Home  »  Company  »  SEL Manufacturing Co  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of SEL Manufacturing Company Ltd.

Mar 31, 2015

1. The outstanding balances as at March 31, 2015 in respect of some of the Trade Receivables and trade payables are subject to confirmation from the respective parties and consequent reconciliation/adjustments arising there from, if any. The management however, does not expect any material difference affecting the financial statements for the year.

2. In opinion of the Board, all the current assets, loans & advances have the value on realization in the ordinary course of business at-least equal to amount at which they are stated.

3. Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing from April 1, 2014, the Company has recalculated the remaining useful life of fixed assets in accordance with the provisions of Schedule II to the Act. In case of fixed assets which have already completed their useful life in terms of Schedule II of the Act, the carrying value (net of deferred tax) of Rs. 18,784,495/- of such assets as at April 1, 2014 has been adjusted to Retained Earnings and in case of other fixed assets the carrying value (net of residual value) is being depreciated as per method over the re-calculated remaining life. The depreciation expense charged for the year ended March 31, 2015 would have been lower by Rs. 87.51 crores, had the Company continued with the previously prescribed depreciation rates as per Schedule-XIV of the Companies Act, 1956.

4. There are no long term contracts as on 31.03.2015 including derivative contracts for which there are any material foreseeable losses.

5. During the year 2013-14 the Company had identified non-moving, slow moving, obsolete and damaged inventory in finished goods. An aggregate amount of Rs. 180.94 crores was recognizes as reduction in value of inventories due to write down thereof to net realizable value by charging to Profit & Loss Statement as an exceptional item.

6. Earnings Per Share

The calculation of Earnings per Share as disclosed in the statement of Profit & Loss has been in accordance with Accounting Standard (AS)-20 on "Earning per Share" issued by the Institute of Chartered Accountants of India.

7. Segment Reporting

Segment Information as required by Accounting Standard (AS)-17 on Segment Reporting, issued by Companies (Accounting Standards) Rules 2014, has been compiled on the basis of the consolidated financial statements and is disclosed in the notes to accounts forming part of the consolidated financial statements in accordance with the above standard. Therefore segment information in respect of separate financial statements of the company is not being disclosed in the stand alone financial statements.

8. The Company followed an aggressive growth path in the last ten years, it had considerably grown its balance sheet, including debt. Due to the industry situation in general viz. slowdown and company specific issues such as growing debt, delayed realization of debtors, working capital shortfall, delay in project completion and cash flow mismatch, which had adversely affected the liquidity position of the company, the company was facing financial problems and finding difficulty in servicing its debt obligation. Therefore, it approached the lenders for restructuring its debts under Corporate Debt Restructuring (CDR) mechanism.

During the year, the Company's proposal for restructuring of its debts was approved by Corporate Debt Restructuring Cell ("CDR Cell") vide Letter of Approval (LOA) dt. 30.06.2014. The cut-off date (COD) for implementation of CDR was 30th September, 2013. The Company executed Master Restructuring Agreement (MRA) with CDR Lenders on 24th September, 2014. The details of the Restructuring package as approved by CDR cell are as under:

a) Restructuring of repayment schedule for term loans under Technology Upgradation Funds Scheme (TUFS) and Non-TUFS Term Loans, reduction in interest rates, additional facilities in the form of Working Capital Term Loan (WCTL) & Funded Interest Term Loan (FITL).

b) The promoters to bring contribution equivalent to 25% of the sacrifice amount of by lenders. Accordingly, promoters have brought in an amount of Rs. 69.71 crores as 1% Redeemable, Non-Cumulative, Non-Convertible Preference Shares.

c) Lenders with the approval of CDR EG shall have the right to recompense the reliefs/sacrifices/waivers extended by respective CDR lenders as per the CDR guidelines. The recompense payable is contingent on various factors including improved performance of the Company and many other conditions, the outcome of which is currently materially uncertain. Tentative recompense amount comes to Rs. 129.51 crores.

