Mar 31, 2018
Notes to the Financial Statements for the year ended 31st March, 2018
Capital Reserve - The company has created capital reserve out of capital subsidies received from state Governments. Capital reserve is utilized in accordance with provision of the Companies Act.
Securities premium Reserve - Securities premium reserve is used to record the premium on issue of shares. These reserve is utilized in accordance with the provisions of the Companies Act.
Cash flow hedging Reserve - The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the other comprehensive income in cash flow hedging reserve.
* Refer note 34 - Financial instruments, fair values and risk measurement Notes:
a. Term loan of ''1769.47 Lakhs (31st March 2017 ''nil; 1st April 2016 ''nil) are secured by:
(i) First exclusive charge on present and future Plant and Machinery of the Borrower located at GAT No. 598/1 and 590/1 D, Village Janori, Tai. Dindori, Dist. Nashik (Maharastra).
(ii) First exclusive charge by way of equitable mortgage on land and building located at GAT No. 598/1 and 590/1 D, Village Janori, Tai. Dindori, Dist. Nashik (Maharastra).
(iii) Personal guarantee of Mr. Ashok Motiani
(iv) Demand promissory note and letter of continuity for ''200 Million Rate of interest is 3.95% p.a.
b. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''27.20 Lakhs) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From July,2013.Last Installment due in June,2016. Rate of Interest 12.45% p.a.
c. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''73.30 Lakhs) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments
starting From September,2014. Last Installment due in August,2017. Rate of Interest 12.45% p.a.
d. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''40.27 Lakhs) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 31 Monthly Installments starting From September,2014. Last Installment due in March,2017. Rate of Interest 12.45% p.a.
e. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''41.83 Lakhs) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From September,2014. Last Installment due in August,2017. Rate of Interest 12.45% p.a.
f. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''75.60 Lakhs) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From September,2014. Last Installment due in July,2017. Rate of Interest 12.45% p.a.
g. The above mentioned term Loans are colletrally secured by first charge by way of mortgage of factory land & bulding & plant & machinary located at Unit-I,Unit-II and Unit-IV &further secured by Extension of charge on current assets of the company & personal Guarantee of Chariman & Managing Director.
h. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''1.79 Lakhs) is secured by Hypothecation on the Vehicle of the company repayable in 35 Monthly Installment starting From July,2013. Last Installment due in June,2016. Rate of Interest 11.00% p.a.
i. Term Loan of ''Nil (31st March 2017 ''2.12 Lakhs; 1st April 2016 ''10.03 Lakhs) is secured by Hypothecation on the Vehicle of the company repayable 35 Monthly Installments starting From August,2014. Last Installment due in June,2017. Rate of Interest 8.35% p.a
j. Term Loan of ''Nil (31st March 2017 ''Nil; 1st April 2016 ''35.51 Lakhs) is secured by first & exclusive charge on machinary purchased out of TCFSL fund repayable in 24 Monthly Installments starting From February,2015. Last Installment due in January, 2017. It is also secured by unconditional & Irrevocable guarantee of Chairman & Managing Director.
k. Term Loan of ''19.48 Lakhs (31st March 2017 ''28.76 Lakhs; 1st April 2016 ''Nil) is secured by Hypothecation on the Vehicle of the company repayable 36 Monthly Installments starting From February,2017. Last Installment due in January, 2020. Rate of Interest 9.51% p.a.
l. Working Capital Loans from Banks comprise of Cash Credit, Pre Shipment and Post Shipment Credit are secured by way of hypothecation of Current Assets including Stocks and Book Debts and are colletrally secured by first charge by way of mortgage of factory land & bulding & plant
& machinery located at Unit-I, Unit-II and Unit-IV & further secured by Extension of charge over Other fixed assets of the company & personal Guarantee of Chariman & Managing Director.
The Company has not defaulted in the repayment of loans & interest in current & previous year.
* Refer note 34 - Financial instruments, fair values and risk measurement
** Other current liabilities include expenses payable of ''16.43 Lakhs (31st March 2017 - ''11.73 Lakhs and 01st April 2016 ''34.39 Lakhs) to related parties (Refer note no. 40)
*** There is no amount due for the payment to investor education and protection fund as on 31st March 2018, 31st March 2017 and 1st April 2016
(i) The company hase entered into forward contracts to hedge its exchange rate risk. The Company has also entered into cross currency interest rate swap to hedge against interest rate risk and exchange rate risk. Refer note - 34 Financial instruments, fair values and risk measurement for details
# Fair value of financial assets and liabilities measured at amortized cost is not materially different from the amortized cost. Further, impact of time value of money is not significant for the financial instruments classified as current. Accordingly, the fair value has not been disclosed separately.
Types of inputs for determining fair value are as under:
Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.
B. Measurement of fair values
i) Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.
ii) Transfers between Levels 1 and 2
There have been no transfers between Level 1 and Level 2 during the reporting periods
iii) Transfer out of Level 3
There were no movement in level 3 in either directions during the financial year ending on 31 March 2018 and 31 March 2017.
C. Financial risk management
The Company has a well-defined risk management framework. The Board of Directors of the Company has adopted a Risk Management Policy. The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
(i) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the company. The potential activities where credit risks may arise include from cash and cash equivalents, derivative financial instruments and security deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the company along with relevant mitigation procedures adopted have been enumerated below:
Trade receivables
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. Majority of the customers have been associated with the company for a considerable period of time. Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed regularly
An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on account of time value of money and credit risk. The company reviews the receivables in light of their historical payment patterns and adjusts the same to estimate the expected loss on account of credit worthiness of the customer or delay in payments leading to loss of time value of money.
The above receivables which are past due but not impaired are assessed on case-to-case basis. Management is of the view that these financial assets are not impaired as there has not been any adverse change in credit quality and are envisaged as recoverable based on the historical payment behavior and extensive analysis of customer credit risk, including underlying customers'' credit ratings, if they are available. Consequently, no additional provision has been created on account of expected credit loss on the receivables. There are no other classes of financial assets that are past due but not impaired.
Other financial assets
Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other bank balance, derivative asset, advances to employees etc.
- Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating.
- Investments are made in credit worthy mutual funds.
- Derivative instrument comprises cross currency interest rate swaps and forward contracts where the counter parties are banks with good reputation, and past track record with adequate credit rating. Accordingly no default risk is perceived.
- Company has given security deposit to various government authorities (like Municipal corporation, Nagarpalika, Grampanchayat, etc.). Being government authorities, the Company does not have exposure to any credit risk.
