Notes to Accounts of Technocraft Industries (India) Ltd.
Mar 31, 2023
Estimation of Fair value :
The above valuation of the Investment Properties are in accordance with the Ready Reckoner rates as prescribed by the Government of Maharashtra for the Purpose of levying Stamp Duty. Since the Valuation is based on the Published Ready Reckoner rates , the Company has Classified the same under Level 2
iii ) Leasing arrangements
The Company has entered in to various a non cancellable leasing agreements . There is an escalation clause in the lease agreement during the lease year in line with expected general inflation. There are no restrictions imposed by lease arrangements . There are no contingent rents. The total Future minimum lease rentals receivable at the balance sheet date are as under (for non cancellable Lease Period only)
a). Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of '' 10 /-per share. Each holder of equity share is entitled to one vote per share.
In the event of liquidation of the Company, the holder 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.
d). The Company has not issued any equity shares as bonus or for Consideration other than cash and has bought back 15,00,000 /- equity Shares during the Period of five years immediately preceeding 31st March 2023. The said equity shares were bought back on 24-2-2023.
Represent Reserve created during the buyback of Equity Shares and it is non distributable Reserve .
Capital Reserve
During amalgamation / merger approved by Honourable Court, the excess of net assets taken over the Consideration paid , if any, is treated as Capital Reserve .
The reserve arises on transfer portion of the net profit pursuant to the earlier Provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act , 2013.
Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
1) Term Loan From ICICI Bank( I II) is Secured against Fixed Deposits of the Company.
2) Term Loan From Kotak Mahindra Bank Is Secured by way of Hypothecation over Plant & Machinery & Equipment acquired out of the said Loan & also by way of Equitable Mortgage over Specific Immovable Properties of Textile Division situated at Amravati ( Yarn Division)
3) Car Loan from State Bank of India is Secured by way of Hypothecation over Motor Car acquired out of the said Loan
4) Term Loan from HSBC Bank is Secured by way of PariPassu Charge on Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Specific Immovable Properties of Scaffolding Division situated at Murbad.
II. Terms of Repayment
1) Term Loan from ICICI Bank (I) is Repayable in 20 Quarterly equal Installments starting from 31-3-2020 & ending on 28-2-2025. Rate of Interest is 9.10 % p.a as at the year end.(31st March 2022: 7.95 % p.a)
2) Term Loan from ICICI Bank (II) is Repayable in 20 Quarterly equal Installments starting from 30-9-2020 & ending on 31-8-2025. Rate of Interest is 9.55 % p.a at the year end. (31st March 2022 : 8.00% p.a)
3) Term Loan from Kotak Mahindra Bank is Repayable in 20 Quarterly equal Installments starting from 05.01.2021 & ending on 05.10.2025 .Rate of Interest is 8.95 % p.a as at the year end. (31st March 2022 7.10% p.a
4) Car Loan from State Bank of India is Repayable in 36 Quarterly equal Monthy Installments starting from 8-42022 & ending on 8-3-2025 . Rate of Interest is 7.25 % p.a as at the year end. (31st March 2022 7.25% pa)
5) Term Loan from HSBC Bank is Repayable in 20 Quarterly equal Installments starting from 27.09.2019 & ending on 27.06.2024 . Rate of Interest is 9.48 % p.a as at the year end. (31st March 2022 7.65 % p.a)
III. Quarterly Statements of Current Assets filed by the Company with Banks are in agreement with the Books of Accounts.I. Nature of Security
1. Overdraft From H.D.F.C Bank is Secured Against Fixed Deposits of the Company.
2. Working Capital Loan From HDFC Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties of Scaffolding Division situated at Murbad .
3. Export Packing Credit Against Confirmed Orders From HDFC Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties of Scaffolding Division Situated at Murbad.
4. Export Packing Credit Against Confirmed Orders From Kotak Mahindra Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Textile Division situated at Murbad & Amravati (Yarn Division).
5. Working Capital Loan From Kotak Mahindra Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Textile Division situated at Murbad & Amravati (Yarn Division).
6. Export Packing Credit Against Confirmed Orders From HSBC Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties of Scaffolding Division Situated at Murbad.
7. Export Packing Credit Against Confirmed Orders From ICICI Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Textile Division sitauted at Murbad
8. Working Capital Loan from ICICI Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Textile Division situated at Murbad.
9. Overdraft from ICICI Bank was Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Textile Division situated at Murbad .
10. Export Packing Credit ( Rupee ) Against Confirmed Orders From DBS Bank is Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Drum Closure Division situated at Murbad
11. Export Packing Credit ($ ) Against Confirmed Orders From DBS Bank was Secured Against the Hypothecation of Stock & Book Debts Both Present & Future of Drum Closure Division situated at Murbad
Note-Disclosure of payable to vendors as defined under the âMicro , Small and Medium Enterprise Development Act ,2006â is based on the information available with the Company regarding the Status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance sheet date .There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on Balance brought forward from previous year.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Note 28 : Discontinued Operations -Power Division
The Company had Permanently Shut down its 15 MW Captive thermal Power Plant in F.Y 20-21 as operating the same was not found to be commercially feasible considering the High Operating Cost of generating the captive power & Withdrawal of Income Tax Benefits under new Income Tax regime and had Classified the operations as Discontinued operations
|
Contingent Liabilities |
|||
|
S. |
Contingent Liabilities not provided For |
As at |
As at |
|
No |
31st March 2023 |
31st March 2022 |
|
|
I. |
Stand by Letter of Credit (SBLC) aggregating to Euro 17,50,000 ( P.Y Euro 17,50,000 ) and USD 14,50,000 (P.Y USD 14,50,000 ) given to Banks on behalf of Technocraft Trading Spolka Z.O.O, Poland. |
2,756.71 |
2,572.84 |
|
II |
Stand by Letter of Credit (SBLC) aggregating to USD 40,00,000 ( P.Y USD 40,00,000 ) given to Banks on behalf of Anhui Reliable Steel Technology Co.Ltd,China. |
3,286.80 |
3,031.70 |
|
III. |
Corporate Guarantee aggregating to Pounds 25,00,000 (P.Y Pounds 25,00,000) given to Bank on behalf of Technocraft International Ltd, UK. |
2,541.19 |
2,486.37 |
|
IV. |
Corporate Guarantee aggregating to USD 20,00,000 (P.Y USD 12,00,000 ) given to Banks on behalf of Technosoft Engineering Inc. ,USA |
1,643.40 |
909.51 |
|
V. |
Corporate Guarantee aggregating to USD 1,50,00,000 (P.Y USD 1,50,00,000) given to Banks on behalf of AAIT/ Technocraft Scaffold Distribution LLC. |
12,325.50 |
11,368.88 |
|
VI |
Corporate Guarantee aggregating to USD 20,00,000 (P.Y NIL) given to Banks on behalf of Technocraft NZ Limited |
1,643.40 |
- |
|
VII. |
Corporate Guarantee aggregating to '' 100,00,00,000 (P.Y NIL) given to Banks on behalf of Technocraft Textiles Limited |
10,000.00 |
- |
|
VIII. |
Bank Guarantee issued in favour of Suppliers , Customers & Other Statutory Authorities |
3,922.34 |
3,250.40 |
1) The transactions with related parties are made on terms equivalent to those that are Prevailing in armâs Length transactions.
Outstanding balances at the year end are unsecured .The Company has not recorded any impairment of receivables relating to amounts owned by the related Parties .This assessment is undertaken each Financial year through examining the Financial Position of the related party and the market in which the related Party operates.
2. Loan given to subsidiaries have been utilised for the Purposes for which Loan have been advanced by the Parent Company.
3. Guarantee Provided to the Lenders of the Subsidiaries are for availing working capital Facilities from the lender banks.
* excludes Provision for Gratuity & Compensated leave for Key Managerial Personnel as Separate Actuarial Valuation is not available
The Company has the following Defined Benefit Plans
Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (âThe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes.
With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.
The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption,the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.
The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption,the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.
Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers.Based on the management approach as defined in Ind AS 108, the chief operating decision maker (CODM) evaluates the companies performance and allocates resources based on an analysis of various performance indicators by business segment and geographic segment. Accordingly, information has been presented both along business segment and geographic segment.The accounting principle used in the preparation of financial statements are consistently applied to record revenue and expenditure in individual segments,and are as set out in the significant accounting policies.
The Company has identified Drum Closures,Scaffoldings,Yarn & Fabric as primary business segments of the Company (Continuing Operations) and has classified Power Division as Discontinued Operations
The above business segments have been identified considering : i) The nature of the product ii ) The deferring risk and returns iii) The internal financial reporting systems
The Geographical Segments considered for Disclosure are as Follows
a) Revenue within India includes Revenue from Sales of Products (including Scrap) & Services to Customers Located within India and earnings in India.
b) Revenue outside India includes Revenue from Sales of Products & Services to Customers Located outside India and earnings outside India and export Incentive benefits.
Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to Particular segments on a reasonable basis, have been included under âUnallocableâ .Inter segment transfer, are accounted for at competitive market prices, charged to unaffiliated customer for similar goods.
A. Financial instruments by category and fair value hierarchy :
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
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 assets or liabilities that are not based on observable market data (unobservable inputs)
The following methods and assumptions were used to estimate the fair values of financial instruments :
i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
ii) The fair values of the equity / Mutual Fund investments which are quoted, are derived from quoted market prices in active markets.
Note 36 : Financial Risk Management
Risk management framework
The Companyâs activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Companyâs primary risk management focus is to minimize potential adverse effects of all the risk on its financial performance. The Board of Directors and the Audit Committee are responsible for overseeing the Companyâs risk assessment and management policies and processes.
The Companyâs has exposure to the following risks arising from financial instruments:
¦ Credit risk ;
¦ Market risk ; and
¦ Liquidity risk
The Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set and periodically reviewed on the basis of such Information.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the company. The Company categorises a trade receivable for write off when a debtor fails to make contractual payments or on case to case basis. Where trade receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as Income in the statement of profit or loss.
The Company measures loss rate for trade receivables from Individual customers based on the historical trend, industry practices and the business environment in which the entity operates .Loss rates are based on Past Trends . Based on the historical data, no probable loss on collection of receivable is anticipated & hence no provision is considered.
In case of Credit risks from balances with banks and financial institutions , the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by creditrating agencies.
