Mar 31, 2015
1. GENERAL INFORMATION :
Haria Exports Limited ('the Company') was incorporated on 28th August,
1970 under The Companies Act, 1956. The company is in the Business of
manufacturing of Notebooks and Plastic Preform and also trading of
goods.
2. Details of Shareholding as at March 31, 2015
i. Equity / Preference Shares held by various entities:
5,87,952 (5.09%) (PY: 5,87,952 (5.09%)) Eq. Shares of Rs. 10/- each
held by Vilco Pharma Pvt. Ltd.
ii. Shareholders holding more than 5% of Equity / Preference Shares:
24,82,530 (21.49%) {(PY: 24,82,530 (21.49%)) Equity Shares of Rs. 10/-
each held by Manish K. Haria (HUF) 11,83,842{(10.25%)} {(PY: 11,83,842
(10.25%)) Equity Shares of Rs.10/- each held by Mr. Ketan Keshvaji Shah
10,41,650 (9.02%) {(PY: 10,41,650(9.02%)) Equity Shares of Rs.10/- each
held by Mr. Ramesh Keshvaji Shah
3. Each Equity Share is entitled to one voting right only.
4. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive assets remaining, after remittance
to the Preference Shareholders and distribution of all preferential
amounts.
5. Additional Information to Secured / Unsecured Long Term Borrowings:
6. Unsecured Long terms loans and advances from Related Parties :
a. Long Term loans from related parties are not going to be recalled
before the end of 2 years.
b. There was no default in repayment of the loans.
7. Unsecured Inter Corporate Deposits
a. Unsecured Inter Corporate Deposits from others are not going to be
recalled before the end of 2 years.
b. There was no default in repayment of the loans.
8. CONTINGENT LIABILITIES AND COMMITMENTS
PARTICULARS 2014-2015 2013-2014
(I) Contingent Liabilities
(A) Claims against the company/ disputed
liabilities not acknowledged as debts.
(i) Income Tax 27,030 27,030
(ii) FEMA 27,19,901 27,19,901
(B) Guarantees NIL NIL
(i) Guarantees to Banks and Financial
Institutions against credit facility
extended to third parties. NIL NIL
(II) Capital Commitments
9. EMPLOYEE BENEFITS :
The directors have waived off the claim in respect of gratuity as per
the Payment of Gratuity Act,1972 in the year under consideration,hence
no provision for the same is made.
10. Foreign exchange gain/loss (net) of Rs. NIL/- (Previous year Rs.
44,470/-) has been included in respective heads of the Statement of
Profit and Loss
11. SEGMENT REPORTING :
1) Information about Primary segment (by business segment)
a) Note books.
b) Engineering Goods - Trading
c) Notebooks - Trading
The Company's business segments are organised around product lines
which have been identified taking into account the nature of products,
the different risks and returns the organisational structure and
internal reporting systems.
i) Segment revenue segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The expenses
which are not directly relatable to the business segment are shown as
unallocated corporate cost.
12. RELATED PARTY DISCLOSURE :
LIST OF RELATED PARTIES PARTICULARS
Subsidiaries / Associates NIL
Key Management Personnel 1] Kantilal Haria
2] Manish Haria
Enterprise in which key management
personnel, and their relatives have 1] Plastex Products Pvt Ltd
significant influence
2] Haria Apparel Limited
Relative of Key Management Personnel NIL
13. The Trade Receivables of Rs. 2,55,81,723/- are overdue and
outstanding since three years. The management has made the provision
for doubtful debts of on the overdue amount.
14. The balance confirmations have been sent to Sundry Debtors,
Creditors, Deposits and Loans & Advances Parties, due adjustment if any
shall be done on receipt of the confirmation. Management is confident
of receiving all the sums due. The provisions for all known liabilities
and for depreciation is adequate and not in excess of the amounts
reasonably necessary.
15. In the opinion of the board the current assets, loans and advances
are approximately of the values stated in the Balance Sheet, realized
in the ordinary course of business.
16. In the absence of declaration from sundry creditors / suppliers
with regard to their status as SSI Undertaking wherever appropriate, it
is not possible to determine the amount, payable to sundry creditors
falling within the meaning of SSI Undertaking.
