Home  »  Company  »  T T Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of T T Ltd.

Mar 31, 2014

1. Contingent liabilities not provided for in respect of:

Amount in Rs. Particulars For Year Ended For Year Ended 31.03.2014 31.03.2013

a) Guarantees given by Bank 30,408,000 24,131,000

b) Income tax matters in dispute 1,990,758 1,990,758

c) Other Matters - 5,220,874

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations.

2. Obligations and commitments outstanding:

a) Estimated value of contracts remaining to be executed NIL 233,700,000 on capital account and not provided for (net of advances)

b) Bills discounted with banks 950,943,044 560,110,996

3. a) Income Tax Assessments have been completed up to assessment year 2011-12 except for the Assessment year 2003-04 where the department has raised demand of Rs.15,85,758 and for Assessment Year 2010-11 where the department has intaited penalty proceeding. The management forsees that existing provision are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company''s policy a sum of Rs.100,643,439 (Previous year Rs. 76,315,803) has been shown as MAT credit entitlement under "Long term loan & advances".

4. Sales Tax assessments in different states have been completed up to the assessment year 2010-11. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account

5. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

6. Trade creditors include outstanding dues of small scale industries 19,58,714 (Previous year Rs. 24,25,132).The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them.

7 Derivative instruments and unhedged foreign currency exposure

As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs 38.93 Cr (P Y Rs. 32.65 crore).

8. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current / non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

9. Employee benefit obligations

Defined benefit plan

The employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized 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 compensation absences is recognized in same manner as gratuity.

10. Related party disclosures

The information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

Names of related parties and description of relationship:

1. Holding Company Nil

2. Subsidiaries Company Nil

3. Fellow Subsidiaries Nil

4. Associates Nil

5. Key Management Personnel Dr. Rikhab C. Jain, Mr. Sanjay Jain, Mrs. Jyoti Jain

6. Relatives of Key Management Personnel Mrs. Kala Devi Jain

11. Segment information

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

12. a) Figures in brackets, wherever given, are in respect of previous Year.

b) The company has reclassified previous year figures t conform to this year''s classification


Mar 31, 2013

1 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2. Contingent liabilities not provided for in respect of:

a) Guarantees given by Bank 24,131,000 10,900.000

b) Income tax matters in dispute 1,990,758 15,85,758

c) Other Matters 5,220,874 -

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company''s favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operations.

3. a) Income Tax Assessments have been completed up to assessment year 2010-11 except for the Assessment year 2003-04 where the department has raised demand of Rs.15,85,758 and for Assessment Year 2010-11 where the department has disallowed expenditure of Rs.41,34,844 (with NIL Demand), which has been claimed in next assessment year. Assessment for the year 2011-12 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company''s policy a sum of Rs.7,63,49,524 (Previous year Rs. 5,88,13,983) has been shown as MAT credit entitlement under "Long term loan & advances".

4. Sales Tax assessments in different states have been completed up to the assessment year 2009-10. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account

5. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

6. Trade creditors include outstanding dues of small scale industries 24,25,132 (Previous year Rs. 20,25,120).The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them.

7 Derivative instruments and unhedged foreign currency exposure

As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs 32.65 Cr (Previous Year NIL).

8. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current / non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

9. Employee benefit obligations

Defined benefit plan

The employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized 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 compensation absences is recognized in same manner as gratuity.

a) Reconciliation of opening and closing balances of the present value of the defined benefit obligation

The expected rate in increase in salary considered in actuarial valuation is based on consideration of inflation, seniority, promotion, accretion, and other relevant factors including supply and demand in the employment market.

10. Related party disclosures

The information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

Names of related parties and description of relationship:

1. Holding Company Nil

2. Subsidiaries Company Nil

3. Fellow Subsidiaries Nil

4. Associates Nil

5. Key Management Personnel Dr. Rikhab C. Jain, Mr. Sanjay Jain, Mrs.Jyoti Jain

6. Relatives of Key Management Personnel Mrs. kala Devi Jain

*During the previous year remuneration has been restricted to Rs 4Lacs per months as in compliance to Section 198,309 and schedule XIII of the Companies Act, 1956 in view of current year Losses. The same has been considered as amount held in trust by concerned director as per section provision of section 309 of the Companies Act , 1956.