In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counterparties. The Companyâs maximum exposure in this respect is the maximum amount that the Company would have to pay if the guarantee is called upon. The maximum exposure relating to financial guarantees instruments is disclosed in note no 30 (contingent liabilities).
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly of currency risk and interest rate risk. Financial Instrument affected by Market risks includes loans and borrowings and foreign Currency Receivables and payables .The Company has set processes and policies to assess, control and monitor the effect of the risk on the financial performance of the company.
i) Currency Risk
This is the risk that the Company may suffer losses as a result of adverse exchange rate movement during the relevant period. The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The senior management personnel are responsible for identifying the most effective and efficient ways of managing by entering into forward contracts and monitored by board of directors.
b) Foreign Currency Risk Sensitivity
A reasonably possible strengthening / (weakening) of the Indian Rupee against various below currencies at 31st March would have affected the measurement of financial instruments denominated in those currencies and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. The Company has exposure to Interest rate risk, arisisng principally on changes in base lending rate/ LIBOR rates. As the Percentage of Borrowings with Floating Interest rate is very small as Compared to Total Borrowings & hence the interest rate risk for the Company as whole is very Low.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price .Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due .The Company maintains flexibility in funding by maintaining availability under committed credit lines. The Management monitors rolling forecasts of the Companyâs Liquidity position and cash and cash equivalents on the basis of the expected cash flows. The Company assessed the Concentration of risk with respect to its debt and concluded it to be low.
For the Purpose of Companyâs Capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The Primary Objective of the Companyâs Capital management is to ensure that it maintains an efficient capital Structure and maximise shareholder Value. The Company is monitoring capital using Net debt equity ratio as its base, which is Net debt to equity.
I. Explanation for Change in ratio by more than 25% as compared to preceding year
a) Increase in Debt Equity Ratio is due to Increase in Borrowings in the current year as compared to the Previous year.
b) Increase in Net Capital Turnover ratio is due to Increase in Revenue from Operations & reduction in Net Working Capital requirement as Compared to the Previous year
c) Market Dynamics.
II. Earnings for Debt Service= Earnings before Interest Cost , depreciation and amortisation, exceptional items and tax.
Debt service = Interest Cost for the year Principal repayment of Long Term debt Liabiliies within one year.
Cost of Goods Sold = Cost of Materials Consumed Purchases of Stock in trade Changes in inventories Manufacturing and operating expenses
Working Capital = Current Assets -Current Liabilities
Earnings before Interest & Taxes = Profit after exceptional items and before tax Interest Cost Capital Employed = Shareholder Equity Total debt -Deferred tax liability
(i) The Company does not have any Benami property , where any proceeding has been initiated or pending against the Company for holding any Benami Property
(ii) The Company does not have any transactions with companies struck off .
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period .
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year
(v) The Company has not advanced or loaned or invested funds to any other persons or entities including foreign entities (intermediaries) with the understanding that the intermediary shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ( Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any persons or entities , including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee , security or the like on behalf of the ultimate beneficiaries.
(vii) The Company does not have any such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act , 1961 ( such as search or survey or any other relevant provisions of the Income Tax Act , 1961.
Note-41 Other Accompanying Notes
1) The Figures have been rounded off to the nearest lakhs of Rupees upto two decimal Places.
2) Previous Years Figures have been regrouped / rearranged where ever necessary to make them Comparable with the Current year Figures
3) Note 1 to 41 Forms an Integral Part of the Financial Statements As per our report of even date
Mar 31, 2018
Note 1: Related Party disclosures
The related Parties as per the terms of Ind AS-24," Related Party Disclosures". (Specified under Section 133 of the Companies Act 2013, read with Rule 7 of Companies (Accounts) Rules ,2015) are disclosed below
A. Name of the related Parties and description of relationship:
(i) Related Party where Control exists Subsidiary Companies
1. Technocraft International Ltd
2. Technocraft Trading Spolka Z.O.O
3. Technocraft Australia pty Ltd
4. Technosoft Engineering Projects Ltd
5. Anhui Reliable Steel Technology Co. Ltd
6. Shreyan Infra & Power LLP
7. Technocraft Closures Pvt Ltd
8. Techno Defence Pvt. Ltd
9. TIL Marketing Pvt.Ltd ( Formerly Known as TIL Packaging Pvt. Ltd)
Step Down Subsidiary Comapanies
1. Technosoft Engineering Inc.
(Formerly Known as Impact Engineering Solutions Inc.)
2. Swift Engineering Inc.
3. Swift Projects Inc.
4. Technosoft Innovations Inc.
5. Technosoft GMBH
6. AAIT/ Technocraft Scaffold Distribution LLC
7. High Mark International Trading -F.Z.E
8. Step Engineering .
9. Technosoft Services Inc.
10. Technosoft Engineering UK Limited
11. Crosswall International Trading Limited Joint Venture
1. Technocraft Tabla Formwork Systems Pvt. Ltd
Name of other Related parties with whom transcations have taken place during the year Key Managerial Personnel (KMP)
1. Shri Sharad Kumar Saraf
2. Shri Sudarshan Kumar Saraf
3. Shri Navneet Kumar Saraf
4. Shri Ashish Kumar Saraf
5. Shri Atanu Chaudhary Enterprises in which KMP are Interested
1. BMS Industries Ltd
2. S.K.Saraf HUF
Relatives of KMP
1. Priyanka Saraf
Non-Executive Directors
1. Dr Shri Bhagwan Agarwal (resigned w.e.f 23rd Feburary 2018)
2. Shri Jagdeesh Mehta
3. Shri Vinod Agarwala
4. Shri Vishwambhar Saraf
5. Ms Vaishali Choudhari
Enterprise in which Non-Executive Director is interested
1. Remi Edelstahl Tubular Ltd Trust
1. Technocraft Industries (i) Ltd Employees Group Gratuity Trust
Note
1) The transactions with related parties are made on terms equivalent to those that Prevailing in arm''s Length transactions Outstanding balances at the yearend are unsecured .The Company has not recorded any impairment of receivables relating to amounts owned by the related Parties .This assessment is undertaken each Financial year through examining the Financial Position of the related party and the market in which the related Party operates
2. Loan to Subsidiary have been given for Working Capital Requirements & have been utilised for the same
3. Guarantee Provided to the Lenders of the Subsidiaries are for availing working capital Facilities from the lender banks
*excludes Provision for gratuity & Compensated leave for Key Managerial Personnel as Separate Actuarial Valuation is not available
Note 2 : Disclosure Pursuant to Ind AS - 19 "EMPLOYEE BENEFITS"
[A] Post Employment Benefit Plans:
Defined Contribution Scheme
The Company contributes at a defined percentage of the employee salary out of the total entitlements on account of superannuation benefits under this scheme.
# excluding '' 1.30 Lakhs ( P.Y NIL) Contributed by Government of India under PMRPY Scheme Defined Benefit Plans
The Company has the following Defined Benefit Plans
Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes.
Note 3: Fair Value Measurements
A. Financial instruments by category and fair value hierarchy :
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - I nputs 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 assets or liabilities that are not based on observable market data (unobservable inputs)
During the reporting period ended March 31, 2018 and March 31, 2017, there were no transfers between level 1 and level
2 fair value measurements.
B. Measurement of fair values
The following methods and assumptions were used to estimate the fair values of financial instruments :
i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
ii) The fair values of the equity / Mutual Fund investments which are quoted, are derived from quoted market prices in active markets. The investment measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation report provided by external values with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
Note 4 : Financial Risk Management Risk management framework
The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of all the risk on its financial performance. The Board of Directors and the Audit Committee are responsible for overseeing the Company''s risk assessment and management policies and processes.
The Company''s has exposure to the following risks arising from financial instruments:
Credit risk ;
Market risk ; and Liquidity risk
1. Credit Risk
The Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set and periodically reviewed on the basis of such Information .
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the company. The Company categorises a trade receivable for write off when a debtor fails to make contractual payments or on case to case basis. Where trade receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as Income in the statement of profit or loss.
The Company measures loss rate for trade receivables from Individual customers based on the historical trend, industry practices and the business environment in which the entity operates .Loss rates are based on Past Trends . Based on the historical data , no probable loss on collection of receivable is anticipated & hence no provision is considered.
I n case of Credit risks from balances with banks and financial institutions , the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies.
I n addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counterparties. The Company''s maximum exposure in this respect is the maximum amount that the Company would have to pay if the guarantee is called upon. The maximum exposure relating to financial guarantees instruments is disclosed in note no 28 (contingent liabilities).
2. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly of currency risk and interest rate risk. Financial Instrument affected by Market risks includes loans and borrowings and foreign Currency Receivables and payables .The Company has set processes and policies to assess, control and monitor the effect of the risk on the financial performance of the company.
i) Currency Risk
This is the risk that the Company may suffer losses as a result of adverse exchange rate movement during the relevant period. The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The senior management personnel are responsible for identifying the most effective and efficient ways of managing by entering into forward contracts and monitored by board of directors.
b) Foreign Currency Risk Sensitivity
A reasonably possible strengthening / (weakening) of the Indian Rupee against various below currencies at 31st March would have affected the measurement of financial instruments denominated in those currencies and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases
A change in 1% in Foreign Currency would have following Impact on Profit before tax assuming that all other variables, in Particular interest rate remain constant & ignoring any impact of forecast Sales & Purchases.
ii) Interest rate Risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. The Company has exposure to Interest rate risk, arising principally on changes in base lending rate/ LIBOR rates. As the Percentage of Borrowings with Floating Interest rate is very small as Compared to Total Borrowings & hence the interest rate risk for the Company as whole is very Low.
Note-The above analysis is prepared for floating rate liabilities assuming the amount of the Liability outstanding at the end of the reporting Period
3. Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price .Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. The Company maintains flexibility in funding by maintaining availability under committed credit lines. The Management monitors rolling forecasts of the Company''s Liquidity position and cash and cash equivalents on the basis of the expected cash flows. The Company assessed the Concentration of risk with respect to its debt and concluded it to be low.
Note-5 Other Accompanying Notes
1) The Figures have been rounded off to the nearest lakhs of Rupees up to two decimal Places.
