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Notes to Accounts of VIP Industries Ltd.

Mar 31, 2015

1.Terms/rights attached to equity shares:

The Company has only one class of Issued, subscribed and fully paid up shares referred to as Equity Shares having a par value of Rs. 2 each. Each holder of Equity Share 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.

2. The Board of Directors have recommended a final dividend of Rs. 1 (previous year Rs. 1.2) per share on par value of equity share of Rs. 2.0 each amounting to Rs. 14.13 Crores (previous year Rs. 16.96 Crores) for the financial year 2014-15. An interim dividend of Rs. 0.5 per share (previous year Rs. 0.5) amounting to Rs. 7.07 Crores (previous year Rs. 7.07 Crores) was paid during the financial year 2014-15. Hence, total dividend declared for the financial year 2014-15 would be Rs. 1.5 per share (previous year Rs. 1.7) amounting to Rs. 21.20 Crores (previous year Rs. 24.02 Crores) and Dividend Distribution Tax Rs. 4.29 Crores (previous year Rs. 4.08 Crores).

3. Leasehold Land

Lease hold land includes original cost of Rs. Nil (Previous Year Rs. 0.21 Crores), further Building includes original cost of Rs. Nil (Previous Year Rs. 2.15 Crores) and net block Rs. Nil (Previous Year Rs. 0.42 Crores) being assets held for sale. The same has been valued at lower of cost and Net Realisable value.

4. Building

Buildings include Original cost of Rs. 0.70 Crores (previous year Rs. 0.70 Crores) being the cost of ownership flats represented by 10 (previous year 10) shares of Rs. 50 each of Co-operative housing societies.

5. Plant & Machinery

Plant & Machinery to the extent of Rs. 0.30 Crores ( Previous year Rs. 0.30 Crores) is hypothicated to the State Government of Uttarakhand ( SIDCUL Dehradun) as per agreement for the Capital Incentive Scheme.

6. Obsolescence of Fixed Assets

Deduction/Adjustment includes Obsolescence of Fixed Assets done during the Year.

7. Pursuant to Schedule II to the Companies Act, 2013 (''the Act'') effective from April 1,2014, the Company has revised depreciation rates on tangible fixed assets except Moulds, Furniture & Fixtures and Computer Server as per useful life specified in Part ''C'' of Schedule II of the Act. Due to the same there has been a change in the estimated useful life of depreciable tangible assets which has affected the depreciation for the year ending 31st March 2015 and also for subsequent years during the remaining useful life of the assets.

Accordingly, the Company has re-worked depreciation with reference to the estimated economic lives of Fixed Assets prescribed by Schedule II of the Act during the year ended 31st March 2015. In case of an asset whose life is completed before 1st April 2014, the carrying amount (Net of residual value) of Rs. 4.70 Crores has been adjusted to the Retained Earnings after adjusting impact of deferred tax of Rs. 1.63 Crores and in other cases the carrying amount has been depreciated over the remaining revised useful life of the assets. As a result the charge for depreciation is higher by Rs. 2.59 Crores for the year ended 31st March 2015.

8. During the year application has been filed for voluntary winding up of the VIP Nitol Industries Limited. The company has already made provision for diminution in value of investment of Rs. 2.12 Crores in the accounts. Consequently the disclosure under AS 27 "Joint Venture" is not applicable.

9. The Balances can be utilized only towards settlement of the unpaid dividend/unpaid matured deposits.

10. Margin money deposits amounting to Rs. 0.07 Crores (Previous Year Rs.0.81 Crores) are lying with bank against Bat Guarantees and Letter of credit.

11. a) CONTINGENT LIABILITY

1) Claims against the company not acknowledged as Debts 0.04 0.04

2) Disputed Income Tax Liability 2.23 3.11

3) Disputed Sales Tax Liability 115.44 77.43

4) Bonds issued under EPCG scheme 4.71 4.41

5) Disputed Excise duty liability 0.80 0.41

6) Disputed Employees state insurance corporation Liability. 0.08 0.08

12. The Carlton Travel Goods Limited (CTG) was dissolved with effect from 6th December 2011, vide an order issued by the Registrar of Companies of England & Wales Dated 13th December, 2011.Provision for Diminution in value of investment of Rs. 1.66 Crores was already made in the books, in earlier year. During the previous year the company had received approval from Reserve Bank of India to write off the investment in CTG and accordingly the investment of. Rs.1.66 Crores had been written off during the previous year.

