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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KARNATAKA STATE SEEDS CORPORATION LIMITED, BANGALORE
Report on the Standalone Financial Statements:
We have audited the accompanying standalone financial statements of Karnataka State Seeds Corporation Limited (“the Company”) which comprise of Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Standalone Financial Statements:
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting policies generally accepted in India, including the accounting standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and fair presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility:
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.
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An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the standalone financial statements.
Basis of Qualified Opinion:
Attention of the members is invited to the following:
a) Foot note a) to note 8 of the financial statements regarding provision for research and development amounting to Rs.29,416,615/- not in accordance with Accounting Standard (“AS”) – 29 Provisions, Contingent Liabilities and Contingent Assets.
b) Foot note ii) b) to note 11 of the financial statements regarding balance in centre accounts amounting to Rs.12,807,061/- carried forward from earlier years, which is under reconciliation.
c) Foot note b) to note 19 of the financial statements regarding stock shortages/ short remittances amounting to Rs.10,890,397/- treated as good of recovery from ex-employees even though in certain cases the Company has initiated the legal action.
d) Foot note d) to note 19 of the financial statements regarding delay in filing subsidy claim with Department of Agriculture amounting to Rs.1,378,469/- treated as good of recovery.
e) Note 31 b) of the financial statements regarding non-disclosure of information as required under AS – 15 Employee Benefits and non-provision for half pay leave to its employees.
f) Note 35 of the financial statements regarding non receipt of confirmation of balances from various vendors and parties with whom the Company has transactions.
In all the above cases we are unable to express any independent opinion and effect on revenue not ascertained.
Qualified Opinion:
In our opinion and to the best of our information and according to the explanations given to us except for the matters described in the Basis of Qualified Opinion, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2015, and its profits and its cash flows for the year ended on that date.
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Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor’s Report) Order, 2015 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by the section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The balance sheet, the statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 except for note 31 b) of the financial statements regarding non-disclosure of information as required under AS 15 and non-provision for half pay leave payable to its employees and Provision for Research and Development activities is not as per AS 29.
e. On the basis of the written representations received from the directors as on March 31, 2015 taken on the record by the Board of Directors, none of the directors is disqualified as on that date from being appointed as a director in terms of section 164(2) of the Act.
f. With respect to other matters to be included in the Auditors report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us,
i. The Company has disclosed the impact of pending litigations on its financial statements as referred in foot note 2 to note 10 and note 21. ii) to iv) to the financial statements.
ii) The Company did not have any long-term contracts and has not entered into any derivative contracts as referred in note 39 to the financial statements. Accordingly no provision is required to be recognized in respect of material foreseeable losses under applicable laws or accounting standards.
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iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund during the year by the Company.
3. As required by section 143 (5) of the Act, we have considered the directions issued by the Comptroller and Auditor General of India, the action taken thereon and its impact on the accounts and financial statements of the Company in Annexure – B.
For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021
Sd/- (C R Deepak) Partner Membership No. 215398 Place: Bangalore Date: September 21, 2015
B K RAMADHYANI & CO. LLP Chartered Accountants
No. 68, # 4-B, Chitrapur Bhavan, 8th Main, 15th Cross, Malleswaram,
Bangalore – 560 055.
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ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING “REPORTON OTHER LEGAL AND REGULATORY REQUIREMENTS” OF OUR REPORT TOTHE MEMBERS OF KARNATAKA
STATE SEEDS CORPORATION LIMITED, BANGALORE.
1. a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. However comprehensive description of assets and their current location need to be updated in the asset records.
b. As explained to us, during the year the management has physically verified fixed assets in certain units as per a phased program of physical verification. However, pending reconciliation of assets physically verified with fixed asset register, we are unable to comment on the same.
2. a. Inventories have been physically verified during the year by the management at the end of financial year. However, in our opinion, the frequency of verification is not reasonable or adequate considering the size of the Company.
b. The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. The discrepancies noticed on verification between physical stocks and the book records were not material.
3. The company has not granted any loans to the companies covered in the register maintained under section 189 of the Act, hence clause 3(iii) of the Order is not applicable.
4. In our opinion and according to the information and explanations given to us, internal control procedures need to be improved commensurate with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and with regard to sale of goods and services owing to shortage of manpower and non-integration of books of account. During the course of our audit we have noticed that the Company is in process of reconciling the inter unit balances amounting to Rs.12,807,061/- as explained in foot note ii) b) to note 10 of the financial statements which is continued and the Company has failed to correct major weakness in the internal controls.
5. The Company has not accepted any deposits as applicable under the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other provisions of the Act and rules framed there under. Accordingly, the provisions of clause 3(v) of the said Order are not applicable.
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6. To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 148 of the Act for the products of the company. Accordingly, the provisions of clause 3(vi) of the said Order are not applicable.
7. a. According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues applicable to it with the appropriate authorities. In terms of its books of account, no undisputed statutory dues payable in respect of provident fund, employees’ state insurance, income tax, wealth tax, service tax, customs duty, excise duty, value added tax, cess and any other undisputed statutory dues were outstanding, as at March 31, 2015 for a period of more than six months from the date they became payable.
b. According to the records of the Company and according to the information and explanations given to us, there were no dues outstanding on account of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess on account of dispute except income tax which has been furnished as under:
Name of the Statute
Period Amount Involved
Forum where dispute is pending
The Income Tax Act, 1961
2010 – 11 2,563,571 Income Tax Appealate Tribunal
2011 – 12 1,391,513 The Commissioner of Income Tax (Appeals)
c. According to information and other details furnished by the Company, there were no amounts that were required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules have not been made there under.
8. The Company does not have any accumulated losses at the end of financial year and also the Company has not incurred any cash losses in respect of the year under review or in respect of the preceding financial year.
9. In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to a bank.
10. In our opinion and according to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions and hence clause 3 (x) of the Order is not applicable.
11. The Company has not taken any term loans during the year hence provisions of clause 3(ix) of the Order is not applicable.
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12. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given to us, we report that no material frauds on or by the Company during the year has been noticed or reported.
For B.K.RAMADHYANI & CO LLP Chartered Accountants Firm Registration No. 002878S/S200021
Sd/- (C R Deepak) Partner Membership No. 215398 Place: Bangalore Date: September 21, 2015
B K RAMADHYANI & CO. LLP Chartered Accountants
No. 68, # 4-B, Chitrapur Bhavan, 8th Main, 15th Cross, Malleswaram,
Bangalore – 560 055.
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Annexure – B
DIRECTIONS INDICATING THE AREAS TO BE EXAMINED BY STATUTORY AUDITORS DURING THE
COURSE OF AUDIT OF ANNUAL ACCOUNTS OF KARNATAKA STATE SEEDS CORPORATION
LIMITED FOR THE YEAR 2014-2015 ISSUED BY THE COMPTROLLER & AUDITOR GENERAL OF
INDIA UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013
Sl. No.
Areas Examined Observation / Findings
1 If the Company has been selected for
disinvestment, a complete status report in
terms of valuation of Assets (including
intangible assets and land) and Liabilities
(including committed & General Reserve)
may be examined, including the mode and
present stage of disinvestment process.
Based on the information and explanation
furnished to us by the Company, it has not
been selected for disinvestment as at
March 31, 2015.
2 To report whether there are any cases of
waiver / write off of debts / loans interest
etc., if yes, the reason thereof and the
amount involved.
Based on the information and explanation
furnished to us by the Company and on our
verification of books of accounts, the
Company has not waived or written off any
debts, loans interest etc. However, during
our audit we had observed that there were
certain old debts outstanding which has
been reported under note 35, foot note b)
of note 19 and foot note d) of the financial
statements for which no provision has been
made and treated as good of recovery. We
are unable to express any independent
opinion on the same.
3 Whether proper records are maintained for
inventories lying with third parties and
assets received as gift from Government or
other authorities.
Based on the information and explanation
furnished to us by the Company and on our
verification of books of accounts, there are
no inventories lying with third parties.
However, during the year there are no case
of assets received as gift from Government
or other authorities.
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4 A report on age wise analysis of pending
legal / arbitration cases, including the
reasons of pendency and existence /
effectiveness of a monitoring mechanism
for expenditure on all legal cases (foreign
and local) may be given.
Age-wise analysis of pending legal &
arbitration cases and pending dispute cases
are as under:
Particulars No. of cases
Less than 1 year 24
More than 1 year and less
than 2 years
Nil
More than 2 years and
less than 3 years
4
More than 3 years 81
Total 109
Reasons for their pendency is that the legal
cases entail procedural rules being adhered
to and are finally heard / disposed of by the
Court at their own turn. There exists an
effective monitoring mechanism for
expenditure on all local legal cases. An
amount of Rs.2,41,500/- has been incurred
as legal fees which is 0.02% of turnover.
SPECIFIC SUB DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013
Sl. No.
Areas Examined Observation / Findings
1 Whether the land owned by the Company is encroached, under litigation, not put to use or declared surplus. Details may be provided.
Based on the information and explanation furnished to us by the Company, there are no land owned by the Company which has been encroached, under litigation, not put to use or declared surplus. However, there are certain land used by the Company not been capitalised in the books of account as enumerated in foot note 2 to 6 of note 13 to the financial statements.
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2 Whether the stock of seeds packing /
certification materials and other items has
been taken on the basis of stock records
after adjustment of shortage / excess found
on physical verification and whether due
consideration has been given for
deterioration in the quality of old stock
which may result into overvaluation of
stock ?
