Mar 31, 2016
1. OTHER NOTES TO ACCOUNTS
1. Exceptional Item(Loss on inventory valuation-Previous Year):
As per the Accounting Standard-2âValuation of Inventoriesâ and company''s accounting policy, Inventory was valued at lower of Cost and Net Realizable Value (NRV). During the previous year the company valued its inventory of Raw material and Finished goods at NRV and booked a loss of Rs. 2370.56 millions which considering its nature is shown as an exceptional item in the financial statements of previous financial year. Loss on Inventory Valuation includes Rs. 582.76 million on account of packing material (Bardana) being written off during the previous financial year. Thus, total loss on inventory valuation for the previous year stands at Rs.2953.32 millions.
2. Finance Charges and Extraordinary Item:
Out of total finance charges of Rs. 1055.56 million, Rs. 210.74 million paid during the year have been shown under âFinance Chargesâ and the remaining amount of Rs. 844.82 million which has been converted to term loans(FITL) as per restructuring scheme has been classified as â Extraordinary Itemâ in Statement of Profit and Loss for current year. There was no such effect in previous accounting year as the scheme for restructuring was approved at the end of the period.
3. In the opinion of the company''s management, the current assets, loans and advances are an approximation of the value stated, if realized in the ordinary course of business. The provision for all the known liabilities has been made and is adequate and not in excess of the amount considered reasonably necessary.
4. The balance outstanding as the debit and credit to the parties / persons / agencies are subject to confirmation by the parties / person/ agencies concerned.
5. Figures of previous year have been regrouped and rearranged wherever necessary.
6. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.65.50 millions (Previous year - Rs.83.50 million). Appeals against the demand are pending before Punjab & Haryana High Court and the Management is expecting a favorable decision.
b. Claims amounting to Rs.1395.72 million (Previous year - Rs.804.21 millions) by various creditors, suppliers, agents, various state procurement agencies etc. are pending before various Courts and quasi-judicial authorities, which are contested by the company.
8. Foreign Currency Forward cover contracts outstanding as at 31st March 2016 are NIL. (Previous Year USD 20 Millions). The company had taken these forward covers to hedge export transactions.
9. Earning per share is calculated by dividing the profit after provision for income tax by the weighted average number of equity shares outstanding during the period.
10. The calculation of Earnings per share (EPS) as disclosed in the statement of Profit and Loss has been made in accordance with Accounting Standard (AS)-20 on âEarning per Shareâ issued by the Institute of Chartered Accountants of India.
11. Deferred Tax Liability mentioned in note no.6 is the net of deferred tax asset and deferred tax liability. As per the books of accounts opening balance of DTL Rs.441.06 millions, during the period due to timing difference on account of depreciation and provisions Rs.66.33 millions provided as deferred tax asset. Thus the net DTL at the end of period on 31.03.2016 remains Rs.374.73 millions.
12. The figures of âSales'' appearing in the statement of profit & loss is the consolidated figure of sales affected through different offices of the company.
Note:
13. Transaction is considered from the effective date of rent agreement.
14. On expiration of the above stated lease agreements, the same can be renewed on the basis of mutual consent of the lessor and lessee.
15. The Company''s significant leasing arrangements are in respect of storage of material and the arrangements range between 6 months and 1 year generally and are usually renewable by mutual consent of lessor and lessee.
16. The information given below is in respect of the transactions entered into by the company during the period with the related parties as per the requirement of Accounting Standard 18.
A. Names of related parties and description of relationship:
i) Particulars of Subsidiaries/Associate Parties:
Name of Related Party Nature of Relationship
- Ganeshay Overseas Industries Limited Promoter Group Company
- LOIL Health Foods Limited Promoter Group Company
- LOIL Overseas Foods Limited Promoter Group Company
- LOIL Continental Foods Limited Promoter Group Company
- Punjab Greenfield Resources Limited Subsidiary Company
- Lakshmi Green Power Ltd Subsidiary Company
- Green Energy and Foods Pte. Ltd. Singapore Subsidiary Company
- BVM Logistics Pvt. Ltd. Directors having Significant influence
- Victor Foods India Ltd Directors having Significant influence
- LOIL International Foods Limited Directors having Significant influence
ii) Key Managerial Personnel:
Name of Related Party Nature of Relationship
- Mr. Balbir Singh Uppal Chairman Cum Managing Director
- Mr. Janak Raj Singh Joint Managing Director
- Mr. Ajay Ratra Company Secretary
- Mr. Sukhdeep Singh Chief Financial Officer
17. Land measuring 49 Kanal & 5 Marla situated at Village Khamanon, Tehsil & District Fatehgarh Sahib, Punjab has been leased by the company from S.Janak Raj Singh Uppal, the Joint Managing Director of the company for the purpose of Power Plant.
