Home  »  Company  »  Orbit Exports Li  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Orbit Exports Ltd.

Mar 31, 2015

1. Contingent Liabilities and commitments not provided for :

The Company has outstanding commitment including Letters of Credits for imported plant & machineries towards capital goods and aggregate amount is as under:-

Sr. Nature of Commitment Amount (Rs. in lakhs) No 2014-15 2013-14

1. Commitments on Capital Account NIL —

2. Service Tax Liability on purchase of Unit 63.04 63.04 in Asmeeta Textile Park, Bhiwandi

The Company has purchased a unit in Asmeeta Textile Park, Bhiwandi vide Lease Deed dated 21st August, 2013. The Amount of additional Service Tax amounting to Rs. 63,04,410/- (Rupees sixty three lakhs four thousands four hundred ten only) was demanded by the Developers M/s. Asmeeta Infratech Ltd. on account of differential amount of Service Tax on the Unit No. B-12, Asmeeta Textile Park, Bhiwandi. The matter is sub-judice at this moment. The Company has been advised that there will not be any liability towards Service tax over and above the amount already paid by the Company.

2. Related Party Disclosures:-

The list of related parties and nature of their relationship is furnished below :-

Related parties with whom transactions have taken place during the year :-

* Key Management Personnel and Relatives :-

Sr. Name Relationship No.

1. Mr. Pankaj S. Seth Chairman & Managing Director

2. Ms. Anisha P. Seth Whole-time Director

3. Ms. Vishakha P. Seth Daughter of Mrs. Anisha P. Seth & Mr. Pankaj S. Seth

4. Ms. Sangeeta Bhatia Sister of CMD Mr. Pankaj Seth

5. Mr. Shyam Sunder Seth Father of CMD Mr. Pankaj S. Seth

6. Mr. Bruce Larry Kieval Executive Director

Enterprise over which Key Management Personnel exercise significant influence :-

M/s. Golden Bo Tree Impex Co. Ltd. - Director Mr. Bruce Larry Kieval is also a director of this Company.

Orbit Inc., USA - Wholly Owned Subsidiary.

Rainbow Line Trading LLC, Dubai - Associate Firm

3. Balances of Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation, if any.

4. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days (P.Y. Nil), the above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

5. The Board of Directors have declared interim dividend @ 22.50% during the year amounting to Rs. 321.73 lakhs (Rs. 2.25 per share of face value of Rs. 10/- each i.e. 22.50%) excluding Dividend Distribution Tax of Rs. 65.87 lakhs. The Board of Directors have also proposed to declare the Final dividend @ 22.5% for the year amounting to Rs. 321.73 lakhs (Rs. 2.25 per share of face value of Rs. 10/- each i.e. 22.5%) excluding Dividend Distribution Tax of Rs. 65.87 lakhs.

6. Previous year's figures have been regrouped and/or re-casted wherever necessary. Figure in brackets represent corresponding figure for the previous year.

7. The Company has created Capital Reserve in current year amounting to Rs. 118.93 lakhs during the year. The balance in Capital Reserve is Rs. 751.82 lakhs (2014 Rs. 632.89 lakhs). Current year Capital Reserve has been created out of the Government Grants in the nature of promoters' fund for setting up new textile unit at Surat in the state of Gujarat.

8. The Company has allotted 10,00,000 Convertible Warrants to Promoters Directors at Rs. 76.57 per warrant to be converted into one equity share of Rs. 10/- each at the Premium of Rs. 66.57 per share in the year 2013-14. The allottees have exercised their option and converted the balance 4,50,000 Convertible Warrants into 4,50,000 equity shares of Rs. 10/- each. The conversion of Warrants has increased the Equity Share Capital by Rs. 45.00 lakhs and Share Premium by Rs. 299.57 lakhs during the year.

9. Employees Stock Option Scheme

Your Company has instituted Stock Option Plans to enable its employees to participate in your Company's future growth and financial success. Your Company provides its employees a platform for participating in important decision making and instilling long term commitment towards future growth of the Company by way of rewarding them through Stock Options. The Stock Option Schemes also enable the Company to hire the best talent for its senior management and key positions.

