1. Particulars of raw material consumed, sales and stock of fnished
Pursuant to Press Note No. 2/2011 dated 8 February 2011, issued by the
Ministry of Corporate Affairs, disclosures required by Para II, para
3(i) (a), 3(ii)(a) and 3(ii)(b) and 3(ii)(d) of Schedule VI to the
Companies Act, 1956 are not required to be disclosed.
2. Earning in foreign currency (accrual basis)
3. Detail of dues to micro and small enterprises defined under the
MSMED Act 2006
The management has initiated the process of identifying enterprises
which have provided goods and services to the Company and which qualify
under the definition of micro and small enterprises, as defined under
Micro, Small and Medium Enterprises Development Act, 2006. The Ministry
of Micro, Small and Medium enterprises has issued an office memorandum
dated 26 August 2008 which recommends that the Micro and Small
enterprises should mention in their correspondence with its customers
the entrepreneur''s Memorandum number as allocated after filling of the
Memorandum. The Company has not received any claim for interest from
any supplier under the said Act.
4. Commitments and contingent liabilities
a) Firm capital commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) is Rs. 371.02 (previous
year Rs. 283.60).
b) Other commitments
Pending contracts for guar seeds and splits net of advance and not
provided for is Rs. 6,922.54 (previous year Rs. Nil)
c) Corporate guarantees provided
The Company has given corporate guarantees aggregating Rs. 3,500
(previous year Rs. 3,000) to banks on behalf of others.
d) Claims against the Company not acknowledged as debts in respect of
Income tax matters, under dispute
The Additional Commissioner of Income Tax, Bhiwani (the Assessing
Officer) has raised an additional demand of Rs. 8.49 for the Assessment
Year 1995-96 and interest thereon Rs. 22.23. The Company filed an
appeal against the order passed by the Assessing Officer with the
Commissioner of Income Tax (Appeals), Karnal. The Commissioner of
Income Tax (Appeals) decided the matter in favour of the Company by
setting aside the order passed by the Assessing Officer. Subsequently
the Income tax department filed an appeal against the order of CIT
(Appeals) in the Income Tax Appellate Tribunal (‘the ITAT''), New Delhi
which was accepted by the ITAT. Aggrieved by the order of ITAT, the
Company has filed an appeal with the ‘Hon''ble High Court of Punjab &
Haryana (‘the Hon''ble High Court''). The matter is currently pending
before the Hon''ble High Court.
5. Gratuity and other post-employment benefit plans
The Company has a defined benefit gratuity plan. Gratuity is payable to
all eligible employees of the company on retirement or separation from
6. Segment information
As per Accounting Standard 17 Segment Reporting as specified in Rule 3
of Companies (Accounting standard) Rules, 2006, the the primary segment
reporting i.e. business segments is not applicable since the Company
primarily operates within single primary segment of manufacture and
export of guar gum powder.Accordingly, primary segmental reporting is
performed on the basis of geographical location of customer.
The accounting principles consistently used in the preparation of the
financial statements are also consistently applied to record income in
individual segments. These are set out in the note on significant
Geographical segments at the company primarily comprise customers
located in US, Europe and others. Income in relation to segments is
categorized based on items that are individually identified to those
segments while expenditure is categorized in relation to associated
turnover of the segment. Expenses are not specifically allocable to
specific segments as the underlying services are used interchangeably.
These expenses are separately disclosed as unallocated and adjusted
only against the total income of the company. Fixed assets or
liabilities have not been identified to any reportable segments, as
these are used interchangeably between segments.
All direct cost are identified to its respective geographies on the
basis of revenue from respective geographies.
7. Related party disclosure
a. Transactions with related parties are summarised below :
Related party and nature of related party with whom transactions have
taken place during the year 1) Key management persnnel and their
Mr. B. D. Agarwal - Managing Direcor
Mr. Megh Raj Jindal - Director
Mrs. Bimla Devi Jindal - Director
2) Entities controlled by KMPs Vikas Granaries Limited Vikas Chemi Gums
(India) Limited Vikas Dall and General Mills (Partnership firm)
8. Change in Accounting Policy
During the year, the company changed its accounting policy of
determining the cost of inventory from yearly weighted average method
to quarterly weighted average method. Management considers that due to
huge demand, the prices of guar increased abruptly, hence the change
would result in a more appropriate preperation and presentation of the
finanancial statements of the company. Had the company continued to use
the earlier basis of determining cost of inventory, the statement of
profit and loss for the current period would have been lower by Rs
6,636.06 and correspondingly, the closing inventory would have been
valued lower by that amount.
9. Contract Farming
The company have entered into contract farming agreement with farmers
in 2010-11 for purchase of guar seed and had made advance payment of
Rs. 1,656.00 through bank. During the current year, company has
received guar seed worth Rs. 1,681.58 from the farmers, the balance
payment of Rs. 25.58 due to farmers were paid in cash.
10. Crop Loan
The Company has given a corporate guarantee in respect of loans
aggregating Rs Nil (previous year Rs.1,000.00) disbursed by public
sector bank as per the scheme of crop loan under tie up arrangement
with the Company. The Company acts as business facilitator in
disbursement of the credit facilities sanctioned to the farmers so that
it is able to procure and purchase organic guar from such farmers
Under this scheme, the Company is required to identify eligible
farmers, who are represented collectively in groups designated as joint
liability group (JLG). JLGs receive the loan amount from bank which is
transferred to an escrow account of the Company maintained with the
bank for further disbursal to the farmers.
During the year, funds aggregating to Rs. Nil (previous year Rs.
995.20), obtained under the said scheme were transferred to the
Company''s account. These funds, during the year itself, were
subsequently paid to the JLG''s accounts.
11. Income Tax
During the year, company has made provision for income tax of Rs.
6910.77 as per provision of Income tax act, 1961, whereas till last
year company was eligible for deduction under section 10(B) of the
Income tax act,1961, and has paid minimum alternate tax in accordance
with section 115JB of the Income tax act.
12. Previous year fnancial statements were audited by another firm of
13. Previous Year''s Figures
The pervious year''s figures have been re-grouped/re-classified to
conform to this year''s classification which is as per Revised Schedule
VI. This adoption does not impact recognition and measurement
principles followed for preperation of financial statements as at 31st