Mar 31, 2015
A) Working capital facilities with Indian Overseas Bank is secured by
first charge on Current Assets of the Company.
b) As collateral security, Indian Overseas Bank has second pari passu
charge on (i) Movable block assets of the company, (ii) Mortgage on
Land and Building at Doddaballapur, Bangalore and (iii) Mortgage on
Land and Building at Gangarampur, 24 Parganas (S), West Bengal.
c) Further, the working capital limits of Indian Overseas Bank is also
secured by personal guarantee of two Directors of the company.
d) The said loan from Indian Overseas Bank are subject to confirmation
and reconciliation, if any.
e) Rupee Term Loan with Industrial Development Bank of India Ltd (IDBI)
has been secured as follows:
Purpose Description of property
Retail showroom
(i) Plant and machinery of Kolkata EOU on first Charge.
(ii) Entire movable property (excluding current assets) of retail
showroom on first charge basis. (iii) Stock of Raw Material, WIP and
Finished goods of all units on second charge Doddaballapur (i) First
charge on Land and Building at Dodaballapur.
(ii) First charge on movable and immovable assets (except Stock) of
J.J.Spectrum (unit of J J Exporter Ltd.) (iii) First charge on movable
and immovable assets (except Stock) of EOU at Kolkata.
Kolkata EOU (i) Whole of movable properties (other than stock) of the
company's unit situated at Gangarampur, EOU-I and EOU-II (ii) Land
measuring 40,000 sq. feet together with buliding thereon. Plant and
machinery on first charge (iii) Personal guarantee of a Director.
a) Terms of Repayment of Term Loans/ FITL From IDBI
The IDBI Bank Limited has approved One Time Settlement (OTS) of its
dues on account of Term Loan and Funding Interest Term Loan, the
repayment of which is as follows:
Rs.15 crore was to be paid by selling Dodaballapur unit by March, 2015,
the remaining Term Loan of Rs. 57,662,750/- is to be repaid w.e.f. 1st
April 2015 in 59 monthly installments of Rs. 965,000/- and one
installment of Rs. 727,750/-.
The Funding Interest Term Loan of Rs. 67,732,163/- is to be repaid in 60
monthly installments w.e.f 1st April 2015.
b) The Working Capital Loans and Funding Interest Term Loan has been
recalled by Indian Overseas Bank. Hence, the said loan is shown as
Current Maturity of Long Term Borrowings and is included in Other
Current Liabilities (Refer Note 5). However, the Company has approached
the bank for One Time Settlement.
c) Terms of Repayment of Term Loans of Previous Year
Terms of Repayment of Funding Interest Term Loans From Banks:
A) IDBI Bank Limited
Funding Interest Term Loans Rs. 3,17,40,479/-.The interest on the Term
loan is funded by the bank by way of FITL upto Rs. 7 Crores till 31st
March, 2015. It was to be repaid in 60 monthly installment w.e.f 1st
April 2015.
B) Indian Overseas Bank
Funding Interest Term Loans Rs. 99,78,469/-. The interest on the Working
Capital Term loan is funded by the bank by way of FITL. It was to be
repaid in 16 Quarterly installment w.e.f 1st April, 2016.
Terms of Repayment of Working Capital Term Loan from IOB:
The Bank had crystalised and converted part of the Packing Credit
Facility to WCTL during the year. The said loan was repayable in 16
Quarterly Installments of Rs. 56.25 lacs each w.e.f 1st April, 2016.
Terms of Repayment of Term Loan from IDBI:
The Bank has restructured the terms of repayment of Term Loan as
follows:
Rs. 20 crore was to be paid by selling Dodaballapur unit by March, 2015,
the remaining Term Loan of Rs. 57,662,750/- was to be repaid w.e.f. 1st
April 2015 in 59 monthly installments of Rs. 965,000/- and one
installment of Rs. 727,750/-
1. In respect of the Equity Shares of Erstwhile J.J. Spectrum Silks Ltd.
held by the company (hereinafter referred to as the transferee
company), 1,303,675 shares have been issued by the transferee company
in terms of scheme, to the board of trustees to have and to hold such
shares in trust exclusively for the benefit of the transferee company
and deal with the same as they deem fit.
