Mar 31, 2012
(i) Terms & Rights attached to equity shares
i) The company has only one class of shares referred to as equity
shares having a par value of Rs. 10. Each holder of equity shaes is
entitled to one vote per share
ii) The Company declares and pays dividends in Indian Rupees. The
dividend propsed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting if any.
iii) In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remining assets of the
company after distribution of all preferential amount In proportion to
their shareholding
(ii) The company has neither alloted shares pursuant to a contract
without receiving cash. Byway of bonus shares nor it has bought back
shares during the immediately preceeding five years from the date of
balance sheet.
a) At the Annual General Meeting held on 24th September,2010, the
shareholders authorised the Board of Directors to issue warrants on
preferential basis to Promoters and Independent Investors at Rs. 26
each pursuant to conversion of fully convertible Equity Shares of of
Rs. 10 each at a premium of Rs. 16 per share
b) In the Board meeting held on 31st March,2012 the Company had
allotted 4,76,300 Equity Shares of Rs. 10/- each bealloted at Rs. 26/-
per share oursuant to conversion of fully convertible equity shares
warrants out of total outdtanding 25,00,000 fully convertible equity
share warrants issued to the Promoters and Independent Investors
c) In the Board meeting held on 9th May,2012 the Company had allotted
13,42,608 Equity Shares of Rs. 10/- each be alloted at Rs. 26/- per
share oursuant to conversion of fully convertible equity shares
warrants out of total outdtanding 25,00,000 fully convertible equity
share warrants issued to the Promoters and Independent Investors
c) For the currrent maturities of long term borrowings, refer item (a)
in Note 10 Other current liabilities
d) Secured by Directors personal guarantee and corporate Guarantee of
M/s Marlex Appliance PvtLtd. And Kahchan Kitchenaid Pvt.Ltd.
e) Car loans are secured against hypothecation of Car
a) Primary Security: Hypothection of entire existing as well as future
current assets including raw material, stars & Spares, semi finished &
finished goods and book debts etc. of the cmpany
b) Collateral Security: rge on the entire fixed assets viz. land,
building, plant & machinery of the company situated t plot No 41/42
unit - II S. NO. 653/1, Somnath Estate, Somnath Road, Dabhel, Daman
and Plant and Machinery lying at plot no 9 & 10 Unit - III, somnath
Estate, Somnath Road, Dabhel, Daman.
1. Sundry Creditors, Debtors & Loans & advances and Deposits are
subject to confirmation & Reconciliation. During the year Company have
not sent any letter of confirmation to the parties. The management,
however ,does not expect any material changes.
2. There was no employee, getting salary in excess of Rs. 5 lacs per
month or more throughout or part of the financial year under review.
3. Sundry Creditors include amount due to Small Scale and ancillary
industrial Undertaking Rs 430.31 Lacs (Previous year Rs. 327.74 Lacs)
to the extent such parties have been identified from available
information with the Company.
4. Contingent Liabilities
Rs.in Lacs
Particulars 2011-12 2010-11
(I) Bank Guarantees 84.93 4.90
(II) Preference shares Dividend 10.26 10.26
(in)Income tax
Liability(A.Y.2006-07)
(excluding interest) 1.15 1.15
5. Segment information
The Company deals in home appliances and is treated as the only
segment.
6. Related Party Information
Relationship
(a) Individuals Controlling the Enterprise and Key Management Personnel
1. Mr. Dinesh C. Khimavat - Managing Director
2. Mr. Ashok Khimavat - Director
(b) Relative of key Management personnel
1. Mrs. UshaD. Khimavat - Wife of Mr. Dinesh Khimavat
2. Mishal Khimavat - Son of Mr. Dinesh Khimavat
(c) Subsidiary Company
Kanchan International Middle East F.Z.E. (100% Subsidiary)
7. Disclosure as required by Accounting Standard 19,"Leases". Issued
by the institute of Chartered Accountants of India are given below:
(i) The Company has taken various Residential Flats & Other Premises
under Operating lease or leave & license agreements. These are generally cancelable after giving notice to party and contracts are for for 11 month under leave and license or longer for other leases and are renewable by
mutual consent on mutually agreeable terms.
(ii) Lease payments are recognized in the statement of Profit & Loss
Account under "Rent" in Note 27 Other Expenses. All Operating Leases
entered into by the Company are cancelable on giving a notice of 1 to 3
months.
8. During the year, the company has reviewed its fixed assets for
impairment loss as required by accounting standards 28-" Impairment of
Assets". In the opinion of management no provision for impairment is
considered necessary.
9. . As per Opinion of Management, the debtors are considered as good
hence no provision for doubtful debts have been made in current year, also provision made in earlier year are considered adequate.
10. The Management has taken appropriate steps for Claiming
outstanding export benefits amounts to Rs 67,77,972/- which are
outstanding from long period which were considered as doubtful during
the F.Y.2010- 11 .The management is hopeful of realizing the export
benefits and hence the management has decided not to Write off the
balances during the year.
