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Notes to Accounts of Garware Technical Fibres Ltd.
Mar 31, 2025
* During the year ended 31st March, 2025, the Company has bought back 5,25,000 equity shares of '' 10/- each under the buyback offer
** On 6th January, 2025, the Company has allotted 7,94,12,676 fully paid-up Bonus Equity Shares of '' 10/- each in the ratio of 4:1 to the members of the Company. The Paid up Capital on account of Bonus issue of '' 79,41,26,760/- has been appropriated from General Reserve of the Company.
During the year, the paid-up capital of the Company stands increased to '' 99,26,58,450/- from '' 20,37,81,690/- on account of Buyback and Bonus.
ii) Rights, Preferences and restrictions attached to Equity Shares:
The Company has only one class of equity shares having a par value of '' 10/- per Share. Each shareholder of equity shares is entitled for one vote per share. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the Shareholders of equity shares are eligible to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any.
iv) In the period of five years immediately preceding 31st March, 2025:
During the year ended 31st March, 2025, the Company has allotted 7,94,12,676 fully paid-up Bonus Equity Shares of '' 10/- each in the ratio of 4:1 to the eligible members of the Company.
During the year ended 31st March, 2025 the Company has bought back 5,25,000 equity shares of '' 10/- each under the buyback offer
During the year ended 31st March, 2023, the Company has bought back 2,40,000 equity shares of '' 10/- each under the buyback offer.
During the year ended 31st March, 2021, the Company has bought back 3,17,391 equity shares of '' 10/- each under the buyback offer.
During the year ended March 31, 2021, the Company has made Reduction of capital of 9,46,500 equity shares of '' 10/- each, held by GWRL Managerial Staff Welfare Trust.
Capital Reserve: The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company own equity instruments to capital reserve
Capital redemption reserve: As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the Companies Act, 2013. Retained earnings: This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date. Securities Premium: Securities Premium has been created consequent to issue of shares at premium. These reserves can be utilised in accordance with Section 52 of the Companies Act, 2013.
General Reserves: General Reserves pertains to the retained earnings transferred from Profit Reserve
Foreign currency translation reserve: The exchange differences arising from the translation of financial statements of foreign operations with functional currency other than Indian Rupee is recognised in other comprehensive income and is presented within equity in the foreign currency translation reserve.
Appeals filed by the Company against income tax assessment orders for Assessment Years 2013-14 to 2020-21 have been adjudicated during the year by the appellate authority, which has granted substantial relief in favour of the Company. Based on the relief granted, no material financial impact is expected. However, the communication from the Assessing Officer giving effect to the appellate orders is awaited as of the reporting date.
40 Gratuity
The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employee who has completed at least specified years of service gets a gratuity on departure @ 15 days (minimum) of the last drawn salary for each completed year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy. The fund has formed a trust and it is governed by the Board of Trustees.
The fund is subject to risks such as asset volatility, changes in bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset-liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk-averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.
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 previous periods.
41 Segment Reporting
(a) The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. These business segments are : 1. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as secondary segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses.
(d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallocable.
iii) Notes :
The business segments viz. ''Synthetic Cordage'' and ''Fibre and Industrial Products and Projects'' are considered as the primary segments. Synthetic Cordage comprises of Ropes, Twines and nettings made of Twine. Fibre and Industrial Products & Projects segment comprises of fibre, Synthetic fabric, Yarn, Woven and Non-woven textiles, Secugrids, Coated steel gabions, Machinery and project. Intersegment sales are accounted for at market value.
The geographical segments on the basis of location of customers are considered as secondary segments. Sales are recognised as sales to customers in India and sales to customers outside India. As the Company has integrated manufacturing facilities, it is not possible to directly attribute or allocate on a reasonable basis, the expenses, assets and liabilities to the geographical segment.
Information about major customers
No single customer represents 10% or more of the Group''s total revenue for the years ended March 31, 2025 and 2024, respectively.
|
44 CONTINGENT LIABILITIES : - Incorporation Of Subsidiary (for wholly owned subsidiary Garware Technical Fibres UK Pvt. Ltd.) |
31st March, 2025 |
('' in lakhs) 31st March, 2024 |
|
- Share Capital ( 10,000 shares of £ 1.00 each) In respect of matters under dispute |
11.07 |
â |
|
- Income tax |
-* |
3,163.85 |
|
- Deposited in Small Cause Court, Mumbai |
869.75 |
822.19 |
|
- Octroi *Refer Note No. 39 Income taxes. |
21.64 |
21.64 |
45 Estimated amount of contracts remaining to be executed on Capital Account and not provided for net of Advances '' 1631.80 lakhs (As at 31st March, 2024 '' 2530.05 lakhs)
b. Fair value hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The following table provides the fair value measurement hierarchy of the Company''s financials assets and liabilities that are measured at fair value or where fair value disclosure is required:
c. Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments.
(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
d Financial risk management objectives
The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Management Group (''TMG'') manages these risks.
All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises of risks relating to interest rate risk and other price risks such as equity price risk and commodity price risk. Financial instruments affected by market risks mainly include borrowings, deposits and investments.
Foreign currency risk management
Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company''s management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly suitable hedges are undertaken.
The Company''s foreign currency exposure arises mainly from foreign exchange imports, exports and other income/expenses in foreign currency, primarily with respect to USD.
As at the end of the reporting period, the carrying amounts of the company''s foreign currency denominated monetary assets and liabilities in respect of the primary foreign currency i.e. USD and derivative to hedge the exposure, are as follows:
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations and investments in debt instruments including debt mutual fund.
e Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. 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. f Trade Receivable
Customer credit risk is managed by SCM team subject to the company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and followed up.
g Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. h Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of bank deposits and cash credit facilities. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.
i Excessive risk concentration
Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Companyâs performance to developments affecting a particular industry. Company believes that
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53 Capital Management
The Company''s objective when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholders expectations. The policy of the company is to borrow through banks supported by committed borrowing facility to meet anticipated funding requirements.
54 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
55 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
56 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
57 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
58 The Company has used the borrowings from banks for the purpose for which it was obtained.
59 The figures of previous year have been regrouped / rearranged, wherever necessary to conform to current year''s presentation.
Mar 31, 2024
2.16 Provisions and Contingent Liabilities:
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.
When the Company expects some or all of a provision to be reimbursed, the same is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A Contingent Liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of enterprise or a present obligation that arises from past events that may, but probably will not, require an outflow of resources.
Both provisions and contingent liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes.
2.17 Government Grants and Subsidy:
Grants and Subsidies from the government are recognized when there is a reasonable assurance that (I) the Company will comply with the conditions attached to them, and (ii) the grant / subsidy will be received.
Government grants of the nature of promoters'' contribution are credited to capital reserve and treated as a part of the shareholders'' funds.
2.18 Earnings Per Share:
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year are adjusted for events including a bonus issue, bonus element in right issue to existing shareholders, share split, and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
2.19 Cash and Cash Equivalent:
Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term highly liquid investments which are subject to insignificant risk of changes in value.
2.20 Cash Flow Statement:
The statement of cash flows have been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value to be cash equivalents."
2.21 Commitments:
Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed as follows:
(a) The estimated amount of contracts remaining to be executed on capital accounts and not provided for; and
(b) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the Management.
2.22 Segment Reporting:
(A) Operating Segments:
i) Synthetic Cordage
ii) Fibre and Industrial Products and Projects Identification of Segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating decision maker.
The Management monitor the operating result of its business units separately for the purpose of making decision about resource allocation and performance assessment. For management purposes, operating segments have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. The company''s financing and Income Taxes are not allocated to operating segments.
The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the company.
Segments Revenue and Results:
Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Income /Costs which relate to the Company as a whole and are not allocable to segments on a reasonable basis have been included under Unallocated income / costs. Interest income and expense are not allocated to respective segments.
Segments Assets and Liabilities:
Segment Assets / Liabilities include all operating assets / liabilities used by the operating segments. Common assets and liabilities which cannot be allocated to any of the business segment are shown as unallocable assets / liabilities. Inter Segment Transfer:
Inter segment revenues are recognised at sale price. The same is based on market price and business risks. Profit or loss on inter Segment transfer are eliminated at the Company level.
(B) Significant Accounting Judgements, Estimates and Assumptions:
The preparation of Financial Statements is in conformity with the recognition and measurement principles of Ind AS which requires the management to make judgements for estimates and assumptions that affect the amounts of assets, liabilities and the disclosure of contingent liabilities on the reporting date and the amounts of revenues and expenses during the reporting period and the disclosure of contingent liabilities. Differences between actual results and estimates are recognized in the period in which the results are known / materialize.
2.23 Estimates Assumptions and Judgements:
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available
when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:
a) Estimation of current tax expense and deferred tax:
The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these items may give rise to material profits/losses and/or cash flows. Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.
b) Recognition of deferred tax assets / liabilities:
The recognition of deferred tax assets/ liabilities is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of temporary differences can be deducted. To determine the future taxable profits, reference is made to the latest available profit forecasts.
c) Estimation of Provisions & Contingent Liabilities:
The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual liability may be different from the originally estimated as provision.
d) Estimated useful life of Property, Plant and Equipment:
Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life, its expected usage pattern and the expected residual value at the end of its life. The useful lives, usage pattern and residual values of Company''s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology etc.
e) Estimation of Provision for Inventory:
The Company writes down inventories to net realisable value based on an estimate of the realisability of inventories. Write downs on inventories are recorded where events or changes in circumstances indicate that the balances may not be realised. The identification of write-downs requires the use of estimates of net selling prices of the down-graded inventories. Where the expectation is different from the original estimate, such difference will impact the carrying value of inventories and write-downs of inventories in the periods in which such estimate has been changed.
f) Estimation of Defined Benefit Obligation:
The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for post employment plans include the discount rate. Any changes in these assumptions will impact the carrying amount of such obligations.
g) The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit obligations. In determining the appropriate discount rate, the Company considers the interest rates of government bonds of maturity approximating the terms of the related plan liability.
h) Estimated fair value of Financial Instruments:
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Management uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.
(C) Recent accounting pronouncements
2.24 Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.
40 Gratuity
The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employee who has completed at least specified years of service gets a gratuity on departure @ 15 days (minimum) of the last drawn salary for each completed year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy. The fund has formed a trust and it is governed by the Board of Trustees.
The fund is subject to risks such as asset volatility, changes in bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset-liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk-averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.
41 Segment Reporting
(a) The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. These business segments are : 1. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as secondary segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses.
(d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallocable.
b. Fair value hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
c. Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments.
(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
d Financial risk management objectives
The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Management Group (''TMG'') manages these risks.
All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises of risks relating to interest rate risk and other price risks such as equity price risk and commodity price risk. Financial instruments affected by market risks mainly include borrowings, deposits and investments.
Foreign currency risk management
Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company''s management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly suitable hedges are undertaken.
The Company''s foreign currency exposure arises mainly from foreign exchange imports, exports and other income/expenses in foreign currency, primarily with respect to USD.
As at the end of the reporting period, the carrying amounts of the company''s foreign currency denominated monetary assets and liabilities in respect of the primary foreign currency i.e. USD and derivative to hedge the exposure, are as follows:
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations and investments in debt instruments including debt mutual fund. Interest rate sensitivity
The below table demonstrate the sensitivity of the company''s profit before tax to a reasonable possible change in interest rate with all other variables being constant.
e Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. 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. f Trade Receivable
Customer credit risk is managed by SCM team subject to the company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and followed up.
g Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. h Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of bank deposits and cash credit facilities. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.
i Excessive risk concentration
Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Companyâs performance to developments affecting a particular industry. Company believes that there is no such excessive risk concentration.
53 Capital Management
The Company''s objective when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholders expectations. The policy of the company is to borrow through banks supported by committed borrowing facility to meet anticipated funding requirements.
