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Notes to Accounts of Vijay Textiles Ltd.

Mar 31, 2016

(b) (i) Rights, preference and restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/- each per share (Previous Year : Rs. 10/- each). Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares held by the shareholders.

(I) Term Loans from banks namely Axis Bank Limited, State Bank of Hyderabad and State Bank of India, are secured by :

(a) First pari passu charge on all the immovable and movable Fixed Assets present and future of the Company.

(b) Second pari passu charge on all the current assets of the Company (excluding credit card receivables).

(c) Further the terms loans are collaterally secured by;

(i) Commercial space admeasuring 5108.75 sft, bearing shop Nos: 8,9,11 and 13, situated in Ground Floor, Surya Towers, 104, S.P Road, Secunderabad-500 003, standing in the names of Shri Vijay Kumar Gupta, Shri Vijay Kumar Gupta (HUF), Shri Susheel Kumar Gupta and Smt. Shashikala Gupta.

(ii) Pledge of entire shares held by Promoters i.e Shri Vijay Kumat Gupta, Shri Susheel Kumar Gupta, Smt Shashikala Gupta.

(iii) Personal Guarantees of Shri. Vijay Kumar Gupta,Vijay Kumar Gupta HUF, Shri. Susheel Kumar Gupta and Mrs. Shashikala Gupta. Guarantee limited to the value of the security mortgaged.

(iv) Term -II and FITL-II of State Bank of Hyderabad is secured by exclusive charge on credit card receivables and collateral security as pari passu first charge on the fixed assets of the Company present and future.

Terms of Repayment:

1. Axis Bank - Term Loan repayable in 68 monthly installments. Repayable during the financial year 2016-2021 Rs. 43.00 Lakhs per annum, 2021 to 2022 Rs. 32.00 Lakhs per annum commencing from 31st July, 2015, carrying interest @ 2.25% p.a. above the base rate of the bank.

2. Axis Bank - Funded Interest Term Loan repayable in 68 monthly installments. Repayable during the financial year 2016-2021 Rs. 7.80 Lakhs per annum, 2021 to 2022 Rs. 5.50 Lakhs per annum commencing from 31st July, 2015,carrying interest @2.25% p.a. above the base rate of the bank.

3. Axis Bank - Working Capital Term Loan repayable in 50 monthly installments. Repayable during the financial year 2016-2020 Rs. 111.00 Lakhs per annum, 2020 to 2021 Rs.84.00 Lakhs per annum commencing from 31st July, 2015,carrying interest @2.25% p.a. above the base rate of the bank.

4. Axis Bank - Priority Debt Loan repayable in 50 monthly installments. Repayable during the financial 2016-2020 Rs. 39.00 Lakhs per annum, 2020 to 2021 Rs. 9.80 Lakhs per annum commencing from 31st July, 2015,carrying an interest @2.25% above the base rate of the bank.

5. State Bank of Hyderabad - Term Loan -I,II,III and IV repayable in 68 monthly installments. Repayable during the calendar year 2016 Rs. 584 Lakhs, 2017 to 2021 Rs. 768.00 Lakhs per annum commencing from 31st July, 2015,carrying interest @2.50% p.a. above the base rate of the bank.

6. State Bank of Hyderabad - Funded Interest Term Loan repayable in 68 equal monthly installments. Repayable during the calendar year 2016 to 2017 Rs. 108.00 Lakhs per annum, 2018 to 2021 Rs. 132.00 Lakhs per annum commencing from 31st July,20l5,carrying interest @2.50% p.a.above the base rate of the bank.

7. State Bank of Hyderabad -Working Capital Term Loan repayable in 56 monthly installments. Repayable during the calender year, 2016 Rs. 40.50 Lakhs and 2017 Rs. 54.00 Lakhs per annum, 2018 to 2020 Rs. 55.00 Lakhs per annum commencing from 31st July,20l5,carrying interest @2.50% p.a. above the base rate of the bank.

8. State Bank of Hyderabad - Priority Debt Loan repayable in 50 monthly installments. Repayable during the calender year 2016 Rs. 72.00 Lakhs and 2017 to 2019 Rs. 96.00 Lakhs per annum, 2020 Rs. 34.00 Lakhs per annum commencing from 31st July,20l5, carrying interest @2.50% p.a. above the base rate of the bank.

9. State Bank of India - Term Loan -I,II,III and IV repayable in 68 monthly installments. Repayable during the calender year, 2016 Rs. 54.00 Lakhs 2017 to 2021 Rs. 73.00 Lakhs per annum commencing from 31st July,20l5, carrying interest @2.50% p.a. above the base rate of the bank.

10. State Bank of India - Funded Interest Term Loan - repayable in 68 monthly installments. Repayable during the calender year 2016 Rs. 55.00 Laksh 2017 to 2021 Rs. 13.00 Lakhs per annum commencing from 31st July,20l5, carrying interest @2.50% p.a. above the base rate of the bank.

