the Subject:- laid the · 2015-08-22 · HP State Civil Supplies Corporation Limited, Bhattakuffar, Shimla-171012 Ph. : 0177-2842281, 2841824, ... consider and adopt the Audited Balance

No.FDS-C- (15)-2t2012Government of Himachal PradeshDepartment of Food, Civil Supplies andConsumer Affairs.

From:

Minister of Food, Civil Supplies andConsumer Affairs. Himachal PradeshShimla-171002.

ToThe Secretary,H.P. Vidhan Sabha,Shimla-171004.

Dated: Shimla-2, the th August,2015

Subject:- 34th Annual Financial Report for the year 2013-14 of HP StateCivil Supplies Corporation Ltd. to be laid down on the Table ofthe House.

Sir,I intend to lay on the Table of the House the 34th Annual

Financial Report (for the year 2013-14) of Himachal Pradesh State Civil Supplies

Corporation Ltd. in the current budget session of the Himachal Pradesh Vidhan

Sabha to "Review the Accounts" as required under Section 619 (A) (4) of the

Companies Act, 1956.

120 copies of the Annual Financial Report 2013-14 (three copies

duly authenticated) are enclosed.

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H.P. STATE CIVIL SUPPLIES CORPORATION LIMITED(A State Government Undertaking)

KASUMPTI, SHIMLA-171009

Block No. 16 & 17 SDA Commercial Complex

th34 ANNUAL REPORT 2013-14

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HIMACHAL PRADESH STATE CIVIL SUPPLIES CORPORATION LIMITED, SHIMLA-9(A State Government Undertaking)

H.P. STATE CIVIL SUPPLIES CORPORATIONLocation of Godowns & Retail Shops

INDEX

WHOLESALE/WHOLESALE GODOWNS 117RETAILS SHOPS 104LPG 54MEDICINE SHOPS 36PETROL PUMP 4APNA STORE 2DIVISIONAL OFFICES 2AREA OFFICES 7HEAD QUARTER SHIMLADISTRICT BOUNDARY ............

ROADS ______

·

HARYANA

UTT

RAKHAND

TI

BE

T

JAMMU AND K

ASHMIR

PU

NJA

B

SCALE : 1"=10 Kms.

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Contents1. Offices 3

2. Notice 5

3. List of Directors 6

4. List of Share Holders 7

5. Name of Bankers 7

6. Name of Auditors 7

7. Executives 8

8. Director's Report 9-11

9. Balance Sheet 12

10. Profit & Loss Account 13

11. Note No. 1-33 14-32

12. Auditor's Report 33-38

13. Comptroller & Auditor General Reports 39

14. Proxy Form 40

1

DIVIDEND

Sh. G. S. Bali, Hon'ble Food Civil Supplies & Consumer Affairs Minister, H.P. cum-Chairman of the Corporation

Ltd. accompanied by Sh. R. D. Dhiman, Principal Secretary (FCS&CA) to the Govt. of H.P. & Priyatu Mandal,

Managing Director of the Corporation alongwith officers of the Corporation presenting a cheque of Rs. 35.15 lac

towards dividend for the financial year 2013-14 to Sh. Virbhadra Singh, Hon'ble Chief Minister H.P.

2

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OFFICES

Head Office...................... SDA Commercial ComplexBlock-16 & 17, Kasumpti, Shimla-171 009Ph. : 2621583, 2628253, 2621951, 2621176, 2621750,2621379, 2620539, 2620737, 2620751, 2628167Fax : 0177-2625537 Gram : SUPCORP

Divisional OfficesDharamshala................... Divisional Manager

HP State Civil Supplies Corporation Limited,Dharamshala, Distt. KangraPh. : 01892-223138 Gram : DIVSUPPLYFax : 01892-223138

Solan................................ Divisional ManagerHP State Civil Supplies Corporation Limited,House No. 31, Housing Board Colony, Phase-II, Saproon, Solan-173212Ph. No. : 01792-223539, 222808 Gram : DIVSUPCORPFax : 01792-223539

Area OfficesShimla.............................. Area Manager

HP State Civil Supplies Corporation Limited, Bhattakuffar, Shimla-171012Ph. : 0177-2842281, 2841824, Fax : 0177-2844138 Gram : AREACORP

Solan................................ Area ManagerHP State Civil Supplies Corporation Limited,House No. 31, Housing Board Colony, Phase-II, Saproon, Solan-173212Ph. : 01792-223454 Fax : 01792-222665 Gram : SUPCORP

Nahan............................... Area ManagerHP State Civil Supplies Corporation Limited,Gunnu Ghat, Nahan, Distt. SirmourPh. : 01702-222258, 225817 Gram : SUPCORPFax : 01702-222258

Dharamshala................... Area ManagerHP State Civil Supplies Corporation Limited,Dharamshala, Distt. KangraPh. : 01892-223069, 225879, 228928 Gram : AREA SUPPLYFax : 01892-223138

Mandi................................ Area ManagerHP State Civil Supplies Corporation Limited,Sanyukat Bhawan,Ram Nagar, MandiPh. : 01905-222153, 225874 Gram : AREA SUPPLYFax : 01905-222153

Chamba............................ Area ManagerHP State Civil Supplies Corporation Limited,Hardaspura, ChambaPh. : 01899-220572 Fax : 01899-220572 Gram : AREA SUPPLY

Hamirpur.......................... Area ManagerHP State Civil Supplies Corporation Limited,Partap Nagar, Ward No. 33, Hamirpur, Distt. HamirpurPh. : 01972-223922, 223925 Gram : AREA SUPPLYFax : 01972-223925

Procurement OfficeBarmana.......................... Assistant Procurement Officer

HP State Civil Supplies Corporation Limited,Barmana, Distt. BilaspurFax : 01978-244009

3

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Turn Over Rs. (Lakhs)

YEARS

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4

Rs. (Lakhs)Capital Employed

YEARS

31

64

0

40

36

0

47

09

6

50

39

8

56

86

6

80

49

2

91

55

9

10

19

36

10

73

30

12

46

77

13

04

67

13

42

26

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14

20

93

20

97

18

83

21

30

20

05

36

58

36

75 41

60

25

04

.56

58

50

.96

29

38

.67

36

63

.44

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14


NOTICE

thNotice is hereby given that the 34 Adjourned Annual General Meeting of the Shareholders of H. P. State Civil Supplies Corporation Ltd. will be held on 26.02.2015 (Thursday) at 04.00 P.M. in the Office Chamber of Hon'ble Minister, Food Civil Supplies & Consumer Affair , H.P. Secretariat, Shimla-2 to transact the following business :-

ORDINARY BUSINESS :

st1. To receive, consider and adopt the Audited Balance Sheet as on 31 March 2014 and the Profit and Loss stAccount for the year ended on 31 March 2014 along with the Reports of the Board of Directors and Auditors

thereon.

2. To declare the dividend, if any.

SPECIAL BUSINESS :

3. Contribution towards the Pension Fund introduced for the employees of the Corporation.

By order of the Board of Directors

(Company Secretary)

Place : ShimlaDated : 07-10-2014

Notes

1) A member entitled to attend and vote at the meeting and is entitled to appoint a proxy to attend and vote on his behalf and the proxy need not be a member of the Company. The instrument appointing a proxy should be deposited at the Registered Office of the Company not less than 48 hours before the commencement of the meeting.

2) The explanatory statement pursuant to section 102 Companies Act, 2013, relating to special business to be transacted at the meeting is annexed hereto.

3) The Members are requested to intimate to the Company regarding the changes of their address if any.

By order of the Board of Directors

(Company Secretary)

Place : ShimlaDated : 07-10-2014

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LIST OF DIRECTORS

Sr. Name & Designation DirectorNo.

1. Sh. G. S. Bali, ChairmanHon'ble Minister FCS&CA, Transport & Tech. Educ. H.P.

2. Sh. Vineet Chawdhry, IAS, DirectorAdditional Chief Secretary (Health & Family Welfare),to the Govt. of H.P.

3. Sh. V. C. Pharka, IAS, DirectorAdditional Chief Secretary to Chief Minister,Himachal Pradesh

4. Dr. Shrikant Baldi, IAS, DirectorPrincipal Secretary (Finance),to the Govt. of H.P. Shimla-2

5. Sh. R. D. Dhiman, IAS, DirectorPrincipal Secretary (FCS&CA),to the Govt. of H.P.

6. Sh. R. Selvam, IAS, DirectorRegistrar,Co-operative Societies, H.P.

7. Sh. Priyatu Mandal (IAS), Director

Director (F,CS&CA) H.P. Shimla-9

8. Sh. Ram Dass Malangar, Non-Official Director

Ex-Deputy Speaker,VPO Malangar, Teh. Bangana,

District Una (H.P.)

9. Sh. Chander Shekhar Sharma, Non-Official DirectorHill View Cottage, Kufridhar,Ghanahatti, Shimla (H.P.)

10. Sh. Rakesh Nagpal (Honey), Non-Official DirectorWard No. 5, Nagrota Bagwan,District Kangra (H.P.)

11. Sh. Desh Raj Non-Official DirectorR/o Vill. Dhalwara, P.O. Larth (Raja Ka Talab)Tehsil Nurpur, District Kangra (H.P.)

12. Sh. Puran Chand Thakur Non-Official DirectorVPO Katindi, Tehsil SadarDistrict Mandi (H.P.)

13. Sh. Vinay Garg, Non-Official DirectorVPO GhurkariTehsil & District Kangra (H.P.)

14. Smt. Suman Verma, W/o Sh. Rajinder Verma Non-Official DirectorWard No. 1, Old Kangra,P.O. Old KangraTehsil & District Kangra (H.P.)

