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Notes to Accounts of Gokak Textiles Ltd.

Sep 30, 2015

The above borrowings carry effective interest rates ranging from 7% p.a. to 14 % p.a.

Borrowings amounting to Rs, 9,674,000 (Previous Year: Rs, 59,512,435) are secured by exclusive charge of hypothecation of movable/ immovable fixed assets acquired/ to be acquired.

Borrowings amounting to Rs, 76,499,000 (Previous Year: Rs,114,899,000) are secured by first hypothecation charge on specific movable/ immovable fixed assets acquired/ to be acquired.

Borrowings amounting to Rs, 194,443,382 (Previous Year: Rs, 361,109,138) are secured by second by second pari passu charge on movable/ immovable fixed assets acquired.

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs, 14,832 (Previous Year: Rs,24,41,295). Other commitments: Nil.

2. Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, the company is required to make certain disclosures relating to Micro, Small and Medium Enterprises. The company is in the process of compiling and assimilating the relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

3. The Company has decided to change the Financial Year as per the provisions of the Companies Act 2013, from September to March, from March 2016. Current Financial Year is closed on 30th September 2015. The next Financial Year will be for six months ending on 31st March 2016.

4. Trade payables and trade receivables are subject to independent balance confirmations and reconciliations. Management is of the opinion that no variance of a material sum is expected on such independent confirmations and reconciliations.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

5. In the opinion of the Management, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all liabilities is adequate and not in excess of the amount reasonably necessary.

6. Related Party Disclosures:

A Names of the related parties and description of relationship

I) Holding Company

Shapoorji Pallonji & Company Private Limited

(Formely known as Shapoorji Pallonji & Company Limited)

II) Subsidiary

Gokak Power & Energy Limited

III) Fellow Subsidiaries

Forbes & Company Limited / Volkart Fleming Shipping & Services Limited Eureka Forbes Limited / Forbes Doris & Naess Maritime Limited Forbes Technosys Limited / Forvol International Services Limited Shapoorji Pallonji Infrastructure Capital Company Limited

IV) Key Managerial Personnel

Mr. H. S. Bhaskar Whole Time Director (Up to July 13, 2015)

Mr. Sachin Kulkarni Whole Time Director (w.e.f. July 13, 2015)


Sep 30, 2014

1. Corporate Information

The Company was incorporated under the Companies Act, 1956 under the name of ANS Textiles (Bangalore) Limited on March 27, 2006. The name was changed to Gokak Textiles Limited, with effect from 23rd January 2007. As per the scheme of arrangement under the Companies Act, 1956 the Textile Division of erstwhile Forbes Gokak Limited (now known as Forbes & Company Limited) was transferred to Gokak Textiles Limited with effect from April 1, 2007. The company is in the business of textile, manufacturing cotton yarn, blended yarn, industrial fabrics, terry towels, t-shirts, polos, undergarments, sweaters, etc.

2. Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis and under the historical cost convention.

3. Contingent liabilities :

Contingent liabilities not provided in respect of :

Year ended Year ended September September 30, 2014 30, 2013

A) Bills Discounted 39,158,425 12,787,094

B) Guarantees issued by bank 24,781,791 21,922,573 Corporate Guarantee to Other

C) Taxes in dispute :-

Entry Tax/Special Entry tax 11,458,194 14,458,194

Income tax matters 300,912 300,912

Excise Demands 16,600,425 16,600,425

Provident Fund 2,810,682 2,810,682

D) Labour Matters in Dispute 4,886,272 4,986,272

E) Bonds given by Company in favour of Customs Authorities 478,320,557 478,320,557

F) Other Demands Contested by the Company

Creditors Claim 71,471 71,471

Electricity Duty 955,893 955,893

579,344,622 553,214,073

4. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 24,41,295 (Previous Year: Rs.48,09,872).

5. Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, the company is required to make certain disclosures relating to Micro, Small and Medium Enterprises. The company is in the process of compiling and assimilating the relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

6. During the year, a special resolution seeking the approval of Shareholders for the divestment of Knitwear Division has been passed by the requisite majority as per the postal ballot announced on 6th Decemeber 2013. The Company is in the process of locating a buyer.

7. The Company has decided to change the Financial Year as per the provisions of the Companies Act, 2013, from September to March, from March 2015. Current Financial Year is closed on 30th Septemebr 2014. The next Financial Year will be for six months ending on 31st March 2015.

8. Trade payables and trade receivables are subject to independent balance confirmations and reconciliations. Management is of the opinion that no variance of a material sum is expected on such independent confirmations and reconciliations.

9. In the opinion of the Management, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all liabilities is adequate and not in excess of the amount reasonable necessary.

10. Related Party Disclosures:

A Names of the related parties and description of relationship

I) Holding Company

Shapoorji Pallonji & Company Limited

II) Subsidiary

Gokak Power & Energy Limited

III) Fellow Subsidiaries

Forbes & Company Limited

Volkart Fleming Shipping & Services Limited

Eureka Forbes Limited

Forbes Doris & Naess Maritime Limited

Forbes Technosys Limited

Forvol International Services Limited

Shapoorji Pallonji Infrastructure Capital Company Limited

IV) Key Managerial Personnel

Mr. H. S. Bhaskar : Whole Time Director

11. Segment information

The Company operates in one segment only, namely Textiles. Sales in different geographical segments are subject to same risk and reward relationship. Accordingly, in the opinion of the management, the information relating to the segment reporting as set out under Accounting Standard 17 is not applicable.

12. Figures of previous period have been regrouped/recast/rearranged wherever necessary, to conform to the current year''s presentation.


Sep 30, 2013

1 Corporate Information

The Company was incorporated under the Companies Act, 1956 under the name of ANS Textiles (Bangalore) Limited on March 27, 2006. The name was changed to Gokak Textiles Limited, with effect from 23rd January 2007. As per the scheme of arrangement under the Companies Act, 1956 the Textile Division of erstwhile Forbes Gokak Limited (now known as Forbes & Company Limited) was transferred to Gokak Textiles Limited with effect from April 1, 2007. The company is in the business of textile, manufacturing cotton yarn, blended yarn, industrial fabrics, terry towels, t-shirts, polos, undergarments, sweaters, etc.

2 Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3 Contingent liabilities :

Contingent liabilities not provided in respect of :

Year ended Eighteen Months September ended September

30, 2013 30,2012

a) Bills Discounted 22,052,045 26,509,850

b) Guarantees issued by bank 12,657,622 21,972,573 Corporate Guarantee to Other - -

c) Taxes in dispute :-

Entry Tax/Special Entry tax 14,458,194 14,458,194

Income tax matters 300,912 300,912

Excise Demands 16,600,425 5,562,848

Provident Fund 2,810,682 2,810,682

d) Labour Matters in Dispute 4,986,272 4,986,272

e) Bonds given by Company in favour of Customs Authorities 478,320,557 478,320,557

f) Other Demands Contested by the Company

Trade Payables Claim 71,471 71,471

Electricity Duty 955,893 955,893

Total 553,214,073 555,949,252

4 Notice dated 16th October 2013 seeking approval of Shareholders for divestment of Knitwear Division has been sent. The result of the ballot will be announced on 5th December 2013.

5 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.4,809,872 (P. Y 5,077,837).

6 Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, the company is required to make certain disclosures relating to Micro, Small and Medium Enterprises. The company is in the process of compiling and assimilating the relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

7 During the financial period 2011-12, pursuant to approval obtained from shareholders under section 293 (1) (a) of Companies Act 1956, the Company, on September 27, 2012 has sold its hydro power business to its subsidiary company Gokak Power and Energy Limited as a slump sale for a consideration of Rs.120 crores. The business sold includes land & building at written down value of Rs. 15.76 crores and power generation transmission and distribution assets including technical know-how and licenses at written down value of Rs. 9.95 crores. The profit on said slump sale of hydro power business to Gokak Power and Energy Limited amounting to Rs. 94.06 crores is disclosed as extra ordinary item.

