Mar 31, 2015
1. Corporate Information
Spice Islands Apparels Limited is a public company domiciled in India
and incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on three stock exchanges in India. The company is
engaged in the manufacturing and selling of knitted and woven garments.
The company caters to both domestic and international markets. The
Company also deploys its surplus funds in financial activities.
2. Basis of preparation
The financial statements of the company have been prepared and
presented in accordance with Indian Generally Accepted Accounting
Principles ('GAAP') under the historical cost convention on the accrual
basis. GAAP comprises accounting standards notified by the Central
Government of India under the Companies (Accounting Standards) Rules,
2006, (as amended), other pronouncements of Institute of Chartered
Accountants of India and the relevant provisions of Companies Act,
2013.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use. The Management evaluates and adopts all recently
issued or revised accounting standards on an ongoing basis.
3. Terms/Rights attached to Equity shares
The company has only one class of equity shares having par value of ?.
10 per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March 2015, the amount of per share dividend
recognised as distributions to equity shareholders was Rs. 1.50 (31
March 2014: Rs. 1.00)
In the event of Liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
As per records of the company, including its register of
shareholders/members and other declaration received from shareholders
regarding beneficial interest, the above shareholding represents both
legal and beneficial ownership of shares.
4. Aggregate number of bonus shares issued, shares issued for
consideration other than cash and shares bought back during the period
of five years immediately preceding the reporting date: Nil (31 March
2014: Nil)
5. Share reserved for issue under options and contracts/commitments
are: Nil (31 March 2014: Nil)
6. Contingent liabilities not provided for:
As per the order of Hon'ble Bombay High Court, the claim of Apparel
Export Council has been guaranteed by furnishing bank guarantee of
equivalent amount: Rs. 7,26,310 (31 March 2014: Rs. 7,26,310)
Disputed claims/levies (excluding interest, if any), in respect of
Income tax Rs. 1,10,04,774 (31 March 2014: Rs.97,14,906)
The Company is also involved in other lawsuits, claims, investigations
and proceedings, which arise in the ordinary course of business,
however, there are no such matters pending that the company expects to
be material in relation to its business.
7. Balances of Sundry debtors, sundry creditors, loans and advances,
receivables and payables are subject to confirmation/reconciliation, if
any.
8. In the opinion of the Board of Directors adequate provision has been
made in the accounts for all known liabilities and the current assets,
loans and advances have a value on realization in the ordinary course
of business at least equal to the value stated in the balance sheet.
9. The Company's significant leasing arrangements are in respect of
operating leases for Guest houses and office premises. These are
cancelable operating leases and these lease agreements are normally
renewed on expiry. The aggregate lease rentals payable are charged as
rent under note 24.
The company conduct its factory operations from facility that is leased
under a 72 month non-cancellable lease expiring in December, 2016 for
which lump sum interest free deposit of ? 50 lacs has been given,
refundable after the expiry of the lease period.
10. During the financial year 2010-2011, the company sold all the shares
of M/s. Bhupco Alloys Limited., its erstwhile subsidiary Company, to
M/s. Emer Hotels & Suites Pvt Ltd., pursuant to approval for the same
by the Board of Directors of the Company vide its resolution dated
04/02/2011 for an amount Rs. 1,16,20,843, against which an amount of
Rs. 70,00,000 was received from M/s. Emer Hotels & Suites Pvt Ltd.,
during the year 2011-2012.
The management is of the opinion that an amount of Rs. 20,00,000 though
not received till date shall be received during the year 2015-16. The
remaining balance of Rs. 26,20,843 is to be received from them only on
receipt of rental deposit from landlord in Bhupco Alloys Ltd. Since,
the consideration of Rs. 26,20,843 is contingent on happening of an
event in future, the outcome of which cannot be ascertained accurately
as at balance sheet date, the same has not been recognized in the books
of account as at 31 March 2015.
11. Effective from 1 April 2014, the Company has changed the
depreciation charge based on revised remaining useful lives of the
assets as per requirement of schedule II of the Companies Act, 2013.
Due to this, the depreciation charge for the year ended 31 March 2015
is higher by Rs. 15,43,127. Further, based on transitional provisions
as provided in Schedule II, an amount of Rs. 19,17,525 (net of deferred
tax) has been charged to accumulated retained earnings (Surplus) in
respect of asset whose remaining useful life is nil as on 1 April 2014.
