CCL Products India

(Rs. in Lakhs)
 
 1    Contingent Liabilities:         2008-2009          2007-2008
 
      Guarantees                       641.64             453.95
 
      Others                            31.76              31.76
 
 
 2 LOANS, ADVANCES & DEBTORS
 
 Loans, advances and debtors as stated in the Balance Sheet are, in the
 opinion of the Management, realizable in the ordinary course of
 business.
 
 3 SECURED LOANS
 
 i) During the year Company has availed term loan amounting to Rs. 13.00
 (against sanction of Rs. 18.00 Crores) from HSBC Bank Ltd for expansion
 of Plant. The Term Loans are secured by Paripassu Charge on all the
 Fixed Assets of the Company by way of deposit of title deeds in respect
 of Factory and Land admeasuring Acr. 19.3475 Cents situated at
 Duggirala Mandal, Guntur District. The said facility is further secured
 by way of second charge on the current assets of the company both
 present and future. The Term Loans availed by the company are also
 secured by the personal guarantee of the Chairman & Managing Director.
 
 ii) Working Capital Facilities by State Bank of India, State Bank of
 Hyderabad and ICICI Bank Limited under consortium are secured by way of
 first paripassu charge on Hypothecation of stocks of raw materials,
 semi finished, finished goods, consumables, stores, book debts and such
 movable assets present and future and second charge on all fixed assets
 of the Company.
 
 4. As per the Gazette notification dated 31.03.2009 issued by
 Government of India, the company has capitalized exchange differences
 arising out of revaluation of these loans with effect from 17m
 December, 2006. The effect on financial statement due to this is as
 follows:
 
 1.  Increase in fixed assets/cwip of Rs.1204.94 Lakhs (net)
 
 2.  Increase in depreciation amount of Rs.46.84 Lakhs (net)
 
 3.  Resultant exchange fluctuation adjusted against General Reserve of
 Rs.649.02 Lakhs
 
 5 As per the Certificate given by the Management, there is no delay in
 making payments to Micro, Small and Medium Enterprises attracting the
 provisions of the Micro, Small and Medium Enterprises Development Act,
 2006.
 
 6.  Segment Reporting
 
 Based on the guiding principles given in Accounting Standard on
 Segment Reporting (AS-17) issued by the Institute of Chartered
 Accountants of India the Companys primary business segment is Instant
 Coffee.
 
 Segment Accounting Policies
 
 In addition to the significant accounting policies applicable to the
 business segment as set out in Note 1- Schedule 14 of the Notes to the
 Accounts, the accounting policies in relation to segment accounting are
 as under:
 
 Segment assets and liabilities
 
 All segment assets and liabilities are directly attributable to the
 segment.
 
 Segment assets include all operating assets used by the segment and
 consist principally of fixed assets, inventories, sundry debtors, loans
 and advances and operating cash and bank balances.  Segment assets and
 liabilities do not include investments, inter corporate deposits,
 reserves and surplus, borrowings, provision for contingencies and
 income tax (both current and deferred).
 
 Segment revenue and expenses
 
 Segment revenue and expense are directly attributable to the segment.
 Segment revenue and expense do not include interest income on
 inter-corporate deposits, profit on sale of investments, interest
 expense, provision for contingencies and income tax
 
 7.  Reporting on related parties:
 
 1 Key Management Personnel 
 
 Mr.C.Rajendra Prasad, Chairman & Managing
 Director
 
 2  Relative of Key Management Personnel
 
 Mrs.C.Shantha Prasad - (Spouse of Mr.C.Rajendra Prasad C.M.D.) and
 
 Mr.C.Srishant        - (Son of Mr.C.Rajendra Prasad C.M.D.)
 
 
 3 Subsidiaries
 
 M/s.Associated Coffee Merchants (International) Limited - UK
 
 (Subsidiary of CCL Products (India) Limited - India)
 
 M/s.Complete Coffee Ltd. London (Subsidiary of Associated Coffee
 
 Merchants (International) Limited - ACMIL)
 
 M/s.The Priory Tea and Coffee Co.Ltd (Subsidiary of Associated Coffee
 
 Merchants (International) Limited -ACMIL)
 
 M/s.Ridge Futures Limited (Subsidiary of Associated Coffee
 
 Merchants (International) Limited -ACMIL)
 
 M/s.CCL Products (UK) Ltd (Subsidiary of Associated Coffee
 
 Merchants (International) Limited -ACMIL)
 
 M/s. Ernest A Breminer (Subsidiary of Associated Coffee
 
 Merchants (International) Limited -ACMIL)