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Notes to Accounts of KSE Ltd.

Mar 31, 2018

Note 7.1. See Note 1.20 for method of valuation of inventories.

Note 7.2. Raw material include goods in transit amounting to Rs. 131.17 lakhs (previous year Nil).

Note 11.1 Balances with banks include restricted bank balances of Rs. 194.59 lakhs (Previous year Rs. 191.30 lakhs). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs. 4.86 lakhs (Previous year Rs. 4.60 lakhs) and earmarked bank balances for (1) unpaid dividends Rs. 94.73 lakhs (Previous year Rs. 105.70 lakhs) and (2) deposit repayment reserve account Rs. 95.00 lakhs (Previous year Rs. 81.00 lakhs).

Note 15.2 Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of directors has recommended a final dividend of Rs. 60 per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 2013. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 15.4 There was no fresh issue or buying back of shares in the preceding five years.

Note 15.5 There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 20.1 The cash credit facility is secured by (1) First Charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Konikkara Units; and (2) Equitable mortgage of immovable properties of Irinjalakuda and Konikkara Units by deposit of title deeds.

Note 20.2 See Note 17.2 for rate of interest and terms of repayment of public deposits.

Note 22.1 Public Deposits include deposits accepted from Directors Rs. 1.75 lakhs (Previous year Rs. 0.48 lakh) on the same terms and conditions as applicable to other depositors.

Note 22.2 Interest accrued but not due on public deposits includes Rs. 0.04 lakh (Previous year Rs. 0.16 lakh) due to Directors.

Note 22.3 See Note 17.2 for rate of interest and terms of repayment of public deposits.

1. ADDITIONAL INFORMATION

1.1 Fair Value Measurement

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

There were no transfers between Level 1 and Level 2 during the year.

Financial Risk Management - Objectives and Policies

The Company has a well-managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.

1) Liquidity Risk

Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The company has sound financial strength represented by its aggregate current assets including current investments as against aggregate current liabilities and its strong equity base. In such circumstances, liquidity risk is insignificant.

2) Market Risk

As the Company’s overall debt is less compared to its equity, the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company’s investments are predominantly held in fixed deposits and debt mutual funds. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility. The Company also invests in mutual fund under schemes of leading fund houses. Such investments are susceptible to market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of most of the mutual fund schemes in which the Company has invested, such price risk is not significant.

3) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks and other receivables.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited because the counterparties are banks and recognized financial institutions with high credit ratings.

For trade receivables, as a practical expedient, the company is accepting advance from customers against sale of goods. Hence credit risk is negligible.

4) Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risks.

The Company has established risk management policies to hedge the volatility arising from exchange rate fluctuations in respect of firm commitments and highly probable forecast transactions, through foreign exchange forward contracts. The proportion of forecast transactions that are to be hedged is decided based on the size of the forecast transaction and market conditions. As the counterparty for such transactions are highly rated banks, the risk of their non-performance is considered to be insignificant.

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

The Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.

As at 31st March, 2018, the Company has only one class of equity shares. The company is not subject to any externally imposed capital requirements.

1.2 First Time Adoption of Ind AS

These financial statements, for the year ended 31st March 2018, are the first financial statements prepared by the company in accordance with Ind AS. For the periods upto and including the year ended 31st March 2017, the company prepared its financial statements in accordance with Indian GAAP including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31st March 2018, together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting policies. For the purpose of these financial statements, the opening balance sheet was prepared as at 1st April 2016, the date of transition to Ind AS. The principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2016 and the financial statements as at and for the year ended 31st March 2017 has been explained in Note No. 33.3.

Exemptions applied:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS and the following exemptions have been applied while preparing the financial statements complying with Ind AS:

a. Deemed cost for Property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

b. Determining whether an arrangement contains a lease

Appendix C of Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease, at the inception of the contract or arrangement. However, Company has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition.

c. Derecognition of financial assets and financial liabilities

Company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

d. Classification and measurement of financial assets

Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS

e. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date.

3. Details of Measurement and recognition difference between Ind AS and Previous GAAP for the year ended 31st March 2017

1) Fair Valuation of Investments

Under the previous GAAP investments in mutual funds were classified as long term investments or current investments based on the intended holding period and realisability. Long term investments were carried at cost less provision for other than the temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March, 2017. This increased the retained earnings by Rs. 6.75 lakhs (net of deferred tax) as at 31st March 2017 (1st April 2016 by Rs.Nil)

2) Proposed dividend

Under Previous GAAP upto year ended 31st March, 2016, proposed dividend including dividend distribution tax (DDT), are recognized as liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognized as liability in the period in which it is declared by Company, usually when approved by shareholders in a general meeting or paid.

