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Notes to Accounts of Ginni Filaments Ltd.

Mar 31, 2015

COMPANY OVERVIEW

Ginni Filaments Ltd is a textile company manufacturing cotton yarn, knitted fabric, non-woven fabric, garments and wipes at its factories located at Kosi Kalan (UP), Panoli (Gujarat), Noida (U.P.) and Haridwar (Uttarakhand).

2.(A) Term Loans of Rs. 11703.46 Lacs * are (i) secured by mortgage by deposit of the Title Deeds of immovable properties {pending Mortgage of Term Loan of Rs. NIL (Previous year Rs. 639.83 Lacs)} and by hypothecation of Company's movable properties, ranking pari-passu, subject to prior charge on current assets in favour of Company's bankers for working capital.(ii) guaranteed by one Director (iii) secured by pledge of Rs. 61.55 lacs equity shares of the company held by promoter and relative for Term Loan of Rs. 37.97 Lacs (previous year 48.54 Lacs) and further secured by pledge of 115.45 Lacs shares of the company held by promotersRs. and relatives for Term Loans of Rs. 11122.65 Lacs (Previous Year Rs. 14280.02 Lacs), ranking pari pasu with the Debentures and working capital loans. (iv) Term Loans of Rs. 11122.65 Lacs are repayable in 13 quarterly instalments from 30th June, 2015 to 30th June, 2018 & Term Loans of Rs. 580.81 Lacs is repayable in 19 quarterly instalments from 30th June, 2015 to 31st Dec, 2019

(B) Working Capital Term Loans of Rs. 1322.63 lacs* (previous year Rs. 1699.55 lacs) are secured by third charge on current & fixed assets of the company and guaranteed by one Director and repayable in 13 quarterly instalments from 30th June, 2015 to 30th June, 2018

(C) Loan of Rs. 21.52 Lacs* (previous year Rs. 27.50 Lacs) from others are secured against hypothecation of vehicles. Loan of Rs. 17.78 Lacs is repayable in 35 instalments from 01.04.2015 to 01.02.2018 and Loan of Rs. 3.74 Lacs is repayable in 36 instalments from 01.04.2015 to 01.03.2018.

3. EXCEPTIONAL ITEMS

Exceptional Items include a provision for Rs. 293.80 Lacs (previous year 1671.00 Lacs) towards recompense amount in respect of interest cost payable under CDR guidelines and Nil (previous year Rs. 322.54 Lacs) towards gain on acquisition of part of freehold land of company by National Highway Authority.

The recompense liability has been provided in accounts as advised by monitoring bank State Bank of India as per RBI and CDR guidelines. The difference, if any in amount payable shall be adjusted on final settlement/determination of liability with CDR Cell.

(Rs. in Lacs)

Note 4 2014-15 2013-14

CONTINGENT LIABILITIES

(a) Contingent liabilities not provided for:

i) Bills discounted with banks 2334.82 5239.50

ii) Disputed demands under excise, income tax, sales tax and electricity etc 130.20 152.41

iii) Claims against the company not acknowledged as debt 133.90 113.54

iv) The assessing officer made certain disallowances at the time of assessment of income tax for the AY 2000-01 to AY- 2012-13. The Company has filed appeal against such orders of assessing officer before appropriate authorities. On account of this, the brought forward losses/ depreciation stands exhausted during AY 2014-15 and there is contingent liability of Rs. 1259 lacs (excluding interest) till the AY-2015-16. However, there is no pending demand of income tax as on 31st March, 2015 against the aforesaid disallowances.

The management believe that the disallowances made by the assessing officer and disputed demand of income tax, sales tax, excise and electricity and on account of claims against the Company shall not sustain before the appropriate authorities. The management believes that the ultimate outcome of these litigations/proceedings will not have a material adverse effect on the company's financial position and results of operations.

