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Notes to Accounts of Nandan Denim Ltd.

Mar 31, 2015

1. In accordance with Companies (Accounting Standards) Amendment Rules,2009 the company has exercised the option of adjusting exchange difference arising on reporting of long term foreign currency monetary item related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets.

Exchange difference Loss relating to long-term monetary item, in so far related to acquisition of depreciable capital asset, adjusted to the Fixed Assets and amount of Rs. 20,57,706/- (P.Y Rs. 38,242,594/-) arising during the current year are adjusted to the cost of the fixed assets and depreciated over the balance life of the fixed assets.

2. Net Foreign Exchange Gain of Rs. 16,318,059/- (Previous Year loss of Rs.18,45,440/-) in respect of Exports included in Other Expenses. Net Foreign exchange gain amounting to Rs.70,806,244/- (Previous Year Loss of Rs.11,490,685/-) in respect of various other items is included in Other Expenses. Net Foreign exchange gain amounting to Rs.Nil (Previous Year Gain of Rs.Nil) in respect of Fixed Asset is included in Other Expenses.

3. Donation Expense includes CSR Expense of Rs. 9,000,000/- (Previous Year Rs. Nil).

4. Fuel Cost is net of Fuel Income of Rs.36,999,504/- (P.Y. Rs..30,676,236/-).

5. Employee Cost is net of Labour reimbursement of Rs. 32,700,000/- (P.Y. Rs. 71,700,000/-).

6. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in Balance sheet. Adequate provisions have been made for all known liabilities except stated otherwise.

7. Balances of some of the Debtors, Creditors, Loans and Advances etc. are subject to confirmation and reconciliation.

8. The Company has entered into certain operating lease agreements and an amount of Rs. 7,903,985/- (P.Y. Rs. 7,396,777/-) paid under such agreements has been charged to the statement of Profit & Loss. These lease are generally not non cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

9. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. 38,572,591/- (Previous Year Rs. 52,540,872/-) is capitalized by the company net of TUFS interest subsidy Rs. Nil (Previous Year Rs. 14,593,616/-).

10. During the year, the company has impaired the assets to the tune of Rs. Nil (Previous year Rs. Nil).

11. Interest and Finance Charges are net of interest subsidy received/receivable under TUFS scheme amounting to Rs. 113,258,046/- (Previous year Rs. 83,528,858/-) and Interest Subvention of Rs. Nil (PY Rs. 16,58,995/-)

12. The figures of the previous year have been regrouped and rearranged wherever considered necessary.


Mar 31, 2014

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

Sr.No.Particulars 2013-14 2012-13 Rs. Rs.

a) Income Tax demands disputed in appeal by the Company/ 10,403,441 10,116,480 Income Tax Authorities [Against which the Company has paidamount of Rs.5,182,280/- (Previous Year 2,392,260/-)]

b) Show Cause Notice received from Various 2,466,446 514,545 Authories in respect of Excise & Customs

c) Professional Tax 192,912 192,912

d) Estimated Amount of Contracts remain to be Executed on 616,750,427 691,998,064 Capital Account. Advance paid against such Contract is Rs.3,693,698/- (Previous year Rs.142,993,814/-) which is shown under the head advances.

e) Corporate guarantee in Favour of IDBI Bank Ltd. to secure 197,000,000 197,000,000 Term Loan Sanctioned to M/s Vraj Integrated Textile Parks Ltd.

f) Corporate guarantee in Favour of State Bank of Bikaner and Jaipur. 163,000,000 163,000,000 to secure Term Loan Sanctioned to M/s Vraj Integrated Textile Parls Ltd.

i) Bank Guarantee 24,080,200 14,080,200

j) A letter has been received by the company from Service Tax Department Amount not Amount not seeking Clarification on Selling Commission. Quantifiable Quantifiable

2. The Company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme". The company has pending export obligation to the extent of Rs.Nil (Previous year Rs. Nil/-) to be fulfilled during the specified period. The liability towards custom duty payable thereon in respect of unfulfilled export obligation as on 31st March, 2014 is Rs.Nil (Previous Year Rs. Nil).

3. In accordance with Companies (Accounting Standards) Amendment Rules,2009 the company has exercised the option of adjusting exchange difference arising on reporting of long term foreign currency monetary item related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets.

