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Notes to Accounts of Bhandari Hosiery Exports Ltd.

Mar 31, 2016

1. Related Party Disclosure

Detail of disclosures as required by Accounting Standard (AS-18) on “Related Party Disclosures” issued by the Institute of Chartered Accountants of India are as under: -

A. Related parties with whom transactions have taken place during the year 2015-16.

a. Key Managerial Personnel:

2. Shri Nitin Bhandari, Mg. Director 2. Shri Manoj Kumar, CFO 3.Shri Gurinder Makkar, Company Secretary 4. Mr. Surinder Kumar (former CFO, Resigned w.e.f 15.04.2015)

b. Relatives of Key Managerial Personnel

3. Shri Naresh Bhandari (Father of Shri Nitin Bhandari, Mg. Director ) 2. Ms. Kusum Bhandari (Mother of Shri Nitin Bhandari, Mg. Director) 3. Ms. Aditi Bhandari (Wife of Shri Nitin Bhandari, Mg. Director) 4.Ms. Nitika Bhandari (Sister of Shri Nitin Bhandari , Mg. Director) 5. Ms. Pushpinder Kaur ( Wife of Mr. Gurinder Makkar, Company Secretary)

Others- Subsidiary Company/ Holding Company/ joint Ventures- NIL/Not Applicable.

All the transactions with related parties have been made in ordinary course of business and at arm''s length basis.

4 Leases

There are no such rental/ lease agreements entered into by the Company which require disclosure under AS-19.

5 Previous year''s figures have been recast/ regrouped wherever necessary to make them comparable with the current year''s figures.

6 Note 1 to 23 form an integral part of the financial statement._

(i) The Company has one class of equity shares having a par value of Rs 1/- each as at 31st March, 2016. Each holder of equity shares is entitled to one vote per share.

(ii) During the year 2015-16, Pursuant to the approval of the members given through postal ballot / e-voting on 29th January, 2016 for subdivision of the equity shares of the Company, each equity share of nominal face value of Rs. 10/- each was sub-divided to 10 equity shares of nominal face value of Rs. 1/- each, resulting in increase in number of equity shares from 1,46,52,695 equity shares of Rs. 10/each to 14,65,26,950 equity shares of Rs. 1/- each.

(iii) The Board of Directors have proposed a dividend of Rs. 0.01/- per Equity Share of face value of Rs.1/- each (i.e. @ 1%), subject to approval of the shareholders at the ensuing Annual General Meeting. The total dividend appropriation for the year ended March 31, 2016 amounted Rs. 1,763,570/- comprising of Rs. 1,465,270 as dividend and Rs. 298,300/- as dividend distribution tax.

* The company''s Share Capital consists of Fully Paid Equity Share only and there are no Preference Shares or other type of capital. ** 45,87,500 Equity shares were issued as fully paid up shares of Rs. 10/- each at a price of Rs. 44/- per equity share pursuant to Preferential allotment to persons of public , during the year 2012-13.

*** During the Financial Year 2015-16, each equity share of nominal face value of Rs. 10/- each was sub-divided to 10 equity shares of nominal face value of Rs. 1/- each, resulting in increase in number of equity shares from 1,46,52,695 equity shares of Rs. 10/- each to 14,65,26,950 equity shares of Rs. 1/- each. 70

**** There are no outstanding warrants/securities convertible into equity shares as at 31st March 2016.

V. Terms/rights attached to equity shares.

The company has only one class of equity shares having face value of Rs. 1/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

VI. Shares held by holding/ ultimate holding company/ or their subsidiaries/ associates—NIL/N.A.

Terms of repayment of Term Loans_

a.S.B.I. Term Loan A/C No-34001402481 at point a) above is repayable in 66 installments which consist of First 18 installments of Rs.22.00 lacs, next 12 installments of Rs.24.00 lacs, next 24 installments of Rs.25.00 lacs , next 11 installments of Rs.29.00 lacs and last installment of Rs.31 lacs only. Present Rate of interest is 12.30% p.a. The repayment of loan has started from October 2015 onwards. Interest is paid regularly. There is no default in repayment of term loan and interest

