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ANNUAL REPORT 2011-12 A journey from paddy to power ANNUAL REPORT 2012-14 For the 18 month period ended March 31, 2014 A journey from paddy to power
Transcript of A journey from paddy to power - lakshmigroup.in · A journey from paddy to power ANNUAL REPORT...
ANNUAL REPORT 2011-12
A journey from paddy to power
ANNUAL REPORT 2012-14
For the 18 month period ended March 31, 2014
A journey from paddy to power
BOARD OF DIRECTORS
Mr. Balbir Singh Uppal Chairman & Managing Director
Mr. Janak Raj Singh Joint Managing Director
Mr. I.S.Gumber Executive Director
Mrs. Vijay Luxmi Director
Mr. Amarjit Singh Director
Mr. Nirdosh Bali Director
Mr.V.K.Mishra Director
Mr.KanwalJit Singh Jolly Director
BANKERSPunjab National Bank Syndicate BankAxis BankICICI Bank
STATUTORY AUDITORSM/s SMPS & Co., Chartered Accountants 34-B, First Floor, Pocket M & N Sarita ViharNew Delhi - 110076
INTERNAL AUDITORMr. P. C. Jain
COMPANY SECRETARYMr. Ajay K. Ratra
REGISTERED OFFICE:stS.C.O. 18-19, 1 Floor, Sector 9D,
Madhya Marg , Chandigarh – 160017, India Tel.: +91-172-2740352, Fax: +91-172-2743057E-mail: [email protected]: www.lakshmigroup.inCIN : L00000CH1990PLC010573
CORPORATE OFFICE:ndOffice No. - 202 2 Floor,
Naman Corporate Line (Wing C)Bandra Kurla ComplexBandra (East) Mumbai
WORKS & ADMIN. OFFICE:V.P.O. Khamanon,Ludhiana – Chandigarh National Highway,Khamanon 141801, Punjab, India.Tel.: +91-1628-661800, Fax: +91-1628-661805
ZONAL OFFICE:807, 8th Floor, Kailash Building, 26, K.G. Marg, Connaught Place, New Delhi – 110001 India,Tel: +91-11-66305281; Fax: +91-11-66305280
REGISTRARS & SHARE TRANSFER AGENTSM/s Beetal Financial & Computer Services (P) Ltd.
rdBeetal House, 3 Floor, 99, Madangir, New Delhi - 110062
CONTENTS Page No.
Chairman’s Message 1
Directors’ Report 2-12
Management Discussion and Analysis 13-19
Corporate Governance Report 20-36
Auditor’s Report 37-41
Balance Sheet 42
Statement of Profit and Loss 43
Cash Flow Statement 44
Notes on Financial Statements 45-64
Statement u/s 212 65
Auditor’s Report on Consolidated 67
Financial Statements
Consolidated Balance Sheet 68
Consolidated Statement of Profit and Loss 69
Consolidated Cash Flow Statement 70
Notes on Consolidated Financial Statements 71-87
Financial Details of Subsidiary Companies 88
CHAIRMAN’S MESSAGE
Dear Shareholders,
I wish to recapitulate that your company had grown quite rapidly for several years but slowed down due to external conditions for couple of years. During first five to six years of the last one decade of the company’s operations, we had installed the latest machinery imported from Japan, Germany, Denmark and USA which set the highest standards for the most modern food grain processing plants in India and the same has not been breached by any other mill even today. While we are proud of raising bar in the Indian industry we have to confess that the year gone by has not been a good year for the company.
stThe year ended 31 March 2014 is an extended year of 18 month in compliance with the requirements depicted in the amended Companies Act. We have tried to comply with it at the earliest. We have shown turnover of Rs.18492.41 millions, PBT has recorded a deficit of Rs.196.76 millions which is mainly due to foreign exchange fluctuation. Whereas PAT reflects deficit of Rs.34.25 million. Mainly the last quarter of the year had let the performance of your company down. There were factors some of which were not under the control of the management. However, we in the company believe, by undertaking reform process and putting more focus on production side of business, we would be able to recoup the situation and recover sooner than later to return to progressive days in the company.
We are further ramping up our production facilities by putting up balancing equipments, particularly in the parboiling and steaming plants for optimized production to cater to consumer demand in domestic and overseas markets. We are also in the midst of setting up a corporate office in the factory premises which when completed will house all the departments of the company under one roof. This will help the company in smooth functioning due to better inter-department coordination. Coupled with our desire to improve our performance, there is a stable outlook in industrial production which will help us to achieve good sales and profits in the year that’s going on. The Central and State Government have recently shown keen desire to promote agri based industry, which should also have positive impact on your company.
If we look at the agri sector from the point of view of monsoon, we know there is deficit though thankfully El Nino fears are waning. The deficit in rains would definitely have negative impact but at the same time I can say that it would not impact so much the Punjab crops including basmati rice which is our main stay presently. This expectation will keep our future outlook buoyant and God willing we would begin this financial year with a good note, though a lot depends upon how the prices of new crop open.
To conclude, I would like to mention to all our shareholders, let’s keep our good hopes alive. The company is actively running and doing production. Additional equipments and infrastructure are also coming up. It seems the difficult years are a passé. We have to now look forward so that we do our job well and God helps us to complete our mission. Though the agri prices rise due to inflation on which we don’t have a check but we would continue working towards lowering cost of production and delivering best quality products at the most competitive prices. At the end, I would like to thank you all and the others stakeholders as well as employees of the company who have worked tirelessly in good and bad times with the company.
With best wishes,
Balbir Singh UppalChairman and Managing Director
1LAKSHMI ENERGY AND FOODS LIMITED stAnnual Report- 18 Months Ended 31 March, 2014
BOARD OF DIRECTORS
Mr. Balbir Singh Uppal Chairman & Managing Director
Mr. Janak Raj Singh Joint Managing Director
Mr. I.S.Gumber Executive Director
Mrs. Vijay Luxmi Director
Mr. Amarjit Singh Director
Mr. Nirdosh Bali Director
Mr.V.K.Mishra Director
Mr.KanwalJit Singh Jolly Director
BANKERSPunjab National Bank Syndicate BankAxis BankICICI Bank
STATUTORY AUDITORSM/s SMPS & Co., Chartered Accountants 34-B, First Floor, Pocket M & N Sarita ViharNew Delhi - 110076
INTERNAL AUDITORMr. P. C. Jain
COMPANY SECRETARYMr. Ajay K. Ratra
REGISTERED OFFICE:stS.C.O. 18-19, 1 Floor, Sector 9D,
Madhya Marg , Chandigarh – 160017, India Tel.: +91-172-2740352, Fax: +91-172-2743057E-mail: [email protected]: www.lakshmigroup.inCIN : L00000CH1990PLC010573
CORPORATE OFFICE:ndOffice No. - 202 2 Floor,
Naman Corporate Line (Wing C)Bandra Kurla ComplexBandra (East) Mumbai
WORKS & ADMIN. OFFICE:V.P.O. Khamanon,Ludhiana – Chandigarh National Highway,Khamanon 141801, Punjab, India.Tel.: +91-1628-661800, Fax: +91-1628-661805
ZONAL OFFICE:807, 8th Floor, Kailash Building, 26, K.G. Marg, Connaught Place, New Delhi – 110001 India,Tel: +91-11-66305281; Fax: +91-11-66305280
REGISTRARS & SHARE TRANSFER AGENTSM/s Beetal Financial & Computer Services (P) Ltd.
rdBeetal House, 3 Floor, 99, Madangir, New Delhi - 110062
CONTENTS Page No.
Chairman’s Message 1
Directors’ Report 2-12
Management Discussion and Analysis 13-19
Corporate Governance Report 20-36
Auditor’s Report 37-41
Balance Sheet 42
Statement of Profit and Loss 43
Cash Flow Statement 44
Notes on Financial Statements 45-64
Statement u/s 212 65
Auditor’s Report on Consolidated 67
Financial Statements
Consolidated Balance Sheet 68
Consolidated Statement of Profit and Loss 69
Consolidated Cash Flow Statement 70
Notes on Consolidated Financial Statements 71-87
Financial Details of Subsidiary Companies 88
CHAIRMAN’S MESSAGE
Dear Shareholders,
I wish to recapitulate that your company had grown quite rapidly for several years but slowed down due to external conditions for couple of years. During first five to six years of the last one decade of the company’s operations, we had installed the latest machinery imported from Japan, Germany, Denmark and USA which set the highest standards for the most modern food grain processing plants in India and the same has not been breached by any other mill even today. While we are proud of raising bar in the Indian industry we have to confess that the year gone by has not been a good year for the company.
stThe year ended 31 March 2014 is an extended year of 18 month in compliance with the requirements depicted in the amended Companies Act. We have tried to comply with it at the earliest. We have shown turnover of Rs.18492.41 millions, PBT has recorded a deficit of Rs.196.76 millions which is mainly due to foreign exchange fluctuation. Whereas PAT reflects deficit of Rs.34.25 million. Mainly the last quarter of the year had let the performance of your company down. There were factors some of which were not under the control of the management. However, we in the company believe, by undertaking reform process and putting more focus on production side of business, we would be able to recoup the situation and recover sooner than later to return to progressive days in the company.
We are further ramping up our production facilities by putting up balancing equipments, particularly in the parboiling and steaming plants for optimized production to cater to consumer demand in domestic and overseas markets. We are also in the midst of setting up a corporate office in the factory premises which when completed will house all the departments of the company under one roof. This will help the company in smooth functioning due to better inter-department coordination. Coupled with our desire to improve our performance, there is a stable outlook in industrial production which will help us to achieve good sales and profits in the year that’s going on. The Central and State Government have recently shown keen desire to promote agri based industry, which should also have positive impact on your company.
If we look at the agri sector from the point of view of monsoon, we know there is deficit though thankfully El Nino fears are waning. The deficit in rains would definitely have negative impact but at the same time I can say that it would not impact so much the Punjab crops including basmati rice which is our main stay presently. This expectation will keep our future outlook buoyant and God willing we would begin this financial year with a good note, though a lot depends upon how the prices of new crop open.
To conclude, I would like to mention to all our shareholders, let’s keep our good hopes alive. The company is actively running and doing production. Additional equipments and infrastructure are also coming up. It seems the difficult years are a passé. We have to now look forward so that we do our job well and God helps us to complete our mission. Though the agri prices rise due to inflation on which we don’t have a check but we would continue working towards lowering cost of production and delivering best quality products at the most competitive prices. At the end, I would like to thank you all and the others stakeholders as well as employees of the company who have worked tirelessly in good and bad times with the company.
With best wishes,
Balbir Singh UppalChairman and Managing Director
1LAKSHMI ENERGY AND FOODS LIMITED stAnnual Report- 18 Months Ended 31 March, 2014
Dear Members
rdYour directors are pleased to present the 23 Annual Report and the company’s audited accounts for the 18 months ended st31 March, 2014.
Financial Results
stThe summarised financial results of the Company for the 18 months ended 31 March, 2014 as compared to the preceding
year are as under:
(Rupees in Million)
Current Current
Period ended Period ended
31-03-2014 31-03-2014
Sale of products 18492.41 12100.40 19068.79 15466.90
Other Income 62.60 9.05 75.04 17.98
Total Revenue 18555.01 12109.45 19143.83 15484.87
Profit before Interest, Depreciation and Tax 1406.16 1753.72 1437.21 1741.08
Finance Cost 963.80 1345.90 964.17 1346.03
Depreciation 639.12 398.88 641.63 399.54
Profit before tax (196.76) 8.94 (168.59) (4.49)
Tax expense
- Current tax - 1.79 0.32 -
- Deferred Tax (162.51) 100.51 (162.46) (100.16)
Profit after tax (34.25) 107.66 (6.45) 95.67
Add: Balance of Profit brought forward 4909.05 4816.98 4880.59 4802.27
Add: Excess provision of earlier years 46.46 - 46.46 -
Add: MAT credit entitlement - 1.79 -
Profit available for appropriation 4921.26 4926.43 4920.70 4897.97
Appropriations
Provision for dividend (inc. of tax) - 14.69 - 14.69
Transfer to General Reserve - 2.69 - 2.69
Balance carried to Balance Sheet 4921.26 4909.05 4920.70 4880.59
Financial & Performance Review
Your company’s USP is excellent quality, strategic procurement & marketing and increasing export base. Your company’s
presence is all pervasive starting from grass root level of farmers, mandi yards through representatives, procurement,
transportation, warehousing, paddy processing, generating other by-products like rice bran oil, de-oiled cakes and using
husk for power plant.
Standalone Consolidated
Particulars Previous Previous
Year Ended Year Ended
30-09-2012 30-09-2012
DIRECTORS’ REPORT Directors’ Report
stDuring the 18 months ended 31 March, 2014, your company recorded Sales of Rs. 18492.41 million as compared to Rs.
12100.40 million in year 2011-12, registering a growth of 1.88% over the last year on annualized basis. PBT has recorded a
deficit of Rs. 196.76 millions which is mainly due to foreign exchange fluctuation. Whereas PAT reflects deficit of Rs.34.25
million. However, your company is effectively taking steps to mitigate losses out of forex fluctuation.
Change in FinancialY ear
The Board of Directors of the Company approved change in the financial year of the Company from October-September to
April-March effective April 1, 2014. In view of this, the current financial year is for a period of 18 months i.e. October 1, 2012
to March 31, 2014.
Expansion & Modernization
The Company is primarily engaged in the transportation, handling and storage of food grains. In the process, the prime
motive is to preserve and store the foodgrains. Warehousing infrastructure and packing plays key role in process efficiency
and profitability as also earn tax benefits under the tax laws.
During the period under review, the company has taken the following measures for expansion/modernization:
?Installed new Sella Plant and balancing equipment.
?Extended the warehousing capacity within the factory premises.
?Set up Mumbai Office
?Added machinery in the existing Power Plant
Transfer to Reserves
The company has not transferred any amount in the General Reserve during the period year under review.
Dividend
During the period under review, Interim dividend of Rs.0.30 per share was paid in May, 2013. Taking into account profitability
and interim dividend already paid, Board of directors of the company did not recommend final dividend for the period stended 31 March, 2014.
Changes in Capital Structure
Board of Directors of the company in its meeting held on April 22, 2013, had allotted 67,80,000 warrants convertible into
equal number of equity shares of Rs.2/- each at an issue price of Rs.22/- each (including premium of Rs.20/- per share) to Mr.
Balbir Singh Uppal, Promoter, on preferential basis as per details given below, in accordance with the Chapter VII of SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2009 and in terms of In-Principle approvals received from NSE
and BSE.
32 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Dear Members
rdYour directors are pleased to present the 23 Annual Report and the company’s audited accounts for the 18 months ended st31 March, 2014.
Financial Results
stThe summarised financial results of the Company for the 18 months ended 31 March, 2014 as compared to the preceding
year are as under:
(Rupees in Million)
Current Current
Period ended Period ended
31-03-2014 31-03-2014
Sale of products 18492.41 12100.40 19068.79 15466.90
Other Income 62.60 9.05 75.04 17.98
Total Revenue 18555.01 12109.45 19143.83 15484.87
Profit before Interest, Depreciation and Tax 1406.16 1753.72 1437.21 1741.08
Finance Cost 963.80 1345.90 964.17 1346.03
Depreciation 639.12 398.88 641.63 399.54
Profit before tax (196.76) 8.94 (168.59) (4.49)
Tax expense
- Current tax - 1.79 0.32 -
- Deferred Tax (162.51) 100.51 (162.46) (100.16)
Profit after tax (34.25) 107.66 (6.45) 95.67
Add: Balance of Profit brought forward 4909.05 4816.98 4880.59 4802.27
Add: Excess provision of earlier years 46.46 - 46.46 -
Add: MAT credit entitlement - 1.79 -
Profit available for appropriation 4921.26 4926.43 4920.70 4897.97
Appropriations
Provision for dividend (inc. of tax) - 14.69 - 14.69
Transfer to General Reserve - 2.69 - 2.69
Balance carried to Balance Sheet 4921.26 4909.05 4920.70 4880.59
Financial & Performance Review
Your company’s USP is excellent quality, strategic procurement & marketing and increasing export base. Your company’s
presence is all pervasive starting from grass root level of farmers, mandi yards through representatives, procurement,
transportation, warehousing, paddy processing, generating other by-products like rice bran oil, de-oiled cakes and using
husk for power plant.
Standalone Consolidated
Particulars Previous Previous
Year Ended Year Ended
30-09-2012 30-09-2012
DIRECTORS’ REPORT Directors’ Report
stDuring the 18 months ended 31 March, 2014, your company recorded Sales of Rs. 18492.41 million as compared to Rs.
12100.40 million in year 2011-12, registering a growth of 1.88% over the last year on annualized basis. PBT has recorded a
deficit of Rs. 196.76 millions which is mainly due to foreign exchange fluctuation. Whereas PAT reflects deficit of Rs.34.25
million. However, your company is effectively taking steps to mitigate losses out of forex fluctuation.
Change in FinancialY ear
The Board of Directors of the Company approved change in the financial year of the Company from October-September to
April-March effective April 1, 2014. In view of this, the current financial year is for a period of 18 months i.e. October 1, 2012
to March 31, 2014.
Expansion & Modernization
The Company is primarily engaged in the transportation, handling and storage of food grains. In the process, the prime
motive is to preserve and store the foodgrains. Warehousing infrastructure and packing plays key role in process efficiency
and profitability as also earn tax benefits under the tax laws.
During the period under review, the company has taken the following measures for expansion/modernization:
?Installed new Sella Plant and balancing equipment.
?Extended the warehousing capacity within the factory premises.
?Set up Mumbai Office
?Added machinery in the existing Power Plant
Transfer to Reserves
The company has not transferred any amount in the General Reserve during the period year under review.
Dividend
During the period under review, Interim dividend of Rs.0.30 per share was paid in May, 2013. Taking into account profitability
and interim dividend already paid, Board of directors of the company did not recommend final dividend for the period stended 31 March, 2014.
Changes in Capital Structure
Board of Directors of the company in its meeting held on April 22, 2013, had allotted 67,80,000 warrants convertible into
equal number of equity shares of Rs.2/- each at an issue price of Rs.22/- each (including premium of Rs.20/- per share) to Mr.
Balbir Singh Uppal, Promoter, on preferential basis as per details given below, in accordance with the Chapter VII of SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2009 and in terms of In-Principle approvals received from NSE
and BSE.
32 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report
Convertible Warrants allotted 33,00,000 34,80,000 67,80,000
Issue Price (Rs./share) 22 22 22
On 5th July, 2013, the company allotted 33,00,000 equity shares of Rs.2/- each at a premium of Rs.20/- per share to Mr.Balbir
Singh Uppal on conversion of 33,00,000 Convertible Warrants of Series-1.
Authorised Capital of the company is Rs.20,00,00,000 and paid up capital is Rs.13,29,80,000 after the aforesaid allotment.
TRANSFER TO INVESTOR EDUCATION & PROTECTION FUND
During the period under review, the Company has transferred unpaid / unclaimed dividend for the FY 2005-06 (interim &
final) and FY 2006-07 (interim) amounting to Rs.13,06,302/- to “Investor Education and Protection Fund” (IEPF) established
by the Central Government within the stipulated time period.
Hereunder are the details of Dividends paid by the Company and their respective due dates of transfer of unpaid or
unclaimed dividends to IEPF:
2007-08 (Final Dividend) 27/03/2009 02/05/2016
2008-09 (Final Dividend) 27//03/2010 02/05/2017
2009-10 (Final Dividend) 26/03/2011 01/05/2018
2010-11 (Final Dividend) 28/03/2012 03/05/2019
2011-12 (Final Dividend) 28/03/2013 03-05-2020
2012-14 (Interim Dividend) 03/05/2013 08-06-2020
Material Changes and commitments
Save as mentioned elsewhere in this Report, no material changes and commitments affecting the financial position of the stcompany have occurred between the end of the financial year of the company – 31 March, 2014 and the date of this Report.
Management Discussions and Analysis Report
Management Discussions and Analysis Report as required under Clause 49 of the Listing Agreement is given as a separate
statement in the Annual Report and forms part of this Report.
Fixed Deposits
The Company has not invited / received any fixed deposits during the period.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo.
a. Conservation of Energy & Technology Absorption:
i & ii Energy Conservation Measures taken and Additional Investments / Proposals, if any, being implemented for
reduction of consumption of energy:
In pursuit of continual improvement towards energy conservation and compliance with environmental
regulations, many initiatives have been underway such as:
Series-1 Series-2 Total
Dividend for the year Date of Declaration of Due date for transfer to
Dividend IIEPF
Directors’ Report
a. The maintenance of the Boiler and Turbine generator is carried out regularly with optimum care with the
help of the technical professionals and modern equipments.
b. Most of the traditional lights are being converted into CFL/EFL.
c. Installation of variable frequency drives on high pressure boiler deed water pumps, ID fans, FD fans and
fuel feeders.
d. Installation of soft starter at grading point.
e. AC drive on cooling fans.
f. Capacitator panel for enhancing power factor.
g. Interlocking of motor operation to reduce the idle running hours of the motor in terms of power saving
and safety.
h. Schedule cleaning of condenser in power plant and heat exchanger of various plants is being carried out
to increase the heat transfer.
i. An O2 analyzer is used for monitoring and controlling flue gas of the boiler.
j. Scale Ban Equipment (non-chemical treatment equipment) is installed at Power Plant Condenser inlet to
reduce chemical consumption in cooling tower and reduce water blow down.
k. Use of ETP treated water for horticulture.
l. Using fuel additives in boiler to increase the combustion efficiency.
m. Use of condensate steam/water in boiler for power generation.
n. Air compressor with latest technology is installed to reduce power consumption at low load mode.
o. Compressor air pipe lines are changed with Aluminum pipes to maintain the quality of air entering Sortex
machines.
p. Captive husk based co-generation of power, reducing consumption from main grid utilization.
q. Usage of other biomass fuel like rice/paddy straw, wheat straw to reduce the consumption of rice husk.
r. Development of greenery all over the plant.
iii Impact of i & ii above for reduction of energy consumption
The above energy conservation measures would result in reduction in energy consumption and effectively
saving in drawal of power from the State Grid upto 5 to 10%.
iv. Total Energy consumption and Energy consumption per unit of production as per Form ‘A’
The additional information as required under the provisions of Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 are
given as Annexure-I to this report and forms part of it.
54 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report
Convertible Warrants allotted 33,00,000 34,80,000 67,80,000
Issue Price (Rs./share) 22 22 22
On 5th July, 2013, the company allotted 33,00,000 equity shares of Rs.2/- each at a premium of Rs.20/- per share to Mr.Balbir
Singh Uppal on conversion of 33,00,000 Convertible Warrants of Series-1.
Authorised Capital of the company is Rs.20,00,00,000 and paid up capital is Rs.13,29,80,000 after the aforesaid allotment.
TRANSFER TO INVESTOR EDUCATION & PROTECTION FUND
During the period under review, the Company has transferred unpaid / unclaimed dividend for the FY 2005-06 (interim &
final) and FY 2006-07 (interim) amounting to Rs.13,06,302/- to “Investor Education and Protection Fund” (IEPF) established
by the Central Government within the stipulated time period.
Hereunder are the details of Dividends paid by the Company and their respective due dates of transfer of unpaid or
unclaimed dividends to IEPF:
2007-08 (Final Dividend) 27/03/2009 02/05/2016
2008-09 (Final Dividend) 27//03/2010 02/05/2017
2009-10 (Final Dividend) 26/03/2011 01/05/2018
2010-11 (Final Dividend) 28/03/2012 03/05/2019
2011-12 (Final Dividend) 28/03/2013 03-05-2020
2012-14 (Interim Dividend) 03/05/2013 08-06-2020
Material Changes and commitments
Save as mentioned elsewhere in this Report, no material changes and commitments affecting the financial position of the stcompany have occurred between the end of the financial year of the company – 31 March, 2014 and the date of this Report.
Management Discussions and Analysis Report
Management Discussions and Analysis Report as required under Clause 49 of the Listing Agreement is given as a separate
statement in the Annual Report and forms part of this Report.
Fixed Deposits
The Company has not invited / received any fixed deposits during the period.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo.
a. Conservation of Energy & Technology Absorption:
i & ii Energy Conservation Measures taken and Additional Investments / Proposals, if any, being implemented for
reduction of consumption of energy:
In pursuit of continual improvement towards energy conservation and compliance with environmental
regulations, many initiatives have been underway such as:
Series-1 Series-2 Total
Dividend for the year Date of Declaration of Due date for transfer to
Dividend IIEPF
Directors’ Report
a. The maintenance of the Boiler and Turbine generator is carried out regularly with optimum care with the
help of the technical professionals and modern equipments.
b. Most of the traditional lights are being converted into CFL/EFL.
c. Installation of variable frequency drives on high pressure boiler deed water pumps, ID fans, FD fans and
fuel feeders.
d. Installation of soft starter at grading point.
e. AC drive on cooling fans.
f. Capacitator panel for enhancing power factor.
g. Interlocking of motor operation to reduce the idle running hours of the motor in terms of power saving
and safety.
h. Schedule cleaning of condenser in power plant and heat exchanger of various plants is being carried out
to increase the heat transfer.
i. An O2 analyzer is used for monitoring and controlling flue gas of the boiler.
j. Scale Ban Equipment (non-chemical treatment equipment) is installed at Power Plant Condenser inlet to
reduce chemical consumption in cooling tower and reduce water blow down.
k. Use of ETP treated water for horticulture.
l. Using fuel additives in boiler to increase the combustion efficiency.
m. Use of condensate steam/water in boiler for power generation.
n. Air compressor with latest technology is installed to reduce power consumption at low load mode.
o. Compressor air pipe lines are changed with Aluminum pipes to maintain the quality of air entering Sortex
machines.
p. Captive husk based co-generation of power, reducing consumption from main grid utilization.
q. Usage of other biomass fuel like rice/paddy straw, wheat straw to reduce the consumption of rice husk.
r. Development of greenery all over the plant.
iii Impact of i & ii above for reduction of energy consumption
The above energy conservation measures would result in reduction in energy consumption and effectively
saving in drawal of power from the State Grid upto 5 to 10%.
iv. Total Energy consumption and Energy consumption per unit of production as per Form ‘A’
The additional information as required under the provisions of Section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 are
given as Annexure-I to this report and forms part of it.
54 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report
b. Technology Absorption: The Company is taking caring of latest developments and advancements in technology
and all steps are being taken to adopt the same. The Process equipments installed in the plant are of from world class
manufacturers with latest technology like Satake -Japan, Schmidt Seager – Germany, Shin Nippon Machinery Co. Ltd,
Japan, Toyo Denki Power systems , Thermax, Sullair – US,ABB, Schneider, AREVA, Forbes Marshal etc. The company’s
technical team is in process of exploring the opportunities & updating new technology for sophisticated equipments
with latest technology. However, the company is yet to carry out R & D on product genes cultivation which could be
predominantly back end process.
c. Foreign Exchange Earnings and Outgo:
i) Export Activities/Initiatives to Increase Exports/Development of New Export Markets / Export
Plans
EXPORT INTIATIVES 2012-14
During the period under review, your company focused on the export of PUSA basmati 1121 rice and exported
rice amounting to Rs.1157.95 million to gulf countries, Australia and USA (Previous year - Rs. 1292.56
milling).Your company is very active in exploring the new markets.
EXPORT PLAN FOR 2014-15
?Focus on existing international market for business growth
?Explore the possibility of export to other international markets.
?Opening of new overseas offices to improve customer touch points.
During the year under review, the earning on account of foreign exchange (export sale) was Rs.1132.86 million (Previous
year Rs. 1320.99 million), and the outgo in foreign exchange was Rs.12.23 million (Previous year - Rs. 132.51 million).
Particulars of Employees
Details and information of employees of the company who were in receipt of remuneration as prescribed under section
217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 is given in the
Annexure-II to this Report.
Directors
During the year under report, Mr. Vilas Unavane resigned from the directorship of the company. The Directors place on
record their appreciation of the valuable services rendered and guidance received from him during his tenure as member of
the board.
At the ensuing annual general meeting, Mrs. Vijay Luxmi will retire by rotation and being eligible, offer herself for re-
appointment. Your directors recommend her re-appointment at the ensuing annual general meeting.
Your Board recommends the re-appointment of Mr. Balbir Singh Uppal as Chairman and Managing Director of the
Company for a period of three years with effect from 1st September, 2014. Board also recommends Mr. Janak Raj Singh as thJoint Managing Director of the Company for a period of three years with effect from 27 March, 2015.
Further in terms of the provisions of the Companies Act, 2013, Mr. Amarjit Singh, Mr. Nirdosh Bali, Mr. V.K.Mishra and Mr.
Directors’ Report
Kanwaljit Singh Jolly, Non-Executive and Independent Directors of the Company whose office are liable to determination
by retirement of Directors by rotation have been appointed as Independent Directors in terms of Sections 149 and 152 of rdthe Companies Act, 2013 for 5 (five) consecutive years from the date of the 23 Annual General Meeting. The Board has
received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of
independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and who in the opinion of
the Board fulfils the conditions specified in the Act and the rules made thereunder and are Independent of the management.
Thus, the Board recommends their appointment as Independent Directors.
Brief resume/details of the Director, who is/are to be appointed/re-appointed as mentioned herein above has been
furnished in the Notice of AGM.
Human Resource Development
During the year under review, your company’s commitment to building harmonious employee relations was evident from
the successful and smooth running of its operations at its works. The collaborative spirit of partnership across all sections of
employees and their sense of ownership and commitment has sustained the culture of excellence, learning and readiness to
change. The collective dedication of the employees is helping your company in delivering superior customer and
shareholder value. Your company salutes the unflinching commitment of its dedicated team of employees. Industrial
relations have been cordial.
Corporate Governance
The company has complied with the Corporate Governance requirements, as stipulated under Clause 49 of the Listing
Agreement with Stock Exchanges. A separate section on Corporate Governance alongwith a certificate from the Auditors
of the company confirming the compliance is annexed and forms part of this Report.
Subsidiary Companies
Punjab Greenfield Resources Limited, a wholly owned subsidiary company presently acts as a sales and marketing
arm of LEAF and has been engaged in buying the finished rice varieties from LEAF, warehousing them and distributing them
in various parts of the country using its network of brokers, dealers and distributors.
M/s Lakshmi Green Power Limited and M/s Green Energy and Foods Pte. Ltd, Singapore are subsidiary
companies incorporated in 2010. On being operational, these companies shall significantly contribute to generate power,
improve logistics and mobilize additional exports.
Pan Gulf Foods and Industries FZ Co- The company has ventured into setting up its subsidiary company in Dubai. This
company will process, package and distribute LEAF’s basmati rice brands in GCC countries, Iran, Kingdom of Saudi Arabia,
Yemen, Iraq and North Africa, this Company is yet to start its operations.
A statement pursuant to section 212 of the Companies Act, 1956, relating to subsidiary companies is attached to the
accounts. In terms of the approval granted by the Central Government vide letter No. 47/718/2010–CL–III dated
December 28, 2010 under Section 212(8) of the Companies Act, 1956, the audited accounts and Reports of Board of
Directors and Auditors of the Company’s subsidiaries have not been annexed to this Annual Report. The Company will
make available the Annual Accounts of the subsidiaries to any of the member of the Company who may be interested in
obtaining the same. The annual accounts of the subsidiaries will also be kept open for inspection at the Registered Office of
the Company.
76 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report
b. Technology Absorption: The Company is taking caring of latest developments and advancements in technology
and all steps are being taken to adopt the same. The Process equipments installed in the plant are of from world class
manufacturers with latest technology like Satake -Japan, Schmidt Seager – Germany, Shin Nippon Machinery Co. Ltd,
Japan, Toyo Denki Power systems , Thermax, Sullair – US,ABB, Schneider, AREVA, Forbes Marshal etc. The company’s
technical team is in process of exploring the opportunities & updating new technology for sophisticated equipments
with latest technology. However, the company is yet to carry out R & D on product genes cultivation which could be
predominantly back end process.
c. Foreign Exchange Earnings and Outgo:
i) Export Activities/Initiatives to Increase Exports/Development of New Export Markets / Export
Plans
EXPORT INTIATIVES 2012-14
During the period under review, your company focused on the export of PUSA basmati 1121 rice and exported
rice amounting to Rs.1157.95 million to gulf countries, Australia and USA (Previous year - Rs. 1292.56
milling).Your company is very active in exploring the new markets.
EXPORT PLAN FOR 2014-15
?Focus on existing international market for business growth
?Explore the possibility of export to other international markets.
?Opening of new overseas offices to improve customer touch points.
During the year under review, the earning on account of foreign exchange (export sale) was Rs.1132.86 million (Previous
year Rs. 1320.99 million), and the outgo in foreign exchange was Rs.12.23 million (Previous year - Rs. 132.51 million).
Particulars of Employees
Details and information of employees of the company who were in receipt of remuneration as prescribed under section
217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 is given in the
Annexure-II to this Report.
Directors
During the year under report, Mr. Vilas Unavane resigned from the directorship of the company. The Directors place on
record their appreciation of the valuable services rendered and guidance received from him during his tenure as member of
the board.
At the ensuing annual general meeting, Mrs. Vijay Luxmi will retire by rotation and being eligible, offer herself for re-
appointment. Your directors recommend her re-appointment at the ensuing annual general meeting.
Your Board recommends the re-appointment of Mr. Balbir Singh Uppal as Chairman and Managing Director of the
Company for a period of three years with effect from 1st September, 2014. Board also recommends Mr. Janak Raj Singh as thJoint Managing Director of the Company for a period of three years with effect from 27 March, 2015.
Further in terms of the provisions of the Companies Act, 2013, Mr. Amarjit Singh, Mr. Nirdosh Bali, Mr. V.K.Mishra and Mr.
Directors’ Report
Kanwaljit Singh Jolly, Non-Executive and Independent Directors of the Company whose office are liable to determination
by retirement of Directors by rotation have been appointed as Independent Directors in terms of Sections 149 and 152 of rdthe Companies Act, 2013 for 5 (five) consecutive years from the date of the 23 Annual General Meeting. The Board has
received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of
independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and who in the opinion of
the Board fulfils the conditions specified in the Act and the rules made thereunder and are Independent of the management.
Thus, the Board recommends their appointment as Independent Directors.
Brief resume/details of the Director, who is/are to be appointed/re-appointed as mentioned herein above has been
furnished in the Notice of AGM.
Human Resource Development
During the year under review, your company’s commitment to building harmonious employee relations was evident from
the successful and smooth running of its operations at its works. The collaborative spirit of partnership across all sections of
employees and their sense of ownership and commitment has sustained the culture of excellence, learning and readiness to
change. The collective dedication of the employees is helping your company in delivering superior customer and
shareholder value. Your company salutes the unflinching commitment of its dedicated team of employees. Industrial
relations have been cordial.
Corporate Governance
The company has complied with the Corporate Governance requirements, as stipulated under Clause 49 of the Listing
Agreement with Stock Exchanges. A separate section on Corporate Governance alongwith a certificate from the Auditors
of the company confirming the compliance is annexed and forms part of this Report.
Subsidiary Companies
Punjab Greenfield Resources Limited, a wholly owned subsidiary company presently acts as a sales and marketing
arm of LEAF and has been engaged in buying the finished rice varieties from LEAF, warehousing them and distributing them
in various parts of the country using its network of brokers, dealers and distributors.
M/s Lakshmi Green Power Limited and M/s Green Energy and Foods Pte. Ltd, Singapore are subsidiary
companies incorporated in 2010. On being operational, these companies shall significantly contribute to generate power,
improve logistics and mobilize additional exports.
Pan Gulf Foods and Industries FZ Co- The company has ventured into setting up its subsidiary company in Dubai. This
company will process, package and distribute LEAF’s basmati rice brands in GCC countries, Iran, Kingdom of Saudi Arabia,
Yemen, Iraq and North Africa, this Company is yet to start its operations.
A statement pursuant to section 212 of the Companies Act, 1956, relating to subsidiary companies is attached to the
accounts. In terms of the approval granted by the Central Government vide letter No. 47/718/2010–CL–III dated
December 28, 2010 under Section 212(8) of the Companies Act, 1956, the audited accounts and Reports of Board of
Directors and Auditors of the Company’s subsidiaries have not been annexed to this Annual Report. The Company will
make available the Annual Accounts of the subsidiaries to any of the member of the Company who may be interested in
obtaining the same. The annual accounts of the subsidiaries will also be kept open for inspection at the Registered Office of
the Company.
76 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report
Consolidated financial statements
Further pursuant to Accounting Standard -21 (AS- 21) issued by the Institute of Chartered Accountants of India,
Consolidated Financial Statements presented in this Annual Report include financial information of the subsidiary
companies i.e Punjab Greenfield Resources Limited, M/s Lakshmi Green Power Limited and M/s Green Energy and Foods
Pte. Ltd, Singapore.
Auditors
During the period under review, M/s. S. Kumar Gupta & Associates, Chartered Accountants and M/s B.K.Nayar & Co.
Chartered Accountants, had resigned as Statutory Auditors of the company. In the Extra Ordinary General Meeting held on th17 May, 2014, M/s. SMPS & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Company
stto conduct the Statutory Audit for the period ended 31 March, 2014. M/s. SMPS & Co., Chartered Accountants hold office
until the conclusion of the ensuing annual general meeting and are recommended for re-appointment for 4 (four) rdconsecutive years from the date of the 23 Annual General Meeting (AGM) for a term upto the conclusion of 27th AGM of
the Company in the Calendar year 2018 (subject to ratification of the appointment by the members at every AGM held after
this AGM). The company has obtained a certificate from M/s. SMPS & Co., Chartered Accountants to the effect that their
proposed re-appointment, if made, would be in accordance and conformity with the limits as specified in that section.
Auditors’ Report
The observations of Auditors in their Report, read with the relevant notes to accounts are self explanatory and therefore
do not require further explanation.
Cost Auditors
The Board has re-appointed M/s Anil Sharma & Co., Cost Accountants, Chandigarh, as the Cost Auditors of the Company in
accordance with Section 148 of the Companies Act, 2013 for the financial year 2014-15. The Cost Auditors’ Report for the stperiod 31 March, 2014 will be forwarded to the Central Government in pursuance of the provisions of the Companies Act,
2013 or any enactment thereof.
Internal Control Systems and their Adequacy
The Company has a proper and adequate system of internal controls. This ensures that all assets are safeguarded and
protected against loss from unauthorised use or disposition and those transactions are authorised, recorded and reported
correctly.
An extensive programme of internal audits and management reviews supplements the process of internal control. Properly
documented policies, guidelines and procedures are laid down for this purpose. The internal control system has been
designed to ensure that the financial and other records are reliable for preparing financial and other statements and for
maintaining accountability of assets.
The Company also has an Audit Committee, comprising of 3 Directors including 2 Non-Executive & Independent
professionally qualified Directors, who interact with the Statutory Auditors, Internal Auditors, Cost Auditors and Auditees
in dealing with matters within its terms of reference. The Committee mainly deals with accounting matters, financial
reporting and internal controls. During the period under review, the Audit Committee met seven times.
Directors’ Report
Directors’ Responsibility Statement
Your Directors make the following statement in terms of Section 217(2AA) of the Companies Act, 1956, which is to the
best of their knowledge and belief and according to the information and explanations obtained by them:
1. that in the preparation of the annual accounts for the period ended March 31, 2014, the applicable accounting
standards have been followed;
2. that appropriate accounting policies have been selected and applied consistently and judgments and estimates that
are reasonable and prudent have been made so as to give a true and fair view of the state of affairs as at March 31, 2014
and of the Profit of the Company for the period ended March 31, 2014;
3. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
4. that the annual accounts for the period ended March 31, 2014 have been prepared on a going concern basis.