- Loan and advances to employees are majorly secured in nature and hence the Company does not have exposure to any credit risk.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company''s financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Management monitors the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company''s liquidity management policy involves periodic reviews of cash flow projections and considering the level of liquid assets necessary, monitoring balance sheet, liquidity ratios against internal and external regulatory requirements.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.
Notes to the Financial Statements for the year ended 31st March, 2018
(iii) Market risk
Market risk is the risk that changes in market prices - such as currency risk, other price risk and interest rate risk - will affect the Company''s income or the value of its holdings of financial instruments.
a. Foreign Currency risk
The functional currency of the company is Indian Rupees and its revenue is generated from operations in India as well as outside india through its exports and is therefore exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EURO and GBP. Foreign exchange risk arises from highly probable forecast transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through sensitivity analysis. The primary objective for forex hedging against anticipated foreign currency risks will be to hedge the Company''s highly probable foreign currency cash flows arising from such transactions (thus reducing cash flow and profit volatility). The Company does not enter into any derivative instruments for trading or speculative purposes.
The Company uses forward exchange contracts, to hedge the effects of movements in exchange rates on foreign currency denominated assets. The sources of foreign exchange risk are outstanding amounts payable for capital goods denominated in foreign currency. The Company is also exposed to foreign exchange risk on its exports. These transactions are denominated in US dollars, EURO and GBP.
Foreign Currency Risk Sensitivity
The Company is mainly exposed to changes in USD, EURo & GBP. The below table demonstrates the sensitivity to a 5% increase or decrease in the USD, EURO and GBP against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 5% represents management''s assessment of reasonably possible change in foreign exchange rate.
A Change of 5% in foreign currency net of hedges would have following impact on profit before tax
* The foreign exchange forward are denominated in the same currency as the highly probable future sales, therefore the hedge ratio is 1:1.
(b) Disclosure of effects of hedge accounting on financial performance:
Cash flow hedge 31st March 2018
Other Price Risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments. The Company is mainly exposed to the price risk due to its investments in equity mutual fund recognized at FVTPL.As at 31st March, 2018, the carrying value of the investments in equity mutual fund amounts to ''97.06 Lakhs (''Nil as at 31st March, 2017 and ''Nil as at 1st April, 2016). The details of such investments in equity mutual fund is given in Note 6. The price risk arises due to uncertainties about the future market values of these investments.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
As disclosed above, The interest rate exposure on floating rate Foreign Currency Loan has been fully hedged through a pay fixed - receive floating cross currency interest rate swap. Since there are no financial assets or financial liabilities which are at floating interest rate, there is no interest risk
35 CAPITAL MANAGEMENT
The Company defines capital as total equity including issued equity capital, share premium and all other equity reserves attributable to equity holders of the Company (which is the Company''s net asset value). The primary objective of the Company''s financial framework is to support the pursuit of value growth for shareholders, while ensuring a secure financial base.
The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio of the Company.
37 EMPLOYEE BENEFITS
Post- employment benefits :
The Company has the following post-employment benefit plans:
1) Defined benefit gratuity plan
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The scheme is funded with LIC in the form of qualifying insurance policy.
As per Actuarial Valuation as on 31st March, 2018, 31st March, 2017 and 1st April, 2016 and recognized in the financial statements in respect of Employee Benefit Schemes:
The above sensitivity analysis may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same method as that applied in calculating the projected benefit obligation as recognized in the balance sheet.
2) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is ''42.34 Lakhs (31st March, 2017 ''35.47 Lakhs).
39 SEGMENT INFORMATION
(a) Description of segment and principal activities
The Company''s Board of Directors monitors the operating results of the below business segments separately for the purpose of making decisions about resource allocation and performance assessment and has identified two reportable segments of its business:
1. Fresh Fruits: The Company''s principal business which consist of Fresh Grapes, Pomegranates and Mangoes
2. Processed Fruits and Vegetables: It consist of Mango Pulp, Guava Pulp, Pomegrantes concentrate, Tomato Paste and Puree and cold processed juice.
(b) Segment revenue and expenses
Revenue and Expenses have been identified to a segment on the basis of operating activities of the segment. Revenue and Expenses which relate to common activities and are not allocable to segment on reasonable basis have been disclosed as "Unallocable".
Notes to the Financial Statements for the year ended 31st March, 2018
(c) Segment assets and liabilities
Segment assets include all operating assets in respective segments comprising of net fixed assets, Capital Work in Progress, current assets, loans and advances. Segment liabilities include operating liabilities and provisions including borrowings and deferred tax liabilities.
(d) Information about geographical areas
The Company has identified its geographical segments as India and Outside India.
(e) Information about major customers
Revenue from two of the customers of the Company''s Fresh Fruits business is ''6045.47 Lakhs which is more than 10% each of the Company''s total segment revenue, for the year ended 31 March 2018. Revenue from one of the customers of the Company''s Fresh Fruits business is ''2058.60 Lakhs which is more than 10% of the Company''s total segment revenue, for the year ended 31 March 2017.
(f) Information about product and services
The Company''s revenue from external customers for each product is same as that disclosed below under "segment revenue". ('' in Lakhs)
Notes to the Financial Statements for the year ended 31st March, 2018
(i) Revenue from outside india comprises of income from sale of products.
(ii) Carrying amount of segment assets comprises of non-current assets and current assets identified to the respective segments. However Segments assets in India also includes certain common assets used to generate revenue in both segments but not feasible of allocation.
(iii) Capital expenditure during the year represents net additions to Tangible and Intangible assets and movement in Capital work in progress
40 RELATED PARTY DISCLOSURES
As per the Indian Accounting Standard-24 on "Related Party Disclosures", list of related parties identified of the Company are as follows.
1) Names of related parties and nature of relationship. a) Key Management Personnel
Mr. Ashok Motiani - Chairman and Managing Director Mrs. Nanita Motiani - Executive Director
Mr. Sanjay Prajapati - Chief Financial Officer (Appointment w.e.f 03/04/2017)
Mr. Jignesh Gandhi - Company Secretary Mr. Mayur Shah - Independent Director Mr. Dinesh Oza - Independent Director Mr. Anil Sharma - Independent Director
b) Relatives of Key Management Personnel Mrs. Priyanka Tandon
Mr. Mayank Tandon Ms. Dipti Motiani
c) Enterprise under significant influence of Key Management personnel
Freshcap Foodstuff LLP (Formerly known as Freshcap Investments Pvt. Ltd.)