11. State Bank of India - Working Capital Term Loan - repayable in 58 monthly installments. Repayable during the calender year 20l6 Rs. l44.00 Lakhs, 20l7 to 2020 Rs. l97.00 Lakhs per annum commencing from 3lst July,20l5, carrying interest @2.50% p.a. above the base rate of the bank.1l2. State Bank of India - Priority Debt Term Loan - repayable in 50 monthly installments. Repayable during the calender year 20l6 Rs. 54.00 Lakhs, 20l7 to 20l9 Rs. 69.00 Lakhs per annum, 2020 to 202l Rs. 34.00 Lakhs per annuam commencing from 3lst July,20l5,carrying an interest rate 2.50% above base rate.

(II) a. Vehicle Loans is secured by way of hypothecation of specific vehicle financed.

b. Terms of Repayment:

13. Loan availed from HDFC Bank Ltd., under Loan Account No.27578920 is repayable in monthly installment of Rs. 2.29 Lakhs each inclusive of interest ending on 7th March,20l7.

14. Loan availed from HDFC Bank Ltd., under Loan Account No.275808l6 is repayable in monthly installment of Rs. 0.75 Lakhs each inclusive of interest ending on 7th March,20l7.

15. Loan availed from HDFC Bank Ltd., under Loan Account No.326806l2 is repayable in monthly installment of Rs. l.30 Lakhs each inclusive of interest ending on 7th May,20l8.

16. Loan availed from HDFC Bank Ltd., under Loan Account No.32957442 is repayable in monthly installment of Rs. 0.92 Lakhs each inclusive of interest ending on 5th May,20l8.

17. Loan availed from HDFC Bank Ltd., under Loan Account No.32957925 is repayable in monthly installment of Rs. l.l5 Lakhs each inclusive of interest ending on 5th May,20l8.

18. Loan availed from HDFC Bank Ltd., under Loan Account No.335l0349 is repayable in monthly installment of Rs. 0.55 Lakhs each inclusive of interest ending on 5th July,20l8.

19. Loan availed from HDFC Bank Ltd., under Loan Account No.335l0860 is repayable in monthly installment of Rs. 0.55 Lakhs each inclusive of interest ending on 5th July,20l8.

20. Loan availed from Toyota Financial Services India Ltd., under Loan Account No.NHYDl055446 is repayable in monthly installment of Rs. 0.37 Lakhs each inclusive of interest ending on 20th 0ctober,20l8.

21. Loan availed from Toyota Financial Services India Ltd., under Loan Account No.NHYDl055447 is repayable in monthly installment of Rs. 0.37 Lakhs each inclusive of interest ending on 20th 0ctober,20l8.

III) Unsecured Loans From Related Parties

Unsecured Loans are from Shri.Vijay Kumar Gupta, Chairman and Managing Director and Shri. Susheel Kumar Gupta, Executive Director of the Company repayable over a period of 6 years ending on l5th April, 2022.

Working Capital facilities availed by the Company from State Bank of India, State Bank of Hyderabad and Axis Bank Limited are secured by:

(a) Pari-Passu first charge on all chargeable current assets of the Company in favour of State Bank of India, State Bank of Hyderabad, Axis Bank Limited (excluding credit card receivables, which are charged to State Bank of Hyderabad alone and are separately dealt with herein).

(b) Pari-Passu second charge on entire Fixed Assets of the Company, both present and future.

Further the Working Capital facilities are collaterally secured by :

(c) Commercial space admeasuring 5108.75 sft, bearing shop Nos: 8,9,11 and 13, situated in Ground Floor, Surya Towers, 104, S.PRoad, Secunderabad-500 003,standing in the names of Shri Vijay Kumar Gupta,Shri Vijay Kumar Gupta (HUF), Shri Susheel Kumar Gupta and Smt.Shashikala Gupta.

(d) Pledge of entire shares held by Promoters i.e Shri Vijay Kumar Gupta, Shri Susheel Kumar Gupta, Smt Shashikala Gupta.

(e) Personal Guarantees of Shri. Vijay Kumar Gupta,Vijay Kumar Gupta HUF, Shri. Susheel Kumar Gupta and Mrs. Shashikala Gupta. Guarantee limited to the value of the security mortgaged.

a) Section 205 of Companies Act,l956 mandates that Companies transfer dividend that has been unclaimed for a period of seven years from unpaid dividend account to the Investor Education and Protection Fund (IEPF). Accordingly, if dividend is unclaimed for a period of seven years, it will be transferred to IEPF

b) Term deposits are held as margins for issue of Bank Guarantees.

22. Contingent Liability and Commitments(to the extent not provided for)

(a) Contingent Liability not provided for in respect of clams against the Company not acknowledge as debts:

(i) Counter Guarantee given to Bankers towards the Bank Guarantee Rs. 63,10,000/- Lakhs. (Previous year Rs. 62,80,000/- Lakhs).

(b) Commitments

Estimated amount of liability on account of Capital Commitments of Rs. 15,00,000. (Previous year Rs. 78,61,510/- Lakhs).