18. As per the Accounting Standard (AS)-4 âEvents Occurring after the Balance Sheet Dateâ, it is reported that there have been no events requiring adjustment to assets and liabilities Nor have there been events with such significance that may require a disclosure in the report of the approving authority to enable users of the financial statements to make proper evaluations and decisions, as is evident with no such disclosure being made by the board of directors in their report.
Mar 31, 2015
NOTE -1 COMPANY INFORMATION
Lakshmi Energy and Foods Limited (LEAF) is a widely held Public Limited
Company engaged in processing of Rice of various varieties and grades,
Edible oil, whole Wheat Flour and Green Power generation. The Company
was incorporated on 20-07-1990.
Its shares are listed on National Stock Exchange of India Limited (NSE)
and Bombay Stock Exchange Limited (BSE). The Registered Office of the
Company is at Chandigarh and its plant is located in VPO Khamanon on
the Chandigarh-Ludhiana National Highway, Distt. Fatehgarh Sahib,
Punjab, India.
NOTE -2 SHARE CAPITAL
(A) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary equity shares having
a par value of Rs. 2/- per share. Each holder of ordinary shares is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting During the year ended 31/03/2015, the amount of
dividend per share recognised for distribution to ordinary shareholders
is Rs.Nil.
(Previous year: Rs' 0.30/-per share interim).
NOTE -3 OTHER NOTES TO ACCOUNTS
1. Current Financial Condition and restructuring of Loans.
During the year, the rice industry faced major slowdown and market
prices fell down sharply (almost 50 % as compared to Previous Year
Market prices) of rice and paddy. Consequently, the Net realizable
value of rice/paddy went below the cost of production/procurement.
As per the Accounting Standard-2"Valuation of Inventories" and
company's accounting policy, Inventory was valued at lower of Cost and
Net Realizable Value (NRV).The company valued its inventory of Raw
material and Finished goods at NRV and booked a loss of Rs. 2370.56
millions which considering its nature is shown as an exceptional item
in the financial statements. Loss on Inventory Valuation includes Rs.
582.76 million on account of packing material (Bardana) being written
off during the financial year. Thus, total loss on inventory valuation
stands at Rs.2953.32 millions.
Consequently, there was shortfall in DP in respect of CC/PC limits
availed from different Banks in consortium. During the course of series
of consortium / joint lenders forum (JLF) meetings 'restructuring of
debt' emerged as the only acceptable corrective action plan by
consensus. A scheme for restructuring of debt was proposed by the
Company to the lenders in the consortium. The restructuring scheme
entails carving out of the outstanding balances in cash credit and
packing credit accounts, over and above the DP and conversion of the
same into WCTL. The said WCTL is envisaged to be repaid over a period
of eight years in structured installments with moratorium of two years
of repayment of interest and installments, with funding of interest
during moratorium. To ascertain the techno-economic viability of the
proposed debt restructuring scheme a study was carried out by M/s Dun &
Brad street who after a detailed study of the production units of the
Company viewed that the said debt restructuring scheme was techno -
economically viable. Valution of land, building and machinery was done
by Bank's empanelled valuers and the valuation was on higher side. The
final report of the restructuring scheme alongwith reports of
independent Bank's empanelled valuers, as approved by the lenders, was
subjected to evaluation by Independent Evaluation Committee (IEC) as
per RBI guidelines, which has been approved.
Mitigating factors
The management believes that as the demand for rice rises and price
stabilization in both domestic and international market takes place,
financial condition of the company would improve.
In view of the above said mitigating factors the company is positively
looking at the scenario as "going concern".
2. In the opinion of the company's management, the current assets,
loans and advances are an approximation of the value stated, if
realized in the ordinary course of business. The provision for all the
known liabilities has been made and is adequate and not in excess of
the amount considered reasonably necessary.
