Home  »  Company  »  Sarla Performance Fi  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Sarla Performance Fibers Ltd.

Mar 31, 2015

1. Letter of credit: Letter of Credit issued by Banks on behalf of the Company Rs. 1,949.95 Lacs (P.Y. Rs. 1,873.46 Lacs), these are covered by the Charge created in favour of the Company's Bankers by way of Hypothecation of Stocks, Receivable & Machineries/Assets of the Company.

Stand-by Letter of credit issued by Banks on behalf of Sarlaflex, Inc, WOS of USD 9.00 millions (P.Y. USD 8.34 millions) equivalent to Rs. 5,633.10 lacs (P.Y. Rs. 5,013.91 lacs). i

2. Guarantees: Bank Guarantees issued by Banks on behalf of the company Rs. 523.40 Lacs (P.Y. Rs. 431.90 Lacs). These are secured by the charge created in favour of the company's bankers by way of pledge of Fixed Deposit Receipts.

3. The claim against Company not acknowledged as debt, comprises of excise duty & Custom duty disputed by company relating to issue of applicability of duty and classification of goods aggregating to Rs. 2,771.66 Lacs (P.Y. Rs. 2,771.66 Lacs).

4. Bill discounted not matured Rs. 1,560.01 Lacs (P.Y. Rs. 2,046.85 Lacs).

5. CST liability in respect of invoice amount of Rs. 2,105.47 Lacs (P.Y. Rs. 2,144.50) for which C-Form are yet to be collected from the customers.

6. Liability of Income Tax amounting to Rs. 13.17 Lacs for A.Y. 2003-04 for which part relief is granted by Honb'le ITAT, Mumbai but appeal effect is not given by assessing officer.

Liability of Income Tax amounting to Rs. 51.05 Lacs for A.Y. 2012-13 is mainly due to mistake by AO while passing order wherein credit for Dividend Distribution Tax was not granted and for which rectification application is filed by company for granting tax credit paid before assessing officer and same is not yet rectified.

NOTE 7:

The company has exercised option given in Companies (Accounting Standard) Amendment Rules 2009 on Accounting Standard 11 issued by ICAI which was notified by MCA regarding accounting of exchange rate difference related to foreign currency loan utilized for acquisition of fixed assets by way of notification no. GSR 225(E) dated 31.03.2009 read with notification no. GSR 913(E) dated 29.12.2011. On exercise of option referred above, foreign exchange gain of Rs. 194.55 lacs (P.Y. loss of Rs. 301.50 lacs) is adjusted in Fixed Assets during the year.

NOTE 8: DEPRECIATION:

Pursuant to the enactment of the Companies Act, 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated/ unamortized over the revised/ remaining useful lives. The written down value of fixed assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Reserves & Surplus amounting to 61.74 lacs.

NOTE 9:

The company has invested USD 4,35,000 equivalent to Rs. 183.22 Lacs for 100% share being 4,35,000 shares of Sarla Overseas Holding Limited registered at British Virgin Islands as a result the said company is Wholly Owned Subsidiary of the Company

The Company has also invested USD 9,89,000 equivalent to Rs. 596.50 Lacs for 100% share being 989000 shares of Sarlaflex, Inc registered at USA as a result the said company is Wholly Owned Subsidiary of the Company.

NOTE 10:

Managing Director's remuneration is Rs. 96.00 Lacs (P.Y. Rs. 66.00 Lacs) & the whole time Director's remuneration is Rs. 80.00 Lacs (P.Y. Rs. 62.00 Lacs) is in accordance with section 197(12) of the Companies Act, 2013 read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

NOTE 11: TAXATION:

Provision for taxation for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

In accordance with AS-22 issued by the Institute of Chartered Accountants of India on 'Accounting of Taxes on Income' net deferred tax income on account of timing difference for current year is Rs. 33.26 lacs (P.Y. expense of Rs. 105.15 lacs) which is credited to statement of profit and loss.

NOTE 12: RELATED PARTY TRANSACTIONS:

The Company has identified following related parties with whom transactions have taken place during the year:

1) Associates

M/s Satidham Industries Private Ltd. M/s Hindustan Cotton Co.