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) : 1516.47 1959.47

NOTE 5

DEPRECIATION

(i) Consequent to the enactment of the Companies Act 2013 (the Act) and its applicability for accounting period commencing after 1st April, 2014, the Company has reviewed and revised the estimated useful lives of its fixed assets except continuous process plant in accordance with provisions of the Schedule II of the Act. The management has got technically evaluated the useful life of the continuous process plants as on 1st April, 2014 and has accordingly charged depreciation on it. Therefore, the depreciation charged for the year ended 31st March, 2015 is higher by Rs. 387.72 lacs.

(ii) In respect of assets of which useful life has expired before 1st April, 2014, depreciation of Rs. 226.08 lacs has also been charged to Statement of Profit and Loss as permitted vide MCA notification GSR 627 (E) dated 29th August, 2014 in connection with amendment in Schedule II of the Companies Act, 2013

NOTE 6

LITIGATION

The Company is subject to legal proceedings and claims which have arisen in the ordinary course of business. The Company's management does not reasonably expect that these legal actions when ultimately concluded and determined, will have a material and adverse affect on the Company's results of operations or financial condition.

Note 7

RELATED PARTIES DISCLOSURE

Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the Auditors.

Note 8

Balance of receivables, creditors and advances are subject to confirmation and /or reconciliation.


Mar 31, 2014

Note 1

COMPANY OVERVIEW

Ginni Filaments Ltd is a textile company manufacturing cotton yarn, knitted fabric, non-woven fabric, garments and wipes at its factories located at Kosi kalan (UP), Panoli (Gujarat), Noida (U.P.) and Haridwar (Uttarakhand).

(Rs. in Lacs) Note 2 2013-14 2012-13

CONTINGENT LIABILITIES

1. Contingent liabilities not provided for:

i) Bills discounted with banks 5239.50 5789.43

ii) Disputed demands under excise, income tax,sales tax and electricity etc 152.41 182.26

iii) Claims against the company not acknowledged as debt 113.54 100.34

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) : 1959.47 1303.48

Note 3

DEFINED BENEFIT PLAN

Consequent upon adoption of Accounting Standard on ''Employees benefits'' (AS-15) (Revised 2005) issued by the Institute of Chartered Accountants of India, as required by the Standard, the following disclosures are made:

Note 4

DISCLOSURE IN RESPECT OF DERIVATIVE INSTRUMENTS:

Company has entered into contracts of forward booking keeping in view the net foreign exchange surplus on exports earning in foreign exchange considering imports and foreign currency loans.

Net foreign exchange exposures as on 31st March, 2014 are fully hedged for exports receivable and imports and other foreign currency expenses. Foreign currency loans are not hedged for its full repayment periods.

Note 5

RELATED PARTIES DISCLOSURE

Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

Related Parties & Relationship

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the company (this includes holding companies, subsidiaries and fellow subsidiaries): Nil

b) Associates and joint ventures: Nil

c) Key management personnel and Individuals owning directly or indirectly, an interest in the voting power that give them control or significant influence over the company, and the relatives of such individuals.

1) Key management personnel :

i) Dr. Rajaram Jaipuria,

ii) Shri Shishir Jaipuria,

iii) Shri Saket Jaipuria

iv) Shri Suresh Singhvi

v) Shri Ram Ratan Maheshwari

2) Relative :

i) Smt. Suniti Devi Jaipuria

ii) Smt. Sunita Jaipuria

iii) Smt. Anika Jaipuria

iv) Shri Yash Jaipuria

v) Shri Sharad Jaipuria

vi) Smt. Archana Khaitan

d) Enterprises over which Key Management personnel are able to exercise significant influence:

i) Shree Bhawani Anand Pvt.Ltd.

ii) Jaipuria Edu Services Pvt. Ltd.

iii) Kanpur Builders Pvt.Ltd.

iv) Raghukul Trading Pvt. Ltd

v) Lochan Agro Pvt. Ltd.

vi) Ginni Nonwoven Pvt. Ltd.

Note 6

Balance of receibables, creditors and advances are subject to confirmation and /or reconciliation.


