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Notes to Accounts of Superhouse Ltd.

Mar 31, 2015

1. Disclosure in terms of AS 15 Defined Benefit Plan

The employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with LIC. The present value of obligation is determined based on actuarial valuation using Projected 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.

2. The related party disclosure in accordance with AS 18 'Related Party Disclosures' is given below:

A. Relationship

i. Subsidiary (Wholly owned) Companies

a) Superhouse (U.K.) Ltd., UK

b) Superhouse (USA) International Inc., USA

c) Superhouse Middle East FZC, Azman

d) Briggs Industrial Footwear Ltd. (U.K.)

e) Linea De Seguridad S.L.U., Spain

f) Superhouse GMBH, Germany

ii. Joint Ventures & Associates: Proportion of voting power held by co.

As at As at 31.03.2015 31.03.2014

Joint Venture: Nil

Associates:

a) Unnao Tanneries Pollution Control Company 34.05% 34.05%

(A company registered under Section 25 of erstwhile the Companies Act, 1956)

b) Steven Construction Ltd. 46.67% 46.67%

c) Amin International Ltd. 31.13% 31.13%

d) Knowledgehouse Ltd. 31.85% 31.85%

e) Creemos International Ltd. 48.63% —

iii. Key Management Personnel (KMP) & Relatives:

a) Mr. Mukhtarul Amin - Chairman & Managing Director

b) Mr. Zafarul Amin - Jt. Managing Director (Son of Mr. Mukhtarul Amin)

c) Mr. Vinay Sanan - Executive Director

d) Mr. A.K. Agarwal - Director (Finance) - CFO

e) Mr. Mohd. Shadab - Director

f) Mrs. Shahina Mukhtar - Director (Wife of Mr. Mukhtarul Amin)

g) Mr. R. K. Agrawal - Company Secretary

h) Mr. Deepak Sanan & Mr Manu Sanan (Son of Mr. Vinay Sanan)

iv. Others: Enterprise over which KMP or relatives of KMP are able to exercise significant influence:

a) M/s Prime International (a partnership firm)

b) M/s Shoe House (a partnership firm)

c) Chowdhary Overseas Ltd.

d) Super Tannery Ltd.

e) Rojus Enterprises Ltd.

f) Modriba Hygiene Solutions Ltd.

g) Superhouse Accessories Ltd.

h) Rivera Trendz Pvt. Ltd.

i) Super Shoes Ltd.

j) Mayfair Leather Exports Ltd.

3. Contingent liabilities (Rupees)

2014-15 2013-14

Claim against the company not acknowledged 1,808,514 3,769,874 as debt Contingent Liabilities in respect of:

i. Guarantees issued by the Bank 74,429,780 9,719,340

ii. Corporate Guarantee(s) to bank(s) against credit facilities extended to Wholly Owned Subsidiaries in U.K., UAE and Spain 511,875,964 348,384,293

iii. Letter of Credit opened and 239,105,701 324,410,665 outstanding

iv. Duty on Export obligation pending 61,565,983 73,678,570

v. Electricity demand pending litigation 2,860,000 1,583,688

4. Financial Statements of the subsidiary companies and related detailed information will be made available to the investors, of the company and subsidiary companies, seeking such information. The financial statements of the subsidiary companies are also kept at Registered Office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary companies.

5. Disclosure in terms of AS 28

The management has carried out an exercise of identifying the asset that may have been impaired, during the year, in respect of each cash generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.

6. Disclosure in terms of AS 29

The company has recognised contingent liabilities as disclosed in Note 38 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.

7. Disclosure as per clause 32 of the Listing Agreement

The aforesaid advances has been given to meet the working capital requirements and the same has been utilised for the same purposes.

b) Investments: Refer Note No. 11(A) & (B).

c) Guarantee given:

The company has given corporate guarantee, for securing the credit facilities (Term Loans, Working Capital Loans and other Non-Fund Based credit facilities) availed by WOS from Bank(s), aggregating to Rs. 51,18,75,964 (GBP 42,90,000 for Briggs Industrial Footwear Ltd. GBP 2,90.000 for Superhouse (UK) Ltd. Euro 416,162.52 for Linea De Seguridad SLU. Spain and AED 35,43.714 for Superhouse Middle East FZC, UAE) and the same has been utilised for the same purposes.

d) Security provided:

The company has not provided any other security to/for any of its subsidiaries and associates excepting the corporate guarantee as mentioned at para (c) herein above.