Exchange difference Loss relating to long-term monetary item, in so far related to acquisition of depreciable capital asset, adjusted to the Fixed Assets and amount of Rs. 38,242,594/- (P.Y.Rs.Nil) arising during the current year are adjusted to the cost of the fixed assets and depreciated over the balance life of the fixed assets.

4. Net Foreign Exchange loss of Rs. 18,45,440/- (Previous Year gain of Rs. 8,750,619/-) in respect of Exports included in Other Expenses.Net Foreign exchange loss amounting to Rs.11,490,685/- (Previous Year Loss of Rs. 11,597,210/-) in respect of various other items is included in Other Expenses. Net Foreign exchange gain amounting to Rs Nil (Previous Year Gain of Rs. 65084974/-) in respect of Fixed Asset is included in Other Expenses.

5. Fuel Cost is net of Fuel Income of Rs.30,676,236/- (P.Y. Rs. .30,538,586/-).

6. Employee Cost is net of Labour reimbursement of Rs. 71,700,000/- (P.Y. Rs. 38,289,346/-).

7. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in Balance sheet. Adequate provisions have been made for all known liabilities except stated otherwise.

8. Balances of some of the Debtors, Creditors, Loans and Advances etc. are subject to confirmation and reconciliation.

9. The Company has entered into certain operating lease agreements and an amount of Rs.7,396,777/- (P.Y. Rs.12,070,457/ -) paid under such agreements has been charged to the statement of Profit & Loss. These lease are generally not non cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

10. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. 52,540,872/- (Previous Year Rs. Nil) is capitalized by the company net of TUFS interest subsidy Rs. 14,593,616/- (Previous Year Rs. Nil).

11. During the year, the company has impaired the assets to the tune of Rs. Nil (Previous year Rs. Nil).

12. Interest and Finance Charges are net of interest subsidy received/receivable under TUFS scheme amounting to Rs.83,528,858/ - (Previous year Rs. 98,279,275/-) and Interest Subvention of Rs.1,658,995/- (PY. Rs. Nil)

13. Related Party Disclosures:

A) Key Management Personnel:

Sr.No. Name Designation

1 Shri Vedprakash Chiripal Chairman

2 Shri Brijmohan Chiripal Managing Director

3 Shri Deepak Chiripal CEO

B) List of Relatives of Key Management Personnel with whom transactions have taken place during the year:

Sr. No. Name Nature of Relationship

1 Savtridevi Chiripal Relative of Chairman

2 Pritidevi Chiripal Relative of Managing Director

3 Vinita Agrawal Relative of Chairman

4 Urmiladevi Agrawal Relative of CEO

5 Jayprakash Agrawal Relative of Chairman

6 Jyotiprasad Agrawal Relative of CEO

7 Vedprakash D Chiripal-HUF Relative of Chairman

C) List of Other Related Parties with whom transactions have taken place during the year:

Sr. No. Name Sr. No. Name

1 Shanti Exports Pvt. Ltd. 8 Nova Textiles Pvt. Ltd.

2 Chiripal Industries Ltd. (Formerly Nandan Industries Pvt. Ltd.)

3 Shanti Education Initiatives Ltd. 9 Chiripal Poly Films Ltd.

4 Nandan Chiripal Energy Corporation 10 Chiripal Charitable Trust LLP 5 Chiripal Infrastructure Ltd. 11 Chiripal Lifestyle Ltd.

6 CIL Nova Petrochemicals Ltd. 12 Vishal Fabrics Ltd.

7 Chiripal Exim LLP 13 Devkinandan Corporation LLP

Note: List of transaction, out of the transactions reported in the above table, where the transactions entered in to with single party exceed the 10% of the total related Party transactions of similar nature are as under:

14. The Company is considered to be engaged in Textile Industry with all activity revolving around this business and accordingly has only one reportable business segment. The company has identified geographical segment as its secondary business segment, the details are as follows.


