Mar 31, 2018
Note: 26.9. Information on related party as required by Indian Accounting Standard (Ind AS-24) on Related Party Disclosures for the year ended 31st March 2018
In accordance with the requirement of Accounting Standard (Ind AS-24) Related Party Disclosures, the names of the related parties where control exits and/or with whome transactions have taken place during the year and description of relationships, as identified and certified by the management are :-
List of Related Parties :-
A) Key Management Personnel :
L Vinay Reddy, Chairman and Managing Director L Jaipal Reddy, Whole Time Director R Govindarajan, Chief Financial Officer Divya Shirmali, Company Secretary
B) Other Related Parties
Entities where Key Management Personnel exercises significant influence/ Group Companies : Tecknit Industries
Note: 26.10. Information on related party as required by Indian Accounting Standard (lndAS-24) on Related Party Disclosures for the year ended 31st March 2018
Particulars |
For the year ended 31st March 2018 |
For the year ended 31st March 2017 |
1. Rent Paid |
||
Tecknit Industries |
94,050 |
1,01,205 |
2. Remuneration Paid |
35,25,000 |
44,12,500 |
Mr. L Vinay Reddy |
17,25,000 |
23,62,500 |
Mr. L Jaipal Reddy |
18,00,000 |
20,50,000 |
3. Sitting Fees - Directors |
3,25,800 |
3,28,500 |
4. Dividend Paid - Promoters |
1,12,94,826 |
- |
5. Buyback of shares -Promoters |
46,13,85,750 |
- |
Note: 26.11: Financial risk management objectives and policies
The Company''s activities expose it to the following risks:
a) Credit risk
b) Liquidity risk
c) Market risk
a) Credit Risk
Credit risk is the risk that counter party will not meet its obligations under a financial instruments 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, investments, and other financial instruments.
i) Trade receivables
Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable disclosed in note 7.
ii) Financial instrument and cash deposit
Credit risk is limited as the Company generally invest in deposits with banks. Investments primarily include investments in liquid mutual fund units. Counterparty credit limits are reviewed by the Company periodically and the limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals.
c) 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 risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings.trade receivable and trade payable.
Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company does not have significant debt obligations with floating interest rates, hence, is not exposed to any significant interest rate risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.
Note: 26.12: Segment information
For management purposes, the Company has one business unit based on its products and has one reportable segment. The management monitors the operating results of its single business unit for the purpose of making decisions about resource allocation and performance assessment.
Note: 26.13: Financial assets measured at fair value:
Financial Assets |
As at 31st March 2018 |
As at 31st March 2017 |
As at 1st April 2016 |
Investments |
44,20,43,838 |
92,64,64,630 |
79,75,66,259 |
The carrying value of trade receivables, trade payables, cash and cash equivalents , borrowings and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets.
Note: 26.14: Capital management
The Company''s objective is to maintain a strong capital base to ensure sustained growth in business. The Capital Management focuses to maintain an optimal structure that balances growth and maximizes shareholder value.
The Company is predominantly equity financed. Further, the Company has sufficient cash, cash equivalents, current investments and financial assets which are liquid to meet the debts.
Note: 26.15: Amount payable to Micro Small Medium Enterprises
Trade payables as at 31st March 2018 include Rs. 1,45,32,928/- (Previous year Rs. 1,30,30,447/-) , amount due to Micro Small Medium Enterprises. However, those enterprises are ascertained in cases where they are registered in that category.
Note: 26.16: Corporate Social Responsibility
As per Companies Act, 2013, all companies having networth of Rs. 500 crores or more, turnover of Rs. 1000 crores or more or net profit of Rs 5 Crores or more during any financial year are required to spend at least 2% of average net profit of the Company''s three immediately preceding financial years. Accordingly, the Company was required to spend Rs. 51.41 lakhs towards CSR activities in financial year 2017-18. Expenditure related to Corporate Social Responsibility incurred as per Section 135 of Companies Act, 2013 read with Schedule VII thereof: Rs. 110.52 lakhs.
Note: 26.17: Exceptional Item
The extraordinery Item of Rs. 14,02,58,693/- refers to the expenses incurred in connection with a fire accident in one our units situated at 18/2, Off. Kanakapura Road, Konanakunte cross, Bangalore - 560062 on 12th November 2017. The total loss on account of fire includes Loss of Inventories such as Raw materials, Work in progress, Finished goods etc, Loss of fixed assets including Plant and machinery, furniture and fixtures, computers, office equipments etc and settlement to employees.