9. Prior year amounts have been reclassified wherever necessary to conform with current year presentation.

10. During the year the company has transferred the unclaimed dividend for the year 2007-08 amounting to Rs. 28,348/- to the Investor Education and Protection Fund.


Mar 31, 2014

Corporate Information

SEL Manufacturing Co. Limited is a public company incorporated in India under the provisions of the Companies Act, 1956. The Company is engaged in the manufacturing, processing & trading of yarn, fabric, readymade garments and towel.

1. Contingent Liabilities

There are contingent liabilities in respect of the following items: No outflow is expected in view of the past history relating to these items:-

(Rs. In Crores)

Particulars March 31, 2014 March 31, 2013

i) Export Bills Discounted 43.65 127.09

ii) Estimated amount of capital contracts remaining to be executed net of advances 41.51 71.95

iii) Guarantees given by the Company on behalf of SEL Textiles Ltd. (Subsidiary Company) 1487.55 1487.55

iv) Income Tax* 0.53 -

v) Performance Guarantees issued for export obligations 495.61 1088.43

vi) Others (Net of deposit of Rs. 0.07 crores (Previous Year Rs. 0.07 crores) against the said demand, contested in appeal. 0.07 0.07

(vi) During the year under audit, the Income Tax authorities carried out search & seizure action u/s. 132(1) of the Income Tax Act, 1961 on the Company, its promoters and some other companies/entities. The consequential assessment proceedings are in progress. Pending these proceedings, no provision has been made in the books for additional liability (amount presently not ascertainable) for tax, interest and penalty, if any.

''includes demand from tax authorities for various matters. The Company/tax department has preferred appeals on these matters and the same are pending with various appellate authorities. Considering the facts of the matters, no provision is considered necessary by management.

2. The Company has initiated the process of identifying non-moving, slow moving, obsolete and damaged inventory in finished goods during the year, which was concluded at the close of the year. The company has recognized an aggregate amount of Rs. 180.94 crores as reduction in value of inventories due to write down thereof to net realizable value, which is charged to Profit & Loss Statement as an exceptional item.

3. The outstanding balances as at March 31, 2014 in respect of some of the Trade Receivables and trade payables are subject to confirmation from the respective parties and consequent reconciliation/adjustments arising there from, if any. The management however, does not expect any material difference affecting the financial statements for the year.

4. In opinion of the Board, all the current assets, loans & advances have the value on realization in the ordinary course of business at-least equal to amount at which they are stated.

5. There are no outstanding forward exchange contracts.

6. Segment Reporting

Segment Information as required by Accounting Standard (AS)-17 on Segment Reporting, issued by Companies (Accounting Standards) Rules 2006, has been compiled on the basis of the consolidated financial statements and is disclosed in the notes to accounts forming part of the consolidated financial statements in accordance with the above standard. Therefore segment information in respect of separate financial statements of the company is not being disclosed in the stand alone financial statements.

7. The Company followed an aggressive growth path in the last ten years, it had considerably grown its balance sheet, including debt. Due to the industry situation in general viz. slowdown and company specific issues such as growing debt, delayed realisation of debtors, working capital shortfall, delay in project completion and cash flow mismatch, which had adversely affected the liquidity position of the company, the company was facing financial problems and finding difficulty in servicing its debt obligation. Therefore, it had approached the lenders for restructuring its debts under Corporate Debt Restructuring (CDR) mechanism. The Corporate Debt Restructuring (CDR) package will help the company in coming out of the financial problem and enable it to service debt/ interest obligations in terms of the package. A Joint Lenders Meeting (JLM) was held on November 06, 2013 wherein it was decided to refer the case to the Corporate Debt Restructuring (CDR) Forum to restructure the Company''s debt in order to get through the present phase of industry-wide liquidity crunch.

The Board of Directors of the Company in its Meeting held on November 14, 2013 had accorded its approval for restructuring of the debts of the Company under Corporate Debt Restructuring (CDR) Mechanism of the Reserve Bank of India. Corporate Debt Restructuring Empowered Group (CDREG) in its meeting held on February 17, 2014 admitted the Company under CDR.

