Home  »  Company  »  Ganesha Ecosphere  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Ganesha Ecosphere Ltd.

Mar 31, 2016

1. The Company is having only one class of equity shares having par value of H10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their holding.

2. Compulsorily Convertible Preference Shareholders did not have the voting rights except as provided under section 47(2) of the Companies Act, 2013. These shares were having the preferential rights over equity shareholders, for getting the fixed dividend of H12/- per share, i.e., @ 12% on a pro-rata basis from the date of allotment on non-cumulative basis and also repayment of Capital in the event of liquidation. These shares were converted in to 2,725,877 (Twenty Seven Lakhs Twenty Five Thousand Eight Hundred Seventy Seven Only) Equity Shares of H10/- each of the Company at the Price of H114/- per Equity Share (including Premium of H104/- per Share), on 3rd August,2015.

3. The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during the period of 5 years immediately preceding the reporting date.

4. Represents dividend payment relating to previous year in respect of 2,725,877 equity shares (Previous Year Nil), which were allotted to MCAP India Fund Ltd. on conversion of Compulsory Convertible Preference Shares after 31st March 2015 but before 12th September 2015 (record date).

5. During the year, 250,000 (Previous Year 1,015,000) Warrants have been converted into equal number of Equity Shares of Rs.10/- each at a premium of Rs.104/- (Previous Year 54/-) per share.

Nature of Security and Terms of Repayment:

a. Rupee Term Loans from Banks & Financial Institution:

i) Rupee Term Loans and Foreign Currency Loan from Banks & FI, including Buyers credit from Banks, aggregating to Rs.948,702,129 (Previous Year Rs.1,089,505,569) are secured by way of first charge, on pari-passu basis among lending banks & FI, over entire fixed assets (present & future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others. These loans are repayable in monthly/ quarterly installments as per following maturity profile:

ii) Loans aggregating to Rs. Nil (Previous Year Rs.3,009,982) relate to vehicle purchased and are secured by way of hypothecation & exclusive charge of specified vehicles.

b. Rupee term loans from Others aggregating to Rs.18,943,787 (Previous Year Rs.31,098,598) relate to assets purchased under hire purchase/ financing arrangements with finance companies and are secured by way of hypothecation of the specified assets. These loans are further secured by personal guarantees of some of the executive directors, repayable in monthly installments and maturity profile is as under:

c. Repayment of Rupee term loans of Rs.1,176,871 (Previous Year Rs.20,476,202) from other parties have been guaranteed by executive directors. Out of above, Loan of Rs. Nil (Previous Year Rs.1.50 Crore) is additionally secured by pledge of shares owned by executive directors and others. These loans are repayable entirely during 2016-17 in monthly installments.

d. Unsecured Loans from Director and Directors'' relatives aggregating to Rs.71,275,000 (Previous Year Nil) are repayable during 2020-21 after the repayment of Banks'' term loans as per terms of sanction.

a. Working capital loans from Banks except Buyers'' Credit arrangements of Rs. Nil (Previous Year Rs.92,680,394/-) are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans are further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b. Buyers'' credit arrangements of Rs. Nil (Previous Year Rs.92,680,394/-) from banks are secured by way of pledge of fixed deposit receipts

# There are no outstanding dues to be paid to Investor Education and Protection Fund.

* Dues payable to employees and accrued expenses.

6. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011, Company has exercised the option of capitalizing the exchange differences arising on foreign currency long term loans for purchase of depreciable capital assets, in respect of accounting periods commencing from 1st April, 2011, which were hitherto recognized as income or expense in the period in which they arose. Accordingly, gain/ (loss) on account of foreign exchange fluctuations amounting to Rs.16,181,509/- [Previous Year (Rs.8,037,980)] has been adjusted with the cost of capital assets, to be depreciated over the balance useful life of respective assets.

7. Current year''s depreciation includes Rs. Nil [Previous Year Rs.3,035,446] being the written down value of Fixed Assets whose lives have expired as at 1st April 2014.

* Includes Loans to Employees.

# Fixed deposits with banks include deposits of Rs.2,898,006/- (Previous Year Rs.2,798,626/-) with maturity of more than 12 months.