Note: 27.1: First time adoption
These financial statements, for the year ended 31st March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with generally accepted accounting principles in India (Previous GAAP).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31st March 2018, together with the comparative period data as at and for the year ended 31st March 2017, as described in the summary of significant accounting policies.
In preparing these financial statements, the Company''s opening statement of financial position was prepared as at 1st April 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP financial statements as at 1st April 2016 and the financial statements as at and for the year ended 31st March 2017.
Estimates:
Ind AS 101 requires an entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS to be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Note: 27.2: Exemptions applied on first time adoption of Ind AS 101
Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:
1. Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Previous GAAP carrying value.
Note: 27.3: First Time Ind AS adoption reconciliation
Particulars |
As at 1st April 2016 |
Effect of transition to Ind AS |
As at 1st April 2016 |
|
Previous GAAP |
As per Ind AS |
|||
A |
EQUITY AND LIABILITIES |
|||
1 |
Shareholders'' Funds |
|||
(a) Share Capital |
16,80,00,000 |
16,80,00,000 |
||
(b) Reserves and Surplus |
1,88,44,73,928 |
5,99,51,754 |
1,94,44,25,682 |
|
2,05,24,73,928 |
5,99,51,754 |
2,11,24,25,682 |
||
2 |
Non-Current Liabilities |
|||
(a) Long-term borrowings |
2,21,38,889 |
-8,47,748 |
2,12,91,141 |
|
(b) Deferred tax liabilities (net) |
4,01,06,076 |
3,17,28,810 |
7,18,34,886 |
|
(c) Other long-term liabilities |
||||
(c) Long-term provisions |
1,07,98,820 |
1,07,98,820 |
||
7,30,43,785 |
3,08,81,062 |
10,39,24,847 |
||
3 |
Current Liabilities |
|||
(a) Short-term borrowings |
||||
(b) Trade payables |
11,38,06,719 |
11,38,06,719 |
||
(c) Other current liabilities |
5,78,30,244 |
-7,60,722 |
5,70,69,522 |
|
(d) Short-term provisions |
4,29,12,427 |
4,29,12,427 |
||
21,45,49,389 |
-7,60,722 |
21,37,88,667 |
||
Total |
2,34,00,67,102 |
9,00,72,094 |
2,43,01,39,196 |
|
B |
ASSETS |
|||
1 |
Non-Current Assets |
|||
(a) Fixed assets |
||||
(i) Tangible assets |
34,28,51,492 |
34,28,51,492 |
||
(ii) Intangible assets |
9,48,36,857 |
9,48,36,857 |
||
(iii) Capital work-in-progress |
3,91,44,164 |
3,91,44,164 |
||
47,68,32,513 |
47,68,32,513 |
|||
(b) Non-current investments |
70,74,94,164 |
9,00,72,094 |
79,75,66,258 |
|
(c) Long-term loans and advances |
1,56,41,291 |
1,56,41,291 |
||
(d) Other non-current assets |
28,28,625 |
28,28,625 |
||
72,59,64,080 |
9,00,72,094 |
81,60,36,174 |
Particulars |
As at 1st April 2016 |
Effect of transition to Ind AS |
As at 1st April 2016 |
|
Previous GAAP |
As per Ind AS |
|||
2 |
Current Assets |
|||
(a) Inventories |
63,92,08,975 |
63,92,08,975 |
||
(b) Trade receivables |
42,31,46,804 |
42,31,46,804 |
||
(c) Cash and cash equivalents |
3,57,67,071 |
3,57,67,071 |
||
(d) Short-term loans and advances |
3,44,11,005 |
3,44,11,005 |
||
(e) Other current assets |
47,36,654 |
47,36,654 |
||
1,13,72,70,508 |
1,13,72,70,508 |
|||
Total |
2,34,00,67,102 |
9,00,72,094 |
2,43,01,39,196 |
|
See Significant Accounting Policies and Notes on Financial Statements 1 to 24 |
Note: 27.4: Reconciliation of assets and liabilities as previously reported under GAAP to IndAS
Particulars |
As at 31st March 2017 |
Effect of transition to Ind AS |
As at 31st March 2017 |
|
Previous GAAP |
As per Ind AS |
|||
A |
EQUITY AND LIABILITIES |
|||
1 |
Shareholders'' Funds |
|||
(a) Share Capital |
16,80,00,000 |
- |
16,80,00,000 |
|
(b) Reserves and Surplus |
1,98,70,30,892 |
6,69,57,991 |
2,05,39,88,883 |
|
2,15,50,30,892 |
6,69,57,991 |
2,22,19,88,883 |
