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Notes to Accounts of Pil Italica Lifestyle Ltd.

Mar 31, 2015

1. Corporate Information

PEACOCK INDUSTRIES LIMITED (The Company) is a public limited company domiciled India and incorporated under the provisions of Companies Act, 1956. The Company is engaged In the manufacturing of Plastic Molded furniture and other articles.

1.1 Basis of Preparation of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under section 133 of the Companies Act,2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act,2013. The financial statements have been prepared on accrual basis under the histoncal cost convention, The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. SHARE CAPITAl

Note no. 2.1 -35664300 Equity Shares ( Pr. Yr. -24414300) are held by Dawood Investments Private Limited the holding company.

Note No. 2.2- No Bonus Shares allotted during the period of five years immediately preceding the year.

Note No. 2.3- Other Disclosures - The Company has one class of equity shares having a par value @ Rs.4 per share held. Each equity share holder is entitled to dividends as and when declared by the company. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amount in proportion to their share holding.

3. DEPRECIATION

Consequent upon enactment of the Companies Act.2013 , being effective from April 1,2014, the company has reassessed the useful life of the fixed assets in accordance with provisions of Schedule II to the Companies Act.2013 In case of assets .which are having carrying value and remaining life nil as on 01.04.2014, Being Rs. 4,16 Lacs(Net of deferred tax ), have been recognized in the opening balance of retained earnings . In case of other assets which have useful life as on 01.04.2014 and having carrying value after adjusting salvage value , the same has been depreciated over the remaining useful life. Due to this current year depreciation is lower by Rs. 0.87 Lacs.

4. SEGMENTAL REPORTING -

In view of Accounting Standard 17 segmental reporting issued by the Institute of Chartered Accountants of India , the operation of the company is considered as Single segment hence segment report is considered not applicable.

5. As required by Accounting Standard No.-22 "Accounting for Taxes on Income" issued Institute of Chartered Accountants Of India, The Company has not recognised deferred tax as the company has heavy unabsorbed depreciation and carry forward of losses under tax law and here is no convincing evidence that sufficient future taxable income will be available against which such deferred tax can be realised

6. CONTINGENT LIABILITIES:- (Rs. in lakhs)

As at 31st As at 31 st March,2015 March,2014

(a) Guarantee issued by the banks 49.75 49.75 in respect of import of Capital Goods under EPCG

(b) Excise Duty (Net of predeposit) 98.22 98.22

(c) Penalty imposed by the 200.00 200.00 Enforcement Directorate

(d) Stressed Assets Stabilisation Fund 3130.53 3130.53

7. The balances of sundry debtors, sundry creditors, secured loans, unsecured loans, loans and advances are subject to confirmation and reconciliation.

8. The Stressed Assets Stabilisation Fund assignee of Industrial Development Bank Of India under the negotiated settlement in respect of its dues agreed to accept the payment of Rs.640.00 lacs and Interest thereon over a period of 8 years. In case of any default in repayment, the original amount of dues i.e. Rs. 3770.53 lacs will restore. In view of this the difference between the original amount and settled amount i.e Rs 3130.53 lacs has been shown as contingent liability.

9. The company was declared a Sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 21.12.1998 under the provisions of the Sick Industrial companies (Special Provisions) Act,1985. The BIFR has sanctioned revival scheme .prepared by the operating agency viz IDBI, vide its order dated 15.07.2013, presently revival scheme is under implementation.

10. As per revival scheme sanctioned by Board for Industrial and financial Reconstruction a sum of Rs. 213.37 Lacs included under the head Exceptional Items in the Profit and Loss Account.

11. The figures for the previous year have been regrouped/re-arranged to the extent necessary.




Mar 31, 2013

Note no.1.1 Share Application Money- The Company has submitted draft revival scheme to Borad For Industrial and Financial Reconstruction (BIFR) and Industrial Development Bank of India, Operating Agency (IDBI). The proposed scheme interlia includes induction of share capital to the extent Rs. 930.00 lacs. The promoters has brought in Rs.914.70 (Pr. Yr.707.00 Lacs). The Company will allot equity shares after sanction of scheme from BIFR. In the event of non sanction of scheme amount is refundable.

Note no.2 .

As required by Accounting Standrad No.-22 "Accounting for Taxes on Income" issued Institute of Chartered Accountants of India, The Company has not recognised deferred tax as the company has heavy unabsorbed depreciation and carry forward of losses under tax law and there is no convincing evidence that sufficient future taxable income will be available against which such deferred tax can be realised.