The capital structure is governed by policies approved by the Board of Directors.
54 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
55 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
56 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
57 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
58 The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961
59 The Company has used the borrowings from banks for the purpose for which it was obtained.
60 The figures of previous year have been regrouped / rearranged, wherever necessary to conform to current year''s presentation.
As per our Report of even date
For MEHTA CHOKSHI & SHAH LLP SHASHANK GUPTA V. R. GARWARE M. V. GARWARE
Chartered Accountants, Chief Financial Officer Chairman & Managing Director Director
F.R.NO.: 106201W/W100598 DIN. 00092201 DIN. 06948274
(RAKESH AGARWAL) SUNIL AGARWAL S. P. KULKARNI A. S. WAGLE
Partner Company Secretary Director Director
M. No. 170685 M. No. FCS 6407 DIN. 00006914 DIN. 03403801
S. S. RAJPATHAK MALLIKA SAGAR
Mumbai, Pune, Director Director
27th May, 2024 27th May, 2024 DIN: 00040387 DIN: 02228386
Mar 31, 2023
ii) Rights, Preferences and restrictions attached to Equity Shares:
The Company has only one class of equity shares having a par value of '' 10/- per Share. Each shareholder of equity shares is entitled for one vote per share. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting . In the event of liquidation of the Company, the Shareholders of equity shares are eligible to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any.
iv) In the period of five years immediately preceding 31st March, 2023:
During the year ended 31st March, 2023, the Company has bought back 2,40,000 equity shares of '' 10/- each under the buyback offer.
During the year ended 31st March, 2021, the Company has bought back 3,17,391 equity shares of '' 10/- each under the buyback offer.
During the year ended 31st March, 2021, the Company has made Reduction of capital of 9,46,500 equity shares of '' 10/- each, held by GWRL managerial staff welfare trust.
The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employee who has completed at least specified years of service gets a gratuity on departure @ 15 days (minimum) of the last drawn salary for each completed year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy. The fund has formed a trust and it is governed by the Board of Trustees.
The fund is subject to risks such as asset volatility, changes in bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset-liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk-averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.
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 previous periods.
(a) The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. These business segments are : 1. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as secondary segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses.
(d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallocable.
The business segments viz. ''Synthetic Cordage'' and ''Fibre and Industrial Products and Projects'' are considered as the primary segments. Synthetic Cordage comprises of Ropes, Twines and nettings made of Twine. Fibre and Industrial Products & Projects segment comprises of fibre, Synthetic fabric, Yarn, Woven and Non-woven textiles, Secugrids, Coated steel gabions, Machinery and project. Intersegment sales are accounted for at market value.
The geographical segments on the basis of location of customers are considered as secondary segments. Sales are recognised as sales to customers in India and sales to customers outside India. As the Company has integrated manufacturing facilities, it is not possible to directly attribute or allocate on a reasonable basis, the expenses, assets and liabilities to the geographical segment.
|
44 CONTINGENT LIABILITIES : In respect of matters under dispute |
31st March, 2023 |
('' in lakhs) 31st March, 2022 |
|
- Sales Tax |
9.15 |
9.15 |
|
- Income tax |
3,163.85 |
3,163.85 |
|
- Deposited in Small Cause Court, Mumbai |
731.56 |
- |
|
- Octroi |
21.64 |
21.64 |
45 Estimated amount of contracts remaining to be executed on Capital Account and not provided for net of Advances '' 479.22 lakhs (As at 31st March, 2022 '' 569.15 lakhs)
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The following table provides the fair value measurement hierarchy of the Company''s financials assets and liabilities that are measured at fair value or where fair value disclosure is required:
c. Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments.
(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
d Financial risk management objectives
The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Management Group (''TMG'') manages these risks.
All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises of risks relating to interest rate risk and other price risks such as equity price risk and commodity price risk. Financial instruments affected by market risks mainly include borrowings, deposits and investments.
Foreign currency risk management
Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company''s management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly suitable hedges are undertaken.
The Company''s foreign currency exposure arises mainly from foreign exchange imports, exports and other income/expenses in foreign currency, primarily with respect to USD.
i Excessive risk concentration
Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Companyâs performance to developments affecting a particular industry. Company believes that there is no such excessive risk concentration.
The Company''s objective when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholders expectations. The policy of the company is to borrow through banks supported by committed borrowing facility to meet anticipated funding requirements.
54 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
55 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
56 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
57 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
58 The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961
59 The Company has used the borrowings from banks for the purpose for which it was obtained.
60 The figures of previous year have been regrouped / rearranged, wherever necessary to conform to current year''s presentation.
Mar 31, 2022
During the year, income tax assessment orders for AY 2013-14 to AY 2019-20 were passed. There is an aggregate income tax demand of '' 3,183.65 lakh pertaining to the said assessment orders. Out of this a majority pertains to procedural delays in issuance of certain documents from concerned authority which is required to be submitted to the department. The Company has filed appeals for all the assessment years, which are pending before the appellate authority. The Company expects a positive outcome and hence the same is treated as a contingent liability.
The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employee who has completed at least specified years of service gets a gratuity on departure @ 15 days (minimum) of the last drawn salary for each completed year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy. The fund has formed a trust and it is governed by the Board of Trustees.
The fund is subject to risks such as asset volatility, changes in bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset-liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk-averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficit (based on valuation performed) will arise.
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 previous periods.
(a) The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. These business segments are : 1. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as secondary segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses.
(d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallocable.
The business segments viz. ''Synthetic Cordage'' and ''Fibre and Industrial Products and Projects'' are considered as the primary segments. Synthetic Cordage comprises of Ropes, Twines and nettings made of Twine. Fibre and Industrial Products & Projects segment comprises of fibre, Synthetic fabric, Yarn, Woven and Non-woven textiles, Secugrids, Coated steel gabions, Machinery and project. Intersegment sales are accounted for at market value.
The geographical segments on the basis of location of customers are considered as secondary segments. Sales are recognised as sales to customers in India and sales to customers outside India. As the Company has integrated manufacturing facilities, it is not possible to directly attribute or allocate on a reasonable basis, the expenses, assets and liabilities to the geographical segment.
Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year.
* Includes an amount of '' 154.61 lakhs earmarked for ongoing projects (including construction / acquisition of assets) transferred to Unspent CSR Account in terms of Section 135(6) of the Companies Act, 2013, for the Financial Year 2021-22.
** Includes an amount of '' 219.73 lakhs earmarked for ongoing projects transferred to Unspent CSR Account in terms of Section 135(6) of the Companies Act, 2013, for the Financial Year 2020-21.
Nature of CSR activity:
Activities like Promoting health care, Education, Environmental Sustainability, Rural Development and Livelihood enhancement projects.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The following table provides the fair value measurement hierarchy of the Company''s financials assets and liabilities that are measured at fair value or where fair value disclosure is required:
c. Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments.
(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
d Financial risk management objectives
The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Management Group (''TMG'') manages these risks.
All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises of risks relating to interest rate risk and other price risks such as equity price risk and commodity price risk. Financial instruments affected by market risks mainly include borrowings, deposits and investments.
Foreign currency risk management
Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company''s management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly suitable hedges are undertaken.
The Company''s foreign currency exposure arises mainly from foreign exchange imports, exports and other income/expenses in foreign currency, primarily with respect to USD.
As at the end of the reporting period, the carrying amounts of the company''s foreign currency denominated monetary assets and liabilities in respect of the primary foreign currency i.e. USD and derivative to hedge the exposure,
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations and investments in debt instruments including debt mutual fund.
Interest rate sensitivitye Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. 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. f Trade Receivable
Customer credit risk is managed by SCM team subject to the company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and followed up.
g Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. h Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of bank deposits and cash credit facilities. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.
i Excessive risk concentration
Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Companyâs performance to developments affecting a particular industry. Company believes that there is no such excessive risk concentration.
The Company''s objective when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholders expectations. The policy of the company is to borrow through banks supported by committed borrowing facility to meet anticipated funding requirements.
51 COVID - 19 Pandemic and resulting Lockdown measures by the Government of India has impacted economic activities worldwide and as a result, impacted operations and financial results of the Company. The Company has considered all available information, while preparing its Financial Results for the year ended 31st March, 2022.
52 The figures of previous year have been regrouped / rearranged, wherever necessary to conform to current year''s presentation.
Mar 31, 2018
b) Rights, Preferences and restrictions attached to Equity Shares:
The Company has only one class of Equity Shares having a par value of Rs, 10 per Share. Each Shareholder of Equity Shares is entitled for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the Shareholders of equity shares are eligible to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any.
The above Shareholding represents the legal ownership of shares
* Out of 35,66,162 (16.30%) Equity Shares, 21,18,893 (9.68%) Equity Shares are registered in the name of Mr. V. R.
Garware as partner of Partnership Firms. Beneficial interest in the said share is held by the Partnership Firms. ** Not holding more than 5% shares.
*** During the year ended 31st March, 2018,36,12,053 Equity Shares were transmitted from Late Shri Ramesh B. Garware to Mr.V.R. Garware.
d) Shares allotted as fully paid up by way of Bonus Shares (during 5 years preceding 31st March, 2018): Nil
Note:
1. Loans availed from Bank of India Consortium are secured by a first charge, pari passu, by way of hypothecation of the Company''s current assets, viz. raw materials, stock-in-process, semi-finished goods, finished goods, stores & spares not relating to Plant & Machinery, bills receivable, and book debts. Secured loan including post shipment credit carries an interest rate ranging from 5% to 6 % p.a. for repayments on various dates ranging up to 180 days.
2. Unsecured loan carried interest @11% p.a. for amount received from Late Shri Ramesh B. Garware. The same has been repaid during the year ended 31st March, 2018.
Note:
Trade payable are not interest bearing and are normally settled as terms of agreement. Refer Note 46 for discussion on company''s credit risk management policies and procedures.
Details of dues to Micro and Small Enterprises are defined under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
Deferred Tax
Please refer to Note No. 23
38 Gratuity
The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employee who has completed at least specified years of service gets a gratuity on departure @15 days (minimum) of the last drawn salary for each completed year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy. The fund has formed a trust and it is governed by the Board of Trustees.
The fund is subject to risks such as asset volatility, changes in bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset-liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk-averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.
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 previous periods.
39 Segment Reporting
(a) The Company''s operating businesses are organised and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. These business segments are : 1. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as secondary segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The company generally accounts for inter-segment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallowable expenses.
d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallowable.
iii) Notes:
The business segments viz. ''Synthetic Cordage'' and ''Fibre and Industrial Products and Projects'' are considered as the primary segments. Synthetic Cordage comprises of Ropes, Twines and Nettings made of Twine. Fibre and Industrial Products & Projects segment comprises of Fibre, Synthetic Fabric, Yarn, Woven and Non-Woven Textiles, Secugrids, Coated steel gabions, Machinery and project. Inter-segment sales are accounted for at market value.
The Geographical Segments on the basis of location of customers are considered as secondary segments. Sales are recognised as sales to customers in India and sales to customers outside India. As the Company has integrated manufacturing facilities, it is not possible to directly attribute or allocate on a reasonable basis, the expenses, assets and liabilities to the Geographical Segment.