2). Previous Years Figures have been regrouped / rearranged where ever considered necessary to make them Comparable with the Current year Figures
3) Note 1 to 37 Forms an Integral Part of the Financial Statements
Mar 31, 2017
Estimation of Fair value :
The above valuation of the Investment Properties are in accordance with the Ready Reckoner rates as prescribed by the Government of Maharashtra for the Purpose of levying Stamp Duty. Since the valuation is based on the Published Ready Reckoner rates, the Company has classified the same under level -2.
Nature of Security
Term Loan (I & II) from Bank of India is Secured against hypothecation of Plant & Machinery, Equipment Purchased out of Loan & Also Against Equitable Mortgage of Specific Immovable Properties of Yarn Division.
Terms of Repayment
Term Loan I was Repayable in 10 Half Yearly Installments starting from 30.12.201 1 & ending on 30.6.2016. Term Loan II is Repayable in 10 Half yearly equal Installments starting from 31.3.2016 & ending on 30.9.2020. Rate of Interest of Term Loan II is 11.50% p.a as at 31.3.2017.Rate of Interest is without Considering Interest Subsidy under TUF Scheme.
Nature of Security
1 . Cash Credit From Bank of India Is Secured Against the Hypothecation of Stock And Book Debts Both Present & Future.
2. Overdraft From H.D.F.C Bank are Secured Against Fixed Deposits of the Company.
3. Overdraft from IDBI Bank Are Secured Against the Fixed Deposits of the Company.
4. Export Packing Credit Against L/Cs. Confirmed Orders From HDFC Bank Are Secured Against the Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties.
5. Export Packing Credit Against L/Cs. Confirmed Orders From CITI Bank Are Secured Against the Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties.
Note 32 : Segment Reporting
Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. Based on the management approach as defined in Ind AS 108, the chief operating decision maker (CODM) evaluates the companyâs performance and allocates resources based on an analysis of various performance indicators by business segment and geographic segment. Accordingly, information has been presented both along business segment and geographic segment. The accounting principle used in the preparation of financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.
The Company has identified Drum Closures,Scaffoldings,Cotton Yarn,Fabric and Power as primary business segments of the Company.
The above business segments have been identified considering :
i) The nature of the product
ii ) The deferring risk and returns
iii) The internal financial reporting systems
The Geographical Segments considered for Disclosure are as Follows
a) Revenue within India includes Revenue from Sales of Products (including Scrap) & Services to Customers Located within India and earnings in India.
b) Revenue outside India includes Revenue from Sales of Products & Services to Customers Located outside India and earnings outside India and export Incentive benefits.
Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable" Inter segment transfer, are accounted for at competitive market prices, charged to unaffiliated customer for similar goods.
Notes
No single Customer Contributed 10% or more to the Company''s revenue for the year ended March 31, 2017 & March 31, 2016.
Note 6 : Related Party disclosures
The related Parties as per the terms of Ind AS-24," Related Party Disclosures". (Specified under Section 133 of the Companies Act 2013, read with Rule 7 of Companies (Accounts) Rules ,2015) are disclosed below
A. Name of the related Parties and description of relationship:
(i) Related Party where Control exists
Subsidiary Companies
1. Technocraft International Ltd
2. Technocraft Trading Spolka Z.O.O
3. Technocraft Australia PTY Ltd
4. Technosoft Engineering Projects Ltd (formerly Known as Technosoft Information Technologies (i) Ltd)
5. Anhui Relaible Steel Technology Co. Ltd
6. Shreyan Infra & Power LLP
Notes to the Standalone Financial Statements for the Year Ended March 31, 2017
7. Technocraft Closures Pvt Ltd
8. Techno Defence Pvt. Ltd
9. TIL Packaging Pvt.Ltd
Step Down Subsidiary Comapanies
1. Technosoft Engineering Inc. (Formerly Known as Impact Engineering Solutions Inc.)
2. Swift Engineering Inc.
3. Swift Projects Inc.
4. Technosoft Innovations Inc.
5. Technosoft GMBH
6. AAIT/ Technocraft Scaffold Distribution LLC
7. High Mark International Trading -F.Z.E Joint Venture
1. Technocraft Tabla Formwork Systems Pvt. Ltd
Name of other Related parties with whom transcations have taken place during the year Key Managerial Personnel (KMP)
1. Shri Sharad Kumar Saraf
2. Shri Sudarshan Kumar Saraf
3. Shri Navneet Kumar Saraf
4. Shri Ashish Kumar Saraf
5. Shri Atanu Chaudhary Enterprises in which KMP are Interested
1. BMS Industries Ltd
2. S.K.Saraf HUF Relatives of KMP
1. Priyanka Saraf
Non Executive Directors
1. Dr Shri Bhagwan Agarwal
2. Shri Jagdeesh Mal Mehta
3. Shri Vinod Agarwala
4. Shri Vishwambhar Saraf
5. Ms Vaishali Choudhari
Enterprise in which Non Executive Director is interested
1. Remi Edelstahl Tubular Ltd Trust
Technocraft Industries (i) Ltd Employees Group Gratuity Trust
Note
1) The transactions with related parties are made on terms equivalent to those that Prevail in arm''s Length transactions Outstanding balances at the year end are unsecured and Interest free .The Company has not recorded any impairment of receivables relating to amounts owned by the related Parties .This assessment is undertaken each Financial year through examining the Financial Position of the related party and the market in which the related Party operates
2. Loan to Subsidiary have been given for Working Capital Requirements & have been utilized for the same
3. Guarantee Provided to the Lenders of the Subsidiaries are for availing working capital Facilities from the lender banks
* excludes Provision for gratuity & Compensated leave for Key Managerial Personnel as Separate Actuarial Valuation is not available
Defined Benefit Plans
The Company has the following Defined Benefit Plans
Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes.
The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognized in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.
During the reporting period ended March 31, 2017 and March 31, 2016, there were no transfers between level 1 and level 2 fair value measurements.
B. Measurement of fair values
The following methods and assumptions were used to estimate the fair values of financial instruments :
i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
ii) The fair values of the Equity/ Mutual Fund investment which are quoted, are derived from quoted market prices in active markets. The investment measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation report provided by external values with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
Note 7: Financial Risk Management
Risk management framework
The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
Company''s primary risk management focus is to minimize potential adverse effects of all the risk on its financial performance.
The Board of Directors and the Audit Committee are responsible for overseeing the Company''s risk assessment and management policies and processes.
The Company''s has exposure to the following risks arising from financial instruments:
- Credit risk ;
- Market risk ; and
- Liquidity risk
8. Credit Risk
The Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed.
To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set and periodically reviewed on the basis of such Information .
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the company. The Company categories a trade receivable for write off when a debtor fails to make contractual payments or on case to case basis. Where trade receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as Income in the statement of profit or loss.
The Company measures loss rate for trade receivables from Individual customers based on the historical trend, industry practices and the business environment in which the entity operates .Loss rates are based on Past Trends . Based on the historical data , no probable loss on collection of receivable is anticipated & hence no provision is considered .
In case of Credit risks from balances with banks and financial institutions , the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies.
In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other counterparties. The Company''s maximum exposure in this respect is the maximum amount that the Company would have to pay if the guarantee is called upon. The maximum exposure relating to financial guarantees instruments is disclosed in note no 30 (contingent liabilities).
9. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly of currency risk and interest rate risk. Financial Instrument affected by Market risks includes loans and borrowings and foreign Currency Receivables and payables .The Company has set processes and policies to assess, control and monitor the effect of the risk on the financial performance of the company.
i) Currency Risk
This is the risk that the Company may suffer losses as a result of adverse exchange rate movement during the relevant period. The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. The senior management personnel are responsible for identifying the most effective and efficient ways of managing by entering into forward contracts and monitored by board of directors.
Note- The above analysis is prepared for floating rate liabilities assuming the amount of the Liability outstanding at the end of the reporting Period was outstanding for the whole year.
310. Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price .Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. The Company maintains flexibility in funding by maintaining availability under committed credit lines. The Management monitors rolling forecasts of the Company''s Liquidity position and cash and cash equivalents on the basis of the expected cash flows. The Company assessed the Concentration of risk with respect to its debt and concluded it to be low.
Note 37 : Capital Risk Management
For the Purpose of Company''s Capital management , Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The Primary Objective of the Company''s Capital management is to ensure that it maintains an efficient capital Structure and maximize shareholder Value. The Company is monitoring capital using Net debt equity ratio as its base ,which is Net debt to equity.
The company''s Policy is to keep Net debt equity ratio below 0.50 and infuse capital if and when required through better operational results and efficient working capital Management
*Net Debt= Non Current Borrowings (including Current Maturity on Borrowings) Current Borrowings -Cash & Cash Equivalents
Note :11. First-time adoption of Ind AS :
The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 1st, 2016, with a transition date of April 1st, 2015. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements for the year ended 31st March, 2017, be applied retrospectively and consistently for all financial years presented. However, in preparing these Ind AS financial statements, the Company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
12) Optional Exemptions :
a) Deemed Cost :
Ind AS 101 permits to measure all its property, plant & equipment, investment properties & intangible assets including Capital work in progress at their previous GAAP carrying value i.e. being deemed cost represented by Gross Block reduced by accumulated depreciation on April 01, 2015
b) Investments in subsidiaries and joint ventures
The Company present separate financial statement wherein Ind AS 27 requires it to measure its investment in subsidiaries and Joint ventures either at cost or in accordance with the Ind AS 109. The Company at first time adoption has measured such investment at cost in accordance with the Ind AS 27, wherein it has option to measure the investments in its separate opening Ind AS balance sheet at cost as determined in accordance with Ind AS 27 or deemed cost. Deemed cost shall be fair value at the entity''s date of transition to Ind AS in its separate financial statement or previous GAAP carrying amount as on that date. The Company has adopted deemed cost being previous GAAP carrying amount as on date of transition.
13) Mandatory exemptions :
a) Estimates :
An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies). Ind AS estimates as at 1 April, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP.
The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
- Investment in equity instruments carried at FVTPL or FVOCI; and
- Impairment of financial assets based on expected credit loss model.
b) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
3) Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:
I. Reconciliation of Balance sheet as at April 1, 2015 and March 31, 2016
II. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2016
III. Reconciliation of Equity as at April 1, 2015 and March 31, 2016
The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
Notes to first time adoption Note 1: Proposed Dividend
Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as subsequent events. Accordingly, provision for proposed dividend including dividend distribution tax was recognized as liability. Under Ind AS, dividends so proposed by the board are considered to be non - adjusting event .Accordingly, provision for proposed dividend and dividend distribution tax recognized under previous GAAP has been reversed.
