| Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory INDO FARM EQUIPMENT LIMITED Notes to the consolidated financial statements for the year ended 31st March 2019 1. INDO FARM EQUIPMENT LIMITED (the Holding Company) is a Public Limited Company incorporated under the provisions of the Companies Act, 1956 on 5th October 1994 and commenced its operations of manufacture of Tractor and its components in the year 2000. SIGNIFICANT ACCOUNTING POLICIES: 2.1 Basis for brparation of financial statements i. The consolidated financial statements of INDOFARM EQUIPMENT LIMITED (“the company”) and its subsidiary company (BAROTA FINANCE LIMITED) (collectively referred to as “the Group”) have been brpared and brsented to comply with the Indian Generally Accepted Accounting Principles (GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013; and the guidelines issued by the Reserve Bank of India as applicable to NBFC; and as per the provisions of the Companies Act, 2013; and on the basis of going concern. ii. The consolidated financial statements are brpared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts. The consolidated financial statements are brsented in Indian rupees rounded off to the nearest rupees in Lacs. iii. All the Income & Expenditure are recognized on accrual basis under the historical cost convention iv. Further, the Subsidiary Company follows prudential norms for Income Recognition, assets classification and provisioning for Non-Performing assets as well as contingency provision for Standard assets as brscribed by The Reserve bank of India (RBI) for Non-Banking Financial Companies. 2.2 Principles of Consolidation The consolidated financial statements include the financial statements of Indo Farm Equipments Limited., the Holding company, and its subsidiary company – Barota Finance Limited. The proportion of ownership of the subsidiary company in the consolidation of financial statements is as follows- Name of Company | Proportion of Ownership | | | March 31, 2019 | March 31, 2018 | Barota Finance Limited | 100% | 100% |
The consolidated financial statements have been combined on a line-by-line basis by adding the book values of the items of assets, liabilities, income and expenses, after eliminating intra-group balances/transactions and resulting unrealized profit in full. The consolidated financial statements are brsented, to the extent possible, in the same format as that adopted by the holding company for its separate financial statements. The consolidated financial statements have been brpared in accordance with Accounting Standard (AS- 21) – “Consolidated Financial Statements” issued by The Institute of Chartered Accountants of India”. The excess of the cost to the holding of its investment in the subsidiary over the holding’s share of equity in the subsidiary, at the date on which investment, is recognized as “Goodwill” and shown under the head “Intangible Assets” in the Consolidated Financial Statements . 2.3 Use of Estimates The brparation of consolidated financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized. 2.4 Property, Plant and Equipment i. Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated debrciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets. ii. Self fabricated fixed assets include material cost and appropriate share of attributable expenses. iii. Assets retired from active use and held for disposal are stated at their estimated net realisable values or net book values, whichever is lower. iv. Debrciation is provided on SLM basis based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. 2.4 Impairment of Fixed Assets Management of holding company periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value of the asset exceeds the value of future cash flows expected to arise from the continuing use of the assets and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset’s net sales price or brsent value as determined above. 2.5 Accounting for Government Grants Government Grants related to specific fixed assets are accounted for on receipt basis. Grants received are deducted from the gross value of fixed assets concerned in arriving at their book value. Government Grants related to specific expense are booked on accrual basis and deducted from the related expense. Government Grants in the nature of promoter’s contribution like investment subsidy, where no repayment is ordinarily expected in respect thereof, are treated as capital reserve. 