12. Related party disclosures:
A. Name of the related parties and related party relationship
Related parties with whom transactions have taken place during the
year: (As identified by the Management and relied upon by auditors)
* Key managerial Personnel represented on the board:
* Mr. Umesh M. Katre - Managing Director
* Mr. AshokDaryanani - Director
* Mr. Carl Dantas - Director
* Mr. Charuchandra Patankar - Director
* Mr. Rahul L Mehta - Director
* Mrs. Seema Katre - Whole-Time Director
* Relatives of key managerial personnel:
* Mr. Rohan U Katre - Managing Director's son
13. Based on the information available with the company, principal
amount due to micro and small enterprises as defined under MSMED Act,
2006 is Rs. Nil (31 March 2014: Nil). Further interest paid during the
year and interest due at the end of the yearto micro and small
enterprises is Rs. Nil (31 March 2014: Rs. Nil).
14. The Company's operations predominantly comprises of export of
manufactured garments. Company also deploys its surplus funds in
financial activities. Accordingly, garments & finance have been
identified as primary basis for segment information. The Company does
not have any secondary segment.
15.The company has re-classified/re-grouped/re-arranged the previous
year figures wherever necessary.
Mar 31, 2014
1. Corporate Information
Spice Islands Apparels Limited is a public company domiciled in India
and incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on three stock exchanges in India. The company is
engaged in the manufacturing and selling of knitted and woven garments.
The company caters to both domestic and international markets. The
Company also deploys its surplus funds in financial activities.
2. Basis of preparation
The financial statements of the company have been prepared and
presented in accordance with Indian Generally Accepted Accounting
Principles (''GAAP'') under the historical cost convention on the accrual
basis. GAAP comprises accounting standards notified by the Central
Government of India under the Companies (Accounting Standards) Rules,
2006, (as amended), other pronouncements of Institute of Chartered
Accountants of India and the relevant provisions of Companies Act,
1956.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use. The Management evaluates and adopts all recently
issued or revised accounting standards on an ongoing basis.
3. Terms/Rights attached to Equity shares
The company has only one class of equity shares having par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual general meeting.
During the year ended 31 March 2014, the amount of per share dividend
recognised as distributions to equity shareholders was Rs. 1.00 (31
March 2013: Rs.0.50)
In the event of Liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
4. Contingent liabilities not provided for:
As per the order of Hon''ble Bombay High Court, the claim of Apparel
Export Council has been guaranteed by furnishing bank guarantee of
equivalent amount: Rs. 7,26,310 (31 March 2013: Rs. 7,26,310)
Disputed claims/levies (excluding interest, if any), in respect of
Income tax Rs.97,14,906 (31 March 2013: Rs.84,17,572)
The Company is also involved in other lawsuits, claims, investigations
and proceedings, which arise in the ordinary course of business,
however, there are no such matters pending that the company expects to
be material in relation to its business.
5. Value of imports calculated on CIF basis: Rs. 13,89,222 ( 31 March
2013: Rs. 2,19,736)
6. Balances of Sundry debtors, sundry creditors, loans and advances,
receivables and payables are subject to confirmation/reconciliation, if
any.
7. In the opinion of the Board of directors adequate provision has
been made in the accounts for all known liabilities and the current
assets, loans and advances have a value on realization in the ordinary
course of business at least equal to the value stated in the balance
sheet.
8. The Company''s significant leasing arrangements are in respect of
operating leases for Guest houses and office premises. These are
cancelable operating leases and these lease agreements are normally
renewed on expiry. The aggregate lease rentals payable are charged as
rent under note 24.
The company conduct its factory operations from facility that is leased
under a 72 month non-cancellable lease expiry in December, 2016 for
which lump sum interest free deposit of Rs. 50 lacs has been given,
refundable after the expiry of the lease period.
9. During the financial year 2010-2011, the company sold all the
shares of M/s. Bhupco Alloys Limited., its erstwhile subsidiary
Company, to M/s. Emer Hotels & Suites Pvt Ltd., pursuant to approval
for the same by the board of directors of the Company vide its
resolution dated 04/02/2011 for an amount Rs. 1,16,20,843, against
which an amount of Rs. 70,00,000 was received from M/s. Emer Hotels
& Suites Pvt Ltd., during the year 2011-2012.