Mar 31, 2013

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

Sr. No. Particulars 2012-13 2011-12 Rs. Rs.

a) Income Tax demands disputed in appeal by the Company/ 10,116,480 6,619,706 Income Tax Authorities [Against which the Company has paid Amount of Rs.2,392,260/- (Previous Year Nil)]

b) Excise Demand disputed in appeal by the company /Excise Department 514,545 514,545

c) Professional Tax 192,912 192,912

d) Estimated Amount of Contracts remain to be Executed on Capital Account. 691,998,064 195,348,153 Advance paid against such Contract is Rs.142,993,814/- (Previous year Rs. 145,689,622/-) which is shown under the head advances.

e) Corporate guarantee in Favour of IDBI Bank Ltd. to secure Term Loan 197,000,000 197,000,000 Sanctioned to M/s Vraj Integrated Textile Park Ltd.

f) Corporate guarantee in Favour of State Bank of Bikaner and Jaipur. to 163,000,000 163,000,000 secure Term Loan Sanctioned to M/s Vraj Integrated Textile Park Ltd.

g) Bank Guarantee 14,080,200 18,030,684 h) A letter has been received by the company from service tax Amount not Amount not Department seeking Clarification on selling Commission. Quantifiable Quantifiable

2. The Company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme". The company has pending export obligation to the extent of Rs.Nil (Previous year Rs. 122,474,103/-) to be fulfilled during the specified period. The liability towards custom duty payable thereon in respect of unfulfilled export obligation as on 31st March, 2013 is Rs.Nil (Previous Year Rs. 15,309,263/-).

3. In accordance with Companies (Accounting Standards) Amendment Rules,2009 the company has exercised the option of adjusting exchange difference arising on reporting of long term foreign currency monetary item related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets.

Exchange difference relating to long-term monetary item, in so far related to acquisition of depreciable capital asset, adjusted to the Fixed Assets and amount of Rs. Nil (P.Y.Rs.Nil /-) arising during the current year are adjusted to the cost of the fixed assets and depreciated over the balance life of the fixed assets.

4. Net Foreign Exchange loss of Rs.8,750,619/- (Previous Year gain of Rs. 405,867/-) in respect of Exports included in Other Expenses. Net Foreign exchange loss amounting to Rs.11,597,210/- (Previous Year Loss of Rs. 8,749,821/-) in respect of various other items is included in Other Expenses. Net Foreign exchange gain amounting to Rs 65,084,974/- (Previous Year Loss of Rs. 83,21,010/-) in respect of Fixed Asset is included in Other Expenses.

5. Fuel Cost is net of Fuel Income of Rs.30,538,586/- (P.Y. Rs. .21,596,636/-).

6. Employee Cost is net of Labour reimbursement of Rs.38,289,346/- (P.Y. Rs. 13,452,006/-).

7. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in Balance sheet. Adequate provisions have been made for all known liabilities except stated otherwise.

8. Balances of some of the Debtors, Creditors, Loans and Advances etc. are subject to confirmation and reconciliation.

9. The Company has entered into certain operating lease agreements and an amount of Rs.12,070,457/- (P.Y. Rs.3,898,817/-) paid under such agreements has been charged to the statement of Profit & Loss. These lease are generally not non cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

10. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (Previous Year Rs. Nil) is capitalized by the company net of TUFS interest subsidy Rs. Nil (Previous Year Rs. Nil).

11. During the year, the company has impaired the assets to the tune of Rs. Nil (Previous year Rs. Nil).

12. Interest and Finance Charges are net of interest subsidy received/receivable under TUFS scheme amounting to Rs.98,279,275/- (Previous year Rs. 91,538,988/-).

13. The Company is considered to be engaged in Textile Industry with all activity revolving around this business and accordingly has only one reportable business segment. The company has identified geographical segment as its secondary business segment, the details are as follows:

14. The figures of the previous year have been regrouped and rearranged wherever considered necessary.


Mar 31, 2012

1. CORPORATE POLICY

Nandan Exim Ltd. is incorporated under the provisions of the Companies Act 1956. Company is one of the Leading Manufacturer of Denim.

The company has only One class of shares referred to as Equity shares having face value of Rs.10/-. Each Holder of One share is entitled to One vote per share.

During the year ended on 31st March 2012, the amount per share dividend recognised as distributions to Equity Share holders was Rs.1/- (31st March 2011: Rs.Nil)

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

The details of shareholders holding more than 5% shares as at 31/03/2012 and 31/03/2011 is set out below.

Security :

@ Term Loans under Consortium finance are secured by first charge on the entire Fixed Assets of the company both present and future, second charge on Book Debts, Stock and other Current Assets of the Company and also further guaranted by personal guarantee of some of the Directors.