* Own manufacturing as well as conversion of own manufactured Polyester Staple Fibre into Spun yarn on job work from an outside party.

8. Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a. Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.15,994,298 (Previous Year Rs.14,712,225), excluding H Nil (Previous Year Rs.108,843) transferred to Preoperative Expenses.

b. Defined benefit Plans

As per Actuarial Valuation on 31st March,2016

iv. Fair value & changes in fair value of Plan Assets during the year ended 31st March, 2016:

Gratuity & Leave encashment obligations are not funded

c. Employees benefits in the form of defined contribution plans and defined benefit plans (Gratuity & Leave Encashment) are not payable to the Executive Directors of the Company.

d. The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

Note 9: Segment Information

a. Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company''s business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

10. No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

11. The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

12. Previous year figures have been given in brackets.

Note 13: Financial & Derivatives Instruments

Nominal value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2016 amounting to Rs.109,685,947 (Previous Year Rs.23,657,797)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2016 amounting to Rs.146,162,871 (Previous Year Rs.421,783,596).

Note 14: Dues to Micro, Small and Medium Enterprises

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2016 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note 15: Previous Year figures has been reclassified to conform to this year''s classification.


Mar 31, 2015

1. Equity shares are having par value of Rs.10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their holding.

2. Compulsorily Convertible Preference Shareholders do not have the voting rights except as provided under section 47(2) of the Companies Act, 2013. These shares are having the preferential rights over equity shareholders, for getting the fixed dividend of Rs.12/- per share, i.e., @ 12% on a pro-rata basis from the date of allotment on non-cumulative basis and also repayment of Capital in the event of liquidation. These shares are convertible in to 27,25,877 (Twenty Seven Lacs Twenty Five Thousand Eight Hundred Seventy Seven Only) Equity Shares of Rs.10/- each of the Company at the Price of Rs.114/- per Equity Share (including Premium of Rs.104/- per Share), on or before 2nd October, 2015.

3. The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during immediately preceding 5 years.

# Dividend proposed to be distributed to Equity Shareholders Rs.1.20 (Previous Year Rs.1.20) per share.

* Dividend proposed to be distributed on Compulsorily Convertible Preference Shares 12% per annum (Previous Year Not Applicable).

4. During the year, 10,15,000 Warrants have been converted into equal number of Equity Shares of Rs.10/- each at a premium of Rs.54/- per share.

5. During the year 2,50,000 Warrants were issued convertible into equal number of Equity Shares of Rs.10/- each at a premium of Rs.104/- per share, at any time, in one or more tranches, on or before 2nd April, 2016.

6. Nature of Security and Terms of Repayment:

a) Rupee Term Loans from Banks & Financial Institution:

i) Rupee Term Loans and Foreign Currency Loan from Banks & FI, including Buyers credit from Banks, aggregating to Rs.108,95,05,569 (Previous Year Rs.127,79,66,749) are secured by way of first charge, on pari-passu basis among lending banks & FI, over entire fixed assets (present & future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others. These loans are repayable in monthly/ quarterly installments as per following maturity profile:

c) Repayment of Rupee term loans of Rs.2,04,76,202 (Previous year Rs.8,35,69,186) from other parties have been guaranteed by executive directors. Out of above, Loan of Rs.1.50 crores (Previous Year Rs.5.50 crores) is additionally secured by pledge of shares owned by executive directors and others. These loans are repayable in monthly/ quaterly installments as per following maturity profile:

a) Working capital loans from Banks except Buyers' Credit arrangements of Rs.9,26,80,394/- (Previous Year Rs.9,63,79,566/-) are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans are further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b) Buyers' credit arrangements of Rs.9,26,80,394/- (Previous Year Rs.9,63,79,566/-) from banks are secured by way of pledge of fixed deposit receipts.

# There are no outstanding dues to be paid to Investor Education and Protection Fund.

* Dues payable to employees and accrued expenses.

7. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2011, Company has exercised the option of capitalizing the exchange differences arising on foreign currency long term loans for purchase of depreciable capital assets, in respect of accounting periods commencing from 1st April, 2011, which were hitherto recognized as income or expense in the period in which they arose. Accordingly, gain/ (loss) on account of foreign exchange fluctuations amounting to Rs.80,37,980 [Previous year (Rs.16,11,426)] has been adjusted with the cost of capital assets, to be depreciated over the balance useful life of respective assets.

