KERALA SHIPPING AND · presentation of the financial statements. O. S 38, 4th floor GCDA Shopping...
Transcript of KERALA SHIPPING AND · presentation of the financial statements. O. S 38, 4th floor GCDA Shopping...
KERALA SHIPPING ANDINLAND NAVIGATION
CORPORATION LIMITED(A Government of Kerala Undertaking)
40th
2015-2016
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KERALA SHIPPING AND INLANDNAVIGATION CORPORATION LTD
BOARD OF DIRECTORS AND OTHER INFORMATIONChairman&Managing Director Shri. Tom Jose, IAS
Directors(2015-2016)
Dr. V.M. Gopala Menon I.A.S.
Shri. K.P. Chandra Prakash
Capt. Paul N Joseph
Shri. N. Unni
Shri. T Elangovan
Finance Manager Shri. Rajesh K
Company secretary Shri. Raju V K
Mechanical Engineer Shri. Anoop Kumar K.R.
Commercial Manager Cyril V Joseph
Bankers
Ernakulam District Treasury Savings Bank, Kakkanad
Dhanalaxmi Bank, Palarivattam
State Bank of India, KTDC Building, Ernakulam
HDFC Bank, Ravipuram
State Bank of India, Kakkanad
Federal Bank, Ernakulam
Statutory Auditors M/s. M. A Moideen & Associates, GCDA Complex, Marine Drive Ernakulam
Internal Auditors M/s. BSJ & Associates, Veekshanam Road, Kochi.
Registered Office 38/924A, Udaya Nagar, RoadGandhi Nagar, Kochi 20
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INDEPENDENT AUDITOR’S REPORT
To The Members of Kerala Shipping and Inland Navigation Corporation Limited
Report on the Standalone Financial Statements We have audited the accompanying standalone financial statements of KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LIMITED (“the Company”), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management’s Responsibility for the Standalone Financial Statements
The Company’s management 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 principles 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 also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
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 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, but not for the purpose of expressing an opinion on the effectiveness of the entities internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
O. S 38, 4th floorGCDA Shopping Complex
Marine Drive, Ernakulam -31Ph: 0484 4000992
M. A MOIDEEN & ASSOCIATESChartered Accountants
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our adverse audit opinion on the standalone financial statements.
Basis for Qualified Opinion
1. Fixed Assets
i. Till the end of the previous year, the Company followed the policy of capitalizing the repairs/maintenance done to the Barges and Boats which do not increase the future benefits of the existing assets beyond its originally assessed performance/useful life. Such repairs/maintenance were depreciated over the useful life of the asset as stipulated in Schedule II of the Companies Act 2013. This resulted in escalating the carrying value of the assets in Balance sheet and reducing expenditure in the Statement of Profit and Loss, thus decreasing the loss to that extent in the current and comparative periods. We are not in a position to quantify the impact on the financial statement as the transactions are spread over various financial years.
ii. The inputs provided for computation of depreciation being, date of addition, completed years of use and residual value are observed to be incorrect. Hence, the charge of depreciation to the Statement of Profit and Loss and the carrying value of the Fixed Assets in the Balance sheet are incorrect to that extent. We are not in a position to quantify its impact on the financial statements.
iii. As per Note 4 of Part C of Schedule II to the Companies Act 2013, if the cost of a part of the asset is significant to the total cost of the asset and the useful life of that part is different from the useful life of the remaining asset, such components should be identified and depreciated separately. Management has not initiated any steps for the component accounting of fixed assets.
2. A) Trade Receivable of Rs. 180.46 lakhs (Note No.14), Deposits and others of Rs. 19.25 lakhs (Note No.12 & 16), Advance for goods and expenses of Rs. 67.82 lakhs (Note No.16), Advance received from Inland Waterways Directorate & income received in advance of Rs. 133.24 lakhs(Note No.9) and an amount of Rs. 269.19 lakhs included in Other Current Liabilities (Note No.9) are not confirmed by the parties concerned. The effect, if any, on reconciling the balances are not ascertainable at this stage.
B) The company had given advance of Rs.76.48 lakhs towards construction of fibre boats to M/s Aquarius Fibreglass, Goa against an order from State Water Transport Department which was subsequently cancelled. In our opinion, out of this, an amount of Rs.65.19 lakhs which is still pending to be received from the party is considered bad & doubtful. According to the informations and explanations given to provide to us, the matter is pending for arbitration under Transport Secretary under the Government of Kerala. In the event of matter being ruled against the company, the company shall have to write off the said balance. Advance for goods & expenses (Note No.16) is overstated by Rs. 65.19 lakhs and expense is understated by Rs. 65.19 lakhs to the said effect.
3. In our opinion, a further provision for Bad and doubtful debts to the extent of Rs.64.67 lakhs towards Trade Receivables(Note No.14) has to be made since these debtors are outstanding for more than three years and the chances of their recovery is very remote.
4. A) Company continues to recognize deferred tax asset amounting to Rs. 167.15 lakhs represented by unabsorbed depreciation, Gratuity & Bad debts, though there is no virtual/reasonable certainty (as the case may be) about future profits.
B) The company has not recognized the deferred tax liability relating to depreciation amounting to Rs. 91.23 lakhs cumulated for the prior periods and Rs. 9.80 lakhs relating to the current year as on the balance sheet date.
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The aggregate effect of the above qualifications results in net increase of expenses by Rs.398.04 lakhs, reduction in assets by Rs.297.01 lakhs and increase in liability by Rs.101.03 lakhs.
Qualified Opinion
In our opinion and best of our information and according to the explanations given to us, except for the effect of the matters mentioned in the Basis for Qualified Opinion paragraph, the aforesaid financial statements give the information required by the Companies Act, 2013 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 31st March, 2016 and its statement of Profit & Loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), as amended, 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” a statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by 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 the following
i. The inputs provided for computation of depreciation being, date of addition, completed years of use and residual value are observed to be incorrect. Hence, the charge of depreciation to the Statement of Profit and Loss and the carrying value of the Fixed Assets in the Balance sheet are incorrect to that extent. We are not in a position to quantify its impact on the financial statements. Thus, the company has not complied with the provisions of Accounting Standard -6,”Depreciation Accounting”.
ii. Till the end of the previous year, the Company followed the policy of capitalizing the repairs/maintenance done to the Barges and Boats which do not increase the future benefits of the existing assets beyond its originally assessed performance/useful life. Such repairs/maintenance were depreciated over the useful life of the asset as stipulated in Schedule II of the Companies Act 2013. This result in escalating the carrying value of the assets in Balance sheet and reducing expenditure in the Statement of Profit and Loss, thus decreasing the loss to that extent in the current and comparative periods. We are not in a position to quantify the impact on the financial statement as the transactions are spread over various financial years. Thus, the company has followed the principles laid out in Accounting Standard -10, “Accounting for Fixed Assets”.
iii. Company continues to recognize deferred tax asset amounting to Rs. 167.15 lakhs represented by unabsorbed depreciation, Gratuity & Bad debts, though there is no virtual certainty about future profits.
The company has not recognized the deferred tax liability relating to depreciation amounting to Rs. 91.23 lakhs cumulated for the prior periods and Rs. 9.80 lakhs relating to the current year as on the balance sheet date. Thus the company has not complied with the provisions of Accounting Standard-22, “Accounting for Taxes on Income”.
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e) The Provisions of sub-section (2) of Section 164 of the Companies Act 2013 is not applicable to the Company vide Notification No.463(E) dated 05-06-2015, ‘Exemptions to Government Companies under section 462 of the Companies Act 2013’.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
g) As required by the provisions of the Section 143(5) of the Companies Act 2013, we have given a statement on the compliance to the Directions issued by the Comptroller and Auditor General of India in “Annexure C”.
h) With respect to the other matters to be included in the Auditor’s 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 following pending litigations which would impact its financial position;
Name of the Statute Nature of the Dues Amount Rs.