The above shares have been valued at cost. The said shares, being long
term in nature, no provision for diminution in value has been done in
earlier years. However, as per prudence and in view of the Financial
Position, the company has made a provision of Rs. 3,00,00,000/- towards
diminution in the year 2013-14 which, according to the management, is
appropriate.
2. In the opinion of Board of Directors, all the current assets, loans
and advances have a value on realization in the ordinary course of
business, at least equal to the amount at which they are stated and
that all the known liabilities relating to the year have been provided
for.
3. As the company's business activities falls mainly within a single
primary business segment viz. Dealing in Textile Goods, so disclosure
requirement of Accounting Standard 17 " Segment Reporting ", notified
in the Section 133 of Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 has not been given.
4. Related Party Disclosure in accordance with Accounting Standard 18
notified in the Section 133 of Companies Act, 2013, read with Rule 7 of
the Companies (Accounts) Rules, 2014.
a) Where common control exist Relationship
i) Spin International Inc. Wholly Owned Subsidiary Company
ii) OOO JJ Home Wholly Owned Subsidiary Company
iii) JJ Creation SA Subsidiary Company (Ceased to be a Subsidiary
Company during the year)
iv) Nupur Carpet Private Limited (Associate)
b) Key Managerial Personnel
i) Sri S.N. Jhunjhunwala Executive-Chairman
ii) Sri Rajiv Jhunjhunwala Vice-Chairman
v) Shri A.B. Chaturvedi Whole Time Director
c) Relative of key managerial personnel
i) Mrs. Kavita Jhunjhunwala Wife of Mr. Rajiv Jhunjhunwala,
Vice-Chairman
Note : The Sale of Goods include Deemed Export Sale to Subsidiary
Company amounting to Rs. NIL (Previous Year Rs. 1,355,634/-).
5. The Company has approached the banks for one Time Settlement of
outstanding loans. Two of the banks have approved Company's One Time
Settlement Proposal and have been accepted by the company. All
necessary adjustment entries have been passed in the books of accounts
where the company has accepted the One time settlement approval in
totality and has been shown as Extraordinary Item.
6. The Net worth of the Company has substantially eroded and now the
Company has initiated business and debt restructuring (Refer Note 7
above). In view of the ongoing restructuring, the accounts of the
Company have been prepared on going concern basis.
7. As a matter of prudence no deferred tax assets after adjusting MAT
liability has been recognised in the account in accordance with
"Accounting Standard 22", as notified in the Section 133 of Companies
Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
8. Profit and Loss on sale of Investment includes Rs. 1486/- (Previous
Year - Rs. NIL) on account of Security Transaction Tax paid on such
transactions.
9. One of the subsidiary, OOO JJ HOME, had closed its business during
the year 2013-14. As a consequence of that, debit balance due from
above subsidiary amounting to Rs. 20,101,432 had been provided and a
provision for diminution in value of investment was done amounting to Rs.
6,095,172, necessary approval is awaited from Reserve Bank of India.
10. Land measuring about 2.07 acre duly conveyed in the name of one of
the unit of the Company by the State Government has been disputed by
the original owner and the matter is subjudice.
11. In Respect Of 100% Export Oriented Units and as per the prevailing
laws and guidelines, it is exempted from Customs and Central Excise
Duties and levies. The Company has executed legal undertaking to pay
the customs and central excise duties and liquidated damages, if any,
in respect of capital goods, raw material, stores etc. procured duty
free in the event of non- fulfillment of terms and conditions.
12. Loans and advances include Rs. 8,112/- ( Previous Year amounting to Rs.
374,736/-) balance lying with Central Excise department.
13. There is no amount to be credited to Investors Education &
Protection Fund as on 31st March 2015.
14. Interest on term loan is net of TUFS subsidy amounting to Rs.
4,518,636/- (Previous Year Rs. 4,592,858/-).
15. a Claims against certain Derivative transactions entered with a Bank
during 2007-2008 have not been acknowledged by the company. Claims of
Rs. 7.86 crores (excluding Interest) against these transactions which
were contested and not provided by the management. However, the same
had been settled by the company for an amount of Rs. 4 crores, which
had been reflected as an Exceptional item in 2013-14.