||
2 |
Non-Current Liabilities |
|||
(a) Long-term borrowings |
||||
(b) Deferred tax liabilities (net) |
4,34,24,385 |
3,25,63,455 |
7,59,87,840 |
|
(c) Other long-term liabilities |
||||
(c) Long-term provisions |
1,00,24,020 |
- |
1,00,24,020 |
|
5,34,48,405 |
3,25,63,455 |
8,60,11,860 |
||
3 |
Current Liabilities |
|||
(a) Short-term borrowings |
12,49,73,556 |
- |
12,49,73,556 |
|
(b) Trade payables |
9,71,75,566 |
- |
9,71,75,566 |
|
(c) Other current liabilities |
6,50,39,546 |
-8,47,748 |
6,41,91,798 |
|
(d) Short-term provisions |
3,61,88,876 |
- |
3,61,88,876 |
|
32,33,77,543 |
-8,47,748 |
32,25,29,795 |
||
Total |
2,53,18,56,840 |
9,86,73,698 |
2,63,05,30,538 |
|
B |
ASSETS |
|||
1 |
Non-Current Assets |
|||
(a) Fixed assets |
||||
(i) Tangible assets |
37,63,84,470 |
- |
37,63,84,470 |
|
(ii) Intangible assets |
8,10,54,950 |
- |
8,10,54,950 |
|
(iii) Capital work-in-progress |
3,40,46,144 |
- |
3,40,46,144 |
|
49,14,85,564 |
49,14,85,564 |
(b) Non-current investments |
82,77,90,932 |
9,86,73,699 |
92,64,64,630 |
|
(c) Long-term loans and advances |
2,00,77,888 |
- |
2,00,77,888 |
|
(d) Other non-current assets |
46,22,634 |
- |
46,22,634 |
|
85,24,91,454 |
9,86,73,699 |
95,11,65,152 |
||
2 |
Current Assets |
|||
(a) Inventories |
73,90,11,028 |
- |
73,90,11,028 |
|
(b) Trade receivables |
39,27,60,278 |
- |
39,27,60,278 |
|
(c) Cash and cash equivalents |
95,80,737 |
- |
95,80,737 |
|
(d) Short-term loans and advances |
4,55,01,433 |
- |
4,55,01,433 |
|
(e) Other current assets |
10,26,347 |
- |
10,26,347 |
|
1,18,78,79,823 |
- |
1,18,78,79,823 |
||
Total |
2,53,18,56,840 |
9,86,73,699 |
2,63,05,30,539 |
Note: 27.5: Reconciliation of Profit and Loss for the year ended on 31st March 2017
Particulars |
For the period ended 31st March 2017 |
Effect of transition to Ind AS |
For the period ended 31st March 2017 |
|
Previous GAAP |
Ind AS |
|||
A |
INCOME |
|||
1 |
Revenue from operations (gross) |
1,97,40,60,816 |
1,97,40,60,816 |
|
Less: Excise duty |
||||
Revenue from operations (net) |
1,97,40,60,816 |
1,97,40,60,816 |
||
2 |
Other income |
6,07,25,654 |
83,82,874 |
6,91,08,528 |
3 |
Total revenue (1 2) |
2,03,47,86,470 |
83,82,874 |
2,04,31,69,344 |
4 |
EXPENSES |
|||
(a) Cost of materials consumed |
56,32,47,666 |
56,32,47,666 |
||
(b) Purchases of stock-in-trade |
52,23,91,796 |
52,23,91,796 |
||
(c) Changes in inventories of finished goods, |
(10,48,67,276) |
(10,48,67,276) |
||
work-in-progress and stock-in-trade |
||||
(d) Employee benefits expense |
28,53,76,310 |
16,01,122 |
28,69,77,432 |
|
(e) Finance costs |
84,58,704 |
7,60,722 |
92,19,426 |
|
(f) Depreciation and amortisation expense |
3,39,55,919 |
3,39,55,919 |
||
(g) Other expenses |
55,40,93,956 |
55,40,93,956 |
||
Total expenses |
1,86,26,57,073 |
23,61,844 |
1,86,50,18,917 |
|
Profit Before Tax |
17,21,29,397 |
60,21,030 |
17,81,50,427 |
|
Tax Expenses |
||||
Current Tax |
4,58,15,303 |
- |
4,58,15,303 |
|
Deferred Tax |
35,37,040 |
2,95,690 |
38,32,730 |
|
Profit for the year |
12,27,77,053 |
57,25,340 |
12,85,02,393 |
OTHER COMPREHENSIVE INCOME |
||||
i |
Items that will not be reclassified to Statement of Profit or Loss |
16,01,122 |
||
ii |
Income Tax relating to Items that will not be reclassified to Statement of Profit or Loss |
(3,20,224) |
||
iii |
Items that will be reclassified to Statement of Profit or Loss |
|||
iv |
Income Tax relating to Items that will be reclassified to Statement of Profit or Loss |
|||
Total |
12,80,898 |
|||
Total Comprehensive Income |
12,27,77,053 |
70,06,238 |
12,97,83,291 |
Note: 27.6: Footnotes to the reconciliation of equity as at 1 April 2016 and 31 March 2017 and profit and loss for the year ended 31 March 2017
1. Long Term Borrowings:
