Mar 31, 2015
1. Terms/Rights attached to Equity Shares
The Company has one class of Equity Shares having a par value of Rs 10.
Each holder of Equity Share is entitled to one vote per Share.
2. Terms/RIghts attached to 8% Non-Cum-Preference Shares
The Company has one class of 8% Non-Cummulative Shares having a par
value of Rs 100/-. These shares are redeemed on completion of 20 years
from the date of issue.
1. CONTINGENT LIABILTIES:-
a) The liabilities in respect of Income Tax, Purchase Tax and Sales Tax
have been accounted for on the basis of respective returns filed with
the relevant authorities. Additional Demand, if any, shall be
accounted for in the year in which the assessment is complete. The
status of tax assessments is as under:
i) The Income Tax assessments have been completed upto the assessment
year 2012-13. An Additional demands of Rs.45.02 Lacs for A.Y. 2007-08
has already been paid and Shown under Other Current Assets as income
tax paid under protest. The company has filed appeals against the said
demand before the Income Tax Appellate Tribunal, which is pending for
adjudication.
ii) The Sales Tax/Purchase Tax assessments have been completed up to
the Financial Year 2010-11 and there is no demand outstanding.
b) Central Excise Authorities have gone in appeal against the order of
Commissioner (Appeals) which was decided in favour of the Company
against the demand of Rs. 258.70 Lacs (Previous Year Rs.258.70). The
Company has refuted the liability based on the advice received from the
legal experts and accordingly has not made any provisions in the books
of accounts. The requisite provision, if any, will be made in the year
the final decision is made.
c) . The Central Excise Authorities, Mumbai had imposed duty
and penalty aggregating to Rs. 723.00 Lacs(Previous Year Rs. 723.00
Lacs) for purchase of certain items against CT-3 forms without payment
of duty. The Company has disputed the said demand and filed an appeal
to set aside the said orders. The requisite provisions, if any, will be
made in the year of final decision.
d) The Company has given counter guarantee to banks of Rs 6.00 lacs
(Previous Year Rs. 6.00 Lacs) in respect of the guarantees issued by
the banks on behalf of the Company in favour of HPSEB.
2. The Capital Reserve represents forfeiture of 10% upfront payment
received on Convertible Warrants issued during 2005-06
3. In view of insufficient information from the suppliers regarding
their status as Small, Micro & Medium Enterprises, amount overdue to
such undertakings can not be ascertained. However, the Company has not
received any claim from any supplier in respect of interest.
4. Two creditors of the Company have filed winding up petition against
the company under Section 271 of The Companies Act, 2013 in the Punjab
& Haryana High Court for payment of Rs. 7.95 Lacs, which is pending for
adjudication.
5. The balance of trade receivable, trade payables, contractors and
others are subject to reconciliation and confirmation
6. In the opinion of the Board of Directors all the Current Assets,
Loans and Advances except to the extent of provision of Rs.9.21 Lacs
for doubtful debts, if realized in the ordinary course of business,
have a value at least equal to the amount at which these are stated in
the Balance Sheet.
7. As per Accounting Standard-11, "Effects of Change in Foreign
Exchange Rates" issued by "The Institute of Chartered Accountants of
India", the amount due to foreign creditors have been restated at
closing rate i.e. rate as at 31.03.2015. The difference amount of Rs.
65,429.32 is adjusted through Exchange Rate fluctuation Account.
8. During the year, the company has provided depreciation based on the
useful life of the assets as per schedule II to the companies act,2013
whereas earlier the same was provided at the rates prescribed in
schedule XIV to the companies act, 1956. As the result of this change,
the amount of depreciation charged is higher by Rs 42.45 Lacs.
9. As per Accounting Standard - 15 "Employee Benefits", the disclosure
of Employee Benefits as defined in the Accounting Standard are as
follows
The assumptions are as follows:
i) All valuation assumptions have been set strictly in accordance with
guidelines contained in AS15(R)
ii) The assumptions employed for calculation are:
iii) The discount rate has been determined by reference to market
yields as at 31st March, 2015 on CG-Secs of currency and term
consistent with those of benefit obligations.
iv) The estimated rate of increase in compensation levels takes into
account inflation, seniority, promotion and other relevant factors such
as demand and supply in the employment market. This estimate is also
tempered by quick review undertaken, in cooperation with the company's
officials, of the company's past and current wage structure, staff
compensation practices and the level of price neutralization likely to
be affected through periodic wage increase over the next 5 to 10 years.
