4.16 Provisions, Contingent Liabilities and contingent assets:
The Company estimates the provisions that have present obligations as a result of past events, and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.
The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible Obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor disclosed in the financial statements
4.17 Segment Reporting
The Company at present is engaged in the business of a single primary reportable business segment i.e. business of manufacturing, trading and marketing of the rice only.
4.18 Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
Interest and other borrowing costs attributable to qualifying assets are capitalised as a part of such assets till such time the assets are ready for use. Other interest and borrowing costs are charged to Statement of Profit and Loss.
4.19 Earning Per Share
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end, except where the results would be anti-dilutive. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.
4.20 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/ loss for the period is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
4.21 Dividend
Final dividends on shares are recorded as a liability on the date of paid after approval of equity shareholders in Annual General Meeting. An interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. The Company declares and pays dividends in Indian rupees and are subject to applicable taxes.
4.22 Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and noncurrent.
4.23 Standards Issued but Not Effective
On March 31, 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023.
This notification has resulted into amendments in the following existing accounting standards which are applicable to the Company from April 1, 2023.
i. Ind AS 101 - First time adoption of Ind AS.
ii. Ind AS 102 - Share-based payment
iii. Ind AS 103 - Business Combinations
iv. Ind AS 107 - Financial Instruments: Disclosures
v. Ind AS 109 - Financial Instruments
vi. Ind AS 115 - Revenue from Contracts with Customers
vii. Ind AS 1 - Presentation of Financial Statements
viii. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
ix. Ind AS 12 - Income Taxes
x. Ind AS 34 - Interim Financial Reporting
Notes to Accounts
1. During the year Company has given remuneration to all the directors including managing director & Wholetime directors as per section 197 of Companies Act, 2013 read with Schedule V which is within overall limit as prescribed under Companies Act, 2013 read with Schedule V.
2. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.
3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.
4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.
5. Confirmation of some of the accounts at year-end included under heads ‘Sundry Debtors’, Sundry Creditors' and Loans and Advances have yet to be received as at the date of the Auditors Report.
6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.
7. Contingent liabilities as at 31.03.2024
8. a) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since
2009-210 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.
b) Company's appeal is also pending with Hon'ble Gujrat and Haryana High Court against imposition of penalty by Custom Authorities Kandla amounting Rs 1750000/- on the alledged ground of containing higher non-Basmati Grain in one of the export lot.
9. Prior period items if any include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.
10. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets’, loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.
11. Pursuant to the provisions of Section 124 and 125 of the Companies Act, 2013, the Dividend which remain unclaimed/ unpaid for a period of seven years from the date of transfer have to the unpaid dividend account to the Investor Education and Protection Fund (IEPF) established by the Central Government.
12. The status of dividend remaining unclaimed as on 31.03.2024 is given here under:
Note: Some of the year end balances of unclaimed dividend as stated above, has increased due to cancellation of drafts by bank being returned unpaid.
During the year 2021-2022, no dividend has been recommended by Board of Directors.
As per the Companies Act, dividends that are unclaimed for a period of seven years, statutorily get transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government and therefore shareholders are requested to claim their dividend for the year 2016-17 and thereafter immediately. The Company had, accordingly, transferred Rs. 224454/- being the unpaid and unclaimed dividend amount pertaining to Final Dividend for the financial year ended 2014—2015 and Rs. 246649/-being the unpaid and unclaimed dividend amount pertaining to Interim Dividend for the financial year ended 2015—2016 to the Investor Education and Protection Fund of the Central Government.
Defined Benefit Plan
The employee's gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The premium as determined by the Trust keeping in view the date of joining, salary last drawn etc. of the employee's is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year 2023-2024 Rs. 1468955-/. has been paid to LIC towards groups gratuity scheme of employees, however last year 2023-2023 Rs. 810996/- has been paid to LIC towards groups gratuity scheme of employees.
The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.
(i) Ind- AS 108 Segmental Reporting
The Company has only one business segment namely rice. There is no different geographical segment.
14. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tones per hour are as under:
Karnal 12 MT Rice per hour.
The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter
15. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.
16. The payment due to SSI unit cannot be confirmed in the absence of information regarding the status of concerned creditors.
17. The Amount shown under Schedule No-19 being cost of material consumed also included cost of packing material consumed addition to raw material consumed from this year. The Figures of P.Y Year has be re arranged to make comparison more homogeneous and practical.
18. The Management of the company made sincere and hard work efforts to recover the doubtful Trade debts during the years. However inspite of these efforts, still Rs 447.42 Outstanding which is Undisputed but beyond one year. The company has not made any provision for these doubtfull debts as management is still hopeful to recover the same by legal or arbitration means.
19. Disclosure as per the requirement of Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006:
A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.
B) The identification of the micro, small & medium enterprises is based on management's knowledge of their status. The Company has received from some of the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, relating to amounts unpaid as at the year end, together with interest paid/ payable as required under the said act have made given.
20. Additional Information Pursuant to point no. 5 of part-II of Schedule-III to the Companies Act 2013:
(A) Licensed and installed Capacity, Actual Production and Opening Stocks:-
31.03.2024 31.03.2023
Licensed Capacity (per hour) 12 MT 12 MT
Installed Capacity (per hour) 12 MT 12 MT
Actual Production (In Qtls) 3,01,107 2,20,951
(B) Quantitative Stocks (In Qtls)
Opening Stock as at Closing Stock as at
01.04.2023 01.04.2024 31.03.2023 31.03.2024
481476 581311 481476 581311
(C) Expenditure in Foreign Exchange
For the year ended For the year ended
Particulars March 31,2024 March 31,2023
Value of Import of Capital Goods 0 1979273
Export Commission 83354696 65716197
Travelling Expenses 33279960 22414093
Ocean Freight 225966565 578233752
For the year ended For the year ended
(D) Valueof Exports (FOB) March31,2024 March31,2023
11792652564 11,556,999,441
(E) Raw Material Consumed:
31.03.2024 31.03.2024 31.03.2023 31.03.2023
Quantity Value Quantity Value
472061 1748321496 347792 1151382479
21. Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The unspent CSR obligation has to be transferred either to a separate bank account of the company or to any fund included in Schedule VII of the Companies Act, 2013. Unspent amount pertaining to ongoing projects has to be transferred to a separate bank account of the company called ‘unspent CSR account' and unspent amount pertaining to other than ongoing projects has to be transferred to any fund included in Schedule VII of the Companies Act, 2013. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
22. A company has availed Packing Credit Limit Amount to Rs. 50 Cr from Punjab Natioonal Bank CBB Branch,Amritsar against a collateral security of FDR Amount to Rs 16.24 Cr which has lien marked by Punjab National Bank in its favour.The same FDR shown under current assets under Notes other bank Balances
23. Previous years figures have been regrouped & rearranged where ever considered necessary
SIGNED IN TERMS OF OUR REPORT OF EVEN DATE For and on behalf of the Board of Directors
FOR RAJESH KAPOOR & CO Sd/- Sd/-
Chartered Accountants VIJAY KUMAR SETIA RAJEEV SETIA
S,/ Chairman Cum Managing Director Joint Managing Director & Cfo
RAJESH KAPOOR DIN :01125966 DIN :01125921
Proprietor
M.No 092692 Sd/-
KANIKA NEVTIA
PLACE : Amritsar Company Secretary
DATE 28.05.2024 M.No 29680
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