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Notes to Accounts of Prakash Woollen & Synthetic Mills Ltd.

Mar 31, 2015

1. Gratuity benefit plan

The company operates defined benefits plan for gratuity for its employees. Under the plan every employee who has completed at least five years of service gets a gratuity on departure @ 15 days last drawn salary for each completed year of service. The Scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarises the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet.

EPFO Bareilly has demanded Rs, 26.69 lacs as PF dues. The management of the company has contested the demand of EPFO. An appeal with Hon'ble EPFAT New Delhi is pending. The company has not recognized provision for liabilities in the financial statement.

2. Balances of trade receivables, trade payables are subject to confirmation as on 31.3.15

3. The company has not received information from vendors regarding their status under the Micro. Small and Medium Enterprises Development Act 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

4. The company carries on the business of textiles under which blankets of different qualities and size are produced. Further the sale is made in domestic markets at the same terms and conditions. Therefore, no different business or geographical segments are recognizable and reportable.

5. Corporate information

Prakash Woollen Mills Ltd. Is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its shares aer listed on two stock exchanges in India namely BSE and DSE. The company is engaged in the manufacturing and selling of mink blankets.


Mar 31, 2014

1. Related party disclosures Related parties where control exists Prahlad Industries, Designs Unlimited, Shree Bankey Bihari Enterprises. Directors and key management personal

Mr V.P. Gupta, Mr J.K. Gupta, Mr D.K. Gupta, Mr V.K. Gupta, Mr S.K. Agarwal, Mr Adeep Gupta, Mr Kapil Gupta and Mr Ashish Gupta Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year

2. Earnings in foreign currency (accural basis)

Earnings in foreign currency (accural basis) Nil Nil

3. Gratuity benefit plan

The company operates defined benefits plan for gratuity for its employees. Under the plan every employee who has completed at lea; five years of service gets a gratuity on departure @ 15 days last drawn salary for each comleted year of service. The Scheme is funde with an insurance company in the form of qualifying insurance policy.

The following tables summarises the components of net benefit expense recognized in the statement of profit and loss and the funde status and amounts recognized in the balance sheet.

4. Contingent liabilities 31 March 2014 31 March 2013

in lacs in lacs

Demand by EPFO against the company not acknowledged as debt 26.69 26.69 Lc opened with bank - 42.26

EPFO Bareilly has demanded Rs, 26.69 lacs as PF dues. The management of the company has contested the demand of EPFO. An appeal with Hon''ble EPFAT New Delhi is pending. The company has not recognized provision for liabilities in the financial statement.

5. Balances of trade receivables, trade payables are subject to confirmation as on 31.3.14

6. The company has not received information from vendors regarding their status under the Micro. Small and Medium Enterprises Derelopment Act 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

7. The company carries on the business of textiles under which blankets of different qualities and size are producid. Further the sale is made in domestic markets at the same terms and conditions. Therefore, no different business or geographical segments are recognizable and reportable.

8. Corporate information

Prakash Woollen Mills Ltd. Is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its shares aer listed on two stock exchanges in India namely BSE and DSE. The company is engaged in the manufacturing and selling of mink blankets.


Mar 31, 2013

1. Gratuity benefit plan

The company operates defined benefits plan for gratuity for its employees. Under the plan every employee who has completed at least five years of service gets a gratuity on departure @ 15 days last drawn salary for each comleted year of service. The Scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarises the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet.

2. Contingent liabilities

Demand by EPFO against the company not acknowledged as debt 26.69 38.95

Lc opened with bank 42.26 58.85

EPFO Bareilly has demanded Rs, 26.69 lacs as PF dues. The management of the company has contested the demand of EPFO. An appeal with Hon''ble EPFAT New Delhi is pending. The company has not recognized provision for liabilities in the financial statement.

LC amounting to US$ 77000 has been opened with the bank for purchase of machinery and is outstanding as on 31 March 2013.

3. Balances of trade receivables, trade payables are subject to confirmation as on 31.3.13.

4. The company has not received information from vendors regarding their status under the Micro. Small and Medium Enterprises DerelopmentAct 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

5. The company carries on the business of textiles under which blankets of different qualities and size are producid. Further the sale is made in domestic markets at the same terms and conditions. Therefore, no different business or geographical segments are recognizable and reportable:

6. Corporate information

Prakash Woollen Mills Ltd. Is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the manufacturing and selling of mink blankets.


Mar 31, 2012

A Terms/riahts attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, no dividend amount has been recognized as distributions to equity shareholders.

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 shareholders.

