Mar 31, 2018
Primary
Packing Credit:- Hypothecation of stock meant for export and charge on the current assets of the company.
Letter of Guarantee:- Counter guarantee of the company and extension of charge on current assets of the compnay.
Forward contract:- Letter of undertaking from the company to indemnify the bank for loss, if any on account of exchange rate fluctuation.
* Term loan taken from punjab national bank against hypothecation of machinery purchased out of bank loan repayable in 60 equal installmentss after a moratorium perriod of 6 months carrying interest rate @ MCLR(5Yrs) 1.65% i.e. 11.25%.
Collateral
The above facility is collaterally secured against property at Plot no.21, Sector -6, Industrial Area, Faridabad owned by SPL Industries Limited. Loan is secured by the personal guarantee of : (1) Mr.Mukesh Kumar Aggarwal (2) Mrs. Shashi Aggarwal (3) Mr. Vijay Jindal (4) Mr. Narender Aggarwal.
Defined Benefit Plan
The employeeâs gratuity fund scheme managed by a trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
1 SEGMENT REPORTING
The Segment reporting of the Company has been prepared in accordance with IND AS-108, âOpearting Segmentâ (Specified Under section 133 of the companies Act 2013, read with Rule 7 of Companies (Accounts) Rules 2015). For management purposes, the company is organized into business units based on its products and services and has two reportable segments as follows:-
(a) Manufacturing cotton knitted garments and made ups and Processing Charges
(b) Trading of garments segments have been identified as reportable segments by the Company chief operating decision maker (âCODMâ). Segment profit amounts are evaluated by the board, which has been identified as the CODM, in deciding how to allocate resources and in assessing performance.
Segments Revenue,Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amount allocated on a reasonable basis. Unalloacted expenditure consits of common expenditure incurred for all the segments and expenses incurred at corporate level.The assets and liabilities that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.
The accounting policies of the reportable segments are the same as the Companyâs accounting policies described in Note 3. Segment profit (Earnings before interest, depreciation and amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its CODM in deciding how to allocate resouces and in assesing performance. The Company financing (Including finance costs and finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.
2 Current Assets, loans & advances
Sundry debtors, loans & advances are subject to confirmation and adjustment theron (if any)
3 MSME DISCLOSURE
MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management)
4 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, need to spent at least 2% of average net profit for the immediately preceeding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are as per CSR Policy of the Company. A CSR committee has been formed by the company as per the Act. During the year the funds were donated/spent as per detailed above which are specified in Schedule VII of the Companies Act, 2013:
5. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.
6 Financial Instruments
i) Financial assets measured at fair value through profit/loss
This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed in Note 3.
The carrying value of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities approximate their fair values largely due to the short-term maturities.
Fair Value Hierarchy
The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:
- Non-current borrowings including current maturity of long term borrowings: Fair value has been determined by the Company based on parameters such as interest rates.
Other non-current financial assets and liabilities: Fair value the carrying value as considered to approximate to fair value.
Derivative financial assets/liabilities: The Company enters into derivative contracts with various counterparties, principally financial institutions. Forward foreign currency contracts are valued using valuation techniques with market observable inputs. The most frequently applied valuation techniques for such derivatives include forward pricing using present value calculations, foreign exchange spot and forward premium rates. There has been no transfer between level 1 and level 2 duirng the above periods.
Mar 31, 2016
Provision for leave encashment is recognized on the basis of gross pay per day of an employee multiplied with the accumulated leaves as on the reporting date. No employee has accumulated leaves exceeding 30 days, However same will be paid on future dates. Further, there is no long term provision for compensated absences as on 31st March, 2016.
The employee''s gratuity fund scheme managed by a Trust (LIC of India and SBI ) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
1 SEGMENT REPORTING
As per Accounting Standard AS 17 on âSegment Reportingâ segment information is as follow:-Primary Segment Reporting (Business Segment):
Primary business segments of the company is sale of cotton knitted garments and made ups and Processing Charges, which in the context of Accounting Standard 17 on âSegment Reportingâ as notified in Companies (Accounting Standard ) Rules, 2006 . But the manufacturing relating to cotton knitted garments and processing charges is common therefore the expenditure relating to these two activities can only be bifurcated on estimated basis. Sale relating to sale of knitted garments and processing charges is shown separately.
