1. OTHER NOTES TO ACCOUNTS
1. Exceptional Item(Loss on inventory valuation-Previous Year):
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). 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 “Finance Charges” 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 “ Extraordinary Item” 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 “Earning per Share” 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 ‘Sales' 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 “Events Occurring after the Balance Sheet Date”, 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.
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