Note 14: Remeasurements of post employment benefit obligations
Under the previous GAAP, cost relating to post employment benefit obligations including actuarial gain/losses were recognized in Profit & Loss. Under Ind AS, actuarial gain/losses on the net defined benefit liability are recognized in other comprehensive income instead of profit & loss.
Note 15: Security deposit
Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of lease term) are recorded at transaction price. Under Ind AS All financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued the security deposits and the difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent.
Note 16: Borrowings
Ind AS 109 requires transaction costs incurred towards borrowings to be deducted from the transaction value on initial recognition. These cost are recognized in profit & loss over the tenure of borrowings as a part of the interest expense by applying effective interest rate method.
Note 17: Fair Valuation of Investments
Under previous GAAP, investment in equity instruments were classified into long term and current investments. Long term investments were carried at cost less provision other than temporary in nature. Current investments were carried at lower of cost or fair value. Under Ind AS, these investments are require to be measured at fair value either through OCI (FVTOCI) or through Profit & loss (FVTPL).The company has opted to fair value these investments through Profit & loss (FVTPL). Accordingly, resulting fair value change of these investments have been recognized in retained earnings as at the date of transition and subsequently in the profit & loss account for the year ended March 31 2016.
Note 18: Deferred taxes
Under previous GAAP, deferred taxes were recognized based on Profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS, deferred tax is recognized by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base .Also, deferred tax have been recognized on the adjustments made on transition to Ind AS.
Note 19: Investment Properties
Under previous GAAP, investment properties were presented as a part of non-current investments/Plant, Property and Equipment. Under Ind AS ,investment properties are required to be separately presented on the face of the balance sheet .There is no impact on the total equity or profit as a result of this adjustment.
Note 20: Excise Duty
Under previous GAA P,revenue from sale of goods was presented net of excise duty on sales .Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in the Statement of Profit & Loss as an expense. This has resulted in an increase in the revenue from operations & expenses for the year ended 31 March 2016. The total comprehensive income for the year ended & equity as at 31 March 2016 has remained unchanged.
Note 21 : Government Grant
Under previous GAAP government grants in respect of Property , Plant & Equipment ( PPE) was presented as part of Reserves & surplus.Under Ind AS,Grant from Government are recognized at their fair value, when there is reasonable assurance that the grant will be received and the Company will comply with all the attached conditions. Government grants relating to income are deferred and recognized in the Statement of profit or loss over the period necessary to match them with the costs that they are intended to compensate and are deducted from the related expenses. Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities / current liabilities as deferred income and are credited to the Statement of profit and loss on written down value basis over the expected lives of the related assets and presented within other income.
Note- 22 Other Accompanying Notes
1) The Figures have been rounded off to the nearest lakhs of Rupees up to two decimal Places.
2) Previous Years Figures have been regrouped / rearranged where ever necessary to make them Comparable with the Current year Figures
3) Note 1 to 40 forms an Intergral Part of the Financial Statements
Mar 31, 2016
II. NOTES FORMING PART OF THE ACCOUNTS
A. CONTINGENT LIABILITY
B. The value of Closing Stock of Finished Goods includes Provision of Excise Duty wherever applicable to the products of the company and accordingly Provision of Excise Duty amounting to Rs. 21.42 Lakhs has been made in accordance with AS-2 "Inventories". However this has no impact on the Profit for the year.
C. The Company is entitled to receive Subsidy refund of Interest as per the Technology up gradation Fund Scheme of the Government of India, Ministry of Textile and accordingly Rs.136.35 Lakhs has been reduced from Interest Paid to Bank.
D. During the Year, the Company has made Provision of Rs 7.69 Lakhs for Capital Subsidy Receivable against Plant & Machinery Purchased under Technology Upgradation Fund Scheme of Government of India. The Capital Subsidy so receivable has been credited to the Cost of Plant & Machinery.
E. Additions to the Computer Software have been capitalized as Intangible Assets & the same has been amortized over the Period of 3 years.
F. RETIREMENT BENEFITS
- In respect of Leave Encashment Benefits as per the Revised Accounting Standard (AS)-15 on ''''Retirement Benefits'''', the Company has Charged Leave Encashment Expenses of Rs. 47.06 Lakhs in the Statement of Profit & Loss.
Net asset / (liability) recognized in the Balance Sheet
S. Trade Receivables/Advances/Trade Payables/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.
T. Previous Year figures have been regrouped or rearranged where considered necessary to make them Comparable with the Figures of Current Financial Year.
U. Figures in Financial Statements are converted into Lakhs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-Off.
V. Additional information pursuant to Part II of Schedule III of the Companies Act, 2013 are either NIL or Not Applicable.
Mar 31, 2015
A. The value of Closing Stock of Finished Goods includes Provision of
Excise Duty wherever applicable to the products of the company and
accordingly Provision of Excise Duty amounting to Rs. 28.42 Lacs has been
made in accordance with AS-2 "Inventories". However this has no impact
on the Profit for the year.
B. The Company is entitled to receive Subsidy refund of Interest as
per the Technology up gradation Fund Scheme of the Government of India,
Ministry of Textile and accordingly Rs. 63.85 lacs has been reduced from
Interest Paid to Bank.
C. During the Year, the Company has made Provision of Rs. 94.30 Lacs for
Capital Subsidy Receivable against Plant & Machinery Purchased under
Technology Upgradation Fund Scheme of Government of India. The Capital
Subsidy so receivable has been credited to the Cost of Plant &
Machinery.
D. Pursuant to the Enactment of Companies Act, 2013 the company has
applied the estimated useful life as Specified in Schedule II.The
Written Down Value of Fixed Assets (net of Residual Value) whose life
has expired as at 1st April 2014 have been adjusted (net of Deferred
Tax) against the Opening Surplus balances in the Statement of Profit &
Loss under Reserves & Surplus. For other assets the carrying amount as
on 1-4-2014 will be depreciated over the remaining useful life of the
assets. As a result an amount of Rs. 176.73 Lacs (net of Deferred Tax
Asset of Rs. 91.01 lacs) has been charged to the Statement of Profit &
Loss. The net Depreciation Charge for the year is higher by Rs. 445.34
Lakhs.
E. Additions to the Computer Software have been capitalized as
Intangible Assets & the same has been amortized over the Period of 3
years.
F. RETIREMENT BENEFITS
- In respect of Leave Encashment Benefits as per the Revised Accounting
Standard (AS)-15 on ''Retirement Benefits'', the Company has Charged
Leave Encashment Expenses of Rs. 94.11 Lacs in the Statement of Profit &
Loss.
(H) In compliance with AS-17 "SEGMENT REPORTING", which has become
mandatory, the required information are as under:-
G. PRIMARY SEGMENT
The Business Segment has been considered as the primary segment for
disclosure. The categories included in each of the reported business
segments are as follows:-
i) Drum Closures
ii) Scaffoldings
iii) Cotton Yarn
iv) Garment
v) Power
The above business segments have been identified considering:
i) The nature of the product
ii) The deferring risk and returns
iii) The internal financial reporting systems Revenue and expenses have
been accounted for based on the basis of their relationship to the
operating activities of the segment. Revenue and expenses, which relate
to the enterprise as a whole and are not allocable to segments on a
reasonable basis, have been included under "Unallocable
Assets/Liabilities."
Inter segment transfer if any,are accounted for at competitive market
prices, charged to unaffiliated customer for similar goods.
H. In compliance with the Accounting Standard 28 - "Impairment of
Assets" which has become mandatory, the Company has considered its
Fixed Assets at Cost of Acquisition or Cost of construction, less
Depreciation as per policies adopted by the Company vide Note No. 1(D),
(E) & (F) and none of the Assets has been revalued during the year.
Based on the internal and external sources of information available
with the Company the recoverable amount of fixed Assets are higher than
the carrying amount of Fixed Assets, therefore there is no Impairment
of Assets.
I. The Company is Co- Venturer in Technocraft Tabla Formwork System
Pvt Ltd. The following
Information is disclosed as per AS-27 Â Financial Reporting of Interest
in Joint Venture.
1) Details of the Jointly Controlled Entity.
a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.
b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial
Area,
Opp. ESIC Hospital, Andheri (E),
Mumbai-400093
c) Country of
Incorporation : India
d) Proportion Of
Ownerships : 65%
2) Aggregate amount of Revenue, Expense, Asset and Liabilities related
to the Interest of the company in the Joint- Venture namely Technocraft
Tabla Formwork Systems Pvt Ltd
J. Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
K. Value of Imported and Indigenous Raw Materials, packing materials,
Stores, Spares etc. Consumed and % there to Total Consumption
L. Trade Receivables/Advances/Trade Payables/Loans etc. have been
taken as per books awaiting respective confirmation and reconciliation.
M. Previous Year figures have been regrouped or rearranged where
considered necessary to make them Comparable with the Figures of
Current Financial Year.
N. Figures in Financial Statements are converted into Lacs and any
discrepancies in any total and the sum of the amounts listed are due to
Rounding-Off.
O. Additional information pursuant to Part II of Schedule III of the
Companies Act, 2013 are either NIL or N.A.
Mar 31, 2014
1 The above Cash flow statement has been prepared under the indirect
method setout in AS-3 issued bu the Institute of Chartered Accountants
of India.
2 Figures in brackets indicate cash outgo.
3 Previous period figures have been regrouped and recast wherever
necessary to conform to the current period classification.
Notes :
1 . Cash Credit From Bank Of India Is Secured Against The Hypothecation
Of Stock And Book Debts Both Present & Future And Fixed Assets &
Equitable Mortgage Of Companies Specific Immovable Properties.
2. Export Packing Credit Against L/Cs. Confirmed Orders From BOI Are
Secured Against The Hypothecation Of Stock & Book Debts Both Present &
Future And Fixed Assets & Equitable Mortgage Of The Companies Specific
Immovable Properties.
3. Export Packing Credit Against L/Cs. Confirmed Orders From CITI Bank
Are Secured Against The Hypothecation Of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage Of The Companies
Specific Specific Immovable Properties.
4. Export Packing Credit Against L/Cs. Confirmed Orders From HDFC Bank
Are Secured Against The Hypothecation Of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage Of The Companies
Specific Specific Immovable Properties.
