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Notes to Accounts of Trident Ltd.

Mar 31, 2015

Note 1: CORPORATE INFORMATION

Trident Limited ("the Company") is a public company domiciled in India and incorporated on April 18, 1990 under the provisions of the Companies Act, 1956. The name of the Company has been changed from Abhishek Industries Limited to Trident Limited on April 18, 2011. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The Company is engaged in manufacturing, trading and selling of yarn, terry towels, paper, chemicals and IT enabled and business related services.

a) Rights, preferences and restrictions attached to the equity shareholders:

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

b) Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 42 A for repayment terms).

With respect to the term loans from banks obtained by erstwhile Trident Corporation Limited (the Amalgamating Company), amalgamated with the Company with effect from the appointed date i.e. April 1, 2014, the same are secured by way of equitable mortgage created on the immovable properties including all buildings, structures, plant and machinery attached thereon and hypothecation of all the movable properties including movable machinery spares, tools and accessories, stocks of raw materials, semi finished goods, consumable stores and other moveables of the Amalgamating Company, as existing immediately prior to the amalgamation of the Amalgamating Company with the Company. (refer note 42 B for repayment terms).

Includes Rs. Nil (Previous year Rs.872.6 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks.

Note 2: CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (Rs million)

Particular As at March As at March 31, 2015 31, 2014

I Contingent liabilities

a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

* Service tax 4.2 3.3

* Excise duty 46.2 83.1

* Income tax 42.8 72.1

* Sales Tax 0.7 -

* Others 0.3 -

b) Bills discounted 1,919.8 1,747.6

c) Guarantees given to banks on behalf of others of Rs.1,896.0 1,159.0 1,111.9 million (Previous year Rs.1,978.1 million) - Loan outstanding

II Commitments

a) Estimated amount of contracts remaining to be executed on 4,909.0 576.0 capital account (net of advances)

b) Other commitments #

* These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company.

A The above guarantees have been provided for business purposes.

* The Company has other commitments for purchase/sale orders which are issued after considering requirements per operating cycle for purchase/ sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/contracts which might have a material impact on the financial statements other than commitment given for advertisement in print media of Rs.74.3 million (Previous year Rs.184.3 million), for which advance has been given by the Company.

b) Defined benefit plans Gratuity scheme

The amount of gratuity has been computed based on respective employee''s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts'' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, Bajaj Allianz and PNB Metlife India Insurance Company Limited. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

Note 3: DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs.27.8 million (Previous year Rs.41.1 million). The amount of interest accrued during the year and remaining unpaid as at March 31, 2015 is Rs.0.3 million (Previous year Rs.0.2 million).

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 4: RELATED PARTY DISCLOSURES

The related party disclosures as per Accounting Standard- 18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Enterprise that controls the Company

* Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary company

* Trident Global Corp Limited

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

* Trident Group Limited

* Trident Institute of Social Sciences

* Trident Industrial Corp Limited

b) Enterprise on which Company exercises significant influence

* Trident Global Inc.

c) Key management personnel and their relatives

* Mr. Deepak Nanda

Note 5: SEGMENT INFORMATION

I Segment Accounting Policies:

a. The business segments comprise of the following:

Textiles : Yarn, Towel, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical : Paper and Sulphuric Acid (Including utility service)

Others : Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company. On a review carried out on the basis of factors detailed in Accounting standard (AS) - 17 "Segment Reporting", ''Yarn'' and ''Terry Towel'' business segments have been combined into one segment namely "Textiles" during the year.

c. The geographical segments considered for disclosure are based on markets, broadly as under:

Sale in the USA

Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

b) Derivative instruments are for hedging foreign exchange risk arising from underlined transaction, firm commitments and/or highly probable forecast transactions.

c) Foreign currency exposures remaining unhedged at the year end:

Against imports (creditors) - Euro 0.7 million (Previous year Euro 0.2 million)

- USD 0.4 million (Previous year USD 0.9 million)