The management is of the opinion that an amount of Rs. 20,00,000 though
not received till date shall be received during the year 2014-15. The
remaining balance of Rs. 26,20,843 is to be received from them only on
receipt of rental deposit from landlord in Bhupco Alloys Ltd. Since,
the consideration of Rs. 26,20,843 is contingent on happening of an
event in future, the outcome of which cannot be ascertained accurately
as at balance sheet date, the same has not been recognized in the books
of accounts as at 31 March 2014.
10. Related party disclosures:
A. Name of the related parties and related party relationship
Related parties with whom transactions have taken place during
the year: (As identified by the Management and relied upon by
auditors)
-Key managerial Personnel represented on the board:
Mr. Umesh M. Katre - Managing Director
Mr. Ashok Daryanani - Director
Mr. Karl Dantas - Director
Mr. Charuchandra Patankar - Director
Mr. Rahul L Mehta - Director
Mrs. Seema Katre - Whole-time Director
* Relatives of key managerial personnel:
Mr. Rohan U Katre - Managing director''s son
11. Based on the information available with the company, principal
amount due to micro and small enterprises as defined under MSMED Act,
2006 is Rs. Nil (31 March 2013: Rs. Nil). Further interest paid during
the year and interest due at the end of the year to micro and small
enterprises is Rs. Nil (31 March 2013: Rs. Nil).
12. The company has re classified/regrouped/rearranged the previous
year figures wherever necessary.
Mar 31, 2013
1. Corporate Information
Spice Islands Apparels Limited is a public company domiciled in India
and incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on three stock exchanges in India. The company is
engaged in the manufacturing and selling of knitted and woven garments.
The company caters to both domestic and international markets. The
Company also deploys its surplus funds in financial activities.
2. Basis of preparation
The financial statements of the company have been prepared and
presented in accordance with Indian Generally Accepted Accounting
Principles (''GAAP'') under the historical cost convention on the accrual
basis. GAAP comprises accounting standards notified by the Central
Government of India under the Companies (Accounting Standards) Rules,
2006, (as amended), other pronouncements of Institute of Chartered
Accountants of India and the relevant provisions of Companies Act,
1956.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use. The Management evaluates and adopts all recently
issued or revised accounting standards on an ongoing basis.
3. Contingent liabilities not provided for:
As per the order of Hon''ble Bombay High Court, the claim of Apparel
Export Council has been guaranteed by furnishing bank guarantee of
equivalent amount: Rs.7,26,310 (31st March 2012:Rs.7,26,310)
Disputed claims/levies (excluding interest, if any), in respect of
Income taxRs. 84,17,572 (31st March 2012:Rs. Nil)
The Company is also involved in other lawsuits, claims, investigations
and proceedings, which arise in the ordinary course of business,
however, there are no such matters pending that the company expects to
be material in relation to its business.
4. Value of imports calculated on CI F basis: Rs.2,19,736 (31st March
2012: Rs.47,593)
5. Balances of Sundry debtors, sundry creditors, loans and advances,
receivables and payables are subject to confirmation/reconciliation, if
any.
6. In the opinion of the Board of directors adequate provision has
been made in the accounts for all known liabilities and the current
assets, loans and advances have a value on realization in the ordinary
course of business at least equal to the value stated in the balance
sheet.
7. The Company''s significant leasing arrangements are in respect of
operating leases for Guest houses and office premises. These are
cancelable operating leases and these lease agreements are normally
renewed on expiry. The aggregate lease rentals payable are charged as
rent under note 25.
The company conduct its factory operations from facility that is leased
under a 72 month non-cancellable lease expiry in
December, 2016 for which lump sum interest free deposit of Rs.50 lacs
has been given, repayable after the expiry of the lease period.
The company uses motor car and speed boat that is leased under
non-cancellable operating leases. The company has commitment under
non-cancellable operating leases as follows:
8. During the financial year 2010-2011, the company sold all the
shares of M/s. Bhupco Alloys Limited., its erstwhile subsidiary
Company, to M/s. Emer Hotels & Suites Pvt Ltd., pursuant to approval
for the same by the board of directors of the Company vide its
resolution dated 04/02/2011 for an amount Rs. 1,16,20,843, against which
an amount of Rs.70,00,000 was received from M/s. Emer Hotels &Suites Pvt
Ltd., duringtheyear 2011-2012.