Security given to the bank_

* For term loans ( a of note 5 ) the first charge on the fixed assets is given to the lending bank . Second charge on current assets has been given to lending bank on pari passu basis

** All the credit facilities are guaranteed by personal guarantee of the Managing Director . Term loans at s no a is also collaterally secured by Equitable mortgage of land and building of Bhandari Knit Exports

Car loans are secured by way of hypothecation of respective cars to the respective banks. & personal guarantee of the Managing Director.

Security provided to the banks, Financial institutions

Working capital limits ( g,h,i of note-5) are secured by first charge on all stocks consisting of Raw material, Work in process, finished goods, stores & spares, goods with fabricators, goods in transit, stock lying on docks, book debts and all other current assets of the company both present & future. Extension of charge on the entire fixed assets of the company also given to the lending bank .. All the credit facilities are guaranteed by personal guarantee of the Managing Director. Working limits (g, h, i ) are also collaterally secured by Equitable mortgage of land & Building of M/s Bhandari Knit Exports.

Unsecured Loans from Director are interest free and repayable as mutually agreed between the company and director. During the year 2015-16, the Company has received Rs. 96,20,000/- unsecured loans and Rs. 18,66,100/- unsecured loans were repaid.

-CC and EPC Limits are repayable on demand. Rate of interest payable on these limits is 11.30% p.a. There is no default in repayments of the amounts and interest thereon.

-SLC limit is repayable on demand. Rate of interest payable is 12.30% p.a. There is no default in repayments of the amounts and interest thereon

Inventories: Method of Valuation

Store and spares and raw material are valued at cost. Semi Finished Goods are Valued at cost of materials and labour together with relevant factory overheads or net realizable value, whichever, is less.

Finished Goods are Valued at cost or net realizable value, whichever, is less. Cost includes materials, direct labour and allocable overheads.

Retirement Benefits:

a) Short Term Benefits Short Term employee benefit are changed off at

the undiscounted amount in the year in which the related service is rendered.

b) Long Term Post retirement Post retirement benefit comprise of provident fund and gratuity which are accounted for as follows.

i) Provident Fund This is defined contribution plan and contribution made to the fund are changed to revenue. The company has no further obligation for the future provident fund benefits other than monthly contribution.

ii) Gratuity Fund This is defined contribution plan. The liability of the company is determined based on the actuarial valuation using projected unit credit method. Actual gain and losses are recognized in full to the Statement of profit & loss for the period in which they occur. The retirement benefit obligation recognized .in the Balance Sheet represents the present value of the benefit obligation as per Actuarial Valuation.

iii) Leave with Wages Provision for the leave with wages in made on the basis of leave accrued to the employees.

*During the financial year ended 31st March, 2016, the Company''s equity shares of Rs. 10/- each were split/ subdivided into Equity shares of Rs. 1/- each resulting in increase in number of equity shares from 1,46,52,695 equity shares of Rs. 10/- each to 14,65,26,950 equity shares of Rs. 1/- each. Accordingly to maintain uniformity and better comparability, the E.P.S. of previous periods are re-stated as per subdivided equity shares.


Mar 31, 2015

1. CORPORATE INFORMATION

Bhandari Hosiery Exports Limited is a public limited Company incorporated under the provisions of Companies Act, 1956. The Company’s CIN is L17115PB1993PLC013930 and the Company’s Registered Office is situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at Bombay Stock Exchange Limited (BSE). The Company does not have any subsidiary Company. The Company is a garment manufacturing company having vertical production facility to produce High Fashion Knitted Garments. With more than 18 year experience and state of that art manufacturing facilities, Bhandari Hosiery manufactures garments of leading international and overseas brands and some overseas retail chains..in the international market, we have a presence in around 18 countries including quality conscious markets like USA,, Canada,, UK and European Uniion..