- CHF 0.1 million (Previous year CHF 0.1 million )

- JPY 0.7 million (Previous year JPY Nil)

Against imports (advance to creditors) - USD 0.4 million (Previous year USD 0.6 million)

- JPY 1.3 million (Previous year JPY 1.9 million)

Foreign currency loans - USD 21.75 million (Previous year USD 28.36 million)

Note 6: AMALGAMATION OF TRIDENT CORPORATION LIMITED WITH THE COMPANY

Pursuant to scheme of Amalgamation of erstwhile Trident Corporation Limited (TCL) with the Company approved by Hon''ble Punjab and Haryana High Court vide its order dated March 14, 2014 which became effective on April 18, 2014 on filing of the certified copy of the order of the High Court with The Registrar of Companies at Chandigarh, all the properties, assets, both movable and immovable and liabilities of TCL have without further act or deed, been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1,2014.

For giving effect to the amalgamation in the nature of merger, the ''purchase'' method as prescribed by the Accounting Standard 14 "Accounting for Amalgamations" issued by the Institute of Chartered Accountants of India, has been followed in these accounts wherein, the assets and liabilities as at April 1, 2014 and the transactions including income and expenses for the period April 1, 2014 to April 18, 2014 of TCL (being the period when pending effectuation of the Scheme, the business and activities of TCL were being run and managed in trust for the Company) have been incorporated in the accounts of the Company.

Note 7: LEASE AGREEMENTS

The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.57.5 million (Previous year Rs.47.2 million) have been charged under "Rent" in note 27.

Note 8: MONEY RECEIVED AGAINST SHARE WARRANTS

The Company on September 30, 2013, had issued 60,000,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs.10 each at par for every warrant held, within 18 months from the date of allotment of warrants.

Pursuant to exercise of conversion option by the holders of warrants, the Company has, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009; allotted 60,000,000 equity shares of Rs.10 each fully paid up for cash on October 6, 2014. There is no warrants outstanding as on March 31, 2015.

Note 9: EQUITY HELD BY TAL BENEFIT TRUST

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2015, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (previous year 14,548,387) equity shares of Trident Limited aggregating to Rs.145.5 million (previous year Rs.145.5 million) which is shown as Investment.

Note 10: EMPLOYEES'' STOCK OPTION PLANS

The erstwhile Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 09, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs.17.55 and Rs.11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 1,202,757 equity shares (previous year 249,600 equity shares) to employees during the year under the Trident Employees Stock Options Plan, 2007.

Note 11: INVESTMENT IN PREFERENCE SHARES

The Board of Directors of IOL Chemicals and Pharmaceuticals Limited (IOL) in its meeting held on June 21, 2014 has allotted 1,785,714 equity shares of IOL to the Company at a price of ''28 per equity share pursuant to exercise of conversion option given by the Board of Directors of IOL to the Company as holder of 7% Non-Cumulative Redeemable Preference Shares issued by IOL to it in an earlier year.

Note 12:

The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

Note 13:

There are no amounts that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956/2013 and rules made thereunder.

Note 14:

As the current year''s figures are of merged entity, these are not comparable with previous financial year''s figures. Further, previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.


Mar 31, 2014

CORPORATE INFORMATION

Trident Limited ("the Company") is a public company domiciled in India and incorporated on April 18, 1990 under the provisions of the Companies Act, 1956. The name of the Company has been changed from Abhishek Industries Limited to Trident Limited on April 18, 2011. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The Company is engaged in manufacturing, trading and selling of yarn, terry towels, paper, chemicals and IT enabled and business related services.

SHARE CAPITAL

Rights, preferences and restrictions attached to the equity shareholders:

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and/or to be created in favour of the Company''s bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movables, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (Refer note 42 for repayment terms).

Includes Rs.872.6 million (Previous year Rs.1,145.8 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks. As per agreed terms, these buyer credit loans would be repaid to foreign banks by Indian banks out of term loan amount sanctioned to the Company by these Indian banks and accordingly, have been classified as long term borrowings.