Corporate Social Responsibility (CSR)
Your company is taking active part in promoting education to children from needy and poor families. Necessary funds have
been allocated and disbursed towards the same.
Stock Exchange Listing
The securities of the company are presently listed on the following Stock Exchanges:
1. National Stock Exchange of India Limited;
2. Bombay Stock Exchange Limited;
3. Ludhiana Stock Exchange Limited;
4. Delhi Stock Exchange Limited
The company has paid the listing fees for the financial year 2013-14 to all the Stock Exchanges wherein the equity shares of
the company are presently listed.
The Companies Act, 2013
During the current FY the Companies Act, 1956 has been replaced by Companies Act, 2013 and became applicable for every
company from April 1, 2014. Your Company has been regular in keeping pace with the fast changes that has become
applicable and initiated necessary actions accordingly. Some of the important initiatives are as under:
a) Modification in terms of Audit Committee;
b) Modification in terms of Nomination and Remuneration Committee;
c) Modification in terms of Stakeholders Relationship Committee;
d) Appointment of Secretarial Auditors;
98 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report
Consolidated financial statements
Further pursuant to Accounting Standard -21 (AS- 21) issued by the Institute of Chartered Accountants of India,
Consolidated Financial Statements presented in this Annual Report include financial information of the subsidiary
companies i.e Punjab Greenfield Resources Limited, M/s Lakshmi Green Power Limited and M/s Green Energy and Foods
Pte. Ltd, Singapore.
Auditors
During the period under review, M/s. S. Kumar Gupta & Associates, Chartered Accountants and M/s B.K.Nayar & Co.
Chartered Accountants, had resigned as Statutory Auditors of the company. In the Extra Ordinary General Meeting held on th17 May, 2014, M/s. SMPS & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Company
stto conduct the Statutory Audit for the period ended 31 March, 2014. M/s. SMPS & Co., Chartered Accountants hold office
until the conclusion of the ensuing annual general meeting and are recommended for re-appointment for 4 (four) rdconsecutive years from the date of the 23 Annual General Meeting (AGM) for a term upto the conclusion of 27th AGM of
the Company in the Calendar year 2018 (subject to ratification of the appointment by the members at every AGM held after
this AGM). The company has obtained a certificate from M/s. SMPS & Co., Chartered Accountants to the effect that their
proposed re-appointment, if made, would be in accordance and conformity with the limits as specified in that section.
Auditors’ Report
The observations of Auditors in their Report, read with the relevant notes to accounts are self explanatory and therefore
do not require further explanation.
Cost Auditors
The Board has re-appointed M/s Anil Sharma & Co., Cost Accountants, Chandigarh, as the Cost Auditors of the Company in
accordance with Section 148 of the Companies Act, 2013 for the financial year 2014-15. The Cost Auditors’ Report for the stperiod 31 March, 2014 will be forwarded to the Central Government in pursuance of the provisions of the Companies Act,
2013 or any enactment thereof.
Internal Control Systems and their Adequacy
The Company has a proper and adequate system of internal controls. This ensures that all assets are safeguarded and
protected against loss from unauthorised use or disposition and those transactions are authorised, recorded and reported
correctly.
An extensive programme of internal audits and management reviews supplements the process of internal control. Properly
documented policies, guidelines and procedures are laid down for this purpose. The internal control system has been
designed to ensure that the financial and other records are reliable for preparing financial and other statements and for
maintaining accountability of assets.
The Company also has an Audit Committee, comprising of 3 Directors including 2 Non-Executive & Independent
professionally qualified Directors, who interact with the Statutory Auditors, Internal Auditors, Cost Auditors and Auditees
in dealing with matters within its terms of reference. The Committee mainly deals with accounting matters, financial
reporting and internal controls. During the period under review, the Audit Committee met seven times.
Directors’ Report
Directors’ Responsibility Statement
Your Directors make the following statement in terms of Section 217(2AA) of the Companies Act, 1956, which is to the
best of their knowledge and belief and according to the information and explanations obtained by them:
1. that in the preparation of the annual accounts for the period ended March 31, 2014, the applicable accounting
standards have been followed;
2. that appropriate accounting policies have been selected and applied consistently and judgments and estimates that
are reasonable and prudent have been made so as to give a true and fair view of the state of affairs as at March 31, 2014
and of the Profit of the Company for the period ended March 31, 2014;
3. that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
4. that the annual accounts for the period ended March 31, 2014 have been prepared on a going concern basis.
Corporate Social Responsibility (CSR)
Your company is taking active part in promoting education to children from needy and poor families. Necessary funds have
been allocated and disbursed towards the same.
Stock Exchange Listing
The securities of the company are presently listed on the following Stock Exchanges:
1. National Stock Exchange of India Limited;
2. Bombay Stock Exchange Limited;
3. Ludhiana Stock Exchange Limited;
4. Delhi Stock Exchange Limited
The company has paid the listing fees for the financial year 2013-14 to all the Stock Exchanges wherein the equity shares of
the company are presently listed.
The Companies Act, 2013
During the current FY the Companies Act, 1956 has been replaced by Companies Act, 2013 and became applicable for every
company from April 1, 2014. Your Company has been regular in keeping pace with the fast changes that has become
applicable and initiated necessary actions accordingly. Some of the important initiatives are as under:
a) Modification in terms of Audit Committee;
b) Modification in terms of Nomination and Remuneration Committee;
c) Modification in terms of Stakeholders Relationship Committee;
d) Appointment of Secretarial Auditors;
98 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report Annexure-I Directors’ Report FORM ‘A’
Form of Disclosure of Particulars with respect to conservation of energy
Period ended31.03.2014
A. POWER AND FUEL CONSUMPTION
1. Electricity
(a) Purchased
-Unit (KWH in Thousand) 2681.04 2314.26
-Total Amount (Rs. Lacs) 212.07 195.08
-Rate / Unit (Rs.) 7.91 7.78
(b) Own Generation - -
(i) Through Diesel Generator
-Unit (KWH in Thousand) - -
-Unit per liter of Diesel Oil - -
-Rate / Unit (Rs.) - -
(ii) Through Steam Turbine/ Generator
-Unit (KWH in Thousand) 53605.46 15776.25
2. Coal
-Quantity (MTS) - -
-Total Cost (Rs. In Lacs) - -
-Average rate (Rs. per MT) - -
3. Furnace Oil
-Quantity (K lts.) - -
-Total Cost (Rs. In Lacs) - -
-Average rate (Rs. per K lts.) - -
4. Other/ Internal Generation
-Quantity (KWH in Thousand)
B. CONSUMPTION PER MT
Electricity (KWH)
Paddy/Rice 81.30 76.75
Furnance Oil (Ltr.) - -
Coal (Kgs.) - -
For and on Behalf of the Board
Place: Chandigarh Balbir Singh Uppal
Date : 30.05.2014 Chairman and Managing Director
Year ended30.09.2012
e) Setting up of Vigil Mechanism;
f ) Constitution of Corporate Social Responsibility Committee;
g) Identification of Related parties as per new Act.
Acknowledgement
Your company’s board and employees are inspired by their vision of sustaining LEAF’s position as one of India’s most
significant company in the food segment through world class performance creating enduring value for all shareholders and
the Indian society.
Your directors wish to convey their sincere appreciation for the co-operation and excellent assistance the company has
received from Banks, central/state government(s) and various ministries, departments of the central/state government(s),
dealers and valued business associates without which it would not have been possible to achieve all round progress and
growth of the company. The Board also places on record its appreciation to shareholders for their continued trust and
support and also for the devoted services of all the employees of the company for their outstanding contribution to the
operations during the year under review. The Board also places on record its appreciation for the continuous patronage of
the customers of the company.
For and on Behalf of the Board
Sd/-
Place: Chandigarh Balbir Singh Uppal
Date: 30.05.2014 Chairman and Managing Director
1110 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Directors’ Report Annexure-I Directors’ Report FORM ‘A’
Form of Disclosure of Particulars with respect to conservation of energy
Period ended31.03.2014
A. POWER AND FUEL CONSUMPTION
1. Electricity
(a) Purchased
-Unit (KWH in Thousand) 2681.04 2314.26
-Total Amount (Rs. Lacs) 212.07 195.08
-Rate / Unit (Rs.) 7.91 7.78
(b) Own Generation - -
(i) Through Diesel Generator
-Unit (KWH in Thousand) - -
-Unit per liter of Diesel Oil - -
-Rate / Unit (Rs.) - -
(ii) Through Steam Turbine/ Generator
-Unit (KWH in Thousand) 53605.46 15776.25
2. Coal
-Quantity (MTS) - -
-Total Cost (Rs. In Lacs) - -
-Average rate (Rs. per MT) - -
3. Furnace Oil
-Quantity (K lts.) - -
-Total Cost (Rs. In Lacs) - -
-Average rate (Rs. per K lts.) - -
4. Other/ Internal Generation
-Quantity (KWH in Thousand)
B. CONSUMPTION PER MT
Electricity (KWH)
Paddy/Rice 81.30 76.75
Furnance Oil (Ltr.) - -
Coal (Kgs.) - -
For and on Behalf of the Board
Place: Chandigarh Balbir Singh Uppal
Date : 30.05.2014 Chairman and Managing Director
Year ended30.09.2012
e) Setting up of Vigil Mechanism;
f ) Constitution of Corporate Social Responsibility Committee;
g) Identification of Related parties as per new Act.
Acknowledgement
Your company’s board and employees are inspired by their vision of sustaining LEAF’s position as one of India’s most
significant company in the food segment through world class performance creating enduring value for all shareholders and
the Indian society.
Your directors wish to convey their sincere appreciation for the co-operation and excellent assistance the company has
received from Banks, central/state government(s) and various ministries, departments of the central/state government(s),
dealers and valued business associates without which it would not have been possible to achieve all round progress and
growth of the company. The Board also places on record its appreciation to shareholders for their continued trust and
support and also for the devoted services of all the employees of the company for their outstanding contribution to the
operations during the year under review. The Board also places on record its appreciation for the continuous patronage of
the customers of the company.
For and on Behalf of the Board
Sd/-
Place: Chandigarh Balbir Singh Uppal
Date: 30.05.2014 Chairman and Managing Director
1110 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
ECONOMIC OVERVIEW
Global Economy
Global activity has broadly strengthened during the second half of 2013 and is expected to improve further in 2014–15, with
much of the impetus coming from advanced economies. Inflation in these economies, however, has undershot projections,
reflecting still-large output gaps and recent commodity price declines. Activity in many emerging market economies has
disappointed in a less favorable external financial environment, although they continue to contribute more than two-thirds
of global growth. Their output growth is expected to be lifted by stronger exports to advanced economies. Looking ahead,
global growth is projected to strengthen from 3 percent in 2013 to 3.6 percent in 2014 and 3.9 percent in 2015 as per World
Economic Outlook Report by the International Monetary Fund (IMF) in April 2014. In advanced economies, growth is
expected to increase to about 2¼ percent in 2014–15, an improvement of about 1 percentage point compared with 2013.
Key drivers are a reduction in fiscal tightening, except in Japan, and still highly accommodative monetary conditions. Growth
will be strongest in the United States at about 2¾ percent. Growth is projected to be positive but varied in the euro area:
stronger in the core, but weaker in countries with high debt (both private and public) and financial fragmentation. In
emerging market and developing economies, growth is projected to pick up gradually from 4.7 percent in 2013 to about 5
percent in 2014 and 5¼ percent in 2015.
Indian Economy
Domestically, real GDP growth continued to be modest in 2013-14, with some strengthening of activity in services such as
trade, hotels, transport and communication, and financing, real estate and business services. Despite some positive
movement in more recent data, industrial activity continues to be a drag on the economy. In the quarters ahead, the boost
provided by robust agricultural production in 2013 may wane. Moreover, the outlook for the 2014 south-west monsoon
appears uncertain. Sluggishness in industrial activity, exports and several categories of services underlines the need to
revitalise productivity and competitiveness.
Contingent upon the desired inflation outcome, real GDP growth is projected to pick up from a little below 5 per cent in
2013-14 to a range of 5 to 6 per cent in 2014-15 albeit with downside risks to the central estimate of 5.5 per cent. Lead
indicators do not point to any sustained revival in industry and services as yet, and the outlook for the agricultural sector is
contingent upon the timely arrival and spread of the monsoon. Easing of domestic supply bottlenecks and progress on the
implementation of stalled projects already cleared should brighten up the growth outlook, as would stronger anticipated
export growth as the world economy picks up.
INDUSTRY STRUCTURE & DEVELOPMENTS
Food Grain/Paddy/Rice
As per Rice Market Monitor Report of the Food and Agriculture Organization (FAO) of United Nations first forecast, global
paddy production in 2014 could reach 751.0 million tonnes (500.7 million tonnes, milled basis), 0.8 percent more than
currently estimated for 2013 and a third consecutive season of subdued growth.
Global paddy production in 2013 is 744.9 million tonnes (496.6 million tonnes, milled basis), which would entail a relatively
low 1.1 percent increase from the previous season. The relatively modest performance of the rice sector over the season
was the result of climatic problems witnessed by several important producers in Asia, including China. On the other hand,
most of the other countries in the region harvested larger crops, with sizeable increases expected in India, Indonesia and
Pakistan.
Annexure-II Directors’ Report
Details and information of employees of the company who were in receipt of remuneration as prescribed under section
217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.
Mr. Balbir (60) Chairman and 1,50,00,000* Privately 42 24.33 20.07.1990 -Singh Uppal 13.10.1954 Managing educated
Director(Overallmanagement ofthe affairs of thecompany)
Mr. Janak (42) Joint Managing 75,00,000** Graduate 21 4.74 30.04.1992 -Raj Singh 08.04.1972 Director
(Overallmanagement ofthe affairs of thecompany)
*salary drawn @Rs.5 lacs per month upto 31-03-2013 and Rs.10 lacs per month wef 01-04-2013.
**salary drawn @Rs.2.5 lacs per month upto 31-03-2013 and Rs.5 lacs per month wef 01-04-2013.
Notes:
1. Information has been furnished on the basis of employees employed throughout the financial year, who were in
receipt of remuneration for that year which, in the aggregate, was not less than Rs. 60,00,000 per annum and those
employed for the part of the financial year, were in receipt of remuneration for any part of that year at a rate which, in
the aggregate, was not less than Rs. 5,00,000 per month. There was no person employed either throughout the
financial year or part thereof, who was holding either by himself or alongwith the spouse and dependent children 2%
or more of the shares of the company and drawing remuneration in excess of the remuneration drawn by the
Managing director / executive director.
2. Remuneration includes salary, commission, other allowances, payments and expenditures incurred on perquisites and
company’s contribution to Provident/Superannuation/Gratuity Funds, if any.
3. Mr. Balbir Singh Uppal, Chairman and Managing Director is father of Mr. Janak Raj Singh, Joint Managing Director. None
of the other employees is a relative of any director of the company.
Name of Employee Date of Birth (Nature of Remuneration (Years) (in %age) Employment Employment
Duties) (Rs.)
Age(Yrs.) Designation Gross Qualification Experience Shareholding Date of Last
1312 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
ECONOMIC OVERVIEW
Global Economy
Global activity has broadly strengthened during the second half of 2013 and is expected to improve further in 2014–15, with
much of the impetus coming from advanced economies. Inflation in these economies, however, has undershot projections,
reflecting still-large output gaps and recent commodity price declines. Activity in many emerging market economies has
disappointed in a less favorable external financial environment, although they continue to contribute more than two-thirds
of global growth. Their output growth is expected to be lifted by stronger exports to advanced economies. Looking ahead,
global growth is projected to strengthen from 3 percent in 2013 to 3.6 percent in 2014 and 3.9 percent in 2015 as per World
Economic Outlook Report by the International Monetary Fund (IMF) in April 2014. In advanced economies, growth is
expected to increase to about 2¼ percent in 2014–15, an improvement of about 1 percentage point compared with 2013.
Key drivers are a reduction in fiscal tightening, except in Japan, and still highly accommodative monetary conditions. Growth
will be strongest in the United States at about 2¾ percent. Growth is projected to be positive but varied in the euro area:
stronger in the core, but weaker in countries with high debt (both private and public) and financial fragmentation. In
emerging market and developing economies, growth is projected to pick up gradually from 4.7 percent in 2013 to about 5
percent in 2014 and 5¼ percent in 2015.
Indian Economy
Domestically, real GDP growth continued to be modest in 2013-14, with some strengthening of activity in services such as
trade, hotels, transport and communication, and financing, real estate and business services. Despite some positive
movement in more recent data, industrial activity continues to be a drag on the economy. In the quarters ahead, the boost
provided by robust agricultural production in 2013 may wane. Moreover, the outlook for the 2014 south-west monsoon
appears uncertain. Sluggishness in industrial activity, exports and several categories of services underlines the need to
revitalise productivity and competitiveness.
Contingent upon the desired inflation outcome, real GDP growth is projected to pick up from a little below 5 per cent in
2013-14 to a range of 5 to 6 per cent in 2014-15 albeit with downside risks to the central estimate of 5.5 per cent. Lead
indicators do not point to any sustained revival in industry and services as yet, and the outlook for the agricultural sector is
contingent upon the timely arrival and spread of the monsoon. Easing of domestic supply bottlenecks and progress on the
implementation of stalled projects already cleared should brighten up the growth outlook, as would stronger anticipated
export growth as the world economy picks up.
INDUSTRY STRUCTURE & DEVELOPMENTS
Food Grain/Paddy/Rice
As per Rice Market Monitor Report of the Food and Agriculture Organization (FAO) of United Nations first forecast, global
paddy production in 2014 could reach 751.0 million tonnes (500.7 million tonnes, milled basis), 0.8 percent more than
currently estimated for 2013 and a third consecutive season of subdued growth.
Global paddy production in 2013 is 744.9 million tonnes (496.6 million tonnes, milled basis), which would entail a relatively
low 1.1 percent increase from the previous season. The relatively modest performance of the rice sector over the season
was the result of climatic problems witnessed by several important producers in Asia, including China. On the other hand,
most of the other countries in the region harvested larger crops, with sizeable increases expected in India, Indonesia and
Pakistan.
Annexure-II Directors’ Report
Details and information of employees of the company who were in receipt of remuneration as prescribed under section
217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.
Mr. Balbir (60) Chairman and 1,50,00,000* Privately 42 24.33 20.07.1990 -Singh Uppal 13.10.1954 Managing educated
Director(Overallmanagement ofthe affairs of thecompany)
Mr. Janak (42) Joint Managing 75,00,000** Graduate 21 4.74 30.04.1992 -Raj Singh 08.04.1972 Director
(Overallmanagement ofthe affairs of thecompany)
*salary drawn @Rs.5 lacs per month upto 31-03-2013 and Rs.10 lacs per month wef 01-04-2013.
**salary drawn @Rs.2.5 lacs per month upto 31-03-2013 and Rs.5 lacs per month wef 01-04-2013.
Notes:
1. Information has been furnished on the basis of employees employed throughout the financial year, who were in
receipt of remuneration for that year which, in the aggregate, was not less than Rs. 60,00,000 per annum and those
employed for the part of the financial year, were in receipt of remuneration for any part of that year at a rate which, in
the aggregate, was not less than Rs. 5,00,000 per month. There was no person employed either throughout the
financial year or part thereof, who was holding either by himself or alongwith the spouse and dependent children 2%
or more of the shares of the company and drawing remuneration in excess of the remuneration drawn by the
Managing director / executive director.
2. Remuneration includes salary, commission, other allowances, payments and expenditures incurred on perquisites and
company’s contribution to Provident/Superannuation/Gratuity Funds, if any.
3. Mr. Balbir Singh Uppal, Chairman and Managing Director is father of Mr. Janak Raj Singh, Joint Managing Director. None
of the other employees is a relative of any director of the company.
Name of Employee Date of Birth (Nature of Remuneration (Years) (in %age) Employment Employment
Duties) (Rs.)
Age(Yrs.) Designation Gross Qualification Experience Shareholding Date of Last
1312 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Company is direct motivation for group of farmers to grow quality paddy. As the company has not only been traditional
procuring paddy from them but playing important role in cultivation and guiding on seed through expert groups. Company’s
representatives are present at all procurement stages, even in market to effectively liaison with concerned agencies. Hence,
the process of right from seeds to “consumer plate” is efficiently managed. Even we arrange our transport & logistics
services for warehousing.
The company’s plant, one of the largest and most modern paddy processing units in the world, is spread across 125 acres
(approx) and situated along the Chandigarh-Ludhiana National Highway, at Khamanon, Punjab, India. The plant has state-of
the-art machinery, custom-picked from all across the globe, including Japan, Germany, USA and Denmark. All stages of
operation of the plant are fully automatic and controlled by PLC. Our Industry is integrated with exclusive and specialized
Plants for production of Raw Rice, White Sella Rice, Golden Sella Rice and Steamed Rice. The grains are not subject to even
a slight human touch throughout the process. Company has about 1.20 Million MT per annum paddy processing capacity
complemented by over 500000 MT covered storage capacity in addition to 500000 MT of open storage. The company also
has its own logistics and handling set up.
For over 3 decades, the company has been known for its finest quality of rice, even when it was in wholesale non-basmati
category and now for its Pusa 1121 basmati rice. The Pusa 1121 Basmati Rice has been well accepted in the Middle East
countries (including Saudi Arabia) and USA which are major buyers of Indian Rice.
The Company offers related products in value chain of Rice supply chain from paddy to rice, rice to rice bran edible oil,
deoiled cake, and eco-friendly ‘Green Power’ generated from rice husk. The rice bran edible oil, which is an excellent
medium for cooking, is one of the best one can find, especially because of its fat-reducing qualities. The ‘Green Power’
generated from rice husk, a waste by-product, is also one of the cleanest varieties of power.
Company’s packaging is through fully automatic plant using the latest technology in tamper-proof bags, meeting the strictest
of international standards in packaging, ensuring unmatched long lasting quality, purity, aroma and taste. Company’s products
are also widely acclaimed and preferred for their unmatched, inherent and intrinsic nutritional values, health traits.
The company is “TRADING HOUSE” certified by the office of the “Joint Director General of Foreign Trade”, Ministry of
Commerce and Industries, Government of India.
Biomass power
In this system, biomass, bagasse, forestry and agro residue & agricultural wastes are used as fuel to produce electricity.
Biomass power plants in India are based mostly on agricultural wastes. Gasifier-based power plants are providing a great
solution for off-grid decentralized power and are lighting homes in several Indian states. While for providing grid-based
power 8-15 MW thermal biomass power plants are suitable for Indian conditions.
Energy from biomass is reliable as it is free of fluctuation unlike wind power and does not need storage to be used in times of
non-availability as is the case with solar. Still it is not the preferred renewable energy source till now, the primary reason that
may be cited is the biomass supply chain. Biomass availability is not certain for whole year. Biomass from agriculture is
available only after harvesting period which can stretch only for 2-3 months in a year. So there is a need to procure and then
store required quantity of biomass within this stipulated time.
Some of the Indian states leading the pack in establishing biomass-based power supply are Karnataka, Andhra Pradesh, and
Maharashtra. Ironically, states having agricultural-based economy have not properly been able to utilize the opportunity and
figure low on biomass energy utilization. Only Uttar Pradesh has utilized large part of the biomass potential in north Indian
States and that is mainly due to the sugarcane industry and the co-generation power plants. Interestingly Punjab and
Haryana don’t have much installed capacity in comparison to potential even though tariff rates are more than Rs. 5 per unit,
Management Discussion and Analysis ReportManagement Discussion and Analysis Report
Consistent with the more positive outlook for 2013 crops, since November FAO has lifted its forecast of global rice
utilization in 2013-2014 by 1.0 million tonnes to 490.3 million tonnes (milled basis), or 2.5 percent above the previous year.
In India, as per the Third Advance Estimates of Production of major crops grown in the country, the total foodgrain
production (2013-14) is likely to be 264.38 million tonnes (both in Kharif and Rabi Season) as compared to 257.13 Million
tonnes in 2012-13 (Final Estimates). Rice production in the Country in both kharif and Rabi Season is likely to be 106.29
million tonnes as compared to 105.24 million tonnes in 2012-13. Production of Pulses is expected to be 19.57 million
tonnes (both in Kharif and Rabi Season) as against 18.34 million tonnes in 2012-13.
FAO brought down the global estimate of 2013 deliveries to 37.3 million tonnes (milled basis), some 3 percent below the
2012 record. As for rice trade in calendar 2014, FAO’s forecast stands at 39.3 million tonnes. The revision reflects
expectations of larger imports by Bangladesh, Cote d’Ivoire, Malaysia, Nigeria, Senegal, Sri Lanka and South Africa, while
projected deliveries to Brazil and the European Union were lowered. The revised forecast of 39.3 million tonnes would
imply a strong recovery of global trade in rice during calendar 2014.
Export quotations have tended to be somewhat less varied in India, where, ahead of the secondary Rabi harvest, downward
pressure from a January lapse in demand and a weaker currency was offset by ongoing Government purchases and a
subsequent appreciation of the Rupee. Although lagging behind year-earlier levels, official procurement in India remains
comparatively large, with 25.7 million tonnes of rice reportedly purchased by the Government by 21 March 2014.
In the 2013-14 financial year that ended on March 31, India’s total rice exports stood at a record 10.5 million tonnes,
comprising 4 million tonnes aromatic basmati rice and 6.5 million tonnes of the non-basmati variety.
India toppled Thailand in 2012 to become the world’s biggest rice exporter after the government lifted a four-year-old ban
on non-basmati rice shipments in 2011 to trim a growing mountain of the grain following bountiful harvests. India’s rice
exports could slide by nearly a quarter this year and knock the country off its perch as top exporter of the grain due to stiff
competition from Southeast Asian rivals that have recently slashed prices.
While India’s shipments of the basmati variety are likely to remain steady in 2014-15 at around 4 million tonnes, total rice
exports could drop to 8 million tonnes due to the slide in exports of non-basmati rice.
stFood grains stock in Central Pool as on 31 March, 2014 (FCI data)
Figure in Million Tonnes
Rice 20.28
Wheat 17.83
Total 38.11
Unmilled Paddy 15.34
COMPANY OVERVIEW & ROLE
Lakshmi Energy and Foods Limited, one of the largest producers of rice in the world, is in the business of agro
processing and grain marketing. Having come a long way since its inception, company’s presence is all pervasive starting
from grass root level of farmers, mandi yards through representatives, procurement, transportation, warehousing, paddy
processing, generating other by-products like rice bran oil, de-oiled cakes and using husk for power plant.
1514 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Company is direct motivation for group of farmers to grow quality paddy. As the company has not only been traditional
procuring paddy from them but playing important role in cultivation and guiding on seed through expert groups. Company’s
representatives are present at all procurement stages, even in market to effectively liaison with concerned agencies. Hence,
the process of right from seeds to “consumer plate” is efficiently managed. Even we arrange our transport & logistics
services for warehousing.
The company’s plant, one of the largest and most modern paddy processing units in the world, is spread across 125 acres
(approx) and situated along the Chandigarh-Ludhiana National Highway, at Khamanon, Punjab, India. The plant has state-of
the-art machinery, custom-picked from all across the globe, including Japan, Germany, USA and Denmark. All stages of
operation of the plant are fully automatic and controlled by PLC. Our Industry is integrated with exclusive and specialized
Plants for production of Raw Rice, White Sella Rice, Golden Sella Rice and Steamed Rice. The grains are not subject to even
a slight human touch throughout the process. Company has about 1.20 Million MT per annum paddy processing capacity
complemented by over 500000 MT covered storage capacity in addition to 500000 MT of open storage. The company also
has its own logistics and handling set up.
For over 3 decades, the company has been known for its finest quality of rice, even when it was in wholesale non-basmati
category and now for its Pusa 1121 basmati rice. The Pusa 1121 Basmati Rice has been well accepted in the Middle East
countries (including Saudi Arabia) and USA which are major buyers of Indian Rice.
The Company offers related products in value chain of Rice supply chain from paddy to rice, rice to rice bran edible oil,
deoiled cake, and eco-friendly ‘Green Power’ generated from rice husk. The rice bran edible oil, which is an excellent
medium for cooking, is one of the best one can find, especially because of its fat-reducing qualities. The ‘Green Power’
generated from rice husk, a waste by-product, is also one of the cleanest varieties of power.
Company’s packaging is through fully automatic plant using the latest technology in tamper-proof bags, meeting the strictest
of international standards in packaging, ensuring unmatched long lasting quality, purity, aroma and taste. Company’s products
are also widely acclaimed and preferred for their unmatched, inherent and intrinsic nutritional values, health traits.
The company is “TRADING HOUSE” certified by the office of the “Joint Director General of Foreign Trade”, Ministry of
Commerce and Industries, Government of India.
Biomass power
In this system, biomass, bagasse, forestry and agro residue & agricultural wastes are used as fuel to produce electricity.
Biomass power plants in India are based mostly on agricultural wastes. Gasifier-based power plants are providing a great
solution for off-grid decentralized power and are lighting homes in several Indian states. While for providing grid-based
power 8-15 MW thermal biomass power plants are suitable for Indian conditions.
Energy from biomass is reliable as it is free of fluctuation unlike wind power and does not need storage to be used in times of
non-availability as is the case with solar. Still it is not the preferred renewable energy source till now, the primary reason that
may be cited is the biomass supply chain. Biomass availability is not certain for whole year. Biomass from agriculture is
available only after harvesting period which can stretch only for 2-3 months in a year. So there is a need to procure and then
store required quantity of biomass within this stipulated time.
Some of the Indian states leading the pack in establishing biomass-based power supply are Karnataka, Andhra Pradesh, and
Maharashtra. Ironically, states having agricultural-based economy have not properly been able to utilize the opportunity and
figure low on biomass energy utilization. Only Uttar Pradesh has utilized large part of the biomass potential in north Indian
States and that is mainly due to the sugarcane industry and the co-generation power plants. Interestingly Punjab and
Haryana don’t have much installed capacity in comparison to potential even though tariff rates are more than Rs. 5 per unit,
Management Discussion and Analysis ReportManagement Discussion and Analysis Report
Consistent with the more positive outlook for 2013 crops, since November FAO has lifted its forecast of global rice
utilization in 2013-2014 by 1.0 million tonnes to 490.3 million tonnes (milled basis), or 2.5 percent above the previous year.
In India, as per the Third Advance Estimates of Production of major crops grown in the country, the total foodgrain
production (2013-14) is likely to be 264.38 million tonnes (both in Kharif and Rabi Season) as compared to 257.13 Million
tonnes in 2012-13 (Final Estimates). Rice production in the Country in both kharif and Rabi Season is likely to be 106.29
million tonnes as compared to 105.24 million tonnes in 2012-13. Production of Pulses is expected to be 19.57 million
tonnes (both in Kharif and Rabi Season) as against 18.34 million tonnes in 2012-13.
FAO brought down the global estimate of 2013 deliveries to 37.3 million tonnes (milled basis), some 3 percent below the
2012 record. As for rice trade in calendar 2014, FAO’s forecast stands at 39.3 million tonnes. The revision reflects
expectations of larger imports by Bangladesh, Cote d’Ivoire, Malaysia, Nigeria, Senegal, Sri Lanka and South Africa, while
projected deliveries to Brazil and the European Union were lowered. The revised forecast of 39.3 million tonnes would
imply a strong recovery of global trade in rice during calendar 2014.
Export quotations have tended to be somewhat less varied in India, where, ahead of the secondary Rabi harvest, downward
pressure from a January lapse in demand and a weaker currency was offset by ongoing Government purchases and a
subsequent appreciation of the Rupee. Although lagging behind year-earlier levels, official procurement in India remains
comparatively large, with 25.7 million tonnes of rice reportedly purchased by the Government by 21 March 2014.
In the 2013-14 financial year that ended on March 31, India’s total rice exports stood at a record 10.5 million tonnes,
comprising 4 million tonnes aromatic basmati rice and 6.5 million tonnes of the non-basmati variety.
India toppled Thailand in 2012 to become the world’s biggest rice exporter after the government lifted a four-year-old ban
on non-basmati rice shipments in 2011 to trim a growing mountain of the grain following bountiful harvests. India’s rice
exports could slide by nearly a quarter this year and knock the country off its perch as top exporter of the grain due to stiff
competition from Southeast Asian rivals that have recently slashed prices.
While India’s shipments of the basmati variety are likely to remain steady in 2014-15 at around 4 million tonnes, total rice
exports could drop to 8 million tonnes due to the slide in exports of non-basmati rice.
stFood grains stock in Central Pool as on 31 March, 2014 (FCI data)
Figure in Million Tonnes
Rice 20.28
Wheat 17.83
Total 38.11
Unmilled Paddy 15.34
COMPANY OVERVIEW & ROLE
Lakshmi Energy and Foods Limited, one of the largest producers of rice in the world, is in the business of agro
processing and grain marketing. Having come a long way since its inception, company’s presence is all pervasive starting
from grass root level of farmers, mandi yards through representatives, procurement, transportation, warehousing, paddy
processing, generating other by-products like rice bran oil, de-oiled cakes and using husk for power plant.
1514 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Management Discussion and Analysis Report
The company also plans to construct Corporate Complex which will include Corporate Office, R&D, Training Center with
mini auditorium, Recreation gym etc.
New expansion and modernization would be helpful in producing the world’s best quality products and further achieve
economies of scale resulting in vastly improved bottom line.
SEGMENT-WISE/PRODUCT-WISE PERFORMANCE
The company has two business segments viz; Agri-based and Energy. The revenue from Agri-based business was Rs.18403.01 stmillions and revenue from Energy Division was Rs.89.40 millions during the period (18 months) ended 31 March, 2014.
The company has not been selling electricity/power in Open Access as power prices were not remunerative. However, the
company is operating and generating power and steam for captive consumption and also selling surplus electricity/power to
Punjab State Power Corporation Limited (PSPCL).
Rice continues to be the dominant product of our Company followed by other by-products like Rice Bran Oil and De-Oiled
Cake.
Break-up of Revenue from Operations
Rs.in millions
Food Grains 17290.55
Traded Goods 715.49
Power 89.40
Rice Bran Oil 384.26
Others 12.71
Total 18492.41
OUTLOOK
Based on FAO’s first forecast for the season, global paddy production in 2014 is set to reach 751.0 million tonnes (500.7
million tonnes, milled basis). FAO sees global rice utilization 2014-15 reaching 502.0 million tonnes. Taking into account a
projected 1.4 percent increase in world population, the average rice per caput food intake would rise marginally above the
2013-14 estimate of 56.9 kilos, to 57.0 kilos.
As most countries in Asia will not launch the 2014 season until the arrival of monsoon rains over the region, FAO tentatively
forecast production in Asia to expand by 3.7 million tonnes to 679.5 million tonnes (453.1 million tonnes, milled basis).
As to prospects for 2014, FAO anticipates production in India to expand further to 160.5 million tonnes (107.0 million
tonnes, milled basis), up 1 percent year-on-year. The forecast is rather tentative at this stage, as the season will only be
launched with the arrival of the monsoon early in June. The performance of the seasonal rains will be critical to the
development of the main Kharif crop, which accounts for 86 percent of the country’s overall production and is
predominantly cultivated under rainfed conditions. On this backdrop, early indications of a possible occurrence of an El
Niño event during the northern-hemisphere summer are particularly worrisome, as the climatic phenomenon is often
associated with deficient monsoon rainfall. Although the first official forecast of monsoon rains over India has yet to be
released, officials have already indicated that contingency plans are ready to be put in place to avert the potential negative
impact of rainfall anomalies.
Forecast of 2014 exports by India is 9.5 million tonnes, which is 200 000 tonnes more than last envisaged, but 10 percent
less than in 2013.
Management Discussion and Analysis Report
which are better than most of the states. This can be attributed to the fact that these tariffs were implemented very recently
and it will take time to reflect the capacity utilization.
The electricity generation could be cheaper than coal if biomass could be sourced economically. Biomass power plants are
not able to run power plants solely on biomass economically which can be attributed to:
?Biomass price increases very fast after commissioning of power project and therefore government tariff policy needs
an annual revision
?Lack of mechanization in Indian Agriculture Sector
?Defragmented land holdings
?Most of the farmers are small or marginal
The company has also realized its dream of producing “green energy” from husk / biomass by setting up biomass based
power plant of 30 MW capacity. The company has not been selling electricity/power in Open Access as power prices are not
remunerative. The company had entered into a Power Purchase Agreement in March, 2013 with Punjab State Power
Corporation Limited (PSPCL) for a period of 20 years to supply electricity/power. However, the company is operating and
generating power and steam for captive consumption mainly and the surplus electricity/power is sold to PSPCL.
OPPORTUNITIES & THREATS
Opportunities
Rice is the most important staple food for a large part of the world’s human population. There is growing demand for rice
from both the international and domestic market. As consumers, both in India as well as globally, become more perceptive
and conscious about food quality, the use of Basmati Rice is growing at a much higher rate than non-basmati rice. With the
change in life style, mindset and preferences of the people, the demand for packaged rice and rice bran oil is also growing.
The proliferation of modern retailing has helped fuel the consumption of a higher quantum of branded products, as Indian
consumers are fast embracing the mall culture and organized retail. This offers an attractive channel for the Company to
augment its branded sales of basmati rice in the domestic market. There is an immense opportunity unfolding for our
company as more and more consumers are migrating from unbranded to branded rice and from economy brands to
premium brands. The Company also stands to benefit immensely due to huge popularity and demand for Pusa 1121 basmati.
Threats
Downturn in the global economy adversely impacting export plans, growing competition from other companies operating
in similar segment, the Government policies in relation to procurement of paddy/rice and their pricing for the Public
Distribution System would likely to have impact on the company in as much as the rice industry in general. However, the
large production capacity of the company including by-product processing, Large storage and warehousing, Company’s
growing distribution networks both in the Export Markets and Branded Packaged Basmati Rice in Domestic Markets will
mitigate potential risks to the Company.
Expansion & Modernization by LEAF
The Company is primarily engaged in the transportation, handling and storage of food grains. In the process, the prime
motive is to preserve and store the foodgrains. Warehousing infrastructure and packing plays key role in process efficiency
and profitability as also earn tax benefits under the tax laws. LEAF has been continuously scaling up its capacities for
processing of paddy and by-products. In consonance with growth, your company has taken preemptive steps to augment
warehousing capacity within factory premises. Hence, cumulative covered warehousing capacity is about 500000 MT in
addition to 500000 MT of open storage.
1716 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Management Discussion and Analysis Report
The company also plans to construct Corporate Complex which will include Corporate Office, R&D, Training Center with
mini auditorium, Recreation gym etc.
New expansion and modernization would be helpful in producing the world’s best quality products and further achieve
economies of scale resulting in vastly improved bottom line.
SEGMENT-WISE/PRODUCT-WISE PERFORMANCE
The company has two business segments viz; Agri-based and Energy. The revenue from Agri-based business was Rs.18403.01 stmillions and revenue from Energy Division was Rs.89.40 millions during the period (18 months) ended 31 March, 2014.
The company has not been selling electricity/power in Open Access as power prices were not remunerative. However, the
company is operating and generating power and steam for captive consumption and also selling surplus electricity/power to
Punjab State Power Corporation Limited (PSPCL).
Rice continues to be the dominant product of our Company followed by other by-products like Rice Bran Oil and De-Oiled
Cake.
Break-up of Revenue from Operations
Rs.in millions
Food Grains 17290.55
Traded Goods 715.49
Power 89.40
Rice Bran Oil 384.26
Others 12.71
Total 18492.41
OUTLOOK
Based on FAO’s first forecast for the season, global paddy production in 2014 is set to reach 751.0 million tonnes (500.7
million tonnes, milled basis). FAO sees global rice utilization 2014-15 reaching 502.0 million tonnes. Taking into account a
projected 1.4 percent increase in world population, the average rice per caput food intake would rise marginally above the
2013-14 estimate of 56.9 kilos, to 57.0 kilos.
