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Notes to Accounts of Garware-Wall Ropes Ltd.

Mar 31, 2014

I.CORPORATE INFORMATION

Garware-Wall Ropes Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at three Stock Exchanges in India. The Company is engaged in manufacturing and selling various products such as Ropes, Twine, Yarn, Fishnet, other Nets and Technical Textiles. The Company is providing solution to the infrastructure industries which include coastal Protection, land filling etc. The company caters to both domestic and international markets.

2. TRANSACTIONS WITH RELATED PARTIES (I) List of Related Parties and Relationship:

A. Associates Companies

I. Garware Meditech Pvt. Limited

B. Subsidiary / Joint Venture Companies

I. Garware Environmental Services Pvt. Ltd.

C. Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives

1. Manmit Investment & Trading Company Pvt. Ltd.

2. Garware Capita! Markets Ltd.

3. Gurukrupa Investments & Trading Company Pvt. Ltd.

4. Sanand Investments & Trading Company Pvt. Ltd.

5. Moonshine Investments & Trading Company Pvt. Ltd.

6. Starshine Investments & Trading Company Pvt. Ltd.

7. Sukukar Holdings & Trading Company Pvt. Ltd.

8. Garware Utzon Cordage Ltd.

9. Garware Indus Consulting Ltd.

10. Garware Infrastructure Pvt. Ltd

11. Garware Bestretch Ltd.

12. Garware Holdings Limited 13. Suramex Exim Pvt. Ltd.

14. Garware Apparel Private Ltd.

15. Gartex Industries Ltd.

16. Ramesh Trading Company

17. Sunita Trading Company

18. Diya Trading Company

19. Vayu Trading Company

20. RSDV investments Pvt. Ltd. of Rs. 2183 lacs (Previous year Rs. 2153 lacs)

21. RSDV Finance and Trading Company Pvt. Ltd. of Rs. 80.50 lacs (Previous year Rs. 78.50 lacs)

22. Garware Securities Broking Ltd. of Rs. 3.50 Lacs ( Previous year Rs. 6.50 lacs)

23. Ceebeegee Investments Company Pvt. Ltd. of Rs. 87 lacs (Previous year Rs. 85 lacs)

24. Garware Resach Institute

25. Vimlabai Garware Research Institute

26. Consolidated Agricutural & Dairy Farming Company Pvt. Ltd.

D. Directors - Key Management Personnel

Mr. V. R. Garware

E. Relatives of Key Management Personnel

Ms. Diya Garware Ibanez

(Ill) Disclosure in Respect of Material Related Party Transactions during the year :

1 Purchase of Good/Services include Purchase from Garware Bestrech Ltd. ofRs. 6.63 lacs (Previous year Rs. 9.98 lacs).

2 Purchase of Shares includes :

Shares of Garware Environmental Services Pvt. Ltd. of Rs. Nil lacs (Previous year Rs. 5 lacs).

3 Sales of Flat to Mr. V R. Garware of Rs. Nil lacs (Previous year Rs. 1,020 lacs), Rent paid to Mr. V R. Garware ofRs. 63 Lacs (Previous year Rs. Nil) for the Flat taken on Leave & License.

4 Deposit received ofRs. 4,845.33 lacs and refunded of Rs. 3,580.83 lacs (Previous year Rs. 3,799.35 lacs) include deposits from :

Mr. V R. Garware of Rs. 91 lacs (Previous year Rs. Nil),

Late Shri Ramesh Bhalchandra Garware of Rs. 1291.50 lacs and paid ofRs. 27 lacs (Previous yearRs. Nil), Garware Capital Markets Ltd. of Rs. 664.50 lacs (Previous year Rs. 1, 190 lacs), Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 66.70 lacs (Previous year Rs. 55 lacs), Moonshine Investments and Trading Co. Pvt. Ltd. of Rs. 35 lacs (Previous year Rs. 21.50 lacs), RSDV Investments Pvt. Ltd. of Rs. 2,183 lacs (Previous year Rs. 21.53 lacs), RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 80.50 lacs (Previous year Rs. 78.50 lacs), Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 21.20 lacs (Previous year Rs. 13 lacs), *

Starshine Investments and Trading Co. Pvt. Ltd of Rs. 15.28 lacs (Previous year Rs. 9.50 lacs), Garware Securities Broking Ltd. of Rs. 3.50 Lacs (Previous year Rs. 6.50 lacs), Suramex Exim Pvt. Ltd. of Rs. 49.70 (Previous year Rs. Nil), Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs. 5.20 lacs (Previous year Rs. 2.60 lacs), Garware Utzon (Cordage) Ltd. of Rs. 119.50 lacs (Previous year Rs. 89.25 lacs), Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs. 19.50 lacs (Previous year Rs. 12.50 lacs), Garware Indus Consulting Ltd. of Rs. 112.25 lacs (Previous year Rs. 83 lacs), Ceebeegee Investments Co. Pvt. Ltd. of Rs. 87 lacs (Previous year Rs. 85 lacs).

