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Notes to Accounts of Wires and Fabriks (S.A.) Ltd.

Mar 31, 2015

1.1 Rights attached to Equity Shares

The Company has only one class of shares ( Issued), having face value of Rs. 10/- each. Each holder of Equity Shares is entitled to one vote per share. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity Shareholder are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

1.2 The Board of Directors at its meeting held on 27.05.2015 has recommended Dividend of Rs 1.80 per equity share for the year.

2.1 Term Loans from banks are secured by joint equitable mortgage of immovable properties, present and future, ranking pari passu and hypothecation of fixed assets and second charge over current assets of the company.

3.1 Working Capital Loans from banks are secured against hypothecation of raw materials, finished goods, work-in-process,packing materials, book debts, bills for collection and other current assets and second pari passu charge over fixed assets of the company.

4.1 Unclaimed Dividend does not include any amount, due and outstanding, to be credited to Investor Education & Protection Fund.

4.2 a) The Buildings and Plant & Machinery (including Electric Installations) of Jaipur Unit were revalued as on 31st March, 1994 and 1st January, 2006 respectively, as a result the Net Book Value of the respective Assets were increased and the same was credited to the Revaluation Reserve. There after Company is regularly setting off the Additional Depreciation on account of Revaluation by withdrawing the equivalent amount from Revaluation Reserve, thus having no impact on the Profits of the Company. As per the Independent Valuer's Report (considering the Inflation and Devaluation of Rupee), the Revaluation considered in 1994 and 2006 does not reflect the True Market Value of respective Assets as on 1st April, 2014. Accordingly, the amount of Revaluation made earlier is reversed. As a result an amount of Rs. 28,17,44,332 from Gross Block and Rs. 23,71,27,789 from Accumulated Depreciation as on 1st April 2014 is reversed and shown as deduction and the net amount of Rs. 4,46,16,543 has been adjusted from the Revaluation Reserve.

b) Pursuant to the enactment of Companies Act, 2013 the Company has applied the estimated useful lives as specified in Schedule II. Accordingly, the unamortised carrying value is being depreciated over the revised / remaining usefull lives. The Written Down Value of the Fixed Assets whose lives have expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of Profit & Loss Account amounting to Rs. 53,09,865.

c) Capital Work- in Progress includes Project & Pre- Operative Expenditure Rs. 33,64,064 ( Previous year Rs. 36,78,385) , pending allocation.

d) Intangible Assets under development includes Project & Pre-Operative Expenditure Rs. 4,88,758 ( Previous year Rs. 4,73,758) , pending allocation.

e) Premises purchased / acquired at New Delhi is yet to be transferred in company's name in the Revenue Records.

5.1 Balance with Banks includes Unclaimed Dividend of Rs 11,30,188 ( Previous year Rs 10,35,911)

5.2 Fixed Deposits Receipts for Rs 2,10,87,000 (Previous year Rs. 2,10,22,000) are pledged with Banks as Security and having maturity of more than 12 months.

6.1 Advance Tax shown as net of tax provisions and after adjustment of MAT credit entitlement Rs 39,57,000 ( Previous year Rs.56,93,781).

7 CONTINGENT LIABILITIES AND COMMITMENTS ( to the extent not provided for) :

7.1 Contingent Liabilities :

a) Guarantees issued by banks for Rs. 53,29,078 Rs. 24,35,721

b) Letters of Credits issued by banks Rs. 13,53,686 Rs. 70,60,879

c) Claims against the Company not acknowledged as debt Rs. 6,73,269 Rs. 6,47,109

d) Demands / Claims by various Government Authorities not acknowledge as debt :

i) Sales Tax of Rs. 49,05,193 (Rs. 75,07,914 ) pending appeals on account of non submission of declaration forms and other matters.

ii) Entry Tax Rs Nil (Rs. 23,07,141 ) pending appeals on account of non submission of declaration forms and other matters.

iii) Excise Duty Rs. S,20,230 (Rs. S,20,230 ) pending appeals.

7.2 COMMITMENTS :

a) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs. 48,21,543 (Rs. 24,63,196), advances paid Rs. 5,27,922 (Rs. 5,87,S00 ).