2.6 Borrowing Costs Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred. 2.7 Inventories Raw Material, Stores and Spares and Packaging Materials Lower of Cost or Net Realizable Value. Cost of inventory comprises all cost of purchase and other cost incurred in bringing the inventories to their brsent location and condition. However, materials and other items held for use in the production of finished goods are not written down below cost if the products in which they will be used are expected to be sold at or above cost. Cost is determined on FIFO basis. Finished Goods Lower of Cost or Net Realizable Value. Cost includes direct materials, freight and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished Goods lying at Sales Depots including cess and freight. Work in Progress At Cost up to estimated stage of completion. Cost includes direct material and labour and a proportion of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. 2.8 Revenue Recognition Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefits will flow to the Group. Sale of goods: Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of sales returns and sales tax but including export benefits accruing on export sales. Revenue is also recognised for goods sold but not dispatched, where the property in such goods is transferred from the seller to the buyers and where dispatches could not be made on account of practical difficulties at the buyers' end. Income From Loans : a. Interest Income from loan transactions is accounted for by applying the interest rate implicit in such contracts. b. Service charges, documentation charges and other fees on loan transactions are recognised at the commencement of the contract. c. Delayed payment charges, fee based income and Interest on trade advances are recognised when they become measurable and when it is not unreasonable to expect their ultimate collection. d. Income on business assets classified as Nonperforming Assets, is recognised strictly in accordance with the guidelines issued by The Reserve Bank of India for Non-Banking Financial Companies. Unrealized interest recognized as income in the brvious period is reversed in the month in which the asset is classified as Non-performing. Subvention Income : Subvention Income received from manufacturers/dealers on vehicles financed is booked over the of the period of contract. Dividends: Dividend from investments is recognized in the Profit and Loss Account when the right to receive payment is established. Export Benefits: Export benefits and other benefits are accounted for on accrual basis. 2.9 Foreign Exchange Transactions a. Initial Recognition Investments in foreign entities are recorded at the exchange rate brvailing on the date of making the investment. Transactions denominated in foreign currencies are recorded at the average rate . b. Conversion Monetary assets and liabilities denominated in foreign currencies, as at the balance sheet date, not covered by forward exchange contracts, are translated at year end rates. Fixed Assets are recorded at the exchange rate brvailing at the date of making the transaction. c. Exchange Differences Exchange differences arising on the settlement of monetary items or on reporting Group’s monetary items at rates different from those at which they were initially recorded during the year, or reported in the brvious financial statements, are accumulated in foreign exchange translation reserve until the disposal of the Net Investment. The exchange difference on foreign currency denominated long term borrowings relating to the acquisition of debrciable capital assets are adjusted in the carrying cost of such assets for current year . 2.10 Investments Investments are classified into current and long term investments. Long Term Investments are stated at cost and provision for diminution in value is made if decline is other than temporary in the opinion of the management. Current Investments are valued at cost and provision is made for any decline in market value. . 