5 Interest paid on Deposit of Rs. 216.58 lacs (Previous year Rs. 369,32 lacs) includes : Mr. V R. Garware of Rs. 5.62 lacs (Previous year Rs. Nil), Late Shri Ramesh B. Garware of Rs. 8.46 lacs (Previous year Rs. Nil), Garware Capital Markets Ltd. of Rs. 63.55 lacs (Previous year Rs. IE 2.79 lacs), Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 6.64 lacs (Previous year Rs. 5.42 lacs),Moonshine Investments and Trading Co. Pvt. Ltd. of Rs. 3.07 lacs (Previous year Rs. 1.68 lacs), RSDV Investments Pvt. Ltd. of Rs. 90.34 lacs (Previous year Rs. 219.86 lacs), RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 3.58 lacs (Previous year Rs. 5.87 lacs), Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 1.83 lacs (Previous year Rs. 1.04 lacs), Starshine Investments and Trading Co. Pvt. Ltd. of Rs. 1.30 lacs (Previous year Rs. 0.74 lacs), Garware Securities Broking Ltd. of Rs. 0.06 Lacs (Previous year Rs. 0.18 lacs), Suramex Exim Pvt. Ltd. of Rs. 3.96 lacs (Previous year Rs. NIL), Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs. 0.30 lacs (Previous year Rs. 0.15 lacs), Garware Utzon (Cordage) Ltd. of Rs. 11.51 lacs (Previous year Rs. 8.21 lacs), Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs. 1.70 lacs (Previous year Rs. 0.99 lacs), Garware Indus Consulting Ltd. of Rs. 10.73 lacs (previous year Rs. 7.60 lacs), Ceebeegee Investments Co. Pvt. Ltd. of Rs. 3.93 lacs (Previous year Rs. 4.79 lacs).

6 Payment to Key management personnel includes

Mr. V R. Garware Rs. 200.93 lacs (Previous year Rs. 111.27 lacs).

3. CONTINGENT LIABILITIES

(i) Disputed Excise Duty Rs. 27.57 lacs (Previous year Rs. 32.12 lacs).

(ii) Bank Guarantees for Rs. 1,498.71 lacs (Previous year Rs. 1,435.84 lacs), in the ordinary course of business, against which the Company has issued counter guarantees for the overall bank limits ofRs. 14,535 lacs (Previous year Rs. 14,535 lacs).

(iii) Disputed amount of Sales Tax liability Rs. 196.68 lacs (Previous year Rs. 196.68 lacs).

(iv) Export Sales Bills Discounted with the Banks Rs.3,016.05 lacs (Previousyear Rs. 1,477.86 lacs).

(v) The interest portion on delayed payment of Octroi Liability amounting to Rs. 21.64 lacs (Previous year Rs. 21.64 lacs) is under dispute.

(vi) The Income Tax liability due to the department''s appeals at higher levels (Supreme Court) amounting to Rs.208 lacs (Previous year Rs. Nil).

44. DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

(a) An amount of Rs. 94.10 lacs (31 st March, 2013 Rs. 186.84 lacs) and Rs. NIL (3 Ist March, 2012 Rs.7.36 lacs ) was due and outstanding to Suppliers as at the end of the year on account of Principle and Interest respectively.

(b) No interest was paid during the year.

(c) No interest outstanding at the end of the year where principle amount has been paid off to the supplier but interest amount is outstanding on 31st March, 2014.

(d) No amount of interest was accrued and unpaid at the end of the year.

The above information and that given in Note 10 - ''Trade Payable1 regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the Auditors.


Mar 31, 2013

1. CORPORATE INFORMATION

Garware-Wall Ropes Limited (the Company) is a public company based in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at three Stock Exchanges in India. The Company is engaged in manufacturing and selling various Technical Textile products such as Ropes, Twine, Yarn, Fishnet and other Nets. The Company also provides solutions to infrastructure sectors including coastal protection, land filling, etc. The Company caters to both domestic and international markets.