2) Key Management Personnel & their Relatives

Madhusudan Jhunjhunwala - Chairman

Krishna Jhunjhunwala - Managing Director

Neha Jhunjhunwala - Relative

(Appointed as woman director w.e.f. 31st March 2015)

3) Joint Ventures of Subsidiary Company

Savitex SA De C.V., Honduras

MRK SA De C.V., Honduras

Sarla Tekstil Filament Sanayi Ticaret A.S.

4) Subsidiary and step down subsidiary Companies

M/s Sarla Overseas Holding Ltd. - Subsidiary company

M/s SarlaFlex Inc - Subsidiary company

M/s Sarla Europe, Lda - Step down subsidiary company

NOTE 13: DERIVATIVE INSTRUMENTS:

The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes

NOTE 14:

The company is of the view that there are no indications of material impairment and the carrying amount of its fixed assets or where applicable, the cash generating unit to which these assets belong,

do not exceed their recoverable amounts (i.e., the higher of the assets' net selling price and value in use). Hence, no impairment had arisen during the year as per the recommendations of the Accounting Standard - 28 on Impairment of Assets.

NOTE 15:

In the opinion of the Management, the Current Assets and Loans and Advances as shown in the books are expected to realize at their Book Value in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE 16:

During the year, Company has paid Rs. 16,30,00,000/- to the official liquidator for purchase of property at Dadra as per order of Humble High Court of Bombay. However the conveyance deed is not executed till the year end and therefore aforesaid amount is disclosed as advance paid for property at Dadra under the head 'Long Term Loans & Advances' in note no 11.

NOTE 17:

Certain balances under the heads Sundry Debtors, Loans & Advances and Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE 18:

The company has reclassified/rearranged/regrouped previous year figures to conform to this year's classification.


Mar 31, 2013

NOTE 1: CONTINGENT LIABILITIES NOT PROVIDED FOR

A. CONTINGENT LIABILITIES

1. Letter of credit: Letter of Credit issued by Banks on behalf of the Company Rs. 1115.26 Lacs (P.Y. Rs. 2493.31 Lacs), these are secured by the Charge created in favour of the Company''s Bankers by way of Hypothecation of Stocks, Receivable & Machineries/Assets of the Company

Stand-by Letter of credit issued by Banks on behalf of Sarlaflex, Inc, WOS of USD. 3.00 millions equivalent to Rs. 4281.60 lacs.

2. Guarantees: Bank Guarantees issued by Banks on behalf of the company Rs. 359.90 Lacs (P.Y. Rs. 371.68 Lacs). These are secured by the charge created in favour of the company''s bankers by way of pledge of Fixed Deposit Receipts.

3. The claim against Company not acknowledged as debt, comprises of excise duty & Custom duty disputed by company relating to issue of applicability of and classification of goods aggregating to Rs. 2325.53 Lacs (P.Y. Rs. 2201.97 Lacs).

4. Bill discounted not matured Rs. 944.14 Lacs (P.Y. Rs. 2007.36 Lacs).

The contingent liabilities in respect of Bank Guarantees and other matters arising in the ordinary course of business frommmhich it is anticipated that no material liabilities will arise.

5. CST liability in respect of invoice amount of

Rs. 4304.85 Lacs (P.Y. Rs. 5705.22) for which C-Form are yet to be collected from the customers.

B. Liability of Income Tax with respect to which appeal is pending before ITAT amounting to Rs. 13.17 Lacs for A.Y 2003-04, and appeals pending before CIT Appeal for Rs. 4.27 Lacs for A.Y. 2010-11.

NOTE 2:

The company has exercised option given in Companies (Accounting Standard) Amendment Rules 2009 on Accounting Standard 11 issued by ICAI which was notified by MCA regarding accounting of exchange rate difference related to foreign currency loan utilised for acquisition of fixed assets by way of notification no. GSR 225(E) dated 31.03.2009 read with notification no. GSR 913(E) dated 29.12.2011. On exercise of option referred above, foreign exchange gain of Rs. 46.27 lacs (P.Y. Loss of Rs. 121.70 lacs) is adjusted in Fixed Assets during the year.

NOTE 3: DEPRECIATION

A : The depreciation for the year has been provided on "straight line method"as per Section 205 (2) of the Companies Act, 1956 at the rates prescribed in schedule XIV thereto.

