Home  »  Company  »  VIP Clothing  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of VIP Clothing Ltd.

Mar 31, 2015

1. CORPORATE INFORMATION

Maxwell Industries Limited ('Company') was incorporated on 14th January, 1991. The Company's Identification No. is L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing and Distribution of Men's, Women's inner wears and Socks under brand name VIP, Frenchie and Feelings. The Company's Equity Shares are listed on BSE Limited (BSE) and National Stock Exchange Limited (NSE).

1.1 Rights, Preference and Restriction attached to Shares.

The Company has two class of shares, one is Equity shares having face value of Rs. 2/- each per share and another is 5% Redeemable Preference shares of Rs.100/- each. Each holder of equity share is entitled to one vote per share. The Preference shares does not carry voting rights but entitled to get the dividend. The dividend, if any, proposed by the Board of Directors is subject to the approval of the equity shareholder in their ensuing general meeting. In the event of liquidation of the Company, the holder of equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts (including redeemable Preference Shares). The distribution will be in proportion to the number of equity shares held by the shareholder.

1.2 Company had issued and allotted 30,00,000 convertible warrants at price of Rs. 38 per warrant determined under regulation of SEBI (ICDR) Regulation, 2009 to person belongs to Promoter Group. The warrants will be converted into Equity shares within a period of 18 months from the date of issue and allotment.

1.3 The Company does not have any holding company or subsidiary company, Hence disclosure of shares held by holding Company and subsidiary company does not arise.

Notes:

(I) Working Capital Loan secured by way of Hypothecation of Inventories, Book Debts & Movable Fixed Assets of the Company and further secured by way of First charge of Property situated at GIDC-Umergaon (Gujarat), Kachigam (Daman), SIPCOT-Perundurai (Tamil Nadu), Edyaarpalayam (Tamil Nadu) and Thingalur (Tamil Nadu).

(ii) The unsecured loan received from the Promoter of the Company.

# The figures reflect the position as at year end. The actual amount to be transferred to the Investor Education and Protection Fund in this respect shall be determined on the due date. *

* Including Statutory dues, Contributions to PF and ESIC, VAT, TDS, Service Tax, Professional Tax etc.

2. Employee benefit plans

Defined contribution plans

The Company makes Provident Fund and Employee pension scheme to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 175.67 Lakhs (Year ended 31 March, 2014 Rs. 118.90 Lakhs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Other defined benefit plans (Leave Encashment)

3. Related party transactions

a. Details of related parties:

Associates

Maxwell Ventures Private Limited Maxwell Capital Management Private Limited Maxwell Entertainment Private Limited Maxwell Retails Private Limited Maxwell Health & Hygiene Private Limited Shogun Chemicals Private Limited HYBO Hindustan PAKO Hindustan *

Pats Treasures *

Unnati Ventures Kanishk Capital Partners K. 3 Realtors Global Construction Pathare Agro Farms

Note: Related parties have been identified by the Management. * Transactions with Related Parties.

4. Contingent Liabilities and Contingent Assets

The Company recongnizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Particulars Year ended Year ended 31 March, 2015 31 March, 2014 (Rs. in Lakhs) (Rs. in Lakhs)

Guarantees given by Bank 21.10 23.35

Claims against the company not acknowledged as debts - -

Cotton Corporation of India 33.83 33.83

Income Tax Liability in Appeal by IT department 1,175.53 1,157.49

Letter of Credits 471.65 283.13

* Split-up of equity shares from Rs. 10/- each to Rs. 2/- each and issue of bonus shares.

** Rs. 620.60 Lakhs 5% Redeemable Preference shares of Rs. 100/- each bought back.

*** Rs. 629.45 Lakhs 5% Redeemable Preference shares of Rs. 100/- each bought back.

**** Rs. 790 Lakhs 5% Redeemable Preference shares of Rs. 100/- each redeemed.

# Excluding yarn - discontinued operation.


Mar 31, 2014

CORPORATE INFORMATION

Maxwell Industries Limited (''Company'') was incorporated on 14th January, 1991. The Company''s Identification No. is L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing and Distribution of Men''s, Women''s inner wears and Socks under brand name VIP, Frenchie and Feelings. The Company''s Equity Shares are listed on BSE Limited (BSE) and National Stock Exchange Limited (NSE).

Notes:

(i) Working Capital Loan secured by way of Hypothecation of Inventories & Book Debts of the Company and further secured by way of Equitable Mortgage of Property situated at GIDC-Umergaon (Gujarat), Kachigam (Daman), SIPCOT-Perundurai (Tamil Nadu), Edyaarpalayam (Tamil Nadu) and Thingalur (Tamil Nadu).