8. The Company on June 9, 2012 had allotted 72,900,000 equity warrants on preferential basis, carrying an option to the holder of such warrants to subscribe to one equity share of Rs. 10 at a premium of Rs. 2 per share for every warrant held, which can be converted into equity shares within 18 months from the date of allotment i.e. anytime before December 8, 2013 in terms of SEBI (DIP) Guidelines read with SEBI (Issue of Capital & Disclosure Requirements) Regulation, 2009. The holders of equity warrants have not exercised their right of conversion within the stipulated period of 18 months from the date of allotment. Accordingly, the said warrants stand forfeited and the application money received of Rs. 21.87 crores received there against has been transferred to Capital Reserve.

9. Prior year amounts have been reclassified wherever necessary to conform with current year presentation.


Mar 31, 2013

1. Corporate Information

SEL Manufacturing Co. Limited is a public company incorporated in India under the provisions of the Companies Act, 1956. The Company is engaged in the manufacturing, processing & trading of yarn, fabric, readymade garments and towel.

2. Contingent Liabilities

There are contingent liabilities in respect of the following items: No outflow is expected in view of the past history relating to these items:-

(Rs. In Crores)

Particulars March 31, 2013 March 31, 2012

(i) Export Bills Discounted 127.09 20.38

(ii) Estimated amount of capital contracts remaining to be executed net of advances 71.95 238.11

(iii) Guarantees given by the Company on behalf of SEL Textiles Ltd. (Subsidiary Company) 1487.55 1487.55

(iv) Performance Guarantees issued for export obligations 1088.43 1381.92

(v) Others (Net of deposit of Rs. 0.07 crores (Previous Year Rs. Nil crores) against the said demand, contested in appeal. 0.07 -

3. Earnings Per Share

The calculation of Earnings per Share as disclosed in the statement of Profit & Loss has been in accordance with Accounting Standard (AS)-20 on "Earning per Share" issued by Companies (Accounting Standards) Rules, 2006.

A statement on calculation of Basic & Diluted EPS is as under:

4. The outstanding balances as at 31st March, 2013 in respect of Sundry Debtors and Creditors are subject to confirmation from the respective parties and consequent reconciliation/adjustments arising there from, if any. The management however, does not expect any material variation.

5. In opinion of the Board, all the current assets, loans & advances have the value on realization in the ordinary course of business at-least equal to amount at which they are stated.

6. Expenses on issue of Global Depositary Receipts (GDRs) and increase in authorized capital are being adjusted against Securities Premium Account as permitted by the Section 78 of the Companies Act.

7. There are no outstanding forward exchange contracts.

8. Segment Information as required by Accounting Standard (AS)-17 on Segment Reporting, issued by Companies (Accounting Standards) Rules 2006, has been compiled on the basis of the consolidated financial statements and is disclosed in the notes to accounts forming part of the consolidated financial statements in accordance with the above standard. Therefore segment information in respect of separate financial statements of the company is not being disclosed in the stand alone financial statements.

9. The Company has purchased, through auction by Official Liquidator, the assets of a closed unit namely, Mangla Cotex Limited for Rs. 6.70 Crores. However, so far the Company has paid Rs. 1.675 Crores as advance for property, which has been shown under Capital Advances, and the possession of the same would be taken only after the confirmation of auction by the High Court.

10. The Company has issued Global Depositary Receipts (GDRs) at the rate of USD 19.6429 per GDR amounting to Rs. 241.64 crores (USD 43,214,380). The funds have been used for the purpose for which these were raised during the year.

11. The Company on June 9, 2012 had issued 72,900,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs. 10 at a premium of Rs. 2 per share for every warrant held, which can be converted into equity shares within 18 months from the date of allotment i.e. anytime before December 8, 2013. Against these outstanding warrants as on March 31, 2013, an amount of Rs. 21.87 crores i.e. 25% of Rs. 12 per warrant has been received by the Company.