B: Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

C: Intangible assets represents the cost of computer software acquired for internal use, to be amortized equally over five years based upon their estimated useful lives.

NOTE 4:

The company has invested USD 4,35,000 equivalent to Rs. 183.22 Lacs for 100% share being 4,35,000 shares of Sarla Overseas Holding Limited registered at British Virgin Islands as a result the said company is Wholly Owned Subsidiary of the Company & during the year also invested USD 1,00,200 equivalent to Rs. 54.91 Lacs for 100% share being 1,00,200 shares of Sarlaflex, Inc registered at USA as a result the said company is Wholly Owned Subsidiary of the Company.

NOTE 5:

Managing Director''s remuneration is Rs. 54.00 Lacs (P.Y. Rs. 42.00

Lacs) & the whole time Director''s remuneration is Rs. 40.00 Lacs ( P.Y.Rs.34.00 Lcs) is in accordance with section 198 schedule XIII of the Companies Act. 1956.

NOTE 6: TAXATION

Provision for taxation for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

In accordance with AS-22 issued by the Institute of Chartered Accountants of India on ''Accounting of Taxes on Income'' net deferred tax expenses on account of timing difference for current year is Rs. 277.09 lacs (P.Y. Rs. 200.25 lacs) which is charged to Statement of Profit and Loss.

NOTE 7:

Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises Development Act, 2006, hence it is not possible for us to verify the amount due to such enterprises.

NOTE 8: SEGMENT REPORT

A) Information about Primary Business Segment: Based on

the guiding principles given in the Accounting Standards on Segment Reporting (AS-17) the company is primarily in the business of manufacturing and processing of synthetic yarn which mainly having similar risk and returns. The Company has diversified its activities into Wind Power Generation, hence the company''s business activity now falls under two business segments, viz. (i) Manufacturing of Yarn and (ii) Generation of Wind Power.

B) Information about Secondary Geographical Segment:

The secondary segment is based on geographical demarcation i.e. in India and out side India.

NOTE 9: RELATED PARTY TRANSACTIONS

The Company has identified following related parties with whom transactions have taken place during the year:

1) Associates

M/s Satidham Industries Private Ltd.

M/s Hindustan Cotton Co.

M/s. Shivchandrai Jhunjhunwala & Co.

2) Key Management Personnel & their relatives Madhusudan Jhunjhunwala - Chairman Krishna Jhunjhunwala - Managing Director

Neha Jhunjhunwala - Relative

3) Joint Ventures of Subsidiary Company Savitex SA De C.V., Honduras

MRK SA De C.V., Honduras

Sarla Tekstil Filament Sanayi Ticaret A.S.

4) Subsidiary Companies

M/s Sarla Overseas Holding Ltd.

M/s Sarlaflex Inc.

M/s Sarla Europe, Lda

NOTE 10: DERIVATIVE INSTRUMENTS

The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

NOTE 11:

The company is of the view that there are no indications of material impairment and the carrying amount of its fixed assets or where applicable, the cash generating unit to which these assets belong, do not exceed their recoverable amounts (i.e., the higher of the assets'' net selling price and value in use). Henc, no impairment had arisen during the year as per the recommendations of the Accounting Standard - 28 on Impairment of Assets.

NOTE 12:

In the opinion of the Management, the Current Assets and Loans and Advances as shown in the books are expected to realise at their Book Value in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE 13:

Certain balances under the heads Sundry Debtors, Loans & Advances and Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE 14:

The company has reclassified/rearranged/regrouped previous year figures to conform to this year''s classification.


Mar 31, 2012

Terws/rights attached to Equity Shares: The company has only one class of equity s hares having par value of Rs. 10. Each holder of equity shares is entitled to one vote per share. The cowpnay delcares and pays dividend 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 2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 5.00 (31 st March 2011 Rs. 4.50)

In the event of liquidation of the company, the holders of the equity shares will be entitled to reecive 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.

NOTE 1: CONTINGENT LIABILITIES NOT PROVIDED FOR AND CAPITAL COMMITMENTS

A. CONTINGENT LIABILITIES

1. Letter of credit: Letter of Credit issued by Banks on behalf of the Company Rs. 2,493.31 Lacs (P.Y. Rs. 3,345.71 Lacs), these are covered by the Charge created in favour of the Company s Bankers by way of Hypothecation of Stocks, Receivable & Machineries/Assets of the Company.

