Sep 30, 2014
(i) Nature of Security
(A) Secured against joint equitable mortgage of all immovable
properties both present and future ranking pari passu inter se and
Hypothecation of all movable properties both present and future (Save
and Except Book Debts) including movable machinery machinery spares,
tools and accessories, subject to prior charge created and/or to be
created in favour of Company''s Bankers for Working Capital Facilities.
(iv) During the previous year State Bank of India and IDBI bank has
recalled the loan on account of breach of loan covenant, while, so the
same loans have been classified as current maturities of long term
borrowings for the current year. Interest has been provided as per last
communicated rates or at the rate debited by Bank.
(v) Includes Rs. 25,000/- (Previous Year Rs. 25,000/-) payable to Director.
(1) Valued at cost or net realizable value whichever is lower
(2) Valued at cost
(3) At Net realisable value
(a) Excludes inventory of cotton Rs. 5,37,18,385/- (net of VAT Rs.
26,66,596/-) [P.Y. Rs. 6,82,80,224/- (net of VAT Rs. 34,14,0121-)] for the
current year, lying with the Company in respect of which, as per the
terms of purchase agreement, the property in and title of goods shall
continue with the suppliers until and to the extent payment is not made
to them.
(b) in view of (a) above, unpaid suppliers of cotton as at September
30, 2014 amounting ^5,99,99,140/- (P.Y. Rs.6,98,03,788/-)whose material
have been consumed on or before September 30, 2014 have lien over the
work- in-progress and finished goods produced out of consumption of
those cotton, to the extent of the outstanding amount due to them.
2. OTHER NOTES TO ACCOUNTS
(a) Contingent Liabilities and Commitments (to the extent not provided
for) (Amount in Rs.)
As at 30.09.2014 As at 30.09.2013
(i) Contingent Liabilities
(a) Claims against the Company
not acknowledged as debt -
Labour Matters 10,27,271 5,65,877
(b) Losses on account of
foreign exchange difference,
excluding interest, 11,78,81,338 11,78,81,338
if any, on unilateral
cancellation of Forward
Contract by State Bank of
India without authorisation
form the Company for which
the Company has filed a suit in
the Hon''ble High Court at
Calcutta against the Bank.
The said suit has been
transfered to the City
Civil Court in Ahmedabad
pursuant to the order dated
18th day of August 2014 of
Calcutta High
Court.
11,89,08,609 11,84,47,215
(ii) Commitments
Estimated amount of contracts
remaining to be executed on 15,00,000 -
Capital Account and not provided for
15,00,000 -
12,04,08,609 11,84,47,215
(b) As of the Balance Sheet date, the Company''s net foreign currency
exposures that are not hedged by a derivative instrument or otherwise
is Rs. Nil (PY Rs. Nil)
(c) Segment Reporting
In accordance with the requirements of Accounting Standard 17 -
''Segment Reporting'' the Company has determined its business segment as
Textile Products. Since 100% of the Companys'' business is from Textile
Products, there are no other primary reportable segments. Thus the
segment revenue, segment results, total carrying amount of segment
liabilitites, total cost incurred to acquired segment assets, the total
amount of charge for depreciation and amortisation during the year are
all as reflected in the financial statements for the year ended
September 30, 2014 and as on that date. Also there being no business
outside India, the entire business has been considered as single
geographic segment.
(g) Disclosure pursuant to Accounting Standarad -15 (Revised) "Employee
Benefits": a. Defined Contribution Plans :
Amount of Rs. 66,99,302/- (Previous year Rs. 63,53,416/-) is recognised as
expense and included in "Employee Benefits Expenses" in Note - 21 to
the Statement of Profit & Loss.
(h) Related Party Disclosures
Related party disclosures, as required by AS-18 "Related Party
Disclosures", are given below:
1. Relationships:
(i) Key Management Personnel and their relatives :
Mr. Umang Kanoria Ms. Stuti Kanoria
Mrs. Anuradha Kanoria Master Satvik Kanoria (ii) Enterprises over which
the key management personnel and/or their relatives have significant
influence :
B.T. Investments Pvt. Ltd. Innova Properties Pvt. Ltd.
Cosmos Resources Pvt. Ltd. Milan Agencies Pvt. Ltd.
Kanco Tea & Industries Ltd. Nidhi Pvt. Ltd.
E.T. Resources Pvt. Ltd. OCL Investments & Leasing Ltd.
Facitcon Investments Pvt. Ltd. ST. Investment Pvt. Ltd.
Suryasakti Commodities Pvt. Ltd.
