Mar 31, 2018
Considering the past experience, management is of the view that there will not be any material impact on accounts on settlement/finalization of tax assessment.
15 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 62.18 Lacs (Previous year Rs. 379.43 Lacs) {(net of advances of Rs. 13.31 Lacs)(Previous year Rs. 211.35 Lacs)}.
16 In view of the management, no provision is required in respect of receivable of Rs. 1089.44 lacs from a body corporate whose net worth has been fully eroded, in view of future prospects of revival and also as the company is in the process of rehabilitation. Under these circumstances, the due date of payment will be mutually decided.
17 The Companyâs Hydro Power Project (3.5 MW) at Manuni, Dharamshala, Distt. Kangra Himachal Pardesh has been synchronized with H.P.S.E.B.L Grid on 31.03.2017 and supplied electricity
H.P.S.E.B.L till 31st January, 2018 and is being captively consumed thereafter. The company has filed a writ petition before the Honâble Himachal Pradesh High Court at Shimla challenging levy of certain charges and additional free supply of power under âsupplementary implementation agreementâ, On Companyâs application, Honâble High Court has granted interim stay on 11th Septâ 2013 and currently the matter is sub-judice. Pending litigation amount payable; if any, cannot be estimated at this stage. Management is confident that there will not be any material impact of above on final settlement/ decision.
18 The company has taken legal and other persuasive actions for recovery of certain overdue Trade Receivables amounting to Rs. 18.29 Lacs (previous year Rs. 18.29 Lacs). In the opinion of the management, these outstanding are good and fully recoverable, hence no provision there against is considered necessary.
19 Balances of loans and advances sundry creditors and other liabilities are in the process of confirmation / reconciliation.
20 In accordance with the Accounting Standards (IndAS-36) on âImpairment of Assetsâ during the year the company has assessed useful life of fixed assets in use and is of the view that no impairment is considered to be necessary in view of its expected realizable value/value in use.
22 The Company has not received full information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amount unpaid as at year end together with interest paid /payable have been given based on the information so far available with the company/ identified by the company management. As required by schedule
III of companies Act, of the above said Act the following information is disclosed:-
1. SEGMENT INFORMATION
(i) Business segments have been identified based on the nature and class of products and services, assessment of differential risks and returns. Accordingly, company is a single segment company operating in textile business (Yarn, Fabric and allied activities) and disclosure requirements as contained in Ind AS- 108 âOperating Segmentsâ are not required in the financial statements.
(ii) The segment revenue in geographical segments considered for disclosure is as follow:
(a) Revenue inside India includes sales to customers located within India.
(b) Revenue outside India includes sales to customers located outside India.
2. RELATED PARTY DISCLOSURE
Related parties and transactions with them as specified in the Ind-AS 24 on âRelated Parties Disclosuresâ presribed under Companies (Accounting Standards) Rules, 2015 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.
c) Other related parties
(i) Key management personnel and their relatives Relationship
Shri Ashish Bagrodia Chairman cum Managing Director
Shri Anil Sharma Chief Executive OfficerA
Shri Sanjay Kedia Chief Financial OfficerA
Shri Videshwar Sharma Company SecretaryA
Shri Satish Bagrodia Advisor (Relative of CMD)
a Pursuant to the Companies Act, 2013
(ii) Enterprise where Key Management Personnel & their relative have significant influence
Star point Financial Services (P) Ltd. India
Winsome Yarns Limited India
Roselab Commodities Pvt. Ltd India
Kailashpati Vinimay Pvt. Ltd. India
3. Managerial remuneration paid/provided to Managing Director during the year ended 31st March, 2018 which has exceeded the limit prescribed under section 197 read with schedule V to the Companies Act, 2013, by Rs. 28.29 Lakhs. The Company is in the process of filing waiver application with the Central Government for the above excess remuneration and pending application and receipt of the approval, no adjustments to financial statements have been made to show this amount as recoverable.
4. The disclosures required under Ind-AS -19, Employee Benefits, notified in the Companies (Accounting Standard) Rules, 2015 are given below, based on the Actuarial Report certified by a Practicing Actuary.
Defined Benefit Plan
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
5. During the year, the company has migrated to a new accounting system and in view of the frequent changes in the new GST regime, certain balances are in the process of reconciliation. The net amount of such unreconciled balances amounting to Rs. 56.36 lacs has been shown under Advances Recoverable in kind under the head âOther Current Assetsâ.
6. As per the past practice, consumption of raw material and stores and spares is derived as net of opening stock plus purchases less closing stock.
7. CAPITAL MANAGEMENT
The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the companyâs capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year ended 31st March 2018.
There were no changes in the objectives, policies or processes for managing capital during the year ended 31st March 2018 and 31st March 2017.
8. Figures for the previous year have been re-group/rearranged where ever necessary to make them comparable with current year
Mar 31, 2016
1 Rights & Restrictions of Shareholders:
1.1 The Company has only one class of Equity Shares having face value of Rs. 10/each (Previous Year Rs. 10/- each) in its issued, subscribed and paid up Equity share capital. Each shareholder is entitled to one vote per share. Each shareholder have the right in profit/surplus in proportion to amount paid up with respect to share holder.
1.2. In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets, if any, in proportion to their individual shareholding in the paid up equity capital of the company.
* Adjusted Rs. 68.86 lacs pursuant to adoption of schedule II of the companies Act, 2013 towards WDV in respect of certain Fixed Assets (Net of Deferred Tax Rs. 36.44 Lacs) whose lives have expired on 31st March, 2015.
2. Term Loans from Banks of Rs. 18506.71 Lacs (P.Y. Rs. 22352.78 Lacs) are secured by Joint Equitable Mortgage by deposit of title deeds on companyâs immovable properties(present and future) which shall be on first charge basis, shall rank pari-passu with all banks and a charge by way of hypothecation of all movable fixed assets subject to prior charge on specified equipments to banks for term loan. Above Term loans are further secured by pari-passu second charge on entire current(present and future) assets of the company. The loan is repayable in quarterly installments and maturity profile is as follows:
3. Vehicle Finance carrying interest of Rs. 70.87 Lacs (P.Y. 98.45Lacs) which is secured by hypothecation of specific assets purchased under such arrangements and is repayable in equated monthly installments and maturity profile is as follows:
4. The aforesaid credit facilities mentioned above in point no. 1 are also guaranteed by Chairman cum Managing Director and also by relatives of C.M.D. for certain credit facilities .
5. Working Capital Demand loans from banks, Cash Credit and Packing Credit are secured by First Charge by Hypothecation of Raw Materials, Stock in Process, Finished Goods, Consumable Store and Spares, Goods in Transit, Book Debts and by Second Charge on entire Fixed Assets of the Company on Pari-passu basis with Working Capital lenders.
6. The aforesaid credit facilities mentioned above is also secured by guarantee given by Chairman and Managing Director and also by a relative of C.M.D for certain credit facilities.
* Shall be credited to Investorâs Education and Protection Fund when due.
7. (a) Pursuant to adoption of useful lives of fixed assets as per Schedule II of the Companies Act, 2013 in compliance with Notification No. GSR 627(E) dated 29.08.2014 during the current year, the useful lives have been assessed by company it has accordingly componentized its fixed assets and has separately assessed the life of major components forming part of main assets. Consequently, the depreciation for the year is higher by Rs. 146.68 lacs. After retaining residual value, the carrying amount of Rs.68.86 lacs of certain fixed assets ((Net of Deferred Tax Rs. 36.44 Lacs)), whose lives have expired as at previous year end, has been charged to Retained Earnings.
8. (b) Depreciation for the year is net of Rs. 14.51 lacs (Previous Year Rs. 9.89 Lacs) transferred from Reserves of Capital Subsidy under TUFFS.
Building includes capital expenditure incurred on assets not owned by the company Rs.8.90 lacs ( Previous Year Rs. 8.90 lacs) and net Rs. 3.49 Lacs ( Previous Year Rs.4.31 lacs).
During the year an amount of Rs.13.53 lacs has been received from Himachal Pradesh Electricity Board toward 66 KV transmission line capitalised during the financial year 2013-14, which is adjusted from the cost of respective Assets.
