Mar 31, 2018
Note No. 19.1:
i) Payments against small scale and ancillary undertakings are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue for more than 30 days as on 31st March, 2018. A Small Scale Industrial undertaking has the same meaning as assigned to it under clause (j) of section 3 of the Industries (Development and Regulation) Act, 1951.
ii) The Company has not received the necessary information from the supplier/ service provider covered under Micro Small & Medium Enterprises Development Act 2006 with respect to their registration with the appropriate authority. Hence the information required to be disclosed u/s 22 of the said act is not given or nil.
Note 32 CONTINGENT LIABILITIES
a) Company has given counter guarantee for '' 4.40 lakhs (March 31, 2017 '' 4.33 lakhs April 1, 2016 '' 12.03 lakhs) to Punjab National Bank for Guarantee given by them to Custom/DGFT department. against which Company has given to bank FDR for '' 0.90 lakhs (March 31, 2017 '' 0.82 lakhs, April 1, 2016 '' 1.56 lakhs) as margin money.
b) Demand of Entry Tax by commercial tax department '' 6.31 lakhs for assessment year 2007
08. Case pending with M.P. Tax Tribunal Board Bhopal. Company has provided liabilities for '' 3.20 lakhs in the financial year 2007-08.
Note 33 CAPITAL COMMITEMENTS
Estimated amount of contracts remaining to be executed on capital account, not provided for (Net of advance) '' 31.02 lakhs (Last year Nil)
Note 34 In Union Budget 2004-05 textile goods have been exempted from excise duty provided no credit under CENVAT Rule 2002 is taken. The company decided to opt for exemption i.e zero excise duty w.e.f. 9th July, 2004 under notification No. 30 dated 09.07.2004. This exemption was applicable till 30th June, 2017
Note 36 INSURANCE CLAIM RECEIVABLE
In the months of September and October, 2017, there were fire incidents in the Company. Due to the same, certain fixed assets, finished goods, work in progress, stores & spare parts and packing materials etc. were impacted/ destroyed. Subsequently, the Company filed for insurance claim for the loss of same. The Insurance Policy has reinstatement clause, and Company has claimed accordingly.
Note 37 CAPITAL MANAGEMENT
The Companyâs objectives when managing capital are to safeguard the groupâs ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
(ii) Defined Benefit Plan Gratuity:
The disclosure required as per Ind AS 19 âEmployees Benefitsâ issued by the Institute of Chartered Accountants of India (ICAI) and as specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, and based on the report generated by Life Insurance Corporation of India (LIC) is as under.
The following tables set out the funded status of the gratuity and the amounts recognized in the Companyâs financial statements as at 31 March 2018 and 31 March 2017.
(A) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.
Credit Risk Management
For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having high credit ratings or with higher credentials. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The Company has provisioning policy for expected credit losses. There is no credit risk in bank deposits which are demand deposits.
The maximum exposure to credit risk as at 31 March 2018, 31 March 2017 and 1 April 2016 is the carrying value of such trade receivables as shown in note 9 of the financials.
The Credit Loss allowances are provided in the case of trade receivables as under:
Loss allowance as on 1 April 2016 -
Loss allowance as on 31 March 2017 -
Loss allowance as on 31 March 2018 -
*Since the company is having effective credit monitoring policy, its receivables are always outstanding for less than 6 months at any given point of time. Therefore, provision of expected credit loss is not required.
(B) Liquidity Risk
The Companyâs principal sources of liquidity are âcash and cash equivalentsâ and cash flows that are generated from operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence, the Company does not perceive any liquidity risk.
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018
(C) Market risk
Interest Rate Risk Exposure
The Company is exposed to various types of borrowings as stated in Note Nos. 15 and 18 respectively. The Companyâs exposure to interest rate risks at the end of the reporting period is as follows:
The Company is exposed to various types of borrowings as stated in Note Nos. 15 and 18, respectively. The sensitivity analysis demonstrates a reasonably possible change in the interest rates, with all other variables held constant.
For the year ended March 31, 2018 and March 31, 2017, every 0.25% increase in the interest rate would decrease the Companyâs profit approximately by Rs, 2.67 lakhs and Rs, 0.86 lakhs respectively and every 0.25% decrease in the interest rate would lead to an equal but opposite effect.
