Notes to Accounts of Naga Ltd.

Mar 31, 2016

NOTE - 36 : CONTINGENT  LIABILITIES AND COMMITMENTS:

 

i)   Contingent Liabilities

 

a) Claims against the Company /disputed  liabilites  not

 

acknowledged  as  debts                                                                    --                      --

 

Disputed Electricity  Tax                                                                   19.83                19.83

 

Writ petition  is filed  before the Hon’ble Supreme Court of India  against demand of Electricity  Tax on in-house generation of power through windmills.  The Hon’ble Supreme Court has generated stay and the matter  is pending before the Hon’ble Supreme Court.

 

Disputed Windmill  banking adjustment                                          12.09                12.09

 

Stay petition  is filled  before the madurai Bench of Madras High Court against demand relating  to banking adjustment  of power generated through windmills.  The Court has granted stay and the  matter  is pending before the Hon’ble High Court of Madras.

 

The Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

 

b) Guarantees to  banks

 

Bank Guarantee Limit	2,500.00	1,500.00
Bank Guarantee Utilised	1,426.60	1,419.52

 

ii)  Commitments

 

a) Estimated amount of contract  remaining to the executed on

Capital Account (net of advances) and not provided for              --                       --

NOTE -  37  : CSR  EXPENDITURE:

 

Gross amount required to be spent by the Company

during the year                 28.10                  26.91

 

On purposes other than construction / acquisition of assets               19.07                         --

 

 

NOTE - 38 : SEGMENT REPORTING:

 

The Company has presented segment information  in the  consolidated financial statements which are presented in the same financial  report.    Accordingly,  in terms of paragraph IV of the Accounting Standard 17 (AS 17) ‘ Segment Reporting ‘, no disclosure related to segments are presented in the standalone financial statements.

 

 

NOTE - 39 : PREVIOUS  YEAR FIGURES:

 

Previous year’s  figures have been regrouped / reclassified wherever necessary to correspond with  the current  year’s  classification  / disclosure.

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Mar 31, 2009

1 B. Contingencies:

1. Claims against the company not acknowledged as Debt: Nil

2. Guarantees and other Contingencies

3. Secured Loans :

a) Term Loans availed from TIIC Ltd., Dindigul is collaterally secured by the Land and Building situated at No.1, Trichy Road, Dindigul and Guest house situated at Senankottai Viliage, Vedasandur in addition to the primary security of the Assets purchased and building constructed from the said loan.

b) Mortgage Loan availed from HDFC Bank, Chennai is secured by the Land and Building situated at No.1 Kumaran Road, Senthaneerpuram, Trichy.

c) Mortgage Loan availed from CITI Bank, Chennai is secured by the Land and Building situated at No.89 West Madha Church Street, Royapuram, Chennai which belongs to one of its directors.

d) The Banking facility availed from Axis Bank, Dindiguf are primarily secured by hypothecation of stocks, book, debts and other current assets also collaterally secured by land and building of chemical division property situated at No. 9, Trichy Road, Dindigul and residential property of the company situated at No.1 Nagalakshmi illam, Seelapadi Village, Dindigul 624 005 and 12 acres of land situated at No. 1, Oddanchatram Road, Vedasandur and also collaterally secured by 27 acres of land at Velvarkottai Village, Vedasandur (Tk), Dindigul.

e) The term loan facility availed from ING Vysya Bank, Madurai are primarily secured by the assets purchased from the said loan and collaterally secured by land and building situated at No.133, Trichy Road and collaterally secured by Naga & Lakshmi Theatre situated at Race Course Road, Dindigul which belongs to its subsidiary Naga Overseas Private Limited and also collaterally secured by Land, Building and Plant and Machinery situated at No.1, Oddanchatram Road, Vedasandur.

f) Short term loans from banks and financial Companies are secured by the assets purchased under Hire purchase.

4. Sundry Debtors:

(a) Sundry Debtors and Loans and Advances are stated after making adequate provisions for doubtful balances.

(b) The current Assets, stock in trade and loans and advances are shown at realizable value.

(c) Loans and Advances includes following amount due from Companies under the same Management and firms in which some of the Directors are interested.

5. Sundry Creditors :

In the absence of comprehensive details of small-scale industrial undertakings, and non-intimation by the suppliers of their being small-scale industrial undertakings, the amount due to such suppliers as on 31st March 2009 could not be determined.

6. Amalgamation of Vega Marketing Limited with Naga Limited :

i) Pursuant to the scheme of amalgamation of Vega Marketing Limited (hereinafter) referred as (transferor company) with the company as approved by the shareholders and subsequently sanctioned by the Honble High Court of Madras on 12.05.2009, the assets and liabilities of transferor company were transferred to and vested in the company with retrospective effect from 01st April 2008. The scheme has, accordingly, been given effect to in these accounts.

ii) The assets an liabilities and other reserves of the transferor company on 01st April 2008 have been taken over at their book values.

iii) Pursuant to the scheme referred to in (i) above, and after the extinguishments of shares held in the transferor company by the company, 11,50,000 Equity Shares of Rs.10/- each at par in the ratio of 1:1 were issued to the shareholders of the transferor company.

7. Taxes on Income :

Current Tax : Current Tax is determined in accordance with Income Tax Act on the income for the period chargeable to tax.

Deferred Tax : Deferred Tax is recognised on all timing differences subject to consideration of prudence.

8. Borrowing Costs : Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized. All other borrowing costs are charged to rsvenue.

9. Previous year figures have been regrouped wherever necessary to conform to the classification for the current year.

10. SEGMENT INFORMATION:

The business segment has been identified on the basis of products of the Company and accordingly the operating segments of the Company are Foods Windmill and Minerals & Detergents. Foods Segment deals with manufacturing of Wheat products on its own and job work basis. Minerals & Detergents Segment deals with manufacturing of Detergent soaps, powders and toilet soaps on Job work basis and manufacturing and selling of detergent raw materials and windmill segment deals with wind power generation. Since the Company operates only in India and has no overseas operations, analysis of geographical segment is not applicable.

Names of the related parties

Persons having a direct or Indirect control over the Company Subsidiary Company Associate Companies

Sri K.S. Kamalakannan

Smt. Mageswari Kannan, Sri. Sounder Kannan

Naga Overseas Private Limited

Naga Marine Industries Limited

M.M. Detergents Company Private Limited

Naga Global Holding India Limited

Annai Power Private Limited