The stock of seeds and other items have
been valued based on the stock records
after making necessary adjustment for
excess / shortage of stock. Further,
deteriorated material has been valued
based on realisable value. However, the
Company has not valued 86,846 quintals of
seed which are under process as the
corresponding stock has not been
accounted as enumerated in foot note 1 of
Note 16 of the Financial Statements. The
valuation of inventory of seeds on the
potency / generation of seeds has not been
independently evaluated by as it is
technical in nature.
3 Whether the Company has an effective
mechanism for disbursement for loans /
subsidies / agro inputs and agriculture
machineries to beneficiaries and recovery
thereof (loans) along with interest, if any,
from beneficiaries ?
The Company has a proper mechanism for
disbursement for loans / subsidies etc.,
except for the matter reported in foot note
2 of Note 19 of the financial statements.
4 That grants / subsidies received for
implementing various schemes are
accounted for as per the accounting
standards and utilized for intended
purposes.
The Company as per the policy consistently
followed on the receipt of subsidy is
accounted as Government Grants under
Other current liabilities. On the utilisation
of the same to deferred Government
Grants and accounted as per Accounting
Standards – 13 issued by Ministry of
Corporate affairs.
5 Whether physical verification and valuation
of standing crops / trees was done at the
end of the financial year in accordance with
the standard industry practices ?
Based on the information and explanation
received from the Company there are no
standing crops or trees that need to valued
as at March 31, 2015.
Addendum to Director’s Report
Reply to the comments / observation of the Statutory Auditor Report
Dated 21.09.2015
Refer to
Para Nos.
Replies of the Management
a)
In order to provide BT Cotton Seeds to the farmers of the State, the
Board has approved for creating provision for R&D activities for
acquisition of Bt genes for use in Bt Cotton Hybrid development.
Further Government of Karnataka has already concurred and issued
Government consent for acquisition of BT Cotton Technology and trade
in BT Cotton seeds. Accordingly Rs.297.90 Lakhs has been provided in
the accounts for the year 2011-12. Out of this an amount of Rs.3.73
lakhs utilized during the year 2014-15 for evaluation trials of new
varities of Hybrid Cotton. The necessary action is being initiated to
utilize this amount for the purpose for which it is provided.
b)
The Notional accounts of the Centre accounts referred in para, which
are carried forwarded from earlier years are reviewed and Board
approved for reconciliation of these accounts through professional
Chartered Accountants for their finalization and proper incorporation in
the books of accounts. Accordingly this assignment has been entrusted
to professional Chartered Accountants firm and their verification is
under progress.
c) Out of Rs.108.90 Lakhs outstanding from employees towards stock
shortage, short remittances, Rs.95.94 Lakhs pertains to Chintamani
Centre noticed during 2010-11. The Criminal case against Jr. Assistant
who has confessed to the defalcation of funds, civil suit for attachment
Sites and Agricultural land offered as securities, case under Negotiable
Instrument Act for dishonor of cheques are filed at Chintamani and
Bangalore courts. The said cases are under progress at various courts.
The employee has been dismissed from the service on the basis of
departmental enquiry. The incident is also under investigation by the
Criminal Investigation Department and it is under progress. The
balance amount of Rs.11.14 Lakhs is receivable from ex-employees
and Rs.1.82 Lakh is receivable from Employees of the Corporation. The
necessary suits are filed in various courts for recovery of the amount
and action is being initiated to recover the same.
d) During the year 2009-10, subsidy extended to the Seed Growers to the
extent of Rs.54.24 Lakhs at Bijapur Centre. The delayed claims are
filed with the Department of Agriculture and Rs.40.46 lakhs is received.
The necessary actions are initiated to recover balance amount of
Rs.13.78 Lakhs from the concerned official.
e) The employees of the Corporation have a facility of availing of Half Pay
Leave facility with the approval of the Management. The un availed
leave will be lapsed automatically, if it is not granted / sanctioned /
utilized. Since there is no financial committed liability, no provision has
been made in this regard.
f)
The Company has initiated steps to obtain confirmation of balances
from various trade payables, trade receivables and loans & advances.
However, it has not received the same from said parties.
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (6)(B) OF
THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF KARNATAKA STATE SEEDS
CORPORATION LTD., BANGALORE FOR THE YEAR ENDED 31 MARCH 2015.
The preparation of financial statements of Karnataka State Seeds Corporation Ltd., Bangalore for the
year ended 31 March 2015 in accordance with the financial reporting frame work prescribed under the
Companies Act, 2013 is the responsibility of the management of the Company. The statutory auditors
appointed by the Comptroller and Auditor General of India under Section 139(5) of the Companies Act,
2013 are responsible for expressing opinion on these financial statements under section 143 of the Act
based on independent audit in accordance with the standards on auditing under section 143(10) of the
Act. This is stated to have been done by them vide their Audit Report dated 21.09.2015.
I, on behalf of the Comptroller and Auditor General of India have decided not to conduct the
supplementary audit of financial statements of Karnataka State Seeds Corporation Ltd., Bangalore for
the year ended 31 March 2015 and as such have no comments to make under section 143(6)(b) of the
Act.
For and on behalf of the
Comptroller & Auditor General of India
Sd/-
(L. ANGAM CHAND SINGH)
PR. ACCOUNTANT GENERAL
(GENERAL & SOCIAL SECTOR AUDIT)
KARNATAKA, BANGALORE
BANGALORE
Date: 30 November 2015
I. EQUITY AND LIABILITIES
FQén ªÀÄvÀÄÛ ºÉÆuÉUÀ¼ÀÄ
(1) Shareholders’ funds: µÉÃgÀÄzÁgÀgÀ ºÀt
(a) Share capital µÉÃgÀÄ §AqÀªÁ¼À 3 361,24,846 360,85,190
(b) Reserves and surplus ªÀÄÄqÀÄ¥ÀÄUÀ¼ÀÄ ªÀÄvÀÄÛ ºÉZÀѼÀ 4 3274,58,987 3288,04,658
3635,83,833 3648,89,848
(2) Share application money pending allotment
ºÀAaPÉUÉ ¨ÁQ EgÀĪÀ µÉÃgÀÄ Cfð ªÉƧ®UÀÄ 15,00,084 84
15,00,084 84
(3) Non-current liabilities: ZÁ°ÛAiÀÄ®èzÀ ºÉÆuÉUÀ¼ÀÄ
(a) Government Grants ¸ÀPÁðgÀzÀ C£ÀÄzÁ£À 5 5173,45,920 5788,23,008
(b) Long term borrowings ¢ÃWÁðªÀ¢ü s¸Á®UÀ¼ÀÄ 6 - -
(c) Deferred Tax Liabilities ªÀÄÄAzÀÆrzÀ vÉjUÉ dªÁ¨ÁÝjUÀ¼ÀÄ 7 - 38,53,222
(d) Long-term provisions ¢ÃWÁðªÀ¢ü ºÀªÀtÂPÉUÀ¼ÀÄ 8 524,56,088 490,51,336
5698,02,008 6317,27,566
(4) Current liabilities: ZÁ°Û ºÉÆuÉUÀ¼ÀÄ
(a) Short-term borrowings C¯ÁàªÀ¢ü ¸Á® 9 - 100,00,000
(b) Trade payables ªÁå¥ÁgÀzÀ ¸ÀAzÁAiÀĪÁUÀ¨ÉÃPÁzÀ ªÉÆvÀÛs 10 1004,01,954 884,66,605
(c) Other current liabilities EvÀgÉ ZÁ°Û ºÉÆuÉUÀ¼ÀÄ 11 6755,71,592 5236,60,322
(d) Short-term provisions C¯ÁàªÀ¢ü ºÀªÀtÂPÉUÀ¼ÀÄ 12 73,57,015 71,14,969
7833,30,561 6292,41,896
17182,16,486 16258,59,394
II. ASSETS D¹ÛUÀ¼ÀÄ
(1) Non-current assets: ZÁ°ÛAiÀÄ®èzÀ D¹ÛUÀ¼ÀÄ
(a) Fixed assets ¹ÜgÁ¹ÛUÀ¼ÀÄ
(i) Tangible assets UÉÆÃZÀgÀ D¹ÛUÀ¼ÀÄ 13 5839,98,250 6751,61,394
(ii) Intangible assets CUÉÆÃZÀgÀ D¹ÛUÀ¼ÀÄ 13 41,571 1,22,658
(iii) Capital work-in-progress ¥ÀæUÀwAiÀÄ°ègÀĪÀ §AqÀªÁ¼À 14 2312,35,743 527,85,908
8152,75,564 7280,69,960
(b) Deferred Tax Asset ªÀÄÄAzÀÆrzÀ vÉjUÉ D¹Û 7 151,67,750 -
(c) Long term loans and advances ¢ÃWÁðªÀ¢ü ¸Á®UÀ¼ÀÄ ªÀÄvÀÄÛ ªÀÄÄAUÀqÀUÀ¼ÀÄ 15 157,00,245 134,26,390
8461,43,559 7414,96,350
(2) Current assets: ZÁ°Û D¹ÛUÀ¼ÀÄ
(a) Inventories zÁ¸ÁÛ£ÀÄUÀ¼ÀÄ 16 2391,83,893 2504,97,495
(b) Trade receivables ªÁå¥ÁgÀzÀ §gÀ¨ÉÃPÁzÀ ªÉÆvÀÛ 17 865,17,726 449,46,547
(c) Cash and bank balances £ÀUÀzÀÄ ªÀÄvÀÄÛ ¨ÁåAPï ²®ÄÌ 18 1771,45,215 4010,02,914
(d) Short-term loans and advances C¯ÁàªÀ¢ü ¸Á®UÀ¼ÀÄ ªÀÄvÀÄÛ ªÀÄÄAUÀqÀUÀ¼ÀÄ 19 2559,36,730 1864,11,055
(e) Other current assets EvÀgÉ ZÁ°Û D¹ÛUÀ¼ÀÄ 20 1132,89,363 15,05,033
8720,72,927 8843,63,044
17182,16,486 16258,59,394
Summary of significant accounting policies and other explanatory
notes forming part of the financial statemetns ¸ÀAQë¥ÀÛ ªÀĺÀvÀézÀ ¯ÉPÀÌ ¤ÃwUÀ¼ÀĪÀÄvÀÄÛ EvÀgÉ DyðPÀ ¥ÀnÖUÉ ¸ÉÃjzÀ C£ÀĸÀÆaUÀ¼À£ÀÄß £ÉÆÃrj
1,2,31
to 40
For B K Ramadhyani & Co LLP,Chartered AccountantsFirm Number: 0028785/S200021
Sd/-(C.R. Deepak)
Partner
Place: Bangalore
Date: September 21, 2015
(G.L. Kurtakoti)
(Dr. Shivamurthappa)Managing Director
(K. Gopalakrishna)
Figures as at end of Current
Reporting Period
31st March 2014(in Rs.) (gÀÆ.UÀ¼À°è)
Sd/-
In Accordance with our Report attached For and on behalf of the Board of directors of Karnataka State Seeds Corporation Limited
(I.S. Patil)Director
Particulars«ªÀgÀUÀ¼ÀÄ
Note
No.
