Mar 31, 2015
1. Disclosure pursuant to Accounting Standard - 15 (revised) - Employee
Benefit :
There are no employees who are eligible for gratuity as on 31.03.2015.
Hence no provision is considered necessary.
2. The Company is not in the possession of details required for the
purpose of classification of creditors as per Micro, Small and Medium
Enterprises Development Act, 2006. Hence the company is unable to
furnish the information required under the said Act.
3. Balances in certain party's accounts are subject to reconciliation
and consequent adjustments thereof. In the opinion of the management
the impact of such adjustments, if any, on the financial results would
be not material.
4. The company operates in one segment, viz., Textiles.
5. Taxation
Deferred Tax Asset on the unabsorbed business/depreciation loss is not
recognised since no virtual certainity can be established evidencing
that sufficient future taxable income will be available against which
deferred tax asset can be realised.
6. Bank Balances
Consequent to listing of the company in stock exchange the company has
communicated to the bankers for making necessary change in the name of
the company in their records however some of the bankers have not given
effect to the change and continuing in the erstwhile name
7. Turnover of the company is net of sales returns and trade discounts.
The negative income in the statement of profit and loss is due to sales
returns on the cancellation of sales. The goods have been repossesed to
the extent of cancelled sales and the stock are valued at cost or
realisable value whichever is lower
8. Other Operating revenue represents the export incentives receivable
from the government authorities
9. During the 2013-14, the company has made on application with the
Board for Industrial and Financial Reconstruction (BIFR) under section
15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 on
30th July 2013. Subsequently the application has been registered in the
board vide Case No.61/2013.
10 The net worth of the wholly owned subsidiary M/s. Indus Garments
Pvt. Ltd is fully eroded, and there is a permanent decline in the value
of investment and accordingly the entire value of investments is
provided for.
11. The manufacturing unit at Nanjangud, Nelamangala and Peenya having
gross block of fixed assets Rs.185,20,32,868/- is not in operation for
the past two years. The units do not have any long term contracts for
manufacture and supply of textiles/garments. This indicates that the
cash generating capacity of the fixed assets have been impaired.
Accordingly, the management is in process of testing, wherein future
cash flows are being estimated to determine the provision required, if
any, in respect of impairment of fixed assets. Management believes that
adjustment to the carrying amount of fixed assets, if any, arising out
of testing would not be material.
12. The Company has not prepared the Bank Reconciliation Statements for
the following bank accounts due to non-receipt of bank statement/bank
confirmation from the banks. The unreconciled balances, if any, would
not be material.
i. Andhra Bank , Yeshwanthapur Branch
ii. Canara Bank EEFC $ A/C
iii. Canara Banj ,Mysore-C.A. A/C NO.1046
iv. Canara Bank -Nanjangud-C.A.-1060
v. Corporation Bank - CC A/C 01/050004
vi. Corporation Bank - CB CA /01/22
vii. Corporation Bank- 400012
viii. Corporation Bank EEFC A/C (USD)
ix. Corporation Bank, Mysore- CBCA/01/000011
x. Corporation Bank, Nanjangud-000063
xi. HDFC Bank-0090330002120
xii. ICICI Bank Limited- 028705001608
xiii. Karnataka Bank A/c No: 1182000100020201
xiv. Karnataka Bank A/C NO.1182000100018501
xv. State Bank of India, Meenambakkam Branch- 10775223147
xvi. State Nahavashev A/C NO 10072948718
xvii. State Bank of India -Andheri A/C NO 11147766330
xviii. State Bank of India CC 016000/53002
xix. UCO Bank -Bangalore C.A A/C 1135
13 The Company has accounted the interest on the following following
term loans/ Cash credit accounts at the rates as per the terms of
sanction for the following loan accounts due to non-receipt of loan
statement/confirmation from the banks. The difference between the
actual interest and the computed interest, if any, will be not be
material.