8. Current year's depreciation includes Rs.3,035,446/- (Previous Year Nil) being the written down value of Fixed Assets whose lives have expired as at 1st April 2014.

9. Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a) Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.147,12,225 (Previous Year Rs.100,72,637), excluding Rs.1,08,843 (Previous Year Rs.7,96,026) transferred to Preoperative Expenses.

b) Defined benefit Plans

As per Actuarial Valuation on 31st March, 2015

iv) Fair value & changes in fair value of Plan Assets during the year ended 31st March, 2015:

Gratuity & Leave encashment obligations are not funded

c) Employees benefits in the form of defined contribution plans and defined benefit plans (Gratuity & Leave Encashment) are not payable to the Executive Directors of the Company.

d) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

10. SEGMENT INFORMATION

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company's business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

11. RELATED PARTY DISCLOSURES

Names of related parties & description of relationship:

A. Key Management Personnel:

1. Shri Shyam Sunder Sharmma Chairman cum Managing Director

2. Shri Vishnu Dutt Khandelwal Executive Vice Chairman

3. Shri Sharad Sharma Joint Managing Director

4. Shri Rajesh Sharma Executive Director

5. Shri Gopal Singh Shekhavat Director Administration

B. Relatives of Key Management Personnel:

1. Smt. Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Smt. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Smt. Seema Sharma Wife of Shri Sharad Sharma

4. Smt. Ratna Sharma Wife of Shri Rajesh Sharma

5. Shri Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

6. Shri Yash Sharma Son of Shri Sharad Sharma

C. Companies & Concerns Controlled by Key Management Personnel/ Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited

12. No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

13. The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

14. Previous year figures have been given in brackets.

(Amount in Rs.)

As at 31.03.20 As at 31.03.2014

15. CONTIGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

i) Contingent Liabilities

a) Bills Discounted under Letters 63,484,109 87,246,962 of Credit and outstanding

b) Claims against the Company 2,247,938 2,205,938 not acknowledged as debt

c) Disputed Tax matters under appeal:

- Income Tax Demand 2,818,417 250,000

- Entry Tax Liability 2,787,849 2,787,849

- Excise Duty Liability - 1,557,031

- Service Tax 295,722 -

d) Appeal filed against the Company before Hon'ble Supreme - 8,097,600 Court in respect of amount received by the Company under an award decided in favour of the Company

e) Service Tax Refund disputed by Customs, Central Excise and - 228,259 Service Tax Department in CESTAT

ii) Commitments

a) Estimated amount of contracts remaining to be executed on 12,498,082 66,695,616 capital account and not provided for (net of advances)

b) Undertakings given by the Company to fulfil quantified 208,027,786 207,233,062 exports in respect of capital goods imported under the Export Promotion Capital Goods Scheme of the Government of India (Net of obligations fulfilled)

16. Nominal value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2015 amounting to Rs.2,36,57,797 (Previous Year Rs.3,92,07,720)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2015 amounting to Rs.42,17,83,596 (Previous Year Rs.46,61,58,454).

17. DUES TO MICRO,SmALL AND MeDIUM ENTERPRiSeS

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2015 (Previous year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

18. Previous year figures have been reclassified to conform to this year's classification.


Mar 31, 2014

1.1 Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a) Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.10,072,637 (Previous Year Rs.7,585,237), excluding Rs.796,026 (Previous Year Nil) transferred to Pre-operative expenses.

b) Defined benefit Plans

As per Actuarial Valuation on 31st March,2014

iv) Fair value & changes in fair value of Plan Assets during the year ended 31st March, 2014:

Gratuity & Leave encashment obligations are not funded

c) Employees benefits in the form of defined contribution plans and defined benefit plans (Gratuity & Leave Encashment) are not payable to the Executive Directors of the Company.

d) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

Note SEGMENT INFORMATION ~

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company''s business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

