Mar 31, 2015
1. Working Capital borrowings are secured by first charge on all
current assets (both present and future) of the company and second
paripassu charge on fixed assets. The loans are further secured by
Corporate Guarantee of its holding company, Spandex Industries Limited.
2. Short Term Loan from Bank is secured by subservient charge on all
current assets (both present and future) and movable fixed assets of
the company. The loans are further secured by Corporate Guarantee of
its holding company, Spentex Industries Limited and personal Guarantee
of Shri Mukund Choudhary & Kapil Choudhary. Loan is repayable within 6
months from date of disbursement. Interest is payable monthly @ 13.40 %
p.a.
Note:
During the current financial year 2014-15, the company has revised the
Depreciation rates based on the useful lives of its various fixed
assets as per Part-C of Schedule-II to the Companies Act-2013 based on
written down value method. As a result, opening casemated depreciation
reserve as on 01.04.2014 is higher by Rs.18.70 crore which has been
adjusted against the opening reserves and surplus.
The Company had provided corporate guarantee for jointly with Spentex
Industries Limited for the loan given to Spentex (Netherlands), B.V.
by Lehman Brothers and SBI for assets of its subsidiary Spentex
Tashkent Toyepa LLC (STTL). In accordance with the decision of the
Tashkent Economic Court, dated 25.09.2013, the assets of STTL were
transferred in settlement of the loan availed from Lehman Brothers and
SBI. In view of these developments, the management of the opinion that
guarantee is longer enforceable as the loan availed is completely
settled.
As certified by the management based on the available information.
Note
Note No.3.
The Sundry Debtors include export receivables of Rs. 1027.38 lakhs and
Loans and advances include advances of Rs.92.35 lacs, for which the
Company has made a provision for Doubtful Debts for the aforesaid
amounts. The Company has also sought the permission of the Reserve Bank
of India (RBI) through its authorized dealer to write off these debts.
However, pending approval from RBI, the management has decided not to
write off the said amounts from books of account.
Note No.4
The outstanding balance as on March 31, 2015 in respect of certain
Sundry debtors, Creditors, Loans & Advances and Bank and other deposits
are subject to confirmation from the respective parties and
consequential reconciliations/ adjustments arising therefrom, if any.
The management, however, does not expect any material variations.
Note No.5
The Loans and Advances of the Company include a sum of Rs.1,93,46,572,
being an amount receivable from Customs Department as drawbacks against
the export sale pertaining to the period 1993 to September, 2004 when
the unit was 100% Export Oriented Unit (EOU). The company has earlier
filed an application with the office of DGFT for the claim and made
significant efforts for receiving the claim. The company has also filed
claim against Jak Traders Private Limited for recovery of the claims.
Note No.6
As on March 31, 2015, the accumulated losses of the Company have far
exceeded its net worth. In the opinion of the management, the Company's
operations are affected by global business downturn which has resulted
in reduction in demand, increase in input costs and shortage of working
capital. The Company has also filed a reference with Board for
Industrial and Financial Restructuring (BIFR) under section 15 of Sick
Industrial Companies (Special Provisions) Act, 1985 for determination
of sickness and measures to be adopted for rehabilitation. The BIFR,
vide its order, dated 18.07.2012 declared the Company as sick under
section 3(1)(o) of SICA, 1985 and appointed UCO Bank as Operating
Agency (OA) under section 17(3) to prepare Rehabilitation Scheme for
the Company. However, on the strength of management's plan of revival
including reorganization of business, these financial statements are
prepared on a going concern basis.
Note No. 7
Segmental Reporting
In accordance with Accounting Standard - 17 on Segment Reporting issued
by the Institute of Chartered Accountants of India, the Company has
identified two business segments viz. Textile Manufacturing and Textile
Trading. Further, two geographical segments by location of customers
have been considered as secondary segments viz, Within India and
Outside India .The segment wise disclosure are as follows:
Deferred tax asset amounting to Rs.8,78,24,766 has been recognized
until 30th June, 2008. Afterwards, in view of brought forward losses,
the Company has decided to not recognize any further deferred tax asset
on prudence consideration and has fully written off the same during the
current year.