12. Capital Work in Progress includes, Project and Pre-operative Expenses pending allocation to fixed assets:

13. The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard (AS15) are as under:

a. Gratuity

The principal assumptions used in actuarial valuation of gratuity are as below:

b. Provident Fund

During the year the company has recognized an expense of Rs. 59,055,884/- (Previous Year Rs. 34,706,164/-) towards provident fund scheme.

c. Leave Encashment

During the year the company has recognized an expense of Rs. 14,435,050/- (Previous Year Rs. 5,216,533/-).


Mar 31, 2012

1. Corporate Information

SEL Manufacturing Co. Limited is a public company incorporated in India under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange. The Company is engaged in the manufacturing, processing & trading of yarn, fabric, readymade garments and towel.

2. Contingent Liabilities

There are contingent liabilities in respect of the following items: No outflow is expected in view of the past history relating to these items:-

(Rs.In Crores) Particulars March 31,2012 March 31,2011

(i) Export Bills Discounted 20.38 18.81

(ii) Estimated amount of capital contracts remaining to be

executed net of advances 238.11 38.33

(iii) Income Tax demand for AY 2005-06 to AY 2009-10 (Previous Year AY 2004-05 to AY 2008-09) net of deposit 0 1.16

of Rs. Nil crores (Previous year Rs. 1.91 crores) against the said demand, contested in appeals.

(iv) Guarantees given by the Company on behalf of SEL

Textiles Ltd. (Subsidiary Company) 1487.55 316.15

(v) Performance Guarantee 1381.92 1534.75

3. Earnings Per Share

The calculation of Earnings per Share as disclosed in the statement of Profit & Loss has been in accordance with Accounting Standard (AS)-20 on "Earning per Share" issued by Companies (Accounting Standards) Rules, 2006.

4. Debit or Credit balances on whatsoever account are subject to confirmation from parties; as such their effect on profit and loss account cannot be reflected.

5. In opinion of the Board, all the current assets, loans & advances have the value on realization in the ordinary course of business at-least equal to amount at which they are stated.

6. Expenses on issue of QIBs and increase in authorized capital are being adjusted against Securities Premium Account as permitted by the Section 78 of the Companies Act.

7. There are no outstanding forward exchange contracts.

8. Segment Reporting

Segment Information as required by Accounting Standard (AS)-17 on Segment Reporting, issued by Companies (Accounting Standards) Rules 2006, has been compiled on the basis of the consolidated financial statements and is disclosed in the notes to accounts forming part of the consolidated financial statements in accordance with the above standard. Therefore segment information in respect of separate financial statements of the company is not being disclosed in the stand alone financial statements.

9. The Company has purchased, through auction by Official Liquidator, the assets of a closed unit namely, Mangla Cotex Limited for Rs. 6.70 Crores. However, so far the Company has paid Rs. 1.675 Crores as advance for property, which has been shown under Capital Work in Process & Advances, and the possession of the same would be taken only after the confirmation of auction by the High Court.

10. In accordance with the Accounting Standard (AS)-28 on Impairment of Assets, the Company has access as on the balance sheet date, whether there are any indications (listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment has been provided in the books of account.

11. a) In 2009-10 the Company has issued 5,600,000 Global Depositary Receipts (GDRs) at the rate of USD 1.52 per GDR (USD 8,512,000), out of which USD 8,392,000 amounting to Rs. 39.48 crores (after netting of USD 120,000 for GDRs issue expenses) were unutilized and lying with Overseas Bank, in the form of fixed deposit. The said amount has been utilized for the purpose for which these were raised during the year.

b) During the year 2010-11 the Company has issued two series of Global Depositary Receipts (GDRs). The first series being of 3,000,000 Global Depositary Receipts (GDRs) at the rate of USD 15.50 per GDR amounting to Rs. 207.20 crores (USD 46,500,000). The second series being of 3,500,000 Global Depositary Receipts (GDRs) at the rate of USD 10.00 per GDR amounting to Rs. 162.96 crores (USD 35,000,000). The funds have been used for working capital/capital expenditures. The funds USD 2,500,000 amounting to Rs. 11.64 crores, and lying with Overseas Bank have been utilized for the purpose for which these were raised during the year.