Company SecretaryGeneral Manager (FA&MIS)
KARNATAKA STATE SEEDS CORPORATION LIMITED
Balance Sheet as at 31st March 2015 31£Éà ªÀiÁZïð 2015 gÀ CAvÀåPÉÌ EzÀÝ ¸ÀAvÀÄ®£À ¥ÀnÖ
PÀ£ÁðlPÀ gÁdå ©Ãd ¤UÀªÀÄ ¤AiÀÄ«ÄvÀ
Figures as at end of Current
Reporting Period
31st March 2015(in Rs.) (gÀÆ.UÀ¼À°è)
Sd/- Sd/-
Sd/-
I. Revenue DzÁAiÀÄ
Revenue from operations DyðPÀ ªÀåªÀºÁgÀzÀ DzÁAiÀÄ 22 15329,74,223 16382,85,679
II. Other income EvÀgÉ DzÁAiÀÄ 23 1757,58,724 367,03,697
III. Total Revenue (I+II) MlÄÖ DzÁAiÀÄ 17087,32,947 16749,89,376
IV. Expenses ªÉZÀÑUÀ¼ÀÄ
Purchases of Stock-in-Trade ªÀåªÀºÁgÀzÀ zÁ¸ÁÛ¤£À RjâUÀ¼ÀÄ 24 12808,35,188 14896,18,534
Changes in inventories of stock in trade zÁ¸ÁÛ¤£À §zÀ¯ÁªÀuÉ ºÉZÀÄÑ / PÀrªÉÄ 25 113,13,602 (1095,84,615)
Employee benefits expense ¹§âA¢UÀ¼À ¸Ë®¨sÀåUÀ¼À ªÉZÀÑ 26 1432,31,244 1333,39,630
Finance costs ºÀtPÁ¹£À ªÉZÀÑUÀ¼ÀÄ 27 1,73,369 3,85,971
Depreciation and amortization expense ¸ÀªÀPÀ½ / zÀwÛ ªÉZÀÑ 28 474,39,293 215,12,822
Other expenses EvÀgÉ ªÉZÀÑUÀ¼ÀÄ 29 2192,02,955 1127,52,544
17021,95,651 16480,24,886
V. Profit before Exceptional items and tax (III-IV)
»A¢£À ªÀµÀðzÀ «±ÉõÀ CA±ÀUÀ¼ÀÄ ªÀÄvÀÄÛ vÉjUÉ ¥ÀƪÀð ¯Á¨sÀ 65,37,296 269,64,490
VI. Exceptional items - «±ÉõÀ CA±ÀUÀ¼ÀÄ
Profit on sale of TDR's nrDgï ªÀiÁgÁlzÀ ¯Á¨sÀ - 95,75,000
VII. Profit before tax (V+IV) vÉjUÉ ¥ÀƪÀð ¯Á¨sÀ 65,37,296 365,39,490
VIII. Tax expense vÉjUÉ ªÉZÀÑ
(1) Current tax ¥Àæ¸ÀÄÛvÀ ªÀµÀðzÀ vÉjUÉ 103,00,000 120,00,000
(2) Prior years »A¢£À ªÀµÀðUÀ¼ÀÄ 1,30,960 44,46,063
(3) Deferred tax Credit ªÀÄÄAzÀÆrzÀ vÉjUÉ PÉærmï (190,20,972) 38,53,222
(85,90,012) 202,99,285
IX. Profit for the year (VII - VIII) ªÁ¶ðPÀ ¯Á¨sÀ 151,27,308 162,40,205
X. Earnings per equity share : ¥Àæw FQén µÉÃj£À UÀ½PÉ 30 41.69 44.76
(a) Basic ªÀÄÆ® 40.10 43.05
(b) Diluted w½UÉÆAqÀ
Summary of significant accounting policies and other explanatory
notes forming part of the financial statemetns ¸ÀAQë¥ÀÛ ªÀĺÀvÀézÀ ¯ÉPÀÌ ¤ÃwUÀ¼ÀĪÀÄvÀÄÛ EvÀgÉ DyðPÀ ¥ÀnÖUÉ ¸ÉÃjzÀ C£ÀĸÀÆaUÀ¼À£ÀÄß £ÉÆÃrj
1,2,31
to 40
For B K Ramadhyani & Co LLP,
Chartered Accountants
Firm Number: 0028785/S200021
Sd/-
(C.R. Deepak)
Partner
Place: Bangalore
Date: September 21, 2015
Sd/- Sd/-
Figures as at end of Current
Reporting Period
31st March 2015
(in Rs.) (gÀÆ.UÀ¼À°è)
Figures as at end of Current
Reporting Period
31st March 2014
(in Rs.) (gÀÆ.UÀ¼À°è)
(Dr. Shivamurthappa)
Sd/- Sd/-
General Manager (FA&MIS)
Managing Director
(K. Gopalakrishna)
KARNATAKA STATE SEEDS CORPORATION LIMITED
PÀ£ÁðlPÀ gÁdå ©Ãd ¤UÀªÀÄ ¤AiÀÄ«ÄvÀ
Statement of Profit and loss for the year ended 31st March 2015 31£Éà ªÀiÁZïð 2015 PÉÌ PÉÆ£ÉUÉÆAqÀ ªÀµÀðzÀ ¯Á¨sÀ-£ÀµÀÖzÀ vÀSÉÛB
Particulars«ªÀgÀUÀ¼ÀÄ
Note
No.