Freshfal Pvt Ltd
46 FIRST TIME ADOPTION of IND AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP''). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP for the following:
a) Balance Sheet as at 1st April, 2016 (Transition date);
b) Balance Sheet as at 31st March, 2017;
c) Statement of Profit and Loss for the year ended 31st March, 2017; and
d) Statement of Cash flows for the year ended 31st March, 2017.
Exemption and exception applied
Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions from the retrospective application and exemption from application of certain requirements of other Ind AS. The Company has availed the following exemptions as per Ind AS 101:
1 Estimates:
An entity''s estimates in accordance with Ind AS 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 1 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:
- Investment in financial instruments carried at FVTPL or FVOCI,
- Impairment of financial assets based on expected credit loss model
- Determination of the discounted value for financial instruments carried at amortized cost.
2 Classification and measurement of financial assets:
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively except where the same is impracticable.
3 Hedge Accounting
Hedge accounting can only be applied prospectively from the transition date to transactions that satisfy the hedge accounting criteria in Ind AS 109, at that date. Hedging relationships cannot be designated retrospectively, and the supporting documentation cannot be created retrospectively. As a result, only hedging relationships that satisfied the hedge accounting criteria as of 1st April
2016 are reflected as hedges in the company''s results under Ind AS.
4 Deemed cost for property, plant and equipment (PPE), intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment 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 after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.
5 Fair value measurement of financial assets and liabilities
For financial instruments, where in fair market values are not available (viz. interest free and below market rate security deposits or loans) the Company has elected to adopt fair value recognition prospectively to transactions entered after the date of transition.
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 Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
Notes to the reconciliation of equity as at 1st April 2016 and 31st March 2017 and Total comprehensive income for the year ended 31st March 2017.
1 Proposed dividend and its DDT
Under Previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are to be recognized only on approval by the shareholders in the general meeting. Accordingly, liability amounting to '' 121.45 Lakhs and related dividend distribution tax amounting to ''24.72 Lakhs are recognized as a liability in the year in which it is approved by the shareholders in the Annual General Meeting of the Company. This has resulted in increase in equity amounting to '' 146.17 Lakhs as at 1st April 2016 and subsequent decrease in profit in FY 2016-17.
2 Excise Duty:
Under Previous GAAP, sale of goods was presented as net of exicse duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods amounting to Rs, 160.27 Lakhs is separately presented on the face of Statement of Profit and Loss. Thus, sale of goods under Ind AS has increased by an amount of Rs, 160.27 Lakhs.
3 Forward contract
Under the previous GAAP the premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing asset/liability, was amortized as expense or income over the life of the contract. Under the Ind AS 109, Forward Contracts are carried at fair value and the resultant gains and losses are recorded in the statement of Profit and Loss. Accordingly, the same has been fair valued resulting in decrease in equity by Rs,36.08 Lakhs as at 31st March, 2017 (decrease Rs,20.02 Lakhs as at 1st April, 2016).Consequently, the profit for the year ended 31st March 2017 decreased by Rs, 16.06 Lakhs.
4 Interest bearing loans and borrowings
Under Previous GAAP ,transaction charges directly attributable to borrowings were either expensed or capitalized as appropriate. Under Ind AS, these have been considered to determine the amortized cost of the respective borrowings using effective interest rate method. Accordingly borrowings as at 01st April 2016 decreased by Rs, 0.71 Lakhs with corresponding effect in retained earning.
5 Loans given to employee
Under Previous GAAP, loan given to employee is considered in connection with interest bearing loans and borrowings. Under Ind AS, if loans are repayable on demand, then they are classified as current loan. As loan given to employees are repayable on demand, it is shown as current in nature.
6 Employee benefits :
Both under Previous GAAP and In
Both under Previous GAAP and Ind-AS, the company recognises costs related to its postemployment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind-AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.
7 Deferred tax assets (net) :
Under Previous GAAP,deferred tax accounting used the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 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.
8 Restatement of Prior Period Expenses
Under Previous GAAP, Prior period expenses of Rs, 3.22 Lakhs was recorded in the statement of Profit and Loss for the year ended March 31, 2017.
However in accordance with the requirements of Ind AS the same has been recognized by restating the retained earnings as on April 01, 2016.
9 Statement of cash flows
The transition from Indian GAAP to Ind AS do not have any material impact on the statement of cash flows.
10 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 requires 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 ''other comprehensive income''. The concept of other comprehensive income did not exist under previous GAAP.
Mar 31, 2016
1. Rights, Preferences and Restrictions attached to Shares
The Company has only one class of equity shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
2. Nature of Security and terms of repayment for Long Term Secured Borrowing
3. Term Loan of Rs.27,20,800 (P.Y. Rs.1,89,66,400) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From July,2013.Last Installment due in June, 2016. Rate of Interest 12.45% p.a. (Last year 13.25% p.a.) at year end.
4. Term Loan of Rs.73,30,000 (P.Y. Rs.1,24,90,000) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From September,2014. Last Installment due in August, 2017. Rate of Interest 12.45% p.a. (Last year 13.25% p.a.)
5. Term Loan of Rs.40,27,000 (P.Y. Rs.81,91,000) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 31 Monthly Installments starting From September,2014. Last Installment due in March,2017. Rate of Interest 12.45% p.a. (Last year 13.25% p.a.) at year end.
6. Term Loan of Rs.41,83,000 (P.Y. Rs.75,07,000) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From September,2014. Last Installment due in Augest,2017. Rate of Interest 12.45% p.a. (Last year 13.25% p.a.) at year end.
7. Term Loan of Rs.75,60,000 (P.Y. Rs.1,32,24,000) is secured by Equitable mortgage of Factory Land & Building located at Unit-1 repayable in 36 Monthly Installments starting From September,2014. Last Installment due in July,2017. Rate of Interest 12.45% p.a. (Last year 13.25% p.a.) at year end.
8. The above mentioned term Loans are collaterally secured by first charge by way of mortgage of factory land & building & plant & machinery located at Unit-I, Unit-II and Unit-IV &further secured by Extension of charge on current assets of the company & personal Guarantee of Chairman & Managing Director.
9 Term Loan of Rs.1,79,431 (P.Y. Rs.8,90,984) is secured by Hypothecation on the Vehicle of the company repayable in 35 Monthly Installment starting From July,2013. Last Installment due in June,2016. Rate of Interest 11.00% p.a.(Last Year 11.00% p.a) at year end.
