Mar 31, 2018
NOTE: 1 COMPANY OVERVIEW
EMMBI INDUSTRIES LIMITED (âEmmbiâ or âThe Companyâ) is a public limited company incorporated and domiciled in India and has its registered office at Silvassa, India. The Company has its primary listingson the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The financials were authorized for issuance by the companyâs board of directors and audit committee on May 29, 2018.
The principal activities of the Company comprises of Manufacturing and Trading of HDPE & PP - Woven Polymer Based Products.
NOTE: 2 BASIS OF PREPARATION AND MEASUREMENT
2.1 Statement of Compliance
The Financial statements as at the end for the year ended March 31, 2018 have been prepared in accordance with the Indian Accounting Standards (âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendments Rules, 2016.
For all the periods up to and including the year ended March 31, 2017, the company prepared its financial statements in accordance with requirement of previous GAAP, which includes accounting standards notified under the section 133 of the Companies Act, 2013 read together with Companies (Accounting Standards) Rules, 2016. The date of transition to Ind AS is April 1, 2016. These financial statements for the year ended March 31, 2018 are companyâs first Ind AS financial statements. The disclosure relating to Ind AS 101, First - time adoption of Indian Accounting Standards have been given in Note no 4.
2.2 Accounting Convention and Basis of Measurement
The financial statements have been prepared on the historical cost convention and on an accrual basis, except the following material items that have been measured at fair value as required by relevant Ind AS:
i. Certain financial assets measured at fair value ( refer accounting policy on financial instruments)
ii. Defined benefit and other long - term employee benefits.
2.3 Functional and presentation currency
The financial statements are presented in India rupees, which is the functional currency of the company and the currency of the primary economic environment in which the company operates. All financial information presented in Indian â has been rounded to the nearest million of â except share and per share data.
2.4 Use of Judgments, estimates and assumptions
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses and the disclosure of contingent liabilities and contingent assets. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions in respect of following areas, that have most significant effect to the carrying amounts within the next financial year are included in the relevant notes.
i. Useful Lives of property, plant and equipment and intangibles.
ii. Measurement of defined benefit obligations.
iii. Measurements and likelihood of occurrence if provisions and contingencies.
iv. Recognition of deferred tax assets.
2.5 Operating Cycle:
Based on the nature of products / activities of the company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
NOTE: 3 FIRST TIME ADOPTION OF IND AS
3.1 These financial statements of Emmbi Industries Limited for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purpose of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101-first time adoption of Indian Accounting Standard, with April 1, 2016 as the transition date and IGAAP as the previous GAAP
3.2 The Transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the companyâs balance sheet, statement of profit and loss, is set out in note 4.4. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 4.3.
3.3 Exemptions availed on first time adoption of Ind -AS 101
Ind AS 101 allows first -time adopters certain exemptions from the retrospective application of certain requirements under Ind AS and exemptions from other Ind AS. The company has accordingly applied the following exemptions.
1. Estimates
An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP
2. De-recognition of financial assets and liabilities.
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition ârequirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
3. Classification and measurement of financial assets.
Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
Material Adjustments to Statement of Cash flows
No material adjustments have been identified to the Statement of Cash flows on account of transition to Indian Accounting Standards. Recognition of Mark to market gains
Under the previous GAAP, investments were measured at cost. Under Ind AS, investments are measured at fair value.
Deferred tax
Deferred taxes have been recognised on the adjustments made on transition to Ind AS.
4.1 Terms / Rights attached to the Equity Shares
The company has only one class of equity shares having a par value of Rs. 10.00 per share (previous year Rs. 10.00 per share). Each holder of the equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.
Securities Premium:
Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.
Retained Earnings:
The Retained earnings of the Company are kept aside out of the Companyâs profits to meet future (known or unknown) obligations. Retained earnings is a free reserve which can be utilised for any purpose.
5.1 Term Loans are secured by way of deposit of the title deeds in respect of immovable properties of the Company including Land & Building situated at Survey No. 191/2/4, Masat Village, Meghwad Road, U.T. of Dadra & Nagar Haveli, Silvassa - 396230, Survey No. 99/2/1 & 9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, U.T. of Dadra & Nagar Haveli, Silvassa - 396230 and at Survey No. 87, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, U.T. of Dadra & Nagar Haveli, Silvassa - 396230, Survey No. 28A & 42, Masat Industrial Estate, U.T. of Dadra & Nagar Haveli, Silvassa - 396230 First pari passu charge on entire fixed assets of the company, present and future, with existing bankers and by way of Second pari passu charge on entire current assets of the company present and future with existing bankers.