The management is of the opinion that an amount ofRs. 20,00,000 shall be
received during the year 2013-14. The remaining balance off. 26,20,843
is to be received from them only on receipt of rental deposit from
landlord in Bhupco Alloys Ltd. Since, the consideration of Rs.26,20,843
is contingent on happening of an event in future, the outcome of which
cannot be ascertained accurately as at balance sheet date, the same has
not been recognized in the books of accounts as at 31 March 2013.
9. Related party disclosures:
A. Name of the related parties and related party relationship
Related parties with whom transactions have taken place during the
year: (As identified by the Management and relied upon by auditors)
Key managerial Personnel represented on the board:
- Mr. Umesh M. Katre - Managing Director
- Mr.AshokDaryanani - Director
- Mr. Karl Dantas - Director
- Mr. Charuchandra Patankar - Director
- Mr. Rahul LMehta - Director
- Mrs. Seema Katre - Whole-time Director Relatives of key managerial
personnel:
- Mr. Rohan U Katre - Managing director''s son
10. Based on the information available with the company, principal
amount due to micro and small enterprises as defined under MSMED Act,
2006 is Rs. Nil (31st March 2012: Rs. Nil). Further interest paid during
the year and interest due at the end of the year to micro and small
enterprises isRs. Nil (31 March 2012: Rs. Nil).
11. The Company''s operations predominantly comprises of export of
manufactured garments. Company also deploys its surplus funds in
financial activities. Accordingly, garments & finance have been
identified as primary basis for segment information. The Company does
not have any secondary segment.
12. The company has re classified/regrouped/rearranged the previous
year figures wherever necessary.
Mar 31, 2012
1 CORPORATE INFORMATION
Spice Islands Apparels Limited is a public company domiciled in India
and incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on three stock exchanges in India. The company is
engaged in the manufacturing and selling of knitted and woven garments.
The company caters to both domestic and international markets. The
Company also deploys its surplus funds in financial activities.
2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared and presented in accordance with
Indian Generally Accepted Accounting Principles ('GAAP') under the
historical cost convention on the accrual basis. GAAP comprises
accounting standards notified by the Central Government of India under
the Companies (Accounting Standards) Rules, 2006, (as amended) under
section 211 (3C) of the Companies Act, 1956, other pronouncements of
Institute of Chartered Accountants of India, the provisions of
Companies Act, 1956 and guidelines issued by Securities and Exchange
Board of India. Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use. The Management evaluates and adopts
all recently issued or revised accounting standards on an ongoing
basis.
A. Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 10/- per share. Each holder of equity shares is entitled to one
vote per share. The company declares and pays dividends in Indian
rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March 2012, the amount of per share dividend
recognized as distributions to equity shareholders was Rs. 0.75 (31
March 2011 Rs.l/-)
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.
3 Balances of Sundry Debtors, Sundry Creditors, Loans and Advances,
Receivables and Payable are subject to confirmation/reconciliation, if
any.
4 In the opinion of the Board of Directors adequate provision has been
made in the accounts for all known liabilities and the current assets,
loans and advances have a value on realization in the ordinary course
of business at least equal to the value stated in the Balance Sheet.
5 Gratuity Plan:-
The following table set out the status of the plan as required under AS
15(revised)
6 Following Contingent Liabilities
are not provided for: 31-3-2012 31-3-2011
As per the order of Hon'ble Bombay
High Court, the Claim of 726,310 726,310
Apparel Export Promotion Council
has been guaranteed by furnishing
bank guarantee of equivalent amount
The Company is also involved in other lawsuits, claims, investigations
and proceedings, which arise in the ordinary course of business,
however, there are no such matters pending that the company expects to
be material in relation to its business.
7 Based on the information available with the Company, no supplier of
the company is registered under the Micro, Small and Medium Enterprise
Development Act, 2006. Hence, the balance due to Micro & Small
enterprises as defined under MSMED Act, 2006 is Rs. Nil (Previous Year
Rs. Nil). Further, no interest during the year has been paid or payable
under the terms of the MSMED Act, 2006.
8 Operating Lease
The Company's significant leasing arrangements are in respect of
operating leases for Guesthouses and Office Premises. These are
cancelable operating leases and these lease agreements are normally
renewed on expiry. The aggregate lease rentals payable are charged as
Lease Rentals under note no 25 of financial statements.