10. Term Loan of Rs.NIL (P.Y. Rs.8,22,087) is secured by Hypothecation on the Vehicle of the company repayable 30 Monthly Installments starting From July,2013. Last Installment due in January,2016. Rate of Interest 8.35% p.a.(Last Year 8.35% p.a) at year end.
11. Term Loan of Rs.10,03,813 (P.Y. Rs.17,20,517) is secured by Hypothecation on the Vehicle of the company repayable 35 Monthly Installments starting From August,2014. Last Installment due in June,2017. Rate of Interest 8.35% p.a.(Last Year 8.35% p.a) at year end.
12. Term Loan of Rs.35,51,945 (P.Y. Rs.78,63,146 ) is secured by first & exclusive change on machinery purchased out of TCFSL fund repayable in 24 Monthly Installments starting From February ,2015. Last Installment due in January, 2017. Rate of Interest 13.00% p.a.(Last Year 13.00% p.a.).It is also secured by unconditional & Irrevocable guarantee of Chairman & Managing Director.
13. Installments Falling Due In Respect Of All The Above Loans Up to 31/03/2017 Have Been Grouped Under Current Maturities Of Long-Term Debt.
14. The Company has not defaulted in the repayment of loans & interest in current & previous year.
15. Corporate Social Responsibility Expenses
a). Gross amount required to be spent by the Company during the year 2015-16 - Rs.17.60 lacs (Previous year - Rs.9.50 lacs)
16. Previous year''s figures have been rearranged and reclassified wherever necessary to correspondence with current year.
Mar 31, 2015
1. Rights, Preferences and Restrictions attached to Shares
The Company has only one class of equity shares having a par value of
'10 per share. Each Shareholder is eligible for one vote per share. The
dividend proposed by the Board of Directors is subject to the approval
of shareholders, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company, after distribution of all preferential
amounts, in proportion of their shareholding.
2. Nature of Security and terms of repayment for Long Term Secured
Borrowing
3. Term Loan of Rs. Nil (P.Y. Rs. 56,25,000) is secured by First
charge over the entire fixed assets of the company located at the
Unit-IV for Tomato Processing Line repayable in 16 Quarterly
Installments starting From March,2011. Last Installment due in
December,2014.Rate of Interest 13.25% p.a. (Last year 13.25% p.a.) at
year end.
4. Term Loan of Rs.1,89,66,400 (P.Y.3,52,12,000) is secured by
Equitable mortgage of Factory Land & Building located at Unit-1
repayable in 36 Monthly Installments starting From July,2013.Last
Installment due in June,2016. Rate of Interest 13.25% p.a. (Last year
13.25% p.a.) at year end.
5.Term Loan of '1,24,90,000 (P.Y.64,01,000) is secured by Equitable
mortgage of Factory Land & Building located at Unit-1 repayable in 36
Monthly Installments starting From Sep-14. Last Installment due in
Jun-17. Rate of Interest 13.25% p.a. (Last year 13.25% p.a.)
6. Term Loan of Rs.81,91,000 (P.Y.22,49,000) is secured by Equitable
mortgage of Factory Land & Building located at Unit-1 repayable in 36
Monthly Installments starting From September,2014. Last Installment due
in June,2017. Rate of Interest 13.25% p.a. (Last year 13.25% p.a.) at
year end.
7. Term Loan of Rs.75,07,000 (P.Y. 1,00,00,000) is secured by
Equitable mortgage of Factory Land & Building located at Unit-1
repayable in 36 Monthly Installments starting From September,2014. Last
Installment due in June,2017. Rate of Interest 13.25% p.a. (Last year
13.25% p.a.) at year end.
8. Term Loan of Rs.1,32,24,000 (P.Y.Nil) is secured by Equitable
mortgage of Factory Land & Building located at Unit-1 repayable in 36
Monthly Installments starting From September,2014. Last Installment due
in June,2017. Rate of Interest 13.25% p.a. (Last year 13.25% p.a.) at
year end.
9. The above mentioned term Loans are colletrally secured by first
charge by way of mortgage of factory land & bulding & plant & machinary
located at Unit-I,Unit-II and Unit-IV &further secured by Extension of
charge on current assets of the company & personal Guarantee of
Chariman & Managing Director.
10. Term Loan of Rs.8,90,984 (P.Y. Rs.15,33,568) is secured by
Hypothecation on the Vehicle of the company repayable in 35 Monthly
Installment starting From July,2013. Last Installment due in
January,2016. Rate of Interest 11.00% p.a.(Last Year 11.00% p.a) at
year end.
11. Term Loan of Rs.8,22,087 (P.Y. Rs.17,39,465) is secured by
Hypothecation on the Vehicle of the company repayable 30 Monthly
Installments starting From August,2013. Last Installment due in
January,2016. Rate of Interest 8.35% p.a.(Last Year 8.35% p.a) at year
end.
12. Term Loan of Rs.17,20,517 (P.Y. Rs.Nil) is secured by
Hypothecation on the Vehicle of the company repayable 35 Monthly
Installments starting From August,2014. Last Installment due in
June,2017. Rate of Interest 8.35% p.a.(Last Year Nil.) at year end.
13. Term Loan of Rs.Nil (P.Y. Rs.78,362) is secured by Hypothecation
on the Vehicle of the company repayable in 35 Monthly Installments
starting From July,2011. Last Installment due in May,2014. Rate of
Interest 10.45% p.a.. (Last Year 10.45% p.a.) at year end.
14. Term Loan of Rs.78,63,146 (P.Y. Rs.Nil) is secured by first &
exclusive chage on machinary purchased out of TCFSL fund repayable in
24 Monthly Installments starting From February, 2015. Last Installment
due in January,2017. Rate of Interest 13.00% p.a.(Last Year Nil.).It is
also secured by unconditional & Irrevocable guarantee of Mr. Ashok
Motiani,Chairman & Managing Director.
15. Installments Falling Due In Respect Of All The Above Loans Upto
31/03/2016 Have Been Grouped Under Current Maturities Of Long-Term
Debt.
16. Working Capital Loans from Banks comprise of Cash Credit, Pre
Shipment and Post Shipment Credit are secured by way of hypothecation
of Current Assets including Stocks and Book Debts and are colletrally
secured by first charge by way of mortgage of factory land & bulding &
plant & machinery located at Unit-I,Unit-II and Unit-IV &further
secured by Extension of charge over Other fixed assets of the company &
personal Guarantee of Chariman & Managing Director.