13. ASSETS TAKEN ON LEASE:

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 38.61 Crores (previous year Rs. 36.61 Crores) are charged as Rent and grouped under the Note No. 27 "Other Expenses". These leasing arrangements which are cancellable, range 11 months to 3 years, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 1.42 Crores (previous year Rs. 1.33 Crores) from Operating leases are recognised in the Statement of Profit & Loss & grouped under the Note No. 21 "Other Income".

14. SEGMENT REPORTING:

Segment Information for the year ended 31st March 2015

The Company has two primary business segments, viz i.Luggage, Bags & Accessories and ii. Furniture. Since the segment revenue, segment result and segment assets of the segment ''Furniture'' is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is considered reportable. Since the segment revenue outside India in Previous year is more than 10% of the total revenue, geographical segment is reported as the secondary segment.

Notes:

(a) The segment revenue in the geographical segments considered for disclosure are as follows:-

(i) Revenue within India includes sales to customers located within India and Earnings in India

(ii) Revenue outside India includes sales to customers located outside India and Earnings outside India

(b) Segment Revenue, Segment Assets and Capital Expenditure include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

15. RELATED PARTY DISCLOSURES:

A) Name of the related party and description of relationship

Name of Related Parties Nature of Relationship

Parties where control exists:

Blow Plast Retail Ltd. Wholly owned Subsidiary Company

VIP Industries Bangladesh Pvt Ltd. Wholly owned Subsidiary Company

VIP Nitol Industries Ltd. Joint Venture (Refer Note No. 10.1)

Key Management Personnel:

Mr Dilip G. Piramal Whole time Director W.e.f. 15.05.2013 and Chairman

Ms. Radhika Piramal Managing Director

Mr. Ashish K Saha Director Works

Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity,leave encashment and Compensated absences for sick leave. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Company''s defined benefit plans include provident fund, gratuity,leave encashment and Compensated absences for sick leave. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually. Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

Notes:

a) The Closing Balance includes Rs. 0.54 Crores as Short Term and Rs. 1.07 Crores as Long Term in Current year (Previous year Rs. 0.43 Crores as short Term and Rs. 0.85 Crores as Long Term)

b) A Provision has been recognised for the expected Warranty Claims on Product Sold based on past experience. It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

16. CORPORATE INFORMATION

VIP INDUSTRIES LTD. ( the ''Company) is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). The Company is Asia''s No.1 Luggage manufacturer and heralded the birth of modern luggage in India. The Company has manufacturing facilities at various locations across India. The Company has set up a wholly owned subsidiary in Bangladesh under the name and style VIP Industries Bangladesh Private Limited to manufacture and market luggage and bags.

17. Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

18. During the year there was fire in one of the plant of the Company and Properties & Inventories of the company were damaged. As the losses are fully recoverable from insurance company the same has been shown as receivable from insurance company. There is no impact on the Profit of the company for the year. In respect of losses which are being identified and quantified, the management expects that the losses are fully recoverable from insurance company and the same are being accounted on its determination.

19. During the year, the Company has made a provision of Rs. 0.28 Crores (Previous Year Rs. 0.52 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

20. In the opinion of the Board, amounts of Current Assets, Loans and Advances have value on realisation in the ordinary course of business at least equal to at which they are stated.

21. The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation.


Mar 31, 2013

Note No. 1.1 :Terms/rights attached to equity shares:

a) The Company has only one class of Issued, subscribed and fully paid up shares referred to as Equity Shares having a par value of Rs. 2 each. Each holder of Equity Share 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.

b) The dividend of Rs.1 (Previous Year Rs. 1.60) per share has been proposed to be distributed to Equity shareholders for the year ended 31st March, 2013. The total amount of dividend shall be Rs.14.13 Crores and Dividend Distribution Tax Rs.2.40 Crores

Note No 2.1: Building

Buildings include Original cost of Rs. 0.70 Crores(previous year Rs. 0.70 Crores) being the cost of ownership flats represented by 10 (previous year 10) shares ofRs. 50 each of Co-operative societies.

Note No 2.2: Plant & Machinery

Plant & Machinery to the extent of Rs. 0.30 Crores ( Previous year Rs. 0.30 Crores) is hypothicated to the State Government of Uttarakhand (SIDCUL Dehradun) as per agreement for the Capital Incentive Scheme.