8 Purchase of Raw Materials includes transfer from Trading Goods Rs. 2,36,49,912 (Rs. 2,21,33,927).

9 SEGMENT INFORMATION :

i) The Company is organised into two main business segments :

a) Paper Mill Products - Comprising of Technical Textiles - Finished Woven Wire Cloth, Chemicals and Equipments mainly for Paper Mills.

b) Wind Power - Comprising of Wind Power

Segment has been identified and reported after taking into account the class of customers for the products & services, the differing risks & returns and the organisation structure.

ii) Segment revenue includes sales, income from services rendered and export incentives. Inter-segment revenue is recognised on the basis of prevailing market rates.

iii) Segment revenues, results, assets and liabilities include the respective amounts identifiable to reportable segments and amounts allocated on a reasonable basis.

10 Information regarding related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are given below :

10.1 Names of the related parties with whom transactions were carried out during the year and description of relationship:

a) Enterprises over which Key Management Personnel exercises significant influence :

i) Kingsley Industries Ltd.

ii) WMW Metal Fabrics Ltd.

iii) W & F Securities Pvt Ltd. (Holding Company)

iv) Nathmall Jankilal

b) Key Management personnel

i) Mr. B K Khaitan (Resigned with effect from 31.08.2014)

ii) Mr. K K Khaitan

iii) Mr. M K Khaitan

c) Relatives of Key Management personnel

i) Mr. Devesh Khaitan S/o Mr. K.K. Khaitan

ii) Mr. Madhur Krishna Khaitan S/o Mr. B.K. Khaitan (Resigned with effect from 31.08.2014)

11 Figures in brackets represent figures for the previous year.

12 Previous year's figures have been rearranged and regrouped wherever practicable and considered necessary.


Mar 31, 2014

1. Rights attached to Equity Shares

The Company has only one class of shares ( Issued), having face value of Rs. 10/- each. Each holder of Equity Shares is entitled to one vote per share. The Dividend proposed by the Board of Directors is subject to the approval of the sharehold- ers in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity Shareholder are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. The Board of Directors at its meeting held on 17.0S.2014 has recommended Dividend of Rs. 1.80 per equity share for the year.

3. Term Loans from banks are secured by joint equitable mortgage of immovable properties, present and future, ranking pari passu and hypothecation of fixed assets and second charge over current assets of the company.

4. Working Capital Loans from banks are secured against hypothecation of raw materials, finished goods, work-in-process, packing materials, book debts, bills for collection and other current assets and second pari passu charge over fixed assets of the company.

5. Unclaimed Dividend does not include any amount, due and outstanding, to be credited to Investor Education & Protection Fund.

6. Balance with Banks includes Unclaimed Dividend of Rs. 10,3S,911 (Previous year Rs. 9,50,315)

7. Fixed Deposits Receipts for Rs. 2,10,22,000 (Previous year Rs. 9,00,000) are pledged with Banks as Security and having maturity of more than 12 months.

8. Advance Tax shown as net of tax provisions and after adjustment of MAT credit entitlement Rs. 56,93,781 (Previous year Rs. 95,97,042).

9 CONTINGENT LIABILITIES AND COMMITMENTS ( to the extent not provided for) :

10. Contingent Liabilities :

a) Guarantees issued by banks for Rs. 24,3S,721 (Rs. 17,33,182)

b) Letters of Credits issued by banks for Rs. 70,60,879 (Rs. 1,19,41,083)

c) Claims against the Company not acknowledged as debt Rs. 6,47,109 (Rs. 6,20,949)

d) Demands / Claims by various Government Authorities not acknowledged as debt :

i) Sales Tax and Entry Tax Rs. 98,1S,0SS (Rs. 46,91,661) pending appeals on account of non submission of declaration forms and other matters.

ii) Excise Duty Rs. S,20,230 (Rs. S,20,230) pending appeals.

iii) Income Tax Rs. Nill (Rs. 11,21,533) pending rectification.

11. Commitments :

a) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs. 24,63,196 (Rs. 25,59,456) advances paid Rs. 5,87,500 (Rs. 25,59,456).

12 EMPLOYEES BENEFITS :

a) As per the Accounting Standard IS " Employee benefit" the disclosures as defined in Accounting Standard are given below:

i) Defined Contribution Plans

Contribution to Defined Contribution Plans are recognised as expenses and charged off in Profit & Loss Account.

ii) Defined Benefit Plans

Employees Gratuity Fund Scheme and Leave encashment are considered as defined benefit plans.The present value of obligation are recognised as per the actuarial valuation.