i. Corporation Bank TL No: 40006
ii. UTI BANK FITL A/C No: 909060033270773
iii. Canara bank 2636773000019
iv. Karnataka Bank TLNo: 1187001600032901
v. Karnataka Bank TL/NO.1187001600030201
vi. Karnataka Bank TL-1187001600025501
vii. Karnataka Bank TLA/c 1187001600033001
viii. UTI Bank Term Loan: 009010600134248
ix. Axis Bank Critical Capex TL NO: 910060032360219
x. Canara bank TL A/c no: 2636773000013
xi. Bills Discounting - Karnataka Bank
xii. Bills Discounting - Axis Bank Ltd
xiii. Corporation Bank - PRTBL
xiv. Corporation Bank CC A/C 40001
xv. Axis Bank -PC LOAN A/C
xvi. Standard Chartered Bank -H06234093655 xvii . Canara FITL
2636747000002
xviii. ABN AMRO
14. Consequent to the changes in depreciation rates as per Schedule II
of Companies Act, 2013, the depreciation charged is higher by Rs.692.04
lakhs on the assets held at April 1, 2014.
15 Related party disclosure as per AS 18 - refer annexure
16 Previous year figures have been regrouped / reclassified wherever
necessary
Transaction with the key Management Personnel:-
1 Mr. Nitin N Mandhana : Vice Chairman & Managing Director
2 Mr. Shashikant Mandhana : Executive Director Till 31-05-2014
3 Mr. Prakash G. Mandhana : Executive Director Till 31-05-2014
Transaction with relatives of key Management Personnel :-
1 Mrs. Savita Mandhana
2 Mrs. Kavita Mandhana
3 Mrs. Neeta Mandhana
4 Mrs. Nirmala N Mandhana
5 Mrs. Leelavati G Mandhana
6 Mr . Narayandas mandhana
Name of Related Parties & Relationships Wholly Owned Subsidiary Company
1 Indus Garments Private Limited
Associates (Enterprises in which Key Management Personnel or their
relatives exercise significant influence)
1 Abhay Weaving Mills Pvt. Ltd.
2 Abhijeet Weaving Mills Pvt. Ltd.
3 Ahaan Weaving Mills Pvt. Ltd.
4 Andrew Finvest Pvt Ltd
5 Avinash Weaving Mills Pvt. Ltd.
6 Indus Infoways Pvt. Ltd
7 Kamal Kishor Finvest Pvt Ltd
8 Kavita Weaving Mills Pvt. Ltd
9 Neeta Weaving Mills Pvt. Ltd 10 Niharika Weaving Mills Pvt. Ltd
II Nirmala Hosieries Mills Pvt. Ltd
12 Parag Investment Pvt. Ltd
13 Propellor Infotech
14 Savita Textiles Pvt. Ltd
15 Siddhant Spinning & Weaving Mills Pvt. Ltd
16 Sneha Textiles Private Limited
17 Vedant Weaving Mills Pvt. Ltd
18 Vir Retail Private Limited
19 Tulsi Weaving Mills
Mar 31, 2014
1. Nature of Security
The above Term loan from Banks are secured by
a) First pari-passu charge on all the fixed assets, present and future
of the company.
b) Pari-passu second charge on all the current assets, present and
future of the company.
2. Terms of Repayment of above Term loan from banks
a) Out of the total term loans, Rs 9.95 crores (as on 30.06.2013
Rs.12.67 crores) is repayable in 28 Quarterly installments commencing
from June 2012. Last installment due in March 2019. Rate of interest *
11.75% p.a. as period ended(previous year 12 % p.a.)
b) Out of the total term loans,Rs 32.35 crores (as on 30.06.2013
Rs.40.55 crores) is repayable in 36 Quarterly installments commencing
from June 2010. Last installment due in March 2019. Rate of interest *
11.75% p.a. as period ended (previous year 12 % p.a.)
c) Out of the total term loans, Rs 16.53 crores (as on 30.06.2013
Rs.20.71 crores) is repayable in 32 Quarterly installments commencing
from June 2011. Last installment due in March 2019. Rate of interest *
11.75% p.a. as period ended (previous year 12% p.a.)
d) Out of the total term loans, Rs 4.21 crores (as on 30.06.2013
Rs.5.32 crores) is repayable in 40 Quarterly installments commencing
from June 2009. Last installment due in March 2019. Rate of interest *
11.75% p.a. as period ended (previous year 12 % p.a.)