11. Segment information

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

12. a) Figures in brackets, wherever given, are in respect of previous Year.

b) The company has reclassified previous year figures t conform to this year''s classification


Mar 31, 2012

1 Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

a) Terms/rights attached to Equity Shares

Company has only one class of equity shares having a par value of Rs.10/-. 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.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares

d) The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash nor has allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.

ii) Rupees Term Loan from Oriental Bank of Commerce (OBC), Punjab National Bank(PNB), State Bank of Mysore (SBM) and Indian Bank are secured by parri-passu charge on company's immoveable & moveable assets located at Gajroula, Avinashi, Rajula units and Wind Mills located at Govindhapuram & Kundadam Villages, Tirupur District of the company. Loans are further secured by personal guarantee of Shri Rikhab C. Jain, Chairman of the company. Term Loan carry ROI ranging from 12.75% to 13.50% p.a. The aforesaid interest rate is subject to benefit under TUF scheme of Government of India.

iii) Fixed Deposits carry interest @11.5%-13% and repayable within one to three Years from the date of Deposits.

iv) Borrowings from Directors and others is the amount inducted by the promoters as per the terms and conditions stipulated in sanctions of the loans by the bankers, are not repayable in next 12 Months therefore all such borrowings have been classified as "Long Term in nature"

The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") has been determined to the extent such parties have been identified by the company, on the basis of information and records available with them. This information has been relied upon by the auditors. Disclosure as required under section 22 of the Act, is as under. Disclosure in respect of interest due on delayed payment has been determined only in respect of payments made after the receipt of information, with regards to filing of memorandum, from the respective suppliers.

Direct taxes refundable represent amounts recoverable from the Income Tax Department for various assessment years. In respect of disputed demands, company has filed appeals which are pending at various levels and for assessment years where the issues have been decided in favour of the company, the company is in the process of reconciling / adjusting the same with the department. Necessary value adjustments shall be made on final settlement by the department.

In respect of subsidies receivable under the Technology Up-gradation Fund Scheme (TUFS) for Textiles established by Government of India, the lending institutions have yet to provide confirmation as to action taken by them towards claiming reimbursement of subsidies. Accordingly, subsidy receivable is subject to final adjustments that may arise on settlement of issues and actions taken by the lenders.

2. Contingent liabilities not provided for in respect of:

Amount in Rs.

As at 31.03.2012 As at 31.03.2011

a) Guarantees given by Bank 1,09,00,000 Nil

b) Income tax matters in dispute 15,85,758 15,85,758

Based on legal advice, discussions with the solicitors, etc., the management believes that there is fair chance of decisions in the company's favour in respect of all the items listed above and hence no provision is considered necessary against the same. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company's financial position and results of operations.

3. Obligations and commitments outstanding:

a) Estimated value of contracts remaining to be executed 7,926,00,000 12,18,49,000 on capital account and not provided for (net of advances)

b) Bills discounted with banks 30,69,65,255 40,94,83,704

4. The company had contracted to sale Plant & Machinery of its plant location at Avinashi via Memorandum of Understanding (MOU) dated 06.12.2006. However the customer defaulted on the delivery terms and conditions and hence the company had to dispose balance machinery at a discount.

As per terms of MOU the company has filed a claim against the customer for the loss suffered amounting Rs.1,60,69,250 and interest amounting to Rs.45,60,580 in the year 2008-09. The management is confident that a sum of Rs. 96,43,327 shown as recoverable (pending settlement), will be realised in due course.

5. a) Income Tax Assessments have been completed up to assessment year 2009-10 except for the Assessment year 2003-04 where the department has raised demand of Rs. 15,85,758 and for Assessment Year 2009-10 where the department has disallowed expenditure of Rs 41,34,844(with NIL Demand), which has been claimed in next assessment year. Assessment for the year 2010-11 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8,05,000, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the company's policy a sum of Rs.5,88,13,983 (Previous year Rs. 5,88,13,983) has been shown as MAT credit entitlement under "Long term loan & advances".

6. Sales Tax assessments in different states have been completed up to the assessment year 2007-08. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account

7. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

8. Trade creditors include outstanding dues of small scale industries 20,25,120 (Previous year Rs. 35,07,332).The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them.

9. Derivative instruments and unhedged foreign currency exposure

As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to Rs NIL (Previous Year NIL).

10. a) The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management's opinion, adjustments on reconciliation of the balances, if any required, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the confirmations are received and reconciliations completed.

b) Inventories, loans & advances, trade receivables and other current / non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

11. Employee benefit obligations Defined benefit plan

The employee's Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized 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 compensation absences is recognized in same manner as gratuity.

a) Reconciliation of opening and closing balances of the present value of the defined benefit obligation

The expected rate in increase in salary considered in actuarial valuation is based on consideration of inflation, seniority, promotion, accretion, and other relevant factors including supply and demand in the employment market.

12. Related party disclosures

The information regarding related parties has been determined on the basis of criteria specified in AS-18 "Related Party Disclosures" and to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the auditors.

*During the current year remuneration has been restricted to Rs 4Lacs per months as in compliance to Section 198,309 and schedule XIII of the Companies Act, 1956 in view of current year Losses. The same has been considered as amount held in trust by concerned director as per section provision of section 309 of the Companies Act , 1956.

13. Segment information

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There is not other reportable segment.

Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

14. a) Figures in brackets, wherever given, are in respect of previous Year.

b) 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

CurrentYear PreviousYear (Rs. in lakhs) (Rs. in lakhs) 1. Contingent Liabilities not provided for in respect of a) Guarantees given by Banks NIL NIL b) Export Bills discounted with banks under Irrevocable Letter of Credit 4476.17 1974.15 c) Income Tax liability not acknowledged and contested 15.86 15.86

2. Contract remaining to be executed on capital account is Rs. 937.45 lakhs (Previous year Rs. 2674 Lakhs) net of advances Rs.786.16 Lakhs (Previous year Rs. 509 Lakhs).