Note 3.1: Goods in Transit

Raw Materials inventory includes Goods-in transit Rs. 0.06 Crores (Previous year Rs. 0.07 Crores) Finished Goods inventory includes Goods-in transit Rs. 0.04 Crores (Previous year Rs. 0.02 Crores) Stock-in-Trade inventory includes Goods-in transit Rs. 4.56 Crores (Previous vear Rs. 14.56 Crores)

Note No. 4.1

The Balances can be utilized only towards settlement of the unclaimed dividend/unclaimed matured deposits.

Note No. 4.2

Margin money deposits amounting to Rs. 1.36 Crores (Previous Year Rs. 3.21 Crores) are lying with bank against Bank Guarantees and Letter of credit.

5 ASSETS TAKEN ON LEASE:

The Company''s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and licence basis). The aggregate lease rentals of Rs. 35.82 Crores (previous year Rs. 26.66 Crores) as Rent are charged as Rent and grouped under the Note No. 26 "Other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 0.54 Crores (previous yearRs. 0.13 Crores) from Operating leases are recognised in the Statement of Profit & Loss & grouped under the Note No. 20 "Other Income".

6 SEGMENT REPORTING:

Segment Information for the year ended 31st March, 2013

The Company has three primary business segments, viz i.Luggage & Accessories ii. Furniture and iii Ladies Handbag. Since the segment revenue, segment result and segment assets of the segment ''Furniture'' and ladies Handbag'' are less than 10% of the respective totals, the same are considered insignificant and accordingly no Primary segment is considered reportable. Since the segment revenue outside India in Previous year is more than 10% of the total assets, geographical segment is reported as the secondary segment.

Notes:

(a) The segment revenue in the geographical segments considered for disclosure are as follows:-

(i) Revenue within India includes sales to customers located within India and Earnings in India

(ii) Revenue outside India includes sales to customers located outside India and Earnings outside India

(b) Segment Revenue, Segment Assets and Capital Expenditure include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity and leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees I appropriate authorities. The Company''s defined benefit plans include provident fund, gratuity and leave encashment. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually.Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

7 DERIVATIVES

HEDGED: The company has entered in to forward contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of curency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

8 CORPORATE INFORMATION

VIP INDUSTRIES LTD. (the ''Company) is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Company is Asia''s No.1 Luggage manufacturer and heralded the birth of modern luggage in India. The Company has manufacturing facilities at various locations accross India. The Company has set up a wholly owned subsidiary in Bangladesh under the name and style of VIP Industries Bangladesh Private Limited to manufacture and market luggage.

9 Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

10 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected, pending clearances from the authorities in Bangladesh. Consequently the disclosure under AS 27 is not applicable. Further the Provision for Diminution in value of Investment of Rs. 2.12 Crores has already been made in the accounts.

11 The Carlton Travel Goods Limited was dissolved with effect from 6th December 2011, vide an order issued by the Registrar of Companies of England & Wales Dated 13th December,2011.Provision for Diminution in value of investment of Rs. 1.66 Crores has already been made in the books, the same will be written off after obtaining approval from Reserve Bank of India for which application has already been made to Reserve Bank of India.

12 During the year, the Company has made a provision of Rs. 1.23 Crores (previous year Rs. 0.72 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

13 In the opinion of the Board, amounts of Current Assets, Loans and Advances have value on realisation in the ordinary course of business at least equal to at which they are stated.

14 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the revised schedule VI.


Mar 31, 2012

Note No. 1.1 :Terms/rights attached to equity shares:

a) The Company has only one class of Issued, subscribed and fully paid up shares referred to as equity shares having a par value of Rs. 2 each. Each holder of equity share is entitled to one vote per share. The dividend pro- posed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

b) The amount of per share dividend of Rs. 1.60 (Previous Year Rs. 2) has been proposed to be distributed to equity shareholders for the year ended 31st March, 2012 including Interim Dividend paid during the year. The total amount of dividend shall be Rs. 22.61 Crores and Dividend Distribution Tax Rs. 3.67 Crores.

c) 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 the number of equity shares held by the shareholders.

Note No. 1.2 :Aggregate number of shares allotted under the scheme of amalgamation during the period of five years immediately preceding the reporting date:

Pursuant to the Order dated 14th December, 2007 passed by the Hon'ble High Court of Judicature at Bombay sanctioning the scheme of Amalgamation of Aristocrat Luggage Limited and Quality Plastics Limited with V.I.P. Industries Limited (the Company), 28,01,650 Equity Shares of Rs. 10 each, (1,40,08,250 Equity Shares at par value of Rs. 2, post subdivision) of the Company were issued to the shareholders of erstwhile Aristocrat Luggage Ltd and erstwhile Quality Plastics Ltd.