16. b Also, Claims of Rs. 14,597,401/- by the company against the bank,
for which a provision had been made in the books, was treated as Bad
Debts in Accounts in the year 2013-14.
17. The Company had closed down the operation in its units at
Dodaballapur, Bangalore with effect from 01-04-2013 and had disposed of
the assets thereon in the Previous year except Land and Building which
is in the process of disposal.
18. The Disclosure required under Accounting Standard 15 " Employee
Benefits " notified in the Section 133 of Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014 are given below:
A DEFINED CONTRIBUTION PLANS
B DEFINED BENEFIT PLANS
GRATUITY PLAN
The estimation of rate escalation in salary considered in the actuarial
valuation, takes into account inflation, seniority, promotion and other
relevant factors such as supply and demand in employment market. The
above information as provided by the actuary.
19. Due to unfavourable market conditions and downturn in silk industry,
one of the units at Gangarampur is no more viable to operate. So the
company has declared temporary closure w.e.f. 01.12.2013.
20. One of the Subsidiary, namely, J J Creations SA had reduced its
share capital by  42,500 in the previous year. The Shares of the said
subsidiary were disposed of by the Company during the year.
21. The company has regrouped and rearranged previous year figures to
confirm the corresponding figures of this year.
Note:
a) Previous year's figures has been regrouped and rearranged wherever
necessary.
b) The above cash flow has been prepared under "Indirect Method" as
prescribed under Accounting Standard 3 notified in Section 133 of the
Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules,
2014.
c) Cash & Cash Equivalents as at March 31, 2015 and March 31, 2014
exclude restricted Cash & Bank Balances. The restrictions are primarily
on account of Bank Balances held as Margin Money Deposits against
Guarantees and Unpaid Bills but includes restricted Bank Balance such
as Unpaid Dividends.
Mar 31, 2014
1 Working capital facilities with Indian Overseas Bank and Federal
Bank Ltd are secured by first charge on Current Assets of the Company
on pari- passu basis. Further, Current assets of the company has also
been charged to Citi Bank on pari- passu basis from whom there are no
facilities availed as on date.
2 As collateral security, Indian Overseas Bank has second pari-passu
charge with The Federal Bank Limited on
(i) Movable block assets of the company,
(ii) Mortgage on Land and Building at Doddaballapur, Bangalore and
(iii) Mortgage on Land and Building at Gangarampur, 24 Parganas(S),
West Bengal.
3 As collateral security, The Federal Bank Ltd. has second pari passu
charge with IOB on
(i) Movable block assets of the company,
(ii)Mortgage on Land and Building at Doddaballapur, Bangalore,
(iii) Mortgage on Land and Building at Gangarampur, 24 Parganas (S),
West Bengal,
(iv)Mortgage on Land & Building at 51/2, Hindustan Park, Kolkata and
(v)Mortgage on flat at Santilla Apartment, Yelhanka, Bangalore.
There is no first charge on this Flat.
Further, the working capital limits of Indian Overseas Bank and Federal
Bank Ltd. are also secured by personal guarantee of two Directors of
the company.
4 Terms of Repayment of Term Loans From IDBI:
The Bank has restructured the tems of repayment of Term Loan during the
year as follows.
Rs. 200,000,000 to be paid by selling Dodaballapur unit by March 31st,
2015, the remaining Term Loan of Rs. 576,62,750/-will be repaid w.e.f
1st April 2015 in 59 monthly installments of Rs. 965,000/- and one
installment of Rs. 727,750/-.
5 Terms of Repayment of Funding Interest Term Loans From Banks
A) IDBI Bank LTD.
Funding Interest Term Loans Rs. 3,17,40,479/-.The interest on the Term
loan is funded by the bank by way of FITL upto Rs. 7 Crores till 31st
March 2015. It shall be repaid in 60 monthly installment w.e.f. 1st
April 2015.
B) Indian Overseas Bank
Funding Interest Term Loans Rs. 99,78,469/-.The interest on the Working
Capital Term loan is funded by the bank by way of FITL. It shall be
repaid in 16 Quarterly installment w.e.f. 1st April 2016.