e) Continuing default- Rs 40 81 56 178/- from the year 2010-11 ( as on
30th June 2013 Rs27 62 22 991/-).
c) Disclosure pursuant to Accounting Standard - 15 (revised) - Employee
Benefit :
The Company has with effect from 1st April 2007, adopted Accounting
Standard - 15 (revised). The Company has a defined Gratuity Plan
wherein every employee who has completed five years or more of service
is entitled to gratuity on retirement or resignation or death at 15
days salary (last drawn salary) for each completed year of service. The
scheme is unfunded
e) The Company is not in the possession of details required for the
purpose of classification of creditors as per Micro, Small and Medium
Enterprises Development Act, 2006. Hence the company is unable to
furnish the information required under the said Act or under Schedule
VI of the Companies Act, 1956.
f) Balances in certain party's accounts are subject to reconciliation
and consequent adjustments thereof. In the opinion of the management
the impact of such adjustments, if any, on the financial results would
be not material.
g) The company operates in one segment, viz., Textiles.
h) Taxation
a. Deferred Tax Asset on the unabsorbed business/depreciation loss
recognised earlier has been reversed since no virtual certainity can be
established evidencing that sufficient future taxable income will be
available against such deferred tax asset recognised earlier
i) Bank Balances
Consequent to listing of the company in stock exchange the company has
communicated to the bankers for making necessary change in the name of
the company in their records however some of the bankers have not given
effect to the change and continuing in the erstwhile name
j) Turnover of the company is net of sales returns and trade
discounts.The negative income in the statement of profit and loss is
due to sales returns on the cancellation of sales. The goods have been
repossesed to the extent of cancelled sales and the stock are valued at
cost or realisable value whichever is lower
k) Other Operating revenue represents the export incentives receivable
from the government authorities
l) During the period, the company has made on application with the
Board for Industrial and Financial Reconstruction (BIFR) under section
15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 on
30th July 2013. Subsequently the application has been registered in the
board vide Case No.61/2013.
m) During the period the company has shutdown its production at
Nanjangud factory since no new orders are received subsequent to
shutdown of production at Nelamangala factory in 2011
m) Previous year figures have been regrouped / reclassified wherever
necessary
Transaction with the key Management Personnel:-
1 Mr. Nitin N Mandhana : Vice Chairman & Managing Director
2 Mr. Shashikant Mandhana : Executive Director
3 Mr. Prakash G. Mandhana : Executive Director
Transaction with relatives of key Management Personnel :-
1 Mrs. Savita Mandhana
2 Mrs. Kavita Mandhana
3 Mrs. Neeta Mandhana
4 Mrs. Nirmala N Mandhana
5 Mrs. Leelavati G Mandhana
6 Mr . Narayandas mandhana
Name of Related Parties & Relationships Wholly Owned Subsidiary Company
I Indus Garments Private Limited
Associates (Enterprises in which Key Management Personnel or their
relatives exercise significant influence)
1 Abhay Weaving Mills Pvt. Ltd.
2 Abhijeet Weaving Mills Pvt. Ltd.
3 Ahaan Weaving Mills Pvt. Ltd.
4 Andrew Finvest Pvt Ltd
5 Avinash Weaving Mills Pvt. Ltd.
6 Indus Infoways Pvt. Ltd
7 Kamal Kishor Finvest Pvt Ltd
8 Kavita Weaving Mills Pvt. Ltd
9 Neeta Weaving Mills Pvt. Ltd 10 Niharika Weaving Mills Pvt. Ltd
II Nirmala Hosieries Mills Pvt. Ltd
12 Parag Investment Pvt. Ltd
13 Propellor Infotech
14 Savita Textiles Pvt. Ltd
15 Siddhant Spinning & Weaving Mills Pvt. Ltd
16 Sneha Textiles Private Limited
17 Vedant Weaving Mills Pvt. Ltd
18 Vir Retail Private Limited
19 Tulsi Weaving Mills
Jun 30, 2013
A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The company follows Accrual System of Accounting on a going concern
concept on historical cost convention method as per applicable
mandatory accounting standards.