As per records of the company, including its register of shareholders/members and other declarations, received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

b. Details of forfeited shares

913900 equity shares were forfeited in the financial year 1998-99 which were issued at a premium of Rs. 20/- pre share. On these shares Rs. 142.16 lacs were paid.

(a)JUV

Term loan from State Bank of India has been sanctioned for an amount of Rs. 3.45 crores which is under disbursement. The loan carries interest @ 16.25% p.a. The loan is repayable w.e.f. October 2012 in 6 monthly instalments of Rs. 2 lacs each, 24 monthly instalments of Rs. 5.50 lacs each, 30 monthly instalments of Rs. 6.50 each and on last instalment of Rs. 6 lacs ending in the month of October 2017. The loan is secured primarily by first charge on assets created/ to be created out of this term loan.

(b) TL III

The term loan from State Bank of India was converted into FCNRB and carries interest @ 6.18% p.a. The loan is repayable in 15 monthly instalments of Rs. 2 lacs each w.e.f 31.01.2009 and 60 monthly instalment of Rs. 7 lacs each from 30.4.10 till 31.3.2015. The loan is secured by hypothecation of assets created out of this loan.

(c)CL

The term loan from State Bank of India was converted in to FCNRB and carries interest @ 5.91% p.a. The loan is repayable in 6 monthly instalments of Rs. 2.50 lacs each starting from 31.10.2010, 24 monthly instalments of Rs. 4.50 lacs each, 14 monthly instalments of Rs. 8.50 lacs each and last instalment of Rs. 8 lacs by 30.06.2013, Since the loan was not fully disbursed the same will be repaid in full in FY 2012-13. The loan is secured by extension of charges on all assets of the company.

(d)_TL_H

The loan from State Bank of India was converted in to FCNRB and carries Interest @ 6.2% p.a. The laon is repayable in 6 monthly instalments of Rs. 2 lacs each, 53 monthly instalments of Rs. 4 lacs each and last instalment of Rs. 1 lac till September 2013. The loan is secured by hypothecation of assets created / to be created out of this loan.

(e) Car loan

The loans from State Bank of India carry interest @ 12% p.a. and are secured by hypothecation of cars. The loans are repayable in 36 monthly instalments.

All the loans from State Bank on India are further secured by land and building of the company, residential properties of two whole time directors namely Mr. J.K. Gupta and Mr. D.K. Gupta and 3 STDRs of Rs. 5 lacs each pledged by M/s J.K. Gupta, D.K. Gupta and V.K. Gupta as collateral security. Further all the loans from State Bank Of India have been secured by the guarantees of all the four whole time directors of the company.

(f) The loan from HDFC bank has been secured by hypothecation of car purchased out of this loan and carries interest @ 12.5% p.a. The loan is repayable in 36 monthly instalments.

(g) Deposits from shareholders carry interest @ 12.% p.a. and are repayable after 3 years from respective dates of deposits.

Cash credit from State Bank of India is primarily secured against inventories and trade receivables and further secured by land and building of the company, residential properties of two whole time directors namely Mr. J.K. Gupta and Mr. D.K. Gupta and 3 STDRs of Rs. 5 lacs each pledged by Mr. J.K. Gupta, Mr. D.K. Gupta and Mr. V.K. Gupta whole time directors as collateral security. Further, guarantees by all the four whole time directors have been given. The loan carries interest @ 16% p.a. on rupee portion and 6% to 9% on FCNRB portion.

The company has charged depreciation on entire value including revalued amount wherever applicable from profit and loss statement and no amount of depreciation has been recouped from revaluation reserve. The amount of depreciation on amount between revalued value and original cost is Rs. 2.20 lacs. .

The management of the company has assessed the assets of the company on the Balance Sheet date in compliance of AS 28 and they are of the opinion that there are no indication that the assets of the company may be impaired. Therefore no estimate has been made of the recorevable amount of the assets.

1. Related party disclosures Related parties where control exists

Prahlad Industries, Prahlad Flour Mills (P) Ltd., Designs Unlimited, Shree Bankey Bihari Enterprises. Related parties where significant influence exists.

Swastik Biscuit (P) Ltd., Designer Crafts.

Directors and key management personal

M/s V.P. Gupta, J.K. Gupta, D.K. Gupta, V.K. Gupta, S.K. Agarwal, Adeep Gupta, Kapil Gupta and Ashish Gupta

Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the vrelevant financial year

In addition, Mr. S.K. Agarwal, Adeep Gupta, Kapil Gupta and Ashish Gupta are covered by group gratuity scheme and remuneration to managerial personnel does not include the provisions/contribution made for gratuity as they are determined on an actuarial basis for the company as a whole.