Period to which
the amounts relates
Forum where dispute is pending
Amount under protest
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on Scrutiny
assessment28,37,840.00 2006-07 VAT
Appellate Tribunal 28,37,840.00
The Kerala Value Added Tax Act
2013
Demand of Penalty by the Intelligence Officer 14,88,044.00 2006-07 VAT
Appellate Tribunal 14,88,044.00
Income Tax Act 1961
Demand of Tax Assessment 12,45,140.00 2006-07 Dy.Commissioner
(Appeals) 12,45,140.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on Scrutiny
assessment64,16,894.00 2007-08 VAT
Appellate Tribunal 64,16,894.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on Scrutiny
assessment38,11,033.00 2008-09 Dy. Commissioner
(Appeals) 38,11,033.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on Scrutiny
assessment42,59,511.00 2009-10 Dy. Commissioner
(Appeals) 42,59,511.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on Scrutiny
assessment72,72,106.00 2010-11 Dy. Commissioner
(Appeals) 72,72,106.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on Scrutiny
assessment1,09,47,165.00 2011-12 Dy. Commissioner
(Appeals) 1,09,47,165.00
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(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
For M A Moideen & AssociatesChartered Accountants
F.R. No. 002126S Sd/-
M. A. Moideen, B.Sc, FCA, DISA (ICAI) Partner
M.No. 022113
Place: Kochi
Date: 30.06.2017
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“Annexure A” to the Independent Auditors’ Report
Referred to in paragraph 1 under the heading ‘Report on Other Legal & Regulatory Requirement’ of our report of even date to the financial statements of the Company for the year ended March 31, 2016: i. (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets; (b) The Fixed Assets have been physically verified by the management on a quarterly basis,
which in our opinion is reasonable having regard to the size of the company and nature of its business. No material discrepancies between the books records and the physical fixed assets have been noticed during the year.
(c) The title deeds of immovable properties are held in the name of the company. ii. The management has conducted the physical verification of inventory at reasonable intervals. The
damaged and desterilized stock identified on physical verification of the inventory has been properly dealt with in the books of account.
iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
v. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi. As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
vii. (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Value added Tax, Cess and any other statutory dues with the appropriate authorities except the following which has been outstanding for a period of more than six months from the date they become payable :
i. KSINC Gratuity Trust - Rs.3,94,488.70ii. KSINC Provident Fund Trust - Rs. 54,767.90iii. Kerala Construction workers welfare fund - Rs.3,24,251.00iv. Value Added Tax Payable - Rs.2,09,198.00v. Service Tax Payable - Rs. 98,361.00(b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute, except the following
O. S 38, 4th floorGCDA Complex
Marine Drive, Ernakulam - 6Ph: 0484 4000992
M. A Moideen & AssociatesChartered Accountants
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viii. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures. Accordingly, the provisions of clause 3 (viii) of the Order are not applicable to the Company and hence not commented upon.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
xi. The provisions of Section 197 of the Companies Act 2013 is not applicable to the company vide Notification No. 463(E) dated 05.06.2015, ‘Exemptions to the Government Companies under Section 462 of the Companies Act 2013’. Accordingly, the provisions of clause 3 (xi) of the Order are not applicable to the Company and hence not commented upon.
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
Name of the Statute
Nature of the Dues Amount Rs.
Period to which the amounts relates
Forum where dis-pute is pending
Amount under protest
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on
Scrutiny assessment
28,37,840.00 2006-07 Sales TaxAppellate Tribunal 28,37,840.00
The Kerala Value Added Tax Act
2013
Demand of Penalty by the
Intelligence Officer
14,88,044.00 2006-07 Sales Tax Appellate Tribunal 14,88,044.00
Income Tax Act 1961
Demand of Tax Assessment 12,45,140.00 2006-07 Commissioner
(Appeals) 12,45,140.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on
Scrutiny assessment
64,16,894.00 2007-08 Sales Tax Appellate Tribunal 64,16,894.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on
Scrutiny assessment
38,11,033.00 2008-09 Dy. Commissioner (Appeals) 38,11,033.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on
Scrutiny assessment
42,59,511.00 2009-10 High Court of Kerala 42,59,511.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on
Scrutiny assessment
72,72,106.00 2010-11 Dy. Commissioner (Appeals) 72,72,106.00
The Kerala Value Added Tax Act
2013
Demand of Tax and Interest on
Scrutiny assessment
1,09,47,165.00 2011-12 Dy. Commissioner (Appeals) 1,09,47,165.00
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Place: Kochi
Date: 30.06.2017
xiii. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
For M A Moideen & AssociatesChartered Accountants
F.R. No. 002126S Sd/-
M. A. Moideen, B.Sc, FCA, DISA (ICAI) Partner
M.No. 022113
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Annexure - B to the Auditors’ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LIMITED (“the Company”) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
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unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For M A Moideen & AssociatesChartered Accountants
F.R. No. 002126S Sd/-
M. A. Moideen, B.Sc, FCA, DISA (ICAI) Partner
M.No. 022113
Place: Kochi
Date: 30.06.2017
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KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LIMITED
38/924A, Udaya Nagar Road, Gandhi Nagar, Kochi-20
DIRECTORS' REPORT TO THE MEMBERS
Your Directors have great pleasure in presenting the 41th Annual Report of your
Company together with the Audited Statements of Accounts for the year ended 31st
March 2016. During the year, the company incurred a loss of Rs. 281.32 Lakhs against
a loss of Rs. 443.09 in the previous year.
1. FINANCIAL RESULTS
(Rs. in Lakhs)
Particulars 2015-16 2014-15
Income from operations 876.91 720.95
Interest and other receipts 143.23 183.12
Income from vessel construction 230.92 29.18
TOTAL INCOME 1251.05 933.25
Expenses 1315.71 1202.99
Depreciation 168.32 171.31
Prior period adjustments 48.345 2.04
Provision for bad debts ---
TOTAL EXPENSES 1532.38 1376.34
Profit before Tax (281.32) (443.10)
Deferred Taxes
Net Profit (281.32) (443.10)
2. ACTIVITIES OF THE COMPANY:
2.1. Cargo Transportation:
The Company Transported 2.91 Lakh metric tons of cargo during the year
(2015-16) as against 1.80 Lakhs Metric Tons of Cargo during the previous year
(2014-15).
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KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LIMITED
38/924A, Udaya Nagar Road, Gandhi Nagar, Kochi-20
DIRECTORS' REPORT TO THE MEMBERS
Your Directors have great pleasure in presenting the 41th Annual Report of your
Company together with the Audited Statements of Accounts for the year ended 31st
March 2016. During the year, the company incurred a loss of Rs. 281.32 Lakhs against
a loss of Rs. 443.09 in the previous year.
1. FINANCIAL RESULTS
(Rs. in Lakhs)
Particulars 2015-16 2014-15
Income from operations 876.91 720.95
Interest and other receipts 143.23 183.12
Income from vessel construction 230.92 29.18
TOTAL INCOME 1251.05 933.25
Expenses 1315.71 1202.99
Depreciation 168.32 171.31
Prior period adjustments 48.345 2.04
Provision for bad debts ---
TOTAL EXPENSES 1532.38 1376.34
Profit before Tax (281.32) (443.10)
Deferred Taxes
Net Profit (281.32) (443.10)
2. ACTIVITIES OF THE COMPANY:
2.1. Cargo Transportation:
The Company Transported 2.91 Lakh metric tons of cargo during the year
(2015-16) as against 1.80 Lakhs Metric Tons of Cargo during the previous year
(2014-15).
2.2 Passenger Transport:
Your company no longer operates any passenger ferry services. But your
company have plans to re-enter the field with faster and comfortable boats.
2.3 Tourism Sector:
Your company has become a major player in the backwater tourism in Kochi.
Our flagship vessels under the brand name “Sagararani” is operating in full
swing and is getting good collections. But operation of other tourist boats has
to be improved. Tourism will be an important area of operation of the
company in future.
2.4 Slipway Complex:
During the period, (2015-16) we got a work order of construction of one
jhankar for the Perumbalam Panchayath valued at 167. 11 Lakh and one FRP
boat for tourism dept valued at 63.81 Lakhs. The Jhankar was built at our
Slipway. During the preiod, major repair works of our own vessels also were
carried out.
3. SHARE CAPITAL:
During the year (2015-16), the company received an amount of Rs. 156.56 Lakhs as
share capital contribution from the Government.
4. DIRECTORS AND THEIR MEETINGS:
During the year 2015-16, five meetings of the Board of Directors and one meeting
of the audit sub committee was held.
During the reporting year, Shri. V K Baby IAS.,, Shri. M Anilkumar and
Capt. Gauri Prasad Biwal were made directors and Shri. K.P. Chandraprakash
and Capt. Paul N Joseph were ceased to be directors.
5. DIRECTOR'S RESPONSIBILITY STATEMENT U/S 134(5) OF COMPANIES ACT
2013.
It is hereby stated:
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i. That in the preparation of the Annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
ii. That the directors had selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit or loss of the
Company for that period;
iii. That the directors had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
iv. That the directors had prepared the annual accounts on a going concern
basis.