1. USE OF ESTIAAATES
The preparation of the financial statements in conformity with GAAP
requires Management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent assets and liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Examples of such estimates include provisions for doubtful
debts, future obligations under employee retirement benefit plans,
income taxes, post-sales customer support and the useful lives of fixed
assets and intangible assets. Actual results could differ from those
estimates.
2. FIXED ASSETS AND DEPRECIATION
a. Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing
asset to its working condition for its intended use (including therein
proportionate expenditure during construction period).
b. Depreciation is provided on Straight Line basis as per Schedule XIV
to the Companies Act, 1956 at the rates specified therein and in
respect of buildings on lease hold land, cost is amortized as
depreciation over the period of lease.
3. INVENTORIES
Inventories are valued at lower of cost or net realizable value. Cost
includes all cost of purchase, applicable duties and taxes, cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition and in the case Finished Goods and
Work-in-progress includes appropriate allocated/apportioned production
overheads.
4. FOREIGN CURRENCY TRANSACTION
Monetary assets and liabilities are restated at the date of Balance
Sheet. The resultant difference is charged / credited to Profit and
Loss Account except in respect of liabilities related to fixed assets
which is adjusted to the fixed assets. In respect of Foreign Currency
Forward / Derivative contracts entered for hedge the outstanding
contracts are evaluated with the foreseeable future transaction and in
event of the material shortfall in the estimate of future transaction
corresponding forward adjustment is made for the forward / derivative
contracts, at the Balance Sheet date. However exchange Loss / Gain on
the date of maturity of forward / derivative are adjusted in the profit
and loss account of the period.
5. REVENUE RECOGNITION
a. Revenue in respect of sales is recognized on transfer of
significant risks and rewards of ownership which is generally at the
point of dispatch of materials to customers.
b. Other revenues including drawback claims etc., are recognized with
due j consideration for significant uncertainty if any in realization
of such dues.
6. RETIREMENT BENEFITS
a. Defined Contribution Plan :-
In respect of provident fund benefits the company makes the stipulated
contribution in respect of the employees to the regional provident fund
authority under which the company''s liability is limited to the extent
of the contribution.
b. Defined Benefit Plan :-
The liability for defined benefit plan of the gratuity is determined on
the basis of actuarial valuation at the end of the period using
projected unit credit method. However, the liability has not been
funded. Actuarial gain & loss which comprises experience adjustments &
effect of change in actuarial assumption are recognized in the Profit &
Loss Account.
7. INVESTMENTS
Long term investments are stated at cost (net of provisions), if any,
for diminution in value which is not temporary. Current investments are
stated at lower of cost or fair value determined with reference to its
market value realisability in consonance with the nature of underlying
asset.
8. BORROWING COSTS
Interest and other borrowing costs are charged to the profit and loss
account except in cases where the borrowing is directly attributable to
the acquisition, construction or production of an asset or group of
assets, which take(s) substantial period of time to get ready for
intended use. All other interest and other borrowing costs are
recognised as expenses in the period in which they are incurred.
9. TAXES ON INCOME
Income taxes are accounted in accordance with Accounting Standard 22 on
Accounting for Taxes on Income. Tax expense comprises of both current
and deferred tax.
Current Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the Period using the applicable tax rates and tax
laws.
Deferred Tax
Deferred Tax Assets and Liabilities are recognis ed, subject to
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income, that originate in one
period and are capable of reversal in one or more subsequent periods
and are measured using the tax rates enacted or substantively enacted
as at the Balance Sheet date. Deferred tax assets are recognized only
if there is reasonable certainty that they will be realized and are
reviewed for their appropriateness of their respective caring value at
each balance sheet date.
10. IMPAIRMENT OF ASSET
The Company assesses the impairment of assets with reference to each
Cash Generating Unit (CGU) at each Balance Sheet date if events or
changes in circumstances, based on internal and external factors,
indicate that the carrying value may not be recoverable in full. The
loss on account of impairment, which is the difference between the
carrying amount and recoverable amount, is accounted accordingly.
Recoverable amount of a CGU is its net Selling price or value in use
whichever is higher. The value in use is arrived at on the basis of
estimated future cash flows discounted at company''s pre-tax borrowing
rates.