Note No. 8:
Related Party Disclosures
Related Party Disclosures in terms of Accounting Standard 'AS-18'
Issued by the Institute of Chartered Accountants of India.
Relationships:
a. Holding Company Spentex Industries Limited
b. Fellow subsidiary Spentex (Netherlands), B.V.
Note :
Related party relationship is as identified by the Company and relied
upon by the auditors.
Note No. 9
Employee Benefits
Consequent upon the adoption of Accounting Standard on Employee
Benefits AS-15 (Revised) Issued by the Institute of Chartered
Accountants of India, as required by the Standard the following
disclosures are made:
Mar 31, 2014
Note No.1
The Sundry Debtors include export receivables of Rs. 1027.38 lakhs and
Loans and advances include advances of Rs.92.35 lacs, for which the
Company has made a provision for Doubtful Debts for the aforesaid
amounts. The Company has also sought the permission of the Reserve Bank
of India (RBI) through its authorized dealer to write off these debts.
However, pending approval from RBI, the management has decided not to
write off the said amounts from books of account.
Note No.2
The outstanding balance as on March 31, 2014 in respect of certain
Sundry debtors, Creditors, Loans & Advances and Bank and other deposits
are subject to confirmation from the respective parties and
consequential reconciliations/ adjustments arising therefrom, if any.
The management, however, does not expect any material variations.
Note No.3
The Loans and Advances of the Company include a sum of Rs.1,93,46,572,
being an amount receivable from Customs Department as drawbacks against
the export sale pertaining to the period 1993 to September, 2004 when
the unit was 100% Export Oriented Unit (EOU). The company has earlier
filed an application with the office of DGFT for the claim and made
significant efforts for receiving the claim. The company has filed
claim against Jak Traders Private Limited for recovery of the claims.
Note No.4
As on March 31, 2014, the accumulated losses of the Company have far
exceeded its net worth. In the opinion of the management, the Company''s
operations are affected by global business downturn which has resulted
in reduction in demand, increase in input costs and shortage of working
capital. The Company has also filed a reference with Board for
Industrial and Financial Restructuring (BIFR) under section 15 of Sick
Industrial Companies (Special Provisions) Act, 1985 for determination
of sickness and measures to be adopted for rehabilitation. The BIFR,
vide its order, dated 18.07.2012 declared the Company as sick under
section 3(1)(o) of SICA, 1985 and appointed UCO Bank as Operating
Agency (OA) under section 17(3) to prepare Rehabilitation Scheme for
the Company. Further, due to shortage of capital, the company has
worked on job-work basis only during the current year. However, on the
strength of management''s plan of revival including reorganization of
business, these financial statements are prepared on a going concern
basis.
Deferred tax asset amounting to Rs.8,78,24,766 has been recognised
uptil 30th June, 2008. Afterwards, in view of brought forward losses,
the Company has decided to not recognise any further deferred tax asset
on prudence consideration. The management expects that the company will
turn around after revival scheme is sanctioned by BIFR and shall start
earning taxable profits and realizing the Deferred Tax Asset already
recognized in the balance sheet.
Note No.5: Related Party Disclosures
Related Party Disclosures in terms of Accounting Standard ''AS-18''
Issued by the Institute of Chartered Accountants of India.
Relationships:
a. Holding Company Spentex Industries Limited
b. Fellow subsidiary Spentex (Netherlands), B.V.
c. Key Management Personnel Mr. S.P. Setia- Chairman
Note No.6 Employee Benefits
Consequent upon the adoption of Accounting Standard on Employee
Benefits AS-15 (Revised) Issued by the Institute of Chartered
Accountants of India, as required by the Standard the following
disclosures are made:
The estimates of future salary increase, considered in actuarial
assumptions take account of inflation, seniority, promotion and other
relevant factors such as supply and demand factors in the employment
market.
Note No.7
Previous period figures given in brackets have been regrouped and
restated wherever considered necessary.
Mar 31, 2013
Note No. 1: Contingent Liabilities
Contingent Liabilities not provided for in respect of -
a. The following guarantees provided by/ on behalf of the company:
(Figures in Rs.)
