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Notes to Accounts of Welterman International Ltd.

Mar 31, 2014

1. BACKGROUND

Wetterman International Limited (the Company) Is a public limited company domiciled in India and was incorporated dated 13.OS.1992 under the provisions of the Companies Act, 1956 having registered office at Plot No. 1135, At Post Lamdapura, Lamdapura Road. Savll, Vadodara. Its shrams are listed on the Bombay Sock Exchange. The Company is engaged In business of trading of Shoe Leather

2. The manufacturing unit at Landapurauearhjis been closed since May, 20M and hence the purchase productionthrtytn cspaut of the manufacturingunit is no more (hare. However Company now me line of business at Chennai.

3. In the opinion of the Board the Current Assets. Loans and Advances are approximately of the value stated, if realised in the ordinary course of business Froviswi for air known liabilities is adequate and net in excess of the amount reasonably necessary. No provision for income tax ha* h sen made m view of heavy brought forward business losses and depreciation both as im the Income Tax Act and also as per the books of account,

4. Debit and Credit balances in party accounis are subject In confirmation and nsconcaliu bon. In absence of taxable income, prawsipn for Income Tax has not been matte,

5. The Company has yet to comply provisions of S-action 383-A of the Companies Act 19515 In respect of appaintmenl of Company Secretary and provisions of Section 205-A of the Companies Acf. 1956 In respect of payment of Dividend for the year 1905-96. However a Practicing Company Secretary has been appointed as a natolr .sr 2ft Under the Micro, Small and Medium Enterprises DevelopmenlAct, 20U6 which came into force on October, 2006, certain disclosures aro required to be made relating to Micro. Small and Medium Enterprises. Since the relevant Information's notreadisy available, disefosur e could not be made.

6. Related Party Disclosure as per Accounting Standard 18.

Related Party and Its relationship

A Directors S Key Management Personnel 1. Kcyum R- Dhanami

B. Related Parties 1. Sara Soule Pvt Ltd

2. Aashita Leather Pvt Ltd

3. Sayaji Hotels Ltd


Mar 31, 2013

NOTE ''1''. BANKGROUND

Welterman International Limited (the Company) is a public limited company domiciled in India and was incorporated dated 13.05.1992 under the provisions of the Companies Act, 1956 having registered office at Plot No. 1135, At Post Manjusar, Lamdapura Road, Savli, Vadodara. Its shares are listed on the Bombay Stock Exchange. The Company is engaged in business of trading of Shoe Leather.

2 The manufacturing unit at Lamdapura - Manjusar has been closed since May, 2009 and hence the purchase - production - sales activity in respect of the manufacturing unit is no more there. However Company now, has been engaged into trading activity in the same line of business at Chennai.

3 In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business. Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4 Debit and Credit balances in party accounts are subject to confirmation and reconciliation. In absence of taxable income, provision for Income Tax has not been made.

5 The Company has yet to comply provisions of Section 383-A of the Companies Act 1956 in respect of appointment of Company Secretary and provisions of Section 205-A of the Companies Act, 1956 in respect of payment of Dividend for the year 1995-96. However a Practicing Company Secretary has been appointed as a retainer.

6 Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force on October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. Since the relevant information is not readily available, no disclosures have been made in the Books of Accounts.


Mar 31, 2012

1. Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing cost are charged to revenue.

2. During the Year under report, the Company has written off Rs.3,60,080 , being the remaining portion of the amount paid to the workmen who opted retirement in previous years under Voluntary Retirement Scheme.

3. The manufacturing unit at Lamdapura - Manjusar has been closed since May, 2009 and hence the purchase - production - sales activity in respect of the manufacturing unit is no more there. However Company now, has been engaged into trading activity in the same line of business at Chennai.

4. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business. Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. Debit and Credit balances in party accounts are subject to confirmation and reconciliation. In absence of taxable income, provision for Income Tax has not been made.

6. The Company has yet to comply provisions of Section 383-A of the Companies Act 1956 in respect of appointment of Company Secretary and provisions of Section 205-A of the Companies Act, 1956 in respect of payment of Dividend for the year 1995-96. However a Practicing Company Secretary has been appointed as a retainer.

7. Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force on October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. Since the relevant information is not readily available, no disclosures have been made in the Books of Accounts.

8. Accounting for Taxes on Income and Deferred Tax Asset AS - 22

The Company has not been liable to pay any Income-tax for the year as the Company has been in loss. Further the Company has huge Unabsorbed Business Losses and Unabsorbed Depreciation under the Income tax Act and hence its Deferred Tax Assets are much in excess of Deferred Tax Liabilities. Company has not recognized differed tax asset till last year in absence of virtual certainty of continual future profits. But, though in the current year, there has been business loss, the expectation of business profit has been certain and hence Deferred Tax Asset has been recognized as under.

9. Figures for the previous year have been regrouped, rearranged and recast wherever necessary so as to make them comparable with those of the current year.


Mar 31, 2009

1. During the year Company paid Rs. 18,00,018/- towards the Voluntary Retirement Scheme to the workmen who opted retirement. U/s 35DDA of the Income Tax Act, 1961, 175th of such amount becomes allowable in each year from the year in which such payments have been made. Accordingly, for the year under review, an amount of Rs. 3,60,004 has been debited under revenue for the year under report and similarly Rs.1,36,001 have been debited for the Previous Year.

2. Due to persistent unviability of the production unit, the Directors decided to close down the entire plant in May,2009 and hence the purchase - production - sales activity is closed.

3. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business. Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Debit and Credit balances in party accounts are subject to confirmation and reconciliation. In absence of taxable income, provision for Income Tax has not been made.

5. No interest has been paid/ provided on unsecured loans obtained from the Promoters and Associate Companies as per the conditions imposed by financial institutions.

6. The Company has yet to comply provisions of Section 383-A of the Companies Act 1956 in respect of appointment of Company Secretary and provisions of Section 205-A of the Companies Act, 1956 in respect of payment of Dividend for the year 1995-96. However a Practicing Company Secretary has been appointed as a retainer.

7. In the absence of sufficient information, disclosure of particulars regarding unpaid amounts exceeding for 30 days to Small Scale Industrial Undertakings as defined under the Industries ( Development and Regulation ) Act, 1951 could not be made.

8. Interest on the Term Loan obtained from the Gujarat State Finance Corporation has not been provided for by the Company during the year just like in the previous years as the lender has treated Advance to the Company as Non-performing asset and has not intimated the Company for the charges of the interest. The Company being a sick industrial undertaking, it has been felt that such interest in all likelihood will be waived. However company is under the process of repaying the same on One Time Settlement basis.

9. Sara Soule Private Limited repaidthe Companys Secured loan of industrial Financial Corporation of India (IFCI) amounting to Rs. 9.21 Crores (Including Principal Rs. 5.02 Crores and Penal Interest of Rs. 0.33 Crore) at hte behest of the Company. Sara Soule Pvt. Ltd. paid to IFCI Rs. 324.76 Lacs afresh during the year whereas the balance Rs. 596.96 Lacs has been paid by rhe company form the unsecured deposit of Sara Soule pvt. Ltd. lying with the Company. The process of handing over the documents of title of property of hte Company from IFCI to Sara Soule Pvt. Ltd. and creation of change in its favour with the Registrar of Companies has been in progress, meanwhile interim legal document for creation of the charge in favour of Sara Soule has been executed.

10. Accounting for Taxes on Income AS - 22

The Company has not been liable to pay any Income-tax for the year as the Company has been in loss. Further the Company has huge Unabsorbed Business Losses and Unabsorbed Depreciation under the Income tax Act and hence its Deferred Tax Assets are much in excess of Deferred Tax Liabilities. Net differed tax asset has not been recognised by the way of prudence in accordance with Accounting Standard - AS 22 relating to "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, in absence of virtual certainty of future profits.

11. Figures for the previous year have been regrouped, rearranged and recast wherever necessary so as to make them comparable with those of the current year.

 
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