Therefore, the dividend liability (proposed dividend) including dividend distribution tax liability amounting to Rs. 770.29 lakhs has been derecognised in the retained earnings as on the date of transition.

Proposed dividend including dividend distribution tax liability amounting to Rs. 770.29 lakhs which was derecognised as on the transition date, has been recognised in retained earnings during the year ended 31st March, 2017 as declared and paid.

3) Remeasurement benefit of defined benefit plans

Under previous GAAP actuarial gains and losses on employees defined benefit obligations were recognised as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognised in Other Comprehensive Income as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognised in Other Comprehensive Income.

For the year ended 31st March, 2017, remeasurement of gratuity liability resulted in a net benefit of Rs. 135.55 lakhs which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognised separately in Other Comprehensive Income. This has resulted in decrease in employee benefits expense by Rs. 135.55 lakhs and loss in Other Comprehensive Income by Rs. 135.55 lakhs for the year ended 31st March, 2017. Consequently, tax effect of the same amounting to Rs. 46.91 lakhs is also recognised separately in Other Comprehensive Income.

The above changes do not affect Equity as at date of transition to Ind AS and as at 31st March, 2017. However, Profit before tax and profit for the year ended 31st March, 2017 decreased by Rs. 135.55 lakhs.

4) Deferred tax

Previous GAAP requires deferred tax accounting using 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. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under previous GAAP

5) 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 expenses that are not recognized in profit or loss, but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans and effective portion of cash flow hedge. The concept of other comprehensive income did not exist under the previous GAAP

6) Statement of cash flows

The transition from Previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

Under Ind AS, bank overdrafts repayable on demand and which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. However, the management is of the view that the Cash Credit facility availed from banks by the company is distinct from an overdraft facility and hence, they are continued to be shown as part of financing activities, as hitherto done under the previous GAAP

7) Other matters

In the preparation of these Ind-AS Financial Statements, Company has made several presentation differences between previous GAAP and Ind-AS. These differences have no material impact on reported profit or total equity. Accordingly, some assets and liabilities have been reclassified into another line item under Ind-AS at the date of transition. Further, in these Financial Statement, some line items as described differently under Ind-AS compared to previous GAAP although the assets and liabilities included in these line items are unaffected.

Details in respect of claims against the Company not acknowledged as debts disclosed above are as follows:

(i) Assistant Commissioner, Central Excise and Service Tax has issued Order demanding Central Excise Duty of Rs. 34,52,320 (including penalty of Rs. 3 lakhs) and interest as applicable, by disallowing exemption claimed on fatty acid from levy of Central Excise Duty from December, 2014 to October, 2016. Aggrieved by the Order Company has filed an appeal before the Commissioner (Appeals), Central Excise and Service Tax.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs. 25,40,012 (including interest Rs. 12,63,624) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs. 2,12,062 (including interest Rs. 96,181) for the financial year 2010-11 for the difference in the monthly purchase turnover uploaded to the website of Kerala Commercial Taxes. Aggrieved by the Order, Company has filed appeal before the Deputy Commissioner (Appeals), Department of Commercial Taxes, Thrissur.

(iv) Southern Railway had raised two demands aggregating to Rs. 57,10,829 on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(v) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI, before the Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to Rs. 1,56,862 for delay in payment of contributions relating to the period when the above stay was in operation and Rs. 19,214 towards employees’ contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of Rs. 1,14,199 for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding Rs. 1,62,952 as interest and Rs. 60,080 as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. The Company remitted Rs. 75,000 towards this demand on the direction of the Court, while granting stay. The balance demand not paid is Rs. 1,48,032, and the case is still pending before ESI Court, Palakkad.

(vi) Kerala State Electricity Board (KSEB) had issued an order demanding Rs. 1,11,780 as charges for additional connected load in Konikkara Dairy Unit of the company relating to the period from November, 2001 to July, 2002. This order has been challenged by the company before the Hon. High Court of Kerala which is still pending.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is considered necessary at this stage.

(xi) Note on actuarial risks

These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary Risk.

(a) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

(b) Interest Risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

(c) Longevity Risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

(d) Salary Risk

The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Notes:

1. The above disclosures are based on information certified by the independent actuary and relied upon by the Company.

2. The plan assets of the Company are managed by the Life Insurance Corporation of India in terms of insurance policies taken to fund the obligations of the Company with respect to its Gratuity and Compensated Absences Plan. Information on categories of plan assets is not available with the Company.