(i) The Company''s appeal filed on 18/01/2013 in Appellate Authority for
Industrial and Financial Reconstruction u/s 25(1) of the Sick
Industrial Companies (Special Provisions) Act,1985 (SICA, 1985) for
reference bearing no.3/2012 filed u/s 15(1) of the SICA, 1985 against
the order passed by the Board of Industrial and Financial
Reconstruction (BIFR) is pending. The Company''s reference bearing
no.6/2014 filed u/s 15(1) of SICA, 1985 filed with BIFR is also
pending.
Q) The Company has accumulated losses of Rs. 76,31,01,034/- as on
September 30, 2014, resulting in complete erosion of its net worth. The
Company has no specific plan to wind up its operations in the near
future. The management is of the view that long term prospects of the
Company appear better with overall turnaround in the textile industry,
stability in the cotton price. In view of this the financial statement
have been prepared on a going concern basis.
In addition to this management also expect reliefs/concessions on
sanction of rehabilitation/ revival package by the Board of Industrial
and Financial Reconstructions ( BIFR) as company is already involved in
discussion with its lenders for this purpose which will help the
Company to run its operations in coming years.
(k) The previous period figures have been regrouped/reclassified,
wherever necessary to conform to the current year presentation.
Sep 30, 2013
(1) The Company has not received any intimation from the suppliers
regarding status under the Micro, Small & Medium Enterprises
Development Act, 2006 (The Act) and hence disclosures regarding : a)
Amount due and outstanding to suppliers as at the accounting period, b)
Interest paid during period, c) Interest payable at the end of the
accounting period and d) Interest accrued at the end of accoutning
period, has not been disclosed or provided.
2. OTHER NOTES TO ACCOUNTS
(a) Contingent Liabilities and Commitments (to the extent not provided
for)
(Amount in Rs.)
As at
30.09.2013 30.09.2012
(i) Contingent Liabilities
(a) Claims against the Company
not acknowledged as debt Labour
Matters 5,65,877 3,35,231
(b) Losses on account of foreign
exchange difference, excluding
interest, 11,78,81,338 11,78,81,338
if any, on unilateral
cancellation of Forward
Contract by State Bank of
India without authorisation
form the Company for which
the Company has filed a suit
in the Hon''ble High Court at
Calcutta against the Bank.
11,84,47,215 11,82,16,569
(ii) Commitments
Estimated amount of contracts
remaining to be executed on 4,23,45,734
Capital Account and not
provided for 4,23,45,734
11,84,47,215 16,05,62,303
(b) As of the Balance Sheet date,
the Company''s net foreign
currency exposures that are not
hedged by a derivative instrument
or otherwise is Rs. Nil (PY Rs. Nil)
(c) Segment Reporting
In accordance with the requirements of Accounting Standard 17 ''Segment
Reporting'' the Company has determined its business segment as Textile
Products. Since 100% of the Companys'' business is from Textile
Products, there are no other primary reportable segments. Thus the
segment revenue, segment results, total carrying amount of segment
liabilitites, total cost incurred to acquired segment assets, the total
amount of charge for depreciation and amortisation during the year are
all as reflected in the financial statements for the year ended
September 30, 2013 and as on that date.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER NOTES TO ACCOUNT (Contd.)
(a) The Company''s appeal filed on 18/01/2013 in Appellate Authority for
Industrial and Financial Reconstruction u/s 25(1) of the Sick
Industrial Companies (Special Provisions) Act,1985 (SICA, 1985) for
reference bearing no.3/2012 filed u/s 15(1) of the SICA, 1985 against
the order passed by the Board of Industrial and Financial
Reconstruction (BIFR) is pending. The Company''s reference bearing
no.6/2013 filed u/s 15(1) of SICA, 1985 filed with BIFR is also
pending.
The Company has accumulated losses of Rs. 66,45,49,107/ as on September
30, 2013, resulting in complete erosion of its net worth. The Company
has no specific plan to wind up its operations in the near future. The
management is of the view that long term prospects of the Company
appear better with overall turnaround in the textile industry,
stability in the cotton price. In view of this the financial statement
have been prepared on a going concern basis.
In addition to this management also expect reliefs/concessions on
sanction of rehabilitation/ revival package by the Board of Industrial
and Financial Reconstructions ( BIFR) as company is already involved in
discussion with its lenders for this purpose which will help the
company to run its operations in coming years.
(B) The previous period figures have been regrouped/reclassified,
wherever necessary to conform to the current year presentation.