11. PROVISIONS & CONTINGENCIES:
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which reliable
estimate can be made. Provisions are not discounted to present value
and are determined based on the best estimate required to settle the
obligation at the Balance Sheet
Nature of Security
The above Term loan from Banks are secured by
a) First pari-passu charge on all the fixed assets, present and future
of the company.
b) Pari-passu second charge on all the current assets, present and
future of the company. Terms of Repayment of above Term loan from
banks
a) Out of the total term loans, Rs 12.67 crores (as on 31.03.2012
Rs.15.38 crores) is repayable in 28 Quarterly installments commencing
from June 2012. Last installment due in March 2019. Rate of interest ®
11.75% p.a. as at period end(previous year 12% p.a.)
b)Out of the total term loans,Rs 40.55 crores (as on 31.03.2012
Rs.48.12 crores) is repayable in 36 Quarterly installments commencing
from June 2010. Last installment due in March 2019. Rate of interest ®
11.75% p.a. as at period end(previous year 12% p.a.)
c)Out of the total term loans, Rs 20.71 crores (as on 31.03.2012
Rs.24.89 crores) is repayable in 32 Quarterly installments commencing
from June 2011. Last installment due In March 2019. Rate of interest ®
11.75% p.a. as at period end(previous year 12% p.a.)
d)Out of the total term loans, Rs 5.32 crores (as on 31.03.2012 Rs.6.43
crores) is repayable in 40 Quarterly installments commencing from June
2009. Last installment due in March 2019. Rate of interest ® 11.75%
p.a. as at period end(previous year 12% p.a.)
e) Out of the total term loans, Rs. Nil (as on 31.03.2012 Rs. 0.086
crores) is repayable in 36 Monthly installments commencing from May
2011. Last installment due in April 2014. Rate of interest ® 11.02%
p.a. as at period end.
f) Out of the total term loans, Rs.Nil (as on 31.03.2012 Rs. 0.068
crores) is repayable in 36 Monthly installments commencing from June
2011. Last installment due in May 2014. Rate of interest ©11.25 % p.a.
as at period end.
g) Out of the total term loans, Rs .029 crores (as on 31.03.2012
Rs.0.095 crores ) is repayable in 36 Monthly installments commencing
from January 2012. Last installment due in December 2014. Rate of
interest ® 14% p.a. as at period end.
h) Out of the total term loans, Rs .016 crores (as on 31.03.2012
Rs.Nil) is repayable in 36 Monthly installments commencing from May
2012. Last installment due in April 2015. Rate of interest ® 11.5% p.a.
as at period end.
i) Out of the total term loans, Rs .039 crores (as on 31.03.2012
Rs.Nil) is repayable in 36 Monthly installments commencing from June
2012. Last installment due in May 2015. Rate of interest ® 11.25 % p.a.
as at period end.
j) Out of the total term loans, Rs .045 crores (as on 31.03.2012
Rs.Nil) is repayable in 36 Monthly installments commencing from August
2012. Last installment due in July 2015. Rate of interest ® 11.25 %
p.a. as at period end. k) Continuing default- Rs 276222991 from
2010-11.
12. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
Consolidated
for the Consolidated
for the
Particulars year ended 30th year ended 31st
June 2013 March 2012
(A) Contingent Liabilities
Service Tax on Rent payable
not recognised as debt as the
case is pending with Hon''ble
High Court of Karnataka 78.59 78.59
Bank Guarantee towards customs
duty concession 42.91 56.04
(B) Commitments
(a) Estimated amount of
contracts remaining to be
executed on capital account
and not provided for 1926.00 1926.00
Total 2048.001 2061.00
Mar 31, 2012
Nature of Security
The above Term loan from Banks are secured by
a) First pari-passu charge on all the fixed assets, present and future
of the company.
b) Pari-passu second charge on all the current assets, present and
future of the company.