5.2 Other Loans and Advances are secured by way of hypothecation of Cars and Transport Vehicles purchased under Hire Purchase Scheme.
5.3 There is no default in repayment of principal loan or interest thereon.
6.1 Working Capital Loans :
Working Capital Loans are secured by way of First pari passu charge on entire current assets of the company, present and future, with existing bankers and by way of Second pari passu charge on entire fixed assets of the company, present and future, with the existing bankers - Punjab National Bank, ICICI Bank, Axis Bank.
c 1) The Income tax demand as per ITAT order for the A. Y. 2011-12 of Rs. 58,50,760/- is disputed for which appeal will be preferred to the Hâble Bombay High Court. Based on the decisions of the appellate authorities and the interpretation of other relevant provisions, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
c 2) Income tax penalty demand for A.Y. 2011-12 : Rs. 39,47,758/- for which appeal is pending with CIT Appeals, Mumbai. (Appeal filed in April 2017). Based on the decisions of the appellate authorities and the interpretation of other relevant provisions, the Company has been legally advised that the penalty demand raised is likely to be deleted, accordingly no provision is considered necessary.
Future cash flows in respect of above, if any, is determinable only on receipt of judgement/ decisions pending with relevant authorities.
Note 7 The entire operation of the Company relate to only one segment viz. Polymer based multiple products. Hence, as per the
Management approach under Ind AS - 108, the company has a single operating segment. Revenue is evenly spread across various customers and not concentrated at major customers.
B Risk Exposure
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below: Life expectancy:
This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.
Future salary increase and inflation risk:
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at managementâs discretion may lead to uncertainties in estimating this increasing risk.
Asset-Liability mismatch risk:
Risk arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings eaused by interest rate movements. The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans.
II Defined Contribution Plans
During the year, the Company has recognised the following amounts in the Statement of Profit and Loss :-
The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with the Projected Unit Credit Method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
The following payments are expected contributions to the defined benefit plan in future years:
Capital Management:
The Companyâs objectives when managing capital are to
- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
For the purpose of the Companyâs capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders.
The Board of Directors have recommended the payment of a final dividend of Rs. 0.50 per fully paid equity share of Rs. 10.00 each (March 31, 2017 - Rs. 0.50). This proposed dividend is subject to approval of shareholders in the ensuing annual general meeting.
Corporate Social Responsibility (CSR)
As a part of Corporate Social Responsibility (CSR) initiative, the Company has decided to donate to Emmbi Foundation having main object as CSR Activity as specified in Schedule VII. An amount of Rs. 1.45 Million (Previous Year: Rs. 1.39 Million) has been spent in the year ended March 31, 2018. Gross amount required to be spent by the Company during the year: Rs. 2.67 Million (Previous Year: Rs. 1.92 Million).
*Note : Figures shown in brackets are in respect of previous year.
The company has been identifying appropriate CSR projects and programs in the villages around Silvassa. Several long term projects have been identified and are under implementation and would take time for completion.
Operating Lease:
(i) As a lessee: The Companyâs significant leasing agreements are in respect of operating leases for premises (residential and office), software. These leasing agreements range between 11 months and 99 months, which include both cancellable and non-cancellable leases and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals of Rs. 7.94 Million (Previous Year Rs. 5.77 Million) are charged to the Statement of Profit and Loss. The total future minimum lease rentals payable for non-cancellable lease at the Balance Sheet dates are as under :-
Financial risk management
The management of the Company has implemented a risk management system that is monitored by the Board of Directors. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout the Company. Risk management reporting is a continuous process and part of regular Group reporting. In addition, our Corporate Function Internal Auditing regularly checks whether Company complies with risk management system requirements.
The Company is exposed to credit, liquidity and market risks (foreign currency risk and price risk) during the course of ordinary activities. The aim of risk management is to limit the risks arising from operating activities and associated financing requirements by applying selected derivative and non-derivative hedging instruments.
Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. The balances with banks, loans given to employees, security deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets.
Trade receivables
Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.
Export related trade receivables are fully secured under the Export Credit Guarantee Corporation Scheme and therefore the Company is not exposed to significant credit risk.
