Loan from Andhra Bank by way of Cash Credit is secured by Hypothecation of Raw Materials, Finished goods and book debts. Land & Buildings, Plant & Machinery situated at Durga Dairy Unit, Nunna is offered as Colletral security. It is further secured by personal guarantee of GVSL Kantha Rao, Managing Director, M. Himaja Director, P.V Sri Hari Director & CFO, M.V. Subba Rao Director, P. Bhaskar Rao Director.
1. EARNINGS PER SHARE(EPS)
Basic EPS is calculated by dividing the profit for the year attributable to the equity share holders of the Company by the weighted average number of Equity shares outstanding at the end of the year.
2. RELATED PARTY RELATIONSHIPS, TRANSACTIONS & BALANCES
a) Key Management Personnel (KMP)
Mr. G.V.S.LKantha Rao, Managing Director Mr. P. V. Sri Hari, Chief Financial Officer Mr. Adi Venkata Rama, Company Secretary
b) Names of the related parties with whom transactions were carried out during the period and description of relationship:
Relatives of Key Management Personnel
K. Praveen
Enterprises in which KMPs or their relatives exercise significant influence:
a. Crane Infrastructure Limited
b. Crane Global Solutions Limited
c. Virat Crane Agri Tech Limited
d. Virat Crane Bottling Limited
c) Disclosure of related party transactions
Managerial Remuneration
GVSL Kantha Rao - Rs. 42,00,000
Salary & Allowances
K. Praveen - Rs. 12,00,000
a. Corporate Guarantees
The Company has given Guarantee of Rs. 10.00 Crores to IDBI taken by Virat Crane Bottling Limited. The Company is contingently liable for equal amount of guarantee given to Virat Crane Bottling Limited and is not provided in the books of account.
3. FINANCIAL INSTRUMENTS:
Capital Management:
Company’s Capital Management objectives are to:
- ensure the company’s ability to continue as a going concern
- provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
For the purpose of the Company’s Capital Management, capital includes issued capital and all other equity reserves. Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of financial covenants.
Financial Risk Management Framework
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established a Risk Management Framework which is reviewed and monitored by the Risk Management Committee. The Committee reports regularly to the board of directors on its activities.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate limits and controls and to monitor risks and adherence to limits. The Company, through its training and established procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company’s activities expose it to Credit risk and Liquidity risk.
Credit Risk
Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss.
Based on the overall credit worthiness of Receivables coupled with their past track record, Company expects No/Minimum risk with regard to its outstanding receivables. Also, there is a mechanism in place to periodically track the outstanding amount and assess the same with regard to its realisation. Company expects that all the debtors will be realised in full, and accordingly, no provision has been made in the books of account for doubt receivables.
Liquidity Risk
The Company’s principal sources of liquidity are cash and cash equivalents, working capital facility with banks and the cash flows that are generated from operations.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring, forecasting and actual cash flow and by matching the maturity profiles of financial assets and liabilities.
4. FIRST ADOPTION OFIND AS:
These financial statements for the year ended 31st March, 2018 are the Company’s first financial statements prepared in accordance with Ind - AS. For the periods upto and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with Statutory reporting requirements in India immediately before adopting Ind - AS (PREVIOUS GAAP). Accordingly the Company has prepared its financial statements which comply with the Ind-AS applicable for periods ending on or after 31st March 2018 together with the comparative data as at and for the year ended 31st March 2017 as described in the significant accounting policies.
In preparing these financial statements, the Company’s Opening Balance Sheet was prepared as at 1st April 2016, the Company’s date of transition to Ind - AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April 2016 and the financial statements as at and for the year ended 31st March 2017.
Optional exemptions and mandatory exemptions
In preparing these financial statements the Company has applied the below mentioned optional exemptions and mandatory exemptions.
A. Optional Exemptions availed:
Property, plant and equipment and intangible assets: As per Ind AS 101 an entity may elect to:
(i) measure an item of property plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date
(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the revaluation, broadly comparable to:
-fair value;
- or cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general or specific price index.
The elections under (i) and (ii) above are also available for intangible assets that meets the recognition criteria in Ind AS 38, Intangible Assets, (including reliable measurement of original cost); and criteria in Ind AS 38 for revaluation (including the existence of an active market).
(iii) use carrying values of property, plant and equipment and intangible assets as on the date of transition to Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.