6. AUDITORS
M/s. C A Moideen & Associates, Ernakulam -31, has been appointed as Auditors
for the year 2015-16.
7. IMPORTANT EVENTS SINCE LAST REPORT:
There was no significant event occurred since last report dated 23.12.2016.
8. REPLY TO THE COMMENTS OF THE AUDITORS:
A. The Statutory Auditors has made some comments on the accounts of the
company for the year. To these comments, the Board of Directors offer following
replies:(Comments by the Auditor is in italics)
1.Fixed Assets
i. Till the end of the previous year, the Company followed the policy of capitalizing the repairs/maintenance done to the Barges and Boats which do not increase the future benefits of the existing assets beyond its originally assessed performance/useful life. Such repairs/maintenance were depreciated over the useful life of the asset as stipulated in Schedule II of the Companies Act 2013. This resulted in escalating the carrying value of the assets in Balance sheet and
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i. That in the preparation of the Annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures.
ii. That the directors had selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit or loss of the
Company for that period;
iii. That the directors had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
iv. That the directors had prepared the annual accounts on a going concern
basis.
6. AUDITORS
M/s. C A Moideen & Associates, Ernakulam -31, has been appointed as Auditors
for the year 2015-16.
7. IMPORTANT EVENTS SINCE LAST REPORT:
There was no significant event occurred since last report dated 23.12.2016.
8. REPLY TO THE COMMENTS OF THE AUDITORS:
A. The Statutory Auditors has made some comments on the accounts of the
company for the year. To these comments, the Board of Directors offer following
replies:(Comments by the Auditor is in italics)
1.Fixed Assets
i. Till the end of the previous year, the Company followed the policy of capitalizing the repairs/maintenance done to the Barges and Boats which do not increase the future benefits of the existing assets beyond its originally assessed performance/useful life. Such repairs/maintenance were depreciated over the useful life of the asset as stipulated in Schedule II of the Companies Act 2013. This resulted in escalating the carrying value of the assets in Balance sheet and
reducing expenditure in the Statement of Profit and Loss, thus decreasing the loss to that extent in the current and comparative periods. We are not in a position to quantify the impact on the financial statement as the transactions are spread over various financial years.
ii. The inputs provided for computation of depreciation being, date of addition, completed years of use and residual value are observed to be incorrect. Hence, the charge of depreciation to the Statement of Profit and Loss and the carrying value of the Fixed Assets in the Balance sheet are incorrect to that extent. We are not in a position to quantify its impact on the financial statements.
iii. As per Note 4 of Part C of Schedule II to the Companies Act 2013, if the cost of a part of the asset is significant to the total cost of the asset and the useful life of that part is different from the useful life of the remaining asset, such components should be identified and depreciated separately. Management has not initiated any steps for the component accounting of fixed assets.
Wehavespecificallymentionedthepolicyofthecompanywithrespecttothecapitaladditions.Wehavetakenthefixedassetdetailsfromtheinceptionofthe company from theavailable records. Ifany rectification is requiredwearereadytocorrectthesameifthedetailsareprovidedbytheauditor.
2.A) Trade Receivable of Rs. 180.46 Lakhs (Note No.14), Deposits and others of Rs. 19.25
lakhs (Note No.12 & 16), Advance for goods and expenses of Rs. 67.82 Lakhs (Note No.16), Advance received from Inland Waterways Directorate & income received in advance of Rs. 133.24 Lakhs(Note No.9) and an amount of Rs. 269.19 Lakhs included in Other Current Liabilities (Note No.9) are not confirmed by the parties concerned. The effect, if any, on reconciling the balances are not ascertainable at this stage.
The Company have tried to get reconciliation and confirmation of the balances But as most of the parties concerned are either Government departments or Government agencies, it is difficult to get confirmation in writing.
B) The company had given advance of Rs.76.48 Lakhs towards construction of fibre boats to M/s Aquarius Fibreglass, Goa against an order from State Water Transport Department which was subsequently cancelled. In our opinion, out of this, an amount of Rs.65.19 lakhs which is still pending to be received from the party is considered bad & doubtful. According to the informations and explanations given to provide to us, the matter is pending for arbitration under Transport Secretary under the Government of Kerala. In the event of matter being ruled against the company, the company shall have to write off the said balance. Advance for goods & expenses (Note No.16) is overstated by Rs. 65.19 lakhs and expense is understated by Rs. 65.19 lakhs to the said effect.
The matter is pending for arbitration under Secretary, Transport, Government of Kerala.
3. In our opinion, a further provision for Bad and doubtful debts to the extent of Rs.64.67 lakhs towards Trade Receivables(Note No.14) has to be made since these debtors are outstanding for more than three years and the chances of their recovery is very remote.
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These amounts are mainly due from the Government/Government agencies. The company is hopeful of receiving the amount. That is why no provision was made in respect of these figures.
4.A) Company continues to recognize deferred tax asset amounting to Rs. 167.15 lakhs represented by unabsorbed depreciation, Gratuity & Bad debts, though there is no virtual/reasonable certainty (as the case may be) about future profits. B) The company has not recognized the deferred tax liability relating to depreciation amounting to Rs. 91.23 lakhs cumulated for the prior periods and Rs. 9.80 lakhs relating to the current year as on the balance sheet date.
The Company is of the opinion that in future the company will become profitable and continue to recognise the Deferred Tax Asset of earlier years.
B. Reply to Comments by the Auditor General of India
A. Cash Flow Statement - Cassh and cash equivalants as on closing of the year Rs.28.42 crore.
This includes Rs.4.68 Crores in fixed deposits in treasury and deposits pledged against
overdraft facility availed and hence not readily convertible. Hence the statement is
overstated by Rs. 4.68 Crores as per provisions of the Accounting Standard AS-3. We admit this as a mistake and the treatment of item will be rectified from next accounting year ( 2016-17) on wards.
B. Net cash flow from operations - (-) Rs. 5.35 Crores: ThisincludesRs.0.12CroresinterestpaidwhichisnotinaccordancewiththeAS‐3and
hence isanunderstatementofcash flow to the tuneof the sameamountandRs.1.05
Crores being in the form of “Long term loan and advances”which should have been
classified as “Cash flow from investment activities” and hence resulted in an
overstatementof“CashflowfromOperatingActivities”ofRs.1.05Crores.
We admit this as a mistake and the treatment of these items will be rectified from next accounting year ( 2016-17) on wards.
9. PARTICULARS OF LOANS AND INVESTMENTS (Section 186(4) of Companies
Act):
The company has not made any loan or investment or provided any guarantee to any
21
These amounts are mainly due from the Government/Government agencies. The company is hopeful of receiving the amount. That is why no provision was made in respect of these figures.
4.A) Company continues to recognize deferred tax asset amounting to Rs. 167.15 lakhs represented by unabsorbed depreciation, Gratuity & Bad debts, though there is no virtual/reasonable certainty (as the case may be) about future profits. B) The company has not recognized the deferred tax liability relating to depreciation amounting to Rs. 91.23 lakhs cumulated for the prior periods and Rs. 9.80 lakhs relating to the current year as on the balance sheet date.
The Company is of the opinion that in future the company will become profitable and continue to recognise the Deferred Tax Asset of earlier years.
B. Reply to Comments by the Auditor General of India
A. Cash Flow Statement - Cassh and cash equivalants as on closing of the year Rs.28.42 crore.
This includes Rs.4.68 Crores in fixed deposits in treasury and deposits pledged against
overdraft facility availed and hence not readily convertible. Hence the statement is
overstated by Rs. 4.68 Crores as per provisions of the Accounting Standard AS-3. We admit this as a mistake and the treatment of item will be rectified from next accounting year ( 2016-17) on wards.
B. Net cash flow from operations - (-) Rs. 5.35 Crores: ThisincludesRs.0.12CroresinterestpaidwhichisnotinaccordancewiththeAS‐3and
hence isanunderstatementofcash flow to the tuneof the sameamountandRs.1.05
Crores being in the form of “Long term loan and advances”which should have been
classified as “Cash flow from investment activities” and hence resulted in an
overstatementof“CashflowfromOperatingActivities”ofRs.1.05Crores.
We admit this as a mistake and the treatment of these items will be rectified from next accounting year ( 2016-17) on wards.
9. PARTICULARS OF LOANS AND INVESTMENTS (Section 186(4) of Companies
Act):
The company has not made any loan or investment or provided any guarantee to any
other companies or firms.
10. RELATED PARTY TRANSACTIONS:
The company has not entered in any contracts or have transactions with any company
or firms in which any of the Directors are interested.