The provision for expected credit loss is recognised on the basis of life-time expected credit losses (simplified approach). An expected loss rate is calculated at each year-end, based on combination of rate of default and rate of delay. The Company considers the rate of default and delay.
Liquidity risk
Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash or cash equivalents. Managing liquidity risk, and therefore allocating resources are some of the central tasks of the Companyâs management. In order to be able to ensure the Companyâs solvency and financial flexibility at all times, credit limits and cash and cash equivalents are reserved on the basis of perennial financial planning.
Market risk
Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks. Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes. These mainly include foreign currency forward contracts with banks. The use of derivative financial instruments is extensively monitored, with checks being carried out on the basis of policies in the framework of regular reporting.
Foreign currency risk
The international nature of the Companyâs business activities generates numerous cash flows in different currencies especially in USD and EURO. Hedging the resulting currency risk exposures is an essential part of the Companyâs risk management. To contain the risks of numerous payment flows in different currencies, in particular USD and EURO, the Company follows group wise policies for foreign currency management.
The Company does not have any material exposure to foreign currency at the balance sheet date.
Mar 31, 2016
Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the company)
The Company has sought confirmation from all the creditors regarding their registration as Micro, Small and Medium Enterprises, however till date of the Balance Sheet, no confirmation has been received and hence none of the creditors have been categorized as pertaining to Micro, Small and Medium Enterprises.
Note 1. Since Company operates in only one segment i.e. manufacture of HDPE/ PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS - 17 issued by ICAI
Note 2. Figures of Previous year have been rearranged / regrouped as and when necessary in terms of Current year''s grouping.
Mar 31, 2015
1. Corporate Information
EMMBI INDUSTRIES LIMITED ('the Company') is a public limited company
and is listed on BSE Limited and National Stock Exchange of India
Limited (NSE). The Company is engaged in the business of Manufacturing
and Trading of HDPE & PP - Woven Polymer Based Products.
2. Term Loans are secured by way of deposit of the title deed in
respect of immovable properties of the Company including Land &
Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT
of Dadra & Nagar Haveli, Silvassa - 396230 & at Plot no. 99/2/1&9,
Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of
Dadra & Nagar Haveli, Silvassa - 396230 and by hypothecation of Plant &
Machinery and Furniture & Fixtures. The term loan are secured by way of
first charge.
3. Other Loans and Advances are secured by way of hypothecation of
Cars and Transport Vehicles purchased under Hire Purchase Scheme.
4. There is no default in repayment of principal loan or interest
thereon.
5. Working Capital Loans :
i) Cash Credit & Packing Credit loans from Punjab National Bank are
secured by first pari passu charge on hypothecation of entire current
assets, both present and future, of the Company including stocks and
book debts, stock in transits and stock for ob work. Second pari passu
charge on immovable properties of the Company including Land & Building
situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra
& Nagar Haveli, Silvassa - 396230 and at Plot no. 99/2/1&9, and Survey
no. 87 Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village,
UT of Dadra & Nagar Haveli, Silvassa 396230.
ii) Working Capital and Pre-Cum-Post Shipment Loan from Exim Bank is
secured by first Pari-Passu charge on entire current assets both
present & future; Second Pari-Passu charge on the entire movable fixed
assets both present and future; second Pari-Pasu charge on the entire
Land and other Immovable properties both present and future.
iii) Working Capital and Pre-Cum-Post Shipment Loan from Axis Bank is
secured by first Pari-Passu charge on entire current assets both
present & future; Second Pari-Passu charge on the entire movable fixed
assets both present and future; second Pari-Passu charge on the entire
Land and other Immovable properties both present and future.
6.CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in Millions)
2014-15 2013-14
(a) Contingent Liabilities
GUARANTEES
* Guarantee by Banks to Electricity
Department (Silvassa) 6.80 4.45
* Guarantee furnished to Banks in
respect of Letter of Credit - -
(b) Commitments
Estimated amount of contracts
remaining to be executed on - 5.70
capital account (Net of Advances )
and not provided for.
(c) The Income tax demand as per CIT
Appeal order for the A. Y. 2011-12
of Rs. 58,50,760/- is disputed for which appeal will be made to
Tribunal in due course. Based on the decisions of the appellate
authorities and the interpretation of other relevant provisions,
the Company has been legally advised that the additional demand
raised is likely to be either deleted or substantially reduced
and accordingly no provsion is considered necessary.