Terms of Repayment of above Term loan from banks
a) Out of the total term loans, Rs 15.38 crores (as on 31.03.2011
Rs.16.47 crores) is repayable in 28 Quarterly installments commencing
from June 2012. Last installment due in March 2019. Rate of interest
@12% p.a. as at year end(previous year 10.75 % p.a.)
b)Out of the total term loans,Rs 48.12 crores (as on 31.03.2011
Rs.53.87 crores) is repayable in 36 Quarterly installments commencing
from June 2010. Last installment due in March 2019. Rate of interest
@12% p.a. as at year end(previous year 10.75 % p.a.)
c)Out of the total term loans, Rs 24.89 crores (as on 31.03.2011
Rs.31.34 crores) is repayable in 32 Quarterly installments commencing
from June 2011. Last installment due in March 2019. Rate of interest
@12% p.a. as at year end(previous year 10.75% p.a.)
d)Out of the total term loans, Rs 6.43 crores (as on 31.03.2011 Rs.7.45
crores) is repayable in 40 Quarterly installments commencing from June
2009. Last installment due in March 2019. Rate of interest @12% p.a. as
at year end(previous year 10.75 % p.a.)
e) Continuing default- Rs 37117494 from Dec. 2009.
1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVID ED
FOR)
(Rs. in lakhs)
As on 31ST MARCH As on 31ST MARCH
Particulars 2012 2011
(A) Contingent Liabilities
Service Tax on Rent payable not
recognised as debt as the case
is pending with Hon'ble High
Court of Karnataka 78.59 -
Bank Guarantee towards customs
duty concession 42.91 42.91
Corporate Guarantee given on behalf
of subsidiary company 2,848.00 2,848.00
(B) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided for 1,92600 2,38400
Total 4,895.50 5,274.91
*- Lease obligations are considered based on the operating lease period
mentioned in the agreement. The Company has not renewed the agreement
for its office in Mumbai from 31st March 2011 and its corporate office
which expires on 31st March 2012. Hence the operating lease obligation
to that effect is not considered above
e) The Company is not in the possession of details required for the
purpose of classification of creditors as per Micro, Small and Medium
Enterprises Development Act, 2006. Hence the company is unable to
furnish the information required under the said Act or under Schedule
VI of the Companies Act, 1956.
f) Balances in certain party's accounts are subject to reconciliation
and consequent adjustments thereof. In the opinion of the management
the impact of such adjustments, if any, on the financial results would
be not material.
g) The company operates in one segment, viz., Textiles.
h) Taxation
a. Deferred Tax Asset on the current year losses of the company has
been accounted on the basis of business plan and projection furnished
by the company to the bankers based on which the debt restructuring has
been sanctioned. There is a variation in the amount projected and the
actuals. In the opinion of the management the variance would be offset
by the earnings in future periods.
i) Bank Balances
Consequent to listing of the company in stock exchange the company has
communicated to the bankers for making necessary change in the name of
the company in their records however some of the bankers have not given
effect to the change and continuing in the erstwhile name.
j) Turnover of the company is net off sales returns and trade discounts
k) Other Operating revenue represents the export incentives receivable
from the government authorities. The Other operating revenue includes
prior period income amounting to Rs. 11632004/-
l) Previous year figures have been regrouped / reclassified wherever
necessary.
Mar 31, 2010
A. GENERAL
Pursuant to the order of the High court of Karnataka in CP No 97 of
2009 dated 06-02-2010, M/s Tulip Apparels Private Ltd has been
amalgamated with M/s Indus Fila Ltd as per the scheme of amalgamation
approved by the court. The salient features of the scheme:
1. The scheme takes effect from 31.03.2008;
2. All the Assets and Liabilities of M/s Tulip Apparels Pvt Ltd and
any accretions, additions or deletions thereto after the appointed date
(31.03.2008) shall vest with M/s Indus Fila Ltd , so as to become as
and from that date assets and liabilities of Indus Fila Ltd;
3. M/s Indus Fila Ltd shall issue and allot 3 Equity shares of the
face value of Rs 10/- each fully paid up, for every 122 shares held in
M/s Tulip Apparels Pvt Ltd;
Accordingly the Accounts for the years ended 30.06.2008 and 31.03.2009
are revised to incorporate therein the effects of the order of the
court. All assets and liabilities as on 31.03.2008 of M/s Tulip
Apparels Pvt Ltd are added to the respective heads of the assets and
liabilities as the case may be. The cumulative balance in Profit and
loss Account as on 31.03.2008, being loss has been deducted fromthe
opening balance of Profit and Loss Account. The Net surplus of assets
over the value of liabilities after deducting the face value of shares
allotted has been credited to Amalgamation Reserve. Share Capital
suspense under Share Capital represent the face value of such
un-allotted shares;
The operating results of Tulip Apparels Pvt Ltd after the said
appointed date (31.03.2008) have been incorporated under their natural
heads of account and the previous years figures are restated
accordingly;
C. OTHER NOTES
1. The Company has availed Debt Restructuring under the Corporate Debt
Restructuring mechanism. Consequential adjustments for accounting of
interest concession, funding interest etc .. Have been made in the
current year. A sum of Rs. 93,17,349 being interest concession relating
to earlier years has been credited to other Income.