13 Purchase of Raw Materials includes transfer from Trading Goods Rs. 2,21,33,927 (Rs. 1,86,68,378).

14 SEGMENT INFORMATION :

i) The Company is organised into two main business segments :

a) Paper Mill Products - Comprising of Technical Textiles Finished Woven Wire Cloth, Chemicals and Equipments mainly for Paper Mills.

b) Wind Power - Comprising of Wind Power

Segment has been identified and reported after taking into account the class of customers for the products & services, the differing risks & returns and the organisation structure.

ii) Segment revenue includes sales, income from services rendered and export incentives. Inter-segment revenue is recognised on the basis of prevailing market rates.

iii) Segment revenues, results, assets and liabilities include the respective amounts identifiable to reportable segments and amounts allocated on a reasonable basis.

15. Information about Secondary Business Segment :

i) The segment revenue in the geographical segment considered for disclosure are as follows :

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

16 Figures in brackets represent figures for the previous year.

17 Previous year''s figures have been rearranged and regrouped wherever practicable and considered necessary.


Mar 31, 2013

1 CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

1.1 Contingent Liabilities :

a) Guarantees issued by banks for Rs. 17,33,182 (Rs. 14,39,795)

b) Letters of Credits issued by banks for Rs. 1,19,41,083 (Rs. 90,85,524)

c) Claims against the Company not acknowledged as debt Rs. 6,20,949 (Rs. 5,94,789)

d) Demands / Claims by various Government Authorities not acknowledge as debt:

i) Sales Tax Rs. 46,91,661 (Rs. 1,00,94,433) pending appeals on account of non submission of declaration forms

and other matters. ii) Excise Duty Rs. 5,20,230 (Rs. Nil) pending appeals. iii) Income Tax Rs. 11,21,533 (Rs. 5,05,532) pending rectification.

1.2 Commitments:

a) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs. 25,59,456 (Rs. 25,59,456) advances paid Rs. 25,59,456 (Rs. 25,59,456).

2 EMPLOYEES BENEFITS :

a) As per the Accounting Standard 15 " Employee benefit" the disclosures as defined in Accounting Standard are given below: i) Defined Contribution Plans :

Contribution to Defined Contribution Plans are recognised as expenses and charged off in Profit & Loss Account. ii) Defined Benefit Plans :

Employees Gratuity Fund Scheme and Leave encashment are considered as defined benefit plans.The present value of obligation are recognised as per the actuarial valuation. iii) The Employee Gratuity Fund Scheme is managed by Life Insurance Corporation of India (LIC). The following figures are as per actuarial valuation report performed by LIC and recoginsed in the financial statements :

3 Purchase of Raw Materials includes transfer from Trading Goods Rs. 1,86,68,378 (Rs. 109,75,216).

4 SEGMENT INFORMATION :

i) The Company is organised into two main business segments :

a) Paper Mill Products - Comprising of Finished Woven Wire Cloth, Chemicals and Equipments mainly for Paper Industry.

b) Wind Power - Comprising of Wind Power

Segment has been identified and reported after taking into account the class of customers for the products & services, the differing risks & returns and the organisation structure.

ii) Segment revenue includes sales, income from services rendered and export incentives. Inter-segment revenue is recognised on the basis of prevailing market rates.

iii) Segment revenues, results, assets and liabilities include the respective amounts identifiable to reportable segments and amounts allocated on a reasonable basis.

5.1 a) Information about Secondary Business Segment:

i) The segment revenue in the geographical segment considered for disclosure are as follows :

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

6 Information regarding related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are given below :

6.1 Names of the related parties with whom transactions were carried out during the year and description of relationship:

a) Enterprises over which Key Management Personnel exercises significant influence :

i) Kingsley Industries Ltd.

ii) WMW Metal Fabrics Ltd.

iii) W & F Securities Pvt. Ltd. ( Holding Company)

iv) W & F Chemicals Ltd.

v) WMW Mercantile Pvt. Ltd.

