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Notes to Accounts of Indus Fila Ltd.

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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