Company Secretary
In Accordance with our Report attached For and on behalf of the Board of directors of Karnataka State Seeds Corporation Limited
(I.S. Patil)
Director
(G.L. Kurtakoti)
Cash flow from Operating Activities
PÁAiÀiÁðZÀgÀuɬÄAzÀ §AzÀ £ÀUÀzÀÄ
Profit before tax vÉjUÉ ¥ÀƪÀð ¯Á¨sÀ 65,37,296 365,39,490
Adjustments for ºÉÆAzÁtÂPÉUÀ¼ÀÄ
a) Depreciation and Amortization Expenses ¸ÀªÀPÀ½ ªÀÄvÀÄÛ zÀwÛ ªÉZÀÑUÀ¼ÀÄ 201,14,935 95,42,697
b) Interest expense §rØAiÀÄ ªÉZÀÑ 1,73,369 3,60,971 c) (Profit) / loss on sale of fixed assets
¹ÜgÁ¹ÛAiÀÄ ªÀiÁgÁlzÀ (¯Á¨sÀ) / £ÀµÀÖ - (93,62,899)
d) Interest income §rØAiÀÄ DzÁAiÀÄ (123,83,114) (115,18,583)
e) Provision (net) ºÀªÀtÂPÉ (¤ªÀé¼À) 36,26,868 (90,66,374)
115,32,058 (200,44,188)
180,69,354 164,95,302
(Increase) / decrease in inventories zÁ¸ÁÛ¤£À°è (ºÉZÀѼÀ) / PÀrvÀ 113,13,602 (1095,84,615)
(Increase) / decrease in trade receivablesªÁå¥ÁgÀ¢AzÀ §gÀ¨ÉÃPÁzÀ ªÉÆvÀÛ (ºÉZÀѼÀ) / PÀrvÀ (415,71,179) 277,21,959
(Increase) / decrease in loans and advancesC¯ÁàªÀ¢ü ¸Á® ªÀÄvÀÄÛ ªÀÄÄAUÀqÀUÀ¼À°è (ºÉZÀѼÀ) / PÀrvÀ (698,59,825) 423,28,282
(Increase) / decrease in other current assetsEvÀgÉ ZÁ°Û D¹ÛUÀ¼À°è (ºÉZÀѼÀ) / PÀrvÀ (1094,22,228) 83,24,991
Increase / (decrease) in trade PayableªÁå¥ÁgÀzÀ ¸ÀAzÁAiÀĪÁUÀ¨ÉÃPÁzÀ ªÉÆvÀÛ (ºÉZÀѼÀ) / PÀrvÀ 119,35,349 (392,84,467)
Increase / (decrease) in other liabilitiesEvÀgÉ ºÉÆuÉUÀ¼À°è (ºÉZÀѼÀ) / PÀrvÀ 1533,15,489 1881,76,109
(442,88,792) 1176,82,259
(262,19,438) 1341,77,561
Income tax paid¤ªÀé¼À DzÁAiÀÄ vÉjUÉ ¥ÁªÀw¹zÀÄÝ 104,60,665 284,85,150
Net cash from operating activitiesPÁAiÀiÁðZÀgÀuÉ ZÀlĪÀnPÉUÀ¼À ¤ªÀé¼À £ÀUÀzÀÄ (366,80,103) 1056,92,411
Cash flow from Investing ActivitiesºÀÆrPÉAiÀÄ ZÀlĪÀnPÉUÀ¼À £ÀUÀzÀÄ ºÀjªÀÅ
Purchase of Property, Plant & EquipmentRjâ D¹ÛUÀ¼ÀÄ, AiÀÄAvÉÆæÃ¥ÀPÀgÀtUÀ¼ÀÄ (1862,90,500) (665,89,866)
Proceeds from sale of Property, Plant & Equipment ¯Á¨sÀ D¹ÛUÀ¼À ªÀiÁgÁl, AiÀÄAvÉÆæÃ¥ÀPÀgÀtUÀ¼ÀÄ - 97,27,000
(Increase) / decrease in value of Fixed Deposits exceeding 12 months
maturity 12 wAUÀ¼À CªÀ¢ü «ÄÃjzÀ ¤²ÑvÀ oÉêÀtÂAiÀÄ°è (ºÉZÀѼÀ) / PÀrvÀ (61,80,000) 1314,70,531
Interest received ¥ÀqÉzÀ §rØ 100,21,012 115,18,583
Net cash flow from investing activity¤ªÀé¼À £ÀUÀzÀÄ PÁAiÀiÁðZÀgÀuÉAiÀÄ ZÀlĪÀnPÉUÀ½AzÀ ºÀjPÉ (1824,49,488) 861,26,248
(in Rs.) (gÀÆ.UÀ¼À°è)
For the year ended
31st March 2015
(in Rs.) (gÀÆ.UÀ¼À°è)
KARNATAKA STATE SEEDS CORPORATION LIMITED
Cash Flow Statement for the year ended 31st March 2015
Particulars «ªÀgÀUÀ¼ÀÄ
31£Éà ªÀiÁZïð 2015 PÉÌ PÉÆ£ÉUÉÆAqÀ ªÀµÀðzÀ £ÀUÀzÀÄ ZÀ¯ÁªÀuÁ ¥ÀnÖ
PÀ£ÁðlPÀ gÁdå ©Ãd ¤UÀªÀÄ ¤AiÀÄ«ÄvÀ
For the year ended
31st March 2014
Cash flow from Financing ActivitiesºÀtPÁ¹£À ZÀlĪÀnPÉUÀ½AzÀ £ÀUÀzÀÄ ºÀjªÀÅ
Repayment of share application money pending allotment µÉÃgÀÄ ºÀAaPÉAiÀiÁUÀzÀ µÉÃgÀÄ ºÀt »A¢gÀÄV¹gÀĪÀÅzÀÄ (17,500) -
Calls in arrears received ¨ÁQ µÉÃgÀÄ ºÀt ¥ÀqÉ¢gÀĪÀÅzÀÄ 39,656 4,00,621
Increase / (decrease) in short term borrowingsC¯ÁàªÀ¢ü ¸Á®UÀ¼À (ºÉZÀѼÀ) / PÀrvÀ (100,00,000) 100,00,000
Grant for capital project §AqÀªÁ¼À AiÉÆÃd£ÉUÀ½UÁV C£ÀÄzÁ£ÀUÀ¼ÀÄ 34,46,344 424,36,038
Interest paid ¥ÁªÀw¹gÀĪÀ §rØ (60,088) (3,60,971)
Dividends Paid (Including Dividend Tax)¯Á¨sÁA±ÀzÀ ¥ÁªÀw (r«qÉAqï vÉjUÉ M¼ÀUÉÆAqÀÄ) (43,16,520) (58,27,539)
Net Cash from financing activityºÀtPÁ¹£À ZÀlĪÀnPÉUÀ½AzÀ ¤ªÀé¼À £ÀUÀzÀÄ (109,08,108) 466,48,149
Net increase / (decrease) in cash and cash equivalents£ÀUÀzÀÄ / £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀ ¤ªÀé¼À ºÉZÀѼÀ / (PÀrvÀ) (2300,37,699) 2384,66,808
Cash and cash equivalents at the beginning of the yearªÀµÀðzÀ ¥ÁægÀA¨sÀzÀ°è£À £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀzÀÄÝ 3230,02,914 845,36,106
Cash and cash equivalents at the end of the yearªÀµÀðzÀ CAvÀåzÀ°è£À £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀzÀÄÝ 929,65,215 3230,02,914
Cash on hand and bank balances £ÀUÀzÀÄ ²®ÄÌ ªÀÄvÀÄÛ ¨ÁåAPÀÄUÀ¼À ²®ÄÌ 1771,45,215 4010,02,914
Less: Deposit accounts exceeding original maturity of 12 monthsPÀ¼É¢zÀÄÝ: 12 wAUÀ¼ÀÄUÀ¼À ªÀÄÆ® CªÀ¢ü ªÀÄÄV¢gÀĪÀ oÉêÀt ¯ÉPÀÌUÀ¼ÀÄ 841,80,000 780,00,000
Cash and cash equivalents at the beginning of the yearªÀµÀðzÀ ¥ÁægÀA¨sÀzÀ°è£À £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀÄ£ÁzÀzÀÄÝ 929,65,215 3230,02,914
Cash and Cash equivalents as restated
¥ÀÄ£ÀB «ªÀj¹gÀĪÀ £ÀUÀzÀÄ ²®ÄÌ ªÀÄvÀÄÛ ¨ÁåAPÀÄUÀ¼À ²®ÄÌ
For B K Ramadhyani & Co LLP,
Chartered Accountants
Firm Number: 0028785/S200021
Sd/-
(C.R. Deepak)
Partner
Place: Bangalore
Date: September 21, 2015
Managing Director
(K. Gopalakrishna)
General Manager (FA&MIS)
Director
(G.L. Kurtakoti)
Company Secretary
Sd/- Sd/-
Cash and Cash equivalents consist of Cash on hand and balances with banks. Cash and Cash equivalents included in the statements of cash flow comprise
the folloint amount in the Balance sheet;£ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀĪÁVgÀĪÀÅzÀÄ CAzÀgÉ £ÀUÀzÀÄ ²®ÄÌ ºÁUÀÆ ¨ÁåAPÀÄUÀ¼À°ègÀĪÀ ²®ÄÌ. £ÀUÀzÀÄ ZÀ¯ÁªÀuÉAiÀÄ°ègÀĪÀ £ÀUÀzÀÄ ªÀÄvÀÄÛ £ÀUÀ¢UÉ ¸ÀªÀĪÁVgÀĪÀÅzÀÄ ¸ÀAvÀÄ®£À¥ÀnÖAiÀÄ°è F PɼÀPÀAqÀAwgÀÄvÀÛªÉ;
(Dr. Shivamurthappa) (I.S. Patil)
In Accordance with our Report attached For and on behalf of the Board of Directors of Karnataka State Seeds Corporation Limited
Sd/- Sd/-
KARNATAKA STATE SEEDS CORPORATION LIMITED "Beej Bhavan", Bellary Road, Hebbal, Bengaluru - 560 024.
NOTES TO FINANCIAL STATEMENTS 1 BACKGROUND:
Karnataka State Seeds Corporation Limited ("the Company") is a Government Company registered under Indian Companies Act, 1956, with the main object of providing the most vital input ‘SEEDS’ required by and for the benefit of the farmers. The Company is aiming to emerge as a leader in the State of Karnataka in the line of activity chosen by it, and is in pursuit of excellence, on a continuing and ongoing basis, for improvement in quality of seeds and in providing effective distribution service to farmers with an eye on the right product, right time, and the right place of supply.
2 SIGNIFICANT ACCOUNTING POLICIES: 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
These financial statements are prepared under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act") . All income and expenditure, having a material bearing on financial statements are recognized on accrual basis.
2.2 USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management of the Company to make estimates and assumptions that affect certain reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Accordingly, future results could differ due to changes in these estimates and the difference between the actual result and the estimate are recognized in the period in which the results are known / materialize.
2.3 INVENTORIES: I. Stocks of seeds, packing materials and stores (chemicals) are
valued at cost on First-in-First out Method ("FIFO") or Net Realizable Value ("NRV") whichever is less.
II. Infested Stock/Germination failed stock of seeds is valued at NRV. III. The quantity of chemicals, identified as chemicals validity in
respect of which has expired, is treated as used and the relative cost is recognized as expense in the Statement of Profit and Loss.
2.4 CASHFLOW STATEMENT: Cash flows are reported using the indirect method, whereby profit or loss before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and for any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.5 DEPRECIATION: I. Depreciation on fixed assets are charged on the straight line
method based on the useful life of the asset and manner specified in Schedule II to the Act, except for the following assets:
Sl. No.