8. Trade Receivables include Rs. 2,72,02,128 being amount outstanding for more than two years and/or under litigation. Management is confident that entire amount is recoverable hence the same has been considered as good and no provision is required.

9. The company has investment of Rs. 14,74,10,476 in the shares of Linea De Seguridad SLU, a wholly owned subsidiary of the company (WOS). Further the company has Trade Receivable amounting to Rs. 2,54,32,601 from the WOS. The net worth of WOS has substantially eroded due to operational losses. Losses incurred by the WOS have not been provided in the accounts of the company. Considering the fact that investment is of a strategic nature and business of WOS is in the initial stage, no provision is considered necessary by the management at present, for any diminution in value of investment.`


Mar 31, 2014

1. Disclosure in terms of AS 15

Defined Benefit Plan

The employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with LIC. The present value of obligation is determined based on actuarial valuation using Projected 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.

2. The related party disclosure in accordance with AS 18 "Related Party Disclosures" is given below: A. Relationship i. Subsidiary (Wholly owned) Company a) Superhouse (U.K.) Ltd., UK b) Superhouse (USA) International Inc., USA c) Superhouse Middle East FZC, Azman d) Briggs Industrial Footwear Ltd. (U.K.) e) Linea De Seguridad S.L.U., Spain f) Superhouse GMBH, Germany

iii. Key Management Personnel (KMP) & Relatives:

a) Mr. Mukhtarul Amin – Chairman & Managing Director b) Mr. Zafarul Amin – Jt. Managing Director (Son of Mr. Mukhtarul Amin) c) Mr. Vinay Sanan – Executive Director d) Mr. A.K. Agarwal – Director (Finance) e) Mr. Mohd. Shadab – Director f) Mrs. Shahina Mukhtar – Director (Wife of Mr. Mukhtarul Amin) g) Mr. R.K. Agrawal – Company Secretary h) Mr. Deepak Sanan & Mr Manu Sanan (Son of Mr. Vinay Sanan)

iv. Others: Enterprise over which KMP or relatives of KMP are able to exercise significance influence:

a) M/s Prime International (a partnership firm) b) M/s Shoe House (a partnership firm) c) Chowdhary Overseas Ltd. d) Super Tannery Ltd. e) Rojus Enterprises Ltd. f) Modriba Hygiene Solutions Ltd. g) Superhouse Accessories Ltd. h) Creemos International Ltd. i) Rivera Trendz Pvt. Ltd. j) Super Shoes Ltd. k) Mayfair Leather Exports Ltd.

B. The following transactions were carried out at arms length price with related parties in the ordinary course of business during the year:

Figure in bracket pertains to Previous Year C. No amount has been written off/back or provided as doubtful debts during the year in respect of related parties.

3. Contingent liabilities (Rupees) 2013-14 2012-13

Claim against the company not acknowledged as debt 3,769,874 4,322,094

Contingent Liabilities in respect of:

i. Guarantees issued by the Bank 9,719,340 11,760,899

ii. Corporate Guarantee(s) to bank(s) against credit facilities extended to Wholly Owned Subsidiaries

in U.K., UAE and Spain 348,384,293 301,240,242

iii. Letter of Credit opened and outstanding 324,410,665 206,672,425

iv. Duty on Export obligation pending 73,678,570 97,527,847

v. Electricity demand pending litigation 1,583,688 1,583,688

vi. The detail of disputed dues (net of amounts paid) as per the clause ix(b) of Section 227 (4A) of the Companies Act, 1956

* denotes amount less than 0.01 million

4. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 08.02.2011 and 21.02.2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956 subject to fulfilment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

5. Financial Statements of the subsidiary companies and related detailed information will be made available to the investors, of the company and subsidiary companies, seeking such information. The financial statements of the subsidiary companies are also kept at Registered Office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary companies.

6. Disclosure in terms of AS 28

The management has carried out an exercise of identifying the asset that may have been impaired, during the year, in respect of each cash generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.

7. Disclosure in terms of AS 29

The company has recognised contingent liabilities as disclosed in Note 39 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.