2.11 Leases Leases, where the lessor retains substantially all the risks and benefits of the ownership of the leased item are classified as operating leases. Lease rentals for assets taken on operating lease are charged to the profit and loss account in accordance with Accounting Standard 19 on leases. 2.12 Taxation Tax expense comprises of current taxes, deferred taxes, net of MAT credits if any. Provision for current taxation is ascertained on the basis of the assessable profits computed in accordance with the provisions of the Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted by the balance sheet date. Deferred tax assets relating to timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. MAT credit has been recognised as an asset and created by way of a credit to the profit and loss account, in accordance with the provisions of the Guidance Note on accounting for credit available in respect of MAT under the Income Tax Act, 1961. 2.13 Provisions, Contingent Liabilities and Contingent Assets The Group creates a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not discounted to their brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. 2.14 Employee Benefits a) The Holding Company has a gratuity scheme whereby it contributes brmium annually to the Life Insurance Corporation of India to cover its statutory as well as contractual liability to its employees. The Subsidiary Company accounts for liability of future gratuity benefits based on an external actuarial valuation on projected unit credit method carried out for assessing liability as at the reporting date. Actuarial gains/losses are immediately taken to the Statement of profit and loss and are not deferred. b) Leave encashment is accounted for on accrual basis whereby the Holding Company contributes brmium annually to the Life Insurance Corporation of India to cover its statutory as well as contractual liability to its employees. The Subsidiary Company provides for the encashment / availment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment / availment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. c) Contribution to Provident Fund is made in accordance with provision of Employees Provident Fund Act, 1952, and is recognized as an expense in the statement of profit and loss in the period in which the contribution is due. 2.15 Earnings Per Share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. 2.16 Product Warranties In respect of warranties given by the Holding Company on sale of products, the estimated costs of these warranties are accrued at the time of sales. The estimates for accounting of warranties are reviewed and revisions are made as required. 2.17 Provisioning/ Write-off on Assets The Provisioning/ Write-off on Assets on overdue assets is as per the management estimates subject to their minimum provision required as per Master Direction – Non Banking Financial Company- Non Systematically Important Non Deposit taking Company (Reserve bank) Directions ,2016. 2.18 (a)Product Development Product Development is to be amortized on a straight line basis over a period of five years. (b) Deferred Revenue Expenditure Deferred Revenue Expenditure is to be amortized on a straight line basis over a period of succeeding five years. (c) Preliminary Expenses Preliminary Expenses are written off over the period of 5 years. NOTES ON ACCOUNTS: 29. The Detail of Shareholder Holding More Than 5% Equity Shares Particulars | AS AT 31.03.2019 | | AS AT 31.03.2018 | | Name Of Shareholder | No. Of Shares Held | Percentage Of Shareholding | No. Of Shares Held | Percentage Of Shareholding | R. S. Khadwalia | 50,77,600 | 54.08% | 50,00,000 | 55.15% | Sunita Saini | 26,62,587 | 28.36% | 24,99,120 | 27.56% | M/s Futuristic Mining and Constructions Solutions Ltd. | 10,92,990 | 11.64% | 10,92,990 | 12.05% |
Reconciliation of no. of shares outstanding is given below: Particulars | 31.03.2019 | 31.03.2018 | Equity shares at the beginning of the year | 90,67,900 | 90,67,900 | Issued during the year | 3,20,000 | Nil | Equity shares at the close of the year | 93,87,900 | 90,67,900 |