Mar 31, 2013

Note 1

COMPANY OVERVIEW

Ginni Filaments Ltd is a textile company manufacturing cotton yarn, knitted fabric, non-woven fabric, garments and wipes at its factories located at Kosi kalan (UP), Panoli (Gujarat), Noida (U.P.) and Haridwar (Uttarakhand).

Keeping in view of the principle of prudence as per Accounting Standard 1 on "Disclosure of Accounting Policies" outstanding derivative contracts at the Balance Sheet date are now marked to market and accordingly, the resulting mark to market losses / gains are recognized in the Profit and Loss Account.

Note 2 2010-11 2011-12

CONTINGENT LIABILITIES

1. Contingent liabilities not provided for:

i) Bills discounted with banks 5789.43 5722.94

ii) Disputed demands under excise, income tax, sales tax and electricity etc 182.26 253.65

iii) Claims against the company not acknowledged as debt 100.34 84.48

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) : 1303.48 745.76

Note 3

DEFINED BENEFIT PLAN

Consequent upon adoption of Accounting Standard on ''Employees benefits'' (AS-15) (Revised 2005) issued by the Institute of Chartered Accountants of India, as required by the Standard, the following disclosures are made:

Note 4

DISCLOSURE IN RESPECT OF DERIVATIVE INSTRUMENTS:

Forward booking and derivative contracts entered into by the Company and have remained outstanding as on 31/03/2013 are as under:

Company has entered into contracts of forward booking keeping in view the net foreign exchange surplus on exports earning in foreign exchange considering imports and foreign currency loans.

Net foreign exchange exposures as on 31st March, 2013 are fully hedged for exports receivable and imports and other foreign currency expenses. Foreign currency loans are not hedged for its full repayment periods.

Note 5

RELATED PARTIES DISCLOSURE

Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

Related Parties & Relationship

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the company (this includes holding companies, subsidiaries and fellow subsidiaries): Nil

b) Associates and joint ventures: Nil

c) Key management personnel and Individuals owning directly or indirectly, an interest in the voting power that give them control or significant influence over the company, and the relatives of such individuals.

Note 6

Balance of debtors, creditors and advances are subject to confirmation and /or reconciliation.


Mar 31, 2012

COMPANY OVERVIEW

Ginni Filaments Ltd is a textile company manufacturing cotton yarn, knitted fabric, non-woven fabric garments and wipes at its factories located at Kosi (UP), Panoli (Gujarat), Noida and Haridwar.

CONTINGENT LIABILITIES 2011-2012 2010-2011

1. Contingent liabilities not provided for:

i) Bills discounted with banks 5,722.94 6,702.01

ii) Disputed demands under excise, income tax, sales tax and electricity etc 253.65 92.02

iii) Claims against the company not acknowledged as debt 84.48 68.99

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances): 745.76 625.96

Company has entered into contracts of forward booking keeping in view the net foreign exchange surplus on exports earning in foreign exchange considering imports and foreign currency loans.

Net foreign exchange exposures as on 31/03/2012 are fully hedged for exports receivable and imports and other foreign currency expenses. Foreign currency loans are not hedged for its full repayment periods.

Note 2

RELATED PARTIES DISCLOSURE

Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors. Related Parties & Relationship

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the company (this includes holding companies, subsidiaries and fellow subsidiaries): Nil

b) Associates and joint ventures: Nil

c) Key management personnel and Individuals owning directly or indirectly, an interest in the voting power that give them control or significant influence over the company, and the relatives of such individuals.

Them

1) Key management personnel : 2) Relative :

i) Dr. Rajaram Jaipuria, i) Smt. Suniti Devi Jaipuria

ii) Shri Shishir Jaipuria ii) Smt. Sunita Jaipuria

iii) Shri Saket Jaipuria iii) Smt. Anika Jaipuria

iv) Shri S. Singhvi iv) Shri Yash Jaipuria

v) Shri R. R. Maheshwari v) Shri Sharad Jaipuria

vi) Smt.Archana Khaitan

EARNING PER SHARE

The earning per share has been calculated as specified in Accounting Standard 20 on "Earnings per Share" issued by Institute of Chartered Accountants of India, the related disclosures are as below-

Note 3

Balance of debtors, creditors and advances are subject to confirmation and /or reconciliation.