Furthur, it is assumed that the ceiling on gratuity amount will
increase in line with salary inflation over the long term. No allowance
has been made for performance based discretionary increase in salary in
individual cases.
v) The retirement age has been uniformly taken as 58 years.
vi) No allowance has been made for future improvement in in-service
mortality.
vii) It is assumed, based on their overall behavior pattern, that the
employees are unlikely to avail/encash the entire accumulated/ cany
forward of leave during the coming 12 months.
viii) Attrition rate vary from industry to industry and, within
industry, from company to company. In practice no single averaged out
figure is likely to be representative of the different attrition rates
observed over the entire age range. Since the data regarding the number
of employees who left the services of the company during past few years
is not available, the attrition rate, which is chosen with the
concurrence of the company's authorized officials, is based on the
experience gathered from other similar manufacturing units broadly
corresponding in size, activity and staffing pattern to those of the
Company
10 RELATED PARTY DISCLOSURES:-
Disclosures as required by the Accounting Standard -18 "Related Party
Disclosures" issued by the ICAI are given below:
-Associate Companies
1. Universal Cyber Infoway Pvt. Ltd.
2. Pride Properties Pvt. Ltd.
3. Susang mac Pvt. Ltd.
4 Sam Export
5. Waltz Retail and Marketing
6. Gulmohar Investments & Holdings Ltd.
7. Socks & Socks
-Key Management Personnel:
1. Mr. R.C. Mahajan - Managing Director
2. Mr. Amit Mahajan - Director Commercial & Chief Financial Officer
3. Mr. Amit Mahajan - Director Operations
4. Ms. Chetna Anand - Company Secretary
11. As per Accounting Standard -28 "Impairment of Assets" issued by
ICAI, the management has reviewed its cash generating units as on
31.03.2015. No indication has been found by the management to suggest
that the recoverable amount of Asset is less then the carrying amount.
Hence no impairment loss on asset has been recognized.
12. During the month of July, 2014, the company's plant at District
Una was flooded and the company suffered a heavy loss. Insurance claim
for Rs. 163.03 Lacs was filed with the insurance company. The insurance
claim was settled at Rs. 104.13 Lacs. The balance loss of Rs. 58.90
Lacs has been written off as an exceptional item in the Statement of
Profit & Loss.
13. Due to inadequate profits, the company has not created Capital
Redemption Reserve.
14. CIF Value of Imports, Earnings & Expenditure in foreign Currency
15. Previous year figures have been recasted/regrouped/ rearranged
wherever necessary to make them comparable with that of current year.
Mar 31, 2014
1. Terms/Rights attached to Equity Shares
The Company has one class of Equity Shares having a par value of Rs 10.
Each holder of Equity Share is entitled to one vote per Share.
2. Terms Rights attached to 8% Non-Cum-Preference Shares
The Company has one dass of 8% Non-Cum-Preference Shares having a par
value of Rs 100. These shares are redeemed on completion of 20 years
from the date of issue.
3. CONTINGENT LIABILITIES:-
a) The liabilities In respect of Income Tax, Purchase Tax and Sales Tax
have been accounted for on the basis of respective returns filed with
the relevant authorities. Additional Demand, if any, shall be accounted
for in the year in which the assessment Is complete. The status of tax
assessments is as under:
i) The Income Tax assessments have been completed upto the assessment
year 2011-12 and there are demands of Rs.45.02 Lacs for the A.Y.2007-0S
against which the company has filed appeals before the Commissioner of
Income Tax(Appeals), which is pending for adjudication, ii) The Sales
Tax/Purchase Tax assessments have been completed up to the Financial
Year 2010-11 and there is no demand outstanding.