30. a) Contingent Liabilities (Rs. In Lacs) S.No. | Particulars | 31.03.2019 | 31.03.2018 | i) | Counter guarantee to bank | 13.92 | 12.56 | ii) | Bond Executed by the company in favour of DGFT | 68.23 | 8.57 | iii) | Claims against the company not acknowledged as debts | 311.92 | 274.88 | iv) | Excise matters in dispute | 401.14 | 401.14 | v) | Consumer cases in dispute/Under appeal | 110.13 | 132.61 | vi) | Bill Discounting | 404.64 | 1185.01 | vii) | Differential accounts of custom duty in respect of machinery imported under EPCG Scheme | Nil | Nil |
b) Commitments S.No. | Particulars | 31.03.2019 | 31.03.2018 | i) | Estimated amount of contracts remaining to be executed on capital account and not provided for | Nil | 166.62 | ii) | Uncalled liability on shares and other investments partly paid | Nil | Nil | iii) | Other commitments | Nil | Nil |
31. Current Liabilities (a) The principal amount remaining unpaid as at 31st March 2019 in respect of enterprises covered under the “Micro, Small and Medium Enterprises Development Act, 2006” are Rs. 597.42 lacs (brvious year Rs. 501.13 lacs). The interest amount computed based on the provisions under Section 16 of the MSMED Act Rs. 5.06 Lacs (brvious year Rs. 9.57 Lacs) is remaining unpaid as of 31st March 2019. The list of undertakings covered under MSMED Act was determined by the Holding company on the basis of information available with the Holding company and the same has been relied upon by the auditors. (b) Investor Education and Protection Fund There are no amounts in respect of unpaid dividend which have become due for deposit to Investor Education and Protection Fund as at balance sheet date. 32. Current Assets, Loans & Advances In the opinion of the management of the Company, the current assets, loans and advances are approximately of the value as stated, if realized in the ordinary course of business. 33. Employee Retirement Benefits* a). In case of a Holding Company: GRATUITY Membership Data | | No. of Members | 195 | Average Age | 40.47 | Average Monthly Salary | 9824.66 | Average Past Service | 11.42 | | | Actuarial Assumptions | | Mortality Rate | LIC(2006-08) ultimate | Withdrawal Rate | 1% to 3% depending on age | Discount rate | 7.5% p.a |
Result of Valuation | | Present Valuation of Past Services benefits | 81,45,213 | Current Service Cost | 6,75,021 | Total Service Gratuity | 3,14,88,113 | Accrued Service Gratuity | 1,27,34,962 | LCSA | 1,87,53,151 | LC Premium | 60,915 | GST | 10,965 |
Recommended Contribution Rate | | Fund Value as on Renewal Date | 81,01,345 | Additional Contribution for existing fund | 43,868 | Current Service Cost | 6,75,021 |
TOTAL AMOUNT PAYABLE | 7,90,769 |
* as per Valuation by Life Insurance Corporation of India who manages the Fund b). In case of Subsidiary Company : Membership data at the date of valuation and statistics based thereon: Membership Data | | Number of employees | 112 | Total monthly salary | 19,15,900 | Total Monthly CTC for Availment | 40,59,490 | Average Age(Years) | 32 | Average Past Service(Years) | 0.92 | Average Future Service (year) | 8.10 | Average Accumulated leave per employee ( in days) | 5 |
| | | Actuarial Assumptions | | | Mortality Rate | | Indian Assured Lives Mortality (2012-14) Ult. | Attrition | | 10% | Disability | | No Explicit allowance | Leave Availment factor | | 50% | Discount rate | | 7.5% p.a | Estimated rate of increase in Compensation Levels | | 5% | | | |
Classification of Liabilities as on 31st March, 2019 Classification | Gratuity | Leave Encashment | Current | 1,214 | 5,905 | Non-Current | 6,02,943 | 3,35,672 | Total | 6,04,157 | 3,41,577 |
Changes in Present Value of Obligations Particulars | Gratuity | Leave | Present Value of Obligations as on 01/04/2018 | 0 | 0 | Past Service Cost | 0 | 0 | Current Service Cost | 5,02,757 | 3,45,177 | Actuarial (gain)/loss on obligations | 1,01,400 | 0 | Present Value of Obligations as on 31/03/2019 | 6,04,157 | 3,41,577 |
34. Income Tax Current Tax Provision for Income tax has been made as per the relevant rates and provisions of the Income-tax Act, 1961. Deferred Tax In compliance with Accounting Standard (AS-22) relating to “Accounting on Taxes on Income” issued by the Institute of Chartered Accountants of India, the Group has provided Deferred Tax Asset during the year aggregating to Rs. 202.20 Lacs (Previous Year Deferred Tax Liability Rs. 17.26 Lacs)and it has been recognized in the Profit & Loss Account. In accordance with clause 29 of Accounting Standard (AS 22) Deferred tax Assets and Deferred tax liabilities have been set off. Deferred tax assets in respect of unabsorbed debrciation and losses under tax laws have been recognized in view of the continued and consistent profitability of the company. 35. Expenditure in Foreign Currency RAW MATERIAL CONSUMED (Rs. In Lacs) Sr. No | Particulars | Amount | 2018-19 (%age) | Amount | 2017-18 (%age) | 1. | Imported | 141.12 | 0.78% | 96.42 | 0.59% | 2. | Indigenous | 17893.14 | 99.22% | 16,314.92 | 99.41% |