3.1 Stores and spares consumed includes cost of materials used for repairs and maintenance.

3.2 In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

3.3 The Company is purchasing freezers and selling the same at concessional rate to distributors of ice cream. The cost of purchases and the sales value of the freezers are debited/credited to the Advertisement and Sales Promotion shown under Note 31 - Other Expenses.

3.4 Balance with Government Authorities under Note 14 includes Goods and Service Tax (GST) which in the opinion of the management is either refundable or eligible for set off against future GST liabilities.

3.5 The company has a system of periodically obtaining and reconciling confirmations of balances with banks, suppliers and customers.

3.6 Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.


Mar 31, 2016

Note 1. There was no fresh issue or buying back of shares in the preceding five years.

Note 2. There was neither bonus issue nor any other issue of shares in the preceding five years.

3. ADDITIONAL INFORMATION

4. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.

5. In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

6. Details in respect of claims against the Company not acknowledged as debts disclosed under Note No. 29.3 are as follows:

(i) Commissioner of Customs, Cochin has issued Orders demanding Rs.47,05,015 for short levy of customs duty on import of Machinery for cattle feed plant and spare parts due to difference in classification under Customs Tariff Head. Aggrieved by the order, Company had filed an appeal before the Hon. Customs, Excise and Service Tax Appellate Tribunal, Bangalore and the appeal is pending.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs.25,40,012 (including interest Rs.12,63,624) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Southern Railway had raised two demands aggregating to Rs.57,10,829 on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(iv) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI, before the

Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to Rs.1,56,862 for delay in payment of contributions relating to the period when the above stay was in operation and Rs.19,214 towards employees’ contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of Rs.1,14,199 for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding Rs.1,62,952 as interest and Rs.60,080 as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. The Company remitted Rs.75,000 towards this demand on direction by the Court, while granting stay. The balance demand is Rs.1,48,032, and the case is still pending before ESI Court, Palakkad.

(v) Kerala State Electricity Board (KSEB) had issued an order demanding Rs.1,11,780 as charges for additional connected load in Konikkara Dairy Unit of the company relating to the period from November, 2001 to July, 2002. This order has been challenged by the company before the Hon. High Court of Kerala which is still pending.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is considered necessary at this stage.

7. The landed property of the company located at Mysore with an area of around 4 acres 10 cents was sold during the financial year 2014-15 for a total sale consideration of Rs.1,350 lakhs. Profit on the sale of the property earned by the Company amounting to Rs.1,045.71 lakhs has been shown in the Statement of profit and loss as Exceptional item in that year.


Mar 31, 2015

1. Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year

Outstanding at the beginning of the year

Add : Issued during the year

Outstanding at the end of the year

2. Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of directors declared two interim dividends of Rs. 10 per share and Rs. 20 per share on equity share of Rs. 10 each at their meetings held on 12th February, 2015 and 25th March, 2015 respectively. Further, the Board of Directors at its meeting held on 30th May, 2015 has recommended a final dividend of Rs. 20 per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting. The total dividend appropriation for the year ended 31st March, 2015 amounts to Rs. 1922.23 lakhs, including dividend distribution tax of Rs. 322.23 lakhs.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 2013. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. There was no fresh issue or buying back of shares in the preceding five years.

4. There was neither bonus issue nor any other issue of shares in the preceding five years.

5. The Board of directors declared two interim dividends of Rs. 10 per share and Rs. 20 per share on equity share of Rs. 10 each. Further, the Board of Directors has recommended a final dividend of Rs. 20 per equity share of Rs.10 each.

6. See Note 9 for current maturities of long-term debt.

7. Public Deposits include deposits accepted from Directors Rs. 1.48 lakhs (Previous year Rs. 3.96 lakhs) on the same terms and conditions as applicable to other depositors.

8. The cash credit and short term loans are secured by (1) First Charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Konikkara Units; and (2) Equitable mortgage of immovable properties of Irinjalakuda and Konikkara Units by deposit of title deeds.

9. See Note 4.2 for rate of interest and terms of repayment of public deposits.

10. The amount due to Micro, Small and Medium Enterprises as defined in the "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. The disclosures relating to Micro, Small and Medium Enterprises are as under:

As at As at 31.03.2015 31.03.2014 Rs. in lakhs Rs. in lakhs

(i) Principal amount due and remaining — — unpaid to any supplier as at the end of each accounting year

(ii) Interest due on the above and — — remaining unpaid to any supplier as at the end of each accounting year

(iii) Interest paid by the company along — — with the amounts of the payment made to the supplier beyond the appointed day during each accounting year

(iv) Interest due and payable for the — — period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Act

(v) Interest accrued and remaining — — unpaid at the end of each accounting year

(vi) Interest remaining due and payable — — even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprises

11. Public Deposits include deposits accepted from Directors Rs. 2.96 lakhs (Previous year Rs. 5.10 lakhs) on the same terms and conditions as applicable to other depositors.