# Vehicle includes assets of Rs.111.20 lacs ( Previous Year Rs.195.02 lacs) acquired under Hire Purchase Finance.
* Margin Money against L/Câs and Bank Guarantee
$ Includes FDRâs maturity of more than 12 months Rs. Nil ( P.Y. Rs. Nil)
9. (A). Contingent Liabilities, not provided for in respect of (as certified by the management):
(v) Custom duty saved of Rs. 116.41 Lacs (Previous year Rs. 648.06 Lacs) for import of capital good made under EPCG scheme against which export obligations amounting to Rs. 698.49 Lacs (Previous year Rs. 3964.34 Lacs) is pending.
(B). In respect of certain disallowances and additions made by Income Tax Authorities, appeals are pending before the Appellate authorities and adjustment if any, will be made after the same are finally determined.
Considering the past experience, management is of the view that there will not be any material impact on accounts on settlement/finalization of tax assessment.
10. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 155.13 Lacs (Previous year Rs. 865.50 Lacs) {(net of advances Rs. 22.73 Lacs) (Previous year Rs. 142.18 Lacs)}.
11. Trade receivable includes Rs. 1089.44 lacs( Previous Year Rs. 1089.44 lacs) is recoverable from a body corporate (erstwhile associate company) whose net worth as per the audited accounts as at 30th Sept 2014 became negative and balance is subject to confirmation and who has filed application before Board for Financial Industrial Reconstruction (BIFR) for rehabilitation. The management is confident about full recovery, hence no provision there against considered necessary.
12. During the year the Company has completed construction of a Hydro Electric project (3.5 MW Power project) at Manuni, Himachal Pradesh and capitalized w.e.f. 25th Sept 2015. However, project is ready to use but could not be started pending required approvals from government/ authorities, as the company has filed a writ petition before the Honâble Himachal Pradesh High Court at Shimla challenging levy of certain charges and additional free supply of power under âsupplementary implementation agreementâ, pending for execution by the company with the Government of Himachal Pradesh for the said power project. On Companyâs application, Honâble High Court has granted interim stay on 11th Septâ 2013 and currently the matter is sub-judice. Pending litigation amount payable; if any, cannot be estimated at this stage. Management is confident that there will not be any material impact of above on final settlement/decision.
The management is of the view that considering the long term capital investment , future cash flows and benefits associated with the project and expected early settlement of dispute with the government/authorities there is no impairment as this stage.
13. The company has filed an application for the rebate claim which is disputed and pending at the office of the Joint Secretary, New Delhi under export promotion scheme of Rs.27.76 Lacs.( Previous Year Rs. 27.76 Lacs). In the opinion of the management , these claims are good and fully recoverable , hence no provision their against is considered necessary.
14. Prior period adjustment (net) Rs.10.41 Lacs (Previous year Rs. 8.99 Lacs) include ECGC charges Rs. 5.32 Lacs , Fees & Subscription Rs 3.57 Lacs (Previous year Rs. 0.77 Lac), Legal and Professional fees Rs. 0.18 Lac (Previous year Rs. 1.03 Lacs), Repair to Computers Rs. 0.07 Lac, Telephone expenses Rs. 0.53 Lac, Traveling Expenses Rs.0.10 Lac, Water Charges Rs 0.13 Lac (Previous year Rs. 0.27 Lac), Interest on working capital Rs. 0.51 Lac, Testing charges - Rs. NIL (Previous year Rs 0.62 Lac), Repair to building & Machinery Rs. NIL (Previous year Rs 1.17 Lacs) Recruitment Expenses Rs. NIL (Previous year Rs 0.60 Lac), Brokerage - Rs. NIL, (Previous Year Rs. 1.80 Lacs) and ERP support Charges Rs. NIL (Previous Year Rs. 2.73 Lacs).
15. The company has taken legal and other persuasive actions for recovery of certain overdue Trade Receivables amounting to Rs. 35.44 Lacs (previous year Rs. 66.27 Lacs). In the opinion of the management, these outstanding are good and fully recoverable, hence no provision there against is considered necessary.
16. Balance of certain receivables (read with note no. 27.3), loans and advances (including capital advance), trade payables (read with Note no. 27.13)and other liabilities are in the process of confirmation / reconciliation.
17. In accordance with the Accounting Standards (AS-28) on âImpairment of Assetsâ during the year the company has assessed useful life of fixed assets in use and is of the view that no impairment is considered to be necessary in view of its expected realizable value/value in use.
18. Pursuant to adoption of useful lives of fixed assets as per Schedule II of the Companies Act, 2013 in compliance with Notification No. GSR 627(E) dated 29.08.2014 during the current year, the useful lives have been assessed by management and accordingly, depreciation for the year is higher by Rs. 146.68 lacs. After retaining residual value, the carrying amount of Rs.68.86 lacs of certain fixed assets( Net of deferred tax amounting to Rs. 36.44 lacs), whose lives have expired as at previous year end, has been charged to Retained earnings.
19. Since it is not possible to ascertain with reasonable certainty/ accuracy the amount of accrual in respect of certain insurance and other claims, the same are continued to be accounted for on settlement/ acceptance basis.
20. Capital work in progress including civil work under construction, electric Installation and fittings, Machinery under installation/erection and following pre-operative expenditure pending allocation/capitalization :
21. The Company has not received full information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid as at year end together with interest paid /payable have been given based on the information so for available with the company/ identified by the company management. As required by section 22 of the above said Act the following information is disclosed:-
22. As per the past practice exchange fluctuation on loan/ liability for acquisition of capital assets continue to be charged to the Statement of Profit & Loss.
23. In the opinion of the Board, the Current Assets, Loans and Advances appearing in the Companyâs Balance Sheet as at year end would have a value on realization in the normal course of business at least equal to the respective amounts at which they are stated in the Balance Sheet.
24. Employees Benefits: Defined Benefit Plan:
The employee gratuity fund is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
(i) Contribution to defined contribution plan, recognized as expenses during the year is Rs. 225.33 Lacs (P.Y. Rs. 191.01 Lacs) & as transferred to Capital Work-in-progress is Rs. Nil Lacs (P.Y. Rs. Nil Lacs).
(ii) The estimate rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
(iii) The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.
(iv) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.
25. Research and Development expenditure amounting to Rs. 72.03 Lacs (Previous year Rs. 67.83 Lacs) have been charged to Statement of Profit and Loss in respective heads of the accounts (As certified by the management).
26. (a) i) As per the past practice , consumption of raw material and stores and spares is derived as net of opening stock plus purchases less closing stock , as certain item-wise records are in process of updation.
ii) in view of para (i)above , closing inventories of stock in process and finished goods have been considered as taken , valued and certified by the management after providing against old / non moving inventories; if any, as assessed / estimated by the management.
(b) Profit /Loss on sale of stores and raw materials remains adjusted in their respective consumption accounts.
27. Segment Reporting
(i) The company has only one business segment namely Textile (Yarn, Fabric and allied activities).
(i) The segment revenue in geographical segments considered for disclosure is as follow:
(a) Revenue inside India includes sales to customers located within India.
(b) Revenue outside India includes sales to customers located outside India.
28. As estimated and assessed by the management, certain tax allowances / deductions have been considered and accordingly Net Deferred Tax Liability of Rs. 30.63 Lacs (Previous Year Rs. 812.44 Lacs Net Deferred Tax Liability) have been accounted for the year.
* Includes Rs. 5 lacs salary as an advisor w.e.f 1st March 2015, and Rs. 29.65 lacs remuneration (including commission) in the capacity of Chairman cum Whole time Director up to 20th September, 2014
(ii) Remuneration to Shri Ashish Bagrodia ( Chairman Cum Managing Director) Rs. 86.63 Lacs (P.Y Rs. 65.11 Lacs including commission).
Remuneration to Shri Anil Sharma (Chief Executive Officer) Rs. 60.76Lacs( P.Y Rs 39.34 lacs), Shri Sanjay Kedia (Chief Financial Officer ) Rs. 28.30 Lacs (P.Y Rs. 18.89 lacs) , Shri Sourabh Gupta (Company Secretary) Rs. 11.74 Lacs (P.Y Rs. 10.23 lacs).
28. Based upon Future plans, expected sales and profitability as assessed by the management in near future (in next twelve months) which will enable company to utilize MAT credit entitlement of Rs. 2290.67 Lacs ( Previous Year Rs. 1981.48 Lacs )and accordingly the same is shown under âShort Term Loans & Advancesâ.
29. The company has given interest free loan/ advances in the nature of loan, to employees, in the ordinary course of its business. No loan/ advances in the nature of loans have been given to employees/ others for the purpose of investment in securities of the company.
(A) The Foreign Currency exposure that are not hedged by derivative instruments or otherwise are as follow (As certified by Management).