(Rs. In Lacs) Particulars | | 2018-2019 | 2017-2018 | (a) | CIF Value of Imports | | | 1. | Raw Material (Rs in lacs) | 141.12 | 96.42 | (b) | Expenditure in Foreign Currency – Others | 24.95 | 47.44 | (c) | Remittances in Foreign Currency | Nil | - | (d) | Earnings in Foreign Currency | 1118.60 | 1,367.63 |
36. Related Party Disclosures Related party disclosures as required under Accounting Standard (AS-18) on “Related Party Disclosures” issued under the Companies ( Accounting Standard) Rule 2006, as amended up to date, are given below: - a) Relationship i) Joint Ventures and Associates None ii) Key Management Personnel (Managing Director/Whole-time directors) Ranbir Singh Khadwalia Sunita Saini Anshul Khadwalia Shubham Khadwlia (Barota Finance Limited) Sat Parkash Mittal (Indo Farm Equipment Limited) Ram Kanwar Saini (Indo Farm Equipment Limited) Charan Singh Saini (Indo Farm Equipment Limited) Inder Singh Negi (Indo Farm Equipment Limited) Prem Kumar Dhasmana (Indo Farm Equipment Limited) Dhian Lal Rana (Indo Farm Equipment Limited) Shaveta Sharma (Indo Farm Equipment Limited) Navbret Kaur (Indo Farm Equipment Limited) iii) Relatives of the Key Management Personnel* Shubham Khadwalia (s/o R.S. Khadwalia) Ritu Saini iv) Entities over which key management personnel / their relatives are able to exercise significant influence* None * With whom the company had transactions during the year. b) The following transactions were carried out with related parties in the ordinary course of business. Key Management Personnel and their relatives (Rs in Lacs) Sr. No. | PARTICULARS | 31.03.2019 | 31.03.2018 | i. | Remuneration | 594.26 | 428.50 | ii. | Incentive Paid | - | 1.21 | iii. | Others (Gratuity & Ex – Gratia) | - | 6.84 | iv. | Rent Paid | 18.10 | 18.46 | v. | Unsecured Loans (Aceepted) | 359.00 | 507.50 | vi. | Unsecured Loans (Paid) | 677.00 | 124.00 |
37. Segment Reporting Segment Reporting Disclosure | | | | | | | | | | | | | | | Rs. In Lacs | Particulars | Tractors | Crane | Others | Eliminations | Unallocable Items | | Consolidated Total | Current Year | Current Year | Current Year | Current Year | Current Year | | Current Year | | | | | | | | | REVENUE | | | | | | | | External Sales | 20,111.15 | 10,166.78 | 1,183.96 | - | | - | 31,461.88 | Inter Segment Sales | - | - | 2,281.05 | (2,281.05) | | - | - | Total Sales | 20,111.15 | 10,166.78 | 3,465.01 | (2,281.05) | | - | 31,461.89 | Miscllaneous Income | 11.76 | 0.45 | 0.35 | - | | - | 12.56 | Segment Revenue | 20,122.90 | 10,167.23 | 3,465.36 | (2,281.05) | | - | 31,474.44 | Interest Income | - | - | - | - | | 171.87 | 171.87 | Insurance Income | - | - | 12.26 | - | | - | 12.26 | Other Unallocable Income | - | - | - | - | | 10.80 | 10.80 | Total Revenue | 20,122.90 | 10,167.23 | 3,477.62 | (2,281.05) | | 182.67 | 31,669.37 | RESULT | | | | | | | | Segment Result | 672.36 | 362.49 | 234.72 | - | | - | 1,269.57 | Unallocated Corporate Expenses | | | | | | | - | Interest Expense | | | | | | | - | Profit Before Taxation | | | | | | | 1,269.57 | Income Taxes | | | | | | | 191.20 | Profit Before Prior Period Expenses | | | | | | | 1,078.37 | Prior Period Expenses | | | | | | | - | Profit For the Year | | | | | | | 1,078.37 | OTHER INFORMATION | | | | | | | | Segment Assets | 26,175.05 | 1,869.94 | 11,047.16 | - | | | 39,092.15 | Unallocated Corporate Assets | - | - | - | | | 1,525.80 | 1,525.80 | Total Assets | 30,045.05 | 1,869.94 | 11,047.16 | - | | 1,525.80 | 40,617.95 | Segment Liabilities | 1,455.70 | 2,251.69 | 671.88 | - | | 17,754.58 | 21,933.85 | Total Liabilities | 1,455.70 | 2,251.69 | 671.88 | - | | 17,754.58 | 21,933.85 | Debrciaion | 680.25 | 67.07 | 13.99 | - | | 189.96 | 951.27 | | | | | | | | |