S.
No. Particulars As at 31.03.13 As at 31.03.12
1. Corporate guarantee given
to Lehman Brothers Commercial
Corporation 58,75,81,000 54,12,50,000
Asia Limited, Hongkong (Lehman)
and State Bank of India, Tokyo
Branch (SBI) for loan extended
to Spentex (Netherlands), B.V.
USD 10.825 millions (previous
year USD 10.825 millions)
Total 58,75,81,000 54,12,50,000
The Company has provided corporate guarantee for jointly with Spentex
Industries Limited for the loan given to Spentex (Netherlands),
B.V. by Lehman and SBI. The company believes that guarantee given to
Lehman is no longer valid as Lehman did not comply with the terms and
conditions of the loan agreement based on which guarantee was given.
Accordingly, the figures for current and previous year do not include
the portion of the guarantee relating to the loan from Lehman Brothers.
Note No.2
The Sundry Debtors include export receivables of Rs. 1027.38 lakhs and
Loans and advances include advances of Rs.92.35 lacs, for which the
Company has made a provision for Doubtful Debts for the aforesaid
amounts. The Company has also sought the permission of the Reserve Bank
of India (RBI) through its authorized dealer to write off these debts.
However, pending approval from RBI, the management has decided not to
write off the said amounts from books of account.
Note No.3
The outstanding balance as on 31st March 2013 in respect of certain
Sundry debtors, Creditors, Loans & Advances and Bank and other deposits
are subject to confirmation from the respective parties and
consequential reconciliations/ adjustments arising there from, if any.
The management, however, does not expect any material variations.
Note No.4
Schoeller Litvinov k.s (SLKS), a fellow subsidiary of the Company, had
registered losses during the year and earlier financial years due to
economic slowdown. This fellow subsidiary had submitted a
re-organization plan, dated 13.11.2009, seeking deferment of payment to
Secured Creditors, and proportionate waiver of unsecured liabilities
which has now been approved by the court. Subsequently, in another
reorganization plan, the court has ordered to substantially write off
the unsecured creditors including the liability towards to the company.
Accordingly, the company has made a provision for bad debt for
Rs.5,44,23,615, due from SLKS as an exceptional item during 2011-12.
However, pending approval from RBI, the management has decided not to
write off the said amounts from books of account.
Note No.5
The Loans and Advances of the Company include a sum of Rs.1,93,46,572,
being an amount receivable from Customs Department as drawbacks against
the export sale pertaining to the period 1993 to September, 2004 when
the unit was 100% Export Oriented Unit (EOU). The company has earlier
filed an application with the office of DGFT for the claim and made
significant efforts for receiving the claim. The company has filed
claim against Jak Traders Private Limited for recovery of the claims.
Note No.6
As on 31st March 2013, the accumulated losses of the Company have
exceeded its net worth. In the opinion of the management, the Company''s
operations are affected by global business downturn which has resulted
in reduction in demand, increase in input costs and shortage of working
capital. The Company has also filed a reference with Board for
Industrial and Financial Restructuring (BIFR) under section 15 of Sick
Industrial Companies (Special Provisions) Act, 1985 for determination
of sickness and measures to be adopted for rehabilitation. The BIFR,
vide its order, declared the Company as sick under section 3(1)(o) of
SICA, 1985 and appointed UCO Bank as Operating Agency (OA) under
section 17(3) to prepare Rehabilitation Scheme for the Company.
Further, due to shortage of capital, the company has worked on job-work
basis only during the current year. However, on the strength of an
undertaking from Board of Directors to turn around the financial
position of the Company, these financial statements are prepared on a
going concern basis.
Note No. 7: Segmental Reporting
In accordance with Accounting Standard - 17 on Segment Reporting issued
by the Institute of Chartered Accountants of India, the Company has
identified two business segments viz. Textile Manufacturing and Textile
Trading. Further, two geographical segments by location of customers
have been considered as secondary segments viz, Within India and
Outside India .The segment wise disclosure are as follows:
Deferred tax asset amounting to Rs.8,78,24,766 has been recognized
uptil 30th June, 2008. Afterwards, in view of brought forward losses,
the Company has decided to not recognize any further deferred tax asset
on prudence consideration.