6 Terms of Repayment of Working Capital Term Loan from IOB
The Bank has crystalised and converted part of the Packing Credit
Facility to WCTL during the year. The said loan is repayable in 16
Quarterly Installments of Rs. 56.25 lacs each w.e.f. 1st April 2016.
7 Contingent Liabilities not provided for :
a) Letters of Guarantee 6,474,950 6,474,950
b) Income Tax pending in appeals
for earlier years 95,423,694 58,608,571
c) Case pending in Labour Court 159,200 159,200
d) Sales tax claim under Appeal 69,972,650 440,255
(For this, management expects no liability)
8 In respect of the Equity Shares of Erstwhile J.J. Spectrum Silks Ltd.
held by the company (hereinafter referred to as the transferee
company), 1,303,675 shares which have been issued by the transferee
company in terms of scheme, to the board of trustees to have and to
hold such shares in trust exclusively for the benefit of the transferee
company and deal with the same as they deem fit.
The above shares have been valued at cost. The said shares, being long
term in nature, no provision for diminution in value has been done in
earlier years. However, as per prudence and in view of current working,
the company has made a provision of Rs. 3,00,00,000/- towards
diminution during the year which, according to the management, is
appropriate.
9 In the opinion of Board of Directors, all the current assets, loans
and advances have a value on realisation in the ordinary course of
business, at least equal to the amount at which they are stated, and
that all the known liabilities relating to the year have been provided
for.
10 As the company''s business activities falls mainly within a single
primary business segment viz. dealing in Textile Goods, so disclosure
requirement of Accounting Standard 17 "Segment Reporting", notified in
Companies (Accounting Standard) Rules, 2006 has not been given.
11 Disclosures regarding derivative instruments :
The company uses forward exchange contracts to hedge against its
foreign currency exposures relating to the underlying transactions and
firm commitments. The use of these foreign contracts reduces the risk
or cost to the company and the company does not use the foreign
exchange contracts for trading or speculation purposes.
12 Related Party Disclosure in accordance with Accounting Standard 18
notified in the Companies (Accounting Standard) Rules, 2006
a) Where common control exist Relationship
i) Spin International Inc. Wholly Owned Subsidiary Company
ii) OOO JJ Home Wholly Owned Subsidiary Company
iii) JJ Creation SA Subsidiary Company
iv) Nupur Carpet Private Limited (Associate) Common Key Managerial
Personnel
b) Key Managerial Personnel
i) Sri S.N.Jhunjhunwala Executive-Chairman
ii) Sri Rajiv Jhunjhunwala Executive Vice-Chairman
v) Shri A.B.Chaturvedi Whole Time Director
c) Relative of key managerial personnel
i) Mrs. Neha Jalan, Designing Consultant Daughter of Mr. Rajiv
Jhunjhunwala, Vice-Chairman
ii) Mrs. Kavita Jhunjhunwala Wife of Mr. Rajiv Jhunjhunwala,
Vice-Chairman
iii) Ms. Megha Jhunjhunwala Daughter of Mr. Rajiv Jhunjhunwala,
Vice-Chairman 12 Profit & Loss on sale of Investment excludes Rs. NIL
(Rs. 634/)- on account of Security Transaction Tax paid on such
transactions.
13 One of the subsidiary, OOO JJ HOME, has closed its business during
the year. As a consequence of that, debit balance due from above
subsidiary amounting to Rs. 20,101,432 has been provided and a
provision for diminution in value of investment done amounting to Rs.
6,095,172 for which necessary approval is being obtained from R.B.I.
14 In respect of 100% Export Oriented Units and as per the prevailing
laws and guidelines, it is exempted from Customs and Central Excise
Duties and levies. The Company has executed legal undertaking to pay
the customs and central excise duties and liquidated damages, if any,
in respect of capital goods, raw material, stores etc. procured duty
free in the event of non- fulfillment of terms and conditions.
15 Interest include Rs. 31,088,678/- (Rs. 37,360,902/-) on Term Loan.
16 Loans and Advances include Rs. 374,736/- (Rs. 18,264/-) balance
lying with Central Excise Department.
17 There is no amount to be credited to Investors Education &
Protection Fund due as on 31st March, 2014.
18 Interest on Term Loan is Net of Rs. 4,592,858/- (Rs. 5,405,941/-) of
TUFS Subsidy.