17. The Company has not received any intimation from Suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures relating to amount unpaid
as at year end together with interest paid / payable under this Act
have not been given.
18. Contigent Liabilities and Commitments (to the extent not provided
for)
(a) Contingent Liabilities Amount in Rs.
Particulars As At As At
31-03-2015 31-03-2014
i) Disputed matters in appeals/
contested in respectof:
Service Tax 43,244,054 43,244,054
Income Tax 7,555,058 7,555,058
Future cash outflows in respect of the
above are determinable only on
receipt of Judgments /decisions pending
with various forums/authorities. Based
on the decisions of the Appellate
authorities and the interpretations of
other relevant provisions, the Company
has been legally advised that the
additional demand raised is likely to
be either deleted or substantially
reduced and accordingly no provision
is considered necessary.
ii) Estimated amount of Custom/Excise
duty liability in respect of Capital
Goods purchased without payment
of duty under EPCG Scheme 8,044,934 15,017,107
iii) Estimated amount of duty
liability on stock of duty
free materials 5,347,041 4,768,738
iv) Bank Guarantees 4,000,000 15,743,040
v) Letter of Credit Nil 16,515,280
(b) Commitments Amount in Rs.
Particulars As At As At
31-03-2015 31-03-2014
i) Estimated amounts of contracts
remaining to be executed on capital
account and not provided
(net of advances) Nil 17,500,000
19. Related Party Disclosure
Names of related parties and nature of relationship.
i) Enterprise under significant influence of Key Management personnel
1) Freshcap Foodstuff LLP (Formerly known as Freshcap Investments Pvt.
Ltd.)
2) Agrofoyer Solutions Pvt Ltd
3) Freshfal Pvt Ltd
ii) Key Management Personnel
Mr. Ashok V. Motiani - Chairman and Managing Director.
Mrs. Nanita A. Motiani - Executive Director
Mr. Ashish B.Parekh - Chief Financial Officer
Mr. Jignesh Gandhi - Company Secretary
iii) Relatives of Key Management Personnel
Mrs. Priyanka Tandon
Mr. Mayank Tandon
Ms. Dipti Motiani
32. Employee Benefits
a) Defined Benefit Plan
Gratuity:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with LIC in the form of qualifying insurance
policy.
The following table summarizes the components of net benefit expenses
recognized in the profit and loss account and the funded status and
amounts recognized in the balance sheet for the gratuity benefit.
20. The Board of Directors of the Company, at their meeting held on
07.02.2015 have decided to write off capital advances given for
purchase of land amounting to Rs. 4,705,358/-. The Company had filed a
legal suit against the same in metropolitan court in the year of
1994-95. The Company has been legally advised that there is not a
chance of recovery of Capital Advance given for purchase of land.
b. Information about Secondary Segment
a) Revenue from external operations comprises of income from sale of
products, and other operating revenues.
b) Carrying amount of segment assets comprises of non-current assets
and current assets identified to the respective segments. However
Segments assets in India also includes certain common assets used to
generate revenue in both segments but not feasible of allocation.
c) Capital expenditure during the year represents net additions to
Tangible and Intangible assets and movement in Capital work in
progress.
21. Previous year's figures have been rearranged and reclassified
wherever necessary to correspondence with current year.
Mar 31, 2014
1. 10,00,000 equity shares of Rs. 19.40/- each (including Securities
Premium of Rs. 9.40/- each) & 11,00,000 equity shares of Rs. 14.00/-
each (including Securities Premium of Rs. 4.00/- each) were allotted as
fully paid upon conversion of Optionally Convertible Warrants during
the last Five Years.
2. Rights, preferences and Restrictions attached to Shares
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each Shareholder is eligible for one vote per share.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company, after distribution of all
preferential amounts, in proportion of their shareholding.
3. Nature of Security and terms of repayment for Long Term Secured
Borrowing
4. Nature of Security and terms of repayment for Long Term Secured
Borrowing
5. Term Loan of Nil (P.Y.Rs. 23,75,682) is secured by Exclusive and
Specific charge on the Registered Office at Ahmedabad and repayable in
24 Monthly Installments starting From December,2011. Last Installment
due in November,2013. Rate of Interest 14.50% p.a.(P.Y. 14.50% p.a) at
year end.
6. Term Loan of Rs. 56,25,000(P.Y. Rs. 1,31,25,000) is secured by
First charge over the entire fixed assets of the company located at the
Unit-IV for Tomato Processing Line repayable in 16 Quarterly
Installments starting From March,2011. Last Installment due in
December,2014.Rate of Interest 13.25% p.a. (P.Y. 14.25% p.a.) at year
end.
7. Term Loan of Rs. 3,52,12,000 (P.Y. Rs. 4,38,50,153) is secured by
Equitable mortgage of Factory Land & Building located at Unit-1
repayable in 36 Monthly Installments starting From July,2013.Last
Installment due in June,2016. Rate of Interest 13.25% p.a. (P.Y. 13.50%
p.a.) at year end.
8. Term Loan of Rs. 64,01,000 (P.Y.Nil) is secured by Equitable
mortgage of Factory Land & Building located at Unit-1 repayable in 36
Monthly Installments starting From Sep-14. Last Installment due in
Jun-17. Rate of Interest 13.25% p.a. (P.Y. 13.50% p.a.)
9. Term Loan of Rs. 22,49,000 (P.Y.Nil) is secured by Equitable
mortgage of Factory Land & Building located at Unit-1 repayable in 36
Monthly Installments starting From September,2014. Last Installment due
in June,2017. Rate of Interest 13.25% p.a. (P.Y. 13.50% p.a.) at year
end.
10. Term Loan of Rs. 1,00,00,000 (P.Y.Nil) is secured by Equitable
mortgage of Factory Land & Building located at Unit-1 repayable in 36
Monthly Installments starting From September,2014. Last Installment due
in June,2017. Rate of Interest 13.25% p.a. (P.Y. 13.50% p.a.) at year
end.
11. The above mentioned term Loans are colletrally secured by first
charge by way of mortgage of factory land & bulding & plant & machinary
located at Unit-I,Unit-II and Unit-IV & further secured by Extension of
charge on current assets of the company & personal Guarantee of
Chariman & Managing Director.
12. Term Loan of Rs. 15,33,568 (P.Y. Nil) is secured by Hypothecation
on the Vehicle of the company repayable in 35 Monthly Installment
starting From July,2013. Last Installment due in January,2016. Rate of
Interest 11.00% p.a.(P.Y. Nil) at year end.