11. ADIT COMMITTEE:
The company has constituted an Audit committee with three Directors as
members. The Board has accepted all the commendation of the Audit committee.
12. DEPOSITS:
The company has not accepted any deposits.
13. ACKNOWLEDGEMENT
Your Directors acknowledge with gratitude the trust confidence and co-operation
received from Govt. of Kerala, M/s. FACT, BPCL, IOC, HPCL Cochin Port Trust,
State Water Transport Dept., Mercantile Marine Dept., Inland Waterways
Authority of India, Bankers, the Treasury and other offices and the Officers and
employees of the Corporation for the co-operation and hard work rendered by
them towards the Company.
For and on Behalf of the Board of Directors,
Kochi Chairman
23.12.2017
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25
26
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KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LTD38/924-A, UDAYANAGAR ROAD, GANDHI NAGAR, KOCHI-20
CIN :U61200KL1975SGC002755BALANCE SHEET AS AT 31st MARCH, 2016
Particulars Notes Current Year`
Previous Year`
I. EQUITY AND LIABILITIES (1) Shareholder's Funds (a) Share Capital 3 332,395,700.00 332,395,700.00
(b) Reserves and Surplus 4 (158,235,085.84) (130,103,000.67)
(2) Share Application Money Pending Allotment 5 17,604,300.00 17,604,300.00
(3) Non- Curerent Liabilities(a) Long Term Provisions 6 24,417,818.00 32,496,277.00
(4) Current Liabilities (a) Short -Term Borrowings 7 6,793,001.77 10,978,941.91
(b) Trade Payables 8 8,064,303.97 6,079,980.79
(c) Other Current Liabilities 9 270,788,455.80 285,173,566.11
(d) Short Term Provisions 10 115,000.00 91,200.00
Total 501,943,493.70 554,716,965.14
II. ASSETS
(1) Non - Current Assets
(a) Fixed Assets 11
(i) Tangible assets 11 (a) 129,251,292.00 148,315,303.10
(ii) Capital Work -In - Progress 11 (b) - 753,735.24
(ii) Assets retired from Active use 11 (c) 722,676.00 -
(b) Deferred Tax Assets (net) 29 15,395,556.00 15,395,556.00
(c) Long -Term Loans and Advances 12 15,096,808.41 4,607,247.41
(2) Current Assets(a) Inventories 13 5,880,691.85 4,739,557.29
(b) Trade Receivales 14 18,806,076.10 14,253,611.65
(c) Cash and Cash Equivalents 15 284,232,037.28 328,187,844.45
(d) Short- Term Loans and Advances 16 25,087,465.69 29,177,664.00
(e) Other Current Assets 17 8,310,357.37 9,286,446.00
Total 501,943,493.70 554,716,965.14The accompanying notes form integral part of the financial statements
As per our report of even date attached For MA Moideen & Associates Chartered Accountants Sd/- Sd/- Sd/- Sd/- TOM JOSE IAS N.UNNI V K RAJU Chairman and Managing Director Director Company Secretary PLACE : KOCHI-20 DATE : 24/4/2017
M.A. MOIDEEN. B.Sc., FCA, DISA(ICAI)Managing Partner
M .No: 022113
29
KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LTD 38/924-A, UDAYANAGAR ROAD, GANDHI NAGAR, KOCHI-20
CIN :U61200KL1975SGC002755
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2016
Particulars Notes Current Year`
Previous Year`
I.Revenue
Revenue from Operations 18 8,76,90,750.26 720,95,234.34
Income From Boat Construction 19 2,30,92,153.00 29,17,619.00
Other Income 20 1,43,22,855.94 183,11,975.25
Total Revenue 12,51,05,759.20 9,33,24,828.59II.Expenses Boat Manufacturing Expenses 21 1,60,69,398.93 27,54,496.00
Changes in Inventory - -
Employee Benefits Expenses 22 5,85,40,731.00 754,86,263.35
Finance Cost 23 11,96,941.15 11,91,096.23
Depreciation & Amortisation Expense 11 (a) 1,68,32,482.00 171,30,798.23
Other Expenses 24 5,57,63,498.91 408,67,749.94
Total Expenses 14,84,03,051.99 13,74,30,403.75III. Profit Before exceptional and extraordinary items and Tax (I - II) (2,32,97,292.79) (44105575.16)
IV.Prior Period Adjustments (Net) 25 (4,834,792.38) (2,04,624.00)
V.Profit Before Tax (III - IV) (2,81,32,085.17) (4,43,10,199.16)VI.Tax Expense
Current Tax - -
Deferred Tax - -
VII. Profit(Loss) for the year from continuing operations (V-VI) (2,81,32,085.17) (4,43,10,199.16)
VIII. Profit/(Loss) from discontinuing operations - -
IX. Tax expense of discounting operations - -
X. Profit/(Loss) from Discontinuing operations (VIII - IX) - -
XI. Profit/(Loss) for the period (VII + X) (2,81,32,085.17) (4,43,10,199.16)IX. Earning Per Share :
Before Extra Ordinary items
Basic & Diluted (8.46) (11.29)After Extra Ordinary Items Basic & Diluted (8.46) (11.29)
As per our report of even date attached For MA Moideen & ASSOCIATES Chartered Accountants Sd/- Sd/- Sd/- Sd/- TOM JOSE IAS N.UNNI V K RAJU Chairman and Managing Director Director Company Secretary
PLACE : KOCHI-20 DATE : 24/4/2017
M.A. MOIDEEN. B.Sc., FCA, DISA(ICAI)Managing Partner
M .No: 022113
The accopaniying notes form intergral part of the financial statements
30
Particulars Current Year`
Previous Year`
A. Cash Flow from Operating Activities Net Profit before tax and extra ordinary item (28,132,085.17) (44,310,199.16)
Adjustments for: Depreciation 16,832,482.00 17,130,798.23
Interest paid 1,196,941.15 1,191,096.23
Impairment of Fixed Assets 3,934,744.00 -
Interest received on Fixed Deposit (11,209,436.00) (14,238,299.23)
Operating Profit before working capital changes (17,377,354.02) (40,226,603.95)
Adjustments for:Trade and Other Receivables (9,136,271.51) 14,094,408.38 Inventories (1,141,134.56) 4,213,262.89 Trade and other payables (24,641,386.17) (60,755,047.75)
Cash Generation from Operations (52,296,147.26) (82,673,980.41)Interest paid (1,196,941.15) (1,191,096.23)Provision for taxation - -
Cash flow before extra ordinary items (53,493,087.41) (83,865,076.64)
Extra-ordinary items - -Net Cash from Operating Activities (53,493,087.41) (83,865,076.64)
B. Cash flow from Investing ActivitiesPurchase of Fixed Assets (2,425,891.00) (30,242,956.60)Interest received on Fixed Deposit 11,209,436.00 14,238,299.23 Sale of Fixed Assets 753,735.24 33,529.00
Net Cash From Investing Activities 9,537,280.24 (15,971,128.37)C. Cashflow from Financing Activities
Proceeds from issue of Share Capital/Concersion - 60,000,000.00 Net cash from Financing Activities - 60,000,000.00
Net Increase/Decrease in Cash or Cash Equivalents (A+B+C) (43,955,808.17) (39,836,205.01)Cash or Cash Equivalents as on beginning of the year 328,187,844.45 368,024,049.46 Cash and Cash Equivalents as on closing of the year 284,232,037.28 328,187,844.45
As per our report of even date attached For M A Moideen & ASSOCIATES Chartered Accountants Sd/- Sd/- Sd/- Sd/- TOM JOSE IAS N.UNNI V K RAJU Chairman and Managing Director Director Company Secretary PLACE : KOCHI-20 DATE : 24/04/2017
M.A. MOIDEEN. B.Sc., FCA, DISA(ICAI)Managing Partner
M .No: 022113
KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LIMITED 38/924-A, Udayanagar Road, Gandhi Nagar, Kochi-20
CIN :U61200KL1975SGC002755 CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2016
Note:1. Comparitive figures have been regrouped wherever necessary.2. The cashflow statement has been prepared under the indirect method as set out in the Accounting Standard -3 on cash flow statements issued by the Institute of Chartered Accountants of India.
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NOTES TO FINANCIAL STATEMENTS1. Background
KSINC, a Government of Kerala undertaking, was formed by the amalgamation of the Kerala Inland Navigation Corporation (KINCO) established in 1975, and the Kerala Shipping Corporation (KSC) established in 1974. The company is engaged in inland water transport, backwater tourism and construction and repair of small crafts and vessels.