The company is engaged primarily in the manufacture and export of knitted hosiery garments such as T- Shirts,, Pull Overs,, Sweat Shirts,, Bermudas,, Pollo Shirts,, Track Suits,, Payajamas,, Lowers,, Ladies Knitted Tops with embroidery and prints etc. The Company conform to International standards in Human Recourses Practices and adopt Eco- friendly standards in production.

2. Contingent Liabilities not provided for (Rs. In Lacs)

Particulars As at As at Sr. 31.03.2015 31.03.2014

(a) Letter of Credit outstanding 68.00 98.15

(b) Bank Guarantee Outstanding 2.00 2.00

(c) Bill discounting with bank against irrevocable Foreign Letter of Credit 262.77 169.53

3. (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability in addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time.

(b) Provision for Income Tax has been made in the Statement of Profit & Loss on the basis of actual tax liability under MAT as per the Income Tax Act, 1961.

4. Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head other Income. Other Income also includes Rent Received.

5. Impairment of Assets:- An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment losses, if any, are recognized in accordance with the Accounting Standard 28 issued in this regard by The Institute of Chartered Accountants of India.

No material Impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standards (AS 28) issued by the Institute of Chartered Accountants of India.

6. Party's balances (under Debtors, Creditors and Advances) as at the year end are subject to confirmation.

However Company has a perpetual system of reconciling the accounts with its suppliers & customers during the year.

7. In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.

8. Micro, Small and Medium Industries:-

In accordance with the Notification No.GSR 719 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs, certain disclosers are required to be made relating to Micro ,Small and Medium Enterprises as defined under the Micro ,Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in these Financial Statement. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

9. Related Party Disclosure

Detail of disclosures as required by Accounting Standard (AS-18) on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are as under: -

A. Related parties with whom transactions have taken place during the year 2014-15.

a. Key Managerial Personnel:

1. Shri Nitin Bhandari, Mg. Director 2. Shri Surinder Kumar, CFO 3.Shri Gurinder Makkar, Company Secretary

b. Relatives of Key Managerial Personnel

1. Shri Naresh Bhandari (Father of Shri Nitin Bhandari, Mg. Director ) 2. Ms. Kusum Bhandari (Mother of Shri Nitin Bhandari, Mg. Director) 3. Ms. Aditi Bhandari (Wife of Shri Nitin Bhandari, Mg. Director) 4.Ms. Nitika Bhandari (sister of Shri Nitin Bhandari , Mg. Director) 4.Ms. Pushpinder Kaur (Wife of Mr. Gurinder Makkar, Company Secretary)

10. Leases

There are no such rental/ lease agreements entered into by the Company which require disclosure under AS-19.

11. Previous year's figures have been recast/ regrouped wherever necessary to make them comparable with the current year's figures.


Mar 31, 2014

NOTE 1- CORPORATE INFORMATION

Bhandari Hosiery Exports Limited is a public limited Company incorporated under the provisions of Companies Act, 1956. The Company''s CIN is L17115PB1993PLC013930 and the Company''s Registered Office is situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at Bombay Stock Exchange Limited (BSE). The Company does not have any subsidiary Company. The Company is a garment manufacturing company having vertical production facility to produce High Fashion Knitted Garments. With more than 18 year experience and state of that art manufacturing facilities, Bhandari Hosiery manufactures garments of leading international and overseas brands and some overseas retail chains..in the international market, we have a presence in around 18 countries including quality conscious markets like USA,, Canada,, UK and European Uniion..

The company is engaged primarily in the manufacture and export of knitted hosiery garments such as T- Shirts,, Pull Overs,, Sweat Shirts,, Bermudas,, Pollo Shirts,, Track Suits,, Payajamas,, Lowers,, Ladies Knitted Tops with embroidery and prints etc. The Company conform to International standards in Human Recourses Practices and adopt Eco- friendly standards in production.