15. Sh. Amitabh Avasthi,IAS, Managing DirectorManaging Director,HPSCSC, Kasumpti, Shimla-9

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LIST OF SHAREHOLDERS

Sr. Name & Address Designation Number No. of Shares

1. Sh. P. Mitra, IAS, Share-holder 3Chief Secretary,to the Govt. of H.P.

2. Sh. V. C. Pharka, IAS, Share-holder 2Additional Chief Secretary to Chief Minister,Himachal Pradesh

3 Sh. Vineet Chawdhry, IAS, Share-holder 2Additional Chief Secretary (Health),to the Govt. of H.P.

4. Sh. P. C. Dhiman, IAS Share-holder 2Additional Chief SecretaryHigher Education/Elementary Education& Information Technology,to the Govt. of H.P.

5. Dr. Shrikant Baldi, IAS Share-holder 200Principal Secretary (Finance),to the Govt. of H.P.

6. Sh. R. D. Dhiman, IAS Share-holder 34937Principal Secretary (FCS&CA),to the Govt. of H.P.

7. Sh. R. Selvam, IAS, Share-holder 1Registrar,Co-operative Societies, Shimla

8. Sh. Priyatu Mandal, IAS, Share-holder 1Director, FCS&CA Shimla

9. Sh. Amitabh Avasthi,IAS, Share-holder 2Managing Director,HPSCSC, Kasumpti, Shimla-9

Bankers H.P. State Co-operative Bank Ltd.Punjab National Bank, State Bank of India, UCO Bank,State Bank of Patiala, The Kangra Central Co-operative Bank Ltd.,Dharamshala, Central Bank of India, Jogindra Co-Operative Bank Ltd., Solan, Bank of Baroda,Axis Bank, HDFC Bank, Yes Bank, IndusInd Bank, ICICI, Punjab &Sind Bank, Bank of India

Statutory Auditors M/s J. K. Jain & Associate C.N.R. 2136, Sector-22 B,S.C.O.-11-3233, 1st Floor Chandigarh-167022Internal Auditors M/s Manish Chanda & Company, Chartered Accountants, C/o CA Vikrant Gupta, B.O. 1st Floor, ICICI Bank, Sai

Road Baddi, Himachal Pradesh.M/s Nagpal Aman & Associates, Chartered Accountants, 65, Industrial Area, Tahliwal, Tehsil Haroli, Distt. Una H.P.M/s Manish K. Gupta & Associates, Chartered Accountants, Amar Bhawan, 239, The Mall Solan H.P.M/s Tilak Varun & Associates, Chartered Accountants, Head Office : 108-109B, City Center Plaza, Near District Court, The Mall, Solan Distt. Solan H.P.

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TELEPHONE NUMBERSOFFICE RESIDENCE

HEAD OFFICE

Sh. G. S. Bali Chairman 2622464 98160-35297Sh. Amitabh Avasthi Managing Director 2621583 94180-08449Sh. Sumit Khimta Executive Director 2621951 94181-55077CA Ajay Mahajan Financial Advisor 2628167 94181-53681Sh. R. G. Patial General Manager 2621951 2628299Sh. T. C. Sharma Finance Manager 2628167 94189-46008Sh. K. R. Rana Distribution Manager 2621176 94181-86399Sh. S. K. Sud Procurement Manager 2624130 94184-85268Sh. R. D. Sharma System Analyst 2621379 2670447Sh. A. S. Tomar Procurement Officer 2624130 94184-58988Sh. H. K. Sharma Sr. Private Secretary 2621583 2807944Sh. J. P. Vashist Sr. Accounts Officer 2628167 94180-29500Sh. R. K. Kashmiri Sr. Account Officer 2628167 98160-60200

Divisional Offices

DharamshalaSh. J.P. Kalia Divisional Manager 0-1892-223138 94180-11007

SolanSh. R. K. Chadha Divisional Manager 0-1792-223539 98160-26903

0-1792-222808Area Offices

MandiSh. Kapil Deep Gupta Area Manager 0-1905-222153 94180-16584

0-1905-225874 94596-56595ShimlaSh. D. R. Sharma Area Manager 0-177-2842281 98166-85095

0-177-2844138DharamshalaSh. M. R. Chambyal Area Manager 0-1892-223069 94186-03895

0-1892-225879ChambaSh. Ramesh Chand Area Manager 95-1899-220572 94180-73500

SolanSh. A. K. Dhawan Area Manager 0-1792-223454 94184-95078

0-1792-222665NahanSh. Pardeep Kumar Area Manager 0-1702-222258 94180-11892

0-1702-225817HamirpurSh. Rajesh Sood Area Manager 0-1972-223925 94182-26120

0-1972-223922BarmanaSh. Vijay Sharma Asstt. Procurement Officer 0-1978-244009 94182-32943

DarlaghatSh. R. K. Valecha Sr. Accountant 0-1796-246554 94180-61883

0-1796-248573

8

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DIRECTORS REPORTToThe Shareholders,H.P. State Civil Supplies Corporation Ltd;Shimla-171009.

Gentlemen,

It gives me immense pleasure in submitting the 34rd Directors Report on Accounts for the financial year ending 31st March, 2014.

The year 2013-2014 has thus indeed been a period of great achievements for your Corporation as the results in respect of all items have been satisfying as would be evident from the details indicated here under:-

Particulars of financial results: (Figures in lacs )

Particulars 2013-14 2012-13

Profit after charging all expenses excluding gratuity, depreciation, 1001.34 1125.60bonus/ex-gratia and interest and bank charges, Pension Fund.

Total 1001.34 1125.60

Less

a) Gratuity 150.00 100.00

b) Depreciation 112.10 101.98

c) Interest & Bank Charges 15.98 39.36

d) Provision for Bonus & Ex-gratia 32.81 32.42

e) Pension Fund 100.00 250.00

Total 410.89 523.76

Profit before Tax 590.45 601.84

Provision for income Tax plus income tax paid during the year 191.57 209.83

Net Profit after Tax 398.88 392.01

Dividend declared 35.15 35.15

Tax on Dividend 5.70 5.70

Surplus carried forward 358.03 351.16

Cumulative Surplus 2872.09 2514.06

Further, it is also submitted that during the financial year 2007-08,the State Govt. has launched the State Subsidized Scheme w.e.f. 01.04.07 and under this scheme, the three pulses, edible oils ( Mustered & Refined ) and salt of 35094.84 lakhs has been distributed during the financial year 2013-2014 by the Corporation without any margin. Apart from this, the provision of Rs. 100.00 lacs has also been made in the accounts for approved pension scheme for the employees of the Corporation. Further, we are to inform that the Corporation has been authorized by the State Government during 2011-12 to mobilize the supply of Cement under Mnrega vide its letter No. 1585-1586 dated 3.6.2010. Accordingly, the Corporation has earned the handling charges amounting to 168.87 Lacs during 2013-2014.

Dividend:-

Your Directors have the pleasure in recommending for your approval payment of dividend to the State Government amounting to Rs. 35.15 lacs on the paid-up share capital @ 10% (Rs. 100.00 per share) after tax for the year ended 31st March, 2014.

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Share Capital:-

The authorized share capital of the Corporation remained at the level of financial year 2012-13 i.e. at Rs. 800.00 lacs and paid-up share capital also remained the same as in the last financial year i.e. Rs. 351.50 lacs. No fresh subscription towards the equity of the Corporation was received from the State Government during the year under report.

Broad details of commodity-wise turnover:-

(Figures in lac)

Particulars 2013-2014 2012-13

Levy Sugar 8464.54 7928.44

Free Sale Sugar 915.65 706.04

Edible Oils 1530.93 1781.84

Wheat Atta 16733.47 17063.47

Wheat 3988.04 6480.16

Cement 127.90 339.35

Cloth 8.57 83.15

Iodized Salt 140.40 16.15

Rice 14955.20 16672.29

Exercise Book 19.58 38.70

Pulses 503.64 1939.14

Kerosene Oil 263.27 242.66

Medicine 5386.25 4809.13

LPG Cylinders 16669.75 12701.92

G.I./CGI Sheets 203.62 210.50

LPG Hot Plates & Pipes 422.64 355.44

State Subsidized Scheme 35094.84 23872.13

Others 16181.57 16951.51

Total: 121609.86 112192.02

Position of Government supplies remained as follows:-

Sr.No. Particulars Current year Previous year

1 Government Cement 15098.73 18343.79

2 Medicines 2682.52 2064.57

3 GI/D.I./C.I pipes 7626.18 11288.10

5 Total 25407.43 31696.46

Abstract of Turnover:-

S.No. Particulars Current year Previous year

1 Gross turnover of sales 121609.86 112192.02

2 Less Technical sales of PDS wheat to Mills 12791.38 13421.26

3 Actual turnover of sales 108818.48 98770.76

4 Turnover of Govt. supplies 25407.43 31696.46

5 Total trading turnover 134225.91 130467.22

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Public Deposit:-

The Company has not accepted any deposit during the year under review.

Energy conservation, Technology Absorption, Foreign Exchange earning and out go:-

There had been no applicability of energy and its conservation, technology absorption and foreign exchange earnings and out-go as required under the Companies (Disclosures of Particulars in the Report of Board of Directors) Rule, 1988.

Particulars of employees U/S 217 (2A):

There had been no employee who was in receipt of remuneration of Rs. 2,00,000/- p.m. and in aggregate Rs. 24,00,000/- p.a. during the year under report.

Directors Responsibility Statement u/s 217( 2AA)

i) That in the preparation of the annual accounts the applicable accounting standards had been followed along with proper explanation relating to material departures.

ii) That the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent to as to give a true & fair view of the State of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period:,

iii) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud & other irregularities.

iv) That the Directors had prepared the annual accounts as on- going concern basis.

Auditors:-

M/S J. K. Jain & Associates, Chartered Accountants, were appointed Auditors of the Corporation by the Central Govt. in pursuance of section 619 of the Companies Act, 1956 for the financial year 2013-2014.

The audited statement of accounts alongwith reports of Auditors are enclosed. The review of accounts of the Corporation for the year 2013-2014 is also appended as annexure to the Report.

Auditor's Report:-

Auditor's observations are self-explanatory and are suitably explained in the Notes to the Accounts.

Industrial Relations:-

The relations between the management and the employees of the Corporation remained cordial during the year under review.