40 TRANSACTIONS WITH RELATED PARTIES (I) List of Related Parties & Relationship :
A. Subsidiary / Joint Venture Company
1. Garware Environmental Services Pvt. Ltd.
B. Associate Company
1. Garware Meditech Pvt. Ltd.
C. Executive Directors - Key Managerial Personnel
1. Mr. V. R. Garware
D. Non Executive Directors
1. Mrs. M. V. Garware
2. Mr. R. M. Telang - Independent Director
3. Mr. S. P. Kulkarni - Independent Director
4. Mr. Ashish Goel - Independent Director
5. Mr. M. V. Subbarao (up to 21-04-2017)
6. Mr. S. S. Rajpathak (w.e.f. 24-05-2017)
E. Enterprises over which control is exercised by the individual listed at''C'' above
1. Manmit Investment &Trading Company Pvt. Ltd.
2. GarwareCapitalMarketsLtd.
3. Gurukrupa Investments & Trading Company Pvt. Ltd.
4. Sanand Investments & Trading Company Pvt. Ltd.
5. Moonshine Investments & Trading Company Pvt. Ltd.
6. Starshine Investments &Trading Company Pvt. Ltd.
7. Sukukar Holdings & Trading Company Pvt. Ltd.
8. VMIR Investment Ltd.
9. VRG Investments Ltd.
10. Garware Infrastructure Pvt. Ltd.
11. RameshTradingCompany
12. SunitaTradingCompany
13. GarwareResearchlnstitute
14. Vimlabai Garware Research Institute
15. Consolidated Agricultural & Dairy Farming Co. Pvt. Ltd.
16. Late Shri R. B. Garware Estate
b. Fair value hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The following table provides the fair value measurement hierarchy of the Company''s financial assets and liabilities that are measured at fair value or where fair value disclosure is required:
c. Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments.
(i) The management assesses that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The carrying value of those investments are individually immaterial.
d Financial risk management objectives
The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Companyâs senior management which is supported by aTreasury Management Group(''TMG'') manages these risks.
All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises of risks relating to interest rate risk and other price risks such as equity price risk and commodity price risk. Financial instruments affected by market risks mainly include borrowings, deposits and investments.
Foreign currency risk management
Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company''s management has set policy wherein exposure is identified, benchmark is set and monitored closely, and accordingly suitable hedges are undertaken.
The Company''s foreign currency exposure arises mainly from foreign exchange imports, exports and other income/expenses in foreign currency, primarily with respect to USD.
As at the end of the reporting period, the carrying amounts of the company''s foreign currency denominated monetary assets and liabilities in respect of the primary foreign currency i.e. USD and derivative to hedge the exposure, are as follows:
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations and investments in debt instruments including debt mutual fund. Interest rate sensitivity
The below table demonstrate the sensitivity of the company''s profit before tax to a reasonable possible change in interest rate with all other variables being constant.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. 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.
Trade Receivable
Customer credit risk is managed by SCM team subject to the company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and followed up.
Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counter parties and within credit limits assigned to each counter party. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of bank deposits and cash credit facilities. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.
The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments. (Rs, in Lakhs)
Excessive risk concentration
Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry. Company believes that there is no such excessive risk concentration.
47 Capital Management
The Company''s objective when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholders expectations. The policy of the company is to borrow through banks supported by committed borrowing facility to meet anticipated funding requirements.
The capital structure is governed by policies approved by the Board of Directors.
48.3 Effect of Ind AS adoption on the statement of cash flows for the year ended 31st March, 2017 There are no material adjustments to the statement of cash flow as reported under previous GAAP.
48.4 Reconciliation Explanations:
a Remeasurements of financial assets and liabilities measured at amortised cost
Under Indian GAAP, the deposit, retention money receivable/payable are valued at cost less provision for impairment. Ind AS requires certain categories of financial assets and liabilities to be measured at amortized cost using the effective interest rate method. Deposit/retention money is a Financial Asset as the lease agreement/work contracts give a contractual right to the company to receive cash. Deposit/retention money satisfies the contractual cash flow characteristic test and it also satisfies the business model test as there is intention of holding to collect contractual cash flows. Thus the same have been valued at amortised cost. The same has resulted in decrease in equity under Ind-AS by f 113.78 lakhs and f 133.92 respectively as at 31st March, 2017 and 1st April, 2016. b Amortisation of leasehold land
As per Ind AS, leasehold property is also subject to amortisation. The company did not provide amortisation up to 1st April, 2016 on leasehold land. Under Ind AS financials, the company has provided amortisation on leasehold land with retrospective effect. The same has resulted in decrease in equity under Ind-AS by f 30.95 lakhs and Rs,27.82 lakhs respectively as at 31st March, 2017 and 1st April, 2016. c Remeasurement of equity instruments measured at FVTOCI
The company''s investments in certain equity instruments are recorded at FVTOCI. In previous GAAP, the same was measured at cost. The same has resulted in decrease in equity under Ind-AS by f 349.37 lakhs and f 495.26 lakhs respectively as at 31st March, 2017 and 1st April, 2016. d ECL on trade receivables
As per Ind AS 109, the financial assets are subject to expected credit loss. Under previous GAAP, there was no such provision. In compliance with Ind AS 109, the company has made provision of ECL on Trade Receivables following simplified approach. The same has resulted in decrease in equity under Ind-AS by f 18.45 lakhs and f 24.38 lakhs respectively as at 31st March, 2017 and 1st April, 2016. e Remeasurement of investments measured at FVTPL
The company''s Investments in Debt Mutual Fund/NCD/FMP are recorded at FVTPL. In previous GAAP, the same was measured at cost. The same has resulted in increase in equity under Ind-AS by f 78.51 lakhs and f NIL respectively as at 31st March, 2017 and 1st April, 2016. f Proposed dividend including tax thereon
Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the Financial Statements were considered as adjusting events and accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the Shareholders in the general meeting. Accordingly, the liability for proposed dividend as at 1st April, 2016 included under the Provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has been increased by an equivalent amount. The same has resulted in increase in equity under Ind-AS by NIL and f 869.11 lakhs respectively as at 31st March, 2017 and 1st April, 2016. g Deferred Tax impact on Ind-AS adjustments
Various transitional adjustments resulted in temporary differences between taxable profits and accounting profits. Tax adjustments includes deferred tax impact on account of difference between previous GAAP and Ind AS on the adjustments discussed above. The same has resulted in increase in equity under Ind-AS by f 68.47 lakhs and f 119.43 lakhs respectively as at 31st March, 2017 and 1st April, 2016. h Remeasurement of defined benefit obligation
Under the previous GAAP, actuarial gain and losses are charged to profit or loss, however under Ind-AS, they form part of remeasurement of defined benefit liability/assets and are recognised in OCI.
48.5 Disclosures as required by Indian Accounting Standard (Ind-AS) 101 First Time adoption of Indian Accounting Standards:
The Company has adopted Ind AS with effect from 1st April, 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Retained Earnings as at 1st April, 2015 and all the periods presented have been restated accordingly.
Exemptions availed on first time adoption of Ind AS 101:
On first time adoption of Ind AS, Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:
i) Deemed Cost:
Ind AS 101 permits a first time adopter to elect to continue with the carrying values measured under the previous GAAP and use that carrying value as the deemed cost for property, plant and equipment, and intangible assets on the date of transition.
ii) Investments in subsidiary and associate:
The company has elected to consider the carrying cost of equity investments in subsidiary and associate as per the previous GAAP as the deemed cost at the date of transition.
iii) Designation of previously recognised financial instruments:
Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such designation of previously recognised financial assets, as ''fair value through other comprehensive income'' or ''fair value through profit and loss'' on the basis of the facts and circumstances that existed at the date of transition to Ind AS.
Accordingly, the Company has designated its investments in certain investments at fair value through other comprehensive income and fair value through profit and loss on the basis of the facts and circumstances that existed at the date of transition to Ind AS.
iv) Leases:
Ind AS17 - Leases requires an entity to assess whether a contract or an arrangement is in the nature of lease arrangement. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and recognised arrangements having embedded leases based on facts and circumstances existing as at the date of Transition.
Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements:
a) Estimates:
The estimates as at 1st April, 2016 and 31st March, 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustment to reflect and differences if any, in accounting policies) apart from the following items where the application of previous GAAP did not require estimation:
(i) Impairment of financial assets based on the expected credit loss model: and
(ii) Investments in equity instruments carried as FVPL or FVOCI.
The estimates used by the Company to present the amounts in accordance with the Ind AS reflect conditions that existed at the date on transition to Ind AS.
b) Derecognition of financial assets:
The Company has elected to apply the Derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.
c) Classification and movement of financial assets and liabilities:
The Company has classified the financial assets and liabilities in accordance with Ind AS 109 on the basis of facts and circumstances that existed at the date on transition to Ind AS.
Mar 31, 2017
b) Rights, Preferences and restrictions attached to Equity Shares:
The Company has only one class of equity shares having a par value of Rs, 10 per share. Each shareholder of equity shares is entitled for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the shareholders of equity shares are eligible to receive remaining assets of the Company, in proportion of their shareholding, after distribution of all preferential amounts, if any.
* Out of 16.51% shares 9.99% (Previous year 9.99%) are held on behalf of a Partnership Firm.
** As informed by Mr. V R. Garware, the shares standing in the name of Late Shri R. B. Garware are bequeathed to him and some are yet to be transmitted in his name. Pending transmission of the said shares in the name of Mr. V R. Garware, they continue to be registered in the name of Late Shri R. B. Garware.
d) Shares allotted as fully paid up by way of Bonus Shares (during 5 years preceding 31st March, 2017): Nil
Note:
The above secured Loans are availed from Consortium Bankers, viz., Bank of India, Bank of Baroda, IDBI Bank Ltd., HDFC Bank Ltd., CITI Bank N.A, DBS Bank Ltd. and The Hongkong and Shanghai Banking Corporation Ltd., which are secured by a first charge, pari passu, interest by way of hypothecation of the Company''s current assets, viz. raw materials, stock-in-process, semi-finished goods, finished goods, stores & spares not relating to Plant & Machinery, bills receivable and book debts. The cash credit and packing credit (rupee and foreign currency loan) loan is repayable on demand.
* The said deposit was received from Late Shri R. B. Garware, and the same will be repaid on production of Probate of the Will dated 6th April, 2012 of Late Shri R. B. Garware. The figures include unpaid interest net of TDS.
1. SEGMENT REPORTING
(a) The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves in different markets. These business segments are : I. Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of the customers are identified as Secondary Segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial Statements. The Company generally accounts for inter-segment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except certain expenses which are not allocated to any segments by using appropriate basis. All other expenses which are not attributable or allocable to the segments have been disclosed as unallowable expenses.
(d) The segment assets and liabilities are directly attributable to the segments, except certain assets and liabilities which are allocated to the segments using appropriate basis. All other assets and liabilities are disclosed as unallowable.
iii) Notes:
The business segments viz. ''Synthetic Cordage'' and ''Fibre and Industrial Products'' and Projects'' are considered as Primary Segments. Synthetic Cordage comprises of Ropes, Twines and Nettings made of Twine. Fibre and Industrial Products & Projects segment comprises of Fibre, Synthetic Fabric, Yarn, Woven and Non-Woven Textiles, Secugrids, Coated Steel Gabions, Machinery and Projects. Inter-segment sales are accounted for at market value.
The Geographical Segments on the basis of location of customers are considered as Secondary Segments. Sales are recognized as sales to customers in India and sales to customers outside India. As the Company has integrated manufacturing facilities, it is not possible to directly attribute or allocate on a reasonable basis, the expenses, assets and liabilities to the Geographical Segment.
2. TRANSACTIONS WITH RELATED PARTIES
(I) List of Related Parties and Relationship:
A. Associates Companies
Garware Meditech Pvt. Limited
B. Subsidiary / Joint Venture Companies
Garware Environmental Services Pvt. Ltd.
C. Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives
1. Manmit Investment & Trading Company Pvt. Ltd.
2. Garware Capital Markets Ltd.
3. Gurukrupa Investments & Trading Company Pvt. Ltd.
4. Sanand Investments & Trading Company Pvt. Ltd.
5. Moonshine Investments & Trading Company Pvt. Ltd.
6. Starshine Investments & Trading Company Pvt. Ltd.
7. Sukukar Holdings & Trading Company Pvt. Ltd.
8. VMIR Investment Ltd.
9. VRG Investments Ltd.
10. Garware Infrastructure Pvt. Ltd
11. Ramesh Trading Company
12. Sunita Trading Company
13. Garware Research Institute
14. Vimlabai Garware Research Institute
15. Consolidated Agricultural & Dairy Farming Co. Pvt. Ltd.
16. Late Shri R. B. Garware Estate
D. Directors - Key Management Personnel Mr.V R. Garware
E. Relatives of Key Management Personnel Ms. M. V Garware
(Ill) Disclosure in Respect of Material Related Party Transactions during the year :
1 Licence fee paid toMr.V R. Garware of Rs, 79.80 lakhs (Previous year Rs, 78.30 lakhs) for the flat taken on Leave & Licence.
2 Depositreceivedof Rs, 1932.78 lakhs and refunded of Rs, 1791.45 lakhs(PreviousyearDepositReceivedofRs, 1888.62 lakhs and refunded of Rs, 1758.62 lakhs) include deposits from
V R. Garwareof Rs, 254 lakhs (Previousyear Rs, 189.75 lakhs)
Late Shri Ramesh B. Garware Estate of Rs, 141.33 lakhs (Previous year Rs, 130.00 lakhs)
Garware Capital Markets Ltd. of ^718.50 lakhs (Previous year ^ 903.15 lakhs)
Manmit Investments & Trading Co. Pvt. Ltd. of Rs, 140.90 lakhs (Previous year Rs, 98.02 lakhs)
Moonshine Investments and Trading Co. Pvt. Ltd. of Rs, 76.50 lakhs (Previousyear Rs, 55.47 lakhs) Sanandlnvestment&TradingCo.Pvt.Ltd.of Rs, 51.60 lakhs(Previousyear Rs, 41.64 lakhs)
Starshine Investments and Trading Co. Pvt. Ltd. of Rs, 37.30 lakhs (Previous year Rs, 30.35 lakhs) GurukrupalnvestmentsandTradingCo.Pvt.Ltd.of Rs, 15.45 lakhs(Previousyear Rs, 10.32 lakhs)
VMIR Investments Ltd. earlier known as Garware Utzon (Cordage) Ltd. of Rs, 235.90 lakhs (Previous year Rs, 199.04 lakhs) Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs, 47.60 lakhs (Previous year Rs, 38.45 lakhs)
VRG Investments Ltd. earlier known as Garware Indus Consulting Ltd. of Rs, 213.70 lakhs (Previous year Rs, 192.43 lakhs)
3 Interest paid on Deposit of Rs, 315.94 lakhs (Previous year Rs, 305.86 lakhs) includes
V R. Garwareof Rs, 15.90 lakhs (Previousyear Rs, 10.27 lakhs)
Late Shri Ramesh B. Garware Estate of Rs, 176.66 lakhs (Previous year Rs, 162.50 lakhs)
GarwareCapitalMarketsLtd.of Rs,45.47 lakhs (Previousyear Rs, 71.26 lakhs)
Manmit Investments & Trading Co. Pvt. Ltd. of Rs, 11.20 lakhs (Previous year Rs, 9.41 lakhs)
Moonshine Investments and Trading Co. Pvt. Ltd. of Rs, 7.32 lakhs (Previous year Rs, 4.93 lakhs)
Sanand Investment & Trading Co. Pvt. Ltd. of Rs, 5.09 lakhs (Previous year Rs, 3.76 lakhs)
Starshine Investments and Trading Co. Pvt. Ltd. of Rs, 3.68 lakhs (Previous year Rs, 2.71 lakhs)
Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs, 0.69 lakhs (Previous year Rs, 0.89 lakhs)
VMIR Investments Ltd. earlier known as Garware Utzon (Cordage) Ltd. of Rs, 23.71 lakhs (Previous year Rs, 18.66 lakhs) Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs, 4.68 lakhs (Previous year Rs, 3.46 lakhs)
VRG Investments Ltd. earlier known as Garware Indus Consulting Ltd. of Rs, 21.54 lakhs (Previous year Rs, 18.01 lakhs)
4 Payment to Key Management Personnel includes
V R. Garware Rs, 640.63 lakhs (Previous year Rs, 477.95 lakhs)
5. EARNING PER SHARE (EPS)
a. EPS computed in accordance with Accounting Standard 20 "Earning Per Share"
Basic Earnings Per Share are calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by the weighted average number of Equity Shares outstanding during the period. For the purpose of calculating diluted Earnings Per Share, the net profit or loss for the period attributable to Equity Shareholders and the weighted average number of Shares outstanding during the period are adjusted for the effects of all dilutive potential Equity Shares.
b. Proposed Dividend
To commemorate completion of 40 years of the Company, the Board of Directors of the Company have recommended a special one-time dividend of Rs, 1.50/- (15%) per share of Rs, 10/- each in addition to normal dividend of Rs, 3.50/- (35%) per share of Rs, 10/- each for the consideration of the Members at 40th Annual General Meeting of the Company. The total proposed dividend for the year including normal dividend and special one-time dividend aggregating to a total dividend of Rs, 5.00/- (50%) per share of Rs, 10/- each would absorb an amount of Rs, 1316.84/- lakhs (including dividend tax of Rs, 222.74/- lakhs) in Financial Year 2017-18.
6. CONTINGENT LIABILITIES
(i) Disputed Excise duty Rs, 27.57 lakhs (Previous year Rs, 27.57 lakhs)
(ii) Bank Guarantees for Rs, 1565.57 lakhs (Previous year Rs, 1483.56 lakhs), in the ordinary course of business, against which the Company has issued counter guarantees for the non funded Bank limits of Rs, 13,500 lakhs (Previous year Rs, 13,500 lakhs).
(iii) Disputed amount of Sales Tax liability Rs,4I.68 lakhs (Previous year Rs, 196.68 lakhs).
(iv) The interest portion on delayed payment of Octroi Liability amounting to Rs, 21.64 lakhs (Previous year Rs, 21.64 lakhs) is under dispute.
(vi) The Income Tax Liability due to the department''s appeals at higher levels (Supreme Court) amounting to Rs, 208 lakhs (Previous year Rs, 208 lakhs).
7. DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
(a) An amount of Rs, 2.37 lakhs (31st March, 2016, Rs, 23.44 lakhs) and Rs, 12.95 (31st March, 2016Rs, 22.76 lakhs) was due and outstanding to Suppliers as at the end of the year on account of Principal and Interest respectively.
(b) No interest was paid during the year.
(c) No interest outstanding at the end of the year where principal amount has been paid off to the supplier but interest amount is outstanding on 31st March, 2017.
(d) No amount of interest was accrued and unpaid at the end of the year.
The above information and that given in Note 10 - ''Trade Payable'' regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified, on the basis of the information available with the Company. This has been relied upon by the Auditors.
8. ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED ON CAPITAL ACCOUNT AND NOT PROVIDED FOR NET OF ADVANCES Rs, 981.38 LAKHS (PREVIOUS YEAR Rs, 135.39 LAKHS)
9. INTEREST IN FIRM/JOINT VENTURES
A. The Company has entered into a partnership agreement (Sopan D. Patil & GWR.L JV) in which the Company holds 40% share in profit / loss to execute Geo Synthetics Work - Contract value worth Rs,577.31 lakhs. During the year ended 31st March, 2017, the said partnership has incurred a loss of Rs, Nil (Previous year Rs,Nil).
B. The Company''s Joint Venture with Waste Management Pacific Pty Ltd. (WMPL), (a company incorporated under the law of Australia) to carry out the business of Environmental Engineering through ''Garware Environmental Services Pvt. Ltd.'' Joint Venture has became Wholly Owned Subsidiary of the Company w.e.f 28.11.2012, on acquisition of Shares held by WMPL.
10. These Financial Statements have been prepared in the format prescribed under Section 133 of Companies Act 2013 (Act1) read along with Rule 7 of the Company (Accounts) Rules, 2014, and Companies (Accounting Standards) Amendment Rules 2016, the provisions of the Act (to the extent notified) and guidelines issued by the Security and Exchange Board of India (SEBI). Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2016
* During the year 2015-16, the Company has bought back Nil Equity Shares of Rs, 10/- each under the
Buy Back Scheme (Previous Year 90,193 Equity Shares)
b) Rights, Preferences and restrictions attached to Equity Shares:
The Company has only one class of equity shares having a par value of Rs, 10 per share. Each
shareholder of equity shares is entitled for one vote per share. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the
event of liquidation of the Company, the shareholders of equity shares are eligible to receive
remaining assets of the Company, in proportion of their shareholding, after distribution of all
preferential amounts, if any.
* 9.99% (Previous year 9.99%) shares are held on behalf of a Partnership Firm.
** As informed by Mr. V R Garware, the shares standing in the name of Late Shri R B. Garware are
bequeathed to him and same are yet to be transmitted in his name. Pending transmission of the said
shares in the name of Mr. V R Garware, they continue to be registered in the name of Late Shri R B.
Garware.
d) Shares allotted as fully paid up by way of Bonus Shares (during 5 years preceding 31st March,
2016): Nil
Notes:
I) CITI Bank ECB term loan is repayable in 16 quarterly instilments of Rs,156.25 lacs each along
with interest from 26th December 2012. This loan is secured by way of hypothecation of the whole of
the movable fixed assets, comprising plant & machinery, computers, furniture and fixtures,
machinery spares, tools & accessories and other assets, both present & future on first charge on
pari-passu basis with others.
Note:
The above secured Loans are availed from Consortium Bankers, viz., Bank of India, Bank of Baroda,
IDBI Bank Ltd., HDFC Bank Ltd., CITI Bank N.A, DBS Bank Ltd. and The Hongkong and Shanghai Banking
Corporation Ltd., which are secured by a first charge, pari passu, interest by way of hypothecation
of the Company''s current assets, viz. raw materials, stock-in-process, semi-finished goods,
finished goods, stores & spares not relating to Plant & Machinery, bills receivable and book debts.
The cash credit and packing credit (rupee and foreign currency loan) loan is repayable on demand.
* The said deposit was received from Late Shri. R. B. Gar-ware, and the same will be repaid on
production of Probate of the Will dated 6th April, 2012 of Late Shri R. B. Gar-ware. The figures
include unpaid interest net of TDS.
Note : The Company has set aside from its General Reserve, as reserve amounting to Rs, 3 15 lacs in
FY 2000-01 for contingencies that may arise, in the event there is a diminution in the value of
investments, of a permanent nature, in the future.
Note:
A. Disclosure pursuant to Accounting Standard "AS 7 - Construction Contracts", the Construction
Work-in-Progress (Fibre & Industrial Product & Project Segment) amounts to Rs, 9701.40 lacs (31st
March, 2015 Rs, 6389.89 lacs).
B. For these Construction Contracts, the progress payments received, advances and retentions on
account of Contracts are Rs, 6865.81 lacs,Rs, 80.50 lacs and Rs, 460.45 lacs (3 1st March, 2015 Rs,
4387.50 lacs, Rs, 289.59 lacs and Rs, 258.04 lacs) respectively.
Note: Employer''s Contribution includes payments made by the Company directly to its past employees.
Broad category of Plan Assets relating to Gratuity as a percentage of total Plan Assets
The Company''s Gratuity Fund is managed by Life Insurance Corporation of India and HDFC Standard
Life Insurance. The Plan Assets under the Fund are deposited under approved securities.
1. SEGMENT REPORTING
(a) The Company''s operating businesses are organized and managed separately according to the nature
of products and services provided, with each segment representing a strategic business unit that
offers different products and serves in different markets. These business segments are : I.
Synthetic Cordage 2. Fibre and Industrial Products & Projects. Segments based on the location of
the customers are identified as Secondary Segments.