vi) Nathmall Jankilal

b) Key Management personnel i) Mr. B K Khaitan

ii) Mr. K K Khaitan iii) Mr. M K Khaitan

c) Relatives of Key Management personnel

i) Mr. Devesh Khaitan S/o. Mr. K.K. Khaitan

ii) Mr. Madhur Krishna Khaitan S/o. Mr. B.K. Khaitan

7 Figures in brackets represent figures for the previous year.

8 Previous year''s figures have been rearranged and regrouped wherever practicable and considered necessary.


Mar 31, 2012

1.1 Rights attached to Equity Shares

The Company has only one class of shares ( Issued), having face value of Rs. 10/- each. Each holder of Equity Shares is entitled to one vote per share. The Dividend proposed by the Board of Directors is subject to the approval of the sharehold- ers in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity Share- holder are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in preperation to their shareholding.

1.2 The Board of Directors at its meeting held on 09.08.2012 has recommended Dividend of Rs. 1.80 per equity share for the year.

2.1 Term Loans from banks are secured by joint equitable mortgage of immovable properties, present and future, ranking pari passu and hypothecation of fixed assets , (save and except certain specified assets ( as indicated in 3.2 below) and second charge over current assets of the company.

2.2 Term Loans from bank - availed under specific scheme are secured by exclusive first charge by way of hypothecation of the related assets purchased .

2.3 Term Loans from banks are re-payable in quarterly installments, maturity profile are given here in under:

3.1 Working Capital Loans from banks are secured against hypothecation of raw materials, finished goods, work-in- process,packing materials, book debts ,bills for collection and other current assets and second pari passu charge over fixed assets of the company.

4.1 Unclaimed Dividend does not include any amount, due and outstanding, to be credited to Investor Education & Protection Fund,

5.1 a) The Gross Block of Fixed Assets includes Rs 207,780,730 @ Previous year Rs 207,780,730) on account of revaluation of Fixed Assets. Consequent to the said revaluation an additional charge of depreciation of Rs. 28,371,784 @ previous year Rs 28,406,401) during the year, which is set off by withdrawing the equivalent amount from Revaluation Reserve. This has no impact on profit for the year.

b) Capital Work- in Progress includes Project & Pre- Operative Expenditure Rs.1,4S7,6S2 @ Previous year Rs. 1,S97,779), pending allocation.

5.1 Balance with Banks includes Unclaimed Dividend of Rs 878179 ( Previous year Rs 818421)

5.2 Fixed Deposits are for maturity of more than 12 months and includes interest accrued Rs. 74404 ( Previous year Rs. 2S6964).

15.3 Fixed Deposits Receipts for Rs 900000 (Previous year Rs..8S8,286) are pledged with Banks as Security against Letters of Guarantee etc.

6 Contingent Liabilities and Commitments ( to the extent not provided for) :

6.1 Contingent Liabilities :

a) Guarantees issued by banks for Rs. 1,439,795 (Rs. 1,677,655 )

b) Letters of Credits issued by banks for Rs 9,085,524 (Rs. 3,821,669 )

c) Claims against the Company not acknowledged as debt Rs 594,789 (Rs. 568,629 )

d) Demands / Claims by various Government Authorities not acknowledge as debt :

i) Sales Tax Rs 10,094,433 (Rs. 1,805,516 ) pending appeals.

ii) Service Tax Rs Nil (Rs. 265,647 ) pending appeal.

iii) Excise Duty Rs Nil (Rs. 1,407,362 ) pending appeals.

iv) Income Tax Rs 505,532 (Rs. 98,304 ) pending appeal.

6.2 Commitments :

a) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs 2,559,456 (Rs. 2,559,456), advances paid Rs 2,559,456 (Rs. 2,559,456 ).

7 Employees Benefits :

As per the Accounting Standard 1S " Employee benefit" the disclosures as defined in Accounting Standard are given below:

i) Contribution to Defined Contribution Plans are recognised as expenses and charged off in Profit & Loss Account.

ii) The present value of Obligation for Defined Benefit Plans (Gratuity & Leave encashment) are recognised as per the actuarial valuation.

iii) The Employee Gratuity Fund Scheme is managed by Life Insurance Corporation of India (LIC) . The following figures are as per actuarial valuation report performed by LIC and recoginsed in the financial statements :

8 Purchase of Raw Materials includes transfer from Trading Goods Rs. 10,975,216 (Rs. 24,415,027)

9 SEGMENT INFORMATION :

i) The Company is organised into two main business segments :

a) Paper Mill Products - Comprising of Finished Woven Wire Cloth, Chemicals and Equipments mainly for Paper Industry.