12. Interest accrued but not due on public deposits includes Rs. 0.37 lakh (Previous year Rs. 0.30 lakh) due to Directors.

13. See Note 4.2 for rate of interest and terms of repayment of public deposits.

14. Unpaid dividend includes second interim dividend of Rs. 20 per equity share amounting to Rs. 640 lakhs declared by the Board of Directors on 25th March, 2015 and not distributed as on 31st March, 2015.

15. Balance with banks include restricted bank balances of Rs. 832.14 lakhs (Previous year Rs. 87.44 lakhs) and time deposit with banks with a maturity of more than 12 months Rs. 0.02 lakh (Previous year Rs. 0.02 lakh). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs. 7.96 lakhs (Previous year Rs. 7.51 lakhs) and earmarked bank balances for (1) unpaid dividends Rs. 714.18 lakhs (Previous year Rs. 39.93 lakhs) and (2) deposit repayment reserve account Rs. 110.00 lakhs (Previous year Rs. 40 lakhs).

16. Interest Expenses on Public Deposits include Rs. 0.78 lakh (Previous year Rs. 0.95 lakh) being interest paid on deposits accepted from Directors.

17. ADDITIONAL INFORMATION

18. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.

19. In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

20. Contingent liabilities and commitments (to the extent not provided for in the accounts)

2014-15 Rs. in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts (See Note 29.4):

(i) Customs Duty 47.05

(ii) Kerala General Sales Tax 25.40

(iii) Freight/demurrage demanded 57.11 by Indian Railways (iv) ESI 4.38

(v) Electricity 1.12

b) Bank guarantees in favour of KSEB 42.70

c) Other money for which the Company is contingently liable — 177.76

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account not provided for 2.33

(b) Uncalled liability on shares and other investments partly paid —

(c) Letter of credit for import of raw materials 728.96 731.29

TOTAL 909.05

2013-14 Rs. in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts (See Note 29.4):

(i) Customs Duty 47.05

(ii) Kerala General Sales Tax 25.40

(iii) Freight/demurrage demanded 57.11 by Indian Railways (iv) ESI 4.38

(v) Electricity 1.12

b) Bank guarantees in favour of KSEB 38.28

c) Other money for which the Company is contingently liable — 173.34

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account not provided for 2.95

(b) Uncalled liability on shares and other investments partly paid —

(c) Letter of credit for import of raw materials 1,036.64 1,039.59

TOTAL 1,212.93

21. Details in respect of claims against the Company not acknowledged as debts disclosed under Note No. 29.3 are as follows:

(i) Commissioner of Customs, Cochin has issued Orders demanding Rs. 47,05,015 for short levy of customs duty on import of Machinery for cattle feed plant and spare parts due to difference in classification under Customs Tariff Head. Aggrieved by the order, Company had filed an appeal before the Hon. Customs, Excise and Service Tax Appellate Tribunal, Bangalore and the appeal is pending.

(ii) Assistant Commissioner (Assessment), Department of Commercial taxes, Thrissur had issued order demanding Rs. 25,40,012 (including interest Rs. 12,63,624) for the financial year 2000-01 against sales tax exemption claimed on sale of refined vegetable oil. On appeal, The Deputy Commissioner (Appeals), Ernakulam had issued an order directing the assessing authority to reconsider the matter. The final order from the Assistant Commissioner (Assessment) is not yet received.

(iii) Southern Railway had raised two demands aggregating to Rs. 57,10,829 on grounds of undercharge due to incorrect classification of deoiled rice bran. The claim has been challenged by the Company before the Hon. High Court of Kerala and the writ petition is still pending before the Court.

(iv) (a) Some of the employees of the company had challenged the enhancement of wage limit for coverage of ESI, before the

Hon. High Court of Kerala and the Court had granted stay. The cases were disposed off by the Court in favour of ESI Corporation and Company had remitted contributions of employer and employees.

Subsequently, ESI Corporation demanded interest amounting to Rs. 1,56,862 for delay in payment of contributions relating to the period when the above stay was in operation and Rs. 19,214 towards employees’ contribution in respect of retired/resigned employees during the said period. Company had preferred appeal before the ESI Court, Palakkad which was decided in favour of the Company. Aggrieved by the order, ESI Corporation had filed appeal before the Hon. High Court of Kerala challenging the orders of ESI Court, Palakkad, and the said appeal is still pending.

ESI Corporation had also demanded damages of Rs. 1,14,199 for the delay in remittance of contribution mentioned above and the Company had filed an appeal before the ESI Court, Palakkad which is still pending.