Cash credits/working capital loans

Cash credits/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, stock-in- process, consumable stores, other movable assets and book debts, present and future, of the Company. The limits are further secured by way of second pari passu charge on the immovable properties of the Company.

FIXED ASSETS

Notes:

1. Additions to plant and machinery include exchange fluctuation loss of Rs.488.4 million (Previous year Rs.390.8 million).

2. Sales/adjustment to plant and machinery include exchange fluctuation gain of Rs.120.0 million (Previous year Rs.33.8 million).

Notes:

1. Additions to plant and machinery includes exchange fluctuation loss of Rs.390.8 million (Previous year Rs.421.3 million).

2. Sales /adjustment to plant and machinery includes exchange fluctuation gain of Rs.33.8 million (Previous year Rs.20.0 million).

CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

As at March 31, As at March 31, 2014 2013

I. Contingent liabilities

(a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

- Service tax 3.3 5.7 - Excise duty 83.1 45.6 - Income tax 72.1 9.4 - Others - 0.5

(b) Bills discounted 1,747.6 1,963.5

(c) Guarantees given to banks on behalf of others of Rs.1978.1 million (Previous year Rs.1978.1 million) - Loan outstanding 1,111.9 1,187.4

II. Commitments

(a) Estimated amount of contracts remaining 576.0 41.4 to be executed on capital account (net of advances)

(b) Other commitments #

* All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the Company.

# The Company has other commitments for purchase/sale orders which are issued after considering requirements per operating cycle for purchase/sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancellable contractual commitments/contracts which might have a material impact on the financial statements other than commitment given for advertisement in print media of Rs.184.3 million (Previous year Rs.280.8 million), for which the Company has given advance.

a) Defined contribution plans

The Company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs.185.7 million (Previous year Rs.161.6 million) during the year as expense towards contribution to these plans.

b) Defined benefit plans

Gratuity scheme

The amount of gratuity has been computed based on respective employee''s salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts'' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited and Metlife India Insurance Company Limited. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs.41.1 million (Previous year Rs.35.1 million). The amount of interest accrued during the year and remaining unpaid as at March 31, 2014 is Rs.0.2 million (Previous year Nil).

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

RELATED PARTY DISCLOSURES

The related party disclosures as per Accounting Standard - 18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Eneterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary companies

- Trident Global Corp Limited

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company

- Trident Group Limited - Trident Capital Limited - Trident Industrial Corp Limited

b) Enterprise on which Company exercises significant influence

- Trident Corporation Limited (Also refer note 39) - Lotus Integrated Texpark Limited (upto 31.03.2013) - Trident Global, Inc.

c) Key management personnel and other relatives

- Mr. Deepak Nanda

Segment Accounting Policies:

a. The business segments comprise of the following:

Yarn : Yarn manufacturing (Including utility service)

Towel : Towel, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical : Paper and Sulphuric Acid(Including utility service)

Others : Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company.

c. The geographical segments considered for disclosure are based on markets, broadly as under:

Sale in the USA Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii Inter segment sales:

Inter segment sales are accounted for at cost and are eliminated in consolidation.

AMALGAMATION OF TRIDENT CORPORATION LIMITED WITH THE COMPANY

Subsequent to year end, Trident Corporation Limited has been amalgamated with the Company w.e.f. the appointed date i.e. April 1, 2014 in terms of Scheme of Amalgamation sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated March 14, 2014. In terms of the sanctioned scheme, the undertaking of Trident Corporation Limited stands transferred and vests in the Company. The Company has allotted 136,352,000 equity shares of Rs.10 each at a premium of Rs.18.61 per share on May 15, 2014 to the shareholders of erstwhile Trident Corporation Limited in terms of the sanctioned scheme of Amalgamation. Consequent to this allotment, the paid up equity share capital of the Company has increased to Rs.4,474.39 million. The investments and capital advances inter-se between the Amalgamating company (Trident Corporation Limited) and Amalgamated company (Trident Limited) shall stand cancelled on the Appointed date i.e. April 1, 2014.