8 During the financial period 2011-12, the company has written off fixed assets amounting to Rs. 90,510,493 mainly pertaining to spinning machines, speed frames, humidification plant, HFO plant and weaving machines. The company has scrapped these assets as they are technologically obsolete and in physically damaged condition.

9 Related Party Disclosures:

A Names of the related parties and description of relationship

I) Holding Company

Shapoorji Pallonji & Company Limited

II) Subsidiary

Gokak Power & Energy Limited

III) Fellow Subsidiaries

Forbes & Company Limited

Volkart Fleming Shipping & Services Limited

Eureka Forbes Limited

Forbes Doris & Naess Maritime Limited

Forbes Technosys Limited

Forvol International Services Limited

Shapoorji Pallonji Infrastructure Capital Company Limited

IV) Key Managerial Personnel

Mr. H. S. Bhaskar Whole Time Director

10. Trade Payables and Trade Receivables are subject to independent balance confirmations and reconciliations. Management is of the opinion that no variance of a material sum is expected on such independent confirmations and reconciliations.

11 Segment information

The Company operates in one segment only, namely Textiles. Sales in different geographical segments are subject to same risk and reward relationship. Accordingly, in the opinion of the management, the information relating to the segment reporting as set out under Accounting Standard 17 is not applicable.

12 The financial statements for the current year are for the period from October 1, 2012 to September 30, 2013, whereas the financial statements for the previous year are for a period of eighteen months, i.e from April 1, 2011 to September 30, 2012. Accordingly the current year''s figures are not comparable with the previous period figures.

13 Figures of previous period have been regrouped/recast/rearranged wherever necessary, to conform to the current year''s presentation.


Sep 30, 2012

1 Corporate Information

The Company was incorporated under the Companies Act, 1956 under the name of ANS Textiles (Bangalore) Limited on March 27, 2006. The name was changed to Gokak Textiles Limited, with effect from 23rd January 2007. As per the scheme of arrangement under the Companies Act, 1956 the Textile Division of erstwhile Forbes Gokak Limited (now known as Forbes & Company Limited) was transferred to Gokak Textiles Limited with effect from April 1, 2007. The company is in the business of textile, manufacturing cotton yarn, blended yarn, industrial fabrics, terry towels, t-shirts, polos, undergarments, sweaters, etc.

2 Preparation

i. The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

ii. With effect from current financial year the Company has changed its accounting year from year ended March 31 to year ended September 30 which has been approved by ROC vide its order dated 12th April 2012. Accordingly these financial statements are prepared for a period of 18 months from April 01, 2011 to September 30, 2012. Hence the figures for the current accounting period are not comparable with those of the previous accounting year.

iii During the period ended September 30,2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of the revised Schedule VI does not impact recognition and measurement principles followed for the preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The Company has reclassified previous years's figures to conform this years' classification.

(A) Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share.

During the eighteen months ended 30th September 2012, the amount of per share dividend recognized as distributions to equity shareholders is NIL (March 31, 2011: NIL).

(B) Buyback of Shares, Bonus Shares, ESOP and Shares issued for consideration other than cash

The company has not bought back any shares neither has it issued any bonus shares and shares under ESOP in the past five years.

In the FY 2007 08; the company issued 6,449,308 shares to the shareholders of Forbes Gokak Limited pursuant to the Scheme of Demerger for consideration other than cash.

The above borrowings carry effective interest rates ranging from 8% p.a. to 10.75 % p.a.

Borrowings amounting to Rs.125,508,284 are secured by exclusive charge of hypothecation of movable/immovable fixed assets acquired/ to be acquired.