17. Disclosure under Micro, Small and Medium Enterprises development
Act, 2006. The Company has not received any memorandum ( as required to
be filed by the suppliers with notified authority under the Micro,
Small and Medium Enterprises development Act, 2006) claiming their
status as micro, small and medium enterprises. Consequently the amount
paid/payable to these parties during the period under review is NIL
18. Sundry balances are written off amounting to net Rs. 53,747/- as
per the resolution passed by the Board of Directors at their meeting
held on 6th April, 2015
19. Previous Year Figures have been regrouped &
reclassified/rearranged wherever necessary.
As per Report of the even date attached.
Mar 31, 2014
1. a. Details of Shareholding as at March 31, 2014
i. Equity / Preference Shares held by various entities:
587,952 (5.09%) (PY: 587,952 (5.09%)) Eq. Shares of Rs.10/- each held
by Vilco Pharma Pvt. Ltd.
ii. Shareholders holding more than 5% of Equity / Preference Shares:
2,482,530 (21.49%) {(PY: 2,482,530 (21.49%)) Equity Shares of Rs.10/-
each held by Manish K. Haria (HUF) 1183842{(10.25%)} {(PY: 1183842
(10.25%)) Equity Shares of Rs.10/- each held by Mr. Ketan Keshvaji Shah
1041650 (9.02%) {(PY: 1,041,650(9.02%)) Equity Shares of Rs.10/- each
held by Mr. Ramesh Keshvaji Shah
2. Additional Information:
I) Unsecured Long terms loans and advances from Related Parties :
a. Long Term loans from related parties are not going to be recalled
before the end of 2 years.
b. There was no default in repayment of the loans.
II) Unsecured Inter Corporate Deposits
a. Unsecured Inter Corporate Deposits from others are not going to be
recalled before the end of 2 years.
b. There was no default in repayment of the loans.
3. CONTINGENT LIABILITIES & COMMITMENTS:
PARTICULARS 2013-2014 2012-2013
(Rupees) (Rupees)
(I) Contingent Liabilities
(a) Claims against the company/ disputed
liabilities not acknowledged as debts. NIL NIL
(b) Guarantees
(i) (i) Guarantees to Banks and
Financial Institutions against credit
facility extended to third parties. NIL 100,000,000
(II) Capital Commitments NIL NIL
4. EMPLOYEE BENEFITS:
The directors have waived off the claim in respect of gratuity as per
the Payment of Gratuity Act,1972 in the year under consideration,hence
no provision for the same is made.
6. Foreign exchange gain (net) of Rs. 44,470/- (Previous year Rs.
NIL/-) has been included in respective heads of the Statement of Profit
and Loss.
7. SEGMENT REPORTING :
1 Information about Primary segment (by business segment)
a. Note books.
b. Engineering Goods
c. Plastics
The Company''s business segments are organised around product lines
which have been identified taking into account the nature of products,
the different risks and returns the organisational structure and
internal reporting systems.
i) Segment revenue segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The expenses
which are not directly relatable to the business segment are shown as
unallocated corporate cost.
8. The company in the last quarter of the year under consideration was
only engaged in trading of goods.
9. The Trade Receivables of Rs. 42,96,248/- are overdue and
outstanding since three years. The management has made the provision
for doubtful debts of on the overdue amount.
10. The balance confirmations have been sent to Sundry Debtors,
Creditors, Deposits and Loans & Advances Parties, due adjustment if any
shall be done on receipt of the confirmation. Management is confident
of receiving all the sums due. The provisions for all known liabilities
and for depreciation is adequate and not in excess of the amounts
reasonably necessary.
11. In the opinion of the board the current assets, loans and advances
are approximately of the values stated in the Balance Sheet, realized
in the ordinary course of business.
12. In the absence of declaration from sundry creditors / suppliers
with regard to their status as SSI Undertaking wherever appropriate, it
is not possible to determine the amount, payable to sundry creditors
falling within the meaning of SSI Undertaking.
13. Disclosure under Micro, Small and Medium Enterprises development
Act, 2006. The Company has not received any memorandum ( as required to
be filed by the suppliers with notified authority under the Micro,
Small and Medium Enterprises development Act, 2006) claiming their
status as micro, small and medium enterprises. Consequently the amount
paid/payable to these parties during the period under review is NIL
14. Sundry balances are written off amounting to net Rs. 91,593/(Cr
Balance) - as per the resolution passed by the Board of Directors at
their meeting held on 15 th April, 2014
15 Previous Year Figures have been regrouped & reclassified/rearranged
wherever necessary.
