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Company Information

Home » Market » Company Information

Foods & Inns Ltd.

Jul 20
155.60 -0.10 ( -0.06 %)
 
VOLUME : 451
Prev. Close 155.70
Open Price 159.00
TODAY'S LOW / HIGH
152.05
 
 
 
160.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
89.00
 
 
 
217.45
Foods & Inns Ltd. is not traded in NSE
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Market Cap. ( ₹ ) 255.49 Cr. P/BV 3.86 Book Value ( ₹ ) 40.29
52 Week High/Low ( ₹ ) 217/89 FV/ML 1/1 P/E(X) 73.64
Bookclosure 20/04/2018 EPS ( ₹ ) 2.11 Div Yield (%) 0.19
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2016-03 

1. Rights, preferences and restrictions :

i. The Company has only one class of shares referred to as Equity Shares having par value of Rs.10 Each holder of Equity Shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The Board of Directors, in their meeting on May 28, 2016, proposed a final dividend of Rs.2.50 per equity share of Rs.10 each. The total dividend appropriation for the year ended March 31, 2016 amounted to Rs.43,66,107 including corporate dividend tax of Rs.7,38,507.

During the year ended March 31, 2015, the amount of per share dividend recognized as distribution to equity shareholders was Rs.2.50 per equity share of Rs.10 each. The dividend appropriation for the year ended March, 31 2015 amounted to Rs. 42,55,320 including corporate dividend tax of Rs.6,27,720.

ii. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

2. Deferred Tax Liabilities (DTL) for the year is arrived at after reversal of Net Deferred Tax Assets of Rs.3,03,53,842 (Previous Year Rs.7,96,108) relating to prior period.

3. Secured by way of hypothecation of stocks of Raw Materials, Stock-in-Process, Finished Goods, Packing Materials, etc. meant for other than export, a charge over the entire current assets of the Company including domestic receivables or book debts, both present and future. All the above Loans including from the Banks are also secured by a personal Guarantee of Mr. Utsav Dhupelia(Managing Director and a Shareholder) and Mrs. Pallavi Dhupelia (Shareholder), and charge on all the Fixed Assets excluding the assets financed out of the Term Loan.

4. Secured by way of hypothecation of stocks of Raw Materials, Stock-in-Process, Finished Goods, Cans, etc. meant for export, a charge over the entire current assets of the Company including export receivables/ book debts, both present and future, and stores and spares, lodgement of confirmed contracts and irrevocable letters of credit and ECGC Packing Credit Guarantee cover, charge on all Fixed Assets excluding the assets financed out of the Term Loan and also secured by a personal Guarantee of Mr. Utsav Dhupelia(Managing Director and a Shareholder) and Mrs. Pallavi Dhupelia (Shareholder).

5. For Supplies to customers Secured by way of hypothecation of stocks of Finished Goods for customers and its receivables.

6. Secured by way of collateral against pledge of Fixed Deposit of Rs.13,72,692 (Previous Year Rs.13,72,692) (Refer Note 18.1).

7. Gross Block includes the following amounts on account of Revaluation of assets at Deonar, Mumbai:

- Land Rs.8,00,20,550 {Previous year Rs. 8,00,20,550)

- Factory Building Rs. 1,57,27,907 {Previous year Rs. 1,57,27,907)

-Administrative Building Rs. 1,09,30,926 (Previous year Rs. 1,09,30,926)

- For other disclosures on revaluation of Fixed Assets - Refer Note 31 {a)

8. For the year ended March 31,2015 - Effective from April 1, 2014,the Company has provided depreciation on its tangible Fixed Assets as per the useful lives as specified in Schedule II to the Companies Act,2013. Accordingly, in respect of the tangible Fixed Assets as on April 1, 2014, the carrying amount, net of residual value, as on that date has been depreciated over the revised remaining useful lives of the assets. As a result, the charge for depreciation for the year ended March 31, 2015 is higher by Rs. 3,40,04,255 {including depreciation of Rs. 36,280 on Revalued assets). Further, in view of the Notification No. GSR 627(E) of August 29,2014 amending Schedule II, on the basis of option available, the Company has now decided to charge the carrying amount of assets, after retaining residual value, in cases where the remaining useful life has been completed as on April 1,2014 by way of depreciation to the Statement of Profit and Loss and accordingly, the sum of Rs. 1,68,38,512 is included in depreciation for the year ended March 31,2015.

9. Based on the policy of Component Accounting adopted by the Company with effect from April 1, 2015,there is no additional or otherwise impact on the depreciation for the year.

10. During the year, the Company closed its operations at Chem bur factory w.e.f. December 30,2015.Based on the assessment of Fair Market Value (FMV) of the assets of the Chembur factory, which cannot be relocated, the impairment of Rs. 5,26,807 is made in terms of the requirement under Accounting Standard 28 on “Impairment of Assets”.

