Mar 31, 2018
1.1 Terms / Rights attached to Equity Shares :
The company has only one class of equity shares having a par value of Rs. 1 per share (Previous Year Re. 1 Each). Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.
1.2 For the period of five years immediately preceding the date at which the Balance Sheet is prepared i.e. 31st March, 2018, the company has not allotted any bonus shares,any shares pursuant to contract(s) without payment being received in cash and bought back any shares/class of shares.
2.1 Terms / Rights attached to Preference Shares :
A. 5% Non Convertible, Non Cumulative Redeemable Preference Shares
Preference Shares are Non Convertible, Non Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 5% p.a. which is non cumulative. In the event of liquidation of the Company before redemption the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.
The Company has allotted 50,00,000 ,5% Non Convertible, Non Cumulative, Redeemable Preference Shares of Rs. 10/- each on 8th October 2012. The preference shares are redeemable at par , not being after 20 years from the date of allotment.
B. 2% Non Convertible, Non Cumulative Redeemable Preference Shares
Preference Shares are Non Convertible, Non Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 2% p.a. which is non cumulative. In the event of liquidation of the Company before redemption the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.
The Company has allotted 54,00,000 ,2% Non Convertible, Non Cumulative, Redeemable Preference Shares of Rs. 10/- each at a premium of Rs. 40/- per share on 27th March 2015 and 6,00,000 Shares on 14th May, 2015. The preference shares shall be redeemed at Rs. 80/-(Rupees Eighty only) after the end of fifth year but within a period of 20 years either in one or more than one trenches as may be determined by the board of directors ofthe company in its absolute discretion.
Note :
a.(i) Working Capital Loans from Banks amounting to Rs.16096.18 Lacs(Pre. Year Rs.10616.39 Lacs, As on 1stApril 2016 Rs. 8754.24 Lacs) are secured by hypothecation of stock of raw materials, work in process, finished goods, other current assets and charge on book debts, second pari passu charge on the Fixed Assets (both present and future) of the company, extension of equitable mortgage of the immovable properties situated at Industrial Area Pithampur and Kelodhala, Dewas Naka, Indore and personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.
First pari passu charge of consortium banks by way of equitable mortgage on Immovable property situated at Survey No. 314/2 situated at Kelodhala, Dewas Naka, Indore and Immovable property situated at Survey No. 314/3 situated at Kelodhala, Dewas Naka, Indore and further ; First charge of consortium banks by way of equitable mortgage ranking pari passu with SVC Bank on Immovable property situated at Block No. 1, Khajrana, 1307/2, Gulmohar Colony, Indore, Office Premises situated at 114-116 Trade House, 14/3 South Tukoganj, Indore and Office Premises situated at 315-316 Trade House, 14/3 South Tukoganj, Indore
a.(ii) Short Term Borrowings aggregating to Rs.16096.18 Lacs(Pre. Year Rs.10616.39 Lacs, As on 1st April 2016 Rs. 8754.24 Lacs) are secured by Personal Guarantee of Directors Mr. Mukesh Sangla & Mr. Saurabh Sangla and Mrs. Monika Sangla and corporate guarantee of M/s Kamdeep Marketing Private Limited.
b.The Company has availed buyerâs credit outstanding as at 31st March,2018 Rs.3151.43 Lacs (Pre.Year Rs. 4764.09 Lacs, As on 1st April 2016 Rs. 3647.71 Lacs) is guaranteed by the bank against lien in Non Fund Based limit.
c.The Compnay has availed loan from Axis Bank under Channel Financing Scheme, the said facility oustanding as at 31st March, 2018 Rs. 315.12 Lacs (Pre.Year Rs. 239.62 Lacs, As on 1st April 2016,Rs. 140.93 Lacs) is Guaranteed by Directors Mr. Mukesh Sangla and Mr. Saurabh Sangla.
3. Leases (Where company is Lessee)
The Company has taken various premises under operating leases with no restrictions and are renewable/ cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub-leases. There are no restrictions imposed by lease arrangements.
The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.126.84 Lacs (Pre. Year Rs. 109.83 Lacs). The company has not recognized any contingent rent as expense in the statement of profit and loss.
4. Related Party Disclosure
A. Relationships
Key Management Personnel
Shri Mukesh Sangla - Managing Director
Shri Saurabh Sangla - Director
Mr. J.C. Paliwal - Chief Financial Officer
Mrs. Preeti Singh - Company Secretary
B. Relative of Key Managerial Personnel
Smt. Monika Sangla-Wife of Managing Director
C. Other parties / Companies where key managerial persons or their relatives have significant influence and where transaction taken place during the year.
