1 COMPANY INFORMATIONS
The Malabar Trading Company Limited ("The Company") was incorporated on
18th April, 1980 under the Companies Act, 1956. The company made its
maiden public issue during June 1980 aggregating Rs. 3.00 lacs for
raising working capital and meeting issue expenses. The paid-up capital
of the Company post listing in 1980 was Rs. 5,00,000 divided into
50,000 equity shares of Rs. 10 each. The Company was incorporated with
the main object of trading; acting as distributors, commission agents
etc. Presently the registered office of the Company is situated at
228/A, Lower Ground Floor, Dreams The Mall, L B S Marg, Bhandup (W),
In February, 2011, the Company altered its objects clause by inserting
objects relating to (i) Hospitality Entertainment and related
activities (ii) Healthcare related activities (iii) Agro food produce,
production and process including forward and back integration and (iv)
Infrastructure and construction activities, to be carried on either
directly or indirectly through joint venture/wholly owned
subsidiaries/acquisition of strategic stake in such entities in the
respective fields or otherwise and also obtained the approval of
members u/s 149(2A) of the Companies Act, 1956 to carry on these newly
In March, 2011, the Company issued 15,00,000 equity shares of Rs. 10
each at a premium of Rs. 62 per share upon conversion of warrants. In
August, 2011, the Company announced issue of Bonus Shares in the ratio
of 6 equity shares as bonus shares against every 1 share held. Post
bonus, the present paid-up share capital of the Company is Rs.
10,85,00,000 divided into 1,08,50,000 equity shares of Rs. 10 each.
The Company had acquired 99.87% stake in M/s IADFAC Laboratories
Private Limited ("ILPL") a Company engaged in lab testing of Dairy,
Food and other products. ILPL has ISO 17025 Certification, BIS, Egmark
& more. Further, the Company had also acquired 97.26% stake in M/s
Protect Nature Private Limited ("PNPL"), a Company engaged in the
business of agro food produce, production and process including forward
and backward integration including manufacturing of fertilizers.
Pursuant to the said acquisitions, ILPL and PNPL became subsidiaries of
Further the company had allotted 92,40,000 Convertible Preferential
Share Warrants on preferential basis to other then promoter at face
value of Rs. 10 each with a premium of Rs. 25/- per share pursuant to
the preferential issue of equity shares.
During the financial year 2013-14, company had sold 789000 unquoted
equity shares at a total consideration of Rs. 59.18 Lacs of M/s IADFAC
Laboratories Private Limited ("ILPL") (99.87% Holding of "ILPL") and
900000 unquoted equity shares at a total consideration of Rs. 360.00
Lacs of M/s Protect Nature Private Limited ("PNPL") (97.26% Holding of
"PNPL"). Pursuant to the said transfer, company had incurred total loss
of Rs. 141.83 Lacs.
2.a Basis of Preparation
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed by the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956 and
guidelines issued by the Securities and Exchange Board of India (SEBI).
2.b Use of Estimates
The preparation of the financial statements in conformity with GAAP
requires estimates and assumptions that affect the reported balances of
assets and liabilities and disclosures relating to contingent
liabilities as at the date of the financial statements and reported
amounts of income 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
2.c Own Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready for use.
2.b Depreciation and Amortisation
Depreciation on Tangible Assets is provided to the extent of salvage
value of the Assets of the Compant in the manner prescribed in Schedule
II of the Companies Act 2013.
2.e Impairment of Assets
The assets is treated as impaired when the carring cost of the assets
exceeds its recoverable value. The Company assesses at each balance
sheet date whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable amount of the
asset or the recoverable amount of cash generating unit to which the
asset belongs is less than its carrying amount, the carrying amount is
reduced to its recoverable amount. The reduction is treated as an
impairment loss and is recognized in the profit and loss account. If at
the balance sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount.
Investments are classified as long-term based on Management's intention
at the time of purchase. Long term investments are carried at cost.
Inventories include the Traded Goods available for Sale i.e. quoted
equity shares. Value of Inventories includes the Cost of Procuring
Goods and Services, Borrowing Cost (if permitted by AS-16 - "Borrowing
Cost") and any other expenditure incurred in relation to the inventory
necessary to bring that in the Present and Saleable Condition.
Inventory is managed using First in First Out basis as suggested by
Accounting Standard - 2 and valued at Cost or Market Price which ever
2.h. Cash & Cash Equilents
Cash and cash equivalents comprise cash and cash on deposit with banks
and corporations. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
2.1 Provision for Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made.
2.j Revenue Recognition
The company derives its revenue from Interest and Trading of Shares.
Sales of Shares are recognized in accordance with the settlement cycle
of stock exchange. The revenue in respect of Interest Income is
recognized on accrual basis. Rentals are recognized ratably on a
straight line basis over the balance sheet period.
In Statement of Profit & Loss, company has taken the income as the
difference between the value of sale and purchase of shares.
2.k Employee Benefit
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
2.1 Provision for Current & Deferred Tax
Income taxes are accrued in the same period that the related revenue
and expenses arise. A provision is made for income tax annually, based
on the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable. Minimum
alternate tax (MAT) credit is recognized as an asset only when and to
the extent there is convincing evidence that the Company will pay
normal income tax during the specified period. In the year in which the
Minimum Alternative tax (MAT) credit becomes eligible to be recognized
as an asset in accordance with the recommendations contained in
guidance Note issued by the Institute of Chartered Accountants of
India, the said asset is created by way of a credit to the profit and
loss account and shown as MAT Credit Entitlement. Paid in accordance
with the tax laws, which gives rise to future economic benefits in the
form of tax credit against future income tax liability, is recognized
as an asset in the Balance Sheet if there is convincing evidence that
the Company will pay normal tax after the tax holiday period and the
resultant asset can be measured reliably.
Deferred Tax resulting from timing difference between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the date of balance sheet
2.m Earnings per share
Basic earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.