Asset Category Useful life
a) Screens in plant & machinery 3 years
b) Sprinklers in plant & machinery
3 years
c) Pallets in plant & machinery 3 years
II. Depreciation on assets bought / sold during the year is charged at
the applicable rates on a prorata basis from the date it is put to use or date it is sold.
III. Assets costing less than Rs.5,000 each are fully depreciated in the year of capitalisation.
2.6 REVENUE RECOGNITION: I. Revenue in respect of sales are recognised, net of returns and
trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Revenue does not include sales tax and value added tax.
II. Interest income is recognized on time proportion basis. III. Reimbursement from government for various schemes like seed
village schemes, seed bank scheme, seed risk fund are accounted on receipt basis.
2.7 FIXED ASSETS:
I. Tangible Assets: a. Fixed Assets are capitalized on the date the same are being put to
use b. Fixed Assets are valued at cost inclusive of freight, taxes and
incidental expenses relating to acquisition, installation, erection, commissioning and putting to use.
c. Cost incurred on assets under construction and not ready for use as at balance sheet date are disclosed under capital work in progress.
II. Intangible Assets: Intangible assets are accounted at cost of acquisition less amortisation.
2.8 RESEARCH AND DEVELOPMENT EXPENSES:
Expenditure pertaining to research is recognised as expense and charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product’s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.
2.9 FOREIGN CURRENCY TRANSACTIONS: I. Foreign currency transactions are translated into rupees at the
exchange rate prevailing on the date of the transaction.
II. Monetary foreign currency assets and liabilities outstanding as at the year-end are restated at the exchange rates prevailing as at the close of the financial year. All exchange differences are accounted for in the statement of profit and loss.
2.10 GOVERNMENT GRANTS:
I. Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received.
II. Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire depreciable fixed assets are treated as Deferred Income (Deferred Grant Account). The deferred grant is recognised as income over the useful life of a depreciable asset.
III. Government grants in the nature of promoters' contribution like
investment subsidy, where no repayment is ordinarily expected in respect thereof, are treated as capital reserve. Government grants in the form of non-monetary assets, given at a concessional rate, are recorded on the basis of their acquisition cost. In case the non-monetary asset is given free of cost, the grant is recorded at a nominal value.
IV. Other grants and subsidies which are of revenue nature, are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis.
2.11 EMPLOYEE BENEFITS: I. Short term Employee Benefits:
Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, bonus, leave travel allowance etc. are recognized in the period in which the employee renders the related service.
II. Post Employment Benefits: a. Defined contribution Plans:
The Company has contributed to provident fund and superannuation fund which are defined contribution plans. The contributions paid/ payable under the scheme is recognized during the year in which employee renders the related service.
b. Defined Benefit Plans: Employees’ gratuity and leave encashment are defined benefit plans. The Company has arrangement with Life Insurance Corporation of India ("LIC") and United India Insurance Contribution ("UIIC"), to administer Gratuity Scheme, Earned Leave Encashment Scheme, and personal accident scheme. The Liability is determined by LIC / UIIC based on actuarial valuation and the premium as determined by LIC / UIIC is recognised as employee benefit expense towards Defined Benefit Plans.
2.12 BORROWING COSTS: Interest and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized up to the date such assets are ready for use / intended to use. Other interest and borrowing costs are charged to the Statement of Profit & Loss.
2.13 ACCOUNTING FOR LEASES: Assets subject to operating lease are included in Fixed Assets. Lease income is recognized in Profit and Loss account on a straight line basis over lease term. Costs including depreciation are recognized as an expense in the profit and loss account. Initial direct costs such as legal costs, brokerage costs etc are recognized immediately in the profit and loss account as and when incurred.
2.14 TAXES ON INCOME:
Provision for current tax for the year is after taking cognizance of excess / short provision in prior years. Deferred tax assets/liability is recognized, subject to consideration of prudence, on timing differences.
2.15 IMPAIRMENT OF ASSETS: An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss, in the year in which an asset is identified as impaired.
2.16 PROVISIONS & CONTINGENT LIABILITIES: A provision is recognized when the Company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Financial effect of contingent liabilities is disclosed based on information available upto the date on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.
Particulars
Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Number Rs. Number Rs.
3 Share Capital:
Authorized:
Equity shares of Rs.100/- each
5,00,000
5,00,00,000 5,00,000
5,00,00,000
5,00,00,000
5,00,00,000
Issued:
Equity shares of Rs.100/- each
At the beginning of the year
4,50,000
4,50,00,000 4,50,000
4,50,00,000
At the close of the year
4,50,000
4,50,00,000 4,50,000
4,50,00,000
Subscribed fully paid up:
Equity shares of Rs.100/- each
At the beginning of the year
3,59,710
3,59,71,000 3,59,710
3,59,71,000
Transferred from partly paid shares
570 57,000 - -
At the close of the year
3,60,280
3,60,28,000 3,59,710
3,59,71,000
Subscribed but not fully paid up:
Equity shares of Rs.100/- each
At the beginning of the year
3,120 3,12,000 3,120
3,12,000
Transferred to fully paid up shares
570 57,000 - -
At the close of the year
2,550 2,55,000 3,120
3,12,000
Less: Calls in arrears
By others
1,58,154
1,97,810
3,62,830
3,61,24,846 3,62,830
3,60,85,190
Total
3,61,24,846
3,60,85,190
Foot Notes:
I. Equity Shares:
a) The Company has only one class of equity shares having a par value of Rs 100/- each.
Each holder of equity shares is entitled to one vote per share. In the event of
liquidation of the Company, the holders of the equity shares will be entitled to receive
the remaining assets of the Company, after distribution of all preferential amounts.
The distribution will be in proportion to the equity shares held by the shareholder.
b) Particulars of equity share
holders holding more than 5%
of the total number of equity
share capital:
Percentage No of
shares
Percentage No of
shares
Government of Karnataka 39.44% 1,43,100 39.44% 1,43,100
National Seeds Corporation
Limited
17.15% 62,230 17.15% 62,230
c) Shares reserved under contracts (MOA)
Particulars As at March 31, 2015
No . of shares
As at March 31, 2014
No . of shares
Government of Karnataka
14,400
14,400
National Seed Corporation Limited
72,770
72,770
(Wholly owned by Government of India)
d) Fully paid up equity shares include 8,100 equity shares allotted during the year
2009 - 2010 to Government of Karnataka without payment being received in
cash.
Particulars Figures as at end of current reporting
period
Figures as at end of previous
reporting period
31st March 2015 31st March 2014
Rs. Rs.
4 Reserves & Surplus: i) Capital Reserve:
As at the beginning of the year 5,65,99,481
5,65,99,481
As at the end of the year 5,65,99,481
5,65,99,481
ii) General Reserve:
As at the beginning of the year 27,22,05,177 27,22,05,177
Less:
Incremental depreciation in terms of Schedule II to the Act, of assets where remaining useful life is Nil as on April 1, 2014 4,97,35,603 -
Add:
Withdrawn to the extent of depreciation 3,75,99,074
As at the end of the year 26,00,68,648
27,22,05,177
vi) Surplus i.e. balance in Statement of Profit & Loss
As at the beginning of the year - -
Add:
Transferred from Statement of Profit & Loss 1,51,27,308 1,62,40,205
1,51,27,308
1,62,40,205
Less:
Transferred to general reserve -
1,19,23,685
Proposed dividend on equity shares 36,02,900
35,97,100
Provision for dividend distribution tax 7,33,550
7,19,420
As at the end of the year 1,07,90,858
-
Total 32,74,58,987 32,88,04,658
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
5 Government Grants
Deferred Government Grants:
As at the beginning of the year
57,88,23,008 54,83,57,095
Received during the year
34,46,344 4,19,70,125
Withdrawn to the extent of depreciation
6,49,23,432 1,15,04,212
As at the end of the year
51,73,45,920 57,88,23,008
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
6 Long term Borrowings
Un secured Loans:
Term Loans
- from Government of Karnataka ("GOK")
83,000
15,83,000
- from Department of Horticulture ("DOH")
3,00,000
3,00,000
3,83,000
18,83,000
Less: Current Maturities
3,83,000
18,83,000
-
-
Total long term borrowings
-
-
Additional Information:
a. Terms of repayment of term loans and others:
(i) The Company has defaulted in repaying the loan to GOK from 1993.
However, the Company has submitted the proposal and requested to
convert the principal to equity and waive the accrued interest. However,
during the year the Company has obtained the approval from GOK to
convert Rs.1,500,000/- into equity, which has been shown as share
application money pending allotment as at the end of the year.
(ii) The Company has defaulted in repaying the loan to DOH from 1980.
However, company has requested the Department of Horticulture to setoff
the loan for the losses incurred by the company in Potato seed transactions
during 1979 -80 and 1980-81.
b. Rate of Interest:
(i) The Company has made provision for interest on loan from GOK at the rate of
10.25%
(ii) The Company has made provision for interest on loan from DOH at the rate of
6%
c. The Company has defaulted in making the payment of interest to Government of
Karnataka Rs.1,12,38,430/- (As at March 31, 2014 Rs.1,11,43,149/-) and to
Department of Horticulture Rs.647,260/- (As at March 31, 2014 Rs.6,29,260/-).
Particulars Figures as at end of current
reporting period
Figures as at end of previous
reporting period
31st March 2015 31st March 2014 Rs. Rs.