2. Guarantees: Bank Guarantees issued by Banks on behalf of the company Rs. 371.68 L acs (P.Y. Rs. 361.69 L acs). These are secured by the charge created in favour of the company s bankers by way of pledge of Fixed Deposit Receipts.

3. The claim against Company not acknowledged as debt, comprises of excise duty & Custom duty disputed by company relating to issue of applicability of duty and classification of goods aggregating to Rs. 2,201.97 L acs (P.Y. Rs. 1,891.72 L acs).

4. Bill discounted not matured Rs. 2007.36 Lacs (P.Y. Rs. 1022.5 Lacs).

The contingent liabilities in respect of Bank Guarantees and other matters arising in the ordinary course of business from which it is anticipated that no material liabilities will arise.

5. CST liability in respect of invoice amount of Rs. 3069.57 Lacs (P.Y. Rs. 2518.59) for which C-Form are yet to be collected from the customers.

6. Liability of Income Ta x with respect to which appeal is pending before ITAT amounting to Rs. 13.17 Lacs for A.Y. 2003-04, and appeals pending before CIT Ap peal for Rs. 6.28 Lacs for A.Y. 2009-10

B. CAPITAL COMMITMENTS

Estimated amounts of contracts remained to be executed on capital account net of advance at the end of the year Rs. 18.14 Lacs (P.Y. Rs. 59.91 Lacs).

NOTE 2

The company has exercised option given in Companies (Accounting Standard) Amendment Rules 2009 on Accounting Standard 11 issued by ICAI which was notified by MCA regarding accounting of exchange rate difference related to foreign currency loan utilised for acquisition of fixed assets by way of notification no. GSR 225(E) dated 31.03.2009 read with notification no. GSR 913(E) dated 29.12.2011. On exercise of option referred above, foreign exchange loss of Rs. 121.70 lacs is capitalised during the year.

NOTE 3! DEPRECIATION

A ! The depreciation for the year has been provided on straight line method as per Section 205 (2) of the Companies Act, 1956 at the rates prescribed in schedule XIV thereto.

B! Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basic according to the period during which assets are put to use.

C! Intangible assets represents the cost of computer software acquired for internal use, to be amortized equally over five years based upon their estimated useful lives.

NOTE 4

The company has invested USD 4,35,000 equivalent to Rs. 183.22 L acs for 100% share being 4,35,000 shares of Sarla Overseas Holding Limited registered at British Virgin I slands as a result the said company is W holly Owned Subsidiary of the Company.

NOTE 5

Managing Director s remuneration is Rs. 42.00 L acs (P.Y. Rs. 39.00 Lacs ) & th e whole time Director s remuneration is Rs. 34.00 L acs ( P.Y. Rs.27.00 Lacs) is in accordance with section 198 schedule XIII of the Companies Act. 1956.

NOTE 6! TAXATION

Provision for taxation for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

In accordance with AS-22 issued by the Institute of Chartered Accountants of India on Accounting of Taxes on Income net deferred tax expenses on account of timing difference for current year is Rs. 200.25 lacs (P.Y. Rs. 269.12 lacs) which is charged to profit and loss account.

NOTE 7! SEGMENT REPORT

A) Informotion obout Primory Business Segment! Based on the guiding principles given in the Accounting Standards on Segment Reporting (AS-17) the company is primarily in the business of manufacturing and processing of synthetic yarn which mainly having similar risk and returns. The Company has diversified its activities into wVind Power Generation, hence the companys business activity now falls under two business segments, viz. (i) Ma nufacturing of Yarn and (ii) Generation of wVind P ower.

B) Informotion obout Secondory Geogrophicol Segment! The secondary segment is based on geographical demarcation i.e. in India and out side India.

NOTE 8: RELATED PARTY TRANSACTIONS

The Company has identified following related parties with whom transactions have taken place during the year!

1) Associates

M/s Satidham Industries Private Ltd.

M/s Hi ndustan Cotton Co.

M/s. Shivchandrai Jhunjhunwala & Co.

2) Key Management Personnel

M adhusudan Jhunjhunwala - Chairman Krishna Jhunjhunwala - Managing Director

3) Joint Ven tures of Subsidiary Company Savitex SA De C.V., H onduras

MRK SA De C.V., Honduras

Sarla Tekstil Filament Sanayi Ticaret A.S.