Acknowledgements:-

The Directors gratefully acknowledge the continuing support and assistance provided by the Departments of Finance, Food & Supplies, Cooperative, Welfare, Health, Rural Development, Ayurveda, PWD and IPH of the Govt. of Himachal Pradesh, Ministry of PDS and Consumer Affairs, Government of India, Accountant General, Himachal Pradesh, Food Corporation of India, Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation, Advisors and other various Govt. Departments who are dealing with the Corporation.

The Directors would also like to thank the Banks, the sub-wholesalers Cooperative Unions, the Primary Cooperative Societies, the Suppliers and specially the customers for their co-operation and patronage extended to us and the trust reposed by them in the Corporation.

The Directors also wish to place on record their deep sense of appreciation for the sincere and dedicated services rendered by the officers and employees of the Corporation at all levels.

For and on behalf of the Board.

CHAIRMAN

Dated:

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BALANCE SHEET AS AT 31ST MARCH, 2014

Particulars Note Figures as at the Figures as at the No. end of 31.03.2014 end of 31.03.2013

(Amount in lacs) (Amount in lacs)

I. EQUITY AND LIABILITIES

(1) Shareholder's Funds

(a) Share Capital 1 351.50 351.50

(b) Reserves and Surplus 2 2,941.37 2,587.21

(2) Non Current Liabilities

(a)Other long term liabilities 3 370.85 315.55

(3) Current Liabilities

(a) Short-Term Borrowings 4 66.20 61.28

(b) Trade Payables 5 7,505.22 5,146.31

(c) Other Current Liabilities 6 29,405.41 19,578.09

(d) Short-Term Provisions 7 232.42 236.12

Total 40,872.97 28,276.06

II.ASSETS

(1) Non-Current Assets

(a) Fixed Assets 8 718.92 652.61

- Tangible Assets 31.38 13.75

- Capital work in progress

(2) Current Assets

(a) Inventories 9 12,543.03 5,730.84

(b) Trade receivables 10 307.90 291.27

(c) Cash and cash equivalents 11 14,796.40 8,619.58

(d) Short-term loans and advances 12 618.66 1,225.02

(e) Other Current Assets 13 11,856.68 11,742.99

Total 40,872.97 28,276.06

Significant Accounting Policesand Notes on Accounts (Note No. 1 to 32)

For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- Sd/- (Arvind Sharma) (R.C. Bhatia) (Sumit Khimta ) (Priyatu Mandal ) (Dr.Amandeep Garg)Company Secretary Manager Finance Executive Director Director Managing Director

FOR J. K. JAIN & ASSOCIATESCHARTERED ACCOUNTANTS

Sd/-(CA Harish Dua)

PartnerMembership No.506435

PLACE : SHIMLA

DATE : 07.10.201412

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PROFIT & LOSS STATEMENT FOR THE PERIOD ENDED ON 31ST MARCH, 2014

Sr. Particulars Note Figures as at the Figures as at theNo. No. end of 31.03.2014 end of 31.03.2013

(Amount in lacs) (Amount in lacs)

I Revenue from Operations 14 121,609.86 112,192.02

II Other Income 15 1,621.09 1,343.22

III Total Revenue (I +II) 123,230.95 113,535.24

IV Expenses:

Cost of goods sold 16 118,316.24 108,769.92

Employee Benefit Expense 17 3,305.42 3,169.01

Finance Costs 18 15.98 39.36

Depreciation and Amortization Expense 19 112.10 101.98

Other Expenses 20 985.00 860.17

Total Expenses (IV) 122,734.74 112,940.44

V Profit before exceptional & extra ordinary items & tax (III-IV) 496.21 594.80

VI Prior Period Adjustments 94.24 7.05

VII Profit before Tax but after prior period (V+VI) 590.45 601.85adjustments

VIII Tax expense:

Provision for Tax 191.57 195.27

Income Tax paid for Earlier Year 0.00 14.56

IX Profit/(Loss) for the period 398.88 392.02

X Earning per equity share:

(1) Basic 0.01 0.01

(2) Diluted 0.01 0.01

Notes and Significant Accounting Polices referred to above and annexedthere to form an integral part of Profit & Loss Statement

For and on behalf of the Board of Directors

Sd/- Sd/- Sd/- Sd/- Sd/- (Arvind Sharma) (R.C. Bhatia) (Sumit Khimta ) (Priyatu Mandal ) (Dr.Amandeep Garg)Company Secretary Manager Finance Executive Director Director Managing Director

FOR J. K. JAIN & ASSOCIATESCHARTERED ACCOUNTANTS

Sd/-(CA Harish Dua)

PartnerMembership No.506435

13

PLACE : SHIMLA

DATE : 07.10.2014

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Notes on Financial Statement for the year ended on 31st March, 2014

Note No : 1 Share Capital

Sr. No Particulars Current Year Previous Year

(Amount in Lacs) (Amount in Lacs)

SHARE HOLDER'S FUND

SHARE CAPITAL

1 AUTHORIZED SHARE CAPITAL

80,000 Equity Shares of Rs. 1,000/- each. 800.00 800.00

(Previous Year 80,000 Equity Shares of Rs 1,000/- each)

800.00 800.00

2 ISSUED , SUBSCRIBED & PAID UP CAPITAL

35,150 Equity Shares of Rs. 1,000/- each, Fully 351.50 351.50

Paid up

( Previous year 35,150 Equity Shares of 1,000/- each )

Total 351.50 351.50

1.1 The details of Shareholders holding more than 5% shares:


No. of Shares (%) No. of Shares (%)

1 Principle Secretary(FCS&CA) 34937 (99.00%) 34937 (99.00%)

to the govt. of H.P.

1.2 The reconciliation of the number of shares outstanding is set out below:


No. of Shares No. of Shares

1 Equity Shares at the beginning of the year 35,150 35,150

2 Add: Shares issued during the year - -

Equity Shares at the end of the year 35,150 35,150

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Note No : 2 Reserve & Surplus


1 Capital Reserves

(A) Vehicles

Opening Balance 0.10 0.16 (-) Un- utilised subsidy amount refunded to Govt (+) Subsidy received during the year (-) Depreciation on Commercial vehicles for the year 0.04 0.06

Total (A) 0.06 0.10

(B) Godowns

Opening Balance 71.09 74.83 (-) Un- utilised subsidy amount refunded to Govt (+) Subsidy received during the year (-) Depreciation on Commercial vehicles for the year 3.55 3.74

Total (B) 67.54 71.09

( C) Oil Tanks

Opening Balance 1.95 2.26 (-) Un- utilised subsidy amount refunded to Govt (+) Subsidy received during the year (-) Depreciation for the year 0.27 0.31

Total ( C) 1.68 1.95

(D) Computer

Opening Balance 0.01 0.02 (-) un- utilised subsidy amount refunded to Govt (+) Subsidy received during the year (-) Depreciation for the year 0.003 0.01

Total (D) 0.007 0.01

Total (A+B+C+D) 69.28 73.15

2 Surplus (Profit & Loss Account)

As per last Balance Sheet 2,514.06 2,162.89

Add: Profit for the period 398.88 392.02

Less : Proposed Dividend 35.15 35.15

Tax on Proposed Dividend 5.70 5.70

Total 2,872.09 2,514.06

Grand Total 2,941.37 2,587.21



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Note No.3 Other Long Term Liabilities(Unsecured)


1 Working Capital Advance 370.85 315.55"(Advance given by H.P Govt for the implementation of "State subsidized Scheme)

Total (A) 370.85 315.55

Note No: 4 Short Term Borrowings(Secured Loans)


1 Cash Credit from Bank 66.20 61.28(Secured against hypothecation of stocks)

Total (A) 66.20 61.28

Note No : 5 Trade Payables


1 Micro, Small and Medium Enterprises 0 0

2 Others 7,505.22 5,146.31

Total 7,505.22 5,146.31

5.1 The company has not received any information from its suppliers regarding registration. Under the micro small and medium enterprises development act 2006. Hence the information required to be given in accordance with section 22 of the said act is not ascertainable and not disclosed.

5.2 Trade payables have not been reconciled & balances are subject to reconciliation.

Note No: 6 Other Current Liabilities


1 Employee Pension Fund 100.00 250.00

2 Advance from Govt. Deptts. /Customers 19,301.20 14,652.86

3 Security Deposits 3,003.92 1,602.32

4 Advance subsidy received from Govt. 2,798.55 1.59

5 Other payable 4,201.74 3,0171.32

Total 29,405.41 19,578.09


16

corp H PSUP

6.1 During the year a provision of Rs 100.00 lac (previous year Rs. 250.00 lac) has been made under the pension fund scheme approved by the Government of HP vide letter No. FDS-A (4) 6/2004 dated 31.08.2007, payable to employees superannuation fund, total fund transferred to employees superannuation fund and accumulated as on 31.03.2014 amounting to Rs 1500.00 lac. The said pension scheme for employees of the Corporation is however, pending for approval with the RPFC Shimla.

6.2 Other payable includes a sum of Rs. 313.54 lac (previous year Rs. 341.58) payable to banks being unlinked amounts under reconciliation with the banks. As and when respective details are available, necessary adjustments shall be made in the accounts.

6.3 "During the year liability of ex-gratia (in lieu of Bonus) payable to staff amounting to Rs 23.73 lac (Previous year Rs.23.31 lac) has been provided in the accounts @ Rs. 3500/- per employee.

6.4 The liquidated damages amounting to Rs. 3.36 lac ( previous year Rs. 12.69 lacs) deducted from the suppliers towards non fulfillment of the supplies schedule, out of the total amount deducted Rs 0.84 lac has been shown as payable under the head "Other payable" and balance Rs. 2.52 lac treated as Revenue as per the policy.

6.5 Provision for rent of godowns payable has been made on estimated basis in certain cases, pending actual rent assessment by the competent authority.