7. Post employment benefits
Company has taken a Group Gratuity Policy of LIC of India to cover the
employer's obligation towards Gratuity under the payment of Gratuity
Act and the fund required to be maintained to cover the Present Value
of past service benefit and current service cost is fully funded by the
company as per the valuation made. The Company has Funded Scheme of
Gratuity with LIC.
8. Disclosures as required by AS 19,"Leases", notified
(i) The Company has taken Office and Warehouse premises under operating
lease or leave and license agreements. These are non cancellable and
range between 11 months and 3 Years under Leave and License
arrangement, or longer for other leases and are renewable by mutual
consent on mutually agreeable terms. The Company has given refundable
Interest Free Security Deposits under certain agreements.
(ii) Lease Payments are recognised in the Statement of Profit and Loss
under Rent in Note 27.
9. Since Company operates in only one segment i.e. manufacture of
HDPE/ PP/ raffia products and trading in similar items hence no
need for separate disclosure of segment information as per AS - 17
issued by ICAI.
10. Figures of Previous year have been rearranged / regrouped as
and when necessary in terms of Current year's grouping.
Mar 31, 2014
GENERAL INFORMATION
EMMBI INDUSTRIES LIMITED (Formerly known as Emmbi Polyarns Limited)
(''the Company'') is a public limited company and is listed on Bombay
Stock Exchange Limited (BSE) and National Stock Exchange (India)
Limited (NSE). The Company is engaged in the business of manufacturing
and trading of HDPE & PP - Woven Polymer Based Products.
1.1 Term Loans are secured by way of deposit of the title deed in
respect of immovable properties of the Company including Land &
Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT
of Dadra & Nagar Haveli, Silvassa-396230 & at Plot no. 99/2/1&9,
Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of
Dadra & Nagar Haveli, Silvassa - 396230 and by hypothecation of Plant &
Machinery and Furniture & Fixtures The term loan are secured by way of
first charge.
1.2 Other Loans and Advances are secured by way of hypothecation of
Cars and Transport Vehicles purchased under Hire Purchase Scheme.
1.3 There is no default in repayment of principal loan or interest
thereon.
2.1 Working Capital Loans :
i) Cash Credit & Packing Credit loans from Punjab National Bank are
secured by first pari passu charge on hypothecation of entire current
assets, both present and future, of the Company including stocks and
book debts, stock in transits and stock for job work. Second pari passu
charge on immovable properties of the Company including Land & Building
situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra
& Nagar Haveli, Silvassa - 396230 and at Plot no. 99/2/1&9, Madhuban
Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of Dadra &
Nagar Haveli, Silvassa 396230.
ii) Working Capital and Pre-Cum-Post Shipment Loan from Exim Bank is
secured by first Pari-Passu charge on entire current assets both
present & future; Second Pari-Passu charge on the entire movable fixed
assets both present and future; second Pari-Pasu charge on the entire
Land and other Immovable properties both present and future.
iii) Working Capital and Pre-Cum-Post Shipment Loan from Axis Bank is
secured by first Pari-Passu charge on entire current assets both
present & future; Second Pari-Passu charge on the entire movable fixed
assets both present and future; second Pari-Pasu charge on the entire
Land and other Immovable properties both present and future.
(Rs. In Millions)
Note 3 CONTINGENT LIABILITIES AND COMMITMENTS
As At 31st As At 31st
March, 2014 March, 2013
a) Contingent liabilities
Guarantees''
- Guarantee by Banks to 4.45 4.45
Electricity Department
(Silvassa)
- Guarantee furnished to - -
Banks in respect of
Letter of Credit
b) Commitments
Estimated amount of contracts 5.70 1.05
unexecuted on capital account
c) The Income tax demand for the
A. Y. 2010-11 of Rs. 90.22 lakhs
is disputed for which appeal has
been made with CIT (Appeal).
4.1 Post employment benefits
Company has taken a Group Gratuity Policy of LIC of India to cover the
employer''s obligation towards Gratuity under the payment of Gratuity
Act and the fund required to be maintained to cover the Present Value
of past service benefit and current service cost is fully funded by the
company as per the valuation made The Company has shifted to Funded
Scheme of Gratuity with LIC. Previously the company had Non - Funded
Gratuity Scheme.
The Actuarial Liability worked out by LIC Funded Scheme as on 1st April
2013 is Rs. 0.86 millions as against Non Funded Liability worked out to
Rs. 2.94 millions as on 31st March 2013 and hence the figures of
previous year is not comparable.