As most countries in Asia will not launch the 2014 season until the arrival of monsoon rains over the region, FAO tentatively
forecast production in Asia to expand by 3.7 million tonnes to 679.5 million tonnes (453.1 million tonnes, milled basis).
As to prospects for 2014, FAO anticipates production in India to expand further to 160.5 million tonnes (107.0 million
tonnes, milled basis), up 1 percent year-on-year. The forecast is rather tentative at this stage, as the season will only be
launched with the arrival of the monsoon early in June. The performance of the seasonal rains will be critical to the
development of the main Kharif crop, which accounts for 86 percent of the country’s overall production and is
predominantly cultivated under rainfed conditions. On this backdrop, early indications of a possible occurrence of an El
Niño event during the northern-hemisphere summer are particularly worrisome, as the climatic phenomenon is often
associated with deficient monsoon rainfall. Although the first official forecast of monsoon rains over India has yet to be
released, officials have already indicated that contingency plans are ready to be put in place to avert the potential negative
impact of rainfall anomalies.
Forecast of 2014 exports by India is 9.5 million tonnes, which is 200 000 tonnes more than last envisaged, but 10 percent
less than in 2013.
Management Discussion and Analysis Report
which are better than most of the states. This can be attributed to the fact that these tariffs were implemented very recently
and it will take time to reflect the capacity utilization.
The electricity generation could be cheaper than coal if biomass could be sourced economically. Biomass power plants are
not able to run power plants solely on biomass economically which can be attributed to:
?Biomass price increases very fast after commissioning of power project and therefore government tariff policy needs
an annual revision
?Lack of mechanization in Indian Agriculture Sector
?Defragmented land holdings
?Most of the farmers are small or marginal
The company has also realized its dream of producing “green energy” from husk / biomass by setting up biomass based
power plant of 30 MW capacity. The company has not been selling electricity/power in Open Access as power prices are not
remunerative. The company had entered into a Power Purchase Agreement in March, 2013 with Punjab State Power
Corporation Limited (PSPCL) for a period of 20 years to supply electricity/power. However, the company is operating and
generating power and steam for captive consumption mainly and the surplus electricity/power is sold to PSPCL.
OPPORTUNITIES & THREATS
Opportunities
Rice is the most important staple food for a large part of the world’s human population. There is growing demand for rice
from both the international and domestic market. As consumers, both in India as well as globally, become more perceptive
and conscious about food quality, the use of Basmati Rice is growing at a much higher rate than non-basmati rice. With the
change in life style, mindset and preferences of the people, the demand for packaged rice and rice bran oil is also growing.
The proliferation of modern retailing has helped fuel the consumption of a higher quantum of branded products, as Indian
consumers are fast embracing the mall culture and organized retail. This offers an attractive channel for the Company to
augment its branded sales of basmati rice in the domestic market. There is an immense opportunity unfolding for our
company as more and more consumers are migrating from unbranded to branded rice and from economy brands to
premium brands. The Company also stands to benefit immensely due to huge popularity and demand for Pusa 1121 basmati.
Threats
Downturn in the global economy adversely impacting export plans, growing competition from other companies operating
in similar segment, the Government policies in relation to procurement of paddy/rice and their pricing for the Public
Distribution System would likely to have impact on the company in as much as the rice industry in general. However, the
large production capacity of the company including by-product processing, Large storage and warehousing, Company’s
growing distribution networks both in the Export Markets and Branded Packaged Basmati Rice in Domestic Markets will
mitigate potential risks to the Company.
Expansion & Modernization by LEAF
The Company is primarily engaged in the transportation, handling and storage of food grains. In the process, the prime
motive is to preserve and store the foodgrains. Warehousing infrastructure and packing plays key role in process efficiency
and profitability as also earn tax benefits under the tax laws. LEAF has been continuously scaling up its capacities for
processing of paddy and by-products. In consonance with growth, your company has taken preemptive steps to augment
warehousing capacity within factory premises. Hence, cumulative covered warehousing capacity is about 500000 MT in
addition to 500000 MT of open storage.
1716 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Management Discussion and Analysis Report
As regards our company the focus area has been the production of Pusa 1121 Basmati Rice for exports & for strengthening
our branded “Lakshmi Foods” Pusa 1121 Basmati Rice in the Indian Market. The company has appointed C&F Agents and
Distributors in many parts of India for distribution of “Lakshmi Foods” brand Pusa 1121 Basmati Rice in more than 30
variants.
To strengthen its performance, positioning and profitability in the competitive Basmati and rice industry, the Company
intends to scale up capacity utilization, enhance margins by deriving higher realizations from byproducts; optimizing power
consumption through its captive husk-based power plant, explore and add new emerging and fast growing markets in the
international space to derive exports revenues.
RISKS & CONCERNS
Supply of food grains is affected by many external factors such as climatic conditions and the current harvesting or peak
season. Bumper crops pull down prices while poor production reflects in high prices. Besides this, Economic slowdown and
government policies/regulations play a significant role in determining prices and demand for the food grains. A substantial
portion of our revenues come from exports to the overseas markets. Any change in the socio-economic environment in
those markets may impact our business. Rice being a primary staple in the country, any change in government policies to
export and any adverse fluctuation in the exchange rate may also impact our business and profitability.
RISK MITIGATION
The Company maintains a healthy stock to ensure continuous paddy production and supply. Moreover, in a short supply
situation the yield goes up with rising prices and sets off the impact of fall in stocks to some extent. Our strategy of evenly
balancing the revenue mix between exports and domestic sales is also aimed at mitigating the export risk in adverse times.
We also regularly undertake several initiatives to penetrate in new geographies. We have countered the risk of increasing
competition in the domestic market, by increasing operations in the premium branded rice segment. In order to understand
the fast changing and evolving expectations of consumers from our brand, we will continue to make significant investments
towards tracking consumer’s behavior and respond with their expectations from the brand. The Company’s business is also
exposed to other operating risks, which are mitigated through regular monitoring and corrective actions.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established adequate systems for internal control relating to purchase of raw materials, components,
plant & machinery, equipments and other assets and sale of goods which are commensurate with size and nature of business
of your Company. The Company has got effective system of accounting, internal audit and administrative controls which
ensure that all assets are safeguarded and protected against loss. The company is successfully running SAP ERP system. The
Company has well defined organizational structure with clear functional authority limits for approval of all transactions.
The Company has also strong reporting system, which evaluates and forewarns the management on issues related to
compliance. The performance of the Company is regularly reviewed by the Board of Directors to ensure that it is in keeping
with the overall corporate policy and in line with pre-set objectives. These business control procedures ensure efficient use
and protection of the resources and compliance with the policies, procedures and status.
HUMAN RESOURCE DEVELOPMENT
The Company’s Human Resource philosophy is to identify the attitude, aptitude of each employee, provide motivation to
them and place them in a position where they can contribute to the growth and performance of the Company to the best of
their ability. The Company provides to the staff healthy environment and maintains cordial relations with the employees. The
company treats the people as the most valuable asset and has a system of performance appraisal and career development.
Steps have also been undertaken towards manpower rationalization through multi task training and job rotation.
Management Discussion and Analysis Report
The Company has ensured recognition of meritorious performance and achievements through timely rewards. stRecognition is also in the form of increased responsibility and job enrichment. As on 31 March, 2014, there are 297
employees are on the roll of the Company.
POLLUTION AND ENVIRONMENT CONTROL
The Company continues to be compliant with applicable environment laws and regulations. The Company is generating
power from biomass waste and is keeping the environment clean through control of pollutants.
Safety and health of people working in and around the premises of the Company continues to receive the highest
importance from the management. Employees are continuously trained and coached in safety and are provided appropriate
safety equipments.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Company’s objective, projections, estimates, expectations may
be “forward-looking statements” within the meaning of applicable laws and regulations. Actual results could differ materially from
those expressed or implied. Important factors that could make a difference to the Company’s operations include economic conditions
affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates / would operate,
changes in the Government regulations, tax laws and other statutes and other incidental factors.
For and on Behalf of the Board
Sd/-
Place: Chandigarh Balbir Singh Uppal
Date: 30.05.2014 Chairman and Managing Director
1918 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Management Discussion and Analysis Report
As regards our company the focus area has been the production of Pusa 1121 Basmati Rice for exports & for strengthening
our branded “Lakshmi Foods” Pusa 1121 Basmati Rice in the Indian Market. The company has appointed C&F Agents and
Distributors in many parts of India for distribution of “Lakshmi Foods” brand Pusa 1121 Basmati Rice in more than 30
variants.
To strengthen its performance, positioning and profitability in the competitive Basmati and rice industry, the Company
intends to scale up capacity utilization, enhance margins by deriving higher realizations from byproducts; optimizing power
consumption through its captive husk-based power plant, explore and add new emerging and fast growing markets in the
international space to derive exports revenues.
RISKS & CONCERNS
Supply of food grains is affected by many external factors such as climatic conditions and the current harvesting or peak
season. Bumper crops pull down prices while poor production reflects in high prices. Besides this, Economic slowdown and
government policies/regulations play a significant role in determining prices and demand for the food grains. A substantial
portion of our revenues come from exports to the overseas markets. Any change in the socio-economic environment in
those markets may impact our business. Rice being a primary staple in the country, any change in government policies to
export and any adverse fluctuation in the exchange rate may also impact our business and profitability.
RISK MITIGATION
The Company maintains a healthy stock to ensure continuous paddy production and supply. Moreover, in a short supply
situation the yield goes up with rising prices and sets off the impact of fall in stocks to some extent. Our strategy of evenly
balancing the revenue mix between exports and domestic sales is also aimed at mitigating the export risk in adverse times.
We also regularly undertake several initiatives to penetrate in new geographies. We have countered the risk of increasing
competition in the domestic market, by increasing operations in the premium branded rice segment. In order to understand
the fast changing and evolving expectations of consumers from our brand, we will continue to make significant investments
towards tracking consumer’s behavior and respond with their expectations from the brand. The Company’s business is also
exposed to other operating risks, which are mitigated through regular monitoring and corrective actions.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established adequate systems for internal control relating to purchase of raw materials, components,
plant & machinery, equipments and other assets and sale of goods which are commensurate with size and nature of business
of your Company. The Company has got effective system of accounting, internal audit and administrative controls which
ensure that all assets are safeguarded and protected against loss. The company is successfully running SAP ERP system. The
Company has well defined organizational structure with clear functional authority limits for approval of all transactions.
The Company has also strong reporting system, which evaluates and forewarns the management on issues related to
compliance. The performance of the Company is regularly reviewed by the Board of Directors to ensure that it is in keeping
with the overall corporate policy and in line with pre-set objectives. These business control procedures ensure efficient use
and protection of the resources and compliance with the policies, procedures and status.
HUMAN RESOURCE DEVELOPMENT
The Company’s Human Resource philosophy is to identify the attitude, aptitude of each employee, provide motivation to
them and place them in a position where they can contribute to the growth and performance of the Company to the best of
their ability. The Company provides to the staff healthy environment and maintains cordial relations with the employees. The
company treats the people as the most valuable asset and has a system of performance appraisal and career development.
Steps have also been undertaken towards manpower rationalization through multi task training and job rotation.
Management Discussion and Analysis Report
The Company has ensured recognition of meritorious performance and achievements through timely rewards. stRecognition is also in the form of increased responsibility and job enrichment. As on 31 March, 2014, there are 297
employees are on the roll of the Company.
POLLUTION AND ENVIRONMENT CONTROL
The Company continues to be compliant with applicable environment laws and regulations. The Company is generating
power from biomass waste and is keeping the environment clean through control of pollutants.
Safety and health of people working in and around the premises of the Company continues to receive the highest
importance from the management. Employees are continuously trained and coached in safety and are provided appropriate
safety equipments.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Company’s objective, projections, estimates, expectations may
be “forward-looking statements” within the meaning of applicable laws and regulations. Actual results could differ materially from
those expressed or implied. Important factors that could make a difference to the Company’s operations include economic conditions
affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates / would operate,
changes in the Government regulations, tax laws and other statutes and other incidental factors.
For and on Behalf of the Board
Sd/-
Place: Chandigarh Balbir Singh Uppal
Date: 30.05.2014 Chairman and Managing Director
1918 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Mr. Nirdosh Bali 12 Yes Nil Nil
Mr. Kanwal Jit Singh Jolly 12 Yes Nil Nil
Mr. V.K Mishra 2 Yes 1 Nil
Mr.Vilas Unavane 2 No Nil Nil
2. Mr. Balbir Singh Uppal is the father of Mr. Janak Raj Singh.
3. Mr. Balbir Singh Uppal, Mr. Janak Raj Singh and Mrs. Vijay Luxmi belong to Promoter Group.
Changes in the Directorate
During the year, Mr. Vilas Unavane resigned from the position of Independent Director.
st stDuring the period 1 October, 2012 to 31 March, 2014, the board of directors of the company met 12 times on the
following dates: -
th10 November 2012
th14 February 2013
nd22 February 2013
th17 April 2013
nd22 April 2013
rd3 May 2013
th5 July 2013
th17 July 2013
th29 November 2013
th30 December 2013
th4 February 2014
th12 February 2014
Shareholding of Non-Executive Directors
Mrs.Vijay Luxmi Non-Executive Director 19,71,100
Apart from the above, none of the Non-Executive (including Independent) Directors hold any shares (as own or on
behalf of other person on beneficial basis) in the Company.
Information Supplied to the Board of Directors of the company.
The Board of Directors of the company were supplied with all relevant information and supporting papers, which
were required, to transact the business specified in the agenda of Meetings of the board of directors of the company
held.
1. Mr.Vilas Unavane ceased to be director w.e.f March 10, 2014.
Board Meetings:
Date of the Meetings
Name of the Director Category No. of shares held
1. Company’s Philosophy on Corporate Governance
Corporate Governance practices enable a company to attract talent, maximize long-term shareholders’ value and
preserve the interests of multiple stakeholders, including society at large. The company always embarked on good
Corporate Governance echoing philosophy of high level of transparency and accountability in the functioning and
conduct of business, ensuring regulatory compliance meeting its obligation towards customers, employees and
shareholders and Society.
Being a value-driven organization, the company has always worked towards building trust with shareholders,
employees, customers, suppliers and other stakeholders based on principles of good corporate governance viz.
integrity, equity, transparency, fairness, disclosure, accountability and commitment to values.
The company fosters the culture in which high standards of ethical behaviour, individual accountability and
transparent disclosure are ingrained in all its business dealings and shared by its board of directors, management and
employees. The company has established systems and procedures to ensure that its board of directors is well-
informed and well-equipped to fulfill its overall responsibilities and to provide the management with a strategic
direction needed to create long term shareholder value.
2. Board of Directors
Composition of the Board
The board of directors of the company has an optimum combination of Executive, Non-Executive and Independent stdirectors. As on 31 March, 2014, the board of directors of the company consisted of 8 members. Three directors
including Chairman are Executive; one is Non-Executive and four are Non-Executive Independent.
The details of directors with regard to their outside directorships, committee positions as well as attendance at
meeting of the board of directors of the company / annual general meeting are as follows:
Executive Directors (excluding Private Companies, ForeignCompanies & Sec 25 Companies)
Mr. Balbir Singh Uppal 10 Yes 7 Nil
Mr. Janak Raj Singh 12 Yes 4 Nil
Mr. I. S. Gumber 1 No 2 Nil
Non-Executive Director
Mrs. Vijay Luxmi 7 No Nil Nil
Non-Executive andIndependent Directors
Mr. Amarjit Singh 12 Yes 1 Nil
DirectorBoard last AGM Directorships Membership(s)/Meetings Attended Chairmanship(s)Attended of Board
Committeeof otherCompanies
No. of the Whether No. of other No. of
CORPORATE GOVERNANCE REPORT
2120 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Mr. Nirdosh Bali 12 Yes Nil Nil
Mr. Kanwal Jit Singh Jolly 12 Yes Nil Nil
Mr. V.K Mishra 2 Yes 1 Nil
Mr.Vilas Unavane 2 No Nil Nil
2. Mr. Balbir Singh Uppal is the father of Mr. Janak Raj Singh.
3. Mr. Balbir Singh Uppal, Mr. Janak Raj Singh and Mrs. Vijay Luxmi belong to Promoter Group.
Changes in the Directorate
During the year, Mr. Vilas Unavane resigned from the position of Independent Director.
st stDuring the period 1 October, 2012 to 31 March, 2014, the board of directors of the company met 12 times on the
following dates: -
th10 November 2012
th14 February 2013
nd22 February 2013
th17 April 2013
nd22 April 2013
rd3 May 2013
th5 July 2013
th17 July 2013
th29 November 2013
th30 December 2013
th4 February 2014
th12 February 2014
Shareholding of Non-Executive Directors
Mrs.Vijay Luxmi Non-Executive Director 19,71,100
Apart from the above, none of the Non-Executive (including Independent) Directors hold any shares (as own or on
behalf of other person on beneficial basis) in the Company.
Information Supplied to the Board of Directors of the company.
The Board of Directors of the company were supplied with all relevant information and supporting papers, which
were required, to transact the business specified in the agenda of Meetings of the board of directors of the company
held.
1. Mr.Vilas Unavane ceased to be director w.e.f March 10, 2014.
Board Meetings:
Date of the Meetings
Name of the Director Category No. of shares held
1. Company’s Philosophy on Corporate Governance
Corporate Governance practices enable a company to attract talent, maximize long-term shareholders’ value and
preserve the interests of multiple stakeholders, including society at large. The company always embarked on good
Corporate Governance echoing philosophy of high level of transparency and accountability in the functioning and
conduct of business, ensuring regulatory compliance meeting its obligation towards customers, employees and
shareholders and Society.
Being a value-driven organization, the company has always worked towards building trust with shareholders,
employees, customers, suppliers and other stakeholders based on principles of good corporate governance viz.
integrity, equity, transparency, fairness, disclosure, accountability and commitment to values.
The company fosters the culture in which high standards of ethical behaviour, individual accountability and
transparent disclosure are ingrained in all its business dealings and shared by its board of directors, management and
employees. The company has established systems and procedures to ensure that its board of directors is well-
informed and well-equipped to fulfill its overall responsibilities and to provide the management with a strategic
direction needed to create long term shareholder value.
2. Board of Directors
Composition of the Board
The board of directors of the company has an optimum combination of Executive, Non-Executive and Independent stdirectors. As on 31 March, 2014, the board of directors of the company consisted of 8 members. Three directors
including Chairman are Executive; one is Non-Executive and four are Non-Executive Independent.
The details of directors with regard to their outside directorships, committee positions as well as attendance at
meeting of the board of directors of the company / annual general meeting are as follows:
Executive Directors (excluding Private Companies, ForeignCompanies & Sec 25 Companies)
Mr. Balbir Singh Uppal 10 Yes 7 Nil
Mr. Janak Raj Singh 12 Yes 4 Nil
Mr. I. S. Gumber 1 No 2 Nil
Non-Executive Director
Mrs. Vijay Luxmi 7 No Nil Nil
Non-Executive andIndependent Directors
Mr. Amarjit Singh 12 Yes 1 Nil
DirectorBoard last AGM Directorships Membership(s)/Meetings Attended Chairmanship(s)Attended of Board
Committeeof otherCompanies
No. of the Whether No. of other No. of
CORPORATE GOVERNANCE REPORT
2120 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
4. Nomination and Remuneration Committee
(formerly known as Remuneration Committee)
Composition & Terms of Reference
The Remuneration Committee was renamed as Nomination and Remuneration Committee in compliance of
Companies Act, 2013. The Nomination and Remuneration Committee of the Board of Directors of the company
comprises of three directors namely Mr. Nirdosh Bali (non-executive independent director) - as Chairman,
Mr. Amarjit Singh (non-executive independent director) and Mrs. Vijay Luxmi (non-executive director) as members.
The Committee was constituted to approve the remuneration payable to Managing Director, Whole time Director
and Executive Directors of the company. Thus, the Committee shall have the meetings as and when so required. ndDuring the year, one meeting was held on 22 February, 2013.
The attendance of members of the Nomination and Remuneration Committee at the Meeting is as follows:
1. Mr. Nirdosh Bali Chairman 1
2. Mr. Amarjit Singh Member 1
3. Mrs. Vijay Luxmi Member 1
Remuneration Policy of the Company
The company is presently paying remuneration to Mr. Balbir Singh Uppal, the Chairman & Managing Director and Mr thJanak Raj Singh, Joint Managing Director. Mr. I. S. Gumber, Executive Director was paid remuneration upto 30
September, 2013. Other than that, company is not paying remuneration to any other director. No significant material
transactions have been made with the non-executive directors vis-à-vis the company.
stDetails of the Directors’ Remuneration for the period ended 31 March 2014.
Mr. Balbir Singh Uppal Nil 1,50,00,000* Nil 1,50,00,000* 16175985(24.33%)
Mr. Janak Raj Singh Nil 75,00,000** Nil 75,00,000** 2993645(4.74%)
Mr. I. S. Gumber Nil 16,50,000*** Nil 16,50,000*** 189891(0.30%)
Mrs. Vijay Luxmi Nil Nil Nil Nil 1971100(3.12%)
Mr. Amarjit Singh Nil Nil Nil Nil -
Mr. Nirdosh Bali 60,000 Nil Nil 60,000 -
Mr. Kanwal Jit Singh Jolly 60,000 Nil Nil 60,000 -
Mr. V.K Mishra 20,000 Nil Nil 20,000 -
1Mr.Vilas Unavane 20,000 Nil Nil 20,000 -
*salary drawn @Rs.5 lacs per month upto 31-03-2013 and Rs.10 lacs per month wef 01-04-2013.
**salary drawn @Rs.2.5 lacs per month upto 31-03-2013 and Rs.5 lacs per month wef 01-04-2013.
***salary drawn @Rs.1.5 lacs per month upto 31-08-2013.
S. No. Director Category No. of Meetings Attended
Name of the Sitting Salaries, Commission, Total No. of sharesDirector fees Allowances & Bonus Amount(Rs.) held & %
Perquisites(Rs.) Exgratia
1. Ceased to be director w.e.f March 10, 2014.
Corporate Governance Report
Code of Conduct
The Company has laid down a Code of Conduct for all Board members and senior management of the Company. The
Code is available on the website of the Company i.e. www.lakshmigroup.in. The Code has been circulated to all the stmembers of the Board and senior management and they have affirmed compliance with the Code as on 31 March,
2014. A declaration signed by the Chairman & Managing Director (CMD) to this effect is attached to the Annual
Report.
3. Audit Committee
Composition & Terms of Reference
The Audit Committee of the company comprises of three members, two of them are non-executive independent
directors.
stAs on 31 March, 2014, the Chairman of the Committee is Mr Nirdosh Bali, a non-executive independent director.
Other members are Mr. Amarjit Singh non-executive independent director and Mr. I.S.Gumber, Executive Director.
Terms of references and powers of the Audit Committee are as per the guidelines set out in the listing agreement (Clause
49) with the stock exchanges that, inter alia, include the overview of the company’s financial reporting processes, review of
the quarterly, half yearly and annual financial statements, the adequacy of internal control systems and internal audit
function, the financial and risk management policies, discussion with Statutory and Internal Auditors etc.
Meetings held during the Period and the Attendance thereat:
During the period from 01-10-2012 to 31-03-2014, seven Audit Committee Meetings were held on: -
10th November 2012
th14 February 2013
rd3 May 2013
th17 July, 2013
th29 November 2013
th30 December 2013
th12 February 2014
The attendance of members of the Audit Committee at these Meetings is as follows:
1. Mr. Nirdosh Bali Chairman 7
2. Mr. Amarjit Singh Member 7
3. Mr. I.S.Gumber Member 1
th1. The Chairman of the Audit Committee was present at the Annual General Meeting of the company held on 28
March, 2013.
2. Finance head is the permanent invitee of the Audit Committee and the Statutory and Internal Auditors of the
company are also invited to the Audit Committee Meetings.
3. Company Secretary acts as the Secretary of the Committee.
Date of the Meetings
S. No. Director Category No. of Meetings Attended
2322 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
4. Nomination and Remuneration Committee
(formerly known as Remuneration Committee)
Composition & Terms of Reference
The Remuneration Committee was renamed as Nomination and Remuneration Committee in compliance of
Companies Act, 2013. The Nomination and Remuneration Committee of the Board of Directors of the company
comprises of three directors namely Mr. Nirdosh Bali (non-executive independent director) - as Chairman,
Mr. Amarjit Singh (non-executive independent director) and Mrs. Vijay Luxmi (non-executive director) as members.
The Committee was constituted to approve the remuneration payable to Managing Director, Whole time Director
and Executive Directors of the company. Thus, the Committee shall have the meetings as and when so required. ndDuring the year, one meeting was held on 22 February, 2013.
The attendance of members of the Nomination and Remuneration Committee at the Meeting is as follows:
1. Mr. Nirdosh Bali Chairman 1
2. Mr. Amarjit Singh Member 1
3. Mrs. Vijay Luxmi Member 1
Remuneration Policy of the Company
The company is presently paying remuneration to Mr. Balbir Singh Uppal, the Chairman & Managing Director and Mr thJanak Raj Singh, Joint Managing Director. Mr. I. S. Gumber, Executive Director was paid remuneration upto 30
September, 2013. Other than that, company is not paying remuneration to any other director. No significant material
transactions have been made with the non-executive directors vis-à-vis the company.
stDetails of the Directors’ Remuneration for the period ended 31 March 2014.
Mr. Balbir Singh Uppal Nil 1,50,00,000* Nil 1,50,00,000* 16175985(24.33%)
Mr. Janak Raj Singh Nil 75,00,000** Nil 75,00,000** 2993645(4.74%)
Mr. I. S. Gumber Nil 16,50,000*** Nil 16,50,000*** 189891(0.30%)
Mrs. Vijay Luxmi Nil Nil Nil Nil 1971100(3.12%)
Mr. Amarjit Singh Nil Nil Nil Nil -
Mr. Nirdosh Bali 60,000 Nil Nil 60,000 -
Mr. Kanwal Jit Singh Jolly 60,000 Nil Nil 60,000 -
Mr. V.K Mishra 20,000 Nil Nil 20,000 -
1Mr.Vilas Unavane 20,000 Nil Nil 20,000 -
*salary drawn @Rs.5 lacs per month upto 31-03-2013 and Rs.10 lacs per month wef 01-04-2013.
**salary drawn @Rs.2.5 lacs per month upto 31-03-2013 and Rs.5 lacs per month wef 01-04-2013.
***salary drawn @Rs.1.5 lacs per month upto 31-08-2013.
S. No. Director Category No. of Meetings Attended
Name of the Sitting Salaries, Commission, Total No. of sharesDirector fees Allowances & Bonus Amount(Rs.) held & %
Perquisites(Rs.) Exgratia
1. Ceased to be director w.e.f March 10, 2014.
Corporate Governance Report
Code of Conduct
The Company has laid down a Code of Conduct for all Board members and senior management of the Company. The
Code is available on the website of the Company i.e. www.lakshmigroup.in. The Code has been circulated to all the stmembers of the Board and senior management and they have affirmed compliance with the Code as on 31 March,
2014. A declaration signed by the Chairman & Managing Director (CMD) to this effect is attached to the Annual
Report.
3. Audit Committee
Composition & Terms of Reference
The Audit Committee of the company comprises of three members, two of them are non-executive independent
directors.
stAs on 31 March, 2014, the Chairman of the Committee is Mr Nirdosh Bali, a non-executive independent director.
Other members are Mr. Amarjit Singh non-executive independent director and Mr. I.S.Gumber, Executive Director.
Terms of references and powers of the Audit Committee are as per the guidelines set out in the listing agreement (Clause
49) with the stock exchanges that, inter alia, include the overview of the company’s financial reporting processes, review of
the quarterly, half yearly and annual financial statements, the adequacy of internal control systems and internal audit
function, the financial and risk management policies, discussion with Statutory and Internal Auditors etc.
Meetings held during the Period and the Attendance thereat:
During the period from 01-10-2012 to 31-03-2014, seven Audit Committee Meetings were held on: -
10th November 2012
th14 February 2013
rd3 May 2013
th17 July, 2013
th29 November 2013
th30 December 2013
th12 February 2014
The attendance of members of the Audit Committee at these Meetings is as follows:
1. Mr. Nirdosh Bali Chairman 7
2. Mr. Amarjit Singh Member 7
3. Mr. I.S.Gumber Member 1
th1. The Chairman of the Audit Committee was present at the Annual General Meeting of the company held on 28
March, 2013.
2. Finance head is the permanent invitee of the Audit Committee and the Statutory and Internal Auditors of the
company are also invited to the Audit Committee Meetings.
3. Company Secretary acts as the Secretary of the Committee.
Date of the Meetings
S. No. Director Category No. of Meetings Attended
2322 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Meetings held during the year and the Attendance thereat:
During the year, six stakeholders’ relationship committee meetings were held on: -
th10 November 2012
th14 February 2013
rd3 May 2013
th17 July 2013
th29 November 2013
th12 February 2014
The attendance of members of the stakeholders’ relationship committee at these Meetings is as follows:
1. Mr. Nirdosh Bali Chairman 6
2. Mr. Amarjit Singh Member 6
3. Mr. I.S.Gumber Member 1
Information regarding complaints received from the shareholders/through SEBI/Stock Exchanges during the period st1st October, 2013 to 31 March, 2014.
10 10 0
CEO/CFO certification
Mr. Balbir Singh Uppal, Chairman and Managing Director and Mr.Sukhdeep Singh, DGM (Accounts & Taxation) have
certified to the board of directors of the company that:
(a) They have reviewed financial statements and the cash flow statement for the year and that to the best of their
knowledge and belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
(ii) These statements together present a true and fair view of the company’s affairs and are in compliance with
existing accounting standards, applicable laws and regulations.
(b) There are, to the best of their knowledge and belief, no transactions entered into by the company during the
year, which are fraudulent, illegal or violative of the company’s code of conduct.
(c) They accept responsibility for establishing and maintaining internal controls and that they have evaluated the
effectiveness of the internal control systems of the company and they have disclosed to the auditors and the
Audit Committee, deficiencies in the design or operation of internal controls, if any, of which they are aware and
the steps they have taken or propose to take to rectify these deficiencies.
Date of the Meetings
S. No. Director Category No. of Meetings Attended
Received Replied satisfactorily Pending
Corporate Governance Report
1. No director is related to any other director on the board of directors of the company except for Mr. Balbir
Singh Uppal and Mr. Janak Raj Singh, who are father and son respectively.
2. The company does not have any scheme for grant of stock options to its directors or employees.
st3. The appointment of Mr. Balbir Singh Uppal, Chairman and Managing Director is for a period of 5 years w.e.f. 1 stSeptember, 2009. His re-appointment as Chairman & Managing Director will be for a period of 3 years w.e.f. 1
September, 2014.
th4. The appointment of Mr. Janak Raj Singh, Joint Managing Director is for a period of 5 years w.e.f. 27 March 2010.
st5. The appointment of Mr. I. S. Gumber, Executive Director is for a period of 5 years w.e.f. 1 March, 2010.
6. No severance fee is payable to any Managing / Executive Director of the company.
7. The remuneration paid to the Executive Directors is recommended by the Remuneration Committee and
approved by the board of directors of the company in the meeting of the board of directors of the company,
subject to the subsequent approval by the shareholders at the general meeting and such other authorities, as the
case may be.
8. Independent and Non-Executive directors are being paid sitting fees for each meeting of the Board attended by
them. Mr. Amarjit Singh and Mrs. Vijay Luxmi have opted not to receive sitting fees.
st9. During the period upto 31 March, 2013, Mr. Balbir Singh Uppal, Chairman & Managing Director and Mr. Janak Raj
Singh, Joint Managing Director had voluntarily drawn the 50% of their salary from the company. Mr. I. S. Gumber, stExecutive Director had voluntarily drawn the 50% of his salary from the company till 31 August, 2013.
5. Stakeholders’ Relationship Committee
(Formerly known as Shareholders’/Investors’ Grievance Committee
Composition & Terms of Reference
In compliance of Companies Act, 2013, the committee was renamed as stakeholders’ relationship committee which
comprises of three members; two of them are non-executive independent directors.
As on 31-03-2014, the Chairman of the Committee is Mr. Nirdosh Bali, a non-executive independent director. Other
members are Mr. Amarjit Singh non-executive independent director and Mr. I.S.Gumber, Executive Director.
The Committee is constituted and functions as per the guidelines set out in listing agreements with the Stock
Exchanges that inter alia include redressal of investors’ grievances arising out of issues regarding share transfers,
transmissions, dividends, dematerialization and related matters. The committee also overseas the working of
Registrar & Transfer Agents of the Company. Company Secretary acts as the Secretary of the Committee.
Notes:
2524 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Meetings held during the year and the Attendance thereat:
During the year, six stakeholders’ relationship committee meetings were held on: -
th10 November 2012
th14 February 2013
rd3 May 2013
th17 July 2013
th29 November 2013
th12 February 2014
The attendance of members of the stakeholders’ relationship committee at these Meetings is as follows:
1. Mr. Nirdosh Bali Chairman 6
2. Mr. Amarjit Singh Member 6
3. Mr. I.S.Gumber Member 1
Information regarding complaints received from the shareholders/through SEBI/Stock Exchanges during the period st1st October, 2013 to 31 March, 2014.
10 10 0
CEO/CFO certification
Mr. Balbir Singh Uppal, Chairman and Managing Director and Mr.Sukhdeep Singh, DGM (Accounts & Taxation) have
certified to the board of directors of the company that:
(a) They have reviewed financial statements and the cash flow statement for the year and that to the best of their
knowledge and belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
(ii) These statements together present a true and fair view of the company’s affairs and are in compliance with
existing accounting standards, applicable laws and regulations.
(b) There are, to the best of their knowledge and belief, no transactions entered into by the company during the
year, which are fraudulent, illegal or violative of the company’s code of conduct.
(c) They accept responsibility for establishing and maintaining internal controls and that they have evaluated the
effectiveness of the internal control systems of the company and they have disclosed to the auditors and the
Audit Committee, deficiencies in the design or operation of internal controls, if any, of which they are aware and
the steps they have taken or propose to take to rectify these deficiencies.
Date of the Meetings
S. No. Director Category No. of Meetings Attended
Received Replied satisfactorily Pending
Corporate Governance Report
1. No director is related to any other director on the board of directors of the company except for Mr. Balbir
Singh Uppal and Mr. Janak Raj Singh, who are father and son respectively.
2. The company does not have any scheme for grant of stock options to its directors or employees.
st3. The appointment of Mr. Balbir Singh Uppal, Chairman and Managing Director is for a period of 5 years w.e.f. 1 stSeptember, 2009. His re-appointment as Chairman & Managing Director will be for a period of 3 years w.e.f. 1
September, 2014.
th4. The appointment of Mr. Janak Raj Singh, Joint Managing Director is for a period of 5 years w.e.f. 27 March 2010.
st5. The appointment of Mr. I. S. Gumber, Executive Director is for a period of 5 years w.e.f. 1 March, 2010.
6. No severance fee is payable to any Managing / Executive Director of the company.
7. The remuneration paid to the Executive Directors is recommended by the Remuneration Committee and
approved by the board of directors of the company in the meeting of the board of directors of the company,
subject to the subsequent approval by the shareholders at the general meeting and such other authorities, as the
case may be.
8. Independent and Non-Executive directors are being paid sitting fees for each meeting of the Board attended by
them. Mr. Amarjit Singh and Mrs. Vijay Luxmi have opted not to receive sitting fees.
st9. During the period upto 31 March, 2013, Mr. Balbir Singh Uppal, Chairman & Managing Director and Mr. Janak Raj
Singh, Joint Managing Director had voluntarily drawn the 50% of their salary from the company. Mr. I. S. Gumber, stExecutive Director had voluntarily drawn the 50% of his salary from the company till 31 August, 2013.
5. Stakeholders’ Relationship Committee
(Formerly known as Shareholders’/Investors’ Grievance Committee
Composition & Terms of Reference
In compliance of Companies Act, 2013, the committee was renamed as stakeholders’ relationship committee which
comprises of three members; two of them are non-executive independent directors.
As on 31-03-2014, the Chairman of the Committee is Mr. Nirdosh Bali, a non-executive independent director. Other
members are Mr. Amarjit Singh non-executive independent director and Mr. I.S.Gumber, Executive Director.
The Committee is constituted and functions as per the guidelines set out in listing agreements with the Stock
Exchanges that inter alia include redressal of investors’ grievances arising out of issues regarding share transfers,
transmissions, dividends, dematerialization and related matters. The committee also overseas the working of
Registrar & Transfer Agents of the Company. Company Secretary acts as the Secretary of the Committee.
Notes:
2524 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
7. Disclosures
a) There was no such materially significant related party transaction(s) with its promoters, the directors or the
management, their relatives, etc. that may have the potential conflict with the interests of the company at large.
Related party transactions are given in Notes on Accounts annexed to and forming the part of Balance Sheet
and Profit and Loss Account of the company.
b) Your company has followed all relevant Accounting Standards while preparing the financial statements.
c) Your company has established a comprehensive and appropriate risk assessment and management policy and
minimization procedures and the same is periodically reviewed by the board of directors of the company.
d) During the last three years, there were no instance of imposition of penalties, strictures by Stock Exchange or
SEBI or any statutory authority on the company on any matter related to capital markets, hence no details
thereof could be provided.
e) In compliance with the SEBI regulation on prevention of insider trading, the Company has instituted a
comprehensive Code of Conduct for its management, staff and relevant business associates. This Code lays
down guidelines, which advises them on procedures to be followed and disclosures to be made, while dealing
with shares of the Company and cautioning them on consequences of non-compliances.
f) The board of directors of the company periodically reviews reports of compliance with all laws applicable to the
company, as well as steps taken by the company to rectify instances of non-compliances.
g) The company has adopted a Whistle Blower Policy and has established the necessary mechanism in line with
Clause 49 of the Listing Agreement with the Stock Exchanges, for employees to report concerns about
unethical behaviour. No personnel has been denied access to the Chairman of the Audit Committee.
h) Your company is fully compliant with the mandatory requirements of the Clause 49 of the Listing Agreement.
The company has not adopted the non-mandatory requirements as prescribed in Annexure I D to Clause 49 of
the Listing Agreement except the following:
a) The company has set up a Remuneration Committee.
b) The company has adopted a Whistle Blower Policy and has established the necessary mechanism.
i) The company has not issued any GDRs/ADRs.
8. Means of Communication
Financial Results Pursuant to Clause 41(I)(f ) of the Listing Agreement, the Company has regularly
furnished, both by way of post as well as by email/fax (within 15 minutes of
closure of the Board meeting) the quarterly un-audited as well as annual audited
results to the Stock exchanges where the shares of the company are listed.
Quarterly and Annual financial results are also published in English and regional
newspapers, i.e. Financial Express and Desh Sewak.
Website Pursuant to Clause 54 of the Listing Agreement the Company’s website
www.lakshmigroup.in contains all the information (needed by shareholders)
including Annual Reports, Shareholding Pattern, official news releases and
presentations, if any, made to Institutional Investors/analysts.
Corporate Governance Report
(d) They have indicated to the auditors and the Audit Committee-
(i) Significant changes in internal control during the year, if any;
(ii) Significant changes in accounting policies during the year, if any and that the same have been disclosed in
the notes to the financial statements; and,
(iii) Instances of significant fraud of which they have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the company’s internal control system.
The above certificate was placed before the Meeting of the board of directors of the company held on 30-05-2014.