Adroit Industries (India) Limited
Note: Related party relationship is as identified by the Company on the basis of information available
Note 5: First time adoption of Ind AS
First Ind AS financial statements
These are the Companyâs first separate financial statements prepared in accordance with Ind AS applicable as at 31 March 2018.
The accounting policies set out in note B have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet as at 1 April 2016 (the date of transition). In preparing its opening Ind AS balance sheet, the Company has restated the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions ofthe Act (previous GAAP or Indian GAAP) so as to comply in all material respects with Ind AS.
An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is as follows:
First-time adoption
Following are the applicable Ind AS 101 optional exemptions and exceptions to retrospective application of Ind AS applied in the transition from previous GAAP to Ind AS.
I) Optional exemptions
a) Property, plant and equipment and intangible assets
Ind AS 101 permits to measure all its property, plant & equipments at their previous GAAP carrying value i.e. being deemed cost represented by Gross Block reduced by accumulated depreciation on April 01, 2016.
II) Exceptions to retrospective application of Ind AS
a) Estimates
An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except where Ind AS required a different basis for estimates as compared to the previous GAAP.
De-recognition of financial assets and liabilities
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial Liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.
The company has applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
D) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial instrument meet the condition of Ind AS 109 on the basis ofthe facts and circumstances that exist at the date of transition to Ind AS.
6.1 Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:
I. Reconciliation of Balance sheet as at July 1, 2015 and March 31, 2016
II. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2016 III. Reconciliation of Equity as at July 1, 2015 and March 31, 2016
The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
6.2 Notes to Reconciliation
1 The Company measures recovery of debtors on Expected Credit Loss Model.The unwinding of discount on account of above upto the date of transition is also recognised in retained earnings. Subsequent unwinding is recognised in statement of profit and loss account.
2 Under previous GAAP, investment in equity instruments were classified into long term and current investments. Long term investments were carried at cost less provision other than temporary in nature. Current investments were carried at lower of cost or fair value. Under Ind AS, these investments are require to be measured at fair value either through OCI (FVTOCI) or through Profit & loss (FVTPL). The company has opted to fair value these investments through other comprehensive income (FVTOCI). Accordingly, resulting fair value change of these investments have been recognised in Other Equity under Equity Instruments through other comprehensive income as at the date of transition and subsequently in the statement of profit & loss in other comprehensive income for the year.
3 The company has issued two class of preference shares bearing 2% and 5% coupon rate.For compound financial instruments that have both equity as well as liability component, Ind AS 32 requires splitting the two components and separately recognizing âequity component of compound financial instrumentâ. Such equity component is required to be presented as a part of âOther Equityâ under this head. On the other hand, the âliability component of compound financial instrumentâ is required to be presented as a part of âBorrowingsâ, accordingly disclosure is given.
4 Ind AS 109 requires transaction costs incurred towards borrowings to be deducted from the transaction value on initial recognition. These cost are recognised in profit & loss over the tenure of borrowings as a part of the interest expense by applying effective interest rate method.
5 Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend including dividend distribution tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.Accordingly liability for proposed dividend as at 1st April,2016 included under provisions as per previous GAAP have been reversed with corrosponding adjustments to retained earnings.Consequently total equity increased by the amount of proposed dividend and related dividend distribution tax.
6 Deferred Tax have been recognized on adjustments made on transition to IND AS on 1st April,2016 to retained earnings.
7 Under Previous GAAP, the cost relating to post employment defined benefit obligation including acturial gain/losses were recognised in profit and loss. Under the Ind AS, actuarial gain/losses on the net defined liability are recognised in the comprehensive income instead of profit and loss
8 Under previous GAAP, the Company accounted for revenue net of trade discounts, sales taxes and excise duties. Under Ind AS, the Company will recognise revenue at fair value of consideration received or receivable. Any sales incentive, cash discounts or rebates in any form given to customers will be considered as reductions from revenue.
Note 7 âFinancial risk management objectives and policies
Risk management framework
The Companyâs activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Companyâs primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Companyâs risk management assessment policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.
a) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of itâs holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
i) Interest rate risk
Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.
The Companyâs exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks and others. Currently company is not using any mitigating factor to cover the interest rate risk.