(D) Price risk
The Company is exposed to price risk in basic ingredients of Companyâs raw material and is procuring finished components and bought out materials from vendors directly. The Company monitors its price risk and factors the price increase in pricing of the products.
Competition and Price risk
The Company faces competition from local competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.
Note 40 Related party disclosures as required under Ind AS 24, âRelated Party Disclosuresâ, are given below:
a) Name of the related party and description of relationship:
S. Related Parties Nature of Relationship No.
(i) Vippy Industries Ltd. Entity in which Key Managerial person''s relative having significant influence
(ii) Shri Piyush Mutha Managing Director (Key Management Personnel)
(iii) Shri Mangalore Whole time Director (Key Managerial Personnel)
Maruthi Rao
(iv) Shri Praneet Mutha Director
b) Details of Transactions during the year with related parties:
Note 41 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.
The management assessed that Cash and Cash equivalents, loans, other balances with Banks, trade receivables, trade payables and other current liabilities/assets approximate their carrying amounts largely due to the short-term maturities of these instruments.
Note 43 FIRST TIME ADOPTION OF IND AS (IND AS 101)
These are the Companyâs first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet at April 1, 2016 (the companyâs date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position, financial performance and cash flows is set out in the following tables and notes.
(A) Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
(i) Ind AS optional exemptions
a) Deemed cost for Property, Plant and Equipment, Intangible Assets and Investment Property
Ind AS 101 permits a first-time adopter to opt to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
Accordingly, the Company has opted to measure all of its property, plant and equipment at their previous GAAP carrying value and use the same as deemed cost in the opening Ind AS balance sheet.
b) Designation of previously recognized financial instrument
Ind AS 101 allows an entity to recognize investments in equity instruments at fair value through other comprehensive income (FVOCI) through an irrevocable election on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has opted to apply this exemption for its investment in quoted equity investments.
(ii) Ind AS mandatory exceptions
a) Estimates
An entityâs estimates in accordance with Ind ASâs at the date of transition shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
> Investment in equity instruments carried at FVOCI;
> Investment in mutual fund carried at FVTPL;
> Impairment of financial assets based on expected credit loss model.
Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by previous GAAP.
b) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
(B) Reconciliation between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliation from previous GAAP to Ind AS.
Explanation for the above reconciliation as previously reported under IGAAP to Ind AS:
1: Property, Plant & Equipment
As per the requirements of Ind AS 17 âLeasesâ the lease premium paid for the acquisition of land has been amortized over the lease tenure. Accordingly there is an decrease in value of Leasehold land and increase in Depreciation and Amortization expenses.
2: Fair valuation of investments
Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments recognized at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss.
Fair value changes with respect to investments in equity instruments have been recognized in FVOCI under Other Comprehensive Income as at the date of transition and for the year ended 31 March 2017. Consequently, other reserves have been increased by '' 16.35 lakhs as at March 31, 2017 (increased by '' 21.70 lakhs as at April 01, 2016).
3: Trade receivables
As per Ind AS 109, the Company is required to apply expected credit loss model for recognizing the allowance for doubtful debts. However, due to effective credit monitoring policy of the Company, the trade receivables are outstanding for less than 6 months at any given point of time. As a result, the Company is not required make expected credit loss provision.
4: Remeasurements of post-employment benefit obligations
Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs .80 lakh (increased by '' 7.32 lakhs as at April 01, 2016). There is no impact on the total equity as at March 31, 2017.
5: Other comprehensive income
Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans, fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.
6: Deferred tax
Deferred taxes impact of the above adjustments, wherever applicable have been recognized on transition to Ind AS.
7: Retained earnings
Retained earnings as at April 01, 2016 has been adjusted consequent to the above Ind AS transition adjustments.
Note 44 Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this yearâs classifications.
Mar 31, 2015
Note 1. - CONTINGENT LIABILITIES (to the extent not provided for)
a) Counter Guarantee:
For Rs. 11,06,500/- (Rs. 32,24,500) given to Punjab National Bank for
Guarantee given by them to Custom/DGFT department against which Company
has given to bank FDR for Rs. 1,46,830/- as margin money.
b) Demand of Entry Tax by commercial tax department Rs. 6,31,496/- for
assessment year 2007- 08. Case pending with M.P. Tax Tribunal Board
Bhopal. Company has provided liabilities for Rs. 3,20,856/- in the
financial year 2007-08.