8. Disclosure as per clause 32 of the Listing Agreement

9. The company has investment of Rs. 13,08,08,476 in the shares of Linea De Seguridad SLU, a wholly owned subsidiary of the company (WOS). Further the company has Trade Receivable amounting to Rs. 55,27,334 from the WOS. The net worth of WOS has substantially eroded due to operational losses. Losses incurred by the WOS have not been provided in the accounts of the company. Considering the fact that investment is of a strategic nature and business of WOS is in the initial stage, no provision is considered necessary by the management at present, for any diminution in value of investment.

10. Confirmation of balances with sundry debtors / creditors, loans and advances and other parties have not been received in few cases.

11. Expenditure on Reserch & Development :

12. Previous Year Figures

Figures of the previous year have been regrouped/rearranged wherever required in order to make them comparable with those of current year. Figures have been rounded off to the nearest rupee.


Mar 31, 2013

1. Disclosure in terms of AS 15 Defined Benefit Plan

The employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with LIC. The present value of obligation is determined based on actuarial valuation using Projected 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.

2. The related party disclosure in accordance with AS 18 "Related Party Disclosures" is given below: A. Relationship

i. Subsidiary (Wholly owned) Company

a) Superhouse (U.K.) Ltd., UK

b) Superhouse (USA) International Inc., USA

c) Superhouse Middle East FZC, Azman

d) Briggs Industrial Footwear Ltd. (U.K.)

e) Linea De Seguridad S.L.U., Spain

f) Superhouse GMBH, Germany

iii. Key Management Personnel (KMP) & Relatives:

a) Mr. Mukhtarul Amin - Chairman & Managing Director

b) Mr. Zafarul Amin - Jt. Managing Director (Son of Mr. Mukhtarul Amin)

c) Mr. Vinay Sanan - Executive Director

d) Mr. A.K. Agarwal - Director (Finance)

e) Mr. Mohd. Shadab - Director

f) Mrs. Shahina Mukhtar - Director (Wife of Mr. Mukhtarul Amin)

g) Mr. Deepak Sanan & Mr Manu Sanan (Son of Mr. Vinay Sanan)

iv. Others: Enterprise over which KMP or relatives of KMP are able to exercise significance influence:

a) M/s Prime International (a partnership firm)

b) M/s Shoe House (a partnership firm)

c) Chowdhary Overseas Ltd.

d) Super Tannery Ltd.

e) Rojus Enterprises Ltd.

f) Modriba Hygiene Solutions Ltd.

g) Superhouse Accessories Ltd. h) Creemos International Ltd.

i) Rivera Trendz Pvt. Ltd.

j) Super Shoes Ltd.

Contingent liabilities

(Rupees) 2012-13 2011-12

Claim against the company not acknowledged as debt 4,322,094 2,563,214

Contingent Liabilities in respect of:

i. Guarantees issued by the Bank 11,760,899 16,352,506

ii. Corporate Guarantee(s) to bank(s) against credit facilities extended to Wholly Owned Subsidiaries in U.K., UAE and Spain 301,240,242 295,422,620

iii. Letter of Credit opened and outstanding 206,672,425 215,111,043

iv. Duty on Export obligation pending 97,527,847 52,234,566

v Electricity demand pending litigation 1,583,688 1,583,688

3. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 08.02.2011 and 21.02.2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956 subject to fulfilment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

4. Financial Statements of the subsidiary companies and related detailed information will be made available to the investors, of the company and subsidiary companies, seeking such information. The financial statements of the subsidiary companies are also kept at Registered Office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary companies.

5. Disclosure in terms of AS 28

The management has carried out an exercise of identifying the asset that may have been impaired, during the year, in respect of each cash generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.

6. Disclosure in terms of AS 29

The company has recognised contingent liabilities as disclosed in Note 39 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.

7. Confirmation of balances with sundry debtors / creditors, loans and advances and other parties have not been received in few cases.

8. Previous Year Figures

Figures of the previous year have been regrouped/rearranged wherever required in order to make them comparable with those of current year. Figures in bracket pertains to previous year. Figures have been rounded off to the nearest rupee.


Mar 31, 2012

1.1 Term/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.

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.

1.2 Bonus Shares/Shares for consideration other than cash issued & Buy Back of shares during preceding five years: NIL

1.3 Shares held by holding/ultimate holding company and/or their subsidiaries/associates: NIL

2.1 Indian rupee & foreign currency loans from bank(s) are primarily secured by equitable mortgage/hypothecation of specific fixed assets. Also secured collaterally by equitable mortgage of company's specific land and building. Further secured by personal guarantee of promoter director(s) of the company. ECB carries a non disposable undertaking of the Shares of the acquired WOS.