11. During the year, the Company has taken on Lease Plant and Machinery of Rs.2,45,40,000 from Finns Frozen Foods {I) Limited {an associate) which was later on purchased from it at Rs. 2,35,09,184.

12. Figures given in brackets above are for the previous year.

13. On March 30, 2015, as the Company sold 1,44,875 Equity Shares of Dravya, the latter ceased to be the Company's subsidiary; with the balance holding of 55,125 Equity Shares, with effect from March 31, 2015, Dravya has become an associate of the Company. The above does not include the carrying amount of such investments since the same was written off in an earlier year.

14. On March 30, 2015, as the Company sold 25,200 Equity Shares of Asim Exports International Limited, an another subsidiary (“Asim”), the latter ceased to be the Company's subsidiary with the balance holding of 27,794 Equity Shares, with effect from March 31, 2015, Asim too became the Company's associate. Accordingly, investments therein are reflected herein above.

15. The Income-tax Authorities had carried out a search in premises of the Company under section 132 of the Income-tax Act, 1961, on October 16, 1992 and seized the share certificates in respect of the investments of the Company. The time to hold share certificates under seizure by the Income-tax Department was over and the latter informed the Company for releasing of Shares but the Company could not take any step in this respect without taking approval of the Custodian specified in the Act. Subsequently, on June 12, 2007, the Company made an application to the Special Court for giving specific directions in this regard, for which on the basis of the order received during the year ended March 31,2015, the said shares were released.

16. Other Loans and Advances are in the nature of Advances recoverable in cash or in kind or for the value to be received which include Prepaid expenses.

17. Other Loans and Advances are in the nature of Advances recoverable in cash or in kind or for the value to be received which include Advances to Suppliers, Prepaid expenses and Advances to Employees for expenses.

18. The Company is entitled to Export Benefits, under Merchandise Exports from India Scheme (MEIS) vide Public Notice No.2/2015-20 dated April 1, 2015, in respect of export of Fruit Pulp, paste, slice, Canned Vegetables and others. The Company recognizes such Export Benefits on the basis of export of goods. Accordingly, the Company has recognized Export benefits of Rs.9,91,00,411 (Previous Year Rs.9,78,50,657) on export of goods.

19. Interest on Cash Credit Facilities / Buyers Credit is net of subsidy of Rs.1,99,94,578 (Previous Year Rs. Nil) received under Interest Equalization Scheme on pre-shipment and post-shipment credit.

20. Guarantee Commission of Rs.65,67,000 (Previous Year Rs.53,17,500) paid/provided as due to a related party (Refer Note 35).

21. Brokerage on Fund Arrangements Rs.15,411 (Previous Year Rs.17,205) paid/provided as due to a related party (Refer Note 35).

22. Warehousing charges mainly include duties, local transport charges, contractual charges, miscellaneous charges, rent, insurance and statutory charges, etc. for storage of goods abroad as per agreement with foreign parties.

* Export obligations against the advance license of Rs.6,73,32,644 (Previous Year Rs.4,38,87,698) have already been fulfilled by the Company. However, procedural formalities for the closure of the Advance Licenses are pending.

** Export obligations against the purchase of machinery and packing materials under Export Promotion Capital Goods Scheme (“EPCG”) of Rs.2,68,10,759 (Previous Year Rs.2,41,39,264) have already been fulfilled by the Company, However, procedural formalities for the closure of the EPCG Licenses are pending.

23. Pursuant to the decision of the Board of Directors in its meeting held on August 23, 2002, the Company had revalued its Land and Building at Deonar, Mumbai, based on open market value as per the Valuation Report dated September 27, 2002 submitted by an expert. Consequent to the revaluation, an amount of Rs.10,66,79,383 was credited to the Revaluation Reserve in the year of revaluation.

Amount of depreciation on the revaluation of Fixed Assets amounting to Rs.23,52,024 (Previous Year Rs.23,45,597), is withdrawn and transferred to General Reserve and the same is reflected under Note 3 on “Reserves and Surplus”.

24. Investments include a sum of Rs.2,40,00,000 (Previous Year Rs.2,40,00,000) invested in Finns Frozen Foods(I)Limited (“Finns”), an associate. The Company has given a deposit of Rs.3,00,00,000 (Previous Year Rs.3,00,00,000) to Finns, for getting exclusive export rights of Frozen Fruit Pulp, etc.

