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Notes to Accounts of Samtex Fashions Ltd.

Mar 31, 2015

1. Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. The equity shareholders of the Company have voting rights and are subject to the preferential rights as prescribed under law, if any. The equity shares are also subject to restriction as prescribed under the Companies Act, 2013. 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 31st March 2015, no dividend is declared by Board of Directors. (Previous year - Nil).

2. A NATURE OF SECURITY:-

(I) PRIMARY SECURITY

Term Loan from IDBI is secured by first charge on immovable & movable assets, present and future except book debts, subject to the charge created or to be created in favor of bankers for securing working capital loan on stocks of raw material, semi finished goods, finished goods, stores and spares, consumables, book debts and other current assets held by the Company both present and future in the ordinary course of the business and further guaranteed by the Managing Director, Promoter Directors and an independent Director.

(B) Terms of Repayments :-

Repayable in equated quarterly installments of Rs. 55,68,000/- each from the date of loan. Interest will be payable at 10%.

3. NATURE OF SECURITY

The Working Capital Loan taken from State Bank of India is secured by first exclusive hypothecation charge on all existing and future current assets, second hypothecation charge on all movable fixed assets (other than specially charged with other lenders) and personal guarantee of directors -Mrs. Rita Mttal, Mr. Vinay Mittal and Mr. Atul Mittal.

4. CONTINGENT LIABILITIES

(a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/- , Rs.4080705/- & Rs.1353174/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003-04, A.Y.2007-08 & A.Y. 2012-13 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/ Delhi High Court.

5 .GUARANTEES

The company has guaranteed a sum of Rs. 77,384 Lacs (Previous Year Rs. 73,841 Lacs) against secured Loans taken by SSA International Ltd. from financial institutions; these are wholly owned subsidiaries of the Company.

6. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

7. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

8. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

9. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

10 OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations.

(iv) Security deposit includes Rs.18,57,055/- (Previous Year Rs. 16,81,708/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

11. PREVIOUS YEAR FIGURES

The Company has regrouped/reclassified the previous year figures to make them comparable with current year figures.


Mar 31, 2014

NOTE 1 : OTHER NOTES

A. CONTINGENT LIABILITIES

a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/-, & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y. 2003-04, & A.Y.2007-08 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/Delhi High Court.

b) GUARANTEES

The company has guaranteed a sum of Rs. 73,841 Lacs (Previous Year Rs. 59,360 Lacs) & Rs.NIL (Previous Year Rs. 575 Lacs) against secured Loans taken by SSA International Ltd. & Sam Buildcon Ltd. respectively from financial institutions; these are wholly owned subsidiaries of the Company.

B. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

I. As per actuarial valuations as on 31st March 2014 and recognized in the financial statement in respect of employee benefit schemes :-

C. RELATED PARTY DISCLOSURES

I. Related Parties with Whom Transactions have been Taken Place and Relationships.

Name of the Parties Relationship

1. SSA International Ltd. Wholly Owned Subsidiary Co.

2. Sam Buildcon Ltd. Wholly Owned Subsidiary Co.

3. Samtex Foundation Associated concern

II. Related Parties with Whom Transactions have been Taken Place and Nature of Transactions (Amount INR)

D. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

Segment Assets and Segment Liabilities represent Assets and Liabilities in Respective segments.

As per Accounting Standard on Segment Reporting As -17, prescribed by Companies (Accounting Standard) Rules 2006, The Company has reported segment information.

E. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

L. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and

Medium Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

M. OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations.

(iv) Security deposit includes Rs.18,57,055/- (Previous Year Rs. 16,81,708/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

(v) The Gross Block for the current year does not include the Fixed Assets situated at the trading office in New York, accordingly no depreciation has been charged on the same. (previous year depreciation Rs.44,588).

N. PREVIOUS YEAR FIGURES

The Company has regrouped/reclassified the previous year figures to make them comparable with current year figures.


Mar 31, 2013

A. CONTINGENT LIABILITIES

a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/-, Rs.1205225/- , & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003- 04, & A.Y.2007-08 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest. All the above liabilities stands before the Appellate Authority/Delhi High Court.

b) GUARANTEES

The company has guaranteed a sum of Rs. 59360 Lacs (Previous Year Rs. 47,615 Lacs) & Rs.575 Lacs (Previous Year Rs. 575 Lacs) against secured Loans taken by SSA International Ltd. & Sam Buildcon Ltd. respectively from financial institutions; these are wholly owned subsidiaries of the Company.

B. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES

The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

C. SEGMENT REPORTING

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

Segment Assets and Segment Liabilities represent Assets and Liabilities in Respective segments.

D. IMPAIRMENT OF ASSETS

The Company has revised the future discounted cash flows based on value in use of fixed assets and is hopefully sure that the recoverable amount is more than the amount carried in the books. Accordingly, no provision is required to be made for the impairment in the accounts.

Note.* (i) The above installed capacity may vary in different types of garments are produced.

(ii) Licensed and installed capacity being technical matter are relied upon as certified by the management.

E. TRANSACTION WITH MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence necessary disclosures under this Act have not been given.

F. OTHERS

(i) Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

(ii) In the opinion of the directors, current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated .The provision for all the known liabilities is adequate and not in excess of the amount considered reasonably necessary.

(iii) The personal accounts of the parties are subject to their respective confirmations

(iv) Gross Block under Fixed Assets includes assets worth Rs.875,266/- (Previous year Rs.875,266/-) or equivalent to US$ 18536 (Previous Year US$ 18,536) situated at the Trading Office of the Company at New York.

(v) Security deposit includes Rs.16,81,708/- (Previous Year Rs. 15,75,064/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

(vi) During the year, The Company has made the preferential allotment of 50,00,000 Equity shares of Rs.28 per share(with Premium of Rs.18 per share) on 29th March, 2013. The Excess amount of Share Application money of Rs.4,75,317 received is pending for refund and same has been shown under the head "Other Current Liabilities".

G. PREVIOUS YEAR FIGURES

Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.


Mar 31, 2012

NOTE 1: CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

CASH AND CASH EQUIVALENTS

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid time deposits that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

NOTE 2 : OTHER NOTES

A. Contingent liabilities

a) No provision has been made in the books of accounts by the company for a sum of Rs.5902380/- Rs.1205225/- Rs.489296/- & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000- 01, A.Y.2003-04, A.Y.2006-07 & A.Y.2007-08 respectively, against which a sum of Rs 5859356/- Rs.1205225/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y.2003-04 & A.Y.2007-08 under protest.All the above liabilities have been disputed by the company before the Appellant Authority/Delhi High Court.

b) Guarantees

The company has guaranteed a sum of Rs. 47615 Lacs (Previous Year Rs. 42450 Lacs) & Rs.575 Lacs (Previous Year Rs. 575 Lacs) against secured Loans taken from financial institutions by SSA International Ltd. & Sam Buildcon Ltd. Respectively; wholly owned subsidiaries of the Company.

c) Other money for which the Company is contingently liable

Letters of Credit in foreign currency established for purchase of raw materials/ consumables and capital goods amounting to Rs.2,13,49,517 (Previous year Rs.180,20,122 ). The liability is converted into Rupees as per the exchange rate prevailing as on 31st March, 2012.

B. Fixed assets installed and put to use have been certified by the management and relied upon the by the auditors, being a technical matter.

D. Share Application Money Pending Allotment

As at 31 March 2012, the Company has received an amount of Rs.6,33,01,941 towards share application money towards equity shares of the Company at a premium of Rs. 18 per share. The share application money was received pursuant to an invitation to offer shares and in terms of such invitation, the Company is required to complete the allotment formalities by 31 March 2013. The Company has sufficient authorized capital to cover the allotment of these shares.

E. In the opinion of the directors current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated .The provision for all the known liabilities is adequate and not in excess of the amount considered Reasonably necessary.

F. The personal accounts of the parties are subject to their respective confirmations.

3 SEGMENT INFORMATION :-

The company has identified a geographical reportable segment viz M/S Samtex Fashions Ltd. New York. Segments have been identified and reported taking into account the Differing risk and returns and the Financial business reporting systems. The accounting Policies adopted for segment reporting are in line with the Accounting Policy of the Company. Except the Accounting period which is for the Segment is calendar year.

G. a) Gross Block under Fixed Assets includes assets worth Rs.875049/- (Previous year Rs.633,491/-) or equivalent to US$ 18536 (Previous Year US$ 13794) Situated at the Trading Office of the Company at New York.

b) Security deposit includes Rs.15,75,064/- (Previous Year Rs. 13,80,578/-) equivalent US$ 30920 (Previous Year US$ 30920) representing security given by the New York Trading Office of the company.

H. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES :

(A). The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement andmeasures each unit separately to build up the final obligation.