4) Subsidiary Companies

M/s Sarla O verseas Holding Ltd.

5) Subsidiary of subsidiary Company M/s Sarla Europe, Lda

NOTE 9: DERIVATIVE INSTRUMENTS

The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

NOTE 10

The company is of the view that there are no indications of material impairment and the carrying amount of its fixed assets or where applicable, the cash generating unit to which these assets belong, do not exceed their recoverable amounts (i.e., the higher of the assets net selling price and value in use). Hence, no impairment had arisen during the year as per the recommendations of the Accounting Standard - 28 on Impairment of Assets.

NOTE 11

In the opinion of the (Management, the Current Assets and Loans and Advances as shown in the books are expected to realise at their Book Va lue in the normal course of business and adequate provision have been made in respect of all known liabilities.

NOTE 12

Certain balances under the heads Sundry Debtors, Loans & Advances and Sundry Creditors are subject to confirmations from the respective parties and consequential reconciliation, if any.

NOTE 13

Till the year ended 31 st M arch 2011 , the company was using pre- revised schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31 st M arch 2012, the revised Schedule VI notified under the Companies Act, 1956 has b ecome applicable to the company. The company has reclassified previous year figures to conform to this year s classification.


Mar 31, 2010

1. A: CONTINGENT LIABILITIES NOT PROVIDED FOR:

A. Letter of credit: Letter of Credit issued by Banks on behalf of the Company Rs. 2,01 6.74 Lacs (RY. Rs. 2,519.1 6 Lacs) these are covered by the Charge created in favour of the Companys Bankers by way of Hypothecation of Stocks, Receivable & Machineries.

B. Guarantees: Bank Guarantees issued by Banks on behalf

of the Company Rs. 345.79 Lacs (R Y. Rs. 232.11 Lacs). These are secured by the charge created in favour of the Companys bankers by way of pledge of Fixed Deposit Receipts.

C. The claim against Company not acknowledged as debt, comprises of excise duty & Customs duty disputed by company relating to issue of applicability and classification aggregating to Rs. 1,845.23 Lacs (RY. Rs. 1,769.90 Lacs).

D. Bill discounted not matured Rs. 1,073.45 Lacs (R Y. Rs. 1,256.28 Lacs). The contingent liabilities in respect of Bank Guarantees and other matters arising in the ordinary course of business from which it is anticipated that no material liabilities will arise.

E. CST liability in respect of invoice amount of Rs. 1,559.08 Lacs for which C-Form are yet to be collected from the customers.

F. Liability of Income Tax with respect to which appeal is pending before CIT (Appeals) amounting to Rs. 22.77 Lacs for A.Y 2003-04 and Rs. 9.93 Lacs for A. Y. 2007-08

2. B: Estimated amount of contracts remained to be executed

on capital account net of advance at the end of the year Rs. 47.1 7 Lacs ( R Y. Rs. 194.33 Lacs)

3. DEPRECIATION:

A: The depreciation for the year has been provided on "straight line method" as per Section 205 (2) of the Companies Act, 1956 at the rates prescribed in Schedule XIV thereto.

Among their advantages, wind farms are scalable: when more electricity is needed for the market place, more windmills can be added. In fact, windmills can be built and installed within 2 months. during the year is provided on pro rata basic according to the period during which assets are put to use.

C: Intangible assets in represents the cost of computer software acquired for internal use, to be amortised equally overfive years based upon their estimated useful lives.

1. A: The Company has invested USD 4,35,000 equivalent to Rs. 183.22 Lacs for 100% share being 4,35,000 shares of Sarla Overseas Holding Limited registered at British Virgin Islands as a result the said company is Wholly Owned Subsidiary of the Company.

B: The Company has an investment of Rs. 61.40 lacs (equivalent to USD 135,000) in 2,700 shares of M/s. Savitex SA De C.V, Honduras, which the company has sold during the year.

C: No provision is made for the interest of Rs. 8.99 Lacs for Unsecured Loan given, to Sarla Overseas Holdings Limited, a wholly owned subsidiary of the Company. Hence profit of the current year is understated to this extent.