The company uses motor car and speed boat that is leased under
non-cancellable operating leases. The company has commitment under
non-cancellable operating leases as follows:
Lease payment recognized in the statement of profit & loss as lease
rentals under note no. 25 of financial statements
OnaccountofNon-cancellablelease 1,187,127 (Previous year Rs.1,728,180/-)
OnaccountofCancellableLease 150,000 (Previous year Rs. 1,63,500/-)
The company conduct its factory operations from facility that is leased
under a 72 month non cancelable lease expiring in December, 2016 for
which lumpsum interest free deposit of Rs. 50 lacs has been given,
repayable after the expiry of the lease period.
9 INCOMETAX
Provision of Rs. 13,56,000/-(P.Y. 75,25,000/-) is made towards liability
for income tax and Rs. 33,000/-(P.Y. 50,000/-) towards liability for
wealth tax.
10 During the financial year 2010-2011, the company sold all the shares
of M/s. Bhupco Alloys Limited, its subsidiary Company, to M/s. Emer
Hotels & Suites Pvt. Ltd. pursuant to approval of the same by the board
of directors of the Company vide its resolution dated 04/02/2011 for an
amount 1.116,20,843/-, against which an amount of Rs. 70 lacs was
received from M/s. Emer Hotels & Suites Pvt. Ltd. during the said year.
The management is of the opinion that an amount of Rs. 20,00,000/ - shall
be received during the year 2012-13. The remaining balance of Rs.
26,20,843/- is to be received from them only on receipt of rental
deposit from landlord in Bhupco Alloys Ltd. Since, the consideration of
Rs. 26,20,843/- is contingent on happening of an event in future, the
outcome of which cannot be ascertained accurately as at balance sheet
date, the same has not been recognized in the books of accounts as at
31 March 2012.
11 Segment Reporting
The Company's operations predominantly comprises of export of
manufactured garments. Company also deploys its surplus funds in
financial activities. Accordingly, garments & finance have been
identified as primary basis for segment information. The Company does
not have any secondary segment.
12 Till the year ended 31 March 2011, the company was using pre-revised
schedule VI to the companies Act 1956, for preparation and presentation
of its financial statements. During the year ended 31 March 2012, the
revised schedule VI notified under the companies Act,1956, has become
applicable to the company. The company has reclassified previous
year figures to conform to this year's classification.
Mar 31, 2010
1. Following Contingent Labilities are not provided for:
31.3.2010 31.3.2009
In respect of Income Tax Demand for A.Y.
1996-97 in - 288,895
dispute under appeal
As per the order of Honble Bombay High
Court, the Claim of 726,310 726,310
Apparel Export Promotion Council has been guranteed by furnishing Bank
gurantee of equivalent amount
The Company is also involved in other lawsuits, claims, investigations
and proceedings, which arise in the ordinary course of business,
however, there are no such matters pending that the company expects to
be material in relation to its business.
2. Loss on sale of fixed assets amounting to Rs. NIL (P.Y. Rs.
13,632,730/-) was charged to profit and loss account during the year on
account of closure of Bangalore Unit.
3. Impairment loss of Rs. NIL (P.Y. 6,623,989/-) has been reversed
during the year on account of closure of Bangalore Unit and sale of
fixed assets at Bangalore Unit.
4. The Company has initiated the process of obtaining confirmation
from suppliers who have registered themselves under the Micro Small
Medium Enterprise Development Act, 2006 (MSMED Act, 2006). Based on the
information available with the Company, the balance due to Micro &
Small Enterprises as defined under the MSMED Act, 2006 is Rs. NIL.
(Previous year Rs. NIL) Further, no interest during the year has been
paid or payable under the terms of the MSMED Act, 2006.
5. income tax
Provision of Rs. 68,00,000/- (P.Y. Rs. 12,75,000/-) is made towards
liability for income tax and Rs. 50,000/- (RY. Rs. 85,000/-) towards
iiability for wealth tax.
6. Related Party Disclosures
Related parties with whom transaction have taken place during the
year :
(As identified by the Management and relied upon by Auditors)
I. Subsidiary Company
Bhupco Alloys Ltd.
ii. Key Management Personnel
Mr. Umesh M. Katre Managing Director
Mr. Ashok Daryanani Director
Mr. Karl Dantas Director
Mr. Charuchandra Patankar Director
Mr. Rahul L. Mehta Director
7. Previous Years figures have been regrouped / rearranged wherever
necessary.
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