Mar 31, 2015
1. Rights, Preferences and Restrictions attached to Shares Equity Shares:
The Company has one class of shares referred to as equity shares having a par value of Rs. 1 each. Each shareholder is entitled to one vote per share held. The dividend as and when proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. In the event of liquidation, Equity Shareholders are eligible to receive the remaining assets ofthe Company after distribution of all preferential amounts, in proportion to their shareholding.
2. Term loans from HDFC Bank and Kotak Mahindra Prime Limited aggregating to Rs. 137.28 Lacs (Previous year Rs. 179.68 Lacs) under vehicle finance scheme are secured by an exclusive charge by way of hypothecation of specific vehicles purchased under the arrangements. Interest rate on term loans are 10 % and 10.93 % respectively.
3. Cash Credit facilities availed from Bank of Baroda is secured by hypothecation by way offirst pari passu charge on all its current assets and by way of second pari passu charge on immovable and all movable properties (excluding current assets) of the Company. Rate of Interest on Cash Credit facility is 13% (Previous year: 13.5%).
4. The Company had recognised liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on 31st March, 2014 of Rs. 51.74 Lacs as per the estimated pattern of dispatches. During the year, Rs. 51.74 Lacs was utilised for clearance of goods. Provision recognised under this class for the year is Rs. 21.86 Lacs, which is outstanding as on 31st March, 2015. Actual outflow is expected in the next Financial Year.
5. During the year, the Company has converted 22637 Sq.mtrs. of Land at Varachha Road from Fixed Assets to "Property under development at Book Value.
6. Consequent to the applicability of the Companies Act, 2013 with effect from 1st April, 2014, during the year ended 31st March, 2015, the depreciation is required to be provided as per the useful life specified in the Act or as re-assessed by the Company. Consequently, the Company having followed useful life specification as per Schedule II to the Companies Act, 2013, resultant depreciation for the year ended 31st March, 2015, is higher by Rs. 46.88 Lacs . Carrying value of the assets whose useful life is already exhausted as on 1st April, 2014, amounting to Rs. 7.01 Lacs has been adjusted in the opening balance of Retained Earnings.
7. The Company has reversed the amount of impairment, during the year aggregating to Rs. 584.41 Lacs on the assets which have been sold and such reversal has been credited to the Profit and Loss statement under the head Other Income.
8. Total of depreciation fund as on 31/03/2015 amounting to Rs. 14172.57 Lacs includes Impairment Loss of Rs. 7122.50 Lacs.
9. Diminution in value of Investments is in respect of Investment in Equity Shares of Garden Silk Mills Limited.
10. Details of Investmentin Partnership Firm:
The Company is a partner in M/s.Isha Enterprises. The other partners are Armorax Business Centre Pvt. Ltd., Intro Scope Properties Pvt. Ltd. and Praful Amichand Shah. The share of each partners in the firm is 49%, 2%, 39% and 10% respectively. The total capital of the firmis Rs. 1402.95 Lacs (Previous year Rs.1402.98 Lacs)
11. The management is of the view that there is virtual certainty supported by evidence that only 25% of the above amount will result in absorption or unabsorbed depreciation in near-term to long-term. Accordingly, the deferred tax assets have been recognised to that extent only
12. Net surplus on disposal of fixed assets includes reversal of impairment of Rs. 584.41 lacs related to assets which were sold during the year and on which impairment was provided in earlier years.
13. Related Party Disclosures:
As per the Accounting Standard 18 on "Related Party Disclosures" (AS 18) issued by the Institute of Chartered Accountants of India (ICAI), the disclosures oftransactions with the related parties as defined in the Accounting Standard are given below:
(i) List of related parties with whom transactions have taken place and relationships:
Sr. Name of Related Party Relationship No.
1 Garden Silk Mills Limited Group Company
2 M/s Isha Enterprises Partnership Firm
3 (1)ShriSanjayS.Shah* Key Management Personnel
(2) Shri M. R. Momaya ** Key Management Personnel
(3) Shri Yogesh C. Papaiya *** Key Management Personnel * Managing Director upto 31/05/2014
** Appointed as Managing Director w.e.f 01/06/2014
*** Appointed as Wholetime Director & CFO w.e.f. 11/08/2014
4 ShriRajenP.Shah Relatives of key Management
5 Amika Indian Textiles & Personnel where Art Museum Pvt. Ltd. transactions have taken place.
Note: Related party relationship is as identified by the Company and relied upon by the Auditors.