5. Overdraft Account With IDBI Bank Are Secured Against The FDR Of The
Company.
6. Export Packing Credit Against L/Cs. Confirmed Orders From IDBI Bank
Are Secured Against The Hypothecation Of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage Of The Companies
Specific Immovable Properties.
7. Export Packing Credit Against L/Cs. Confirmed Orders From CITI Bank
Are Secured Against The Hypothecation of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage Of The Companies
Specific Immovable Properties.
A. CONTIGENT LIABILITY
(` In Lacs)
Sr. Contingent Liabilities and For the Year Ended For the Year Ended
No. Commitments not provided For 31.03.2014 31.03.2013
I. 2288.59 1823.13
Stand by Letter of Credit
(SBLC) aggregating to Euro
17,50,000 and USD 14,50,000
given to Banks on behalf of
subsidiary Company in Poland.
II. Stand by Letter of Credit
(SBLC) aggregating to 1190.40 1091.00
USD 20,00,000 given to
Banks on behalf of
subsidiary Company in China.
III. Corporate Guarantee
aggregating to Pounds 2589.50 2069.75
25,00,000 given to Bank on
behalf of Subsidiary
Company in UK.
IV. 238.08 218.20
Stand by Letter of Credit
(SBLC) aggregating to
USD 4,00,000 given to Banks
on behalf of first
step down Subsidiary Company,
Impact Engineering Solutions
Inc
V. Bank Guarantee issued in
favour of various 121.41 124.07
Suppliers/Customers.
VI. Bank Guarantee issued in
favour of Commissioner 74.58 97.27
of Customs & Maharashtra
Pollution Control Board.
VII. Bank Guarantee issued in
favour of Commissioner 57.10 57.10
of Central Excise, Kalyan.
VIII. Income Tax, Penalty and
Interest Demands For
the
- A.Y.2002-03 - 585.24
A.Y.2003-04 79.23 -
A.Y.2007-08 (Penalty) - 40.82
A.Y.2007-08 - 40.13
A.Y.2008-09 - 15.50
A.Y.2008-09 (Penalty) 2.91 -
A.Y.2005-06 - 14.72
A.Y.2009-10 - 65.06
IX 3.04 3.04
Show-Cause Notice for duty
issued by Central Excise
Department-Rebate of Excise
duty paid on Exports goods
by utilizing EOUÂs duty.
Duty Rebate Denied (Order No.
SB116&117) (Stay granted by
Commissioner (Appeals) from
the Pre-Deposit of the dues
adjudged during the pendency
of these appeals)
X. Show-Cause Notice for duty &
Penalty issued by 1115.66 1115.66
Central Excise Department-
Clearance of Cotton
waste under Exemption
Notification No. 6/97 & 23/03
denied & apportioned Duty (30%)
demanded. Duty & Penalty
Involved in fuel & raw
cotton from Financial Year
1999-2002 to Sep 2008 (Stay
Granted by CESTAT from Pre Â
Deposit of the dues adjudged
during the pendency of
these appeals)
XI. 195.60 195.60
Show-Cause Notice for duty
and Penalty issued by Central
Excise Department  Rebate of
Excise duty paid on Exports
goods by utilizing EOUÂs
Duty. Duty Rebate Denied in
Unit I of Yarn Division (Stay
Granted by CESTAT from Pre Â
Deposit of the dues adjudged
during the pendency of these
appeals)
XII. 266.77 266.77
Show-Cause Notice for duty and
Penalty issued by Central
Excise Department  Rebate of
Excise duty paid on Exports
goods by utilizing EOUÂs
Duty. Duty Rebate Denied in
Unit II of Yarn Division.
(Stay Granted by CESTAT from
Pre  Deposit of the dues
adjudged during the pendency
of these appeals)
XIII. 3.03 3.03
Demand of Service Tax
(including Penalty) on
Commission paid to foreign
agents for Financial
Year 2006-07 & 2007-08.
XIV. 82.48 82.48
Demand Notice for Payment of
Royalty on extraction &
transportation of mud,
stones & sand issued by
Tahasildar, Tal. Murbad,
Dist. Thane
XV. Seven years Warranty beginning
with the Amount Amount
Financial year 2011-12 given
to Spanco Limited unascertainable unascertainable
against the Erection of the
Towers
B. The value of Closing Stock of Finished Goods includes Provision of
Excise Duty wherever applicable to the products of the company and
accordingly Provision of Excise Duty amounting to ` 38.03 Lacs has been
made in accordance with AS-2 InventoriesÂ. However this has no impact
on the Profit for the year.
C. The Company is entitled to receive Subsidy refund of Interest as
per the Technology up gradation Fund Scheme of the Government of India,
Ministry of Textile and accordingly 30.45 lacs has been reduced from
Interest Paid to Bank.
D. The Company has exposure to National Spot Exchange Limited (NSEL)
OF ` 1938.80 Lakhs as on 31st March 2014.NSEL has not been able to
adhere to its payment obligation over the past few months. The Company
has perused legal action against the NSEL & Others by filing writ
petition in Bombay High Court and Criminal Complaint in Economic
offences Wing(EOW).Pending Final Outcome which is uncertain ,the
Company has decided to write off the amount of ` 1937.04 Lakhs (Net of
the Amount recovered till the date of signing the Financial Report) &
the same has been disclosed under the head ÂBad DebtsÂ
E. Additions to the Computer Software have been capitalized as
Intangible Assets & the same has been amortized over the Period of 3
years on Prorated basis from the Date put to use.
F. RETIREMENT BENEFITS
à In respect of Leave Encashment Benefits as per the Revised Accounting
Standard (AS)-15 on Retirement Benefits the Company has Charged Leave
Encashment Expenses of 49.65 Lacs in the Statement of Profit & Loss.
H. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS
In compliance with the AS-18 ÂRELATED PARTY DISCLOSUREÂ, which has
become mandatory, the required information are as under:-
(I) List of Related Parties over which control exists
Sr. Name of the Related Party No.
I. Subsidiary Company/Fellow Subsidiary
1 Technocraft International Ltd, U.K.
2 Technocraft Trading Spolka Z.o.o., Poland
3 Technocraft Australia Pty Limited
4 Technosoft Engineering Projects Ltd (Formerly known as Technosoft
Information Technologies (I) Ltd)
5 Anhui Reliable Steel Tec. China
6 Shreyan Infra & Power LLP
II. First Step Down Subsidiaries
1 Impact Engineering Solutions Inc.
2 Swift Engineering Inc.
III. Step Down Subsidiary
1 Swift Projects Inc.
IV. Associates
1 Ashrit Holdings Ltd
2 Ashrit Infrastructure Developers LLP
3 B.M.S.Industries Ltd
4 M.D .Saraf Securities Pvt .Ltd.
V Key Management Personnel (KMP)
1 Sharad Kumar Saraf
2 Sudarshan Kumar Saraf
3 Madhoprasad Saraf
4 Navneet Kumar Saraf
5 Ashish Kumar Saraf
6 Atanu Choudhary
VI Relatives & Enterprises of KMP
1 Shantidevi Saraf
2 Shakuntala Saraf
3 Suman Saraf
4 Nidhi Saraf
5 Ritu Saraf
6 Priyanka Saraf
7 M.T. Information Technologies
VII Joint Venture
1 Technocraft Tabla Formwork System Pvt Ltd
VIII Co- Venture
1 Tabla Construction Systems
(II)Names of the Related Parties with whom transactions were carried
out during year and description of relationship
Sr. Related Parties
No
I Direct Subsidiaries
1 Technocraft International Ltd, U.K.
2 Technocraft Trading Spolka Z.o.o, Poland
3 Technosoft Engineering Projects Ltd (Formerly known as Technosoft
Information Technologies (I) Ltd)
4 Technocraft Australia Pty Limited
5 Anhui Reliable Steel Tec. China
6 Shreyan Infra & Power LLP
II First Step Down Subsidiary
1 Impact Engineering Solutions Inc
III Associates
1 B.M.S.Industries Ltd
2 Ashrit Holdings Ltd
IV Joint Venture
1 Technocraft Tabla Formwork System Pvt Ltd
V Key Management Personnel (KMP)
1 Sharad Kumar Saraf
2 Sudarshan Kumar Saraf
3 Navneet Kumar Saraf
4 Ashish Kumar Saraf
5 Atanu Choudhary
( ) indicates previous year figures
J. In compliance with the Accounting Standard 28 - ÂImpairment of
Assets which has become
mandatory, the Company has considered its Fixed Assets at Cost of
Acquisition or Cost of construction, less Depreciation as per policies
adopted by the Company vide Note No. 1(D), (E) & (F) and none of the
Assets has been revalued during the year. Based on the internal and
external sources of information available with the Company recoverable
amount of fixed Assets are higher than the carrying amount of Fixed
Assets, therefore there is no Impairment of Assets.
K. The Company is Co- Venturer in Technocraft Tabla Formwork System
Pvt Ltd. The following Information is disclosed as per AS-27 Â
Financial Reporting of Interest in Joint Venture.
1) Details of the Jointly Controlled Entity.
a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.
b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial
Area,
Opp. ESIC Hospital, Andheri (E), Mumbai-400093
c) Country of Incorporation : India
d) Proportion Of Ownerships : 65%
2) Aggregate amount of Revenue, Expense, Asset and Liabilities related
to the Interest of the company in the Joint- Venture namely Technocraft
Tabla Formwork Systems Pvt Ltd
3) The Company is also having Joint Venture with Gilcheck Management
Inc, Canadian company operating as Tabla Construction System as a
Joint control operation in respect of production of Tabla Products.
L. Provisions involving substantial degree of estimation in
measurement are recognized when there is present obligation as a result
of past events and it is probable that there will be an outflow of
resources. Contingent Liabilities are not recognized but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
R. Trade Receivables/Advances/Trade Payables/Loans etc. have been
taken as per books awaiting respective confirmation and reconciliation.
S. Previous Year figures have been regrouped or rearranged where
considered necessary.
T. Figures in Financial Statements are converted into Lacs and any
discrepancies in any total and the sum of the amounts listed are due to
Rounding-Off.
U. Additional information pursuant to Part II of Schedule VI of the
Companies Act, 1956 are either NIL or N.A.