The Company has reserved issuance of 1,47,000 (Previous year 52,000) Equity Shares of Rs. 10/- each for offering to Eligible Employees of the Company under Employees Stock Option Scheme (ESOS). During the year the Company has granted 95,000 options at a price Rs. 342/- per option, plus all applicable taxes, as may be levied in this regard on the Company (Previous year 52,000 at a price of Rs. 69.75 per option plus all applicable taxes, as may be levied in this regard on the Company) to the Eligible Employees. The options would vest over a maximum period of 4 years or such other period as may be decided by the Nomination and Remuneration Committee from the date of grant based on specified criteria.

10. The Sundry Debtors includes an amount of Rs. 467.18 lakhs (2014 Rs. 504.06 lakhs) due from its Wholly Owned Subsidiary Orbit Inc., USA and Rs. 1,095.68 lakhs (2014 Rs. 917.74 lakhs) due from its Associate Concern M/s. Rainbow Line Trading LLC, Dubai.

11. Employee Benefits

As per Accounting Standard -15 "Employee Benefits" the disclosure of employee benefits is given below:

i. Defined contribution plans :-

The amounts of contribution to provident fund and ESIC recognized as expenses during the year is Rs. 39.51 lakhs (2014 Rs. 13.37 lakhs) for the year ended 31st March, 2015.

12. SHARE CAPITAL

a) Terms/ Rights attached to Equity hares

The Company has issued only one class of equity shares having par value of Rs. 10/- each. Each Equity shareholder is entiled to one vote per share.

13. Additional disclosure

Terms of Warrants:

A. 8 lacs Optionally Fully Convertible Warrants were issued to Mr. Pankaj Seth and Mrs. Anisha P. Seth on 1st Nov, 2010 at a price of Rs. 38/- each out of which 25% amount received at the time of allotment. Each warrant to be converted into 1 equity share of Rs. 10/- each within a period of 18 months from the date of allotment i.e. on or before 30th April, 2012. All the warrants were converted into Equity Shares of Rs. 10/- each on 31st March, 2011 - 224560 shares, on 22nd March, 2012 - 350000 shares and balance 225440 shares on 27th April, 2012 respectively. Out of the above 2,25,440 shares are under lockin for 3 years till 26th April, 2015.

14. Long-term Borrowings

1) Term Loan No. 1 to 3 from State Bank of India are secured by 1st mortgage on the fixed assets of the Company located Plot No. 6, 7, 8 & 9, Faideal Textile Park, Village Mahuvej, Taluka Mangrol, Distt. Surat - 394 102 both present and future and hypothecation on all the movable assets of the Company installed at the above said unit.

2) The above financial assistance from State Bank of India are additionally secured by 1st mortgage on the Company’s fixed assets located at MIDC, Dombivali. The above said financial assistance are additionally secured by hypothecation of the Wind Turbine Generation unit located in Rawat ka Gaon, Tah. Shiv, Distt. Barmer in the state of Rajasthan.

3) The above Term Loans are additionally secured by way of lien on Fixed Deposits aggregating to Rs. 168.00 lakhs standing in the name of the Company.

4) All the above loans are personally guaranteed by both the Promoter Directors of the Company.

5) Term Loan from HDFC Bank Ltd. is secured by way of 1st and exclusive charge on the Plant & Machinery purchased under the scheme. The Loan is additionally secured by way of equitable mortgage of Factory building located at B-12, Asmeeta Textile Park, ITP, MIDC, Plot No. 1, in Additional Kalyan Bhiwandi Industrial Area, Village Kon, Taluka Bhiwadi, Distt. Thane (Mah.)

6) The Term Loan from HDFC Bank is personally guaranteed by the Promoter Director of the Company Shri Pankaj Seth.

7) Terms of Repayment of Term Loan No. 1-SBI : Loan shall be repaid in 66 monthly instalment of Rs. 24 lakhs commencing from 1st April, 2011 and one instalment shall be of Rs. 26 lakhs.