19 a Claims against certain Derivative transactions entered with a Bank
during 2007-2008 was not acknowledged by the company. Claim of Rs.
7.86 crores (excluding Interest) against these transactions was
contested and not provided by the management. However, the same has
been settled by the company for an amount of Rs. 4 crore, which has
been reflected as an Exceptional Item.
20 b Also, Claims of Rs. 14,597,401/- by the company against the bank,
for which a provision had been made in the books, is now treated as Bad
Debts in Accounts.
21 Exchange Gain/(Loss) amounting to Rs. NIL (Rs. 865,469/-) in respect
of Forward Exchange Contracts for unexpired period will be recognised
in subsequent period in accordance with Accounting Standard 11,
notified in Companies (Accounting Standard) Rules, 2006.
22 The Company has closed down the operation of its units at
Dodaballapur, Bangalore with effect from 01-04-2013 and has disposed
off the assets thereon.
23 The company has initiated financial restructuring process, including
proposal of one time settlement with banks. In view of the same, the
accounts have been prepared as going concern.
24 The Disclosure required under Accounting Standard 15 "Employee
Benefits" notified in the Companies (Accounting Standard) Rules 2006,
are given below:
A DEFINED CONTRIBUTION PLANS B DEFINED BENEFIT PLANS
25 Due to unfavourable market conditions and downturn in silk industry,
one of the units at Gangarampur is no more viable to operate. So the
company has declared temporary closure w.e.f. 01.12.2013.
26 One of the subsidiary, namely, JJ Creations SA has reduced its share
capital by  42,500. As a result, the company''s investment in the
said subsidiary has reduced by Rs. 1,037,062/-. Profit on such
reduction amounting to Rs. 1,949,392/- is included in Profit on Sale of
Long term Investment.
27 The company has regrouped and rearranged previous year figures to
confirm the corresponding figures of this year.
Mar 31, 2013
1 In respect of the equity shares of Erstwhile J.J.Spectrum Silks Ltd.
held by the company (hereinafter referred to as the transferee
company), 1,303,675 shares which have been issued by the transferee
company in terms of scheme, to the board of trustees to have and to
hold such shares in trust exclusively for the benefit of the transferee
company and deal with the same as they deem fit.
The above shares have been valued at cost. No provision for diminution
in value has been done by the company in view of its long term nature.
2 In the opinion of board of directors, all the current assets, loans
and advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated and that
all the known liabilities relating to the year have been provided for.
3 As the company''s business activities falls mainly within a single
primary business segment viz. Dealing in textile goods, so disclosure
requirement of accounting standard 17 "Segment Reporting", notified in
Companies (Accounting Standard) Rules, 2006 has not been given.
4 Disclosures regarding derivative instruments :
The company uses forward exchage contracts to hedge against its foreign
currency exposures relating to the underlying transactions and firm
commitments. The use of these foreign contracts reduces the risk or
cost to the company and the company does not use the foreign exchange
contracts for trading or speculation purposes.
5 Related Party Disclosure in accordance with Accounting Standard 18
notified in the Companies (Accounting Standard) Rules, 2006
a) Where common control exist Relationship
i) Spin International Inc. Wholly Owned Subsidiary Company
ii) OOO JJ Home Wholly Owned Subsidiary Company
iii) JJ Creation SA Subsidiary Company
iv) Nupur Carpet Private Limited Common Key Managerial Personnel
b) Key Managerial Personnel
i) Sri S.N.Jhunjhunwala Executive-Chairman
ii) Sri Rajiv Jhunjhunwala Executive Vice-Chairman
iii) Mrs. Laxmi Jhunjhunwala Director (Resigned with effect from
26/06/2012)
iv) Shri Arvind Kumar Thakur Whole Time Director & CFO (Resigned with
effect from 01/06/2012)
v) Shri A.B.Chaturvedi Whole Time Director (Appointed with effect from
16/08/2012)
c) Relative of key managerial personnel
i) Mrs. Neha Jalan, Designing Consultant Daughter of Mr. Rajiv
Jhunjhunwala, Vice-Chairman
ii) Mrs. Kavita Jhunjhunwala Wife of Mr. Rajiv Jhunjhunwala,
Vice-Chairman
iii) Ms. Megha Jhunjhunwala Daughter of Mr. Rajiv Jhunjhunwala,
Vice-Chairman
6 As a matter of prudence no deferred tax assets after adjusting MAT
liability has been recognised in the account in accordance with
"Accounting Standard 22", as prescribed by Companies Act, 1956
7 A) Loans & Advances in the nature of loans to subsidiaries (Interest
Free)
8 Profit and Loss on sale of Investment excludes Rs. 634/- (Rs. 1,404/-)
on account of security transaction tax paid on such transactions.