3.1 Building and Plant and Machinery include Gross Block Rs. 1,79,88,995 (Rs. 1,79,88,995) and Rs. 10,07,184 (Rs. 10,07,184) respectively and Net block Rs. 1,51,31,480 (Rs. 1,54,24,701) and Rs. 6,89,624 (Rs. 7,23,264) respectively in respect of expenditure incurred on capital assets, ownership whereof does not vest with the company.

3.2 Certain Fixed Assets of the Company were revalued by the Approved Valuer, on the basis of fair market value as on 31.12.1994. Accordingly value of Fixed Assets of the Company was increased by Rs. 15,59,29,935 (Leasehold Land Rs. 3,09,83,028, Factory Building Rs. 6,40,82,953 and Plant and Machinery Rs. 6,08,63,954) and the corresponding amount was credited to the Revaluation Reserve.

4.1 The Company (Accounting Standards) Second Amendment Rules, 2011 has amended the provisions of AS-11 relating to "The effect of the Change in Foreign Exchange Rates" vide notification dated December 29, 2011. In terms of the amendments, the company has opted to carry over the Long Term Monetary Loss and amortize the same over balance period of such long term asset/liability.

4.1 Superhorse RO - SRL, a wholly owned subsidiary (WOS) of the company in Romania has been wound up during the year vide Order dated 14.03.2012. Consequently, the Investment of the company in form of Shares, Share Application Money & Advances aggregating to Rs. 27,15,838 has been written off during the year.

In respect of items which are purchased both from indigenous and imported sources, the identity of individual items consumed cannot be established but segregation of consumption between imported and indigenous sources has been made on a reasonable approximation determined from the Company's records.

5. Defined Benefit Plan

The employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with LIC. The present value of obligation is determined based on actuarial valuation using Projected 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.

6. The related party disclosure in accordance with AS 18 Related Party Disclosures issued by ICAI, is given below: A. Relationship

i. Subsidiary (Wholly owned) Company

a) Super house (U.K.) Ltd., UK

b) Super house (USA) International Inc., USA

c) Super house Middle East FZC, Azman

d) Super house Ro SRL, Romania (wind up during the year)

e) Briggs Industrial Footwear Ltd. (U.K.)

ii. Joint Ventures & Associates:

Joint Venture: Nil Associates:

a) Unnao Tanneries Pollution Control Company

(A company registered under Section 25 of the Companies Act, 1956)

b) Tritan Leather Works Pvt. Ltd.

c) M/s Prime International (a partnership firm)

d) M/s Shoe House (a partnership firm)

e) Steven Construction Ltd.

f) Chowdhary Overseas Ltd.

g) Amin International Ltd.

h) M/s Aleena International

i) Rojus Enterprises Ltd.

j) Moderiba Hygene Solution Ltd. k) Superhouse Accessories Ltd. l) Creemos International Ltd. m) Knowledge house Ltd.

iii. Key Management Personnel & Relatives:

a) Mr. Mukhtarul Amin - Chairman & Managing Director

b) Mr. Zafarul Amin - Jt. Managing Director (Son of Mr. Mukhtarul Amin)

c) Mr. Vinay Sanan - Executive Director

d) Mr. A.K. Agarwal - Director (Finance)

e) Mr. Mohd. Shadab - Director

f) Mrs. Shahina Mukhtar - Director (Wife of Mr. Mukhtarul Amin)

g) Mr. Deepak Sanan (Son of Mr. Vinay Sanan)

7. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 08.02.2011 and 21.02.2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956 subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

8. Financial Statements of the subsidiary companies and related detailed information will be made available to the investors, of the company and subsidiary companies, seeking such information. The financial statements of the subsidiary companies are also kept at Registered Office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary companies.

9. In accordance with Accounting Standard 17, Segment Reporting; segment information has been given in consolidated financial statements of Super house Ltd., and therefore, no separate disclosure on segment information is given in these financial statements.

10. Disclosure in terms of AS 28

The management has carried out an exercise of identifying the asset that may have been impaired, during the year, in respect of each cash generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.

11. Disclosure in terms of AS 29

The company has recognized contingent liabilities as disclosed in Note 39 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.

