1. A special resolution u/s 100 of the Companies Act 1956 approving the reduction of paid up share capital of the Company held by Public shareholders to the extent of 3,931,042 shares at Rs 75/- per share amounting to Rs 294,828 was passed at the AGM held on 30th December 2013. The Hon'ble Karnataka High Court, on 7th August, 2014 passed an order confirming the special resolution passed by the Company in the said AGM. A certificate of reduction of Capital was issued by the said ROC dated 12th September, 2014 and the MCA records have been updated, incorporating the Reduction of Capital.
The Company has made requisite entries in the books of accounts giving effect to the Reduction of Capital by reducing its Share Capital, Reserves/Securities Premium and creating a liability towards the equity share holders under the head "Liability to Equity Share Holders” and a fixed deposit to the tune of Rs 295,000 has been placed with Punjab National Bank for settlement of this liability.
An application filed by SEBI for impalement in the proceedings and recalling the order of Reduction of Capital was rejected by the Hon'ble High Court of Karnataka. SEBI has filed an appeal before the divisional bench of the High Court of Karnataka and the matter is pending before the concerned forum.
The Company has made consistent and repeated attempts to implement the Court's Order by fixing the record date first on 29th September, 2014 and subsequently on 10th October, 2014, 7th December, 2014, 7th April, 2015, 22nd June, 2015 and 13th October, 2015 for the purpose of drawing up the list of Public Shareholders entitled to payment in respect of the shares so cancelled, but the same has not been acted upon by BSE Limited.
The Company has, in parallel, filed an application before the Hon'ble High Court of Karnataka requesting the Court to issue directions to the Bombay Stock Exchange to confirm the 'Record Date' set by the Company and consequently issue necessary instructions to the NSDL and CDSL. The matter is pending before the Hon'ble High Court of Karnataka.
Defined Benefit Plan
In case of Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity. In line with the accounting policy and as per the Accounting Standard - 15(R), the summarized position of post employment benefits is recognized in the Profit & Loss A/c and Balance Sheet as under:
2. Segment Reporting is presented in Consolidated Financial Statements in terms of Accounting Standard 17 on Segment Reporting.
3. Related Party Disclosures
The List of related parties as identified by the Management is as under Wholly owned Subsidiary
4. Khoday Properties Private Limited Key Management Personnel
5. Late K L Srihari (Managing Director) upto 31st October, 2016
6. K L A Padmanabhasa (Joint Managing Director)
7. K L Swamy ( Executive Director)
Relatives of Key Management Personnel
8. K L Ramachandra (Non Executive Chairman)
9. K R Nithyanand (Non Executive Director)
10. K H Gurunath (Non Executive Director)
11. K S Giridhar (Non Executive Director)
12. KHRadheshyam
13. K H Srinivas
14. K P Ghanshyam
15. K R Dayanand
16. K S Brijmohan
Entities over which Key Management Personnel and/or their relatives are able to exercise significant influence
17. K L Ramachandra - HUF
18. K L A Padmanabhasa - HUF
19. K L Srihari - HUF
20. KLSwamy-HUF
21. Acqua Borewells Private Limited
22. Blendwell bottlers Private Limited
23. Cassanova Distilleries Private Limited
24. Coconut Groves & Holiday Resorts Pvt Limited
25. Daatha Builders Private Limited
26. Elkay Farm
27. Elkay Tradings Corporation Private Limited
28. Five Brothers Marketing Private Limited
29. Forest Resort (Bandipur) Limited
30. Gayathri Foundation
31. Gayathri Holdings Private Limited
32. Hercules Construction Company Pvt Limited
33. Honeywell Business Private Limited
34. Ingo Property Developers Private Limited
35. Jay Pee Shoes Private Limited
36. K Lakshmansa & Company
37. Kankapura Trading Private Limited
38. Khoday Brothers
39. Khodays Breweries Limited
40. Khoday Business Private Limited
41. Khoday Control Systems Private Limited
42. Khoday Eshwarsa and Sons
43. Khoday Hotels Private Limited
44. Khoday Industires (Kuppam] Private Limited
45. Khoday Industries (Hyderabad] Private Limited
46. Khoday Industries Pvt Limited
47. Khodays Brothers International Limited
48. Khodays Technologies Limited
49. Kilara Power Limited
50. L.K Polyfibre Limited
51. L.K Power Corporation Limited
52. L.K Trust
53. Lakshmi Estate
54. Macdonald Tradings Private Limited
55. Me Donald Distilleries Private Limited
56. National Distilleries Limited
57. North India Distillers Private Limited
58. Panchaganga Tradings Private Limited
59. Panchakalyani Tradings Private Limited
60. Parsan Holiday Resorts Private Limited
61. Peterscot Tradings Private Limited
62. Ram Mohan & Company Private Limited
63. Ransh Coffee Estate
64. River Resorts Limited
65. Saraswathi Estate
66. Spring Borewells Company Private Limited
67. Sri Gurunath Tradings Private Limited
68. Sri Narmada Distilleries Private Limited
69. Surya Watch Industries Private Limited
70. The Distillers Company Private Limited
71. Thiruvonam Wines
72. Regit Estates Limited (formerly Tiger Breweries Limited)
73. Trishul Wineries & Distilleries Private Limited
74. United Glass Bottles Manufacturing Company Limited
75. Universal Business Concepts Private Limited
76. Universal Trading Company
77. Vaishnavi Communications Private Limited
78. Vindhya Distilleries
79. Vyjayanthi Tradings Private Limited
80. Wesco Power Generation Limited
81. West India Distilleries Private Limited
82. Fixed Assets includes a building with a WDV of Rs. 9,353 (Previous Year: Rs. 9,829) the title of which is under dispute before the Debt Recovery Tribunal and on which an attachment order has been served by the Employees Provident Fund Organization (EPFO). Pending resolution of these issues, the company continues to reckon the Building as an asset in its financial statement.
83. Certain confirmation of balances for Trade Payables, Trade Deposits and Advances, Capital Advances, Imprest Cash, Deposits, Other Loans & Advances and Trade Receivables are awaited. The accounts' reconciliations of some parties where confirmation have been received are in progress. Adjustments for differences, if any, arising out of such confirmations/ reconciliations would be made in the accounts on receipt of such confirmations and reconciliations thereof. The Management is of the opinion that the impact of adjustments, if any, is not likely to be significant. In the opinion of the Management all current assets, loans and advances including advances in capital accounts would be realized at the values at which these are stated in the accounts, in the ordinary course of business.
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