9 Land measuring about 2.07 acre duly conveyed in the name of one of
the unit of the company by the State Government has been disputed by
the original owner and the matter is sub-judice.
10 In Respect of 100% Export Oriented Units and as per the prevailing
laws and guidelines, it is exempted from customs and central excise
duties and levies.The Company has executed legal undertaking to pay the
customs and central excise duties and liquidated damages, if any, in
respect of capital goods, raw material, stores etc. procured duty free
in the event of non- fulfilment of terms and conditions.
11 Interest include Rs. 37,360,902/-(Rs. 41,991,267/-) on term loan.
12 Loans and advances include Rs.18,264 (Rs. 47/-) balance lying with
central excise department
13 There is no amount to be credited to Investors Education &
Protection Fund due as on 31st March 2013.
14 Interest on term loan is net of Rs. 5,405,941 (Rs. 6,308,883/-) of TUFS
subsidy.
15 Claims against certain Derivative transactions entered with the Bank
during 2007-2008 have not been acknowledged by the company. Claims of Rs.
7.86 crores (excluding Interest) against these transactions which have
been contested and not provided by the management, as the matter is
subjudice. However, during the previous year, settlement was entered
with one of the bank and amount paid Rs. 27,547,746/- is shown as
exceptional item in the statement of profit & loss.
16 Exchange gain/(loss) amounting to Rs. 865,469 ( Rs. 3,090,383/-) in
respect of forward exchange contracts for unexpired period to be
recognised in subsequent period in accordance with Accounting Standard
11.
17 The Company has closed down its operation in its unit Dodaballapur,
Banglore with effect from 01-04-2013 and is in the process of disposing
its assets thereon.
18 In view of unfavourable market conditions and poor working results,
company has approached its lending banks for restructuring of its debts
which interalia will result in deferment of overdue interest and
principal of the above debts which is under their active consideration.
19 The Disclosure required under Accounting Standard 15 "Employees
Benefit" notified in the Companies (Accounting Standard) Rules 2006,
are given below:
A DEFINED CONTRIBUTION PLANS
B DEFINED BENEFIT PLANS
GRATUITY PLAN
The employees gratuity fund scheme managed by Life Insurance
Corporation of India is a defined benefit plan. The present value of
obligation is determined based on the actuarial valuaton using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
20 The company has regrouped and rearranged previous year figures to
confirm the corresponding figures of this year.
Mar 31, 2012
A) As collateral security, Indian Overseas Bank has second pari passu
charge on (i) Movable block assets of the company, (ii) Mortgage on
Land and Building at Doddabailapur, Bangalore and (iii) Mortgage on
Land and Building at Gangarampur, 24 Parganas (S), West Bengal.
b) As collateral security, The Federal Bank Ltd. has second pari passu
charge on (i) Movable block assets of the company, (ii) Mortgage on
Land and Building at Doddabailapur, Bangalore, (iii) Mortgage on Land
and Building at Gangarampur, 24 Parganas (S), West Bengal, (iv)
Mortgage on Land & Building at 51/2, Hindustan Park, Kolkata and (v)
Mortgage on flat at Santilla Apartment, Yelhanka, Bangalore. Further,
the working capital limits of The Federal Bank Ltd. are also secured by
personal guarantee of three Directors of the company.
a) The company has not received information from vendors regarding the
status under the Micro, Small & Medium Enterprises Development Act,
2006 and hence no disclosures thereof for outstanding are made in this
account.