LEASE AGREEMENTS

The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.47.2 million (Previous year Rs.45.3 millions) have been charged under "Rent" in note 27.

MONEY RECEIVED AGAINST SHARE WARRANTS

The Company on September 30, 2013, had issued 60,000,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs.10 each at par for every warrant held, within 18 months from the date of allotment of warrants.

Number of warrants outstanding as on March 31, 2014 are 60,000,000, which can be converted into equity shares within 18 months from the date of allotment i.e. anytime before March 31, 2015. Against these outstanding warrants as on March 31, 2014, an amount of Rs.430 million has been received by the Company and which shall be utilized towards capital expenditure for its composite textile project.

EQUITY HELD BY TAL BENEFIT TRUST

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2014, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (Previous year 14,548,387) equity shares of Trident Limited aggregating to Rs.145.5 million (Previous year Rs.145.5 million) which is shown as Investment.

EMPLOYEES'' STOCK OPTION PLANS

The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plan'') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs.17.55 and Rs.11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 249,600 equity shares (Previous year Nil) to employees during the year under the Trident Employees Stock Options Plan, 2007.

The Company has also introduced Trident Employees Option Scheme, 2009 after the approval of shareholders in their meeting held on August 27, 2009. No grant has been given under the said scheme.

INVESTMENT IN PREFERENCE SHARES

7% Non-Cumulative Redeemable Preference Shares of IOL Chemicals and Pharmaceuticals Limited held by the Company were due for redemption on March 20, 2014. However, the date of redemption of the said preference shares has been extended by the Board of Directors of the Company vide its resolution dated February 9, 2014 from March 20, 2014 to June 30, 2015, with an option to convert these preference shares into equity shares at a price calculated in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 or Rs.10/-, whichever is higher. The equity shares so issued shall rank pari passu with existing equity shares of IOL Chemicals and Pharmaceuticals Limited. Further, the Board of Directors of the Company, in their meeting held on May 15, 2014, requested IOL Chemicals and Pharmaceuticals Limited for pre-poning the right of conversion of 7% Non-Cumulative Redeemable Preference Shares into equity shares at the price of Rs.28/- per share or as calculated in terms of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, whichever is higher.


Mar 31, 2013

NOTE 1 - CORPORATE INFORMATION

Trident Limited (the Company) is a public company domiciled in ndia and incorporated under the provisions of the Companies Act, 1956 on April 18, 1990. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Company is engaged in manufacturing, trading and sale of yarn, terry towels, paper, chemicals and sale of services

NOTE 2 -According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs.35.1 million (previous yearRs.23.6 million). The amount of interest accrued during the year and remaining unpaid as at March 31, 2013 is Rs.Nil (Previous yearRs.0.1 million)

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors

NOTE 3- THE RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD- 18 ARE AS UNDER:

A. Name of related party and nature of related party relationship (i) Enterprises where control exists

a. Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b. Enterprises that are controlled by the Company, i.e. subsidiary companies

- Trident Global Corp Limited

(ii) Other related parties where transactions have taken place during the year:

a. Enterprises under the common control as the Company

- Trident Group Limited

- Trident Corporation Limited

- Trident Capital Limited

-Abhishek Ventures and Projects Limited

b. Enterprise on which Company exercise significant influence

- Lotus Integrated Texpark Limited

- Trident Global Inc.

c. Key management personnel and their relatives

- Mr. Rajinder Gupta (Ceased to be Managing Director w.e.f. April 23, 2012)

- Mr. Abhishek Gupta (Ceased to be Managing Director w.e.f.October 25, 2012)

- Mr. Deepak Nanda

- Mrs. Madhu Gupta

- Ms. Neha Gupta

NOTE 4 - SEGMENT INFORMATION I Segment Accounting Policies

a. The business segments comprise of the following:

Yarn Yarn manufacturing (Including utility service)