Note No.8: Related Party Disclosures
Related Party Disclosures in terms of Accounting Standard ''AS-18''
Issued by the Institute of Chartered Accountants of India.
Relationships:
a. Holding Company Spentex Industries Limited
b. Fellow subsidiary Spentex (Netherlands), B.V.
c. Key Management Personnel Mr. S.P. Setia- Chairman
Mar 31, 2012
Note No. 1: Contingent Liabilities
Contingent Liabilities not provided for in respect of Ã
a. The following guarantees provided by the company: Nil
The Company has provided corporate guarantee for jointly with Spentex
Industries Limited for the loan given to Spentex (Netherlands), B.V. by
Lehman and SBI. The company believes that guarantee given to Lehman is
no longer valid as Lehman did not comply with the terms and conditions
of the loan agreement based on which guarantee was given. Accordingly,
the figures for current and previous year do not include the portion of
the guarantee relating to the loan from Lehman Brothers.
b. Claims against company not acknowledged as debts:
(Figures in Rs)
S.No. Description As at 31.03.12 As at 31.03.11
1. Electricity duty by 1,43,55,000 1,43,55,000
Maharashtra State Government
on units generated
through captive power plant
between the period
Apr-2000 to Apr-2005
(petition pending before
the Supreme Court)
2. Demands from MSEDCL under 5,82,32,830 5,24,63,369
appeal (including interest
of Rs. 2,37,73,251,previous
year Rs. 2,02,38,387)
3. Demands from Excise 64,09,046 80,408
Departments under appeal/
revision
4. Demands from Maharashtra 10,44,000 -
Sales Tax Authorities under
appeal for FY 2004-05 not
provided for.
5. Demands from EPF Department 15,94,349 -
for the period 02/2003 to
11/2006
Total 8,16,35,225 7,46,73,018
Note No.2
The Sundry Debtors include export receivables of Rs. 1027.38 lakhs and
Loans and advances include advances of Rs. 92.35 lacs, for which the
Company has made a provision for Doubtful Debts for the aforesaid
amounts. The Company has also sought the permission of the Reserve Bank
of India (RBI) through its authorized dealer to write off these debts.
However, pending approval from RBI, the management has decided not to
write off the said amounts from books of account.
Note No.3
The outstanding balance as on March 31, 2012 in respect of certain
Sundry debtors, Creditors, Loans & Advances and Bank and other deposits
are subject to confirmation from the respective parties and
consequential reconciliations/ adjustments arising there from, if any.
The management, however, does not expect any material variations.
Note No.4
Schoeller Litvinov k.s (SLKS), a fellow subsidiary of the Company, had
registered losses during the year and earlier financial years due to
economic slowdown. This fellow subsidiary had submitted a
re-organization plan, dated 13.11.2009, seeking deferment of payment to
Secured Creditors, and proportionate waiver of unsecured liabilities
which has now been approved by the court. Subsequently, in another
reorganization plan, the court has ordered to substantially write off
the unsecured creditors including the liability towards to the company.
Accordingly, the company has decided to write off Rs. 5,44,23,615, due
from SLKS as an exceptional item.
Note No.5
The Loans and Advances of the Company include a sum of Rs. 1,93,46,572,
being an amount receivable from Customs Department as drawbacks against
the export sale pertaining to the period 1993 to September, 2004 when
the unit was 100% Export Oriented Unit (EOU). The company has filed an
application with the office of DGFT for the claim and on the basis of
legal advice obtained, is sanguine of receiving the claim.
Note No.6
As on March 31, 2012, the accumulated losses of the Company have
exceeded its net worth. In the opinion of the management, the Company's
operations are affected by global business downturn which has resulted
in reduction in demand, increase in input costs and shortage of working
capital. The Company has also filed a reference with Board for
Industrial and Financial Restructuring (BIFR) under section 15(1) and
15(2) of Sick Industrial Companies (Special Provisions) Act, 1985 for
determination of sickness and measures to be adopted for
rehabilitation.. However, based on recent performance and trends of the
company and overall industry outlook, the management believes that
losses incurred in past would be made good. The financial statements
have been prepared on a going concern basis on the strength of
management's plan of revival including reorganization of business and
restructuring of loan facilities under Corporate Debt Restructuring
scheme.