2. TRANSACTIONS WITH RELATED PARTIES

(I) List of Related Parties and Relationship:

A. Associates Companies

1. Garware Elastomerics Ltd.

2. Garware Bestretch Ltd.

3. Garware Meditech Pvt. Limited

B. Subsidiary / Joint Venture Companies

1. Garware Environmental Services Pvt. Ltd.

C. Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives

1. RSDV Finance Company (P.) Ltd.

2. RSDV Investments Pvt. Ltd.

3. Garware Securities Broking Ltd.

4. Garware Capital Markets Ltd.

5. Garware Indus Consulting Ltd.

6. Garware Utzon (Cordage) Ltd.

7. Manmit Investments & Trading Company (P.) Ltd.

8. Ceebeegee Investment Company Pvt. Ltd.

9. Moonshine Investments & Trading Co. Pvt. Ltd.

10. Gurukrupa Investments & Trading Co. Pvt. Ltd.

11. Sanand Investments & Trading Company Pvt. Ltd.

12. Starshine Investments & Trading Company Pvt. Ltd.

13. Sukukar Holdings & Trading Company Pvt. Ltd.

D. Directors - Key Management Personnel

Mr. R. B. Garware Mr. V. R. Garware

E. Relatives of Key Management Personnel

Mrs. Diya Garware Ibanez

F. Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives where no transactions are entered during the year

1. Consolidated Agricultural & Dairy Farming Company (P.) Ltd.

2. Vimalabai Garware Research Institute

3. Ramesh Trading Company

4. Sunita Trading Company

5. Diya Trading Company

6. Vayu Trading Company

7. Ramesh B. Garware (HUF)

8. Gartex Industries Ltd.

9. Garware Motors Ltd.

10. Garware Infrastructure Pvt. Ltd.

11. Garware Apparel Pvt. Ltd.

12. Garware Research Institute

13. Suramex Exim (P.) Ltd.

14. Garware Holdings Ltd.

3. EARNING PER SHARE (EPS)

EPS computed in accordance with Accounting Standard 20 "Earning Per Share"

Basic Earning Per Share is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by the weighted average number of Equity Shares outstanding during the period. For the purpose of calculating diluted earning per Share, the net profit or loss for the period attributable to Equity Shareholders and the weighted average number of Shares outstanding during the period are adjusted for the effects of all dilutive potential Equity Shares.

4. CONTINGENT LIABILITIES

(i) Disputed Excise Duty Rs. 32.12 lacs (Previous year Rs. 27.57 lacs).

(ii) Bank Guarantees for Rs. 1,435.84 lacs (Previous year Rs. 1,477.26 lacs), in the ordinary course of business, against which the Company has issued counter guarantees for the overall bank limits of Rs. 14,535 lacs (Previous year Rs. 13,500 lacs).

(iii) Disputed amount of Sales Tax liability Rs. 196.68 lacs (Previous year Rs. 42.15 lacs).

(iv) Disputed Property Tax Liability on factory premises, Pune Rs. 20.97 lacs (Previous year Rs. 20.97 lacs). (v) Export Sales Bills discounted with the Banks Rs. 887.51 lacs (Previous year Rs. 982.42 lacs).

(vi) The interest portion on delayed payment of Octroi Liability amounting to Rs. 21.64 lacs (Previous year Rs. 21.64 lacs) is under dispute.

5. DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

(a) An amount of Rs. 186.84 lacs (31st March 2012 Rs. 7.36 lacs) and Rs. NIL (31st March 2011 Rs. NIL) was due and outstanding to Suppliers as at the end of the year on account of Principal and Interest respectively.

(b) No interest was paid during the year.

(c) No interest outstanding at the end of the year where principal amount has been paid off to the supplier but interest amount is outstanding on 31st March 2013.

(d) No amount of interest was accrued and unpaid at the end of the year.

The above information and that given in Note 10 - '' Trade Payable '' regarding Micro , Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the Auditors.

6. ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED ON CAPITAL ACCOUNT AND NOT PROVIDED FOR NET OF ADVANCES Rs. 52.95 LACS (PREVIOUS YEAR 40.75 LACS)

7. INTEREST IN FIRM / JOINT VENTURES

A. The Company has entered into a partnership agreement (Sopan D. Patil & GWRL JV) in which the Company holds 40% share in profit / loss to execute Geo Synthetics Work - Contract value worth Rs. 577.31 lacs. During the year ended 31.03. 2013, the said partnership has incurred a loss of Rs. 0.74 lacs (Previous year Rs. 0.08 lac).