Sep 30, 2012
(a) Terms/Rights attached to Equity Shares
The Company has one class of equity shares having a par value of f 10
per share. Each shareholder is eligible for one vote per share held. In
the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
(i) Nature of Security
(A) Secured againstjoint equitable mortgage of all immovable properties
both present and future ranking pari passu inter se and Hypothecation
of all movable properties both present and future (Save and Except Book
Debts) including movable machinery, machinery spares, tools and
accessories, subject to prior charge created and/or to be created in
favour of Company''s Bankers for Working Capital Facilities.
(B) Loans are guaranteed by the Manging Director.
(C) Secured by Hypothecation of Motor Cars purchased against said
loans.
(a) Contingent Liabilities and Commitments
(to the extent not provided for) (Amount in Rs.)
As at
30.09.2012 30.09.2011
(i) Contingent Liabilities
(a) Claims against the Company
not acknowledged as debt - Labour
Matters 3,35,231 2,28,950
(b) Bills Discounted (Since Realised) 8,03,00,066
3,35,231 8,05,29,016
(ii) Commitments
Estimated amount of
contracts remaining
to be executed on
Capital Account and not provided for 4,23,45,734 4,14,95,104
4,23,45,734 4,14,95,104
4,26,80,965 12,20,24,120
(b) As of the Balance Sheet date,
the Company''s net foreign
currency exposures that are
not hedged by a derivative
instrument or otherwise
is as follows :
Trade Receivable USD 6,22,847
INR 3,06,25,986
(c) Segment Reporting
In accordance with the requirements of Accounting Standard 17 -
"Segment Reporting" the Company has determined its business segment
as Textile Products. Since 100% of the Companys'' business is from
Textile Products, there are no other primary reportable segments. Thus
the segment revenue, segment results, total carrying amount of segment
liabilitites, total cost incurred to acquire segment assets, the total
amount of charge for depreciation and amortisation during the year are
all as reflected in the financial statements for the year ended
September 30, 2012 and as on that date.
(D) Disclosure pursuant to Accounting Standarad -15 (Revised)
"Employee Benefits": a. Defined Contribution Plans :
Amount of f54,35,295/- (Previous period f28,77,557/-) is recognised as
expense and included in "Employee Benefits Expenses" in Note - 21 to
the Statement of Profit & Loss.
(E) The Company has decided to file an appeal u/s 25(1) the Sick
Industrial Companies (Special Provisions) Act,1985 against the order
passed by the Board of Industrial and Financial Reconstruction (BIFR)
for reference bearing no.3/2012 filed u/s 15(1) of the SICA,1985 on
13/01/2012.
(F) The Company has incurred accumulated loss of f65,34,55,528/- as on
September 30, 2012, which has resulted in erosion of its net worth by
more than 100%. The Company will make a fresh reference u/s 15(1) of
the SICA,1985 along with a rehabilitation scheme to the BIFR.The
Company has no specific plan for windup operations in the near future.
The Management, on the basis of Techno Economic Viability study
conducted by an approved consultant, looking into the stability in the
cotton price and overall turnaround in the Textile Industry, believes
that it will have sufficient funds to meet its liability for the next
twelve months and hence continue to present its financial statements on
going concern basis.
(G) During the year ended 30th September, 2012, State Bank of
India(SBI) has unilaterally cancelled the forward contracts and debited
f 11,78,81,338/-, being the losses on account of foreign exchange
difference, excluding interest, if any, into our Cash Credit Account
without any authorization from us. The Company is not in agreement with
the action taken by the SBI and have already lodged its objection with
SBI. The Company therefore disputes the forex losses and has not
recognized the same in its Books of Accounts.
(H) The previous period figures have been regrouped/reclassified,
wherever necessary to conform to the current year presentation. The
figures for the previous period are for the period of six months and
are thus not comparable with current year figures.
Mar 31, 2011
31st March, 2011 31st March, 2010
(1) Contingent Liabilities
not provided for: Rs (000) Rs (000)
a) Claims against the
Company not acknowledged
as debts -
Labour Matters 27,89 2,32
b) i) Bills discounted 3,36,72 10,16,40
ii) Since realised 1,72,42 8,52,87
(2) The Company has not received any intimation from the suppliers
regarding status under the Micro, Small & Medium Enterprises
Development Act, 2006 (The Act) and hence disclosures regarding :
a)Amount due and outstanding to suppliers as at the accounting year,
b)Interest paid during year, c) Interest payable at the end of the
accounting year and d) Interest accrued at the end of accoutning year,
has not been disclosed or provided.
The Company is making efforts to get the confirmations from the
suppliers as regards their status under the Act.