6.6 Advance from Government Departments/Customers has not been reconciled and balances are subject to reconciliation.

Note No : 7 Short Term Provisions


1. Others

2 Provision for Tax 191.57 195.27

3 Proposed Dividend 35.15 35.15

4 Corporate Dividend Tax 5.70 5.70

Total 232.42 236.12


17

corp H PSUP

Sr.No

1

2

3

4

5

6

7

8

9

10

Particulars

Tangible Assets

Land

Building

Godown & Store Equipments

Weighing Equipment

Electric Appliances

Fire Extinguishers

Typewriters/Dupli/Cal-culators

Furniture & Fixture

Vehicles

Computers ( including soft ware)

TOTAL (Current Year)

(Previous Year

Capital Work in progress

Previous year

Rate Value at the beginning

23.65

761.90

93.77

31.51

13.26

7.74

30.16

147.64

397.03

289.46

1,796.12

1,737.00

13.75

13.75

Addition during the

year

16.15

6.17

0.26

2.68

0.52

0.08

15.46

92.61

48.32

182.25

59.40

27.00

Deduction during the

year

-

-

-

-

-

-

- -

-

-

0.33

9.38

Value at the end

23.65

778.05

99.93

31.78

15.94

8.25

30.24

163.10

489.64

337.78

1,978.36

1,796.10

31.38

13.75

8.1 "The Title of the office building at Mandi (Gross Value Rs. 11.54 lacs) and land of Petrol Pump Gagret & Kingal, godown at Bhabanagar,Pooh, Kullu, Theog, Chango and medicine shop. Theog, Rohru, Dharamshala, Baijnath, Dehra, Nalagarh,Karsog, Kullu, Rajgarh, Nahan, Kangra, Nurpur, Rampur, Tanda,Chamba & Anni does not vest with the Corporation."

8.2 During the year 2001-02 State Govt. had transferred 62 constructed godowns & 28 godowns under construction to the Corporation on token money of Rs. 2/- only. The title of the land of these godowns is not vested with the Corporation.

8.3 The Corporation has taken a building on lease & had paid a sum of Rs. 85.32 lacs (Previous year Rs. 85.32 lac) towards lease money. The depreciation is being provided on the building at the rates prescribed in the Companies Act, as the lease is perpetual.

8.4 The Capital Work in progress includes Rs. 31.38 lacs (Previous year 13.75 lacs) spent for the construction of LPG godown at Solan, Kullu, Shimla Area.The Title & possession of the land is not vested with the Corporation.

HIMACHAL PRADESH STATE CIVIL SUPPLIES(A State Government

Notes on Financial Statement for

Note No : 8 Fixed Asset

Gross Block

18

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19

Addition during the

year

-

21.77

3.02

1.28

0.89

0.62

1.02

5.53

44.08

37.78

115.99

106.11

Deductions during the

year

0.07

Value at the end

-

363.51

79.65

25.03

11.46

7.66

23.87

133.55

355.73

258.99

1259.45

1,143.47

WDV as on 31.03.2014

23.65

414.54

20.28

6.75

4.48

0.60

6.37

29.55

133.91

78.79

718.92

652.61

31.38

WDV as on 31.03.2013

23.65

420.15

17.13

7.76

2.68

0.69

7.31

19.61

85.38

68.25

652.61

699.60

13.75

Value at the beginning

-

341.74

76.63

23.75

10.57

7.04

22.85

128.02

311.65

221.21

1,143.46

1,037.40

CORPORATION LIMITED, SHIMLA-9Undertaking)

the year ended on 31st March, 2014

(Rupees in Lacs)

Depreciaton Net Block

corp H PSUP


Notes on Financial Statement for the year ended on 31st March, 2014Note No: 9 Inventories


1 Closing Stock 11,789.85 5,234.59

2 Stock in transit 746.49 489.74

3 Stationery in hand at cost 6.69 6.51

Total 12,543.03 5,730.84

9.1 Inventories are valued as per method described in significant accounting policies.

9.2 The closing stock of commodities purchased under TPDS Policy (State Subsidized Scheme) valued at purchase price excluding VAT.

9.3 Closing stocks have been taken on the basis of physical verification of stocks conducted at the close of the year. The shortages determined have been classified into normal shortages for which no financial entries have been passed) & abnormal godown shortages of Rs. 22.43 lacs (previous year Rs. 7.57 lacs) have been shown as recoverable from the employees.

9.4

(a) Items of different sizes, qualities, & nature have been clubbed for the purpose of valuation as per past year practice, keeping in view the fact that the Corporation deals in large numbers of misc items with relatively small value. In some cases of institutional supplies, purchases & sales have been booked under different heads.

(b) In the field offices, value of stocks of stationary has not been taken into account being of negligible value.

9.5 Inventory includes slow moving stock costing Rs.7.81 lacs (previous year 9.96 lacs).

Note No : 10 Trade Receivables (Unconfirmed) (Unsecured, Considered good)

Sr.No. Particulars Current Year Previous Year

1 Outstanding for more than six months 166.46 35.71

2 Others 141.44 255.56

Total 307.90 291.27

10.1 The Company has sent letter of balance confirmation to all the parties but only a few have responded so far. So the balance in the party accounts whether in debit or credit are subject to reconciliation.

20

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Notes on Financial Statement for the year ended on 31st March, 2014Note No: 11 Cash & Cash Equivalent


1 Cash-in-Hand

Cash Balance 1.24 0.53

Balance with PDCs 134.29 156.85

Stamps in hand 0.00 0.00

Remittances in Transit 32.99 105.66

Cheques, DDs in hand 49.37 100.06

Imprest with PDCs 14.34 14.43

Sub Total (A) 232.23 377.53

2 Bank Balance with Scheduled Banks

Current Accounts 1442.20 1,006.47

Saving Bank Accounts 3.15 7.06

Collection Accounts 232.26 250.54

Cash Credit Accounts (Dr balance) 5,814.72 3,782.37

Margin Money 2.38 47.78

Fixed Deposits 6,608.52 3,050.00

FDRs jointly with suppliers 3.36 3.36

Sub Total (B) 14,106.59 8,147.58

3 Bank Balance with Non-Scheduled Banks

HP State Coop Bank Ltd.

Cash/Credit Accounts (Dr balance) 107.05 14.98

Collection/Current Accounts 37.44 21.61

Savings Bank Accounts 0.75 1.28

The JCCB Ltd.

Cash/Credit Accounts (Dr balance) 177.08 6.12


The KCCB Ltd.

Cash/Credit Accounts (Dr balance) 92.34


Savings Bank Accounts 2.46 6.63

Himachal Gramin Bank


Sub Total (C) 457.58 94.47

Total [ A+B+C] 14,796.40 8,619.58

11.1 Balances with banks held as margin money & security borrowing guarantees/other commitments for the year are Rs. 2.38 lacs (Previous year Rs. 47.78 lacks)

21

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Note No : 12


1 Advance to Managing Director

2 Loan to Staff 26.79 29.82

3 Advances to Suppliers 492.43 1115.55

4 Other Loans & Advances 67.54 60.14

5. Security Deposits 31.90 19.51

Total 618.66 1225.02


Note No : 13 Other Current Assets


1 Interest accrued but not due 117.78 121.09

2 Prepaid Expenses 21.04 25.66

3 Income Tax Advance/recoverable 626.48 560.59

4 Shortages recoverable from Staff 25.90 28.01

5. Claims recoverable 200.09 58.35

6 Freight Subsidy recoverable from FCI 2,042.02 1,569.97

7 Other Recoverable 8,823.37 9,379.32

Total 11,856.68 11,742.99

13.1 Other recoverable under ' other Current Assets ' include a sum of Rs. 201.15 lac (previous year Rs. 90.67 lac) recoverable from Banks.

13.2 Balance in debit/credit representing amounts/subsidies recoverable from/payable to various Government and other parties are subject to confirmation.

13.3 Variation in claims and other recoverable pending with various agencies shall be accounted for in the year of settlement.

13.4 The State Govt. has implemented state subsidized scheme w.e.f. 01.04.07. As per the scheme three type of Pulses, Iodized salt, two types of edible oils, APL Rice and Wheat Atta are being sold at reduced rates fixed by the State Govt. The differential amount between landed cost and realized amount will be reimbursed by the State Govt. The reimbursement claims of Rs.106.73 Crore , Rs. 74.52 & 129.84 Crore, Rs. 185.51 Crore & 154.42 Crore for the financial years 2009-10 to 2013-14 respectively have been submitted with the Department of FCS&CA. The reimbursement claims for the years are subject to confirmation by the State Govt.

13.5 The Central Government has implemented the PDS Sugar Scheme vide letter No. 19(2)2013-SP. dated 17-5-2014. As per the Scheme PDS Sugar are being sold @ 13.50 per kg. to BPL & Antodya families and 19.50 per kg. to APL families. The difference amount between cost value and realized value will be reimbursed by the Central Government @18.50 per kg. and remaining difference, if any, amount will be reimbursed by the State Government as per their letter No. FDS-F(6)-5/2012-III dated 4th July, 2014.

13.6 The Central Govt. implemented the National Food Safety Act ( NFSA) vide letter No. FDS-A(3)02/2009-1 dated 28-09-2013 as per the scheme Rice, R.G.A.Y and Wheat R.G.A.Y are being sold & Rs. 3/- per kg. and Rs. 2/- per kg respectively to Antodya families only and the difference between landed cost and sale price will be reimbursed by the State Government.

13.7 In the opinion of the Board the value of current assets, loans and advances, if realized in the ordinary course of business shall not be less than the amount at which the same have been stated in the Balance Sheet.

22

corp H PSUP

Note No : 14 Revenue from Operations


1 Sale of Products 121,609.86 112,192.02

Total 121,609.86 112,192.02

Note No : 15 Other Incomes


1 Truck Income 297.96 296.47

2 Rent received (godown/building) 0.74 2.06

3 Handling Charges 387.35 462.68

4 L.P.G. inspection charges 24.22 25.57

5 Interest received from Banks (Gross) 636.01 478.90

6 Interest received from others (Gross) 8.74 3.52

7 Commission received 1.20 2.32

8 Claims received 125.56 5.66

9 Miscellaneous Income 135.95 60.63

10 Medicines freight received 3.36 5.41

Total 1621.09 1343.22

15.1 Corporation has been authorized by the Government of Himachal Pradesh to mobilize the supply of cement under "MNREGA" vide its letter No. 1485-1586 dated 3.6.2010 and accordingly the Corporation has charged the handling charges vide its letter No. 7458-7467 dated 7.6.2010 to the Government of H.P.

