|Note 1.1: Company Information
Arshiya International Limited (the 'Company') is engaged in the
business of providing end-to-end logistics solutions by way of unified
supply chain infrastructure and warehousing facilities along with value
added services and end-to-end transportations.
The Company has developed a Free Trade Warehousing Zone at Sai village,
Panvel in the state of Maharashtra. Government of India vide its
notification no. S.O. 1158(E) dated May 4, 2009 has notified the
aforesaid area as a Free Trade Warehousing Zone under the provisions of
Special Economic Zone Act, 2005 and the Special Economic Zone Rules,
The Company's equity shares are listed on the Bombay Stock Exchange
Limited (BSE) and the National Stock Exchange (NSE).
2. a. Contingent liabilities not provided for:
(Amount in Rs
Sr. 2013 2012
i) Disputed income tax demands 122,197,838 4,350,076
ii) Claims against the Company
not acknowledged as debts 167,741,290 55,222,057
iii) Guarantees/ Letter of
credit issued by banks
(net of liabilities 4,499,004 9,576,448
iv) Guarantees given on behalf
of subsidiaries. Loans
outstand- 15,291,519,332 12,119,332
ing (including interest
accrued and due
against such guaran-
tees is Rs 12,613,786,374
b. Capital and other commitments
i) Estimated amount of contracts remaining to be executed on capital
and other account and not provided for (net of advances paid) is Rs
987,560,296 (Rs 1,214,173,468).
ii) The Company has also provided security (included in 22(a)(iv)
above) to the lenders for loan granted of Rs 4,000,000,000 (Rs
4,000,000,000) to its subsidiary viz. Arshiya Rail Infrastructure
iii) The company has committed to provide continued need based
financial support to subsidiaries.
3. The Company has not received any intimation from "suppliers"
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence the disclosures, if any, relating to
amounts unpaid as at the year end together with interest payable as
required under the said Act have not been given. This has been relied
upon by the auditors.
4. a. In the opinion of the management, current assets, loans and
advances and current liabilities are approximately of the value stated,
if realised / paid in the ordinary course of business. Provision for
all known liabilities is adequate and is not in excess of amounts
considered reasonably necessary.
b. The company has sent confirmation letters for confirming the
balances as on March 31, 2013 of trade receivables, trade payables,
advances and loans/credit facilities from banks/financial institutions.
However, certain trade receivables, trade payables and loans/credit
facilities from banks/financial institutions are subject to
confirmation and reconciliation. The difference, if any, will be
adjusted on final reconciliation/determination.
5. a. Revenue from logistic operations (Refer note 17) mainly
comprises of freight and forwarding income, clearing and handling
charges, other related income and also includes related commission
income of Rs. 212,760,595 (Rs. 470,380,202).
b. Cost of logistic operations (Refer note 19) mainly comprises of
freight and forwarding expenses, clearing and handling charges and
other related expenses.
6. Disclosure pursuant to Accounting Standard 15 (Revised) - Employee
a. Brief descriptions of the plans
The Company's defined contribution plans are Provident Fund and
Employees State Insurance where the Company has no further obligation
beyond making the contributions. The Company's defined benefit plans
include gratuity. The employees are also entitled to leave encashment
as per the Company's policy.
b. Defined benefit plan - Gratuity (Funded)
7. Segment information
Primary Segment Information
The Company operates in two primary reportable business segments, i.e.
"Logistics operations and related services" and Free Trade Warehousing
Zone ('FTWZ') operations" as per Accounting Standard 17 - "Segment
8. There is no amount due and outstanding to be credited to Investor
Education and Protection Fund as at March 31, 2013.
9. Related party disclosures, as required by Accounting Standard 18
"Related Party Disclosures" as given below.
Note : Percentage given in bracket are of previous year.