3. The balance outstanding as the debit and credit to the parties /
persons / agencies are subject to confirmation by the parties / persons
agencies concerned.
4. Figures of previous year have been regrouped and rearranged
wherever necessary.
Further, previous year figures are for 18 months as against the current
year figures which are for 12 months on the Company has extended its
financial year by 6 months in the last financial period.
5. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.83.50 millions
(Previous year - Rs.91.20 million). Appeal is pending before ITAT and
Punjab & Haryana High Court and the Management is expecting a
favourable decision.
b. Claims amounting to Rs.804.21 millions (Previous year - Rs.804.21
millions) by various creditors, suppliers, agents, various state
procurement agencies etc. are pending before various Courts and
quasi-judicial authorities.
7. Forward cover contracts outstanding as at March 2015 for USD 20
Millions. The company has taken these forward covers for export
transactions.
8. Earning per share is calculated by dividing the profit after
provision for income tax by the weighted average number of equity
shares outstanding during the period.
9. Deffered Tax Liability mentioned in note no.6 is the net of
deferred tax asset and deferred tax liability. As per the books of
accounts opening balance of DTL Rs.505.18 millions, during the period
due to timing difference on account of depreciation and provisions
Rs.64.11 millions provided as deffered tax asset. Thus, the net DTL at
the end of period on 31.03.2015 remains Rs.441.06 millions.
10. The figures of 'Sales' appearing in the statement of profit & loss
account is the consolidated figure of sales effected through different
offices of the company.
11. The information given below is in respect of the transactions
entered into by the company during the Year with the related parties
as per the requirement of Accounting Standard 18.
A. Names of related parties and description of relationship:
i) Name of Promoter Group Companies
* Ganeshay Overseas Industries Limited
* LOIL Health Foods Limited
* LOIL Overseas Foods Limited
* LOIL Continental Foods Limited
ii) Name of Subsidiary Companies
* Punjab Greenfield Resources Limited
* Lakshmi Green Power Ltd
* Green Energy and Foods Pte. Ltd. Singapore
iii) Name of Companies over which Directors having significant
influence
* BVM Logistics Pvt. Ltd.
* Victor Foods India Ltd.
* LOIL International Foods Limited
iv) Name of Key Managerial Personnel
* Mr. Balbir Singh Uppal Chairman Cum Managing Director
* Mr. Janak Raj Singh Joint Managing Director
* Mr. I. S. Gumber Director
* Mr. Ajay Ratra Company Secretary
* Mr. Sukhdeep Singh Chief Financial Officer
12. Land measuring 49 Kanal & 5 Marla situated at Village Khamanon,
Tehsil & District Fatehgarh Sahib, Punjab has been leased by the
company from S.Janak Raj Singh, the Joint Managing Director of the
company for the purpose of setting up its power plant thereon.
13. The information given below is about the segment reporting as per
AS-17 issued by the Institute of Chartered Accountants of India.
14. As per the Accounting Standard (AS)-4 "Events Occurring after the
Balance Sheet Date". Events occurring after the balance sheet date
under review, which do not affect the figures as stated in the
financial statements normally do not require any disclosure, in the
financial statements although they may be of such significance that may
require a disclosure in the report of the approving authority to enable
the users of the financial statements to make proper evaluations and
decisions. Since the board of directors of the company is the approving
authority for the financial statements, accordingly, if any such
disclosure has been made by the management of company in the report of
the board of directors of company and hence no disclosure has been made
herein.
Mar 31, 2014
COMPANY INFORMATION
Lakshmi Energy and Foods Limited (LEAF) is a widely held Public Limited
Company engaged in manufacturing of Rice of various varieties and
grades, Edible oil, whole Wheat Flour and Green Power. The Company was
incorporated on 20-07-1990.
Its shares are listed on National Stock Exchange of India Limited (NSE)
Bombay Stock Exchange Limited (BSE), Delhi Stock Exchange Limited (DSE)
and Ludhiana Stock Exchange Limited (LSE). The Registered Office of the
Company is at Chandigarh and its plant is located in VPO Khamanon on
the Chandigarh-Ludhiana National Highway, Distt. Fatehgarh Sahib,
Punjab, India. The company is among the largest food and biomass power
producers.