13. Term Loan of Rs. 17,39,465 (P.Y. Nil) is secured by Hypothecation
on the Vehicle of the company repayable 30 Monthly Installments
starting From August,2013. Last Installment due in January,2016. Rate
of Interest 8.35% p.a.(P.Y. Nil.) at year end.
14. Term Loan of Rs. 78,362 (P.Y. Rs. 5,18,258) is secured by
Hypothecation on the Vehicle of the company repayable in 35 Monthly
Installments starting From July,2011. Last Installment due in May,2014.
Rate of Interest 10.45% p.a.. (P.Y. 10.45% p.a.) at year end.
15. Installments Falling Due In Respect Of All The Above Loans Upto
31.03.2015 Have Been Grouped Under Current Maturities Of Long-Term
Debt.
16 Working Capital Loans from Banks comprise of Cash Credit ,Pre
Shipment and Post Shipment Credit are secured by way of hypothecation
of Current Assets including Stocks and Book Debts and are collaterally
secured by first charge by way of mortagage of factory land & building
& Plant & Machinary located at Unit-I, Unit-II and Unit-IV & further
secured by Extension of charge over other fixed assets of the company
except Satara unit of the company & Personal Guarantee of Chairman &
Managing Director.
17. Other Trade payables represents amount payable to various parties
for packing material, consumables and Expenses.
9.2 The Company has not received any intimation from Suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures relating to amount unpaid
as at year end together with interest paid payable under this Act have
not been given.
18. There are no amounts due for payment to Investor Education and
Protection Fund under Section 205C of the Companies Act, 1956 as at the
year ended.
19. Statutory liabilities represent amounts payable towards VAT, CST,
Excise duty and TDS etc.
20. The Company has during the year changed the metod of recognizing
the government grant.For better presentation of financial statement
company has decided to deduct grant from cost of respective assets.Due
to above change Gross block of assets was reduced by Rs. 8,97,01,000
being grant received by the company.Out of which grant of
Rs.1,71,03,774 was w/off as Deffered Government grant in proportion of
depreciation in earlier years & has been adjusted in respective assets
& depreciation fund accounts.
21 Contingent Liabilities and Commitments (to the extent not provided
for)
(a) Contingent Liabilities (Amount Rs.)
Particulars As At As At
31.03.2014 31.03.2013
i)Disputed matters in
appeals/ contested
in respectof:
- Income Tax - 6,612,398
- Service Tax 43,244,054 45,744,054
ii) Estimated amount of
Custom/Excise duty
liability in
respect of Capital Goods
purchased without payment
of duty under EPCG Scheme 15,017,107 8,959,826
iii) Estimated amount of duty
liability on stock of duty
free materials 4,768,738 6,192,681
(b) Commitments (Amount Rs.)
Particulars As At As At
31.03.2014 31.03.2013
i) Bank Guarantees 15,743,040 3,500,000
ii) Letter of Credit 16,515,280 4,950,188
iii) Estimated amounts of 17,500,000 3,516,000
contracts remaining to be
executed on capital account
and not provided
(net of advances)
Note : No amounts pertaining to related parties have been provided for
as doubtful debts. Also no amounts have been written off or written
back during the year.
22 Employee Benefits
a) Defined Benefit Plan
Gratuity:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with LIC in the form of qualifying insurance
policy.
Mar 31, 2013
1 BACKGROUND
Freshtrop Fruits Ltd. is engaged in the business of exports of fresh
fruits and vegetables to leading Supermarket chains in various parts of
Europe, Russia & Hong Kong as well as in Domestic Market. The company
is producing Fruit Pulp & Concentrate for both the Domestic &
International Customers.
2.1 Employees Benefits
a) Defined Benefit Plan
Gratuity:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance company in the form of
qualifying insurance policy.
The following table summarizes the components of net benefit expenses
recognized in the profit and loss account and the funded status and
amounts recognized in the balance sheet for the gratuity benefit.
3. The Company has exercised the option of implementing the Provisions
of Paragraph 46 of Accounting Standard 11 " Accounting for the Effects
of changes in Foreign Exchange Rates" prescribed by Companies
(Accounting Standards) Amendment Rules 2009 in the F.Y. 2008-09 and
accordingly Company has added the foreign exchange loss of Rs. NIL/- in
respect of foreign currency loans to the Fixed Assets during the
current Financial Year consequently gain for the year is reduced by the
equivalent amount. Company had capitalized Exchange Difference Loss of
Rs. 1,59,706/- in the previous year in respect of foreign currency
loans.
4. Earning per Equity Share (EPS)
Basic and Diluted EPS are recorded in accordance with Accounting
Standard 20 ''Earning per Share'' Earning per Share is calculated by
dividing the profit attributable to the Equity Shareholders (after
adjustment for deferred taxes) by the weighted average number of Equity
Shares outstanding during the period. The numbers used in calculating
Basic and Diluted EPS are as stated below.
5. Related Party Disclosure
a) Names of related parties and nature of relationship.
i) Enterprise under significant influence of Key Management personnel
1) Freshcap Investments Pvt. Ltd. (Formerly known as Capital Packaging
Pvt. Ltd.)
2) Agrofoyer Solutions Pvt. Ltd.
3) Freshfal Pvt. Ltd.
ii) Key Management Personnel
Mr.Ashok V. Motiani - Chairman and Managing Director.
Mrs.Nanita A. Motiani - Executive Director
iii) Relatives of Key Management Personnel Mrs. Priyanka Tandon
Mr. Mayank Tandon Ms. Dipti Motiani
6. Expenditure incurred on employees in receipt of remuneration of not
less than Rs. 60,00,000/- P.A. or Rs. 5,00,000/- P.M. if employed for a
part of the year.
7. Previous year''s figures have been rearranged and reclassified
wherever necessary.
Mar 31, 2012
1. BACKGROUND
The company was incorporated as a Private Limited Company on 30th
September, 1992 and it was converted in to a Public Limited Company on
22nd September, 1994.
Freshtrop Fruits Ltd. is engaged in the business of exports of fresh
fruits and vegetables to leading Supermarket chains in various parts of
Europe, Russia & Hong Kong as well as in Domestic Market. The company
is producing Fruit Pulp & Concentrate for both the Domestic &
International Customers.
3.1 50,22,500 equity shares of issued, subscribed and paid up share
capital were allotted as fully paid Bonus Shares by way of
capitalization of General Reserve during last Five years.