2. Contingent Liabilities not provided for (Rs. In Lacs)

Particulars As at 31.03.2014 As at 31.03.2013

(a)Letter of Credit Outstanding 98.15 70.47

(b)Bank Guarantees Outstanding 2.00 0.00

(c)Bill discounting with bank 169.53 356.76 against irrevocable Letter of Credit

(d)Following cases are lying pending in appeal against different appellate authorities.

Nature of the case Authority Period Amount Status (in lacs)

Income tax Assessment CIT Appeal A Y 2004-05 8.33 Pending

Income tax Assessment CIT Appeal A Y 2008-09 2.96 Pending

3. (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability in addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time.

(b) Provision for Income Tax has been made in the Statement of Profit & Loss on the basis of actual tax liability as per the Income Tax Act, 1961.

4. Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head other Income. Other Income also includes Rent Received.

5. Impairment of Assets:- An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value An impairment loss will be charged to the Statement of profit and loss in the year in which an assets is identified as impaired.

6. Party''s balances (under Debtors, Creditors and Advances) as at the year end are subject to confirmation. However Company has a perpetual system of reconciling the accounts with its suppliers & customers during the year.

7. In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.

8. Micro, Small and Medium Industries:-

In accordance with the Notification No.GSR 719 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs ,certain disclosers are required to be made relating to Micro ,Small and Medium Enterprises as defined under the Micro ,Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in these Financial Statement. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

9. Leases

There are no rental/ lease agreements entered into by the Company requiring disclosure under AS-19.

10. Previous year''s figures have been recast/ regrouped wherever necessary to make them comparable with the current year''s figures.

11 Note 1 to 26 form an integral part of the financial statement

a) Terms/rights attached to equity shares.

The company has only one class of equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

Retirement Benefits:

a) Short Term Benefits

Short Term employee benefit are changed off at the undiscounted amount in the year in which the related service is rendered.

b) Long Term Post retirement

Post retirement benefit comprise of provident fund and gratuity which are accounted for as follows.

i) Provident Fund

This is defined contribution plan and contribution made to the fund are changed to revenue. The company has no further obligation for the future provident fund benefits other than monthly contribution.

ii) Gratuity Fund

This is defined contribution plan. The liability of the company is determined based on the actuarial valuation using projected unit credit method. Acturail gain and losses are reconised in full to the Statement of profit & loss for the period in which they occur. The retirement benefit obligation recoginsed.in the Balance Sheet represents the present value of the benefit onligation as per Acturial Valuation.

iii) Leave with Wages

Provision for the leave with wages in made on the basis of leave accrued to the employees.


Mar 31, 2013

NOTE1- CORPORATE INFORMATION

Bhandari Hosiery Exports Limited is a public limited Company incorporated under the provisions of Companies Act, 1956. The Company''s CIN is L17115PB1993PLC013930 and the Company''s Registered Office is situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at Bombay Stock Exchange Limited (BSE). The Company does not have any subsidiary Company. The Company is a garment manufacturing company having vertical production facility to produce High Fashion Knitted Garments. With more than 18 year experience and state of that art manufacturing facilities, Bhandari Hosiery manufactures garments of leading international and overseas brands and some overseas retail chains..in the international market, we have a presence in around 18 countries including quality conscious markets like USA,, Canada,, UK and European Uniion..

The company is engaged primarily in the manufacture and export of knitted hosiery garments such as T- Shirts,, Pull Overs,, Sweat Shirts,, Bermudas,, Pollo Shirts,, Track Suits,, Payajamas,, Lowers,, Ladies Knitted Tops with embroidery and prints etc. The Company conform to International standards in Human Recourses Practices and adopt Eco- friendly standards in production.

2.1 (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability i addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time.

(b) Provision for Income Tax has been made in the Statement of Profit & Loss on the basis of actual tax liability as pe the Income Tax Act, 1961.

2.2 Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head other Income. Other Income also includes Rent Received.