As per Report of the even date attached.
Mar 31, 2013
1. EMPLOYEE BENEFITS :
This clause is not applicable to the company as the gratuity is waived
off by the directors.
* The stock represents transfer on account of merger/demerger. Plastic
division has merged and garment division has demerged.
2. Foreign exchange gain/loss (net) of Rs. NIL/- (Previous year Rs.
NIL/-) has been included in respective heads of the Statement of Profit
and Loss
3. SEGMENT REPORTING 1) Information about Primary segment (by
business segment)
a) Plastics.
b) Note books.
The Company''s business segments are organized around product lines
which have been identified taking into account the nature of products,
the different risks and returns the organizational structure and
internal reporting systems.
i) Segment revenue segment results, segment assets and segment
liabilities include the respective amount
identifiable to each of the segment as also the amount allocated on
reasonable basis. The expenses which are not directly relatable to the
business segment are shown as unallocated corporate cost.
Note: Related Parties Relationship is as identified by the company and
relied upon by the auditors.
Figures in the brackets represent previous year figures.
4. LEASES
Operating Lease Payment in respect of certain office premises and
factory premises on cancellable operating lease which are recognized
into the Statement of Profit and Loss:
5. During the year under consideration, the deferred tax asset of Rs.
14,56,072/- has been further Debited to rectify the effect of demerger
of garment division by Rs.41,93,251/- and further credited to give
effect of Current year by Rs.19,78,943/-, resulting in net Deferred Tax
Asset of Rs.76,28,266/- at the year end.
6. As informed to us by the management, the term loan was sanctioned
by Punjab National Bank of Rs.3,48,00,000/- in the name of Haria
Exports Limited for garment division which has been secured against the
plots numbers 278/279/ 345-358 at GIDC Vapi Industrial Estate, Vapi,
Taluka: PARDI, District- Valsad, Gujarat which is demerged to Haria
Apparels Limited, the term loan was disbursed to Haria Apparels Limited
which is the demerged company from Haria Exports Limited. The
documentation was done in the name of Haria Exports Limited since the
change of name process for land was not complete then. However the
repayment for the same is done from Haria Apparels Limited only. The
Company is however in the process of changing the name in GIDC records
and consequently with Punjab National Bank from Haria Exports Limited
to Haria Apparels Limited.
7. The Balance confirmations have been sent to Sundry Debtors,
Creditors, Deposits and Loans & Advances parties, due adjustments, if
any shall be done on receipt of confirmation. Management is confident
of receiving all the sums due. The provisions for all known liabilities
and for depreciation is adequate and not in excess of the amounts
reasonably necessary.
8. In the opinion of the board the current assets, loans and advances
are approximately of the values stated in the Balance Sheet, realized
in the ordinary course of business.
9. In the absence of declaration from sundry creditors / suppliers
with regard to their status as SSI Undertaking wherever appropriate, it
is not possible to determine the amount, payable to sundry creditors
falling within the meaning of SSI Undertaking.
10. Disclosure under Micro, Small and Medium Enterprises development
Act, 2006. The Company has not received any memorandum ( as required to
be filed by the suppliers with notified authority under the Micro,
Small and Medium Enterprises development Act, 2006) claiming their
status as micro, small and medium enterprises. Consequently the amount
paid/payable to these parties during the period under review is NIL.
11. Sundry balances are written off amounting to net Rs.1,22,460/- as
per the resolution passed by the Board of Directors at their meeting
held on 15th April, 2013.
12. Previous Year Figures have been regrouped &
reclassified/rearranged wherever necessary.
Mar 31, 2012
A. Details of Shareholding as at March 31, 2012
i. Equity / Preference Shares held by various entities:
587952 Eq. Shares of Rs.10/- each held by Associate Company Vilco
Pharma Pvt. Ltd.
ii. Shareholders holding more than 5% of Equity / Preference Shares:
2482530 Equity Shares of Rs.10/- each held by Manish K. Haria (HUF)
620633 Equity Shares of Rs.10/- each held by Mr. Manish K. Haria
1070300 Equity Shares of Rs.10/- each held by Mr. Ketan Keshvaji Shah
1041650 Equity Shares of Rs.10/- each held by Mr. Ramesh Keshvaji Shah
Secured Long Term Borrowings
a. Term Loan from Banks
Loan from Bank is secured by way of hypothecation of Car as at March
31, 2011 which has been transferred to the Demerged Company.
b. Unsecured Long terms borrowings :
Long Term loans are received on personal guarantee of some of the
directors.