2. Significant accounting policies
The significant Accounting Policies followed by the company are as stated below:
Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year .
The company is a Small and Medium Company as defined under the Companies (Accounting Standards) Rules, 2006 and accordingly has complied with the Accounting Standards applicable to Small and Medium Companies only.
Use of estimates
The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.
Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation . The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets.
Cost incurred for reconstruction of vessels, which in the opinion of management, that increases substantially the useful life of the assets is capitalised.
Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet as current assets.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
KERALA SHIPPING AND INLAND NAVIGATION CORPORATION LTD 38/924-A, Udayanagar Road, Gandhi Nagar, Kochi-20
32
Depreciation and amortisation
Depreciation on tangible assets has been provided under Written Down Value Method over the useful life of the assets estimated by the management which is in line with the terms prescribed in Schedule II to The Companies Act, 2013. Depreciation for assets purchased/sold during the period is proportionately charged.
The management estimates the useful life of the fixed assets as follows:
Boats 28 years
Barges 28 years
Fuel Tanker 25 years
Jetty 15 years
Office Equipments 5 years
Machinery 15 years
Office Furniture & Fittings 10 years
Vehicles 8 years
Library Books 5 years
Tools & Plants 15 years
Workshop Building 30 years
Office Building 60 years
Dredger Utility Craft 28 years
Watersports Equipments 13 years
Firefighting Equipments 5 years
Leasehold land is amortised over the duration of the lease.
During the previous year, the company has reviewed the useful life of its assets as per The Companies Act
2013 and has re-estimated the same accordingly.
Inventories
Inventories are valued at cost or net realisable value whichever is less on FIFO basis. Inventories include
Stores and Spares and HSD.
Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent
that there is no uncertainty in receiving the claims.
Revenue recognition
a) Revenue from Job work/Maintenance contracts are recognised under percentage of completion method as per the revised AS 7 issued by the Institute of Chartered Accountants of India.
b) Revenue from the Boat construction and loss incurred thereon are accounted as per AS 7 “Accounting for construction contract”. Stage of completion has been taken on the basis of physical completion of each contract upto 31st of March. The amount of contract revenue has been recognized on the basis of percentage completion of contract.
c) Revenue from cargo transportation and tourist operation service are recognized on accrual basis, after providing the service.
d) Scrap/waste material are accounted for on realization basis.
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Other income
Interest income is accounted on a time proportion basis taking into account the amount outstanding and the rate applicable.
Government grants, subsidies and export incentives
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. Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.
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.
Other government grants and subsidies 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.
Employee benefits
Employee benefits include provident fund, gratuity fund and leave salary.
Defined contribution plans
The Company’s contribution to provident fund is considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.
Defined benefit plans
Gratuity:
Liability for gratuity of permanent employees is covered under a Group Gratuity Scheme of Life Insurance Corporation of India. Annual contributions to the scheme are charged off to revenue. LIC does the actuarial valuation as on 31st of March of each year. Provision for gratuity payable to other employees are made on the basis of total amount of gratuity accrued up to the date of Balance sheet(31st March) based on Company’s own calculations.
Short-term employee benefits
Liability for leave encashment benefit is accounted for based on the assumption that such benefits are payable to all employees at the end of the accounting year. As per the policy of the company employees can surrender full earned leave keeping a minimum balance of 10 Earned Leave at credit ie., as far as the company is concerned encashment of EL is not a retirement benefit, but a regular benefit to the employee.
Borrowing costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in the Statement of Profit and Loss in the period in which they are incurred.
Taxes on income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax assets are reviewed at each Balance Sheet date based on the
34
developments during the year and available case laws, to reassess realisation/liabilities. The company has not recognised Deferred Tax Asset as a matter of prudence.Deferred tax assets in respect of other items are recognised only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised.
Impairment of Assets
The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the present value using the weighted average cost of capital.
Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the 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. Contingent liabilities are disclosed in the Notes.
ParticularsAs at 31 March, 2016 As at 31 March, 2015
Number of Shares `
Number of shares `
A. AuthorisedEquity shares of Rs.100/- each 3,500,000.00 350,000,000.00 3,500,000.00 350,000,000.00B. Issued, Subscribed and Fully Paid-up CapitalEquity shares of Rs.100/- each fully paid up 3,323,957.00 332,395,700.00 3,323,957.00 332,395,700.00
3.1 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
ParticularsAs at 31st March, 2016 As at 31st March, 2015
Number of shares `
Number of shares `
At the Beginning of the Period 3,323,957.00 332,395,700.00 2,723,957.00 272,395,700.00
Add : Issued during the Period - - 600,000.00 60,000,000.00
Outstanding at the end of the Period 3,323,957.00 332,395,700.00 3,323,957.00 332,395,700.00
3.2 Terms/Rights attached to the Equity Shares:The Company has only one class of Equity Shares having a par value of Rs.100 per share.Each holder of the Equity Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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 shareholders.
SHARE CAPITAL
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3.3 Details of Shares held by each share holder holding more than 5% shares.
Name of the ShareholderAs at 31st March, 2016 As at 31st March, 2015
Number of shares held % of holding Number of
shares held % of holding
Government of Kerala 3320931 99.91 3320931 99.91
As at 31st March 2016
As at 31st March 2015
3.4 Shares in respect of each class in the compa-ny held by its holding company or its ultimate hold-ing company including shares held by its subsidiar-ies or associates of the holding company or by the subsidiaries or associate of the holding company or the ulti-mate holding company in aggregate :
Nil Nil
3.5 Shares reserved for issue under options and contracts /commitments Nil Nil
3.6 During the last Five years1 ) Aggregate Number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash Nil Nil
2) Aggregate number and class of shares allotted as fully paid up by way of Bonus shares Nil Nil
3) Aggregate number and class of shares bought back Nil Nil3.7 Terms if any of securities convertible into Equity/ Prefer-ence shares issued along with the earliest date of conversion in descending order starting from the farthest such date
Nil Nil
3.8 Calls UnpaidBy Directors Nil NilBy Officers Nil Nil 4. RESERVES & SURPLUS A. Capital Reserve 4,222,848.15 4,222,848.15 B. Profit & Loss Account Opening balance (134,325,848.82) (90,015,649.66) Add: Profit for the year (28,132,085.17) (44,310,199.16) Closing Balance (162,457,933.99) (134,325,848.82)
(158,235,085.84) (130,103,000.67)5. SHARE APPLICATION MONEY PENDING FOR ALLOTMENTCompany decided to issue 24,00,000 equity shares of `100 at par value to the Governor of Kerala. The Rights of the shares are in line with existing shares of the company. The authorised capital of the company `35 crores which is insufficient to cover the present share capital and share application money. Out of the share application money received amounting to `24 Crores, only shares worth `1,76,04,300/- can be issued under the present authorised capital. Balance amount of 22,23,95,700/- is treated as current liability.
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As at 31 st March 2016
As at 31 st March 2015
Amount of shares with face value @ Rs.100 to be issued to Governor of Kerala(Due to insufficient Authorised Capital shares that can be issued is only upto `1,76,04,300/-)
240,000,000.00
240,000,000.00
Number of shares proposed to be issued; 2,400,000 2,400,000
The amount of premium, if any - - Whether the company has sufficient authorized share capital to cover the share capital amount on allotment of shares out of share application money;
No. Authorised capital at present is `35 Crores
Interest accrued on amount due for refund - -6. LONG TERM PROVISIONSProvision for Employee Benefits
Gratuity 24,417,818.00 32,496,277.00
24,417,818.00 32,496,277.00
7. SHORT TERM BORROWINGS
Overdraft from The Dhanalakshmi Bank Limited. 6,793,001.77 10,978,941.91
(Secured by way of pledge of Deposit Receipt of `1 Crore) 6,793,001.77 10,978,941.91
8. TRADE PAYABLES
Sundry Creditors: - For Purchases 6,218,619.97 5,993,573.79 - For Capital goods 1,108,134.00 86,407.00 - For Expenses 737,550.00 -
8,064,303.97 6,079,980.79
9. OTHER CURRENT LIABILITIES
Share Application Money pending allotment 222,395,700.00 222,395,700.00
Income Received in Advance 137,549.75 295,038.75
Unclaimed Dividend - 6,840.00 Deferred Govt Grant 1,025,710.00 1,025,710.00
Advance from Inland Waterways Directorate 13,186,443.00 13,308,543.00
Salary and Wages Payable (As per Revision) 1,916,151.87 17,292,405.87
Other Current Liabilities 32,126,901.18 30,849,328.49
270,788,455.80 285,173,566.11 10. SHORT TERM PROVISIONS Provision for audit fees 115,000.00 91,200.00
115,000.00 91,200.00
37
Cat
egor
y
Cost
Depr
ecia
tion
Net C
arry
ing
Amou
nt
As a
t01
.04.
