SUBSIDIARY COMPANIES - ITC Ltd

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2012 (Contd.)
For the year ended For the year ended
31st March, 2012 31st March, 2011
(`) (`)
18. Revenue from operations
Profit/(loss) on sale of stock-in-trade (*)
Dividend income from mutual funds held
(3,001) 49,71,249
as stock-in-trade
Dividend income from investment in
16,67,85,437 13,58,33,914
equity instruments
Interest Income
4,34,70,632 3,16,05,338
on loans 2,02,11,743 76,31,922
from fixed deposit with bank 7,94,01,558 —
Brokerage income 5,60,98,911 6,15,62,537
Lease and other rentals 3,65,05,256 2,93,09,256
40,24,70,536 27,09,14,216
(*) Profit/(loss) on sale of stock-in-trade
Sales 3570,56,12,281 5859,05,47,086
Less : Purchases 3855,57,61,995 5743,30,93,434
Add / (less) : increase/(decrease) in
(285,01,49,714) 115,74,53,652
closing stock-in-trade 285,01,46,713 (115,24,82,403)
Profit /(loss) on sale of stock-in-trade (3,001) 49,71,249
19 Other income
Interest income
Interest on income tax refund
Net gain on foreign currency transaction
3,448 693
and translation 15,16,976 24,70,485
Profit on sale of fixed assets
Provision for standard assets released
469 93,693
during the year 5,39,420 —
Liability no longer required written back 14,018 —
Miscellaneous Income 13,04,694 37,17,317
33,79,025 62,82,188
20. Employee benefits expense
Salaries and wages 1,27,89,306 1,02,39,097
Contribution to provident and other funds 22,46,195 48,42,648
Staff welfare expenses 6,23,331 5,25,460
1,56,58,832 1,56,07,205
21 Finance cost
Interest on income tax 806 40,41,236
806 40,41,236
24. Additional notes to the financial statements
1. Claims against the Company not acknowledged as debts :
Sales tax claims disputed by the Company relating to issues of applicability-
` 57,99,216/- (2011 – ` 56,20,611/-) .
2. Guarantees and Counter Guarantees outstanding Nil (2011– ` 1,78,605/-)
3. Loans to related parties in note 11 and 16 include :
(a) Loan to a fellow subsidiary, balance as at the year end is as follows:
Wimco Limited (*) – ` 2,00,00,000/- (2011- ` 10,00,00,000)
(b) Interest free loans to fellow subsidiaries, balances as at the year end are
as follows:
Technico Pty Limited, Australia (#) – ` Nil (2011 – ` 2,30,53,750/-).
Technico Agri Sciences Limited (#) – ` Nil (2011 – ` 12,00,00,000/-).
(c) The maximum indebtedness during the year :
Wimco Limited (*) – ` 55,00,00,000/- (2011- ` 30,00,00,000/-)
Technico Pty Limited, Australia (#) – ` 2,30,53,750/- (2011– ` 2,30,53,750/-).
Technico Agri Sciences Limited (#) – ` 12,00,00,000/- (2011 –
` 12,00,00,000/-).
(*) Subsidiary till 28.09.2011. Fellow subsidiary with effect from 29.09.2011
(#) Subsidiary till 25.03.2012. Fellow subsidiary with effect from 26.03.2012
4. Expenditure in foreign currency during the year:
Market research expenses : ` Nil (2011 - ` 1,11,487/- )
5. Value of imports during the year (C.I.F. basis) :
Capital Goods : ` 6,87,39,801 /- (2011-Nil)
6. Earnings Per Share : For the year ended For the year ended
31st March, 2012 31st March, 2011
Profit after tax (`) 31,43,35,033/- 19,97,14,095/-
Weighted average number of equity
shares outstanding 64,64,78,737 64,64,78,737
Basic and diluted earnings per share in
Rupees (Face Value – `10/- per share) ` 0.49 ` 0.31
11. Maturity pattern of certain assets and liablities :
7. The status of the petition filed by an individual in the High Court at Calcutta,
seeking an injunction against the Company’s Counter Offer to the shareholders
of VST Industries Limited, is outlined in the Report of the Directors.
8. Segment Reporting - The Company operates in a single business segment i.e.
Financial Services and in a single geographical segment.
9. Capital to Risk Adequacy Ratio:
Items 31st March, 2012 31st March, 2011
(i) CRAR (%) 114.55 99.32
(ii) CRAR - Tier I capital (%) 114.54 99.30
(iii) CRAR - Tier II Capital (%) 0.01 0.02
10. Exposure to Real Estate Sector:
Category 31st March, 2012 31st March, 2011
(a) Direct exposure
(i) Residential Mortgages Nil Nil
(ii) Commercial Real Estate Nil Nil
(iii) Investments in Mortgage Backed
Securities (MBS) and other
securitised exposures -
a. Residential, Nil Nil
b. Commercial Real Estate Nil Nil
(b) Indirect Exposure
Fund based and non-fund based
exposures on National Housing Bank
(NHB) and Housing Finance
Companies (HFCs). Nil Nil
(` in Lakhs)
1 to 30/31
days
(one month)
Over 1
month to
2 months
Over 2
months to
3 months
Over 3
months to
6 months
Over 6
months to
one year
Over
1 year to
3 years
Over
3 years to
5 years
Over
5 years
Total
Liabilities
Borrowings from Banks — — — — — — — — —
Market Borrowings
Assets
— — — — — — — — —
Advances
Investments
—
54206.72*
— — — — — — — —
1 — — — — — — 15021.02* 2 69227.74
* 1 Investments classified as Inventories as per Note 13
* 2 Investments classified as Non Current Investments as per Note 10
12
RUSSELL CREDIT LIMITED
For the year ended For the year ended
31st March, 2012 31st March, 2011
(`) (`)
22 Other expenses
Rent 9,28,371 8,28,000
Bank, custodial and depository charges
Repairs and maintenance
29,828 3,61,036
Buildings 1,68,240 1,68,240
Electricity charges 4,37,098 3,92,347
Travelling and conveyance 84,585 62,088
Rates and taxes 24,204 24,600
Professional and legal fees
Payment to auditor
13,71,144 3,39,348
As auditors- statutory audit 1,50,000 1,50,000
For taxation matters (*) 75,000 1,00,000
For other matters (*) 1,50,000 2,00,000
Reimbursement of expenses (*) 4,812 30,499
Communication expenses 25,624 26,177
Printing, stationery and periodicals 75,471 69,589
Donation (**) — 1,50,00,000
Provision for standard assets — 8,54,154
Miscellaneous expenses 8,31,789 8,77,167
43,56,166 1,94,83,245
(*) Paid to the erstwhile auditors, ` Nil ( 2011- ` 3,30,499/-) a firm in which some
of the partners of the statutory auditors firm are partners
(**) Donation of ` 1,50,00,000/-, was made to All India Congress Committee of
the Indian National Congress in 2011
23 Tax expense
For the year ended For the year ended
31st March, 2012 31st March, 2011
(`) (`)
Current tax
- for the year 6,00,00,000 3,00,00,000
- for earlier years (913) (23,68,576)
(A) 5,99,99,087 2,76,31,424
Deferred tax
- for the year (8,82,260) (13,64,526)
(B) (8,82,260) (13,64,526)
(A+B) 5,91,16,827 2,62,66,898