Towel Towel, Dyed Yarn manufacturing (Including utility service)

Paper and Chemical Paper and Sulphuric Acid (Including utility service)

Infotech Sale of software and related services

b. Business segments have been identified based on the nature and class of products and services, their customers and assessment of differential risks and returns and financial reporting system within the Company.

c. The geographical segments considered for disclosure are based on markets, broadly as under: Sale in the USA

Sale in rest of the world

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities

li. Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments

lii. Inter segment sales: Inter segment sales are accounted for at cost and are eliminated in consolidation

NOTE 5 - The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.45.3 million (Previous year Rs.48.0 millions) have been charges under "Rent" in note 27.

NOTE 6 - MONEY RECEIVED AGAINST SHARE WARRANT

The Company on April 27, 2011 had issued warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs.10 for every warrant held, within 18 months from the date of allotment of warrants, at a premium of Rs.7.05 per share.

Pursuant to exercise of conversion option by the holder of warrants, the Company has, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009; allotted 50,00,000 equity shares of Rs.10 each fully paid up for cash at a premium of Rs.7.05 per share i.e. at the price of Rs.17.05 per equity share on October 25, 2012.

There is no warrants outstanding as on March 31, 2013, which can be converted into equity shares.

NOTE 7 - AMALGAMATION OF THE ERSTWHILE TRIDENT INFOTECH LIMITED AND ERSTWHILE TRIDENT AGRITECH LIMITED

(a) During previous year, pursuant to the Scheme of Arrangement for Amalgamation (the "Scheme") of the erstwhile Trident nfotech Limited (TIL) and erstwhile Trident Agritech Limited (TAL) with the Company under Sections 391 to 394 of the Companies Act, 1956 approved by the Hon''ble Punjab and Haryana High Court vide its Order dated September 29, 2011 which became effective on November 21, 2011 on filing of the certified copy of the Order of the High Court in the Office of Registrar of Companies, at Chandigarh, all the properties, assets, both movable and immovable, liabilities and reserves of TIL and TAL have without further act or deed, been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1, 2011

The net surplus arising consequent to amalgamation of TIL and TAL in to the Company in terms of the Scheme had been credited to Capital Reserve'' during previous year

(b) Equity in Trident Benefit Trust

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of arrangement for amalgamation of erstwhile Trident Agritech Limited with the Company as sanctioned by Hon''ble Punjab and Haryana High Court at Chandigarh vide its order dated September 29, 2011

As at March 31, 2013, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (Previous year 14,548,387) equity shares of Trident Limited aggregating to Rs.145.5 million which is shown as Investment

NOTE 8 - EMPLOYEE STOCK OPTIONS PLAN

The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 (''the Plans'') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs.17.55 and Rs.11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact in the statement of profit and loss due to Employee Share-based options as the Company is following intrinsic value method

NOTE 9 - Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.


Mar 31, 2012

Term loans

Term loans from banks and financial institutions are secured by way of equitable mortgage created or to be created on all the present and future immovable properties including all land, buildings, structures, all plant and machinery attached thereon of the Company and hypothecation of all the movable properties including movable machinery spares, tools and accessories, etc., present and future, subject to prior charges created and / or to be created in favor of the Company's bankers on stocks of raw materials, semi finished and finished goods, consumable stores and other movable, as may be required for working capital requirements in the ordinary course of business. The mortgages and charges referred to above rank pari-passu among the lenders (refer note 42 for repayment terms).

Includes Rs. 1,391.5 million (previous year Rs. 146.9 million) buyers credits loan taken by the Company for a period of up to 3 years from foreign banks against term loans sanctioned by Indian banks. As per agreed terms, these buyer credit loans would be repaid to foreign banks by Indian banks out of term loan amount sanction to the Company by these Indian banks.

Vehicles loans

Vehicle loans are secured by hypothecation of vehicles acquired against such loans (refer note 42 for repayment terms).