2. Gratuity benefit plan

The company operates defined benefits plan for gratuity for its employees. Under the plan every employee who has completed at least five years of service gets a gratuity on departure @15 days last drawn salary for each comleted year of service. The Scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarises the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet.

The principal assumptions used in determining gratuity obligation for the company's plan are shown below:

31 March 2012 31 March 2011

Discount Rate 8% 8%

Expected rate of return on assets 9% 9%

3. Contingent liabilities 31 March 2012 31 March 2011 Rs.in lacs Rs. in lacs

Demand by EPFO against the company not acknowledged as debt 38.95 38.95

Lc opened with bank 58.85 -

EPFO Bareilly has demanded Rs, 38.95 lacs as PF dues. The management of the company has contested the demand of EPFO. The company has not recognized provision for liabilities in the financial statement.

LC amounting to US$ 107000 has been opened with the bank for purchase of machinery and is outstanding as on 31 March 2012

4. Balances of trade receivables, trade payables are subject to confirmation as on 31.3.12

5. The company has not received information from vendors regarding their status under the Micro. Small and Medium Enterprises Derelopment Act 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

6. Till the year ended 31 March 2011 the company was using pre-revised schedule VI to the Coampanies Act 1956 for preparation and presentation of the financial statements. During the year ended 31 march 2012 the revised schedule VI notified under the Companies Act 1956 , has became applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

7. The company carries on the business of textiles under which blankets of different qualities and size are producid. Further the sale is made in domestic markets at the same terms and conditions. Therefore, no different business or geographical segments are recognizable and reportable.

8. Corporate information

Prakash Woollen Mills Ltd. Is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its shares are listed on five stock exchang in India. The company is engaged in the manufacturing and selling of mink blankets.


Mar 31, 2010

1. Letter of Credit opened and outstanding as on 31st March 2010 on behalf of the company by bank for purchase of Raw Material / Machinery amounts to Rs. 6.64 Lacs.

2. Balances of Sundry Debtors, Sundry Creditors and Advance from Customers etc. are subject to confirmation as on 31.3.2010.

3. Break up of Intrest on Borrowing is as under.

2009-2010 2008-2009

(Rs.ln Lakhs) (Rs.ln Lakhs)

i) Interest to State Bank of India 195.41 199,32

on term loan & working Capital

ii)ICICIBank 0.77 1.66

hi) Others 34.98 609

231.10 207.07

4. The company has not received information from vendors regarding their status under the Micro, Small And Medium Enterprises Development Act 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act hence not been given.

5. In the opinion of the management and to the best of their knowledge and belief, the value of loans, advances and other Current Assets in the ordinary course of business will not be less than the amount at which they will be stated in Balance Sheet.

6. Pursuant to notification no. 30/2004 dated 09.07.2004, the company availed exemption of excise duty w.e.f. 01.09.2004, Therefor no excise duty is applicable and payable on blankets there after.

7. The figures relating to Previous year have been rearranged / regrouped wherever necessary .

8. Prior period items include :-

(i) Writing back of Gratuity provisions for past services amounting to Rs. 9.20 lacs.

9. The management of the company has assessed the assets of the company on the Balance Sheet date in compliance of AS 28 and they are of the opinion that there are no indication that the assets of the company, may be impaired. Therefore, no estimate has been made of the recoverable amount of the assets.

10. In accordance with the Accounting Standard 22 on Accounting for Taxes on Income, the Company has made adjustments in its accounts for deferred tax liabilities/assets. The tax effects of significant temporary differences that resulted in deferred tax liabilities are

11. The company carries on the business of textiles. Under which blankets of different qualities & sizes are produced Further the sale is made in domestic markets at the same terms and conditions. Therefore, no different business or geographical segments are recognisable and reportable.

12. Related party disclosures as required by AS-18. Related party disclosures are given below :-

I. Relations Ships :-

(i) Enterprises over which significant influence exists: Prahlad Industries, Prahlad Flour Mills Ltd., Design Unlimited, Swastik Biscuit (P) Ltd.

(ii) Directors & Key Management Personnel:

Shri Ved Prakash Gupta, Shri Jai Kishan Gupta, Shri Daya Kishan Gupta, Shri Vijay Kumar Gupta, Shri Pradeep Kumar Gupta, Dr. S. K Raj, Shri S. K Gupta, Shri N. C. Agarwal, Shri M.K. Agarwal, Shri Sanjay Kumar Agarwal, Shri Adeep Gupta, Shri Kapil Gupta and Shri Ashish Gupta.

 
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