@@ Vehicle Loans are secured by Hypothication of Vehicle.

Interest:

Term Loan carries an interest rate which shall be State Bank of India rate or the base rate of the respective rupee lender plus the spread,which ever is higher, payable on monthly basis.

Vehicle Loan carries an interest rate ranging between 10.38% to 12.96% p.a.

Security :

@ Working Capital loans under consortium finance are secured by first charge on Book Debts, Stocks and other Current Assets and second charge on all the Fixed Assets both present and future of the Company and also further guaranted by personal guarantee of some of the Directors.

@@ Buyers Credit arrangement are secured by first charge on the entire Fixed Assets of the company both present and future, second charge on Book Debts, Stock and other Current Assets of the Company and also further guaranted by personal guarantee of some of the Directors.

Terms of Repayment :

Buyers Credit arrangement are available for 180 days.

@ The Company has not received the required information from Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been made.

2. CONTINGENT LIABILITIES NOT PROVIDED FOR :

Sr. No. Particulars 2011-12 2010-11 Rs. Rs.

a) Income Tax demands disputed in appeal by the Company/ 6,619,706 7,300,937 Income Tax Authorities [Against which the Company has paid amount of Rs. Nil (Previous Year Nil)]

b) Excise Demand disputed in appeal by the company /Excise Department 514,545 2,599,778

c) Professional Tax 192,912 Nil

d) Estimated Amount of Contracts remain to be Executed on Capital Account. 195,348,153 175,575,569 Advance paid against such Contract is Rs.145,689,622 (Previous year Rs. 32,046,424) which is shown under the head advances.

e) Corporate guarantee in Favour of IDBI Bank Ltd. to secure Term 197,000,000 241,800,000 Loan Sanctioned to M/s Vraj Integrated Textile Parks Ltd.

f) Corporate guarantee in Favour of State Bank of Bikaner and Jaipur. to 163,000,000 Nil secure Term Loan Sanctioned to M/s Vraj Integrated Textile Parks Ltd.

g) Bank Guarantee 18,030,684 Nil

h) A letter has been received by the company from service tax Department Amount not Amount not seeking Clarification on selling Commission. Quantifiable Quantifiable

3. The Company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme". The company has pending export obligation to the extent of Rs.122,474,103/- (Previous year Rs. 296,693,970/-) to be fulfilled during the specified period. The liability towards custom duty payable thereon in respect of unfulfilled export obligation as on 31st March, 2012 is Rs.15,309,263/- (Previous Year Rs. 37,086,746/-).

4. In accordance with Companies (Accounting Standards) Amendment Rules,2009 the company has exercised the option of adjusting exchange difference arising on reporting of long term foreign currency monetary item related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets.

Exchange difference relating to long-term monetary item, in so far related to acquisition of depreciable capital asset, adjusted to the Fixed Assets and amount of Rs. Nil (P.Y.Rs. 1,331,247/-) arising during the current year are adjusted to the cost of the fixed assets and depreciated over the balance life of the fixed assets.

5. Net Foreign Exchange gain of Rs.405,867/- (Previous Year gain of Rs. 12,127,559/-) in respect of Exports included in Other Expenses.Net Foreign exchange Loss amounting to Rs.8,749,821/- (Previous Year Loss of Rs. 560,370/-) in respect of various other items is included in Other Expenses. Net Foreign exchange Loss amounting to Rs.83,21,010/- (Previous Year Loss of Rs. 3,826,395/-) in respect of Fixed Asset is included in Other Expenses.

6. Fuel Cost is net of Fuel Income of Rs.21,596,636/- (P.Y. Rs. 6,617,370/-).

7. Employee Cost is net of Labour reimbursement of Rs.13,452,006/- (P.Y. Rs. 5,255,278/-).

8. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in Balance sheet. Adequate provisions have been made for all known liabilities except stated otherwise.

9. Balances of some of the Debtors, Creditors, Loans and Advances etc. are subject to confirmation and reconciliation.

10. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (Previous Year Rs. 33,396,772) is capitalized by the company net of TUFS interest subsidy Rs. Nil (Previous Year Rs. 21,165,499).