2015
Addi
tion
Dele
tions
As a
t31
.03.
2016
upt t
o 31
.03.
2016
For t
he
Perio
d
Dele
tions
/Ad
just
-m
ents
Upto
31
.03.
2016
As a
t 31
.03.
2016
As a
t31
.03.
2015
Leas
ehol
d La
nd
300
,000
.00
-
-
30
0,00
0.00
41,0
06.0
0
3,
867.
00
-
44
,873
.00
25
5,12
7.00
258,
994.
00
Free
hol
d La
nd 1
,188
,090
.00
-
-
1,18
8,09
0.00
-
-
-
-
1,1
88,0
90.0
0 1
,188
,090
.00
Boat
s 1
4,02
4,94
2.67
- -
14,
024,
942.
67
5,5
99,1
29.6
7 90
9,33
6.00
-
6,50
8,46
5.67
7,
516,
477.
00
8,42
5,81
3.00
Barg
es15
3,38
3,69
3.96
-
-
153,
383,
693.
96
50,
903,
148.
96
10,5
12,4
57.0
0
- 61
,415
,605
.96
91,
968,
088.
00
102,
480,
545.
10
Fuel
tan
ker
30,
315.
00
-
-
3
0,31
5.00
29
,936
.00
-
-
29,
936.
00
379.
00
379.
00
Jetty
11,
087,
740.
90
535,
779.
00
- 1
1,62
3,51
9.90
4,
222,
503.
80
1,3
03,4
09.0
0 -
5,5
25,9
12.8
0 6
,097
,607
.10
6,
865,
237.
10
Offi
ce
Equi
pmen
ts 3
,265
,648
.39
8,61
0.00
- 3
,274
,258
.39
3,0
04,6
86.3
9 1
15,9
33.0
0
- 3
,120
,619
.39
153
,639
.00
260
,962
.00
Mac
hine
ry 1
4,71
7,67
2.06
-
-
14
,717
,672
.06
8,24
5,15
2.06
1,
234,
405.
00
- 9,
479,
557.
06
5,2
38,1
15.0
0 6
,472
,520
.00
Offi
ce F
urni
ture
&
Fitti
ngs
7,70
4,27
9.86
5,
300.
00
-
7,7
09,5
79.8
6 6,
214,
352.
96
44
8,01
4.00
-
6,6
62,3
66.9
6
1,04
7,21
2.90
1
,489
,926
.90
Vehi
cles
4,1
38,9
90.6
6
-
-
4,1
38,9
90.6
6 2
,588
,591
.66
499
,653
.00
-
3,0
88,2
44.6
6 1
,050
,746
.00
1,5
50,3
99.0
0
Libr
ary
Book
s 4
4,38
4.00
-
-
44,3
84.0
0 4
2,77
8.00
-
- 4
2,77
8.00
1
,606
.00
1,60
6.00
Tool
s &
Plan
ts19
,445
.90
-
- 1
9,44
5.90
19,2
90.9
0
-
-
19,2
90.9
0
15
5.00
155.
00
Wor
ksho
p Bu
ildin
g 4
,569
,522
.47
1,87
6,20
2.00
- 6
,445
,724
.47
1,63
5,68
7.47
38
2,67
3.00
-
2,01
8,36
0.47
4,
427,
364.
00
2,93
3,83
5.00
Offi
ce B
uild
ing
14,
251,
105.
48
-
-
14,
251,
105.
48
6,37
7,43
2.48
38
5,02
3.00
-
6,7
62,4
55.4
8 7,
488,
650.
00
7,87
3,67
3.00
Dre
dger
Util
ity
Cra
ft 2
,517
,476
.20
-
- 2
,517
,476
.20
93
6,17
9.20
1
60,8
18.0
0
- 1
,096
,997
.20
1,4
20,4
79.0
0 1
,581
,297
.00
Wat
ersp
orts
Eq
uipm
ents
2
,056
,368
.00
-
-
2,0
56,3
68.0
0 35
8,30
0.00
3
49,4
62.0
0 -
7
07,7
62.0
0 1,
348,
606.
00
1,6
98,0
68.0
0
Fire
fight
ing
Equ
ipm
ents
2
26,8
19.1
0
-
- 2
26,8
19.1
0
177,
868.
10
-
-
177
,868
.10
48,
951.
00
48,9
51.0
0
Tota
l23
3,52
6,49
4.65
2
,425
,891
.00
- 23
5,95
2,38
5.65
9
0,39
6,04
3.65
16
,305
,050
.00
-
106,
701,
093.
65
129,
251,
292.
00
143,
130,
451.
10
PREV
IOU
S
YEAR
212,
764,
755.
03
30,5
00,8
77.1
3 47
2,50
0.00
24
2,79
3,13
2.16
7
7,79
1,41
5.83
17
,130
,798
.23
444,
385.
00
94,
477,
829.
06
148,
315,
303.
10
134,
973,
339.
20
* inc
lude
s as
sets
retir
ed fr
om a
ctiv
e us
e
11. F
IXED
ASS
ETS
11. a
) Tan
gibl
e A
sset
s
38
Cat
egor
y
Cos
tD
epre
ciat
ion
Net
Car
ryin
g A
mou
nt
As
at01
.04.
2015
Add
ition
Del
etio
nsA
s at
31.0
3.20
16U
pto
31.0
3.20
15Fo
r the
Pe
riod
Impa
irmen
t Lo
ssU
pto
31.0
3.20
16A
s at
31.0
3.20
16A
s at
31.0
3.20
15
Bar
ge- M
B
Am
ooly
a 9
,049
,792
.41
-
-
9,0
49,7
92.4
1 3,
908,
205.
41
522,
881.
00
3,9
34,7
44.0
0 8,
365,
830.
41
683
,962
.00
5,1
41,5
87.0
0
Boa
t Am
bili
216
,845
.00
-
-
2
16,8
45.0
0 17
3,58
0.00
4,
551.
00
- 1
78,1
31.0
0 3
8,71
4.00
4
3,26
5.00
Tota
l 9
,266
,637
.41
-
-
9,2
66,6
37.4
1 4,
081,
785.
41
527
,432
.00
3,9
34,7
44.0
0 8,
543,
961.
41
722,
676.
00
5,1
84,8
52.0
0
Cat
egor
y O
peni
ng
Add
ition
s E
xpen
sed
off D
urin
g th
e ye
ar
Clo
sing
JLC
2
753
,735
.24
-
7
53,7
35.2
4
-
Tota
l
753
,735
.24
-
7
53,7
35.2
4
-
PR
EV
IOU
S Y
EA
R
1
,011
,655
.97
2
,531
,247
.95
2,7
89,1
68.6
8
753,
735.
24
11 (b
). C
apita
l Wor
k-in
-pro
gres
s
11 (c
). A
sset
s R
etire
d fr
om A
ctiv
e U
se
1) Th
e m
utat
ion
of 2
4.96
cent
s of l
and
purc
hase
d fr
om G
CD
A a
s per
the
sale
dee
d N
o.19
50 d
t.26/
04/1
993
(Sur
very
No.
368/
1) is
yet
to b
e eff
ecte
d w
ith th
e Re
venu
e D
epar
tmen
t, sin
ce G
CD
A h
as n
ot d
one
mut
atio
n of
sam
e la
nd to
thei
r fav
our.