(G). In compliance with AS-17 ÂSEGMENT REPORTINGÂ, which has become
mandatory, the required information is as under
A. PRIMARY SEGMENT
The Business Segment has been considered as the primary segment for
disclosure. The categories includes in each of the reported business
segment are as follow:-
i) Commodity Trading
ii) Drum Closure
iii) Scaffolding
iv) Cotton Yarn
v) Garment
vi) Power
The above business segments have been identified considering:
i) The nature of the product
ii ) The deferring risk and returns
iii) The internal financial reporting systems
Revenue and expenses have been accounted for based on the basis of
their relationship to the operating activities of the Segment. Revenue
& Expenses ,which relate to the enterprise as a whole and are not
allocable to segment on a reasonable basis, have been included under
"Unallocable Assets / Liabilities "Inter segment transfer, if any, are
accounted for at competitive market price charged to unaffiliated
customer for similar goods.
Notes
1. Previous Year Figure have been regrouped /rearranged where ever
considered necessary to make them Comparable with the Current Year
Figures
2. Segment Revenue includes only sales of Product & Sales of
services.Sales of Products are net of Excise Duty
3. Total Liabilities does not include Shareholders Fund.
Mar 31, 2013
A. Excise duty in respect of finished goods is being accounted at the
time of clearance of goods as per the practice followed by the Company.
Such Excise duty liability as on 31st March 2013 on goods pending
clearance, if accounted for, shall not affect the profit for the year.
B. The Company is entitled to receive Subsidy refund of Interest as
per the Technology up gradation Fund Scheme of the Government of India,
Ministry of Textile and accordingly Rs 40.33 lakhs has been reduced from
Interest to Bank.
C. Additions to the Computer Software have been capitalized as
Intangible Assets & the same has been amortized over the Period of 3
years on Prorated basis from the date put to use.
D. RETIREMENT BENEFITS
à In respect of Leave Encashment Benefits as per the Revised Accounting
Standard (AS)-15 on ''''Retirement Benefits'''', the Company has Charged
Leave Encashment Expenses of Rs 79.51 Lacs in the Statement of Profit &
Loss.
E. In compliance with the Accounting Standard 28 - "Impairment of
Assets" which has become mandatory, the Company has considered its
Fixed Assets at Cost of Acquisition or Cost of construction, less
Depreciation as per policies adopted by the Company vide Note No. 1(D),
(E) & (F) and none of the Assets has been revalued during the year.
Based on the internal and external sources of information available
with the Company recoverable amount of fixed Assets are higher than the
carrying amount of Fixed Assets, therefore there is no Impairment of
Assets.
F. The Company is Co-Venture in Technocraft Tabla Form work System Pvt
Ltd. The following
Information is disclosed as per AS-27 Â Financial Reporting of Interest
in Joint Venture.
1) Details of the Jointly Controlled Entity.
a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.
b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial
Area,
Opp. ESIC Hospital, Andheri (E), Mumbai-400093
c) Country of Incorporation : India
d) Proportion Of Ownerships : 65%
2) Aggregate amount of Revenue, Expense, Asset and Liabilities related
to the Interest of the company in the Joint- Venture namely Technocraft
Tabla Formwork System Pvt. Ltd.
G. Provisions involving substantial degree of estimation in
measurement are recognized when there is present obligation as a result
of past events and it is probable that there will be an outflow of
resources. Contingent Liabilities are not recognized but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
H. Trade Receivables/Advances/Trade Payables/Loans etc. have been
taken as per books awaiting respective confirmation and reconciliation.
I. Previous Year figures have been regrouped or rearranged where
considered necessary.
J. Figures in Financial Statements are converted into Lacs and any
discrepancies in any total and the sum of the amounts listed are due to
Rounding-Off.
K. Additional information pursuant to Part II of Schedule VI of the
Companies Act, 1956 are Either NIL or N.A.
Mar 31, 2012
1 A. OVERDRAFT ACCOUNT WITH BANK OF INDIAARE SECURED AGAINST THE FDR OF
THE COMPANY
1 B. CASH CREDIT FROM BANK OF INDIA IS SECURED AGAINST THE
HYPOTHECATION OF STOCK AND BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED
ASSETS & EQUITABLE MORTGAGE OF COMPANIES SPECIFIC IMMOVABLE PROPERTIES.
2. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM BANK OF
INDIAARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH
PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES
SPECIFIC IMMOVABLE PROPERTIES.
3. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM CITI BANK
ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH
PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES
SPECIFIC IMMOVABLE PROPERTIES.
4. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM HDFC BANK
ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH
PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES
SPECIFIC IMMOVABLE PROPERTIES.
5. OVERDRAFTACCOUNT WITH IDBI BANK ARE SECURED AGAINST THE FDR OF THE
COMPANY.
6. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM IDBI BANK
ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH
PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES
SPECIFIC IMMOVABLE PROPERTIES.
7. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM BOI PCFC$
ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH
PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES
SPECIFIC IMMOVABLE PROPERTIES.
8. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM SCB PCFC
ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH
PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES
SPECIFIC IMMOVABLE PROPERTIES.
(Rs. In Lakhs)
SR Contingent Liabilities and For the For the
Commitments not provided for Year Year
Ended Ended
31.03.12 31.03.11
I. Bank Guarantees aggregating to Euro 17,50,000 1552.84 1552.84
and USD 1 1,00,000 to Banks on behalf of
subsidiary Company in Poland.
II. Liability in Respect of Trade Finance & 492.04 492.04
Guarantees (UK) aggregating to Pounds
25,00,000 for Technocraft International UK
III. Bank Guarantee aggregating to USD 5,00,000 to 224.47 224.47
Banks on behalf of Fellow Subsidiary Company,
Impact Engineering Pvt. Ltd.
IV. Income Tax and Interest Demands For the
A.Y.2002-2003 15.44/- 15.44/-
A.Y.2001-2008 63.80/- 63.80/-
A.Y.2008-2009 15.50/- NIL
V Show-Cause Notice for duty issued by Central
Excise Department-Rebate of Excise duty paid
on Exports goods by utilizing EOU's duty.
Duty Rebate Denied (Order No. SB116&111)
(Stay granted by Commissioner (Appeals) from 3.04/- NIL
the Pre-Deposit of the dues adjudged during
the pendency of these appeals)
VI. Show-Cause Notice for duty & Penalty issued
by Central Excise Department-Clearance of
Cotton waste under Exemption Notification No.
6/97 & 23/03 denied & apportioned Duty (30%)
demanded. Duty & Penalty Involved in fuel &
raw cotton from Financial Year 1999-2002 to 1115.66 NIL
Sep 2008 (Stay Granted by CESTAT from Pre-
Deposit of the dues adjudged during the
pendency of these appeals)
VI. Show-Cause Notice for duty and Penalty
issued by Central Excise Department -
Rebate of Excise duty paid on Exports goods
by utilizing EOU's Duty. Duty Rebate Denied
in Unit I of Yarn Division (Stay Granted by 195.60 NIL
CESTAT from Pre-Deposit of the dues adjudged
during the pendency of these appeals)
VII. Show-Cause Notice for duty and Penalty issued
by Central Excise Department - Rebate of
Excise duty paid on Exports goods by utilizing
EOU's Duty. Duty Rebate Denied in Unit II of
Yarn Division. (Stay Granted by CESTAT from
Pre-Deposit of the dues adjudged during the 266.77 NIL
pendency of these appeals)
IX. Demand of Service Tax (including Penalty) on
Commission paid to foreign agents for Financial 3.03 NIL
Year 2006-07 & 2007-08.
X. Seven years Warranty beginning with the Amount
Financial year 2011-12 given to Spanco Limited unascert- NIL
against the Erection of the Towers aionable
B. Excise duty in respect of finished goods is being accounted at the
time of clearance of goods as per the practice followed by the Company.
Such Excise duty liability as on 31st March 2012 on goods pending
clearance, if accounted for, shall not affect the profit for the year.
C. The Company is entitled to receive Subsidy refund of Interest as
per the Technology up gradation Fund Scheme of the Government of India,
Ministry of Textile and accordingly 52.10 lakhs has been reduced from
Interest to Bank.
D. Provision in respect of reduction in Market Value of Quoted
Investments amounting to Rs. 46.03 Lacs /- as at 31st March, 2012 is not
made as these Investments are held as long term investments and in the
perception of the Management there is no permanent diminution in value
of such investments.
E. RETIREMENT BENEFITS
The Company has recognizing and accruing the Leave Encashment
retirement benefits as per the erstwhile Accounting standard -15 on
"Retirement Benefits".
In respect of gratuity as per the Revised Accounting standard (AS)-15
on "Retirement Benefits", the company has charged gratuity
liability(net) of Rs. 2,55,66,560/-.
F. In compliance with the Accounting Standard 28 - "Impairment of
Assets" which has become mandatory, the Company has considered its
Fixed Assets at Cost of Acquisition or cost of construction, less
Depreciation as per policies adopted by the Company vide Note No. 1(E),
(F) & (G) and none of the Assets has been revalued during the year.
Based on the internal and external sources of information available
with the Company recoverable amount of fixed Assets are higher than the
carrying amount of Fixed Assets, therefore there is no Impairment of
Assets.
G. During the year Technocraft Hungary KFT is seized to be subsidiary
of the company.
H. The Company is Co-Venturer in Technocraft Tabla Formwork System Pvt
Ltd. The following Information is disclosed as per AS-27 - Financial
Reporting of Interest in Joint Venture.
1) Details of the Jointly Controlled Entity.
a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.
b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol
Industrial Area, Opp. ESIC Hospital,
Andheri (E), Mumbai-400093
c) Country of
Incorporation : India
d) Proportion Of
Ownerships : 65%
2) Aggregate amount of Revenue, Expense, Asset and Liabilities related
to the Interest of the company in the Joint- Venture namely Technocraft
Tabla Formwork System Pvt Ltd
3 The Company is also having Joint Venture with Gilcheck Management
Inc, Canadian company operating as Tabla Construction system as a Joint
control operation in respect of production of Tabla Products.
I. Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
J. Trade Receivables/Advances/Trade Payables/Bank Balances
(Partly)/Loans etc. have been taken as per books awaiting respective
confirmation and reconciliation.
K. The financial statements have been prepared as per revised schedule
VI to the Companies Act, 1956 which had a significant impact on
presentation. Comparative figures have been regrouped or rearranged
where considered necessary.