@ 6.63 % (6.63%) held through Arshiya Hongkong Limited
* 9.89 % (9.89%) held through the Company
$ 48.33 % (48.33 %) held through Arshiya Hongkong Limited
$S 14.05 % (16.44 %) held through Cyberlog Technologies (UAE) FZE
# Merged with the Company w.e.f 1 April 2012 pursuant to the Scheme of
Amalgamation as referred in Note 40 ## Deregistered / dissolved on
March 28, 2013
a. (I) Key Management Personnel
Mr. Ajay S. Mittal - Chairman and Managing Director
Mrs. Archana A. Mittal - Joint Managing Director
Mr. Sandesh R Chonkar- Chief Financial Officer and Executive Director
Mr. V. Shiykumar- Executive Director (resigned w.e.f. May 14, 2012)
(II) Relative of Key Management Personnel
Mr. Ananya Mittal - General Manager (Business Development) - August 6,
2012 to September 30, 2012.
b. Other related parties with whom transactions have taken place
during the year or balances outstanding as at the reporting date.
Bhushan Steel Limited, Arshiya Lifestyle Limited.
The related party relationships have been determined by the management
on the basis of the requirements of the AS-18 and the same have been
relied upon by the auditors
The nature and amount of transactions with the above related parties
are as follows
10. Disclosure pursuant to Accounting Standard 19 - Leases
The Company has acquired vehicles under finance lease. Details of lease
rentals payable are as follows
a. In respect of assets given on cancellable operating lease
The company has entered into an agreement with its wholly owned
subsidiary and others for leasing of part of the Pallet positions, Open
yard area, Temperature Controlled Warehouse, Warehouse Floor space,
Warehouse mezzanine floor space at its FTWZ Sai Village Panvel-
Lease income recognised in respective of operating leases is Rs.
b. In respect of assets taken on non-cancelable operating lease
The Company has entered into operating lease arrangements for 3-5 years
renewable at the option of the lessor and lessee. The lease arrangement
provides escalations clause for increase in rent during the tenure of
the lease. Under certain arrangements, refundable interest free
deposits have been given.
In view of loss for the year as calculated as per the provisions of the
Income Tax Act, 1961 (The "Act"), no provision for taxation has been
made. However, while computing the provision for taxation, income tax,
if any, payable due to disallowance of expenses u/s 40(a)(i) of the Act
on account of non-payment / non -deduction of Tax Deducted at Source as
per chapter XVIIB and disallowances of certain expenses, if any, u/s
43B due to non-payment on or before due date of filing return of income
has not been considered, as according to the management, all above dues
will be paid before due date of filing of return of income.
12. Scheme of Amalgamation of Arshiya FTWZ Limited ("AFTWZL") and
Arshiya Domestic Distripark Limited ("ADDL") with the Company.
a) A Scheme of Amalgamation ("The Scheme") of Arshiya FTWZ Limited
("AFTWZL") and Arshiya Domestic Distripark Limited ("ADDL") with the
company as sanctioned by Hon'ble High Court, Bombay on 07 December
2012. The Scheme became effective on 04 January 2013 on filing with the
Registrar of Companies and consequently, the entire undertaking of the
transferor companies including all assets, liabilities and reserves,
vested in the Company on appointed date 01 Aprii 2012.The Scheme is,
accordingly given effect in these accounts.
b) The Amalgamation is accounted for as per "Pooling of Interest"
method prescribed under Accounting Standard 14
"Accounting of Amalgamations". Pursuant to the Scheme:
i) Assets and liabilities of AFTWZL and ADDL as at 1 April 2012 have
been taken over at their book values.
ii) The book value of Company's investments in the equity shares of the
AFTWZL and ADDL and inter-company loans and advances have been
cancelled. Accordingly, nosharesareallottedtoshareholdersof
AFTWZLandADDLrespectively as all the shares of AFTWZL and ADDL are held
by the Company on record date.
iii) The difference being shortfall of the net assets and reserves of
ADDL and AFTWZL transferred to the Company, cancellation of
inter-company investments etc., after making the above adjustments has
been accounted as under:
13. Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with current year's classifications /
disclosures. Current year's figures are not comparable with that of
previous year's figure due to Scheme of Amalgamation as referred in
note 40 and in view of capitalization in current and previous years.