1. GENERAL INFORMATION
Haria Exports Limited (''the Company'') was incorporated on
28/08/1970 under The Companies Act, 1956.The company is in the Business
of Manufacturing Industry - Textiles, handloom, Power and Note Books.
During the year company has demerged its textile business into Haria
Apparels Ltd. and also amalgamated within it Best Plastex Pvt. Ltd. The
said scheme of arrangement was sanctioned by the Hon''ble High Court
Judicature at Bombay vide Order dated 22nd March, 2012.
1) The Balances of Sundry Debtors, Creditors, Deposits and Loans &
Advances are accepted as appearing in the Ledger Accounts & subject to
confirmation from individual parties concerned, due adjustments, if any
will be made thereon. Management is confident of receiving all the sums
due. The provision for all known liabilities & for depreciation is
adequate and not in excess of the amount reasonably necessary.
2011-2012 2010-2011
(Rs.in Lacs) (Rs.in Lacs)
2) Contingent Liabilities not provided for
i) Income Tax Demand 154.00 182.00
ii) Bank Guarantee 726.00 369.00
A. Advances Recoverable in Cash or in kind include amount due from
Companies under the same management, of Rs. Nil (Previous Year Rs. Nil)
B. There are no Sundry debtor''s dues from the Companies/firms under
the same Management.
C. SEGMENT REPORTING
1) Information about Primary segment (by business segment)
a) Garments.
b) Note books.
The Company''s business segments are organised around product lines
which have been identified taking into account the nature of products,
the different risks and returns the organisational structure and
internal reporting systems.
2) Segment revenue segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The expenses
which are not directly relatable to the business segment are shown as
unallocated corporate cost.
D. In the absence of declarations from Sundry Creditors / Suppliers
with regard to their status as Small Scale Industrial undertaking
wherever appropriate, it is not possible to determine the amount,
payable to sundry creditors falling within the meaning of Small Scale
Industrial undertaking.
E. Disclosure under Micro, Small and Medium Enterprises development
Act, 2006. The Company has not received any memorandum ( as required to
be filed by the suppliers with notified authority under the Micro,
Small and Medium Enterprises development Act, 2006) claiming their
status as micro, small and medium enterprises. Consequently the amount
paid/payable to these parties during the period under review is NIL
F. Sundry balances are written off amounting to net Rs. 0.41 Lacs as
per the Resolution passed by the Board of Directors at their meeting
held on 15 th April 2012.
G. The Company has not made provision for doubtful debts amounting Rs.
40 lacs as the management is confident of realisatio. The Company has
filed cases against these for recovery of dues.
H. Previous Year figures have been regrouped & reclassified/rearranged
wherever necessary.
Mar 31, 2010
1) The Balances of Sundry Debtors, Creditors, Deposits and Loans &
Advances are accepted as appearing in the Ledger Accounts & subject to
confirmation from individual parties concerned, due adjustments, if any
will be made thereon. Management is confident of receiving all the
sums due. The provision for all known liabilities & for depreciation is
adequate and not in excess of the amount reasonably necessary.
2009-2010 2008-2009
(Rs. in Lacs) (Rs. in Lacs)
2) Contingent Liabilities not
provided for
i) Income Tax Demand 66.22 373.60
ii) Bank Guarantee 219.00 -
I. Advances Recoverable in Cash or in kind include amount due from
Companies under the same management, of Rs. Nil (Previous Year Rs.Nil)
J. There are no Sundry debtors dues from the Companies/firms under
the same Management.
L SEGMENTREPORTEVG
1) Information about Primary segment (by business segment)
a) Garments.
b) Note books.
The Companys business segments are organised around product lines
which have been identified taking into account the nature of products,
the different risks and returns the organisational structure and
internal reporting systems.