12. Confirmation of balances with sundry debtors / creditors, loans and advances and other parties have not been received in few cases.

13. Expenditure on Research & Development :

14. Previous Year Figures

The Financial Statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31st March, 2012 are prepared as per revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of revised Schedule VI for the previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

(Amount in Rupees)

2010-11 2009-10

1. Contingent Liabilities in respect of:

i. Guarantees issued by the Bank 1,41,99,488 1,09,29,896

ii. Corporate Guarantee(s) to bank(s) against credit facilities extended to wholly owned subsidiaries in U.K. and UAE 7,80,16,360 7,70,05,840

iii. Letter of Credit opened and outstanding 15,26,42,852 17,05,02,134

iv. Duty on Export obligation pending 13,48,33,212 11,69,53,857

v. Electricity demand pending litigation 15,83,688 15,83,688

vi. Forward Exchange Contracts 21,85,04,057 6,61,82,000

vii. Uncalled Liability on Shares partly paid 40,00,000 40,00,000

2. Management is of the view that the current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. Provision for all known liabilities is adequate and not in excess of the amount considered necessary. No provision for losses in Subsidiary Companies has been considered.

3. Confirmation of balances with sundry debtors / creditors, loans and advances and other parties have not been received in few cases.

4. Sundry Debtors include Rs. 35,92,594 (Rs. 56,79,140), which are old and/or the matter is under dispute / litigation. Efforts are being made for recovery; hence no provision for bad and doubtful debts has been considered necessary.

5. Building and Plant and Machinery include Gross Block Rs. 1,79,88,995 (Rs. 1,79,88,995) and Rs. 10,07,184 (Rs. 10,07,184) respectively and Net block Rs. 1,54,24,701 (Rs. 1,57,17,921) and Rs. 7,23,264 (Rs. 7,56,904) respectively in respect of expenditure incurred on capital assets, owner- ship whereof does not vest with the company.

6. Certain Fixed Assets of the Company were revalued by the Approved Valuer, on the basis of fair market value as on 31.12.1994. Accordingly value of Fixed Assets of the Company was increased by Rs. 1559.30 Lacs (Leasehold Land Rs. 309.83 Lacs, Factory Building Rs. 640.83 Lacs and Plant and Machinery Rs. 608.64 Lacs) and the corresponding amount was credited to the Revalu- ation Reserve.

7. Disclosure in terms of AS 28

The management has carried out an exercise of identifying the asset that may have been im- paired, during the year, in respect of each cash generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.

8. Disclosure in terms of AS 29

The company has recognised contingent liabilities as disclosed in Note No. B-2 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.

9. The Ministry of Corporate Affairs, Government of India vide its General Notification No. S.O. 301 (E) dated 8th February 2011 issued under Section 211 (3) of the Companies Act, 1956 has ex- empted certain classes of companies from disclosing certain information in their profit and loss account. The Company being an 'export oriented company' is entitled to the exemption. Accord- ingly, disclosures mandated by paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II, Schedule VI to the Companies Act, 1956 have not been provided.

10. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956 subject to fulfillment of conditions stipu- lated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

11. Annual Accounts of the subsidiary companies and related detailed information will be made avail- able to the investors, of the company and subsidiary companies, seeking such information. The Annual Accounts of the subsidiary companies are also kept at head office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary compa- nies.

12. Additions to Fixed Assets and Capital Work in Progress includes Rs. 13,22,152 (Rs. 15,11,120) being borrowing costs capitalized in accordance with the AS 16 'Borrowing Costs' issued by ICAI.

13. The company has an investment of Rs. 3,322 in the Shares of Superhouse RO SRL, Romania (SRL) a wholly owned subsidiary of the company. Further the company has interest free loans, advances and other receivables amounting to Rs. 27,23,506 recoverable from SRL. The Net worth of SRL has substantially eroded due to operational losses. Considering the fact that invest- ment is of a strategic nature and business of SRL is in the initial stage, no provision is considered necessary by the management at present, for any diminution in value of investment and also for losses that may arise in respect of advances and other receivables from SRL.

14. Other Liability includes Rs. 1,15,59,232 (Rs. 66,70,490) and Provisions includes Rs. 5,30,928 (Rs. 6,79,016) being amount payable to directors.

15. In accordance with Accounting Standard-17 'Segment Reporting; segment information has been given in the consolidated financial statements of Superhouse Limited, and therefore, no separate disclosure on segment information is given in these financial statements.