Note 2. - Pursunt to the transitional provision prescribed in Schedule
II to the Companies Act, 2013, the company has adjusted the value of
assets, net of residual value, where the remaining useful life of the
assets determined to nil as on April 1, 2014 and has adjusted in the
retained earnings an amount of Rs. 3.28 Lakh.
The depreciation expenses in the statement of Profit and Loss account
for the year is higher by Rs. 59.41 Lakh consequent to the change in the
useful life of the assets.
Note 3. - In the opinion of the management and to the best of their
knowledge and belief, the value on realisation of current assets, loans
and advances in the ordinary course of business would not be less than
the amount at which they are stated in the balance sheet. The provision
for known liabilities is adequate and not in excess of the amount
considered reasonable and necessary
Note 4. - In Union Budget 2004-05 textile goods have been exempted from
excise duty provided no credit under CENVAT Rule 2002 is taken. The
company has decided to opt for exemption i.e. zero excise duty w.e.f.
9th July, 2004 under notification No. 30 dated 09.07.2004.
Note 5. - The company in accordance with its risk management policies
and procedure enters in to foreign currency forward contracts to manage
its exposure in foreign exchange rates. These contracts are for period
between one day and one year.
Note 6. - The Company has applied for assistance under M.P. Udyog
Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for
its expansion programme. The exemption of entry tax approved by the
govt.
Note 7. - Balances of creditors, debtors, and advances are almost
confirmed.
Note 8. - Figures of the previous year have been regrouped wherever
required
Mar 31, 2014
Note 1 - CORPORATE INFORMATION
Vippy Spinpro Ltd. was established in 1993 as a public limited company.
The company is incorporated under the provisions of Companies Act,
1956. Its shares are listed on Mumbai Stock Exchange. The company is
engaged in manufacturing of Cotton Yarn. The factory is situated at
Dewas, with close proximity to Indore, a main commercial city of Madhya
Pradesh. Company specialises in slub yarns, fancy yarns, multi count
yarns and multi twist yarns, waxed yarn plied yarn etc. The company has
an ISO certification, certified by Bureau Veritas ISO 9o0l:2008 since
2004
Note 2 - SHARE CAPITAL
(b) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of ''
10 per share. Each shareholder of equity shares is entitled to one vote
per share.
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 3 - LONG TERM BORROWINGS
(a) Term Loan
i) Term loan-II, III, IV and V under Technology upgradation fund scheme
(TUFS), secured against, (i) Charge by way of equitable mortgage of
Land and Building. (ii) first charge land and Building, plant and
machinery both present and future. The above said term loans are also
collaterally secured by way of personal guarantees of 2 (two)
directors/promoters of the Company.
iii) The Company has not made any default as at the reporting date in
repayment of term loan installment and interest.
iv) The Term loan carries interest @ 7.00% (net of interest subvention
under TUF Scheme @ 5% except 4% on T/L No. V)
(b) Vehicle Loan HDFC Bank
i) Vehicle loan secured by hypothecation of vehicle.
ii) Vehicle loan is repayable 36 monthly installment
iii) The Company has not made any default as at the reporting date in
repayment of vehicle loan installment and interest.
iv) The vehicle loan carries interest @ 9.25%
Note 4 - DEFERRED TAX LIABILITY (NET)
i) In accordance with the provisions of the Accounting Standard-22 on
"Accounting for Taxes on Income" issued by the Institute of
Chartered Accountants of India, the Company has recognised deferred tax
liabilities of Rs.1,68,15,827/- (Rs.1,85,96,220) as at Mar 31, 2014.
ii) The net deferred tax Assets amounting to Rs.17,80,393/- (Rs.1,00,659/-
deffered tax liability ) for the year has been recognised in the
Statement of Profit and Loss.
Note 5 - SHORT TERM BORROWINGS
a) Working capital facilities from Punjab National Bank
i) Working capital facilities, fund based of Rs.18,00,00,000/- and non
fund based of Rs.1,00,00,000/- (Previous year Rs.18,00,00,000/- and Rs.