The Company has availed the exemption available under AS 101 to continue the carrying value of its plant, property and equipment as recognised in the financial statements as at the transition date to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition i.e. 1.4.2016
B. Mandatory exemptions
1. Estimates
As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.
As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).
The Company’s estimates under Ind AS are consistent with the above requirement.
2. Derecognition of financial assets and liabilities
As per Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, Financial Instrument, prospectively for transactions occurring on or after the date of transition to Ind AS. However, an entity may apply the derecognition requirements retrospectively from a date chose by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.
The Company has elected to apply derecognition principles of Ind AS 109 prospectively as reliable information was not available at the time of initially accounting for these transactions.
3. Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.
First Time Ind - AS adoption reconciliations
The effect of the company’s transition to Ind-AS is summarized in this note as follows:
5. INVESTMENTS:
Durga Dairy Limited before merger and Virat Crane Industries before merger have pledged their investments in the Equity shares totalling to 35,81,300 equity shares (Durga Dairy Limited - 16,62,900 & Virat Crane Industries Limited - 19,18,400)of Virat Crane Agri tech Limited to IDBI for the loan grated by IDBI to Virat Crane Agri Tech Limited vide their agreement for pledge of shares dated 19-04-2001 for Rs. 177.30 Lakhs term loan sanctioned to Virat Crane Agri Tech Limited.
6. PROPOSED DIVIDEND:
The Board of Directors of the Company at their meeting held on 30th May 2018 have recommended a final dividend for the year 2017-18 at the rate of Rs.0.50 per equity share of Rs. 10 each. The said dividend is payable subject to its declaration by the shareholders of the Company in the ensuing Annual General Meeting of the Company.
7. DEFERRED REVENUE EXPENDITURE:
Deferred Revenue Expenditure of Rs. 21,15,000 is fully written off in this year.
8. MICRO, SMALL AND MEDIUM ENTERPRISES:
The identification of Micro, small and medium enterprises as defined under the provisions of “Micro, Small and Medium Enterprises Act, 2006” is based on Management’s knowledge of their status. There are no dues to Micro, small and medium enterprises as on 31st March 2018,31st March 2017 or 1st April 2016.
9. EVENTS AFTER THE REPORTING PERIOD:
No adjusting or significant events have occurred after the reporting period.
10. Balances of sundry debtors & Creditors are subjected to confirmation.
11. Previous year’s figures have been regrouped wherever necessary.
12. The previous year’s financial statements were audited by a firm other than M/s. Anantha & Associates.
NOTES TO THE FINANCIAL STATEMENTS
13. REPORTING ENTITY VIRAT CRANE INDUSTRIES LIMITED (‘The Company’) is a public limited company incorporated in India and has its registered office in Guntur, Andhra Pradesh, India. The Company has its primary listing on the BSE Limited, India.
The Company is a pioneer in production of Dairy products. It is engaged in the business of procurement and processing of Milk and Milk Products like Ghee, Curd and Butter Milk etc. It caters to the needs of retail trade sector. The financial statements are approved for issue by the Company’s Board of Directors on May 30,2018.
14. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
14.1 Statement of Compliance
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant amendment rules issued thereafter.
Effective April 1,2017, the Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First- time Adoption of Indian Accounting Standards.
Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Amounts for the year ended March 31, 2017 and as at March 31,2017 were audited by previous auditors - M/s Nagaraju&Co.
As the year-end figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add up to the year-end figures reported in this statement.
14.2 Functional and Presentation Currency:
These financial statements are prepared in Indian Rupees ( ) which is also the Company’s functional currency.
14.3 Basis of Measurement:
The Financial statements have been prepared on the historical cost basis except certain financial assets and liabilities.
14.4 Use of Estimates and judgements:
The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
14.5 Current & Non - Current Classification:
The Company presents assets and liabilities in the balance sheet based on current /non-current classification.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a) it is expected to be realized 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 realized 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. Current assets include current portion of non-current financial assets. All other assets are classified as non-current
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 expected 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 counter party, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The operating cycle of the Company is less than 12 months.
14.6 Measurement at Fair values
A number of Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
The Company has an established control framework with respect to the measurement of fair values. The finance team has the overall responsibility for all significant fair value measurements, including Level 3 fair values.
Significant valuation issues are reported to the Company’s audit committee.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
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