(A) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary equity shares having
a par value of Rs. 2/- per share. Each holder of ordinary shares is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees.
During the year ended 31/03/2014, the amount of dividend per share
recognised for distribution to ordinary shareholders is Re. 0.30 per
share (Interim) - (Previous year: Rs Rs. 0.20/- per share).
In the event of liquidation of the company, the holders of ordinary
equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of ordinary shares
held by the shareholders.
Notes :
(i) Term loans from Banks are secured by equitable mortgage of
Properties of the company and pari-passu charge over fixed assets ,
both present and future of the company.
(ii) The interest on the above term loans from banks are linked to the
respective banks base rates which are floating in nature. As of March
31, 2014 the interest rates 14.00% per annum.
(i) Working capital facilities (fund based & non fund based limits) are
secured by first pari passu charge over stocks, stores, raw materials,
inventories, work in progress, finished goods and also book debts,
bills and moneys receivable of the Company by way of hypothecation.
(ii) The interest on the above term loans from banks are linked to the
respective banks base rates which are floating in nature. As of March
31, 2014 the interest rates on cash credit ranges from 12.25 to 13.50%
per annum. Packing credit INR from 11.00% to 12.75% per annum Packing
credit foreign currency from 4.00% to 4.50% per annum.
*There are no Micro, Small and Medium Enterprises, (P.Y. NIL) to whom
the Company owes dues, which are outstanding for more than 45 days as
at 31th March 2014. This information, 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. Moreover, the Company
primarily deals in procurement of agri-products which are sourced from
the Farmers and Aartias (Commission Agents) who are not covered under
the provisions of the Micro, Small and Medium Enterprises Development
Act, 2006
2. In the opinion of the company''s management, the current assets,
loans and advances are an approximation of the value stated, if
realized in the ordinary course of business. The provision for all the
known liabilities has been made and is adequate and not in excess of
the amount considered reasonably necessary.
3. The balance outstanding as the debit and credit to the parties /
persons / agencies are subject to confirmation by the parties / person/
agencies concerned.
4. Figures of previous year have been regrouped and rearranged
wherever necessary.
5. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.91.20 millions
(Previous year  Rs.600.10 million). Appeal is pending before ITAT and
Punjab & Haryana High Court and the Management is expecting a
favourable decision.
b. Claims amounting to Rs.804.21 millions (Previous year  Rs.303.53
millions) by various creditors, suppliers, agents, various state
procurement agencies etc. are pending before various Courts and
quasi-judicial authorities.
6. Forward cover contracts outstanding as at March 2014 for USD 18
Millions. The company has taken these forward covers for export
transactions.
7. Earning per share is calculated by dividing the profit after
provision for income tax by the weighted average number of equity
shares outstanding during the year.
The calculation of Earnings per share (EPS) as disclosed in the Profit
and Loss Account has been made in accordance with Accounting Standard
(AS)-20 on "Earning per Share" issued by the Institute of Chartered
Accountants of India.
8. Deffered Tax Liability mentioned in note no.6 is the net of
deffered tax asset and deffered tax liability. As per the books of
accounts opening balance of DTL Rs.667.69 Millions, during the period
due to timing difference on account of depreciation and provisions
Rs.162.51 Millions provided as deffered tax asset. Thus the net DTL at
the end of period on 31.03.2014 remains Rs.505.18 Millions.
9. The figure of ''Sales'' appearing in the Statement of profit & loss
is the consolidated figure of sales effected through different offices
of the company and does not denote sales effected through Khamanon
office alone.
Note:-
1. Transaction is considered from the effective date of rent
agreement.
2. On expiration of the above stated lease agreements, the same can be
renewed on the basis of mutual consent of the lessor and lessee.
3. The Company''s significant leasing arrangements are in respect of
storage of material and the arrangements range between 6 months and 1
year generally and are usually renewable by mutual consent of lessor
and lessee.
10. The information given below is in respect of the transactions
entered into by the company during the period with the related parties
as per the requirement of Accounting Standard 18.
11. Land measuring 49 Kanal & 5 Marla situated at Village Khamanon,
Tehsil & District Fatehgarh Sahib, Punjab has been leased by the
company from S.Janak Raj Singh Uppal, the Joint Managing Director of
the company for the purpose of setting up its power plant thereon.