B. The Company had a joint venture with Waste Management Pacific Pty Ltd. (WMPL), (a company incorporated under the law of Australia) to carry out the business of Environmental Engineering through ''Garware Environmental Services Pvt. Ltd.'' (GESPL). GESPL become a wholly owned subsidiary of the Company w.e.f 28.11.2012 on acquisition of Shares held by WMPL.

8. These Financial Statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. This has significantly changed the disclosure and presentation made in the Financial Statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1 CORPORATE INFORMATION

Garware-Wall Ropes Limited (the Company) is a public company based in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at three Stock Exchanges in India. The Company is engaged in manufacturing and selling various technical-textile products such as Ropes, Twine, Yarn, Fishnet, other Nets. The Company also provides solutions to infrastructure sectors including coastal protection, land filling, etc. The Company caters to both domestic and international markets.

Notes:

1) CITI Bank Rupee Loan is repayable in 20 quarterly instalments of Rs. 78.74 Lacs each along with interest from 28th January, 2008. This loan is secured by way of hypothecation of the whole of the Plant & Machinery including its moveable Plant & Machinery, Machinery Spares, Tools & Accessories, both present & future on first charge on pari-passu basis with others.

2) IDBI Bank Term Loan under TUFS loan is repayable in 20 quarterly instalments of Rs. 52.70 Lacs each along with interest from 31st July, 2009. This loan is secured by way of charge on specific assets financed by the Bank.

3) CITI Bank ECB Term Loan is repayable in 16 quarterly instalments of Rs. 156.25 Lacs each along with interest from 26th December, 2012. This loan is secured by way of hypothecation of the whole of the Movable Fixed Assets comprising Plant & Machinery, Computers, Furniture and Fixtures, Machinery Spares, Tools & Accessories and other Assets both present & future on first charge on pari-passu basis with others.

4) HDFC Bank Rupee Term Loan is repayable in 12 quarterly instalments of Rs. 208.33 Lacs each along with interest from 4th January, 2012. This loan is secured by way of hypothecation of the Movable Properties including Plant & Machinery, Machinery Spares, Tools & Accessories and other Movables both present & future on first charge on pari-passu basis with others.

Note:

The above Secured Loans are availed from Consortium Bankers, viz., Bank of India, Bank of Baroda, Bank of Maharashtra, IDBI Bank, HDFC Bank, The Royal Bank of Scotland N.V and CITI Bank N.A. and are secured by a first charge, pari passu, inter-se, by way of hypothecation of the Company's Current Assets, viz. raw materials, stock-in-process, semi-finished goods, finished goods, stores & spares not relating to Plant & Machinery, bills receivable and book debts and other movables (except for Plant and Machinery secured by way of second charge), both present and future. Except loans from IDBI Bank, HDFC Bank and CITI Bank N.A., the other loans from remaining Consortium Bankers are also secured to the extent of Rs. 8,300 Lacs by Second Charge over the Company's Immoveable Properties, by way of equitable mortgage, ranking pari passu, inter-se. The Cash Credit, Rupee Loan and Rupee Packing Credit (rupee and foreign currency loan) loan is repayable on demand.

Note:

A. Disclosure pursuant to Accounting Standard "AS7 - Construction Contracts", the Construction Work-in-Progress (Fibre & Industrial Product & Project Segment) amounts to Rs. 2802.68 lacs (31st March 2011 Rs. 796.90 lacs).

B. For these construction contracts, the Progress payments received, Advances and Retentions on account of Contracts are Rs. 562.51 lacs, Rs. 60.34 lacs and Rs. 101.14 lacs(3lst March 2011 Rs. 199.32 lacs, Rs.5.00 lacs and Rs. 31.63 lacs) respectively.

Note: Employer's Contribution includes payments made by the Company directly to its past employees.

Broad category of Plan Assets relating to Gratuity as a percentage of total Plan Assets

The Company's Gratuity Fund is managed by Life Insurance Corporation of India and HDFC Standard Life Insurance. The Plan Assets under the Fund are deposited under approved securities.

1 SEGMENT REPORTING

(a) The Company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. These business segments are : I. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as secondary segments.