b) Wind Power - Comprising of Wind Power

Segment has been identified and reported after taking into account the class of customers for the products & services, the differing risks & returns and the organisation structure. Other Industrial Products, not reportable, being less than required persentage as per Accounting Standard - 17.

ii) Segment revenue includes sales, income from services rendered and export incentives. Inter-segment revenue is recognised on the basis of prevailing market rates.

iii) Segment revenues, results, assets and liabilities include the respective amounts identifiable to reportable segments and amounts allocated on a reasonable basis.

9.2 b) Information about Secondary Business Segment :

i) The segment revenue in the geographical segment considered for disclosure are as follows :

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

10 Information regarding related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are given below :

10.1 Names of the related parties with whom transactions were carried out during the year and description of relationship:

a) Enterprises over which Key Management Personnel exercises significant influence :

i) Kingsley Industries Ltd

ii) WMW Metal Fabrics Ltd

iii) W & F Securities Pvt Ltd ( Holding Company)

iv) Nathmall Jankilal

v) WMW Mercantile Pvt. Ltd

b) Key Management personnel

i) Mr. B K Khaitan

ii) Mr. K K Khaitan

iii) Mr. M K Khaitan

c) Relatives of Key Management personnel

i) Mr. Devesh Khaitan S/o Mr. K.K. Khaitan

ii) Mr. Madhur Krishna Khaitan S/o Mr. B.K. Khaitan

11 Figures in brackets represent figures for the previous year.

12 Previous year's figures have been rearranged and regrouped wherever practicable and considered necessary.


Mar 31, 2011

1) Contingent Liabilities not provided for in respect of:

a) Guarantees issued by banks for Rs.1,677,655 (Rs.2,298,083)

b) Letters of Credits issued by banks for Rs.3,821,669 (Rs.530,712)

c) Claims against the Company not acknowledged as debt Rs.568,629 (Rs.542,469)

d) Demands / Claims by various Government Authorities not acknowledge as debt : i) Sales Tax Rs.1,805,516 (Rs.1,177,539) pending appeals.

ii) Service Tax Rs.265,647 (Rs.692,229) pending appeal.

iii) Excise Duty Rs.1,407,362 (Rs.1,407,632) pending appeals.

iv) Income Tax Rs.98,304 (Rs. Nil) pending appeal.

2) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs.2.559,456 (Rs.3,628,956i, advances paid Rs.2,559,456 (Rs.2,687,456).

3) a) Term Loans due within succeeding one year Rs.44,584,465 (Rs.23,688,369).

b) Term Loans from banks are secured by joint mortgage by deposit of title deeds in respect of immovable properties. present and future, ranking pari passu and hypothecation of fixed assets, (save and except certain specified assets as indicated in (c) below) and second charge over current assets of the company.

c) Term Loans from bank - availed under Car Loan Scheme are secured by exclusive first charge by way of hypothecation of the related assets purchased.

d) Working Capital Loans from banks are secured against hypothecation of raw materials, finished goods, work-in- process, packing materials, book debts, bills for collection and other current assets and second charge over fixed assets of the Company.

4) Plants Machinery and Electric Installation of Jaipur Unit were revalued as on 1st January, 2006 by an independent approved valuer on the basis of market value (referred to as "Depreciated Replacement cost" in Valuers Report). The resultant increase in the net book value of such assets by Rs.20,77,80,730 was credited to Revaluation Reserve.

5) Fixed Deposits Receipts of Rs.858,286 (Rs.858,286) are pledged with Banks as Security against Letters of Guarantee etc.

6) Loans and Advances includes Balance with Central Excise Department Rs.4,936,368 (Rs.8,133,567).

7) b) Unclaimed Dividend does not include any amount, due and outstanding, to be credited to Investor Education & Protection Fund.

8) a) Purchase of Raw Materials includes transfer from Trading Goods Rs.24,415,027 (Rs.34,230,585).

b) Rebate on Sales and Compensation is net of Rs.459,633 (Rs.751,652).

c) Interest on Fixed Loans is net of Interest transfer to Pre-operative expenses Nil (Rs.3,603,972).

d) Miscellaneous Expenses include :-

a) Loss on account of foreign exchange fluctuation (net) Rs.279,210; previous year (Rs.Nil).