(B) Forward Contracts of Rs. 4265.72 Lacs, US $ 63.41 Lacs (Previous Year 3984.62 Lacs, US $ 63.53 Lacs and EURO 0.55 Lacs) taken for the purpose of hedging of Trade debtors are outstanding as 31.03.16
30. During the year the company has provided Corporate Social Responsibility (CSR) expenses of Rs.46.83 Lacs (PY Rs.17.96 Lacs ), including Rs.34.78 lacs (PY Rs.16.04 Lacs) transferred to Winsome Foundation Trust.
31. Figures for the previous year have been re-grouped/rearranged where ever necessary to make them comparable with current year.
Mar 31, 2015
1.1 Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.865.50 Lacs (Previous year Rs. 867.00
Lacs) {(net of advances Rs. 142.18 Lacs)(Previous year Rs. 109.00
Lacs)}.
1.2 Trade receivable includes Rs. 1089.44 lacs is recoverable from a
related party (erstwhile associate company) whose net worth as per the
audited accounts as at 30th Sept 2014 became negative and balance is
subject to confirmation and who has filed application before Board for
Financial Industrial Reconstruction (BIFR) for rehabilitation. The
management is confident about full recovery, hence no provision there
against considered necessary.
1.3 The company is constructing a Hydro Electric Project (3.5 MW Power
project) at Manuni, Himachal Pradesh which is shown under capital work
in progress. The company has filed a writ petition before the Hon'ble
Himachal Pradesh High Court at Shimla challenging levy of certain
charges and additional free supply of power under "supplementary
implementation agreement" to be executed by the company with the
Government of Himachal Pradesh for the said power project. On Company's
application, Hon'ble High Court has granted interim stay on 11th Sept'
2013 and currently the matter is sub-judice. Management is confident
that there will not be any material impact of above on final
settlement/decision.
1.4 The company has filed an application for the rebate claim which is
disputed and pending at the office of the Joint Secretary, New Delhi
under export promotion scheme of Rs.27.76 lacs.
1.5 TUFS Interest Subsidy amounting to Rs. 82.44 lacs is recoverable
from two banks as on 31st 'March'2015 since Dec. 2011 (Rs. 35.05 lacs)
and Sept. 2012 (Rs. 47.39 lacs) . In view of management these amounts
are good and recoverable.
1.6 The company has taken legal and other persuasive actions for
recovery of certain overdue Trade Receivable amounting to Rs. 66.27
lacs (includes of overdue overseas Trade Receivable of Rs. 30.84 lacs).
In the opinion of the management, these outstanding are good and fully
recoverable and hence no provision there against is considered
necessary.
1.7 Balance of certain receivables (read with note no. 26.3), loans
and advances (including capital advance), trade payables and other
liabilities are in the process of confirmation / reconciliation.
1.8 In accordance with the Accounting Standards (AS-28) on "Impairment
of Assets" as notified under Company (Accounting Standard) Rules, 2006,
during the year the company has assessed useful life of fixed assets in
use and is of the view that no impairment is considered to be necessary
in view of its expected realizable value/value in use.
1.9 Pursuant to adoption of Schedule II to the Companies Act, 2013,
the depreciation charge for the year is lower by Rs. 393.57 lacs.
1.10 Since it is not possible to ascertain with reasonable certainty/
accuracy the amount of accrual in respect of certain insurance and
other claims, the same are continued to be accounted for on settlement/
acceptance basis.
1.11 Capital work in progress including civil work under construction,
electric installation and fittings, Machinery
1.12 The Company has not received full information from vendors
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure relating to amount unpaid as
at year end together with interest paid /payable have been given based
on the information so for available with the company/ identified by the
company management. As required by section 22 of the above said Act the
following information is disclosed:-
1.13 As per the past practice exchange fluctuation on loan/ liability
for acquisition of capital assets continue to be charged to the
Statement of Profit & Loss.
1.14 In the opinion of the Board, the Current Assets, Loans and
Advances appearing in the Company's Balance Sheet as at year end would
have a value on realization in the normal course of business at least
equal to the respective amounts at which they are stated in the Balance
Sheet.
1.15 Employees Benefits: Defined Benefit Plan:
The employee gratuity fund is a defined benefit plan. The present value
of obligation is determined based on actuarial valuation using the
projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
(i) Contribution to defined contribution plan, recognized as expenses
during the year is Rs. 191.01 Lacs (P.Y. Rs. 149.81 Lacs) & as
transferred to Capital Work-in-progress is Rs. Nil Lacs (P.Y. Rs.
8.39Lacs). (ii) The estimate of rate of escalation in salary
considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and
demand in the employment market. The above information is certified by
the actuary. (iii) The principal assumptions are the discount rate &
salary growth rate. The discount rate is generally based upon the
market yields available on Government bonds at the accounting date with
a term that matches that of the liabilities. (iv) The expected return
on plan assets is determined considering several applicable factors
mainly the composition of the plan assets held, assessed risks of
assets management, historical results of return on plan assets and the
policy for plan assets management.
1.16 Research and Development expenditure amounting to Rs.67.83Lacs
(Previous year Rs. 59.78Lacs) have been charged to Statement of Profit
and Loss in respective heads of the accounts (As certified by the
management).
1.17 (a) i) As per the past practice, consumption of raw material and
stores and spares is derived as net of opening stock plus purchases
less closing stock , as certain item-wise records are in process of
updation. ii) in view of para (i) above, closing inventories of stock
in process and finished goods have been considered as taken, valued and
certified by the management after providing against old/non moving
inventories; if any, as assessed / estimated by the management.
(b) Profit /Loss on sale of stores and raw materials remains adjusted
in their respective consumption accounts.
(c) Prior period adjustment (net) Rs.8.99 lacs (Previous year Rs. 28.47
lacs) include Testing charges- Rs 0.62 lac,(Previous year Rs 1.36
lacs)Freight& Commission- Rs NIL (Previous year Rs 0.39 lac) Fees &
Subscription Rs 0.77 lac(Previous year Rs 1.97 lacs) Employee
Welfare-Rs NIL(Previous year Rs 0.89 lac) Postage & Telegram- Rs NIL
(Previous year Rs 0.096 lac) Repair to building & Machinery-Rs 1.17
Lacs (Previous year Rs 3.53 lacs) Recruitment Expenses Rs.0.60
lac(Previous year Rs 0.02 lac) and loss on sale of licenses Rs. NIL
(Previous year Rs 20.22 lacs), Legal and Professional fee Rs 1.03 lacs,
Water Charges Rs 0.27 lac, Brokerage Rs 1.80 lacs, ERP support Charges
Rs 2.73 lacs.
1.18 Segment Reporting
(i) The company has only one business segment namely Textile (Yarn,
Fabric and allied activities). (ii) The segment revenue in
geographical segments considered for disclosure is as follow:
(a) Revenue inside India includes sales to customers located within
India.
(b) Revenue outside India includes sales to customers located outside
India. Information about geographical segments ( by location of
customers)
1.19 As estimated and assessed by the management, certain tax
allowances / deductions have been considered and accordingly Net
Deferred Tax Liability of Rs. 812.44 Lacs (Previous Year Rs. 1647.28
Lacs Net Deferred Tax Liability) have been accounted for the year.
ii) Remuneration (Including Commission) to Chairman Cum Managing
Director Rs. 65.11 Lacs (P.Y Rs. 68.35 Lacs), Chairman Cum Whole Time
Director up to 20th September, 2014 Rs. 29.65 Lacs (P.Y Rs. 64.30
Lacs).
Remuneration to Chief Executive Officer Rs. 39.34 Lacs, Chief Financial
Officer Rs. 18.89 Lacs , Company Secretary Rs. 10.23 Lac.
1.20 Based upon Future plans, expected sales and profitability as
assessed by the management in near future (in next twelve months) which
will enable company to utilize MAT credit entitlement of Rs. 1981.48
Lacs (Previous Year Rs. 1395.78 Lacs )and accordingly the same is shown
under "Short Term Loans & Advances".
1.21 The company has given interest free loan/ advances in the nature
of loan, to employees, in the ordinary course of its business. No loan/
advances in the nature of loans have been given to employees/ others
for the purpose of investment in securities of the company.
1.22 During the year the company has provided Corporate Social
Responsibility (CSR) expenses of Rs.17.96 Lacs, including Rs.16.04 lacs
transferred to Winsome Foundation Trust.