Note No. 3 CONTINGENT. LIABILITIES:-

(Rs. in lakhs)

As at 31st As at 31 st March,2013 March,2012

(a) Guarantee issued by the banks 49.75 49.75 in respect of import of

Capital Goods under EPCG

(b) Excise Duty (Net of predeposit) 103.22 108.22

(c) Penalty imposed by the 200.00 200.00 Enforcement Directorate

(d) Stressed Assets 3,130.53 3,130.53 Stabilisation Fund

Note No. 4

The balances of sundry debtors, sundry creditors, secured loans, unsecured loans.loans and advances are subject to confirmation and reconciliation.

Note No.5

The Company has not provided interest in the case of inter corporate deposits, loans .bills Payable of Rs. 185.63 lakhs (Pr.Yr.Rs. 238.72 lakhs) in the books of account since the same is under verification and require reconsideration consequently profit, reserves and liabilities for the current year are more/less as the case being by Rs. 185.63 lakhs (Pr.Yr.Rs.238.72Lakhs).

Note No. 6

The Stressed Assets Stabilisation Fund assignee of Industrial Development Bank Of India under the negotiated settlement in respect of its dues agreed to accept the payment of Rs.640.00 lacs and Interest thereon over a period of 8 years. In case of any default in repayment, the original amount of dues i.e .Rs 3770.53 lacs will restore. In view of this the difference between the original amount and settled amount i.e Rs 3130.53 lacs has been shown as contingent liability.

Note No.7

The company was declared a Sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 21.12.1998 under''the provisions of the Sick Industrial Companies (Special Provisions) Act,1985. The BIFR has circulated a draft revival scheme .prepared by the operating agency viz IDBI , for revival of the company to the concerning persons for their consent . . ''

Note No. 8

The lenders under the Negotiated settlement in respect of their dues, waived a sum of Rs.308.65 lakhs in respect of principal amont. The same have been included under the head Extra Ordinary Items in the Profit and Loss Account.

Note No.9

The figures for the previous year have been regrouped/re-arranged to the extent necessary.


Mar 31, 2012

Note 1.1 Maturity profile, rate of interest and security of term loan from others :- Term loan is from Stressed Assets Stabilisation Fund and rate of interest is 8 % The term loan is repayable in 24 qtrly instalment, 23 instalment of Rs.25.00 lac each and 24 th qtrly. Instalment is of Rs. 15.00 lacs. Last Instalment is payable on 01.04.2017. The Company has not defaulted in repayment. The term.loan is secured by way of equitable mortgage by deposit of title deeds of immovable property and also guaranteed by directors of company.

Note 1.2 Maturity profile and rate of interest of deferred sales tax liability -

The deferred sales tax liability is interest free and is repayable in 20 qtrly. instalment from 01.04.2013 to 31.03.2018.

The Company has not received any information from their suppliers regarding their status under the Micro,small and Medium enterprises Act.,2006.hence disclosures if any relating to amount unpaid at the year end together with interest payable as required under the said act could not be disclosed.The Management is of opinion that interest if any on such account will not be material.

Note no. 2 SEGMENTAL REPORTING -

In view of Accounting Standard 17 segmental reporting issued by the Institute of Chartered Accountants of India, the operation of the company is considered as Single segment hence segment report is considered not applicable.

Note No. 3 RELATED PARTY DISCLOSURE

As per Accounting standard 18, the disclosures of transactions with related Party are given below :-

(1) List of related parties with whom transactions have taken place and relation ship -

Note no. 4.

As required by Accounting Standard No.-22 "Accounting for Taxes on Income" issued Institute of Chartered Accountants Of India, The Company has not recognised deferred tax as the company has heavy unabsorbed depreciation and carry forward of losses under tax law and there is no convincing evidence that sufficient future taxable income will be available against which such deferred tax can be realised.

Note No. 5 CONTINGENT LIABILITIES :-

(Rs. in lakhs) As at 31st As at 31 st March,2012 March,2011

(a) Guarantee issued by the banks in respect of import of Capital 49.75 49.75 Goods under EPCG

(b) Excise Duty 108.22 108.22

(c) Penalty imposed by the Enforcement 200.00 200.00 Directorate

(d) Stressed Assets Stabilisation Fund 3130.53 3130.53

Note No. 6

The balances of sundry debtors, sundry creditors, secured loans, unsecured loans, loans and advances are subject to confirmation and reconciliation.

Note No.7

The Company has not provided interest in the case of inter corporate deposits, loans, bills Payable of Rs.238.72 lakhs (Pr.Yr. Rs. 238.72 lakhs) in the books of account since the same is under verification and require reconsideration consequently profit, reserves and liabilities for the current year are more/less as the case being by Rs.238.72 lakhs (Pr.Yr.Rs.238.72 Lakhs).

Note No. 8

The Stressed Assets Stabilisation Fund assignee of Industrial Development Bank Of India under the negotiated settlement in respect of its dues agreed to accept the payment of Rs.640.00 lacs and Interest thereon over a period of 8 years. In case of any default in repayment, the original amount of dues i.e. Rs. 3770.53 lacs will restore. In view of this the difference between the original amount and settled amount i.e Rs. 3130.53 lacs has been shown as contingent liability.