Interest rate sensitivity
The Company has taken Intercorporate loan at fixed rate of interest and are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS - 107, since neither the carrying amount nor the future cash flow will fluctuate because of change in market interest rate.
The sensitivity analysis below have been determined based on exposure to interest rates (variable) for borrowing at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates. If the interest rates had been 1% higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on companies profit in that financial year would have been as below :
ii) Foreign currency risk
The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract and option contracts to mitigate the risk of changes in exchange rate on foreign currency exposure.
Following table analysis foreign currency assets and liabilities on balance sheet date.
Sensitivity to foreign currency risk
The following table demonstrates the sensitivity in the USD currencies if the currency rate is increased/(decreased) by 1% with all other variables held constant. The below impact on the Companyâs profit before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities at balance sheet date :
(b) Credit risk
Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Companyâs past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.
Trade and other receivablesExposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Impaired amounts are based on lifetime expected losses based on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances. The movement in the allowance for impairment in respect of trade and other receivables during the year was as follows.
Investments
The Company limits its exposure to credit risk by generally investing in counter -parties that have good credit rating . The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The Company has obtained fund and non-fund based working capital lines from various banks. The companyâs treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
Capital Management
For the purpose of the Companyâs capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Companyâs objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2018 and 31st March, 2017.
Note 8 Financial Instruments by Category and fair value heirarchy
Set out below, is a comparison by class of the carrying amounts and fair value of the Companyâs financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
9. Information relating to derivative instruments :-
a. The Company has no foreign currency/forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The company does not use forward contracts for speculative purposes.
b. Foreign exchange currency exposure not covered by derivative instrument or otherwise outstanding as at 31st March 2018 are given below :-
10. Intangible assets under development amounting to 0.45 Lacs (Previous Year 0.45 Lacs, as at 1st April, 2016, 0.45 Lacs) represent fees paid for acquisition of Patent.
11. Interest Income Rs.164.09 Lacs (Pre. Year Rs. 174.19 Lacs) included in Interest Received (Note 27 Other Income) represents interest earned on FDRs pledged with banks for various credit facilities availed by the company.
12. The expenditure required by the company for complying with the provision for CSR Expenditure required under section 135 ofCompanies Act, 2013 is as follows:-
However company has spent Rs. Nil (Pre. Yr. Rs.109.70 Lacs) on account of CSR activities other than capital expenditure during the year (Previous Yr. Nil)
13. Previous yearâs figures are regrouped / rearranged wherever considered necessary to make them comparable with current yearâs figures.
Mar 31, 2016
Note :
a. (i) Working Capital Loans from Banks amounting to Rs. 87,54,23,520/- (Pre. Year Rs. 72,84,17,092/-) are secured by hypothecation of stock of raw materials, work in process, finished goods, other current assets and charge on book debts, second pari passu charge on the Fixed Assets (both present and future) of the company, extension of equitable mortgage of the immovable properties situated at Industrial Area Pithampur and Kelodhala, Dewas Naka, Indore and personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.
(ii) Short Term Borrowings aggregating to Rs. 87,54,23,520/- (Pre. Year Rs. 72,84,17,092/-) are secured by Personal Guarantee of Directors Mr. Mukesh Sangla & Mr. Saurabh Sangla and Mrs. Monika Sangla and corporate guarantee of M/s Kamdeep Marketing Private Limited.
b. (i) During the year Company has availed buyerâs credit as at 31st March 2016 Rs. NIL (Pre. Year 54,66,625/-) is secured by hypothecation of stocks and book debts and by earmarking the letter of credit facilities sanctioned by the banks, personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.
(ii) During the year Company has availed buyerâs credit, the said facility outstanding as at 31 st March 2016 Rs. NIL (Pre. Year 13,23,68,620/-) is secured by lien on Fixed Deposits (included in Balances with banks in deposit accounts in note 16) and balance Rs. 36,47,71,405/- (Pre. Year Rs. 16,95,22,645/-) by earmarking the letter of credit facilities sanctioned by the banks.
c. During the year compnay has availed loan from Axis Bank under Channel Financing Scheme, the said facility outstanding as at 31st March, 2016 Rs. 1,40,93,122/- (Pre. Year Rs. NIL) are Guaranteed by Directors Mr. Mukesh Sangla and Mr. Saurabh Sangla.
d. Interoperate Deposit amounting Rs. 2500000/- is repayable in 91 days.