1,00,00,000/-) is secured by hypothecation of stock of raw material,
semi finished goods, work in progress/process, stores and spares,
packing materials and books debts. (ii) first pari passu charge on all
the Company''s current assets. The above said working capital
facilities is also collaterally secured by way of (i) personal
guarantee of 2 (two) directors of the Company.
ii) The Company has not made any default with respect to working
capital facilities as at the reporting date.
iii) Working capital facilities carries interest @ 11.50% while on
Packing Credit interest rate is 11.00%
(a) Term Loan
i) Term loan-II, III, IV and V under Technology upgradation fund scheme
(TUFS), secured against, (i) Charge by way of equitable mortgage of
Land and Building. (ii) first charge land and Building, plant and
machinery both present and future. The above said term loans are also
collaterally secured by way of personal guarantees of 2 (two)
directors/promoters of the Company.
iii) The Company has not made any default as at the reporting date in
repayment of term loan installment and interest.
iv) The Term loan carries interest @ 7.00% (net of interest subvention
under TUF Scheme @ 5% except 4% on T/L No. V)
vi) There are no outstanding dues to be paid to investor education and
protection fund.
Note 6 - CONTINGENT LIABILITIES (to the extent not provided for)
a) Counter Guarantee:
For Rs.32,24,500/- (Rs.40,24,300) given to Punjab National Bank for
Guarantee given by them to Custom/ DGFT department. against which
Company has given to bank FDR for Rs.3,48,130/- as margin money.
b) Demand of Entry Tax by commercial tax department Rs.6,31,496/- for
assessment year 2007- 08. Case pending with M.P. Tax Tribunal Board
Bhopal. Company has provided liabilities for Rs.3,20,856/- in the
financial year 2007-08.
Note 7 - In the opinion of the management and to the best of their
knowledge and belief, the value on realisation of current assets, loans
and advances in the ordinary course of business would not be less than
the amount at which they are stated in the balance sheet. The provision
for known liabilities is adequate and not in excess of the amount
considered reasonable and necessary
Note 8 - In Union Budget 2004-05 textile goods have been exempted from
excise duty provided no credit under CENVAT Rule 2002 is taken. The
company has decided to opt for exemption i.e. zero excise duty w.e.f.
9th July, 2004 under notification No. 30 dated 09.07.2004.
Note 9 - The Company has applied for assistance under M.P. Udyog
Nivesh Samvardhan Sahayata Yojana 2004 and exemption for entry tax for
its expansion programme. The exemption of entry tax approved by the
govt. Note 31 - Balances of creditors, debtors, and advances are
almost confirmed.
Note 10 - FORWARD BOOKING CONTRACTS
The company in accordance with its risk management policies and
procedure enters in to foreign currency forward contracts to manage its
exposure in foreign exchange rates. Thease contracts are for period
between one day and one year.
The Company has outstanding forward booking contracts at the year end
Mar 31, 2013
Note 1 - CORPORATE INFORMATION
Vippy Spinpro Ltd. was established in 1993 as a public limited company.
The company is incorporated under the provisions of Companies Act,
1956. Its shares are listed on Mumbai Stock Exchange. The company is
engaged in manufacturing of Cotton Yarn. The factory is situated at
Dewas, with close proximity to Indore, a main commercial city of Madhya
Pradesh. Company specializes in slub yarns, fancy yarns, multi count
yarns and multi twist yarns, waxed yarn plied yarn etc. The company has
an ISO certification, certified by Bureau Veritas ISO 9001:2008 since
2004.
March 31, 2013 March 31, 2012
(Rs.) (Rs.)
Note 2 - SHARE CAPITAL
Authorized
70,00,000 (70,00,000)
equity shares of Rs.10 (Rs.10)
each 7,00,00,000 7,00,00,000
Issued, subscribed, and
paid up
58,70,000 (58,70,000)
equity shares of Rs. 10
(Rs. 10) each fully paid up 5,87,00,000 5,87,00,000
Less: Allotment money
unpaid (Other than
directors) - -
5,87,00,000 5,87,00,000
b) Terms/rights attached to equity shares :
The Company has only one class of equity shares having a par value of Rs.
10/- per share. Each shareholder of equity shares is entitled to one
vote per share.