Note No. 7:
Segmental Reporting
In accordance with Accounting Standard - 17 on Segment Reporting issued
by the Institute of Chartered Accountants of India, the Company has
identified two business segments viz. Textile Manufacturing and Textile
Trading. Further, two geographical segments by location of customers
have been considered as secondary segments viz, Within India and
Outside India. The segment wise disclosure are as follows:
Note No. 8
Deferred tax asset amounting to Rs. 8,78,24,766 has been recognised
uptil 30th June, 2008. Afterwards, in view of brought forward losses,
the Company has decided to not recognise any further deferred tax
asset.
Note No.9: Related Party Disclosures
Related Party Disclosures in terms of Accounting Standard 'AS-18'
Issued by the Institute of Chartered Accountants of India.
Relationships:
a. Holding Company Spentex Industries Limited
b. Fellow subsidiary Scholler Litinov, K.S.
c. Key Management Personnel Mr. R. Sampath- erstwhile Managing
Director
Note No.10 Employee Benefits
Consequent upon the adoption of Accounting Standard on Employee
Benefits AS-15 (Revised) Issued by the Institute of Chartered
Accountants of India, as required by the Standard the following
disclosures are made:
Mar 31, 2011
1. The Sundry Debtors include export receivables of Rs. 314.09 lakhs
and Loans and advances include advances of Rs.92.35 lacs, for which the
Company has made a provision for Doubtful Debts for the aforesaid
amounts. The Company has also sought the permission of the Reserve Bank
of India through its authorized dealer to write off these debts.
2. The outstanding balance as on March 31, 2011 in respect of certain
Sundry debtors, Creditors, Loans & Advances and Bank and other deposits
are subject to confirmation from the respective parties and
consequential reconciliations/ adjustments arising there from, if any.
The management, however, does not expect any material variations.
3. Schoeller Litvinov k.s (SLKS), a fellow subsidiary of the Company,
had registered losses during the year and earlier financial years due
to economic slowdown. This fellow subsidiary had submitted a
re-organization plan, dated 13.11.2009, seeking deferment of payment to
Secured Creditors, and proportionate waiver of unsecured liabilities
which has now been approved by the court. The Company believes that the
reorganization plan, considering improvement in the global textile
market, will turn around this subsidiary, so as to make good its losses
in a foreseeable period of time and will also place this subsidiary in
a position to repay the liabilities in due course. Accounts and other
receivables amounting to Rs.6,01,84,142 is due from SLKS as at March
31, 2011. Accordingly, provision against these Accounts and other
receivables is not considered necessary at this stage.
4. The Loans and Advances of the Company include a sum of
Rs.1,93,46,572, being an amount receivable from Customs Department as
drawbacks against the export sale pertaining to the period 1993 to
September, 2004 when the unit was 100% Export Oriented Unit (EOU). The
company has filed an application with the office of DGFT for the claim
and on the basis of legal advise obtained, is sanguine of receiving the
claim.
5. As on March 31, 2011, the accumulated losses of the Company have
exceeded its net worth. In the opinion of the management, the Company's
operations are affected by global business downturn which has resulted
in reduction in demand, increase in input costs and shortage of working
capital. The Company has also filed a reference with Board for
Industrial and Financial Restructuring (BIFR) under section 23(1) of
Sick Industrial Companies (Special Provisions) Act, 1985. However,
based on recent performance and trends of the company and overall
industry outlook, there is an increase in average selling prices of
yarn, stability in production levels and reduction in procurement costs
of raw materials. The company has started earning cash profits and the
management believes that losses incurred in past would be made good.
The financial statements have been prepared on a going concern basis on
the strength of management's plan of revival including reorganization
of business and restructuring of loan facilities under Corporate Debt
Restructuring scheme.
Note:
The perquisites mentioned above include Rs.1,53,195 (previous year
Rs.Nil) for leave encashment received by the directors.