6. General Body Meetings
a) Location, date and time of general meetings held during the last three years and the special resolutions passed
thereat are as under:
Details of Annual General Meetings held
2011-12 28.03.2013 PHD Chamber of Commerce 11.00AM 1) Issuance of Convertible warrants to
and Industry, PHD House, Mr. Balbir Singh Uppal, an entity within
Sector 31A, Chandigarh the promoters’ Group on preferential basis
2) Remuneration of Mr. Balbir Singh
Uppal, Chairman & Managing Director
of the Company
3) Remuneration of Mr. Janak Raj Singh,
Joint Managing Director of the Company
2010-11 28.03.2012 PHD Chamber of Commerce 11.00 AM No special resolution passed.
and Industry, PHD House,
Sector 31A, Chandigarh
2009-10 26.03.2011 CII, Conference Hall, 11.00 AM No special resolution passed.
Sector 31-A, Chandigarh
Details of Extraordinary General Meetings held
17.05.2014 Admin Office & Works at Khamanon, 11.00AM No special resolution passed.Dist- Fatehgarh Sahib, Punjab
01.02.2014 Admin Office & Works at Khamanon, 11.00AM No special resolution passed.Dist- Fatehgarh Sahib, Punjab
stb) Postal ballot: During the period ended 31 March, 2014, no resolution has been passed through Postal Ballot.
None of the resolutions proposed for the ensuing Annual General Meeting need to be passed by Postal Ballot.
Resolution, if any, to be passed through Postal Ballot during the current financial year will be taken up as and
when necessary.
Year Date Venue Time Resolutions passed
Date Venue Time Special Resolutions passed
Special
2726 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
7. Disclosures
a) There was no such materially significant related party transaction(s) with its promoters, the directors or the
management, their relatives, etc. that may have the potential conflict with the interests of the company at large.
Related party transactions are given in Notes on Accounts annexed to and forming the part of Balance Sheet
and Profit and Loss Account of the company.
b) Your company has followed all relevant Accounting Standards while preparing the financial statements.
c) Your company has established a comprehensive and appropriate risk assessment and management policy and
minimization procedures and the same is periodically reviewed by the board of directors of the company.
d) During the last three years, there were no instance of imposition of penalties, strictures by Stock Exchange or
SEBI or any statutory authority on the company on any matter related to capital markets, hence no details
thereof could be provided.
e) In compliance with the SEBI regulation on prevention of insider trading, the Company has instituted a
comprehensive Code of Conduct for its management, staff and relevant business associates. This Code lays
down guidelines, which advises them on procedures to be followed and disclosures to be made, while dealing
with shares of the Company and cautioning them on consequences of non-compliances.
f) The board of directors of the company periodically reviews reports of compliance with all laws applicable to the
company, as well as steps taken by the company to rectify instances of non-compliances.
g) The company has adopted a Whistle Blower Policy and has established the necessary mechanism in line with
Clause 49 of the Listing Agreement with the Stock Exchanges, for employees to report concerns about
unethical behaviour. No personnel has been denied access to the Chairman of the Audit Committee.
h) Your company is fully compliant with the mandatory requirements of the Clause 49 of the Listing Agreement.
The company has not adopted the non-mandatory requirements as prescribed in Annexure I D to Clause 49 of
the Listing Agreement except the following:
a) The company has set up a Remuneration Committee.
b) The company has adopted a Whistle Blower Policy and has established the necessary mechanism.
i) The company has not issued any GDRs/ADRs.
8. Means of Communication
Financial Results Pursuant to Clause 41(I)(f ) of the Listing Agreement, the Company has regularly
furnished, both by way of post as well as by email/fax (within 15 minutes of
closure of the Board meeting) the quarterly un-audited as well as annual audited
results to the Stock exchanges where the shares of the company are listed.
Quarterly and Annual financial results are also published in English and regional
newspapers, i.e. Financial Express and Desh Sewak.
Website Pursuant to Clause 54 of the Listing Agreement the Company’s website
www.lakshmigroup.in contains all the information (needed by shareholders)
including Annual Reports, Shareholding Pattern, official news releases and
presentations, if any, made to Institutional Investors/analysts.
Corporate Governance Report
(d) They have indicated to the auditors and the Audit Committee-
(i) Significant changes in internal control during the year, if any;
(ii) Significant changes in accounting policies during the year, if any and that the same have been disclosed in
the notes to the financial statements; and,
(iii) Instances of significant fraud of which they have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the company’s internal control system.
The above certificate was placed before the Meeting of the board of directors of the company held on 30-05-2014.
6. General Body Meetings
a) Location, date and time of general meetings held during the last three years and the special resolutions passed
thereat are as under:
Details of Annual General Meetings held
2011-12 28.03.2013 PHD Chamber of Commerce 11.00AM 1) Issuance of Convertible warrants to
and Industry, PHD House, Mr. Balbir Singh Uppal, an entity within
Sector 31A, Chandigarh the promoters’ Group on preferential basis
2) Remuneration of Mr. Balbir Singh
Uppal, Chairman & Managing Director
of the Company
3) Remuneration of Mr. Janak Raj Singh,
Joint Managing Director of the Company
2010-11 28.03.2012 PHD Chamber of Commerce 11.00 AM No special resolution passed.
and Industry, PHD House,
Sector 31A, Chandigarh
2009-10 26.03.2011 CII, Conference Hall, 11.00 AM No special resolution passed.
Sector 31-A, Chandigarh
Details of Extraordinary General Meetings held
17.05.2014 Admin Office & Works at Khamanon, 11.00AM No special resolution passed.Dist- Fatehgarh Sahib, Punjab
01.02.2014 Admin Office & Works at Khamanon, 11.00AM No special resolution passed.Dist- Fatehgarh Sahib, Punjab
stb) Postal ballot: During the period ended 31 March, 2014, no resolution has been passed through Postal Ballot.
None of the resolutions proposed for the ensuing Annual General Meeting need to be passed by Postal Ballot.
Resolution, if any, to be passed through Postal Ballot during the current financial year will be taken up as and
when necessary.
Year Date Venue Time Resolutions passed
Date Venue Time Special Resolutions passed
Special
2726 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Financial Calendar (tentative)
June 30, 2014 12th August, 2014 (Actual).
September 30, 2014 Second Week of November, 2014.
December 31, 2014 Second Week of February, 2015.
March 31, 2015 Second Week of May, 2015.
Annual General Meeting September, 2015.
Book Closure
th thThe dates of book closure shall be from Saturday, 20 September, 2014 to Wednesday, 24 September, 2014 (both days
inclusive).
Dividend Payment
During the period under review, Interim dividend of Re.0.30 per share was paid in May, 2013. Taking into account
profitability and interim dividend already paid, Board of directors of the company did not recommend final dividend stfor the period ended 31 March, 2014.
Listing on Stock Exchanges
The equity shares of the company are presently listed on the following Stock Exchanges:
1. National Stock Exchange of India Limited;
2. Bombay Stock Exchange Limited;
3. Ludhiana Stock Exchange Limited;
4. Delhi Stock Exchange Limited.
Listing Fees
The company has paid the annual listing fees to all the Stock Exchanges wherein the equity shares of the company are
listed.
Depository Fees
The company has also paid the Annuals Custody/Issuer fee for the year 2013-14 and 2014-15 to both the depositories
namely, National Securities Depository Limited (‘NSDL’) and Central Depository Service (India) Limited (‘CDSL’).
Stock Codes
ISIN (for equity shares) INE 992B01026
NSE SYMBOL LAKSHMIEFL
BSE Stock Code 519570
Results for the quarter ending
Corporate Governance Report
Annual Report The Annual Report containing, inter alia, Audited Annual Accounts, Consolidated
Financial Statements, Directors’ Report, Auditors’ Report and other important
information is circulated to members and others entitled thereto. The
Management’s Discussion and Analysis Report forms part of the Annual Report
and is displayed on the Company’s website (www.lakshmigroup.in).
NSE Electronic Apllication All periodical compliance filings like shareholding pattern, corporate governance
processing System (NEAPS) report, media releases, among others are filed electronically on the websites
and BSE listing centre. developed and as per the advice of National Stock Exchange and Bombay Stock
Exchange on the link https://www.connect2nse.com/LISTING and
http://listing.bseindia.com.
Green Initiatives As per the MCA Circular nos. 17/2011 dated April 21, 2011 & 18/2011 dated April
29, 2011, Company has issued letters to its shareholders and uploaded the
information on its website for registering email IDs of Investors so that Annual
Reports and other information may be sent to them in electronic forms to save
papers.
E-mail IDs for Investors The Company has designated the following email-ids exclusively for investor
servicing:
Email ID of Company Secretary & Compliance Officer:
Email ID of Registrar & Transfer Agent (Beetal Financial & Computer Services Pvt.
Ltd):
Company’s snapshot
Incorporation 20.07.1990
CIN LOOOOOCH1990PLC010573
Equity Structure 6,64,90,000 equity shares of Rs. 2/- each.
9. GENERAL SHAREHOLDER INFORMATION
thDate 24 September, 2014
Time 11.00 AM
Venue PHD Chamber of Commerce and Industry, PHD House, Sector 31A, Chandigarh
FinancialY ear
The Company has changed financial year of the Company from October- September to April – March effective April 1, st st2014. In view of this, the current financial year is for a period of 18 months i.e. 1 October, 2012 to 31 March, 2014.
st stThereafter, it shall be from 1 April - 31 March.
Heading Particulars
Annual General Meeting Details
2928 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Financial Calendar (tentative)
June 30, 2014 12th August, 2014 (Actual).
September 30, 2014 Second Week of November, 2014.
December 31, 2014 Second Week of February, 2015.
March 31, 2015 Second Week of May, 2015.
Annual General Meeting September, 2015.
Book Closure
th thThe dates of book closure shall be from Saturday, 20 September, 2014 to Wednesday, 24 September, 2014 (both days
inclusive).
Dividend Payment
During the period under review, Interim dividend of Re.0.30 per share was paid in May, 2013. Taking into account
profitability and interim dividend already paid, Board of directors of the company did not recommend final dividend stfor the period ended 31 March, 2014.
Listing on Stock Exchanges
The equity shares of the company are presently listed on the following Stock Exchanges:
1. National Stock Exchange of India Limited;
2. Bombay Stock Exchange Limited;
3. Ludhiana Stock Exchange Limited;
4. Delhi Stock Exchange Limited.
Listing Fees
The company has paid the annual listing fees to all the Stock Exchanges wherein the equity shares of the company are
listed.
Depository Fees
The company has also paid the Annuals Custody/Issuer fee for the year 2013-14 and 2014-15 to both the depositories
namely, National Securities Depository Limited (‘NSDL’) and Central Depository Service (India) Limited (‘CDSL’).
Stock Codes
ISIN (for equity shares) INE 992B01026
NSE SYMBOL LAKSHMIEFL
BSE Stock Code 519570
Results for the quarter ending
Corporate Governance Report
Annual Report The Annual Report containing, inter alia, Audited Annual Accounts, Consolidated
Financial Statements, Directors’ Report, Auditors’ Report and other important
information is circulated to members and others entitled thereto. The
Management’s Discussion and Analysis Report forms part of the Annual Report
and is displayed on the Company’s website (www.lakshmigroup.in).
NSE Electronic Apllication All periodical compliance filings like shareholding pattern, corporate governance
processing System (NEAPS) report, media releases, among others are filed electronically on the websites
and BSE listing centre. developed and as per the advice of National Stock Exchange and Bombay Stock
Exchange on the link https://www.connect2nse.com/LISTING and
http://listing.bseindia.com.
Green Initiatives As per the MCA Circular nos. 17/2011 dated April 21, 2011 & 18/2011 dated April
29, 2011, Company has issued letters to its shareholders and uploaded the
information on its website for registering email IDs of Investors so that Annual
Reports and other information may be sent to them in electronic forms to save
papers.
E-mail IDs for Investors The Company has designated the following email-ids exclusively for investor
servicing:
Email ID of Company Secretary & Compliance Officer:
Email ID of Registrar & Transfer Agent (Beetal Financial & Computer Services Pvt.
Ltd):
Company’s snapshot
Incorporation 20.07.1990
CIN LOOOOOCH1990PLC010573
Equity Structure 6,64,90,000 equity shares of Rs. 2/- each.
9. GENERAL SHAREHOLDER INFORMATION
thDate 24 September, 2014
Time 11.00 AM
Venue PHD Chamber of Commerce and Industry, PHD House, Sector 31A, Chandigarh
FinancialY ear
The Company has changed financial year of the Company from October- September to April – March effective April 1, st st2014. In view of this, the current financial year is for a period of 18 months i.e. 1 October, 2012 to 31 March, 2014.
st stThereafter, it shall be from 1 April - 31 March.
Heading Particulars
Annual General Meeting Details
2928 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
Nov-12 25.85 17.00 34,35,294 7,556.73 7,160.33
Dec-12 27.25 22.05 34,28,965 7,622.38 7,515.43
Jan-13 26.00 19.80 8,19,865 7,820.19 7,650.82
Feb-13 25.65 18.10 44,88,198 7,713.77 7,322.68
Mar-13 26.15 21.00 9,62,232 7,649.23 7,252.66
Apr-13 32.53 21.00 6,70,424 7,634.29 7,073.99
May-13 35.40 28.35 17,06,605 7,969.96 7,652.03
Jun-13 48.50 28.65 34,09,740 7,673.77 7,229.08
Jul-13 42.15 29.90 18,66,470 7,881.06 7,449.52
Aug-13 32.75 22.85 11,09,724 7,454.14 6,860.50
Sep-13 27.20 22.20 16,84,400 7,949.11 6,936.67
Oct-13 25.00 21.40 5,41,329 8194.06 7512.98
Nov-13 24.80 17.70 12,67,883 8217.74 7792.65
Dec-13 23.15 18.55 11,52,339 8279.62 7989.69
Jan-14 22.45 18.85 13,56,582 8260.68 7907.25
Feb-14 27.40 19.25 23,82,670 8178.01 7814.96
Mar-14 27.40 21.00 16,84,400 8739.91 8105.73
Market Price Data and performance in comparison to NIFTY of NSE
Oct-12 20.70 17.00 22,02,464 7,429.84 7,189.16
Month Share Price at NSE NSE NIFTY
High (Rs) Low (Rs) Volume (Nos.) High Low
Oct
/12
Nov/
12
Dec/
12
Jan/1
3
Feb/1
3
Mar
/13
Apr/
13
May
/13
Jun/1
3
Jul/13
Aug/
13
Sep/1
3
Oct
/13
Nov/
13
Dec/
13
Jan/1
4
Feb/1
4
Mar
/14
Oct
/12
Nov/
12
Dec
/12
Jan/
13
Feb/
13
Mar
/13
Apr
/13
May
/13
Jun/
13
Jul/1
3
Aug
/13
Sep/
13
Oct
/13
Nov/
13
Dec
/13
Jan/
14
Feb/
14
Mar
/14
17,000.00
18,000.00
19,000.00
20,000.00
21,000.00
22,000.00
23,000.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Share Price vs. Sensex (monthly high)
Share Price BSE Sensex
Sh
are
Pri
ce
BS
E S
en
sex
Corporate Governance Report
Market Price Data and performance in comparison to BSE Sensex
Nov-12 25.75 17.15 6,80,937 19,372.70 18,255.69
Dec-12 27.25 22.00 7,01,298 19,612.18 19,149.03
Jan-13 25.70 19.85 2,89,285 20,203.66 19,508.93
Feb-13 26.90 18.10 10,70,514 19,966.69 18,793.97
Mar-13 26.15 21.00 7,21,680 19,754.66 18,568.43
Apr-13 32.15 20.85 4,49,647 19,622.68 18,144.22
May-13 35.25 28.65 6,02,657 20,443.62 19,451.26
Jun-13 47.85 28.40 14,60,618 19,860.19 18,467.16
Jul-13 42.90 29.80 9,94,410 20,351.06 19,126.82
Aug-13 32.45 22.85 6,40,587 19,569.20 17,448.71
Sep-13 27.10 21.75 5,03,965 20,739.69 18,166.17
Oct-13 24.85 21.70 2,75,790 21,205.44 19,264.72
Nov-13 24.90 17.60 6,27,666 21,321.53 20,137.67
Dec-13 23.45 18.80 4,11,888 21,483.74 20,568.70
Jan-14 22.45 19.00 5,69,480 21,409.66 20,343.78
Feb-14 27.40 19.05 8,91,332 21,140.51 19,963.12
Mar-14 27.45 21.05 6,09,412 22,467.21 20,920.98
Company’s Share Price Movement vis a vis BSE Sensex
Month Share Price at BSE BSE SENSEX
High (Rs) Low (Rs) Volume (Nos.) High Low
Oct-12 19.90 16.90 3,67,407 19,137.29 18,393.42
3130 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Share Price vs. NSE Nifty (monthly high)
NS
E P
rice
Nif
ty
6,500.00
7,000.00
7,500.00
8,000.00
8,500.00
9,000.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
High Share Price High NSE NIFTY
Corporate Governance Report
Nov-12 25.85 17.00 34,35,294 7,556.73 7,160.33
Dec-12 27.25 22.05 34,28,965 7,622.38 7,515.43
Jan-13 26.00 19.80 8,19,865 7,820.19 7,650.82
Feb-13 25.65 18.10 44,88,198 7,713.77 7,322.68
Mar-13 26.15 21.00 9,62,232 7,649.23 7,252.66
Apr-13 32.53 21.00 6,70,424 7,634.29 7,073.99
May-13 35.40 28.35 17,06,605 7,969.96 7,652.03
Jun-13 48.50 28.65 34,09,740 7,673.77 7,229.08
Jul-13 42.15 29.90 18,66,470 7,881.06 7,449.52
Aug-13 32.75 22.85 11,09,724 7,454.14 6,860.50
Sep-13 27.20 22.20 16,84,400 7,949.11 6,936.67
Oct-13 25.00 21.40 5,41,329 8194.06 7512.98
Nov-13 24.80 17.70 12,67,883 8217.74 7792.65
Dec-13 23.15 18.55 11,52,339 8279.62 7989.69
Jan-14 22.45 18.85 13,56,582 8260.68 7907.25
Feb-14 27.40 19.25 23,82,670 8178.01 7814.96
Mar-14 27.40 21.00 16,84,400 8739.91 8105.73
Market Price Data and performance in comparison to NIFTY of NSE
Oct-12 20.70 17.00 22,02,464 7,429.84 7,189.16
Month Share Price at NSE NSE NIFTY
High (Rs) Low (Rs) Volume (Nos.) High Low
Oct
/12
Nov/
12
Dec/
12
Jan/1
3
Feb/1
3
Mar
/13
Apr/
13
May
/13
Jun/1
3
Jul/13
Aug/
13
Sep/1
3
Oct
/13
Nov/
13
Dec/
13
Jan/1
4
Feb/1
4
Mar
/14
Oct
/12
Nov/
12
Dec
/12
Jan/
13
Feb/
13
Mar
/13
Apr
/13
May
/13
Jun/
13
Jul/1
3
Aug
/13
Sep/
13
Oct
/13
Nov/
13
Dec
/13
Jan/
14
Feb/
14
Mar
/14
17,000.00
18,000.00
19,000.00
20,000.00
21,000.00
22,000.00
23,000.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Share Price vs. Sensex (monthly high)
Share Price BSE Sensex
Sh
are
Pri
ce
BS
E S
en
sex
Corporate Governance Report
Market Price Data and performance in comparison to BSE Sensex
Nov-12 25.75 17.15 6,80,937 19,372.70 18,255.69
Dec-12 27.25 22.00 7,01,298 19,612.18 19,149.03
Jan-13 25.70 19.85 2,89,285 20,203.66 19,508.93
Feb-13 26.90 18.10 10,70,514 19,966.69 18,793.97
Mar-13 26.15 21.00 7,21,680 19,754.66 18,568.43
Apr-13 32.15 20.85 4,49,647 19,622.68 18,144.22
May-13 35.25 28.65 6,02,657 20,443.62 19,451.26
Jun-13 47.85 28.40 14,60,618 19,860.19 18,467.16
Jul-13 42.90 29.80 9,94,410 20,351.06 19,126.82
Aug-13 32.45 22.85 6,40,587 19,569.20 17,448.71
Sep-13 27.10 21.75 5,03,965 20,739.69 18,166.17
Oct-13 24.85 21.70 2,75,790 21,205.44 19,264.72
Nov-13 24.90 17.60 6,27,666 21,321.53 20,137.67
Dec-13 23.45 18.80 4,11,888 21,483.74 20,568.70
Jan-14 22.45 19.00 5,69,480 21,409.66 20,343.78
Feb-14 27.40 19.05 8,91,332 21,140.51 19,963.12
Mar-14 27.45 21.05 6,09,412 22,467.21 20,920.98
Company’s Share Price Movement vis a vis BSE Sensex
Month Share Price at BSE BSE SENSEX
High (Rs) Low (Rs) Volume (Nos.) High Low
Oct-12 19.90 16.90 3,67,407 19,137.29 18,393.42
3130 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Share Price vs. NSE Nifty (monthly high)
NS
E P
rice
Nif
ty
6,500.00
7,000.00
7,500.00
8,000.00
8,500.00
9,000.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
High Share Price High NSE NIFTY
Corporate Governance Report
A Promoters
1 Indian 9 34865730 34865730 52.438
2 Foreign - - - -
B Public Shareholding
1 Mutual Funds/UTI 1 76340 76340 0.115
2 Financial Institutions/Banks 1 270983 270983 0.408
3 Foreign Institutional Investors 6 6974732 6974732 10.490
4 Bodies Corporate 420 6610581 6577081 9.942
5 Resident Individuals 18001 15521746 13739250 23.344
6 Clearing Members 74 392416 392416 0.590
7 Non Resident Indians 366 1224026 1224026 1.841
8 HUF 468 553446 552446 0.832
Total 19346 66490000 64673004 100.00
Dematerialization of Shares and liquidity
The company’s shares are required to be compulsorily traded in dematerialized form and these shares are available
for dematerialization on both the depositories i.e. National Securities Depository Limited (‘NSDL’) and Central
Depository Service (India) Limited (‘CDSL’).
stDetails of Demat Shares as on 31 March, 2014
NSDL 5,85,90,617 88.12%
CDSL 60,82,387 9.15%
Total Shares held in DEMAT form 6,46,73,004 97.27%
Shares held in Physical form 18,16,996 2.73%
TOTAL (Demat + Physical) 6,64,90,000 100.00%
There are no outstanding GDRs/ADRs as on date.
Convertible warrants
Board of Directors of the company in its meeting held on April 22, 2013, had allotted 67,80,000 warrants convertible
into equal number of equity shares of Rs.2/- each at an issue price of Rs.22/- each (including premium of Rs.20/- per
share) to Mr. Balbir Singh Uppal, Promoter, on preferential basis as per details given below, in accordance with the
Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and in terms of In-Principle
approvals received from NSE and BSE.
stShareholding Pattern as on 31 March, 2014
Sr. No. Category No. of shareholders/ shares held dematerialised (no. of shares
Folios held to total shares)
Particulars Number of Shares % of shares
No. of No. of shares Percentage
Corporate Governance Report
Registrar & Share Transfer Agents
The company had appointed M/s. Beetal Financial & Computer Services (P) Ltd. as its Common Registrar and Transfer
Agent.
Address Beetal House, 3 Floor, 99, Madangir, Behind Local Shopping Centre, Near Dada HarsukhdasMandir, New Delhi 110 062
Telephone No. 011-2996 1281
Fax No. 011-2996 1284
E mail [email protected]
Share Transfer System
M/s Beetal Financial & Computer Services Private Limited is Registrar & Transfer Agent for processing, transfers, sub-
division, consolidation, splitting of shares and for rendering depository services such as dematerialization and
rematerialisation of the company’s Shares.
The share transfers, which are received in physical form, are approved (subject to the documents being valid and
complete in all respects) by the committee which meets regularly on a fortnightly basis. Shares under objection are
returned within two weeks time.
Confirmation in respect of the requests for dematerialization of shares is sent to the respective depositories i.e.
NSDL and CDSL expeditiously.
The Company obtains from a Company Secretary in Practice half-yearly certificate of compliance with the share
transfer formalities as required under Clause 47(c) of the Listing Agreement and files a copy of the said certificate with
Stock Exchanges.
stDistribution of Shareholding as on 31 March, 2014
UP TO 5000 18,335 94.77 74,94,316 1,49,88,632.00 11.2713
5001 TO 10000 482 2.49 17,98,474 35,96,948.00 2.7049
10001 TO 20000 283 1.46 21,17,183 42,34,366.00 3.1842
20001 TO 30000 78 0.40 9,73,186 19,46,372.00 1.4637
30001 TO 40000 46 0.24 8,15,456 16,30,912.00 1.2264
40001 TO 50000 22 0.11 5,12,918 10,25,836.00 0.7714
50001 TO 100000 47 0.24 17,07,338 34,14,676.00 2.5678
100001 AND ABOVE 53 0.27 5,10,71,129 10,21,42,258.00 76.8102
TOTAL 19,346 100.00 6,64,90,000 13,29,80,000.00 100.0000
Beetal Financial & Computer Services (P) Ltd
Share Holding of Number of % To Total No of Amount in Rs % To TotalNominal Value of Rs Shareholders Shares
rd
3332 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report
A Promoters
1 Indian 9 34865730 34865730 52.438
2 Foreign - - - -
B Public Shareholding
1 Mutual Funds/UTI 1 76340 76340 0.115
2 Financial Institutions/Banks 1 270983 270983 0.408
3 Foreign Institutional Investors 6 6974732 6974732 10.490
4 Bodies Corporate 420 6610581 6577081 9.942
5 Resident Individuals 18001 15521746 13739250 23.344
6 Clearing Members 74 392416 392416 0.590
7 Non Resident Indians 366 1224026 1224026 1.841
8 HUF 468 553446 552446 0.832
Total 19346 66490000 64673004 100.00
Dematerialization of Shares and liquidity
The company’s shares are required to be compulsorily traded in dematerialized form and these shares are available
for dematerialization on both the depositories i.e. National Securities Depository Limited (‘NSDL’) and Central
Depository Service (India) Limited (‘CDSL’).
stDetails of Demat Shares as on 31 March, 2014
NSDL 5,85,90,617 88.12%
CDSL 60,82,387 9.15%
Total Shares held in DEMAT form 6,46,73,004 97.27%
Shares held in Physical form 18,16,996 2.73%
TOTAL (Demat + Physical) 6,64,90,000 100.00%
There are no outstanding GDRs/ADRs as on date.
Convertible warrants
Board of Directors of the company in its meeting held on April 22, 2013, had allotted 67,80,000 warrants convertible
into equal number of equity shares of Rs.2/- each at an issue price of Rs.22/- each (including premium of Rs.20/- per
share) to Mr. Balbir Singh Uppal, Promoter, on preferential basis as per details given below, in accordance with the
Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and in terms of In-Principle
approvals received from NSE and BSE.
stShareholding Pattern as on 31 March, 2014
Sr. No. Category No. of shareholders/ shares held dematerialised (no. of shares
Folios held to total shares)
Particulars Number of Shares % of shares
No. of No. of shares Percentage
Corporate Governance Report
Registrar & Share Transfer Agents
The company had appointed M/s. Beetal Financial & Computer Services (P) Ltd. as its Common Registrar and Transfer
Agent.
Address Beetal House, 3 Floor, 99, Madangir, Behind Local Shopping Centre, Near Dada HarsukhdasMandir, New Delhi 110 062
Telephone No. 011-2996 1281
Fax No. 011-2996 1284
E mail [email protected]
Share Transfer System
M/s Beetal Financial & Computer Services Private Limited is Registrar & Transfer Agent for processing, transfers, sub-
division, consolidation, splitting of shares and for rendering depository services such as dematerialization and
rematerialisation of the company’s Shares.
The share transfers, which are received in physical form, are approved (subject to the documents being valid and
complete in all respects) by the committee which meets regularly on a fortnightly basis. Shares under objection are
returned within two weeks time.
Confirmation in respect of the requests for dematerialization of shares is sent to the respective depositories i.e.
NSDL and CDSL expeditiously.
The Company obtains from a Company Secretary in Practice half-yearly certificate of compliance with the share
transfer formalities as required under Clause 47(c) of the Listing Agreement and files a copy of the said certificate with
Stock Exchanges.
stDistribution of Shareholding as on 31 March, 2014
UP TO 5000 18,335 94.77 74,94,316 1,49,88,632.00 11.2713
5001 TO 10000 482 2.49 17,98,474 35,96,948.00 2.7049
10001 TO 20000 283 1.46 21,17,183 42,34,366.00 3.1842
20001 TO 30000 78 0.40 9,73,186 19,46,372.00 1.4637
30001 TO 40000 46 0.24 8,15,456 16,30,912.00 1.2264
40001 TO 50000 22 0.11 5,12,918 10,25,836.00 0.7714
50001 TO 100000 47 0.24 17,07,338 34,14,676.00 2.5678
100001 AND ABOVE 53 0.27 5,10,71,129 10,21,42,258.00 76.8102
TOTAL 19,346 100.00 6,64,90,000 13,29,80,000.00 100.0000
Beetal Financial & Computer Services (P) Ltd
Share Holding of Number of % To Total No of Amount in Rs % To TotalNominal Value of Rs Shareholders Shares
rd
3332 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report Corporate Governance Report
Series-1 Series-2 Total
Convertible Warrants allotted 33,00,000 34,80,000 67,80,000
Issue Price (Rs./share) 22 22 22
On 5th July, 2013, the company allotted 33,00,000 equity shares of Rs.2/- each at a premium of Rs.20/- per share to
Mr.Balbir Singh Uppal on conversion of 33,00,000 Convertible Warrants of Series-1.
34,80,000 convertible warrants (Series-2) are outstanding in respect of which option to convert into equity shares is
yet to be exercised by the allottee. This option can be exercised within18 months from the date of issuance/allotment
of convertible warrants.
Authorised Capital of the company is Rs.20,00,00,000/- and paid up capital is Rs.13,29,80,000/- as on date. After the
proposed conversion of 34,80,000 convertible warrants (Series-2) into equity shares, the paid up capital would be
Rs.13,99,40,000/- divided into 6,99,70,000 equity shares of Rs.2/- each.
Company’s Registered OfficestS.C.O. 18-19, 1 Floor, Sector 9-D,
Madhya Marg, Chandigarh-160017, India
Tel : 0172-2740352 Fax : 0172-2743057
Email: [email protected]
Website: www.lakshmigroup.in
Plant Location
Paddy/food grains processing plant and husk based Power plant located at
VPO Khamanon, Ludhiana-Chandigarh Highway,
Khamanon, District Fatehgarh Sahib,
Punjab- 141801, India.
Tel : 01628-661800 Fax : 01628-661805
Investors’ Correspondence may be addressed to
Company Secretary and Compliance Officer
Lakshmi Energy and Foods LimitedstS.C.O. 18-19, 1 Floor, Sector 9-D,
Madhya Marg, Chandigarh-160017, India
Tel : 0172-2740352 Fax : 0172-2743057
Email: [email protected]
or
M/s. Beetal Financial & Computer Services (P) Ltd.( Registrar and Transfer Agent)
Beetal House, 3rd Floor,
99, Madangir, Behind Local Shopping Centre,
Near Dada Harsukhdas Mandir,
New Delhi 110 062
Tel: 011-29961281
Fax: 011-29961284
Email: [email protected]
Queries relating to the Financial Statements may be addressed to
Finance Head
Lakshmi Energy and Foods LimitedstS.C.O. 18-19, 1 Floor, Sector 9-D,
Madhya Marg, Chandigarh-160017, India
Email: [email protected]
Queries/complaints/suggestions relating to products/services/dealers etc. only be addressed to:
Customer Care Cell
Lakshmi Energy and Foods Limited
Chandigarh-Ludhiana National Highway,
Khamanon-141801, Punjab, India
Tel: 01628-661800
Email: [email protected]
For and on Behalf of the Board
For Lakshmi Energy and Foods Limited
Sd/-
Place : Chandigarh (Balbir Singh Uppal)
Date : 30.05.2014 Chairman and Managing Director
DECLARATIONS
Compliance with Code of Business conduct and ethics
As provided under Clause 49 of the Listing Agreement with the stock exchanges, the members of the board of directors of
the company and the Senior Management personnel have confirmed compliance with the Code of Conduct and Ethics for stthe year ended 31 March, 2014.
Sd/-
Place : Chandigarh (Balbir Singh Uppal)
Date : 30.05.2014 Chairman and Managing Director
3534 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Corporate Governance Report Corporate Governance Report
Series-1 Series-2 Total
Convertible Warrants allotted 33,00,000 34,80,000 67,80,000
Issue Price (Rs./share) 22 22 22
On 5th July, 2013, the company allotted 33,00,000 equity shares of Rs.2/- each at a premium of Rs.20/- per share to
Mr.Balbir Singh Uppal on conversion of 33,00,000 Convertible Warrants of Series-1.
34,80,000 convertible warrants (Series-2) are outstanding in respect of which option to convert into equity shares is
yet to be exercised by the allottee. This option can be exercised within18 months from the date of issuance/allotment
of convertible warrants.
Authorised Capital of the company is Rs.20,00,00,000/- and paid up capital is Rs.13,29,80,000/- as on date. After the
proposed conversion of 34,80,000 convertible warrants (Series-2) into equity shares, the paid up capital would be
Rs.13,99,40,000/- divided into 6,99,70,000 equity shares of Rs.2/- each.
Company’s Registered OfficestS.C.O. 18-19, 1 Floor, Sector 9-D,
Madhya Marg, Chandigarh-160017, India
Tel : 0172-2740352 Fax : 0172-2743057
Email: [email protected]
Website: www.lakshmigroup.in
Plant Location
Paddy/food grains processing plant and husk based Power plant located at
VPO Khamanon, Ludhiana-Chandigarh Highway,
Khamanon, District Fatehgarh Sahib,
Punjab- 141801, India.
Tel : 01628-661800 Fax : 01628-661805
Investors’ Correspondence may be addressed to
Company Secretary and Compliance Officer
Lakshmi Energy and Foods LimitedstS.C.O. 18-19, 1 Floor, Sector 9-D,
Madhya Marg, Chandigarh-160017, India
Tel : 0172-2740352 Fax : 0172-2743057
Email: [email protected]
or
M/s. Beetal Financial & Computer Services (P) Ltd.( Registrar and Transfer Agent)
Beetal House, 3rd Floor,
99, Madangir, Behind Local Shopping Centre,
Near Dada Harsukhdas Mandir,
New Delhi 110 062
Tel: 011-29961281
Fax: 011-29961284
Email: [email protected]
Queries relating to the Financial Statements may be addressed to
Finance Head
Lakshmi Energy and Foods LimitedstS.C.O. 18-19, 1 Floor, Sector 9-D,
Madhya Marg, Chandigarh-160017, India
Email: [email protected]
Queries/complaints/suggestions relating to products/services/dealers etc. only be addressed to:
Customer Care Cell
Lakshmi Energy and Foods Limited
Chandigarh-Ludhiana National Highway,
Khamanon-141801, Punjab, India
Tel: 01628-661800
Email: [email protected]
For and on Behalf of the Board
For Lakshmi Energy and Foods Limited
Sd/-
Place : Chandigarh (Balbir Singh Uppal)
Date : 30.05.2014 Chairman and Managing Director
DECLARATIONS
Compliance with Code of Business conduct and ethics
As provided under Clause 49 of the Listing Agreement with the stock exchanges, the members of the board of directors of
the company and the Senior Management personnel have confirmed compliance with the Code of Conduct and Ethics for stthe year ended 31 March, 2014.
Sd/-
Place : Chandigarh (Balbir Singh Uppal)
Date : 30.05.2014 Chairman and Managing Director
3534 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
To the Members of
M/s LAKSHMI ENERGY AND FOODS LIMITED
We have examined the compliance of conditions of Corporate Governance by Lakshmi Energy and Foods Limited for steighteen months ended on 31 March, 2014, as stipulated in the clause 49(revised) of the Listing Agreement of the said
company with Stock Exchange(s).
The Compliance of the conditions of Corporate Governance is the responsibility of company’s management. Our
examination was limited to procedures and implementations thereof adopted by the company for ensuring the compliance
of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements
of the company.
In our opinion and to the best of our information and according to explanations given to us and the representations made
by the directors and management, we certify that the company has, in all material respect, complied with the conditions of
Corporate Governance, as stipulated in the above mentioned Listing Agreement(s) and that there were no investor
grievances remaining unattended/pending for a period exceeding one month.
We further state that such compliance is neither an assurance as to future viability of the company nor the efficiency or
effectiveness with which the management has conducted the affairs of the company.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN No. 021622N
3736 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
To the Members of M/S LAKSHMI ENERGY AND FOODS LIMITED
1. Report on Financial Statements:
We have audited the accompanying financial statements of Lakshmi Energy and Foods Limited (“the Company”) stwhich comprise the Balance Sheet as at 31 March, 2014, the statement of Profit and Loss and Cash flow statement
stfor the Eighteen months ended 31 March,2014 (“current period”), and a summary of significant accounting policies
and other explanatory information.
2. Management’s Responsibility for the Financial Statements
The Company’s Management is responsible for the preparation of these 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
Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”) read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control
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.
3. Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 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 and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the eighteen months ended on that date; and
INDEPENDENT AUDITORS’ REPORT
AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
To the Members of
M/s LAKSHMI ENERGY AND FOODS LIMITED
We have examined the compliance of conditions of Corporate Governance by Lakshmi Energy and Foods Limited for steighteen months ended on 31 March, 2014, as stipulated in the clause 49(revised) of the Listing Agreement of the said
company with Stock Exchange(s).
The Compliance of the conditions of Corporate Governance is the responsibility of company’s management. Our
examination was limited to procedures and implementations thereof adopted by the company for ensuring the compliance
of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements
of the company.
In our opinion and to the best of our information and according to explanations given to us and the representations made
by the directors and management, we certify that the company has, in all material respect, complied with the conditions of
Corporate Governance, as stipulated in the above mentioned Listing Agreement(s) and that there were no investor
grievances remaining unattended/pending for a period exceeding one month.
We further state that such compliance is neither an assurance as to future viability of the company nor the efficiency or
effectiveness with which the management has conducted the affairs of the company.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN No. 021622N
3736 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
To the Members of M/S LAKSHMI ENERGY AND FOODS LIMITED
1. Report on Financial Statements:
We have audited the accompanying financial statements of Lakshmi Energy and Foods Limited (“the Company”) stwhich comprise the Balance Sheet as at 31 March, 2014, the statement of Profit and Loss and Cash flow statement
stfor the Eighteen months ended 31 March,2014 (“current period”), and a summary of significant accounting policies
and other explanatory information.
2. Management’s Responsibility for the Financial Statements
The Company’s Management is responsible for the preparation of these 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
Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”) read with the
General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control
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.
3. Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 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 and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the eighteen months ended on that date; and
INDEPENDENT AUDITORS’ REPORT
Independent Auditors’ Report
c) in the case of cash flow statement, of the cash flows for the eighteen months ended on that date.