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.
a) Term loans
i) Term loan-II, III, IV and V under Technology up gradation fund scheme
(TUFS), secured against, (i) Charge by way of equitable mortgage of
Land and Building. (ii) first charge land and Building, plant and
machinery both present and future. The above said term loans are also
collaterally secured by way of personal guarantees of 2 (two)
directors/promoters of the Company.
iii) The Company has not made any default as at the reporting date in
repayment of term loan installment and interest.
iv) The Term loan carries interest @ 8.50% (net of interest subvention
under TUF Scheme @ 5% except 4% on T/L No. V)
b) Vehicle Loan HDFC Bank
i) Vehicle loan secured by hypothecation of vehicle.
ii) Vehicle loan is repayable 36 monthly installment
iii) The Company has not made any default as at the reporting date in
repayment of vehicle loan installment and interest.
iv) The vehicle loan carries interest @ 9.25%
i) In accordance with the provisions of the Accounting Standard-22 on
"Accounting for Taxes on Income" issued by the Institute of Chartered
Accountants of India, the Company has recognized deferred tax
liabilities of Rs.1,85,96,220/- (Rs.1,84,95,561) as at March 31, 2013.
ii) The net deferred tax Liabilities amounting to Rs. 1,00,659/- (Rs.
22,77,109/- differed tax assets) for the year has been recognized in
the Statement of Profit and Loss.
a) Working capital facilities from Punjab National Bank
i) Working capital facilities, fund based of Rs.18,00,00,000/- and non
fund based of Rs.1,00,00,000/-(Previous qtr Rs. 18,00,00,000/- and Rs.
1,00,00,000/-) is secured by (i) hypothecation of stock of raw
material, semi finished goods, work in progress/process, stores and
spares, packing materials and books debts. (ii) first pari passu charge
on all the Company''s current assets. The above said working capital
facilities is also collaterally secured by way of personal guarantee
of2 (two) directors of the Company.
ii) The Company has not made any default with respect to working
capital facilities as at the reporting date.
iii) Working capital facilities carries interest @ 13.00% while on
Packing Credit interest rate is 11.00%.
Payments against small scale and ancillary undertakings are made in
accordance with the agreed credit terms and to the extent ascertained
from available information, there was no amount overdue for more than
30 days as on 31st March, 2013. A Small Scale Industrial undertaking
has the same meaning as assigned to it under clause (j) of section 3
ofthe Industries (Development and Regulation) Act, 1951.
The Company has not received the necessary information from the
supplier/ service provider covered under Micro Small & Medium
Enterprises Development Act 2006 with respect to their registration
with the appropriate authority. Hence the information required to be
disclosed U/s 22 of the said act is not given.
a) Term loans
i) Term loan-II, III, IV and V under Technology up gradation fund scheme
(TUFS), secured against, (i) Charge by way of equitable mortgage of
Land and Building. (ii) first charge land and Building, plant and
machinery both present and future. The above said term loans are also
collaterally secured by way of personal guarantees of 2 (two)
directors/promoters of the Company.
Note 3 - CONTINGENT LIABILITIES (to the extent not provided for)
a) Counter Guarantee:
For Rs. 40,24,300/- (Rs. 68,78,800/-) given to Punjab National Bank for
Guarantee given by them to Custom/DGFT department. against which
Company has given to bank FDR for Rs. 6,36,330/- as margin money.
b) Demand of Entry Tax by commercial tax department Rs. 6,31,496/- for
assessment year 2007-08. Case pending with M.P. Tax Tribunal Board
Bhopal. Company has provided liabilities for Rs.3,20,856/in the financial
year 2007-08.
c) Demand outstanding of Income Tax Rs. 1,65,272/- for assessment year
1996-97.
Note 4 - In the opinion of the management and to the best of their
knowledge and belief, the value on realization of current assets, loans
and advances in the ordinary course of business would not be less than
the amount at which they are stated in the balance sheet. The provision
for known liabilities is adequate and not in excess of the amount
considered reasonable and necessary
Note 5 - In Union Budget 2004-05 textile goods have been exempted from
excise duty, provided no credit under CENVAT Rule 2002 is taken. The
company has decided to opt for exemption i.e. zero excise duty w.e.f.
9th July, 2004 under notification No. 30 dated 09.07.2004.
Note 6 - The Company has applied for assistance under M.P. Udyog Nivesh
Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its
expansion programme. The exemption of entry tax approved by the govt.
Note 7 - Balances of creditors, debtors, and advances are almost
confirmed.