(b) Segment accounting policies are the same as those used in the preparation of the Financial Statements. The Company generally accounts for inter-segment sales and transfers at cost plus appropriate margins.

(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses.

(d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallocable.

iii) Notes:

The business segments viz. 'Synthetic Cordage' and 'Fibre and Industrial Products' and Projects' are considered as the primary segments. Synthetic Cordage comprises of ropes, twines and nettings made of twine, fibre, synthetic fabric, yarn, woven and non-woven textiles, secugrids, coated steel gabions, machinery and project form the Fibre and Industrial Products & Projects segment. Inter-segment sales are accounted for at market value.

The geographical segments on the basis of location of customers are considered as secondary segments. Geographic segments of the Company are India and outside India.

2 TRANSACTIONS WITH RELATED PARTIES

(I) List of related Parties and relationship:

A. Associates Companies

1. Garware Elastomerics Ltd.

2. Garware Bestretch Ltd.

3. Garware Meditech Pvt. Limited

B. Subsidiary/ Joint Venture Companies

I. Garware Environmental Services Pvt. Ltd.

C. Enterprises owned or significantly influenced by key management personnel or their relatives

1. RSDV Finance Company (R) Ltd.

2. RSDV Investments Pvt. Ltd.

3. Suramex Exim (R) Ltd.

4. Garware Capital Markets Ltd.

5. Garware Indus Consulting Ltd.

6. Garware Utzon (Cordage) Ltd.

7. Manmit Investments & Trading Company (R) Ltd.

8. Consolidated Agricultural & Dairy Farming Company (R) Ltd.

9. Vimalabai Garware Research Institute

10. Ramesh Trading Company

11. Sunita Trading Company

12. Diya Trading Company

13. Vayu Trading Company

14. Ramesh B. Garware (HUF)

15. Garware Securities Broking Ltd.

16. Gartex Industries Ltd.

17. Garware Motors Ltd.

18. Garware Infrastructure Pvt. Ltd.

19. GarwareApparel Pvt. Ltd.

20. Ceebeegee Investment Company Pvt. Ltd.

21. Moonshine Investments & Trading Co. Pvt. Ltd.

22. Gurukrupa Investments & Trading Co. Pvt. Ltd.

23. Sanand Investments & Trading Company Pvt. Ltd.

24. Starshine Investments & Trading Company Pvt. Ltd.

25. Sukukar Holdings & Trading Company Pvt. Ltd.

26. Garware Research Institute

D. Directors - Key management personnel

Mr. R. B. Garware Mr. V! R. Garware

E. Relatives of key management personnel

Mrs. DiyaGarware Ibanez

(III) Disclosure in Respect of Related Party Transactions during the year :

1. Sale of Goods include Sales to Garware Bestretch Ltd. of Rs. 2.48 lacs (Previous year Rs. 2.12 lacs)

2. Purchase of Goods/Services include Purchase from Garware Bestretch Ltd. of Rs. 4.43 lacs (Previous year Rs. I7.04lacs).

3. Purchase of Shares includes:

Shares of Garware Meditech Pvt. Ltd. of Rs. 0.50 lacs (Previous year Nil),

Shares of Garware Environmental Services Pvt. Ltd. of Rs. Nil (Previous year Rs. 49.51 lacs)

4. Sales of Shares Nil (Previous year Rs. 147.83 lacs of Garware Elastomerics Ltd.)

5. Sale of Shares Nil (Previous year Rs. 724.60 lacs of Garware Capital Markets Ltd.)

6. Deposits received and refunded from time to time aggregating to Rs. 2551.10 lacs (Previous year Rs. 2051 lacs) includes deposits from :

Garware Capital Markets Ltd. of Rs. 910.40 lacs (Previous year Rs. 876 lacs),

Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 45.35 lacs (Previous year Rs. 35 lacs),

Moonshine Investments and Trading Co. Pvt. Ltd. of Rs. 10.20 lacs (Previous year Rs. Nil), RSDV Investments Pvt. Ltd. of Rs. 1359.30 lacs(Previous year Rs. 1036lacs),

RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 50.55 lacs (Previous year Rs. 44 lacs),

Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 6.75 lacs (Previous year Rs. Nil),

Starshine Investments and Trading Co. Pvt. Ltd. of Rs. 4.90 lacs (Previous year Rs. Nil), Suramex Exim Pvt. Ltd. of Rs. Nil (Previousyear Rs. 8.00 lacs),

Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs. I lac (Previous year Rs. Nil),

Garware Utzon (Cordage) Ltd. of Rs. 62.60 lacs (Previous year Rs. 27 lacs),

Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs. 6.30 lacs (Previous year Rs. Nil),

Garware Indus Consulting Ltd. of Rs. 57.75 lacs (Previous year Rs. 33 lacs),

Ceebeegee Investments Co. Pvt. Ltd. of Rs. 36 lacs (Previous year Rs. Nil)

3. Interest paid on Deposit of Rs. 277.85 lacs (Previous year Rs. 159.94 lacs) includes :

Garware Capital Markets Ltd. of Rs. 105.70 lacs (Previous year Rs. 46.60 lacs),

Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 4.43 lacs (Previous year Rs. 3.37 lacs ),

Moonshine Investments and Trading Co. Pvt. Ltd. of Rs. 0.56 lacs (Previous year Rs. Nil),

RSDV Investments Pvt. Ltd. of Rs. 150.68 lacs (Previous year Rs. 99.60 lacs ),

RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 5.33 lacs (Previous year Rs. 4.43 lacs ),

Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 0.34 lacs (Previous year Rs. Nil),

Starshine Investments and Trading Co. Pvt. Ltd. of Rs. 0.24 lacs (Previous year Rs. Nil),

Suramex Exim Pvt. Ltd. of Rs. Nil (Previous year Rs. 0.60 lacs),

Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs. 0.09 lacs (Previous year Rs. Nil),

Garware Utzon (Cordage) Ltd. of Rs. 5.19 lacs (Previous year Rs. 2.95 lacs),

Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs. 0.32 lacs (Previous year Rs. Nil),

Garware Indus Consulting Ltd. of Rs. 4.93 lacs (previous year Rs. 2.39 lacs),

Ceegeegee Investments Co. Pvt. Ltd. of Rs. 0.04 lacs (Previous year Rs. Nil)

4 EARNING PER SHARE (EPS)

EPS computed in accordance with Accounting Standard 20 "Earning Per Share"

Basic Earning Per Share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

5 CONTINGENT LIABILITIES

(i) Disputed Excise Duty Rs. 27.57 lacs (Previous year Rs. 27.57 lacs).

(ii) Bank Guarantees for Rs. 1,477.26 lacs (Previous year Rs. 1,390.35 lacs), in the ordinary course of business, against which the Company has issued counter guarantees for the overall bank limits of Rs. 13,500 lacs (Previous year Rs. 12,500 lacs).

(iii) Disputed amount of Sales Tax Liability Rs. 42.15 lacs (Previous year Rs. 42.09 lacs).

(iv) Disputed Property Tax Liability on factory premises, Pune Rs. 20.97 lacs (Previous year Rs. 20.97 lacs).

(v) Export Sales Bills discounted with the banks Rs. 982.42 lacs (Previous year Rs. 168.89 lacs).

(vi) The interest portion on delayed payment of Octroi Liability amounting to Rs. 21.64 lacs (Previous year Rs. 21.64 lacs) is under dispute.

6 DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

(a) An amount of Rs. 7.36 lacs (31st March, 2011 Rs. 14.27 lacs) and Rs. NIL (31st March, 2011 Rs. NIL) was due and outstanding to Suppliers as at the end of the year on account of Principal and Interest respectively.

(b) No interest was paid during the year.

(c) No interest outstanding at the end of the year where principal amount has been paid off to the supplier but interest amount is outstanding on 31st March, 2012.

(d) No amount of interest was accrued and unpaid at the end of the year.

The above information and that given in Note 10 - 'Trade Payable' regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the Auditors.

7 ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED ON CAPITAL ACCOUNT AND NOT PROVIDED FOR NET OF ADVANCES Rs. 40.75 LACS (PREVIOUS YEAR 298.95 LACS)

8 INTEREST IN FIRM/JOINT VENTURES

A. The Company has entered into a partnership agreement (Sopan D. Patil & GWRL JV) in which the Company holds 40% share in profit / loss to execute Geo Synthetics Work - Contract value worth Rs. 577.31 lacs. During the year ended 31.03.2012. the said partnership has incurred a loss of Rs. 0.08 lacs (Previous Year Rs. 0.04 lac).