9) a) Export incentive included in Sales of Rs.14,543,931, (Rs. Nil) which includes relating to previous years Rs.3.570,388.

b) Miscellaneous Income includes, gain on account of foreign exchange fluctuation (net) Rs. Nil; previous year Rs.3,538,062.

c) Profit on sale of assets (net) includes profit on transfer of a portion of Lease hold Land and Buildings thereon Rs. 10,997,747 (Rs. Nil).

9) Computation of Net Profit in accordance with Section 349 of the Companies Act, 1956 is not required as remuneration has been paid as per Section II of Part II of Schedule XIII of the Companies Act, 1956 to wholetime Directors.

10) As per the Accounting Standard 15 " Employee benefit" the disclosures as defined in Accounting Standard are given below:

a) Contribution to Defined Contribution Plans are charged off in Profit & Loss Account.

b) The present value of Obligation for Defined Benefit Plans (Gratuity & leave encashment) are recognised as per the actuarial valuation.

11) a) Segment Information about Primary Business Segment

NOTES:

i) The Company is organised into two main business segments :

a) Paper Mill Products - Comprising of Finished Woven Wire Cloth, Chemicals and Equipments for Paper Industry.

b) Wind Power - Comprising of Wind Power.

Segment has been identified and reported after taking into account the class of customers for the products & services, the differing risks & returns and the organisation structure. Other Industrial Products, not reportable, being less than required percentage as per Accounting Standard - 17. shown as Unallocated.

ii) Segment revenue includes sales, income from services rendered and export incentives. Inter-segment revenue is recognised on the basis of prevailing market rates.

iii) Segment revenues, results, assets and liabilities include the respective amounts identifiable to reportable segments and amounts allocated on a reasonable basis.

b) Information about Secondary Business Segment.

NOTES:

i) The segment revenue in the geographical segment considered for disclosure are as follows :

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

ii) The Company has no assets located outside India.

12) Information regarding related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are given below :

1 Names of the related parties with whom transactions were carried out during the year and description of relationship:

a) Enterprises over which Key Management Personnel exercises significant influence :

i) Kingsley Industries Ltd.

ii) WMW Metal Fabrics Ltd.

iii) W & F Securities Pvt Ltd (Holding Company)

iv) Nathmall Jankilal

v) WMW Mercantile Pvt. Ltd.

b) Key Management personnel

i) Mr. B K Khaitan

ii) Mr. K K Khaitan

iii) Mr. M K Khaitan

c) Relatives of Key Management personnel

i) Mr. Devesh Khaitan S/o Mr. K.K. Khaitan

ii) Mr. Madhur Krishna Khaitan S/o Mr. B.K. Khaitan

13) Figures in brackets represent figures for the previous year.

14) Previous year's figures have been rearranged and regrouped wherever practicable and considered necessary.


Mar 31, 2010

1) Contingent Liabilities not provided for in respect of :

a) Guarantees issued by banks for Rs. 2,298,083 (Rs. 1,749,198)

b) Letters of Credits issued by banks for Rs 530,712 (Rs. 56,814,116)

c) Claims against the Company not acknowledged as debt Rs 542,469 (Rs.730,176)

d) Demands /Claims by various Government Authorities not acknowledged as debt:

i) Sales Tax Rs 1,177,539 (Rs. 823,399) pending appeals.

ii) Service Tax Rs 692,229 (Rs. 115,545) pending appeals. Paid under protest Rs. Nil (Rs. 58,000)

iii) Excise Duty Rs 1,407,362 (Rs. 1,660,602) pending appeals.

iv) Income Tax Rs Nil (Rs. 1,665,222) pending appeals.

2) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs. 3,628,956 (Rs. 47,071,424), advances paid Rs 2,687,456 (Rs. 9,633,592).

3) a) Term Loans due within succeeding one year Rs 23,688,369 (Rs.62,839,506).

b) Term Loans from banks are secured by joint mortgage by deposit of title deeds in respect of immovable properties, present and future, ranking pari passu and hypothecation of fixed assets , (save and except certain specified assets as indicated in (c) below) and second charge over current assets of the company.

c) Term Loans from bank - availed under Car Loan Scheme are secured by exclusive first charge by way of hypothecation of the related assets purchased.

d) Working Capital Loans from banks are secured against hypothecation of raw materials, finished goods, work-in- process, packing materials, book debts, bills for collection and other current assets and second charge over fixed assets of the Company.