Under Previous GAAP, Long term borrowings were amortised as per equal quarterly instalments and Interest cost were expensed out in Profit & Loss account. Under Ind AS, Long term borrowings are revalued as per IRR method and amortised accordingly.
2. Financial Instruments:
Under Previous GAAP, Investments are valued at carrying cost, whereas under IndAs, Investments are valued at fair value , the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the investments in mutual funds are derived from quoted market prices in active markets.
3. Deferred tax
Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.
The application of Ind AS approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.
In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.
4. Defined benefit liabilities
Under Previous GAAP, actuarial gains and losses were recognized in the statement of profit and loss.
Under Ind AS, the actuarial gains and losses form part of re-measurement of net defined benefit liability/asset which is recognized in other comprehensive income in the respective periods. Further, interest costs on actuarial valuation of gratuity has been reclassified to finance costs under IND AS.
5. Statement of cash flows
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows. Note: 28: Previous year figures:
Previous year figures have been regrouped / re-casted wherever considered necessary to make them comparable with those of the current year
As per our report of even date attached |
For and on behalf of the Board of Directors |
|
For DMKH & CO. |
Mr. L Vinay Reddy |
L Jaipal Reddy |
Chartered Accountants |
Managing Director |
Whole Time Director |
FRN 116886W |
(DIN:00202619) |
(DIN:01539678) |
Durgesh Kumar Kabra |
Ms. Divya Shrimali |
Mr. R. Govindarajan |
Partner |
Company Secretary |
Chief Financial Officer |
Membership No.: 044075 |
(M.No. ACS45803) |
|
Mumbai, May 28, 2018 |
Mar 31, 2016
Note: 1. Information on related party as required by Accounting Standard (AS-18) on Related Party Disclosures for the year ended 31st Mar, 2016
In accordance with the requirement of Accounting Standard (AS 18) Related Party Disclosures, the names of relate parties where control exits and/or with whome transactions have taken place during the year description of relationships, as identified and certified by the management are
List of Related Parties
A) Key Management Personnel:
L Vinay Reddy, Chairman and Managing Director R Govindarajan, Chief Financial Officer DarshaSanghvi, Company Secretary
B) Other Related Parties
Entities where Key Management Personnel exercises significant influence/ Group Companies (with whom transactions were entered):
Anka Emterprises Private Limited Magnus marketing Tecknit Industries
Note: 2. Current Assets, Loans and Advances:
In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business.
Note: 3. Amount payable to Micro SmallMedium Enterprises
Trade payables as at 31st March, 2016 include Rs. 2,32,24,491/- (Previous year Rs. 5,13,87,759/-), amount due to Micro Small Medium Enterprises. However, those enterprises are ascertained in cases where they are registered in that category.
Note: 4. Previous year figures:
Previous year figures have been regrouped / recasted wherever considered necessary to make them comparable, with those of the current year
Mar 31, 2015
Note: 1.: Details of terms of repayment and security provided in
respect of above term loan:
i) Repayable in 5 years including Moratorium of 6 months starting from
1st April 2013.
ii) Secured against exclusive charge on all fixed assets located at
Singsandra, Bangalore including Plant & Machinery and Land & Building
iii) Company has pledged Mutual Funds of Rs. 22 crores in favour of
bank. MF of Rs. 12 crores to be released post creation of above
security. Remaining MF of Rs. 10 crores to be retained and will be
released after one year with prior approval of Bank.