1. In the opinion of the Board of Directors, Current, Non-Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.
2. Trade Payable includes bills payable for purchase of goods Rs.1,17,94,70,511 /- (Pre. Yr. Rs. 1,32,57,20,044/-).
3. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
a. Trade Payables includes Rs. 37,61,610/- (Previous Year Rs. 51,233/-) amount payable to Micro and Small Enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME).
4. Leases (Where company is Lessee)
The Company has taken various premises under operating leases with no restrictions and are renewable/ cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub-leases. There are no restrictions imposed by lease arrangements.
5. During the year company has made sales on consignment basis Rs.90,87,52,348/- (Pr. Yr. Rs.1,71,66,15,251/-) commission income from which is included in sales of services.
6. Intangible assets under development amounting to Rs 45,000 (Previous Year 45000) represent fees paid for acquisition of Patent.
7. Interest Income Rs. 2,13,64,152/- (Pre. Year Rs. 3,57,20,715/-) included in Interest Received (Note 20 Other Income) represents interest earned on FDRs pledged with banks for various credit facilities availed by the company.
8. Income Tax authorities have carried out a search u/s 132 of the Income Tax Act at the premises of the company and others in November 2011. The Demand raised by Assessing Officer has been substantially been reduced in First Stage of Appeal i.e. CIT (Appeal) and Second Stage of Appeal i.e. ITAT. Some of the issues has been redirected to Assessing Officer for Re-examination which in the opinion of the management and consultants are either to be deleted or substantially reduced and accordingly no provision has been made for the liability and disclosed as contingent / disputed liability.
9. Previous yearâs figures are regrouped / rearranged wherever considered necessary to make them comparable with current yearâs figures.
Mar 31, 2015
1. Pursuant to enactment of new Companies Act 2013 and as per the
Schedule II of the Companies Act 2013; with effect from 1st April 2015
Company has revised the useful life of fixed Assets for providing
depreciation on it. Accordingly, carrying amount as on 1st April 2014
has been depreciated over the remaining revised useful life of the
fixed assets. Due to this change the depreciation for the year ended
31st March, 2015 is lower by Rs. 96,17,670 and profit before tax for
the year ended 31st March, 2015 is higher to the extent of Rs.
96,17,670. In accordance with transitional provision in respect of
assets whose useful life is already exhausted as on 1st April 2014,
depreciation Rs. 4,44,985 (Net of tax expenses of Rs. 235504) has been
recognized in the opening balance of retained earnings in accordance
with the requirements of Schedule II of the Act.
2. Intangible assets under development amounting to Rs 45,000
represent fees paid for acquisition of Patent.
3. Interest Income Rs.3,57,20,715/- (Pre. Year Rs.4,09,27,293)
included in Interest Received (Note 20 Other Income) represents
interest earned on FDRs pledged with banks for various credit
facilities availed by the company.
4. Income Tax authorities have carried out a search u/s 132 of the
Income Tax Act at the premises of the company and others in November
2011. The Demand raised by Assessing Officer has been substantially
been reduced in First Stage of Appeal i.e. CIT (Appeal) further in the
opinion of the management and consultants the demand raised is likely
to be either deleted or substantially reduced and accordingly no
provision has been made for the liability and disclosed as contingent /
disputed liability.
5. Previous year's figures are regrouped / rearranged wherever
considered necessary to make them comparable with current year's
figures.
6. Company Information, Significant Accounting policies and practices
adopted by the Company are disclosed as under :
Mar 31, 2014
1. Contingent Liabilities and Commit merits (to the extent not
provided for)
A. Contingent Liabilities 2013-14 2012-13
a. Outstanding Bank Guarantee 9,27,35,795 7,59,70,000
b. Income Tax/ Sales tax/ Excise
Duty demand 33,18,55,700 35,41,844
disputed in appeal
(Net of amount paid)
c. Corporate Guarantee given on
behalf of others 10,00,00,000 10,00,00,000
B, Commitments
Estimated amount of contracts
remaining to be 82,87,205 17,93,217
executed capital commitment
(Net of Advance)
2. In the opinion of the Board of Directors, Current. Non-Current
Assets, Loans and Advances have value on realization in the ordinary
course of business at least equal to the amount at which they are
stated in the Balance Sheet and that the provision for known
liabilities is adequate and reasonable.