12. As per Accounting Standard (AS)-6 "Depreciation Accounting" issued
by the Institute of Chartered Accountants of India, the company has
adjusted depreciation amount of Rs.29.06 million on revalued assets
with the revaluation reserve account.
13. As per the Accounting Standard (AS)-4 "Events Occurring after the
Balance Sheet Date". Events occurring after the balance sheet date
under review, which do not affect the figures as stated in the
financial statements normally do not require any disclosure, in the
financial statements although they may be of such significance that may
require a disclosure in the report of the approving authority to enable
the users of the financial statements to make proper evaluations and
decisions. Since the board of directors of the company is the approving
authority for the financial statements, accordingly, if any such
disclosure has been made by the management of company in the report of
the board of directors of company and hence no disclosure has been made
herein.
Sep 30, 2012
(a) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary Equity shares having
a par value of Rs. 2/- per share. Each holder of ordinary shares is
entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees.The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting
During the year ended 30/09/20l2, the amount of dividend per share
recognised for distribution to ordinary shareholders is Rs. 0.20/-
(Previous year: Rs. 0.20/-).
In event of liquidation of the company, the holders of ordinary equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts.The distribution will be
in proportion to the number of ordinary shares held by the
shareholders.
*There are no Micro, Small and Medium Enterprises, (PY. NIL) to whom
the Company owes dues, which are outstanding for more than 45 days as
at 30th September 2012.This information, 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. Moreover, the Company
primarily deals in procurement of agri-products which are sourced from
the Farmers and Aartias (Commission Agents) who are not covered under
the provisions of the Micro, Small and Medium Enterprises
DevelopmentAct,2006
1. In the opinion of the company''s management, the current assets,
loans and advances are an approximation of the value stated, if
realised in the ordinary course of business. The provision for all the
known liabilities has been made and is adequate and not in excess of
the amount considered reasonably necessary.
2. The balance outstanding as the debit and credit to the parties /
persons / agencies are subject to confirmation by the parties /
persons/ agencies concerned.
3. Figures of previous year have been regrouped and rearranged
wherever necessary.
4. Contingent Liabilities:
i. Income-tax demand raised for the earlier years is Rs. 600.10
Millons(Previous year - Rs. 630.24 million)]. Appeal is pending before
CIT (Appeal) and the Management is expecting a favourable decision.
ii. Claims [Rs.303.53 million (Previous year - Rs. 352.24 million)] by
various creditors, suppliers, agents, various procurement agencies etc.
are pending before various Courts and quasi-judicial authorities.
5. Forward cover contracts outstanding as at September 2012 for USD
22.00 Millions.The company has taken these forward covers for export
transactions.
6. During the year, the company has accounted for deferred tax
liability in accordance with the Accounting Standard (AS)-22
"Accounting forTaxes on Income" issued by the Institute of Chartered
Accountants of India.
Provision for income tax has been reviewed as on the balance sheet date
and has been adjusted to reflect the current best estimate in
accordance with the Accounting Standard (AS)-29 "Provisions, Contingent
Liabilities and Contingent Assets" issued by the Institute of
Chartered Accountants of India.
7. The company has examined the indications listed in Accounting
Standard (AS)-28 on "Impairment of Assets" as issued by the Institute
of Chartered Accountants of India and it has been found that none of
the indications as listed in the said accounting standard are present
in the case of the company
8. Earning per share is calculated by dividing the profit after
provision for income tax by the weighted average number of equity
shares outstanding during the year.
9. Interest costs on specific borrowings attributable to qualifying
assets are capitalized. Other interest and borrowing costs are charged
to revenue.
10. The figure of ''Sales'' appearing in the Profit & Loss account is
the consolidated figure of sales effected through different offices of
the company and does not denote sales effected through Khamano office
alone. The sale includes export sale, trading sale, domestic sale and
sale to Government agencies.
Note:-
1. Transaction is considered from the effective date of rent
agreement.
2. On expiration of the above stated lease agreements, the same can be
renewed on the basis of mutual consent of the lessor and lessee.
3. The Company''s significant leasing arrangements are in respect of
storage of material and the arrangements range between 6 months and l
year generally and are usually renewable by mutual consent of lessor
and lessee.