The Company has given advances from time to time for the purchase of Frozen Fruit Pulp, etc. for exports and for certain expenses of Finns, against which the Company had purchased Frozen Fruit Pulp, Vegetables, Packing Materials and has also incurred Cold Storage and Processing charges amounting to Rs.3,95,39,353 (Previous Year Rs.5,37,13,601) and Purchase of Machineries amounting Rs.2,35,09,184 (Previous Year Rs. Nil). The Company has also sold Raw materials, Packing material and Finished Goods aggregating to Rs.8,05,87,737 (Previous Year Rs.27,19,835). On account of all such transactions, the net amount due from Finns is Rs.4,25,75,833 (Previous Year Rs.5,38,48,199) and the same is reflected as ‘Loans and Advances to Related Parties' under Note 19 on “Short-term Loans and Advances”.

Since the net worth of Finns was eroded, the Board of Directors of the Company in its meeting held on August 23, 2002 discussed the restructuring proposal of Finns, the expected improvements in the working of Finns and the future orders in hand with Finns.

Consequently, having regard to the restructuring proposal, strategic nature of the investment and expected improvements in the future operations of Finns, the Board of Directors of the Company perceived the diminution in the value of investments as temporary in nature. But, out of abundant caution, the Board of Directors of the Company, had decided to provide 20% of the investment in Finns, as diminution in the value of investments.

During the year ended March 31, 2015, the Company had entered into an agreement with Finns for job processing of frozen products for its export and domestic orders in line with the approval of the Board of Directors at its meeting held on February 14, 2015. Further, the Board has reviewed from time to time, the working of Finns, based thereon and considering the amounts received during the year, it has decided that the current provision for diminution in value of shares is sufficient and no further provision is needed as on March 31, 2016.

25. The Company has called for balance confirmations from Trade Receivables and Trade Payables. It has received a few of the confirmations which have been reconciled with the records of the Company. The other balances have been taken as per the records of the Company. Similarly certain balances in Advances, recoverable in cash or kind are subject to confirmation and subsequent reconciliation, if any.

The estimate of future salary increases considered in actuarial valuation takes into account the general trend in inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held and historical results of the return on plan assets.

26. Disclosure as per Accounting Standard 17 on “Segment Reporting”:

27.Primary Segment:

The Company is exclusively engaged in the business of “Food Products”. This in the context of AS 17 “Segment Reporting”, notified under the Companies (Accounting Standard) Rules, 2006, constitutes only single primary segment.

The segment revenue in geographical segments considered for disclosure is as follows:

i Revenue within India includes sales to customers located within India, Other Operating Income and Other Income earned in India.

ii Revenue outside India includes sales to customers located outside India, Other Operating Income and Other Income outside India.

i. * Refer Note 11.5

ii. **Outstanding balance is arrived at after considering transactions with the related parties for purchase, sales, services, etc., as also advances and/or payments made/received on their behalf and/or payments made/received on the Company's behalf.

iii. ***Corporate Guarantee given to a Bank against the credit facilities extended to the Associate Company which is Contingent Liability.

iv. Figures given in brackets above are for the previous year.

b. Relationships:

I. Subsidiary:

i. Dravya Finance Limited up to March 30, 2015

ii. Asim Exports International Limited up to March 30, 2015

iii. FNI Asia PTE Limited

II. Associates:

i. Finns Frozen Foods (India) Limited

ii. Dravya Finance Limited with effect from March 31, 2015

iii. Asim Exports International Limited with effect from March 31, 2015

III. Key Managerial Personnel:

i. Mr.Utsav Dhupelia

ii. Mr.Milan B.Dalal

IV. Relatives of Key Managerial Personnel:

i. Mrs.Pallavi Dhupelia

ii. Mr.Bhupen Dalal

V. Entities over which Key Managerial Personnel and Relatives of Key Managerial Personnel have control:

i. Muller & Phipps (India) Limited

ii. Western Press Private Limited

iii. Western Securities - A Division of Western Press Private Limited

iv. First Overseas Capital Limited

28. Disclosure as per Accounting Standard 19 on “Leases”:

The Company has entered into Operating Lease Agreements for office premises at Mumbai, Chennai and Ahmedabad,Guest house at Nashik and factory premise at Bulsar, renewable on a periodic basis and cancellable at the Company's option. Rental Expenses for operating leases recognized in the Statement of Profit and Loss for the year is Rs.1,27,50,584 (Previous Year Rs.1,25,92,900).

a. Forward Contract of USD 2,28,71,437 (Previous Year USD 91,99,731) and Euro 39,60,391 (Previous Year Euro Nil), Packing Credit in foreign currency of USD 10,04,145 (Previous Year USD 18,22,106), Customer Advances of USD 5,52,875 (Previous Year USD 20,03,513) availed on future export sales of firm commitments against forecast transactions, are outstanding as on March 31, 2016.

b. The notional mark to market loss for the year ended as at March 31, 2016 amounting to Rs.NIL (Previous Year Rs.42,74,651) has been debited in the Statement of Profit and Loss.

29. Previous Year's figures, wherever necessary, have been regrouped/reclassified to conform to the current year's presentation. Figures in brackets unless specified, represent previous year's figures.