23. Capital Work in Progress is Rs. Nil.(Previous year Rs. 68,81,227 Lakhs).

24. Preference Shareholder vide letter dated 04thMay 2016 has given consent to forego the accumulated dividend of Rs. 20 Crores payable by the Company up to the year ended 31st March 2016. For payment of dividend for the subsequent years, management is in discussion with the Preference shareholder for revised terms& conditions.

25. Employee Benefits:

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee Benefits in the Accounting Standard are given below:

Defined Contribution Plan: Refer Note No. 22

Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. Reconciliation of opening and closing balances of Defined benefit obligation as below:

26. Borrowing cost capitalized during the year on various assets is Rs. Nil. (Previous year Nil).

27. The Company''s operations mainly consist of only one segment-Textile Fabrics and therefore the figures as above relate to that segment.

28. During the year Company has paid arrears of Rs. 18,00,000/- towards Managerial Remuneration to Shri Vijay Kumar Gupta, Managing Director as per the Central Government approval dated: 03.11.2015.

29. Pursuant to Accounting Standard (AS - 19) - Leases

Assets taken on Operating Lease

(a) The Company''s Lease Agreement is in respect of Building at Ameerpet, Kukatpally, Dilsukhnagar, and A.S. Rao Nagar show rooms. The Leasing arrangement is for a longer period and renewable by mutual consent on mutually agreeable terms.

(b) Lease rentals payable are charged as "Lease Rental charges" under "Other Expenses" in Note-23.

(c) Future minimum lease rentals payable as per the lease agreements :

30. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that might have been impaired in respect of each cash-generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March 2016.

31. The Company has not provided for cess u/s 441A of The Companies Act, 1956, as the Central Government has not specified the rules and manner of depositing the same.

32. Previous year''s figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.


Mar 31, 2015

1. Contingent Liability and Commitments (to the extent not provided for)

a) Contingent Liability not provided for in respect of claims against the Company not acknowledge as debts:

Counter Guarantee given to Bankers towards the Bank Guarantee Rs. 62.80 Lakhs. (Previous year Rs. 62.80 Lakhs).

Export Obligation of Rs. 9,39,30,216/- over a period of 8 years ending on 07.04.2016 for concessional duty availed for import of machinery.

Export Obligation of Rs. 5,87,13,076/- over a period of 6 years ending on 09.08.2016 for concessional duty availed for import of machinery.

Export Obligation of Rs. 11,36,33,520/-over a period of 8 years ending on 28.11.2019 for concessional duty availed for import of machinery.

b) Estimated amount of liability on account of Capital Commitments of Rs. 78.62 Lakhs. (Previous year Rs. 80.89 Lakhs).

2. In the opinion of the management current assets, loans & advances and other assets have the value at which they are stated in the Balance Sheet and are realizable in the ordinary course of business.

3. Capital Work in Progress is Rs. 0.69 Crores. (Previous year Rs. 3.94 Crores).

4. The Company has not provided for the preference dividend of 10% amounting to Rs. 5.00 Crores due to inadequacy of profit.

5. Vehicle loan is secured by way of hypothecation of specific vehicle financed

6. Loans and advances include advances for Capital Assets Rs. 13.00 Lakhs (Previous Year Rs. 28.29 Lakhs).

7. Employee Benefits:

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee Benefits in the Accounting Standard are given below:

8. Borrowing cost capitalized during the year on various assets is Rs. Nil. (Previous year Nil).

9. The Company's operations mainly consist of only one segment-Textile Fabrics and therefore the figures as above relate to that segment.

10. The Company's Lease Agreement is in respect of Building at Ameerpet, Kukatpally, Dilsukhnagar and A.S. Rao Nagar show rooms. Lease rentals payable are charged as "Lease Rental charges" under "Other Expenses" in Note-24.The Leasing arrangement is for a longer period and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under:

11. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that might have been impaired in respect of each cash-generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March 2015.

12. The Company has not provided for cess u/s 441A of The Companies Act1956, as the Central Government has not specified the rules and manner of depositing the same.

13. Previous year's figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.


Mar 31, 2014

A) The Non-Convertible Cumulative Redeemable Preference Shares (NCPS) of Rs. 100/- each allotted to Shri Vijay Kumar Gupta, Promoter of the Company shall be entitled to Cumulative Preference Dividend at 10% per annum of the NCPS Subscription Price. The Dividend shall accrue at the end of each financial year with effect from 1st April,2012. The said shares are redeemable on the completion of a period of 20 years ("Redemption Period") from the date of issue i.e 24th March,2012.