(b) Segment Accounting Policies are the same as those used in the preparation of the Financial
Statements. The Company generally accounts for inter-segment sales and transfers at cost plus
appropriate margins.
(c) The segment revenues and segment expenses are directly attributable to the segments, except
certain expenses which are not allocated to any segments by using appropriate basis. All other
expenses which are not attributable or allocable to the segments have been disclosed as unallowable
expenses.
(d) The segment assets and liabilities are directly attributable to the segments, except certain
assets and liabilities which are allocated to the segments using appropriate basis. All other
assets and liabilities are disclosed as unallowable.
Mi) Notes:
The business segments viz. ''Synthetic Cordage1 and ''Fibre and Industrial Products'' and Projects''
are considered as Primary Segments. Synthetic Cordage comprises of Ropes, Twines and Nettings made
of Twine. Fibre and Industrial Products & Projects segment comprises of Fibre, Synthetic Fabric,
Yarn, Woven and Non-Woven Textiles, Secugrids, Coated Steel Gabions, Machinery and Projects.
Inter-segment sales are accounted for at market value. The Geographical Segments on the basis of
location of customers are considered as Secondary Segments. Sales are recognized as sales to
customers in India and sales to customers outside India. As the Company has integrated
manufacturing facilities, it is not possible to directly attribute or allocate on a reasonable
basis, the expenses, assets and liabilities to the Geographical Segment.
2. TRANSACTIONS WITH RELATED PARTIES (I) List of Related Parties and Relationship:
A. Associates Companies
Garware Meditech Pvt. Limited
B. Subsidiary / joint Venture Companies
Garware Environmental Services Pvt. Ltd.
C. Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives
1. Manmit Investment & Trading Company Pvt. Ltd.
2. Garware Capital Markets Ltd.
3. Gurukrupa Investments & Trading Company Pvt. Ltd.
4. Sanand Investments & Trading Company Pvt. Ltd.
5. Moonshine Investments & Trading Company Pvt. Ltd.
6. Starshine Investments & Trading Company Pvt. Ltd.
7. Sukukar Holdings & Trading Company Pvt. Ltd.
8. VMIR Investment Ltd.
9. VRG Investments Ltd.
10. Garware Infrastructure Pvt. Ltd I I. Ramesh Trading Company
12. Sunita Trading Company I 3. Garware Research Institute
14. Vimlabai Garware Research Institute
15. Consolidated Agricultural & Dairy Farming Co. Pvt. Ltd.
16. Late ShriRB. Garware Estate
D. Directors - Key Management Personnel Mr. VR Garware
E. Relatives of Key Management Personnel Ms. M.V Garware
(Ill) Disclosure in Respect of Material Related Party Transactions during the year :
1 Rent paid to Mr. V R Garware of Rs, 78.30 lacs (Previous year Rs, 72 lacs) for the flat taken on
Leave & Licence.
2 Deposit received of Rs, 1758.62 lacs and refunded of Rs, 1758.62 lacs (Previous year Deposit
Received of Rs,l I 17.82 lacs and refunded of Rs, I I 17.82 lacs) include deposits from
V R Garware of Rs, 189.75 lacs (Previous year Rs, 108.90 lacs)
Garware Capital Markets Ltd. of Rs, 903.15 lacs (Previous year Rs, 802.1 3 lacs)
Manmit Investments & Trading Co. Pvt. Ltd. of Rs, 98.02 lacs (Previous year Rs, 79.50 lacs)
Moonshine Investments and Trading Co. Pvt. Ltd. of Rs, 55.47 lacs (Previous year Rs, 49.64 lacs)
Sanand Investment & Trading Co. Pvt. Ltd. of Rs, 41.64 lacs (Previous year Rs, 7.42 lacs)
Starshine Investments and Trading Co. Pvt. Ltd. of Rs, 30.35 lacs (Previous year Rs, 5.44 lacs)
Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs, 10.32 lacs (Previous year Rs, 9.19 lac)
VMIR Investments Ltd. earlier known as Garware Utzon (Cordage) Ltd. of Rs, 199.04 lacs (Previous
year Rs, 24.89 lacs)
Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs, 38.45 lacs (Previous year Rs, 6.92 lacs)
VRG Investments Ltd. earlier known as Garware Indus Consulting Ltd. of Rs, 192.43 lacs (previous
year Rs, 23.79 lacs)
3 Interest paid on Deposit of Rs, 305.86 lacs (Previous year Rs, 245.84 lacs) includes
V R Garware of Rs, 10.27 lacs (Previous year Rs,8.I5 lacs)
Late Shri Ramesh B. Garware Estate of Rs, 162.50 lacs (Previous year Rs, 148.67 lacs)
Garware Capital Markets Ltd. of Rs, 71.26 lacs (Previous year Rs, 73.1 3 lacs)
Manmit Investments & Trading Co. Pvt. Ltd. of Rs, 9.41 lacs (Previous year Rs, 7.57 lacs )
Moonshine Investments and Trading Co. Pvt. Ltd. of Rs, 4.93 lacs (Previous year Rs, 4.15 lacs)
Sanand Investment & Trading Co. Pvt. Ltd. of Rs, 3.76 lacs (Previous year Rs, 0.39 lacs)
Starshine Investments and Trading Co. Pvt. Ltd. of Rs, 2.71 lacs (Previous year Rs, 0.28 lacs)
Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs, 0.89 lacs (Previous year Rs, 0.73 lacs)
VMIR Investments Ltd. earlier known as Garware Utzon (Cordage) Ltd. of Rs, 18.66 lacs (Previous
year Rs, 1.23 lacs)
Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs, 3.46 lacs (Previous year Rs,0.36 lacs)
VRG Investments Ltd. earlier known as Garware Indus Consulting Ltd. of Rs, 18.01 lacs (previous
year Rs, 1. 17 lacs)
4 Payment to Key Management Personnel includes
VR Garware Rs, 477.95 lacs (Previous year Rs, 3 12.97 lacs)
3. EARNING PER SHARE (EPS)
EPS computed in accordance with Accounting Standard 20 "Earning Per Share- Basic Earnings Per Share
are calculated by dividing the net profit or loss for the period attributable to Equity
Shareholders by the weighted average number of Equity Shares outstanding during the period. For the
purpose of calculating diluted Earnings Per Share, the net profit or loss for the period
attributable to Equity Shareholders and the weighted average number of Shares outstanding during
the period are adjusted for the effects of all dilutive potential Equity Shares.
(c) General Description of the Leasing Arrangement:
i) Leased Assets: Twisting Machine with Spindles and related equipments.
ii) Future lease rental payment are determined on the basis of lease rent and use of leased Machine
for processing operation of third party.
iii) At the expiry of the lease term, the Company will negotiate for extension of lease / formation
of joint Venture to carry out the activities.
(iii) Disputed amount ofSales Tax liability Rs, 196.68 lacs (Previous year Rs, 196.68 lacs).
(iv) Export Sales Bills Discounted with the Banks Rs, 1321.17 lacs (Previous year Rs,2373.80 lacs).
(v) The interest portion on delayed payment of Octroi Liability amounting to Rs, 21.64 lacs
(Previous year Rs, 21.64 lacs) is
under dispute. (vi) The Income Tax Liability due to the department''s appeals at higher levels (Supreme Court) amounting to Rs,
208 lacs (Previous year Rs, 208 lacs).
4. DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
(a) An amount ofRs, 23.44 lacs (3 I st March, 2015, Rs, 47.94 lacs) andRs, 22.76(3 1st March,
2015Rs, Nil) was due and outstanding to Suppliers as at the end of the year on account of Principal
and Interest respectively.
(b) No interest was paid during the year.
(c) No interest outstanding at the end of the year where principal amount has been paid off to the
supplier but interest amount is outstanding on 31st March, 2016.
(d) No amount of interest was accrued and unpaid at the end of the year.
The above information and that given in Note 10 - Trade Payable1 regarding Micro, Small and Medium
Enterprises has been determined to the extent such parties have been identified, on the basis of
the information available with the Company. This has been relied upon by the Auditors.
5. ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED ON CAPITAL ACCOUNT AND NOT PROVIDED FOR
NET OF ADVANCES Rs, 135.39 LACS (PREVIOUS YEAR Rs, 92.74 LACS)
6. INTEREST IN FIRM/JOINT VENTURES
A. The Company has entered into a partnership agreement (Sopan D. Patil & GWRL JV) in which the
Company holds 40% share in profit / loss to execute Geo Synthetics Work - Contract value worth Rs,
577.3 I lacs. During the year ended 31st March, 2016, the said partnership has incurred a loss of
Rs, Nil lacs (Previous year Rs, 0.02 lac).
B. The Company''s Joint Venture with Waste Management Pacific Pty Ltd. (WMPL), (a company
incorporated under the law of Australia) to carry out the business of Environmental Engineering
through Carware Environmental Services Pvt. Ltd.1 joint Venture has became Wholly Owned Subsidiary
of the Company we.f 28.1 1.2012, on acquisition of Shares held by WMPL.
7. These Financial Statements have been prepared in the format prescribed under Section 133 of
Companies Act, 2013 (Act) read along with Rule 7 of the Company (Accounts) Rules, 2014 , the
provisions of the Act (to the extend notified) and guidelines issued by the Securities and Exchange
Board of India (SEBI). Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification/disclosure.
Mar 31, 2014
I.CORPORATE INFORMATION
Garware-Wall Ropes Limited (the Company) is a public company domiciled
in India and incorporated under the provisions of the Companies Act,
1956. Its shares are listed at three Stock Exchanges in India. The
Company is engaged in manufacturing and selling various products such
as Ropes, Twine, Yarn, Fishnet, other Nets and Technical Textiles. The
Company is providing solution to the infrastructure industries which
include coastal Protection, land filling etc. The company caters to
both domestic and international markets.
2. TRANSACTIONS WITH RELATED PARTIES (I) List of Related Parties and
Relationship:
A. Associates Companies
I. Garware Meditech Pvt. Limited
B. Subsidiary / Joint Venture Companies
I. Garware Environmental Services Pvt. Ltd.
C. Enterprises Owned or Significantly Influenced by Key Management
Personnel or Their Relatives
1. Manmit Investment & Trading Company Pvt. Ltd.
2. Garware Capita! Markets Ltd.
3. Gurukrupa Investments & Trading Company Pvt. Ltd.
4. Sanand Investments & Trading Company Pvt. Ltd.
5. Moonshine Investments & Trading Company Pvt. Ltd.
6. Starshine Investments & Trading Company Pvt. Ltd.
7. Sukukar Holdings & Trading Company Pvt. Ltd.
8. Garware Utzon Cordage Ltd.
9. Garware Indus Consulting Ltd.
10. Garware Infrastructure Pvt. Ltd
11. Garware Bestretch Ltd.
12. Garware Holdings Limited 13. Suramex Exim Pvt. Ltd.
14. Garware Apparel Private Ltd.
15. Gartex Industries Ltd.
16. Ramesh Trading Company
17. Sunita Trading Company
18. Diya Trading Company
19. Vayu Trading Company
20. RSDV investments Pvt. Ltd. of Rs. 2183 lacs (Previous year Rs. 2153
lacs)
21. RSDV Finance and Trading Company Pvt. Ltd. of Rs. 80.50 lacs
(Previous year Rs. 78.50 lacs)
22. Garware Securities Broking Ltd. of Rs. 3.50 Lacs ( Previous year Rs.
6.50 lacs)
23. Ceebeegee Investments Company Pvt. Ltd. of Rs. 87 lacs (Previous
year Rs. 85 lacs)
24. Garware Resach Institute
25. Vimlabai Garware Research Institute
26. Consolidated Agricutural & Dairy Farming Company Pvt. Ltd.
D. Directors - Key Management Personnel
Mr. V. R. Garware
E. Relatives of Key Management Personnel
Ms. Diya Garware Ibanez
(Ill) Disclosure in Respect of Material Related Party Transactions
during the year :
1 Purchase of Good/Services include Purchase from Garware Bestrech Ltd.
ofRs. 6.63 lacs (Previous year Rs. 9.98 lacs).