The
Com
pany
has
take
n up
the
mat
ter w
ith G
CD
A fo
r get
ting
the
mut
atio
n in
favo
ur o
f the
com
pany
2) B
uild
ing
cost
ing
Rs.1
,16,
23,5
19.9
0 co
nstr
ucte
d at
4 le
ased
Boa
t Jet
ties,
havi
ng b
ook
valu
e of
Rs.6
0,97
,607
.10
as a
t 31/
03/2
016
is ac
-co
unte
d as
fixe
d as
sets
.3)
Com
pany
has
take
n on
leas
e 74
.10
cent
s of l
and
at Th
evar
a fr
om K
SRTC
for a
mon
thly
rent
of R
s.500
/- o
n 16
/01/
1978
. The
leas
e re
nt
due f
rom
16/
01/1
978
to 3
1/03
/201
6 am
ount
ing
to R
s.2,2
9,00
0/-(
Rent
out
stan
ding
for t
his y
ear R
s.600
0/-)
has
not
bee
n pa
id a
s the
form
al
leas
e agr
eem
ent i
s not
exec
uted
due
to n
on-a
gree
men
t of c
erta
in cl
ause
s of d
raft
leas
e agr
eem
ent s
ent b
y K
SRTC
. Th
e com
pany
has
mad
e pr
ovisi
on fo
r the
ent
ire a
mou
nt d
ue a
s on
date
.4)
Bar
ge M
.B A
moo
lya
havi
ng a
boo
k va
lue
of R
s. 6,
83,9
62/-
as o
n 31
/03/
2016
ret
ired
from
act
ive
use
and
the
sam
e w
as so
ld d
urin
g th
e ye
ar 2
016-
17 fo
r Rs
. 6,8
3,96
2/-.
Sinc
e th
e ac
tual
sal
e pr
ice
is th
e m
ore
real
iabl
e es
timat
e of
the
Net
rea
lisab
le v
alue
, the
sam
e ha
s be
en
cons
ider
ed as
the ‘
Net
Sal
e Pric
e’. Im
pairm
ent l
oss o
f Rs.
39,3
4,74
4/- i
s rec
ogni
sed
in th
e cur
rent
year
Sta
tem
ent o
f Pro
fit an
d Lo
ss ac
coun
t. 5)
Ope
ning
cap
ital w
ork
in p
rogr
ess o
f Rs.7
,75,
735.
24 p
erta
inin
g to
JLC
2 ha
s bee
n ex
pens
ed o
ff du
ring
the
year
.6)
Boa
t Am
bili
has r
etire
d fr
om ac
tive u
se an
d th
e net
sale
pric
e as o
n 31
st M
arch
201
6 is
not d
eter
min
able
due
to th
e lac
k of
info
rmat
ion.
H
ence
the
sam
e is
show
n at
boo
k va
lue.
39
12. LONG TERM LOANS & ADVANCESUnsecured,Considered GoodDeposits and Others 437,109.00 358,004.00 Capital Advance 10,410,360.00 - Advance to employees 50,275.09 50,179.09 Sales Tax Pre-deposit 4,185,555.00 4,185,555.00 DoubtfulDeposits and Others 13,509.32 13,509.32 15,096,808.41 4,607,247.41 13. INVENTORIES(AS TAKEN , VALUED AND CERTIFIED BY THE MANAGEMENT)Stores, spares & components 4,950,037.22 3,789,467.50 Oil & Lubricants 930,654.63 950,089.79
5,880,691.85 4,739,557.29
14. TRADE RECEIVABLETrade receivables outstanding for a period exceeding six months from the date they were due for payment.Unsecured Considered Good 2,652,924.99 7,966,689.55
Considered Doubtful 16,510,753.85 10,122,508.02 Total 19,163,678.84 18,089,197.57 Less: Provision for Doubtful Debts 10,122,508.02 10,122,508.02 Other Trade receivables 9,041,170.82 7,966,689.55
Considered Good 8,925,438.28 6,286,922.10
17,966,609.10 14,253,611.65 15. CASH AND CASH EQUIVALENTS a) Cash in hand 83,137.00 67,019.00 b) Balance with Banks: In Current Account 611,236.31 232,200.11 In Savings Bank Account 17,557.04 16,873.51 In Fixed Deposit Account 6,852,104.93 14,466,139.83 c) Other Balances Balance with Treasury In Fixed Deposit (`1CR pledged for Bank OD & `3CR for Bank Guarantees) 40,000,000.00 40,000,000.00
In Savings Bank Account 236,668,002.00 273,405,612.00 284,232,037.28 328,187,844.45 1.Total balances held with treasury to extent held as margin money or security against borrowings,guarantees or other commitments 40,000,000.00 40,000,000.00
2.Deposits with more than twelve months maturity 43,000,000.00 41,042,796.00 3.Maximum amount held with District Treasury at any time during the year 321,974,934.00 345,975,488.00
40
16. SHORT TERM LOANS & ADVANCES
Unsecured,Considered Good
Prepaid Expenses 469,263.00 428,892.00
Tax Deducted at Source 16,291,233.00 18,378,777.00
Advance for goods & expenses 261,884.69 2,292,445.00 Advance to employees 438,726.00 481,441.00 Deposits and Others 1,106,700.00 1,076,450.00
Doubtful
Advance for goods & expenses 6,519,659.00 6,519,659.00
Deposits and Others 368,517.00 368,517.00 Less: Provision for bad and doubtful Deposits and Others (368,517.00) (368,517.00)
25,087,465.69 29,177,664.00 17. OTHER CURRENT ASSETSInterest Accrued 7,423,490.37 9,270,646.00
Subsidy receivable from State Government 839,467.00 -Rent Receivable 47,400.00 15,800.00 8,310,357.37 9,286,446.0018. REVENUE FROM OPERATIONSSALE OF SERVICES
Income from Cargo Transportation 64,492,890.26 36,869,898.69 Income from Operation of Sagara Rani 13,672,623.00 14,418,375.00
Income from Passenger Service 2,860,061.00 2,344,100.00
Income from Contract works 5,765,376.00 5,241,089.00
Income from Job works 230,683.00 12,829,475.50
Income from Slipway 432,017.00 111,507.00
Income from Watersports 115,000.00 280,789.15
Income from 12th FC work 122,100.00 -
87,690,750.26 72,095,234.34 19.INCOME FROM BOAT CONSTRUCTION Jhankar 16,711,200.00 -
FRP Boats 6,380,953.00 2,917,619.00
23,092,153.00 2,917,619.00 20. OTHER INCOME Interest (Gross) 11,209,436.00 14,238,299.23 Interest on Income Tax Refund 651,294.00 -
Profit on Sale of Assets - 45,471.00
Sundry Creditors Written back - 1,839.00
Other Liabilities Written back - 203,342.40
Subsidy Received 839,467.00 -
Income from Scrap 808,107.50 1,291,188.50
Compensation against loss/damage 229,841.00 2,036,608.50 Miscellaneous Receipts 584,710.44 495,226.62 14,322,855.94 18,311,975.25
41
21. BOAT MANUFACTURING EXPENSESJhankar 10,563,209.93 173,999.00 FRP Boats 5,506,190.00 2,580,497.00 16,069,399.93 2,754,496.00 22. EMPLOYEES BENEFIT EXPENSESSalaries, Wages & Allowances 47,388,103.20 47,162,268.35 Bonus & Exgratia 1,358,455.00 1,063,452.00 Earned Leave Surrender Salary 3,411,571.00 3,174,566.00 Festival Allowance 4,800.00 2,200.00 Medical Expenses 74,662.00 48,328.00 Staff Welfare Scheme 785,627.80 755,347.00 Training to Staff 4,874.00 6,000.00 Uniforms 45,976.00 178,835.00 Leave Salary and Pension contribution - 38,105.00 Contribution to PF and other FundsEmployer's Contribution to PF 2,824,425.00 3,204,841.00 Employer's Contribution to ESI 5,800.00 56,830.00 Employer's Contribution to Labour Welfare Fund 1,296.00 1,472.00 Gratuity 2,635,141.00 19,794,019.00 58,540,731.00 75,486,263.35 23. FINANCE COST Interest on OD and Bank charges 1,196,941.15 1,191,096.23 1,196,941.15 1,191,096.23 24. OTHER EXPENSES Remuneration of Auditors - Audit fees 115,000.00 91,200.00 Consumption of Stores & Spares 2,522,086.53 1,979,227.02 Consumption of Fuel 5,936,684.13 4,788,652.38 Rent 2,304,752.00 2,220,618.00 Repair & Maintenance - Jetties & Buildings 319,093.00 549,010.00 Repair & Maintenance 15,669,636.89 1,327,689.15 Insurance 625,172.00 332,422.00 Cargo Transportation Expenses 6,138,601.70 1,363,569.79 Operating Expenses - Sagararani 3,239,163.00 3,719,632.00 Expenses on Contract works 4,488,125.00 4,275,225.00 Expenses on Jobworks 151,800.00 7,193,321.57 Expense on Water Sports 91,095.00 1,400,606.00 Expenses on 12FC Works 111,000.00 247,520.90 Legal, Professional & Other Charges 989,597.00 1,858,776.00 Other operating expenses 3,910,248.60 1,522,144.55 Loss on Impairment of Asset 3,934,744.00 - Miscellaneous Expenses 5,216,700.06 7,998,135.58 55,763,498.91 40,867,749.94
42
25. PRIOR PERIOD ADJUSTMENTSExpenses Income from Boat Construction 257,143.00 - Repairs & Maintenance 846,735.24 - Bonus & Exgratia 7,878.00 -Salaries & Wages 2,824,441.14 -Income from Cargo transportation - 310,930.00 Excess Receivable Reversed 943,120.00 13,150.00 4,879,317.38 324,080.00 IncomeStores and spares consumed - 98,000.00 Income form Jhankar 13,260.00 -Rent 15,800.00 -
Electricity Charges - 10,474.00 Excess Payable Reversed 15,465.00 10,982.00
44,525.00 119,456.00 Total (4,834,792.38) (204,624.00)