Note 8 - FORWARD BOOKING CONTRACTS
The company in accordance with its risk management policies and
procedure enters in to foreign currency forward contracts to manage its
exposure in foreign exchange rates. These contracts are for a period
from one day to one year.
Mar 31, 2012
Note 1 -CORPORATE INFORMATION
Vippy Spinpro Ltd. was established in 1993 as a public limited company.
The company is incorporated under the provisions of Companies Act,
1956. Its shares are listed on Mumbai Stock Exchange. The company is
engaged in manufacturing of Cotton Yarn. The factory is situated at
Dewas, close with proximity to Indore, a main commercial city of Madhya
Pradesh. Company specialises in slub yarns, fancy yarns, multi count
yarns and multi twist yarns, waxed yarn plied yarn etc. The company has
an ISO certification, certified by Bureau Veritas ISO 9001:2008 since
2004
i) The Company has not made any default as at the reporting date in
repayment of term loan installment and interest.
ii) The Term loan carries interest @ 9.75% (net of interest subvention
under TUF Scheme @5% except 4% on T/L No. V)
a) Vehicle Loan HDFC Bank
i) Vehicle loan is secured by hypothecation of vehicle.
ii) Vehicle loan is repayable 36 monthly installment
iii) The Company has not made any default as at the reporting date in
repayment of vehicle loan installment and interest.
iv) The vehicle loan carries interest @ 9.25%
(a) Working capital facilities from Punjab National Bank
i) Working capital facilities, fund based of Rs. 18,00,00,000/- and non
fund based of Rs. 1,00,00,000/- (Previous year Rs. 13,00,00,000/- and Rs.
1,00,00,000/-) is secured by hypothecation of stock of raw material,
semi finished goods, work in progress/process, stores and spares,
packing materials and books debts. (ii) first pari passu charge on all
the Company's current assets. The above said working capital facilities
is also collaterally secured by way of (i) personal guarantee of 2
(two) directors of the Company.
ii) The Company has not made any default with respect to working
capital facilities as at the reporting date.
iii) Working capital facilities carries interest @ 14.25% while on
Packing Credit interest rate is 11.50% Payments against small scale and
ancillary undertakings are made in accordance with the agreed credit
terms and to the extent ascertained from available information, there
was no amount overdue for more than 30 days as on 31st March 2012. A
Small Scale Industrial undertaking has the same meaning as assigned to
it under clause (j) of section 3 of the Industries (Development and
Regulation) Act, 1951.
The Company has not received the necessary information from the
supplier/ service provider covered under Micro Small & Medium
Enterprises Development Act 2006 with respect to their registration
with the appropriate authority. Hence the information required to be
disclosed U/s 22 of the said act is not.
(a) Term loan
i) Term loan-II, III, IV and V are under Technology upgradation fund
scheme (TUFS), secured against, (i) Charge by way of equitable mortgage
of Land and Building. (ii) first charge land and Building, plant and
machinery both present and future. The above said term loans are also
collaterally secured by way of personal guarantees of 2 (two)
directors/promoters of the Company.
Note 2- CONTINGENT LIABILITIES
(to the extent not provided for)
a) Counter Guarantee:
For Rs. 68,78,800/- (Rs. 82,61,400/-) given to Punjab National Bank for
Guarantee given by them to Custom/DGFT department against which company
has given to bank FDR for Rs. 8,93,880/- as margin money.
b) Demand of Entry Tax by commercial tax department Rs. 2,43,910/- for
assessment year 2004-05. Case pending with M.P. Tax Tribunal Board
Bhopal.
c) Demand of Entry Tax by commercial tax department Rs. 1,07,982/- for
assessment year 2005-06. Case pending with M.P. Tax Tribunal Board
Bhopal .
d) Demand of Entry Tax by commercial tax department Rs. 7,90,496/- for
assessment year 2007-08. Case pending with Addl. Commissioner of
Commercial Taxes (Appeal) Indore. Company has provided liabilities for
Rs. 3,20,856/- in the financial year 2007-08.
e) Demand outstanding of Income Tax Rs. 1,65,272/- for assessment year
1996-97.