2) Segment revenue segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The expenses
which are not directly relatable to the business segment are shown as
unallocated corporate cost.
M. RELATEDPARTYDISCLOSURE
Related Party and their Relationship
a) ASSOCIATES
1) Vilco Pharma Pvt. Ltd.
b) ENTERPRISE IN WHICH MANAGEMENT PERSONNEL AND RELATIVES HAVE
SIGNIFICANT INFLUENCE
1) Kumar International
2) Mars International
c) KFA MANAGEMENTPERSONNFX
1) Kantilal L.Haria
2)Mamsh K. Haria
3) Jaysukh Maru
N. In the absence of declarations from Sundry Creditors / Suppliers
with regard to their status as small scale Industrial undertaking
wherever appropriate, it is not possible to determine the amount,
payable to sundry creditors falling within the meaning of small scale
Industrial undertaking.
O. Sundry balances are written off amounting to net Rs. 1.21lacs
[P.YRs0.71 Lacs] as per the Resolution passed by the Board of Directors
at their meeting held on 15th April 2010.
P. The Company had advanced to three parties a sum of Rs.20.67 crores
for purchase of material for their export orders. Subsequently the
orders were cancelled and the materials were also not received by the
company. The Company is in the process of the recovery of these trade
advances and has lodged suit against parties.
Q. Previous Year figures have been regrouped & reclassified/rearranged
wherever necessary.
Mar 31, 2004
2003-2004 2002-2003
(Rs. in Lacs) (Rs. in Lacs)
1) Contingent Liabilities not provide for
i) Letter of Credit and Bank
Guarantees issued by banker 211.63 278.17
ii) I.T. Demand 249.61 103.20
iii) Corporate guarantee issued to
the bankers 3067.00 965.00
iv) claims against the debt not
provided for NIL NIL
k. Advances Recoverable in Cash or in kind include amount due from
Companies under the same management, of RS. Nil (Previous Year Rs.Nil)
Maximum amount outstanding during the year Rs.50.08 Lacs (Previous Year
Rs.94.43 Lacs). Loan & advances includes Rs. 0.00 (Previous Year 0.50
Lacs) due from a company in which the directors are interested.
l. Sundry debtors include Rs.Nil (Previous Year Rs.Nil) being the dues
from the Companies/firms under the same Management. Maximum amount
outstanding during the year Rs.nil Lacs (Previous Year nil)
m. a) The Company has lodged various suits against State Bank of India
(Overseas Branch) for Credit of CCS. claim, wrong debits, cancellation
of forward contract etc., together with compound interest and damages
all aggregating to Rs. 83.18 crores.
b) In the past the company has lodged a Claim (suit No. 110/98) against
the State Bank of India (Overseas Branch) for Rs. 1,518,50,000/- as the
bank has given a wrong XOS Statement to the Reserve Bank of India, due
to this the RBI kept Companys name under Caution List for approx. 2
months, due to which the Company could not honour its commitments and
one of the buyer M/s. Tropical International Gen. Trdg. LLc has filed a
claim Suit No. 1376/ 98 dtd 31.3.98 for a sum of Rs.8,59,12,500/-. The
Honourable Court has passed a decree in favour of this buyer on
15/7/98, and the money to be paid to the party in equal quarterly
installments of Rs. 47,50,000/-. In the prior years the whole amount of
claim i.e. Rs.8.59 crores with interest up to 31.3.2004 of Rs.4.52
crores was debited to S.B.I and credited to the parties a/c by a book
entry of Rs. 13.11 crore. During the year Company has provided further
interest of Rs.77.32 lacs on claimed amount by debiting to the bank A/c
and crediting to the party account. The liabilities to the bank is
understated by 13.11 crores as the amount debited to the bank is
disputed and unagreed consequently the reserves are affected downward
to this extent, as the court decree against the company is neither
compensated nor challenged.
c) In view of the above facts the Company has not provided for interest
for the year amounting to approximately Rs. 4.70 Lacs (Previous year
12Lacs) on Secured Loans availed from State Bank of India as the Bank
has neither charged the same nor intimated to the Company. However
accumulated liability till year end not provided for Rs.265.70 lacs.
n. The I.T. dept has raised demands aggregating to Rs 249.61 Lacs
against the Company for past Assessments. The Company has disputed the
said demands and preferred appeal against such orders which are pending
before the appellate Authorities. The Company is confident of
succeeding in appeal and accordingly no provision has been made in
accounts for the said Demands.
r. RELATED PARTY DISCLOSURE
Related Party and their Relationship
a) ASSOCIATES
1) Haria Travels Pvt. Ltd. 7) Haria Investment Pvt Ltd.