4.1 Disclosures as required by AS 19,"Leases", notified under
sub-section (3C) of Section 211 of Companies Act,1956
(i) The Company has taken Office and Warehouse premises under operating
lease or leave and license agreements. These are non cancellable and
range between 11 months and 3 Years under Leave and License
arrangement, or longer for other leases and are renewable by mutual
consent on mutually agreeable terms. The Company has given refundable
Interest Free Security Deposits under certain agreements.
(ii) Lease Payments are recognised in the Statement of Profit and Loss
under Rent in Note 28.
Note 5 Since Company operates in only one segment i.e. manufacture of
HDPE/ PP/ raffia products and trading in similar items hence no need
for separate disclosure of segment information as per AS - 17 issued by
ICAI.
Note 6 Figures of Previous year have been rearranged / regrouped as
and when necessary in terms of Current year''s grouping.
Mar 31, 2013
1.1 Post employment benefits
The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, The obligation for
leave encashment is recognised in the same manner as gratuity.
Since the Defined Gratuity Benefit Obligation and Leave Encashment
Benefit obligation are unfunded, there are no plan assets which are
maintained exclusively therefore.
Note 2 Since Company operates in only one segment i.e. manufacture of
HDPE/ PP/ raffia products and trading in similar items hence no need
for separate disclosure of segment information as per AS -17 issued by
ICAI.
Note 3 Figures of Previous year have been rearranged / regrouped as
and when necessary in terms of Current year''s grouping.
Mar 31, 2012
1.1 46,99,530 Equity Shares out of Shares Issued, Subscribed and Paid
up were allotted as Bonus Shares in the last five years (Dt:
20.Q8.2009) by way of capitalisation of free reserves of the company
1.2 50,000 Equity Shares out of Shares Issued, Subscribed and Paid up
were allotted against conversion of Preference Shares in the last five
years which were converted during the year ended 31st March, 2007.
1.3 86,57,700 Equity Shares out of Shares Issued, Subscribed and Paid
up were issued during the year ended 31st March, 2010 for cash as
initial public offer in February,2010 -
2.1 Term Loans are secured by way of deposit of the title deed in
respect of all the immovable properties of the Company including Land &
Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT
of Dadra & Nagar Haveli, Silvassa - 396230 and at Plot no. 99/2/1 &9,
Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of
Dadra & Nagar Haveli, Silvassa - 396230 and by way of hypothecation
of Plant & Machinery and Personal Gurantee of directors.
2.2 Other Loans and Advances are secured by way of hypothecation of
Cars and Transport Vehicles purchased under Hire Purchase Scheme
3.1 Working Capital Loans :
i) Cash Credit loans are secured by hypothecation of present and future
stock of raw materials, stock-in process, finished goods, stores and
spares (not relating to plant and machinery), book debts and materials
in transit;
ii) Packing Credit loans are secured by hypothecation of present and
future stock of raw materials, stock-in process, finished goods and
book debts
iii) Working Capital and Pre-Cum-Post Shipment Loan from Exim Bank is
secured by Pari Passu first charge on entire current assets both
present & future; Pari Passu second charge on the entire movable fixed
assets both present and future; Pari Pasu second charge on the entire
Land and other Immovable properties both present and future.
Note 4 CONTINGENT LIABILITIES AND COMMITMENTS
As At 31st As At 31st
March, 2012 March, 2011
(Rs in Lacs) (Rs in Lacs)
Contingent liabilities
Claims against the company not
acknowledged as debt Guarantees - -
- Guarantee by Banks to Electricity
Department (Silvassa) 44.50 28.50
- Guarantee furnished to Banks in respect
of Letter of Credit 65.51 97.91
Other money for which the company is
contingently liable - -
Commitments
Estimated amount of contracts unexecuted
on capital account 18.13 3.27
Uncalled liability on shares and other
investments partly paid - -
Other commitments - -
4.1 Post employment benefits
The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, The obligation for
leave encashment is recognised in the same manner as gratuity.
Since the Defined Gratuity Benefit Obligation and Leave Encashment
Benefit obligation are unfunded, there are no plan assets which are
maintained exclusively therefore.
The estimates to 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.
Note 5 Since Company operates in only one segment i.e. manufacture of
HDPE/
PP/ raffia products and trading in similar items hence no need for
separate disclosure of segment information as per AS - 17 issued by
ICAi.