Cash credits/working capital loans

Cash credit/working capital loans are secured by hypothecation of raw materials, semi finished and finished goods, stock-in-process, consumable stores, other movable assets and book debts, present and future, of the Company. The limits are further secured by way of second pari passu charge on the immovable properties of the Company.

* Will be credited to Investor Education and Protection Fund on the expiry of 7 years from the due date.

Notes:

1. Additions to plant and machinery includes exchange fluctuation loss of Rs. 421.3 million (Previous year Rs. 106.9 million).

2. Sales/adjustment to plant and machinery includes exchange fluctuation gain of Rs. 20.0 million (Previous year Rs. 85.5 million).

* Building includes Rs.16.0 million being expenses incurred by the Company towards construction of canal for sourcing of water, ownership of which belongs to Government of Punjab (Department of Irrigation), which has been fully amortized.

# Plant and machinery includes Rs. 15.5 million being expenses incurred by the Company towards laying of feeder line, ownership of which belongs to Punjab State Electricity Board, which has been fully amortized.

^ Refer note 43.

* The Company has executed a non-disposal undertaking in favors of various banks that have provided financial assistance to these companies.

* At cost or net realizable value, whichever is lower

* At cost or net realizable value, whichever is lower

* All the above matters are subject to legal proceedings in the ordinary course of business. The legal proceedings when ultimately concluded will not, in the opinion of the management, have a material effect on the results of operations or financial position of the Company.

# The Company has other commitments for purchase/sale orders which are issued after considering requirements per operating cycle for purchase/sale of goods and services, employee benefits. The Company does not have any long term commitment or material non cancelable contractual commitments/contracts which might have a material impact on the financial statements other than commitment and advance given for advertisement in print media of Rs.300 million for Trident limited and its group entities.

(Rs. millions)

Note CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

I. Contingent liabilities

a) Claims* (excluding claims by employees where amounts are not ascertainable) not acknowledged as debt:

-Service Tax 4.1 3.7

- Excise duty 82.5 6.0

-Income Tax 11.0 22.8

-Others 0.5 2.8

b) Bills discounted 995.3 1,069.5

c) Guarantees given to banks on behalf of others Rs. 1,358.1 million

(Previous year Rs.308.1 million) - loan availed 676.1 141.9

II. Commitments

a) Estimated amount of contracts remaining to be

executed on capital account (net of advances) 53.4 2,128.4

b) Other commitments #

a) Defined contribution plans

The Company makes contribution towards employees' provident fund and employees' state insurance plan scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs. 149.0 million (Previous year Rs. 129.6 million) during the year as expense towards contribution to these plans. Out of Rs. 149.0 million, Rs.8.5 million (Previous year Rs. 0.6 million) is included under fixed assets/ capital work in progress.

b) Defined benefit plans Gratuity scheme

The amount of gratuity has been computed based on respective employee's salary and the years of employment with the Company. Gratuity has been accrued based on actuarial valuation as at the balance sheet date, carried out by an independent actuary. The amount is funded through trusts' group gratuity schemes managed by Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited and Metlife India Insurance Company Limited. The Company is contributing to trusts towards the payment of premium of such group gratuity schemes.

Compensated Absences

Compensated absences include earned leaves and sick leaves. Long term compensated absences have been provided on accrual basis based on year end actuarial valuation and short term compensated absences on actual basis.

*The plan assets are maintained with Life Insurance Corporation of India, SBI Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, MetLife India Insurance Company Limited and Trust. The details of the investment maintained by these parties are not available with the company and have not been disclosed.

The experience adjustments arising on plan liabilities and plan assets and the employer's best estimate of contributions expected to be paid in next financial year is not ascertained and has accordingly not disclosed above.

Note

According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006, during the year is Rs. 23.6 million (previous year Rs. 17.8 million). The amount of interest accrued during the year and remaining unpaid at as March 31, 2012 is Rs. 0.1 million (Previous year Rs. 0.2 million).

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

* Nil, as exercise price of outstanding ESOP and share warrants is more than the fair value of share, hence considered anti-dilutive.

