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Notes to Accounts of Premco Global Ltd.

Mar 31, 2015

1. Terms/Rights Attached to Shares

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

a. The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of Long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

2. DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani.

3.a. The Long Term Portion of Provision for Employee Benefits are shown under Long Term Provisions and the current portion of Provision for Employee Benefits are shown under the Short term Provisions in Note 11 (a) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

b. The Company has entered into funding arrangement with HDFC Standard Life Insurance Company Limited and that the Gratuity payable to Employees is covered under the Employees Group Gratuity Scheme through the " Premco Global Limited Employees Gratuity Trust". Accordingly the gratuity liabilities provided in the books of the company as on 31.03.2015 of Rs. 56.91 Lacs ( P.Y. Rs. 55.91 Lacs) has been squared off against the company contribution of Rs. 65.00 Lacs towards planned assets and the amount of Rs. 8.28 Lacs is charged to Profit & Loss account as Gratuity Expense.

During the year, the Company has revised depreciation rate on certain fixed assets as per the useful life specified in the Companies Act, 2013.

Accordingly, the carrying amount as at 01.04.2014 is being depreciated over revised remaining useful life of the asset.

The Carrying value of Rs. 87.35 Lacs in case of Assets worth NIL revised remaining useful life as at 01.04.2014, is reduced aftertax adjustment of Rs. 29.69 Lacs from the Retained Earnings as at such date. Further, had the Company continued with the previously assessed useful lives, charge for depreciation for the year ended 31.03.2015 would have been lower by Rs. 121.56 Lacs and profit before tax would be higher by such amount.

4. Contingent Liabilities:

a) Unredeemed Bank Guarantees are Rs.24.22 Lacs (P.Y. Rs. 15.34 Lacs)

b) Claims against the company not acknowledged as debts

* Income Tax Liability Rs. 14.25 Lacs (PY. 6.13 Lacs)

5. Capital Commitments :-

Estimate amount of contract remaining to be executed on Capital Account & not provided for Rs. 24.18 Lacs (P.Y. NIL) against which advance has been paid Of Rs. 4.35 Lacs (P.Y. NIL)

6. The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2015 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

a) Defined benefit plans - Gratuity & Leave Encashment:

Gratuity The company operates a gratuity plan which is administrated through HDFC Standard Life Insurance Company Limited and a trust which is adm inistrated through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity act, 1972, The same is payable at the time of separation from the company or retirement, whicheverisearlierordeath in service.

Leave Encashment :-The employees are entitled to accumulate compensated absence upto specified days as per company policy, which is payable at the time of separation from company i.e. retirement or death in service at the rate of last drawn salary.

The details on Company's Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

7. Segment Reporting:

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and ail other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

8.Related Party Disclosures

a) List of Related Parties and Relationship Relationship Prernco Industries Associate Firm

b) Key Management Personnel - Directors

Mr, Ashok B. Harjani Chairman & Managing Director

Mr. Lokesh P. Harjani Director

c) Key Management Personnel - Otherthan Directors

Mrs. Nisha P. Harjani Chief Financial Officer

d) Relatives of Key Management Personnel Mrs. Sonia A. Harjani Relative Mr. Prem B. Harjani Relative Mr. Suresh B. Harjani Relative

9. Information (to the extent applicable) pursuant to AS 19 :

The Company's significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 28.

10. Corporate Social Responsibility (CSR) Activities

During the year, the Company has spent Rs. 9.49 Lacs towards Corporate Social Responsibility ( CSR ) under section 135 of the Companies Act, 2013 and rules thereon by way of contribution to various Trusts / NGOs / Societies / Agencies.

11. Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2014

1. Terms/Rights Attached to Shares

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

2. The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Revised Schedule VI

3. DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani & Ashok Harjani.

4. NOTE :

Contingent Liabilities :

a) Unredeemed Bank Guarantees are Rs.15.34 Lacs (P.Y. Rs. 16.54 Lacs)

b) Claims against the company not acknowledged as debts

* Income Tax Liability Rs. 6.13 Lacs (P.Y. Nil)

5. NOTE :

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2014 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

6. NOTE :

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

7. NOTE :

A) Segment Reporting:

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

8. NOTE :

Information (to the extent applicable) pursuant to AS 19:

The Company''s significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 28:.

9. NOTE : Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2013

NOTE 1:

Contingent Liabilities:

a) Unredeemed Bank Guarantees are Rs. 16.54 Lacs (RY. Rs.18.90 Lacs)

b) Claims against the company not acknowledged as debts

- Income Tax Liability Rs. Nil (P.Y. 2.42 Lacs)

NOTE 2:

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2013 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

NOTE 3:

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

NOTE 4:

Consequent to the adoption of Accounting standard on Employee benefits (AS 15) (Revised 2005) issued by the institute of Chartered Accountants of India, the following disclosures have been made by the Standard:

a) The details on Company''s Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

NOTE 5:

A) Segment Reporting:

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

NOTE 6:

Related Party Disclosures

a) List of Related Parties and Relationship Relationship Premco Industries Associate Firm

b) Key Management Personnel

Ashok B. Harjani Chairman & Managing Director

Lokesh P. Harjani Director

c) Relatives of Key Management Personnel

Mrs. Nisha P. Harjani Relative

Mrs. Sonia Harjani Relative

Mr. PremB. Harjani Relative

NOTE 7:

Information (to the extent applicable) pursuant to AS 19:

The Company''s significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 27:.

NOTE 8:

Earning Per Share:

Earning per share computed in accordance with Accounting Standard 20: ''Earning Per Share

NOTE 9:

Information pursuant to Para 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 (to the extent available and as certified by the management) is as under :-

a) Production of Finished Goods

b) Quantitative information in respect of Opening Stock, Closing Stock, Sales and Consumption of Raw Materials (As Certified by Management)

NOTE 10. Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2012

NOTE a) Cash & Cash equivalent include : cash and Bank balance in Current Account and Unpaid Dividend

b) The cash flow statement as been prepared under the "Indirect method" of AS - 3 "cash flow statement issued by the Institute of Chartered Accountants of India.