The primary and secondary reportable segments are business and geographic segments, respectively:- (a) Business Segments For management purposes the holding company is organized on a worldwide basis into two major reportable segments: (1) Tractors & its parts (2) Mobile Cranes The divisions are the basis on which the holding company reports its primary segment information. The ‘Tractors & its parts’ segment produces broad range of Tractors & its accessories and other agricultural implements. The ‘Mobile Cranes’ segment manufactures cranes of various capacities ranging from 10 tonne to 20 tonnes. Other operations include Foundry Division, Genset manufacturing, Combine Harvester, Rotavator , Hydraulic parts manufacturing activities and services provided by Barota Finance Limited.. (b) Geographical Segments Though the Holding Company's business activity falls in two primary segments viz. "Tractor and its parts" and “Mobile cranes” reportable as per Accounting Standard -17 “Segment Reporting”, issued by The Institute of Chartered Accountants of India but it operates in a single geographical segment that is subject to same risk & return all over, so the segment does not qualify for the disclosure requirements of the above standard for secondary reportable segment on the basis of Geographical area, as such same has not been reported. (c) Segment revenues and expenses All segment revenues and expenses are directly attributable to the segments. (d) Segment assets and liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. While most such assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. (e) Inter-segment transfers: Segment revenue, segment expenses and segment result include transfers between business segments and between geographical segments. Such transfers are accounted for at competitive market prices charged to unaffiliated customers for similar goods. Those transfers are eliminated in consolidation. (f) Accounting policies: The accounting policies consistently used in the brparation of the consolidated financial statements are also applied to items of revenues and expenditure in individual segments. (g) Unallocable and Head office expenses General administrative expenses, head-office expenses, and other expenses that arise at the corporate level and relate to the Group as a whole, are shown as unallocable items. 38. Payment to Auditors (Rs in Lacs) PARTICULARS | 2018-19 | 2017-18 | Statutory Audit Fee | 12.00 | 10.00 | Tax Audit Fee | 5.00 | 3.00 | GST/ Service Tax | 3.06 | 2.34 | Others (Audit Expenses) | 0.19 | 0.18 |
39. Earning Per Share (EPS) (Rs in Lacs) PARTICULARS | UNIT | YEAR ENDED 31.03.2019 | YEAR ENDED 31.03.2018 | Profit After Tax | Rs. | 1078.37 | 604.73 | No of Shares Outstanding Basic Diluted | Nos. Nos. | 93,87,900 93,87,900 | 90,67,900 90,67,900 | No of Weighted Average equity shares Basic Diluted | Nos. Nos. | 92,36,229 92,36,229 | 90,67,900 90,67,900 | Nominal value of equity shares | Rs. | 10/- | 10/- | | | | | Earnings per Share | | | | -Basic | Rs. | 11.51 | 6.67 | -Diluted | Rs. | 11.51 | 6.67 |
40. a) Secured Loans Term Loan from Federal Bank is secured by way of extension of charge on residential property, having Address H.No.103-104, Sector 6, Panchkula, Haryana owned by Directors. Further secured by way of personal guarantee of Directors of Indo Farm Equipment Limited. Term Loan from Siemens has been secured against hypothecation of respective machinery. Term loan from The Federal Bank Ltd. is secured by way of Equitable mortgage of residential property Owned by Sh. R.S. Khadwalia and Sunita Saini and Personal guarantee of directors & corporate guarantee of Indo Farm Equipment Limited. Other Loans comprise of Vehicle Loans which are secured against hypothecation of respective vehicles. Car loan from The Federal Bank Ltd. is secured against the hypothecation of respective vehicles. Maturity Profile (Rs. in Lacs) Particulars | 1 – 2 years | 2 - 5 years | Beyond 5 years | From Banks: | | | | - Term Loans | 216.32 | 749.83 | 187.69 | - Vehicle Loans | 85.18 | 119.56 | 2.05 | -Inter Corporate Deposit | 287.9 | 674.48 | Nil |