(b) ESI Corporation has issued order demanding Rs. 1,62,952 as interest and Rs. 60,080 as damages for delay in remittance of contribution on omitted wages for the period from 01.04.1996 to 31.03.2002. The Company remitted Rs. 75,000 towards this demand on direction by the Court, while granting stay. The balance demand is Rs. 1,48,032, and the case is still pending before ESI Court, Palakkad.

(v) Kerala State Electricity Board (KSEB) had issued order demanding Rs. 1,11,780 for additional connected load in Konikkara Dairy Unit of the company relating to the period from November, 2001 to July, 2002. This demand has been challenged by the company before the Hon. High Court of Kerala which is still pending.

In all the above cases company is legally advised that there is a good chance for full relief and hence no provision is considered necessary at this stage.

22. The landed property of the company located at Mysore with an area of around 4 acres 10 cents was sold during the financial year 2014-15 for a total sale consideration of Rs. 1,350 lakhs. Profit on the sale of the property earned by the Company amounting to Rs. 1,045.71 lakhs has been shown in the Statement of profit and loss as Exceptional item.

1. The above disclosures are based on information certified by the independent actuary and relied upon.

2. The plan assets of the Company are managed by the Life Insurance Corporation of India in terms of insurance policies taken to fund the obligations of the Company with respect to its Gratuity and Compensated Absences Plan. Information on categories of plan assets is not available with the Company.

4. No amount has been provided/written off as doubtful debts or advances written back in respect of payables due from or to any of the above related parties.


Mar 31, 2014

Note 1. Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors at its meeting held on 29th May, 2014 has recommended a final dividend of Rs. 20 (Rupees Twenty only) per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting. The total dividend appropriation for the year ended 31st March, 2014 amounts to Rs. 748.77 lakhs, including dividend distribution tax of Rs. 108.77 lakhs.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaing assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 1956. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 2. There was no fresh issue or buying back of shares in the preceding five years.

Note 3. There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 4. Final dividend of Rs. 20 per share proposed by Board is subject to approval of shareholders in the ensuing annual general meeting.

Note 5. See Note 9 for current maturities of long-term debt.

Note 6. Public Deposits include deposits accepted from Directors Rs. 3.96 lakhs (Previous year Rs. 7.31 lakhs) on the same terms and conditions as applicable to other depositors.

Note 7. See Note 4.2 for rate of interest and terms of repayment of public deposits.

Note 8. Term Loan from ICICI Bank Ltd. is secured by (1) Equitable mortgage of all immovable properties of Irinjalakuda, Swaminathapuram and Konikkara Units by deposit of title deeds; and (2) First charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Swaminathapuram Units.

Note 9. Public Deposits include deposits accepted from Directors Rs. 5.10 lakhs (Previous year Rs. Nil) on the same terms and conditions as applicable to other depositors.

Note 10. Interest accrued but not due on public deposits includes Rs. 0.30 lakh (Previous year Rs. 0.12 lakh) due to Directors.

Note 11. See Note 4.2 for rate of interest and terms of repayment of public deposits.

Note 12. Balance with banks include restricted bank balances of Rs. 47.44 lakhs (Previous year Rs. 49.88 lakhs) and time deposit with banks with a maturity of more than 12 months Rs. 0.02 lakh (Previous year Rs. 0.02 lakh). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs. 7.51 lakhs (Previous year Rs. 13.57 lakhs) and earmarked balances for unpaid dividends Rs. 39.93 lakhs (Previous year Rs. 36.31 lakhs).

Note 13.: Interest Expenses on Public Deposits include Rs. 0.95 lakh (Previous year Rs. 0.80 lakh) being interest paid on deposits accepted from Directors.

14. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year''s layout.

15. In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

16. Contingent liabilities and commitments (to the extent not provided for in the accounts)

2013-14 2012-13 Rs. in lakhs Rs. in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

(i) Customs Duty 47.05 47.05

(ii) Kerala General Sales Tax 25.40 25.40

(iii)Freight/demurrage demanded by Indian Railways 56.26 87.72

(iv) ESI & EPF 3.57 4.34

(v) Electricity 1.12 1.12

b) Bank guarantees in favour of KSEB 38.28 20.40

c) Other money for which the Company is contingently liable - 171.68 - 186.03

II. Commitments

(a)Estimated amount of contracts remaining to be executed on capital account not provided for 2.95 0.41

(b)Uncalled liability on shares and other investments partly paid - -

(c)Letter of credit for import of raw materials 1,036.64 1,039.59 - 0.41

TOTAL 1,211.27 186.44

Notes : a) Unallocated assets include non-current investments Rs. 7.50 lakhs ( Rs. 7.50 lakhs) and cash and bank balances Rs. 314.41 lakhs (Rs. 375.78 lakhs).