Note RELATED PARTY DISCLOSURES ~

2.1 Names of related parties & description of relationship:

A. Key Management Personnel

1. Mr. Shyam Sunder Sharmma Chairman cum Managing Director

2. Mr. Vishnu Dutt Khandelwal Executive Vice Chairman

3. Mr. Sharad Sharma Joint Managing Director

4. Mr. Rajesh Sharma Executive Director

5. Mr. Gopal Singh Shekhavat Director (Administration)

B. Relatives of Key Management Personnel:

1. Mrs. Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Mrs. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Mrs. Seema Sharma Wife of Shri Sharad Sharma

4. Mrs. Ratna Sharma Wife of Shri Rajesh Sharma

5. Mr. Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

6. Mr. Yash Sharma Son of Shri Sharad Sharma

C. Companies & Concerns Controlled by Key Management Personnel/Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited

3.1 No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

3.2 The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

3.3 Previous Year figures have been given in brackets.

(Amount in H)

As at 31.03.2014 As at 31.03.2013

4 CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

i) Contingent Liabilities

a) Bills Discounted under Letters of Credit and outstanding 87,246,962 58,121,917

b) Claims against the Company not acknowledged as debt 2,205,938 1,980,303

c) Disputed Tax matters under appeal:

- Income Tax demand 250,000 250,000

- Entry Tax Liability 2,787,849 2,787,849

- Excise Duty Liability 1,557,031 1,557,031

- RTO Tax liability in respect of Company''s old vehicle - 552,960

d) Appeal filed against the Company before Hon''ble Supreme 8,097,600 8,097,600

Court in respect of amount received by the Company under an award decided in favour of the Company

e) Service Tax Refund disputed by Customs, Central Excise and 228,259 228,259

Service Tax Department in CESTAT

Note FINANCIAL & DERIVATIVES INSTRUMENTS ~

Value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2014 amounting to H39,207,720 (Previous Year H38,091,248)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2014 amounting to H466,158,454 (Previous Year H207,832,014).

Note EM DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES ~

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2014 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note EB PREVIOUS YEAR FIGURES HAVE BEEN RECLASSIFIED TO CONFORM TO THIS YEAR''S CLASSIFICATION.


Mar 31, 2013

1.1 Disclosures in accordance with Accounting Standard - 15 on Employee benefits

a) Defined Contribution Plans

Contribution towards Defined Contribution Plans, recognized as expenses for the year is Rs.75,85,237 (Previous Year Rs.70,96,041).

b) Defined benefit Plans

As per Actuarial Valuation on 31st March, 2013

Note 2 SEGMENT INFORMATION

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company''s business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

Note 3 RELATED PARTY DISCLOSURES

3.1. Names of related parties & description of relationship:

A. Key Management Personnel:

1. Shri Shyam Sunder Sharmma Chairman cum Managing Director

2. Shri Vishnu Dutt Khandelwal Executive Vice Chairman

3. Shri Sharad Sharma Joint Managing Director

4. Shri Rajesh Sharma Executive Director

B. Relatives of Key Management Personnel:

1. Smt. Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Smt. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Smt. Seema Sharma Wife of Shri Sharad Sharma

4. Smt. Ratna Sharma Wife of Shri Rajesh Sharma

5. Shri Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

C. Companies & Concerns Controlled by Key Management Personnel/Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited

3.2 No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

3.3 The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

3.4 Previous Year figures have been given in brackets.

Note 4 FINANCIAL & DERIVATIVES INSTRUMENTS

Nominal value of Forward Contracts entered into by the Company for hedging foreign currency risks and outstanding as on 31st March, 2013 amounting to Rs.38,091,248 (Previous Year Rs.51,650,664).

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2013 amounting to Rs.207,832,014 (Previous Year Rs.167,944,856).

Note 5 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2013 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note 6

Previous Year figures have been reclassified to conform to this year''s classification.


Mar 31, 2012

1.1 There is no change in Preference Share Capital during the year.

1.2 Equity shares are having par value of Rs. 10/-per share. Each Shareholder is eligible for one vote per share. Equity shareholders are having the right of dividend, proposed by the Board of Directors subject to the approval of shareholders except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their holding.