7 Deferred tax liability/(asset) (I) Deferred tax liability:
- on account of depreciation
37,83,732
2,07,51,831
37,83,732
2,07,51,831
(II) Deferred tax asset:
- on account of Provisions
1,73,43,556
1,59,14,706 - on account of timing difference
on recognition of expenses
15,81,077
9,05,160 - on account of disallowance
u/s 40(ia)
26,849
78,743
1,89,51,482
1,68,98,609
Net deferred tax liability/(asset)
(1,51,67,750)
38,53,222
Particulars
Figures as at end of current
reporting period 31st March 2015
Rs.
Figures as at end of previous
reporting period 31st March 2014
Rs. 8 Long term Provisions:
a) Research and Development activities
2,94,16,615
2,97,90,300
b) Compensation fund/ warranty
2,30,39,473
1,92,61,036
5,24,56,088 4,90,51,336
Foot Note:
a) The Company has created Provision for Research & Development
activities in order to carry out R & D activities and acquire new variety of
genes. The Provision has been created in year 2011 - 12.
b) The Company is creating 0.25% of turnover of seeds as compensation
fund/ warranty in order to meet the requirement of outflow of funds for
possible claims arising for failure of seeds.
Particulars Figures as at end of current
reporting period
Figures as at end of previous reporting
period 31st March 2015 31st March 2014
Rs. Rs.
9 Short term borrowings:
Secured loans:
- Loans repayable on demand -
1,00,00,000
-
1,00,00,000
Additional information:
1) Details of security for secured loans:
Secured against stock and book debts of the Company
2) Loan payable on demand was guaranteed by the Government of Karnataka
3) The above loan carries an interest rate of 9.70% p.a.
Particulars Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014 Rs. Rs.
10 Trade Payables
i) Others
10,04,01,954
8,84,66,605
10,04,01,954
8,84,66,605
Foot Note:
1. The Company has initiated the process of obtaining confirmation from
suppliers regarding their registration under the Micro, Small and Medium
Enterprises Development Act, 2006. The suppliers are not registered wherever
confirmations are received and in other cases, the Company is not aware of
their registration status. Hence, information relating to outstanding balances
or interest due is not disclosed as it is not determinable.
2. During the financial year 2010 - 11, the Company had procured Blackgram TAU
- 1 of 364.60 quintals and Cowpea C - 152 of 267.95 quintals of certified seeds
of Rs.39,76,821/- from M/s. Varada Seeds, Haveri. Since there were filed
complaints from the farmers of Gulbarga & Bidar, at the instance of
Department of Agriculture, the Company has paid Rs.15,13,500 as
compensation to the farmers through Joint Director of Agriculture, Gulbarga &
Bidar. The Company has lodged a police compliant against M/s. Varada Seeds
at Sanjaynagar Police Station at Bangalore and the same has been transferred
to Haveri police station. Further, during the year based on the Order of the
Senior Civil Judge, Haveri who has directed the parties to proceed under the
Arbitration and Conciliation Act, 1996 and accordingly the Company has issued
legal notice to the Party. The accounts of the said party is under reconciliation
and finalisation.
Particulars Figures as at end of current
reporting period
Figures as at end of previous
reporting period
31st March 2015 31st March 2014
Rs. Rs.
11 Other current liabilities:
a) Interest accrued and due
1,18,85,690
1,17,72,409
b)
Unpaid dividends
32,55,671 24,72,006
c)
Share application money pending allotment
11,33,632
11,51,132
d)
Current Maturities of Long Term Liabilities
3,83,000
18,83,000
e)
Advance from customers
1,74,36,890
8,79,944
f)
Other Liabilities
15,82,25,197
6,17,24,107
g)
Government Grants
- Grant under National Seed Reserve 1,05,00,000 -
- Grants for Infrastructure development
26,18,94,120 18,86,94,120
- Other Grants
10,63,03,561
14,70,08,697
- Seed Bank Scheme
49,88,900
49,88,900
- NFSM subsidy
2,97,72,970
2,97,03,371
- Other subsidy
2,50,07,944
3,73,84,306
- Other Government funds
1,00,78,654
1,00,78,654 h)
Deposits from dealers and customers
2,94,61,469
2,40,53,831
i)
Statutory liabilities
52,43,894
18,65,845
67,55,71,592
52,36,60,322
Foot note:
I. Unpaid and unclaimed dividends include, dividends payable to grower
shareholders for Financial Year 2007 - 2008 to Financial Year 2013 - 2014. The
Company does not maintain separate bank accounts for unpaid dividend
accounts at centres amounting to Rs.10,35,015/- (as at March 31, 2014
Rs.7,73,420/-) as stipulated in section 124 (1) of the Companies Act, 2013.
However, the separate unpaid bank account maintained at head office.
Further, the said amount is under reconciliation to ascertain share holder wise
and year wise balance. The Company is also in the process of identifying the
specific parties to whom the dividend is payable.
II. Other current liabilities Include:
a) An amount of Rs.18,59,687/-payable to Department of Agriculture
outstanding for more than 5 years.
b) An amount of Rs.1,28,07,061/- being centre account carried forward from
previous year which is under reconciliation. Further, un reconciled
difference of head office account amounting to Rs.1,48,90,848/- has been
written back to statement of profit and loss.
c) An amount of Rs.1,34,60,698/- towards discount coupon for the financial
year 2010 - 11 to financial 2014 - 15. During the year the Company has
written back an amount of Rs.82,23,519/- to statement of profit & loss
pertaining to financial year earlier to 2009 - 10.
III. Other Government Funds include, funds received from Government of Karnataka under old schemes consists of following:
a)
GOK (Cotton Payable)
54,28,507
54,28,507
b) G O K (Share Holders)
22,45,582
22,45,582
c)
G O K ( VLC - I & II )
24,04,565
24,04,565
IV. Grants under infrastructure development schemes
Particulars
Opening balance
Grants received
during the year
Grants utilized
during the year
Closing balance
a. Grants for reduction of ADM and PER
21,91,000
-
-
21,91,000
(50,00,000)
-
(28,09,000)
(21,91,000)
b. Grant under Rashtriya Krishi Vikasa Yojana (RKVY) for construction of godowns
17,25,00,001
8,00,00,000
68,00,000
24,57,00,001
(3,28,62,636)
(17,25,00,000)
(3,28,62,635)
(17,25,00,001)
c. Grant for establishment of godowns under Seed Bank Scheme
1,13,95,595
-
-
1,13,95,595
(21,31,903)
(92,63,692)
-
(1,13,95,595)
d. Grant for construction of Seed Godown for Belgavi centre under ISOPAM
26,07,524
-
-
26,07,524
(50,00,000)
-
(23,92,476)
(26,07,524)
Particulars Figures as at end of current
reporting period
Figures as at end of previous
reporting period
31st March 2015 31st March 2014
Rs. Rs.
12 Short term provisions:
a) Employee benefits
30,20,565
27,98,449
b) Proposed dividend (including dividend distribution tax)
43,36,450
43,16,520
73,57,015
71,14,969
13. Fixed Assets:
Particulars GROSS BLOCK (AT COST) DEPRECIATION NET BLOCK As at April 1,
2014 Additions for
the year Deduction
s/ adjustments during the year
As at March 31, 2015
As at April 1, 2014
For the period
To be adjusted to
reserves
Deductions
/ adjustme
nts
As at March 31, 2015
As at March 31, 2015
As at March 31, 2014
Tangible Assets – Own Assets
Land (refer foot note 1 to 6
below)
2,67,98,160
2,67,98,160
-
2,67,98,160
2,67,98,160
Buildings
55,62,73,753
4,23,483
55,66,97,236
4,91,90,198
2,82,17,092
4,31,86,398
12,05,93,688
43,61,03,548
50,70,83,555
Plant & Machinery
12,98,27,284
34,18,200
13,32,45,484
4,70,65,872
97,00,929
34,66,281
6,02,33,082
7,30,12,402
8,27,61,412
Electrical installation
3,03,19,114
3,03,19,114
83,34,928
39,69,267
77,740
1,23,81,935
1,79,37,179
2,19,84,186
Office equipment
1,07,39,665
1,32,190
1,08,71,855
66,32,235
12,50,972
18,67,537
97,50,744
11,21,111
41,07,430
Computers
98,00,776
4,81,820
1,02,82,596
86,38,928
3,51,308
7,87,363
97,77,599
5,04,997
11,61,848
Furniture & Fixtures
76,02,840
14,17,642
90,20,482
55,15,391
3,88,581
46,764
59,50,736
30,69,746
20,87,449
Motor Vehicles
1,52,36,832
1,52,36,832
91,81,244
27,27,655
1,19,08,899
33,27,933
60,55,588
Assets taken on finance lease
Land (refer foot note 7 below)
67,36,318
67,36,318
-
-
67,36,318
67,36,318
Buildings
1,69,33,950
1,69,33,950
5,48,502
6,95,087
3,03,505
15,47,094
1,53,86,856
1,63,85,448
81,02,68,692
58,73,335
-
81,61,42,027
13,51,07,298
4,73,00,891
4,97,35,588
-
23,21,43,777
58,39,98,250
67,51,61,394
Intangible assets
-
Computer Software
9,67,728
57,330
10,25,058
8,45,070
1,38,402
15
9,83,487
41,571
1,22,658
9,67,728
57,330
-
10,25,058
8,45,070
1,38,402
15
-
9,83,487
41,571
1,22,658
TOTAL
81,12,36,420
59,30,665
-
81,71,67,085
13,59,52,368
4,74,39,293
4,97,35,603
-
23,31,27,264
58,40,39,821
67,52,84,052
(76,59,97,388)
(4,62,28,151)
(9,89,120)
(81,12,36,419)
(11,50,64,565)
(2,15,12,822) -
(6,25,019)
(13,59,52,368)
Additional information:
1) Freehold land includes Rs.2,00,00,000/- in respect of land acquired from the
University of Agricultural Sciences in the year 2011 - 12, has been recognized as asset
based on the possession, even though the transfer of title deeds and registration is
pending as at the end of the year.