Note 4

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 under the Companies Act,1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year figures have also been reclassified to confirm to this year's classifications.


Mar 31, 2011

(Rs. in Lacs)

2010-2011 2009-2010

1. Contingent liabilities not provided for:

i) Bills discounted with banks 6702.01 3288.97

ii) Disputed demands under excise, income tax, sales tax and electricity etc 92.02 88.41

iii) Claims against the company not acknowledged as debt 68.99 61.19

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) : 625.96 95.41

3. Balance of debtors, creditors and advances are subject to confirmation and /or reconciliation.

4. Sales include Net Gain of Rs.23.07 lacs (previous year Net Loss of Rs. 95.72 lacs) on account of exchange rate fluctuation and adjustment of Rs. 341.79 lacs (previous year Rs.246.93 lacs) on account of discounts, rebate and claims.

The information as required to be disclosed under the Micro and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. 8% Cumulative Redeemable Preference Shares are redeemable at par on or before 31st Dec, 2018. Accumulated dividend on Preference Shares for the year is Rs. 60 lacs.(previous year Rs. 25 lacs)

6. Secured loans of Rs. 2597.44 lacs are repayable within next twelve months.

7. Defined Benefit Plan: Consequent upon adoption of Accounting Standard on Employees benefits (AS-15) (Revised 2005) issued by the Institute of Chartered Accountants of India, as required by the Standard, the following disclosures are made:

Company has entered into contracts of forward booking keeping in view the net foreign exchange surplus on exports earning in foreign exchange considering imports and foreign currency loans.

Net foreign exchange exposures as on 31/03/2011 are fully hedged for exports receivable and imports and other foreign currency expenses. Foreign currency loans are not hedged for its full repayment periods.

8. Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

Related Parties & Relationship

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the company (this includes holding companies, subsidiaries and fellow subsidiaries): Nil

b) Associates and joint ventures: Nil

c) Key management personnel and Individuals owning directly or indirectly, an interest in the voting power that give them control or significant influence over the company, and the relatives of such individuals.

1) Key management personnel :

i) Dr. Rajaram Jaipuria ii) Shri Shishir Jaipuria iii) Shri Saket Jaipuria

iv) Shri S. Singhvi v) Shri R. R. Maheshwari

2) Relative :

i) Smt. Suniti Devi Jaipuria

ii) Smt. Sunita Jaipuria

iii) Smt. Anika Jaipuria

iv) Shri Yash Jaipuria

v) Shri Sharad Jaipuria

vi) Smt. Archana Khaitan

9. Previous years figures have been regrouped wherever necessary.


Mar 31, 2010

(Rs. in Lacs) 2009-2010 2008-2009 1. Contingent liabilities not provided for: i) Bills discounted with banks 3288.97 4574.49 ii) Disputed demands under excise, income tax, sales tax and electricity etc 88.41 69.11 iii) Claims against the company not acknowledged as debt 61.19 45.45

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances): 95.41 175.85 3. Balance of some debtors, creditors and advances are subject to confirmation and /or reconciliation.

4. Sales include Net Loss of Rs.95.72 lacs (previous year Net Gain of Rs. 2.18 lacs) on account of exchange rate fluctuation and adjustment of Rs.246.93 lacs (previous year Rs. 221.72 lacs) on account of discounts, rebate and claims.

The information as required to be disclosed under the Micro and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. 8% Cumulative Redeemable Preference Shares are redeemable at par on or before 31" Dec, 2018. Accumulated dividend on Preference Shares for the year is Rs. 25 lacs.

6. Secured loans of Rs. 1443.24 lacs are repayable within next twelve months.

7. Defined Benefit Plan

Consequent upon adoption of Accounting Standard on Employees benefits (AS-15) (Revised 2005) issued by the Institute of Chartered Accountants of India, as required by the Standard, the following disclosures are made:

Company has entered into contracts of forward booking keeping in view the net foreign exchange surplus on exports earning in foreign exchange considering imports and foreign currency loans.