15.2 "During the year Corporation has functioned as handling Agent of Government Departments/Institutions for cement, medicines, G.I/D.I Pipes and Uniforms to Elementary Education Department as per the decision of the State Government."

Note No : 16 Cost of Goods sold


1 Opening Stock 5,234.59 5,782.49

2 Purchases 146,725.54 128,421.66

3 Expenditure (Subsidy) 5,454.73 4,846.11

4 Freight Transport & Handling Charges 32.74 81.26

Total (A) 157,447.60 139,131.52

Less :

5 Stock Shortages recovered 33.76 17.80

6 Amount reimbursed (Subsidy) 26,659.01 24,469.41

7 Freight subsidy received from FCI 648.74 639.80

8 Closing stock 11,789.85 5,234.59

Total (B) 39,131.36 30,361.60

Total (A-B) 118,316.24 108,769.92

16.1 The purchases and sales of wheat (custom grinding) amounting to Rs. 127.91 crores (previous year Rs. 134.21 crores) represents purchase of wheat from FCI and sold to Mills at cost price against quota allotment for corresponding purchase of Wheat Atta from the Mills.

23



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Note No : 17 Employee Benefit Expenses


1 Salaries and Wages 2,581.01 2,400.67

2 Contribution to provident and other funds 424.35 533.75

3 Staff Welfare Expenses 265.07 199.41

4 Medical Reimbursement 35.00 35.18

Total 3,305.42 3,169.01

17.1 Salaries and wages includes remuneration paid to Managing Director (5.44 lacs) (previous year 14.67 lacs) .

Note No : 18 Financial Cost


1 Interest Expenses 12.11 25.20

2 Bank Charges 3.87 14.16

Total 15.98 39.36

Note No : 19 Depreciation & Amortized Cost


1 Depreciation 115.97 106.11

2 Less : Dep.met out of Capital Reserve 3.87 4.13

Total 112.10 101.98

24



corp H PSUP

Note No: 20 Other Expenses

A Administration Expenses


1 Rent 215.16 199.82

2 Electricity & Water charges 41.42 35.65

3 Sumptuary Allowance to Vice Chairman 0.00 1.11

4 Travelling expenses Vice-chairman 0.00 0.30

5 Travelling expenses Directors 0.23 0.44

6 Travelling expenses Managing Director 0.61 0.08

7 Travelling Expenses (Staff & Others) 56.39 65.22

8 Postage, Telephone & Telegram Expenses 38.97 29.52

9 Printing & Stationery 57.46 40.10

10 Repair & Maintenance-Building 26.53 15.15

11 Computer Repair 17.07 11.42

12 P.O.L. & Maintenance of vehicles and others 219.97 188.07

13 Legal & Professional Charges 10.19 10.09

14 Insurance Charges 30.94 33.19

15 Rent, Rates, Taxes & Fees 17.41 31.06

16 Recruitment & Training Expenses 1.79 0.00

17 Newspaper, Books & Periodicals 0.84 0.62

18 Auditors Travelling Allowance 1.51 1.49

19 Misc. Expenses 2.20 4.56

20 Fixed Assets written off 0.00 0.00

21 Chief Ministers relief Fund 93.00 30.00

22 Excess provision written off 1.70 17.52

23 Less on Sale of Fixed Assets 0.00 0.08

Total 833.39 715.49

(B) Selling & Distribution Expenses

Sr.No Particulars Current Year Previous Year

1 Incentive/Commission 87.07 124.50

2 Business promotion 4.61 4.56

3 Advertisement 59.26 14.95

Total 150.94 144.01

(C) Payment to Auditors:

Sr.No Particulars Current Year Previous Year

1 Statutory Audit Fees 0.60 0.60

2 Add: Service Tax 0.07 0.07

Total 0.67 0.67

G. Total 985.00 860.17



25

corp H PSUP

Note No: 21 Prior Period Adjustments


1 Income pertaining to Previous Year 0.00 5.57

2 Excess Provision of Previous years written back 94.24 2.07

3 Less : Expenses pertaining to Previous years 0.00 -0.59

4 Balance written off 0.00 0.00

Total 94.24 7.05

Note No: 22 Contingent liabilities

i) Claims against the Corporation not acknowledged as debts Rs. 344.97 lac (previous year 344.97 lac )

ii) Estimated amount of contracts remaining to be executed on capital Rs. 40.41 lac approxaccount not provided for (previous year 40.41 lac )

(b) Others

i) Bank Guarantee to Suppliers Rs. 2.38 lac (previous year 47.78 lac)

ii) In respect of liability towards pending Income Tax & Sales Tax Rs. 445.83 lacsappellate proceedings .(previous year 489.13)



26

corp H PSUP

23. Liabilities, if any, in respect of pending assessment of sales tax/VAT have not been provided being undetermined.

24. Liabilities, if any, in respect of late deposit of tax deducted at source and Service Tax have not been provided being undetermined.

25. One truck of the Corporation had met with an accident at Pagmoh on 22.8.97 in which 18 persons died. Legal heirs of the 17 deceased have lodged claims for Rs. 149.00 lac against the Corporation under Motor Vehicle Act for grant of compensation. The Corporation had made provision of Rs. 90.00 lac as compensation payable during the year 1998-99. Balance amount is shown under "Contingent Liabilities". Now the Hon'ble Court has decided all the cases and given verdict against the Corporation. Accordingly, the Corporation has paid the liabilities in 13 cases amount to Rs. 76.05 lac and partial payment of Rs. 2.00 lac in rest of four cases. The balance liability will be paid as and when the demand received from Insurance Company as per the directions of the Hon'ble Court.

26. Provision of the differential amount of levy sugar margin fixed by the Govt. of India for the financial year 2003-04 and financial year 2004-05 vide their letter dated 21st July, 2006 has not been made in the accounts due to non-conveying of final margins by the Govt. of India.

27. Payment to statutory auditor………….. ............Rs. 60,000/- Add: Service tax Rs. 7,416/- Total Rs. 67,416/-28 Details pertaining to AS-18 on "Related Party Disclosure" issued by ICAI are as under:-

During the year the remuneration and sumptuary allowances paid to Managing Director & Directors of the Corporation and advance recoverable as on 31.3.2012 is as given below:-

S.N. Name of Vice Chairman Sumptuary allowance Advance as on 31.3.20141. (Vice Chairman) -Nil- -Nil- Sr.No Name Salary paid Advance as on 31.3.141 Sh. B.M.Nanta, IAS (MD)

(1.4.2013 to 30.4.2013) Rs. 1,11855.00 -Nil-2 Dr.. Amandeep Garg, IAS (MD)

(1.5.2013 to 19.6.2013) Rs. 4,25,588.00 -Nil-Total Rs. 5,44,139.00

29. Figures for the previous year have been regrouped/re-casted wherever necessary, to make them

comparable with the figures of the current year.30 Cash Flow Statement as required by "AS 3""Cash Flow Statement is enclosed. 31. Deferred tax in accordance with Accounting Standard 22 " Accounting for taxes on Income" has not been

recognized since there are permanent differences in accounting for grant in subsidies received for fixed assets acquisitions as per Balance Sheet ( refer accounting policy 3 (b) and as allowed by Income Tax Act, 1961.

32. Figures are rounded off to the nearest Rupees in lacs.33. Notes 1 to 32 form an integral part of the Balance Sheet and the Profit and Loss Account have been duly

authenticated. Sd/- Sd/- Sd/- Sd/- Sd/- (Arvind Sharma) (R.C.Bhatia) (Sumit Khimta) (Priyatu Mandal) (Dr. Amandeep Garg)Company Secretary Manager Finance Executive Director Director Managing Director

As per our report of even date attached For J.K. Jain & Associates.

Chartered Accountants Firm Registration No.004025N

( CA.Harish Dua )

PartnerPlace : Shimla

Membership No.506435



27Date: 07-10-2014

corp H PSUP

SIGNIFICANT ACCOUNTING POLICIES

1. SYSTEM OF ACCOUNTING

The Corporation follows accrual basis of accounting. The accounts are prepared on a historical cost basis and as a going concern concept. Accounting Policies not referred specifically otherwise, are consistent with generally accepted accounting principles.

2. REVENUE RECOGNITION

Sales comprise of sales of goods and exclude VAT.

3. FIXED ASSETS

a) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation (including other expenses related to installation.)

b) In case of Assets acquired under subsidies/grants, cost of asset is shown at gross value & grant thereon is treated as Capital Reserve .The depreciation on these fixed assets is met out of capital reserve over the period proportionately.

c) Item of assets costing Rs. 5000/-or less are fully depreciated in the year of acquisition.

4. DEPRECIATION ON FIXED ASSETS

a) Depreciation is charged on written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

b) Depreciation is charged on pro-rata basis from the date of addition or as the case may be, up to the date on which the asset has been sold, discarded, demolished or destroyed.

5. INVENTORIES

a) Method of Valuation

i) Subsidized Items In case of principal and subsidized items at

(TPDS) the latest cost excluding VAT plus average

freight or net realizable value whichever is

less.

In case of other items: at weighted average

cost.

ii) New TPDS Policy At actual cost.

(State Subsidized Scheme)

iii) Sugar under PDS At actual cost

(Central/State Subsidized Scheme)

iv) Medicines At actual cost

v) Damaged /obsolete At Retail Shops of Corporation.

At estimated realizable value.

vi) Empties At realizable value or as fixed by Management.

b) Stock-in-transit At cost.