2) Employment Managments (India) Ltd. 8) Haria Property Pvt. Ltd
3) Vilco Pharma Pvt. Ltd. 9) Kumar International
4) April Exports 10) Best packaging Pvt Ltd
5) Ginza Industries Pvt. Ltd 11) Haria Textiles Pvt. Ltd.
6) Ginza Finance Pvt. Ltd. 12) Haria Garments Pvt. Ltd
b) KEY MANAGEMENT PERSONNEL
1) Kantilal L Haria
2) Manish K. Haria
3) K. L. Maru
4) Nitin P. Shah
Note: related parties relationship is as identified by the company and
relied upon by the auditors.
s) SEGMENT REPORTING
1) Information about primary segment (by business segment)
a) Home furnishing
b) Garments
The companys business segments are organised around product lines
which have been identified taking into account the nature of products,
the differing risks and returns, the organisational structure and
internal reporting systems.
2) Segment revenue, segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The expenses
which are not directly relatable to the business segment are shown as
unallocated corporate cost.
3) Segment Revenue
t) In the absence of declarations from Sundry Creditors / Suppliers
with regard to their status as small scale Industrial undertaking
wherever appropriate, it is not possible to determine the amount, any,
payable to sundry creditors falling within the meaning of small scale
Industrial undertaking.
u) Sundry balances are written off amounting to Rs. 10.52 lacs [ P.Y Rs
128.63 Lacs ] as per the Resolution passed by the Board of Directors at
their meeting held on 20 March 2004.
v) Previous Year figures have been regrouped & reclassified wherever
necessary.
w) Depreciation on building includes write off of Rs.52,15,562/- being
the W.D.V. of building erected on leasehold land taken on lease for a
period of 11 years.
x) The Company has not made provision for doubtful debts amounting to
Rs.83.79 lacs as the management is confident of realization. The
company has filed cases against these for recovery of dues.
Mar 31, 2003
1) The Balances of Sundry Debtors, Creditors State Bank of India
(Overseas Branch) and Loan & Advances are accepted as appearing in the
Ledger Accounts & subject to confirmation from individual Parties
concerned. Due adjustments, if any will be made thereon. Management is
confident of receiving all the sums due from debtors.
2) In view of inadequacy of profit the directors have voluntarily
forgone the right of remuneration amounting to Rs 10.40/- (p y Rs 10.12
lakhs) .The remuneration does not include gratuity and other benefits
except salary.medical expenses P F as per the terms of appointment.
3) Quantitative & Other information:-
a. Advances Recoverable in Cash or in kind include amount due from
Companies under the same management, of RS. Nil (Previous Year Rs.Nil)
Maximum amount outstanding during the year Rs94.43 Lacs (Previous Year
Rs.69.79 Lacs). Loan & advances includes Rs. 0.50 (Previous Year 42.19
Lacs) due from a company in which the directors are interested.
b. Sundry debtors include Rs.Nil (Previous Year Rs.Nil) being the dues
from the Companies/firms under the same Management. Maximum amount
outstanding during the year Rs.nil Lacs (Previous Year nil)
c. a) The Company has lodged various suits against State Bank of India
(Overseas Branch) for Credit of CCS. claim, wrong debits, cancellation
of forward contract etc., together with compound interest and damages
all aggregating to Rs. 83.-18 crores. b) In the past the company has
lodged a Claim (suit No. 110/98) against the State Bank of India
(Overseas Branch) for Rs. 1,518,50,000/-as the bank has given a wrong
XOS Statement to the Reserve Bank of India, due to this the RBI kept
Companys name under Caution List for approx. 2 months, due to which
the Company could not honour its commitments and one of the buyer M/s.
Tropical International Gen. Trdg. LLc has filed a claim Suit No. 1376/
98 dtd 31.3.98 for a sum of Rs. 8,59,12,500/-. The Honourable Court has
passed a decree in favour of this buyer on 15/7/98, and the money to be
paid to the party in equal quarterly installments of Rs. 47,50,000/-.