2 Purchase of Shares includes :
Shares of Garware Environmental Services Pvt. Ltd. of Rs. Nil lacs
(Previous year Rs. 5 lacs).
3 Sales of Flat to Mr. V R. Garware of Rs. Nil lacs (Previous year Rs.
1,020 lacs), Rent paid to Mr. V R. Garware ofRs. 63 Lacs (Previous year Rs.
Nil) for the Flat taken on Leave & License.
4 Deposit received ofRs. 4,845.33 lacs and refunded of Rs. 3,580.83 lacs
(Previous year Rs. 3,799.35 lacs) include deposits from :
Mr. V R. Garware of Rs. 91 lacs (Previous year Rs. Nil),
Late Shri Ramesh Bhalchandra Garware of Rs. 1291.50 lacs and paid ofRs. 27
lacs (Previous yearRs. Nil), Garware Capital Markets Ltd. of Rs. 664.50
lacs (Previous year Rs. 1, 190 lacs), Manmit Investments & Trading Co.
Pvt. Ltd. of Rs. 66.70 lacs (Previous year Rs. 55 lacs), Moonshine
Investments and Trading Co. Pvt. Ltd. of Rs. 35 lacs (Previous year Rs.
21.50 lacs), RSDV Investments Pvt. Ltd. of Rs. 2,183 lacs (Previous year
Rs. 21.53 lacs), RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 80.50 lacs
(Previous year Rs. 78.50 lacs), Sanand Investment & Trading Co. Pvt.
Ltd. of Rs. 21.20 lacs (Previous year Rs. 13 lacs), *
Starshine Investments and Trading Co. Pvt. Ltd of Rs. 15.28 lacs
(Previous year Rs. 9.50 lacs), Garware Securities Broking Ltd. of Rs. 3.50
Lacs (Previous year Rs. 6.50 lacs), Suramex Exim Pvt. Ltd. of Rs. 49.70
(Previous year Rs. Nil), Gurukrupa Investments and Trading Co. Pvt. Ltd.
of Rs. 5.20 lacs (Previous year Rs. 2.60 lacs), Garware Utzon (Cordage)
Ltd. of Rs. 119.50 lacs (Previous year Rs. 89.25 lacs), Sukukar Holdings &
Trading Co. Pvt. Ltd. of Rs. 19.50 lacs (Previous year Rs. 12.50 lacs),
Garware Indus Consulting Ltd. of Rs. 112.25 lacs (Previous year Rs. 83
lacs), Ceebeegee Investments Co. Pvt. Ltd. of Rs. 87 lacs (Previous year
Rs. 85 lacs).
5 Interest paid on Deposit of Rs. 216.58 lacs (Previous year Rs. 369,32
lacs) includes : Mr. V R. Garware of Rs. 5.62 lacs (Previous year Rs. Nil),
Late Shri Ramesh B. Garware of Rs. 8.46 lacs (Previous year Rs. Nil),
Garware Capital Markets Ltd. of Rs. 63.55 lacs (Previous year Rs. IE 2.79
lacs), Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 6.64 lacs
(Previous year Rs. 5.42 lacs),Moonshine Investments and Trading Co. Pvt.
Ltd. of Rs. 3.07 lacs (Previous year Rs. 1.68 lacs), RSDV Investments Pvt.
Ltd. of Rs. 90.34 lacs (Previous year Rs. 219.86 lacs), RSDV Finance and
Trading Co. Pvt. Ltd. of Rs. 3.58 lacs (Previous year Rs. 5.87 lacs),
Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 1.83 lacs (Previous year
Rs. 1.04 lacs), Starshine Investments and Trading Co. Pvt. Ltd. of Rs. 1.30
lacs (Previous year Rs. 0.74 lacs), Garware Securities Broking Ltd. of Rs.
0.06 Lacs (Previous year Rs. 0.18 lacs), Suramex Exim Pvt. Ltd. of Rs. 3.96
lacs (Previous year Rs. NIL), Gurukrupa Investments and Trading Co. Pvt.
Ltd. of Rs. 0.30 lacs (Previous year Rs. 0.15 lacs), Garware Utzon
(Cordage) Ltd. of Rs. 11.51 lacs (Previous year Rs. 8.21 lacs), Sukukar
Holdings & Trading Co. Pvt. Ltd. of Rs. 1.70 lacs (Previous year Rs. 0.99
lacs), Garware Indus Consulting Ltd. of Rs. 10.73 lacs (previous year Rs.
7.60 lacs), Ceebeegee Investments Co. Pvt. Ltd. of Rs. 3.93 lacs
(Previous year Rs. 4.79 lacs).
6 Payment to Key management personnel includes
Mr. V R. Garware Rs. 200.93 lacs (Previous year Rs. 111.27 lacs).
3. CONTINGENT LIABILITIES
(i) Disputed Excise Duty Rs. 27.57 lacs (Previous year Rs. 32.12 lacs).
(ii) Bank Guarantees for Rs. 1,498.71 lacs (Previous year Rs. 1,435.84
lacs), in the ordinary course of business, against which the Company
has issued counter guarantees for the overall bank limits ofRs. 14,535
lacs (Previous year Rs. 14,535 lacs).
(iii) Disputed amount of Sales Tax liability Rs. 196.68 lacs (Previous
year Rs. 196.68 lacs).
(iv) Export Sales Bills Discounted with the Banks Rs.3,016.05 lacs
(Previousyear Rs. 1,477.86 lacs).
(v) The interest portion on delayed payment of Octroi Liability
amounting to Rs. 21.64 lacs (Previous year Rs. 21.64 lacs) is
under dispute.
(vi) The Income Tax liability due to the department''s appeals at higher
levels (Supreme Court) amounting to Rs.208 lacs (Previous year Rs. Nil).
44. DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES
DEVELOPMENT ACT, 2006
(a) An amount of Rs. 94.10 lacs (31 st March, 2013 Rs. 186.84 lacs) and Rs.
NIL (3 Ist March, 2012 Rs.7.36 lacs ) was due and outstanding to
Suppliers as at the end of the year on account of Principle and
Interest respectively.
(b) No interest was paid during the year.
(c) No interest outstanding at the end of the year where principle
amount has been paid off to the supplier but interest amount is
outstanding on 31st March, 2014.
(d) No amount of interest was accrued and unpaid at the end of the
year.
The above information and that given in Note 10 - ''Trade Payable1
regarding Micro, Small and Medium Enterprises has been determined to
the extent such parties have been identified on the basis of the
information available with the Company. This has been relied upon by
the Auditors.
Mar 31, 2013
1. CORPORATE INFORMATION
Garware-Wall Ropes Limited (the Company) is a public company based in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed at three Stock Exchanges in India. The Company is
engaged in manufacturing and selling various Technical Textile products
such as Ropes, Twine, Yarn, Fishnet and other Nets. The Company also
provides solutions to infrastructure sectors including coastal
protection, land filling, etc. The Company caters to both domestic and
international markets.
2. TRANSACTIONS WITH RELATED PARTIES
(I) List of Related Parties and Relationship:
A. Associates Companies
1. Garware Elastomerics Ltd.
2. Garware Bestretch Ltd.
3. Garware Meditech Pvt. Limited
B. Subsidiary / Joint Venture Companies
1. Garware Environmental Services Pvt. Ltd.
C. Enterprises Owned or Significantly Influenced by Key Management
Personnel or Their Relatives
1. RSDV Finance Company (P.) Ltd.
2. RSDV Investments Pvt. Ltd.
3. Garware Securities Broking Ltd.
4. Garware Capital Markets Ltd.
5. Garware Indus Consulting Ltd.
6. Garware Utzon (Cordage) Ltd.
7. Manmit Investments & Trading Company (P.) Ltd.
8. Ceebeegee Investment Company Pvt. Ltd.
9. Moonshine Investments & Trading Co. Pvt. Ltd.
10. Gurukrupa Investments & Trading Co. Pvt. Ltd.
11. Sanand Investments & Trading Company Pvt. Ltd.
12. Starshine Investments & Trading Company Pvt. Ltd.
13. Sukukar Holdings & Trading Company Pvt. Ltd.
D. Directors - Key Management Personnel
Mr. R. B. Garware Mr. V. R. Garware
E. Relatives of Key Management Personnel
Mrs. Diya Garware Ibanez
F. Enterprises Owned or Significantly Influenced by Key Management
Personnel or Their Relatives where no transactions are entered during
the year
1. Consolidated Agricultural & Dairy Farming Company (P.) Ltd.
2. Vimalabai Garware Research Institute
3. Ramesh Trading Company
4. Sunita Trading Company
5. Diya Trading Company
6. Vayu Trading Company
7. Ramesh B. Garware (HUF)
8. Gartex Industries Ltd.
9. Garware Motors Ltd.
10. Garware Infrastructure Pvt. Ltd.
11. Garware Apparel Pvt. Ltd.
12. Garware Research Institute
13. Suramex Exim (P.) Ltd.
14. Garware Holdings Ltd.
3. EARNING PER SHARE (EPS)
EPS computed in accordance with Accounting Standard 20 "Earning Per
Share"
Basic Earning Per Share is calculated by dividing the net profit or
loss for the period attributable to Equity Shareholders by the weighted
average number of Equity Shares outstanding during the period. For the
purpose of calculating diluted earning per Share, the net profit or
loss for the period attributable to Equity Shareholders and the
weighted average number of Shares outstanding during the period are
adjusted for the effects of all dilutive potential Equity Shares.
4. CONTINGENT LIABILITIES
(i) Disputed Excise Duty Rs. 32.12 lacs (Previous year Rs. 27.57 lacs).
(ii) Bank Guarantees for Rs. 1,435.84 lacs (Previous year Rs. 1,477.26
lacs), in the ordinary course of business, against which the Company
has issued counter guarantees for the overall bank limits of Rs. 14,535
lacs (Previous year Rs. 13,500 lacs).
(iii) Disputed amount of Sales Tax liability Rs. 196.68 lacs (Previous
year Rs. 42.15 lacs).
(iv) Disputed Property Tax Liability on factory premises, Pune Rs. 20.97
lacs (Previous year Rs. 20.97 lacs). (v) Export Sales Bills discounted
with the Banks Rs. 887.51 lacs (Previous year Rs. 982.42 lacs).
(vi) The interest portion on delayed payment of Octroi Liability
amounting to Rs. 21.64 lacs (Previous year Rs. 21.64 lacs) is under
dispute.
5. DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES
DEVELOPMENT ACT, 2006
(a) An amount of Rs. 186.84 lacs (31st March 2012 Rs. 7.36 lacs) and Rs. NIL
(31st March 2011 Rs. NIL) was due and outstanding to Suppliers as at the
end of the year on account of Principal and Interest respectively.
(b) No interest was paid during the year.
(c) No interest outstanding at the end of the year where principal
amount has been paid off to the supplier but interest amount is
outstanding on 31st March 2013.
(d) No amount of interest was accrued and unpaid at the end of the
year.
The above information and that given in Note 10 - '' Trade Payable ''
regarding Micro , Small and Medium Enterprises has been determined to
the extent such parties have been identified on the basis of the
information available with the Company. This has been relied upon by
the Auditors.
6. ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED ON CAPITAL
ACCOUNT AND NOT PROVIDED FOR NET OF ADVANCES Rs. 52.95 LACS (PREVIOUS
YEAR 40.75 LACS)
7. INTEREST IN FIRM / JOINT VENTURES
A. The Company has entered into a partnership agreement (Sopan D. Patil
& GWRL JV) in which the Company holds 40% share in profit / loss to
execute Geo Synthetics Work - Contract value worth Rs. 577.31 lacs.