1.23 Figures for the previous year have been re-grouped/rearranged
where ever necessary to make them comparable with current year.
Mar 31, 2014
1 EXPALANATORY NOTES
1.1 (A) Contingent Liabilities, not provided for in respect of (as
certified by the management):
(Rs.in lacs)
| Particulars | 2013-14 2012-13
(i) " Bills discounted with banks 3854.63 2503.58
(ii) Excise / Service Tax Matters 83.34 81.67
(iii) Outstanding Bank Guarantees 554.17 170.17
(iv) Custom duty saved of Rs. 7648.45 Lacs (Previous year Rs. 5460.96
Lacs) for import of capital good made against EPCG license against
which export obligations amounting to Rs. 56695.51 Lacs (Previous year
Rs. 25710.83 Lacs) is pending.
(B) In respect of certain disallowances and additions made by Income
Tax Authorities, appeals are pending before the Appellate authorities
and adjustment if any, will be made after the same are finally
determined.
Considering the past experience, management is of the view that there
will not be any material impact on accounts on settlement/finalization
of tax assessment.
1.2 Estimated amount of contracts remaining to be executed on capital
account and not provided for {(net of advances Rs. 109.00 Lacs)
(Previous year Rs. 3027.52 Lacs)} Rs. 867.00 Lacs (Previous year Rs.
5405.43 Lacs).
1.3 During the year 2010-11, the Company had issued and alloted
12,90,000 nos. GDR''s entitling 6,45,00,000 (now 64,50,000 equity shares
of Rs. 10/- each) nos. equity shares of Re.1/- each at a price of Rs.
6.94/- per share (including premium of Rs. 5.94/-, now premium is Rs.
59.40/- on Rs. 10/- per share). As on 31.03.2013, balance Rs. 4,160.43
lacs which was invested outside India (including balance in bank Rs.
13.35 lacs)
During the year the Company have received in India balance amounting to
Rs. 4626.54 lacs (including exchange gain of Rs 479.47 lacs) and the
same have been utilized for the purpose the issue was made.
1.4 The Company''s new spinning unit (Unit II) comprising of 41088 nos.
of spindles located at Village: Kaundi, Baddi, Dist.: Solan H.P. have
commenced commercial production from 15.11.2013. In Knitting Unit (Unit
III), 18 machines out of Total 25 machines has commenced commercial
production from 01.11.2013.
1.5 The Company has filed an application for the rebate claim which is
disputed and is pending at the office of Joint Secretary, New Delhi
under export promotion scheme of Rs. 26.39 lacs.
1.6 During the year, Company''s 100% wholly owned subsidiary, M/s
Winsome Textile Industries, FZE have discontinued its all business
operations and filed an application for termination of its license with
Hamriyah Free Zone Authority, UAE.
1.7 (i) The Company has taken legal and other persuasive actions for
recovery of certain overdue debtors aggregating to Rs. 85.15 Lacs
(Previous Year Rs.232.70 Lacs) {(including overdue overseas debtors
of amounting to Rs. 26.47Lacs) (Previous Year Rs. 94.09 Lacs)). In
the opinion of the management, these outstanding are good and fully
recoverable and hence considered good.
(ii) Balance of certain receivables (including associate Company Rs.
1088.19) Lacs), loans and advances (including capital advance), trade
payables and other liabilities are in the process of confirmation /
reconciliation.
1.8 In accordance with the Accounting Standards (AS-28) on "Impairment
of Assets" as notified under Company (Accounting Standard) Rules, 2006,
during the year the Company has assessed useful life of fixed assets in
use and is of the view that no impairment is considered to be necessary
in view of its expected realizable value/ value in use.
1.9 Since it is not possible to ascertain with reasonable certainty/
accuracy the amount of accrual in respect of certain insurance and
other claims, the same are continued to be accounted for on settlement/
acceptance basis.
1.10 The Company has not received full information from vendors
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure relating to amount unpaid as
at year end together with interest paid /payable have been given based
on the information so for available with the Company/ identified by the
Company management. As required by section 22 of the above said Act the
following information is disclosed:-
1.11 As per the past practice exchange fluctuation on loan/liability
for acquisition of capital assets continues to be charged to the
statement of profit & loss.
1.12 (i) In the opinion of the Board, the Current Assets, Loans and
Advances appearing in the Company''s Balance Sheet as at year end
would have a value on realization in the normal course of business
at least equal to the respective amounts at which they are stated in
the Balance Sheet.
(ii) As estimated and assessed by the management certain tax
deductions have been and considered accordingly Net Deferred Tax
Liability of Rs. 1647.28 Lacs (Previous year Rs. 207.51 Lacs Net
Deferred Tax Liability) have been accounted.
1.13 Employees Benefits:
Defined Benefit Plan:
The employee gratuity fund is a defined benefit plan. The present value
of obligation is determined based on actuarial valuation using the
projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
(i) Contribution to defined contribution plan, recognized as expenses
during the year is Rs. 149.81 Lacs (P.Y. Rs. 121.25 Lacs) & as
transferred to Capital Work-in-progress is amounting Rs 8.39 Lacs (P.Y.
Nil).
(ii) The estimate of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market. The above information is certified by the actuary.
(iii) The principal assumptions are the discount rate & salary growth
rate. The discount rate is generally based upon the market yields
available on Government bonds at the accounting date with a term that
matches that of the liabilities.
(iv) The expected return on plan assets is determined considering
several applicable factors mainly the composition of the plan assets
held, assessed risks of assets management, historical results of return
on plan assets and the policy for plan assets management.
1.14 Research and Development expenditure amounting to Rs.59.78 Lacs
(Previous year Rs. 48.55 Lacs) have been charged to Statement of Profit
and Loss in respective head of the accounts (As certified by the
management).
1.15 (a) Profit /Loss on sale of stores and raw materials remains
adjusted in their respective consumption accounts. (b) Prior period
adjustment (net) Rs. 28.47 Lacs (Previous year Rs.18.20 Lacs) include
Quality Claims Rs. Nil (Previous year Rs. 9.11 Lacs), legal &
professional Rs. Nil (Previous year Rs. 5.06 Lacs), Rent Rs. Nil
(Previous year Rs. 4.03 Lacs) Testing charges- Rs 1.36 Lacs, Freight& Commission-Rs 0.39 Lacs, Fee & Subscription Rs. 1.97 Lacs, Employee
Welfare-Rs 0.89 Lacs, Postage & Telegram- Rs 0.096 Lacs, Repair to
building & Machinery- Rs 3.53 Lacs, Recruitment Expenses Rs.0.02 Lacs
and loss on sale of licenses Rs. 20.22 Lacs.
1.16 Segment Reporting
(I) The Company is only in one line of business namely Textile (Yarn,
Fabric and allied activities). (Ii) The segment revenue in
geographical segments considered for disclosure is as follow:
(a) Revenue inside India includes sales to customers located within
India.
(b) Revenue outside India includes sales to customers located outside
India. Information about geographical segments ( by location of
customers)
1.17 Related party disclosures
List of "Related party & Relationship disclosures" are given below: (as
identified by the management)
1. (a) Associate Company:-
- Winsome Yarns Limited
(b) Wholly owned Subsidiary Company:-
- Winsome Textile Industries FZE UAE
2. Key management personnel and their relatives.
- Shri Satish Bagrodia Chairman Cum Whole time Director
- Shri Ashish Bagrodia Managing Director
- Shri Manish Bagrodia Son of Chairman & Brother of MD
(Resigned from directorship w.e.f. 28th Sept., 2013)
3. Organisations where Key Management Personnel & their relative have
Significant influence
- Star point Financial Services (Pvt.) Ltd.
1.18 Based upon Future plans, expected sales and profitability as
assured by the management in near future (in next twelve months) which
will enable Company to utilise MAT credit entitlement of Rs.1395.78
Lacs and accordingly the same is shown under "Short Term Loans &
Advances".
1.19 The Company has given interest free loan/ advances in the nature
of loan, to employees, in the ordinary course of its business. No loan/
advances in the nature of loans have been given to employees/ others
for the purpose of investment in securities of the Company.
1.20 The Company has filed a writ petition before Hon''ble Himachal
Pradesh High Court at shimla challenging levy of certain charges and
additional free supply of power under "supplementary implementation
agreement" to be executed by the Company with Government of Himachal
Pradesh for its power project- Manuni Hydro Electric Project (3.5
MW).On Company''s application, Hon''ble High Court have granted interim
stay on 11 Sept, 2013 and currently the matter is sub-judice.