5. Report on Other Legal and Regulatory Requirements :
a. As required by the Companies (Auditor’s Report) Order, 2003 (CARO), as amended, issued by the Central
Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matter specified in paragraph 4 and 5 of the said Order.
b. As required by section 227(3) of the Act, we report that:
i. We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
ii. In our opinion, proper books of accounts required by law have been kept by the company so far as appears
from our examinations of those books.
iii. 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 accounts;
iv. in our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement comply with
the accounting standards referred to in sub-section (3C) of section 211 of the Act read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133
of the Companies Act, 2013;
v. On the basis of written representations received from the directors as on 31st March, 2014, and taken on
record by the Board of Directors, we report that none of the directors are disqualified as on 31st March,
2014 from being appointed as director under clause (g) of sub section (1) of section 274 of the Companies
Act, 1956.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN . 021622N
3938 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
ANNEXURE TO THE AUDITORS’ REPORT
The Annexure referred to in paragraph 5 of ‘Report on Legal and Regulatory Requirement” of
Independent Auditors’ Report,
The Annexure referred to in our report to the members of Lakshmi Energy and Foods Limited for the eighteen months stended 31 March, 2014. We report that
i. a) The company is maintaining proper records showing full particulars, including quantitative details and situation
of its fixed assets.
b) The Company has a regular program of physical verification of its fixed assets through which all fixed assets are
verified, in a phased manner, over a period of three years. In our opinion, this periodicity of physical verification is
reasonable having regard to the size of the company and the nature of its assets. As informed to us, no material
discrepancies were noticed on such verification as carried out under the above program during the current
period.
c) Fixed Assets disposed off during the period, in our opinion, do not consist the substantial part of fixed assets of
the company and such disposal has, in our opinion, not affected the going concern status of the company.
ii. a) As explained to us, the Inventories, except goods in transit, have been physically verified by the management
during the current period at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the procedure of physical
verification of inventories followed by management during the current period are reasonable and adequate in
relation to the size of the company and nature of its business.
c) In our opinion and according to the information and explanations given to us, the Company is maintaining
proper records of inventories and no material discrepancies observed on physical verification.
iii. a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Act. Accordingly, the provision of clauses 4(iii)(b) to 4(iii)(d) of
the order are not applicable.
b) The Company has not taken any loan, secured or unsecured from companies, firms or other parties covered in
the register maintained under section 301 of the Act. Accordingly, the provision of clauses 4(iii)(f) to 4(iii)(g) of
the order are not applicable.
c) The rate of interest and other terms and conditions of loans taken by the company, secured or unsecured, are
prima facie not prejudicial to the interest of the company
iv. In our opinion, and according the information and explanations given to us, there is an adequate internal control
system commensurate with the size of company and nature of its business for the purchase of inventories and fixed
assets and for the sale of goods & services. During the current period, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register
maintained under section 301 of the Act have been so entered.
b) Owing to the unique and specialized nature of the items involved and in the absence of any comparable prices,
we are unable to comment as to whether the transactions made in pursuance of such contracts as
arrangements have been made at prevailing market prices at the relevant time.
Independent Auditors’ Report
c) in the case of cash flow statement, of the cash flows for the eighteen months ended on that date.
5. Report on Other Legal and Regulatory Requirements :
a. As required by the Companies (Auditor’s Report) Order, 2003 (CARO), as amended, issued by the Central
Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the
Annexure a statement on the matter specified in paragraph 4 and 5 of the said Order.
b. As required by section 227(3) of the Act, we report that:
i. We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
ii. In our opinion, proper books of accounts required by law have been kept by the company so far as appears
from our examinations of those books.
iii. 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 accounts;
iv. in our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement comply with
the accounting standards referred to in sub-section (3C) of section 211 of the Act read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133
of the Companies Act, 2013;
v. On the basis of written representations received from the directors as on 31st March, 2014, and taken on
record by the Board of Directors, we report that none of the directors are disqualified as on 31st March,
2014 from being appointed as director under clause (g) of sub section (1) of section 274 of the Companies
Act, 1956.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN . 021622N
3938 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
ANNEXURE TO THE AUDITORS’ REPORT
The Annexure referred to in paragraph 5 of ‘Report on Legal and Regulatory Requirement” of
Independent Auditors’ Report,
The Annexure referred to in our report to the members of Lakshmi Energy and Foods Limited for the eighteen months stended 31 March, 2014. We report that
i. a) The company is maintaining proper records showing full particulars, including quantitative details and situation
of its fixed assets.
b) The Company has a regular program of physical verification of its fixed assets through which all fixed assets are
verified, in a phased manner, over a period of three years. In our opinion, this periodicity of physical verification is
reasonable having regard to the size of the company and the nature of its assets. As informed to us, no material
discrepancies were noticed on such verification as carried out under the above program during the current
period.
c) Fixed Assets disposed off during the period, in our opinion, do not consist the substantial part of fixed assets of
the company and such disposal has, in our opinion, not affected the going concern status of the company.
ii. a) As explained to us, the Inventories, except goods in transit, have been physically verified by the management
during the current period at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the procedure of physical
verification of inventories followed by management during the current period are reasonable and adequate in
relation to the size of the company and nature of its business.
c) In our opinion and according to the information and explanations given to us, the Company is maintaining
proper records of inventories and no material discrepancies observed on physical verification.
iii. a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in
the register maintained under section 301 of the Act. Accordingly, the provision of clauses 4(iii)(b) to 4(iii)(d) of
the order are not applicable.
b) The Company has not taken any loan, secured or unsecured from companies, firms or other parties covered in
the register maintained under section 301 of the Act. Accordingly, the provision of clauses 4(iii)(f) to 4(iii)(g) of
the order are not applicable.
c) The rate of interest and other terms and conditions of loans taken by the company, secured or unsecured, are
prima facie not prejudicial to the interest of the company
iv. In our opinion, and according the information and explanations given to us, there is an adequate internal control
system commensurate with the size of company and nature of its business for the purchase of inventories and fixed
assets and for the sale of goods & services. During the current period, no major weakness has been noticed in the
internal control system in respect of these areas.
v. a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register
maintained under section 301 of the Act have been so entered.
b) Owing to the unique and specialized nature of the items involved and in the absence of any comparable prices,
we are unable to comment as to whether the transactions made in pursuance of such contracts as
arrangements have been made at prevailing market prices at the relevant time.
Annexure to the Auditors’ Report
vi. In our opinion and according to the explanations given to us, the company has not accepted deposits from the public
during the period. Therefore, the provisions of sections 58A and 58AA of the Act and the rules framed there under are
not applicable.
vii. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the company pursuant to the rules prescribed by the
Central Government for the maintenance of cost records under section 209(1)(d) of the Act, in respect of its
products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
However, we have not carried out a detailed examination of the records with a view to determine whether these are
accurate or complete.
ix. a) According the information and explanation given to us, and on the basis of our examination of the records of the
company, it has generally been regular in depositing with the appropriate authorities undisputed dues, including
provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to it. With
regard to the contribution under the Employees’ Deposit Linked Insurance Scheme, 1976 (the Scheme Since,
the company has not made any transaction during the period, there is no statutory liability of the company.
Though there has been a slight delay in few cases of statutory deposits.
No undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than
six months from the date they became payable.
b) According to the information and explanation given to us, the dues outstanding in respect of income tax, wealth
tax, customs duty, service tax and sales tax, on account of dispute are as follows:
Name of the Statute Nature of dues Amount in Period to which Forum where dispute isMillion Rs amount relates pending
Income Tax Act 1961 Demands raised 11.70 AY 2006-07 ITAT
Income Tax Act 1961 Demands raised 65.50 AY 2008-09 Punjab and Haryana High Court
Income Tax Act 1961 Demands raised 14.00 AY 2010-11 ITAT
x. The Company has no accumulated losses at the end of the financial period and it has not incurred cash losses in
current period and immediately preceding financial year.
xi. In our opinion, Company has dues payable to bankers of Rs. 364.27 millions and Company has not defaulted in
repayment of dues to its bankers, debenture holders and financial institutions.
xii. The Company has not granted any loan and advances on the basis of security by way of pledge of shares, debentures
and other securities.
xiii. According to information and explanations given to us, the company is not chit fund or a nidhi/mutual benefit
fund/society. Hence provision of chit fund not applicable.
xiv. According to information and explanations given to us, the Company is not dealing or trading in shares securities,
debentures and other investments.
xv. According to information and explanations given to us, the company has not given any guarantee for loans taken by
others, from banks or financial institutions by subsidiaries and an associate companies respectively, the terms and
conditions whereof are not prejudicial to the interest of the company.
4140 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Annexure to the Auditors’ Report
xvi. According to information and explanation given to us, the company has not raised any fresh term loan during the
current period. Although there is term loan, which have been applied for the purpose for which these were raised.
xvii. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the
Company as at 31st March, 2014, we report that the funds raised on Short Term basis have not been used for long
term investment and vice-versa.
xviii. The Company has made preferential allotment of shares (33, 00,000 shares against convertible warrants) to Mr. Balbir
Singh Uppal Chairman and managing director of the company during the period under audit.
The price at which share are allotted, has been computed according to SEBI guidelines, and in our opinion, is not pre-
judicial to the interest of the company.
xix. According to information and explanations given to us, Company has neither issued nor had any outstanding
debentures during the current period. Accordingly, the provision of clause 4(xix) of the Order is not applicable.
xx. The Company has not raised any money by public issues during the current period. Accordingly, provision of clause
4(xx) of the order is not applicable.
xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the current period covered by our audit.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN . 021622N
Annexure to the Auditors’ Report
vi. In our opinion and according to the explanations given to us, the company has not accepted deposits from the public
during the period. Therefore, the provisions of sections 58A and 58AA of the Act and the rules framed there under are
not applicable.
vii. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the company pursuant to the rules prescribed by the
Central Government for the maintenance of cost records under section 209(1)(d) of the Act, in respect of its
products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
However, we have not carried out a detailed examination of the records with a view to determine whether these are
accurate or complete.
ix. a) According the information and explanation given to us, and on the basis of our examination of the records of the
company, it has generally been regular in depositing with the appropriate authorities undisputed dues, including
provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to it. With
regard to the contribution under the Employees’ Deposit Linked Insurance Scheme, 1976 (the Scheme Since,
the company has not made any transaction during the period, there is no statutory liability of the company.
Though there has been a slight delay in few cases of statutory deposits.
No undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than
six months from the date they became payable.
b) According to the information and explanation given to us, the dues outstanding in respect of income tax, wealth
tax, customs duty, service tax and sales tax, on account of dispute are as follows:
Name of the Statute Nature of dues Amount in Period to which Forum where dispute isMillion Rs amount relates pending
Income Tax Act 1961 Demands raised 11.70 AY 2006-07 ITAT
Income Tax Act 1961 Demands raised 65.50 AY 2008-09 Punjab and Haryana High Court
Income Tax Act 1961 Demands raised 14.00 AY 2010-11 ITAT
x. The Company has no accumulated losses at the end of the financial period and it has not incurred cash losses in
current period and immediately preceding financial year.
xi. In our opinion, Company has dues payable to bankers of Rs. 364.27 millions and Company has not defaulted in
repayment of dues to its bankers, debenture holders and financial institutions.
xii. The Company has not granted any loan and advances on the basis of security by way of pledge of shares, debentures
and other securities.
xiii. According to information and explanations given to us, the company is not chit fund or a nidhi/mutual benefit
fund/society. Hence provision of chit fund not applicable.
xiv. According to information and explanations given to us, the Company is not dealing or trading in shares securities,
debentures and other investments.
xv. According to information and explanations given to us, the company has not given any guarantee for loans taken by
others, from banks or financial institutions by subsidiaries and an associate companies respectively, the terms and
conditions whereof are not prejudicial to the interest of the company.
4140 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Annexure to the Auditors’ Report
xvi. According to information and explanation given to us, the company has not raised any fresh term loan during the
current period. Although there is term loan, which have been applied for the purpose for which these were raised.
xvii. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the
Company as at 31st March, 2014, we report that the funds raised on Short Term basis have not been used for long
term investment and vice-versa.
xviii. The Company has made preferential allotment of shares (33, 00,000 shares against convertible warrants) to Mr. Balbir
Singh Uppal Chairman and managing director of the company during the period under audit.
The price at which share are allotted, has been computed according to SEBI guidelines, and in our opinion, is not pre-
judicial to the interest of the company.
xix. According to information and explanations given to us, Company has neither issued nor had any outstanding
debentures during the current period. Accordingly, the provision of clause 4(xix) of the Order is not applicable.
xx. The Company has not raised any money by public issues during the current period. Accordingly, provision of clause
4(xx) of the order is not applicable.
xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or
by the Company has been noticed or reported during the current period covered by our audit.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN . 021622N
BALANCE SHEET as at 31.03.2014
Company Information 1 As per our report of even date
Significant Accounting Policies 2 For SMPS & Co.
Other Notes Forming Part 29-44 Chartered Accountants
of the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)
Chairman & Managing Director Director DGM- Accounts & Taxation Partner
DIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622N
Place : Chandigarh (P. C. JAIN) (AJAY K. RATRA)
Date : 30.05.2014 Internal Auditor Company Secretary
(Rs In Millions)
31.03.2014
EQUITY & LIABILITIES
1. Shareholders’ Funds
a) Share Capital 3 132.98 126.38
b) Reserves and Surplus 4 7114.94 7065.79
c) Money received against convertible warrants 19.14 -
Sub-Total - Shareholders’ funds 7267.06 7192.17
2. Non-Current Liabilities
a) Long-Term Borrowings 5 307.13 513.99
b) Deferred Tax Liabilities (Net) 6 505.18 667.69
c) Long-Term Provisions 7 7.03 6.58
Sub-Total - Non-Current Liabilities 819.34 1188.26
3. Current Liabilities
a) Short-Term Borrowings 8 8241.90 8337.82
b) Trade Payables 9 3811.45 1540.09
c) Other Current Liabilities 10 366.31 740.14
d) Short-Term Provisions 11 60.78 55.21
Sub-Total - Current Liabilities 12480.44 10673.26
TOTAL - EQUITY AND LIABILITIES 20566.84 19053.69
ASSETS
1. Non-Current Assets
a) Fixed Assets
Tangible Asset 12 2647.62 2910.51
b) Capital WIP 13 61.20 306.07
c) Non-Current Investments 14 608.53 608.53
d) Long-term Loans & Advances 15 66.48 59.11
e) Other Non-Current Assets 16 15.44 35.66
Sub-Total - Non-Current Assets 3399.27 3919.87
2. Current Assets
a) Inventories 17 12669.95 13335.87
b) Trade Receivables 18 3590.54 537.03
c) Cash & Cash Equivalents 19 25.84 27.14
d) Short-Term Loans & Advances 20 254.59 192.01
e) Other Current Assets 21 626.65 1041.77
Sub-Total - Current Assets 17167.57 15133.82
TOTAL- ASSETS 20566.84 19053.69
Particulars Notes
30.09.2012
As at As at
4342 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
STATEMENT OF PROFIT AND LOSS for the period 01.10.2012 to 31.03.2014
(Rs In Millions)
ended 31.03.2014
INCOME
Revenue from operations:
(a) Sale of Products 22 18492.41 12100.40
(b) Other Operating revenues 23 36.45 0.45
Other Income 24 26.15 8.60
Total Revenue (A) 18555.01 12109.45
EXPENSES
Cost of materials consumed 25 12680.51 6492.37
Purchase of Stock-in-Trade 25 636.72 2690.22
Changes in inventories of finished goods, 25 2326.18 260.26
work-in-progress and Stock-in-Trade
Employee benefit expenses 26 155.08 92.72
Finance costs 27 963.80 1345.90
Depreciation and amortization expenses 12 639.11 398.88
Other expenses 28 1350.37 820.17
Total Expenses (B) 18751.77 12100.51
(Loss) / Profit before exceptional (A-B) (196.76) 8.94
and extraordinary items and tax
Less:Exceptional Items
(Loss) / Profit before extraordinary items and tax (196.76) 8.94
Less:Extraordinary Items
(Loss) / Profit before tax (196.76) 8.94
Less:Tax expense:
(1) Current tax 1.79
(2) Deferred tax 6 (162.51) (100.51)
(Loss) / Profit for the period (34.25) 107.66
EARNING PER EQUITY SHARE (Face Value of ` 2/- each)
- Basic (0.52) 1.70
- Diluted (0.49) 1.70
Particulars Notes
on30.09.2012
For the18 Months For the year ended
Company Information 1 As per our report of even dateSignificant Accounting Policies 2 For SMPS & Co.Other Notes Forming Part 29-44 Chartered Accountantsof the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
BALANCE SHEET as at 31.03.2014
Company Information 1 As per our report of even date
Significant Accounting Policies 2 For SMPS & Co.
Other Notes Forming Part 29-44 Chartered Accountants
of the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)
Chairman & Managing Director Director DGM- Accounts & Taxation Partner
DIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622N
Place : Chandigarh (P. C. JAIN) (AJAY K. RATRA)
Date : 30.05.2014 Internal Auditor Company Secretary
(Rs In Millions)
31.03.2014
EQUITY & LIABILITIES
1. Shareholders’ Funds
a) Share Capital 3 132.98 126.38
b) Reserves and Surplus 4 7114.94 7065.79
c) Money received against convertible warrants 19.14 -
Sub-Total - Shareholders’ funds 7267.06 7192.17
2. Non-Current Liabilities
a) Long-Term Borrowings 5 307.13 513.99
b) Deferred Tax Liabilities (Net) 6 505.18 667.69
c) Long-Term Provisions 7 7.03 6.58
Sub-Total - Non-Current Liabilities 819.34 1188.26
3. Current Liabilities
a) Short-Term Borrowings 8 8241.90 8337.82
b) Trade Payables 9 3811.45 1540.09
c) Other Current Liabilities 10 366.31 740.14
d) Short-Term Provisions 11 60.78 55.21
Sub-Total - Current Liabilities 12480.44 10673.26
TOTAL - EQUITY AND LIABILITIES 20566.84 19053.69
ASSETS
1. Non-Current Assets
a) Fixed Assets
Tangible Asset 12 2647.62 2910.51
b) Capital WIP 13 61.20 306.07
c) Non-Current Investments 14 608.53 608.53
d) Long-term Loans & Advances 15 66.48 59.11
e) Other Non-Current Assets 16 15.44 35.66
Sub-Total - Non-Current Assets 3399.27 3919.87
2. Current Assets
a) Inventories 17 12669.95 13335.87
b) Trade Receivables 18 3590.54 537.03
c) Cash & Cash Equivalents 19 25.84 27.14
d) Short-Term Loans & Advances 20 254.59 192.01
e) Other Current Assets 21 626.65 1041.77
Sub-Total - Current Assets 17167.57 15133.82
TOTAL- ASSETS 20566.84 19053.69
Particulars Notes
30.09.2012
As at As at
4342 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
STATEMENT OF PROFIT AND LOSS for the period 01.10.2012 to 31.03.2014
(Rs In Millions)
ended 31.03.2014
INCOME
Revenue from operations:
(a) Sale of Products 22 18492.41 12100.40
(b) Other Operating revenues 23 36.45 0.45
Other Income 24 26.15 8.60
Total Revenue (A) 18555.01 12109.45
EXPENSES
Cost of materials consumed 25 12680.51 6492.37
Purchase of Stock-in-Trade 25 636.72 2690.22
Changes in inventories of finished goods, 25 2326.18 260.26
work-in-progress and Stock-in-Trade
Employee benefit expenses 26 155.08 92.72
Finance costs 27 963.80 1345.90
Depreciation and amortization expenses 12 639.11 398.88
Other expenses 28 1350.37 820.17
Total Expenses (B) 18751.77 12100.51
(Loss) / Profit before exceptional (A-B) (196.76) 8.94
and extraordinary items and tax
Less:Exceptional Items
(Loss) / Profit before extraordinary items and tax (196.76) 8.94
Less:Extraordinary Items
(Loss) / Profit before tax (196.76) 8.94
Less:Tax expense:
(1) Current tax 1.79
(2) Deferred tax 6 (162.51) (100.51)
(Loss) / Profit for the period (34.25) 107.66
EARNING PER EQUITY SHARE (Face Value of ` 2/- each)
- Basic (0.52) 1.70
- Diluted (0.49) 1.70
Particulars Notes
on30.09.2012
For the18 Months For the year ended
Company Information 1 As per our report of even dateSignificant Accounting Policies 2 For SMPS & Co.Other Notes Forming Part 29-44 Chartered Accountantsof the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
CASH FLOW STATEMENT for the period 01.10.2012 to 31.03.2014
(Rs In Millions)
For the18 Months
ended 31.03.2014
A. Cash Flow from Operating Activities
Net Profit before Tax and Extra Ordinary Items (196.76) 8.94
ADJUSTMENT FOR:
Interest Paid 963.80 1345.90
Depreciation 639.11 398.88
Interest Income (6.17) (6.28)
Dividend Income (0.07) (0.06)
Interim dividend paid 22.18 -
Provision for Gratuity 1.46 1.01
Provision for Leave Encashment 0.23 0.00
Provision for Bonus 1.69 1.56
Provision for loss on Foreign Exchange Fluctuations 58.86 -
Loss on Sale of Fixed Assets 0.22 4.87
Operating Profit before Working Capital Changes: 1484.55 1754.82
ADJUSTMENT FOR:
Trade Receivables (3053.51) 1727.55
Short term advances (62.58) 471.49
Other current assets 415.13 (459.23)
Inventories 665.92 (2007.56)
Trade Payables 2271.36 490.32
Other Liabilities (368.90) (329.04)
Cash generated from Operating Activities 1351.98 1648.34
Income Tax Paid 0.00 (7.50)
Net Cash Flow from Operating Activities 1351.98 1640.84
B. Cash Flow from Investing Activities
Addition to Fixed assets (176.65) (197.31)
Sale of Fixed asset 16.00
Long term advances (7.37) (0.11)
Other Non Current assets 20.21 (22.33)
Dividend Income 0.07 0.06
Interest Income 6.17 6.28
Net Cash used in Investing Activities (141.57) (213.41)
Sub Total (A+B) 1210.41 1427.44
C. Cash Flow from Financing Activities
Increase in Share Capital/convertible warrants 25.74 -
increase in Share Premium 66.00
Increase in Long Term Loans (Net) (206.86) 318.01
Increase in Short Term Borrowings (Net) (95.92) (359.63)
Interim dividend paid (22.18) -
Interest Paid (963.80) (1345.90)
Dividend Paid (14.69) (14.79)
Cash Flow from Financing Activities (1211.70) (1402.31)
Net Increase in Cash & Cash Equivalent (1.29) 25.13
Cash & Cash Equivalents in at beginning of the year 27.14 2.00
Cash & Cash Equivalents at end of the year 25.84 27.14
Particulars
on 30.09.2012
For the year ended
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
4544 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
NOTE - 1
COMPANY INFORMATION
Lakshmi Energy and Foods Limited (LEAF) is a widely held Public Limited Company engaged in manufacturing of Rice of various varieties
and grades, Edible oil, whole Wheat Flour and Green Power. The Company was incorporated on 20-07-1990.
Its shares are listed on National Stock Exchange of India Limited (NSE) Bombay Stock Exchange Limited (BSE), Delhi Stock Exchange
Limited (DSE) and Ludhiana Stock Exchange Limited (LSE). The Registered Office of the Company is at Chandigarh and its plant is located
in VPO Khamanon on the Chandigarh-Ludhiana National Highway, Distt. Fatehgarh Sahib, Punjab, India. The company is among the largest
food and biomass power producers.
NOTE -2
SIGNIFICANT ACCOUNTING POLICIES
I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
i. The financial statements have been prepared and presented under the historical cost convention on the accrual basis of
accounting and on the accounting principles of going concern except as stated hereinafter and except where impairment
of assets is made and revaluation of assets is carried out, in accordance with all the applicable accounting principles
generally accepted in India and comply with the mandatory applicable accounting standards notified under Sub-Section
(3C) of Section 211 of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956 and the rules,
regulations and guidelines made there under.
ii. Accounting policies not specifically referred to otherwise are consistently applied by the company and are in consonance
with generally accepted accounting principles recognized in the form of accounting standards.
iii. The Board of Directors of the company approved the change in the financial year of the Company from October-
September to April- March effective April 01 2014. In view of this, the current financial year is for a period of 18 months i.e.
01 October 2012 to 31 March, 2014.
II. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires
management to make judgments, estimates and assumptions that affect the application of accounting policies and reported
amounts of assets, liabilities, income and expenses and disclosure of contingent liabilities on the date of the financial statements.
Examples of such estimates include transfer pricing related adjustments, provision against litigations and regulatory actions,
provisions of future obligation under employee benefit plans, useful lives of fixed assets, provision in respect of non-current
investments, provision for sales return, recoverability of tax assets, provision for customer claims, provision for inventory
obsolescence including expiry of drugs and impairment of assets. Actual results could differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the
current and future periods.
III. REVENUE RECOGNITION
Revenues recognized to the extent it can be reliably measured and is probable that economic benefits will flow to the company.
Revenues are considered receivable are accounted for on accrual basis except for the Disposal of Sundry items & Scraps etc.,
which are accounted for on cash basis:
SALES
Revenue from sales of goods is recognized when the significant risk and reward of ownership of the goods are transferred to the
customer. Sales are stated net of sales returns and indirect taxes.
INTEREST
Income is recognized on a time proportion basis taking into account outstanding amount and the applicable rate of interest.
Significant Accounting Policies
CASH FLOW STATEMENT for the period 01.10.2012 to 31.03.2014
(Rs In Millions)
For the18 Months
ended 31.03.2014
A. Cash Flow from Operating Activities
Net Profit before Tax and Extra Ordinary Items (196.76) 8.94
ADJUSTMENT FOR:
Interest Paid 963.80 1345.90
Depreciation 639.11 398.88
Interest Income (6.17) (6.28)
Dividend Income (0.07) (0.06)
Interim dividend paid 22.18 -
Provision for Gratuity 1.46 1.01
Provision for Leave Encashment 0.23 0.00
Provision for Bonus 1.69 1.56
Provision for loss on Foreign Exchange Fluctuations 58.86 -
Loss on Sale of Fixed Assets 0.22 4.87
Operating Profit before Working Capital Changes: 1484.55 1754.82
ADJUSTMENT FOR:
Trade Receivables (3053.51) 1727.55
Short term advances (62.58) 471.49
Other current assets 415.13 (459.23)
Inventories 665.92 (2007.56)
Trade Payables 2271.36 490.32
Other Liabilities (368.90) (329.04)
Cash generated from Operating Activities 1351.98 1648.34
Income Tax Paid 0.00 (7.50)
Net Cash Flow from Operating Activities 1351.98 1640.84
B. Cash Flow from Investing Activities
Addition to Fixed assets (176.65) (197.31)
Sale of Fixed asset 16.00
Long term advances (7.37) (0.11)
Other Non Current assets 20.21 (22.33)
Dividend Income 0.07 0.06
Interest Income 6.17 6.28
Net Cash used in Investing Activities (141.57) (213.41)
Sub Total (A+B) 1210.41 1427.44
C. Cash Flow from Financing Activities
Increase in Share Capital/convertible warrants 25.74 -
increase in Share Premium 66.00
Increase in Long Term Loans (Net) (206.86) 318.01
Increase in Short Term Borrowings (Net) (95.92) (359.63)
Interim dividend paid (22.18) -
Interest Paid (963.80) (1345.90)
Dividend Paid (14.69) (14.79)
Cash Flow from Financing Activities (1211.70) (1402.31)
Net Increase in Cash & Cash Equivalent (1.29) 25.13
Cash & Cash Equivalents in at beginning of the year 27.14 2.00
Cash & Cash Equivalents at end of the year 25.84 27.14
Particulars
on 30.09.2012
For the year ended
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
4544 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
NOTE - 1
COMPANY INFORMATION
Lakshmi Energy and Foods Limited (LEAF) is a widely held Public Limited Company engaged in manufacturing of Rice of various varieties
and grades, Edible oil, whole Wheat Flour and Green Power. The Company was incorporated on 20-07-1990.
Its shares are listed on National Stock Exchange of India Limited (NSE) Bombay Stock Exchange Limited (BSE), Delhi Stock Exchange
Limited (DSE) and Ludhiana Stock Exchange Limited (LSE). The Registered Office of the Company is at Chandigarh and its plant is located
in VPO Khamanon on the Chandigarh-Ludhiana National Highway, Distt. Fatehgarh Sahib, Punjab, India. The company is among the largest
food and biomass power producers.
NOTE -2
SIGNIFICANT ACCOUNTING POLICIES
I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
i. The financial statements have been prepared and presented under the historical cost convention on the accrual basis of
accounting and on the accounting principles of going concern except as stated hereinafter and except where impairment
of assets is made and revaluation of assets is carried out, in accordance with all the applicable accounting principles
generally accepted in India and comply with the mandatory applicable accounting standards notified under Sub-Section
(3C) of Section 211 of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956 and the rules,
regulations and guidelines made there under.
ii. Accounting policies not specifically referred to otherwise are consistently applied by the company and are in consonance
with generally accepted accounting principles recognized in the form of accounting standards.
iii. The Board of Directors of the company approved the change in the financial year of the Company from October-
September to April- March effective April 01 2014. In view of this, the current financial year is for a period of 18 months i.e.
01 October 2012 to 31 March, 2014.
II. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires
management to make judgments, estimates and assumptions that affect the application of accounting policies and reported
amounts of assets, liabilities, income and expenses and disclosure of contingent liabilities on the date of the financial statements.
Examples of such estimates include transfer pricing related adjustments, provision against litigations and regulatory actions,
provisions of future obligation under employee benefit plans, useful lives of fixed assets, provision in respect of non-current
investments, provision for sales return, recoverability of tax assets, provision for customer claims, provision for inventory
obsolescence including expiry of drugs and impairment of assets. Actual results could differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the
current and future periods.
III. REVENUE RECOGNITION
Revenues recognized to the extent it can be reliably measured and is probable that economic benefits will flow to the company.
Revenues are considered receivable are accounted for on accrual basis except for the Disposal of Sundry items & Scraps etc.,
which are accounted for on cash basis:
SALES
Revenue from sales of goods is recognized when the significant risk and reward of ownership of the goods are transferred to the
customer. Sales are stated net of sales returns and indirect taxes.
INTEREST
Income is recognized on a time proportion basis taking into account outstanding amount and the applicable rate of interest.
Significant Accounting Policies
DIVIDEND
Income from dividend is recognized when the right to dividend has been established.
OTHER OPERATING INCOME
Other operating revenue is recognized on accrual basis.
IV. CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after the reporting date; or
d. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. it is expected to be settled in the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the reporting date; or
d. the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current financial assets/ liabilities respectively. All other assets/
liabilities are classified as non-current.
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.
V. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction [including attributable interest and financial costs till such assets are
ready for intended use, less accumulated depreciation, impairment losses and specific grants received, if any] except assets strevalued on 31 March, 1999. In respect of projects involving institutional loans, related pre-operative and pre-operational
expenses like up-front fees and appraisal fees have been capitalized. Interest paid on loans borrowed from institutions, which are
attributable to construction or acquisition of fixed assets for the period up to the completion of construction or acquisition of
fixed assets, has also been capitalized.
TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, if
any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable
taxes or levies and any attributable costs of bringing the asset to its working condition for its intended use.
Significant Accounting Policies
4746 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
INTANGIBLE ASSETS AND AMORTIZATION
Intangible fixed assets comprise brands, trademarks and computer software, which are stated at cost less accumulated
amortization and impairment losses, if any. The cost of an item of intangible fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition
for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of asset.
REVALUTION OF FIXED ASSETS
stAll fixed assets of the company were revalued on 31 March 1999 as per the valuation report of Chartered Engineers / approved
valuers.
As and when the fixed assets are revalued, the provision for depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional diminution in the value.
DEPRECIATION
Depreciation is provided, pro-rata, on Straight Line Method by applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
As per the Accounting Standard-6 “Depreciation Accounting” (AS-6) issued by the Institute of Chartered Accountants of India,
depreciation on revalued assets has been adjusted with the revaluation reserve amount.
Depreciation on Power plant was claimed as usual as per “As-6”issued by ICAI.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 “Impairment of Assets” (AS-28) issued by the Institute of Chartered Accountants of India,
impairment is ascertained at each balance sheet date in respect of each of the company’s fixed assets. An impairment loss will be
recognized whenever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is the
greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted
to their present value based on an appropriate discount factor.
VII. INVESTMENTS
i. Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline,
other than temporary, in the value of investments, on an individual basis.
iv. Current Investments are carried at the lower of cost and fair value determined on a category-wise basis.
VIII. VALUATION OF INVENTORIES
i. Raw Materials Components, Stores & Spare parts & Packing Material. At Cost or net realizable value, whichever is less.
ii. Finished Goods. At Cost or net realizable value, whichever is less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
Significant Accounting Policies
DIVIDEND
Income from dividend is recognized when the right to dividend has been established.
OTHER OPERATING INCOME
Other operating revenue is recognized on accrual basis.
IV. CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after the reporting date; or
d. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. it is expected to be settled in the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the reporting date; or
d. the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current financial assets/ liabilities respectively. All other assets/
liabilities are classified as non-current.
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.
V. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction [including attributable interest and financial costs till such assets are
ready for intended use, less accumulated depreciation, impairment losses and specific grants received, if any] except assets strevalued on 31 March, 1999. In respect of projects involving institutional loans, related pre-operative and pre-operational
expenses like up-front fees and appraisal fees have been capitalized. Interest paid on loans borrowed from institutions, which are
attributable to construction or acquisition of fixed assets for the period up to the completion of construction or acquisition of
fixed assets, has also been capitalized.
TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, if
any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable
taxes or levies and any attributable costs of bringing the asset to its working condition for its intended use.
Significant Accounting Policies
4746 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
INTANGIBLE ASSETS AND AMORTIZATION
Intangible fixed assets comprise brands, trademarks and computer software, which are stated at cost less accumulated
amortization and impairment losses, if any. The cost of an item of intangible fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition
for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of asset.
REVALUTION OF FIXED ASSETS
stAll fixed assets of the company were revalued on 31 March 1999 as per the valuation report of Chartered Engineers / approved
valuers.
As and when the fixed assets are revalued, the provision for depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional diminution in the value.
DEPRECIATION
Depreciation is provided, pro-rata, on Straight Line Method by applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
As per the Accounting Standard-6 “Depreciation Accounting” (AS-6) issued by the Institute of Chartered Accountants of India,
depreciation on revalued assets has been adjusted with the revaluation reserve amount.
Depreciation on Power plant was claimed as usual as per “As-6”issued by ICAI.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 “Impairment of Assets” (AS-28) issued by the Institute of Chartered Accountants of India,
impairment is ascertained at each balance sheet date in respect of each of the company’s fixed assets. An impairment loss will be
recognized whenever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is the
greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted
to their present value based on an appropriate discount factor.
VII. INVESTMENTS
i. Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline,
other than temporary, in the value of investments, on an individual basis.
iv. Current Investments are carried at the lower of cost and fair value determined on a category-wise basis.
VIII. VALUATION OF INVENTORIES
i. Raw Materials Components, Stores & Spare parts & Packing Material. At Cost or net realizable value, whichever is less.
ii. Finished Goods. At Cost or net realizable value, whichever is less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
Significant Accounting Policies
IX. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments with original
maturities, at the date of purchase/ investment, of three months or less.
X. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of exchange in force at the time the transactions are affected.
In case of forward contracts, if any, the difference between the forward rates and the exchange rates on the transaction dates is
recognized as income or expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward contracts are recorded as income / expense for the period.
At the year end, monetary items demonetized in foreign currency are reported using the closing rates of exchange. Exchange rate
differences arising on realization / payment of foreign exchange are accounted in the year of realisation / payment.
XI. EMPLOYEE / RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to Revenue on accrual basis.
ii. The company is regularly making contributions to provident fund schemes, to the extent as applicable to the company.
iii. Gratuity is being provided as required as per actuarial valuation.
XII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22 “Accounting for Taxes on Income” (AS-22) issued by
the Institute of Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax liability computed after considering tax allowances and
exemptions.
iii. The difference that results between the profit offered for income tax and the profit as per the financial statements is
identified and, thereafter, a deferred tax asset or deferred tax liability is recorded for timing differences, namely the
differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate
amount being considered.
iv. The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonable certain or virtually certain, as the
case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any
such written down carrying amount is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available.
XIII. PROVISIONS
A provision is recognised if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best
estimate of the expenditure required to settle the present obligation at the Balance Sheet date. The provisions are measured on
an undiscounted basis.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the year in which it is incurred. Expenditure which results in
creation of assets is included in fixed assets and depreciation is provided thereon on such assets, as applicable.
Significant Accounting Policies
4948 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND
CONTINGENT ASSETS
Provisions are recognized in terms of Accounting Standard-29 “Provisions, Contingent Liabilities and Contingent Assets” (AS-29)
issued by the Institute of Chartered Accountants of India, when there is a present legal or statutory obligation as a result of past
events, where it is probable that there will be outflow of resources to settle the obligation and a reliable estimate of the amount of
the obligation can be made.
Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the control of the company or where any present
obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be
made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided
for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The Company’s significant leasing arrangements are in respect of operating leases for premises (office, stores, godowns etc.)
These leasing arrangements which are not non-cancellable range between 6 months and 1 year generally or longer and are
usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent/
Storage Charges in the statement of Profit and Loss.
XVI. EARNING PER SHARE
In determining the earning per share, the company considers the net profit after tax. The number of shares used in computing
basic earnings per share is the weighted average number of shares outstanding during the period.
XVIII. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to facilitate compliance with the relevant provisions of the
Companies Act, 1956 on one hand and meet the internal requirements of information and systems for planning, review and
internal control on the other.
Significant Accounting Policies
IX. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments with original
maturities, at the date of purchase/ investment, of three months or less.
X. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of exchange in force at the time the transactions are affected.
In case of forward contracts, if any, the difference between the forward rates and the exchange rates on the transaction dates is
recognized as income or expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward contracts are recorded as income / expense for the period.
At the year end, monetary items demonetized in foreign currency are reported using the closing rates of exchange. Exchange rate
differences arising on realization / payment of foreign exchange are accounted in the year of realisation / payment.
XI. EMPLOYEE / RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to Revenue on accrual basis.
ii. The company is regularly making contributions to provident fund schemes, to the extent as applicable to the company.
iii. Gratuity is being provided as required as per actuarial valuation.
XII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22 “Accounting for Taxes on Income” (AS-22) issued by
the Institute of Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax liability computed after considering tax allowances and
exemptions.
iii. The difference that results between the profit offered for income tax and the profit as per the financial statements is
identified and, thereafter, a deferred tax asset or deferred tax liability is recorded for timing differences, namely the
differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate
amount being considered.
iv. The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonable certain or virtually certain, as the
case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any
such written down carrying amount is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available.
XIII. PROVISIONS
A provision is recognised if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best
estimate of the expenditure required to settle the present obligation at the Balance Sheet date. The provisions are measured on
an undiscounted basis.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the year in which it is incurred. Expenditure which results in
creation of assets is included in fixed assets and depreciation is provided thereon on such assets, as applicable.
Significant Accounting Policies
4948 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND
CONTINGENT ASSETS
Provisions are recognized in terms of Accounting Standard-29 “Provisions, Contingent Liabilities and Contingent Assets” (AS-29)
issued by the Institute of Chartered Accountants of India, when there is a present legal or statutory obligation as a result of past
events, where it is probable that there will be outflow of resources to settle the obligation and a reliable estimate of the amount of
the obligation can be made.
Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the control of the company or where any present
obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be
made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided
for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The Company’s significant leasing arrangements are in respect of operating leases for premises (office, stores, godowns etc.)
These leasing arrangements which are not non-cancellable range between 6 months and 1 year generally or longer and are
usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent/
Storage Charges in the statement of Profit and Loss.
XVI. EARNING PER SHARE
In determining the earning per share, the company considers the net profit after tax. The number of shares used in computing
basic earnings per share is the weighted average number of shares outstanding during the period.
XVIII. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
The books of accounts and other records have been designed to facilitate compliance with the relevant provisions of the
Companies Act, 1956 on one hand and meet the internal requirements of information and systems for planning, review and
internal control on the other.