11. Land measuring 49 Kanal & 5 Marla situated at Village
Khamanon,Tehsil & District Fatehgarh Sahib, Punjab has been leased by
the company from S. Janak Raj Singh the Joint Managing Director of the
company for the purpose of setting up its power plant thereon.
12. As per Accounting Standard (AS)-6 issued by the Institute of
Chartered Accountants of India, the company has adjusted depreciation
amount of Rs. 35.80 million on revalued assets with the revaluation
reserve account.
13. Previous year''s excess provision for Income Tax has been reversed
during theYear.
14. As per the Accounting Standard (AS)-4 "Events Occurring after the
Balance Sheet Date". Events occurring after the balance sheet date
under review, which do not affect the figures as stated in the
financial statements normally do not require any disclosure, in the
financial statements although they may be of such significance that may
require a disclosure in the report of the approving authority to enable
the users of the financial statements to make proper evaluations and
decisions. Since the board of directors of the company is the approving
authority for the financial statements, accordingly, if any such
disclosure has been made by the management of company in the report of
the board of directors of company and hence no disclosure has been made
herein.
15. During the year Company has recognized MAT Credit Entitlement of
Rs. 34,84,50,762.73 as per its stand before appellate authorities,
though the department has not recognized any MAT credit entitlement.
Provision for Tax and Mat Credit Entitlement has been calculated as in
the earlier years. The matter is presently in Appeal.
16. Till the year ended 30th September 2011, the company was using
pre- revised Schedule VI of the Companies Act, 1956 for preparation and
Presentation of its financial statement. During the year ended 30th
September 2012, the revised Schedule VI notified under the Companies
Act, 1956 is applicable to the company. The company has reclassified
and regrouped previous year figure in conformity with revised
Schedule-VI Of the Companies Act, 1956 and wherever necessary.
Sep 30, 2010
1. In the opinion of the companys management, the current assets,
loans and advances are an approximation of the value stated, if
realised in the ordinary course of business. The provision for all the
known liabilities has been made and is adequate and not in excess of
the amount considered reasonably necessary.
2. The balance outstanding as the debit and credit to the parties /
persons / agencies are subject to confirmation by the parties/
person/agencies concerned.
3. Figures of previous year have been regrouped and rearranged
wherever necessary.
4. Contingent Liabilities not provided for:
I. Income-tax demand raised for the earlier years is Rs. 657.68
Million. Appeal is pending before CIT (Appeal). And the management is
expecting favourable decision.
ii. Claims [Rs.337.26 million (Previous year - Rs. 93.84 million)] by
various creditors, suppliers, agents etc. are pending before various
Courts and quasi-judicial authorities (as per certificate from Lawyers
of the company).
iii. Claims [Rs. 15.15 million (Previous year - Rs. 259.51 million)]
by various State procurement agencies are pending before Arbitrators
(as per certificate from Lawyers of the company).
iv. The company had an export obligation of Rs. 657.68 million
(Previous year Rs. 398.27 million) which was completed during the year,
against the import licenses taken for import of capital goods under
Export Promotion Capital Goods [EPCG] Scheme. This export obligation
had to be fulfilled within period of 12 years from the date of Issue of
License. The expiry date for Export Obligation period ranges between
March 2018 to August 2022 for different Licenses. With respect to the
aforesaid export obligation, the company has also got bank guarantee
amounting Rs. 6.04 million (Previous year Rs. 18.12 million) issued to
the Custom Authorities against 100% margin in the shape of FDRs.
5. Forward cover contracts outstanding as at September 2010 for USD
13.69 Million and for JPY 11.41 Million. The company has taken these
forward covers for export/import transactions.
6. During the year, the company has accounted for deferred tax
asset/liability in accordance with the Accounting Standard (AS-22)
"Accounting for Taxes on Income" issued by the Institute of Chartered
Accountants of India.
Provision for income tax has been reviewed as on the balance sheet date
and has been adjusted to reflect the current best estimate in
accordance with the Accounting Standard (AS-29) "Provisions, Contingent
Liabilities and Contingent Assets" issued by the Institute of Chartered
Accountants of India.