(ii) Buyers credit arranged by Kotak Mahindra Bank is secured against import of Machineries, finance by them.

(ii) Purchase Bill Discounting is secured by way of sub-servient charge on the inventories and Book Debts and further secured by way of Personal Guarantee of Promotor - Directors.

(iii) Unsecured Short Term Loan is guaranteed by Promotor - Directors.

1. Contingent Liabilities and Contingent Assets

The Company recongnizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but prbably will not, require an outflow of resourses. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Particulars Year ended Year ended 31 March, 2014 31 March, 2013 (Rs. in Lakhs) (Rs. in Lakhs)

Guarantees given by Bank 23.35 30.95 Claims against the company not acknowledged as debts -

Cotton Corporation of India 33.83 33.83

Income Tax Liability in Appeal by IT department 1,157.49 1,157.49

Letter of Credits 283.13 262.11


Mar 31, 2013

1 CORPORATE INFORMATION

Maxwell Industries Limited (‘Company'') was incorporated on 14th January, 1991. The Company''s Identification No. is L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing and Distribution of Men''s, Women''s inner wears and Socks under brand name VIP, Frenchie and Feelings. The Company''s Equity Shares are listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited (NSE).

2. Employee benefit plans

a Defined contribution plans

The Company makes Provident Fund and Employee pension scheme to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 132.33 Lakhs (previous year Rs. 115.62 Lakhs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

I. Gratuity

ii. Other defined benefit plans (Leave Encashment)

3. Segment information

During the year under review, Company has one primary business segment, which is Hosiery. In the previous year, the Company were having two business segments namely Hosiery and Spinning. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts, all other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments.

4. Related party transactions

a. Details of related parties:

Associates

Maxwell Ventures Private Limited

Maxwell Capital Management Private Limited

Maxwell Entertainment Private Limited

Maxwell Retails Private Limited

HYBO Hindustan

PAKO Hindustan *

Pats Treasures *

Unnati Ventures

Kanishk Capital Partners

K. 3 Realtors

Global Construction

Pathare Agro Farms

Shogun Chemicals Private Limited

Note: Related parties have been identified by the Management. * Transactions with Related Parties.

5. Remuneration to Managing Director and Whole Time Directors exceeds the maximum permissible limits prescribed in Section 198, 269 and other applicable provisions of the Companies Act, 1956. The Company is in the process of getting Central Government approval.

However, the excess remuneration paid to Managing Director and Whole time Directors is well within the limit of Schedule XIII of the Companies Act, 1956.

6. Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

(Rs. in Lakhs)

Particulars Year ended Year ended 31 March, 2013 31 March, 2012

Guarantees given by Bank 30.95 30.95

Claims against the company not acknowledged as debts -

Cotton Corporation of India 33.83 33.83

Income Tax Liability in Appeal by IT department 1,157.49 1,157.49

Letter of Credits 262.11 594.24


Mar 31, 2012

1. Corporate Information:

Maxwell Industries Limited ('Company') was incorporated on 14th January, 1991. The Company's Identification No. is L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing and distribution of Men's, Women's inner wears and Socks under brand name VIP, Frenchie and feelings. The Company's Equity Shares are listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited (NSE).

Note:

(i) 3,57,50,000 Ordinary Shares of Rs 21- each allotted as fully paid up Bonus Shares by way of Capitalization of Share Premium.

(ii) The Company has originally allotted the 5%, 24,35,000 Redeemable Preference Shares of Rs 100/-each on 1st February, 2006, redeemable after 31.01.2016 with an option to the Company to redeem it at the end of the 8th, 9th and 10th Year, in three equal installment of Rs 811.60 Lacs each i.e. redeemable on 31.01.2014, 31.01.2015 and 31.01.2016. After the buyback, installment will be reduced to Rs 394.98 Lacs each i.e. redeemable on 31.01.2014,31.01.2015 and 31.01.2016.

(iii) out of 24,35,000 Redeemable Preference Shares, the bought back 6,20,600 Preference Share during the financial year 2010-11 and 6,29,450 Preference Shares during the financial year 2011-12.

1.1 The Board of Director of the Company approved the Buyback of 6,29,450 fully paid up, 5% Redeemable Preference Shares of Rs 100/- at par including dividend due up to the date of Buyback, During the year, the Company has bought back and existinguised 6,29,450 Preference Shares of Rs 100/- each by utilising Securities Premium Account to the extent of Rs 629.45 Lacs. Capital Redemption Reserve has been created out of Securities Premium Account being the nominal value of share bought back in terms of Section 77AAof the Companies Act, 1956.