11. During the year, the company has impaired the assets to the tune of Rs. Nil (Previous year Rs. Nil).

12. Interest and Finance Charges are net of interest subsidy received/receivable under TUFS scheme amounting to Rs.91,538,988/ - (Previous year Rs. 98,939,261/-) and Subvention received/receivable on Export Packing Credit amounting to Rs.Nil (Previous Year Rs. 3,298,464/-).

13. The Company is considered to be engaged in Textile Industry with all activity revolving around this business and accordingly has only one reportable business segment. The company has identified geographical segment as its secondary business segment, the details are as follows:

14. Previous year's figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year. Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to the company. The Company has reclassified previous year figures to conform to this classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statement. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet.


Mar 31, 2011

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

Sr Particulars 2010-2011 2009-2010 No Rs. (in Lacs) Rs. (in Lacs)

a) Income Tax demands disputed in appeal by the Company/ Income Tax Authorities 73.01 25.52 [Against which the Company has paid amount of Rs. Nil (Previous Year Nil)]

b) Excise Demand disputed in appeal by the company /Excise Department 26.00 26.00

c) ESI demands disputed in appeal by the Company [Against which the Company has Nil 18.33 paid amount of Rs.Nil (Previous Year Rs.7.82 Lacs)] which is shown under the head advances.

d) Estimated Amount of Contracts remain to be Executed on Capital Account. 1755.76 490.69 Advance paid against such Contract is Rs.320.46 Lacs (Previous year Rs. 236.60 Lacs) which is shown under the head advances.

e) Corporate guarantee in Favour of IDBI Bank Ltd. to secure Term Loan 2418.00 Nil Sanctioned to M/s Vraj Integrated Textile Park Ltd.

f) A letter has been received by the company from service tax Department seeking Amount not Amount not Clarification on selling Commission. Quantifiable Quantifiable

2. The company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme". The company has pending export obligation to the extent of Rs.2966.94 Lacs (P.Y. Rs. 3826.71 Lacs) to be fulfilled during the specified period. The liability towards custom duty payable thereon in respect of unfulfilled export obligation as on 31st March, 2011 is Rs.370.87 Lacs (P.Y. Rs. 481.14 Lacs).

3. Secured loans where repayments are stipulated include Rs.2967.82 Lacs (P.Y. Rs. 2114.24 Lacs) repayable within a period of one year.

4. Unsecured loans where repayments are stipulated include Rs. Nil (P.Y. Rs.757.89) repayable within a period of one year.

5. In accordance with Companies (Accounting Standards) Amendment Rules, 2009 the company has exercised the option of adjusting exchange difference arising on reporting of long term foreign currency monetary item related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets.

Exchange difference relating to long-term monetary item, in so far related to acquisition of depreciable capital asset, adjusted to the Fixed Assets and amount of Rs.13.31 Lacs (P.Y.Rs. 425.38 Lacs) arising during the current year are adjusted to the cost of the fixed assets and depreciated over the balance life of the fixed assets.

6. Net Foreign Exchange gain of Rs.12,127,559/- (P.Y. Loss of Rs. 17,215,185/-) in respect of Exports included in Manufacturing and Operating Expense. Net Foreign exchange Loss amounting to Rs.560,370/- (P.Y. Gain of Rs. 3,986,445/-) in respect of various other items is included in Manufacturing and Operating Expense. Net Foreign exchange Loss amounting to Rs.3,826,395/- (P.Y. Rs. Nil) in respect of Fixed Asset is included in Manufacturing and Operating Expense.

7. Fuel Cost is net of Fuel Income of Rs.6,617,370/- (P.Y. Rs.Nil).

8. Employee Cost is net of Labour reimbursement of Rs.5,255,278/- (P.Y. Rs.Nil).

9. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in Balance sheet. Adequate provisions have been made for all known liabilities except stated otherwise.

10. Balances of some of the Debtors, Creditors, Loans and Advances etc. are subject to confirmation and reconciliation.

11. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. 33,396,772/- (P.Y. Rs. 31,630,142) is capitalized by the company net of TUFS interest subsidy Rs. 21,165,499/- (P.Y. Rs. 10,697,477).

12. During the year, the company has impaired the assets to the tune of Rs. Nil (P.Y. Rs. Nil).

13. Interest and Finance Charges are net of interest subsidy received/receivable under TUFS scheme amounting to Rs.98,939,261/- (P.Y. Rs. 82,022,596/-) and Subvention received/receivable on Export Packing Credit amounting to Rs.3,298,464/- (P.Y. Rs. 3,835,084/-).

