiliser Ltd. (NIFL)
Leyden Leasing and Financial Services Ltd. (LLFSL)
Pentonville Software Ltd. (PSL)
(b) Associate/Group Company
ISG Traders Ltd. (ISG)
(c) Key Management Personnel
Mr. A. K. Goel, Wholetime Director Mr. S. P. Gupta, Executive Director
28. Interest include Rs. 267.13 lacs (for the year Rs. 20.44 lacs)
provided on the dues of Tea Board in terms of the settlement arrived at
during the year.
28.1 Prior period expenses/adjustments include service charges Rs. 3.51
lacs (Previous Year Rs. 11.43 lacs) and others Rs. 7.17 lacs (Previous
Year Rs. 7.47 lacs).
28.2 In respect of Fertiliser Division certain expenses including
stores consumed etc. have not been classified functionally and remain
charged to primary heads of accounts.
29. Remuneration amounting to Rs. 392.81 lacs (including Rs.47.54 lacs
for the year) paid to the current Wholetime/Executive Directors and
ex-wholetime directors/ex-Managing Director are pending approval of
Central Government.
30. Sundry Receipts include insurance claim receivable in respect of
tea stock damaged in fire at one of the tea factory Rs. 77.08 lacs
(Previous Year Rs. Nil) and sale of tea waste Rs. 17.50 lacs (Previous
Year Rs. 10.96 lacs).
31. Previous years figures wherever necessary have been
re-arranged/re-grouped/ reclassified.
Signatures to Schedule 1 to 12 forming part of the Balance Sheet and
Profit and Loss Account.
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