The related party disclosures as per Accounting Standard-18 are as under:

A. Name of related party and nature of related party relationship

(i) Enterprises where control exists

a) Enterprise that controls the Company

- Madhuraj Foundation (directly or indirectly holds majority voting power)

b) Enterprises that are controlled by the Company, i.e. subsidiary companies - None

(ii) Other related parties where transactions have taken place during the year:

a) Enterprises under the common control as the Company -Trident Group Limited -Trident Infotech Limited (Ceased to be related party w.e.f. 21.11.2011)

-Trident Corporation Limited -Trident Capital Limited

- Trident Towels Limited

- Abhishek Ventures & Projects Limited -Trinetra Technologies Limited

b) Enterprise on which Company exercise significant influence

- Lotus Integrated Texpark Limited

- Trident Agritech Limited (Ceased to be related party w.e.f. 21.11.2011)

c) Key management personnel

- Mr. Rajinder Gupta

- Mr. Raman Kumar (up to 12.11.2011)

- Mr. Deepak Nanda (w.e.f. 12.11.2011)

d) Relative of Key management personnel

- Mrs. Madhu Gupta

- Mr. Abhishek Gupta

* Ceased w.e.f. 27th November 2010.

** Ceased w.e.f. 9th February 2011.

# Amount incorporated pursuant to amalgamation with Trident Agritech Limited (refer note 43).

^ Amount incorporated pursuant to amalgamation with Trident Infotech Limited (refer note 43).

$ Amalgamated with the Company (refer note 43).

## Includes Rs.147.0 million incorporated pursuant to amalgamation of Trident Agritech Limited with the Company. @ Excluding share application money of Rs.178 million given and received back during the year.

d. Segment accounting policies: In addition to the significant accounting policies, applicable to the business as set out in note 2, the accounting policies in relation to segment accounting are as under:

i. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of cash, debtors, inventories and fixed assets including capital work in progress, net of allowances and provisions, which are reported as direct offset in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

ii. Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

iii. Inter segment sales: Inter segment sales are accounted for at cost and are eliminated in consolidation.

Note

A major part of revenue of the Company comes from export sales and as such company has foreign currency fluctuation exposure:

a) During the previous years, the Company has hedged its foreign currency fluctuation exposure by taking various derivative options from various banks having maturity up to January 2013. These derivative options are proprietary products of banks, which do not have a ready market and as such are marked to a model, which is usually bank specific instead of being marked to market. In view of the significant fluctuations associated with the above derivative options, the loss on such derivative options has been provided on settlement basis. Based on the marked to market concept, the loss on valuation on this account amounts to Rs. 343.6 million as on March 31, 2012.

b) The Company has not accounted for reinstatement loss on forward contracts in view of the significant currency fluctuations associated with the exchange rates for the quarter and year ended March 31, 2012. In view of the significant fluctuations associated with these contracts, the loss on such forward contracts has been provided on settlement basis. Based on the marked to market concept, the loss on valuation on this account amounts to Rs. 263.5 million as on March 31, 2012.

Note

The Company has entered into operating lease agreements for offices. These lease arrangements are cancellable in nature and range between one to three years. The aggregate lease rentals under these agreements amounting to Rs.48.0 million (Previous year Rs. 53.7 millions) have been charges under "Rent" in note 27.

Note MONEY RECEIVED AGAINST SHARE WARRANT

The Company on April 27, 2011 had issued 3,50,00,000 warrants carrying an option to the holder of such warrants to subscribe to one equity share of Rs 10 for every warrant held, within 18 months from the date of allotment of warrants, at a premium of Rs. 7.05 per share.

Pursuant to exercise of conversion option by the holder of warrants, the Company has, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009; allotted 3,00,00,000 equity shares of Rs. 10 each fully paid up for cash at a premium of Rs 7.05 per share i.e. at the price of Rs. 17.05 per equity share on March 30, 2012.