Note 6 The balance of Sundry Debtors and Sundry Creditors are subject
to confirmation Travelling Expenses Includes Rs 6,85,507/- which
pertains to earlier year
Mar 31, 2010
A. NATURE OF OPERATIONS :
The Company is a manufacturer of various woven polymer based products.
The products manufactured by the Company are used in packaging ,
automobiles, infrastructure and various other sectors.
1. Corresponding figures of the previous year have been regrouped
wherever necessary to confirm to current periods figures.
2009-10 2008-09
RS. / Lacs Rs. / Lacs
2. Contingent Liabilities not
provided for :-
Guarantee given by the Company to
Electricity Department 28.50 25.00
Income tax Penalty demanded for
A.Y. 2001-02 - 10.52
LC. 104.16 38.00
3 Expenditure in foreign currency :
Foreign Travelling Expenses :-
New Product Development 09-10 For Conference
Market Development 09-10 For Business Development
Travelling Expenses - Miscellaneous EFIBCA Membership Fees
4 Since Company operates in only one segment i.e. manufacture of HDPE/
PP/ raffia products and trading in similar items hence no need for
separate disclosure of segment information as per AS - 17 issued by
ICAI.
5 Expenditure on employees in respect of Remuneration of not less than
Rs. 24,00,000/- per year where employed throughout the year or Rs.
2,00,000/- per month where employed for a part of the year.
6 Disclosure pertaining to Micro, Small and Medium Enterprises (as per
information available with the company) The Company has sought
confirmation from all the creditors regarding their registration as
Micro, Small and Medium Enterprises, however till date of the Balance
Sheet, no confirmation has been received and hence none of the
creditors have been categorised as pertaining to Micro, Small and
Medium Enterprises.
7 Post employment benefits
In the previous year, the provision for Gratuity and Leave encashment
benefits are made as per Actuarial certificate.
For the current period, Provision for Gratuity and Leave encashment
benefits are made on estimated basis, based on previous years
provisions, which in the opinion of the management is sufficient.
8 During the year the Company has alloted on date 20.08.2009,
46,99,530 Bonus Equity shares of Rs. 10/- each fully paid up in the
ratio of 3:2
9 The Company has made initial public offer during the year at a
premium of Rs. 35/- per share on the face value of Rs. 10/- per share,
aggregating to 86,57,700 shares allotted on date 16.02.2010 Out of
Securities Premium Account amounting to Rs. 30,30,19,500/- expenses
relating to IPO of Rs.3,87,74,552/- has been deducted.
10 Research and development expenditure debited to the Profit and Loss
account by charge to relevant heads of account amount to Rs. 275,479
(Previous year Rs. Nil)
NOTES
1 Cash flow statement has been prepared under the indirect method as
set out in the Accounting Standard (AS) 3 "Cash Flow Statement" issued
by the ICAI.
2 Cash and cash equivalents at the end of the year represent cash and
bank balances .
Mar 31, 2009
A. NATURE OF OPERATIONS :
The Company is a manufacturer of various woven polymer based products.
The products manufactured by the Company are used in packaging,
automobiles, infrastructure and various other sectors.
1 Disclosure pertaining to Micro, Small and Medium Enterprises (as per
information available with the company)
The Company has sought confirmation from all the creditors regarding
their registration as Micro, Small and Medium Enterprises, however till
date of the Balance Sheet, no confirmation has ben received and hence
none of the creditors have been categorised as pertaining to Micro,
Small and Medium Enterprises.
2 The Company has not paid dividend since inception.
Mar 31, 2008
1. Corresponding figures of the previous year have been regrouped
wherever necessary to conform to current years figures.
2007-2008 2006-2007
RS. / Lacs Rs. / Lacs
2. Contingent Liabilities
not provided for :-
Guarantee given by the Company
to Electricity Department 25.00 25.00
Guarantee given by the
Company to B.G.,
Nhavasheva JNPT 1.40 -
3 Additional information pursuant to the provisions of Paragraph 3 & 4
of Part II of Schedule VI of the Companies Act, 1956 :-
4 Since Company operates in only one segment i.e.manufacture of HDPE/
PP/ raffia products and hence no need for separate disclosure of
segment information as per AS - 17 issued by 1CAI.