1.3 Preference Sharesholders do not have the voting rights but are having the preferential rights over equity shareholders, for getting the fixed dividend on cumulative basis and also redemption of Capital in the event of liquidation. Preference Shares of Series I are redeemable at a premium of Rs. 200/- each on 30.09.2013 and those of Series II are redeemable at par on 31.07.2012.

1.4 For terms of Optionally Convertible Debentures, please refer Note No. 5.

1.5 The Company has neither issued shares for a consideration other than cash/ bonus shares nor bought back any shares during immediately preceding 5 years.

2.1 During the year, 15,16,000 warrants (out of 27,00,000 warrants outstanding as at the beginning of the year) have been converted into equal number of equity shares of Rs. 10/- each at a premium of Rs. 30/- per share. Remaining 11,84,000 Warrants were cancelled due to non exercise of conversion option by the holders thereof and upfront money received have been forefeited.

Nature of Security and Terms of Repayment:

a) Rupee Term Loans from Banks:

i) Rupee Term Loans from Banks, including Buyers credit from Banks, aggregating to Rs. 29,49,01,761 (Previous Year Rs. 27,73,93,358) are secured by way of first charge, on pari-passu basis among lending banks, over entire fixed assets (present Et future) (except the assets exclusively charged/ hypothecated against specific loan) including equitable mortgage of entire properties of the Company. These loans are further secured by way of extension of first charge on pari-passu basis, on current assets of the Company and personal guarantees of executive directors and others.

Rs. 2,95,34,678 are repayable in 4 quarterly installments, 10,27,14,526 are repayable in 11 quarterly installments, Rs. 6,41,83,757 are repayable in 12 quarterly installments and Rs. 9,84,68,800 are repayable in 20 quarterly installments.

ii) Corporate term loan from bank ofRs. 4,50,00,000 (Previous year Rs. 6,00,00,000) is secured by way of extension of first charge, on pari-passu basis with other working capital lending banks, over entire current assets (present and future) of the company. Corporate loan is further secured by way of extension of first pari-passu charge over fixed assets, excluding assets specifically charged/ hypothecated for specific loan, of the company and personal guarantees of executive directors and others.

This loan is repayable in 6 quarterly installments.

iii) Loans aggregating to Rs. 9,42,421 (Previous year Rs. 7,27,892) relate to vehicle purchased and are secured by way of hypothecation of specified vehicles.

Rs. 3,63,421 are repayable in 12 monthly installments and Rs. 5,79,000 are repayable in 36 monthly installments.

b) Rupee term loans from Others aggregating to Rs. 2,37,02,024 (Previous year Rs.1,98,60,417) relate to assets purchased under hire purchase/ financing arrangements with finance companies and are secured by way of hypothecation of the specified assets. These loans are further secured by personal guarantees of some of the executive directors. Repayable in monthly installments and maturity profile is as under:

c) Repayment of Optionally Convertible Debentures ofRs. 13,50,00,000 (Previous year Rs. 13,50,00,000) has been guaranteed by executive directors and others personally as well as pledge of shares owned by them.

These Debentures are having the option, to be exercised, in full or in part, till 11th September, 2012 by the holder, of conversion into 15,00,000 equity shares of Rs. 10/- each at a premium of Rs. 80/- per share. These Debentures are redeemable in three equal half yearly installments, commencing from 12th March, 2013 along with premium @ 22% p.a., if the option of conversion is not exercised by the holder thereof.

d) Repayment of Rupee term loans ofRs. 70,18,170 (Previous year Rs. 46,88,837) from other parties have been guaranteed by some of the executive directors and are repayable in monthly installments as per following maturity profile:

a) Working capital loans from Banks except Buyers' Credit arrangements are secured by hypothecation of current assets of the Company both present and future, ranking pari-passu inter-se. These loans have further secured by way of extension of pari-passu 1st charge on fixed assets (except the assets exclusively charged/ hypothecated against specific loan) of the Company and also guaranteed by the Executive Directors and others.

b) Buyers' credit arrangements from banks are secured by way of pledge of fixed deposit receipts.

Note Rs. SEGMENT INFORMATION ~

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17), Company is primarily in the business of manufacture and sale of Polyester Staple Fibre and Polyester Yarn which are mainly having similar risks and returns. Since Company's business activity falls within a single business segment (synthetic textile), hence it has no other primary reportable segments.