2.3 Impairment of Assets:- An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss will be charged to the Statement of profit and loss in the year in which an assets is identified as impaired.

2.4 Party''s balances (under Debtors, Creditors and Advances) as at the year end are subject to confirmation. However Company has a perpetual system of reconciling the accounts with its suppliers & customers during the year.

2.5 In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.

2.6 Segment Reporting

The Company is mainly engaged in the business of manufacturing of textiles consisting of fabric and garments. Considering the nature of the business and financial reporting of the company, the company has only one segment viz Garments as reportable segment . The company operates in domestic and export segment geographically .The sales for both is separately given .But due to the nature of business the assets / liabilities and expenses for these activities can not be bifurcated separately. Domestic Sales consist sales made in different parts of India. Export Sales consist exports made to Germany, Switzerland, USA, U.K., Netherland,, Dubai and other countries of European Union (EU). The Export sales and Domestic sales are as under:

2.7 Micro, Small and Medium Industries:-

In accordance with the Notification No.GSR 719 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs ,certain disclosers are required to be made relating to Micro ,Small and Medium Enterprises as defined under the Micro ,Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in these Financial Statement. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

2.8 Previous year''s figures have been recast/ regrouped wherever necessary to make them comparable with the current year''s figures.

2.9 Note 1 to 26 form an integral part of the financial statement


Mar 31, 2012

NOTE1- CORPORATE INFORMATION

Bhandari Hosiery Exports Limited is a public limited Company incorporated under the provisions of Companies Act, 1956. The Company's CIN is L17115PB1993PLC013930 and the Company's Registered Office is situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at Bombay Stock Exchange Limited (BSE). The Company does not have any subsidiary Company. The Company is a garment manufacturing company having vertical production facility to produce High Fashion Knitted Garments. With more than 18 year experience and state of that art manufacturing facilities, Bhandari Hosiery manufactures garments of leading international and overseas brands and some overseas retail chains..in the international market, we have a presence in around 18 countries including quality conscious markets like USA,, Canada,, UK and European Uniion..

The company is engaged primarily in the manufacture and export of knitted hosiery garments such as T- Shirts,, Pull Overs,, Sweat Shirts,, Bermudas,, Pollo Shirts,, Track Suits,, Payajamas,, Lowers,, Ladies Knitted Tops with embroidery and prints etc. The Company conform to International standards in Human Recourses Practices and adopt Eco- friendly standards in production.

2.1 Contingent Liabilities not provided for (Rs. In Lacs)

Particulars As at 31.03.2012 As at 31.03.2011

(a) Letter of Credit Outstanding 88.83 97.17

(b) Bank Guarantees Outstanding 2.00 2.00

(c) Bill discounting with bank against irrevocable Letter of Credit 229.78 117.78

2.2 (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability in addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time.

(b) Provision for Income Tax has been made in the Statement of Profit & Loss on the basis of actual tax liability as per the Income Tax Act, 1961.

2.3 Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head other Income. Other Income also includes Rent Received.

2.4 Impairment of Assets:- An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

An impairment loss will be charged to the Statement of profit and loss in the year in which an assets is identified as impaired.

2.5 Party's balances (under Debtors, Creditors and Advances) as at the year end are subject to confirmation, if any however Company has a perpetual system of reconciling the accounts with its suppliers & customers during the year.

2.6 In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.

2.7 Segment Reporting

The Company is mainly engaged in the business of manufacturing of textiles consisting of fabric and garments. Considering the nature of the business and financial reporting of the company, the company has only one segment viz Garments as reportable segment . The company operates in domestic and export segment geographically .The sales for both is separately given .But due to the nature of business the assets / liabilities and expenses for these activities can not be bifurcated separately. Domestic Sales consist sales made in different parts of India. Export Sales consist exports made to Germany, Switzerland, USA, U.K., Netherland,, Dubai and other countries of European Union (EU). The Export sales and Domestic sales are as under:

2.8 Micro, Small and Medium Industries:-

In accordance with the Notification No.GSR 719 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs ,certain disclosers are required to be made relating to Micro ,Small and Medium Enterprises as defined under the Micro ,Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in these Financial Statement. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material.