1.2 Rights, Preference and Restriction attached to Shares

The Company has two class of shares, one is Equity shares having face value of Rs 21- each per share and another is 5% Redeemable Preference shares of Rs 100/- each. Each holder of equity share is entitled to one vote per share. The Preference shares does not carry voting rights but entitled to get the dividend. The dividend, if any, proposed by the Board of Directors is subject to the approval of the equity shareholder in their ensuing general meeting. In the event of liquidation of the Company, the holder of equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts (including redeemable Preference Shares). The distribution will be in proportion to the number of equity shares held by the shareholders.

1.3 The Company does not have any holding company or subsidiary company. Hence disclosure of shares held by holding Company and subsidiary company doe not arise.

Note:

There were 2 Term Loans outstanding from Barclays Bank PLC in the previous year (current year Nil).

One Term loan from Barclay Bank PLC is secured by way of first charge on Land and Building, Plant & Machinery, Furniture & Fixtures and Electrical Equipments of Company's unit situated at Thingalur (Tamil Nadu) and re-payable in 16 equal quarterly instalments.

Second Term loan from Barclays Bank PLC is secured by way of first charge on Land & Building, Plant & Machinery, Furniture & Fixtures and Electrical Equipments of Company's unit situated at Daman and repayable in 12 equal quarterly installment.

The Company has recognized deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax (or) The Company has recognized deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management's estimates of future profits considering the non-cancellable customer orders received by the Company.

Notes:

(i) Working Capital Loan secured by way of Hypothecation of Inventories & Book Debts of the Company and further secured by way of Equitable Mortgage of Property situated at TTC- Turbhe (Navi Mumbai), GIDC- Umergaon (Gujarat), Kachigam (Daman), SIPCOT- Perundurai (Tamil Nadu), Edayaarpalayam (Tamil Nadu) and Thingalur (Tamil Nadu).

(ii) Purchase Bill Discounting is secured by way of second charge on the Inventories and Book debts and further secured by way of Personal Guarantee of Promotor - Directors.

(iii) Unsecured Short Term Loan is guaranteed by Promotor- Directors.

1. Employee benefit plans

a. Defined contribution plans

The Company makes Provident Fund and Employee pension scheme to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs 115.62 Lacs (Year ended 31st March, 2011 Rs 106.57 Lacs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b. Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Other defined benefit plans (Leave Encashment)

2. Segment information

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. Business segments are primarily Hosiery and Spinning. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments.

Note: Figures in bracket relates to the previous year 27. Related party transactions a. Details of related parties:

Associates

Maxwell Ventures Private Limited

Maxwell Capital Management Private Limited

Maxwell Entertainment Private Limited

Maxwell Retails Private Limited

HYBO Hindustan

PAKO Hindustan *

Pats Treasures *

Unnati Ventures

Kanishk Capital Partners

K. 3 Realtors

Global Construction

Pathare Agro Farms

Shogun Chemicals Pvt. Limited

Note: Related parties have been identified by the Management. * Transactions with related parties

3. Discontinuing operations

During the year, pursuant to the approval of the Shareholders and other authorities as required, the Company has transferred the Spinning Division business to M C Spinners Private Limited on a slump sale basis with effect from the close of business on 10th December' 2011 for a consideration of Rs 39.00 Crore (Rupees Thirty Nine Crore only). The Sipinning business was reported as part of Business segment of the Company. The results of the discontinued business during the year until discontinuation were as under:-

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

5. Remuneration to Managing Director and Whole Time Directors exceeds the maximum permissible limits prescribed in Section 269 and other applicable provisions of the Companies Act, 1956. The Company is in the process of getting Central Government approval.


Mar 31, 2011

1 a) Working Capital borrowing from banks are secured by hypothecation of Company's entire stock of raw materials (imported and indigenous), stocks in process, finished goods and goods in transit covered by documents of title to goods, book debts further collaterally secured by way of first charge on land and building, plant and machinery, furniture & fixture and electrical equipments of the Company's units at TTC Turbhe (Navi Mumbai), Gobichettipalayam (Tamil Nadu) and Equitable Mortgage of land at Edayarpalayam (Tamil Nadu), Umbergaon (Gujarat) and Perundurai (Tamil Nadu).

b. Term loan from Barclays Bank PLC is secured by way of first charge on land and building, plant and machinery, furniture and Fixture and electrical equipments of the Company's units at Thingalur (Tamil Nadu), Kachigam (Daman).

2. Cash Credit loan from State Bank of India of Rs. 6853.03 Lakhs outstanding as on 31.03.2011.

3. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms.