6. Segment Reporting
In accordance with Accounting Standard - 17 on Segment Reporting issued
by the Institute of Chartered Accountants of India, the Company has
identified two business segments viz. Textile Manufacturing and Textile
Trading. Further, two geographical segments by location of customers
have been considered as secondary segments viz, Within India and
Outside India .The segment wise disclosure are as follows:
Notes :
Deferred tax asset amounting to Rs.8,78,24,766 has been recognised
uptil 30th June, 2008. Afterwards, in view of brought forward losses,
the Company has decided to not recognise any further deferred tax
asset.
7 Related Party Disclosures
Related Party Disclosures in terms of Accounting Standard 'AS-18'
Issued by the Institute of Chartered Accountants of India.
Relationships :
a. Holding Company Spentex Industries Limited
b. Fellow subsidiary Schoeller Litvinov, K.S., Spentex (Netherlands),
B.V.
c. Key Management Personnel Mr. R. Sampath- Managing Director The
estimates of future salary increase, considered in acturial assumptions
take account of inflation, seniority, promotion and other relevant
factors such as supply and demand factors in the emplyment market.
Notes :
As per Transitional Provisions as contained in AS-15 (Revised), the
Company has decided to amortize the total gratuity expenses of Rs.44.89
Lacs arising due to first time adoption of the revised accounting
standard over a period not exceeding five years beginning with the year
of adoption of the standard, the same is being amortized on year to
year basis as 8.97 lacs per year. During the current year, the Company
has written off Rs.8,97,858 and no deferred gratuity expense remains to
be written off.
8. Deferred Revenue Expenditure
The Company has incurred Rs.109 lacs as deferment charges for the
reschedulement of term loan during prior years; the same is being
amortized over the period of nine years. Accordingly, during the year,
the company has charged Rs.8.49 lacs (previous year Rs.12.60 lacs) to
the statement of profit and loss account as current year charge and
Rs.Nil (previous year Rs.8.49 lacs) has been carried forward to
subsequent years.
9. Previous period figures given in brackets have been regrouped and
restated wherever considered necessary.
Mar 31, 2010
1 Contingent Liabilities not provided for in respect of :
a The following guarantees provided by the Company :
Serial No Name of the Bank As at As at
31.03.2010 31.03.2009
1 AXIS BANK LTD 12,00,000 12,00,000
2 AXIS BANK LTD 1,90,000 1,90,000
3.* Corporate guarantee given to
Lehman Brothers Commercial 48,59,34,250 47,12,00,000
Corporation Asia Limited,
Hongkong (Lehman) and State
Bank of India, Tokyo Branch
(SBI) for loan extended to
Spentex (Netherlands), B.V.
USD
10.825 millions (previous
year USD 10.825 millions)
Total 48,73,24,250 47,25,90,000
*The Company has provided corporate guarantee for USD 42.50 million
jointly with Spentex Industries Limited for the loan given to Spentex
(Netherlands), B.V. by Lehman and SBI. The company has been legally
advised that guarantee given to Lehman is no longer valid as Lehman did
not comply with the terms and conditions of the loan agreement based on
which guarantee was given.
3. The Sundry Debtors include export receivables of Rs. 314.09 lakhs
and Loans and advances include advances of Rs.92.35 lacs, for which the
Company has made a provision for Doubtful Debts for the aforesaid
amounts. The Company has also sought the permission of the Reserve Bank
of India through its authorized dealer to write off these debts.
4. The outstanding balance as on March 31, 2010 in respect of certain
Sundry debtors, Creditors, Loans & Advances and Bank and other deposits
are subject to confirmation from the respective parties and
consequential reconciliations/ adjustments arising there from, if any.
The management, however, does not expect any material variations.
5. Schoeller Litvinov k.s (SLKS), a fellow subsidiary of the Company,
had registered losses during the year and earlier financial years due
to economic slowdown and restructuring costs etc. This fellow
subsidiary had submitted a re-organization plan seeking deferment of
payment to Secured Creditors, and proportionate waiver of unsecured
liabilities which has now been approved by the court. The Company
believes that the reorganization plan, considering improvement in the
global textile market, will turn around this subsidiary, so as to make
good its losses in a foreseeable period of time and will also place
this subsidiary in a position to repay the liabilities in due course.