2.9 Leases

The rental lease agreements entered into by the Company are cancellable in nature without any notice. Hence, Company has debited the rent for use of landed property to the Statement of Profit and Loss and AS-19 has been duly complied to the extent applicable to the Company. Moreover, according to AS-19, the payment of rent does not give rise to any right to acquire the ownership rights over the assets under consideration.

2.10 Previous year's figures have been recast/ regrouped wherever necessary to make them comparable with the current year's figures.

2.11 Note 1 to 26 form an integral part of the financial statement

a) Terms/rights attached to equity shares.

The company has only one class of equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Shares held by holding/ ultimate holding company/ or their subsidiaries/ associates—NIL/N.A.

Security provided to the banks, Financial institutions

Working capital limits (g,h of note-5) are secured by first charge on all stocks consisting of Raw material, Work in process, finished goods, stores & spares, goods with fabricators, goods in transit, stock lying on docks, book debts and all other current assets of the company both present & future. Extension of charge on the entire fixed assets of the company also given to the lending bank on paripassu basis. All the credit facilities are guaranteed by personal guarantee of the Managing Director. g,h are also collaterally secured by Equitable mortgage of land & Building of M/s Bhandari Knit Exports.

-EPC is repayable on demand. Rate of interest payable is 11.50% p.a. There is no default in repayments of the amounts and interest thereon.

- C/C is repayable on demand. Rate of interest payable is 14.75% p.a. There is no default in repayments of the amounts and interest thereon


Mar 31, 2011

1. Contingent Liabilities not provided for (Rs. In Lacs)

Particulars As at As at 31.03.2011 31.03.2010

(a) Letter of Credit Outstanding 97.17 12.70

(b) Bank Guarantees Outstanding 2.00 NIL

(c) Bill discounting with bank against 117.78 NIL irrevocable Letter of Credit

2. (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability in addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time.

(b) Provision for Income Tax has been made in the Profit & Loss Account on the basis of actual tax liability as per the Income Tax Act, 1961. Deferred Tax Liability has been calculated on the basis of timing difference as per the provisions of AS-22.

3. Impairment of Assets:- An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value An impairment loss will be charged to the profit and loss account in the year in which an assets is identified as impaired.

4. Party's balances (under Debtors, Creditors and Advances) were subject to confirmation, if any. However, subsequently, the Company got the confirmations after close of financial year which are in line with the Audited accounts.

5. In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.

6. Previous year's figures have been recast/ regrouped wherever necessary to make them comparable with the current year's figures.

7. The paid up Share Capital of the Company includes 12,85,000 equity shares of Rs. 10/- each fully paid up in consideration other than cash issued in he year 1993-94. The Paid up Share Capital of the Company as at 31.03.2011 also includes 2,609,495 fully paid Bonus Shares of Rs. 10/- each issued to the Members of Company in the ratio of 7 (Seven) Bonus equity share of Rs. 10/- (Rupees Ten) for every 20 (Twenty) existing fully paid equity share of Rs. 10/- (Rupee Ten). The said Bonus Shares were listed on BSE in the month of March, 2011.

8. Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head Other Income and Other Income also includes Rent Received.

9. The provision created in the preceding financial year for bad & doubtful debts, un recoverable advances & export incentives, has been adjusted during the year under review and the excess provision has been written back amounting to Rs. 265,032/-.

10. Earning per Share (EPS)

2,609,495 equity shares were allotted in February, 2011 as bonus issue in the ratio of 7 Bonus Equity shares for every 20 existing fully paid equity shares. As per AS-20 on "Earning Per Share" since the bonus issue is an issue without consideration, the issue is treated as if it has occurred at the beginning of the Financial year. The EPS has been calculated in accordance with Accounting Standard AS-20. The Basic and diluted EPS for the Financial Year ended March 31, 2010, without the Bonus issue effect was Rs. 1.49 per share.