6. RETIREMENT BENEFITS

A) GRATUITY


28

corp H PSUP

The liability towards gratuity as at the year-end is ascertained on the basis of actuarial valuation. Difference between estimated liability and the corpus available in the "Cash Accumulation Scheme" is partially provided for and charged off to revenue. The State Govt. vide their office memorandum No. Fin.(Pen.)A(3)-1/09-Part-I dated 14th October,2009 enhanced the gratuity payment limit from Rs. 3.5 lacs to Rs. 10.00 lac to the retirees from January,2006. The liability for the enhanced value could not be provided due to non receipt of actuarial evaluation from LIC.

B) PROVIDENT FUND

Contribution to the Provident Fund is made in accordance with the provisions of the Provident Fund Act, 1952.

LEAVE ENCASHMENT

Leave encashment benefits are accounted for on accrual basis as per actuarial valuation difference between estimated liability and the corpus available in the "Cash Accumulation Scheme" is partially provided for and charged off to revenue. The State Govt. vide their Office Memorandum No. Fin.(Pen.)A(3)-1/09-Part-I dated 14th October,2009 allow the Leave Encashment payment to the retirees at a revised pay & allowances from January,2006. The liability for the enhanced value could not be provided due to non receipt of actuarial evaluation from LIC.

7. CONTINGENT LIABILITIES

Contingent liabilities are not provided for and are disclosed separately in notes.

8. CAPITAL WORK IN PROGRESS

Comprises advance paid to acquire assets and the cost of assets not yet ready for their intended use at the Balance Sheet date.

ADDITIONAL LIABILITIES ON COMPLETION OF INCOME TAX/SALES TAX/VAT ASSESSMENT.

These are accounted for:

a) In the year in which the demand arises, if accepted by the Corporation.

b) In the year of final decision/settlement in respect of disputed matters under appeal/reference/revision etc.

Sd/- Sd/- Sd/- Sd/- Sd/- (Arvind Sharma) (R.C.Bhatia) (Sumit Khimta) (Priyatu Mandal) (Dr. Amandeep Garg)Company Secretary Manager Finance Executive Director Director Managing Director

As per our report of even date attached

For J.K. Jain & Associates.

Chartered Accountants

Firm Registration No.004025N

( CA Harish Dua )

Partner

Membership No.506435

Place : Shimla

Date: 07-10-2014


29

corp H PSUP

HIMACHAL PRADESH STATE CIVIL(A State Government

INFORMATION REGARDING OPENING STOCKS, PURCHASES, SALES,

Particulars

Levy Sugar Non Levy Sugar

Wheat

Wheat(Custom grinding)

Wheat Atta

Cement(Nos.)

Rice

LPG Cylinders(Nos.)

Others

Total

Total

CYPY

CYPY

CYPY

CYPY

CYPY

CYPY

CYPY

CYPY

CYPY

CY

PY

Quantity Qtl. Kg.

35620.5432986.35

5214.006628.27

144120.72117489.91

00

29964.2624103.62

84175232

207286.77180569.57

3977518885

00

0

0

Rs. in lacs

465.85431.61

182.68205.22

560.57425.98

00

222.47187.08

23.4614.79

1075.16849.17

173.1074.58

2531.403594.06

5234.59

5782.49

Quantity Qtl. Kg.

588924.52583432.39

17449.2017332.42

1147489.371473413.91

2090358.382167629.71

1991722.512045621.59

69240124272

2121450.322379292.86

26069122771398

00

0

0

Rs. in lacs

17283.6312437.47

2683.12634.29

3685.986089.13

12791.3813421.26

15022.6215752.45

188.82344.68

13261.5315303.83

15959.7612068.79

65848.7052369.76

146725.54

128421.66

NOTE: CY - Current Year ; PY- Previous Year ; Quantity rounded off to nearest kg.The closing value of stocks lifted under welfare scheme i.e. rice 15028 qtls. and wheat 2048 qtls and rice previous year 17561 qtls. and wheat 2882 qtls. taken at nil value.

S. No.

1

2

3

4

5

6

7

8

9

10

Opening Stock Purchase During the Year

Annexure A

Place : ShimlaDate : 07/10/2014

Sd/- Sd/- Sd/- (Arvind Sharma) (R.C. Bhatia) (Sumit Khimta)Company Secretary Manager Finance Executive Director

30

corp H PSUP

31

SUPPLIES CORPORATION LIMITED, SHIMLA-9UndertakingSHORTAGES AND CLOSING STOCKS FOR THE YEAR ENDED 31-3-2014

Quantity Qtl. Kg.

550785.55580750.21

20501.7618742.48

1201342.141446360.85

2090358.382167629.71

2006909.382038839.05

73724121062

2182872.792349563.91

26018482750039

0--

0

--

Sd/- Sd/- (Priyatu Mandal) (Dr. Amandeep Garg) Director Managing Director

As per our report of even date attachedFOR J. K. JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-(Harish Dua)

Partner M. No. : 506435

Rs. in lacs.

8464.547928.44

915.65706.04

3988.046480.16

12791.3813421.26

16733.4717063.47

127.90339.35

14955.2016672.29

16669.7512701.92

46963.9336879.09

121609.86

112192.02

Qtl. Kg.

43.8447.99

2.714.20

439.40422.25

00

619.45921.90

725

2914.483011.75

70469

00

0

0

Quantity Qtl. Kg.

73444.6735620.54

2429.735214.01

89828.55144120.72

00

14157.9429964.26

39268417

142949.82207286.77

4476939775

00

0

0

Rs. in lacs

2496.75465.85

66.99182.68

389.57560.57

00

117.54222.47

10.7323.36

893.141075.16

272.89173.10

7542.242531.40

11789.85

5234.59

Sales Excess/Shortage Closing Stock as on 31.3.2014

corp H PSUP


32

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST March 2014

Rs. in Lacs Rs. in Lacs

A) Cash Flow Form Operating Activities 2013-14 2012-13

Net profit before tax 590.45 601.85

Adjustments for Depreciation 112.11 101.98

Investment Income (Interest) -644.75 -482.42

Profit/Loss on fixed Assets discarded 0 0.08

Deferred Revenue expenditure 0 0

Interest Expenses 15.98 25.2

Operating profit before working capital changes 73.79 246.69

Adjustments for

Trade and other receivables 476.04 -2,743.19

Inventories -6812.19 1,010.07

Trade and other payables 12187.44 967.21

Other long term liabilities 55.29 56.25

Cash generated from operations 5,980.37 -462.97

Direct taxes paid (Net) -191.56 -209.83

Net cash from operating activities (A) 5,788.81 -672.80

B) Cash flow from investing activities:

Purchase of fixed assets ( Net of Subsidy) -199.9 -59.4

Interest received 644.75 482.42

Lease Money Paid 0 0

Sale of Fixed Assets 0 0.17

Net cash (used) in investing activities (B) 444.85 423.19

C) Cash flow from financial activities

Repayment of borrowing (Net) 0 0

Dividend paid ( including Tax on distributed profits) -40.85 -40.85

Interest paid -15.98 -25.2

Net cash used in financing activities (C) -56.83 -66.05

Net Increase/ (Decrease) in cash & cash

Equivalents (A)+(B)+(C) 6,176.83 -315.66

Opening Cash and Cash Equivalents 8,619.58 8,935.22

Closing Cash and Cash Equivalents 14796.41 8,619.58

Net Increase/decrease in Cash and Cash equivalents 6,176.83 -315.67

(In Lacs)

As per our report of even date attachedFOR J. K. JAIN & ASSOCIATES


Sd/- (Harish Dua)

Partner M. No. : 506435

Place : ShimlaDate : 07-10-2014

corp H PSUP

J. K. Jain & Associates S.C.O. 1132-33, Sector 22-B, Chandigarh-160 022Chartered Accountants 0172-270 4536-37 Fax : 0172-270 4537

E-mail : [email protected]

INDEPENDENT AUDITOR'S REPORT

To the Members of

H.P.State Civil Supplies Corporation Limited,

Shimla.

Report on the Financial Statements

1. We have audited the accompanying financial statements of H.P. State Civil Supplies Corporation Limited, which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year ended on March 31, 2014 and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. 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. 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.

Auditor's Responsibility

3. 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.

4. 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 but not for the purpose of expressing our opinion on the effectiveness of the entity'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 financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanations given to us, the financial statements and notes of accounts 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 read with and subject to notes on accounts and para (8) given below:

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 Profit and Loss Account, of the loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.


33

corp H PSUP

Report on other Legal and Regulatory Requirements

7. As required by the Companies (Auditor's Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

8. Further to our comments in the annexure referred to in Paragraph (7) above read with "Significant Accounting Policies and Notes" forming part of accounts, we report that:

a. Subject to the matters referred to in the paragraphs given below, in our opinion, the Balance sheet and Statement of profit and loss account comply with the accounting standards referred to in Sub-Section 3 (c) of section-211 of The Companies Act, 1956.

(i) To calculate latest cost of Principal and subsidies items for valuation of closing stock, average purchase price of the month of March has been taken in case of Cement, Rice, Wheat, Free sale sugar, Non controlled Atta. Whereas as per AS-2 "Valuation of Inventories "latest cost should have been derived using "First in First out" (FIFO) Method. In absence of complete information impact on profit is not ascertainable.{Refer Accounting Policy No.5 (a)(i)}.

(ii) Non reporting of Segment Information as required by AS-17 "Segment Reporting" which is mandatory for the Corporation.

(iii) Non reporting of Deferred Tax as required by AS-22 "Accounting for Taxes on Income" which is mandatory for the Corporation.

(iv) Non providing of retirement benefits such as gratuity, leave encashment etc. strictly as required by AS-15" Accounting for Retirement Benefits" Refer significant accounting policies point no 6 (a&c).

b. Reference is invited to following notes contained in "Significant Accounting Policies & Notes on accounts".

(i) Note 6 & 10: Few parties are appearing both under the head Trade Receivables (current assets) and Advances from customers (Other current liabilities). Thereby both the assets and liabilities of the Corporation have been overstated. The exact amount could not be ascertained.