1 Contingent Liabilities not provided for:
a) Letters of Guarantee 5,614,200 7,070,200
b) Income Tax pending in appeals
for earlier years 58,608,571 151,091,809
c) Case pending in Labour Court 159,200 159,200
d) Sales tax claim under Appeal 124,119,951 1,666,677
(For this, management expects
no liability)
2 In respect of the equity shares of Erstwhile J.J. Spectrum Silks Ltd.
held by the company (hereinafter referred to as the transferee
company), 1,303,675 shares have been issued by the transferee company
in terms of scheme, to the board of trustees to have and to hold such
shares in trust exclusively for the benefit of the transferee company
and deal with the same as they think deems fit.
3 In the opinion of board of directors, all the current assets, loan
and advances have a value on realization in the ordinary course of
business at least equal to the amount at which they are stated and that
all the known liabilities relating to the year have been provided for.
4 As the company's business activities fall mainly within a single
primary business segment viz. Dealing in fabrics and accessories, so
disclosure requirement of accounting standard 17 "Segment Reporting",
notified in Companies (Accounting Standard ) Rules, 2006 has not been
given.
5 Disclosures regarding derivative instruments :
The company uses forward exchange contracts to hedge against its foreign
currency exposures relating to the underlying transactions and firm
commitments. The use of these foreign contracts reduces the risk or
cost to the company and the company does not use the foreign exchange
contracts for trading or speculation purposes.
6 As a matter of prudence no deferred tax assets after adjusting MAT
liability has been recognized in the account in accordance with
"Accounting Standard 22", as prescribed by Companies Act, 1956
7 Profit and Loss on sale of Investment excludes Rs 1,404/- (Rs1,845/-)
on account of security transaction tax paid on such transactions.
8 Land measuring about 2.07 acre duly conveyed in the name of one of
the unit of the company by the State Government has been disputed by
the original owner and the matter is sub juice.
9 In Respect of 100% Export Oriented Units and as per the prevailing
laws and guidelines, it is exempted from customs and central excise
duties and levies. The Company has executed legal undertaking to pay the
customs and central excise duties and liquidated damages, if any, in
respect of capital goods, raw material, stores etc. procured duty free
in the event of non- fulfillment of terms and conditions.
10 Interest include Rs 41,991,267/- (Rs 31,273,828/-) on term loan.
11 Loans and advances include Rs 47/- (Rs 47/-) balance lying with
central excise department.
12 There is no amount to be credited to Investors Education &
Protection Fund as on 31st March, 2012.
13 Interest on term loan is net of Rs 6,308,883/- (Rs 6,296,955/-) of
TUFS subsidy.
14 Claims against certain Derivative transactions entered with the Bank
during 2007-2008 have not been acknowledged by the company. Claims of Rs
7.86 crores (excluding Interest) against these transactions which have
been contested and not provided by the management, as the matter is sub
juiced. However, during the year, settlement has been entered with one
of the bank and amount paid Rs 27,547,746/- is shown as exceptional item
in the statement of profit & loss account.
15 Exchange gain/(loss) amounting to Rs 3,090,383/- (Rs 2,973,921/-) in
respect of forward exchange contracts for unexpired period to be
recognized in subsequent period in accordance with Accounting Standard
11.
16 The Disclosure required under Accounting Standard 15 "Employees
Benefit" notified in the Companies (Accounting Standard) Rules 2006,
are given below:
A DEFINED CONTRIBUTION PLANS
B DEFINED BENEFIT PLANS
GRATUITY PLAN
The employees gratuity fund scheme managed by Life Insurance
Corporation of India is a defined benefit plan. The present value of
obligation is determined based on the actuarial valuation using the
Projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
The estimation of rate escalation in salary considered in the actuarial
valuation, takes into account inflation , seniority, promotion and
other relevant factors such as supply and demand in employment market.
The above information as provides by the actuary.
17 Till the year ended 31st March 2011, the company was using
pre-revised Schedule VI to the Companies Act 1956, for preparation and
presentation of its Financial Statements. During the year ended 31st
March 2012, the revised Schedule VI notified under the Companies Act,
1956, has become applicable and the same is being followed by the
company. The Company has reclassified previous year figures to conform
to this year's classification. The adoption of revised Schedule VI
does not impact recognition and measurement principles followed for
preparation of financial statements.