Accounts and other receivables amounting to Rs. 7,27,88,857 is due from
SLKS as at March 31, 2010. Accordingly, provision against these
Accounts and other receivables is not considered necessary at this
stage.
6. Loans and Advances of the Company include an amount of
Rs.1,93,46,572, being an amount receivable from Customs Department as
drawbacks against the export sale pertaining to the period 1993 to
September, 2004 when the unit was 100% Export Oriented Unit (EOU). The
company has filed a letter with the office of DGFT for the claim and on
the basis of legal advise obtained, is sanguine of receiving the
claiming within the year ended March 31, 2011.
7. As on March 31, 2010, accumulated losses of the Company have
exceeded its net worth. In the opinion of the management, the Companys
operations are affected by global business downturn which has resulted
in reduction in demand, increase in input costs and shortage of working
capital. The Company has also filed a reference with Board for
Industrial and Financial Restructuring (BIFR) under section 23(1) of
Sick Industrial Companies (Special Provisions) Act, 1985. However,
based on recent performance and trends of the company and overall
industry outlook, there is an increase in average selling prices of
yarn, stability in production levels and reduction in procurement costs
of raw materials, The management believes that losses incurred in past
would be made good and the company would start earning cash profit in
foreseeable future. The financial statements have been prepared on a
going concern basis on the strength of managements plan of revival
including reorganization of business and restructuring of loan
facilities under Corporate Debt Restructuring scheme.
8. The Company has advanced certain loans to Body Corporates. On the
basis of a legal opinion obtained by the Company, the management is of
the view that the conditions as prescribed under section 372A of the
Companies Act, 1956 are not violated.
Foot Note:
The liability in respect of gratuity and leave encashment is provided
on the basis of acturial certificate computed on group basis. Separate
figures for individual employees are not available and have, therefore,
not been taken into account for above computation.
9 Segment Reporting
The Companys operation relates only to Textile Segment and, thus, has
only one reportable segment.
Note : As informed by the management, there are no Potential Dilutive
Equity Shares.
Notes :
Deferred tax asset has been recognised uptil 30th June, 2008.
Afterwards, in view of brought forward losses, the Company has decided
to not recognise any further deferred tax asset.
10 Related Party Disclosures
Related Party Disclosures in terms of Accounting Standard AS-18
Issued by the Institute of Chartered Accountants of India.
Relationships :
a. Holding Company Spentex Industries Limited
b. Fellow subsidiary Schoeller Litvinov, K.S., Spentex
(Netherlands), B.V.
c. Key Management
Personnel Mr. R. Sampath- Managing Director
Note :Related party relationship is as identified by the Company and
relied upon by the auditors. * Includes interest payable
11. Employee Benefits
Consequent upon the adoption of Accounting Standard on Employee
Benefits AS-15 (Revised) Issued by the Institute of Chartered
Accountants of India, as required by the Standard the following
disclosures are made:
The estimates of future salary increase, considered in acturial
assumptions take account of inflation, seniority, promotion and other
relevant factors such as supply and demand factors in the employment
market.
Notes : As per Transitional Provisions as contained in AS-15 (Revised),
the Company has decided to amortize the total gratuity expenses of
Rs.44.89 Lacs arising due to first time adoption of the revised
accounting standard over a period not exceeding five years beginning
with the year of adoption of the standard, the same is being amortized
on year to year basis as 8.97 lacs per year. As on 31.3.2010, a
liability of Rs.8,97,858 remains to be written off.
12. Deferred Revenue Expenditure
The Company has incurred Rs.109 lacs as deferment charges for the
reschedulement of term loan during prior years; the same is being
amortized over the period of nine years. Accordingly, during the year,
the company has charged Rs.12.60 lacs to the statement of profit and
loss account as current year charge and Rs.8.49 lacs has been carried
forward to subsequent years.
13. Previous period figures given in brackets have been regrouped and
restated wherever considered necessary.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article