(ii) Note 6.1: The Corporation has decided to transfer certain fund to employees superannuation fund. The above scheme for employees of the corporation is however pending for approval with the RPFC, Shimla. During the year, the corporation has made a provision of Rs 100 lacs (previous year 250 lacs). Total amount accumulated in this fund as on 31.03.14 amounts to Rs 1500 lacs. Pending calculation of actual liability, its impact on profit cannot be ascertained.

(iii) Note 6.2 & 13.1: regarding balances payable to/recoverable from Banks Rs. 112.39 lacs (Net Payable) and its impact on profit.

(iv) Note 6.3: regarding creation of liability for ex-gratia payable to employees in absence of Government approval. Profit for the year is under stated to the extent of Rs. 23.73 lacs.

(v) Note 6.4: The Corporation had deducted LD charges amounting to Rs.3.36 lacs during the year from suppliers for non-fulfillment of supply schedule. Out of the total amount deducted Rs.2.52 lacs has been taken to revenue and the balance Rs.0.84 lacs has been kept as payable to them and shown under "Other Current Liabilities". In absence of any specific policy/scientific base, its impact on profit could not be ascertained.

(vi) Note 6.5: regarding provision of rents recoverable and rent payable on estimated basis, impact on profit could not be ascertained in absence of complete information.

(vii) Note 8.2: Regarding title of properties not vested with Corporation.

(viii) Note 8.3: Regarding charging depreciation on lease hold building considering the lease to be perpetual instead of amortizing the lease money annually over the period of lease and charging annual rentals to revenue.


34

corp H PSUP

(ix) Note 9.4(a): Regarding Clubbing/booking of items of different sizes, qualities and nature for valuation of closing stock and its impact on profit could not be ascertained.

(x) Note 9.5: Regarding slow moving stock of Rs. 7.81 lacs and its impact on profit.

(xi) Note 13.2: Regarding non-confirmation of balances in debit/credit representing amount/subsidies recoverable from and payable to various Governments and other parties and its impact on profit.

(xii) Note13.3: Variation in claims and other recoverable pending with various agencies, actual impact on profit could not be ascertained.

( x i i i ) N o t e 3 3 : A c c o r d i n g t o t h e i n f o r m a t i o n a n d e x p l a n a t i o n g i v e n t o u s , fraud/embezzlement/misappropriation of stock/funds have been detected amount to Rs.21.04 lacs departmental/ criminal proceedings have been initiated and also investigation is in process, by the corporation, in respect of certain matters/unauthorized expenses, made at some depots/offices. Outcome/result of the same may impact profitability of the corporation.

(xiv) Note 23: Regarding non provision of liability for non deposit/late deposit of Sales Tax and VAT.

(xv) Note 24: Regarding non provision of liability for late deposit of Tax deducted at source & Service Tax.

(xvi) Note 26: Regarding non provision of differential amount of levy sugar margin fixed by Government of India for financial years 2003-04 and 2004-05. Its impact on profit could not be ascertained in absence of complete information.

(xvii) Note: The Central govt. has implemented National food Security act during the year w.e.f. October 2013. As per scheme, Rice & wheat RGAY have been sold @ Rs. 3/- per kg and Rs. 2/- per kg respectively to Antodya families out of existing stocks. The difference between landed cost and sale price has been booked as Amt recoverable from govt. to the tune of Rs.148.44 lacs in the books of accounts. In the absence of any specific intimation from the govt. regarding reimbursement of such differential cost, the profits are overstated to the tune of Rs. 148.44 lacs. .

(xviii) We further report that had the qualifications where amounts ascertained in above paras being considered. The reported profit of Rs.590.45 lacs for the year after adjustment of prior period items would have been Rs.442.01 lacs and the balance in "Surplus as per Profit and Loss Account" would have been Rs.2792.89 lacs against the reported figures of Rs.2941.33 lacs.

9. As required by section 227(3) of the Act, we report that:

a) 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;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

for J. K. Jain & Associates Chartered Accountants

Harish KumarPlace: Chandigarh (Partner) Date : 07.10.2014 M. No. : 506435


35

corp H PSUP

The Annexure referred to in paragraphs (1) of Our Report of even date to the members of H.P.State Civil supplies corporation ltd. on the accounts of the company for the year ending on March 31, 2014.

(i) (a) In respect of fixed assets, the corporation has maintained records but it does not show full particulars including quantitative details and situation in some cases of such assets.

(b) According to information and explanations given to us, all the fixed assets have not been physically verified by the management at reasonable intervals. The discrepancies observed have not been adjusted in accounts, being of negligible value.

( c) During the period, company has no disposed off any substantial/major part of fixed assets.

(ii) (a) As explained to us, the closing stocks have been physically verified by the management twice during the year on 30.09.13 & 31.03.14.

(b) In our opinion and according to information & explanations given to us, the Procedure of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Corporation and the nature of its business. However frequent surprise check must be introduced.

(c ) The discrepancies noticed in physical stocks and book records on such verification were classified into normal and abnormal shortages by the management. No financial entries have been passed for normal shortages but abnormal shortages have been shown as recoverable from the employees.

(d) On the basis of our examination of the records we are of the opinion that valuation of stocks is not in accordance with normally accepted accounting principles.

(1) To calculate latest cost of principle & subsidized items for valuation of closing stocks, average purchase price of the month of march has been taken in case of cement, rice, wheat, free sale sugar& non- controlled atta etc. This is not in consistence with AS-2, "Valuation of Inventories" which requires stock to be valued at cost according to FIFO principle.

(2) There is no material deviation in the basis of valuation from the preceding year.

(e) During the year, It was found that stock of wheat and rice diverted from one scheme to another scheme. However at the year end, at the time of valuation of these stocks, the same was correctly adjusted. Hence, internal control over these stocks need improvement.

(iii) According to the information and explanation given to us, the Corporation has not granted/taken any loans, secured or unsecured to Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 and /or from the companies under the same management as defined under sub- section (1B) of section 370 of the companies act, 1956.

(b) Loans and advances in the nature of loans have been given to employees of the corporation. The principle amount and interest, if any, is being generally recovered as stipulated.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control procedures commensurate with the size of the Corporation and the nature of its business with regard to purchase of stores, raw materials including components and, plant and machinery, equipment and other assets and for the sale of goods, however the same needs to be strengthened with respect to its accounting on regular basis. Also with respect to cash/fund management. The same requires strict day to day monitoring by devising suitable management information system and its accounting on regular basis.

(v) In our opinion and accordance to the information and explanation given to us, there are no transactions of


36

corp H PSUP

purchase of goods, material and services during the financial year, aggregating to Rs 5,00,000/- and more in respect of each party in pursuance of the contracts or agreements entered in the register maintained under section 301 of the companies act, 1956.

(vi) In our opinion and according to the information and explanations given to us, the corporation has not accepted any deposit from public within the meaning of Section 58A & 58AA of the Companies Act,1956.

(vii) The internal Audit System is generally commensurate with the size of the corporation and nature of its business. However, scope of internal audit needs to be enlarge/redefined. Follow up procedure/ action on internal audit reports needs strict implementation/compliance.

(viii) The Company is not required to maintain cost records under section 209 (1)(d) of the Companies Act ,1956.

(ix) (a) According to the information and explanations given to us and the records of the company examined by us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, and other material statutory dues applicable to it. We are informed that there are no undisputed statutory dues as at the year end outstanding for a period of more than six months from the date they became payable except CPF of Rs. 70,258/-. As explained to us , provisions of ESI Act are not applicable to the corporation.

(b) According to the information and explanations given to us and the records of the company examined by us, there are no disputed dues of Wealth Tax, custom duty, excise duty and cess matters except Income Tax and sales tax as mentioned under note no. 22(b)(ii).

(x) The company does not have accumulated losses as at the end of the financial year 31st March, 2014, and it has not incurred any cash losses during the current financial year.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company during the period has not defaulted in repayment of dues to financial institutions or banks.

(xii) According to the information & explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the order are not applicable to the Company.

(xiv) In our opinion and according to the information & explanations given to us, the company is not dealing or trading in shares, securities & other investments.

(xv) In our opinion and according to the information & explanations given to us, the corporation has not given guarantees during the year for loans taken by others from banks or financial institutions.

(xvi) No term loans have been taken by the corporation during the year.

(xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company, we report that short term funds have not been used to finance long term investments and vice versa.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(xix) During the period, since the company has not issued any debentures, paragraph 4 (xix) of the order is not applicable.

(xx) During the period, since the company has not raised any money by way of public issue, paragraph 4 (xx) of the Order is not applicable.


37

corp H PSUP


(xxi) According to the information and explanations given to us, fraud/embezzlement/misappropriation of stocks/funds has been detected during the year, for which departmental/criminal proceedings have been initiated and also, investigation is in process by the corporation, in respect of certain matters/unauthorized expenses, made at some depots/offices in earlier years.

For J.K. JAIN & ASSOCIATES


Place: Shimla (C.A Harish Dua)

Date: 07-10-2014 Partner

Membership No. 506435

38

corp H PSUP


Comments of the Comptroller and Auditor General of India under Section 619 (4) of the Companies Act, 1956 on the Accounts of Himachal Pradesh State Civil Supplies Corporation Limited, Shimla for

the year ended 31st March 2014.

The preparation of financial statements of Himachal Pradesh State Civil Supplies Corporation Limited for the year ended 31st March 2014 in accordance with the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the Company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 are responsible for expressing opinion on these financial statements under Section 227 of the Companies Act,1956 based on independent audit in accordance with the auditing and assurance standards prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 07 October 2014.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 619(3) (b) of the Companies Act, 1956 of the financial statements of Himachal Pradesh State Civil Supplies Corporation Limited for the year ended 31st March 2014. This supplementary audit has been carried out independently without access to the working papers of the Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and company personal and a selective examination of some of the accounting records. Based on my supplementary audit, I would like to highlight the following significant matters under Section 619 (4) of the Companies Act, 1956 which have come to my attention and which in my view are necessary for enabling a better understanding of the financial statements and the related Audit Report.