3. Trade Payable includes bills payable for purchase of goods Rs.
1,20,54,56,482/- (Pre. Yf Rs. 89,95,28,266/-).
4. Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006
a. Trade Payables includes Rs.2,29,486/- (Previous Year Ps. Nil) amount
due to Micro, Small and Medium Enter- prises registered under the
Micro, Small and Medium Enterprises Development Act, 2006 (MSME).
c. The information has been determined to the extent such parties have
been identified on the basis of information available with the Company.
This has been relied upon by the Auditors.
5. Leases (Where company is Lessee)
The Company has taken various premises under operating leases with no
restrictions and are renewable/ cancelable at thG option of either
parties. There is no escalation clause in the lease agreement. There
are no sub-leases. There are no restrictions imposed by lease
arrangements,
The aggregate amount of operating lease payments recognized in the
statement of prof it and loss is Rs. 80,40,121/- (Pre, Year
Rs65,04,016/-). The company has not recognized any contingent rent as
expense in the statement of profit and loss.
6. Related Party Disclosure
A. Relationships
Key Management Personnel
Shri Mukesh Sangla - Managing Director
Shri Saurabh Sangla - Director
B. Relative of Key Managerial Personnel
Smt. Monika Sangla - Wife of M. D.
C. Associates
Adroit Industries (India) Limited Note: Related party relationship is
as identified by the Company and relied upon by the Auditors
7. During the year company has salGS on consignment basis Re.
140,76,33,513/-(R. Yr. Rs. 117,05,66,493/- }commission income from
which is included in sales of services.
8. Information relating to derivative instruments :-
a. The Company has no foreign currency/forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments and forecasted transactions. The company does not use
forward contracts for speculative purposes,
9. Income Tax authorities has carried out a search u/s 132 of the
Income Tax Act at the premises of the company and others in November
2011. In the opinion of the management and consultant s the demand
raised is likely to be either deleted or substantially reduced and
accordingly no provision has been made for the liability and disclosed
as contingent / disputed liability.
10. The financial statements have been prepared in line with the
requirements of Revised Schedule VI of Compa- nies Act, 1956 as
intreduced by the Ministry of Corporate Affairs from the financial year
ended on 31a March 2012, Accordingly, assets and liabilities are
classified between current and non-current considering 12 month period
as operating cycle.
11. Previous year''s figures are regrouped / rearranged wherever
considered necessary to make them comparable with current year''s
figures.
13. Company Information, Sgnificant Accounting policies and practices
adopted by the Company are disclosed as under:
Mar 31, 2013
1. Contingent Liabilities and Commitments (to the extent not provided
for) (Figures in Rs.)
1 A. Contingent Liabilities 2012-13 2011-12
a. Outstanding Bank Guarantee 7,59,70,000 5,09,38,000
b. Income Tax/ Sales tax / Excise
Duty demand 35,41,844 45,08,361
disputed in appeal (Net of amount
paid)
c. Corporate Guarantee given on
behalf of others 10,00,00,000 10,00,00,000
B. Commitments
Estimated amount of contracts
remaining to be 17,93,217
executed capital commitment
(Net of Advance)
2. In the opinion of the Board of Directors, Current Assets Loans &
Advances have value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet and that the provision for known liabilities is adequate and
reasonable.
3. Trade Payable include bills payable for purchase of goods Rs.
89,95,28,266/- (Pre. Year Rs. 56,95,30,000/-).
4. Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006
a. Trade Payables includes Rs. Nil (Previous Year Rs. Nil) amount due
to micro and small enterprises registered under the Micro, Small and
Medium Enterprises Deveopment Act, 2006 (MSME).
b. The details of amount outstanding to Micro, Small and Medium
Enterprises are as under:
c. The information has been determhed to the extent such parties have
been identified on the basis of information available with the Company.
This has been relied upon by the Auditors.
5. Leases (Where company is Lessee)
The Company has taken various premises under operating leases with no
restrictions and are renewable/ cancelable at the option of either
parties. There is no escalation clause in the lease agreement. There is
no sub-leases. There are no restrictions imposed by lease arrangements.
The aggregate amount of operating lease payments recognized in the
statement of profit and loss is Rs.65,04/) 16/- (Pre. Year Rs. 54,4
5,6 92/-). The company has not recognized any contingent rent as
expense h the statement of profit and loss.