3.2 10,00,000 equity shares of Rs.19.40/- each (including Securities
Premium of Rs.9.40/- each) were allotted as fully paid upon conversion of
Optionally Convertible Warrants during the last Five Years.
3.3 The Company has only one class of equity shares having a par value
of Rs. 10 per share. Each Shareholder is eligible for one vote per share.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive
the remaining assets of the Company, after distribution of all
preferential amounts, in proportion of their shareholding.
Note:
1. Working Capital Loans from Banks comprise of Cash Credit and Post
Shipment Credit and are secured by way of hypothecation of Current
Assets including Stocks and Book Debts and collaterally secured by
specified Fixed Assets of the Company and Personal Guarantee of
Chairman & Managing Director.
2. Short Term Loan of Rs.2,00,00,000 (P.Y. Nil) is secured by Charge on
the Movable fixed assets of the Unit-II & Unit-Ill and Current Assets
of the company. Payable in 12 Monthly installment starting from Apr-12.
Last installment due in Mar-13. Interest Rate 14.00% p.a.
3. Unsecured Short Term Loan from Banks of Rs.Nil (P.Y. 2,00,00,000)
repayable in 6 Monthly installment starting from July-11. This loan is
backed by Personal Guarantee of Managing Director of the company.
(#) Other Trade payables represents amount payable to various parties
for packing material, consumables and Expenses.
- The Company has not received any intimation from Suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures relating to amount unpaid
as at year end together with interest paid payable under this Act have
not been given.
25.1 Employees Benefits
a) Defined Benefit Plan
gratuity:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance company in the form of
qualifying insurance policy.
The following table summarizes the components of net benefit expenses
recognized in the profit and loss account and the funded status and
amounts recognized in the balance sheet for the gratuity benefit.
29. Contingent liability:
Sr. Nature of Liabilities 2011-12 2010-11
No. In Rs. In Rs.
(a) Estimated amounts of contracts
remaining to be executed Nil 16,97,857
on capital account and not provided
(net of advances)
(b) Estimated amount of Custom/Excise
duty liability in respect 70,99,051 2,17,41,379
of Capital Goods purchased without
payment of duty under EPCG Scheme
(c) Estimated amount of duty liability
on stock of duty free 40,21,704 18,57,408
materials
(d) Disputed matters in appeals/
contested in respect of 66,12,398 68,74,097
Income Tax
(e) Bank Guarantees 32,50,000 42,51,123
(f) Other Liabilities 1,47,738 Nil
30. The Company has exercised the option of implementing the
Provisions of Paragraph 46 of Accounting Standard 11 " Accounting for
the Effects of changes in Foreign Exchange Rates" prescribed by
Companies (Accounting Standards) Amendment Rules 2009 in the F.Y.
2008-09 and accordingly Company has added the foreign exchange loss of
Rs.1,59,706/- in respect of foreign currency loans to the Fixed Assets
during the current Financial Year consequently profit for the year is
excess by the equivalent amount. Company had capitalized Exchange
Difference Loss of Rs.85,595/- in the previous year in respect of foreign
currency loans.
31. In the opinion of the Board of Directors Current Assets and Loans
and Advances have a value on realization in the ordinary course of
business equal to the amount at which they are stated in the balance
sheet.
33. Earning per Equity Share (EPS)
Basic and Diluted EPS are recorded in accordance with Accounting
Standard 20 'Earning per Share'. Earning per Share is calculated by
dividing the profit attributable to the Equity Shareholders (after
adjustment for deferred taxes ) by the weighted average number of
Equity Shares outstanding during the period. The numbers used in
calculating Basic and Diluted EPS are as stated below.
34. Related Party Disclosure
a) Names of related parties and nature of relationship.
i) Enterprise under significant influence of Key Management personnel
1) Freshcap Investments Pvt. Ltd.
(Formerly known as Capital Packaging Pvt. Ltd.)
2) Agrofoyer Solutions Pvt. Ltd.
3) Freshfal Pvt. Ltd.
ii) Key Management Personnel
Mr.Ashok V. Motiani - Chairman and Managing Director.
Mrs.Nanita A. Motiani - Executive Director
iii) Relatives of Key Management Personnel Mrs. Priyanka Tandon
Mr. Mayank Tandon Ms. Dipti Motiani
The Company has disclosed business segment as primary segment. Segments
have been identified and reported taking into account the nature of the
products the different risks and returns the organization structure and
the internal reporting systems. The main business segments are (i)
Fresh Fruits which consist of Fresh Grapes Pomegranates and Mangoes
(ii) Processed Fruits and Vegetables consist of Mango Pulp Guava Pulp
Pomegranates Concentrate and Tomato Paste & Puree,
b. Information about Secondary Segment
In respect of secondary segment information the Company has identified
its geographical segments as (i) India and (ii) Outside India. The
secondary segment information has been disclosed accordingly:
Mar 31, 2010
1. BACKGROUND
The Company was incorporated as a Private Limited Company on 30th
September, 1992 and it was converted in to a Public Limited Company on
22nd September, 1994.
Freshtrop Fruits Ltd. is engaged in the business of exports of fresh
fruits and vegetables to leading Supermarket chains in various parts of
Europe. During the year Company has also started commercial production
of Fruit Juice Concentrate Plant.
2. Contingent liability:
Sr. Nature of Liabilities 2009-10 2008-09
No. (Rs in Lacs) (Rs in Lacs)
(a) Estimated amounts of contracts rem
aining to be executed on 6.17 NIL
capital account and not provided
(net of advances)
(b) Estimated amount of Custom/Excise
duty liability in respect of 397.74 336.21
Capital Goods purchased without pa
yment of duty under EPCG Scheme
(c) Estimated amount of duty liability
on stock of duty free materials 20.28 19.29
(d) Estimated amount of duty liability
on Capital Goods procured / 24.55 33.54
imported under Bonds given by the
Company
(e) Bank Guarantees 12.50 12.50
(f) Letter of Credit 35.56 NIL
3. (A) Issued, Subscribed & Paid-up Equity Share Capital Includes :
(i) 2,08,400 equity shares of Rs 10/- each were allotted as fully paid
Bonus Shares by way of capitalization of General Reserve during the
F.Y.1994-95.
(ii) 2,50,000 equity shares of Rs 10/- each were allotted as fully paid
upon conversion of Share Warrants during the F.Y.2005-06.