Management is confident that there will not be any material impact of
above on final settlement/decision.
1.21 Figure for the previous year have been re-grouped where ever
necessary to make them comparable with current year.
Mar 31, 2013
1.1 (A) Contingent Liabilities, not provided for in respect of (as
certified by the management):
(Rs. in lacs)
No. Particulars 2012-13 2011-12
(i) Bills discounted with banks 2503.58 1374.86
(ii)Excise / Service Tax Matters 81.67 81.67-
(iii) Surety Bond Executed on behalf
of others (Including Entry Tax) 170.17 225.17
(iv) Custom duty saved of Rs. 5460.96 Lacs (Previous year Rs. 2287.91
Lacs) for import of capital good made against EPCG license against
which export obligations amounting to Rs 25710.83 Lacs (Previous year
Rs. 18209.67 Lacs) is pending.
(B) In respect of certain disallowances and additions made by Income
Tax Authorities, appeals are pending before the Appellate authorities
and adjustment if any, will be made after the same are finally
determined.
Considering the past experience, management is of the view that there
will not be any material impact on accounts on settlement/finalization
of tax assessment.
1.2 Estimated amount of contracts remaining to be executed on capital
account and not provided for {(net of advances Rs.3027.52
Lacs)(Previous year 1000.36 Lacs) }Rs.5405.43 Lacs (Previous year Rs.
2598.79 Lacs).
1.3 During the year 2010-11, the Company had issued and alloted
12,90,000 nos. GDR''s entitling 6,45,00,000 (now 64,50,000 equity shares
of Rs. 10/- each) nos. equity shares of Re.1/- each at a price of Rs.
6.94/- per share (including premium of Rs. 5.94/-, now premium is Rs.
59.40/- on Rs. 10/- per share).
As on 31.03.2012, Rs. 4,586.69/- lacs (including exchange gain) was
pending to be received in India against above issue made. During the
year Rs. 777.14/- lacs {balance pending to be received on 31.03.2013
Rs. 4160.43 lacs (including balance in bank Rs. 13.35 lacs)}, as
explained, have been received (credited to the account of the company)
in India.
Balance amount out of above (lying outside India as on 31st March
2013), pending for utilization for the purpose for which the issue was
made by the company in 2010-11, have directly been transferred/invested
from EURAM Bank to a money market fund.
1.4 Capital Payables amounting to Rs. 366.35 Lacs as assessed by the
company (Previous year 6.31 Lacs) have been reflected under Other Long
Term Liabilities in the balance sheet as the same is payable out of the
proceeds of long-term loans.
1.5 (i) The company has taken legal and other persuasive actions for
recovery of certain overdue debtors aggregating to Rs 232.70 Lacs
(Previous Year Rs. 185.74 Lacs) {(including overdue overseas debtors of
amounting to Rs.94.09 Lacs) (Previous Year 47.13 Lacs)}. In the opinion
of the management, these outstanding are good and fully recoverable.
(ii) Balance of certain receivables (including associate company Rs.
1093.07 Lacs), loans and advances (including capital advance), trade
payables and other liabilities are in the process of confirmation /
reconciliation.
1.6. In accordance with the Accounting Standards (AS-28) on "Impairment
of Assets as notified under Company (Accounting Standard) Rules, 2006,
during the year the company has reassessed useful life of fixed assets
and is of the view that no impairment/reversal is considered to be
necessary in view of its expected realisable value.
1.7 (i) Since it is not possible to ascertain with reasonable
certainty/ accuracy the amount of accrual in respect of certain
insurance and other claims, the same are continued to be accounted for
on settlement/ acceptance basis.
(ii) In the current year a fire occurred on 9th March, 2013 in the
company''s rented warehouse at Ludhiana where Inventory amounting Rs.
94.91 Lacs was destroyed and the company has filed an Insurance Claim
of Rs. 87.29 lacs for the same. The management is confident about full
realisability considering the fact that the goods were secured by the
risk covered under the policy and assessment made by the management.
1.8. (A) Addition to Fixed Assets/Capital work in progress including
civil work under construction, electric installation and fittings,
machinery under installation/erection and pre-operative expenses. The
details of Preoperative expenditure pending allocation/appropriation
are as follows:
(B) The company is in process of implementation of 3.5 MW hydro power
project & a new expansion project comprising a new spinning plant, a
new knitting plant and modernization of existing spinning plant and
expansion of existing dye house in the state of Himachal Pradesh and
expenses incurred for the same till 31st March, 2013 have been included
under the CWIP.
1.9. The Company has not received full information from vendors
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure relating to amount unpaid as
at year end together with interest paid /payable have been given based
on the information so for available with the company/ identified by the
company management. As required by section 22 of the above said Act the
following information is disclosed:-
1.10. As per the past practice exchange fluctuation on loan/liability
for acquisition of capital assets continued to charge to the profit &
loss account.
1.11. (i) In the opinion of the Board, the Current Assets, Loans and
Advances appearing in the company''s Balance Sheet as at year end would
have a value on realization in the normal course of business at least
equal to the respective amounts at which they are stated in the Balance
Sheet.
(ii) As estimated and assessed by the management certain tax
deductions, Net Deferred Tax Liability of Rs. 207.51 Lacs (Previous
year Rs. 159.41 lacs Net Deferred Tax Assets) have been accounted.
1.12. Employees Benefits:
Defined Benefit Plan:
The employee gratuity fund is a defined benefit plan. The present value
of obligation is determined based on actuarial valuation using the
projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
1.13 Research and Development expenditure amounting to Rs. 48.55 Lacs
(Previous year Rs. 48.05 Lacs) have been debited to Statement of Profit
and Loss in respective head of the accounts (As certified by the
management).
1.14. (a) Profit or loss on sale of stores/raw materials remains
adjusted in their respective consumption accounts. (B) Prior period
adjustment (net) Rs. 18.20 Lacs (Previous year Rs.1.58 Lacs) include
Quality Claims Rs.
9.11 Lacs (Previous year Nil), legal & professional Rs.5.06 Lacs
(Previous year Rs. 0.61 Lacs) and Rent Rs. 4.03 Lacs (Previous year
Nil)
1.15. Segment Reporting
(I) The company is only in one line of business namely Textile (Yarn,
Fabric and allied activities). (Ii) The segment revenue in
geographical segments considered for disclosure is as follow:
(a) Revenue inside India includes sales to customers located within
India.
(b) Revenue outside India includes sales to customers located outside
India.
1.16. Related party disclosures
List of "Related party & Relationship disclosures" are given below: (as
identified by the management)
1. (a) Associate Company:-
- Winsome Yarns Limited
(b) Wholly owned Subsidiary Company:-
- Winsome Textile Industries FZE
2. Key management personnel and their relatives.
- Shri Satish Bagrodia Chairman Cum Whole time Director
- Shri Ashish Bagrodia Managing Director
- Shri Manish Bagrodia Son of Chairman, WTD & Brother of MD
3. Organisations where Key Management Personnel & their relative have
Significant influence
- Star point Financial Services (Pvt.) Ltd.
- Roselab Commodities Pvt. Limited.
- Kailashpati Vinimay Private Limited
1.17. Based upon Future plans, management expects to generate taxable
income in the near future (in next twelve months) which will enable it
to utilise MAT credit entitlement of Rs. 788.97 Lacs and accordingly
the same is shown under "Short Term Loans & AdvancesÂ.
1.18. The company has given interest free loan/ advances in the nature
of loan, to employees, in the ordinary course of its business. No loan/
advances in the nature of loans have been given to employees/ others
for the purpose of investment in securities of the company.
1.19. Figures for the previous year have been re-grouped/recast where
ever necessary to make them comparable with those of current year.
Mar 31, 2012
1.1 (A) Contingent Liabilities, not provided for in respect of (as
certified by the management):
(Rs. in lacs)
No. Particulars 2011-12 2010-11
(i) Bills discounted with banks 1374.86 2494.77
(ii) Excise / Service Tax Matters 81.67 258.92
(iii) Surety Bond Executed on behalf
of others (Including Entry Tax) 225.17 80.80
(iv) Custom duty saved of Rs. 2287.91 Lacs ( Previous year Rs. 1657.28
Lacs) for import of capital good made against EPCg license against
which export obligations amounting to Rs. 18209.67 Lacs ( Rs. 13258.29
Lacs) is pending.