b) Unallocated liabilities include deferred tax Rs. 155.32 lakhs (Rs. 170.29 lakhs), long-term borrowings Rs. 649.25 lakhs ( Rs. 688.30 lakhs), short-term borrowings Rs. 728.90 lakhs (Rs. 1,945.59 lakhs), provision for taxation (net of advance) Rs. 29.03 lakhs (Rs. 47.26 lakhs) and provision for proposed dividend and dividend distribution tax Rs. 748.77 lakhs (Rs. 374.38 lakhs).

c) Figures in brackets denote the corresponding figures for the previous year.


Mar 31, 2013

Note 1.1 Terms/rights, Preferences and Restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in the case of interim dividend, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors at its meeting held on 29th May, 2013 has recommended a final dividend of Rs. 10 (Rupees Ten only) per equity share of Rs. 10 each, subject to approval of shareholders at the ensuing annual general meeting. The total dividend appropriation for the year ended 31st March, 2013 amounts to Rs. 374.38 lakhs, including dividend distribution tax of Rs. 54.38 lakhs.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaing assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 1956. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1.2 There was no fresh issue or buying back of shares in the preceding five years.

Note 1.3 There was neither bonus issue nor any other issue of shares in the preceding five years.

Note 2.1 See Note 9 for current maturities of long-term debt.

Note 2.2 Term Loan from ICICI Bank Ltd. is secured by (1) Equitable mortgage of all immovable properties of Irinjalakuda, Swaminathapuram and Konikkara Units by deposit of title deeds; and (2) First charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Swaminathapuram Units.

Note 2.3 Public Deposits include deposits accepted from Directors Rs. 7.31 lakhs (Previous year Rs. 5.10 lakhs) on the same terms and conditions as applicable to other depositors.

Note 3.1 Term Loan from ICICI Bank Ltd. is secured by (1) Equitable mortgage of all immovable properties of Irinjalakuda, Swaminathapuram and Konikkara Units by deposit of title deeds; and (2) First charge by way of hypothecation of all current assets of the Company and Plant and Machinery of Irinjalakuda and Swaminathapuram Units.

Note 3.2 Public Deposits include deposits accepted from Directors Rs. Nil (Previous year Rs. 1.00 lakh) on the same terms and conditions as applicable to other depositors.

Note 3.3 Interest accrued but not due on public deposits includes Rs. 0.12 lakh (Previous year Rs. 0.07 lakh) due to Directors.

Note 3.4 See Note 4.3 for rate of interest and terms of repayment of public deposits.

4.1 Related Party Disclosure

a) Key management personnel

Mr. M.C. Paul - Chairman and Managing Director

Mr. P.K. Varghese - Executive Director

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Rose Super Market Pvt. Ltd.; Emceepee Agencies; Surya Agencies; and Pokkath Auto Fuels.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Fiju; Mrs. Anu Viju; Mrs. Megha Ann Tomy; Mrs. Mariamma Francis; Mrs. Seema Suresh; Mrs. Sawmiya Varghese and Mrs. Alpho Varghese.


Mar 31, 2012

Note 1.1: Gratuity Reserve represents amount set apart in earlier years towards gross (undiscounted) gratuity liability of all the eligible employees as reduced by the amount available with the Employees Group Gratuity Fund Trust of the Company constituted under the Group Gratuity cum Assurance Scheme of the Life Insurance Corporation of India, including interest accrued thereon. Excess Gratuity Reserve as at the year-end over such liability, if any, is retained therein.

Note 1.2: Final dividend of Rs. 11 per share (Previous year Rs. 10 per share) proposed by Board is subject to approval of shareholders in the ensuing annual general meeting.

Note 2.1 :Balance with banks include restricted bank balances of Rs 46.01 lakhs (Previous year Rs 43.45 lakhs) and time deposit with banks with a maturity of more than 12 months Rs 0.02 lakh (Previous year Rs 0.02 lakh). The restrictions are primarily on account of bank balances held as margin money deposits against guarantees Rs 12.81 lakhs (Previous year Rs 12.81 lakhs) and earmarked balances for unpaid dividends Rs 33.20 lakhs (Previous year Rs 30.64 lakhs).

Note 3.1: Interest Expenses on Public Deposits include Rs 0.65 lakh (Previous year Rs 0.51 lakh) being interest paid on deposits accepted from Directors.