b) Central Excise Authorities have gone in appeal against the order of
Commissioner (Appeals) which was decided in favour of the Company
against the demand of Rs. 256,70 Lacs (Previous Year Rs.256.70). The
Company has refuted the liability based on the advice received from the
legal experts and accordingly has not made any provisions in the books
of accounts. The requisite provision, if any, will be made in the year
the final decision is made.
c) . The Central Excise Authorities, Mumbai had imposed duty
and penalty aggregating to Rs. 723.00 Lacs(Previous Year Rs. 723.00
Lacs) for purchase of certain items against CT- 3 forms without payment
of duty. The Company has disputed the said demand and filed an appeal
to set aside the said orders. The requisite provisions, if any, will be
made in the year of final decision.
d) The Company has given counter guarantee to banks of Rs 6.00 lacs
(Previous Year Rs. 6.00 Lacs) in respect of the guarantees Issued by
the banks on behalf of the Company in favour of HPSE8.
4. The Capital Reserve represents forfeiture of 10% upfront payment
received on Convertible Warrants issued during 2005-06
5. In view of Insufficient information from the suppliers regarding
their status as Smell, Micro & Medium Enterprises, amount overdue to
such undertakings can not be ascertained. However, the Company has not
received any claim from any supplier in respect of interest.
6. Two creditors of the Company have filed winding up petition against
the company under Section 433 & 434 of The Companies Act, 1956 in the
Punjab & Haryana High Court for payment of Rs. 7.95 Lacs, which is
pending for adjudication.
7. The balance of trade receivable, trade payables, contractors and
others are subject to reconciliation and confirmation
8. In the opinion of the Board of Directors all the Current Assets,
Loans and Advances except to the extent of provision of Rs.9.21 Lacs
for doubtful debts, If realized in the ordinary course of business,
have a value at least equal to the amount at which these are stated in
the Balance Sheet.
9. As per Accounting Standard-11,'"Effects of Change in Foreign
Exchange Rates' issued by 'The Institute of Chartered Accountants of
India*, the amount due to foreign creditors have been restated at
dosing rate l.e. rate as at 31.03.2014. The difference amount of
Rs.2,60 lacs is adjusted through Exchange Rate fluctuation Account.
10. The discount rate has been determined by reference to market yields
as at 31st March, 2014 on CG-Secs of currency and term consistent with
those of benefit obligations.
11. The estimated rate of increase in compensation levels takes into
account inflation, seniority, promotion and other relevant factors such
as demand and supply in the employment market. This estimate is also
tempered by quick review undertaken, in cooperation with the company's
officials, of the company's past and current wage structure, staff
compensation practices and the level of price neutralization likely to
be affected through periodic wage Increase over the next 5 to 10 years.
Furthur it is assumed that the ceiling on gratuity amount will increase
in line with salary inflation over the long term. No allowance has been
made for performance based discretionary increase in salary in
individual cases.
12. The retirement age has been uniformly taken as 58 years.
13. No allowance has been made for future improvement in in- service
mortality.
14. It is assumed, based on their overall behavior pattern, that the
employees are unlikely to avail/encash the entire accumulated/ carry
forward of leave during the coming 12 months.
15. Attrition rate vary from Industry to Industry and. within
industry, from company to company. In practice no single averaged out
figure is likely to be representative of the different attrition rates
observed over the entire age range. Since the data regarding the number
of employees who left the services of the company during past few years
is not available, the attrition rate, which is chosen with the
concurrence of the company's authorized officials, is based on the
experience gathered from other similar manufacturing units broadly
corresponding in size, activity and staffing pattern to those of the
Company.