4) Plant & Machinery and Electric Installation of Jaipur Unit were revalued as on 1st January, 2006 by an independent approved valuer on the basis of market value (referred to as "Depreciated Replacement cost" in Valuers Report). The resultant increase in the net book value of such assets by Rs.20,77,80,730 was credited to Revaluation Reserve.

5) Fixed Deposits Receipts of Rs 858,286 (Rs.858,286) are pledged with Banks as Security against Letters of Guarantee etc.

6) Loans and Advances includes Balance with Central Excise Department Rs 8,133,567 (Rs, 9,494,572).

b) Unclaimed Dividend does not include any amount, due and outstanding, to be credited to Investor Education & Protection Fund.

7) a) Purchase of Raw Materials includes transfer from Trading Goods Rs 34,230,585 (Rs 2,42,74,007).

b) Rebate on Sales and Compensation is net of Rs. 751,652 (Rs.Nil).

c) Interest on Fixed Loans is net of Interest transfer to Pre-operative expenses Rs 3,603,972 (Rs. 3,876,722).

d) Profit/Loss on sale of Investment is net of fees and expenses for the investment activities Rs.Nil (Rs.4,96,043)

e) Miscellaneous Expenses include :

i) Loss on account of foreign exchange fluctuation (net) Rs. Nil; (Rs. 2,465,439). ]

ii) Fees and out-of-pocket expenses paid/payable to Auditors.

8) Miscellaneous Income includes, gain on account of foreign exchange fluctuation (Net) Rs.3,538,062; (Rs. Nil).

9) Computation of Net Profit in accordance with Section 349 of the Companies Act, 1956 is not required as remuneration has been paid as per Section II of Part II of Schedule XIII of the Companies Act,1956.

10) As per the Accounting Stansard 15 " Employee benefit" the disclosures 9s defined in Accounting Standard are given below:

a) Contribution to Defined Contribution Plans are charged off in Profit & Loss Account.

b) The present value of Obligation for Defined Benefit Plans (Gratuity & leave encashment) are recognized as per the actuarial valuation except gratuity payable to whole time directors, which has already been provided at full extent as per the provisions of "Payment of Gratuity Act,1972 ".

11) Additional information pursuant to provisions of paragraphs 3 & 4 of Schedule VI to the Companies Act,1956

NOTES :

i) The Company is organised into two main business segments :

a) Paper Mill Products - Comprising of Finished Woven Wire Cloth, Chemicals and Equipments for Paper Industry.

b) Wind Power -Comprising of Wind Power

Segment has been identified and reported after taking into account the class of customers for the products & services, the differing risks & returns and the organisation structure. Other Industrial Products, not reportable, being less than required percentage as per Accounting Standard -17, shown as Unallocated.

ii) Segment revenue includes sales, income from services rendered and export incentives. Inter-segment revenue is recognised on the basis of prevailing market rates. iii) Segment revenues, results, assets and liabilites include the respective amounts identifiable to reportable segments and amounts allocated on a reasonable basis.

12) Information regarding related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are given below : 1. Names of the related parties with whom transcations were carried out during the year and description of relationship :

a) Enterprises over which Key Management Personnel exercises significant influence : i) Kingsley Industries Ltd

ii) WMW Metal Fabrics Ltd

iii) W & F Securities Pvt Ltd ( Holding Company)

iv) Nathmall Jankilal

b) Key Management personnel i) Mr. B. K. Khaitan

ii) Mr. K. K. Khaitan iii) Mr. M. K. Khaitan

c) Relatives of Key Management personnel

i) Mr. Devesh Khaitan S/o Mr. K. K. Khaitan

ii) Mr. Madhur Krishna Khaitan S/o Mr. B. K. Khaitan .

13) Figures in brackets represent figures for the previous year.

14) Previous years figures have been rearranged and regrouped wherever practicable and considered necessary.

Signatures to Schedule 1 to 16 annexed to and forming part of the Balance Sheet as at 31st March, 2010 and the Profit and Loss Account for the year ended on that date



 
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