6. Related Party Disclosure
A. Relationships
Key Management Personnel
Shri Mukesh Sangla - Managing Director
Shri Saurabh Sangla - Director
B. Relative of Key Managerial Personnel
Smt. Monka Sangla - Wife of M.D.
C. Associates
Adroit Industries (India) Limited
7. During the year company has sales on consignment basis Rs.
117,05,66,493/- (Pre. Yr Rs. 98,18,11,145/-) commission hcome from
which is included in sales of services.
8. Information relating to derivative instruments :-
a. The Company has no foreign currency/for ward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments and forecasted transactions. The company does not use
forward contracts for speculative purposes.
b. Foreign exchange currency exposure not covered by derivative
instrument or otherwise outstanding as at 31st March 2013 are given
below :-
9. The financial statements have been prepared in line with the
retirements of Revised Schedule VI of Companies Act, 1956 as introduced
by the Ministry of Corporate Affairs from the financial year ended on
31sl March 2012. Accordingly, assets and liabilities are classified
between current and non -current considering 12month perbd as operating
cycle.
10. Previous year''s figures are regrouped /rearranged wherever
considered necessary to make them comparable with current year''s
figures.
Mar 31, 2012
1. Contingent Liabilities 2011-12 2010-11
a. Bank Guarantee 50938000 21150000
b. Income Tax/ Sales tax / Excise Duty demand 4508361 5105014
disputed in appeal (Net of amount paid )
c. Estimated amount of contracts remaining
to be -- 60753329
executed capital commitment (Net of Advance)
d. Corporate guarantee given on behalf
of others 100000000 --
2. In the opinion of the Board of Directors, Current Assets Loans &
Advances have value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet and that the provision for known liabilities is adequate and
reasonable.
3. Trade Payable include bills payable for purchase of goods
Rs.5695.30 Lacs (Pre. Year Rs. 2305.20 Lacs).
4. Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006
a. Trade Payables includes Rs. Nil (Previous Year Rs. Nil) amount due
to micro and small enterprises registered under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSME).
b. No interest is paid / payable during the year to any enterprise
registered under MSME.
c. The information has been determined to the extent such parties have
been identified on the basis of informa- tion available with the
Company. This has been relied upon by the Auditors.
5. Consequent upon action u/s 132(1) of the Income Tax Act, 1961 was
carried out during the year at company's premises, factory, residential
premises of its directors and its associates the company offered
additional income of Rs. 996 lacs in the form of stock of chick peas
agricommodity, for taxation to avoid protracted litigation with revenue
authorities and included proceeds thereof amounting to Rs. 1045 lacs
under the head " Revenue from operation".
6. Leases (Where company is Lessee)
The Company has taken various premises under operating leases with no
restrictions and are renewable / cancelable at the option of either
parties. There is no escalation clause in the lease agreement. There is
no sub- leases. There are no restrictions imposed by lease
arrangements. The aggregate amount of operating lease payments
recognized in the statement of profit and loss is Rs. 5445692 (Pre.
Year Rs.4472440). The company has not recognized any contingent rent as
expense in the statement of profit and loss.
7. Related Party Disclosure
A. Relationships
Key Management Personnel
Shri Mukesh Sangla - Managing Director
Shri Saurabh Sangla - Director
B. Relative of Key Managerial Personnel
Smt. Monika Sangla - Wife of M.D.
8. The financial statements have been prepared in line with the
requirements of Revised Schedule VI of Companies Act, 1956 as
introduced by the Ministry of Corporate Affairs from the financial year
ended on 31st March 2012. Accordingly, assets and liabilities are
classified between current and non-current considering 12 month period
as operating cycle. Consequently, the company has re-classified
previous year figures to confirm to this year's classification.
COMPANY INFORMATION
Signet Industries Limited was incorporated on January 29, 1985 under
the Companies Act 1956, having its registered office in Mumbai. Company
is engaged in Manufacturing of Micro Irrigation System (DRIP),
Sprinkler Pipe / PVC Pipe & Agro fittings and its Allied Products, all
type of House Hold & Plastic Moulded Furniture. The Company's shares
listed on The Stock Exchange Mumbai, and Madhya Pradesh Stock Exchange,
Indore. The equity shares of the Company have been permitted for
trading on the National Stock Exchange of India Ltd. w.e.f. May 30,
2012, pursuant to circular No. 460/2012 dated May 28, 2012, issued by
National Stock Exchange and same also traded on Bombay Stock Exchange.