I. Micro, Small and Medium Enterprises

The Company has not received information from vendors regarding their status and status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence necessary disclosures under this Act have not been given.

J. Previous years figures have been regrouped and reclassified wherever necessary to make them comparable to those the current year, and have been rounded of to the nearest rupees.

K. Notes 1 to 32 form an integral part of the Financial Statements as at 31st March, 2012 and have been authenticated as such.


Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

a) Letters of Credit in foreign currency established for purchase of raw materials/ consumables and capital goods amounting to Rs.380,28,143/- (previous year Rs.203,57,338/- ) the liability is converted into Rupees as per the exchange rate prevailing as on 31st March, 2010.

b) The company has guaranteed a sum of Rs.31090 Lacs (Previous Year Rs. 23202 Lacs) against secured Loans taken from financial institutions by SSA International Ltd., a wholly owned subsidiary of the Company.

2. No provision has been made in the books of accounts by the company for a sum of Rs. 5902380/-, Rs.890698/- Rs.489296/ - & Rs.4080705/- for which the demand has been raised by the Income Tax Department for the A.Y. 2000-01, A.Y.2003- 04, A.Y.2006-07 & A.Y.2007-08 respectively, against which a sum of Rs 5859356/-, Rs. 8,90,698/- & Rs.40,00,000/- has already been paid for A.Y 2000-01, A.Y. 2003-04 & A.Y.2007-08 under protest. All the above liabilities have been disputed by the company before the Appellant Authority / Delhi High Court.

3. Fixed assets installed and put to use have been certified by the management and relied upon the by the auditors, being a technical matter.

4. In the opinion of the directors current assets, loans and advances are of the value stated if realized in the ordinary course of business except otherwise stated .The provision for all the known liabilities is adequate and not in excess of the amount considered Reasonably necessary.

5. The personal accounts of the parties are subject to their respective confirmations.

6. The assets of the company have not been impaired during the year as certified by the management of the company. The management has conducted the test of impairment of assets using the value-in-use method in accordance with the mandatory Accounting Standard -28 (AS 28) on impairment of Assets issued by the Institute of Chartered Accountants of India. For calculation of value-in-use, discount rate of 8% per annum is used being the average market rate of interest in the opinion of the management.

7. Related Party Disclosure : -

i.) List of the Related parties with whom transactions have taken place and the relationships :

s. No. Name of the Party Relationship

1. SSA International Limited Wholly Owned Subsidiary Co.

2. SAM Buildcon Limited Wholly Owned Subsidiary Co.

3. Samtex Foundation Key Personal Management of the

related party

8. a) Gross Block under Fixed Assets includes assets worth Rs.633,491/- (Previous year Rs.709,983/-) or equivalent to US$ 13794 (Previous Year US$ 15426) Situated at the Trading Office of the Company at New York.

b) Security deposit includes Rs.12,74,895/- (Previous Year Rs. 12,97,238/-) equivalent US$ 32017 (Previous Year US$ 32576) representing security given by the New York Trading Office of the company.

9. DEFINED BENEFIT PLANS/LONG TERM COMPENSATED ABSENCES :

(a). The employee gratuity fund & leave encashment scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

10. The company has adopted the accounting standard-15 (revised) i.e. employees benefits from the previous financial year for computation of gratuity & leave encashment. Hence, the excess provision of Rs.25,94,073/- on valuation of gratuity & leave encashment on 01.04.2008 written back to the reserve & surplus account.

(Please see Sch. II).

11. Advance recoverable (Schedule X) includes an amount of Rs.NIL (Previous Year Rs. 16,33,670/-) being Insurance claim receivable against theft of Honda CRV car. The insurance claim is settled during the financial year & short recovery of claim of Rs. 64010/- is debited to Loss on Theft of car (Schedule -XIX).

12. Sundry creditors (Schedule-XI) includes a disputed amount of Rs.9,97,202/- (Previous Year Rs.9,97,202/-) Payable to M/ s Ten Cate Permess Inc. The matter with party is pending before court.

13. The sales made by the company from its Delhi office is of goods are exempt from sales tax, hence no Registration under Sales Tax Act, is obtained.

14. The construction of Flats under Employees Housing Project Scheme has been completed during the Financial year 2009- 10.

15. Previous years figures have been regrouped and reclassified wherever necessary to make them comparable to those the current year, and have been rounded of to the nearest rupees.

16. Schedule I to XXII form an integral part of the Balance Sheet as at 31st March, 2010 and have been authenticated as such.

 
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