1. Based on the valuation report by a Chartered Engineer, an external
valuer, the Company''s freehold land had been revalued on appraisal
method at Rs 6,257.10 on 31st March, 2008 resulting in increase in the
net book value of the assets of Rs 3,075.24 by a corresponding credit to
revaluation reserve account.
2. Capital commitments not provided for at the date of this balance
sheet are estimated at Rs 116.32 (Previous year Rs 521.12) after netting
of advances paid.
3. Based on the information available with the Company, the principal
amount due to Micro and Small Enterprises, as defined under the Micro,
Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is
Rs Nil (Previous year Rs Nil). Further, no interest during the year has
been paid or payable under the terms of the MSMED Act, 2006.
4. Total stores and spare parts consumed during the year are Rs
2,150.21(Previous year Rs 1,943.04) and include Rs 251.22 (Previous year
Rs 198.63) debited to relevant expense heads.
5. Consignment sales expenses, disclosed in Note 28, comprise of
cess, rent, rates and taxes, insurance, delivery charges, brokerage and
commission and miscellaneous expenses, the amount of rent being Rs 0.52
(Previous year Rs 0.12), rates and taxes being Rs 0.30 (Previous year Rs
3.67 ) and insurance being Rs 0.29 (Previous year Rs 0.29).
6. Forward cover for foreign currency receivables outstanding at year
end is Rs Nil (Previous year Rs 94.88). Foreign currency exposure (net)
at year end that are not hedged by derivative instruments or otherwise
is Rs 1,628.78 (Previous year Rs 777.82).
7. EXCHANGE DIFFERENCE ON FOREIGN CURRENCY IN ACCORDANCE WITH AS - 11
Exchange difference (net), other than finance cost, amounting to Rs
340.45 (Previous year Rs 196.17) have been credited to respective
revenue heads in the Statement of Profit and Loss. Such difference
includes premium received amounting to Rs Nil (Previous year Rs 0.43) and
exchange loss amounting to Rs Nil (Previous year Rs 0.16) in respect of
outstanding forward contracts. Premium on outstanding forward exchange
rate contracts to be recognised in the subsequent year amounts to Rs Nil
(Previous year Rs 0.82).
8. ACCOUNTING OF GOVERNMENT GRANTS IN ACCORDANCE WITH AS - 12
Government grants received by the company comprise of capital subsidy
of Rs 55.52 (Previous year Rs 27.21), export incentives of Rs 209.51
(Previous year Rs 499.77) and other revenue grants of Rs 72.79 (Previous
year Rs 32.30).
9. EMPLOYEE BENEFITS DISCLOSURES IN ACCORDANCE WITH AS - 15 (REVISED)
i. Defined Contribution Plans
The Company has during the year recognised an expense of Rs 436.94
(Previous year Rs 399.55) towards defined contribution plans.
Out of the total contribution, made for employees'' provident fund, a sum
ofRs 60.48 (Previous year Rs 53.24) has been made to Cheviot Company
Limited Employees'' Provident Fund while the remaining contribution has
been made to the provident fund plan operated by the Regional Provident
Fund Commissioner. Further, considering the past track and fair value
of the plan assets of the Trust, the Company does not envisage any
shortfall in liability towards the interest payable by the Trust at the
notified interest rate.
Expected rate of return on plan assets is based on the average
long-term rate of return expected on investments of the funds during
the estimated term of the obligations.
The estimates of future salary increases considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment.
a. General description of the defined plans :
i. Gratuity Plan
This is a funded defined benefit plan for qualifying employees. The
Company makes contributions to the Cheviot Company Limited Employees''
Gratuity Trust Fund. Gratuity is payable to all eligible employees of
the Company on superannuation, death, permanent disablement and on
resignation/termination of employment in terms of the Provisions of the
Payment of Gratuity Act or as per the Company''s rule, whichever is more
beneficial to the employee.
ii. Leave Plan
Eligible employees can carry forward and encash leave on
superannuation, death, permanent disablement and on
resignation/termination of employment in accordance with the Company''s
scheme subject to a maximum of 45 days depending on the grade/category
10. SEGMENT REPORTING IN ACCORDANCE WITH AS - 17
The Company operates through two business segments namely, a) Jute
goods and b) Captive power generation. However, Captive power
generation is not a reportable segment in terms of the criteria laid
down in paragraph 27 of the Accounting Standard -17, as the
revenue/results/assets of this segment are not more than the threshold
limit of 10% of the total segment revenue/results/assets and as such
the disclosure requirements as required by Accounting Standard -17 are
not applicable in respect of business segment. However, the
geographical segments considered for disclosure are as under:
11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS IN
ACCORDANCE WITH AS - 29
a. In accordance with Accounting Standard 29 - Provisions, Contingent
Liabilities and Contingent Assets, the Company as a prudent measure,
has made following provisions in the books :
Year ended Year ended
31st March, 2012 31stMarch,2011
PROVISIONFORCONTINGENCIES Indirect taxes Indirect taxes
Balance at the beginning of the year 396.94 163.48
Additional provision during the year 93.55 233.46
Provision used during the year 5.94 -
Provision reversed during the year 213.13 -
Balance at the end of the year 271.42 396.94
Provision for contingencies represents estimates made mainly for
probable claims arising out of disputes pending with the authorities
under various statutes (i.e. Excise and Sales Tax). The probability and
timing of the outflow with regard to these matters depend on the
ultimate settlement / conclusion with the relevant authorities.
b. Contingent liabilities not provided for:
i. Sales Tax in dispute - Rs 5.06 (Previous year Rs 6.58) under appeal
and not acknowledged as debt.
ii. Income Tax in dispute - Rs 145.82 (Previous year Rs 236.65) pending
revision and not acknowledged as debt.
iii. Employees'' state insurance in dispute Rs Nil (Previous year Rs
14.38) being contested in view of liability foreseen of Rs Nil (Previous
year Rs 5.26). Provision has thus been made of Rs Nil (Previous year Rs
5.26), and against which a sum of Rs Nil (Previous year Rs 5.20) has been
12. The Company is maintaining separate books of account for its
different undertakings viz, DTA, Captive Power Plant at Budge Budge and
EOU at Falta, SEZ.
13. The Board of Directors recommend payment of dividend of Rs 13/-
(Previous year Rs 12/-) per Ordinary share of the face value of Rs 10/-
each for the year ended 31st March, 2012.
14. In view of the revision to the Schedule VI as per notification
issued by the Central Government, the financial statements for the year
ended 31st March, 2012 have been prepared as per the requirements of
the revised Schedule VI to the Companies Act, 1956. The previous year''s
figures have been accordingly re-grouped / re-classified to conform to
the current year''s classification.