L. Figures in Financial Statements are converted into Lakhs and any
discrepancies in any total and the sum of the amounts listed are due to
Rounding-Off.
M. Additional information pursuant to Part II of Schedule VI of the
Companies Act, 1956 are Either NIL of N.A.
A. PRIMARY SEGMENT
The Business Segment has been considered as the primary segment for
disclosure. The categories included in each of the reported business
segments are as follows:-
i) Drum Closures
ii) Steel Tubes and Scaffoldings
iii) 100 % Cotton Yarn
iv) Garment
v) Power
The above business segments have been identified considering:
i) The nature of the product
ii ) The deferring risk and returns
iii) The internal financial reporting systems
Revenue and expenses have been accounted for based on the basis of
their relationship to the operating activities of the segment.
Revenue and expenses, which relate to the enterprise as a whole and are
not allocable to segments on a reasonable basis, have "included under
"Unallocable Assets/Liabilities." Inter segment transfer, if any,
accounted for at competitive market prices, charged to unaffillated
customers for similar goods"
Mar 31, 2011
A. CONTIGENT LIABILITY
SR Contingent Liabilities and
Commitments For the Year
Ended For the Year
Ended
not provided For 31.03.2011 (Rs) 31.03.2010 (Rs.)
I. Bank Guarantees aggregating to
Euro 17,50,000 and USD 11,00,000
to Banks Rs. 1552.84 Rs. 1552.84
on behalf of subsidiary Company
in Poland.
II. Bank Guarantee aggregating to
USD 5,00,000 Rs. 224.47 Rs. 224.47
to Banks on behalf of Fellow
Subsidiary Company, Impact
Engineering Pvt. Ltd.
III.Income Tax and Interest Demands
For the
A.Y.2002-2003 Rs.75.44/- Rs.155.19
A.Y.2005-2006 Rs.63.80 NIL
B. Excise duty in respect of finished goods is being accounted at the
time of clearance of goods as per the practice followed by the Company.
C. The company has not received any memorandum (as required to be
filled by the supplier with the notified authority under the Micro
Small & Medium Enterprises Development Act-2006) claiming their status
as Micro Small & Medium Enterprises, Accordingly the amount
paid/payable together with the interest, if any, have not been given.
D. The Company is entitled to receive Subsidy refund of Interest as
per the Technology up gradation Fund Scheme of the Government of India,
Ministry of Textile and accordingly entitled to receive Rs Rs 73.18
lakhs which are credited to Profit & Loss account under "Other Income".
E. RETIREMENT BENEFITS
- The Company has recognizing and accruing the Leave Encashment
retirement benefits as per the erstwhile Accounting standard -15 on
"Retirement Benefits".
- In respect of gratuity as per the Revised Accounting standard (AS)-15
on "Retirement Benefits", the company has reversed gratuity
liability(net) of Rs 63,64,843/-.
I. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS
In compliance with the AS-18 "RELATED PARTY DISCLOSURE", which has
become mandatory, the required information is as under:- (I) List of
Related Parties over which control exists
Sr.No Name of the Related Party
I. Subsidiary Company/Fellow Subsidiary
Technocraft International Ltd, U.K.
Technocraft Trading Spolka Z.o.o., Poland
Technocraft (Hungary) Kft
Technocraft Australia Pty Limited
Technosoft Information Technologies (India) Ltd
Technocraft Tabla Formwork System Pvt Ltd
Impact Engineering Inc.
CAE Systems GMBH
Anhui Reliable Steel Tec. China
II. Associates
Ashrit Holdings Ltd
B.M.S.Industries Ltd
M.D .Saraf Securities Pvt .Ltd.
III. Key Management Personnel (KMP)
Sharad Kumar Saraf Sudarshan Kumar Saraf Madhoprasad Saraf Navneet
Kumar Saraf Ashish Kumar Saraf
IV. Relatives & Enterprises of KMP
Shantidevi Saraf
Shakuntala Saraf
Suman Saraf
Nidhi Saraf
Ritu Saraf
Priyanka Saraf
M.T. Information Technologies
V. Co- Venturer
Tabla Construction Systems
(II)Names of the Related Parties with whom transactions were carried
out during year and description of relationship
Sr.No Related Parties
I Subsidiaries/Fellow Subsidiary
Tfechnoa-aft International Ltd, U.K.
Technocraft Trading Spolka Z.o.o, Poland
Technosoft Information Technology Ltd
Technocraft Tabla Formwork System Pvt. Ltd
Technocraft Australia Pty Limited
Anhui Reliable Steel Tec. China
Impact Engineering Inc
II Associates
B>I.S.Industries Ltd
Ashrit Holdings Ltd
III Key Management Personnel (KMP)
Sharad Kumar Saraf
Sudarshan Kumar Saraf
Navneet Kumar Saraf
Ashish Kumar Saraf
IV Co-Venturer
Tabla Construction Systems
J. In compliance with the Accounting Standard22 "Accounting for Taxes
on Income" which has become mandatory, the company has charged Deferred
Tax Assets (net) amounting to Rs168.28 lakhs in the Current year and
the same has been charged to profit and loss account.
K. In compliance with the Accounting Standard 28 - "Impairment of
Assets" which has become mandatory, the Company has considered its
Fixed Assets at Cost of Acquisition or cost of construction, less
Depreciation as per policies adopted by the Company vide Note No. 1(E),
(F) & (G) and none of the Assets has been revalued during the year.
Based on the internal and external sources of information available
with the Company recoverable amount of fixed Assets are higher than the
carrying amount of Fixed Assets, therefore there is no Impairment of
Assets.
L. The Company has set up Power Plant for its Captive consumption and
the Trial run generation of Power has been made upto 31st March, 2010 &
Pre-operative Expenses during the said period after adjustment of
realization from trial run Power generation and also Expenditure
thereof for period has been capitalized. The Realization from
generation of power (captive consumption) & cost of power consumed is
charged to profit & loss Account in respective division.
M. I) Pursuant to a Scheme of Amalgamation approved by the Board of
Directors of the Company at meeting held on 18th January, 2010 and
approved by the Hon'ble High Court, of Judicature at Bombay under
section 391 read with section 394 of the Companies Act, 1956 by its
order dated 6th May. 2011 which became effective on 7th June, 2011 on
receipt of certificate of Registration of order of court from the
Registrar of Companies, Mumbai, all the Assets and liabilities of
Technocraft Export Pvt Ltd Ltd. were transferred to the Company with
effect from the appointed date; i.e. 01st April, 2009 Accordingly the
scheme has been given effect to in these accounts.
II) The Amalgamation is in the nature of Merger and the same has been
accounted for under the
"The Pooling of Interest Method" as prescribed under Accounting
Standards 14 issued by the Institute of Chartered Accountants of India
and accordingly all the Assets and liabilities of Technocraft Export
Pvt Ltd were transferred to the Company at their existing carrying
amount. The company has also recognized Deferred Tax Asset amounting to
Rs.2, 23, 40, 740, /- on brought forward Business loss and unabsorbed
depreciation under Income Tax Act which have been credited to profit &
Loss Appropriation.
III) As per the Scheme of Amalgamation, the Company's investments in
Equity share Capital amounting to Rs 1, 75, 00,000/- & the unsecured
Loan of Rs 99,912,529/- to Technocraft Export Pvt Ltd. stands
cancelled.
IV) All losses incurred by the Technocraft Exports Pvt Ltd with effect
from the appointed day, i.e., 01st April, 2009 to 31st March, 2010 has
been Adjusted from Profit & Loss Appropriation A/c and Profit & Loss
from 01st April, 2010 to effective date and subsequent period has been
treated as the Profit & losses of the Company and accordingly the
effect has been given to in these accounts for such transactions.
V) As per the Scheme of Amalgamation, the Authorized Share capital of
the TECHNOCRAFT export pvt. LIMITED has been merged with the Company
and accordingly the authorized capital of the company is increased by
Rs 5, 00, 00,000/- i. e. 50, 00,000 Equity shares of Rs 10 each.
N. During the year Technocraft Export Pvt Ltd is seized to be
subsidiary of the company.
O. The Company is Co- Venture in Technocraft Tabla Formwork System Pvt
Ltd. The following a information are disclosed as per AS-27 Financial
Reporting of Interest in Joint Venture.
1) Details of the Jointly Controlled Entity.
a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.
b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial
Area,
Opp. ESIC Hospital, Andheri (E), Mumbai-400093
c) Country of Incorporation : India
d) Proportion Of Ownerships : 65%
2) Aggregate amount of Income, Expense, Asset and Liabilities related
to the Interest of the company in the Joint- Venture namely Technocraft
Tabla Formwork System Pvt Ltd
3 The Company is also having Joint Venture with Gilcheck Management
Inc,Canadian company operating as Tabla Construction system as a Joint
control operation in respect of production of Tabla Products.
P. Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Q. Books Debts/Advances/Creditors/Bank Balances (Partly)/Loans etc.
have been taken as per books awaiting respective confirmation and
reconciliation.
R. The previous year's figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Accordingly, amount and
other disclosures for the preceding year are included as an integral
part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current
year.
S. Figures in Financial Statements are converted into Lacs and any
discrepancies in any total and the sum of the amounts listed are due to
Rounding-off.
T. In compliance with AS-17 "SEGMENT REPORTING", which has become
mandatory, the required information are as under:
A. PRIMARY SEGMENT
The Business Segment has been considered as the primary segment for
disclosure. The categories included in each of the reported business
segments are as follows:- i) Drum Closures ii scaffoldings iii) Yarn
iv) Garment v) Power
The above business segments have been identified considering:
i) The nature of the product
ii )The deferring risk and returns
iii)The internal financial reporting systems
Revenue and expenses have been accounted for based on the basis of
their relationship to the operating activities of the segment. Revenue
and expenses, which relate to the enterprise as a whole and are not
allocable to segments on a reasonable basis, have included under
"Unallocable Assets/Liabilities."
Mar 31, 2010
A.CONTIGENT LIABILITY (Rs.in Lacs)
SRl Contingent Liabilities
and Commitments For
the Year
Ended For the
Year Ended
not provided For 31.03.2010
(Rs.) 31.03.2009
(Rs.)
I Claims made against the
Company in
respect of Electricity
Demand (net of NIL Rs. 4.02
advance) not acknowledged
as debts.