BALANCE SHEET

1. Non Current Liabilities

Other Current Liabilities (Note 6)

Other payable-Rs. 42.02 crore

The Government of India, Ministry of Finance ( Department of Revenue) vide notification No. 04/2010 (service Tax) dated 27 February 2010 exempted Service Tax on transportation of food grains, which if collected was to be credited to the Central Government under section 73 A (2) of Chapter V of the Finance Act,1994. The Company upto the end of 31st March 2014 has collected Service Tax amounting to Rs. 1.00 crore on transportation of food grains but has not shown it as payable to the Central Government. Instead the Company treated Service Tax so collected as its own income, which has resulted in overstatement of 'Current Year Profit' and understatement of 'Other Current Liabilities- Other Payable by Rs. 1.00 crore.

STATEMENT OF PROFIT AND LOSS

2. Revenue from operations (Note-14)-Rs. 1216.10 crore

The hill area surcharge of Rs. 6.00 per kg extra on Above Poverty Line consumers on the sale price of sugar at Fair Price Shops level of Rs. 13.50 per Kg. was imposed by the Government of Himachal Pradesh vide Notification dated 27th September 2013. The Company sold 21037723.4 Kgs sugar during the period October 2013 to March 2014 involving hill area surcharge of Rs. 12.62 crore which was payable to the State Government. The Company collected it and instead of showing it as payable to the State Government treated it as its own income which has resulted in overstatement of 'Current Year Profit ' and understatement of 'Other Current Liabilities-Other Payable' by Rs. 12.62 crore.

3. Impact of the Comments

As a result of audit comments the current year profit has been overstated by Rs. 13.62 crore. In case these adjustments are carried out, current year profit of Rs. 3.99 crore would convert into loss of Rs. 9.63 crore.

The true and fair opinion expressed by the Chartered Accountants has to be seen in the light of the fact that after giving effect to the comments made by the CAG audit, the profit of the Company has been converted into loss.

For and on behalf of theComptroller and Auditor General of India

Sd/-Principal Accountant General (Audit)

39

Place : ShimlaDate : 22.01.2015

corp H PSUP


PROXY FORM

Name of the Company : H. P. State Civil Supplies Corporation Ltd.

Regd. Office : Block No. 16-17, S.D.A. Complex, Kasumpti, Shimla, H.P. 171009

I/We........................................................of............................................................................................................ being a member of the above named company, hereby appointed the following as my/our proxy to attend and vote

th(on poll) for me/us and on my/our behalf at the 34 Annual General Meeting of the Company to be held on ........................... at...............................AM/PM

and at any adjournment thereof;

1. Mr./Mrs...............................................................S/o..............................................Signature (............) of failing him I/We direct my/our Proxy to vote on the resolution in the manner as indicated below :

No. of Share Held............................ Affix Re. 1 Revenue Stamp

Date : 07.10.2014 Signature

Note :

1. The Proxy to be effective should be deposited at the Registered office of the Company not less than forty eight hours before the commencement of meeting. A proxy need not be a member of Company.

RESOLUTIONS

Resolution No. 1(to specify)



FOR AGAINST

40

corp H PSUP

Levy Sugar,, 2497

Other,, 314

Edible Oil, , 38

Cement,, 11

Weat Atta,, 118G.I.Sheets,, 48Free Sale Sugar,, 67

Pulses,, 36

Medicines,, 461

Wheat,, 390

L.P.G,, 273

Subsidised Items,, 6644

Rice,, 893


41

SALE AT A GLANCE 2013-2014(Figures in Lakhs)

CLOSING STOCKS(As on 31.03.2014) (Figures in Lakhs)

SALES ON NON-CONTROLLED ITEMS(As on 31.03.2014)(Figures in Lakhs)

SALES ON CONTROLLED ITEMS(As on 31.03.2014)(Figures in Lakhs)

corp H PSUP



Levy Sugar,, 8465

Rice, 14955L.P.G, , 16669

K.Oil,, 263

Edible Oil,, 1531

Pulses,, 504

Free Sale Sugar,, 916

Wheat Atta,, 16733

Wheat, , 3988

Cement,, 128

Other,, 22363

Rice,, 14955


Leavy Sugar,, 8465

Wheat Atta,, 16733

Wheat,, 3988K.Oil,, 263

Medicines,, 5386

Soaps,, 227Tea,, 95

G.I.Sheets,, 203

Edible Oils,, 1531

Ex-Books,, 20

Milk Powder,, 0.4

Spices,, 94

LPG Hot Plates &

Pipes,, 423

Pertol & Diesel,, 2137

Others,, 13774

Cement,, 128

Free Sale Sugar,, 916

Pulses,, 504

L.P.G,, 16670

42

Profit Before Tax Rs. (Lakhs)

Rs. (Lakhs)Profit After Tax

YEARS

YEARS

corp H PSUP


158.

62

535.

52

446.

75

606.

77

420.

47

194.

09

322.

84

287.

16

315.

15

603.

59

601.

84

590.

45

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14

97.6

1

346.

29

283.

25

402.

53

363.

09

128.

12

213.

1

189.

55

210.

46

390.

19

392.

01

398.

88

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14


43

Paid up Capital Rs. (Lakhs)

Rs. (Lakhs)Reserves & Surplus

YEARS

YEARS

corp H PSUP


351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

351.

50

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14

44

7.1

2 75

2.7

5

94

7.0

0 12

81

.41

13

39

.79

14

20

.92

15

87

.20

17

51

.01

18

95

.23

22

40

.15

25

87

.17

29

41

.37

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14


44

Net Worth Rs. (Lakhs)

Rs. (Lakhs)% of Debetors to Sales

YEARS

YEARS

corp H PSUP


798.

00 1104

.00

1298

.00

1632

.91

1691

.25

1772

.42

1938

.70

2102

.51

2246

.73

2591

.65

2938

.67

3292

.87

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 .1 -12 12 -13 13 -14

0.18

0.38

0.61

0.59

0.72

0.54

0.65

0.35

0.31

0.24 0.

26 0.27

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14


45

Net Fixed Assests Rs. (Lakhs)

Rs. (Lakhs)Working Capital

YEARS

YEARS

corp H PSUP


48

2 52

3

48

3

60

9

70

3 76

4

71

2

67

8

63

9.0

7

71

3.3

5

66

6.3

8 75

0.3

0

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14

1048

1573

1400 15

21

1302

2894

2964

3482

1863

.31

2137

.61 25

87.6

4

2913

.41

02 -03 03 -04 04 -05 05 -06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14

STATEMENT SHOWING INFORMATION OF FINANCIAL DATA

46

Year Investment Gross Net Reserve & Dividend Estt. Admn. FinancialProfit Profit Surplus Paid to Govt. Cost Exp. Expenses

1988-89 339.00 89.15 41.47 72.23 1.64 144.99 95.15 83.90

1989-90 339.00 5.44 2.50 74.15 1.70 178.28 104.05 88.78

1990-91 340.00 5.43 2.38 73.17 1.70 198.10 115.97 67.38

1991-92 341.00 9.19 3.44 73.19 2.55 222.70 141.05 95.43

1992-93 342.00 11.90 5.73 73.43 3.41 250.70 145.20 98.30

1993-94 343.00 2.13 1.03 90.06 1.71 310.87 181.63 120.97

1994-95 344.00 10.32 6.31 107.66 - 311.31 188.24 127.50

1995-96 345.00 13.18 7.26 124.11 3.45 383.59 192.24 116.04

1996-97 346.00 26.45 15.87 17.72 5.19 436.78 278.96 172.07

1997-98 351.00 38.34 24.92 190.13 8.77 624.21 471.57 150.26

1998-99 351.50 68.10 41.79 239.45 12.30 653.49 439.52 119.33

1999-00 351.00 98.57 60.63 213.60 12.30 752.55 383.25 199.48

2000-01 351.50 89.22 53.93 287.36 17.57 849.90 411.52 174.54

2001-02 351.50 128.93 69.34 329.30 17.57 962.64 489.96 119.35

2002-03 351.50 158.62 97.62 447.12 17.57 1101.48 784.87 67.24

2003-04 351.50 535.52 346.29 752.75 24.60 1328.52 490.00 112.98

2004-05 351.50 446.75 283.25 947.00 70.30 1493.33 525.95 88.49

2005-06 351.50 606.77 402.53 1281.41 52.73 1347.42 612.69 182.40

2006-07 351.50 420.47 363.09 1339.79 35.15 1438.79 680.77 106.12

2007-08 351.50 194.09 128.12 1420.92 35.15 1670.98 778.18 108.09

2008-09 351.50 322.84 213.10 1587.20 35.15 2551.52 721.96 104.33

2009-10 351.50 287.16 189.55 1751.01 17.57 2211.55 690.81 50.42

2010-11 351.50 315.15 210.46 1895.23 52.73 2696.89 614.54 57.76

2011-12 351.50 603.59 390.19 2240.15 35.15 2790.03 760.97 67.77

2012-13 351.50 601.84 392.01 2587.17 35.15 3169.00 860.19 39.36

2013-14 351.50 590.45 398.88 2941.37 35.15 3305.00 985.00 15.98

corp H PSUP


Sh. G. S. Bali, Hon'ble Food Civil Supplies & Consumer Affairs Minister, H.P.-cum-Chairman H.P. State Civil Supplies Corporation Ltd. accompanied by Sh. R. D. Dhiman, IAS Principal Secretary (FCS&CA) to the Govt. of H.P., Priyatu Mandal, IAS Managing Director of the Corporation alongwith officers of the Corporation presenting a Cheque of Rs. 31.00 Lac towards C.M. Relief Fund to Sh. Virbhadra Singh, Hon'ble Chief Minister H.P.

corp H PSUP


corp H PSUP

Design & Printed by :Shivalik Offset Printers, SDA Complex, Kasumpti, Shimla Ph. : 0177-2620879

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the Subject:- laid the · 2015-08-22 · HP State Civil Supplies Corporation Limited, Bhattakuffar, Shimla-171012 Ph. : 0177-2842281, 2841824, ... consider and adopt the Audited Balance