Secondary Segment Reporting (Geographical Segments):
The Following is the distribution of the company''s consolidated sales by geographical segment, regardless of where the goods were produced:
* Disputed tax liability pertains to tax amount involved in appeals
2. CURRENT ASSETS, LOANS & ADVANCES
Sundry Debtors, Loans & Advances are subject to confirmation and adjustment there on (if any)
3. MSME DISCLOSURE
MSME Disclosure as required under Notification No. G.S.R. 679 (E) dated 04th September, 2015 issued by the Ministry of Corporate Affairs (as certified by the Management)
4. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.
Mar 31, 2015
1 General Information
The company was incorporated on December 6, 1991 in India. The company
is a garment manufacturing company and majorly deals in exports however
during the year, value of exports are INR 124,392,737 and further
company has domestic sales and processing income during the year.
2. The above cash flow statement has been prepared under the indirect
method set out in AS-3 and notified under Companies Act, 2013
3. Figures in brackets indicate cash outflows
4. The notes to the Financial Statements are an integral part of the
Cash Flow Statement This is the Cash Flow Statement referred to in our
report of even date
5 Segment Reporting
As per Accounting Standard AS 17 on "Segment Reporting" segment
information is as follow:- Primary Segment Reporting (Business
Segment):
Primary business segments of the company is sale & export of cotton
knitted garments and made ups and Processing Charges, which in the
context of Accounting Standard 17 on "Segment Reporting" as
notified in Companies (Accounting Standard ) Rules , 2006 . But the
manufacturing relating to cotton knitted garments and processing
charges is common therefore the expenditure, assets & liabilities
relating to these two activities cannot be bifurcated. Sale relating to
sale of knitted garments and processing charges is shown separately.
6 The previous year figures have been regrouped/ reclassified,
wherever necessary to conform to the current year presentation.
Mar 31, 2014
1. General Information
The company was incorporated on December 6, 1991 in India. The company
is a garment manufacturing company and majorly deals in exports however
during the year, value of exports are INR 17,860,290 and further
company has domestic sales and processing income during the year.
2.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 in entitled to one
vote per share. There is no dividend proposed by the Board of
Directors.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
3. Segment Reporting
As per Accounting Standard AS 17 on "Segment Reporting" segment
information is as follow:- Primary Segment Reporting (Business
Segment):
Primary business segments of the company is sale of cotton knitted
garments and made ups and Processing Charges, which in the context of
Accounting Standard 17 on "Segment Reporting" as notified in Companies
(Accounting Standard) Rules , 2006 . But the manufacturing relating to
cotton knitted garments and processing charges is common therefore the
expenditure relating to these two activities can only be bifurcated on
estimated basis. Sale relating to sale of knitted garments and
processing charges is shown separately.
4. Contingent Liability and Commitments
Particulars As at As at
31.03.2014 31.03.2013
1. Bills Discounted -
2. Disputed tax liability * 7,77,49,273 8,52,81,903
3. Surety given to Sales Tax
Department for third party -
4. Debt not acknowledge as liability - 14,64,353
Total 7,77,49,273 4,74,25,042
* Disputed tax liability includes INR 6.28 crores raised by department
relating to AY 2005-06 u/s 147/143(3) of the Income Tax Act on the
basis of CAG query which subsequently dropped by CAG but matter still
pending before First Appellate Authority
5. The previous year figures have been regrouped/ reclassified,
wherever necessary to conform to the current year presentation.
Mar 31, 2013
1.1 Deferred Tax Assets recognized to the extent of Deferred Tax
Liability for the year ending 31st March 2012.