11. Segment Reporting

The Company is mainly engaged in the business of manufacturing of textiles consisting of fabric and garments. Considering the nature of the business and financial reporting of the company, the company has only one segment viz Garments as reportable segment . The company operates in domestic and export segment geographically The sales for both is separately given .But due to the nature of business the assets / liabilities and expenses for these activities can not be bifurcated separately. Domestic Sales consist sales made in different parts of India. Export Sales consist exports made

12. Investments

Particulars 2010-11 2009-10

Investment in shares , etc. Nil Nil

The company has not carried out any investment activities during the year . However, in the year 2010-11, the Company sold 340000 shares at a price of Rs 7/- per share of Bhandari Export Industries Limited . This amount of investment had earlier been written off in the financial year 2003-04, duly approved by the Board & Shareholders, due to the reason that the Company Bhandari Export Industries Limited was under the BIFR's/AAIFRs purview and intrinsic value of investments in the shares of that company had reduced to nil. As a result of the Order of Hon'ble BIFR the paid up share capital of said Company was reduced to 10%. Vide Hon'ble AAIFR's oder dated 07.09.2010, the Company Bhandari Export Industries Limited came out of BIFR's purview. As a result, the Investment of Rs 34,000,000 comprising of 3,400,000 equity shares of Rs. 10/- each in the said Company written off in the year 2003-04 , reduced to Rs 3,400,000 comprising of 340,000 equity shares of Rs. 10/- each after Hon'ble BIFR/AAIFR order. Accordingly, the amount of Rs. 23.80 Lacs has been reflected in the Profit & Loss Account for the year ended 31st March, 2011.

13. Security Provided To The Banks , Financial Institutions

With respect to Secured Loans mentioned in Schedule C , for Term loans( a, b , c of Schedule C ), the first charge on the fixed assets is given to the lending bank Second charge on Current Assets has been given to lending bank on pari passu basis. Working capital limits ( g, h, I of Schedule C ) are secured by Ist charge on all stocks , consisting of Raw material , Work in process, finished stock, stores & spares , goods lying with fabricators , goods in transit , lying on docks , book debts and all other current assets of the company , both present & future . Extension of charge on entire fixed assts of the company also given to the lending bank on pari-passu basis. Car loans ( d,e,f of Schedule C ) are secured by way of hypothecation of respective cars to respective Banks. All the credit facilities are guaranteed by personal guarantee of the Managing Director . In Schedule C, a,b,c,g,h and i are also collaterally secured by Equitable Mortgage of land and building of M/s Bhandari Knit Exports.

14. Micro, Small and Medium Industries:-

In accordance with the Notification No.GSR 719 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs ,certain disclosers are required to be made relating to Micro ,Small and Medium Enterprises as defined under the Micro ,Small and Medium Development Act,2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in these Financial Statement. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not expected to be material. Further , the Company has not defaulted towards the payments to such creditors.

15. Related Party Disclosure

Note :-

1. Associates Bhandari Knit Exports

2. Key Management Personnel Sh. Nitin Bhandari

3. Enterprises over which KMP is able to exercise Significant influence M/s Bhandari Knit Exports

16. Leases

The rental agreements entered into by the Company are cancellable in nature without any notice. Hence, Company has debited the rent paid for use of landed property to the Profit and Loss Account and AS-19 has been duly complied to the extent applicable to the Company. Moreover, according to AS-19, the payment of rent does not give rise to any right to acquire the ownership rights over the assets under consideration.

17. Information pursuant to Para 3 & 4 of Part II of Schedule VI to the Companies Act, 1956 (to the extent applicable) is as under: -

a) Capacities, Production, Turnover and Stocks

(i) Licensed and Installed Capacities

Hosiery Garments Installed Capacity 20,40,000 Pcs Per Annum (As Certified by the Management and being technical matter not verified by the Auditors )

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