16. The company has requested confirmation from Suppliers regarding their registration (filing of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount (principal and/or interest) due to any micro/small enterprises (SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of the Section 16 of the Act.

17. The related party disclosure in accordance with AS 18 'Related Party Disclosures' issued by ICAI, is given below :

A. Relationship

i. Subsidiary (Wholly owned) Company :

a) Superhouse (U.K.) Ltd., UK

b) Superhouse (USA) International Inc., USA

c) Superhouse Middle East FZC, Azman

d) Superhouse Ro SRL, Romania

ii. Joint Ventures & Associates :

Joint Venture : Nil

Associates :

a) Unnao Tanneries Pollution Control Company

(A company registered under Section 25 of the Companies Act, 1956)

b) Tritan Leather Works Pvt. Ltd,

c) M/s Prime International (a partnership firm)

d) M/s Shoe House (a partnership firm)

e) Steven Construction Ltd.

f) Chowdhary Overseas Ltd.

g) Amin International Ltd.

h) Aleena International

i) Rojus Enterprises Ltd.

j) Moderiba Hygene Solution Ltd.

k) Superhouse Accessories Ltd.

I) Creemos International Ltd.

m) Knowledgehouse Ltd.

iii. Key Management Personnel & Relatives :

a) Mr. Mukhtarul Amin - Chairman & Managing Director

b) Mr. Vinay Sanan - Executive Director

c) Mr. A.K. Agarwal - Director (Finance)

d) Mr. Zafarul Amin - Jt. Managing Director (Son of Mr. Mukhtarul Amin)

e) Mr. Mohd. Shadab - Director

f) Mrs. Shahina Mukhtar - Director (Wife of Mr. Mukhtarul Amin)

g) Mr. Deepak Sanan (Son of Mr. Vinay Sanan)

Defined Benefit Plan :

The employees' Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with LIC. The present value of obligation is determined based on actuarial valuation using Projected 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.

18. Previous year's figures have been regrouped wherever necessary.

19. Figure in the brackets pertains to previous year.

20. The statement on particulars required to be furnished as per the provisions of part IV of Schedule VI to the Companies Act, 1956 is attached


Mar 31, 2010

(Amount in Rupees)

2009-10 2008-09

1. Contingent Liabilities in respect of:

i. Guarantees issued by the Bank 1,09,29,896 92,01,500

ii. Corporate Guarantee(s) to bank(s) against credit facilities extended to wholly owned subsidiaries in

U.K. and UAE 7,70,05,840 8,53,34,040

iii. Letter of Credit opened and outstanding 17,05,02,134 8,07,10,961

iv. Duty on Export obligation pending 11,69,53,857 10,41,29,113

v. Electricity demand pending litigation 15,83,688 33,89,233

vi. Forward Exchange Contracts 6,61,82,000 17,58,06,681

vii. Uncalled Liability on Shares partly paid 40,00,000 40,00,000

b) All the Derivative Instruments have been acquired for hedging purposes.

2. Management is of the view that the current assets, loans and advances, if realised in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. Provision for all known liabilities is adequate and not in excess of the amount considered necessary. No provision for losses in Subsidiary Companies has been considered.

3. Confirmation of balances with sundry debtors / creditors, loans and advances and other parties have not been received in few cases.

4. Sundry Debtors include Rs. 56,79,140 (Rs. 89,09,369), which are old and/or the matter is under dispute / litigation. Efforts are being made for recovery; hence no provision for bad and doubtful debts has been considered necessary.

5. Building and Plant and Machinery include Gross Block Rs. 1,79,88,995 (Rs. 1,89,94,054) and Rs. 10,07,184 (Rs. 10,07,184) respectively and Net block Rs. 1,57,17,921 (Rs. 1,67,79,546) and Rs. 7,56,904 (Rs. 7,90,544) respectively in respect of expenditure incurred on capital assets, owner- ship whereof does not vest with the company.

6. Certain Fixed Assets of the Company were revalued by the Approved Valuer, on the basis of fair market value as on 31.12.1994. Accordingly value of Fixed Assets of the Company was increased by Rs. 1559.30 Lacs (Leasehold Land Rs. 309.83 Lacs, Factory Building Rs. 640.83 Lacs and Plant and Machinery Rs. 608.64 Lacs) and the corresponding amount was credited to the Revalu- ation Reserve.