1.2 As the company has substantial losses and value of the business
has reduced substantially . Also there is huge fxed cost relating to
depreciation. In view of facts stated above and keeping in view the
fnancial position of the company the Deferred Tax Assets in respect of
carry forward losses has been recognized only to the extent of Deferred
Tax Liability.
2 Related Party Disclosure
The names of related parties of the company as required to be disclosed
under Accounting Standard 18 are as follows: Key Management Personnel
(KMP)
Sh. H. R. Gupta Sh. Vijay Jindal Sh. Mukesh Aggrawal Sh. Anil Garg
During the current and previous year, there are no transactions with
the related parties
3 Segment Reporting
As per Accounting Standard AS 17 on "Segment Reporting" segment
information is as follow:-
Primary Segment Reporting (Business Segment):
Primary business segments of the company is sale of cotton knitted
garments and made ups and Processing Charges, which in the context of
Accounting Standard 17 on "Segment Reporting" as notifed in Companies
(Accounting Standard ) Rules , 2006 . But the manufacturing relating to
cotton knitted garments and processing charges is common therefore the
expenditure relating to these two activities can only be bifurcated on
estimated basis. Sale relating to sale of knitted garments and
processing charges is shown separately.
Secondary Segment Reporting (Geographical Segments):
The Following is the distribution of the company''s consolidated sales
by geographical segment, regardless of where the goods were produced:
4 Contingent Liability and Commitments
Particulars As at As at
31.03.2013 31.03.2012
1.Bills Discounted
2.Disputed tax liability * 85,281,903 46,723,000
3.Surety given to Sales Tax
Department for third party
4. Debt not acknowledge as liability 1,464,353 702,042
Total 86,746,256 47,425,042
* Disputed tax liability includes INR 6.28 crores raised by department
relating to AY 2005-06 u/s 147/143(3) of the Income Tax Act on the
basis of CAG query which subsequently dropped by CAG but matter still
pending before First Appellate Authority.
5 The previous year fgures have been regrouped/ reclassifed, wherever
necessary to conform to the current year presentation. Note 34
Signifcant Accounting Policies & Notes on Financial Statements
6 General Information
The company was incorporated on December 6, 1991 in India. The company
is a garment manufacturing company and majorly deals in exports however
during the year, the exports are Nil and the company has only domestic
sales and processing income.
Mar 31, 2012
* Fixed Assets of the company have been revalued as on 31st March, 2012
except for Car (vehicles), furniture & fixture and other equipments
whose total net carrying amount before revaluation of fixed assets is
less than 5% of the total net carrying amount of total fixed assets.
The effect of revaluation of fixed assets have been taken by restating
the Net Book Value by adding there in the net increase on account of
revaluation. Due to revaluation there is increase in value of Land by
Rs. 647,518,624/- and increase in net book value of Building by Rs.
35,731,273/- as per valuation report of Certified/Registered valuer Mr.
Ashok Raichand and M/S P & A Valuetech Private Limited. The Plant and
Machinery is valued at net book value of Plant and Machinery as on 31st
March 2012 as per valuation report of Mr. Ashok Raichand ( certified/
registered valuer).
* Rs. 24,398,043/- are secured by first charge in respect of the
immovable property situated at Plot No. 21, Sector 6 Faridabad
(Haryana) together with all building and structures there on including
plant & machinery. The loan is a Standard Asset as per IRAC norms and
carries interest rate at BPLR minus 150 bps. The loan is further
secured by personal guarantee of Shri H.R. Gupta and Shri Vijay Jindal.
The balance loan is repayable in monthly equal installment of 1,060,784
/- till 1st February, 2014.
** Rs. 502,498/- (Car Loan from ICICI bank) is secured against the
hypothecation of vehicle (Honda City) carrying interest rate of 12.5%
per annum. The loan is repayable in 36 installments of 19,169/- each
starting from 15th November, 2011 till 15th October, 2014.
a. First pari - passu charge on entire asset of the company including
receivables, both present and future as primary security.
b. First exclusive charge as collateral security on factory land &
building situated at Plot No. 7, Plot No. 39 and Plot No. 22, sector 6,
Faridabad, Haryana.
c. Second pari - passu charge on entire fixed asset of the company on
which IDBI is having first charge.