(iii) 2,50,000 equity shares of Rs 10/- each were allotted as fully paid
upon conversion of Share Warrants during the F.Y.2006-07.
(iv) 50,22,500 equity shares of Rs 10/- each were allotted as fully paid
Bonus Shares by way of capitalization of General Reserve during the
F.Y.2007.08.
(B) During the year, the Company has issued 10,00,000 Warrants on
preferential basis convertible into Equity Shares of Rs 10/- each to the
promoters at an issue price calculated under SEBI (ICDR) Regulations,
2009 i.e. Rs 19.40 ( Face Value Rs 10/- and Premium Rs 9.40) convertible
at the option of the warrant holders at any time after 10th July, 2009
upto 9th January, 2011 and in accordance with the terms of issue, an
amount of Rs 48,50,000/- constituting 25% i.e. Rs 4.85 per Warrant, of
the total amount payable was received from them.
The warrant holders of 5,00,000 warrants have exercised their right to
convert those warrants into equity shares and accordingly 5,00,000
equity shares of Rs10/- each have been issued and allotted during the
year.
(C) Options outstanding as at the end of the year on un-issued share
capital:
4. (a) Working Capital Loans from Banks comprise of Cash Credit and
Post Shipment Credit and are secured by way of hypothecation of Current
Assets including Stocks and Book Debts and collaterally secured by
specified Fixed Assets of the Company and Personal Guarantee of
Chairman & Managing Director.
(b) Term Loans from Banks are secured by Equitable Mortgage of
Specified Factory Land and Building as well as Specified Fixed Assets
and Collaterally secured by hypothecation of Specified Current Assets
of the Company and Personal Guarantee of Chairman & Managing Director.
(c) Vehicle Loans are secured by way of hypothecation of Specific
Vehicles of the Company.
(d) Term Loans from Banks includes Foreign Currency loan of Rs
3,00,36,601/- (P.Y. Rs 7,71,73,005/-) secured by way of Specified Fixed
Assets of the Company.
5. The Company has exercised the option of implementing the Provisions
of Paragraph 46 of Accounting Standard 11 " Accounting for the Effects
of changes in Foreign Exchange Rates" prescribed by Companies
(Accounting Standards) Amendment Rules, 2009 in the F.Y. 2008-09 and
accordingly Company has deducted the foreign exchange gain of Rs
39,12,626/- in respect of foreign currency loans from the Fixed Assets
during the current Financial Year, consequently profit for the year is
lower by the equivalent amount. Company had capitalised Exchange
Difference Gain of Rs 14,92,591/- in the previous year in respect of
foreign currency loans.
6. Micro, Small and Medium Enterprises Development Act, 2006:
There are no Micro, Small and Medium Enterprises to whom the Company
owes dues, which are outstanding for more than 45 days as at 31st
March, 2010. This information as required to be disclosed under the
Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis
of information available with the Company.
7. In the opinion of the Board of Directors, Current Assets and Loans
and Advances have a value on realization in the ordinary course of
business equal to the amount at which they are stated in the balance
sheet.
8. The Company has provided Rs 53,09,000/- (P.Y. Rs 5,54,054/-) as
Provision for Current taxation u/s 115JB (Minimum Alternate Tax) of
Income Tax Act-1961.
9. Earning per Equity Share (EPS)
Basic and Diluted EPS are recorded in accordance with Accounting
Standard 20 Earning per Share. Earning per Share is calculated by
dividing the profit attributable to the Equity Shareholders ( after
adjustment for deferred taxes ) by the weighted average number of
Equity Shares outstanding during the period. The numbers used in
calculating Basic and Diluted EPS are as stated below.
10. Related Party Disclosure
a) Names of related parties and nature of relationship.
i) Enterprise under significant influence of Key Management personnel
1) Freshcap Investments Pvt. Ltd. (Formerly known as Capital Packaging
Pvt. Ltd.)
2) Freshtrop Plantations Pvt. Ltd.
3) Agrofoyer Solutions Pvt. Ltd.
4) Agrofoyer Investments Pvt. Ltd.
5) Freshfal Pvt. Ltd.
ii) Key Management Personnel
Mr.Ashok V. Motiani - Chairman and Managing Director.
Mrs.Nanita A. Motiani - Executive Director iii) Relatives of Key
Management Personnel
Mrs. Priyanka Tandon
Mr. Mayank Tandon
Ms. Dipti Motiani
Note : No amounts pertaining to related parties have been provided for
as doubtful debts. Also no amounts have been written off or written
back during the year.
11. Employees Benefits
a) Defined Benefit Plan
Gratuity:
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with an insurance Company in the form of
qualifying insurance policy.
The following table summarizes the components of net benefit expenses
recognized in the profit and loss account and the funded status and
amounts recognized in the balance sheet for the gratuity benefit.
12. The Company has entered in following forward exchange contracts
that are outstanding as at 31st March 2010 to hedge the foreign
currency risks of firm commitments
13. Segment information as per Accounting Standard 17 on Segment
Reporting for the year ended 31st March 2010
The Company has disclosed business segment as primary segment. Segments
have been identified and reported taking into account the nature of the
products, the different risks and returns, the organization structure
and the internal reporting systems. The main business segments are (i)
Fresh Fruits which consist of Fresh Grapes, Pomegranates and Mangoes
(ii) Processed Fruits and Vegetables consist of Mango Pulp, Guava Pulp,
Pomegranates Concentrate and Tomato Paste & Puree.
b. Information about Secondary Segment
In respect of secondary segment information, the Company has identified
its geographical segments as (i) India and (ii) Outside India. The
secondary segment information has been disclosed accordingly:
14. Expenditure incurred on employees in receipt of remuneration of not
less than Rs 24,00,000/- P.A. or Rs 2,00,000/- P.M. if employed for a
part of the year.
15. Payment to Statutory Auditors
16. Managerial Remuneration
17. Value of Imports calculated on CIF basis.
18. Expenditure in Foreign Currency:
19. Earning in Foreign Currency
20. Licensed and Installed Capacity
Installed capacity is as certified by the management and relied upon by
the Auditors. Capacity utilization is restricted by the availability of
raw materials due to seasonal nature of business.
21. Additional information pursuant to the Provisions of para 3, 4C and
4D of Part II of Schedule VI to the Companies Act, 1956:
22. Capital Work-in-progress includes Ã
23. Previous years figures have been rearranged and reclassified
wherever necessary.
24. Balance Sheet abstract and the Companys General Business Profile: