Home  »  Company  »  Vijay Textiles L  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Vijay Textiles Ltd.

Mar 31, 2023

PROVISIONS AND CONTINGENCIES

A provision is recognized when the Company has a present obligation as a result of past events, and it is probable that
an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the
best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date
and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are
not recognized in the financial statements.

Contingent Assets are neither recognized nor disclosed in the financial statements.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company
or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

1.15. FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales
of financial assets that require delivery of assets within a time frame established by regulation or convention in the
marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase
or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

(i) Debt instruments at amortized cost.

(ii) Debt instruments at fair value through other comprehensive income (FVTOCI)

(iii) Debt instruments, derivatives, and equity instruments at fair value through profit or loss (FVTPL).

(iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI).

Debt instruments at amortized cost

A ‘debt instrument'' is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model, whose objective is to hold assets for Collecting contractual cash flows,
And

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently
measured at amortized cost using the effective interest rate (EIR) method.

Equity investments

All equity investments in scope of Ind AS-109 are measured at fair value. Equity instruments which are held for trading
and contingent consideration recognized by an acquirer in a business combination to which Ind AS-103 applies are
classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument
by- instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within equity.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognized (i.e. removed from the Group''s consolidated balance sheet) when:

(i) The rights to receive cash flows from the asset have expired, or

(ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through'' arrangement; and
either

(a) The Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has
transferred control of the asset.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when
the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in
the statement of profit or loss.

Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of the asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial
statements is determined on such basis, except for measurements that have some similarities to fair value but are not
fair value, such as net realizable value in Ind AS.


Mar 31, 2018

NOTE 1:NOTES TO ACCOUNTS

1.I. 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:

(i). Counter Guarantee given to Bankers towards the Bank Guarantee Rs.63,I0,000/- Lakhs. (Previous year Rs. 63,I0,000/- Lakhs).

(b) Labour Court Award

Labour Court III, Hyderabad had passed an award vide G.O. Rt. No. 223 dated 23 March 20I7 in I.D. No. I7 of 20I0, in favor of Balaji Vishnu Patil ex-employee working under Job Worker at the Company’s Rajapur Unit and directed the Company to pay an amount of Rs.2,50,000/- towards retrenchment compensation in lieu of the reinstatement to Balaji Vishnu Patil. The Company has preferred an appeal before AP & Telangana High Court, Hyderabad bearing reference no. WPMP No. 3I873 of 20I7 in WP No. 25695 of 20I7 against the said award. High Court has granted interim stay vide its order dated 02 August 20I7 on the condition the Company depositing one third of the awarded amount and the Company has complied with the condition.

(c) Commitments

Estimated amount of liability on account of Capital Commitments of '' Nil. (Previous year '' Nil).

2.1. Capital Work in Progress is '' Nil (Previous year Nil).

2.2. 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:

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

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

2.5. Fair Value Hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level I: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: Inputs for the assets or liability that are not based on observable market data (unobservable inputs).

2.6. Related Parties Disclosures:

Information of Related Party Transactions as required by AS I8 on “Related Party Disclosures” for the year ended 3Ist March, 20I8:

A. List of Related Parties

(I) Directors and their Relatives

Shri Vijay Kumar Gupta

Shri Susheel Kumar Gupta

Smt. Shashikala Gupta

Shri Rakesh Malhotra

(II) Key Managerial Person

Shri S. Nagarajan, Company Secretary

(III) Director’s Interest

Vijay Racing Farms Private Limited Vijay Infotech Ventures

2.7. 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-29.

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

2.8. The Company has not provided for cess u/s 44IA of The Companies Act, 1956, as the Central Government has not specified the rules and manner of depositing the same.

2.9. 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 3 1st March 20I8.

2.10. Letters have been written for confirmation of debit and credit balances pertaining to debtors and creditors and reply from the parties is awaited.

2.11. First time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, are the first set of financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 20I4 (“Indian GAAP” or “Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 3I, 20I8, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April, I 20I6, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 3I, 20I7.

Exemptions applies

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

(a) The Company has elected to regard carrying values for all of property, plant and equipment as deemed cost at the date of the transition.

Estimates

The estimates as at April 0I,20I6 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from impairment of financial assets bases on expected credit loss model where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016 (transition date), March 31, 2017 and March 31, 2018.

Reconciliation between Previous IGAAP and Ind AS

Ind AS I0I, First time adoption of Indian Accounting Standards, requires an entity to reconcile equity, total comprehensive income and cash flow for prior period. The following tables represent the reconciliations from previous GAAP to Ind AS

* The Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.

Explanations for reconciliation of balance sheet previously reported under IGAAP to IND AS

A. Preference Share -

The Company has 52,76,000 Non-Convertible Cumulative Redeemable Preference Shares having a par value of Rs. I00/- each per share (Previous Year : Rs. I00/- each). On the date of transition Ist April,20I6, as per IND AS 109 “Financial Instrument” such class of Preference shares are to be re-classified as financial liability and recognized at Amortized cost by Effective rate of interest (on the basis of weighted average cost of capital as on transition date) by considering estimated future cash outflows.

B. Employee Benefit Expense

Under the Previous GAAP these re-measurements were forming part of the profit or loss for the year. Under Ind AS, re-measurements i.e. actuarial gains and losses, are recognised in other comprehensive income instead of the statement of profit and loss.

C. Transaction Cost

Transaction costs in respect of bank loans are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method, as compared to charging to profit and loss in the initial year of loan when expense is incurred.

D. Tax

Tax component on items classified through OCI are shown separately in OCI

Cash Flow Statements

There were no significant reconciliation items between cash flows prepared under IGAAP and those prepared under IND AS

2.12.Disclosure on Specified Bank Notes:

During the year, the Company had Specified Bank Notes (SBN’) or other denomination notes as defined in the MCA notification, G.S.R.308E, dated 31st March, 20I7. The details of SBNs held and transacted during the period from 8th November, 20I6 to 30th December, 20I6, the denomination-wise SBNs and other notes as per the notification are as follows:

2.13. 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, 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.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X