Mar 31, 2011
1. CONTINGENT LIABILITIES 2010-11 2009-10
a. Bank Guarantee 21150000 10350000
b. Income Tax/ Sales tax /Excise Duty
demand disputed in appeal 5105014 3140976
(Net of amount paid)
c. Estimated amount of contracts 60753329 Nil
remaining to be executed
capital commitment (Net of Advance)
2. In the opinion of the Board of Directors, Current Assets Loans &
Advances have value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet and that the provision for known liabilities is adequate and
reasonable.
3. Sundry creditors include bills payable for purchase of goods
Rs.2305.20 Lacs (Pre, Year Rs. 1450.22 Lacs).
4. There are no delay in payment to Micro, Small and Medium
enterprises as required under the Micro, Small and Medium Enterprises
Development Act, 2006. The information given in Schedule "Current
Liabilities" regarding Micro, Small and Medium enterprises has been
determined to the extent such parties have been identified on the basis
of information available with the Company. This has been relied upon by
the Auditors.
5. During the year Company has availed buyer's credit, the said
facility outstanding as at 31st March 2011, was Rs. 399.08 lacs (Pre.
Year Rs. 92.43 lacs), is guaranteed by bank against ear-marking of
drawing power in credit limits. In Balance Sheet the said amount is
shown as unsecured loans from Banks in Shcedule D.
6. LEASES (Where company is Lessee)
The Company has taken various premises under cancelable operating
leases for its business purpose. These lease agreements are normally
renewed on expiry.
7. RELATED PARTY DISCLOSURE
A. RELATIONSHIPS
1. KEY MANAGEMENT PERSONNEL
Shri Mukesh Sangla - Managing Director
Shri Saurabh Sangla - Director
B. RELATIVES OF KEY MANAGERIAL PERSONNEL
Smt. Monika Sangla Wife of M.D.
8. Disclosure as per AS -15 (Revised) 'Employee Benefits':
Reconciliation of opening and closing balances of Defined benefit
obligation.
9. Previous years figures have been re-grouped or re-arranged
wherever considered necessary.
Mar 31, 2010
1. CONTTNGNENT LIABILITIES 2009-10 2008-09
a. Bank Guarantee 10350000 --
b. Income Tax/Sales tax/Excise Duty demand 3140976 5934086
disputed in appeal (Net of amount paid)
2. In the opinion of the Board of Directors, Current Assets Loans &
Advances have value on realization in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet and that the provision for known liabilities is adequate and
reasonable.
3. Previous years figures have been re-grouped or re-arranged wherever
considered necessary.
4. Balances of creditors, debtors, Bank, deposits and advances are
partly confirmed.
5. Sundry creditors include bills payable for purchase of goods Rs.
145021712 (Pre. Year Rs. 282700000).
6. The company has not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure relating to amount unpaid as at the year
end together with interest paid / payable under this Act have not been
given.
7. During the year Company has availed buyers credit, the said
facility outstanding as at 31st March 2010, was Rs. 92.43 lacs (Pre.
Year Rs. 1717.02 lacs), is guaranteed by bank against pledged of fixed
deposits receipts with them and LC limit ear-marking. In Balance Sheet
the said amount is shown as unsecured loans from Banks in Shcedule D
and the fixed deposit of Rs.95 lacs (Pre, Year Rs. 247 lacs) are
included under Bank Balance with scheduled bank in " Deposit Account"
Schedule G.
8. During the year company has issued 3243000 equity shares as bonus
shares by capitalizing surplus in Profit and Loss account as per
resolution passed in General Meeting.
9. LEASES (Where company is Lessee)
The Company has taken various premises under cancelable operating
leases for its business purpose. These lease agreements are normally
renewed on expiry.
10. The name of the company is changed from Signet Overseas Limited to
Signet Industries Limited, vide fresh certificate of incorporation
issue by Registrar of companies on dated 11.01.2010.
11. RELATED PARTY DISCLOSURE
A. RELATIONSHIPS
1. KEY MANAGEMENT PERSONNEL
Shri Mukesh Sangla - Managing Director
Shri Saurabh Sangla - Director
B. RELATIVES OF KEY MANAGERIAL PERSONNEL
Smt. Monika Sangla Wife of M.D.
Note : Related party relationship is as identified by the Company and
relied upon by the Auditors.
12. Disclosure as per AS -15 (Revised) Employee Benefits:
Reconciliation of opening and closing balances of Defined benefit
obligation.