(3) In accordance with the requirements of Accounting Standard 17 -
"Segment Reporting" the Company has determined its business segment as
Textile Products. Since 100% of the Companys business is from Textile
Products, there are no other primary reportable segments. Thus the
segment revenue, segment results, total carrying amount of segment
liabilitites, total cost incurred to acquired segment assets, the total
amount of charge for depreciation and amortisation during the year are
all as reflected in the financial statements for the year ended March
31, 2011 and as on that date.
(4) Disclosure pursuant to Accounting Standard -15 (Revised) "Employee
Benefits":
The Company during the year, has adopted Accounting Standard 15
(revised) "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
a. Defined Contribution Plans:
Amount of Rs 57,19 (Previous year Rs 51,36) is recognised as expense
and included in "Payments to and Provision for Employees" in
Schedule-18 to the Profit & Loss Account.
b. Defined Benefit Plans :
The Estimates ot future salary increases considered in acruanal
valuation takes into account inflation, seniority, promotion and other
relevant factors.
vi. Amount recognised as an expense in respect of Compensated Leave
Absences is Rs 12,46.
c. Current year figures are given by LIC after giving effect of
adjustment on account of demerger of Tea division of the Company during
previous year and same has been adjusted from current year.
(5) Related Party Disclosures
Related party disclosures, as required by AS-18 "Related Party
Disclosures" are given below :
1. Relationships :
i) Key Management Personnel and their relatives :
Mr. Umang Kanoria Miss Stuti Kanoria Mr. G. R. Basotia
(upto31.12.2010)
Mrs. Anuradha Kanoria Master Satvik Kanoria
ii) Enterprises over which the key management personnel and/or their
relatives have significant influence :
B. T. Investments Pvt. Ltd. Innova Properties Pvt. Ltd.
Cosmos Resources Pvt. Ltd. Milan Agencies Pvt. Ltd.
Kanco Tea & Industries Limited Nidhi Pvt. Limited
(Formerly known as Dhanvaridhi
Concerns Ltd.) OCL Investments & Leasing Ltd.
E.T. Resources Pvt. Ltd. S. T. Investment Pvt. Ltd.
Facitcon Investments Private
Limited Suryasakti Commodities Pvt. Ltd.
(6) Deferred Tax Asset on account of unabsorbed depreciation has been
recognised by the Company as prudent because Company has gone for a
major expansion consisting of forward integration and increase in
capacity, which would considerably increase its future profitability.
(7) Previous year figures have been regrouped / rearranged whereever
necessary.
Mar 31, 2010
31st March,2010 31st March,2009
(1) Contingent Liabilities
not provided for: Rs.(000) Rs.(000)
a) Claims against the Company
not acknowledged as debts -
Labour Matters 2,32 6,04
b) i) Bills discounted 10,16,40 7,24,55
ii) Since realised 8,52,87 2,25,44
c) Irrevocable Stand by Revolving
Letter of Credit - 4,19
(2) Estimated amount of contracts
remaining to be executed on capital
account for Rs.4,14,95 (Previous Year
Rs.4,13,33 ) but not provided for.
(3) The Company has not received any intimation from the suppliers
regarding status under the Micro, Small & Medium Enterprises
Development Act, 2006 (The Act) and hence disclosures regarding : a)
Amount due and outstanding to suppliers as at the accounting year, b)
Interest paid during year, c) Interest payable at the end of the
accounting year and d) Interest accrued at the end of accoutning year,
has not been disclosed or provided.
The Company is making efforts to get the confirmations from the
suppliers as regards their status under the Act.
(4) In accordance with the requirements of Accounting Standard 17 -
"Segment Reporting" the Company has determined its business segment as
Textile Products. Since 100% of the Companys business is from Textile
Products, there are no other primary reportable segments. Thus the
segment revenue, segment results, total carrying amount of segment
liabilitites, total cost incurred to acquired segment assets, the total
amount of charge for depreciation and amortisation during the year are
all as reflected in the financial statements for the year ended March
31, 2010 and as on that date.
(5) Disclosure pursuant to Accounting Standard -15 (Revised) "Employee
Benefits":
a. The Company during the year, has adopted Accounting Standard 15
(revised) "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
b. Defined Contribution Plans : Amount of Rs. 51,36 (Previous year Rs.
88,33) is recognised as expense and included in "Employees Emoluments"
in Schedule-18 to the Profit & Loss Account.