Borrowings amounting to Rs.333,255,461 are secured by first hypothecation charge on specific movable/ immovable fixed assets acquired/ to be acquired.

3 Contingent liabilities :

Contingent liabilities not provided in respect of :

Eighteen months Year ended ended eptember March 31, 2011 30, 2012

a) Bills Discounted 26,509,850 39,154,395

b) Guarantees issued by bank 21,972,573 405,100 Corporate Guarantee to Other - 129,472

c) Taxes in dispute :

Entry Tax/Special Entry tax 14,458,194 14,458,194

Income tax matters 300,912 300,912

Excise Demands 5,562,848 116,916,657

Provident Fund 2,810,682 -

d) Labour Matters in Dispute 4,986,272 1,388,148

e) Bonds given by Company in favour of Customs Authorities 478,320,557 438,121,857

f) Other Demands Contested by the Company Creditors Claim 71,471 71,471

Electricity Duty 955,893 955,893

555,949,252 611,902,099

4 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 5,077,837 (P.Y 4,302,584).

5 Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, the company is required to make certain disclosures relating to Micro, Small and Medium Enterprises. The company is in the process of compiling and assimilating the relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

6 During the financial year 2010 - 11 the company has sold its investment in equity shares of P.T. Gokak Indonesia, where it held 22% stake, to Shapoorji Pallonji & Company Limited (the Holding Company) for an amount of US$ 1,801,250 equivalent to Rs. 84,658,750 resulting in to profit of Rs. 73,352,202.

7 Pursuant to approval obtained from shareholders under section 293 (1) (a) of Companies Act 1956, the company, on September 27, 2012 has sold its hydro power business to its subsidiary company Gokak Power and Energy Limited as a slump sale for a consideration of Rs. 120 crores. The business sold includes land & building at written down value of Rs. 15.76 crores and power generation transmission and distribution assets including technical know how and licenses at written down value of Rs. 9.95 crores. The profit on said slump sale of hydro power business to GPEL amounting to Rs. 94.06 crores is disclosed as extra ordinary item.

8 During the current accounting period the company has written off fixed assets amounting to Rs. 90,510,493 mainly pertaining to spinning machines, speed frames, humidification plant, HFO plant and weaving machines. The company has scrapped these assets as they are technologically obsolete and in physically damaged condition.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

9 In the opinion of the Management, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all liabilities is adequate and not in excess of the amount reasonably necessary.

10 Related Party Disclosures: A Names of the related parties and description of relationship

I) Holding Company

Shapoorji Pallonji & Company Limited

II) Subsidiary

Gokak Power & Energy Limited

III) Fellow Subsidiaries

Forbes & Company Limited Volkart Fleming Shipping & Services Limited

Eureka Forbes Limited Forbes Doris & Naess Maritime Limited

Forbes Technosys Limited Forvol International Services Limited

Forbes Campbell & Co Limited Shapoorji Pallonji Infrastructure Capital Company Limited

IV) Key Managerial Personnel

Mr. H. S. Bhaskar Whole Time Director

11. Trade Payables and Trade Receivables are subject to independent balance confirmations and reconciliations. Management is of the opinion that no variance of a material sum is expected on such independent confirmations and reconciliations.

12. Segment information

The Company operates in one segment only, namely Textiles. Sales in different geographical segments are subject to same risk and reward relationship. Accordingly, in the opinion of the management, the information relating to the segment reporting as set out under Accounting Standard 17 is not applicable.

13. Figures of previous year have been regrouped/recast/rearranged wherever necessary, to conform to the current period's presentation.


Mar 31, 2011

1. The Company was incorporated under the Companies Act, 1956 under the name of ANS Textiles (Bangalore) Limited on March 27, 2006. The name was changed to Gokak Textiles Limited, with effect from 23rd January 2007. As per the scheme of arrangement under the Companies Act, 1956 the Textile Division of erstwhile Forbes Gokak Limited (now known as Forbes & Company Limited) was transferred to Gokak Textiles Limited with effect from April 1, 2007. The company is in the business of textile, manufacturing cotton yarn, blended yarn, industrial fabrics, terry towels, t-shirts, polos, undergarments, sweaters, etc

2. Contingent Liabilities not provided for:

Sr. No. Particulars Current Year Previous Year Rs. Rs.