In the prior years the whole amount of claim i.e. Rs.8.59 crores with
interest up to 31.3.2003 of Rs. 2.2 crores was debited to S.B.I and
credited to the parties a/c by a book entry of Rs. 11.56 crore. During
the year Company has provided further interest of Rs. 77.32 lacs on
claimed amount by debiting to the bank A/c and crediting to the party
account. The liabilities to the bank is understated by 12.33 crores as
the amount debited to the bank is disputed and unagreed consequently
the reserves are affected downward to this extent, as the court decree
against the company is neither compensated nor challenged.
c) In view of the above facts the Company has not provided for interest
for the year amounting to approximately Rs. 12 Lacs (Previous year 19
Lacs) on Secured Loans availed from State Bank of India as the Bank has
neither charged the same nor intimated to the Company. However
accumulated liability till year end not provided for Rs. 261 lacs.
d. The I.T. dept has raised demands aggregating to Rs 103.20 Lacs
against the Company for past Assessments. The Company has disputed the
said demands and preferred appeal against such orders which are pending
before the appellate Authorities. The Company is confident of
succeeding in appeal and accordingly no provision has been made in
accounts for the said Demands.
e. RELATED PARTY DISCLOSURE
Related Party and their Relationship
a) ASSOCIATES
i) Haria Travels Pvt. Ltd.
ii) Haria Engineering Ltd.
iii) Employment Managments (India) Ltd.
iv) Vilco Pharma Pvt. Ltd.
v) April Exports
vi) Ginza Industries Pvt. Ltd
vii) Ginza Finance Pvt. Ltd.
viii) Manhattan Exports Pvt. Ltd.
ix) Haria Investment Pvt Ltd.
xi) Haria Property Pvt. Ltd
xi) Kumar International
xii) Vapi Garments Process Pvt. Ltd.
xiii) Best packaging Pvt Ltd
xiv) Haria paper Industries Ltd
xv) Haria business Links Pvt. Ltd
xvi) Haria Textiles Pvt. Ltd.
xvii) Haria Garments Pvt. Ltd
b) KEY MANAGEMENT PERSONNEL
i) Kantilal L Haria
ii) Manish K. Haria
iii) A. K. Shah
iv) K. L. Maru
v) Nitin P. Shah
Note: related parties relationship is as identified by the company and
relied upon by the auditors. s) SEGMENT REPORTING
1) Information about primary segment (by business segment)
a) Home furnishing
b) Garments
The company"s business segments are organised around product lines
which have been identified taking into account the nature of products,
the differing risks and returns, the organisational structure and
internal reporting systems.
2) Segment revenue, segment results, segment assets and segment
liabilities include the respective amount identifiable to each of the
segment as also the amount allocated on reasonable basis. The expenses
which are not directly relatable to the business segment are shown as
unallocated corporate cost.
3) Segment Revenue
a) In the absence of declarations from Sundry Creditors / Suppliers
with regard to their status as small scale Industrial undertaking
wherever appropriate, it is not possible to determine the amount, any,
payable to sundry creditors falling within the meaning of small scale
Industrial undertaking.
b). Net Sundry balances are written off amounting to Rs. 128.63 lacs
[P.Y Rs 2.62 Lacs (net) ] as per the Resolution passed by the Board of
Directors at their meeting held on 30 April 2003. The company has
written old outstanding liabilities amounting to Rs 1.06 crore due to
various parties The subject matter is under dispute, the management is
advised that it is no longer payable.
c) Depreciation on building includes depreciation of Rs 3286336/- being
the depreciation on building erected on leasehold land taken on lease
for a period of 10 years.
d) The capital subsidy of Rs 63 lacs received by the company for re
establishment of kandla unit has been considered as other income, which
is contrary to the accounting standards AS-10 issued by ICAI and to
that extent profit is overstated and consequently the reserve.
e) As per Accounting Standard AS-16 interest amounting to rs 143407/-
has been capitalized
f) Previous Year figures have been regrouped & reclassified wherever
necessary.
g) The company has not made provision for doubtful debts amounting to
Rs 44.50 lacs as the management is confident of realization of such
debtors of which, the company has filed a case against a debtor for
recovery of Rs 30 lacs