1. Contingent Liabilities:
Disputed claims in respect of: 2009 2008
Rs. Lacs Rs. Lacs
Excise Duty and Service Tax 5,411.12 2,196.23
Sales Tax 4,674.27 3,211.17
Income Tax 1,235.63 1,235.63
Entry Tax 25.70 21.36
Miscellaneous 691.78 687.47
Total 12,038.50 7,351.86
2. Estimated amount of Contracts remaining to be executed on capital
account and not provided for (net of advances) Rs.3,058.10 Lacs
(previous year Rs. 4,022.42 Lacs).
3. The Company is engaged in the food business, which in the context
of Accounting Standard 17 is considered to be its only business
segment. The geographical segmentation is insignificant, as exports are
less than 1% of the Companys turnover.
4. Related Party Disclosure:
i. Names and relationships of related parties
a. Holding Companies:
Cadbury Schweppes Overseas Ltd. holds 58.62% (P.Y. 56.59%) equity
shares and Cadbury Mauritius Ltd. holds 38.96% (P.Y.41.02 %) equity
shares in the Company; the ultimate holding company being Cadbury PLC.
b. Fellow Subsidiary Companies / Entities:
1. Cadbury International Limited
2. Cadbury Adams Middle East SAL
3. Cadbury Australia Limited
4. Cadbury Ghana Limited
5. Cadbury Confectionery Malaysia Sdn. Bhd.
6. Cadbury Pakistan Limited
7. Cadbury Schweppes Asia Pacific Pte. Ltd.
8. Cadbury UK
9. Cadbury Adams US LLC
lO.Cadbury Enterprises Pte Ltd.
11. Adams MeCCa Holdings B.V.
12.Cadbury Holdings Ltd.
13.CS Business Service (India) Pvt. Ltd.
14.Cadbury Foods Co Ltd.China
15.Cadbury Adams Canada Inc.
16.Cadbury Adams (Philippines) Inc.
17.Cadbury Adams (Thailand) Limited
18.Reading Scientific Services Limited
19.Cadbury Four Seas
c. Subsidiary Company: Induri Farm Limited.
d. Key Management Personnel:
Mr. Anand Kripalu Managing Director
Mr. Jaiboy Phillips Director
Mr. Sanjay Purohit Director
Mr. Chandramouli V Director
Mr. Sunil Sethi Director
Mr. Atul Bhatia Director
Mr. Rajesh Garg Director
5. Lease payments recognised in the Profit and Loss account for the
year are Rs. 852.93 Lacs (Previous year Rs. 631.74 Lacs).
6. Derivative Instruments:
a) Hedged:
The Company uses forward exchange contracts to hedge its exposure in
foreign currency. There are no contracts entered into with the
objective of trading or speculation.
# The details of investment are not available with the Company. Note:
Shaded portion indicates the previous year figures.
* The overall expected rate of return is a weighted average of the
expected returns of the various categories of plan assets held. The
assessment of the expected return is based on historical return trends
and analysts predictions of the market for the asset in the next
twelve months.
In assessing the Companys Post Employment Liabilities the Company
monitors mortality assumptions and uses up-to-date mortality tables.
The base being the LIC 1994-96 ultimate tables.
The Company operates a funded gratuity plan for qualifying employees.
Under the plan, the employees are entitled to gratuity benefits based
on final salary at retirement. The Company makes a provision in the
books based on third party actuarial valuations.
The Company operates a funded superannuation plan for qualifying
employees. Under the plan, the Company and the employees are required
to make contributions, based on the basic salary and specified
allowances, which are payable on retirement or upon meeting the
required criteria.
The Company operates a funded provident fund for its employees. In
accordance with the plan, the Company and the employees are required to
make contributions, based on the basic salary, which are payable on
retirement or upon meeting the required criteria. During the year the
Company made contribution to the Provident Fund to the tune of Rs
543.91 Lacs (Previous Year Rs 489.86 Lacs). The Company has an
obligation, per the trust deed, to make good the shortfall, if any,
between the return from the investments from the provident fund and the
notified interest rate and recognizes such an obligation based on
actuarial valuations being carried out by third party actuaries at each
balance sheet date.Aone percentage point change in assumed healthcare
cost trend rates would have the following effects on the aggregate of
the service and interest cost and defined benefit obligation in
relation to the post retirement medical benefit plan :
Notes :
(a) Installed capacity is as certified by the Management of the Company
and accepted by the Auditors as this is a technical matter.
(b) Under the Liberalized Industrial Policy of the Government, vide
notification No. S-0-477(E) Dated 25th July, 1991, the Companys
products are exempted from licensing provisions under the Industries
(Development Regulation) Act, 1951.
(c) Figures do not include Cocoa Powder produced for captive
consumption in other products.
(d) The products are manufactured in an integrated plant and hence
installed capacity cannot be given.
(e) The production data as listed above includes production by Third
party operators.
7. Kraft Takeover
The board of Cadbury PIc (the ultimate holding company of Cadbury India
Limited) unanimously recommended Cadbury Pic shareholders, to accept
the terms of the Final offer made by Kraft Foods, Inc., to acquire the
entire share capital of Cadbury PIc. The offer was accepted by majority
of the shareholders of Cadbury PIc on February 2, 2010. Accordingly,
Kraft Foods, Inc., would become the ultimate holding company of Cadbury
India Limited when the transaction is completed.
8. Reduction of Share Capital
The Board of Directors of the Company at the meeting held on October
16, 2009 passed a special resolution under section 100 of the Companies
Act, 1956 to reduce the share capital of the company.
The requisite majority of the shareholders have passed a special
resolution approving the reduction of the share capital at the
Extraordinary General Meeting held on November 16, 2009.
A petition has, accordingly, been filed in the High Court of Mumbai to
approve the reduction of share capital.
9. Amounts of the previous year are regrouped and reclassified
wherever necessary to correspond to amounts of the current financial
year.
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