Note No. 2.1

The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

Note No 3.1: Buildings

Buildings include Original cost of Rs. 0.70 Crores (previous year Rs. 0.70 Crores) being the cost of ownership flats represented by 10 (previous year 10) shares of Rs. 50 each of Co-operative societies.

Note No 3.2 : Plant & Machinery

Plant & Machinery to the extent of Rs. 0.30 Crores (Previous year Rs. 0.30 Crores) is hypothicated to the State Government of Uttarakhand (SIDCUL Dehradun) as per agreement for the Capital Incentive Scheme.

Note No:-4.1:-

The Carlton Travel Goods Limited was dissolved with effect from 6th December 2011, vide an order issued by the Registrar of Companies of England & Wales Dated 13th December,2011.Provision for Diminution in value of investment of Rs. 1.66 Crores has already been made in the books, the same will be written off after obtaining approval from Reserve Bank of India.

5 ASSETS TAKEN ON LEASE:

The Company's major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 26.79 Crores (previous year Rs. 19.13 Crores) as Rent are charged as Rent and grouped under the Note No. 26 "Other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 0.13 Crores (previous year Rs. 0.13 Crores) from Operating leases are recognised in the Statement of Profit & Loss & grouped under the Note No. 20 "Other Income".

6 SEGMENT REPORTING:

Segment Information for the year ended 31st March, 2012

The Company has two primary business segments, viz i. Luggage & Accessories ii. Furniture. Since the segment revenue, segment result and segment assets of the segment 'Furniture' is less than 10% of the respective totals, the same is not considered significant and accordingly no Primary segment is considered reportable. Since the segment revenue outside India in Previous year is more than 10% of the total assets, geographical segment is reported as the secondary segment.

7 Balances of Trade Receivables, Trade Payables, Loans & Advances are subject to confirmation and consequential adjustments, if any.

8 During the year, the wholly owned subsidiary Carlton Travel Goods Limited, was dissolved with effect from 6th December, 2011 vide on order issued by the Registrar of Companies of England and Wales dated 13th December, 2011. The provision for doubtful recovery of the receivables from the subsidiary company was made in the year 2010-11. Subsequently, the company has received the approval from the Reserve Bank of India for the write off of these receivables amounting to USD 58,30,109 and Euro 1,20,917 (Approximately Rs. 27 Crores) and accordingly these receivables have been written off in the current year.

9 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected pending clearances from the authorities in Bangladesh. Consequently the disclosure under AS 27 is not applicable.

10 During the year the Company has made a provision of Rs. 0.72 Crores (previous year Rs. 0.64 Crores) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods inventories. There is no effect on the profit for the year.

11 In the opinion of the Board, amounts of Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to at which they are stated.

12 The Financial Statement for the year ended 31st March 2011 had been prepared as per the then applicable prerevised Schedule VI of the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956 the financial statement for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year figures have also been regrouped/reclassified to confirm to the current year's classification.


Mar 31, 2011

(Rupees in '000)

2011 2010

1. Contingent Liabilities not provided for in respect of:

a. Disputed Income Tax liability 22,517 26,659

b. Disputed Sales Tax liability 154,818 132,807

c. Disputed Property Tax - 100,756

d. Bills discounted with Bank - 163,522

e. Bonds issued under EPCG scheme 42,305 55,465

f. Disputed Excise duty liability 1,105 1,105

g. Claims against the Company not acknowledged as Debts 338 326

h. Disputed Employees state insurance corporation dues. 786 786

2. During the year the Company has made a provision of Rs. 64,17,386 (previous year Rs. 97,05,445 ) for excise duty on closing stocks, other than goods meant for exports in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods. There is no effect of this on the profit for the year.

3. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

4. The Ministry of Company Affairs, Government of India vide its Order No. 46/29/2011-CL-lll dated 18th January, 2011 issued under Section 211 (4) of the Companies Act, 1956, has exempted the Company from disclosure of details required to be provided under Paragraph 3(i)(a), 3(ii)(a), 3(ii)(b) of the part II of Schedule VI to the Companies Act, 1956.