In case of Holding Company : I. Working Capital Limits are secured by way of Exclusive Charge on all the current assets of the Company and further secured by way of Exclusive Charge on all the fixed assets excluding vehicles of the Company and personal guarantee of directors. II. Working Capital Demand Loan from Federal Bank is secured by way of extension of charge on residential property, having Address H.No.103-104, Sector 6, Panchkula, Haryana owned by Directors. Further secured by way of personal guarantee of Directors. In case of Subsidiary Company : I. Working Capital Limit from Canara Bank is secured by way of first and Exclusive Charge by hypothecation on the receivables ( Standard Assets) of the Company and Execution of power of attorney to enable bank to recover money directly from the borrower of the company in the event of default and Personal guarantee of directors & corporate guarantee of Indo Farm Equipment Limited.. b) Unsecured Loans The Subsidiary Company has received term loan from Essel Finance Business Loans Limited. The Subsidiary Company has also received Unsecured Loans from Directors. 41. Loan Provisions The Subsidiary Company has made adequate provision for the Non - Performing Assets identified in accordance with the guidelines issued by The Reserve Bank of India. In accordance with the Master Direction , – Non Banking Financial Company- Non Systematically Important Non Deposit taking Company (Reserve bank) Directions ,2016 provision of Rs. 21.31 Lacs is made during the current year (As at 31st March,2018 provision was Nil). The Subsidiary Company has made adequate provision for the Standard Assets identified in accordance with the guidelines issued by The Reserve Bank of India. In accordance with the Master Direction , – Non Banking Financial Company- Non Systematically Important Non Deposit taking Company (Reserve bank) Directions ,2016 provision of Rs.17.02 Lacs is made during the current year (As at 31st March,2018 provision was Rs7.62 Lacs). 42. Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013, read with Schedule VII thereof: Rs. 14.85 Lacs. 43. Provision For Liabilities, Other Than for Taxes on Income And Retirement Benefits*: | (Rs. In Lacs) | | Provisions for product warranty and servicing costs # | 2019 | 2018 | | | | Opening Balance | 78.00 | 71.85 | Additions During the year | 90.20 | 78.00 | Amount Used\Write Off during the year | (78.00) | (71.85) | Closing Balance | 90.20 | 78.00 |
# Warranty provisions are made for expected future cash outflows and computed on total sales made during the year, based on past experience. * The above details pertain to Holding Company only. 44. Previous year figures have been re-grouped and re-arranged wherever considered necessary. The figures in Consolidated Balance Sheet, Consolidated Statement of Profit & Loss and Consolidated Cash Flow Statements have been reflected in the nearest rupee. For Deepak Jindal & Co. For Indo Farm Equipment Limited Chartered Accountants Firm Regn. No:-023023N S.P Mittal R.S. Khadwalia (Director) (Chairman Cum Managing Director) per Deepak Jindal Partner Navbret Kaur Harash Arora M.No. 514745 (Company Secretary) (Chief Financial Officer) UDIN : 19514745AAAACF9030 Gurvinder Singh Chadha (Deputy General Manager) Place : Chandigarh Date : 12.09.2019 Disclosure of employee benefits explanatoryEmployee Benefits a) The Holding Company has a gratuity scheme whereby it contributes brmium annually to the Life Insurance Corporation of India to cover its statutory as well as contractual liability to its employees. The Subsidiary Company accounts for liability of future gratuity benefits based on an external actuarial valuation on projected unit credit method carried out for assessing liability as at the reporting date. Actuarial gains/losses are immediately taken to the Statement of profit and loss and are not deferred. b) Leave encashment is accounted for on accrual basis whereby the Holding Company contributes brmium annually to the Life Insurance Corporation of India to cover its statutory as well as contractual liability to its employees. The Subsidiary Company provides for the encashment / availment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment / availment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. c) Contribution to Provident Fund is made in accordance with provision of Employees Provident Fund Act, 1952, and is recognized as an expense in the statement of profit and loss in the period in which the contribution is due. |