4. ADDITIONAL INFORMATION

4.1 Till the year ended 31st March, 2011, the Financial Statements of the Company were prepared and presented as per old Schedule VI to the Companies Act, 1956. The Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company from the year under report. The Company has reclassified and regrouped previous year figures to conform to the classification as per the Revised Schedule VI.

4.2 In the opinion of the Board, current assets and long term loans & advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

4.3 Contingent liabilities and commitments (to the extent not provided for in the accounts)

Current Year Previous Year Rs in lakhs Rs in lakhs

I. Contingent Liabilities

a) Claims against the Company not acknowledged as debts:

(i) Customs Duty 47.05 47.05

(ii) Kerala General Sales Tax 25.40 25.40

(iii) Freight/demurrage demanded by Indian Railways 87.72 82.42

(iv) ESI 3.57 3.57

(v) Electricity 1.33 1.33

b) Bank guarantees in favour of KSEB 12.81 12.81

c) Other money for which the Company is contingently liable - 177.88 - 172.58

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account not provided for 29.63 40.58

(b) Uncalled liability on shares and other investments partly paid - -

(c) Letter of credit for import of raw materials / capital goods - 29.63 640.28 680.86

TOTAL 207.51 853.44

Notes : a) Unallocated assets include capital work in progress and intangible assets under development Rs 70.88 lakhs ( Rs 96.37 lakhs), non-current investments Rs 7.50 lakhs ( Rs 7.50 lakhs) and cash and bank balances Rs 583.33 lakhs (Rs 348.07 lakhs).

b) Unallocated liabilities include deferred tax Rs 182.54 lakhs (Rs 205.02 lakhs), long-term borrowings Rs 717.37 lakhs ( Rs 935.82 lakhs), short-term borrowings Rs 1,763.56 lakhs (Rs 1,447.80 lakhs), provision for taxation (net of advance) Rs 74.67 lakhs (Rs 20.60 lakhs) and provision for proposed dividend and corporate dividend tax Rs 409.10 lakhs (Rs 371.91 lakhs).

c) Figures in brackets denote the corresponding figures for the previous year.

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Rose Super Market Pvt. Ltd.; Emceepee Agencies; Surya Agencies; and Pokkath Auto Fuels.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Ann; Mrs. Anu Maria; Mrs. Megha Ann Tomy; Dr. Fiju Chacko; Mrs. Mariamma Francis; Mrs. Seema Suresh and Sawmiya Varghese.

e) No amount has been provided / written off as doubtful debts or advances written back in respect of payables due from or to any of the above related parties.


Mar 31, 2011

1. Gratuity Reserve under Reserves & Surplus represents amount set apart towards gross (undiscounted) gratuity liability of all the eligible employees as reduced by the amount available with the Employees Group Gratuity Fund Trust of the Company constituted under the Group Gratuity cum Assurance Scheme of the Life Insurance Corporation of India, including interest accrued thereon . Excess Gratuity Reserve as at the year-end over such liability, if any, is retained therein. The contribution made to the Trust is charged to Profit and Loss Account as mentioned in Note No. (A) (xi).

2. In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

3. Secured loans include loans repayable within one year - Rs. 10,84,97,210 (Previous Year Rs. 16,72,50,763).

4. Contingent Liabilities not provided for in the accounts

Current Year Previous Year Rs. Rs.

a) Claims against the Company not acknowledged as debts:

(i) Customs Duty 47,05,015 47,05,015

(ii) Kerala General Sales Tax 25,40,012 25,40,012

(iii) Freight/demurrage demanded by Indian Railways 82,42,304 75,95,504

(iv) ESI 3,57,085 2,90,275

(v) Electricity 1,33,288 9,59,822

b) Estimated amount of contracts remaining to be executed on capital account not provided for 40,58,395 85,97,965

c) (i) Letter of credit for import of raw materials / capital goods 6,40,28,100 1,53,68,000

(ii) Bank Guarantees 12,81,430 8,72,985

5. Rates and Taxes under Manufacturing, Administrative, Selling and Other Expenses (Schedule 12) include Rs. 50,09,289 in respect of sales tax demands (including interest Rs. 5,51,447) for the financial years 2001-02 and 2004-05 remitted under Amnesty Scheme of the Government of Kerala. The demand arose as a result of rejection of sales tax exemption claimed by the Company and the matter is on appeal.

6. Fixed Deposits grouped under Unsecured Loans include deposits due to Directors Rs. 4,77,000 (Previous year Rs. 4,69,000), the Interest accrued but not due on deposits grouped under Current Liabilities include interest accrued on the deposits accepted from Directors Rs. 4,331 (Previous year Rs. 3,992) and Interest and Finance Charges include Rs. 51,403 (Previous year Rs. 49,063) being interest paid on deposits accepted from Directors. The said deposits were accepted under the Companies (Acceptance of Deposits) Rules, 1975 on the same terms and conditions as applicable to other depositors.