Mar 31, 2010
1. Realisation on account of samples from foreign buyers have been
credited to sample expenses account.
2. The Company has not received information from vendors regarding the
status under the Micro, Small & Medium Enterprises Development Act,
2006 and hence disclosure relating to amounts unpaid as at the year end
together with interest paid/payable under this act have not been given.
3. In respect of the equity shares of erstwhile J. J. Spectrum Silk
Ltd. held by the Company, 1,303,675 equity shares which have been
issued by the transferee Company in terms of scheme, were allotted to
the Board of Trustees to have and hold the same in Trust exclusively
for the benefit of the Transferee Company and deal with the same as
they think/deem fit.
4. In the opinion of Board of Directors, all the Current Assets, Loan
and Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated and that
all the known liabilities relating to the year have been provided for.
5. Working Capital facilities with Indian Overseas Bank, City Bank NA
and The Federal Bank Ltd. are secured by first charge on Current Assets
of the Company on pari-passu basis.
As collateral security, Indian Overseas Bank has a second pari-passu
charge on the Plant & Machinery of the Companys Dyeing Unit at
Rajajinagar, Bangalore, Land and Building at Rajajinagar and Fixed
Assets of J. J. Spectrum Silk.
As collateral security, The Federal Bank Ltd. has a second pari-passu
charge on Plant & Machinery at Companys Dyeing Unit at Rajajinagar,
Bangalore and Companys Land & Building at Rajajinagar, Bangalore.
6. As the Companys business activities fall mainly within a single
primary business segment viz. dealing in fabrics and accessories, so
disclosure requirement of Accounting Standard 17 " Segment Reporting",
notified in Companies (Accounting Standard) Rules, 2006, has not been
given.
7. Disclosures regarding Derivative Instruments
The Company uses forward exchage contracts to hedge against its foreign
currency exposures relating to the underlying transactions and firm
commitments. The use of these foreign exchange contracts reduces the
risk or cost to the Company and the Company does not use the foreign
exchange contracts for trading or speculation purposes.
8. As a matter of prudence no deferred tax assets after adjusting MAT
liability has been recognised in the account in accordance with
"Accounting Standard 22", as prescribed by Companies Act, 1956.
9. Comparative figures for the Previous Year have been
regrouped/recasted wherever necessary and the same have been indicated
in brackets.
10. Land measuring about 2.07 acre duly conveyed in the name of one of
the unit of the Company by the State Government has been disputed by
the original owner and the matter is subjudice.
11. In respect of 100% Export Oriented Units, as per the prevailing
laws and guidelines, they are exempted from Customs and Central Excise
Duties and Levies.The Company has executed legal undertaking to pay the
Customs and Central Excise Duties and Liquidated Damages, if any, in
respect of capital goods, raw material, stores etc. procured duty free
in the event of non-fulfillment of the terms and conditions.
12. Interest includes Rs. 27,279,071/- (Rs. 24,599,508/-) on term
loans.
13. Loans and Advances include Rs. 10,713/- (Rs. 27,804/-) balance
lying with central excise department.
14. There is no amount to be credited to Investors Education &
Protection Fund as on 31 st March, 2010.
15. Interest on Term Loan is net of Rs. 6,424,773/- (Rs. 7,072,105/-)
of TUFS subsidy.
16 Certain Foreign Currency Derivative transactions of the Company with
Citi Bank and ICICI Bank have been held contrary to law by a Statutory
Authority. Hence the company has disputed these transactions with
respective Banks and claimed refund of the paid amount Rs. 35,772,526/-
under theses contracts. Accordingly, accounting entries were effected
by the Company during the financial year ended 31.03.2009 for the said
amount by showing the same as Claims Receivable from Banks, instead of
debiting to Profit & Loss Account. In view of above, further claims
made by these Banks for cancellation of said transactions amounting to
Rs. 140,300,175/- (excluding interest) have also neither been accounted
for nor acknowledged by the Company.
17. Certain Long Term Investments are strategic in nature and fall in
value is temporary, hence it has not been provided in these accounts.
18. Exchange difference in respect of Forward Exchange Contract to be
recognised in Profit & Loss Account is Rs. NIL (Rs. 1,770,466/-).
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article