Home  »  Company  »  Signet Industries  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Signet Industries Ltd.

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.

 
Subscribe now to get personal finance updates in your inbox!