Note3- In the opinion of the management and to the best of their
knowledge and belief, the value on realisation o f current assets,
loans and advances in the ordinary course of business would not be less
than the amount at which they are stated in the balance sheet. The
provision for known liabilities is adequate a n d not in excess of the
amount considered reasonable and necessary
Note4- In Union Budget 2004-05 textile goods have been exempted from
excise duty, provided no credit under CENVAT Rule 2002 is taken. The
company has decided to opt for exemption i.e. zero excise duty w.e.f.
9th July, 2004 under notification No. 30 dated 09.07.2004.
Note5- The Company has applied for assistance under M.P. Udyog Nivesh
Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its
expansion programme. the exemption of entry tax approved by the govt.
Note 6 - Keyman insurance policy for key persons not renewed by the
company during the year premium of Rs. nil paid
Note 7- Balances of creditors, debtors, and advances are almost
confirmed.
Note 8- CAPITAL OMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account Rs. 1,44,83,933/- (Previous year Rs. NIL ) and not provided for
Note 9- The financial statements for the year ended 31st March, 2011
had been prepared as per the then applicable, pre-revised Schedule VI
to the Companies Act 1956. Consequent to the notification under the
Companies Act, 1956, the financial statements for the year ended 31st
March, 2012 are prepared under revised Schedule VI. Accordingly, the
previous year figures have also been reclassified to confirm to this
year's classification.
Mar 31, 2010
1. Contingent Liabilities not provided for:
a) Counter Guarantee:
For Rs. 69,06,900/- (64*29,400/-) given to Punjab National Bank for
Guarantee given by them to Custom/DGFT department against which Company
has given to bank FDR for Rs. 10,38,730/- as margin money.
b) Demand of Entry Tax by commercial tax department Rs. 3,38,910/- for
assessment year 2004-05. Case pending with M.R Tax Tribunal Board
Bhopal.
c) Demand outstanding of Income Tax Rs. 1,65,272/- for assessment year
1996-97.
d) Demand of Entry Tax by commercial tax department Rs. 1,50,082/- for
assessment year 2005-06. Case pending with M.R Tax Tribunal Board
Bhopal.
2. Income-tax assessment in respect of assessment year 1994-95 ITAT
allowed the appeal of the company. Income tax department has filed the
reference application to the High Court and High Court rejected the
application of Income tax department. No demand is outstanding.
3. In the opinion of the management and to the best of their knowledge
and belief, the value on realisation of current assets, loans and
advances in the ordinary course of business would not be less than the
amount at which they are stated in the balance sheet. The provision for
known liabilities is adequate and not in excess of the amount
considered reasonable and necessary.
4. Balances of creditors, debtors, and advances are almost confirmed.
5 Payments against small scale and ancillary undertakings are made in
accordance with the agreed credit terms and to the extent ascertained
from available information, there was no amount overdue for more than
30 days as on 31st March, 2010. A Small Scale Industrial undertaking
has the same meaning as assigned to it under clause (j) of section 3 of
the Industries (Development and Regulation) Act, 1951.
6. Keyman insurance policy for key persons renewed by the company
during the year and premium of Rs. 10,00,000/-paid.
7. In Union Budget 2004-05 textile goods have been exempted from
excise duty, provided no credit under CENVAT Rule 2002 is taken. The
company has decided to opt for exemption i.e. zero excise duty w.e.f.
9th July, 2004 undernotificationNo. 30 dated 09.07.2004.
8. The Company has applied for assistance under M.P. Udyog Nivesh
Samvardhan Sahayata Yojana 2004 and exemption for entry tax for its
expansion programme. The application is under process.
9. Figures of the previous year have been
regrouped/rearranged/reclassified wherever necessary
10. Earning Per Shares Current Previous
Year Year
a) Net Profit after Tax (Rs.) 99,57,401 1,07,78,595
a) Number of Weighted Average
Equity Shares 58,70,000 58,70,000
b) Nominal value of Share (Rs.) 10 10
c) Earning per share (Rs.) 1.696 1.836
11. The Company has not received the necessary information from the
supplier/ service provider covered under Micro Small & Medium
Enterprises Development Act 2006 with respect to their registration
with the appropriate authority. Hence the information required to be
disclosed U/s 22 of the said act is not given or nil.
12. Additional information required under part II 3,4 C & D of
Schedule VI of the Companies Act 1956.
13. Figures have been rounded off to the nearest rupees.
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