B. The Company has entered in to joint venture arrangement with Waste Management Pacific Pty Ltd. (WMPL), (a company incorporated under the law of Australia) (JV) to carry out the business of Environmental Engineering through Garware Environmental Services Pvt. Ltd. JV has not started its commercial operation.

9 These Financial Statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act 1956. This has significantly changed the disclosure and presentation made in the Financial Statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

* Includes Application moneys of Convertible Warrants.

# Reissue of 3,77,634 Equity Shares forfeited.

$ 7,50,000 Equity Shares against Convertible Warrants.

@ 9,98,000 Equity Shares against Convertible Warrants.

** 19,96,000 Equity Shares against Convertible Warrants.

10 The figures of Reserves and Surplus have been calculated after deduction of miscellanious expenditure to the extent not written off or adjusted and includes revaluation reserve Rs. 18.44 lacs for 31.03.03, Rs. 17.36 lacs for 31.03.04, Rs. 16.31 lacs for 31.03.05, Rs. 15.27 lacs for 31.03.06, Rs. I4.23 lacs for 31.03.07, Rs. 13.19 lacs for 31.03.08, Rs. I2.l5lacs for3l.03.09, Rs. 11.10 lacs for 31.03.10, Rs. 10.06 lacs for 31.03.11 and Rs. 9.02 lacs for 31.03.12, respectively.

® Dividend Outgo includes Tax on Dividend, where applicable.

- Includes both current and non-current assets and liabilities.


Mar 31, 2010

1. The Company has complied with "AS 28", requirements for testing impairment of assets. Impairment loss recognised for the year charged to Profit and Loss account amounted to Rs.22.12 lacs (previous year Rs. Nil)

2. The Company, in compliance with "AS 26" on Intangible Assets, has recognized the intangible assets acquired during the year on Product Development Costs at Rs.230.27 lacs (Previous Year Rs. 306.47 lacs) Computer software Rs. 18.68 lacs (Previous Year Rs.50.19 lacs). Taking into consideration the clarification issued by the Institute of Chartered Accountants of India dt 7th October 2003, the expenses that have already been recognized as "Deferred Revenue Expenditure" upto I st April, 2004, are being continued to be amortized over the remaining period.

3. Estimated amount of contracts remaining to be executed on Capital Account and not provided for net of Advances Rs.201.67 lacs (Previous Year Rs.35.82 lacs)

4. A. Disclosure pursuant to Accounting Standard "AS7 - Construction Contracts", the Construction work-in-progress

(Fibre & Industrial Product & Project Segment) amounts to Rs. 1173.86 lacs (Previous Year Rs. 7,043.94 lacs).

B. For these construction contracts, the Progress payments received, Advances and Retentions on Account of Contracts are Rs.8,422.11 lacs, Rs.243.03 lacs and Rs.544.42 lacs (Previous Year Rs.5,108.90 lacs, Rs.555.64 lacs and Rs. 123.1 I lacs) respectively.

5. The Company has entered into a partnership agreement with minority share to execute Geo Synthetics Work - Contract value worth Rs.577.31 lacs. During the year ended 31.03.2010, the said partnership has incurred a loss ofRs.0.02 lacs (Previous Year Rs.0.01 lac).

(b) Lease Payment recognised in the Profit & Loss account 0.05 0.05 ©) General description of the leasing arrangement:

i) Leased Assets : Twisting Machine with Spindles and related equipments.

ii) Future lease rental payment are determined on the basis of lease rent and use of leased Machine for processing operation of third party.

iii) At the expiry of the lease term, the Company will negotiate for extension of lease / formation of Joint Venture to carry out the activities.

6. Contingent liabilities:

(i) Disputed Excise duty Rs.35.30 lacs (Previous Year Rs.35.30 lacs)

(ii) Bank Guarantees for Rs.824.27 lacs (Previous Year Rs.2,680.69 lacs), in the ordinary course of business, against which the Company has issued counter guarantees for the overall Bank limits of Rs. 12,500 lacs (Previous Year Rs. 12,500 lacs).

(iii) Disputed amount of Sales Tax liability Rs.57.49 lacs (Previous Year Rs.57.49 lacs).

(iv) Disputed Property Tax Liability on factory premises, Pune Rs.20.97 lacs (Previous Year Rs.20.97 lacs).

(v) Export Sales Bills Discounted with the Banks Rs. 164.23 lacs (Previous Year Rs.527.51 lacs).