26. CONTINGENT LIABILITIES AND COMMITMENTSContingent liabilities not provided for in the accounts: Particulars Current Year Previous Year 1.Claims against the company not acknowledged as debts 19,471,676.35 17,842,474.50
2.Counter guarantees given to banks for guarantees issued by them 7,950,340.00 7,080,950.00
3.Other money for which company is contingently liable
a)Demand on KVAT Assessment against which company filed ap-peal before the Appellate Tribunal pending for disposal for the year 2006-07
2,837,840.00
2,837,840.00
b)Demand of penalty by Investigating Officer, KVAT against which the company filed appeal before the Appellate Tribunal is pending for disposal
1,488,044.00
1,488,044.00
c) Demand on Income tax for the Assessment Year 2007-08 against appeal filed before the Commissioner of Income tax, Kochi, pend-ing for disposal
1,245,140.00
1,245,140.00
d) Demand on KVAT Assessment against which company filed ap-peal before the Appellate Tribunal pending for disposal for the year 2007-08
6,416,894.00
6,416,894.00
e) Demand on KVAT Assessment against which company filed ap-peal before the Dy. Commissioner(Appeals) pending for disposal for the year 2008-09
3,811,033.00 3,811,033.00
43
f) Demand on KVAT Assessment against which company filed ap-peal before the Honourable High Court of Kerala pending for dis-posal for the year 2009-10
4,259,511.00 4,259,511.00
g) Demand on KVAT Assessment against which company filed ap-peal before the Dy. Commissioner(Appeals) pending for disposal for the year 2010-11
7,272,106.00 -
h) Demand on KVAT Assessment against which company filed ap-peal before the Dy. Commissioner(Appeals) pending for disposal for the year 2011-12
10,947,165.00 -
27. Basic and diluted earnings per share (EPS), of face value of `100/-, has been calculated as under:
Current Year Previous Year
NumeratorLoss (Before Extraordinary items) (28,132,085.17) (44,310,199.16)Loss (After Extraordinary items) (28,132,085.17) (44,310,199.16)
Denominator
Weighted average no. of equity shares outstanding Basic 3,323,957.00 3,923,957.00 Diluted 3,323,957.00 3,923,957.00 Earnings Per Share Basic and Diluted before extra ordinary items (8.46) (11.29)Basic and Diluted after extra ordinary items (8.46) (11.29)
28. DISCLOSURE IN ACCORDANCE WITH AS 15 ON EMPLOYEE BENEFITS
a) Defined Contribution Plans
Contribution to Recognised Provident Fund 2,824,425.00 3,204,841.00
Contribution to Employee’s State Insurance 5,800.00 56,830.00
TOTAL 2,830,225.00 3,261,671.00
b) Defined Benefit Plan-Gratuity
Present Value of Obligations at the Beginning 3,40,36,354 .00 23,833,750.00
Interest Cost 2,780,986.00 1,906,700.00
Current Service Cost 1,451,954.00 1,237,334.00
Benefits paid from Fund - (1,571,127.00)
Benefits paid directly by the Company (10,247,092.00) -
Actuarial loss on obligations (3,995,879.00) 2,409,210.00
Present Value of Obligations at the end of the period 24,026,323.00 27,815,867.00
Includes the provisions made for the casual employees based on company’s own computation (Refer Note 28 c.)
b) Change in plan assetsFair value of plan assets at the beginning of the year 1,540,077.00 2,175,353.00
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Expected return on plan assets 123,206.00 109,241.00
Actuarial (gain)/loss 5,691.00 -
Contributions 439,432.00 826,610.00
Benefits paid - (1,571,127.00)
Fair value of plan assets at the end of the year 2,108,406.00 1,540,077.00
c) Reconciliation of present value of obligation and the fair value of plan assets
Present value of projected benefit obligation at the end of the year 24,026,323.00 27,815,867.00
Funded status of the plans 2,108,406.00 1,540,077.00
Funded status amount of liability recognised in the balance sheet 21,917,917.00 26,275,790.00
Add: Provision made for Casual Employees - 5,008,501.00 Add: Provision made for Retired Employees 2,499,901.00 1,211,986.00
Gross Provision 24,417,818.00 32,496,277.00
d) The components of net gratuity costs are reflected below
Service Cost 1,451,954.00 1,237,334.00
Interest Cost 2,780,986.00 1,906,700.00
Expected return on plan assets (123,206.00) (109,241.00)
Recognised net actuarial (gain)/loss (4,001,570.00) 2,409,210.00
Net gratuity costs 108,164.00 5,444,003.00
e) Following are the Principal Actuarial Assumptions used at the balance sheet date:
Discount Rate 8% p.a. 8% p.a.
Compensation Escalation Rate 5% p.a. 7% p.a.
29. DEFERRED TAX ASSET
Head of Account31.03.2015 Current period 31.03.2016
Asset/(Liability) Asset Liability Asset/
(Liability)
Depreciation (1,319,965.00) -
- (1,319,965.00)
Unabsorbed Deprecia-tion 7,446,393.00
-
- 7,446,393.00
Provision for Gratuity 6,626,669.00 -
- 6,626,669.00
Bad debts 2,642,459.00 -
- 2,642,459.00
15,395,556.00 -
- 15,395,556.00
30. The details of Provisions as per AS 29 are given below:
Particulars Opening Blance
Additions/Reversals Closing Balance
Provision for Gratuity 32,496,277.00 8,078,459.00) 24,417,818.00
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31. ADDITIONAL INFORMATION TO STATEMENT OF PROFIT LOSS
Current Year Previous Year
a) CIF Value of imports made during the period Nil Nil
b) Earnings in foreign exchange Nil Nil
c) Expenditure in foreign currency Nil Nil
d) Amount remitted during the period in foreign currency Nil Nil
32. The management has initiated the process of identifying enterprises which have provided goods and ser-vices to the company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006.
The amount payable to Micro and Small enterprises have been determined on the basis of information available with the management. Other Disclosures with respect to amounts payable to Micro and Small Enterprises are as follows;
Particulars Current Year Previous Year Principal amount remaining unpaid to Micro and Small Enter-prises as at the end of accounting year - -
Interest due thereon - - Amount of interest paid by the company along with the amount of the payment made to the supplier beyond the appointed day during the year.
- -
Amount of interest due and payable for the period of delay in mak-ing payment (which have been paid,but beyond the appointed day)but without adding the interest specified under Micro,Small and Medium Enterprises Development Act,2006.
- -
Amount of interest accrued and remaining unpaid at the end of the accounting year. - -
Unpaid interest brought forward to current year. - -
33. RELATED PARTY DISCLOSURES I. Details of the Related Parties
Name Nature of the RelationshipK Mohandas Chairman till 28-07-2015
Tom Jose Chairman & Managing Director
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II. Transactions Current Year Previous Year
Honararium PaidK Mohandas 78,000.00 240,000.00
Rent PaidTom Jose 369,000.00 360,000.00 Rent Recovered Tom Jose 189,600.00 189,600.00 III. Amount outstanding at the end of the year
As at 31st March 2016 As at 31st March 2015 Value of Accomodation recoverable 47,400.00 15,800.00
34. Balance of creditors, debtors, loans and advances and fixed deposits are subject to confirmation and reconciliation.
35. Previous year figures are regrouped/recast wherever necessary to suit current years layout.
As per our report of even date attached
For M A Moideen & AssociatesChartered Accountants
F.R. No. 002126 S
Sd/- M.A. MOIDEEN. B.Sc., FCA, DISA(ICAI)
Managing PartnerM.No. 022113
Sd/- Sd/- Sd/- TOM JOSE IAS N. UNNI V K RAJUChairman & Managing Director Director Company Secretary DIN:01971467 DIN:07171912 M.No. A9488 Place : Kochi 20 Date : 24/04/2017
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