The status of the accounts maintained with the State Bank of India
slipped to Non Performing Asset (NPA) on 23rd May, 2011. Notice under
SARAFESI Act was issued to the company on 26th December, 2011 raising a
demand of Rs. 85,27,33,880/- including undue liability of Rs.
25,79,39,410/- (Rs. 12,99,34,285 relating to MTM derivative losses (not
provided for) and Rs. 12,80,05,125 relating to amount of installments,
not due on Corporate loan).
The Company has submitted proposal for normalizing the account as
Standard with SBI and the same under consideration with SBI.
Rs. 43,35,42,955 against working capital loan in the books of accounts
does not account for the derivative loss of Rs. 4,53,82,639 but banks
certificate shows amount of Rs. 47,89,25,595 as on 31st March, 2012
including derivative loss of Rs.4,53,82,639.
Also interest on bank borrowing from SBI is charged on the basis of
last interest charged by the bank when status of the account slipped to
NPA. Any penal or other interests claimed by the bank over and above
are not accounted for.
* Investment in Elkay Strips Limited formerly subsidiary NIL(Previous
year 255364 Equity Shares of Rs. 100/- each)
The company has disposed off the equity shares of M/s Elkay Strips Ltd
On March 19, 2012 (260368 shares) at Rs. 18,04,35,024, based on the
valuation report.
** Advances recoverable from Income Tax Authorities are net of
provision of Rs. 1,41,83,000/- which has been considered in the
financials owing to the various demands by the Income Tax Department
which are confirmed as liability.
"Receivable from various statutory departments including Sales Tax,
CBEC and Income Tax Authorities.
*** Advance to supplier is net of provision for doubtful amount of Rs.
5,49,57,410/-
Defined Benefit Plan
The employee's gratuity fund scheme managed by a Trust (LIC of India
and SBI ) is a defined benefit plan. The present value of obligation is
determined based on actuarial valuation using the Project Unit Credit
Method, which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation. The obligation for leave
encashment is recognised in the same manner as gratuity. The company
had permanently closed down its two units and the other one unit has
remained partly closed during the year. Closed unit has not been
considered for the purpose of actuarial valuation.
Deferred Tax Assets recognized to the extent of Deferred Tax Liability
for the year ending 31st March 2012.
As the company has substantial losses and value of the business has
reduced substantially . Also there is huge fixed cost relating to
interest and depreciation. In view of facts stated above and keeping in
view the financial position of the company the Deferred Tax Assets in
respect of carry forward losses has been recognized only to the extent
of Deferred Tax Liability.
1 Related Party Disclosure
AS per accounting Standard 18, the disclosure of transaction with the
related parties are given below:
List of related parties where control exists and related parties with
whom transaction have taken place and relationships:
1. Subsidiaries
Elkay Strips Ltd. (Up to 19th March 2012)
2. Key Management Personnel (KMP)
Sh. H R Gupta
Sh. Vijay Jindal
Sh. Mukesh Aggrawal
Sh. Anil Garg
2 Segment Reporting
As per Accounting Standard AS 17 on 'Segment Reporting' segment
information is as follow:- Primary Segment Reporting (Business
Segment):
Primary business segments of the company is sale of cotton knitted
garments and made ups and Processing Charges, which in the context of
Accounting Standard 17 on 'Segment Reporting' as notified in
Companies (Accounting Standard ) Rules , 2006 . But the manufacturing
relating to cotton knitted garments and processing charges is common
therefore the expenditure relating to these two activities can only be
bifurcated on estimated basis. Sale relating to sale of knitted
garments and processing charges is shown separately.