7. The company has examined the indications listed in Accounting
Standard (AS-28) on "Impairment of Assets" as issued bythe Institute of
Chartered Accountants of India and it has been found that none of the
indications as listed in the said accounting standard are present in
the case of the company
8. Earnings per share is calculated by dividing the profit after
provision for income tax by the weighted average number of equity
shares outstanding during the year.
9. Interest costs on specific borrowings attributable to qualifying
assets are capitalised. Other interest and borrowing costs are charged
to revenue.
10. The figure of Sales appearing in the profit & loss account is
the consolidated figure of sales effected through different offices of
the company and does not denote sales effected through Khamano office
alone. The sale includes export sale, domestic sale and sale to
Government agencies. This figure also includes the sales through
trading activities and job work activities.
11. The information given below is in respect of the transactions
entered into by the company during the year with the related parties as
per the requirement of Accounting Standard 18.
A. Names of related parties and description of relationship:
i) Particulars of Subsidiaries/Associate Parties:
Name of Related Party Nature of Relationship
Ganeshay Overseas Industries Limited Promoter Group Company
LOIL International Foods Limited Promoter Group Company
LOIL Health Foods Limited Promoter Group Company
LOIL Overseas Foods Limited Promoter Group Company
LOIL Continental Foods Limited Promoter Group Company
Punjab Greenfield Resources Limited Subsidiary Company
Lakshmi Green Power Ltd Subsidiary Company
Green Energy and Foods Pte. Ltd.
Singapore Subsidiary Company
BVM Logistics Pvt. Ltd. Associate Company
Victor Foods India Pvt. Ltd. Associate Company
ii) Key Managerial Personnel:
Name of Related Party Nature of Relationship
Mr. Balbir Singh Uppal Chairman Cum Managing Director
Mr. Janak Raj Singh Joint Managing Director
Mr.I.S.Gumber Executive Director
Mr. Harwant Singh Executive Director
12. Land measuring 49 kanals and 5 marla situated at village Khamanon,
Tehsil and District Fatehgarh Sahib, Punjab has been leased by the
company from Janak Raj Singh Uppal, the Executive Director of the
Company for purpose of setting up its Power Plantthereon.
13. As per Accounting Standard (AS-6) issued by the Institute of
Chartered Accountants of India, the company has adjusted depreciation
amount of Rs. 35.79 million on revalued assets with the revaluation
reserve account.
14. Previous excess provision for Income tax has been reversed during
the year.
15. The company does not owe any amount to any small scale industrial
undertaking for more than 30 days at the end of the financial year. The
above information is as identified on the basis of information
available with the company and has been relied upon by the auditors.
Sep 30, 2009
1. In the opinion of the companys management, the current assets,
loans and advances are an approximation of the value stated, if
realized in the ordinary course of business. The provision for all the
known liabilities has been made and is adequate and not in excess of
the amount considered reasonably necessary.
2. The balance outstanding as the debit and credit to the parties /
persons / agencies are subject to confirmation by the parties / person/
agencies concerned.
3. Contingent Liabilities not provided for:
i. Income-tax demand raised in the earlier years has been fully
settled, and there is no pending income tax demand against the company.
ii. Claims [Rs. 93.84 million (Previous year Rs. 90.98 million)] by
various creditors, suppliers, agents etc. are pending before various
Courts and quasi-judicial authorities (as per certificate from Lawyers
of the company).
iii. Claims [Rs. 259.51 million (Previous year - Rs. 259.40 million)]
by various State procurement agencies are pending before Arbitrators
(as per certificate from Lawyers of the company).
iv. The company had an export obligation of Rs. 398.27 million
(previous year Rs.381.17 million) which was completed during the year,
against the import licenses taken for import of capital goods under
Export Promotion Capital Goods [EPCG] Scheme. This export obligation
had to be fulfilled within period of 12 years from the date of Issue of
License. The expiry date for Export Obligation period ranges between
March 2018 to Aug 2021 for different Licenses. With respect to the
aforesaid export obligation, the company has also got bank guarantee
amounting to Rs. 18.12 million (previous year Rs. 17.12 million) issued
to the Custom Authorities against 100% margin in the shape of FDRÃs.
4. Forward cover contracts for US $ Nil (Previous Year US $ 1.00
million) were outstanding as at September, 2009. The company has taken
these forward covers for export /supplier credits.