5. Related Parties Disclosure :

1. Name of Related Parties & description of relationship

VIP Nitol Industries Ltd Joint Venture

Carlton Travel Goods Ltd. (A) Wholly owned Subsidiary Company

Blow Plast Retail Ltd. (B) Wholly owned Subsidiary Company

Ramgopal Polytex Ltd. Enterprise in which Key Management

Personnel had significant influence

Key Management Personnel:

Mr Dilip G. Piramal Chairman

Mr. Sudhir Jatia Managing Director (resigned 30/04/2010)

Ms. Radhika Piramal Managing Director (w.e.f 01/05/2010)

Mr. Premanand Thangavelu Director Works (w.e.f 27/07/2010)

6. Earning PerShare(EPS)-Thenumeratorsand denominators usedtocalculateBasicand Diluted Earning PerShare.

7 Segment Information for the year ended 31 st March 2011

The Company has two primary business segments, viz i.Luggage & Accessories ii. Furniture. Since the segment revenue, segment result and segment assets of the segment 'Furniture' is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is considered reportable. Since the assets outside India in Previous year is more than 10% of the total assets, geographical segment is reported as the secondary segment.

8 Employee Benefits:

The disclosures as required under the revised AS 15 are as under:

a) Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity and leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Company's defined benefit plans include provident fund, gratuity and leave encashment. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually.Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

b) Contribution to Provident Fund Rs. 29,820,047 (Previous year Rs. 26,104,827)

c) Disclosures for Gratuity benefit plans based on actuarial reports as on 31/03/2011

9 Assets taken on Lease

The Company's major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 190,480,794 (previous year Rs. 194,708,978) as Rent are grouped under schedule of "Administrative, selling and other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs. 1,257,792 (previous year Rs. 3,076,338) from Operating leases are recognised in the Profit & Loss Account & grouped under the schedule of 'Other Income'.

10 Disclosure relating to Provisions

Provision related to Warranty

A Provision has been recognised for the expected Warranty Claims on Product Sold based on past experience.

It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

11 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected pending clearances from the authorities in Bangladesh. During the previous year the company has erroneously shown the said investment as written off instead of provision, however the same has been rectified in the Currrent year. Consequently the disclosure under AS 27 is not applicable.

12 During the year the Board has approved the write off (subject to the approval from the Reserve Bank of India) of the trade debtors due from its wholly owned subsidiary M/s Carlton Travel Goods Ltd to the extent of Rs. 27 Crores and a provision for Diminution in value of Investment in the said subsidiary to the extent of Rs. 1.7 Crores. The Company has applied to the RBI seeking approval for the write off of the trade debtors. Pending the approval, the Company has made a provision for the same. Accordingly an amount of Rs. 28.7 Crores is shown as Exceptional item in the Standalone results.

13 During the previous year, the Company had received Rs. 3,000,000 from SIDCUL, Uttaranchal towards capital Incentive for its Hardwar Plant. Accordingly an amount of Rs. 500,000 has been transferred to the Profit and Loss account on SLM basis.

14 Previous Year figures have been regrouped and/or rearranged wherever necessary.

15 Balances of Sundry Creditors, Sundry Debtors, Loans and Advances are subject to confirmation and consequential adjustment if any.

16 Figures in brackets are in respect of previous year.












Mar 31, 2010

2010 2009 Rs in Lacs Rs in Lacs

1. Estimated amounts of Contracts remaining to be executed on 88 33 Capital Account and not provided for (net of advances).

2. Contingent Liabiiities not provided for in respect of:

a. Disputed Income Tax liability 2,67 3,99

b. Disputed Sales Tax liability 13,28 12,89

c. Disputed Property Tax 10,08 8,43

d. Bills discounted with Bank 16,35 1,49

e. Bonds issued under EPCG scheme 5,55 5,47

f. Disputed Excise duty liability 11 11

g. Claims against the Company not acknowledged as Debts 3 30 h. Disputed Employees State Insurance Corporation dues. 8 8

3 During the year the Company has made a provision of Rs. 97 lacs (previous year Rs. 48 lacs) for excise duty on closing stocks, other than goods meant for exports, in bonded warehouse. The excise duty is also included in valuation of the closing stock of finished goods. Hence there is no effect of this on the profit for the year.

4. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

5. The Ministry of Company Affairs, Government of India vide its Order No. 46/13/2010-CL-lll dated 08th February, 2010 issued under Section 211(4) of the Companies Act, 1956, has exempted the Company from disclosure of details required to be provided under Paragraph 3(i)(a), 3(ii)(a), 3(ii)(b) of the part II of Schedule VI to the Companies Act, 1956.