(B) In respect of certain disallowances and additions made by Income
Tax Authorities, appeals are pending before the Appellate authorities
and adjustment if any, will be made after the same are finally
determined.
Considering the past experience, management is of the view that there
will not be any material impact on accounts on settlement/finalization
of above.
1.2 Estimated amount of contracts remaining to be executed on capital
account and not provided for {(net of advances Rs.1000.36
Lacs)(Previous year 194.43 Lacs) }Rs. 2598.79 Lacs (Previous year Rs.
1583.54 Lacs).
1.3 Out of the total issue proceeds of the GDRs in the previous year of
Rs.4475.88 Lacs, pending certain compliances Rs.4586.69 Lacs (including
foreign exchange gain) is parked in the Bank "Escrow" Account
outside India as on year end and accordingly the balance issue proceeds
are pending to be utilized. From Escrow Account, Rs. 561.60 Lacs has
been received ( Company is in process of getting the FIRC) during the
year in a separate account in India out of which Rs. 222.91 lacs has
been utilized as per details below:
1.4 In earlier year Company's, Debt Restructuring Proposal (DRP) had
been sanctioned by the respective lenders and is effective from 1st
January 2009 . DRP interlaid includes reschedulement of existing term
loans, relaxation in margin for working capital loan etc.
1.5 (i) The company has taken legal and other persuasive actions for
recovery of certain overdue debtors
aggregating to Rs 185.74 Lacs (Previous Year Rs. 203.40 Lacs)
{(including overdue overseas debtors of amounting to Rs.47.13
Lacs)(Previous Year 39.79 Lacs)}, in the opinion of the management,
these outstanding are good and fully recoverable.
(ii) Balance of certain debtors (including associate company Rs.1086.96
Lacs), loans and advances (including capital advance), creditors and
other liabilities are in the process of confirmation / reconciliation.
1.6. Since it is not possible to ascertain with reasonable certainty/
accuracy the amount of accrual in respect of certain insurance and
other claims, the same are continued to be accounted for on settlement/
acceptance basis.
1.7. In accordance with the Accounting Standards (AS-28) on
"Impairment of Assets" as notified under Company (Accounting
Standard) Rules, 2006, during the year the company has reassessed its
fixed assets and is of the view that no further impairment/reversal is
considered to be necessary in view of its expected realizable value.
1.8. (A) Addition to Fixed Assets/Capital work in progress including
civil work under construction, electric installation
and fittings, machinery under installation/erection and pre-operative
expenses. The details of Preoperative expenditure pending
allocation/appropriation are as follows:
(B) The company is in process of implementation of 3.5 MW hydro power
project in the state of Himachal Pradesh and expenses incurred till
31st March, 2012 have been included in the CWIP.
1.9. The Company has not received full information from vendors
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure relating to amount unpaid as
at year end together with interest paid /payable have been given based
on the information so for available with the company/ identified by the
company management. As required by section 22 of the above said Act the
following information is disclosed:-
1.10. As per the past practice exchange fluctuation on loan/liability
for acquisition of capital assets continued to charge to the profit &
loss account.
1.11. (i) In the opinion of the Board, the Current Assets, Loans and
Advances appearing in the company's Balance Sheet as at year end would
have a value on realization in the normal course of business at least
equal to the respective amounts at which they are stated in the Balance
Sheet.
(ii) Considering prudence and as estimated by the management, Deferred
Tax Assets of Rs. 159.41 Lacs have been created which management feel
realizable in near future.
1.12. Employees Benefits:
Defined Benefit Plan:
The employee gratuity fund is a defined benefit plan. The present value
of obligation is determined based on actuarial valuation using the
projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
(i) Contribution to defined contribution plan, recognized as expenses
during the year is Rs. 102.28 Lacs (P.Y. 92.17 Lacs).
(ii) The estimate of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market. The above information is certified by the actuary.
(iii) The principal assumptions are the discount rate & salary growth
rate. The discount rate is generally based upon the market yields
available on Government bonds at the accounting date with a term that
matches that of the liabilities.
(iv) The expected return on plan assets is determined considering
several applicable factors mainly the composition of the plan assets
held, assessed risks of assets management, historical results of return
on plan assets and the policy for plan assets management.
1.13 (i) Research and Development expenditure amounting to Rs. 48.05
Lacs (Previous year Rs. 58.93 Lacs) have been debited to Profit and
Loss account.( As certified by the management)
(ii) During the year company has invested amounting to Rs 4.29 lacs in
a new subsidiary company created/incorporated by name Winsome Textile
Industries FZE, Sarah (UAE).
1.14. (a) Profit or loss on sale of stores/raw materials remains
adjusted in their respective consumption accounts.
(b) Prior period adjustment (net) Rs. 1.58 Lacs (P.Y. Nil) include fees
& subscription Rs. 0.48 Lacs (P.Y. Nil), legal & professional Rs. 0.61
Lacs (P.Y. Nil) and repair & maintenance Rs. 0.49 (P.Y. Nil)
Note: In view inadequacy of profit during the current year, minimum
remuneration has been paid. Gratuity not included since funded with LIC
along with other employees of the company. Leave encashment not been
included, payable at the end of the tenure.
1.15. Segment Reporting
(i) The company is only in one line of business namely Textile (Yarn
and allied activities).
(ii) The segment revenue in geographical segments considered for
disclosure is as follow:
(a) Revenue inside India includes sales to customers located within
India.
(b) Revenue outside India includes sales to customers located outside
India.
Information about geographical segments ( by location of customers)
1.16. Related party disclosures
List of "Related party & Relationship disclosures" are given below: (as
identified by the management)
1. (a) Associate Company:-
- Winsome Yarns Limited
(b) Wholly owned Subsidiary Company:- - Winsome Textile Industries FZE
w.e.f. 22nd June,2011
2. Key management personnel and their relatives.
- Shri Satish Bagrodia Chairman Cum Whole time Director
- Shri Ashish Bagrodia Managing Director
- Shri Manish Bagrodia Son of Chairman, WTD & Brother of MD
3. Organizations where Key Management Personnel & their relative have
Significant influence
- Star point Financial Services (Pvt.) Ltd.
- Roselab Commodities Pvt. Limited.
- Kailashpati Vinimay Private Limited
*The face value of equity share has been consolidated on 19.07.2011
from Re 1/- to Rs 10/- each. Accordingly the no. of equity shares has
been decreased and also EPS for the preceding period(s) have been
revised/ reinstated.
1.17. Based upon Future plans, management expects to generate taxable
income in the next financial year which will enable it to utilize MAT
credit entitlement of Rs. 458.84 Lacs and accordingly the same is shown
under "Short Term Loans & Advances".
1.18. The company has given interest free loan/ advances in the nature
of loan, to employees, in the ordinary course of its business. No loan/
advances in the nature of loans have been given to employees/ others
for the purpose of investment in securities of the company.
(B) Forward Contracts of Rs. 506.00 Lacs US $10.00 Lacs (Previous Year
Rs. 1237.20 Lacs-US $ 26.80 Lacs) taken for the purpose of hedging of
debtors are outstanding as at 31.03.12.
1.19. During the year ended 31st March 2012, the revised schedule VI
has become applicable to the company. Thus previous year figures have
been reclassified/ recanted suitably. The adoption of revised schedule
VI does not impact recognition & measurement principle followed for
preparation of financial statements except for presentation &
disclosures wherever required.
2. Rights & Restrictions of Shareholders:
2.1 The Company has only one class of Equity Shares having face value
of Rs. 10/- each (Previous Year Rs. 1/- each) in its issued, subscribed
and paid up Equity share capital. Each shareholder is entitled to one
vote per share (except GDR shareholding mentioned at point no. 2.2
below). Each shareholder have the right in profit/surplus in proportion
to amount paid up with respect to share holders.
2.2 The GDR shareholding which is standing in the name of Bank of New
York Mellon, as Depositary, has right to dividend, do not have any
right to vote
2.3 In the event of winding up, the equity shareholders will be
entitled to receive the remaining balance of assets, if any, in
proportionate to their individual shareholding in the paid up equity
capital of the company.
(a) During the year the company allotted NIL equity shares (P.Y.
6,06,00,000 Equity shares of Re. 1/- each at a premium of Rs. 1.40/-
each) upon conversion of equal no of warrants allotted on preferential
basis.