4. In the opinion of the Company, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business.

5. Sundry Debtors and Sundry Creditors balances are subject to confirmation.

ACCOUNTING STANDARD DISCLOSURES (Issued by Institute of Chartered Accountant of India)

6. AS 10 -ACCOUNTING FOR FIXED ASSETS:

The Company assets were capitalized on the date they were ready and put to use for commercial production. Depreciation on these assets under the Companies Act and Income Tax Act have been calculated accordingly.

7. AS-17-SEGMENT REPORTING:

The segments are identified based on the dominant source and nature of risks and returns and the internal organization and management structure. Inter segment revenue is accounted on the basis of transactions which are primarily market driven. Unallocated Corporate Expenses include revenue and expenses which relate to the enterprise as a whole and are not attributable to the segments.

8. AS 18 RELATED PARTY:

A. List of Related Parties with whom the Company undertook transactions:

1. Group Concerns: VIP Overseas Marketing Pvt. Ltd., Hybo Hindustan, Pako Hindustan, PATS Treasure.

2. Directors and other members of Promoter Group: Shri J. K. Pathare, Shri Sunil J. Pathare, Smt Lalita J. Pathare, Shri KapilJ. Pathare.

9. AS-29 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2010

1. a) Working Capital borrowing from bank are secured by hypothecation of Companys entire stock of raw materials (imported and indigenous), stocks in process, finished goods and goods in transit covered by documents of title to goods, book debts and further collaterally secured by way offirst charge on land and building, plantand machinery, furniture & fixture and electrical equipments of the Companys units at TTC Turbhe (Navi Mumbai), Gobichettipalayam (Tamil Nadu) and Equitable Mortgage of land at Edayarpalayam (Tamil Nadu), Umbergaon (Gujarat) and Perundurai, Tamil Nadu.

b. Short Term (Working Capital) Loan taken from IDBI Bank Limited are secured by way of sub-serivent charge on Stock and Book Debts of the Company.

c. Term loan from Barclays Bank is secured by way of first charge on land and building, plantand machinery, furniture and fixture and electrical equipments of the Companys units at Thingalur (Tamil Nadu), Daman (Kanchigam) and byway of personal guarantees of Promoter Directors.

2. Cash Credit loan from State Bank of India of Rs. 5032.75 lakhs outstanding as on 31.03.2010.

3. i) Payment against suppliers from small scale and ancillary undertaking are generally made in accordance with agreed credit terms.

ii) The Company has not received any intimation from "Suppliers" regarding the status under the Micro, Small and Medium Enterprises Development Act, 2006 & hence disclosures ifany relating to amounts paid as atyearend together with interest paid / payable as required under the said Act have not been given.

4. In the opinion of the Company, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business.

6.AS 10 -ACCOUNTING FOR FIXEDASSETS:

The CompanyAssets arecapitalized on the date they were ready and put to usefor commercial production.Depreciation on these assets under the CompaniesAct and IncomeTaxAct have beencalculated accordingly.

7.AS-15 -EMPLOYEES BENEFIT:

The Company has classified the various benefits provided to employees as under.

9.AS 18 RELATED PARTY:

A.List of Related Parties with whom the Company undertook transactions;

1 Group Concerns:VIP Overseas Marketing Pvt.Ltd.,Hybo Hindustan, Pako Hindustan,Pats Treasure, Maxwell Entertainment Pvt.Ltd.

2.Directors and other members of Promoter Group:Shri Jaykumar K.Pathare,Shri Sunil J.Pathare,Smt Lalita J. Pathare,Shri Kapil J.Pathare,Shri Jaykumar K.Pathare HUF.

12.AS-28-IMPAIRMENT OFASSETS:

The Companys asset at TTC,Thane are in the process of being disposed off and are stated at realizable market value.As a cash generating unitthe flows are expected to be positive overthe useful life ofthe asset.

13.AS-29 PROVISIONS.CONTINGENT LIABILITIESAND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation.A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,but probablywill not,require an outflow of resources.Wherethere is a possibleobligation or a present obligation thatthe likelihood ofoutflow of resourcesis remote,noprovisionordisclosure is made.

Contingent Liabilities Rupees in Lakhs

Particulars 2009-10 2008-09

Guarantees given by Bank 35.05 33.94

Letter of Credits 458.03 274.39

Claims against the company not acknowledged as debts 33.83 0.00

Income Tax Liability in Appeal 1157.49 1157.49

Export obligations 196.52 381.86

Previous Years figures have been regrouped,reclassified and rearranged wherever necessary.

 
Subscribe now to get personal finance updates in your inbox!