B) Equity Shareholders holding more than 5% of Equity Shares along with the number of shares held is as given below:

A Term Loans from banks namely State Bank of India, Axis Bank Limited and State Bank of Hyderabad are secured as under:

1. First charge on fixed assets of the Company on Pari-Passu basis. Fixed Assets of the Company include the following immovable/movable properties.

a) Equitable mortgage of property of the Company located at Surya Towers, Sub-ground floor, 104, Sardar Patel Road, Secunderabad-500 003.

b) Equitable Mortgage of property of the Company comprising of land and building situated at Kattedan, Hyderabad.

c) Equitable Mortgage of property of Company comprising of factory land and building situated at Rajapoor Village, Bala Nagar Mandal, Mahaboob Nagar District.

d) Equitable mortgage of property located at Surya Towers, Ground Floor, 104 Sardar Patel Road, Secunderabad 500 003, belonging to the promoters namely Shri Vijay Kumar Gupta, Vijay Kumar Gupta HUF, Shri Susheel Kumar Gupta and Mrs. Shashikala Gupta.

e) Plant and Machinery present and future.

f) Other Fixed Assets.

2. Pledge of 15,00,000 Shares of promoters on Pari-Passu basis.

Further the Term Loans are collaterally secured by:

3. Extension of pledge of 34,45,999 shares of the Company held by promoters pledged to Axis Bank Limited in favour of State Bank of India.

4. Pari-Passu second charge on current assets of the Company with State Bank of India, Axis Bank Limited and State Bank of Hyderabad.

5. Personal guarantees of the promoters'' viz. Shri Vijay Kumar Gupta, Vijay Kumar Gupta HUF, Shri Susheel Kumar Gupta, and Mrs. Shashikala Gupta.

6. Term Loan with State Bank of Hyderabad against Credit Card receivables is secured by: Hypothecation and Escrow of credit card receivables.

7. Term loan is further collaterally secured by Pari-Passu first charge with State Bank of India and Axis Bank Limited on present and future assets of the Company.

8. Personal guarantees of the promoters namely Shri Vijay Kumar Gupta and Shri Susheel Kumar Gupta.

Terms of Repayment:

1. Axis Bank Term Loan repayable in 24 quarterly instalments of Rs. 57.00 Lakhs each and the last 4 quarterly instalments of Rs. 58.00 Lakhs each ending on 31st March, 2015, carrying an interest of 16% per annum.

2. State Bank of Hyderabad - Term Loan I repayable in 60 equal monthly instalments of Rs. 13.33 Lakhs ending on 31st March, 2015, carrying an interest of 13.20 % per annum.

3. State Bank of Hyderabad - Term Loan II repayable in 60 equal monthly instalments of Rs. 67.00 Lakhs commencing from 30th April, 2013 and ending on 31st March, 2018, carrying an interest of 13.20 % per annum.

4. State Bank of Hyderabad - Term Loan III repayable in 108 equal monthly instalments of Rs. 7.36 Lakhs with a door to door tenor of 9 years 2 months ending on July, 2020, carrying an interest of 13.20 % per annum.

5. State Bank of Hyderabad - Term Loan IV repayable in 108 equal monthly instalments of Rs. 8.06 Lakhs commencing from November, 2012 and ending on May, 2021, carrying an interest of 13.20 % per annum.

6. State Bank of India - Term Loan I repayable in 31 quarterly instalments of Rs. 28.91 Lakhs each and the last instalment being Rs. 28.87 Lakhs ending on 30th September, 2015, carrying an interest of 14.75 % per annum.

7. State Bank of India - Term Loan II repayable in 32 quarterly instalments of Rs. 10.16 Lakhs each ending on 30th September, 2015, carrying an interest of 14.75 % per annum.

8. State Bank of India -Term Loan IV repayable in 32 quarterly instalments of Rs. 12.50 Lakhs each ending on June, 2017 carrying an interest of 14.75 % per annum.

9. State Bank of India - Term Loan V repayable in 39 quarterly instalments of Rs. 3.00 Lakhs each ending on June, 2020 carrying an interest of 14.75 % per annum.

B) Vehicle Loans is secured by way of hypothecation of specific vehicle financed.

Terms of Repayment:

1. Loan taken from HDFC Bank Ltd., under Loan Account No.20325311 is repayable in monthly instalment of Rs. 3.23 Lakhs each inclusive of interest ending on 5th January, 2015.

2. Loan taken from HDFC Bank Ltd., under Loan Account No.21481962 is repayable in monthly instalment of Rs. 1.30 Lakhs each inclusive of interest ending on 5th June, 2015.

3. Loan taken from HDFC Bank Ltd., under Loan Account No.22824580 is repayable in monthly instalment of Rs. 0.88 Lakhs each inclusive of interest ending on 7th November, 2015.

4. Loan taken from HDFC Bank Ltd., under Loan Account No.27578920 is repayable in monthly instalment of Rs. 2.29 Lakhs each inclusive of interest ending on 7th March, 2017.

5. Loan taken from HDFC Bank Ltd., under Loan Account No. 27580816 is repayable in monthly instalment of Rs. 0.75 Lakhs each inclusive of interest ending on 7th March, 2017.

C) Unsecured Loans are from Shri Vijay Kumar Gupta, Chairman and Managing Director and Shri Susheel Kumar Gupta, Executive Director of the Company repayable over a period of 8 years ending on 15th April, 2022.

1) Working Capital facilities availed by the Company from State Bank of India, Axis Bank Limited and State Bank of Hyderabad are secured by:.

a) Pari-Passu charge on all chargeable current assets of the Company in favour of State Bank of India, Axis Bank Limited and State Bank of Hyderabad (excluding credit card receivables, which are charged to State Bank of Hyderabad alone and are separately dealt with herein).

b) Pari-Passu second charges on Fixed Assets of the Company.

Further the Working Capital facilities are collaterally secured by:

c) Pari-Passu charge on commercial building situated at Ground Floor, Surya Towers, 104, Sardar Patel Road, Secunderabad-500003 belonging to Shri Vijay Kumar Gupta, Shri Vijay Kumar Gupta HUF, Shri Susheel Kumar Gupta and Mrs. Shashikala Gupta by way of equitable mortgage in favour of State Bank of India, Axis Bank Limited and State Bank of Hyderabad.

d) Pari-Passu second charge on 15,00,000 Shares of the Company belonging to Promoters which have been pledged with State Bank of India for working capital limits of State Bank of India, Axis Bank Limited and State Bank of Hyderabad.

e) Pari-Passu charge on 34,45,999 Shares of the Company belonging to Promoters'' which have been pledged with Axis Bank Limited, for working capital limits of State Bank of India and Axis Bank Limited.

f) Personal Guarantees of Shri Vijay Kumar Gupta, Vijay Kumar Gupta HUF, Shri Susheel Kumar Gupta and Mrs. Shashikala Gupta.

a) Section 124 of Companies Act, 2013 mandates that Companies transfer dividend that has been unclaimed for a period of seven years from unpaid dividend account to the Investor Education and Protection Fund (IEPF). Accordingly, if dividend is unclaimed for a period of seven years, it will be transferred to IEPF.

b) Term deposits are held as margins for issue of Bank Guarantees.

NOTE: 2

1. Contingent Liability and Commitments (to the extent not provided for)

a) Contingent Liability not provided for in respect of claims against the Company not acknowledge as

debts:

- Counter Guarantee given to Bankers towards the Bank Guarantee Rs. 62.80 Lakhs. (Previous year Rs. 62.80 Lakhs).

- Export Obligation of Rs. 9,39,30,216/- over a period of 8 years ending on 07.04.2016 for concessional duty availed for import of machinery.(Previous Year: Rs. 2,28,935/-).

- Export Obligation of Rs. 5,87,13,076/- over a period of 6 years ending on 09.08.2016 for concessional duty availed for import of machinery.

- Export Obligation of Rs. 11,36,33,520/-over a period of 8 years ending on 28.11.2019 for concessional duty availed for import of machinery.

- Income Tax demand of Rs. 32.69 Lakhs for the assessment year 2009-10 (Previous Year Rs. 32.69) for which the Company has filed an appeal before the competent Income Tax Authority and is listed for hearing on 06 August 2014 and in meanwhile the company has paid an amount of Rs. 16.34 Lakhs in two installments on 28.02.13 and 15.03.2013 as per the orders of CIT Range-3.

- Income Tax demand of Rs. 149.34 Lakhs for the assessment year 2010-11 (Previous Year Rs. 149.34 Lakhs) for which the Company has filed an appeal before the competent Income Tax Authority. The appeal was heard on 07 January 2014 and order is still awaited. In the meanwhile has paid an amount of Rs. 44.80 Lakhs till 15.10.2013 in compliance of orders of CIT Range-3.

- Income Tax demand of Rs. 2.70 Lakhs for the assessment year 2011-2012 (Previous Year - NIL) for which the Company has filed an appeal before the competent Income Tax authority and the same is pending for disposal.

- Shubham Creations, Bhiwandi Thane District had filed an arbitration case against the Company before the Hindustan Chamber of Commerce (HCC), Mumbai. HCC had directed the Company to pay a sum of Rs. 6,51,438/- inclusive of interest. The Company has preferred an appeal before Bombay High Court.

b) Estimated amount of liability on account of Capital Commitments of Rs. 80.89 Lakhs. (Previous year RS 100.64 Lakhs).

2. In the opinion of the management current assets, loans & advances and other assets have the value at which they are stated in the Balance Sheet and are realizable in the ordinary course of business.

3. Capital Work-in-Progress is Rs. 3.94 Crores. (Previous year Rs. 1.33 Crores).

4. The Company has not provided for the preference dividend of 10% amounting to Rs. 5.00 Crores due to inadequacy of profit.

5. Vehicle loan is secured by way of hypothecation of specific vehicle financed

6. Loans and advances include advances for Capital Assets Rs. 28.29 Lakhs (Previous Year Rs. 15.40 Lakhs).

8. Employee Benefits:

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee Benefits in the Accounting Standard are given below:

Defined Benefit Plan:

The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. Reconciliation of opening and closing balances of Defined benefit obligation as below:

9. Borrowing cost capitalized during the year on various assets is Rs. Nil. (Previous year Rs. 1,13,18,981/-).

10. The Company''s operations mainly consist of only one segment-Textile Fabrics and therefore the figures as above relate to that segment.

* The above figures are given without discounting at present value.

13. In terms of Accounting Standard 22, Deferred Tax Assets (DTA) of Rs. 1,62,00,448/- and Deferred Tax Liability of Rs. 21,96,173/- has been recognized during the period and consequently Deferred Tax Liability as on 31st March 2014 stands at Rs. 9,88,35,206/-.There is carried forward unabsorbed depreciation as at the Balance Sheet date. However, based on the future profitability projections, the company is virtually certain that there would be sufficient taxable income in future, to claim the above tax credit.

14. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that might have been impaired in respect of each cash-generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March 2014.

15. The Company has not provided for cess u/s 441A of The Companies Act1956, as the Central Government has not specified the rules and manner of depositing the same.

16. Previous year''s figures have been re-grouped and re-arranged wherever necessary so as to make them comparable with the current year.


Mar 31, 2013

1. Contingent Liability and Commitments (to the extent not provided for)

a) Contingent Liability not provided for in respect of claims against the Company not acknowledge as debts:

- Counter Guarantee given to Bankers towards the Bank Guarantee Rs. 62.80 Lakhs. (Previous year Rs. 62.80 Lakhs).

- Export Obligation of Rs. 9,39,30,216/- (US$ 23,36,573) over a period of 8 years ending on 07.04.2016 for concessional duty availed for import of machinery out of which export made during the year Rs. 2,28,935/- (Previous Year: Rs. 14,18,262/-).

- Export Obligation of Rs. 5,87,13,076.08/- (US $ 12,50,544.75) over a period of 6 years ending on 09.08.2016 for concessional duty availed for import of machinery.

- Export Obligation of Rs. 11,36,33,520/- (US$ 22,70,400) over a period of 8 years ending on 28.11.2019 for concessional duty availed for import of machinery.

- Income Tax demand of Rs. 32.69 Lakhs for the assessment year 2009-10 (Previous Year - Rs. 32.69) for which the Company has filed appeal before the competent Income Tax Authority and in meanwhile has paid an amount of Rs. 16.34 Lakhs in two installments on 28.02.13 and 15.03.2013 as per the orders of CIT Range-3.

- Income Tax demand of Rs. 149.34 Lakhs for the assessment year 2010-11 (Previous Year - NIL) for which the Company has filed appeal before the competent Income Tax Authority and in the meanwhile has paid an amount of Rs. 20.00 Lakhs till 15.05.2013 in compliance of orders of CIT Range-3.

- Shubham Creations, Bhiwandi Thane District had filed an arbitration case against the company before the Hindustan Chamber of Commerce (HCC), Mumbai. HCC had directed the Company to pay a sum of Rs. 6,51,438/- inclusive of interest. The Company has preferred an appeal before Bombay High Court.

b) Estimated amount of liability on account of Capital Commitments of Rs. 100.64 Lakhs. (Previous year Rs. 2624.07 Lakhs includes Rs. 2603.45 Lakhs towards Software Park).

2. In the opinion of the management current assets, loans & advances and other assets have the value at which they are stated in the Balance Sheet and are realizable in the ordinary course of business.

3. Capital Work in Progress is Rs. 1.33 Crores. (Previous year Embroidery Unit Phase-III Rs. 11.94 Crores and Rs. 81.33 Crores towards Software Park).

4. During the year the Company entered into a deed of cancellation with the developer on 7th February, 2013 for withdrawing from the Multistoried IT Park (Tech-Park Project).

5. The Company has not provided for the preference dividend of 10% amounting to Rs. 5.00 Crores due to inadequacy of profit.

6. Loans and advances include advances for Capital Assets 15.40 Lakhs (Previous Year Rs. 6.00 Lakhs).

7. Borrowing cost capitalized during the year on various assets is Rs. 1,13,18,981/- (Previous year Rs. 5,80,45,582/-).

8. The Company''s operations mainly consist of only one segment - Textile Fabrics and therefore the figures as above relate to that segment.

9. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that might have been impaired in respect of each cash-generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March 2013.

10. The Company has not provided for cess u/s 441A of The Companies Act1956, as the Central Government has not specified the rules and manner of depositing the same.

11. Previous year''s figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.


Mar 31, 2012

1. Contingent Liability and commitments (to the extent not provided for)

a) Contingent Liability not provided for in respect of claims against the Company not acknowledge as debts:

- Counter Guarantee given to Bankers towards Bank Guarantee Rs 62.80 Lakhs (Previous year Rs 33.80 Lakhs).

- Export Obligation is Rs 9,39,30,216/- ( US $ 23,36,573) over a period of 8 years ending on 07.04.2016 for concessional duty availed for import of machinery out of export made during the year Rs14,18,262.00.(Previous Year : Nil)

- Export Obligation is Rs 5,87,13,076.08/-( US $ 12,50,544.75) over a period of 6 years ending on 09.08.2016 for concessional duty availed for import of machinery

- Export Obligation is Rs 11,36,33,520/-( US $ 22,70,400) over a period of 6 years ending on 28.11.2019 for concessional duty availed for import of machinery

- Income Tax Assessment year 2007-08 Rs 9.01 Lakhs (Previous Year Rs 279.88 Lakhs for Assessment Year 2007-08) for which Company had represented for necessary amendment in the Assessment Order with the concerned authorities.

- Income Tax Assessment year 2009-10 Rs 32.69 Lakhs (Previous Year - Nil) for which the Company had filed appeal before the concerned authorities.

b) Estimated amount of liability on account of Capital Commitments Rs 2624.07 Lakhs includes Rs 2603.45 Lakhs towards Software Park. (Previous year Rs 3830.90 Lakhs includes Rs 3787.50 Lakhs towards Software Park).

2. In the opinion of the management current assets, loans & advances and other assets have the value at which they are stated in the Balance Sheet and are realizable in the ordinary course of business.

3. Money received against share warrants represents 25% of the application money received for 5,00,000 share warrants at a determined price of Rs 40/- per warrant. The said share warrants be converted in to Equity Shares with a face value of Rs 10/-each as per the applicable provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations,2009 or such other regulations as may be applicable.

4. Capital Work in Progress of Rs 94.16 Crores includes Embroidery Unit Phase-III Rs 11.94 Crores, Software Park Rs 81.33 Crores (Previous year Embroidery Unit Phase -III Rs 1.78 Crores and Rs 75.52 Crores towards Software Park).

5. Loans and advances include advances for Capital Assets Rs 6.00 Lakhs (Previous Year Rs Nil).

6. Employee Benefits:

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee Benefits in the Accounting Standard are given below:

7. Borrowing cost capitalized during the year on various assets Rs 5,80,45,582/- (Previous year Rs 24,83,815/-).

8. The Company's operations mainly consist of only one segment - Textile Fabrics and therefore the figure above relate to that segment.

9. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2012.

10. The Company has not provided for cess u/s 441A of the Companies Act, 1956 as the Central Government has not specified the rules and manner of depositing the same.

11. The previous year's figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.


Mar 31, 2011

1. Contingent Liability not provided for in respect of claims against the Company not acknowledge as debts:

– Counter Guarantee given to Bankers towards Bank Guarantee Rs 33.80 Lakhs (Previous year Rs 19.05 Lakhs).

– Estimated amount of liability on account of Capital Commitments Rs 3830.90 Lakhs includes Rs 3787.50 Lakhs towards Software Park. (Previous year Rs 3893.42 Lakhs includes Rs 3787.50 Lakhs towards Software Park).

– Export Obligation is Rs 9,39,30,216/- ( US $ 23,36,573) over a period of 8 years ending on 07.04.2016 for concessional duty availed for import of machinery.

– Export Obligation is Rs 97,85,513/- ( US $12,50,544.75) over a period of 6 years ending on 09.08.2016 for concessional duty availed for import of machinery.

– Income Tax Assessment year 2007-08 Rs 279.88 Lakhs (Previous Year Rs 287.17 Lakhs for Assessment Year 2006-07 and 2007-08) for which Company had filed appeal before the concerned authorities.

2. In the opinion of the management current assets, loans & advances and other assets have the value at which they are stated in the Balance Sheet and are realizable in the ordinary course of business.

3. The Company has raised funds by issue of Convertible Share Warrants on preferential basis and allotted 50,00,000 Warrants to Promoters at the meeting of the Board of Directors held on 08.10.2010. These Share Warrants are priced at Rs 4/- per instrument. Promoters paid 25% of the value of warrants and the balance will be paid upon conversion in to Equity Shares of Rs 1/- each within a period of 18 months from the date of allotment of warrant.

4. Disclosure in accordance with part I of Schedule VI of Companies Act, 1956 in respect of Micro, Small and Medium Enterprises :

Sl.No. Particulars As at As at

March31, 20011 March31, 2010

1 Principal amount remaining overdue Nil Nil

2 Interest thereon Nil Nil

3 Interest paid by the Company in terms

of Section 16 of MSMED Act, 2006. Nil Nil

This information as required to be disclosed has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Working Capital facilities availed by the Company from State Bank of India & AXIS Bank Limited under consortium arrangement are secured by Pari-Passu first charge on Current Assets of the Company, Pari-Passu Second charge on entire block of assets of the Company and further guaranteed by two Directors of the Company and their family members.

6. Term Loan facility availed by the Company from State Bank of India, AXIS Bank Limited is secured by first charge, by way of Equitable Mortgage of property of the Company and entire block of Fixed Assets of the company present and future and further guaranteed by two Directors of the company and their family members.

7. Term Loan facility availed by the Company from Central Bank of India is secured by first charge, by way of Equitable Mortgage of property of the Company and entire block of Fixed Assets of the company present and future, hypothecation of credit card receivables, Pari-Passu charge on entire current assets.

8. Vehicle loan is secured by way of hypothecation of specific vehicle financed.

9. Capital work in progress includes Rs 75.52 Crores (Previous year Rs 75.52 Crores) towards Software Park.

10. Loans and advances include advances for Capital Assets - Nil. (Previous Year Rs 12.00 Lakhs).

11. The Company received Capital Subsidy of Rs 119.98 Lakhs (Previous year Nil).

Defined Benefit Plan :

The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. Reconciliation of opening and closing balances of Defined benefit obligation as below:

12. Borrowing cost capitalized during the year on various assets Rs 24,83,815/- (Previous year Rs 93,56,815/-).

13. The Company's operations mainly consists of only one segment - Textile Fabrics and therefore the figure above relate to that segment.

14. The Company's Lease Agreement is in respect of Building at Ameerpet, Kukatpally, Dilsukhnagar, and A.S. Rao Nagar show rooms. The lease rentals payable are charged as "Lease Rental charges" under "Other Expenses " in Schedule -19.This Leasing arrangement are for longer period and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under : :

15. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2011.

16. The Company has not provided for cess u/s 441A of the Companies Act, 1956 as the Central Government has not specified the rules and manner of depositing the same.

17. The previous year's figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.


Mar 31, 2010

1. Contingent Liability not provided for in respect of claims against the Company not acknowledge as debts:

- Counter Guarantee given to Bankers towards Bank Guarantee 19.05 Lakhs (Previous year Rs.19.05Lakhs).

- Estimated amount of liability on account of Capital Commitments Rs.3893.42 Lakhs includes Rs.3787.50 Lakhs toward Software Park. (Previous year Rs5975.02 Lakhs includes Rs.5749.25 Lakhs towards Software Park).

- Export Obligation is Rs. 9, 39,30,216/- ( US $ 23,36,573) over a period of 8 years for concessional duty availed for import of machinery

- Income Tax Assessment year 2006-07 and 2007-08 Rs.287.17 Lakhs (Previous Year Rs.26.11 Lakhs) for which Company had filed appeal before the concerned authorities.

2. In the opinion of the management current assets, loans & advances and other assets have the value at which they are stated in the Balance Sheet and are realizable in the ordinary course of business.

3. Disclosure in accordance with part I of Schedule VI of Companies Act, 1956 in respect of Micro, Small and Medium Enterprises :

This information as required to be disclosed has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Working Capital facilities availed by the Company from State Bank of India & AXIS Bank Limited under consortium arrangement are secured by Pari-Passu first charge on Current Assets of the Company, Pari-Passu Second charge on entire block of assets of the Company and further guaranteed by two Directors of the Company and their family members.

5. Term Loan facility availed by the Company from State Bank of India, AXIS Bank Limited is secured by first charge, by way of Equitable Mortgage of property of the Company and entire block of Fixed Assets of the company present and future and further guaranteed by two Directors of the company and their family members.

6. Term Loan facility availed by the Company from Central Bank of India is secured by first charge, by way of Equitable Mortgage of property of the Company and entire block of Fixed Assets of the company present and future, hypothecation of credit card receivables, Pari-Passu charge on entire current assets.

7. Vehicle loan is secured by way of hypothecation of specific vehicle financed.

8. Capital work in progress includes Rs.75.52 Crores (Previous year Rs.68.83 Crores) towards Software Park.

9. Loans and advances include advances for Capital Assets Rs.12.00 Lakhs. (Previous Year Rs.89.47 Lakhs).

10. Employee Benefits:

Employers contribution to Provident/Pension Fund Rs.11.58 Lakhs (Previous year Rs.8.58 Lakhs). The Company contributes applicable rates of salary of all eligible employees towards provident fund managed by the Central Government.

11. Borrowing cost capitalized during the year on various assets Rs.93,56,815/- (Previous year Rs 10,87,817/-).

12. The Companys operations mainly consists of only one segment - Polyester and Wider width Fabrics (manufacturing and trading) and therefore the figure above relate to that segment.

13. Related Parties Disclosures:

14. The Companys Lease Agreement is in respect of Building at Ameerpet, Kukatpally, Dilsukhnagar, and A.S. Rao Nagar show rooms. The lease rentals payable are charged as "Lease Rental charges" under "Other Expenses " in Schedule -19.This Leasing arrangement are for the period exceeds 5 years and renewable by mutual consent on mutually agreeable terms. Future lease rental payable are as under

15. In accordance with the Accounting Standard (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2010.

16. The Company has not provided for cess u/s 441A of the Companies Act, 1956 as the Central Government has not specified the rules and manner of depositing the same.

17. The previous years figures have been regrouped and rearranged wherever necessary so as to make them comparable with the current year.

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