Mar 31, 2011

1. Contingent Liabilities Not Provided For :

(Rs. in lakhs)

As at 31st As at 31st March,-2011 March, 2010

(a) Guarantee issued by the banks 49.75 49.75 in respect of import of Capital Goods under EPCG

(b) Excise Duty 108.22 108.22

(c) Penalty imposed by the Enforcement 200.00 200.00 Directorate

(d) Stressed Assets Stabilisation Fund 3130.53 (Refer Note No.8)

2. Claims against the company on account of lease rentals, bills payable and unsecured loan of Rs.435.10 lakhs relating to the year 97-98 not acknowledged as debts.

3. The balances of sundry debtors, sundry creditors, secured loans, unsecured loans, loans and advances are subject to confirmation and reconciliation.

4. The Company has not provided interest in the case of inter corporate deposits, loans, bills Payable of Rs.238.72 lakhs (Pr.Yr. Rs. 238.72 lakhs) in the books of account, since the same is under verification and require reconsideration consequently profit, reserves and liabilities for the current year are more/less as the case being by Rs.238.72 lakhs (Pr.Yr. Rs.238.72 Lakhs).

5. The Secured lenders and their assignees under the Negotiated settlement in respect of their dues, waived a sum of Rs.5043.51 Lacs in respect of principal and sum of Rs.2453.63 Lacs in respect of interest (provided in the books), the same have been included under the head " Extra Ordinary Items"" in the Profit and Loss Account.

6. The amount of depreciation of the past years not provided amounting to Rs.4585.47 lakhs has been charged to profit and loss account and included under the head Extra Ordinary Item.

7. The Stressed Assets Stabilisation Fund assignee of Industrial Development Bank Of India under the negotiated settlement in respect of its dues agreed to accept the payment of Rs.640.00 lacs and interest thereon over a period of 8 years. In case of any default in repayment, the original amount of dues i.e. Rs 3770.53 lacs will restore. In view of this the difference between the original amount and settled amount i.e Rs 3130.53 lacs has been shown as contingent liability.

8. To settle and pay off the dues of the secured lenders, the Company borrowed a sum of Rs. 516.50 lakhs under security by way of first charge over the current assets of the Company such as stocks, receivables etc. This is also further secured by way of second charge over the entire immovable assets of the Company. It is repayable after one year from the date of execution of documents. The execution of documents, creation of security and registration of charges are yet to take place and will be completed in due course. In view of the above circumstances the amount of borrowings have been classified as "SECURED LOAN."

9. The Company was declared a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 21.12.1998 under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. The BIFR vide its order dated 22.02.2007 recommended winding up of the Company. The Company preferred an appeal against the order of BIFR to AAIFR and the AAFIR has stayed the operation of the order of the BIFR. The appeal is pending for adjudication. The management feels that the results of the appeal will be in the company"s favour. In view of the forgoing the accounts have been prepared on a going concern basis.

10. The Company has not received any informations from their suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 hence disclosures, if any relating to amounts unpaid at the year end together with interest payable as required under the said act could not be disclosed. The management is of opinion that interest, if any on such account will not be material.

11. The figures for the previous year have been regrouped/re-arranged to the extent necessary.

12. In view of the Accounting Standrad-17 Segmental Reporting issued by the Institute of Chartered Accountants of India, the operation of the company is considered as single segment" hence segment reporting is considered not applicable.

13. In view of the Accounting Standrad-18 issued by the Institute of Chartered Accountants of India, The nature of transactions held with related party are as follows :-

(I) list of related parties :-

Key Management Personnel

Mr. Narendra Bhanawat - Executive Director

Mr. Daud Ali - Managing Director

(II) Transaction with Related Parties

details of remuneration to Key Management Personnel (Executive Director) are disclosed at point no. 17

14. In view of the Accounting Standrad.-20 issued by the Institute of Chartered Accountants of India, The details of earning per share are as under :-

(I) Basic and diluted earnings per share is Rs. (0.65 ), Pr.yr. is Rs. (0.94) before Extra Ordinary items and after extra ordinary item is Rs.18.14 p.y. Rs.(0.94)

(II) The loss for the year has been used as the numerator and 1,55,00,000 numbers of Equity Shares (both for basic and diluted)being fully paid up has been considered as the denominator.

15. As required by Accounting Standrad No.- 22 "Accounting for Taxes on Income" issued by Institute of Chartered Accountants Of India, The Company has not recognised deferred tax as the company has heavy unabsorbed depreciation and carry forward of losses under tax law and there is no convincing evidence that sufficient future taxable income will be available against which such deferred tax can be realised.

 
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