6. Related Parties Disclosure :

1. Name of Related Parties & description of relationship

VIP Nitol Industries Ltd Joint Venture

Carlton Travel Goods Ltd. (A) Wholly owned Subsidiary Company

Blow Plast Retail Ltd. (B) Wholly owned Subsidiary Company

Ramgopal Polytex Ltd. Enterprise in which Key Management

Personnel had significant influence

Key Management Personnel:

Mr Dilip G. Piramal Chairman

Mr. Sudhir Jatia Managing Director

Ms. Radhika Piramal Executive Director (w.e.f 13/07/2009)

7 Segment Information for the year ended 31st March 2010

The Company has two primary business segments, viz i.Luggage & Accessories ii. Furniture. Since the segment revenue, segment result and segment assets of the segment Furniture is less than 10% of the respective totals, the same is considered insignificant and accordingly no Primary segment is considered reportable. Since the sales outside India is more than 10% of the total sales, geographical segment is reported as the secondary segment.

8 Employee Benefits:

The disclosures as required under the revised AS 15 are as under:

a) Defined Benefit Plan

The Company has schemes for long-term benefits such as provident fund,gratuity and leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Companys defined benefit plans include provident fund, gratuity and leave encashment. In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. However, as at the year end no shortfall remains unprovided for. It is not practical or feasible to actuarially value the liability of provident fund considering that the rate of interest as notified by the Government can vary annually.Further the pattern of investments for investible funds is as prescribed by the Government. Accordingly other related disclosures in respect of provident fund have not been made.

b) Contribution to Provident Fund Rs.2,61 lacs (Previous year Rs.2,49 lacs)

9 Assets taken / given on Lease

The Companys major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 19,47 lacs (previous year Rs 17,27 lacs) as Rent are grouped under schedule of "Administrative, selling and other Expenses". These leasing arrangements which are cancellable, range between 11 months and 5 years generally, or longer and are usually renewable by mutually agreed terms and conditions.

Rental Income of Rs.31 lacs (previous year Rs.37 lacs) from Operating leases are recognised in the Profit & Loss Account & grouped under the schedule of Other Income.

10 Disclosure relating to Provisions

Provision related to Warranty

A Provision has been recognised for the expected Warranty Claims on Products Sold based on past experience.

It is expected that the majority of this expenditure will be incurred in the next 2-3 Years.

11 The Company had entered into an agreement to sale its stake in the Joint Venture, VIP NITOL Industries Limited. The sale has not been effected pending clearances from the authorities in Bangladesh. During the current year the company has written off the amount of investments (net of provision for diminution in value of investments) as in the opinion of the management, the chances of recovery of the amount as per the sale agreement are remote. Further there are no activities in the Joint Venture. Consequently the disclosure under AS 27 is not applicable.

12 The Net worth of M/s. Carlton Travel Goods Ltd. (a wholly owned subsidiary company) is negative and the subsidiary company continues to incur losses. Based on the latest financial results of the subsidiary company, the subsidiary company may face financial hardships in repayment of its liabilities, majority of which are payable to the parent company. However the management of the company is hopeful of the recovery and turnaround of the subsidiary company, and accordingly the Equity Investment made of Rs. 1,66 lacs, loans given of Rs.15,71 lacs and sales receivable of Rs. 22,34 lacs have been considered good by the management. Accordingly no provision has been made for the same in the books of accounts.

13 During the year the company has changed its accounting policy of charging depreciation on Computer Hardware @ 25% as against 16.21% charged hitherto and Computer Software @ 33.33% as against 20% charged hitherto. Accordingly the retrospective impact of the depreciation of Rs.2,11 lacs short charged up to the period ended 31/03/2009 has been charged to profit and loss account and has been included in depreciation for the year. Further due to such change the written down value of such assets is understated by Rs.2,51 lacs and profit for the year is understated by Rs. 2,51 lacs (including the impact of the current year of Rs.40 lacs) and consequently the reserves.

14 The Cost of Materials is net of insurance claim received of Rs.Nil ( previous year Rs. 97 lacs)

15 Previous Year figures have been regrouped and/or rearranged wherever necessary.

16 Balances of Sundry Creditors, Sundry Debtors, Loans and Advances are subject to confirmation and consequential adjustment if any.

17 Figures in brackets are in respect of previous year.



 
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