16. SEGMENT REPORTING
The Company has only one segment and deals only in single line of
products i.e. "Footwears' .Thus the Accounting Standard 17 "Segment
Reporting" issued by "The Institute of Chartered Accountants of India"
is not applicable
17. RELATED PARTY DISCLOSURES:-
Disclosures as required by the Accounting Standard -18
Related Party Disclosures" issued by the ICAl are given below:
* Associate Companies
1. Universal Cyber Infoway Pvt. Ltd.
2. Pride Properties Pvt. Ltd.
3. Susamg mac Pvt. Ltd.
4 Sam Export
5. S.R. Footwears Pvt. Ltd.
6. Zoom Merchantile & Finance Ltd.
7. Gulmohar Investments 4 Holdings.Ltd.
8. Socks & Socks
* Key Management Personnel;
1. Mr. R.C. Mahajan - Managing Director
2. Mr. Amit Mahajan - Director Commercial & Chief Financial Officer
3. Mr. Amit Mahajan - Director Operations
18. As per Accounting Standard -28 'Impairment of Assets' issued by
1CAI, the management has reviewed its cash generating units as on
31.03.2014.1 No indication has been found by the management to suggest
that the recoverable amount of Asset is less then the carrying amount.
Hence no impairment loss on asset has been recognized.
19. Due to inadequate profits, the company has not created Capital
Redemption Reserve.
20. Previous year figures have been recasted/regrouped/ rearranged
wherever necessary to make them comparable with that of current year.
Mar 31, 2013
I. CONTINGENT LIABILTIES:- a) The liabilities in respect of Income
Tax, Purchase Tax and
Sales Tax have been accounted for on the basis of respective returns
filed with the relevant authorities. Additional demand, if any, shall
be accounted for in the year in which the assessment is complete.
i) The Income Tax assessments have been completed upto the assessment
year 2010-11 and there are demands of Rs. 58.92 Lacs for the AY
2006-07 and Rs. 45.02 Lacs for the AY 2007-08 against which the company
has filed appeals before the Commissioner of Income Tax (Appeals),
which are pending for adjudication.
ii) The Sales Tax/Purchase Tax assessments have been completed up to
the Financial Year 2005-06 and there is no demand outstanding.
b) Central Excise Authorities have gone in appeal against the order of
Commissioner (Appeals) which was decided in favour of the Company
against the demand of Rs. 258.70 Lacs (Previous Year Rs.258.70). The
company has refuted the liability based on the advice received from the
legal experts and accordingly has not made any provisions in the books
of account. The requisite provision, if any, will be made in the year
of final decision is made.
c) The Central Excise Authorities, Mumbai had imposed duty and penalty
aggregating to Rs. 723.00 Lacs(Previous Year Rs. 723.00 Lacs) for
purchase of certain items against CT- 3 forms without payment of duty.
The Company has disputed the said demand and filed an appeal to set
aside the said orders. The requisite provisions, if any, will be made
in the year of final decision is made.
d) The company has given counter guantees to banks of Rs.6.00
Lacs(Previous Year Rs. 6.00 Lacs) in respect of the guarantees issued
by the banks on behalf of the Company in favour of PSEB.
II. The accounts have been drawn for the nine months period from July
01, 2012 to March 31, 2013.
III. The Capital Reserve represents forfeiture of 10% upfront payment
received on Convertible Warrants issued during 2005-06.
IV. The stock auditor appointed by the bankers have physical
verification the stock in trade of the Company as on April 30, 2013
which has been reconciliation upto March 31, 2013.
V. In view of insufficient information from the suppliers regarding
their status as Small, Micro & Medium Enterprises, amount overdue to
such undertakings can not be ascertained. However, the Company has not
received any claim from any supplier in respect of interest.
VI. Two creditors of the Company have filed winding up petition
against the company under Section 433 & 434 of The Companies Act, 1956
in the Punjab & Haryana High Court for payment of Rs. 7.95 Lacs which
is pending against adjudication.
VII. The balance of trade receivable, trade payables, contractors and
others are subject to reconciliation and confirmation.
VIII. In the opinion of the Board of Directors all the Current Assets,
Loans and Advances except to the extent of provision of Rs. 27.69 Lacs
for doubtful debts & Rs. 22.93 Lacs for doubtful receivable, if
realized in the ordinary course of business, have a value at least
equal to the amount at which these are stated in the Balance Sheet.
The above does not include contribution to LIC Group Gratuity Fund and
provision for Leave Encashment as such contribution/provision is made
on the global basis and the employee-wise breakup is not available.