(b) During the year company has issued and allotted NIL Global
Depository Receipt (P.Y. 12,90,000 GDR's representing 6,45,00,000
Equity Shares of Rs. 1/- each at a premium of Rs. 5.94/- per shares)
(Refer Note No. 2.3)
@ Consolidated Re. 1/-fully paid up equity share to fully paid share of
Rs. 10/- each during the year. Accordingly figures of the previous year
have been revised.
Notes:
1. Term Loans and Working Capital Term Loans from Banks of Rs.
12083.32 Lacs (P.Y. Rs. 12837.97 Lacs) are secured by Joint Equitable
Mortgage by deposit of title deeds on company's immovable
properties(present and future) which shall be on first charge basis,
shall rank pari-passu with all banks and a charge by way of
hypothecation of all movable fixed assets subject to prior charge on
specified equipments to banks for term loan. Above Term loans are
further secured by pari-passu second charge on entire current(present
and future) assets of the company. The loan is repayable in quarterly
installments and maturity profile is as follows:
1. Working Capital Demand loans from bank includes Cash Credit,
Packing Credit and short term loans are secured by First Charge by
Hypothecation of Raw Material, Stock in Process, Finished Goods,
Consumable Store and Spares, Goods in Transit, Book Debts and by Second
Charge on entire Fixed Assets of the Company on Pari-passu basis with
Working Capital lenders.
2. The aforesaid credit facilities mentioned above is also guaranteed
by Chairman & Whole Time Director and Managing Director.
Mar 31, 2011
31st March. 2011 31st March. 2010
(Rs. in Lacs) (Rs. in Lacs)
1. (A) Contingent Liabilities,
not provided for in respect of :
(i) Bills discounted with banks 2494.77 1781.42
(ii) Excise / Service Tax Matters 258.92 334.78
(iii) Surety Bond Executed on behalf
of others 80.80 80.80
(iv) Export obligation against import
of Plant & Machinery Under concessional
duty (EPCG scheme) 13258.29 13258.29
(USD $288.14 Lacs) (USD $288.14 Lacs)
(v) Duty saved on above 1657.28 1657.28
(B) In respect of certain disallowances and additions made by Income
Tax Authorities, appeals are pending before the Appellate authorities
and adjustment if any, will be made after the same are finally
determined. Considering the past experience, management is of the view
that there will not be any material impact on accounts on
settlement/finalization of above.
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances Rs. 194.43 Lacs)(Previous
year 76.08 Lacs) Rs. 1583.54 Lacs (Previous year Rs. 1038.86 Lacs ).
3. Capital subsidy received under TUFS has been treated as deferred
income which is recognised on systematic/rational basis in proportion
of the applicable depreciation over the useful life of the respective
assets and is adjusted against the credit to the Profit and Loss
Account. During the year based on companys revised application, the
TUFS Capital Subsidy has increased to Rs. 138.64 Lacs and accordingly
balance amount of Rs. 41.11 Lacs (net) received during the current
year.
4. (i) In terms of the Resolution passed u/s 81(1 A) of the Companies
Act, 1956, the Board of Directors of the Company have issued 75,00,000
Nos. Convertible Warrants of Rs. 10/- each at Rs. 24/- each (including
premium of Rs. 14/- per warrant) at their meeting held on 10th
November, 2008 on receipt of 10% application money (aggregating to Rs.
180 Lacs) out of total amount of Rs. 1800 lacs, pending receipt of
balance 90% amount (Total Rs. 1620 Lacs and Rs. 21.60 per Warrant).
During the previous year 1,44,00,000 Nos. fully paid Equity Shares of
Rs. 1/- each were allotted on 24th March, 2010 on receipt of Rs.
3,45,60,000/- (including Rs. 2,01,60,000/- on account of premium i.e.
Rs. 1.40 per warrant). (ii) During the year, 6,06,00,000 Nos. fully
paid Equity Shares of Rs. 1/- each were allotted on 9th May, 2010 on
receipt full amounting to Rs. 14,54,40,000/- (including premium of Rs.
8,48,40,000/- i.e. Rs. 1.40 per warrant).
5. In terms of resolution passed in the EGM held on 16th June,2010,
company has issued Global Depository Receipts(GDR) during the year.
Pursuing to this, 12,90,000 nos. GDRs @ USD 7.75 each (each GDR
comprises of 50 equity shares at a price of 6.94 per share (including
premium of Rs.5.94 per share)) has been issued and allotted on 31st
March,2011 and listed on the Luxembourg Stock Exchange. Pending certain
compliance, the issue proceeds of the GDRs of Rs. 4475.88 Lacs
including securities premium of Rs. 3830.88 Lacs is parked in the Bank
" Escrow Account" outside India and accordingly this issue proceeds is
pending to be utilized for the purpose.
6. (i) Debt Restructuring Proposal which have been sanctioned by the
respective lenders and is effective from 1st January 2009 interalia
includes reschedulement of existing term loans, relaxation in margin
for working capital loan, carving out of working capital irregularities
and additional finance is in process of implementation. The effect of
Debt Restructuring have been accounted for based on sanctions received.
As per the Debt Restructuring, additional funding of Rs 1800/- lacs
(including premium) have been brought into as Equity Share Capital.
(ii) Issue proceed utilized for the purpose as stipulated and balance
amount have been parked into Working Capital.
7. The company has taken legal and other persuasive actions for
recovery of certain overdue debtors aggregating to Rs 203.40
Lacs(Previous Year Rs. 158.51 Lacs) (including overdue overseas debtors
of amounting to Rs. 39.79 Lacs)(Previous Year 35.96 Lacs), in the
opinion of the management, these outstanding are good and fully
recoverable.
8. Since it is not possible to ascertain with reasonable certainty/
accuracy the amount of accrual in respect of certain insurance and
other claims, the same are continued to be accounted for on settlement/
acceptance basis.
9. Advances recoverable in cash or in kind or for value to be received
includes capital advances amounting to Rs. 484.43 Lacs (Previous Year
Rs. 326.08 Lacs).
10. In accordance with the Accounting Standards (AS-28) on "Impairment
of Assets" issued by the Institute of Chartered Accoun- tants of India,
during the year the company has reassessed its fixed assets and is of
the view that no further impairment/ reversal is considered to be
necessary in view of its expected realisable value.
Above amount is excluding interest on term loan Rs. 46.66 Lacs (P.Y.
Rs.48.24 Lacs ) net of subsidy Rs. 26.76 Lacs (P.Y. Rs. 27.02 lacs).
(B) The company is in process of implementation of 3.5 MW hydro power
project in the state of Himachal Pradesh and expenses incurred till
31st march 2011 have been included in the CWIP.
11. The Company has not received full information from vendors
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure relating to amount unpaid as
at year end together with interest paid /payable have been given based
on the information so for available with the company/ identified by the
company management. As required by section 22 of the above said Act
the following information is disclosed
Sr. No. Particulars 2010-11 2009-10
a) (i) Principal amount remaining unpaid at the end - -
of the accounting year
(ii) Interest due on above
b) The amount of interest paid by the buyer alongwith
amount of payment made to - -
the supplier beyond the appointed date. - -
c) The amount of interest accrued and remaining unpaid - -
at the end of financial year
d) The amount of interest due and payable for the period
of delay in making payment (which have been paid but - -
beyond the due date during the year) but without adding
interest specified under this act.
e) The amount of further interest due and payable in - -
succeeding year, until such interest is fully paid.
12. In view of the Company (Accounting Standard) Rules, issued by the
Ministry of Corporate Affairs for treatment of gain/(loss) on account
of exchange fluctuation on loan/liability for capital assets, the
company continued its policy to charge exchange difference to the
profit & loss account.
13. In the opinion of the Board, the Current Assets, Loans and
Advances appearing in the Companys Balance Sheet as at year end would
have a value on realization in the normal course of business at least
equal to the respective amounts at which they are stated in the Balance
Sheet.
VII. Actuarial / Demographic assumptions:-
(i) Contribution to defined contribution plan, recognized as expenses
during the year is Rs. 92.17 Lacs (P.Y. 88.82Lacs).
(ii) The estimate of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market. The above information is certified by the actuary.
(iii) The principal assumptions are the discount rate & salary growth
rate. The discount rate is generally based upon the market yields
available on Government bonds at the accounting date with a term that
matches that of the liabilities.
(v) The expected return on plan assets is determined considering
several applicable factors mainly the composition of the plan assets
held, assessed risks of assets management, historical results of return
on plan assets and the policy for plan assets management.
14. Research and Development expenditure amounting to Rs. 58.93 Lacs
(Previous year Rs.43.14 Lacs) have been debited to Profit and Loss
account.