(vi) Disputed Octroi Liability on rate increase of Rs.27.98 lacs (Previous Year Rs.27.98 lacs) has been paid under protest. Liability of interest, if any, thereon for delay period has not been considered.

7. Disclosures under the Micro, Small & Medium Enterprises Development Act, 2006:

(a) An amount of Rs.22.93 lacs (Previous Year Rs.4.78 lacs) and Rs. NIL (Previous Year NIL) was due and outstanding to Suppliers as at the end of the year on account of Principal and Interest respectively.

(b) No interest was paid during the year.

(c) No interest outstanding at the end of the year where principle amount has been paid off to the supplier but interest amount is outstanding as on 31st March, 2010

(d) No amount of interest was accrued and unpaid at the end of the year.

The above information and that given in Schedule VII - Current Liabilities and Provision regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company. This has been relied upon by the Auditors.

8. The Company has set aside from its General Reserve, as reserve amounting to Rs.315 lacs in the Financial Year 2000- 2001 for contingencies that may arise, in the event there is a diminution in the value of investments, of a permanent nature, in the future.

9. Disclosure in relation to Derivative instruments:

31.03.2010 31.03.2009

a) No of contracts 14 9

b) Purpose Hedging Hedging

c) Net un-hedged exposure Rs. 2,270.66 lacs Rs. 2,812.71 lacs

10. EMPLOYEE BENEFITS:

(i) Effective I st April,2007, the Company adopted Accounting Standard 15 (Revised 2005) on "Employee Benefits" issued by the Institute of Chartered Accountant of India.

(ii) Contribution to Provident Fund, Gratuity and Superannuation Funds

11. Segment Reporting

i) Primary Segment Report

iii) Notes:

The business segments viz. Synthetic Cordage and Fibre and Industrial Products and Projects are considered as the primary segments. Synthetic Cordage comprises of ropes, twines and nettings made of twine. Fibre, synthetic fabric, yarn, woven and non-woven textiles, secugrids, coated steel gabions, machinery and project form the Fibre and Industrial Products & Project segment. Inter-segment sales are accounted for at market value.

The geographical segments on the basis of location of customers are considered as secondary segments. Sales are recognised as sales to customers in India and sales to customers outside India.

12. Transactions with related parties

(I) The Company has identified following related parties:

A. Associates Companies

1. Garware Elastomerics Ltd.

2. Garware Bestretch Ltd.

(Formerly, Bestretch Elastomers International Ltd.)

B. Companies / other organisations under the control of directors where transactions are entered into and/or outstanding balance exists as at the Balance Sheet Date:

1. RSDV Finance Company (R) Ltd.

2. RSDV Investments Pvt. Ltd.

3. Suramex Exim (R) Ltd.

4. Garware Capital Markets Ltd.

5. Garware Indus Consulting Ltd.

6. Garware Utzon (Cordage) Ltd.

7. Manmit Investments & Trading Company (R) Ltd.

C. Directors - Key Management Persons

Mr. R. B. Garware Mr. V R. Garware

D. Relative of Key Management Persons having control or significant influence over the Company by reason of voting power

Mr. R. B. Garware

Mrs. Diya Garware Ebanez

Mr. V R. Garware

E. Companies / other organisations under the control of directors where no transactions are entered into and lor no outstanding balance exists as at the Balance Sheet Date:

1. Consolidated Agricultural & Dairy Farming Company (R) Ltd

2. Vimalabai Garware Research Institute

3. Ramesh Trading Company

4. Sunita Trading Company

5. Diya Trading Company

6. Vayu Trading Company

7. Ramesh B. Garware (HUF)

8. Garware Securities Broking Ltd.

9. Gartex Industries Ltd.

10. Garware Environmental Services Pvt. Ltd.

11. Garware Infrastructure Pvt. Ltd.

12. Garware Biofuels Pvt. Ltd.

13. Ceebeegee Investment Company Pvt. Ltd.

14. Moonshine Investments & Trading Co. Pvt. Ltd.

15. Gurukrupa Investments & Trading Co. Pvt. Ltd.

16. Sanand Investments & Trading Company Pvt. Ltd.

17. Starshine Investments & Trading Company Pvt. Ltd.

18. Sukukar Holdings & Trading Company Pvt. Ltd.

19. Garware Research Institute

(II) Following are the transactions with the related parties mentioned in A, B & C above:

13. Earning per Share (EPS) computed in accordance with Accounting Standard 20 "Earning Per Share"

 
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