8) Terms of Repayment of Term Loan No. 2-SBI : Loan shall be repaid in 39 monthly instalment of Rs. 20 lakhs each commencing from 1st January, 2014, 12 monthly instalments of Rs. 21 lakhs each commencing from 1st April, 2017 and 9 monthly installment of Rs. 21.44 Lakhs each commencing from 1st April, 2018.

9) Terms of Repayment of Term Loan No. 3-SBI : Loan shall be repaid in 60 monthly instlments out of which 36 monthly instalments of Rs. 15 lakhs each commencing from 1st August, 2014, 23 monthly instalments of Rs. 16 lakhs each commencing from 1st August, 2017 and last installment shall be of Rs. 17 lakhs to be paid on 1st July, 2019.

10) Terms of Repayment of Term Loan from HDFC Bank Ltd. :- Loan shall be repaid in 60 months commencing from 7th October, 2014 and last instalment shall be paid on 7th Septemebr, 2019.

15. Additional disclosures : Short-Term Borrowings

1) Working Capital limits from Banks are secured by hypothecation on all the currents assets both present & future of the Company.

2) The financial assistance from State Bank of India is additioanlly secured by 1st mortgage on the Company’s fixed assets located at MIDC, Dombivali and Surat. The Financial Assistance from State Bank of India are further secured by hypothecation of the Wind Turbine unit located in Rawat ka Gaon, Tah. Shiv, Distt. Barmer in the state of Rajasthan.

3) The loans from State Bank of India are additinally secured by way of pledge of Fixed Deposits aggregating to Rs. 168.00 lakhs standing in the name of the company.

4) The loans from DBS Bank are additionally secured by way of lien on Fixed Deposits aggregating to Rs. 300.00 lakhs standing in the name of the company.

5) Working Capital Limits from State Bank of India and DBS Bank is personally guaranteed by both the Promoter Directors of the Company.

6) Working Capital Limits from HDFC Bank Ltd. is additionally secured by way of equitable mortgage of Factory building located at B-12, Asmeeta Textile Park, ITP, MIDC, Plot No. 1, in Additional Kalyan Bhiwandi Industrial Area, Village Kon, Taluka Bhiwadi, Distt. Thane (Mah.)

7) Working Capital Limits from HDFC Bank Ltd. is personally guaranteed by Shri Pankaj Seth the Promoter Director of the Company.

16. Additional disclosure

1) Investment in Govt or Trust securities includes investments in NSC amounting to Rs. 0.61 lakhs was made for obtaining Registration in the state of Gujarat & Rajasthan. Further an amount of Rs. 35.00 lakhs was invested in Capital Gain Bonds of Rural Elecrtification Corporation Ltd.

2) Investment in Equity inst. includes investment made in Kurla Nagrik Sahakari Bank Ltd. Rs. 1,00,000/

3) The Company has invested in Shares of Rs. 56.19 lakhs in its Associates Company Rainbow Line Trading LLC, Dubai.

4) The Company has invested in Shares of Rs. 369.27 lakhs in its Wholly Owned Subsidiary “Orbit Inc.” USA






Mar 31, 2013

Notes :

a) 1. During the year, the Company has issued and allotted 2,25,440 equity shares of Rs.10/- each

on account of conversion of OFCW’s at a premium of Rs.28/- per share to Mr. Pankaj Seth and Ms. Anisha P. Seth on preferential issue basis. The issue proceeds aggregating to Rs.64.25 lakhs have been utilised for the object for which it has been been issued.

2. During the year, the Company has issued and allotted 4,00,000 equity shares of Rs.10/- each on account of conversion of OFCW’s at a premium of Rs.69.30 per share to M/s. Shreyans Credit & Capital Pvt. Ltd. on preferential basis. The issue proceeds aggregating to Rs.237.90 lacs have been utilized for the object for which it has been issued.

3. During the year, the Company has issued and allotted 44,33,050 equity shares of Rs.10/- each as bonus shares in the ratio of 1 Equity Share for every 2 equity shares held.

b) Terms/ Rights attached to Equity Shares

The Company has issued only one class of equity shares having par value of Rs. 10/- each. Each Equity shareholder is entailed to one vote per share.