Significant Accounting Policies
NOTES forming part of the Financial Statements
(Rs In Millions)
31.03.2014
NOTE:-3
SHARE CAPITAL
AUTHORISED CAPITAL
10,00,00,000 Equity Shares of Rs 2/- each 200.00 200.00
(Previous year 10,00,00,000 Equity shares of Rs 2/-each)
ISSUED & SUBSCRIBED CAPITAL
6,69,10,000 Equity Shares of Rs 2/- Each 133.82 127.22
(Previous year 6,36,10,000 Equity shares of Rs 2/-each)
PAID UP CAPITAL
6,64,90,000 Equity Shares of Rs 2/- Each 132.98 126.38
(Previous year 6,31,90,000 Equity shares of Rs 2/-each)
TOTAL 132.98 126.38
Notes :
1) 84,000 Equity shares of the face value of Rs.10/- each were already forfeited in the earlier years.
2) During the period company has issued & converted 33,00,000 convertible warrants into ordinary equity shares @ 22/- per share.
(A) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
As at 31/03/2014
No of Shares Amount
Ordinary Equity Shares outstanding at the beginning 63,190,000 126.38 63,190,000 126.38
Ordinary Equity Shares issued during the period 3,300,000 6.60 - -
Ordinary Equity Shares bought back during the period - - - -
Ordinary Equity Shares outstanding at the end 66,490,000 132.98 63,190,000 126.38
(B) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary equity shares having a par value of ` 2/- per share. Each holder of ordinary shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
During the year ended 31/03/2014, the amount of dividend per share recognised for distribution to ordinary shareholders isRe. 0.30 per share (Interim) - (Previous year: Rs ̀ 0.20/- per share).
In the event of liquidation of the company, the holders of ordinary 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 ordinary shares held by the shareholders.
(C) Details of shareholders holding more than 5% shares in the Company
As at 31/03/2014
No of Shares % of Holdingheld
1 BALBIR SINGH UPPAL 16,175,985 24.33% 10,400,985 16.46%
2 GANESHAY OVERSEAS INDUSTRIES LIMITED 4,632,000 6.97% 4,632,000 7.33%
3 LOIL HEALTH FOODS LTD 5,605,000 8.43% 5,605,000 8.87%
(D) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date: Nil .
Particulars
30.09.2012
Particulars As at 30/09/2012
No of Shares Amount
Sl. No Particulars As at 30/09/2012
No of Shares % of Holdingheld
As at As at
5150 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
(Rs In Millions)
As at
31.03.2014
NOTE:-4
RESERVES & SURPLUS
General Reserve
Opening Balance 478.81 476.11
Add : Addition during the period - 2.69
Closing Balance 478.81 478.81
Securities Premium Reserve
Opening Balance 1648.87 1648.87
Add : Addition during the period 66.00 -
Closing Balance 1714.87 1648.87
Revaluation Reserve
Opening Balance 29.06 64.86
Less : Utilised for depreciation 29.06 35.80
Closing Balance - 29.06
Surplus In Profit and Loss Statement
Opening balance 4909.05 4816.98
Add : Excess provision of tax in earlier years 46.46 -
Add : Mat Credit Entitlement - 1.79
Add : Net Profit/(Net Loss) for the Current year (34.25) 107.66
Amount Available for appropriation 4921.26 4926.43
Less: Provision for Dividend (including Tax) - 14.69
Less: Amount Transferred to General Reserve - 2.69
Closing Balance 4921.26 4909.05
Total Closing Balance 7114.94 7065.79
NOTE:-5
Long Term Borrowings
Term Loans : Secured
i) Punjab National Bank
- For Rice Expansion
Outstanding Balance - 47.40
Less: Current maturity - 47.40
Non Current amount - -
- For Rice Expansion
Outstanding Balance 364.27 404.73
Less: Current maturity 57.14 -
Non Current amount 307.13 404.73
- For Power Project
Outstanding Balance - 79.25
Less: Current maturity - 31.33
Non Current amount - 47.93
Particulars
30.09.2012
As at
Notes Forming Part of the Financial Statements
NOTES forming part of the Financial Statements
(Rs In Millions)
31.03.2014
NOTE:-3
SHARE CAPITAL
AUTHORISED CAPITAL
10,00,00,000 Equity Shares of Rs 2/- each 200.00 200.00
(Previous year 10,00,00,000 Equity shares of Rs 2/-each)
ISSUED & SUBSCRIBED CAPITAL
6,69,10,000 Equity Shares of Rs 2/- Each 133.82 127.22
(Previous year 6,36,10,000 Equity shares of Rs 2/-each)
PAID UP CAPITAL
6,64,90,000 Equity Shares of Rs 2/- Each 132.98 126.38
(Previous year 6,31,90,000 Equity shares of Rs 2/-each)
TOTAL 132.98 126.38
Notes :
1) 84,000 Equity shares of the face value of Rs.10/- each were already forfeited in the earlier years.
2) During the period company has issued & converted 33,00,000 convertible warrants into ordinary equity shares @ 22/- per share.
(A) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
As at 31/03/2014
No of Shares Amount
Ordinary Equity Shares outstanding at the beginning 63,190,000 126.38 63,190,000 126.38
Ordinary Equity Shares issued during the period 3,300,000 6.60 - -
Ordinary Equity Shares bought back during the period - - - -
Ordinary Equity Shares outstanding at the end 66,490,000 132.98 63,190,000 126.38
(B) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary equity shares having a par value of ` 2/- per share. Each holder of ordinary shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
During the year ended 31/03/2014, the amount of dividend per share recognised for distribution to ordinary shareholders isRe. 0.30 per share (Interim) - (Previous year: Rs ̀ 0.20/- per share).
In the event of liquidation of the company, the holders of ordinary 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 ordinary shares held by the shareholders.
(C) Details of shareholders holding more than 5% shares in the Company
As at 31/03/2014
No of Shares % of Holdingheld
1 BALBIR SINGH UPPAL 16,175,985 24.33% 10,400,985 16.46%
2 GANESHAY OVERSEAS INDUSTRIES LIMITED 4,632,000 6.97% 4,632,000 7.33%
3 LOIL HEALTH FOODS LTD 5,605,000 8.43% 5,605,000 8.87%
(D) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date: Nil .
Particulars
30.09.2012
Particulars As at 30/09/2012
No of Shares Amount
Sl. No Particulars As at 30/09/2012
No of Shares % of Holdingheld
As at As at
5150 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
(Rs In Millions)
As at
31.03.2014
NOTE:-4
RESERVES & SURPLUS
General Reserve
Opening Balance 478.81 476.11
Add : Addition during the period - 2.69
Closing Balance 478.81 478.81
Securities Premium Reserve
Opening Balance 1648.87 1648.87
Add : Addition during the period 66.00 -
Closing Balance 1714.87 1648.87
Revaluation Reserve
Opening Balance 29.06 64.86
Less : Utilised for depreciation 29.06 35.80
Closing Balance - 29.06
Surplus In Profit and Loss Statement
Opening balance 4909.05 4816.98
Add : Excess provision of tax in earlier years 46.46 -
Add : Mat Credit Entitlement - 1.79
Add : Net Profit/(Net Loss) for the Current year (34.25) 107.66
Amount Available for appropriation 4921.26 4926.43
Less: Provision for Dividend (including Tax) - 14.69
Less: Amount Transferred to General Reserve - 2.69
Closing Balance 4921.26 4909.05
Total Closing Balance 7114.94 7065.79
NOTE:-5
Long Term Borrowings
Term Loans : Secured
i) Punjab National Bank
- For Rice Expansion
Outstanding Balance - 47.40
Less: Current maturity - 47.40
Non Current amount - -
- For Rice Expansion
Outstanding Balance 364.27 404.73
Less: Current maturity 57.14 -
Non Current amount 307.13 404.73
- For Power Project
Outstanding Balance - 79.25
Less: Current maturity - 31.33
Non Current amount - 47.93
Particulars
30.09.2012
As at
Notes Forming Part of the Financial Statements
(Rs In Millions)
As at
31.03.2014
ii) Syndicate Bank
- For Power Project
Outstanding Balance - 64.28
Less: Current maturity - 31.43
Non Current amount - 32.85
iii) Axis Bank
- Foreign Currency
Outstanding Balance - 123.47
Less: Current maturity - 97.50
Non Current amount - 25.97
Balance Outstanding 364.27 719.13
Current maturities of long term debt 57.14 207.65
Non Current Amount 307.13 511.48
Unsecured Loans
- From Subsidiaries - 2.51
TOTAL 0.00 2.51
Total Long Term Liabilities 307.13 513.99
Notes :
(i) Term loans from Banks are secured by equitable mortgage of Properties of the company and pari-passu charge over fixed assets , both present and future of the company.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of March 31, 2014 the interest rates 14.00% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-6
Deferred Tax Liabilities ( Net)
Opening DTL Balance 667.69 768.19
DTA Charged to the Statement of Profit & Loss (162.51) (100.51)
Closing DTL Balance 505.18 667.69
NOTE:-7
Long Term Provisions
- Provision for Employee Benefit (Gratuity) 7.03 6.58
TOTAL 7.03 6.58
Particulars
30.09.2012
As at
Notes Forming Part of the Financial Statements
5352 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
(Rs In Millions)
As at
31.03.2014
NOTE:-8
Short Term Borrowings
Working Capital Limits : Secured
Cash Credit/Packing Credit Facilities/Short Term Loans
From Nationalised/Other Banks
i) Punjab National Bank 3927.51 3599.61
ii) Syndicate Bank 2424.94 2399.45
iii) Axis Bank 629.07 1040.87
iv) ICICI Bank 1260.38 1249.71
v) State Bank of India - 48.18
TOTAL 8241.90 8337.82
(Above includes Brrowings in Foreign Currency)
Axis Bank 89.69 308.93
ICICI Bank 222.00 785.93
State Bank of India - 48.18
(i) Working capital facilities (fund based & non fund based limits) are secured by first pari passu charge over stocks, stores, raw
materials, inventories, work in progress, finished goods and also book debts, bills and moneys receivable of the Company by way of
hypothecation.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of
March 31, 2014 the interest rates on cash credit ranges from 12.25 to 13.50% per annum. Packing credit INR from 11.00% to
12.75% per annum Packing credit foreign currency from 4.00% to 4.50% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-9
Trade Payables
Micro & Small Enterprises* - -
Others 3811.45 1540.09
TOTAL 3811.45 1540.09
*There are no Micro, Small and Medium Enterprises, (P.Y. NIL) to whom the Company owes dues, which are outstanding for more than
45 days as at 31th March 2014. This information, required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.
Moreover, the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias
(Commission Agents) who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006
Particulars
30.09.2012
As at
Notes Forming Part of the Financial Statements
(Rs In Millions)
As at
31.03.2014
ii) Syndicate Bank
- For Power Project
Outstanding Balance - 64.28
Less: Current maturity - 31.43
Non Current amount - 32.85
iii) Axis Bank
- Foreign Currency
Outstanding Balance - 123.47
Less: Current maturity - 97.50
Non Current amount - 25.97
Balance Outstanding 364.27 719.13
Current maturities of long term debt 57.14 207.65
Non Current Amount 307.13 511.48
Unsecured Loans
- From Subsidiaries - 2.51
TOTAL 0.00 2.51
Total Long Term Liabilities 307.13 513.99
Notes :
(i) Term loans from Banks are secured by equitable mortgage of Properties of the company and pari-passu charge over fixed assets , both present and future of the company.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of March 31, 2014 the interest rates 14.00% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-6
Deferred Tax Liabilities ( Net)
Opening DTL Balance 667.69 768.19
DTA Charged to the Statement of Profit & Loss (162.51) (100.51)
Closing DTL Balance 505.18 667.69
NOTE:-7
Long Term Provisions
- Provision for Employee Benefit (Gratuity) 7.03 6.58
TOTAL 7.03 6.58
Particulars
30.09.2012
As at
Notes Forming Part of the Financial Statements
5352 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
(Rs In Millions)
As at
31.03.2014
NOTE:-8
Short Term Borrowings
Working Capital Limits : Secured
Cash Credit/Packing Credit Facilities/Short Term Loans
From Nationalised/Other Banks
i) Punjab National Bank 3927.51 3599.61
ii) Syndicate Bank 2424.94 2399.45
iii) Axis Bank 629.07 1040.87
iv) ICICI Bank 1260.38 1249.71
v) State Bank of India - 48.18
TOTAL 8241.90 8337.82
(Above includes Brrowings in Foreign Currency)
Axis Bank 89.69 308.93
ICICI Bank 222.00 785.93
State Bank of India - 48.18
(i) Working capital facilities (fund based & non fund based limits) are secured by first pari passu charge over stocks, stores, raw
materials, inventories, work in progress, finished goods and also book debts, bills and moneys receivable of the Company by way of
hypothecation.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of
March 31, 2014 the interest rates on cash credit ranges from 12.25 to 13.50% per annum. Packing credit INR from 11.00% to
12.75% per annum Packing credit foreign currency from 4.00% to 4.50% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-9
Trade Payables
Micro & Small Enterprises* - -
Others 3811.45 1540.09
TOTAL 3811.45 1540.09
*There are no Micro, Small and Medium Enterprises, (P.Y. NIL) to whom the Company owes dues, which are outstanding for more than
45 days as at 31th March 2014. This information, required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.
Moreover, the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias
(Commission Agents) who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006
Particulars
30.09.2012
As at
Notes Forming Part of the Financial Statements
(Rs In Millions)
As At
31.03.2014
NOTE:-10
Other Current Liabilities
Current Maturities of Long Term debt 57.14 207.65
Sundry Creditors - for Capital Goods 7.33 11.51
Other Liabilities 278.04 497.22
Unclaimed Dividend* 2.24 12.66
Statutory Liabilities 21.56 11.10
TOTAL 366.31 740.14
* Not due for transfer to Investor Education and Protection Fund. Unclaimed Dividends for the years 2005-06 and 2006-07 amounting to Rs.1.31 millions have been transffered to Investor Education and Protection Fund during the period ending 31.03.2014.
Note:-11
Short Term Provisions
- Income Tax 0.00 38.97
- Dividend (including Tax) 0.00 14.69
- Provision for Leave Encashment 0.23 0.00
- Provision for Bonus 1.69 1.56
- Provision for loss on Foreign Exchange Fluctuations* 58.86 -
Total 60.78 55.21
* Provision for unrealised loss on Foreign Currency Forward Contracts outstanding as on 31.03.2014 is Rs.14.72 millions
* Provision for Foreign Exchange loss on PCFC outstanding as on 31.03.2014 is Rs.44.14 millions
Particulars
30.09.2012
As At
5554 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Financial Statements Notes Forming Part of the Financial Statements
NO
TE
:-12
FIX
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AS
SE
TS
(Rs
In M
illio
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To
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ost
As
on
As
on
as
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31.0
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0421.5
322.7
25931.2
12621.8
9668.1
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93283.5
92647.6
22910.5
1
Pre
vio
us Y
ear
5496.6
172.4
536.6
65532.4
02207.7
1434.6
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92621.8
92910.5
13288.9
0
No
tes
:
1.N
one
of th
e fix
ed a
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s ha
ve b
een
reva
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dur
ing
the
peri
od.
2.T
here
has
bee
n no
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ent
loss
on
asse
ts d
urin
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e pe
riod.
DE
SC
RIP
TIO
NG
RO
SS
BL
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EP
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As
at
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sS
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/A
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du
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en
ts01
.10.2
012
the
Wri
tten
31.0
3.2
014
Peri
od
Peri
od
Bac
k
(Rs In Millions)
As At
31.03.2014
NOTE:-10
Other Current Liabilities
Current Maturities of Long Term debt 57.14 207.65
Sundry Creditors - for Capital Goods 7.33 11.51
Other Liabilities 278.04 497.22
Unclaimed Dividend* 2.24 12.66
Statutory Liabilities 21.56 11.10
TOTAL 366.31 740.14
* Not due for transfer to Investor Education and Protection Fund. Unclaimed Dividends for the years 2005-06 and 2006-07 amounting to Rs.1.31 millions have been transffered to Investor Education and Protection Fund during the period ending 31.03.2014.
Note:-11
Short Term Provisions
- Income Tax 0.00 38.97
- Dividend (including Tax) 0.00 14.69
- Provision for Leave Encashment 0.23 0.00
- Provision for Bonus 1.69 1.56
- Provision for loss on Foreign Exchange Fluctuations* 58.86 -
Total 60.78 55.21
* Provision for unrealised loss on Foreign Currency Forward Contracts outstanding as on 31.03.2014 is Rs.14.72 millions
* Provision for Foreign Exchange loss on PCFC outstanding as on 31.03.2014 is Rs.44.14 millions
Particulars
30.09.2012
As At
5554 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Financial Statements Notes Forming Part of the Financial StatementsN
OT
E:-
12
FIX
ED
AS
SE
TS
(Rs
In M
illio
ns)
To
tal C
ost
As
on
As
on
as
on
31.0
3.2
014
30.0
9.2
012
31.0
3.2
014
LAN
D21
7.03
41.6
2-
258.
65-
--
0.00
258.
6521
7.03
BU
ILD
ING
465.
3828
7.90
-75
3.28
88.8
726
.83
-11
5.70
637.
5837
6.51
PLA
NT
AN
D M
AC
HIN
ERY
3130
.43
43.2
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.77
3158
.92
2080
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489.
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2564
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594.
6210
50.3
8
FUR
NIT
UR
E &
FIX
TU
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.83
20.1
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81.9
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MEN
T
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21.4
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101.
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39.1
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121.
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01.6
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L5532.4
0421.5
322.7
25931.2
12621.8
9668.1
96.4
93283.5
92647.6
22910.5
1
Pre
vio
us Y
ear
5496.6
172.4
536.6
65532.4
02207.7
1434.6
820.4
92621.8
92910.5
13288.9
0
No
tes
:
1.N
one
of th
e fix
ed a
sset
s ha
ve b
een
reva
lued
dur
ing
the
peri
od.
2.T
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has
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on
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DE
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01.1
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du
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en
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.10.2
012
the
Wri
tten
31.0
3.2
014
Peri
od
Peri
od
Bac
k
(Rs In Millions)
As At
31.03.2014
NOTE:-13
Capital WIP
Capital WIP 61.20 306.07
Total 61.20 306.07
NOTE:-14
NON CURRENT INVESTMENTS
Trade Investments
In equity Shares of Subsidiary’s Company
Unquoted ,fully Paid Up
1,08,00,000(P.Y 1,08,00,000) of Rs. 10/- each in Punjab Greenfield Resources Ltd 500.00 500.00
1 Ordinary Share(P.Y 1) @ 1 SGD fully paid in Green Energy and Foods Pte Ltd., - -
Singapore
7,50,000(P.Y 7,50,000) Equity Share of Rs. 10/- each in Lakshmi Green Power Ltd 7.50 7.50
Non Trade Investments (at cost)
Equity Shares
In equity Shares Unquoted, Fully Paid Up :
10,00,000(P.Y 10,00,000) Equity Shares of Rs. 10/- each in 100.00 100.00
Nav Bharat International Limited, fully paid
Quoted Investments.
11,360 Equity Shares of Rs. 10/- each in IDBI, fully paid 0.92 0.92
(Market Value as on 31/03/2014 is Rs.7,41,808.00)
Other Investments
Gold 0.11 0.11
Total Non Current Investments 608.53 608.53
NOTE:-15
Long Term Loans and Advances
-Security Deposits 56.71 59.11
-Advances for Capital Goods 9.77 -
Total 66.48 59.11
NOTE:-16
Other Non Current Assets
- In Deposit Accounts
FDs Against Bank Guarantee 11.94 10.26
FDs to Sales tax Dept 0.10 0.10
FDs Against L/C margin 3.40 25.29
Total 15.44 35.66
Particulars
30.09.2012
As At
5756 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Financial Statements Notes Forming Part of the Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-17
Inventories
(As taken, valued and certified by management)
Raw Materials 8179.05 6760.11
Semi Finished / Finished Goods 3621.24 5947.42
Gunny Bags/Packaging/Other Consumables Stores 869.66 628.34
Total 12669.95 13335.87
As on 31.03.2014 there were not any goods in transit
NOTE:-18
Trade Receivables
Debts outstanding for a period exceeding 6 months
from Due Date of Payment
(Good & Unsecured) 135.50 29.11
Other Debts
(Good & Unsecured)
from others 3455.04 507.92
Total 3590.54 537.03
Note : Trade receivables include Rs. 3262.86 millions from companies in which directors are interested and have been considered good by the management. These companies are under litigation with commodity trading exchange and other parties.
NOTE:-19
Cash and Cash Equivalents
Cash in Hand 22.25 13.47
Balance with Scheduled Banks
- In Current Accounts 3.59 13.66
Total 25.84 27.14
NOTE:-20
Short Term Loans and Advances
- Advances recoverable in cash or 254.59 192.01
in kind for value to be received
Total 254.59 192.01
NOTE:-21
Other Current Assets
(Unsecured but considered good)
- Pre-paid Expenses 20.10 4.08
- Advance Income Tax / TDS Receivable 0.45 0.47
- Other Current Assets 257.65 688.77
- Mat Credit Entitlement 348.45 348.45
Total 626.65 1041.77
Particulars
30.09.2012
As at
(Rs In Millions)
As At
31.03.2014
NOTE:-13
Capital WIP
Capital WIP 61.20 306.07
Total 61.20 306.07
NOTE:-14
NON CURRENT INVESTMENTS
Trade Investments
In equity Shares of Subsidiary’s Company
Unquoted ,fully Paid Up
1,08,00,000(P.Y 1,08,00,000) of Rs. 10/- each in Punjab Greenfield Resources Ltd 500.00 500.00
1 Ordinary Share(P.Y 1) @ 1 SGD fully paid in Green Energy and Foods Pte Ltd., - -
Singapore
7,50,000(P.Y 7,50,000) Equity Share of Rs. 10/- each in Lakshmi Green Power Ltd 7.50 7.50
Non Trade Investments (at cost)
Equity Shares
In equity Shares Unquoted, Fully Paid Up :
10,00,000(P.Y 10,00,000) Equity Shares of Rs. 10/- each in 100.00 100.00
Nav Bharat International Limited, fully paid
Quoted Investments.
11,360 Equity Shares of Rs. 10/- each in IDBI, fully paid 0.92 0.92
(Market Value as on 31/03/2014 is Rs.7,41,808.00)
Other Investments
Gold 0.11 0.11
Total Non Current Investments 608.53 608.53
NOTE:-15
Long Term Loans and Advances
-Security Deposits 56.71 59.11
-Advances for Capital Goods 9.77 -
Total 66.48 59.11
NOTE:-16
Other Non Current Assets
- In Deposit Accounts
FDs Against Bank Guarantee 11.94 10.26
FDs to Sales tax Dept 0.10 0.10
FDs Against L/C margin 3.40 25.29
Total 15.44 35.66
Particulars
30.09.2012
As At
5756 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Financial Statements Notes Forming Part of the Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-17
Inventories
(As taken, valued and certified by management)
Raw Materials 8179.05 6760.11
Semi Finished / Finished Goods 3621.24 5947.42
Gunny Bags/Packaging/Other Consumables Stores 869.66 628.34
Total 12669.95 13335.87
As on 31.03.2014 there were not any goods in transit
NOTE:-18
Trade Receivables
Debts outstanding for a period exceeding 6 months
from Due Date of Payment
(Good & Unsecured) 135.50 29.11
Other Debts
(Good & Unsecured)
from others 3455.04 507.92
Total 3590.54 537.03
Note : Trade receivables include Rs. 3262.86 millions from companies in which directors are interested and have been considered good by the management. These companies are under litigation with commodity trading exchange and other parties.
NOTE:-19
Cash and Cash Equivalents
Cash in Hand 22.25 13.47
Balance with Scheduled Banks
- In Current Accounts 3.59 13.66
Total 25.84 27.14
NOTE:-20
Short Term Loans and Advances
- Advances recoverable in cash or 254.59 192.01
in kind for value to be received
Total 254.59 192.01
NOTE:-21
Other Current Assets
(Unsecured but considered good)
- Pre-paid Expenses 20.10 4.08
- Advance Income Tax / TDS Receivable 0.45 0.47
- Other Current Assets 257.65 688.77
- Mat Credit Entitlement 348.45 348.45
Total 626.65 1041.77
Particulars
30.09.2012
As at
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 22
Sale of Products
- Food Grains
Export 1269.76 1320.98
Deemed Export 7147.79 375.59
Domestic 8873.00 17290.55 7575.17
- Traded Goods 715.49 2735.18
- Power 89.40 23.03
- Rice Bran & Oils 384.26 60.55
- Others 12.71 9.90
TOTAL 18492.41 12100.40
NOTE:- 23
Other Operating Income
Transport Income 36.45 0.45
TOTAL 36.45 0.45
NOTE:- 24
OTHER INCOME
Insurance Claim Received 15.38 0.31
Rebate & Discount 4.53 1.95
Dividend Income 0.07 0.06
Interest Received
- on bank FDRs 4.46 6.28
- others 1.71 6.17 0.00
TOTAL 26.15 8.60
NOTE:- 25
COST OF MATERIALS CONSUMED
Food Grains 12568.99 6341.73
Others 111.52 150.64
TOTAL 12680.51 6492.37
PURCHASE OF TRADED GOODS
Food Grains 636.72 2566.33
Palm Oil - 123.88
TOTAL 636.72 2690.22
Particulars For the year ended
on 30.09.2012
5958 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Financial Statements Notes Forming Part of the Financial Statements
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:-25 Contd.
CHANGES IN INVENTORIES OF FINISHED GOODS,WORK IN PROGRESS
Stocks at the beginning of the period
- Semi Finished/Finished Goods (A) 5947.42 6207.68
Less: Stocks at the end of the period
- Semi Finished/Finished Goods (B) 3621.24 5947.42
TOTAL (A-B) 2326.18 260.26
NOTE:- 26
EMPLOYEE BENEFIT EXPENSES :
Salaries & wages 123.80 69.30
Directors’ Remuneration & Prequisites 24.31 17.77
Contribution to Provident & Other funds 3.44 1.58
Staff Welfare Expenses 3.51 4.02
Recruitment & Training Expenses 0.02 0.04
Total 155.08 92.72
NOTE:- 27
FINANCE COST :
Bank Charges/Processing Charges 18.70 60.19
Interest charged by Banks
- on Term Loans 100.56 119.87
- on Working Capital Loans 843.16 1103.72
Interest - Others 1.38 62.12
TOTAL 963.80 1345.90
Particulars
on 30.09.2012
For the year ended
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 22
Sale of Products
- Food Grains
Export 1269.76 1320.98
Deemed Export 7147.79 375.59
Domestic 8873.00 17290.55 7575.17
- Traded Goods 715.49 2735.18
- Power 89.40 23.03
- Rice Bran & Oils 384.26 60.55
- Others 12.71 9.90
TOTAL 18492.41 12100.40
NOTE:- 23
Other Operating Income
Transport Income 36.45 0.45
TOTAL 36.45 0.45
NOTE:- 24
OTHER INCOME
Insurance Claim Received 15.38 0.31
Rebate & Discount 4.53 1.95
Dividend Income 0.07 0.06
Interest Received
- on bank FDRs 4.46 6.28
- others 1.71 6.17 0.00
TOTAL 26.15 8.60
NOTE:- 25
COST OF MATERIALS CONSUMED
Food Grains 12568.99 6341.73
Others 111.52 150.64
TOTAL 12680.51 6492.37
PURCHASE OF TRADED GOODS
Food Grains 636.72 2566.33
Palm Oil - 123.88
TOTAL 636.72 2690.22
Particulars For the year ended
on 30.09.2012
5958 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Financial Statements Notes Forming Part of the Financial Statements
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:-25 Contd.
CHANGES IN INVENTORIES OF FINISHED GOODS,WORK IN PROGRESS
Stocks at the beginning of the period
- Semi Finished/Finished Goods (A) 5947.42 6207.68
Less: Stocks at the end of the period
- Semi Finished/Finished Goods (B) 3621.24 5947.42
TOTAL (A-B) 2326.18 260.26
NOTE:- 26
EMPLOYEE BENEFIT EXPENSES :
Salaries & wages 123.80 69.30
Directors’ Remuneration & Prequisites 24.31 17.77
Contribution to Provident & Other funds 3.44 1.58
Staff Welfare Expenses 3.51 4.02
Recruitment & Training Expenses 0.02 0.04
Total 155.08 92.72
NOTE:- 27
FINANCE COST :
Bank Charges/Processing Charges 18.70 60.19
Interest charged by Banks
- on Term Loans 100.56 119.87
- on Working Capital Loans 843.16 1103.72
Interest - Others 1.38 62.12
TOTAL 963.80 1345.90
Particulars
on 30.09.2012
For the year ended
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 28
Other Expenses
Power & Fuel 121.75 79.26
Labour charges 24.56 28.22
Rent office 12.83 1.17
Other Consumables 11.50 6.73
Repairs & Maintainance
- Building 1.03 0.36
- Machinary 15.01 14.34
- Others 2.91 2.54
Insurance 25.46 13.56
Export Expenses 64.69 112.29
Foreign Exchange Fluctuations :
- on forward contracts & PCFC 632.84 373.94
- on realisations 98.61 14.64
Auditors Remuneration :
- Audit Fee 1.62 0.92
- Tax Audit Fee 0.20 0.19
- Reimbursement of expenses 0.06 0.00
Brokerage On Sales 9.05 25.40
Advertisment Expenses 6.04 1.91
Business Promotion Expenses 8.29 4.66
Freight outward Expenses 4.82 8.24
Cash Discount 169.58 12.41
Postage, Telephone & Internet expenses 2.16 2.69
Loss On sale of Fixed asset 0.22 4.87
Legal and Professional Expenses 21.59 7.61
Charity And Donation 2.01 1.75
Fee & Subscription 3.76 1.78
Watch & Ward Expenses 0.53 4.18
Vehicle Expenses 35.23 12.15
Office Expenses 2.05 4.51
Travelling & Conveyance 9.13 3.03
Other Expenses 62.84 76.80
Total 1350.37 820.17
Particulars
on 30.09.2012
For the year ended
Notes Forming Part of the Financial Statements
6160 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
OTHER NOTES TO ACCOUNTS
29. In the opinion of the company’s management, the current assets, loans and advances are an approximation of the value stated, if
realized in the ordinary course of business. The provision for all the known liabilities has been made and is adequate and not in
excess of the amount considered reasonably necessary.
30. The balance outstanding as the debit and credit to the parties / persons / agencies are subject to confirmation by the parties /
person/ agencies concerned.
31. Figures of previous year have been regrouped and rearranged wherever necessary.
32. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.91.20 millions (Previous year – Rs.600.10 million). Appeal is pending
before ITAT and Punjab & Haryana High Court and the Management is expecting a favourable decision.
b. Claims amounting to Rs.804.21 millions (Previous year – Rs.303.53 millions) by various creditors, suppliers, agents,
various state procurement agencies etc. are pending before various Courts and quasi-judicial authorities.
33. Managerial Remuneration:
Current Period(Rs. in million)
Whole time Directors
Remuneration 24.15 17.70
Directors’ sitting fee 0.16 0.07
Grand Total 24.31 17.77
34. Forward cover contracts outstanding as at March 2014 for USD 18 Millions. The company has taken these forward covers for
export transactions.
35. Earning per share is calculated by dividing the profit after provision for income tax by the weighted average number of equity
shares outstanding during the year.
The calculation of Earnings per share (EPS) as disclosed in the Profit and Loss Account has been made in accordance with
Accounting Standard (AS)-20 on “Earning per Share” issued by the Institute of Chartered Accountants of India.
Current Period
Profit/(Loss) after Tax (Rs. in millions) (34.25) 107.66
Weighted Average Number of Equity Shares outstanding during the Period 66051095 63190000
Basic Earnings per share (in Rs.) (0.52) 1.70
Weighted Average Number of Equity Shares outstanding during the Period 69330877 63190000
Diluted Earnings per share (in Rs.) (0.49) 1.70
Nominal Value per Share (in Rs.) 2.00 2.00
36. Deffered Tax Liability mentioned in note no.6 is the net of deffered tax asset and deffered tax liability. As per the books of accounts
opening balance of DTL Rs.667.69 Millions, during the period due to timing difference on account of depreciation and provisions
Rs.162.51 Millions provided as deffered tax asset. Thus the net DTL at the end of period on 31.03.2014 remains Rs.505.18
Millions.
PreviousY ear(Rs. in million)
PreviousY ear
Other Notes to Accounts
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 28
Other Expenses
Power & Fuel 121.75 79.26
Labour charges 24.56 28.22
Rent office 12.83 1.17
Other Consumables 11.50 6.73
Repairs & Maintainance
- Building 1.03 0.36
- Machinary 15.01 14.34
- Others 2.91 2.54
Insurance 25.46 13.56
Export Expenses 64.69 112.29
Foreign Exchange Fluctuations :
- on forward contracts & PCFC 632.84 373.94
- on realisations 98.61 14.64
Auditors Remuneration :
- Audit Fee 1.62 0.92
- Tax Audit Fee 0.20 0.19
- Reimbursement of expenses 0.06 0.00
Brokerage On Sales 9.05 25.40
Advertisment Expenses 6.04 1.91
Business Promotion Expenses 8.29 4.66
Freight outward Expenses 4.82 8.24
Cash Discount 169.58 12.41
Postage, Telephone & Internet expenses 2.16 2.69
Loss On sale of Fixed asset 0.22 4.87
Legal and Professional Expenses 21.59 7.61
Charity And Donation 2.01 1.75
Fee & Subscription 3.76 1.78
Watch & Ward Expenses 0.53 4.18
Vehicle Expenses 35.23 12.15
Office Expenses 2.05 4.51
Travelling & Conveyance 9.13 3.03
Other Expenses 62.84 76.80
Total 1350.37 820.17
Particulars
on 30.09.2012
For the year ended
Notes Forming Part of the Financial Statements
6160 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
OTHER NOTES TO ACCOUNTS
29. In the opinion of the company’s management, the current assets, loans and advances are an approximation of the value stated, if
realized in the ordinary course of business. The provision for all the known liabilities has been made and is adequate and not in
excess of the amount considered reasonably necessary.
30. The balance outstanding as the debit and credit to the parties / persons / agencies are subject to confirmation by the parties /
person/ agencies concerned.
31. Figures of previous year have been regrouped and rearranged wherever necessary.
32. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.91.20 millions (Previous year – Rs.600.10 million). Appeal is pending
before ITAT and Punjab & Haryana High Court and the Management is expecting a favourable decision.
b. Claims amounting to Rs.804.21 millions (Previous year – Rs.303.53 millions) by various creditors, suppliers, agents,
various state procurement agencies etc. are pending before various Courts and quasi-judicial authorities.
33. Managerial Remuneration:
Current Period(Rs. in million)
Whole time Directors
Remuneration 24.15 17.70
Directors’ sitting fee 0.16 0.07
Grand Total 24.31 17.77
34. Forward cover contracts outstanding as at March 2014 for USD 18 Millions. The company has taken these forward covers for
export transactions.
35. Earning per share is calculated by dividing the profit after provision for income tax by the weighted average number of equity
shares outstanding during the year.
The calculation of Earnings per share (EPS) as disclosed in the Profit and Loss Account has been made in accordance with
Accounting Standard (AS)-20 on “Earning per Share” issued by the Institute of Chartered Accountants of India.
Current Period
Profit/(Loss) after Tax (Rs. in millions) (34.25) 107.66
Weighted Average Number of Equity Shares outstanding during the Period 66051095 63190000
Basic Earnings per share (in Rs.) (0.52) 1.70
Weighted Average Number of Equity Shares outstanding during the Period 69330877 63190000
Diluted Earnings per share (in Rs.) (0.49) 1.70
Nominal Value per Share (in Rs.) 2.00 2.00
36. Deffered Tax Liability mentioned in note no.6 is the net of deffered tax asset and deffered tax liability. As per the books of accounts
opening balance of DTL Rs.667.69 Millions, during the period due to timing difference on account of depreciation and provisions
Rs.162.51 Millions provided as deffered tax asset. Thus the net DTL at the end of period on 31.03.2014 remains Rs.505.18
Millions.
PreviousY ear(Rs. in million)
PreviousY ear
Other Notes to Accounts
37. The figure of ‘Sales’ appearing in the Statement of profit & loss is the consolidated figure of sales effected through different offices
of the company and does not denote sales effected through Khamanon office alone.
38. Future minimum lease payments under non-cancellable operating leases are as under:-
(Rs. In Millions.)
Period endingas at
st31 March 2014
Rent Payable for upto 1 Year 8.43 1.45
Rent Payable for upto 1 to 3 years 3.56 2.61
Rent Payable Above 3 Years 3.19 4.62
Note:-
1. Transaction is considered from the effective date of rent agreement.
2. On expiration of the above stated lease agreements, the same can be renewed on the basis of mutual consent of the
lessor and lessee.
3. The Company’s significant leasing arrangements are in respect of storage of material and the arrangements range
between 6 months and 1 year generally and are usually renewable by mutual consent of lessor and lessee.
39. The information given below is in respect of the transactions entered into by the company during the period with the related
parties as per the requirement of Accounting Standard 18.
A. Names of related parties and description of relationship:
i) Particulars of Subsidiaries/Associate Parties:
Name of Related Party Nature of Relationship
?Ganeshay Overseas Industries Limited Promoter Group Company
?LOIL Health Foods Limited Promoter Group Company
?LOIL Overseas Foods Limited Promoter Group Company
?LOIL Continental Foods Limited Promoter Group Company
?Punjab Greenfield Resources Limited Subsidiary Company
?Lakshmi Green Power Ltd Subsidiary Company
?Green Energy and Foods Pte. Ltd. Singapore Subsidiary Company
?BVM Logistics Pvt. Ltd. Associate Company
?Victor Foods India Ltd. Associate Company
?LOIL International Foods Limited Associate Company
ii) Key Managerial Personnel:
Name of Related Party Nature of Relationship
?Mr. Balbir Singh Uppal Chairman Cum Managing Director
?Mr. Janak Raj Singh Joint Managing Director
?Mr. I. S. Gumber Executive Director
Lease Agreement Period Lease Rent
Particulars Year endingas at
30th Sep 2012
Other Notes to Accounts
6362 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
B. Transactions during the period and balance outstanding at the end in respect of transactions entered during the period with the
related parties.
S. No Nature of Transactions Subsidiaries/Associates Personnel
Amount Amount Amount
(Rs. Million) (Rs. Million) (Rs. Million)
i. Sale 7549.44 7549.44
ii. Purchase 474.65 474.65
iii. Expenses 18.08 8.23 26.31
iv. Salary - 24.15 24.15
v. Closing Balance 3138.26 (Debit) 24.53 (Credit) 3113.72 (Debit)
40. Land measuring 49 Kanal & 5 Marla situated at Village Khamanon, Tehsil & District Fatehgarh Sahib, Punjab has been leased by the
company from S.Janak Raj Singh Uppal, the Joint Managing Director of the company for the purpose of setting up its power plant
thereon.
41. As per Accounting Standard (AS)-6 “Depreciation Accounting” issued by the Institute of Chartered Accountants of India, the
company has adjusted depreciation amount of Rs.29.06 million on revalued assets with the revaluation reserve account.
42. The information given below is about the segment reporting as per AS-17 issued by the Institute of Chartered Accountants of
India.