3.1. Names of related parties £t description of relationship:

A. Key Management Personnel:

1. Shri Shyam Sunder Sharmma Chairman cum Managing Director

2. Shri Vishnu Dutt Khandelwal Executive Vice Chairman

3. Shri Sharad Sharma Joint Managing Director

4. Shri Rajesh Sharma Executive Director

B. Relatives of Key Management Personnel:

1. Smt.Vimal Sharma Wife of Shri Shyam Sunder Sharmma

2. Smt. Nirmal Khandelwal Wife of Shri Vishnu Dutt Khandelwal

3. Smt. Seema Sharma Wife of Shri Sharad Sharma

4. Smt. Ratna Sharma Wife of Shri Rajesh Sharma

5. Shri Sandeep Khandelwal Son of Shri Vishnu Dutt Khandelwal

C. Companies £t Concerns Controlled by Key Management Personnel/Relatives:

1. Sandeep Yarns Pvt. Ltd.

2. GPL Finance Limited.

3.2 No amount has been written off or written back during the year in respect of debts due from or to related parties. (Previous Year Nil).

3.3 The Company has not given/provided any guarantee/collaterals for and on behalf of the aforementioned related parties.

3.4 Previous year figures have been given in brackets.

(Amounting) As at 31.03.2012 As at 31.03.2011 Note CONTINGENT LIABILITIES AND COMMITMENTS

(to the extent not provided for)

i) Contingent Liabilities

a) Bills Discounted under Letters of Credit and outstanding 94,299,280 112,571,200

b) Claims against the Company not acknowledged as debt 1,581,338 2,018,653

c) Disputed Tax matters under appeal:

- Custom Duty demand - 778,780

- Income Tax demand 250,000

- EntryTax Liability 2,787,849 2,787,849

- RTO Tax liability in respect of Company's old vehicle 552,960 552,960

d) Appeal filed against the Company before Hon'ble Supreme Court in respect of amount received by the Company under an award decided in favour of the Company 8,097,600 8,097,600

e) Service Tax Refund disputed by Customs, Central Excise and Service Tax Department in CESTAT 228,259 228,259

ii) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 136,278,910 3,550,000

b) Undertakings given by the Company to fulfil quantified exports in respect of capital goods imported under the Export Promotion Capital Goods Scheme of the Government of India 8,998,694 140,584,206

Note 4 UNANCIAL a DERIVATIVES INSTRUMENTS

Nominal value of Forward Contracts entered into by the Company for hedging Foreign Currency Risks and outstanding as on 31st March, 2012 amounting to Rs.5,16,50,664 (Previous Year Rs.20,78,94,646)

Un-hedged Foreign Currency exposure that are not hedged by derivative instruments or forward contracts as at 31st March, 2012 amounting to Rs.16,79,44,856 (Previous Year Rs.13,81,66,179).

Note 5 EXCISE DUTY PROVISION

During the year 2010-11, Excise duty was imposed by Excise authorities on one of the Company's product through a Circular issued on 29th June, 2010. As per the legal opinion obtained, the Circular was not legally tenable as it was against the legal provisions as well as settled judicial position by CESTAT in company's own case. Company had disputed the imposition of excise duty through the Circular and taken the legal recourse. Pending the legal case, Company had, however, started paying excise duty, under dispute, since December 6, 2010. Liability of excise duty (net of Cenvat) for the period from 29th June, 2010 to December 5, 2010 is Rs. 88,91,127 (Previous Year Rs. 97,01,566), which has already been provided for in the books.

Note 6 MICRO, SMALL AND MEDIUM ENTERPRISES

There are no dues to Micro, Small and Medium Enterprises as at 31st March, 2012 (Previous Year Nil). The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified based on the information available with the Company.

Note

The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised Schedule VI under the Companies Act, 1956, the Financial Statements for the year ended 31st March, 2012 are prepared as per the revised Schedule VI. Accordingly, the previous year figures have also been reclassified and regrouped to conform to this year's classification and grouping. The adoption of the revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements.

Find IFSC