(A) Bills discounted 39,154,395 124,123,870

(B) Guarantees issued by bank 405,100 905,100 Corporate Guarantee to Export Import Bank of India (on behalf of P.T.Gokak Indonesia) $ 31,00,000 – 141,329,000

Corporate Guarantee to Other 129,472 129,472

(C) Taxes in dispute :-

Entry Tax/Special Entry tax 14,458,194 14,458,194

Income tax matters 300,912 300,912

Excise Demands 116,916,657 105,879,080

(D) Labour Matters in Dispute 1,388,148 1,254,070

(E) Bonds given by Company in favour of Customs Authorities 438,121,857 478,320,561

(F) Other Demands Contested by the Company

Creditors Claim 71,471 71,471

Electricity Duty 955,893 1,037,149

3. Estimated amount of contracts remaining to be executed on capital account and not provided Rs.4,302,584 (net of Advances Rs.2,631,654); [Previous Year Rs. 13,347,453 (net of advances Rs. 91,951,921)]

4. Due to Micro, Small and Medium enterprise:

Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, the company is required to make certain disclosures relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling and assimilating the relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

5. The Company incurred the following expenditure on research and development, which has been certified by the Management.

a. On Fixed Assets Rs. Nil (Previous Year Rs Nil)

b. On items which have been expensed out during the year Rs. 8,176,006 (Previous Year Rs. 6,966,804)

6. The amount of exchange differences included in the Profit and Loss Account is a Net Expenses of Rs. 2,778,264/- (Previous year Net Income of Rs.4,785,230/-).

7. During the year no amounts has been remitted in foreign currencies on account of dividends during the year.

8. There are no outstanding Forward Exchange Contracts entered into by the Company as on March 31, 2011. The Company has not entered into Interest Rate Swaps and Currency Swaps as at the year end March 31, 2011.

9. Segment:

The Company operates one segment only, namely Textiles. Sales in different geographical segments are subject to same risk and reward relationship. Accordingly, in the opinion of the management the information relating to the segment reporting as set out under Accounting Standard 17 is not applicable.

10. Related Party Disclosures:

a. Name of Related Party and description of related party

i. Holding Company / Ultimate Holding Company

Shapoorji Pallonji & Company Limited (Ultimate Holding Company)

Sterling Investment Corporation Private Limited (Holding Company)

ii. Fellow Subsidiaries

Forbes & Company Limited

Forbes Doris & Naess Maritime Limited

Forbes Technosys Limited

Volkart Fleming Shipping & Services Limited

Eureka Forbes Ltd.

Forval International Services Ltd

iii. Key Management Personal

Mr. H. S. Bhaskar – Whole Time Director.

c The Company sold its investment in equity shares of P.T. Gokak Indonesia, where it held 22% stake, to Shapoorji Pallonji & Company Limited (the Ultimate Holding Company) for an amount of US$ 1,801,250/- which is agreed to be equivalent to INR 84,658,750/-.

11. Employee Benefits:

Defined Contribution Plan:

The company offers its employees defined contribution plan in the form of provident fund and superannuation fund. Provident fund covers substantially all regular employees whereas the superannuation fund covers only certain Managers, Supervisors and Clericals. The Company has contributed a total amount of Rs.45,028,287 /- (Previous Year Rs. 32,188,455/-) towards said funds during the current year.

12. In accordance with the Accounting Standard (AS-28 on impairment of assets, the Company has assessed as on the balance sheet date, whether there are any indications (listed in paragraphs 8 to 10 of the standard) with regards to the impairment of any assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of accounts.