2) Land, Building and certain plant & machinery at Davanagere, Dharwar, Sindanur,
Gulbarga and Bagalkot have been transferred by Department of Agriculture,
Government of Karnataka have been capitalised in the respective asset accounts.
The Company has possession of these assets also, pending registration amounting to
Rs.18,59,687/- (as at March 31, 2014 Rs.18,59,687/-). The Company has charged
depreciation on the said assets.
3) Land at Raichur transferred by University of Agricultural Sciences, and lands at Bhalki
transferred by Department of Agriculture, have been in possession of the Company
for which title deeds are not held in Company's name. These lands have not been
recognised as assets in the books of the Company pending a determination and
payment of consideration.
4) Land and Building at Kolar transferred by Karnataka Agro Industries Corporation
Limited ("KAIC") at an agreed value of Rs.7,00,000 is in the possession of the
Company, pending registration and the Company has not capitalised in the books.
5) Government of Karnataka in its order no.KRU/THOE/136/KRVUE 2006 Dated 19th
June, 2006 has transferred Agricultural Development Centre, Dharwad to the
Company on a 25 Year Operating Lease basis for the establishment of Varietal
Research & Development Centre at Dharwad. The Centre has commenced its R&D
Activities.
6) The Company has acquired 2 acres of land at Chikmagalur from Department of
Agriculture on lease for a period of 25 years, at a lease rent of Rs.40,000/- per year.
The Company is in the possession of land since 25.03.2011. However, this land has
not been capitalised in the books of account.
7) The Company has taken Land on lease from KIADB. On expiry of lease period,
payment of balance consideration if any, and execution of sale deed, the relevant
title will pass to the Company.
8) During the year the Company has changed the useful life of the asset as per Schedule
II to the Companies Act, 2013.
9) Fixed assets have been recasted during the year
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
14 Capital work in progress:
i) Building under Construction
23,12,35,743
5,27,85,908
23,12,35,743
5,27,85,908
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
15 Long term loans and advances:
(Unsecured, considered good)
i) Capital advances
19,10,000
-
ii)
Advance payment of Tax (net of Provisions)
1,16,97,053
1,16,67,348
iii) Security Deposit
13,55,413
10,21,263
iv) Court deposit
7,37,779
7,37,779
1,57,00,245
1,34,26,390
Particulars Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
16 Inventories:
i) Seeds
18,17,20,888
22,48,29,655
ii) Chemicals
49,65,527
44,78,095
iii) Packing Materials & Tarpaulins
5,24,97,478
2,11,89,745
23,91,83,893
25,04,97,495
Note:
1. The Company has not valued 86846 quintals (as at March 31, 2014: 65,586 quintals)
of processed stock of seeds held in custody at different processing units, since
purchases are accounted by the Company only on completion of certification process.
2. Under Seed Bank Scheme, the Company has received Rs.12,05,000/- during financial
year 1999 - 2000 and Rs.37,83,900 during financial year 2000 - 2001 from Government
of India as Seed Revolving Fund for maintenance of seeds under Seed Bank Scheme.
These amounts has been reported under Government Grants under other current
liabilities. Closing stock includes 16800 quintals (as at March 31, 2014: 15,850
quintals) of certified seeds and 200 quintals (as at March 31, 2014: 200 quintals) of
foundation seeds held under Seed Bank scheme.
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
17 Trade receivables:
i) Trade receivables exceeding six months
2,68,33,244 1,35,25,872
ii) others
6,01,06,231 3,18,42,424
8,69,39,475 4,53,68,296
Less: Provision for doubtful debts
4,21,749 4,21,749
8,65,17,726 4,49,46,547
Additional information:
1) Breakup of above:
i) Secured, considered good
- -
ii) Unsecured, considered good
8,65,17,726 4,49,46,547
iii) Doubtful
4,21,749 4,21,749
Total
8,69,39,475 4,53,68,296
Less:
Provision for doubtful debts
4,21,749 4,21,749
8,65,17,726 4,49,46,547
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
18 Cash and bank balances:
a) Cash and cash equivalents:
i) Balances with banks
- in deposit accounts not exceeding 3 months
-
65,00,000
- in other accounts
9,02,52,598
31,43,35,769
- in unpaid dividend accounts
23,48,651
18,27,676
ii) Cash on hand
3,53,628
3,24,368
iii) Stamps on hand
10,338
15,101
9,29,65,215
32,30,02,914
b) Other bank balances:
Deposit accounts exceeding original maturity of 12 months
8,41,80,000
7,80,00,000
17,71,45,215
40,10,02,914
Particulars
Figures as at end of current reporting
period
Figures as at end of previous
reporting period
31st March 2015 31st March 2014
Rs. Rs.
19
Short term loans and advances:
(Unsecured & considered good)
i) Security deposit 2,60,623
2,30,000
ii) Advance to suppliers 22,75,19,704
16,18,59,343
iii) Employee advances 1,15,18,358
1,11,82,958
iv) Subsidy receivable 1,66,38,045
1,31,38,754
25,59,36,730
18,64,11,055
Foot Note: a) The Company makes advance payments to seed growers against supply of seeds. On
certification of the seeds by the Karnataka State Seed Certification Agency (KSSCA), the advance is adjusted towards the cost of procurement of seeds.
b) Employee advances include stock shortage / short remittances of Rs.1,08,90,397/- (As at March 31, 2014 Rs. 1,07,78,756/-) which are treated as good of recovery from ex- employees and in certain cases the Company has initiated the legal action.
c) During the Financial Year 2010-11, stock shortage, and short remittances amounting to Rs. 105,24,314/- were identified in Chintamani Centre. Of this amount, a sum of Rs. 9,30,000/- has been recovered, and the amount yet to be resolved is Rs. 95,94,314/-. Administrative actions have been initiated to keep the concerned officials under suspension, and filing of a criminal case against a Junior Assistant who has confessed to the defalcation of funds at Chintamani. The Company has filed a civil suit for attachment of Sites and Agricultural land offered as securities by the concerned persons. A separate case has also been filed for dishonouring of cheques under the Negotiable Instruments Act, 1881.
d) Subsidy receivable includes a sum of Rs.13,78,469/- (As at March 31, 2015: Rs.14,78,769/-) being subsidy extended to Seed Growers during the financial year 2009-10 at Bijapur Centre. Administrative action has been initiated to resolve certain connected issues, such as stock shortage, deviation from standard procedures, delays in filing claims, etc., noticed at Bijapur centre. However, the Company has considered this amount as good of recovery.
Particulars
Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs.
20 Other Current Assets
(i)
Interest accrued & not due on deposits
31,26,431
7,64,329
(ii) Prepaid expenses
1,44,252
1,12,082
(iii) Other Accrued income
10,88,93,659
6,28,622
(iv) Service tax input credit
11,25,021
-
11,32,89,363
15,05,033
Particulars Figures as at end
of current
reporting period
Figures as at end
of previous
reporting period
31st March 2015 31st March 2014
Rs. Rs.
21 Contingent liabilities and Commitments:
(to the extent not provided for)
a) Contingent Liabilities:
i) Bank Guarantees
1,43,00,000 50,00,000
ii) Claims against the Company not
acknowledged as debts
representing amounts claimed
by farmers towards failure of
seeds.
1,78,46,442
39,76,511
iii) Demand of PF authorities for the
financial year 2008-09 has not
been acknowledged as debt. The
Company had remitted the PF
contribution to the concerned
authorities regularly. The details
of the remittance, together with
a reconciliation thereof, have
furnished to the PF Authorities.
Since the Company is of the view
that no amount is remittable to
PF authorities, a provision has
not been made.
14,22,858
14,22,858
iv) Income tax under appeal 69,50,142
-
The management believes, based on internal assessment and / or legal
advice, that the probability of an ultimate adverse decision and outflow of
resources of the Company is not probable and accordingly, no provision for
the same is considered necessary.
b) Commitments
i) Estimated amount of contracts
remaining to be executed on
capital account and not provided
for (net of advances)
10,25,32,000
6,14,55,564
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs. Rs. Rs.
22 Revenue from operations:
i) Sale of products
Sale of seeds
1,48,27,96,270
1,23,40,68,931
Sale of chemicals
-
37,37,05,108
Sale of Packing materials & Tarpaulins
4,41,93,461
57,09,233
1,52,69,89,731
1,61,34,83,272
ii) Other Operating Income
59,84,492
2,48,02,407
-
1,53,29,74,223
1,63,82,85,679
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs. Rs. Rs.
23 Other Income:
i) Interest income - bank deposits
1,22,91,881
1,14,32,319
- Others
91,233
86,264
1,23,83,114
1,15,18,583
ii) Rent received
4,09,040
4,33,475
iii) Amortisation of deferred grant
2,73,24,358
1,19,70,125
iv) RSK Manpower charges
10,88,39,659
-
v) Other non operating income
2,68,02,553
1,27,81,514
17,57,58,724
3,67,03,697
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs.