X. As per Accounting Standard - 28 ÂImpairment of Assets issued by
ICAI, the management has reveiwed its cash generating units as on March
31, 2013. No indication has been found by the management to suggest
that the recoverable amount of Asset is less than the carrying amount.
Hence no impairment loss on asset has been recognized.
XI. RELATED PARTY DISCLOSURES:-
Disclosures as required by the Accounting Standard -18 ÂRelated Party
Disclosures issued by the ICAI are given below: -Associate Companies
1. Universal Cyber Infoway Pvt. Ltd.
2. Pride Properties Pvt. Ltd.
3. Susamg mac Pvt. Ltd. 4.Sam Export
5. S.R. Footwears Pvt. Ltd.
6. Zoom Merchantile & Finance Ltd.
7. Gulmohar Investments & Holdings. Ltd.
8. Socks & Socks
-Key Management Personnel:
1. Mr. R.C. Mahajan Managing Director
2. Mr. Amit Mahajan Director Commercial
3. Mr. T.N. Tikoo- Director Works
4. Mr. Y.R. Kapur-Director Finance
5. Mr. Amit Mahajan- Director Operations
XII. SEGMENT REPORTING
During the year, the Company discontinued its ÂTerry Towel division
and now the company deals only in the business of ÂFootwearsÂ. Thus the
Accounting Standard 17 ÂSegment
Reporting issued by the ÂThe Institute of Chartered Accounts of IndiaÂ
would not be applicable from this year.
Jun 30, 2012
I CONTINGENT LIABILTIES:-
a) Central Excise Authorities have gone in appeal against the order of
Commissioner (Appeals) which was decided in favor of the Company
against the demand of Rs. 258.70 Lacs (Previous Year Rs.258.70), The
company has refuted the liability based on the advice received from the
legal experts and accordingly has not made any provisions in the books
of account. The requisite provision, if any, will be made in the year
of decision.
b) The Central Excise Authorities. Mumbai had imposed duty and penalty
aggregating to Rs. 723.00 Lacs(Previou$ Year Rs. 723.00 Lacs) for
purchase of certain items against CT-3 forms without payment of duty.
The Company has disputed the said demand and filed an appeal to set
aside the said orders. The requisite provisions, if any. will be made
in the year decision.
c) The company has given counter guantees to banks of Rs.6.00
Lacs(Previous Year Rs. 15.00 Lacs) in respect of the guarantees issued
by the banks on behalf of the Company.
i. The accounts have been drawn for the fifteen months period from
April 01, 2011 to June 30. 2012.
ii. Purchase Tax/ Sales Tax liability have been provided based on the
returns filed with Sales Tax Authorities. The Sales Tax assessments
have been completed up to the Financial Year 2005-06.
II. Income Tax assessments have been completed upto Assessment Year
2010-11 and no demand is pending.
III. The Capital Reserve represents forfeiture of 10% upfront payment
received on Convertible Warrants issued during 2005-06.
IV. Turnover includes Rs. 2.09 Lacs (Previous Year 3.37 Lacs) on
realization/entitlement of DEPB License.
V. During the year the Company has sold its Land & Building, Plant &
Machinery. Electric installation, D.G. Set and Laboratory Equipments of
its Terry Towel Division at Derabassi. All the fixed assets except
vehicles have been transferred. The stocks lying in the factory on the
date of transfer of unit had no realizable value and therefore its
value has been taken as nil. Consequently, the loss on sale of terry
towel division has been Rs.1019.49 lacs. Inter Corporate Loan from
Religare Finvest Limited which was secured by first charge on the land
has been classified as unsecured loan consequent upon the sale of the
land.
VI. The advances of the Terry Towel Division amounting to Rs.7B.46
lacs are shown as considered good and receivable except to the extent
provision made. The management is of the opinion the same will be
realized in the coming years.
VII. The Company during the current financial year has received Rs. 30
lacs under Central Capital Investment Subsidy Scheme, 2003 and Rs. 50
lacs as grant/subsidy of assistance under Integrated Development of
Leather Sector Scheme of Government of India. The amounts received have
been reduced from the cost of Plant and Machinery as per the
requirement of Accounting Standard AS-12.