14. During the year under review, the Company has discontinued the manufacturing activity at itsSynthetic Fibre Spinning (SFS) plant at Village Vareli,Taluka Palsana,Dist. Surat, which had become unviable due to competitive market conditions. The Company earned a pre-tax profit of Rs.74.23 Lacs for the year ended 31st March, 2015, from its discontinued operations. The tax implication on the same amounted Rs.14.84 Lacs. The financial impact of the discontinuance can not estimated by the Company presently.
15. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.
Mar 31, 2012
Nature of Security and terms of repayment for Long-Term secured borrowings:
1.1 Term loan from a bank amounting to Rs 93.15 Lacs (Rs 75.90 lacs due after one year; Rs 17.25 lacs due within one year) represents loan from HDFC Bank Ltd. under Vehicle Finance Scheme is secured by an exclusive charge by way of hypothecation of specific vehicle purchased under the arrangement. The loan is repayable in 60 monthly installments commencing from 13.10.2011. Last installment is due on 07.09.2016. Rate of interest is 10% per annum.
2.1 Loan of Rs 2900.00 Lacs from promoters was secured by way of first charge on all the movable plants and machinery and by way of first mortgage on the immovable properties situated in the State of Gujarat and in the Union Territory of Dadra & Nagar Haveli together with immovable plant and machinery of the Company in favour of the Lender.
3.1 Includes advance received against sale of fixed assets: Rs 165.65 lacs (Previous Year Rs Nil)
4.1 The Company had recognised liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on 31st March, 2011 of Rs 167.00 lacs as per the estimated pattern of despatches. During the year, Rs 167.00 lacs was utilised for clearance of goods. Provision recognised under this class for the year is Rs 125.99 lacs, which is outstanding as on 31st March, 2012. Actual outflow is expected in the next financial year.
5.1 With the on-going capital expansion plans of Garden Silk Mills Limited (the Company) and the expected increase in capacities, reduction in costs and increase in operational efficiencies, the financial performance and position of the Company is expected to significantly improve. Therefore, the decline in value of investments of the Company in Garden Silk Mills Limited is considered to be temporary.
6.1 Balances with banks in deposit accounts amounting to Rs 2.95 lacs (Previous Year Rs 2.95 lacs) have maturities of more than 12 months.
Note 7 : Micro and Medium scale business entities:
There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
Note 8 :
The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/disclosure.
Mar 31, 2010
1. With the implementation of the sanctioned Rehabilitation Scheme, during the year, the Company has generated sufficient returns to wipe out all its accumulated losses and to make its net worth positive.
2. The Company has unabsorbed depreciation & carried forward losses under Tax laws. In absence of virtual certainty of sufficient future taxable income, net deferred tax assets has not been recognized by way of prudence in accordance with Accounting Standard (AS) 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.
3. During the previous year ended 31st March, 2009, 73664 Sq. Mtrs. of land at Village Vareli, Taluka Palsana, Dist. Surat was converted to stock in trade at book value. The Company had also converted 22637 Sq.Mtrs. of land at Varachha Road from "Property under development" to Fixed Assets at book value.
4. Excise duty deducted from sales and job charges represents excise duty collected on sale of goods. Excise duty shown under expenditure represents the difference between excise duty on opening and closing uncleared stocks of finished goods.
5. The Company has identified only one product - segment viz, yarns as per Accounting standard 17 of ICAI, and has not identified any geographical segment, where risks & returns are materially different.
6. Micro and Medium scale business entities:
There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act. 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
7. In response to the Companys Misc. Application, a review hearing was held on 16th December, 2009 before the Bench-I of Board for Industrial And Financial Reconstruction (BIFR). The Honble Bench of BIFR, on successful implementation of Sanctioned Scheme, the Net Worth being positive & the accumulated losses of the Company completely wiped out as on 31.03.2009. vide its order dated 18th December, 2009 inter alia directed that the Company has ceased to be a sick industrial company, within the meaning of Section 3(1 )(o) of the Sick Industrial Companies Act (SICA) and is therefore, discharged from the purview of SICA / BIFR.
8. With the on-going capital expansion plans of Garden Silk Mills Limited (the Company) and the expected increase in capacities reduction in costs and increase in operational efficiencies, the financial performance and position of the Company is expected to significantly improve. The current capital market conditions in the country do not also reflects the current value of the Company and its potential. Therefore, the decline in value of investments of the Company in Garden Silk Mills Limited is considered to be temporary.
9. Liability for employer benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the accounting standard 15 (Revised) the details of which are as under.
The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules
10. Previous years figures have been regrouped wherever necessary to conform to current years classification.