Number of warrants outstanding as on March 31, 2012 are 50,00,000, which can be converted into equity shares within 18 months from the date of allotment i.e anytime before October 26, 2012. Against these outstanding warrants as on March 31, 2012, an amount of Rs. 21.30 million i.e. 25% of Rs. 17.05 per warrant has been received by the Company.

B. Vehicle Loans from banks

Vehicle loans are secured by hypothecation of vehicles acquired against such loans, repayable on equal monthly installments, amount due in a year is Rs. 20.1 million (previous year Rs. 22.5 million)

Note AMALGAMATION OF THE ERSTWHILE TRIDENT INFOTECH LIMITED AND ERSTWHILE TRIDENT AGRITECH LIMITED"

a) Pursuant to the Scheme of Arrangement for Amalgamation (the "Scheme") of the erstwhile Trident Infotech Limited (TIL) and erstwhile Trident Agritech Limited (TAL) with the Company under Sections 391 to 394 of the Companies Act, 1956 approved by the Hon'ble Punjab and Haryana High Court vide its Order dated September 29, 2011 which became effective on November 21, 2011 on filing of the certified copy of the Order of the High Court in the Office of Registrar of Companies, at Chandigarh, all the properties, assets, both movable and immovable and liabilities of TIL and TAL have without further act or deed, been transferred to and vested in the Company, as a going concern with effect from the appointed date i.e. April 1, 2011.

For giving effect to the amalgamation in the nature of merger the 'purchase' method as prescribed by the Accounting Standard 14 "Accounting for amalgamations" issued by the Institute of Chartered Accountants of India, has been followed in these accounts wherein, the assets and liabilities as at April 1, 2011 and the transactions including income and expenses for the period April 1, 2011 to November 21, 2011 of TIL and TAL (being the period when pending effectuation of the Scheme, the business and activities of TIL and TAL were being run and managed in trust for the Company) have been incorporated in the accounts of the Company.

Consequent to the effectuation of the said Scheme:

The shareholders of TIL were entitled to five equity shares of Rs. 10 each in the Company as fully paid up (exchange shares) for every six equity shares of Rs. 10 each fully paid held by them in TIL.

The shareholders of TAL were entitled to twenty equity shares of Rs. 1 0 each in the Company as fully paid up (exchange shares) for every thirty one equity shares of Rs. 1 0 each fully paid held by them in TAL.

The net surplus arising consequent to amalgamation of TIL and TAL in to the Company in terms of the Scheme has been credited to 'Capital Reserve'.

b) Interest (Equity) in TAL Benefit Trust

The Company is a beneficiary of a Trust viz. TAL Benefit Trust settled pursuant to the scheme of arrangement for amalgamation of erstwhile Trident Aristech Limited with the Company as sanctioned by Hon'ble Punjab and Haryana High Court at Chandigarh vide its Order dated September 29, 2011.

As at March 31, 2012, the beneficial interest of the Company in the TAL Benefit Trust is 14,548,387 (Previous year Nil) equity shares of Trident Limited aggregating to Rs.145.5 million which is shown as Investment.

Note EMPLOYEE STOCK OPTIONS PLAN

The Compensation Committee of Board of Directors of the Company has granted options to the employees pursuant to Trident Employees Stock Options Plan 2007 ('the Plans') on July 9, 2007 (Grant I) and July 23, 2009 (Grant II). These options were granted at Rs. 17.55 and Rs. 11.20 per option respectively, being the latest available closing market price prior to the date of grant of options in accordance with SEBI guidelines. The quoted price of share on grant and the exercise price of option is equal and therefore there is no impact on profit and loss account due to Employee Share-based options as the Company is following intrinsic value method.

The Company has allotted 32,174 equity shares under Grant II to employees during the year.

In respect of options granted under the Employees' Stock Option Plan, in accordance with Guidance Note on Accounting for Employee Share-based Payment issued by the Institute of Chartered Accountants of India, the details of Options outstanding is as under:

Note

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

 
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