24 Purchases of Stock in Trade:
i) Seeds
1,20,30,59,963
1,10,99,00,191
ii) Chemicals
83,58,886
33,72,77,558
iii)
Packing Materials and Tarpaulins 6,94,16,339
4,24,40,785
1,28,08,35,188
1,48,96,18,534
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs. Rs. Rs.
25 Changes in inventories of stock in trade:
Stocks at the end of the year
i) Seeds 18,17,20,888
22,48,29,655
ii) Chemicals 49,65,527
44,78,095
iii)
Packing Materials and Tarpaulins 5,24,97,478
2,11,89,745
23,91,83,893
25,04,97,495
Less: Stocks at the beginning of the year
i) Seeds
22,48,29,655
11,07,38,126
ii) Chemicals
44,78,095
32,67,836
iii) Packing Materials and Tarpaulins
2,11,89,745
2,69,06,918
25,04,97,495
14,09,12,880
1,13,13,602
(10,95,84,615)
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs.
26 Employee Benefit Expenses:
i) Salaries and wages
12,02,58,478
11,38,33,957
ii)
Contribution to provident & other funds 1,43,56,776
87,05,272
iii) Gratuity & leave encashment
77,16,552
99,31,554
iv) Staff welfare expenses
8,99,438
8,68,847
14,32,31,244
13,33,39,630
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs.
27 Finance Costs:
i)
Interest on Cash Credit Account
33,887
1,80,713
ii) Interest on Other borrowings
1,13,281
1,80,258
iii) Guarantee Commission
-
25,000
iv) Interest on delayed payment of tax 26,201
-
1,73,369
3,85,971
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs.
28
Depreciation and amortization:
i) Depreciation
4,73,00,891
2,14,78,472
ii)
Amortization of intangible assets 1,38,402
34,350
4,74,39,293
2,15,12,822
Particulars Figures as at end of current reporting period
Figures as at end of previous reporting period
31st March 2015 31st March 2014
Rs. Rs. Rs. Rs.
29 Other expenses:
i) Advertisement
9,48,095
12,23,495
ii) Rent
25,86,713
32,47,373
iii) Electricity & Water
41,69,960
42,50,291
iv) Repairs & Maintenance
67,94,984
1,06,70,112
v) Seed Processing & Testing Charges
2,28,22,126
1,67,64,266
vi) Insurance
8,42,205
7,82,597
vii) Rates and taxes
5,59,086
6,46,588
viii) Payment to auditors
- as auditor 1,79,550
1,68,540
- for taxation matters 91,136
74,158
2,70,686
2,42,698
ix) Selling Expenses
4,30,68,778
3,70,66,553
x) Travelling & Entertainment expenses
50,39,911
33,28,019
xi) Board & AGM Expenses
26,41,082
24,44,660
xii) Communication expenses
19,54,860
20,50,359
xiii) Printing & stationery
18,33,469
21,73,103
xiv) Bad trade receivables written off
-
57,16,945
xv)
Legal and professional charges
19,94,339
39,20,634
xvi) Discount Coupons
38,74,000
38,59,500
xvii) Loss on sale of fixed asset (net)
-
2,12,101
xviii)
Consultant and Contract Employees
86,48,426
88,94,765
xix) RSK Manpower Charges
10,46,53,518 -
xx) Provision for warranty
37,78,437
31,50,697
xxi) Miscellaneous expenses
27,22,280
21,07,788
21,92,02,955
11,27,52,544
Particulars Figures as at end of current reporting
period
Figures as at end of previous reporting
period
31st March 2015 31st March 2014
Rs. Rs. Rs. Rs.
30 Earnings per Share:
(a) Basic
Profit for the year after tax expense
1,51,27,308
1,62,40,205
Weighted average number of equity shares
3,62,830
3,62,830
Basic earnings per share
41.69
44.76
(b) Diluted
Profit for the year after tax expense
1,51,27,308
1,62,40,205
Weighted average number of equity shares considered for Basic EPS
3,62,830
3,62,830
Potential dilutive shares in numbers pertaining to Government of Karnataka
14,400
14,400
3,77,230
3,77,230
Dilutive earnings per share
40.10
43.05
31 Disclosures as per Accounting Standard 15 “Employee Benefits”:
a) Defined Contribution Plan:
Contribution to Defined Contribution, recognized as expense for the year are as under:
Figures as at end of current reporting
period
Figures as at end of previous
reporting period
Rs. Rs.
Employers contribution to provident and pension funds
1,43,56,776 87,05,272
b) Defined Benefit Plan: Contribution to gratuity fund and Earned Leave Enacashment (defined
benefit plans) are managed by taking a policy with Life Insurance
Corporation of India (“LIC”). Expenditure on this count has been accounted
on the basis of assessment of liability by LIC, which the Company has been
given to understand is on the projected unit credit method. Disclosures as
per AS 15 (revised) have not been furnished, pending receipt of the same
from LIC. The Company has paid an amount of Rs.30,00,000/- (previous
year – Rs.55,32,907/-) to LIC during the year. Further, the Company has also
made a provision towards leave encashment amounting to Rs.40,10,936/-
(previous year - Rs.43,98,647/-) including the amount remitted to LIC. With
respect to half pay leave, the same is accounted as and when the employee
avails the compensated absences and has not provided on accrual basis.
32 The Company is engaged in the business of procuring and selling quality seeds
and related chemicals to farmers. The products (seeds and chemicals) are
related products and there is no significant difference in the risk-return profile
of these products. Hence, company’s operations are confined to one single
business segment. The Company does not have any exports, hence the
Company has not furnished segment reporting.
33 Related Party Transactions:
a)
List of related parties:
Sl. No.
Name of the Related Party Relation Ship
a) Mr. Anandakrishna (Upto 30.08.2014) Key Managerial Person ("KMP)
Dr. Vishakanta (from 05.09.2014)
Mr. I S Patil
Mr. D L Nagaraj
b) National Seeds Corporation Limited Associate Company
(b) Transactions with the related parties:
(Amount in Rupees)
Particulars Relations
hip
Current Year Previous Year
Remuneration Paid:
Mr. Anandakrishna
KMP 5,14,427
11,72,650
Dr. Vishakanta
7,16,804
-
Purchase of seeds:
Mr. I S Patil
KMP 10,28,629
9,54,935
Mr. D L Nagaraj
1,42,450
82,000
34 Rental expenses paid towards operating leases included under the note 29 of
the financial statements for the period are Rs.25,86,713/- (Previous Year
Rs.32,47,373/-).
35 The Company has initiated steps to obtain confirmation of balances from
various trade payables, trade receivables and loans & advances. However, it
has not received the same from said parties. The effect on revenue not
ascertained.
36 OPERATING LEASES:
a. The Company has entered into operating lease with Government of Karnataka
for Varietal Research and Development Centre(VRDC) at Dharwar and with
KIADB at Shimoga. The future minimum lease rentals payable under the non
cancellable operating lease in the aggregate and each of the following periods
are as under:
Amount in Rs.
Particulars Figures as at end of current
reporting period 31st March 2015
Figures as at end of previous
reporting period 31st March 2014
Not later than one year
41,217 41,217
Later than one year not later than 5 years
1,60,987 1,64,014
Later than 5 years
4,28,460 4,66,650
37 The Company has made provisions towards Contingencies in respect of certain
disputed claims as matter of precaution, expenditure on research and
development and leave encashment the details of the same are as under:
Particulars
Research and
development
Contingencies Leave encashment
Rs. Rs. Rs.
a) Carrying amount at the beginning of the year
2,97,90,300
1,92,61,036
25,54,087
(2,97,90,300)
(1,65,11,980)
(13,09,067)
b)
Provision made during the year
-
37,78,437
30,10,936
-
(31,50,697)
(25,54,087)
c)
Amount utilised during the year
3,73,685
-
25,54,087
-
(4,01,641)
(13,09,067)
d)
Carrying amount at the end of the year
2,94,16,615
2,30,39,473
30,10,936
(2,97,90,300)
(1,92,61,036)
(25,54,087)
38 During the year the Company has entered into an agreement with Department of
Agriculture ("DOA") for supply of manpower to various Raitha Samparka Kendra
("RSK") across the Karnataka state based on which the Company is eligible for 4%
markup on the cost incurred. Based on the said agreement the Company has
entered into an agreement with the vendor at a determined rate based on which
the Company has accounted the expenditure as well as income recoverable from
DOA. However, subsequently DOA is negotiating the rate with the said vendor
and any adjustment for the said income and expenditure will be carried in the
ensuing year.
39 During the year the Company has not executed any long term contracts. There
are no derivative contracts entered by the Company.
40 Previous year’s figures have been regrouped wherever required in conformity
with the presentation for the current year. Figures in brackets represent
previous year figures.
In Accordance with our Report attached
For and on behalf of the Board of Directors of Karnataka State Seeds Corporation Limited
For B K Ramadhyani & Co LLP, Chartered Accountants
Sd/-
Sd/- Firm number: 002878S/ S200021 (Dr. Shivamurthappa)
(I.S. Patil)
Managing Director
Director
(C R Deepak)
Partner
Sd/-
Sd/- Bangalore (K. Gopalakrishna)
(G.L. Kurtakoti)
Date: General Manager (FA & MIS)
Company Secretary