During the year ended 31.03. 2013, the said partnership has incurred a
loss of Rs. 0.74 lacs (Previous year Rs. 0.08 lac).
B. The Company had a joint venture with Waste Management Pacific Pty
Ltd. (WMPL), (a company incorporated under the law of Australia) to
carry out the business of Environmental Engineering through ''Garware
Environmental Services Pvt. Ltd.'' (GESPL). GESPL become a wholly owned
subsidiary of the Company w.e.f 28.11.2012 on acquisition of Shares
held by WMPL.
8. These Financial Statements have been prepared in the format
prescribed by the Revised Schedule VI to the Companies Act, 1956. This
has significantly changed the disclosure and presentation made in the
Financial Statements. Previous year''s figures have been regrouped /
reclassified wherever necessary to correspond with the current year''s
classification / disclosure.
Mar 31, 2012
1 CORPORATE INFORMATION
Garware-Wall Ropes Limited (the Company) is a public company based in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed at three Stock Exchanges in India. The Company is
engaged in manufacturing and selling various technical-textile products
such as Ropes, Twine, Yarn, Fishnet, other Nets. The Company also
provides solutions to infrastructure sectors including coastal
protection, land filling, etc. The Company caters to both domestic and
international markets.
Notes:
1) CITI Bank Rupee Loan is repayable in 20 quarterly instalments of Rs.
78.74 Lacs each along with interest from 28th January, 2008. This loan
is secured by way of hypothecation of the whole of the Plant &
Machinery including its moveable Plant & Machinery, Machinery Spares,
Tools & Accessories, both present & future on first charge on
pari-passu basis with others.
2) IDBI Bank Term Loan under TUFS loan is repayable in 20 quarterly
instalments of Rs. 52.70 Lacs each along with interest from 31st July,
2009. This loan is secured by way of charge on specific assets financed
by the Bank.
3) CITI Bank ECB Term Loan is repayable in 16 quarterly instalments of
Rs. 156.25 Lacs each along with interest from 26th December, 2012. This
loan is secured by way of hypothecation of the whole of the Movable
Fixed Assets comprising Plant & Machinery, Computers, Furniture and
Fixtures, Machinery Spares, Tools & Accessories and other Assets both
present & future on first charge on pari-passu basis with others.
4) HDFC Bank Rupee Term Loan is repayable in 12 quarterly instalments
of Rs. 208.33 Lacs each along with interest from 4th January, 2012. This
loan is secured by way of hypothecation of the Movable Properties
including Plant & Machinery, Machinery Spares, Tools & Accessories and
other Movables both present & future on first charge on pari-passu
basis with others.
Note:
The above Secured Loans are availed from Consortium Bankers, viz., Bank
of India, Bank of Baroda, Bank of Maharashtra, IDBI Bank, HDFC Bank,
The Royal Bank of Scotland N.V and CITI Bank N.A. and are secured by a
first charge, pari passu, inter-se, by way of hypothecation of the
Company's Current Assets, viz. raw materials, stock-in-process,
semi-finished goods, finished goods, stores & spares not relating to
Plant & Machinery, bills receivable and book debts and other movables
(except for Plant and Machinery secured by way of second charge), both
present and future. Except loans from IDBI Bank, HDFC Bank and CITI
Bank N.A., the other loans from remaining Consortium Bankers are also
secured to the extent of Rs. 8,300 Lacs by Second Charge over the
Company's Immoveable Properties, by way of equitable mortgage, ranking
pari passu, inter-se. The Cash Credit, Rupee Loan and Rupee Packing
Credit (rupee and foreign currency loan) loan is repayable on demand.
Note:
A. Disclosure pursuant to Accounting Standard "AS7 - Construction
Contracts", the Construction Work-in-Progress (Fibre & Industrial
Product & Project Segment) amounts to Rs. 2802.68 lacs (31st March 2011
Rs. 796.90 lacs).
B. For these construction contracts, the Progress payments received,
Advances and Retentions on account of Contracts are Rs. 562.51 lacs, Rs.
60.34 lacs and Rs. 101.14 lacs(3lst March 2011 Rs. 199.32 lacs, Rs.5.00 lacs
and Rs. 31.63 lacs) respectively.
Note: Employer's Contribution includes payments made by the Company
directly to its past employees.
Broad category of Plan Assets relating to Gratuity as a percentage of
total Plan Assets
The Company's Gratuity Fund is managed by Life Insurance Corporation of
India and HDFC Standard Life Insurance. The Plan Assets under the Fund
are deposited under approved securities.
1 SEGMENT REPORTING
(a) The Company's operating businesses are organized and managed
separately according to the nature of products and services provided,
with each segment representing a strategic business unit that offers
different products and serves different markets. These business
segments are : I. Synthetic Cordage 2. Fibre and Industrial Products &
Projects. Segments based on the location of the customers are
identified as secondary segments.
(b) Segment accounting policies are the same as those used in the
preparation of the Financial Statements. The Company generally accounts
for inter-segment sales and transfers at cost plus appropriate margins.
(c) The segment revenues and segment expenses are directly attributable
to the segments, except certain expenses which are not allocated to any
segments by using appropriate basis. All other expenses which are not
attributable or allocable to the segments have been disclosed as
unallocable expenses.
(d) The segment assets and liabilities are directly attributable to the
segments, except certain assets and liabilities which are allocated to
the segments using appropriate basis. All other assets and liabilities
are disclosed as unallocable.
iii) Notes:
The business segments viz. 'Synthetic Cordage' and 'Fibre and
Industrial Products' and Projects' are considered as the primary
segments. Synthetic Cordage comprises of ropes, twines and nettings
made of twine, fibre, synthetic fabric, yarn, woven and non-woven
textiles, secugrids, coated steel gabions, machinery and project form
the Fibre and Industrial Products & Projects segment. Inter-segment
sales are accounted for at market value.
The geographical segments on the basis of location of customers are
considered as secondary segments. Geographic segments of the Company
are India and outside India.
2 TRANSACTIONS WITH RELATED PARTIES
(I) List of related Parties and relationship:
A. Associates Companies
1. Garware Elastomerics Ltd.
2. Garware Bestretch Ltd.
3. Garware Meditech Pvt. Limited
B. Subsidiary/ Joint Venture Companies
I. Garware Environmental Services Pvt. Ltd.
C. Enterprises owned or significantly influenced by key management
personnel or their relatives
1. RSDV Finance Company (R) Ltd.
2. RSDV Investments Pvt. Ltd.
3. Suramex Exim (R) Ltd.
4. Garware Capital Markets Ltd.
5. Garware Indus Consulting Ltd.
6. Garware Utzon (Cordage) Ltd.
7. Manmit Investments & Trading Company (R) Ltd.
8. Consolidated Agricultural & Dairy Farming Company (R) Ltd.
9. Vimalabai Garware Research Institute
10. Ramesh Trading Company
11. Sunita Trading Company
12. Diya Trading Company
13. Vayu Trading Company
14. Ramesh B. Garware (HUF)
15. Garware Securities Broking Ltd.
16. Gartex Industries Ltd.
17. Garware Motors Ltd.
18. Garware Infrastructure Pvt. Ltd.
19. GarwareApparel Pvt. Ltd.
20. Ceebeegee Investment Company Pvt. Ltd.
21. Moonshine Investments & Trading Co. Pvt. Ltd.
22. Gurukrupa Investments & Trading Co. Pvt. Ltd.
23. Sanand Investments & Trading Company Pvt. Ltd.
24. Starshine Investments & Trading Company Pvt. Ltd.
25. Sukukar Holdings & Trading Company Pvt. Ltd.
26. Garware Research Institute
D. Directors - Key management personnel
Mr. R. B. Garware Mr. V! R. Garware
E. Relatives of key management personnel
Mrs. DiyaGarware Ibanez
(III) Disclosure in Respect of Related Party Transactions during the
year :
1. Sale of Goods include Sales to Garware Bestretch Ltd. of Rs. 2.48
lacs (Previous year Rs. 2.12 lacs)
2. Purchase of Goods/Services include Purchase from Garware Bestretch
Ltd. of Rs. 4.43 lacs (Previous year Rs. I7.04lacs).
3. Purchase of Shares includes:
Shares of Garware Meditech Pvt. Ltd. of Rs. 0.50 lacs (Previous year
Nil),
Shares of Garware Environmental Services Pvt. Ltd. of Rs. Nil (Previous
year Rs. 49.51 lacs)
4. Sales of Shares Nil (Previous year Rs. 147.83 lacs of Garware
Elastomerics Ltd.)
5. Sale of Shares Nil (Previous year Rs. 724.60 lacs of Garware Capital
Markets Ltd.)
6. Deposits received and refunded from time to time aggregating to Rs.
2551.10 lacs (Previous year Rs. 2051 lacs) includes deposits from :
Garware Capital Markets Ltd. of Rs. 910.40 lacs (Previous year Rs. 876
lacs),
Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 45.35 lacs (Previous
year Rs. 35 lacs),
Moonshine Investments and Trading Co. Pvt. Ltd. of Rs. 10.20 lacs
(Previous year Rs. Nil), RSDV Investments Pvt. Ltd. of Rs. 1359.30
lacs(Previous year Rs. 1036lacs),
RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 50.55 lacs (Previous year Rs.
44 lacs),
Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 6.75 lacs (Previous year
Rs. Nil),
Starshine Investments and Trading Co. Pvt. Ltd. of Rs. 4.90 lacs
(Previous year Rs. Nil), Suramex Exim Pvt. Ltd. of Rs. Nil (Previousyear Rs.
8.00 lacs),
Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs. I lac (Previous
year Rs. Nil),
Garware Utzon (Cordage) Ltd. of Rs. 62.60 lacs (Previous year Rs. 27 lacs),
Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs. 6.30 lacs (Previous year
Rs. Nil),
Garware Indus Consulting Ltd. of Rs. 57.75 lacs (Previous year Rs. 33 lacs),
Ceebeegee Investments Co. Pvt. Ltd. of Rs. 36 lacs (Previous year Rs. Nil)
3. Interest paid on Deposit of Rs. 277.85 lacs (Previous year Rs. 159.94
lacs) includes :
Garware Capital Markets Ltd. of Rs. 105.70 lacs (Previous year Rs. 46.60
lacs),
Manmit Investments & Trading Co. Pvt. Ltd. of Rs. 4.43 lacs (Previous
year Rs. 3.37 lacs ),
Moonshine Investments and Trading Co. Pvt. Ltd. of Rs. 0.56 lacs
(Previous year Rs. Nil),
RSDV Investments Pvt. Ltd. of Rs. 150.68 lacs (Previous year Rs. 99.60 lacs
),
RSDV Finance and Trading Co. Pvt. Ltd. of Rs. 5.33 lacs (Previous year Rs.
4.43 lacs ),
Sanand Investment & Trading Co. Pvt. Ltd. of Rs. 0.34 lacs (Previous year
Rs. Nil),
Starshine Investments and Trading Co. Pvt. Ltd. of Rs. 0.24 lacs
(Previous year Rs. Nil),
Suramex Exim Pvt. Ltd. of Rs. Nil (Previous year Rs. 0.60 lacs),
Gurukrupa Investments and Trading Co. Pvt. Ltd. of Rs. 0.09 lacs
(Previous year Rs. Nil),
Garware Utzon (Cordage) Ltd. of Rs. 5.19 lacs (Previous year Rs. 2.95
lacs),
Sukukar Holdings & Trading Co. Pvt. Ltd. of Rs. 0.32 lacs (Previous year
Rs. Nil),
Garware Indus Consulting Ltd. of Rs. 4.93 lacs (previous year Rs. 2.39
lacs),
Ceegeegee Investments Co. Pvt. Ltd. of Rs. 0.04 lacs (Previous year Rs.