14. (a) To the extent of available information, at the year end:

Adishwar Electricals, Amit Enterprise, Ashutosh Power Transbelts Ltd., Aakar Trading Co., Devam Enterprise, Darshil Enterprise, Daga Finmark India Limited, Gemini Poly-Plast Industries, Gaurav Trans Engineers Private Ltd., Ghanshyam Tools, Jas Associates, Jasmina Dye-Chem, Jayant Pipe Syndicate, Kusters Calico Machinary Ltd., Krishna Enterprise, Kailas Industries, Ruchi World Wide Ltd., Mahalaxmi Dye Chem, Mangal Singh Bros.Pvt. Ltd., Naman Electricals, Orient Enterprise, P.K. & Sons Trade Link (P) Ltd., P.K.& Sons, Swati Switchgear (I) Pvt Ltd., Welltronix, Asian Electronics Ltd., Ahmedabad Textile Industries Research, Kailash Industries, Patel Engineers, Dharmshil Agencies, The Forum Engineers, Tulip IT Services Ltd., Shree Arbuda Chemical Industries, M.N. Industries, Active Engineering Co., Blue Star Engineering, Shree Mahakali Gas Welding Works, Devikrupa Welding Works, Shanghai Cando m/c & Equipment Co., Jaytex Corporation, K.B.Corporation, New Aarkay Industries, Dharmshil Agencies, Atlas Copco (India) Ltd., Shree Sai Engineers, G.G.electricals, Umiya Enterprise, Chirag Electricals, Monshed Tarpaulins, Bhaskar Industries Ltd, Tulip IT Services Ltd., Dynamic Innovations Pvt. Ltd., Neelam Fibres, Pooja Textiles.

(b) No interest was paid/payable to micro or small enterprise during the year.

(c) The above information has been determined to the extent such parties could be identified on the basis of the information available regarding the status of supplier under the MSME.

Note: List of transaction, out of the transactions reported in the above table, where the transactions entered in to with single party exceed the 10% of the total related Party transactions of similar nature are as under:

15. The Company is considered to be engaged in Textile Industry with all activity revolving around this business and accordingly has only one reportable business segment. The company has identified geographical segment as its secondary business segment.


Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR :

2009-2010 2008-2009

Rs. (in Lacs) Rs. (in Lacs)

a) Income Tax demands disputed in appeal by the Company/ Income Tax Authorities 25.52 12.37 [Against which the Company has paid amount of Rs. Nil (Previous Year Nil)]

b) Excise Demand disputed in appeal by the company /Excise Department 26.00 0.24

c) ESI demands disputed in appeal by the Company [Against which the Company 18.33 Nil has paid amount of Rs.7.82 Lacs (Previous Year Nil)] which is shown under the head advances.

d) Estimated Amount of Contracts remain to be Executed on Capital Account. Advance paid against such Contract is Rs.236.60 Lacs (Previous year Rs.815.18 Lacs) which is shown under the head advances. 490.69 1947.25

e) Show cause notice for Excise Duty received against which reply has been made Nil 252.97

f) Nil Shares(Previous Year 1032000 Shares) of Nova Pertochemicals Ltd. Pledged with

State Bank of India in respect of Loan taken by Nova Pertochemicals Ltd. Nil 134.16

(at Market Value).

g) A letter has been received by the company from service tax Department seeking Amount not Amount not Clarification on selling Commission. Quantifiable Quanti fiable

2. The company has imported certain capital equipments at concessional rate of custom duty under "Export Promotion of Capital Goods Scheme". The company has pending export obligation to the extent of Rs.3826.71 Lacs (Previous year Rs. 9769.88 Lacs) to be fulfilled during the specified period. The liability towards custom duty payable thereon in respect of unfulfilled export obligation as on 31st March, 2010 is Rs.481.14 Lacs (Previous Year Rs.1,221.24 Lacs)

3. In accordance with Companies (Accounting Standards) Amendment Rules, 2009 the company has exercised the option of adjusting exchange difference arising on reporting of long term foreign currency monetary item related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets.