Additional disclosure

Terms of Warrants:

8 lacs Optionally Fully Convertible Warrants were issued to Mr. Pankaj Seth and Mrs. Anisha P. Seth on 1st Nov, 2010 at a price of Rs. 38/- each out of which 25% amount received at the time of allotment. Each warrant to be converted into 1 equity share of Rs. 10/- each within a period of 18 months from the date of allotment i.e. on or before 30th April, 2012. The details of conversion in the FY 2010-11 & 2011-12 & 2012-13 are as mentioned below :-

Additional disclosure Long-term Borrowings

1) Term Loan from State Bank of India are secured by 1st mortgage on the fxed assets of the Company located Plot No. 6,7,8 & 9, Faideal Textile Park, Village Mahuvej, Taluka Mangrol, Distt. Surat - 394 102 both present and future and hypothecation on all the movable assets of the Company installed at the above said unit.

2) The above financial assistance from State Bank of India are additionally secured by 1st mortgage on the Company’s fxed assets located at MIDC, Dombivali, and MIDC, Jalgaon. The above said financial assistance are additionally secured by hypothecation of the Wind Turbine Generation unit located in Rawat ka Gaon, Tah. Shiv, Distt. Barmer in the state of Rajasthan.

3) The above loans are additinally secured by way of pledge of Fixed Deposits aggregating to Rs. 168 lacs standing in the name of the company.

4) All the above loans are personally guaranteed by the Promoter Directors of the Company.

5) Terms for Repayment of Term Loan-1 : Loan shall be repaid in 66 monthly instalment of Rs. 24 lacs commencing from 1st April, 2011 and one instalment shall be of Rs. 26 lacs.

6) Terms for Repayment of Term Loan-2 : Loan shall be repaid in 39 monthly installment of Rs. 20 lacs each commencing from 1st January, 2014, and 21 monthly installments of Rs. 21 lacs each commencing from 1st April, 2017.

Additional disclosure Short-term Borrowings

1) Working Capital limits from State Bank of India and Development Bank of Singapore are secured by hypothecation on all the currents assets both present & future of the Company.

2) The financial assistance from State Bank of India is additionally secured by 1st mortgage on the Company’s fixed assets located at MIDC, Dombivali, and MIDC, Jargon. The Financial Assistance from State Bank of India are further secured by hypothecation of the Wind Turbine unit located in Rawat ka Gaon, Tah. Shiv, Distt. Barmer in the state of Rajasthan.

3) The loans from State Bank of India are additionally secured by way of pledge of Fixed Deposits aggregating to Rs. 168 lacs standing in the name of the company.

4) The Financial Assistance from Development Bank of Singapore (DBS) is additionally secured by way of Equitable Mortgage over the immovable property located at Office No. 11, Mehta Chambers, Kalyan Street, Mumbai - 400 009.

5) All the above loans are personally guaranteed by the Promoter Directors of the Company.

Additional disclosure

1) Investment in Govt or trust securities include NSC made for Gujrat and Rajasthan Sales Tax registration.

2) Investment in Equity inst. includes investment made to Kurla Nagrik Sahakari Bank Ltd. Rs. 1,00,000/- 3) The Company has invested an amount of Rs. 49.20 lacs in Rainbow Line Trading LLC,Dubai.

NOTE 1

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days (P.Y. Nil), the above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identifed on the basis of information available with the Company. This has been relied upon by the auditors.

NOTE 2

The Board of Directors have declared interim dividend @ 15% during the year amounting to Rs. 199.48 lacs (Rs. 1.50 per share of face value of Rs. 10/- each i.e.15%) excluding Dividend Distribution Tax of Rs. 32.36 lacs.

NOTE 3

Previous years fgures have been regrouped and/or re-casted wherever necessary. Figure in brackets represent corresponding fgure for the previous year.

NOTE 4

The Company has created Capital Reserve amounting to Rs.4.54 lacs during the year. The balance in Capital Reserve is Rs. 369.14 lacs (2012 Rs. 364.60 lakh). Current year Capital Reserve has been created out of the Government Grant in the nature of promoters’ fund for setting up new textile unit at Surat.