(6) Related Party Disclosures
Related party disclosures, as required by AS-18 "Related Party
Disclosures" are given below : 1. Relationships:
i) Key Management Personnel and their relatives :
Mr. Umang Kanoria Miss Stuti Kanoria Mr. G. R. Basotia
Mrs. Anuradha Kanoria Master Satvik Kanoria
ii) Enterprises over which the key management personnel and/or their
relatives have significant influence :
B. T. Investments Pvt. Ltd. Milan Agencies Pvt. Ltd.
Cosmos Resources Pvt. Ltd. Nidhi Pvt. Limited
E.T. Resources Pvt. Ltd. OCL Investments & Leasing Ltd.
Facitcon Investments Private
Limited S. T. Investment Pvt. Ltd.
Innova Properties Pvt. Ltd. Suryasakti Commodities Pvt. Ltd.
Kanco Tea & Industries Limited
(Formerly known as Dhanvaridhi
Concerns Ltd.)
(7) Arrangement between Dhanvaridhi Concerns Limited (DCL) with Kanco
Enterprises Limited ("the Company") : In accordance with the Scheme of
Arrangement (the Scheme) between the Company with DCL as approved by
the members, at a court convened meeting held on October 7, 2009, the
Honorable High Court of Judicature at Calcutta, vide its Order dated,
March 10, 2010, sanctioned the following :
(i) The Tea Division of the Company, being all its assets and
properties, both movable and immovable, industrial and other licenses,
trademarks, all other interests, rights and powers of every kind, etc.,
and all its debts, liabilities, duties and obligations, has been
transferred to and vested in DCL with effect from April 01, 2009 (the
appointed date). The Scheme has accordingly been given effect to in
these accounts.
(ii) On account of the said demerger, the Company has transferred all
the assets and liabilities of the Tea Division to DCL at their book
values as at April 01, 2009. As stipulated in the Scheme of
Arrangement, difference arising out of this transfer has been adjusted
to General Reserves Account.
(iii) On account of giving the effect of the Scheme, in these accounts,
current year figures do not contain figures of Tea Division and so, are
not comparable with previous year figures.
(8) Deferred Tax Asset on account of unabsorbed depreciation has been
recognised by the Company as prudent because Company has gone for a
major expansion consisting of forward integration and increase in
capacity, which would considerably increase its future profitability.
(9) Previous year figures have been regrouped / rearranged whereever
necessary.
Mar 31, 2009
Disclosure pursuant to Accounting Standarad -15 (Revised) "Employee
Benefits":
a. The Company during the year, has adopted Accounting Standard 15
(Revised) "Employee Benefits" issued by the Institute of Chartered
Accountants of India.
b. Defined Contribution Plans :
Amount of Rs.88,33 (Previous Year Rs.85,77) is recognised as expense
and included in "Payments to and Provision for Employees" in Schedule
-17 to the Profit & Loss Account.
c. Defined Benefit Plans :
1. Note No. 11 of Schedule 20 Related Party Disclosures
Related party disclosures, as required by AS-18 "Related Party
Disclosures" are given below : 1. Relationships:
i) Key Management Personnel and their relatives :
Mr. Umang Kanoria Miss Stuti Kanoria Mr. G. R. Basotia
Mrs. Anuradha Kanoria Master Satvik Kanoria
ii) Enterprises over which the key management personnel and/or their
relatives have significant influence :
B. T. Investments Pvt. Ltd. Facitcon Investments Pvt. Ltd. OCL
Investments & Leasing Ltd.
Cosmos Resources Pvt. Ltd. Innova Properties Pvt. Ltd. S. T.
Investment Pvt. Ltd.
Dhanvaridhi Concerns Ltd. Milan Agencies Pvt. Ltd. Suryasakti
Commodities Pvt. Ltd.
E. T. Resources Pvt. Ltd. Nidhi Pvt. Limited
C. Notes :
i) The Company is operating under two main business segments namely Tea
and textile.
ii) Segment revenue in each of the business segments primarily includes
sales (net of excise duty as applicable), commission and service
charges and export incentives.
iii) The expenses which are not directly attributable to the business
segment are shown as unallocated expenditure.
iv) Segment assets include all operating assets used by the business
segment and consist principally of fixed assets, debtors and
inventories. Segment liabilities primarily include creditors and other
liabilities.
v) Segment revenue by geographical area is based on geographical
location of customers.
2. Note No. 15 of Schedule 20
Deferred Tax Asset on account of unabsorbed depreciation has been
recognised by the Company as prudent because it has gone for a major
expansion consisting of forward integration and increase in capacity at
its textile division, which would considerably increase its future
profitability.
3. Note No. 16 of Schedule 20
Previous year figures have been regrouped / rearranged wherever
necessary:-
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