01.10.2012 to 31.03.2014
AGRI ENERGY TOTAL
A. PRIMARY SEGMENT
1 SEGMENT REVENUE
Sales: 19308.49 697.47 20005.96 15443.88 23.02 15466.90
Less: Inter segment revenue (937.17) -
Revenue net of Inter segment 19068.79 15466.90
2 SEGMENT RESULT 1126.18 310.50 1436.68 1738.86 1.56 1740.42
Less: Other unallocable Expenditure netof unallocable Income 641.63 399.54
Finance Costs 964.17 1346.03
Loss before Tax (168.59) (4.49)
Provision for Tax 0.32 11.83
Provision for Fringe Benefit Tax - -
Deferred Tax (162.46) (100.16)
Profit after Tax (6.45) 95.67
3 SEGMENT CAPITAL EMPLOYED 4392.09 1539.11 5931.20 4,125.00 1529.76 5654.76
B. SECONDARY SEGMENT(GEOGRAPHICAL)
India 10561.84 89.40 10651.24 13747.31 23.02 13770.33
Deemed Export 7147.79 - 7147.79 375.59 - 375.59
Rest of World 1269.76 - 1269.76 1320.98 - 1320.98
Key Management Total
PARTICULARS 2011-12
CONSOLIDATED AGRI ENERGY TOTAL
Other Notes to Accounts
37. The figure of ‘Sales’ appearing in the Statement of profit & loss is the consolidated figure of sales effected through different offices
of the company and does not denote sales effected through Khamanon office alone.
38. Future minimum lease payments under non-cancellable operating leases are as under:-
(Rs. In Millions.)
Period endingas at
st31 March 2014
Rent Payable for upto 1 Year 8.43 1.45
Rent Payable for upto 1 to 3 years 3.56 2.61
Rent Payable Above 3 Years 3.19 4.62
Note:-
1. Transaction is considered from the effective date of rent agreement.
2. On expiration of the above stated lease agreements, the same can be renewed on the basis of mutual consent of the
lessor and lessee.
3. The Company’s significant leasing arrangements are in respect of storage of material and the arrangements range
between 6 months and 1 year generally and are usually renewable by mutual consent of lessor and lessee.
39. The information given below is in respect of the transactions entered into by the company during the period with the related
parties as per the requirement of Accounting Standard 18.
A. Names of related parties and description of relationship:
i) Particulars of Subsidiaries/Associate Parties:
Name of Related Party Nature of Relationship
?Ganeshay Overseas Industries Limited Promoter Group Company
?LOIL Health Foods Limited Promoter Group Company
?LOIL Overseas Foods Limited Promoter Group Company
?LOIL Continental Foods Limited Promoter Group Company
?Punjab Greenfield Resources Limited Subsidiary Company
?Lakshmi Green Power Ltd Subsidiary Company
?Green Energy and Foods Pte. Ltd. Singapore Subsidiary Company
?BVM Logistics Pvt. Ltd. Associate Company
?Victor Foods India Ltd. Associate Company
?LOIL International Foods Limited Associate Company
ii) Key Managerial Personnel:
Name of Related Party Nature of Relationship
?Mr. Balbir Singh Uppal Chairman Cum Managing Director
?Mr. Janak Raj Singh Joint Managing Director
?Mr. I. S. Gumber Executive Director
Lease Agreement Period Lease Rent
Particulars Year endingas at
30th Sep 2012
Other Notes to Accounts
6362 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
B. Transactions during the period and balance outstanding at the end in respect of transactions entered during the period with the
related parties.
S. No Nature of Transactions Subsidiaries/Associates Personnel
Amount Amount Amount
(Rs. Million) (Rs. Million) (Rs. Million)
i. Sale 7549.44 7549.44
ii. Purchase 474.65 474.65
iii. Expenses 18.08 8.23 26.31
iv. Salary - 24.15 24.15
v. Closing Balance 3138.26 (Debit) 24.53 (Credit) 3113.72 (Debit)
40. Land measuring 49 Kanal & 5 Marla situated at Village Khamanon, Tehsil & District Fatehgarh Sahib, Punjab has been leased by the
company from S.Janak Raj Singh Uppal, the Joint Managing Director of the company for the purpose of setting up its power plant
thereon.
41. As per Accounting Standard (AS)-6 “Depreciation Accounting” issued by the Institute of Chartered Accountants of India, the
company has adjusted depreciation amount of Rs.29.06 million on revalued assets with the revaluation reserve account.
42. The information given below is about the segment reporting as per AS-17 issued by the Institute of Chartered Accountants of
India.
01.10.2012 to 31.03.2014
AGRI ENERGY TOTAL
A. PRIMARY SEGMENT
1 SEGMENT REVENUE
Sales: 19308.49 697.47 20005.96 15443.88 23.02 15466.90
Less: Inter segment revenue (937.17) -
Revenue net of Inter segment 19068.79 15466.90
2 SEGMENT RESULT 1126.18 310.50 1436.68 1738.86 1.56 1740.42
Less: Other unallocable Expenditure netof unallocable Income 641.63 399.54
Finance Costs 964.17 1346.03
Loss before Tax (168.59) (4.49)
Provision for Tax 0.32 11.83
Provision for Fringe Benefit Tax - -
Deferred Tax (162.46) (100.16)
Profit after Tax (6.45) 95.67
3 SEGMENT CAPITAL EMPLOYED 4392.09 1539.11 5931.20 4,125.00 1529.76 5654.76
B. SECONDARY SEGMENT(GEOGRAPHICAL)
India 10561.84 89.40 10651.24 13747.31 23.02 13770.33
Deemed Export 7147.79 - 7147.79 375.59 - 375.59
Rest of World 1269.76 - 1269.76 1320.98 - 1320.98
Key Management Total
PARTICULARS 2011-12
CONSOLIDATED AGRI ENERGY TOTAL
Other Notes to Accounts
43. As per the Accounting Standard (AS)-4 “Events Occurring after the Balance Sheet Date”. Events occurring after the balance sheet
date under review, which do not affect the figures as stated in the financial statements normally do not require any disclosure, in
the financial statements although they may be of such significance that may require a disclosure in the report of the approving
authority to enable the users of the financial statements to make proper evaluations and decisions. Since the board of directors of
the company is the approving authority for the financial statements, accordingly, if any such disclosure has been made by the
management of company in the report of the board of directors of company and hence no disclosure has been made herein.
44. Information Regarding Foreign Currency Transactions
(Rs. In Millions)
01.10.2012 to
31.03.2014
1) CIF value of Imports made during the period in respect of
Raw Material - -
Components and Spare Parts Purchased 7.57 5.36
Capital Goods Purchased - -
Crude Palm Oil - 125.11
2) Earnings in foreign exchange 1132.86 1320.99
3) F.O.B. value of exports 1157.95 1292.56
4) Expenditure in foreign currency
Foreign Travel & Other 4.66 2.04
Sr.No. Description 2011-12
6564 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Other Notes to Accounts
(Rs. Millions)
1. Name of Subsidiary Punjab Greenfield Lakshmi Green Green Energy andResources Ltd. Power Ltd Foods Pte. Ltd.
Singapore
2. Financial year of the Subsidiary ended on 31.03.2014 31.03.2014 30.09.2013
3. Shares of the Subsidiary held by the Company on
the above date:
(I) Number of Shares 10799994* 750000 1.00
(ii) Extent of Holding 100% 75% 100%
* 6 Shares are held by the nominees of the Company
but the Company is the beneficial owner
4. Net aggregate amount of profits/(losses) of the
Subsidiary for the above financial year so far as they
concern members of the Company
(I) dealt with in the accounts of the Company 29.52 (0.06) (0.69)
for the period ended 31-03-2014
(ii) Not dealt with in the accounts of the
Company for the period ended 31-03-2014
5. Net aggregate amount of profits/(losses) for previous
years of the Subsidiary, since it became a subsidiary
so far as they concern members of the Company
(I) dealt with in the accounts of the Company for (12.67) (0.74) (0.03)
the period ended 30-09-2012
(ii) Not dealt with in the accounts of the Company
for the year ended 30-09-2012
6. Change in the interest of the Company in the NIL NIL NIL
subsidiary between the end of the financial year of
the subsidiary and of the Company
7. Material changes at the end of the financial year of NIL NIL NIL
the subsidiary and end of the financial year of the
Company in respect of the subsidiary’s fixed assets,
investments, lending and borrowing for the purpose
other than meeting current liabilities.
STATEMENT PURSUANT TO SECTION 212 ofthe Companies Act, 1956, related to Subsidiary Companies
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
43. As per the Accounting Standard (AS)-4 “Events Occurring after the Balance Sheet Date”. Events occurring after the balance sheet
date under review, which do not affect the figures as stated in the financial statements normally do not require any disclosure, in
the financial statements although they may be of such significance that may require a disclosure in the report of the approving
authority to enable the users of the financial statements to make proper evaluations and decisions. Since the board of directors of
the company is the approving authority for the financial statements, accordingly, if any such disclosure has been made by the
management of company in the report of the board of directors of company and hence no disclosure has been made herein.
44. Information Regarding Foreign Currency Transactions
(Rs. In Millions)
01.10.2012 to
31.03.2014
1) CIF value of Imports made during the period in respect of
Raw Material - -
Components and Spare Parts Purchased 7.57 5.36
Capital Goods Purchased - -
Crude Palm Oil - 125.11
2) Earnings in foreign exchange 1132.86 1320.99
3) F.O.B. value of exports 1157.95 1292.56
4) Expenditure in foreign currency
Foreign Travel & Other 4.66 2.04
Sr.No. Description 2011-12
6564 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Other Notes to Accounts
(Rs. Millions)
1. Name of Subsidiary Punjab Greenfield Lakshmi Green Green Energy andResources Ltd. Power Ltd Foods Pte. Ltd.
Singapore
2. Financial year of the Subsidiary ended on 31.03.2014 31.03.2014 30.09.2013
3. Shares of the Subsidiary held by the Company on
the above date:
(I) Number of Shares 10799994* 750000 1.00
(ii) Extent of Holding 100% 75% 100%
* 6 Shares are held by the nominees of the Company
but the Company is the beneficial owner
4. Net aggregate amount of profits/(losses) of the
Subsidiary for the above financial year so far as they
concern members of the Company
(I) dealt with in the accounts of the Company 29.52 (0.06) (0.69)
for the period ended 31-03-2014
(ii) Not dealt with in the accounts of the
Company for the period ended 31-03-2014
5. Net aggregate amount of profits/(losses) for previous
years of the Subsidiary, since it became a subsidiary
so far as they concern members of the Company
(I) dealt with in the accounts of the Company for (12.67) (0.74) (0.03)
the period ended 30-09-2012
(ii) Not dealt with in the accounts of the Company
for the year ended 30-09-2012
6. Change in the interest of the Company in the NIL NIL NIL
subsidiary between the end of the financial year of
the subsidiary and of the Company
7. Material changes at the end of the financial year of NIL NIL NIL
the subsidiary and end of the financial year of the
Company in respect of the subsidiary’s fixed assets,
investments, lending and borrowing for the purpose
other than meeting current liabilities.
STATEMENT PURSUANT TO SECTION 212 ofthe Companies Act, 1956, related to Subsidiary Companies
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
Consolidated Financial Stetements
CONSOLIDATED FINANCIALSTATEMENTS
6766 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
AUDITOR’S REPORT ON CONSOLIDATED Financial Statements
To the Board of Directors of,
M/s LAKSHMI ENERGY AND FOODS LIMITED,
On the consolidated financial statements of Lakshmi Energy and Foods Limited and its subsidiaries Punjab Greenfield Resources Limited, Lakshmi Green Power Limited and Green Energy and Foods Pte Limited, Singapore.
1. Report on the Consolidated Financial Statements:
We have audited the accompanying consolidated financial statements of Lakshmi Energy and Foods Limited (“the Company”), its subsidiaries Punjab Greenfield Resources Limited,(PGRL) Lakshmi Green Power Limited (LGPL) and Green Energy and Foods Pte Limited, Singapore (GEFP) (collectively referred to as ‘the Group’) which comprises the Consolidated Balance Sheet as at 31 March 2014, and the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the eighteen months ended 31 March 2014 (“current period”), and a summary of significant accounting policies and other explanatory information.
2. Managements’ Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Company in accordance with the accounting policies generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and presentation of the consolidated 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 Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion, and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements as noted in point no. 5 below, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group Company as at March 31, 2014;
b) in the case of the Consolidated Statement of Profit and Loss, of the Loss for the eighteen months ended on that date; and
c) in the case of Consolidated Cash flow statement, of the cash flows for the eighteen months ended on that date.
5. Other Matter
We did not audit the financial statements and other financial information of Green Energy and Foods Pte Limited, Singapore (GEFP) and our opinion on the same is based on the audit report furnished by other auditor.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN No. 021622N
Consolidated Financial Stetements
CONSOLIDATED FINANCIALSTATEMENTS
6766 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
AUDITOR’S REPORT ON CONSOLIDATED Financial Statements
To the Board of Directors of,
M/s LAKSHMI ENERGY AND FOODS LIMITED,
On the consolidated financial statements of Lakshmi Energy and Foods Limited and its subsidiaries Punjab Greenfield Resources Limited, Lakshmi Green Power Limited and Green Energy and Foods Pte Limited, Singapore.
1. Report on the Consolidated Financial Statements:
We have audited the accompanying consolidated financial statements of Lakshmi Energy and Foods Limited (“the Company”), its subsidiaries Punjab Greenfield Resources Limited,(PGRL) Lakshmi Green Power Limited (LGPL) and Green Energy and Foods Pte Limited, Singapore (GEFP) (collectively referred to as ‘the Group’) which comprises the Consolidated Balance Sheet as at 31 March 2014, and the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the eighteen months ended 31 March 2014 (“current period”), and a summary of significant accounting policies and other explanatory information.
2. Managements’ Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Company in accordance with the accounting policies generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and presentation of the consolidated 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 Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion, and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements as noted in point no. 5 below, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group Company as at March 31, 2014;
b) in the case of the Consolidated Statement of Profit and Loss, of the Loss for the eighteen months ended on that date; and
c) in the case of Consolidated Cash flow statement, of the cash flows for the eighteen months ended on that date.
5. Other Matter
We did not audit the financial statements and other financial information of Green Energy and Foods Pte Limited, Singapore (GEFP) and our opinion on the same is based on the audit report furnished by other auditor.
For SMPS & Co.
Chartered Accountants
Saurabh Mishra
(Partner)
Place: Chandigarh Membership No. 402499
Date: 30.05.2014 FRN No. 021622N
CONSOLIDATED BALANCE SHEET as at 31.03.2014
Company Information 1 As per our report of even dateSignificant Accounting Policies 2 For SMPS & Co.Other Notes Forming Part 29-34 Chartered Accountantsof the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
(Rs in Millions)
31.03.2014
EQUITY & LIABILITIES
1 Shareholders’ Funds
a) Share Capital 3 132.98 126.38
b) Reserves and Surplus 4 7506.38 7429.33
c) Money received against convertable warrants 19.14 0.00
Sub-Total - Shareholder’s funds 7658.50 7555.71
Minority Interest 2.51 2.49
2 Non-Current Liabilities
a) Long-Term Borrowings 5 307.13 513.99
b) Deferred Tax Liabilities (Net) 6 506.19 668.65
c) Long-Term Provisions 7 7.03 6.58
Sub-Total - Non-Current Liabilities 820.35 1189.22
3 Current Liabilities
a) Short-Term Borrowings 8 8241.90 8337.82
b) Trade Payables 9 3816.57 2155.18
c) Other Current Liabilities 10 1161.47 1550.41
d) Short-Term Provisions 11 61.10 54.57
Sub-Total - Current Liabilities 13221.03 12097.99
TOTAL - EQUITY AND LIABILITIES 21762.39 20845.40
ASSETS
1 Non-Current Assets
a) Fixed Assets
Tangible Asset 12 2692.24 2956.14
b) Capital WIP 13 61.20 306.07
c) Non-Current Investments 14 149.52 149.52
d) Long-term Loans & Advances 15 666.08 604.43
e) Other Non-Current Assets 16 99.01 108.68
Sub-Total - Non-Current Assets 3668.05 4124.84
Goodwill (As per AS-21) 392.00 392.03
2 Current Assets
a) Inventories 17 13034.51 13487.92
b) Trade Receivables 18 3707.67 1241.56
c) Cash & Cash Equivalents 19 62.25 33.28
d) Short-Term Loans & Advances 20 261.92 491.76
e) Other Current Assets 21 635.99 1074.01
Sub-Total - Current Assets 17702.34 16328.53
TOTAL- ASSETS 21762.39 20845.40
Particulars Notes
30.09.2012
As at As at
6968 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
CONSOLIDATED STATEMENT OF PROFIT AND LOSS for the period 01.10.2012 to 31.03.2014
(Rs in Millions)
ended 31.03.2014
INCOME
Revenue from operations:
(a) Sale of Products 22 19068.79 15466.90
(b) Other Operating revenues 23 36.45 0.45
Other Income 24 38.59 17.53
Total Revenue (A) 19143.83 15484.88
EXPENSES
Cost of materials consumed 25 12680.51 6492.37
Purchase of Stock-in-Trade 25 1327.48 5951.70
Changes in inventories of finished goods, 25 2130.50 333.01
- work-in-progress and Stock-in-Trade
Employee benefit expense 26 164.79 108.87
Financel costs 27 964.17 1346.03
Depreciation and amortization expense 12 641.62 399.54
Other expenses 28 1403.35 857.84
Total Expenses (B) 19312.42 15489.37
(Loss) / Profit before exceptional (A-B) (168.59) (4.49)
and extraordinary items and tax
Less:Exceptional Items - -
(Loss) / Profit before extraordinary items and tax (168.59) (4.49)
Less:Extraordinary Items - 0.00
(Loss) / Profit before tax (168.59) (4.49)
Less:Tax expense:
(1) Current tax 0.32 -
(2) Deferred tax 6 (162.46) (100.16)
(Loss) / Profit for the period (6.45) 95.67
EARNING PER EQUITY SHARE (Face Value of Rs. 2/- each)
- Basic (0.10) 1.51
- Diluted (0.09) 1.51
Particulars Notes
on30.09.2012
For the18 Months For the year ended
Company Information 1 As per our report of even dateSignificant Accounting Policies 2 For SMPS & Co.Other Notes Forming Part 29-34 Chartered Accountantsof the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
CONSOLIDATED BALANCE SHEET as at 31.03.2014
Company Information 1 As per our report of even dateSignificant Accounting Policies 2 For SMPS & Co.Other Notes Forming Part 29-34 Chartered Accountantsof the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
(Rs in Millions)
31.03.2014
EQUITY & LIABILITIES
1 Shareholders’ Funds
a) Share Capital 3 132.98 126.38
b) Reserves and Surplus 4 7506.38 7429.33
c) Money received against convertable warrants 19.14 0.00
Sub-Total - Shareholder’s funds 7658.50 7555.71
Minority Interest 2.51 2.49
2 Non-Current Liabilities
a) Long-Term Borrowings 5 307.13 513.99
b) Deferred Tax Liabilities (Net) 6 506.19 668.65
c) Long-Term Provisions 7 7.03 6.58
Sub-Total - Non-Current Liabilities 820.35 1189.22
3 Current Liabilities
a) Short-Term Borrowings 8 8241.90 8337.82
b) Trade Payables 9 3816.57 2155.18
c) Other Current Liabilities 10 1161.47 1550.41
d) Short-Term Provisions 11 61.10 54.57
Sub-Total - Current Liabilities 13221.03 12097.99
TOTAL - EQUITY AND LIABILITIES 21762.39 20845.40
ASSETS
1 Non-Current Assets
a) Fixed Assets
Tangible Asset 12 2692.24 2956.14
b) Capital WIP 13 61.20 306.07
c) Non-Current Investments 14 149.52 149.52
d) Long-term Loans & Advances 15 666.08 604.43
e) Other Non-Current Assets 16 99.01 108.68
Sub-Total - Non-Current Assets 3668.05 4124.84
Goodwill (As per AS-21) 392.00 392.03
2 Current Assets
a) Inventories 17 13034.51 13487.92
b) Trade Receivables 18 3707.67 1241.56
c) Cash & Cash Equivalents 19 62.25 33.28
d) Short-Term Loans & Advances 20 261.92 491.76
e) Other Current Assets 21 635.99 1074.01
Sub-Total - Current Assets 17702.34 16328.53
TOTAL- ASSETS 21762.39 20845.40
Particulars Notes
30.09.2012
As at As at
6968 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
CONSOLIDATED STATEMENT OF PROFIT AND LOSS for the period 01.10.2012 to 31.03.2014
(Rs in Millions)
ended 31.03.2014
INCOME
Revenue from operations:
(a) Sale of Products 22 19068.79 15466.90
(b) Other Operating revenues 23 36.45 0.45
Other Income 24 38.59 17.53
Total Revenue (A) 19143.83 15484.88
EXPENSES
Cost of materials consumed 25 12680.51 6492.37
Purchase of Stock-in-Trade 25 1327.48 5951.70
Changes in inventories of finished goods, 25 2130.50 333.01
- work-in-progress and Stock-in-Trade
Employee benefit expense 26 164.79 108.87
Financel costs 27 964.17 1346.03
Depreciation and amortization expense 12 641.62 399.54
Other expenses 28 1403.35 857.84
Total Expenses (B) 19312.42 15489.37
(Loss) / Profit before exceptional (A-B) (168.59) (4.49)
and extraordinary items and tax
Less:Exceptional Items - -
(Loss) / Profit before extraordinary items and tax (168.59) (4.49)
Less:Extraordinary Items - 0.00
(Loss) / Profit before tax (168.59) (4.49)
Less:Tax expense:
(1) Current tax 0.32 -
(2) Deferred tax 6 (162.46) (100.16)
(Loss) / Profit for the period (6.45) 95.67
EARNING PER EQUITY SHARE (Face Value of Rs. 2/- each)
- Basic (0.10) 1.51
- Diluted (0.09) 1.51
Particulars Notes
on30.09.2012
For the18 Months For the year ended
Company Information 1 As per our report of even dateSignificant Accounting Policies 2 For SMPS & Co.Other Notes Forming Part 29-34 Chartered Accountantsof the Financial Statements
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
CONSOLIDATED CASH FLOW STATEMENT for the period ended 31.03.2014
(Rs in Millions)
For the18 Months
ended 31.03.2014
A. Cash Flow from Operating Activities
Net Profit before Tax and Extra Ordinary Items (167.99) (4.49)
ADJUSTMENT FOR: -
Interest Paid 964.16 1346.03
Depreciation 641.63 399.54
Interest Income (17.55) (14.51)
Dividend Income (0.07) (0.06)
Interim Dividend Paid 22.18 -
Provision for Gratuity 1.46 0.00
Provision for Leave Encashment 0.23 0.00
Provision for Bonus 1.69 1.56
Provision for loss on Foreign Exchange Fluctuations 58.86 0.00
Loss on Sale of Fixed Assets 0.22 4.87
Operating Profit before Working Capital Changes: 1504.82 1732.95
ADJUSTMENT FOR:
Trade Receivables (2477.32) 891.93
Short term advances (26.35) 180.43
Other current assets 433.00 (490.64)
Inventories 466.55 (1917.99)
Trade Payables 1909.37 808.43
Other Liabilities (1138.57) 474.13
Cash generated from Operating Activities 671.50 1679.24
Income Tax Paid - -7.50
Net Cash Flow from Operating Activities 671.50 1671.74
B. Cash Flow from Investing Activities
Addition Of Fixed asset (176.65) (198.24)
Sale of Fixed assets 16.00 -
Long term advances (66.49) 255.00
Other Non Current assets 16.97 (20.86)
Dividend Income 0.07 0.06
Interest Income 17.55 14.51
Net Cash used in Investing Activities (192.55) 50.48
Sub Total (A+B) 478.95 1722.22
C. Cash Flow from Financing Activities
Increase in Share Capital/Convertible warrants 25.74
increase in Share Premium 66.00 (31.48)
Increase in Long Term Loans (Net) (206.25) 20.38
Increase in Short Term Borrowings (Net) 664.83 (359.63)
Interim Dividend Paid (22.18) -
Interest Paid (963.43) (1346.03)
Dividend Paid (14.69) (14.79)
Cash Flow from Financing Activities (449.98) 1700.06
Net Increase in Cash & Cash Equivalent 28.98 22.16
Cash & Cash Equivalents at the beginning of the period 33.28 11.12
Cash & Cash Equivalents at end of the period 62.25 33.28
Particulars
on 30.09.2012
For the year ended
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
7170 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Significant Accounting Policies
NOTE - 1
GROUP INFORMATION
The consolidated financial statements comprise of the financial statement of Lakshmi Energy and Foods Limited (“LEAF”) and its
subsidiaries Punjab Greenfield Resources Limited (“PGRL”), Lakshmi Green Power Limited (“LGPL”) and Green Energy & Foods Pte
Limited, Singapore (“GEFP”).
NOTE -2
SIGNIFICANT ACCOUNTING POLICIES
I. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS:
i. Reference in these notes to the “company” shall mean to include LEAF and its subsidiaries viz. PGRL, LGPL and GEFP
consolidated in these financial statements unless otherwise stated.
ii. The consolidated financial statements have been prepared and presented under the historical cost convention on the
accrual basis of accounting and on the accounting principles of going concern except as stated hereinafter and except
where impairment of assets is made and revaluation of assets is carried out, in accordance with all the applicable
accounting principles generally accepted in India and comply with the mandatory applicable accounting standards
notified under Sub-Section (3C) of Section 211 of the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and
other relevant provisions of the Companies Act, 1956 and the rules, regulations and guidelines made there under.
iii. The financial statements of LEAF and its subsidiaries have been combined on a line-by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses after eliminating intra-group balances / transactions in
full as per the Accounting Standard (AS)-21 on consolidated financial statements.
iv. Accounting policies between LEAF and its subsidiaries are consistent. The relevant accounting policies being followed by
LEAF have been duly disclosed in financial statements.
v. Accounting policies not specifically referred to otherwise have been consistently applied and are in consonance with
generally accepted accounting principles recognized in the form of accounting standards.
vi. The consolidated financial statements have been prepared using uniform accounting policies for like transactions and
other events in similar circumstances and are presented, to the extent possible, in the same manner as the LEAF’s and its
subsidiaries’ separate financial statements.
vii. Accounting policies and Notes to Accounts of LEAF are set out in financial statements and are not being repeated herein
but may be treated as a part and parcel of Accounting policies and Notes to Accounts to the consolidated balance sheet
of LEAF and its subsidiaries.
viii. The Board of Directors of the company approved the change in the financial year of the Company from October-
September to April- March effective April 01 2014. In view of this, the current financial year is for a period of 18 months i.e.
01 October 2012 to March 31, 2014.
II. USE OF ESTIMATES
The preparation of consolidated financial statements in conformity with Generally Accepted Accounting Principles (GAAP)
requires management to make judgments, estimates and assumptions that affect the application of accounting policies and
reported amounts of assets, liabilities, income and expenses and disclosure of contingent liabilities on the date of the financial
statements. Examples of such estimates include transfer pricing related adjustments, provision against litigations and regulatory
actions, provisions of future obligation under employee benefit plans, useful lives of fixed assets, provision in respect of non-
current investments, provision for sales return, recoverability of tax assets, provision for customer claims, provision for inventory
CONSOLIDATED CASH FLOW STATEMENT for the period ended 31.03.2014
(Rs in Millions)
For the18 Months
ended 31.03.2014
A. Cash Flow from Operating Activities
Net Profit before Tax and Extra Ordinary Items (167.99) (4.49)
ADJUSTMENT FOR: -
Interest Paid 964.16 1346.03
Depreciation 641.63 399.54
Interest Income (17.55) (14.51)
Dividend Income (0.07) (0.06)
Interim Dividend Paid 22.18 -
Provision for Gratuity 1.46 0.00
Provision for Leave Encashment 0.23 0.00
Provision for Bonus 1.69 1.56
Provision for loss on Foreign Exchange Fluctuations 58.86 0.00
Loss on Sale of Fixed Assets 0.22 4.87
Operating Profit before Working Capital Changes: 1504.82 1732.95
ADJUSTMENT FOR:
Trade Receivables (2477.32) 891.93
Short term advances (26.35) 180.43
Other current assets 433.00 (490.64)
Inventories 466.55 (1917.99)
Trade Payables 1909.37 808.43
Other Liabilities (1138.57) 474.13
Cash generated from Operating Activities 671.50 1679.24
Income Tax Paid - -7.50
Net Cash Flow from Operating Activities 671.50 1671.74
B. Cash Flow from Investing Activities
Addition Of Fixed asset (176.65) (198.24)
Sale of Fixed assets 16.00 -
Long term advances (66.49) 255.00
Other Non Current assets 16.97 (20.86)
Dividend Income 0.07 0.06
Interest Income 17.55 14.51
Net Cash used in Investing Activities (192.55) 50.48
Sub Total (A+B) 478.95 1722.22
C. Cash Flow from Financing Activities
Increase in Share Capital/Convertible warrants 25.74
increase in Share Premium 66.00 (31.48)
Increase in Long Term Loans (Net) (206.25) 20.38
Increase in Short Term Borrowings (Net) 664.83 (359.63)
Interim Dividend Paid (22.18) -
Interest Paid (963.43) (1346.03)
Dividend Paid (14.69) (14.79)
Cash Flow from Financing Activities (449.98) 1700.06
Net Increase in Cash & Cash Equivalent 28.98 22.16
Cash & Cash Equivalents at the beginning of the period 33.28 11.12
Cash & Cash Equivalents at end of the period 62.25 33.28
Particulars
on 30.09.2012
For the year ended
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
7170 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Significant Accounting Policies
NOTE - 1
GROUP INFORMATION
The consolidated financial statements comprise of the financial statement of Lakshmi Energy and Foods Limited (“LEAF”) and its
subsidiaries Punjab Greenfield Resources Limited (“PGRL”), Lakshmi Green Power Limited (“LGPL”) and Green Energy & Foods Pte
Limited, Singapore (“GEFP”).
NOTE -2
SIGNIFICANT ACCOUNTING POLICIES
I. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS:
i. Reference in these notes to the “company” shall mean to include LEAF and its subsidiaries viz. PGRL, LGPL and GEFP
consolidated in these financial statements unless otherwise stated.
ii. The consolidated financial statements have been prepared and presented under the historical cost convention on the
accrual basis of accounting and on the accounting principles of going concern except as stated hereinafter and except
where impairment of assets is made and revaluation of assets is carried out, in accordance with all the applicable
accounting principles generally accepted in India and comply with the mandatory applicable accounting standards
notified under Sub-Section (3C) of Section 211 of the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and
other relevant provisions of the Companies Act, 1956 and the rules, regulations and guidelines made there under.
iii. The financial statements of LEAF and its subsidiaries have been combined on a line-by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses after eliminating intra-group balances / transactions in
full as per the Accounting Standard (AS)-21 on consolidated financial statements.
iv. Accounting policies between LEAF and its subsidiaries are consistent. The relevant accounting policies being followed by
LEAF have been duly disclosed in financial statements.
v. Accounting policies not specifically referred to otherwise have been consistently applied and are in consonance with
generally accepted accounting principles recognized in the form of accounting standards.
vi. The consolidated financial statements have been prepared using uniform accounting policies for like transactions and
other events in similar circumstances and are presented, to the extent possible, in the same manner as the LEAF’s and its
subsidiaries’ separate financial statements.
vii. Accounting policies and Notes to Accounts of LEAF are set out in financial statements and are not being repeated herein
but may be treated as a part and parcel of Accounting policies and Notes to Accounts to the consolidated balance sheet
of LEAF and its subsidiaries.
viii. The Board of Directors of the company approved the change in the financial year of the Company from October-
September to April- March effective April 01 2014. In view of this, the current financial year is for a period of 18 months i.e.
01 October 2012 to March 31, 2014.
II. USE OF ESTIMATES
The preparation of consolidated financial statements in conformity with Generally Accepted Accounting Principles (GAAP)
requires management to make judgments, estimates and assumptions that affect the application of accounting policies and
reported amounts of assets, liabilities, income and expenses and disclosure of contingent liabilities on the date of the financial
statements. Examples of such estimates include transfer pricing related adjustments, provision against litigations and regulatory
actions, provisions of future obligation under employee benefit plans, useful lives of fixed assets, provision in respect of non-
current investments, provision for sales return, recoverability of tax assets, provision for customer claims, provision for inventory
Significant Accounting Policies
obsolescence including expiry of drugs and impairment of assets. Actual results could differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the
current and future periods.
III. REVENUE RECOGNITION
Revenues recognized to the extent it can be reliably measured and is probable that economic benefits will flow to the company.
Revenues are considered receivable are accounted for on accrual basis except for the Disposal of Sundry items & Scraps etc.,
which are accounted for on cash basis:
SALES
Revenue from sales of goods is recognized when the significant risk and reward of ownership of the goods are transferred to the
customer. Sales are stated net of sales returns and indirect taxes.
INTEREST
Income is recognized on a time proportion basis taking into account outstanding amount and the applicable rate of interest.
DIVIDEND
Income from dividend is recognized when the right to dividend has been established.
OTHER OPERATING INCOME
Other operating revenue is recognized on accrual basis.
IV. CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle of each entity
of the Group and other criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after the reporting date; or
d. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. it is expected to be settled in the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the reporting date; or
d. the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current financial assets/ liabilities respectively. All other assets/
liabilities are classified as non-current.
7372 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Significant Accounting Policies
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.
V. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction [including attributable interest and financial costs till such assets are
ready for intended use, less accumulated depreciation, impairment losses and specific grants received, if any] except assets strevalued on 31 March, 1999. In respect of projects involving institutional loans, related pre-operative and pre-operational
expenses like up-front fees and appraisal fees have been capitalized. Interest paid on loans borrowed from institutions, which are
attributable to construction or acquisition of fixed assets for the period up to the completion of construction or acquisition of
fixed assets, has also been capitalized.
TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, if
any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable
taxes or levies and any attributable costs of bringing the asset to its working condition for its intended use.
INTANGIBLE ASSETS AND AMORTIZATION
Intangible fixed assets comprise brands, trademarks and computer software, which are stated at cost less accumulated
amortization and impairment losses, if any. The cost of an item of intangible fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition
for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of asset.
REVALUTION OF FIXED ASSETS
stAll fixed assets of the company were revalued on 31 March 1999 as per the valuation report of Chartered Engineers / approved
valuers.
As and when the fixed assets are revalued, the provision for depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional diminution in the value.
DEPRECIATION
Depreciation is provided, pro-rata, on Straight Line Method by applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
As per the Accounting Standard-6 “Depreciation Accounting” (AS-6) issued by the Institute of Chartered Accountants of India,
depreciation on revalued assets has been adjusted with the revaluation reserve amount.
Depreciation on Power plant was claimed as usual as per “As-6”issued by ICAI.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 “Impairment of Assets” (AS-28) issued by the Institute of Chartered Accountants of India,
impairment is ascertained at each balance sheet date in respect of each of the company’s fixed assets. An impairment loss will be
recognized whenever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is the
greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted
to their present value based on an appropriate discount factor.
Significant Accounting Policies
obsolescence including expiry of drugs and impairment of assets. Actual results could differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the
current and future periods.
III. REVENUE RECOGNITION
Revenues recognized to the extent it can be reliably measured and is probable that economic benefits will flow to the company.
Revenues are considered receivable are accounted for on accrual basis except for the Disposal of Sundry items & Scraps etc.,
which are accounted for on cash basis:
SALES
Revenue from sales of goods is recognized when the significant risk and reward of ownership of the goods are transferred to the
customer. Sales are stated net of sales returns and indirect taxes.
INTEREST
Income is recognized on a time proportion basis taking into account outstanding amount and the applicable rate of interest.
DIVIDEND
Income from dividend is recognized when the right to dividend has been established.
OTHER OPERATING INCOME
Other operating revenue is recognized on accrual basis.
IV. CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle of each entity
of the Group and other criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after the reporting date; or
d. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting date.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. it is expected to be settled in the Company’s normal operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the reporting date; or
d. the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current financial assets/ liabilities respectively. All other assets/
liabilities are classified as non-current.
7372 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Significant Accounting Policies
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.
V. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction [including attributable interest and financial costs till such assets are
ready for intended use, less accumulated depreciation, impairment losses and specific grants received, if any] except assets strevalued on 31 March, 1999. In respect of projects involving institutional loans, related pre-operative and pre-operational
expenses like up-front fees and appraisal fees have been capitalized. Interest paid on loans borrowed from institutions, which are
attributable to construction or acquisition of fixed assets for the period up to the completion of construction or acquisition of
fixed assets, has also been capitalized.
TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, if
any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable
taxes or levies and any attributable costs of bringing the asset to its working condition for its intended use.
INTANGIBLE ASSETS AND AMORTIZATION
Intangible fixed assets comprise brands, trademarks and computer software, which are stated at cost less accumulated
amortization and impairment losses, if any. The cost of an item of intangible fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition
for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of asset.
REVALUTION OF FIXED ASSETS
stAll fixed assets of the company were revalued on 31 March 1999 as per the valuation report of Chartered Engineers / approved
valuers.
As and when the fixed assets are revalued, the provision for depreciation on such revalued fixed assets is adjusted, wherever
applicable, in order to make allowance for the consequent additional diminution in the value.
DEPRECIATION
Depreciation is provided, pro-rata, on Straight Line Method by applying rates and in the manner as given in Schedule XIV of the
Companies Act, 1956.
As per the Accounting Standard-6 “Depreciation Accounting” (AS-6) issued by the Institute of Chartered Accountants of India,
depreciation on revalued assets has been adjusted with the revaluation reserve amount.
Depreciation on Power plant was claimed as usual as per “As-6”issued by ICAI.
VI. IMPAIRMENT OF ASSETS
As per the Accounting Standard-28 “Impairment of Assets” (AS-28) issued by the Institute of Chartered Accountants of India,
impairment is ascertained at each balance sheet date in respect of each of the company’s fixed assets. An impairment loss will be
recognized whenever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is the
greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted
to their present value based on an appropriate discount factor.
VII. INVESTMENTS
i. Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline,
other than temporary, in the value of investments, on an individual basis.
Current Investments are carried at the lower of cost and fair value determined on a category-wise basis.
VIII. VALUATION OF INVENTORIES
i. Raw Materials Components, Stores & Spare parts & Packing Material. At Cost or net realizable value, whichever is less.
ii. Finished Goods. At Cost or net realizable value, whichever is less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
IX. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments with original
maturities, at the date of purchase/ investment, of three months or less.
X. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of exchange in force at the time the transactions are affected.
In case of forward contracts, if any, the difference between the forward rates and the exchange rates on the transaction dates is
recognized as income or expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward contracts are recorded as income / expense for the period.
At the year end, monetary items demonetized in foreign currency are reported using the closing rates of exchange. Exchange rate
differences arising on realization / payment of foreign exchange are accounted in the year of realisation / payment.
XI. EMPLOYEE / RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to Revenue on accrual basis. At present provident
fund schemes are applicable to LEAF and its subsidiary PGRL.
ii. Gratuity is being provided as required as per actuarial valuation.
XII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22 “Accounting for Taxes on Income” (AS-22) issued by
the Institute of Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax liability computed after considering tax allowances and
exemptions.
iii. The difference that results between the profit offered for income tax and the profit as per the financial statements is
identified and, thereafter, a deferred tax asset or deferred tax liability is recorded for timing differences, namely the
differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate
amount being considered.
iv. The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonable certain or virtually certain, as the
7574 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Significant Accounting Policies Significant Accounting Policies
case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any
such written down carrying amount is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available.
XIII. PROVISIONS
A provision is recognised if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best
estimate of the expenditure required to settle the present obligation at the Balance Sheet date. The provisions are measured on
an undiscounted basis.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the year in which it is incurred. Expenditure which results in
creation of assets is included in fixed assets and depreciation is provided thereon on such assets, as applicable.
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND
CONTINGENT ASSETS
Provisions are recognized in terms of Accounting Standard-29 “Provisions, Contingent Liabilities and Contingent Assets” (AS-29)
issued by the Institute of Chartered Accountants of India, when there is a present legal or statutory obligation as a result of past
events, where it is probable that there will be outflow of resources to settle the obligation and a reliable estimate of the amount of
the obligation can be made.
Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the control of the company or where any present
obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be
made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided
for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The leasing arrangements which are not non-cancellable range between 6 months and 1 year generally or longer and are usually
renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent/ Storage
Charges in the Statement of Profit and Loss.
XVI. EARNING PER SHARE
In determining the earning per share, the net profit after tax is considered. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during the period.
VII. INVESTMENTS
i. Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long term investments.
ii. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline,
other than temporary, in the value of investments, on an individual basis.
Current Investments are carried at the lower of cost and fair value determined on a category-wise basis.
VIII. VALUATION OF INVENTORIES
i. Raw Materials Components, Stores & Spare parts & Packing Material. At Cost or net realizable value, whichever is less.
ii. Finished Goods. At Cost or net realizable value, whichever is less.
iii. Goods in Progress. At Estimated Cost.
iv. By-Products. At Estimated Cost
IX. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments with original
maturities, at the date of purchase/ investment, of three months or less.
X. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the original rates of exchange in force at the time the transactions are affected.
In case of forward contracts, if any, the difference between the forward rates and the exchange rates on the transaction dates is
recognized as income or expense over the tenure of the related contracts.
The profit / loss arising out of the cancellation or renewal of forward contracts are recorded as income / expense for the period.
At the year end, monetary items demonetized in foreign currency are reported using the closing rates of exchange. Exchange rate
differences arising on realization / payment of foreign exchange are accounted in the year of realisation / payment.
XI. EMPLOYEE / RETIREMENT BENEFITS
i. Contribution to defined provident fund schemes are being charged to Revenue on accrual basis. At present provident
fund schemes are applicable to LEAF and its subsidiary PGRL.
ii. Gratuity is being provided as required as per actuarial valuation.
XII. TAXATION
i. Income tax is computed in accordance with Accounting Standard-22 “Accounting for Taxes on Income” (AS-22) issued by
the Institute of Chartered Accountants of India.
ii. Provision is made for income tax annually based on the tax liability computed after considering tax allowances and
exemptions.
iii. The difference that results between the profit offered for income tax and the profit as per the financial statements is
identified and, thereafter, a deferred tax asset or deferred tax liability is recorded for timing differences, namely the
differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate
amount being considered.
iv. The carrying amount of the deferred tax assets are reviewed at each balance sheet date. The company writes down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonable certain or virtually certain, as the
7574 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Significant Accounting Policies Significant Accounting Policies
case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any
such written down carrying amount is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available.
XIII. PROVISIONS
A provision is recognised if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best
estimate of the expenditure required to settle the present obligation at the Balance Sheet date. The provisions are measured on
an undiscounted basis.
XIV. RESEARCH AND DEVELOPMENT
Revenue expenditure on research and development is charged out in the year in which it is incurred. Expenditure which results in
creation of assets is included in fixed assets and depreciation is provided thereon on such assets, as applicable.
XV. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITES AND
CONTINGENT ASSETS
Provisions are recognized in terms of Accounting Standard-29 “Provisions, Contingent Liabilities and Contingent Assets” (AS-29)
issued by the Institute of Chartered Accountants of India, when there is a present legal or statutory obligation as a result of past
events, where it is probable that there will be outflow of resources to settle the obligation and a reliable estimate of the amount of
the obligation can be made.
Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the control of the company or where any present
obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be
made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided
for.
Contingent assets are not recombined in the financial statements.
XVI. LEASE AGREEMENTS
The leasing arrangements which are not non-cancellable range between 6 months and 1 year generally or longer and are usually
renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent/ Storage
Charges in the Statement of Profit and Loss.
XVI. EARNING PER SHARE
In determining the earning per share, the net profit after tax is considered. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during the period.
NOTES forming part of the CONSOLIDATED FINANCIAL STATEMENTS
(Rs In Millions)
31.03.2014
NOTE:-3
SHARE CAPITAL
AUTHORISED CAPITAL
10,00,00,000 Equity Shares of Rs 2/- each 200.00 200.00
(Previous year 10,00,00,000 Equity shares of Rs 2/-each)
ISSUED & SUBSCRIBED CAPITAL
6,69,10,000 Equity Shares of Rs 2/- Each 133.82 127.22
(Previous year 6,36,10,000 Equity shares of Rs 2/-each)
PAID UP CAPITAL
6,64,90,000 Equity Shares of Rs 2/- Each 132.98 126.38
(Previous year 6,31,90,000 Equity shares of Rs 2/-each)
TOTAL 132.98 126.38
Notes :
1) 84,000 Equity shares of face value of Rs.10/- each were already forfeited in the earlier years.
2) During the period company has issued & converted 33,00,000 convertible warrants into ordinary equity shares @ 22/- per share.
(A) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
As at 31/03/2014
No of Shares Amount
Ordinary Equity Shares outstanding at the beginning 63,190,000 126.38 63,190,000 126.38
Ordinary Equity Shares issued during the period 3,300,000 6.60 - -
Ordinary Equity Shares bought back during the period - - - -
Ordinary Equity Shares outstanding at the end 66,490,000 132.98 63,190,000 126.38
(B) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary equity shares having a par value of ` 2/- per share. Each holder of ordinary shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
During the period ended 31/03/2014, the amount of dividend per share recognised for distribution to ordinary shareholders is Rs. 0.30/- per share (interim) (Previous year: Rs ̀ 0.20/- per share).
In the event of liquidation of the company, the holders of ordinary 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 ordinary shares held by the shareholders.
(C) Details of shareholders holding more than 5% shares in the Company
As at 31/03/2014
No of Shares % of Holdingheld
1 BALBIR SINGH UPPAL 16,175,985 24.33% 10,400,985 16.46%
2 GANESHAY OVERSEAS INDUSTRIES LIMITED 4,632,000 6.97% 4,632,000 7.33%
3 LOIL HEALTH FOODS LTD 5,605,000 8.43% 5,605,000 8.87%
(D) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date: Nil .
Particulars
30.09.2012
Particulars As at 30/09/2012
No of Shares Amount
Sl. No Particulars As at 30/09/2012
No of Shares % of Holdingheld
As at As at
7776 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-4
RESERVES & SURPLUS
General Reserve
Opening Balance 478.81 476.11
Add : Addition during the period 0.00 2.69
Closing Balance 478.81 478.81
Securities Premium Reserve
Opening Balance 2040.87 2040.87
Add : Addition during the period 66.00 0.00
Closing Balance 2106.87 2040.87
Revaluation Reserve
Opening Balance 29.06 64.86
Less : utilised for depreciation 29.06 35.80
Closing Balance 0.00 29.06
Surplus In Profit and Loss Statement
Opening balance 4880.59 4802.27
Add : Excess provision of tax in earlier years 46.46 -
Less : Adjustments (0.10) -
Add : Net Profit/(Net Loss) for the Current year (6.45) 95.67
Amount Available for appropriation 4920.70 4897.97
Less: Provision for Dividend (including Tax) 14.68
Less: Amount Transferred to General Reserve 2.69
Closing Balance 4920.70 4880.59
Total Closing Balance 7506.38 7429.33
NOTE:-5
Long Term Borrowings
Term Loans : Secured
i) Punjab National Bank
- For Rice Expansion
Outstanding Balance - 47.40
Less: Current maturity - 47.40
Non Current amount - 0.00
- For Rice Expansion
Outstanding Balance 364.27 404.73
Less: Current maturity 57.14 0.00
Non Current amount 307.13 404.73
- For Power Project
Outstanding Balance - 79.25
Less: Current maturity - 31.33
Non Current amount - 47.93
Particulars
30.09.2012
As at
NOTES forming part of the CONSOLIDATED FINANCIAL STATEMENTS
(Rs In Millions)
31.03.2014
NOTE:-3
SHARE CAPITAL
AUTHORISED CAPITAL
10,00,00,000 Equity Shares of Rs 2/- each 200.00 200.00
(Previous year 10,00,00,000 Equity shares of Rs 2/-each)
ISSUED & SUBSCRIBED CAPITAL
6,69,10,000 Equity Shares of Rs 2/- Each 133.82 127.22
(Previous year 6,36,10,000 Equity shares of Rs 2/-each)
PAID UP CAPITAL
6,64,90,000 Equity Shares of Rs 2/- Each 132.98 126.38
(Previous year 6,31,90,000 Equity shares of Rs 2/-each)
TOTAL 132.98 126.38
Notes :
1) 84,000 Equity shares of face value of Rs.10/- each were already forfeited in the earlier years.
2) During the period company has issued & converted 33,00,000 convertible warrants into ordinary equity shares @ 22/- per share.
(A) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period
As at 31/03/2014
No of Shares Amount
Ordinary Equity Shares outstanding at the beginning 63,190,000 126.38 63,190,000 126.38
Ordinary Equity Shares issued during the period 3,300,000 6.60 - -
Ordinary Equity Shares bought back during the period - - - -
Ordinary Equity Shares outstanding at the end 66,490,000 132.98 63,190,000 126.38
(B) Terms/ rights attached to ordinary shares
The Company has issued only one class of ordinary equity shares having a par value of ` 2/- per share. Each holder of ordinary shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.
During the period ended 31/03/2014, the amount of dividend per share recognised for distribution to ordinary shareholders is Rs. 0.30/- per share (interim) (Previous year: Rs ̀ 0.20/- per share).
In the event of liquidation of the company, the holders of ordinary 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 ordinary shares held by the shareholders.
(C) Details of shareholders holding more than 5% shares in the Company
As at 31/03/2014
No of Shares % of Holdingheld
1 BALBIR SINGH UPPAL 16,175,985 24.33% 10,400,985 16.46%
2 GANESHAY OVERSEAS INDUSTRIES LIMITED 4,632,000 6.97% 4,632,000 7.33%
3 LOIL HEALTH FOODS LTD 5,605,000 8.43% 5,605,000 8.87%
(D) Aggregate number of bonus shares issued, Shares issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date: Nil .
Particulars
30.09.2012
Particulars As at 30/09/2012
No of Shares Amount
Sl. No Particulars As at 30/09/2012
No of Shares % of Holdingheld
As at As at
7776 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-4
RESERVES & SURPLUS
General Reserve
Opening Balance 478.81 476.11
Add : Addition during the period 0.00 2.69
Closing Balance 478.81 478.81
Securities Premium Reserve
Opening Balance 2040.87 2040.87
Add : Addition during the period 66.00 0.00
Closing Balance 2106.87 2040.87
Revaluation Reserve
Opening Balance 29.06 64.86
Less : utilised for depreciation 29.06 35.80
Closing Balance 0.00 29.06
Surplus In Profit and Loss Statement
Opening balance 4880.59 4802.27
Add : Excess provision of tax in earlier years 46.46 -
Less : Adjustments (0.10) -
Add : Net Profit/(Net Loss) for the Current year (6.45) 95.67
Amount Available for appropriation 4920.70 4897.97
Less: Provision for Dividend (including Tax) 14.68
Less: Amount Transferred to General Reserve 2.69
Closing Balance 4920.70 4880.59
Total Closing Balance 7506.38 7429.33
NOTE:-5
Long Term Borrowings
Term Loans : Secured
i) Punjab National Bank
- For Rice Expansion
Outstanding Balance - 47.40
Less: Current maturity - 47.40
Non Current amount - 0.00
- For Rice Expansion
Outstanding Balance 364.27 404.73
Less: Current maturity 57.14 0.00
Non Current amount 307.13 404.73
- For Power Project
Outstanding Balance - 79.25
Less: Current maturity - 31.33
Non Current amount - 47.93
Particulars
30.09.2012
As at
Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
ii) Syndicate Bank
- For Power Project
Outstanding Balance - 64.28
Less: Current maturity - 31.43
Non Current amount - 32.85
iii) Axis Bank
- Foreign Currency
Outstanding Balance - 123.47
Less: Current maturity - 97.50
Non Current amount - 25.97
Balance Outstanding 364.27 719.13
Current maturities of long term debt 57.14 207.65
Non Current Amount 307.13 511.48
Unsecured Loans
- From Subsidiaries - 2.51
TOTAL - 2.51
Total Long Term Liabilities 307.13 513.99
Notes :
(i) Term loans from Banks are secured by equitable mortgage of Properties of the company and pari-passu charge over fixed assets , both present and future of the company.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of March 31, 2014 the interest rates 14.00% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-6
Deferred Tax Liabilities (Net)
Opening DTL Balance 668.65 768.81
DTA Charged to the Statement of Profit & Loss (162.46) (100.16)
Closing DTL Balance 506.19 668.65
NOTE:-7
Long Term Provisions
- Provision for Employee Benefit (Gratuity) 7.03 6.58
TOTAL 7.03 6.58
Particulars
30.09.2012
As at
7978 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-8
Short Term Borrowings
Working Capital Limits : Secured
Cash Credit/Packing Credit Facilities/Short Term Loans
From Nationalised/Other Banks
i) Punjab National Bank 3927.51 3599.61
ii) Syndicate Bank 2424.94 2399.45
iii) Axis Bank 629.07 1040.87
iv) ICICI Bank 1260.38 1249.71
v) State Bank of India - 48.18
TOTAL 8241.90 8337.82
(Above includes Brrowings in Foreign Currency)
Axis Bank 89.69 308.93
ICICI Bank 222.00 785.93
State Bank of India - 48.18
(i) Working capital facilities (fund based & non fund based limits) are secured by first pari passu charge over stocks, stores, raw
materials, inventories, work in progress, finished goods and also book debts, bills and moneys receivable of the Company by way of
hypothecation.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of
March 31, 2014 the interest rates on cash credit ranges from 12.25 to 13.50% per annum. Packing credit INR from 11.00% to
12.75% per annum Packing credit foreign currency from 4.00% to 4.50% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-9
Trade Payables
Micro & Small Enterprises* - -
Others 3816.57 2155.18
TOTAL 3816.57 2155.18
*There are no Micro, Small and Medium Enterprises, (P.Y. NIL) to whom the Company owes dues, which are outstanding for more than
45 days as at 31th March 2014. This information, required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.
Moreover, the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias
(Commission Agents) who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006
Particulars
30.09.2012
As at
Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
ii) Syndicate Bank
- For Power Project
Outstanding Balance - 64.28
Less: Current maturity - 31.43
Non Current amount - 32.85
iii) Axis Bank
- Foreign Currency
Outstanding Balance - 123.47
Less: Current maturity - 97.50
Non Current amount - 25.97
Balance Outstanding 364.27 719.13
Current maturities of long term debt 57.14 207.65
Non Current Amount 307.13 511.48
Unsecured Loans
- From Subsidiaries - 2.51
TOTAL - 2.51
Total Long Term Liabilities 307.13 513.99
Notes :
(i) Term loans from Banks are secured by equitable mortgage of Properties of the company and pari-passu charge over fixed assets , both present and future of the company.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of March 31, 2014 the interest rates 14.00% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-6
Deferred Tax Liabilities (Net)
Opening DTL Balance 668.65 768.81
DTA Charged to the Statement of Profit & Loss (162.46) (100.16)
Closing DTL Balance 506.19 668.65
NOTE:-7
Long Term Provisions
- Provision for Employee Benefit (Gratuity) 7.03 6.58
TOTAL 7.03 6.58
Particulars
30.09.2012
As at
7978 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-8
Short Term Borrowings
Working Capital Limits : Secured
Cash Credit/Packing Credit Facilities/Short Term Loans
From Nationalised/Other Banks
i) Punjab National Bank 3927.51 3599.61
ii) Syndicate Bank 2424.94 2399.45
iii) Axis Bank 629.07 1040.87
iv) ICICI Bank 1260.38 1249.71
v) State Bank of India - 48.18
TOTAL 8241.90 8337.82
(Above includes Brrowings in Foreign Currency)
Axis Bank 89.69 308.93
ICICI Bank 222.00 785.93
State Bank of India - 48.18
(i) Working capital facilities (fund based & non fund based limits) are secured by first pari passu charge over stocks, stores, raw
materials, inventories, work in progress, finished goods and also book debts, bills and moneys receivable of the Company by way of
hypothecation.
(ii) The interest on the above term loans from banks are linked to the respective banks base rates which are floating in nature. As of
March 31, 2014 the interest rates on cash credit ranges from 12.25 to 13.50% per annum. Packing credit INR from 11.00% to
12.75% per annum Packing credit foreign currency from 4.00% to 4.50% per annum.
(iii) There is no continuing default in repayment of any of the above secured bank loan.
NOTE:-9
Trade Payables
Micro & Small Enterprises* - -
Others 3816.57 2155.18
TOTAL 3816.57 2155.18
*There are no Micro, Small and Medium Enterprises, (P.Y. NIL) to whom the Company owes dues, which are outstanding for more than
45 days as at 31th March 2014. This information, required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.
Moreover, the Company primarily deals in procurement of agri-products which are sourced from the Farmers and Aartias
(Commission Agents) who are not covered under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006
Particulars
30.09.2012
As at
(Rs In Millions)
As At
31.03.2014
NOTE:-10
Other Current Liabilities
Current Maturities of Long Term debt 57.14 207.65
Sundry Creditors - for Capital Goods 7.33 24.06
Other Liabilities 1071.58 1293.41
Unclaimed Dividend* 2.24 12.66
Statutory Liabilities 23.18 12.64
TOTAL 1161.47 1550.41
* Not due for transfer to Investor Education and Protection Fund. Unclaimed Dividends for the years 2005-06 and 2006-07 amounting to Rs.1.31 millions have been transffered to Investor Education and Protection Fund during the period ending 31.03.2014.
Note:-11
Short Term Provisions
- Income Tax 0.32 38.32
- Dividend (including Tax) - 14.69
- Provision for Leave Encashment 0.23 -
- Provision for Bonus 1.69 1.56
- Provision for loss on Foreign Exchange Fluctuations* 58.86 -
Total 61.10 54.57
* Provision for unrealised loss on Foreign Currency Forward Contracts outstanding as on 31.03.2014 is Rs.14.72 millions
* Provision for Foreign Exchange loss on PCFC outstanding as on 31.03.2014 is Rs.44.14 millions
Particulars
30.09.2012
As At
8180 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements Notes Forming Part of the Consolidated Financial Statements
NO
TE
:-12
FIX
ED
AS
SE
TS
(Rs
in M
illio
ns)
To
tal C
ost
As
on
As
on
as
on
31.0
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322.7
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22623.8
7669.2
16.4
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82692.2
42956.1
4
Pre
vio
us Y
ear
5543.2
973.3
836.6
65580.0
12207.7
1435.3
420.4
92623.8
72956.1
4
No
tes
:
1.N
one
of th
e fix
ed a
sset
s ha
ve b
een
reva
lued
dur
ing
the
peri
od.
2.T
here
has
bee
n no
impa
irm
ent
loss
on
asse
ts d
urin
g th
e pe
riod.
DE
SC
RIP
TIO
NG
RO
SS
BL
OC
KD
EP
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N O
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As
at
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sS
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/A
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rin
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ep
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ati
on
As
on
01.1
0.2
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for
the
Ad
just
men
ts01
.10.2
012
the
Wri
tten
31.0
3.2
014
peri
od
peri
od
Bac
k
(Rs In Millions)
As At
31.03.2014
NOTE:-10
Other Current Liabilities
Current Maturities of Long Term debt 57.14 207.65
Sundry Creditors - for Capital Goods 7.33 24.06
Other Liabilities 1071.58 1293.41
Unclaimed Dividend* 2.24 12.66
Statutory Liabilities 23.18 12.64
TOTAL 1161.47 1550.41
* Not due for transfer to Investor Education and Protection Fund. Unclaimed Dividends for the years 2005-06 and 2006-07 amounting to Rs.1.31 millions have been transffered to Investor Education and Protection Fund during the period ending 31.03.2014.
Note:-11
Short Term Provisions
- Income Tax 0.32 38.32
- Dividend (including Tax) - 14.69
- Provision for Leave Encashment 0.23 -
- Provision for Bonus 1.69 1.56
- Provision for loss on Foreign Exchange Fluctuations* 58.86 -
Total 61.10 54.57
* Provision for unrealised loss on Foreign Currency Forward Contracts outstanding as on 31.03.2014 is Rs.14.72 millions
* Provision for Foreign Exchange loss on PCFC outstanding as on 31.03.2014 is Rs.44.14 millions
Particulars
30.09.2012
As At
8180 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements Notes Forming Part of the Consolidated Financial StatementsN
OT
E:-
12
FIX
ED
AS
SE
TS
(Rs
in M
illio
ns)
To
tal C
ost
As
on
As
on
as
on
31.0
3.2
014
30.0
9.2
012
31.0
3.2
014
LAN
D25
8.04
41.6
2-
299.
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000.
00
-0.
0029
9.66
258.
04
BU
ILD
ING
465.
3828
7.90
-75
3.28
88.8
726
.83
-11
5.70
637.
5837
6.51
PLA
NT
AN
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AC
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3130
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.77
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FUR
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68
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TO
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L5580.0
1421.5
322.7
25978.8
22623.8
7669.2
16.4
93286.5
82692.2
42956.1
4
Pre
vio
us Y
ear
5543.2
973.3
836.6
65580.0
12207.7
1435.3
420.4
92623.8
72956.1
4
No
tes
:
1.N
one
of th
e fix
ed a
sset
s ha
ve b
een
reva
lued
dur
ing
the
peri
od.
2.T
here
has
bee
n no
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loss
on
asse
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DE
SC
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TIO
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RO
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BL
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EP
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/A
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01.1
0.2
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for
the
Ad
just
men
ts01
.10.2
012
the
Wri
tten
31.0
3.2
014
peri
od
peri
od
Bac
k
(Rs In Millions)
As At
31.03.2014
NOTE:-13
Capital WIP
Capital WIP 61.20 306.07
Total 61.20 306.07
NOTE:-14
NON CURRENT INVESTMENTS
Non Trade Investment (at cost)
Equity Shares
In equity Shares Unquoted,Fully Paid Up :
10,00,000(P.Y 10,00,000) Equity Shares of Rs. 10/- each in 100.00 100.00
Nav Bharat International Limited, fully paid
4,849,300 Shares (P.Y. 4849300) equity 48.49 48.49
shares of the Rs. 10/- each in
Victor Foods India Limited
Quoted Investments.
11,360 Equity Shares of Rs. 10/- each in IDBI, fully paid 0.92 0.92
(Market Value as on 31/03/2014 is Rs.7,41,808.00)
Other Investments
Gold 0.11 0.11
Total Non Current Investments 149.52 149.52
NOTE:-15
Long Term Loans and Advances
-Security Deposits 57.06 59.83
-Advances for Capital Goods 9.77 0.00
-Other Advances 599.25 544.60
Total 666.08 604.43
NOTE:-16
Other Non Current Assets
- In Deposit Accounts
Fds Against Bank Guarantee 85.20 83.28
Fds to Sales tax Dept 0.10 0.10
Fds Against L/c margin 3.40 25.29
Misc Expenses not written off 10.30 0.00
Total 99.01 108.68
Particulars
30.09.2012
As At
8382 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-17
INVENTORIES
(As taken, valued and certified by management)
Raw Materials 8179.05 6743.28
Semi Finished / Finished Goods 3985.80 6116.30
Gunny Bags/Packaging/Other Consumables Stores 869.66 628.34
Total 13034.51 13487.92
NOTE:-18
TRADE RECEIVABLES
Debts outstanding for a period exceeding 6 months
from Due Date of Payment
(Good & Unsecured) 231.74 53.57
Other Debts -
(Good & Unsecured)
from others 3475.94 1187.99
Total 3707.67 1241.56
Note : Trade receivables include Rs. 3262.86 millions from companies in which directors are interested and have been considered good by the management. These companies are under litigation with commodity trading exchange and other parties.
NOTE:-19
Cash and Cash Equivalents
Cash in Hand 26.69 14.48
Cheques in Hand - Pending Realisation - 1.16
Balance with Scheduled Banks
- In Current Accounts 35.57 17.63
Total 62.25 33.28
NOTE:-20
Short Term Loans and Advances
- Advances recoverable in cash or 261.92 491.76
in kind or for value to be received
Total 261.92 491.76
NOTE:-21
Other Current Assets
(Unsecured but considered good)
- Pre-paid Expenses 20.42 4.08
- Advance Income Tax / TDS Receivable 1.13 -
- Other Current Assets 266.00 723.27
- Mat Credit Entitlement 348.45 346.66
Total 635.99 1074.01
Particulars
30.09.2012
As at
(Rs In Millions)
As At
31.03.2014
NOTE:-13
Capital WIP
Capital WIP 61.20 306.07
Total 61.20 306.07
NOTE:-14
NON CURRENT INVESTMENTS
Non Trade Investment (at cost)
Equity Shares
In equity Shares Unquoted,Fully Paid Up :
10,00,000(P.Y 10,00,000) Equity Shares of Rs. 10/- each in 100.00 100.00
Nav Bharat International Limited, fully paid
4,849,300 Shares (P.Y. 4849300) equity 48.49 48.49
shares of the Rs. 10/- each in
Victor Foods India Limited
Quoted Investments.
11,360 Equity Shares of Rs. 10/- each in IDBI, fully paid 0.92 0.92
(Market Value as on 31/03/2014 is Rs.7,41,808.00)
Other Investments
Gold 0.11 0.11
Total Non Current Investments 149.52 149.52
NOTE:-15
Long Term Loans and Advances
-Security Deposits 57.06 59.83
-Advances for Capital Goods 9.77 0.00
-Other Advances 599.25 544.60
Total 666.08 604.43
NOTE:-16
Other Non Current Assets
- In Deposit Accounts
Fds Against Bank Guarantee 85.20 83.28
Fds to Sales tax Dept 0.10 0.10
Fds Against L/c margin 3.40 25.29
Misc Expenses not written off 10.30 0.00
Total 99.01 108.68
Particulars
30.09.2012
As At
8382 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
As at
31.03.2014
NOTE:-17
INVENTORIES
(As taken, valued and certified by management)
Raw Materials 8179.05 6743.28
Semi Finished / Finished Goods 3985.80 6116.30
Gunny Bags/Packaging/Other Consumables Stores 869.66 628.34
Total 13034.51 13487.92
NOTE:-18
TRADE RECEIVABLES
Debts outstanding for a period exceeding 6 months
from Due Date of Payment
(Good & Unsecured) 231.74 53.57
Other Debts -
(Good & Unsecured)
from others 3475.94 1187.99
Total 3707.67 1241.56
Note : Trade receivables include Rs. 3262.86 millions from companies in which directors are interested and have been considered good by the management. These companies are under litigation with commodity trading exchange and other parties.
NOTE:-19
Cash and Cash Equivalents
Cash in Hand 26.69 14.48
Cheques in Hand - Pending Realisation - 1.16
Balance with Scheduled Banks
- In Current Accounts 35.57 17.63
Total 62.25 33.28
NOTE:-20
Short Term Loans and Advances
- Advances recoverable in cash or 261.92 491.76
in kind or for value to be received
Total 261.92 491.76
NOTE:-21
Other Current Assets
(Unsecured but considered good)
- Pre-paid Expenses 20.42 4.08
- Advance Income Tax / TDS Receivable 1.13 -
- Other Current Assets 266.00 723.27
- Mat Credit Entitlement 348.45 346.66
Total 635.99 1074.01
Particulars
30.09.2012
As at
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 22
Sale of Products
- Food Grains
Export 1269.76 1320.98
Deemed Export 7147.79 375.59
Domestic 9449.38 17866.93 8523.65
- Traded Goods 715.49 5128.41
- Power 89.40 23.03
- Rice Bran & Oils 384.26 85.33
- Others 12.71 9.90
TOTAL 19068.79 15466.90
NOTE:- 23
Other Operating Income
Transport Income 36.45 0.45
TOTAL 36.45 0.45
NOTE:- 24
OTHER INCOME
Insurance Claim Received 15.38 0.31
Rebate & Discount 5.59 2.65
Dividend Income 0.07 0.06
Interest Received -
- on bank FDRs 15.84 - 14.51
- others 1.71 17.55 -
TOTAL 38.59 17.53
NOTE:- 25
COST OF MATERIALS CONSUMED
Food Grains 12568.99 6341.73
Others 111.52 150.64
TOTAL 12680.51 6492.37
PURCHASE OF TRADED GOODS
Food Grains 1286.32 5803.85
Palm Oil - 123.88
Deoiled Rice Bran 41.16 23.96
TOTAL 1327.48 5951.70
Particulars For the year ended
on 30.09.2012
8584 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:-25 Contd.
CHANGES IN INVENTORIES OF FINISHED GOODS,WORK IN PROGRESS
Stocks at the beginning of the period
- Semi Finished/Finished Goods (A) 6116.30 6449.31
Less: Stocks at the end of the period
- Semi Finished/Finished Goods (B) 3985.80 6116.30
TOTAL (A-B) 2130.50 333.01
NOTE:- 26
EMPLOYEE BENEFIT EXPENSES :
Salaries & wages 133.27 85.29
Directors’ Remuneration & Prequisites 24.45 17.77
Contribution to Provident & Other funds 3.44 1.60
Staff Welfare Expenses 3.61 4.17
Recruitment & Training Expenses 0.02 0.04
Total 164.79 108.87
NOTE:- 27
FINANCE COST :
Bank Charges/Processing Charges 19.07 60.33
Interest charged by Banks
- on Term Loan 100.56 119.87
- on Working Capital Loans 843.16 1103.72
Interest - Others 1.38 62.12
TOTAL 964.17 1346.03
Particulars
on 30.09.2012
For the year ended
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 22
Sale of Products
- Food Grains
Export 1269.76 1320.98
Deemed Export 7147.79 375.59
Domestic 9449.38 17866.93 8523.65
- Traded Goods 715.49 5128.41
- Power 89.40 23.03
- Rice Bran & Oils 384.26 85.33
- Others 12.71 9.90
TOTAL 19068.79 15466.90
NOTE:- 23
Other Operating Income
Transport Income 36.45 0.45
TOTAL 36.45 0.45
NOTE:- 24
OTHER INCOME
Insurance Claim Received 15.38 0.31
Rebate & Discount 5.59 2.65
Dividend Income 0.07 0.06
Interest Received -
- on bank FDRs 15.84 - 14.51
- others 1.71 17.55 -
TOTAL 38.59 17.53
NOTE:- 25
COST OF MATERIALS CONSUMED
Food Grains 12568.99 6341.73
Others 111.52 150.64
TOTAL 12680.51 6492.37
PURCHASE OF TRADED GOODS
Food Grains 1286.32 5803.85
Palm Oil - 123.88
Deoiled Rice Bran 41.16 23.96
TOTAL 1327.48 5951.70
Particulars For the year ended
on 30.09.2012
8584 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Notes Forming Part of the Consolidated Financial Statements Notes Forming Part of the Consolidated Financial Statements
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:-25 Contd.
CHANGES IN INVENTORIES OF FINISHED GOODS,WORK IN PROGRESS
Stocks at the beginning of the period
- Semi Finished/Finished Goods (A) 6116.30 6449.31
Less: Stocks at the end of the period
- Semi Finished/Finished Goods (B) 3985.80 6116.30
TOTAL (A-B) 2130.50 333.01
NOTE:- 26
EMPLOYEE BENEFIT EXPENSES :
Salaries & wages 133.27 85.29
Directors’ Remuneration & Prequisites 24.45 17.77
Contribution to Provident & Other funds 3.44 1.60
Staff Welfare Expenses 3.61 4.17
Recruitment & Training Expenses 0.02 0.04
Total 164.79 108.87
NOTE:- 27
FINANCE COST :
Bank Charges/Processing Charges 19.07 60.33
Interest charged by Banks
- on Term Loan 100.56 119.87
- on Working Capital Loans 843.16 1103.72
Interest - Others 1.38 62.12
TOTAL 964.17 1346.03
Particulars
on 30.09.2012
For the year ended
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 28
Other Expenses
Power & Fuel 122.13 79.26
Labour charges 29.05 31.16
Rent office 12.88 5.70
Other Consumables 11.50 6.73
Repairs & Maintainance
- Building 1.08 0.50
- Machinary 15.01 14.34
- Others 3.71 3.06
Insurance 26.16 14.85
Export Expenses 64.69 112.29
Foreign Exchange Fluctuations : -
- on forward contracts & PCFC 632.84 373.94
- on realisations 95.52 14.64
Auditors Remuneration :
- Audit Fee 2.34 1.05
- Tax Audit Fee 0.31 0.19
- Reimbursement of expenses 0.06 -
Brokerage On Sales 20.07 25.40
Advertisment Expenses 6.04 5.01
Business Promotion Expenses 8.33 4.66
Freight outward Expenses 5.27 9.67
Cash Discount 188.57 22.47
Postage, Telephone & Internet expenses 2.49 3.45
Loss On sale of Fixed asset 0.22 4.87
Legal and Professional Expenses 22.29 8.07
Charity And Donation 2.55 1.76
Fee & Subscription 3.87 2.69
Watch & Ward Expenses 0.53 4.18
Vehicle Expenses 35.23 12.15
Office Expenses 2.42 4.89
Travelling & Conveyance 9.73 5.92
Other Expenses 78.46 84.93
Total 1403.35 857.84
Particulars
on 30.09.2012
For the year ended
Notes Forming Part of the Consolidated Financial Statements
8786 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Other Notes to Accounts
OTHER NOTES TO ACCOUNTS
29. Accounting policies and notes to Accounts of LEAF are setout in financial statements and are not being repeated herein but may
be treated as part and parcel of Accounting policies and Notes to accounts of consolidated financial statements.
30. Figures of previous year have been regrouped and rearranged wherever necessary.
31. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.91.20 millions (Previous year – Rs.600.10 million). Appeal is pending
before ITAT and Punjab & Haryana High Court and the Management is expecting a favourable decision.
b. Claims amounting to Rs.804.21 millions (Previous year – Rs.303.53 millions) by various creditors, suppliers, agents,
various state procurement agencies etc. are pending before various Courts and quasi-judicial authorities.
32. Earning per share is calculated by dividing the profit after provision for income tax by the weighted average number of equity
shares outstanding during the period.
The calculation of Earnings per share (EPS) as disclosed in the Statement of Profit and Loss has been made in accordance with
Accounting Standard (AS)-20 on “Earning per Share” issued by the Institute of Chartered Accountants of India.
Current Period
Profit/(Loss) after Tax (Rs. in millions) (6.45) 95.67
Weighted Average Number of Equity Shares outstanding during the Period 66051095 63190000
Basic Earnings per share (in Rs.) (0.10) 1.51
Weighted Average Number of Equity Shares outstanding during the Period 69330877 63190000
Diluted Earnings per share (in Rs.) (0.09) 1.51
Nominal Value per Share (in Rs.) 2.00 2.00
33. The information with respect to related party transactions entered into by related parties have been duly disclosed in the
respective financial statements.
34. As per the Accounting Standard (AS)-4 “Events Occurring after the Balance Sheet Date”. Events occurring after the balance sheet
date under review, which do not affect the figures as stated in the financial statements normally do not require any disclosure, in
the financial statements although they may be of such significance that may require a disclosure in the report of the approving
authority to enable the users of the financial statements to make proper evaluations and decisions. Since the board of directors of
the company is the approving authority for the financial statements, accordingly, if any such disclosure has been made by the
management of LEAF and its subsidiaries in the respective reports of the board of directors of LEAF and its subsidiaries.
PreviousY ear
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
(Rs In Millions)
For the period ended
on 31.03.2014
NOTE:- 28
Other Expenses
Power & Fuel 122.13 79.26
Labour charges 29.05 31.16
Rent office 12.88 5.70
Other Consumables 11.50 6.73
Repairs & Maintainance
- Building 1.08 0.50
- Machinary 15.01 14.34
- Others 3.71 3.06
Insurance 26.16 14.85
Export Expenses 64.69 112.29
Foreign Exchange Fluctuations : -
- on forward contracts & PCFC 632.84 373.94
- on realisations 95.52 14.64
Auditors Remuneration :
- Audit Fee 2.34 1.05
- Tax Audit Fee 0.31 0.19
- Reimbursement of expenses 0.06 -
Brokerage On Sales 20.07 25.40
Advertisment Expenses 6.04 5.01
Business Promotion Expenses 8.33 4.66
Freight outward Expenses 5.27 9.67
Cash Discount 188.57 22.47
Postage, Telephone & Internet expenses 2.49 3.45
Loss On sale of Fixed asset 0.22 4.87
Legal and Professional Expenses 22.29 8.07
Charity And Donation 2.55 1.76
Fee & Subscription 3.87 2.69
Watch & Ward Expenses 0.53 4.18
Vehicle Expenses 35.23 12.15
Office Expenses 2.42 4.89
Travelling & Conveyance 9.73 5.92
Other Expenses 78.46 84.93
Total 1403.35 857.84
Particulars
on 30.09.2012
For the year ended
Notes Forming Part of the Consolidated Financial Statements
8786 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Other Notes to Accounts
OTHER NOTES TO ACCOUNTS
29. Accounting policies and notes to Accounts of LEAF are setout in financial statements and are not being repeated herein but may
be treated as part and parcel of Accounting policies and Notes to accounts of consolidated financial statements.
30. Figures of previous year have been regrouped and rearranged wherever necessary.
31. Contingent Liabilities:
a. Income-tax demand raised for the earlier years is Rs.91.20 millions (Previous year – Rs.600.10 million). Appeal is pending
before ITAT and Punjab & Haryana High Court and the Management is expecting a favourable decision.
b. Claims amounting to Rs.804.21 millions (Previous year – Rs.303.53 millions) by various creditors, suppliers, agents,
various state procurement agencies etc. are pending before various Courts and quasi-judicial authorities.
32. Earning per share is calculated by dividing the profit after provision for income tax by the weighted average number of equity
shares outstanding during the period.
The calculation of Earnings per share (EPS) as disclosed in the Statement of Profit and Loss has been made in accordance with
Accounting Standard (AS)-20 on “Earning per Share” issued by the Institute of Chartered Accountants of India.
Current Period
Profit/(Loss) after Tax (Rs. in millions) (6.45) 95.67
Weighted Average Number of Equity Shares outstanding during the Period 66051095 63190000
Basic Earnings per share (in Rs.) (0.10) 1.51
Weighted Average Number of Equity Shares outstanding during the Period 69330877 63190000
Diluted Earnings per share (in Rs.) (0.09) 1.51
Nominal Value per Share (in Rs.) 2.00 2.00
33. The information with respect to related party transactions entered into by related parties have been duly disclosed in the
respective financial statements.
34. As per the Accounting Standard (AS)-4 “Events Occurring after the Balance Sheet Date”. Events occurring after the balance sheet
date under review, which do not affect the figures as stated in the financial statements normally do not require any disclosure, in
the financial statements although they may be of such significance that may require a disclosure in the report of the approving
authority to enable the users of the financial statements to make proper evaluations and decisions. Since the board of directors of
the company is the approving authority for the financial statements, accordingly, if any such disclosure has been made by the
management of LEAF and its subsidiaries in the respective reports of the board of directors of LEAF and its subsidiaries.
PreviousY ear
As per our report of even dateFor SMPS & Co.
Chartered Accountants
(BALBIR SINGH UPPAL) (V.K. MISHRA) (SUKHDEEP SINGH) (CA. SAURABH MISHRA)Chairman & Managing Director Director DGM- Accounts & Taxation PartnerDIN : 00064718 DIN : 00174380 M. No. 402499
FRN. 021622NPlace : Chandigarh (P. C. JAIN) (AJAY K. RATRA) Date : 30.05.2014 Internal Auditor Company Secretary
Financial Details of the Subsidiary Companies
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88 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Financial Details of the Subsidiary Companies
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88 LAKSHMI ENERGY AND FOODS LIMITED Annual Report- st18 Months Ended 31 March, 2014
Lakshmi Energy and Foods LimitedS.C.O. 18-19, 1st Floor, Sector 9-D,Madhya Marg,Chandigarh – 160017 India Tel: +91-172-2740352; Fax: +91-172-2743057
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