II. Bank Guarantees aggregating
to Euro
17,50,000 and USD 11,00,000
to Banks Rs. 1552.84 Rs 1686.73
on behalf of subsidiary
Company in Poland.
III. Bank Guarantee aggregating
to USD 5,00,000 Rs. 224.475 NIL
to Banks on behalf of
Fellow Subsidiary
Company, Impact Engineering
Pvt. Ltd.
IV. Income Tax and Interest
Demands For the
A.Y.2001-2002 NIL Rs.1.93
A.Y.2002-2003 Rs.155.19 Rs.352.05
A.Y.2005-2006 NIL Rs. 68.48
B. To comply with the provision of Accounting Standard-2 (Revised),
the company has changed its Accounting Policy in respect of Valuation
of Raw Material and Stores & Spares (including Packing Material) and
the valuation of the same have been made as per the Provision of
Accounting Standard -2 (Revised), whereas in earlier year the same has
been valued at cost or net realizable value whichever is Lower
considering the Cenvat & MVat Credit element as a cost of the stock and
accordingly stock of raw material & stores is lower by Rs 530.56 Lacs.
However , there is no impact on the profit of the Company because of
such deviation.
C. Excise duty in respect of finished goods is being accounted at the
time of clearance of goods as per the practice followed by the Company.
D. The company has not received any memorandum (as required to be
filled by the supplier with the notified authority under the Micro
Small & Medium Enterprises Development Act-2006) claiming their status
as Micro Small & Medium Enterprises, Accordingly the amount
paid/payable together with the interest, if any, have not been given.
E. The Company is entitled to receive Subsidy refund of Interest as
per the Technology upgradation Fund Scheme of the Government of India,
Ministry of Textile and accordingly entitled to receive Rs 89.18 lakhs
which are credited to Profit & Loss account under"Other Income".
F. RETIREMENT BENEFITS
- The Company has recognizing and accruing the Leave Encashment
retirement benefits as per the erstwhile Accounting standard -15 on
"Retirement Benefits".
- In respect of gratuity as per the Revised Accounting standard (AS)-15
on "Retirement Benefits", the company has recognized gratuity liability
of Rs 40,18,788/-.
* Includes Adjustment of Rs 4282181 of earller Years ** Includes
Adjustment of Rs113865 of earller Years
G. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS
In compliance with the AS-18 "RENTED PARTY DISCLOSURE", which has
become mandatory, the required information are as under:-
(I) List of Related Parties over which control exists
Sr.No Name of the Related Party
I. Subsidiary Company/Fellow Subsidiary
Technocraft International Ltd, U.K.
Technocraft Trading Spolka Z.o.o., Poland
Technocraft (Hungary) Kft
Technocraft Australia Pty Limited
Technosoft Information Technologies (India) Ltd
Technocraft Exports Pvt Ltd
Impact Engineering Inc.
CAE Systems GMBH
Anhui Reliable Steel Tec. China
II. Associates
Ashrit Holdings Ltd
Technocraft Global Holding Ltd
B.M.S.Industries Ltd
M.D.Saraf Securities Pvt .Ltd.
III. Key Management Personnel (KMP)
Sharad Kumar Saraf
Sudarshan Kumar Saraf
Madhoprasad Saraf
Navneet Kumar Saraf
Ashish Kumar Saraf
IV. Relatives & Enterprises of KMP
Shantidevi Saraf
Shakuntala Saraf
Suman Saraf
Nidhi Saraf
Ritu Saraf
Priyanka Saraf
Executor to the estate of Late Rukmani Devi Saraf
M.T. Information Technologies
(II) Names of the Related Parties with whom transactions were carried
out during year and description of relationship
Sr.No Related Parties
I Subsidiaries/Fellow Subsidiary
Technocraft International Ltd, U.K
Technocraft Trading Spolka Z.o.o, Poland
Technocraft (Hungary) Kft
Technosoft Information Technologies (India) Ltd
Technocraft Exports Private Limite
Technocraft Australia Pty Limited
Anhui Reliable Steel Tec.China
Impact Engineering Inc
II Associates
B.M.S.Industries Ltd
Ashrit Holdings Ltd
Technocraft Global Holding Ltd
III Key Management Personnel (KMP)
Sharad Kumar Saraf
Sudarshan Kumar Saraf
Navneet Kumar Saraf
Ashish Kumar Saraf
S.K.SarafHuf
H. In compliance with the Accounting Standard 28 - "Impairment of
Assets" which has become mandatory, the Company has considered its
Fixed Assets at Cost of Acquisition or cost of construction, less
Depreciation as per policies adopted by the Company vide Note No. 1(E),
(F) & (G) and none of the Assets has been revalued during the year.
Based on the internal and external sources of information available
with the Company recoverable amount of fixed Assets are higher than the
carrying amount of Fixed Assets, therefore there is no Impairment of
Assets.
I i) Pursuant to a Scheme of Amalgamation approved by the Board of
Directors of the Company at meeting held on 24th October, 2008 and
approved by the Honble High Court, of Judicature at Bombay under
section 391 read with section 394 of the Companies Act, 1956 by its
order dated 14th Oct. 2009 which became effective on December, 2009 on
receipt of certificate of Registration of order of court from the
Registrar of Companies, Mumbai, all the Assets and liabilities of Mulox
Sacks Pvt Ltd. were transferred to the Company with effect from the
appointed date; i.e. 01st April, 2008 Accordingly the scheme has been
given effect to in these accounts.
ii) The Amalgamation has been accounted for under the "The Purchase
Method" as prescribed under Accounting Standards 14 issued by the
Institute of Chartered Accountants of India and accordingly all the
Assets and liabilities of of Mulox Sacks Pvt Ltd. were transferred to
the Company at their existing carrying amount. The Company has also
Identify Deferred Tax Assets amounting to Rs. 18,819/- On brought
forward Business losses and unabsorbed Depreciation underthe Income
Tax.
iii) As per the Scheme of Amalgamation, the Companys investments in
Equity share Capital amounting to Rs. 49,61,499/- & the unsecured Loan
of Rs 3,46,73,119/- to Mulox Sacks Pvt Ltd. stands cancelled.
iv) Pursuant to a Scheme of Amalgamation and after considering the
extinguishments of Companys investments in Equity share Capital &the
unsecured Loan in of Mulox Sacks Pvt Ltd. an amount of Rs. 48,82,103/-
Arising as goodwill, being the difference between the value of
investments in Equity share Capital & the unsecured Loan and the net
value of all the Assets and liabilities of Mulox Sacks Pvt Ltd. on the
appointed date; i.e. 01st April, 2008.
v) The goodwill arising out of the Amalgamation is amortized over a
period of 5 years and accordingly Rs.9,76,421/- is amortized during the
year.
vi) All losses incurred by the Mulox Sacks Pvt Ltd. with effect from
the appointed day, i.e., 01st April, 2008 to 31st March, 2009 has been
Adjusted from Profit & Loss Appropriation and losses from 01st April,
2009 to effective date i.e., 15th December, 2009 and subsequent period
has been treated as the Profit or losses of the Company and accordingly
the effect has been given to in these accounts for such transactions.
vii) Rs. 1,87,946/- has been debited to Amalgamation Expenses Mulox
Sacks Pvt Ltd Accounts as an expenditure relating to the carrying out
and implementing the above scheme of Amalgamation.
J During the year Mulox Sacks Pvt Ltd is seized to be subsidiary of the
company.
K Pursuant to a Scheme of Amalgamation approved by the Board of
directors of the Company at meeting held on 18th January, 2010,
TECHNOCRAFT EXPORT PRIVATE LTD is to be amalgamated with the Company
with effect from 01st April, 2009. The relevant Scheme is yet to be
approved by the Honourable High court of Judicature at Bombay, pending
such approval no effect has been given to the said scheme in these
accounts. Consequently, the accounts do not include figures of Assets
and Liabilities and Income & Expenditure of TECHNOCRAFT EXPORT PRIVATE
LTD for the period 01st April, 2009 to 31st March, 2010. However Rs
75000/- Paid as amalgamation expenses during the year has been charged
to profit and loss A/c.
L The company has not recognised Interest Income amounting to Rs.
63,44,816/- receivable from TECHNOCRAFT EXPORT PRIVATE LTD, a
Subsidiary Company since the Company has filed the Scheme of
Amalgamation in the High Court of Judicature at BOMBAY and accordingly
TECHNOCRAFT EXPORT PRIVATE LTD shall be merged with Technocraft
Industries India with Appointed date i.e. 01/04/2009. Consequently
Profit for the year is lower by Rs. 63,44,816/-.
M No Provision in respect of reduction in Market Value of Quoted Shares
(including investments in Mutual Funds) by an aggregate amount of Rs
214.07 Lakhs as at 31st March 2010, is made as these investments are
held as long term investments and in the perception of the management
there is no permanent diminution in value of such investments.
N Provisions involving substantial degree of estimation in measurement
are recognised when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
O Books Debts/Advances/Creditors/Bank Balances (Partly)/Loans etc. have
been taken as per books awaiting respective confirmation and
reconciliation.
P The previous years figures have been reworked, regrouped, rearranged
and reclassified wherever necessary. Accordingly, amount and other
disclosures for the preceding year are included as an integral part of
the current year financial statements and are to be read in relation to
the amounts and other disclosures relating to the current year.
Q Figures in Financial Statements are converted into Lacs and any
discrepancies in any total and the sum of the amounts listed are due to
Rounding-off.
R. In compliance with AS-17 "SEGMENT REPORTING", which has become
mandatory, the required information are as under
A. PRIMARY SEGMENT
The Business Segment has been considered as the primary segment for
disclosure. The categories included in each of the reported business
segments are as follows: -
i) Drum Closures
ii) Steel Tubes and Scaffoldings
iii) 100% Cotton Yarn
iv) Garment
v) Power
The above business segments have been identified considering:
i) The nature of the product
ii) The deferring risk and returns
iii) The internal financial reporting systems
Revenue and expenses have been accounted for based on the basis of
their relationship to the operating activities of the segment. Revenue
and expenses which relate to the enterprise as a whole and are not
allocable to segments on a reasonable basis, have been included under
"Unallocable Assets/Liabilities
Inter segment transfer if any,are accounted for at competitive market
prices, charged to unaffiliated customer for similargoods
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