Net foreign exchange exposures as on 31/03/2010 are fully hedged for exports receivable and imports and other foreign currency expenses. Foreign currency loans are not hedged for its full repayment periods.

8. Pursuant to clause 46 of Accounting Standard-11, the company has exercised the option to capitalize the exchange differences arising on long term foreign currency loans. Had this option not been exercised, the current year profit of the company would have been increased by Rs. 64.49 Lacs.

9. Disclosure regarding amalgamation:

Ganesh Synthetics Private Limited, Abhinav Investments Private Limited, Goodworth Merchants Private Limited, engaged in investment activities and Ginni Power Limited, engaged in power generation business (the transferee Companies) have been amalgamated with the company. The Scheme of amalgamation (the Scheme) was sanctioned by the Honble High Court of Judicature at Allahabad vide its order dated 19,h December 2009 issued on 5,h January 2010. The scheme became effective on 16,n January 2010, the Appointed Date of the Scheme being 30" November 2007. In accordance with the said scheme and as per approval of the Honble High Court:

a) The assets, liabilities, rights and obligations of transferee Companies have been transferred to and vested with the company with effect from 30th November 2007 and have been recorded at their respective carrying amounts under the Purchase Method of accounting for amalgamation,

b) 2,22,95,386 Equity Shares of Rs. 10/- each have been issued to the eligible Equity shareholders of the transferee Companies whose names are registered in the register of members on record date, without payment being received in cash

c) 1,09,07,946 Equity Shares of Rs. 10/- each held by transferee Companies have been cancelled.

d) The share premium of Rs. 637.69 lacs has been accounted for on net equity share issued after cancellation as per scheme of amalgamation approved by Honble High Court at Allahabad.

e) The difference between the assets and liabilities acquired of the transferee Companies amounting to Rs.27.63 Lacs has been recognized as Goodwill which has been written off and charged to Profit and Loss Account in the year ended 31st March 2010.

f) The transferee Companies carried on all its business and activities for the benefit of and in trust for, the company from the Appointed

Date. Thus the profit or income accruing or arising to Transferee Companies, or expenditure or losses arising or incurred by them from the Appointed Date are treated as the profit or income or expenditure or loss, as the case may be, of the Company. The Scheme has accordingly been given effect to in these accounts.

g) Net Loss of Rs 14.02 lacs for the period from 01.12.2007 to 31.03.2009 has been accounted for during the year on account of amalgamation.

10. Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors. Related Parties & Relationship

a) Enterprises that directly, or indirectly through one or more intermediaries, control or are controlled by or are under common control with the company (this includes holding companies, subsidiaries and fellow subsidiaries): Nil

b) Associates and joint ventures: Nil

c) Key management personnel and Individuals owning directly or indirectly, an interest in the voting power that give them control or significant influence over the company, and the relatives of such individuals.

1) Key management personnel : i) Dr. Rajaram Jaipuria,

ii) Shri Shishir Jaipuria,

iii) Shri S. Singhvi

iv) Shri R. R. Maheswari

2) Relative

i) Smt. Suniti Devi Jaipuria

ii) Smt. Sunita Jaipuria

iii) Shri Saket Jaipuria iv) Shri Yash Jaipuria v) Shri Sharad Jaipuria

vi) Smt.Archana Khaitan

d) Enterprises over which Key Management personnel are able to exercise significant influence:

i) Shree Bhawani Anand Pvt.Ltd.

ii) Ginni Biotex Pvt. Ltd.

iii) Kanpur Builders Pvt.Ltd.

iv) Raghukul Properties & Investments Pvt.Ltd

11. Previous years figures have been regrouped wherever necessary.

12. Additional information pursuant to the provisions of paragraph 3 & 4 of part II of Schedule VI of the Companies Act, 1956.

 
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