12. During the year the Company had allotted 12,000,000 equity warrants on preferential basis, carrying an option to the holder of such warrants to subscribe to one equity share of Rs. 10/- each at a premium of Rs. 5.25/- per share for every warrant held, within 18 months from the date of allotment (i.e. from Dec. 21, 2011), in terms of SEBI (DIP) Guidelines read with SEBI (Issue of Capital & Disclosure Requirements) Regulation, 2009. All of the aforesaid holders of 12,000,000 equity warrants have exercised this option by depositing the amount during the year itself.

13. The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard (AS15) are as under:

a. Gratuity

The principal assumptions used in actuarial valuation of gratuity are as below:

b. Provident Fund

During the year the company has recognized an expense of Rs. 34,706,164/- (Previous Year Rs. 22,092,868/-) towards provident fund scheme.

c. Leave Encashment

During the year the company has recognized an expense of Rs. 5,216,533/- (Previous Year Rs. 4,783,052/-).

14. A sum of Rs. Nil crores (Previous Year Rs. 0.47 crores) is included in profit & loss account under different expenditures heads representing prior period items.


Mar 31, 2011

1. There are contingent liabilities in respect of the following items: No outflow is expected in view of the past history relating to these items:- (Rs. in Crores)

Particulars March 31, 2011 March 31, 2010

(i) Export Bills Discounted 18.81 32.63

(ii) Estimated amount of capital contracts remaining to be executed net of advances 38.33 19.97

(iii) Income Tax demand for AY 2005-06 to AY 2008-09 (Previous Year AY 2004-05 to AY 2007-08) net of deposit of Rs. 1.91 crores (Previous year Rs. 3.61 crores) 1.16 1.86 against the said demand, contested in appeals.

(iv) Guarantees given by the Company on behalf of SEL Textiles Ltd. (Subsidiary Company) 316.15 67.15

2. Earnings Per Share

The calculation of Earnings per Share as disclosed in the statement of Profit & Loss has been in accordance with Accounting Standard (AS)-20 on "Earning per Share" issued by Companies (Accounting Standards) Rules, 2006.

3. Debit or Credit balances on whatsoever account are subject to confirmation from parties; as such their effect on profit and loss account cannot be reflected.

4. In opinion of the Board, all the current assets, loans & advances have the value on realization in the ordinary course of business at-least equal to amount at which they are stated.

5. Current Assets, Loans & Advances includes Rs. 1.81 Cores (Previous Year Rs. 20.85 Crores) due from firms as debtors in which directors of the company are interested as partners.

6. Expenses on issue of Shares & GDRs are being adjusted against Securities Premium Account as permitted by the Section 78 of the Companies Act.

7. There are no outstanding forward exchange contracts.

8. Segment Reporting

Segment Information as required by Accounting Standard (AS)-17 on Segment Reporting, issued by Companies (Accounting Standards) Rules 2006, has been compiled on the basis of the consolidated financial statements and is disclosed in the notes to accounts forming part of the consolidated financial statements in accordance with the above standard. Therefore segment information in respect of separate financial statements of the company is not being disclosed in the stand alone financial statements.

9. The Company has purchased, through auction by Official Liquidator, the assets of a closed unit namely, Mangla Cotex Limited for Rs. 6.70 Crores. However, so far the Company has paid Rs. 1.675 Crores as advance for property, which has been shown under Capital Work in Process & Advances, and the possession of the same would be taken only after the confirmation of auction by the High Court.

Note: Balances with non-scheduled banks in Overseas are translated at the year-end rates of exchange.

10. The tax paid u/s 115JB (MAT) of Income Tax Act, 1961 has been treated as an asset in accordance with the provision of the Guidance note for Credit available in respect of Minimum Alternate Tax under the Income Tax Act, 1961 issued by the Institute of Chartered Accountants of India. The MAT credit entitlement for the current year is on the basis of statement of assessable income prepared on provisional basis.