13. In accordance with Accounting Standard 16 - Borrowing Costs; the Company has capitalised a total amount of Rs. 4,250,489/- during the year (Previous Year Rs.12,593,810/-) under Fixed Assets; towards borrowing costs of the Monsoon Spillway Project.

14. Interest on Fixed Loans amounting to Rs. 87,884,647/- (Previous Year Rs. 81,385,625/-) are net off Interest Subsidy amounting to Rs. 38,305,057/- (Previous Year Rs.47,282,853/-).

15. Previous years' figures have been regrouped and rearranged wherever necessary.


Mar 31, 2010

1. The Company was incorporated under the Companies Act, 1956 under the name of ANS Textiles (Bangalore) Limited on March 27, 2006. The name was changed to Gokak Textiles Limited, with effect from 23rd January 2007. Under the scheme of arrangement under the Companies Act, 1956 the Textile Division of Forbes Gokak Limited (known as Forbes & Company Limited) was transferred to Gokak Textiles Limited with effect from April 1, 2007

2. Contingent Liabilities not provided for:

Sr. No. Particulars Current Year Previous Year

(A) Bills discounted 124,123,870 79,328,218

(B) Guarantees issued by bank 905,100 212,500 Corporate Guarantee to Export Import Bank of India (on behalf of P.TGokak Indonesia) $ 31,00,000 141,329,000 160,022,000

Corporate Guarantee to Other 129,472 129,472

(C) Taxes in dispute :-

Entry Tax/Special Entry tax 14,458,194 14,458,194

Sales Tax - -

Income tax matters 300,912 300,912

Excise Demands 105,879,080 132,543,100

(D) Labour Matters in Dispute 1,254,070 35,237,969

(E) Bonds given by Company in favour of Customs Authorities 478,320,561 502,570,561

(F) Other Demands Contested by the Company Creditors Claim 71,471 71,471

Electricity Duty 1,037,149 1,037,149

3. Estimated amount of contracts remaining to be executed on capital account and not provided Rs. 1,33,47,453 (net of Advances Rs.9,19,51,921); [Previous Year Rs. 11,13,48,124 (net of advances Rs. 8,18,65,807)]

4. Due to Micro, Small and Medium enterprise:

Under the Micro, Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, the company is required to make certain disclosures relating to Micro, Small and Medium Enterprises. The company is in the process to compiling and assimilating the relevant information from its suppliers about their coverage under the Act. Since the relevant information is not readily available, no disclosures have been made in the Accounts.

5. The Company incurred the following expenditure on research and development, which has been certified by the Management.

a. On Fixed Assets Rs. Nil (Previous Year Rs Nil)

b. On items which have been expensed out during the year Rs. 69,66,804 (Previous Year Rs. 70,74,937)

6. The amount of exchange differences:

Included in the Profit and Loss Account is a Net Income of Rs. 47,85,230 (Previous year Net Expense of Rs.2,17,25,271).

7. During the year no amounts has been remitted in foreign currencies on account of dividends during the year.

8. Segment:

The Company operates one segment only, namely Textiles. Sales in different geographical segments are subject to some risk and reward relationship. Accordingly, in the opinion of management the information relating to Segmental Reporting as required by Accounting Standard 17 is not applicable.

9. Related Party Disclosures:

a. Name of Related Party and description of related party

i. Holding Company / Ultimate Holding Company

Shapoorji Pallonji & Company Limited (Ultimate Holding Company) Sterling Investment Corporation Private Limited (Holding Company)

ii. Fellow Subsidiaries

Forbes & Company Limited

Forbes Doris & Naess Maritime Limited

Forbes Technosys Limited

Volkart Fleming Shipping & Services Limited

Eureka Forbes Ltd.

Forval International Services Ltd

iii. Key Management Personal

Mr. H. S. Bhaskar - Whole Time Director.

10. Previous years figures have been regrouped and rearranged wherever necessary.

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