(Figures in Rupees)
Particulars As at As at
31st March,
2012 31st March,
2011
3 Contingent Liability and Commitments
1. Bills Discounted Nil 9,900,000
2. Disputed tax liability 46,723,000 14,512,000
3. Surety given to Sales Tax Department
for third party - 100,000
4. Debt not acknowledge as liability 702,042 -
Total 47,425,042 24,512,000
4 Financial Derivatives And Instrument:
During the year SBI intimated to the company about the derivative
losses amounting to Rs 12,99,34,285/- as on 26-12-2011 but the company
has not acknowledged and accepted these liabilities and therefore not
provided for in the accounts.
Mar 31, 2010
1. CONTINGENT LIABILITIES
(Rs. In Lacs)
As At 31.03.2010 As At 31.03.2009
(i) Bank Guarantee for A.E.P.C.
and Custom Duty 0.51 28.75
(ii) Bills Discounted 1060.07 2116.98
(iii) Outstanding Letter of Credit
(Net of Margin money(P.Y. 167.24
Lacs)) NIL 1296.04
(iv) Income Tax Act 1961
(disallowances) 418.36 412.85
(v) Disputed Liability towards
Provident Fund and E.S.I
(Net of paid under protest) 15.32 15.32
(vi) Disputed Liability towards
Sales Tax (Net of paid under
protest) 71.83 71.83
(vii) Surety given to Sales Tax
Department for third party 1.00 1.50
2. In case of default in repayment of principal amount of the term
loans taken from IDBI or interest thereon IDBI has a right to convert
at par at its option 100% of the defaulted amount into fully paid up
equity shares of the company. The balance of aforesaid loans as at
31.03.2010 is Rs. 255.12 Lacs. (As at 31.03.2009 is Rs. 449.89 Lacs)
3. (b) The company has been advised that the computation of the net
profit for the purpose of remuneration to directors under section 349
of the Companies Act, 1956 need not be enumerated since no commission
has been paid to the Directors. Only fixed monthly remuneration has
been paid to the Directors as per Schedule XIII of the Companies Act,
1956.
4. The Company has invested Rs. 66.65 Lacs (Previous Year Rs. 66.65
Lacs) in the equity share capital of MS Elkay International Ltd. The
company have incurred losses as a result of which the net worth of
aforesaid companies has depleted. As investment is held as long term
investment and considering the assets base of investee companies, the
management is of the opinion that the diminution in value of equity
shares is of temporary in nature and accordingly no provision is
considered necessary for the same.
5. The Company has given securities of Rs.275 lacs ( Previous Year Rs.
275 lacs) and invested Rs. 343.15 lacs ( Previous Year Rs. 95.75 lacs)
in the equity share capital of M/S Elkay Strips Ltd. which has negative
NAV but the market value of land and building is high.
6. The company has disposed off the equity shares of M/s Mode prints
Ltd. On December 17, 2009.
7. Interest income includes Rs.15.73 Lacs (Previous Year Rs 30.62
Lacs) on loans to body corporate, Rs. 11.36 Lacs (Previous Year Rs.
24.60 Lacs) on fixed deposit with bank.
8. In some cases, the company has received intimation from micro &
small enterprises under ÃThe micro, small and medium Enterprises
Development Act 2006Ã. The amount remaining unpaid as at 31st March
2010 was Rs. 2.29 Lacs (Previous year Rs. 1.71 Lacs) No payments beyond
the appointed date were noticed. No interest was paid or payable under
the act.
9. Segment Information:
a) Primary Segment Reporting by Business Segment:
Primary business segment of the company is sale of cotton knitted
garments and made ups i.e. T-Shirts, Bed Sheets etc, which in the
context of Accounting Standard 17 on Segment Reportingà as notified in
Companies (Accounting Standard ) Rules , 2006 .
10. In opinion of Board of Director; Fixed Assets, Currents Assets,
Loans and Advances have a value on realization in ordinary course of
business at least equal to the amount at which they are stated in
Balance- Sheet and the provision for all the liability have been made
in the books of accounts, which have been relied upon by the Auditors.
11. Personal accounts are subject to adjustment / reconciliation /
confirmation.
12. Previous year figures have been regrouped/ rearranged, wherever
considered necessary.