D. Sarla Overseas Holdings Limited, a wholly owned subsidiary of the Company has further acquired 2,700 shares of Savitex SA De C.V. during the year, due to which the its shareholding in Savitex SA De C.V. has increased to 1 6,000 Shares out of total capital of 40,000 shares of the said Savitex SA De C.V.

4. Managing Directors remuneration is Rs. 30.00 Lacs (RY Rs. 22.50 lacs) & the whole time Directors remuneration is Rs. 20.00 Lacs ( RY. Rs. 17.00 lacs) is in accordance with Section 198 Schedule XIII of the Companies Act, 1956.

5. The Excise and Custom Authority has passed certain adjudication orders in earlier years against the company relating to classification of excisable goods, determination of rate of duty and non compliance of parameters decided for 100% EOU. Due to these orders the demand of excise and Custom has been raised to the extent of Rs. 543.07 Lacs (RY. Rs. 816.45 Lacs). The Company has appealed against the said orders and based on the various decisions of the appellate authorities and the interpretations of order and relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

6. There are no outstanding Forward Contracts as on 31st March 2010.

7. TAXATION:

A: Provision for taxation for the current year has been made, taking into consideration benefits admissible underthe provisions of the Income Tax Act, 1961.

B: In accordance with AS-22 issued by the Institute of chartered Accountants of India on Accounting of Taxes on Income net deferred tax liability on account of timing difference for current year is Rs. 70.20 Lacs (RY. Rs. 60.76 Lacs) is charged to profit arid loss account.

8. RELATED PARTY TRANSACTIONS:

The Company has transactions with following related parties:

1) Associate Cos.

a) M/s. Satidham Industries Pvt. Ltd.

b) M/s. Sarla Estate Developers Pvt. Ltd.

c) M/s. Hindustan Cotton Co.

d) M/s. Hindustan Synthetics

e) M/s. Shivchandrai Jhunjhunwala & Co.

f) Te.chnofil Honduras, SA De C.V.

2) Key Management Personnel

a) Madhusudan Jhunjhunwala - Chairman

b) Krishna Jhunjhunwala - Managing Director

3) Joint Ventures

a) M/s. Savitex SA De C. V, Honduros

4) Subsidiary Company

a) M/s. Sarla Overseas Holding Ltd.

b) M/s. Sarla Europe, Lda

9. SEGMENT REPORTING:

a) Primary Segment (by Business Segment):

Based on the guiding principles given in the Accounting Standards on Segment Reporting (AS-1 7) the Company is primarily in the business of manufacturing and processing of synthetic yarn which mainly have similar risk and returns and during the year, the Company has diversified its activities into Wind Power Generation, hence the companys business activity now fails under two business segments.

b) Secondary Segment (By Geographical demarcation)

1) The secondary segment is based on geographical demarcation i.e. in India and outside India.

c) Information about primary and secondary segment

10. Company does not have complete information to determine Micro, Small and Medium Enterprises as specified in Micro, Small and Medium Enterprises Development Act. 2006, hence it is not possible for us to verify the amount due to such enterprises.

11. Pursuant to the approval of members by way of Special ;

Resolution passed at Extra-Ordinary General Meeting of the Company heid on 26th March, 2008, the Company had allotted 12,00,000 warrants on 10th April 2008, with an option to subscribe to share capital of the Company, the options lapsed on 9th October, 2009. No Subscriber of the warrant exercised the option of conversations of warrants into Shares, uptil 9th October, 2009, when option lapsed, hence the money received on application amounting to Rs. 1 82.40 Lacs isforefieted and transferred to Capital Reserve.

12. During the year, the Company has delivered its activities into Wind Power Generation and in this regard the Company has passed the Special Resolution in Extra Ordinary General Meeting held on 06th March, 2010 for modification in the object clause of Memorandum of Association. The Company has invested Rs. 633.46 Lacs for installation of Wind Turbine Generator at Baradia site, Dist. Jamnagar in Gujarat and Wind Power Plant was successfully commissioned on 30-03-2010.

13. Previous years figures have been regrouped/rearranged wherever necessary.

14. The balance sheet abstract & companys general business profile as required by part IV of Schedule VI to the Companies Act, 1956 are given in the annexure.



 
Subscribe now to get personal finance updates in your inbox!