11. In accordance with the Accounting Standard (AS)-28 on Impairment of Assets, the Company has access as on the balance sheet date, whether there are any indications (listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment has been provided in the books of account.

12. Cheques issued but not presented for payment amounting to Rs. 665,981,773/- (Previous Year Rs. 308,253,944/-) have been shown as Rs. 363,641,944/- (Previous Year Rs. 84,329,964/-) under the head other liabilities after netting of Cheques in Hand Rs. 302,339,829/- (Previous Year Rs. 223,923,980/-).

# Excludes provision for gratuity, which is determined on the basis of actuarial valuation done on overall basis for the company.

13. (i) In 2009-10 the Company has issued 5,600,000 Global Depositary Receipts (GDRs) at the rate of USD 1.52 per GDR (USD 8,512,000), out of which USD 8,392,000 amounting to Rs. 39.48 crores (after netting of USD 120,000 for GDRs issue expenses) is still unutilized and lying with Overseas Bank, in the form of fixed deposit. The said amount is shown in "Balances with Bank in Fixed Deposits Account" in Annexure-J of Cash & Bank Balances.

(ii) During the year the Company has issued two series of Global Depositary Receipts (GDRs). The first series being of 3,000,000 Global Depositary Receipts (GDRs) at the rate of USD 15.50 per GDR amounting to Rs. 207.20 crores (USD 46,500,000). The second series being of 3,500,000 Global Depositary Receipts (GDRs) at the rate of USD 10.00 per GDR amounting to Rs. 162.96 crores (USD 35,000,000). The funds have been used for working capital/capital expenditures. Out of total receipts USD 2,500,000 amounting to Rs. 11.64 crores is still unutilized and lying with Overseas Bank and the said amount is shown in "Balances with Bank" in Annexure-J of Cash & Bank Balances.

14. (i) In 2009-10 the Company had allotted 6,600,000 equity warrants on preferential basis, carrying an option to the holder of such warrants to subscribe to one equity share of Rs. 10/- each at a premium of Rs. 60/- per share for every warrant held, within 18 months from the date of allotment (i.e. from Sept. 18, 2009), in terms of SEBI (DIP) Guidelines read with SEBI (Issue of Capital & Disclosure Requirements) Regulation, 2009. Out of above, holders of 5,700,000 equity warrants have exercised this option by depositing the remaining amount in the year 2009-10 and the balance 900,000 equity warrant holders have exercised this option by depositing the remaining amount during the year under consideration.

(ii) During the year the Company had allotted 3,090,000 equity warrants on preferential basis, carrying an option to the holder of such warrants to subscribe to one equity share of Rs. 10/- each at a premium of Rs. 64/- per share for every warrant held, within 18 months from the date of allotment (i.e. from Sept. 27, 2010), in terms of SEBI (DIP) Guidelines read with SEBI (Issue of Capital & Disclosure Requirements) Regulation, 2009. All of the aforesaid holders of 3,090,000 equity warrants have exercised this option by depositing the amount during the year itself.

15. The Micro, Small and Medium Enterprises Development Act, 2006 come into force w.e.f. 02.10.2006. The Company has not received any confirmation from its vendors / service providers regarding their status of registration under the said act. Hence, the disclosures required under the said Act have not been given.

16. The Company has under taken export obligation of Rs. 2101.86 crores to export of goods against the issuance of EPCG Licenses for the import of capital goods and duty free procurement of indigenous capital goods etc. Out of this, export obligations of Rs. 567.11 crores have already been fulfilled up to 31st March 2011.

17. The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard (AS15) are as under:

b) Provident Fund:

During the year the company has recognized an expense of Rs 22,092,868/- (Previous Year Rs. 11,291,220/-) towards provident fund scheme.

c) Leave Encashment

During the year the company has recognized an expense of Rs 4,783,052/- (Previous Year Rs. 5,038,964/-).

18. Current Liabilities include Rs. 28,348/- (Previous Year Rs 28,348/-) on account of Unclaimed Dividend. Unclaimed Dividend for the year 2007-08 does not include any amount due and outstanding to be credited to investors Education and Protection Fund.