2. Estimated amounts of contracts remaining to be executed on capital
account not provided for Rs 1872.72Lakhs (Previous year- Rs.1904.93
Lakhs).
3. Contingent Liabilities
a. Bank Guarantee towards customs duty concession - Rs.141.36 Lakhs
(Rs. 88.41 Lakhs);
b. Disputed Income tax demands not provided for-Rs.NIL .......(NIL);
c. Corporate Guarantee given on behalf of other companies/subsidiary
/firms/individuals - Rs.2848 Lakhs (Rs.2848 Lakhs);
5. Unsecured loans represents amount brought in by promoters in
pursuance of stipulations by financial institutions for margin
requirements and these do not carry any interest.
6. In the opinion of the Management, the intrinsic value of the
investment in subsidiary considering its controlling interest would be
not less than the cost and hence there in no diminution.
7. The Company is not in the possession of details required for the
purpose of classification of creditors as per Micro, Small and Medium
Enterprises Development Act, 2006. Hence the company is unable to
furnish the information required under the said Act or under Schedule
VI of the Companies Act, 1956.
8. Disclosure pursuant to Accounting Standard - 15 (revised) -
Employee Benefit :
The Company has with effect from 1st April 2007, adopted Accounting
Standard - 15 (revised). The Company has a defined Gratuity Plan
wherein every employee who has completed five years or more of service
is entitled to gratuity on retirement or resignation or death at 15
days salary (last drawn salary) for each completed year of service.
The scheme is unfunded
9. Balances in certain partys accounts are subject to reconciliation
and consequent adjustments thereof. In the opinion of the management
the impact of such adjustments, if any, on the financial results would
be not material
10. The company operates in one segment, viz., Textiles
11. Taxation
a) Deferred Tax Asset on the current year losses of the company has
been accounted on the basis of business plan and projection furnished
by the company to the bankers based on which the debt restructuring has
been sanctioned. There is a variation in the amount projected and the
actuals. In the opinion of the management the variance would be offset
by the earnings in future periods
b) The company had in the earlier years pursuant to the scheme of
amalgamation filed with the honorable high court of Karnataka, claimed
set off of carried forward losses of the amalgamating company. The
assessing officer had made additions/disallowances for which the
company has filed an appeal. Pending disposal of appeal, no provision
for Tax amounting to Rs 74,43,386/- has been made.
The company has not provided undisputed Tax dues for Rs.27,21,631 in
Indus Fila Limited and for Rs.47,21,755 in Tulip Apparels Pvt Ltd
Transaction with the key Management Personnel :-
1 Mr. Nitin N Mandhana : Vice Chairman & Managing Director
2 Mr. Shashikant Mandhana : Executive Director
3 Mr. Prakash G. Mandhana : Executive Director
Transaction with relatives of key Management Personnel :-
1 Mrs. Savita Mandhana
2 Mrs. Kavita Mandhana
3 Mrs. Neeta Mandhana
Name of Related Parties
Associates (Enterprises in which Key Management Personnel or their
relatives exercise significant influence)