7. Steps have been taken to identify the suppliers who qualify under the definition of micro and small enterprises, as defned under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from the suppliers regarding their status under the said Act as at 31st March 2011, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

8. Related Party Disclosure

a) Key management personnel

Mr. M.C. Paul - Chairman and Managing Director

Mr. P.K. Varghese - Executive Director

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Rose Super Market Pvt. Ltd.; Emceepee Agencies; Surya Agencies; Supreme Traders and Pokkath Auto Fuels.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Ann; Mrs. Anu Maria; Mrs. Megha Ann Tomy; Mrs. Anu V. Koithara and Mrs. Mariamma Francis.

e) No amount has been provided / written off as doubtful debts or advances written back in respect of payables due from or to any of the above related parties.

9. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year's layout. Figures in brackets denote the corresponding figures for the previous year.


Mar 31, 2010

1. Gratuity Reserve under Reserves & Surplus represents amount set apart towards gross (undiscounted) gratuity liability of all the eligible employees as reduced by the amount available with the Employees Group Gratuity Fund Trust of the Company constituted under the Group Gratuity cum Assurance Scheme of the Life Insurance Corporation of India, including interest accrued thereon . Excess Gratuity Reserve as at the year end over such liability, if any, is retained therein. The contribution made to the Trust is charged to Proft and Loss Account as mentioned in Note No. (A) (vii) and (B) (b) above.

2. In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realised in the ordinary course of business.

3. Secured loans include loans repayable within one year - Rs. 16,72,50,763 (Previous Year Rs. 18,38,19,292).

4. Contingent Liabilities not provided for in the accounts Current Year Previous Year Rs. Rs. a) Claims against the Company not acknowledged as debts: (i) Electricity / ESI demands disputed by the Company 12,50,097 10,51,325 (ii) Demands by Indian Railways towards freight/demurrage disputed by the Company 75,95,504 56,26,704 b) Estimated amount of contracts remaining to be executed on capital account not provided for 85,97,965 1,05,00,653 c) (i) Letter of credit for import of raw materials/capital goods 1,53,68,000 5,84,80,274

(ii) Bank Guarantees 8,72,985 8,72,985

8. Disclosures required under Accounting Standard 15 “Employee Benefts” (Revised 2005)

I. Defned Contribution Plans

During the year the following amounts have been recognised in the proft and loss account on account of defned contribution plans:

11. Expenses incurred towards setting up of a 500 TPD new cattle feed plant at Irinjalakuda up to 14.07.2009, the date on which it was commissioned and towards setting up of an ice cream plant at Vedagiri upto 31.03.2010 included under pre-operative expenses under capital work-in-progress have been itemised as per Schedule VI Part II of the Companies Act, 1956 as under:

5. Fixed Deposits grouped under Unsecured Loans include deposits due to Directors Rs. 4,69,000 (Previous year Rs. 4,55,000), the Interest accrued but not due on deposits grouped under Current Liabilities include interest accrued on the deposits accepted from Directors Rs. 3,992 (Previous year Rs. 10,007) and Interest and Finance Charges include Rs. 49,063 (Previous year Rs.42,718) being interest paid on Deposits accepted from Directors. The said Deposits were accepted under the Companies (Acceptance of Deposits) Rules, 1975 on the same terms and conditions as applicable to other depositors.

6. Steps have been taken to identify the suppliers who qualify under the defnition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from the suppliers regarding their status under the said Act as at 31st March 2010, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

7. Related Party Disclosure

a) Key management personnel

Mr. M.C. Paul - Chairman and Managing Director Mr. P.K. Varghese - Executive Director

b) Enterprises over which key management personnel and their relatives are able to exercise signifcant infuence having transactions with the Company

M/s. Emceepee Traders; M.C. Paul & Sons; MCP Agro Technologies Pvt. Ltd.; MCP Rose Super Market Pvt. Ltd.; M.P. Jackson & Bros.; Emceepee Agencies; Surya Agencies and Supreme Traders.

c) Relatives of Key Management Personnel having transactions with the Company

Mrs. Annie Paul; Mrs. Pushpam Bright; Dr. Francis Alappat; Mrs. Usha Francis; Dr. James Chettupuzhakkaran; Mr. Bellraj Eapen; Mrs. Binu Ann; Mrs. Anu Maria; Mrs. Megha Ann Tomy; Mrs. Anu V. Koithara and Mrs. Mariamma Francis.

8. Figures of the previous year have been regrouped and recast wherever necessary to suit the current year’s layout.

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