NOTE 5 - EMPLOYEE BENEFITS

As per Accounting Standard -15 "Employee Benefts" the disclosure of employee benefts is given below:

i. Defned contribution plans:

The amounts of contribution to provident fund and ESIC recognized as expenses during the year is Rs. 12.46 lacs (Previous Year Rs. 10.28 lacs the year ended 31st March, 2013.


Mar 31, 2010

1. Contingent Liabilities and commitments not provided for :-

Sr. No.Name of the Statute Nature of dues Forum where dispute is pending Amount (Rs. in lakhs) 1. Income Tax Act, 1961 Income Tax The CIT Appeal, Mumbai 5.11 (A.Y.I 995-96)

2. Income Tax Act, 1961 Income Tax The CIT Appeal, Mumbai 24.33 (A,Y, 1996-97)

3. Later of credit (Capex LC) 551.26

2. Balances of Sundry Debtors, Creditors, Unsecured Loans, Loans & Advances are subject to confirmation and reconciliation, if any.

3. Stocks are valued as certified by Management.

4. Except otherwise mentioned herein in the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. a) The computation of Net Profit for the purpose of calculation of directors remuneration under section 349 of the Companies Act, 1956 is not enumerated, since no commission has been paid to any director.

6. Related Party Transactions.

The list of related parties and nature of their relationship is furnished below:

Related parties with whom transactions have taken place during the year:

Directors of the Company

Managing Director Mr. Pankaj S. S eth

Whole-time Director Ms. Anisha P. Seth

Other Related Parties/Associates

- Mr. Shyam Sunder Seth

- Golden Bo Tree Impex Co. Ltd.

7. Remuneration to Directors Refer Item No. 5 (b) & (C)

8. Segment Information:

Textile business is the Companys only business segment, hence disclosure of segment- wise information is not applicable.

9. The Company does not have any subsidiary hence the provisions of Accounting Standard -21 are not applicable.

10. As per Accounting Standard 22 "Accounting of Taxes on Income", issued by ICAI which requires companies to provide for deferred tax Assets/ Liabilities as of Balance Sheet dates.

The Company has recognized the deferred tax Liabilities (net) as at 31st March, 2010 amounting to Rs. 50,48,397/- in accordance with Accounting Standard - 22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India (ICAI).

13. The Company has provided for Gratuity Liability as prescribed under "Accounting for Retirement Benefits of Employees" AS 15 issued by the ICAI based on the Actuarial valuation Report.

(a) During the year, the Company has made provision for gratuity payable to its eligible employees amounting to Rs. 8.79 lacs (Previous Year Rs. 2.28 lacs) based on Unit Credit method as per Actuarial Valuation and gratuity paid for the year of Rs. 5.41 lacs (Previous Year Rs. 1.30 lacs)

(b) The Company has consistently accounted for Leave encashment and Bonus on payment basis which is non compliance of Accounting Standard-15 Employee Benefits. Amount paid during the year Rs. 1.81 Lacs (Previous year Rs.0.48 Lacs) and Rs.8.45 Lacs (Previous year Rs.6.44 Lacs) respectively.

14. The amount outstanding payable to Small Scale Industries as at the end of year was Rs. Nil (P. Y. Nil). There were no outstanding amounts payable to SSIs for more than 12 months.

15. The Company believes that no impairment of assets arises during the year as per the recommendations of Accounting Standards-28, in respect of the fixed assets of the Company,

16. The Board of Directors have declared interim dividend @ 10% during the year amounting toRs. 73,91,100(Rs. 1 per share of face value of Rs. 10 each i.e. 10%).

17. The Company has installed one Wind Mill of 0.60 MW in the State of Rajasthan at Rawat- ka-Gaon, Distt. Badmer in the state of Rajasthan. The Unit has commenced operation from 24th December, 2009.

18. Previous years figures have been regrouped and recasted wherever necessary. Figure in brackets represent corresponding figure for the previous year.

19. Information required as per part IV of Schedule VI of the Companies Act, 1956.

 
Subscribe now to get personal finance updates in your inbox!