5 Disclosure pertaining to Micro, Small and Medium Enterprises (as per
information available with the company)
The Company has sought confirmation from all the creditors regarding
their registration as Micro, Small and Medium Enterprises, however till
date of the Balance Sheet, no confirmation has ben received and hence
none of the creditors have been categorised as pertaining to Micro,
Small and Medium Enterprises.
6 Disclosures required by AS 18 relating to related parties / related
party transactions.
7 Exchange gain works outtoRs.24881.06 (Previous Year 61,195.86) net
of loss Rs.-(Previous Year Nil) which has beeu credited to Profit &
Loss A/c
8 Post employment benefits
Consequent upon the adoption of the Companies (Accounting Standards)
Rules 2006, with effect from 1st April, 2007, Accounting Standard 15
(Revised ) has been made applicable to the Company from the current
year and accordingly provision of the Post employment benefits has
become compulsory. The Company is in process of quantifying total
liability and would be reviewing its policy and would be commencing
charging the same to Profit and Loss account in the coming year.
Mar 31, 2007
1. Corresponding figures of the previous year have been regrouped
wherever necessary to conform to current years figures.
2006-2007 2005-2006
RS. / Lacs Rs. / Lacs
2. Contingent Liabilities
not provided for :-
(a) Guarantee given by the
Company to Electricity Department 25.00 25.00
3 Additional information pursuant to the provisions of Paragraph 3 & 4
of Part II of Schedule VI of the Companies Act, 1956 :-
4 Since Company operates in only one segment i.e.manufacture of HDPE/
PP/ raffia products so no need for separate disclosure of segment
information as per AS - 17 issued by ICA1.
5 Particular on small scale industries have been furnished to the
extent such parties have been identified on the basis of information
available with company. The small scale industries to whom the company
owes any sum which is outstanding as on 31 st March 2007 for more than
30 days are:
ARIHANT INDUSTRIES ARIHANT POLY SACKS JINESHWAR INDUSTRIES KAWASAI
LUBES (I) PVT. LTD. LOTUS POLYIWIST (P) LTD. SHAH PACKAGING PVT. LTD.
UNI-GLOBE PACKAGING PVT.LTD.[CREDI] VARSHA PRINTING INKS MFG.CO.
6 Disclosures required by AS 18 relating to related parties / related
party transactions.
7 Exchange gain works out to Rs. 61,195.86 (Previous Year Nil) net of
loss Rs. Nil (Previous Year Nil) which has been credited to Profit &
Loss A/c.
Mar 31, 2006
1. Corresponding figures of the previous year have been regrouped
wherever necessary to conform to current years figures.
2005-2006 2004-2005
RS. / Lacs Rs. / Lacs
2. Contingent Liabilities not provided for :-
(a) Guarantee given by the Company to
Electricity Department 25.00 10.00
5 Additional information pursuant to the provisions of Paragraph 3 & 4
of Part II of Schedule VI of the Companies Act, 1956 :-
13 The Company has a single Business Segment namely manufacture of
HDPE/ PP/ raffia products .
b) Nature of Provisions:
i. Provision for Excise duty of Rs. 201,165 on Finished stock at the
end of the year.
It is expected that the majority of this expenditure will be incurred
in the next Financial Year.
ii. Other provision includes Provision for Sales tax. Provision for
Profession tax and Provision for Contribution to PP.
17 Particular on small scale industries have been furnished to the
extent such parties have been identified on the basis of information
available with company. The small scale industries to whom the company
owes any sum which is outstanding as on 31st March 2006 for more than
30 days are:
ARIHANT INDUSTRIES ARIHANT POLY SACKS GOODWEEK INDUSTRIES JINESHWAR
INDUSTRIES KALPANA INDUSTRIES LTD. KAWASAI LUBES (1) PVT. LTD. LANTEC
TECHNOLOGIES LOTUS POLYIWIST (P) LTD. PRINCE ADHESIVE TAPES PVT.LTD.
SANBROS PLASTICS PVT.LTD.
SHAH PACKAGING PVT. LTD.
SHREYA INDIA PVT. LTD.
SHRI KHEM1SATI PLASTIC PVT.LTD.
SPECTRAMIX PLASTICS
UNI-GLOBE PACKAGING PVT.LTD.[CRED1]
VARSHA PRINTING INKS MFG.CO.
WELSET PLAST EXTRUSION LTD.
PETROLEUM ENGINEERS
SAURAB ENTERPRISES
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