Nil)
4 EARNING PER SHARE (EPS)
EPS computed in accordance with Accounting Standard 20 "Earning Per
Share"
Basic Earning Per Share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. For the
purpose of calculating diluted earning per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
5 CONTINGENT LIABILITIES
(i) Disputed Excise Duty Rs. 27.57 lacs (Previous year Rs. 27.57 lacs).
(ii) Bank Guarantees for Rs. 1,477.26 lacs (Previous year Rs. 1,390.35
lacs), in the ordinary course of business, against which the Company
has issued counter guarantees for the overall bank limits of Rs. 13,500
lacs (Previous year Rs. 12,500 lacs).
(iii) Disputed amount of Sales Tax Liability Rs. 42.15 lacs (Previous
year Rs. 42.09 lacs).
(iv) Disputed Property Tax Liability on factory premises, Pune Rs. 20.97
lacs (Previous year Rs. 20.97 lacs).
(v) Export Sales Bills discounted with the banks Rs. 982.42 lacs
(Previous year Rs. 168.89 lacs).
(vi) The interest portion on delayed payment of Octroi Liability
amounting to Rs. 21.64 lacs (Previous year Rs. 21.64 lacs) is under
dispute.
6 DISCLOSURES UNDER THE MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT
ACT, 2006
(a) An amount of Rs. 7.36 lacs (31st March, 2011 Rs. 14.27 lacs) and Rs. NIL
(31st March, 2011 Rs. NIL) was due and outstanding to Suppliers as at the
end of the year on account of Principal and Interest respectively.
(b) No interest was paid during the year.
(c) No interest outstanding at the end of the year where principal
amount has been paid off to the supplier but interest amount is
outstanding on 31st March, 2012.
(d) No amount of interest was accrued and unpaid at the end of the
year.
The above information and that given in Note 10 - 'Trade Payable'
regarding Micro, Small and Medium Enterprises has been determined to
the extent such parties have been identified on the basis of the
information available with the Company. This has been relied upon by
the Auditors.
7 ESTIMATED AMOUNT OF CONTRACTS REMAINING TO BE EXECUTED ON CAPITAL
ACCOUNT AND NOT PROVIDED FOR NET OF ADVANCES Rs. 40.75 LACS (PREVIOUS
YEAR 298.95 LACS)
8 INTEREST IN FIRM/JOINT VENTURES
A. The Company has entered into a partnership agreement (Sopan D.
Patil & GWRL JV) in which the Company holds 40% share in profit / loss
to execute Geo Synthetics Work - Contract value worth Rs. 577.31 lacs.
During the year ended 31.03.2012. the said partnership has incurred a
loss of Rs. 0.08 lacs (Previous Year Rs. 0.04 lac).
B. The Company has entered in to joint venture arrangement with Waste
Management Pacific Pty Ltd. (WMPL), (a company incorporated under the
law of Australia) (JV) to carry out the business of Environmental
Engineering through Garware Environmental Services Pvt. Ltd. JV has not
started its commercial operation.
9 These Financial Statements have been prepared in the format
prescribed by the Revised Schedule VI to the Companies Act 1956. This
has significantly changed the disclosure and presentation made in the
Financial Statements. Previous year's figures have been regrouped /
reclassified wherever necessary to correspond with the current year's
classification / disclosure.
* Includes Application moneys of Convertible Warrants.
# Reissue of 3,77,634 Equity Shares forfeited.
$ 7,50,000 Equity Shares against Convertible Warrants.
@ 9,98,000 Equity Shares against Convertible Warrants.
** 19,96,000 Equity Shares against Convertible Warrants.
10 The figures of Reserves and Surplus have been calculated after
deduction of miscellanious expenditure to the extent not written off or
adjusted and includes revaluation reserve Rs. 18.44 lacs for 31.03.03, Rs.
17.36 lacs for 31.03.04, Rs. 16.31 lacs for 31.03.05, Rs. 15.27 lacs for
31.03.06, Rs. I4.23 lacs for 31.03.07, Rs. 13.19 lacs for 31.03.08, Rs.
I2.l5lacs for3l.03.09, Rs. 11.10 lacs for 31.03.10, Rs. 10.06 lacs for
31.03.11 and Rs. 9.02 lacs for 31.03.12, respectively.
î Dividend Outgo includes Tax on Dividend, where applicable.
- Includes both current and non-current assets and liabilities.
Mar 31, 2010
1. The Company has complied with "AS 28", requirements for testing
impairment of assets. Impairment loss recognised for the year charged
to Profit and Loss account amounted to Rs.22.12 lacs (previous year Rs.
Nil)
2. The Company, in compliance with "AS 26" on Intangible Assets, has
recognized the intangible assets acquired during the year on Product
Development Costs at Rs.230.27 lacs (Previous Year Rs. 306.47 lacs)
Computer software Rs. 18.68 lacs (Previous Year Rs.50.19 lacs). Taking
into consideration the clarification issued by the Institute of
Chartered Accountants of India dt 7th October 2003, the expenses that
have already been recognized as "Deferred Revenue Expenditure" upto I
st April, 2004, are being continued to be amortized over the remaining
period.
3. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for net of Advances Rs.201.67 lacs (Previous
Year Rs.35.82 lacs)
4. A. Disclosure pursuant to Accounting Standard "AS7 - Construction
Contracts", the Construction work-in-progress
(Fibre & Industrial Product & Project Segment) amounts to Rs. 1173.86
lacs (Previous Year Rs. 7,043.94 lacs).
B. For these construction contracts, the Progress payments received,
Advances and Retentions on Account of Contracts are Rs.8,422.11 lacs,
Rs.243.03 lacs and Rs.544.42 lacs (Previous Year Rs.5,108.90 lacs,
Rs.555.64 lacs and Rs. 123.1 I lacs) respectively.
5. The Company has entered into a partnership agreement with minority
share to execute Geo Synthetics Work - Contract value worth Rs.577.31
lacs. During the year ended 31.03.2010, the said partnership has
incurred a loss ofRs.0.02 lacs (Previous Year Rs.0.01 lac).
(b) Lease Payment recognised in the Profit & Loss account 0.05 0.05 é)
General description of the leasing arrangement:
i) Leased Assets : Twisting Machine with Spindles and related
equipments.
ii) Future lease rental payment are determined on the basis of lease
rent and use of leased Machine for processing operation of third party.
iii) At the expiry of the lease term, the Company will negotiate for
extension of lease / formation of Joint Venture to carry out the
activities.
6. Contingent liabilities:
(i) Disputed Excise duty Rs.35.30 lacs (Previous Year Rs.35.30 lacs)
(ii) Bank Guarantees for Rs.824.27 lacs (Previous Year Rs.2,680.69
lacs), in the ordinary course of business, against which the Company
has issued counter guarantees for the overall Bank limits of Rs. 12,500
lacs (Previous Year Rs. 12,500 lacs).
(iii) Disputed amount of Sales Tax liability Rs.57.49 lacs (Previous
Year Rs.57.49 lacs).
(iv) Disputed Property Tax Liability on factory premises, Pune Rs.20.97
lacs (Previous Year Rs.20.97 lacs).
(v) Export Sales Bills Discounted with the Banks Rs. 164.23 lacs
(Previous Year Rs.527.51 lacs).
(vi) Disputed Octroi Liability on rate increase of Rs.27.98 lacs
(Previous Year Rs.27.98 lacs) has been paid under protest. Liability of
interest, if any, thereon for delay period has not been considered.
7. Disclosures under the Micro, Small & Medium Enterprises Development
Act, 2006:
(a) An amount of Rs.22.93 lacs (Previous Year Rs.4.78 lacs) and Rs. NIL
(Previous Year NIL) was due and outstanding to Suppliers as at the end
of the year on account of Principal and Interest respectively.
(b) No interest was paid during the year.
(c) No interest outstanding at the end of the year where principle
amount has been paid off to the supplier but interest amount is
outstanding as on 31st March, 2010
(d) No amount of interest was accrued and unpaid at the end of the
year.
The above information and that given in Schedule VII - Current
Liabilities and Provision regarding Micro, Small and Medium
Enterprises has been determined to the extent such parties have been
identified on the basis of the information available with the Company.
This has been relied upon by the Auditors.
8. The Company has set aside from its General Reserve, as reserve
amounting to Rs.315 lacs in the Financial Year 2000- 2001 for
contingencies that may arise, in the event there is a diminution in the
value of investments, of a permanent nature, in the future.
9. Disclosure in relation to Derivative instruments:
31.03.2010 31.03.2009
a) No of contracts 14 9
b) Purpose Hedging Hedging
c) Net un-hedged
exposure Rs. 2,270.66 lacs Rs. 2,812.71 lacs
10. EMPLOYEE BENEFITS:
(i) Effective I st April,2007, the Company adopted Accounting Standard
15 (Revised 2005) on "Employee Benefits" issued by the Institute of
Chartered Accountant of India.
(ii) Contribution to Provident Fund, Gratuity and Superannuation Funds
11. Segment Reporting
i) Primary Segment Report
iii) Notes:
The business segments viz. Synthetic Cordage and Fibre and
Industrial Products and Projects are considered as the primary
segments. Synthetic Cordage comprises of ropes, twines and nettings
made of twine. Fibre, synthetic fabric, yarn, woven and non-woven
textiles, secugrids, coated steel gabions, machinery and project form
the Fibre and Industrial Products & Project segment. Inter-segment
sales are accounted for at market value.
The geographical segments on the basis of location of customers are
considered as secondary segments. Sales are recognised as sales to
customers in India and sales to customers outside India.
12. Transactions with related parties
(I) The Company has identified following related parties:
A. Associates Companies
1. Garware Elastomerics Ltd.
2. Garware Bestretch Ltd.
(Formerly, Bestretch Elastomers International Ltd.)
B. Companies / other organisations under the control of directors
where transactions are entered into and/or outstanding balance exists
as at the Balance Sheet Date:
1. RSDV Finance Company (R) Ltd.
2. RSDV Investments Pvt. Ltd.
3. Suramex Exim (R) Ltd.
4. Garware Capital Markets Ltd.
5. Garware Indus Consulting Ltd.
6. Garware Utzon (Cordage) Ltd.
7. Manmit Investments & Trading Company (R) Ltd.
C. Directors - Key Management Persons
Mr. R. B. Garware Mr. V R. Garware
D. Relative of Key Management Persons having control or significant
influence over the Company by reason of voting power
Mr. R. B. Garware
Mrs. Diya Garware Ebanez
Mr. V R. Garware
E. Companies / other organisations under the control of directors
where no transactions are entered into and lor no outstanding balance
exists as at the Balance Sheet Date:
1. Consolidated Agricultural & Dairy Farming Company (R) Ltd
2. Vimalabai Garware Research Institute
3. Ramesh Trading Company
4. Sunita Trading Company
5. Diya Trading Company
6. Vayu Trading Company
7. Ramesh B. Garware (HUF)
8. Garware Securities Broking Ltd.
9. Gartex Industries Ltd.
10. Garware Environmental Services Pvt. Ltd.
11. Garware Infrastructure Pvt. Ltd.
12. Garware Biofuels Pvt. Ltd.
13. Ceebeegee Investment Company Pvt. Ltd.
14. Moonshine Investments & Trading Co. Pvt. Ltd.
15. Gurukrupa Investments & Trading Co. Pvt. Ltd.
16. Sanand Investments & Trading Company Pvt. Ltd.
17. Starshine Investments & Trading Company Pvt. Ltd.
18. Sukukar Holdings & Trading Company Pvt. Ltd.
19. Garware Research Institute
(II) Following are the transactions with the related parties mentioned
in A, B & C above:
13. Earning per Share (EPS) computed in accordance with Accounting
Standard 20 "Earning Per Share"
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