19. A sum of Rs. 0.47 crores (Previous Year Rs. 0.01 crores) is included in profit & loss account under different expenditures heads representing prior period items.

20. The figures in bracket indicate deductions.

21. The figures of the previous year have been rearranged and / or regrouped, wherever considered necessary to facilitate comparison.

22. Additional information as required by paragraph 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 and Balance Sheet abstract and Companys General Profile are enclosed herewith.


Mar 31, 2010

1. There are contingent liabilities in respect of the following items: No outflow is expected in view of the past history relating to these items:-

(Rs. In Crores) Particulars March 31, 2010 March 31, 2009

(i) Export Bills Discounted 32.63 17.18

(ii) Estimated amount of capital contracts remaining to beexecuted net of advances 19.97 16.44

(iii) Income Tax demand for AY 2004-05, 2005-06 & 2006-07 (Previous year for AY 2004-05) net of deposit of Rs. 1.86 0.31

3.61 crores (Previous year Rs. 3.56 crores) against the said demand.

(iv) Guarantees given by the Company on behalf of SEL 67.15 -



3. Earnings Per Share Rules, 2006.

4 Debit or Credit balances on whatsoever account are subject to confirmation from parties; as such their effect on profit and loss account cannot be reflected.

5 in opinion of the Board, all the current assets, loans & advances have the value on realization in the ordlP^ course of business at-least equal to amount at which they are stated.

6 Current Assets, Loans & Advances includes Rs. 20.85 Crores due from firms as debtors in which directors of the company are interested as partners.

7 Expenses on issue of Shares & GDRs are being adjusted against Securities Premium Account as permitted by the Section 78 of the Companies Act.

8 The Company is one of the partner in partnership firm M/S SE Exports and M/s Kudu Industries. The name of the partners and their profit sharing ratio are as under:

9. The tax paid u/s 115JB (MAT) of income tax act, 1961 has been treated as an asset in according with the procision of the Guidance note for Credit available in respect of minimum Alternate Tax under the Income Tax Act, 1961 issued by the Institute of Chartered Accountants in india.

10.Cheques issued but not presented for payment amounting to Rs. 308,253,994 /- have been shown asRs.84,329,964

11 The company has issued 56 00.000 Global Depository Receipts (GDRS) at the rate of USD 1.52 per GDR amounting to Rs. 39.71 crores out of which USD8,392,000. (ie from Sept 18 ?009) in terms of SEBI (DIP) Guidelines read with SEBI (Issue of Capital & Disclosure Requirements) Regulation, 2009. Out of above, holders of 5,700,000 equity warrants have exercised this option fay depositing the remaining amount.

(ii) Out of the holders of 5,700,000 equity warrants issued on preferential basis in financial year 2008- 09 1 891 000 warrant holders have exercised their right for conversion of warrants into equity shares bydepositing the balance consideration while the remaining holders of 3,809,000 warrants have not exercised their right of conversion within the stipulated period of 18 months from the date of allotment. Accordingly, the said warrants stand forfeited.

12 The Micro Small and Medium Enterprises Development Act, 2006 come into force w.e.f. 02.10.2006. The Company has not received any confirmation from its vendors / service providers regarding their status of registration under the said act. Hence, the disclosures required under the said Act have not been given.

13 The Company has under taken export obligation of Rs. 1077.92 crores to export of goods against the issuance of EPCG Licenses for the import of capital goods and duty free procurement of indigenous capital goods etc. Out of this, export obligations of Rs. 356.60 crores have already been fulfilled up to 31st March 2010.

14 The summarized position of Post-Employment benefits and long term employee benefits recognized in the Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard (AS 15) are as under:

Note: Closing Stocks of Yarn includes 386867 kgs Lying at port and in warehouses.

Figures of Closing Stocks are given after adjusting Inter Unit Transfers and Internal Consumption.

 
Subscribe now to get personal finance updates in your inbox!