1.1 There are no items for reconciliation of the number of shares outstanding at the beginning and at the end of the reporting

1.2 Terms / Rights Attached to Shares

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

1.3 There are no Bonus Shares I Buyback I Shares for consideration other than cash issued during past five years.

2.1 The Calls of Rs. 2,25,000/- (RY. Rs. 2,25,000/-) in Securities Premium Reserve are due from Share holders other than Directors and officers

3.1 The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Revised Schedule VI

3.2 DETAILS OF SECURITY AND TERMS OF REPAYMENT

a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at plot No. 41, Survey no. 35 (PT) Diwan & Sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey No. 202/2, Old Check Post, Dadra & Nagr Haveli, Dadra along with personal guarantee of Lokesh Harjani & Ashok Harjani.

c) ICICI BANK LTD.

Vehicle Loan from Bank are secured by mortgage of Respective Vehicle. The Loan has been fully repaid during the year and the interest applicable on the said loan at the rate of 8.70% p.a.

d) KOTAK MAHINDRA PRIME LTD.

Vehicle Loan from Bank are secured by mortgage of Respective Vehicle.

4.1 The long term portion of Security Deposit Employees are shown under Other Long Term Liabilities and the current maturities of Security Deposit Employees are shown under the current liabilities in note 10(e)(i) as per the disclosure requirements of the Revised Schedule VI

5.1 The long term portion of Provision for Employee Benefits are shown under Other Long Term Provisions and the current portion of Provision for Employee Benefits are shown under the Short Term Provisions in note 11(a) as per the disclosure requirements of the Revised Schedule VI

Working capital referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stock & book debts and plant & machinery along with equitable mortgage on the property situated at Plot No. 41, Survey no. 35 (PT) Diwan & Sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey No. 202/

2, Old Check Post, Dadra & Nagr Haveli, Dadra along with personal guarantee of Lokesh Harjani & Ashok Harjani.

*There is no amount due and outstanding as on 31st March 2012 to be credited to Investor Education and Protection Fund.

14.1 The long term portion of loans & advances given to staff are shown under Long Term Loans & Advances & The Current portion of Loans & Advances given to staff are shown under the short term Loans & Advances in Note 19 as per the disclosure requirements of the revised schedule VI.

The Sales revenue from operations & consumption of Raw material for the year ended 31/03/2011 includes the value of Inter Division Sales & Purchase respectively aggregating of Rs. 618.54 Lacs. During the year the Company has changed the method accounting of sales revenue from operations & consumptions of raw material by excluding the value of interdivision Sales/ purchases of Rs. 708.06 Lacs for the current year. The above has no effect in overall profit / loss of the year. Consequently the sales of the earlier year is overstated to the extent of Rs. 618.54 Lacs.

The Sales revenue from operations & consumption of Raw material for the year ended 31/03/2011 includes the value of Inter Division Sales & Purchase Respectively aggregating of Rs. 618.54 Lacs. During the year the Company has changed the method accounting of sales revenue from operations & consumptions of raw material by excluding the value of interdivision Sales/purchases of Rs. 708.06 Lacs for the current year. The above has no effect in overall profit / loss of the year. Consequently the sales of the earlier year is overstated to the extent of Rs. 618.54 Lacs.

NOTE 6:

Contingent Liabilities :

a) Unredeemed Bank Guarantees are Rs.18.90 Lacs (RY.Rs.18.64 Lacs)

b) Claims against the company not acknowledged as debts

- Claims Rs. Nil (P. Y. 503.35 Lacs)

- Income Tax Liability Rs. 2.42 Lacs (P.Y. 32.01 Lacs)

NOTE 7:

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2012 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

NOTE 8:

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

NOTE 9:

Consequent to the adoption of Accounting standard on Employee benefits (AS 15) (Revised 2005) issued by the institute of Chartered Accountants of India, the following disclosures have been made by the Standard :

NOTE 10:

A) Segment Reporting

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic Tapes and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

NOTE 11:

Information (to the extent applicable) pursuant to AS 19 :

The Company's significant leasing arrangements are in respect of operating leases for premises (factory, office, premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 27

NOTE 12:

The Financial Statements for the year ended March 31,2011 had been prepared as per the then applicable, per-revised schedule VI to the Companies Act 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figure have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition and measurement principals followed for preparation of financial statements.

*Note: Interdivision transfer is not consider as sales from FY 2011 -12 onwards.

The Company Shares are listed in Mumbai & Ahmadabad Stock Exchange. The requisite listing fees have been paid.


Mar 31, 2010

1. Figures of the previous year have been regrouped and rearranged, wherever considered necessary.

2. Contingent Liabilities :

a) Unredeemed Bank Guarantees are Rs.15.95 Lacs (P.Y.Rs.12.95 Lacs)

b) Claims against the company not acknowledged as debts

- Claims Rs. 503.35 lacs (P. Y. 503.35)

- Income Tax Liability Rs. 3.51 (P.Y. 3.12)

3. Estimated amount of contracts remaining to be executed (net of advances) is Rs. 347.28 lacs (P.Y. 565.21 Lacs)

4. The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2010 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

5. In the opinion of the management, no item of current assets, loans and advances has a value on realisation in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

6. Dividend income is accounted on receipt basis.

7. The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures regarding :

a) Amount due and outstanding to suppliers as at the end of accounting year.

b) Interest paid during the year.

c) Interest payable at the end of the accounting year.

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmations from the suppliers as regards their status under the Act.