1 Abhay Weaving Mills Pvt. Ltd
2 Abhijeet Weaving Mills Pvt. Ltd.
3 Ahaan Weaving Mills Pvt. Ltd.
4 Andrew Finvest Pvt Ltd
5 Avinash Weaving Mills Pvt. Ltd.
6 Indus Garments (India) Pvt. Ltd
7 Indus Infoways Pvt. Ltd
8 Kamal Kishor Finvest Pvt Ltd
9 Kavita Weaving Mills Pvt. Ltd.
10 Neeta Weaving Mills Pvt. Ltd
11 Niharika Weaving Mills Pvt. Ltd
12 Nirmala Hosieries Mills Pvt. Ltd
13 Parag Investment Pvt. Ltd.
14 Propellor Infotech
15 Savita Textiles Pvt. Ltd
16 Siddhant Spinning & Weaving Mills Pvt. Ltd.
17 Sneha Textiles Private Limited
18 Vedant Weaving Mills Pvt. Ltd.
12. Previous year figures have been regrouped / reclassified wherever
necessary.
The figures for the previous year is for a period of 9 months and hence
the previous years figures are strictly not comparable.
The Schedules referred to above and notes to accounts form an integral
part of the Balance Sheet and Profit & Loss Account
Mar 31, 2009
A. OTHER NOTES
1. Consequent to the change of financial year to 31st March 2009 (Nine
{9} Months), depreciation has been provided prorata to the number of
days in the financial year. The figures for the current year correspond
to a period of Nine (9) Months and hence are not comparable with
previous year figures.
2. The Companys proposal for Debt Restructuring is under
consideration by the Corporate Debt Restructuring mechanism. Pending
final approval consequential adjustments for accounting of interest
concession, funding of interest, etc., have not be made.
3. Estimated amount of contracts remaining to be executed on capital
account, not provided for Rs 1904.93 Lakhs (Previous year- Rs.379.21
Lakhs).
4. Contingent Liabilities:
a. Bank Guarantee towards customs duty concession / stock exchange
listing compliance - Rs.88.41 Lakhs (Previous year-Rs. 141.86 Lakhs);
b. Corporate Guarantee given on behalf of other companies / subsidiary
/ firms / individuals - Rs.2848 Lakhs (Previous year-Rs.3448 Lakhs)
5. Unsecured loans represents amount brought in by promoters in
pursuance of stipulations by financial institutions for margin
requirements and these do not carry any interest.
6. The Company is not in the possession of details required for the
purpose of classification of creditors as per Micro, Small and Medium
Enterprises Development Act, 2006. Hence the company is unable to
furnish the information required under the said Act or under Schedule
VI of the Companies Act, 1956.
7. Balances in certain partys accounts are subject to reconciliation
and consequent adjustments thereof. In the opinion of the management
the impact of such adjustments, if any, on the financial results would
be not material.
8. The company operates in one segment, viz., Textiles.
9. Deferred Tax assets are recognized based on Company projections of
having positive earnings in the near future.
10. Related Party Transaction Disclosure as PerAS-18
Transaction with the key Management Personnel :-
Mr. Nitin N Mandhana_: Vice Chairman & Managing Director
Mr. Shashikant Mandhana : Executive Director
Mr. Prakash G. Mandhana : Executive Director
Transaction with relatives of key Management Personnel :-
1. Mrs. Savita Mandhana
2. Mrs. Kavita Mandhana
3. Mrs. Neeta Mandhana
Name of Related Parties
Associates (Enterprises in which Key Management Personnel or their
relatives exercise significant influence)
1. Abhay Weaving Mills Pvt. Ltd.
2. Abhijeet Weaving Mills Pvt. Ltd.
3. Ahaan Weaving Mills Pvt. Ltd.
4. Avinash Weaving Mills Pvt. Ltd.
5. Indus Garments Pvt. Ltd.
6. Indus Infoways Pvt. Ltd
7. Kamal Kishor Finvest Pvt Ltd
8. Kavita Weaving Mills Pvt. Ltd.
9. Neeta Weaving Mills Pvt. Ltd.
10. Niharika Weaving Mills Pvt. Ltd.
11. Nirmala Hosieries Mills Pvt. Ltd.
12. Parag Investment Pvt. Ltd.
13. Propellor Infotech
14. Savita Textiles Pvt. Ltd.
15. Siddhant Spinning & Weaving Mills Pvt. Ltd.
16. Vedant Weaving Mills Pvt. Ltd.
17. VIR Retail Private Limited
11. Previous year figures have been regrouped / reclassified wherever
necessary.
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