5. During the year, the company has accounted for deferred tax
liability in accordance with the Accounting Standard (AS)- 22
ÃAccounting for Taxes on Incomeà issued by the Institute of Chartered
Accountants of India.
Provision for income tax has been reviewed as on the balance sheet date
and has been adjusted to reflect the current best estimate in
accordance with the Accounting Standard (AS)-29 ÃProvisions, Contingent
Liabilities and Contingent Assetsà issued by the Institute of Chartered
Accountants of India. As the income tax demands raised with respect to
the assessment years till 2005-2006 have been fully settled, it is no
longer probable that an outflow as reflected in the previous years will
be required to settle the obligation of payment of the income tax dues,
and, therefore, the pre-existing provision has been adjusted.
6. The company has examined the indications listed in Accounting
Standard (AS)-28 on ÃImpairment of Assetsà as issued by the Institute
of Chartered Accountants of India and it has been found that none of
the indications as listed in the said accounting standard are present
in the case of the company
7. Earnings per share is calculated by dividing the profit after
provision for tax by the weighted average number of equity shares
outstanding during the year.
The calculation of Earnings per share (EPS) as disclosed in the Profit
and Loss Account has been made in accordance with Accounting Standard
(AS) - 20 on ÃEarning per Shareà issued by the Institute of Chartered
Accountants of India.
8. Interest costs on specific borrowings attributable to qualifying
assets are capitalized. Other interest and borrowing costs are charged
to revenue.
9. The figure of Sales appearing in the profit & loss account is
the consolidated figure of sales effected through different offices of
the company and does not denote sales effected through Khamanon office
alone. The sales include export sale, domestic sale and sale to
Government agencies. This figure also includes the sales through
trading activities and job work activities.
10. The information given below is only in respect of the transactions
entered into by the company during the year with the related parties.
A. Names of related parties and description of relationship:
i. Particulars of Subsidiary / Associate Companies
Name of Related Party Nature of Relationship
1.Ganeshey Overseas
Ind. Ltd Promoter Group Company.
2. LOIL International
Foods Limited Promoter Group Company.
3. LOIL Health Foods
Limited Promoter Group Company.
4. LOIL Continental
Foods Limited Promoter Group Company.
5. LOIL Overseas Foods
Limited Promoter Group Company.
6. Punjab Greenfield
Resources Limited Subsidiary Company.
ii. Key Managerial Personnel
S. Name of Nature of
No. Related Party Relationship
1.Mr. Balbir Singh Uppal Chairman & Managing Director
2 Mr. Janak Raj Singh Executive Director
3.Mr. I. S. Gumber Executive Director
11. Land measuring 49 Kanal & 5 Marla situated at Village Khamanon,
Tehsil & District Fatehgarh Sahib, Punjab has been leased by the
company from S. Janak Raj Singh Uppal, the Executive Director of the
company for the purpose of setting up its power plant thereon.
12. As per Accounting Standard (AS)-6 issued by the Institute of
Chartered Accountants of India, the company has adjusted depreciation
amount of Rs. 35.79 million on revalued assets with the revaluation
reserve account.
13. The company does not owe any amount to any Micro, small or Medium
scale industrial undertaking for more than 45 days at the end of the
financial year. The above information is as identified on the basis of
information available with the company and has been relied upon by the
auditors.
The company requested its suppliers to intimate whether they are
registered under the provisions of Micro, Small and Medium Entrerprises
Development Act, 2006. In the absence of intimation from the suppliers,
the requisite information under the above said Act was not available
with the company.
14. As per the Accounting Standard (AS)-4 ÃContingent Events Occurring
after the Balance Sheet DateÃ. Events occurring after the balance sheet
date under review, which do not affect the figures as stated in the
financial statements normally do not require any disclosure, in the
financial statements although they may be of such significance that may
require a disclosure in the report of the approving authority to enable
the users of the financial statements to make proper evaluations and
decisions. Since the board of directors of the company are the
approving authority for the financial statements, accordingly such
disclosure has been made by the management of company in the report of
the board of directors of company and hence no disclosure has been made
herein.
15. During the year the Companys wholly owned subsidiary sold part of
its shareholding in M/s Victor Foods India Ltd. . Consequently, Victor
Foods India Limited ceased to be a subsidiary of the Company w.e.f.
30.03.2009.
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