VIII. In the opinion of the Board of Directors all the Current Assets,
Loans and Advances except to the extent of provision of Rs 50.64 Lacs
for doubtful, if realized in the ordinary course of business, have a
value at least equal to the amount at which these are stated in the
Balance Sheet.
IX In view of insufficient information from the suppliers regarding
their status as Small, Micro & Medium Enterprises, amount overdue to
such undertakings can not be ascertained. However, the Company has not
received any claim from any supplier in respect of interest.
X) Previous year figures have been regrouped and rearranged wherever
necessary to make than comparable.
Mar 31, 2010
1) Contingent liabilities :-
a) Export/Domesfc Bills drawn on customers against letters of credit
and discounted with bank are Rs. 59.19 lacs (Previous year Rs. 49.47
lacs).
b) Central Excise Authorities have gone in appeal against the order of
Commissioner (Appeals) which was decided in favour of the Company for
the demand of Rs. 258.70 lacs (Previous year Rs. 258.70 lacs). The
Company has refuted the liability based on the advice received from the
legal experts and accordingly has not made any provision in the Books
of Account. The requisite provision, if any, will be made in the year
in which any demand is finally established.
c) The Central Excise Authorities, Mumbai have imposed a duty and
penalty aggregating to Rs. 723.00 lacs (Previous year Rs. 723.00 lacs)
for purchase of certain temsagainstCT-3 Forms without payment of duty.
The Company has disputed the said demand and filed an appeal to set
aside the said orders. The requisite provision, if any, will be made in
the year in which any demand is finally established.
d) The company has given counter gaurantee to the bank for Rs.
12.00Lacs (Previous Year Nil) in respect of the gaurantees issued by
the bank on behalf of the company.
2) Purchase Tax/Sales Tax liability has been provided based on the
retums filed with the Sales Tax Authorities. The Sales Tax assessments
have been completed upto the financial year 200506.
3) Income Tax assessments have been completed upto the Assessment Year
2006-07.
4) In the opinion of the Management, the current assets, loans and
advances have a value which on realisation in the ordinary course of
business would be at least equal to that at which these have been
stated in the books of account
5) The turnover includes Rs.1.29 lacs (Previous year 4.54 Lacs) on
account of realisation/entitlement of DEPB Licence.
6) The term loans from the State Bank of Patiala and Uco Bank are
secured by way of first parri passu charge on the fixed assets and
second parri passu charge on current assets of the company. Furter, the
working captal facilities from the State Bank of Patiala and UCO Bank
are secured by way of first parri passu charge on the current assets
and second parri passu charge on the fixed assets of the company. The
term loans and working capital facilities are further secured by the
personal guarantees of three Directors. Further, the loan from Religare
Finvest Limited is secured by first charge on the land at Village -
Bhagwanpur, Dera Bassi
7) The company after stabilisation started its commercial production at
its footwear unit in Una & Gurgaon on March 26, 2010. The expenditure
net of sales upto that date has been capitalised.
8) There are no claim from suppliers under Interest on Delayed Payments
to Small Scale and Ancillary Industrial Undertakings Act 1993. Sundry
creditors include Rs.35.54 lacs (Previous year Rs. 40.69 lacs) due to
small scale industrial undertakings to whom the Company owes sum
exceeding Rs. one lac and which are outstanding for more than 30 days.
These units are Creative Arts, Jai Balaji Labels, Maps India Ltd.. RSA
Industries Pvt. Ltd., Vaibhav International, Vee Emm Industries, Lace
India Company, Tex n Nets. SMG International and Enkay HWS India Ltd.
The above has been furnished on the basis of information regarding the
status of suppliers available with the Company.
9) The company has opted for the exemtion under Notification No.
30/2004 dated July 9, 2004 issued by the Central Board of Excise &
Customs and therefore no excise duty is payable on the goods
manufactured/despatched by it.
10) Capital Reserve has arisen from the Capital profit on forfeiture of
10% upfront payments on 5,91,000 Convertible Warrants at a price of Rs.
29/- each issued during 2005-06.