15. Balance of certain debtors (including associate company), loans
and advances (including capital advance), creditors other liabilities
are in the process of confirmation / reconciliation.
16. (a) Profit or loss on sale of stores/raw materials remains
adjusted in their respective consumption accounts.
(b) Prior period adjustments (net) Rs. Nil (P.Y. 0.17 Lacs ) include
Processing and Dyeing Charges Rs. Nil (P.Y. Rs. 0.12 Lacs) and Repairs
to Plant & Machinery Rs. Nil (P.Y. Rs. 0.05 Lacs),
Note : In view of inadequacy of profit during the current year, minimum
remuneration has been paid. Gratuity not included since funded with LIC
along with other employees of the Company. Leave encashment not been
included, payable at the end of the tenure.
(b) During the year, Central Government approval has been received in
respect of remuneration paid to Chairman and Whole Time Director.
17. Segment Reporting
(i) The Company is only in one line of business namely Yarn and allied
activities.
(ii) The segment revenue in geographical segments considered for
disclosure is as follow:
(a) Revenue inside India includes sales to customers located within
India.
(b) Revenue outside India includes sales to customers located outside
India.
18. Related party disclosures
List of "Related party & Relationship disclosures" are given below: (as
identified by the management)
1. (a) Associate Company:-
- Winsome Yams Limited
2. Key management personnel and their relatives.
- Shri Satish Bagrodia Chairman Cum Whole time director
- Shri Ashish Bagrodia Managing Director
- S hri Manish Bagrodia Son of Chairman & WTD & Brother of MD
- Smt. Shilpa Bagrodia Wife of MD
3. Organisations where Key Management Personnel & their relative have
Significant influence
- Star point Financial Services (Pvt.) Ltd.
- Roselab Commodities Pvt. Limited.
- Kailashpati Vinimay Private Limited
19. The company has given interest free loan/ advances in the nature of
loan, to employees, in the ordinary course of its business. No loan/
advances in the nature of loans have been given to employees/ others
for the purpose of investment in securities of the company.
20 (B) Forward Contracts of Rs. 1237.20 Lacs US $26.80 Lacs (Previous
Year Rs.797.72 Lacs-US $17.05 Lacs) taken for the purpose of hedging of
debtors are outstanding as at 31.03.11.
21. Figures for the previous year have been re-grouped/recast wherever
necessary to make them comparable with those of current year.
22. Schedule 1 to 14 form an integral part of the Balance Sheet and
Profit & Loss Account.
Mar 31, 2010
1. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances 76.08 Lacs)(Previous year
Rs 304.07lacs) Rs. 1038.86 Lacs (Previous year Rs. 386.12 Lacs).
2. Depreciation on certain Plant & Machinery is provided by
considering it as continuous process plant based on technical
assessment.
3. Capital subsidy received under TUFS has been treated as deferred
income which is recognised on systematic/rational basis in proportion
of the applicable depreciation over the useful life of the respective
assets and is adjusted against the depreciation/credit to the Profit
and Loss Account.
4.(A)(i) In terms of the Resolution passed u/s 81 (1 A) of the
Companies Act, 1956, the Board of Directors of the Company have issued
75,00,000 Nos. Convertible Warrants of Rs. 10/- each at Rs. 24/- each
(including premium of Rs. 14/- per warrant) at their meeting held on
10th November, 2008 on receipt of 10% application money (aggregating to
Rs. 180 Lacs) out of total amount of Rs. 1800 lacs, pending receipt of
balance 90% amount (Total Rs. 1620 Lacs and Rs. 21.60 per Warrant).
During the year 1,44,00,000 Nos. fully paid Equity Shares of Rs. 1/-
each were allotted on 24th March, 2010 on receipt of Rs. 3,45,60,000/-
(including Rs. 2,01,60,000/- on account of premium i.e. Rs. 1.40 per
warrant).
(ii) Subsequent to the Balance sheet date, 6,06,00,000 Nos. fully paid
Equity Shares of Rs. 1/- each were alloted on 9th May, 2010 on receipt
full amounting to Rs. 14,54,40,000/- (including premium of Rs.
8,48,40,000/- i.e. Rs. 1.40 per warrant). Till 31st March, 2010
received amounting to Rs. 6,44,88,000/- (including 10% received in
previous year) is shown as Convertible Warrant).
5.(B) In terms of the Resolution passed by the shareholders at their
meeting held on 11th September, 2009, fully paid Equity Share of Rs.
10/- each of company have been sub-divided into 10 nos. fully paid
Equity Shares of Rs. 1/- each.
6. (i) Debt Restructuring Proposal which have been sanctioned by the
respective lenders and is effective from 1st January 2009 interalia
includes reschedulement of existing term loans, relaxation in margin
for working capital loan, carving out of working capital irregularities
and additional finance is in process of implementation. The effect of
Debt Restructuring have been accounted for based on sanctions received.
As per the Debt Restructuring, additional funding of Rs 1800/- lacs
(including premium) have been brought into as Equity Share Capital,
(including subsequent to the Balance Sheet date of amounting to
Rs.809.52 lacs)
(ii) Issue proceed utilized for the purpose as stipulated and balance
amount have been parked into Working Capital.
7. The company has taken legal and other persuasive actions for
recovery of certain overdue debtors aggregating to Rs. 158.51 lacs
(including overdue overseas debtors of amounting to Rs.35.96 lacs), in
the opinion of the management, these outstanding are good and fully
recoverable.
8. Since it is not possible to ascertain with reasonable certainty/
accuracy the amount of accrual in respect of certain insurance and
other claims, the same are continued to be accounted for on settlement/
acceptance basis.
9. Advances recoverable in cash or in kind or for value to be received
includes advances against capital orders amounting to Rs. 76.08 Lacs
(Previous Year Rs.304.07 Lacs).
10. In accordance with the Accounting Standards (AS-28) on "Impairment
of Assets" issued by the Institute of Chartered Accountants of India,
during the year the company has reassessed its fixed assets and is of
the view that no further impairment/reversal is considered to be
necessary in view of its expected realisable value.
11. In view of the Company (Accounting Standard) Rules, issued by the
Ministry of Corporate Affairs for treatment of gain/(loss) on account
of exchange fluctuation on loan/liability for capital assets, the
company continued its policy to charge exchange difference to the
profit & loss account.
12. In the opinion of the Board, the Current Assets, Loans and
Advances appearing in the Companys Balance Sheet as at year end would
have a value on realization in the normal course of business at least
equal to the respective amounts at which they are stated in the Balance
Sheet.
13. Research and development expenditure amounting to Rs. 43.14 lacs
(Previous year Rs. 45.76 lacs) have been debited to Profit and Loss
Account.
14. Balance of certain debtors (including associates), loans and
advances (including capital advance), creditors, Stock with job worker
and other liabilities are in the process of confirmation /
reconciliation.
15. (a) Profit or loss on sale of stores/ raw materials remains
adjusted in their respective consumption accounts.
(b) Prior period adjustments (net) of Rs. 0.17 lacs (PY 8.57 lacs)
include Processing and Dyeing Charges Rs. 0.12 Lacs (PY. Nil) Repairs
to Plant & Machinery Rs. 0.05 Lacs (RY Nil), Legal & Professional
Charges Rs. Nil (PY Rs.5.87 Lacs), Advertisement and Sales Promotion
Rs. Nil (RY Rs 2.09 Lacs), Postage and Telegram Rs. Nil (RY Rs. 0.61
Lacs)
16. Segment Reporting
(i) The Company is only in one line of business namely Yarn and allied
activities.
(ii) The segment revenue in geographical segments considered for
disclosure is as follow :
(a) Revenue inside India includes sales to customers located within
India.
(b) Revenue outside India includes sales to customers located outside
India.
17. The company has given interest free loan/ advances in the nature of
loan, to employees, in the ordinary course of its business. No loan/
advances in the nature of loans have been given to employees/ others
for the purpose of investment in securities of the company.
18(B)Forward contracts Rs. 797.72 lacs - US$ 17.05 Lacs (Previous Year
Rs. 156.41 Lacs - US$ 3.00 Lacs) taken for the purpose of hedging of
debtors are outstanding as at 31.03.2010.
19. Figures for the previous year have been re-grouped/recast wherever
necessary to make them comparable with those of current year.
20. Schedule 1 to 15 form an integral part of the Balance Sheet and
Profit & Loss Account.