11. During the year, Company has written-back Sundry Balances of Rs.
74.71 Lacs(NET) out of various Creditors and Provisions which are not
payable as decided by the Management which are shown in Other Income
due to which losses are reduced by Rs.74.71 Lacs
12. The company had incurred large advertisement expenses for
promotion of products and its brand building during the year 2009-10
and accounted the same as deferred revenue expenses. Balance
outstanding as on 31.03.2012 is Rs. 70.60 Lacs and shown as other
noncurrent assets. As per AS 26 the company should have written off the expense in the year it is incurred.
13. Non Provision of Liabilities in respect of Non- Compliance of
Statutory obligation is not made as amount is not ascertained.
14 The Revised Schedule VI has become effective from 1 April, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2010
1. Contingent Liabilities
Rs. In Lacs Rs. In Lacs
2009-10 2008-09
(I) Bank Guarantees 13.05 44.25
(III) Excise Duty (F. Y. 2006-07) 3.07 3.07
10.Disclosure as required by Accounting Standard 19,"Leases". Issued by
the institute of Chartered Accountants of India are given below:
(i) The Company has taken various Residential Flats & Other Premises
under Operating lease or leave & license agreements. These are
generally not non-cancelable and range between 11 month and 3years
under leave and license or longer for other leases and are renewable by
mutual consent on mutually agreeable terms. (ii) Lease payments are
recognized in the statement of Profit & Loss Account under "Rent" in
Schedule M. (Ill) The future minimum lease payments under
non-cancelable operating lease-not later than one year. Rs. 16.64 Lacs.
à Later than one year and not later than five years: Rs33.90 Lacs.
2. The Management has taken appropriate steps for recovery of debts
which were considered as doubtful during the F.Y.2008-09.The Board has
reviewed its decision during the year and its hopeful of recovering the
dues from the debtors and hence the management has decided not to make
any further provision for doubtful debts during the year.apart from the
provisions made in the earlie year.
3. During the year.Company has written-off Sundry Balances of
Rs.67,91,720/-(NET) out of various Creditors and Provisions which are
not payable as decided by the Management which are shown in Other
Income due to which losses are reduced by Rs.67,91,720/-
4. During the year company has issued 8,55,000, 6% cumulative
redeemable preference shares of Rs. 10/- each to Kanchan Kichtenaid pvt.
Ltd.and application money has been obtained during the year to the
extent of Rs. 38.35 lacs towards preference shares which are allotted
subsequently.
Mar 31, 2009
1. Contingent Liabilities
Rs. In Lacs Rs. In Lacs
2008-09 2007-08
(I) Bank Guarantees 44.25 40.16
(II) Disputed Income Tax
Liabilities (AY 2006-07 ) 97.62 NIL
(III) Excise Duty (F.Y. 2006-07) 3.07 3.07
2. Related Party Information
(i) Relationship
(a) Individuals Controlling the Enterprise and Key Management Personnel
1. Mr.Dinesh C.Khimavt Managing Director
2. Mr.Bharat H.Pipalia Whole Time Director
3. Mr.C.S.Khimavat Non Executive Director
(b) Relatives of key Management Personnel
Mrs.Usha D.Khimavat Wife of Managing Director
(c) Subsidiary Company
Kanchan International Middle East F.Z.E. (100% Subsidiary)
(D) Enterprises in which key management Personnel & their Relatives are
interested 1.Kanchan Kitchenaid Pvt.Ltd. 2.Kanchan Engineering
Pvt.Ltd. 3.Marlex Appliances Pvt.Ltd. 4.Marlex Products Ltd.
3.Disclosure as required by Accounting Standard 19,"Leases". Issued by
the institute of Chartered Accountants of India are given below:
(I) The Company has taken various Residential Flats & Other Premises
under Operating lease or leave & license agreements. These are
generally not non-cancelable and range between 11 month and 3years
under leave and license or longer for other leases and are renewable by
mutual consent on mutually agreeable terms.
(ii) Lease payments are recognized in the statement of Profit & Loss
Account under "Rent" in schedule N.
(iii) The future minimum lease payments under non-cancelable operating
lease-not later than one year. Rs. 16.98 Lacs. -Later than one year
and not later than five years: Rs84.90 Lacs.
4. The Management has taken appropriate steps for recovery of debts
which were considered as doubtful during the F.Y. 2007-08. The Board
has reviewed its decision during the year and is hopeful of recovering
the dues from the debtors, the response from the respective debtor is
positive and the company has also recovered an amount of Rs.
64,65,426/- during the year. In view of the above the entire debts are
considered as good debts and the management has decided not to make any
further provision for doubtful debts during the year, apart from the
provisions made in the earlier year.
5.Capital WIP capitalized to Furniture & fixtures pertains to capital
expenses incurred on the leasehold premises occupied by the Company.
Since item wise amount spent on respective assets are not available,
all the capital expenditure is capitalized under the head of "Furniture
& Fixture" and Depreciation has been provided accordingly.
6.The Authorised Share capital has been reclassified into equity and
preference shares during the year. Share application money has been
obtained during the year to the extent of Rs. 54.50 lacs towards
preference shares which are allotted subsequently.
7. The Depreciation of earlier year wrongly provided excess in the
books has been reversed during the year and transferred to prior period
items.
8. Figures of the previous year have been regrouped, rearranged and
recasted so as to make them comparable with the figures of the current
year.
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