Exchange difference relating to long-term monetary item, in so far related to acquisition of depreciable capital asset, adjusted to the Fixed Assets and amount of Rs.425.38 Lacs (P.Y.Rs.1239.67 Lacs) arising during the current year are adjusted to the cost of the fixed assets and depreciated over the balance life of the fixed assets.

4. Net Foreign Exchange Loss of Rs.17,215,185/- (Previous Year Loss of Rs. 25,146,926/-) in respect of Exports included in Manufacturing and Operating Expense.Net Foreign exchange Gain amounting to Rs.3,986,445/- (Previous Year loss of Rs. 2,744,051/-) in respect of various other items is included in Manufacturing and Operating Expense.

5. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in Balance sheet. Adequate provisions have been made for all known liabilities except stated otherwise.

6. Balances of some of the Debtors, Creditors, Loans and Advances etc. are subject to confirmation and reconciliation.

7. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs.31,630,142/- (Previous Year Rs.-Nil) is capitalized by the company net of TUFS interest subsidy Rs.10,697,477/- (Previous Year Rs.-Nil).

8. During the year, the company has impaired the assets to the tune of Rs.-Nil (Previous year Rs.-Nil).

9. Maximum amount of debit balance at any time during the period in current account with Naroda Nagrik Sahakari bank Ltd, a non scheduled bank is Rs.-Nil. (Previous Year Rs.3,650/-).

10. Interest and Finance Charges are net of interest subsidy received/receivable under TUFS scheme amounting to Rs.82,022,596/- (Previous year Rs.77,369,161/-) and Subvention received/receivable on Export Packing Credit amounting to Rs.3,835,084/- (Previous Year Rs.658,385/-).

11. (a) To the extent of available information, at the year end the list of MSME Units to whom the amount outstanding due for more than 30 days is as follows:

Aakar Trading Co., Active Engineering Co., Ahmedabad Textile Industries Research,Allwin Industries, Appearel & Leather Technics Pvt. Ltd., Archana Engineering Works, Asian Electronics Ltd., Atlas Copco(India) Ltd., Bhaskar Industries Ltd.,Blue Star Engineering, Chamunda Fabrication, China National Automotive Industries, Chirag Electricals, Daga Finmark India Limited, Devikrupa Welding Works, Dharmashil Agencies, Dynamic Innovations Pvt Ltd., G.G.Electronicals, Gemini Ploy Plast Industries, Ginni Filaments Limited, HCL Info Systems Ltd., Ingersoll Rand India Limited, Jai Speciality Starch, Jaytex Corporation, K.B.Corporation, Kailas Industries, Kusters Calico Machinary Ltd., M.N. Industries, Mahavir Reed Repairing Works,Maloo Building Materials Pvt.Ltd, Monshed Tarpaulins, Nahar Industrial Enterprises Ltd., Nahar International ltd., Neelam Fibers, New Aarkay Industries, Nilkamal Crates& Bins Pvt. Ltd., Patel Engineers, Shanghai Cando M/C & Equipment Co., Shree Sai Engineers, Swati Sweach Gears (I) Pvt.Ltd., Umiya Enterprise, Welltronix

(b) No interest was paid/payable to micro or small enterprise during the year.

(c) The above information has been determined to the extent such parties could be identified on the basis of the information available regarding the status of supplier under the MSME.

12. Related Party Disclosures:

A) Key Management Personnel:

Sl. No. Name Designation

1 Shri Vedprakash D. Chiripal Chairman

2 Shri Brijmohan D. Chiripal Managing Director

3 Shri Deepak J. Chiripal CEO

B) List of Relatives with whom transactions have taken place during the period:

Sl. No. Name

1 Ms. Vanita V. Agrawal

C) List of Other Related Parties with whom transactions have taken place during the period:

Sl. No. Name

1 Nova Petrochemicals Limited

2 Shanti Exports Pvt. Ltd.

3 Chiripal Industries Ltd.

4 Chiripal Enterprise Pvt. Ltd

5 Hexa International Ltd

6 Quality Exim Pvt. Ltd.

7 Chiripal Charitable Trust

8 Chiripal Life Style Ltd.

9 Vishal Fabrics Pvt Ltd.

10 Nandan Chiripal Energy Corporation LLP

13. The figures of the previous year have been regrouped and rearranged wherever considered necessary.

 
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