3. The company had contracted to sale Plant & Machinery of its plant location at Avinashi via Memorandum of Understanding (MOU) dated 06.12.2006. However the customer defaulted on the delivery terms and conditions and hence the company had to dispose balance machinery at a discount.

As per terms of MOU the company has filed a claim against the customer for the loss suffered amounting Rs.160.69 lakhs and interest amounting to Rs.45.61 lakhs in the year 2008-09. The management is confident that a sum of Rs. 96.43 lakhs, shown as recoverable (pending settlement), will be realised in due course.

4. a) Income Tax Assessments have been completed upto assessment year 2006-07 except for the Assessment year 2003-04 where the department has raised demand of Rs. 15.86 lakhs which is being contested. Assessment for the year 2007-08 is in progress, liability if any over and above the existing provisions will be provided only on completion of the assessments .The management forsees that existing provisions are sufficient for the same.

b) Erstwhile T.T. Finance Ltd. (Since amalgamated with the Company) has paid Income tax demand of Rs. 8.05 lakhs, pertaining to the assessment year 1992-1993. The company has contested the same and ITAT has quashed the demand. In appeal effect, the company has found an apparent mistake of not allowing credit of tax paid and hence filed a rectification application under section 154, which is pending.

c) In accordance with the companys policy a sum of Rs. 16245507.60 (Previous year Rs. 14908042) including Rs. 1337465.60 (Previous year Rs. Nil) for the year has been shown as MAT credit entitlement under Loan & advances.

5. Sales Tax assessments in different states have been completed upto the assessment year 2006-2007. Liability if any, arising out of remaining Sales Tax Assessments, which are in progress at various stages, will be provided only on the final assessment. However, management foresees no significant liability on this account.

6. In the opinion of the Management, the value on realisation of current assets. Loan and advances in the ordinary course of business would not be Less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

7. Consistent with its past policy, the company has on the basis of technical opinion continued to treat plant and machinery of spinning units at Gajroula, Avinashi & Rajula as continuous process plant.

8. Trade creditors include outstanding dues of small scale industries Rs. 22.78 lakhs (Previous year Rs. 12.76 lakhs) .The above information regarding small scale industrial undertakings has been determined to the extent such parties have been identified by the company, on the basis of information available with them. This has been relied upon by the Auditors.

9. Disclosure in accordance with section 22 of Micro, small and Medium Enterprises Development Act, 2006

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.

10. During the year, the company has capitalised the borrowing cost of Rs. 98.01 lakhs, incurred on acquisition of fixed assets. The allocation of interest on borrowings, for the purpose of capitalisation, in respect of funds borrowed and used for the purpose of obtaining a qualifying asset has been done on the basis of use of funds as per the best possible estimates.

11. As on date of Balance Sheet the company has gross exposure in the form of Plain Vanilla Forward Contracts for the purpose of hedging export sales amounting to US $ 2.02 million.

12. a) Some of the debit and credit balances appearing underthe head Fixed Deposits, Current Liabilities, Sundry Debtors and Loans & Advances are subject to confirmation / reconciliation.

b) Previous year figures have been regrouped or rearranged wherever considered necessary.

13. EMPLOYEE BENEFITS

As per Accounting Standard 15 "Employee Benefit" the disclosure of Employee Benefit, as defined in Accounting Standard are given below:-

Defined Benefit Plan

The employees Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined, using Projected Unit Credit Method, which recognized 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 compensation absences is recognized in same manner as gratuity.

The expected of rate in increase in salary considered in actuarial valuation is based on consideration of inflation, seniority, promotion, accretion, and other relevant factors including supply and demand in the employment market. The above information is certified by actuary.

14. SEGMENT IN FORMATION

The Company operate under single business segment "Textiles". Company deals in four product i.e. cotton, yarn, fabric and made- ups. There above information is certified by actuary Company sells cotton in domestic as well as in overseas market. Yarn, covers bought out yarn as well as production of basic cotton yarn over a very wide range of counts, which besides being primarily exported, is also marketed in Domestic Market. Fabric includes both bought out fabric as well as the value added activities relating to knitting, dyeing and processing. Textile Made-ups, made under licence of renowned brand "T.T".

15. DEFERRED TAXES

Deferred taxes arise because of difference in treatment between financial accounting and tax accounting, as "Timing difference". The tax effect of these timing differences is recorded as "deferred tax assets" (generally items that can be used as a tax deduction or credit in future periods) and "deferred tax liabilities" (generally items for which the Company has received a tax deduction, but have not yet been recorded i n the statement of income). The principal components of the net deferred tax balance are as follows:

 
Subscribe now to get personal finance updates in your inbox!