7. Disclosure in terms of AS 28

The management has carried out an exercise of identifying the asset that may have been im- paired, during the year, in respect of each cash generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.

8. Disclosure in terms of AS 29

The company has recognised contingent liabilities as disclosed in Note No. B-2 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the year.

9. The Ministry of Corporate Affairs, the Government of India vide its Order No. 46/76/2010-CL-111 dated 26th March, 2010 issued under Section 211 (4) of the Companies Act, 1956 has exempted the company from the disclosure of quantitative details in compliance of paras 3(i)(a), 3(ii)(a) (1) & (2), 3(ii)(b) and 3(ii)(d) of the part II of Schedule VI to the Companies Act, 1956.

10. The Ministry of Corporate Affairs, the Government of India vide its Order No. 47/169/2010-CL-lll dated 17th March, 2010 issued under Section 212 (8) of the Companies Act, 1956 has exempted the company from attaching the Balance Sheet and Profit and Loss Account of subsidiaries under Section 212 (1) of the Companies Act, 1956. As per the Order, key details of each subsidiary are attached along with the Statement under Section 212 of the Companies Act, 1956.

11. Annual Accounts of the subsidiary companies and related detailed information will be made avail- able to the investors, of the company and subsidiary companies, seeking such information. The Annual Accounts of the subsidiary companies are also kept at head office of the company and that of subsidiary companies for inspection of investors of the company and subsidiary compa- nies.

12. Additions to Fixed Assets and Capital Work in Progress includes Rs. 15,11,120 (Rs. 49,18,382) being borrowing costs capitalized in accordance with the AS 16 Borrowing Costs issued by ICAI.

13. The company has an investment of Rs. 3,322 in the Shares of Superhouse RO SRL, Romania (SRL) a wholly owned subsidiary of the company. Further the company has interest free loans, advances and other receivables amounting to Rs. 27,23,506 recoverable from SRL. The Net worth of SRL has substantially eroded due to operational losses. Considering the fact that invest- ment is of a strategic nature and business of SRL is in the initial stage, no provision is considered necessary by the management at present, for any diminution in value of investment and also for losses that may arise in respect of advances and other receivables from SRL.

14. Other Liability includes Rs. 66,70,490 (Rs. 18,26,359) and Provisions includes Rs. 6,79,016 (Rs. 16,19,400) being amount payable to directors.

15. The company has requested confirmation from Suppliers regarding their registration (filing of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount (principal and/or interest) due to any micro/small enterprises (SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of the Section 16 of the Act.

16. The related party disclosure in accordance with AS 18Related Party Disclosuresissued by ICAI, is given below.

A. Relationship

i. Subsidiary (Wholly owned) Company :

a) Superhouse (U.K.) Ltd., UK

b) Superhouse (USA) International Inc., USA

c) Superhouse Middle East FZC, Azman

d) Superhouse Ro SRL, Romania ii. Joint Ventures & Associates :

Joint Venture : Nil Associates :

a) Unnao Tanneries Pollution Control Company

(A company registered under Section 25 of the Companies Act, 1956)

b) Tritan Leather Works Pvt. Ltd.

c) M/s Prime International (a partnership firm)

d) M/s Shoe House (a partnership firm)

e) Steven Construction Ltd. (formerly Superhouse Overseas Ltd.)

f) Chowdhary Overseas Ltd.

g) Amin International Ltd. h) Aleena International

i) Rojus Enterprises Ltd. (formerly Nigar Enterprises Ltd.) iii. Key Management Personnel & Relatives :

a) Mr. Mukhtarul Amin - Chairman & Managing Director

b) Mr. Vinay Sanan - Executive Director

c) Mr. A.K. Agarwal - Director (Finance)

d) Mr. Zafarul Amin - Jt. Managing Director (Son of Mr. Mukhtarul Amin)

e) Mr. Mohd. Shadab - Director

f) Mrs. Shahina Mukhtar - Director (Wife of Mr. Mukhtarul Amin)

g) Mr. Deepak Sanan (Son of Shri Vinay Sanan)

17. Previous years figures have been regrouped wherever necessary.

18. Figure in the brackets pertains to previous year.

19. The statement on particulars required to be furnished as per the provisions of part IV of Schedule VI to the Companies Act, 1956 is attached

 
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