11) IMPAIRMENT OF ASSETS
In the opinon of the Board, if ere is no material imparme it the value
of overal assets.
12) Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable.
Mar 31, 2009
1) Contingent liabilities :-
a) Export/Domestic Bills drawn on customers against letters of credit
and discounted with bank are Rs. 49.47 lacs (Previous year Rs. 50.88
lacs).
b) Central Excise Authorities have gone in appeal against the order of
Commissioner (Appeals) which was decided in favour of the Company for
the demand of Rs. 258.70 lacs (Previous year Rs. 258.70 lacs). The
Company has refuted the liability based on the advice received from the
legal experts and accordingly has not made any provision in the Books
of Account. The requisite provision, if any, will be made in the year
in which any demand is finally established.
c) The Central Excise Authorities, Mumbai have imposed a duty and
penalty aggregating to Rs. 723.00 lacs (Previous year Rs. 723.00 lacs)
for purchase of certain items against CT-3 Forms without payment of
duty. The Company has disputed the said demand and filed an appeal to
set aside the said orders. The requisite provision, if any, will be
made in the year in which any demand is finally established.
d) Estimated amount of contracts remaining to be executed on capital
accounts and not provided for Rs. 403 lacs net of advances (Previous
year Nil)
2) Purchase Tax/Sales Tax liability has been provided based on the
returns filed with the Sales Tax Authorities. The Sales Tax assessments
have been completed upto the financial year 2004-05 and no demand is
pending in respect thereto.
3) Income Tax assessments have been completed upto the Assessment Year
2006-07 and no demand is pending in respect thereto.
4) In the opinion of the Management, the current assets, loans and
advances have a value which on realisation in the ordinary course of
business would be at least equal to that at which these have been
stated in the books of account.
5) The turnover includes Rs.4.54 lacs (Previous year Nil) on account of
realisation/entitlement of DEPB Licence.
6) There is no claim from suppliers under Interest on Delayed Payments
to Small Scale and Ancillary Industrial Undertakings Act, 1993. Sundry
creditors include Rs. 40.69 lacs (Previous year Rs. 47.70 lacs) due to
small scale industrial undertakings to whom the Company owes sum
exceeding Rs. one lac and which are outstanding for more than 30 days.
These units are Didesu Chemicals (P) Ltd., Dipsi Chemicals (P) Ltd.,
Creative Arts, Jai Balaji Labels (P) Ltd., M.K.Enterprises, E-Fuel,
Maps India Ltd., RSA Industries (P) Ltd., Vaibhav International and Vee
Emm Industries. The above information has been furnished on the basis
of information regarding the status of supplier available with the
Company.
7) The Company has opted for the exemption under Notification No.
30/2004 dated July 9, 2004 issued by the Central Board of Excise &
Customs and therefore no excise duty is payable on the goods
manufactured/despatched by it.
8) Capital Reserve has raised from the Capital profit on forfeiture of
10% upfront payment on 591000 Convertible Warrants at a price of Rs.
29/- each issued during 2005-06.
9) SEGMENT REPORTING
Based on the guiding principles given in the Accounting Standard 17
"Segment Reporting" issued by "The Institute of Chartered Accountants
of India" the Board of Directors considers and maintains that the
manufacture of Terry Towels" is the only business segment of the
Company.
10) IMPAIRMENT OF ASSETS
In the opinion of the Board, there is no material impairment in the
value of overall assets.
11) RELATED PARTY DISCLOSURE
Disclosures as required by the Accounting Standaid 18 "Related Party
Disclosure" issued by the Institute of Chartered Accountants of India,
are given below :-
a) RELATED PARTIES
Key Management Personnel - Mr. R. C. Mahajan, Mr. Amit Mahajan, Mr.
TN.Tikco, Mr. Y.R.Kapur and Mr. Amit Mahajan
Associates - Universal Cyber Infoway (P) Ltd., Susang Mac (P) Ltd,
Gulmohar Investments & Holdings Ltd. and Pride Properties (P) Ltd.
12) Previous year figures have been regrouped and rearranged wherever
necessary to make them comparable.