Note: 2. : The above long term borrowing from bank is guaranteed by
following two directors: Mr. LVinay Reddy, Managing Director Mr. L.
Jaipal Reddy, Director
Note: 3.: The above cash credit from bank is secured by following:
Primary Security : Hypothecation of raw material, stock in process,
stores and spares, packing material, finished goods, books debts of the
Company.
Collateral Security: Exclusive charge on all fixed assets located at
Singsandra, Bangalore including Plant & Machinery and Land & Building
Note: 4.: The above long term borrowing from bank is guaranteed by
following two directors:
Mr. L Vinay Reddy, Managing Director
Mr. L. Jaipal Reddy, Director
Note 5. Deferred Tax Assets / Liabilities
i) The Deferred Tax Liability for current year of Rs. 48,94,325/-
(P.Yr. Rs. 76,59,096/-) is recognised in Profit and Loss A/c.
ii) Tax effect of significant temporary differences that resulted in
defferred tax (assets) / liabilities are :
Note: 6. Corporate Social Responsibility (CSR)
As per the Companies Act, 2013, all companies having net worth of
Rs.500Crores or more, turnover of Rs. 1,000 crores or more or net
profit of Rs. 5 Crores or more during any financial year are required
to spend at least 2% of average net profit of the CompanyÂs three
immediately preceding financial year. Accordingly, the Company was
required to spend Rs. 54.70 Lakhs towards CSR activities in financially
year 2014-15. Expenditure related to Corporate Social Responsibility
incurred as per Section 135 of the Companies Act, 2013 read with
Schedule VII thereof :Rs.2.81 Lakhs.
Note: 7. Information on related party as required by Accounting
Standard (AS-18)on Related Party Disclosures for The year ended 31st
March, 2015
In accordance with the requirement of Accounting Standard (AS 18)
Related Party Disclosures, the names of the related parties where
control exits and/or with whom transactions have taken place during the
year and description of relationships, as identified and certified by
the management are :-
List of Related Parties :-
A) Key Management Personnel:
Mr. G Ashok Reddy
Mr. L Vinay Reddy
Mr. L Jaipal Reddy
B) Other Related Parties
Entities where Key Management Personnel exercises significant
influence/Group Companies:
Federal Brands Limited [Formerly Microtex India Limited]
Vinay Hosiery Private Limited
Hype Integracomm Private Limited
Blue Chip Fashions Private Limited /Strategy Games Private Limited
Holstein Eco foods Private Limited
Reddy & Pathare Elastics Private Limited
Bellini Fashions Private Limited
Lariene Fashions Private Limited
Anka Enterprises Private Limited
Lovable Lifestyles Private Limited
Aarthik No-Middleman Online Welfare Foundation
Magnus marketing
Techknit Industries
Aadhunik Vitarak
Note: 8. Current Assets, Loans and Advances:
In the opinion of the Board, the current assets, loans and advances are
approximately of the value stated if realised in the ordinary course of
the business.
Note: 9. Amount payable to Micro Small Medium Enterprises:
Trade payables as at 31st March, 2015 include Rs. 5,13,87,759/-
(Previous year Rs. 1,24,43,320/-), amount due to Micro Small Medium
Enterprises. However, those enterprises are ascertained in cases where
they are registered in that category.
Note: 10. Previous year figures:
Previous year figures have been regrouped / recasted wherever
considered necessary to make them comparable, with those of the current
year.
Mar 31, 2014
Note 1.1 :
(i) Reconciliation of the number of shares and amount outstanding at
the beginning and at the end of the reporting period:
Note: 1.2 : Details of terms of repayment and security provided in
respect of above term loan:
i) Repayable in 5 years including Moratorium of 6 months starting from
1st April 2013.
ii) Secured against exclusive charge on all fixed assets located at
Singsandra, Bangalore including Plant & Machinery and Land & Building
iii) Company has pledged Mutual Funds of Rs. 22 crores in favour of
bank. MF of Rs. 12 crores to be released post creation of above
security. Remaining MF of Rs. 10 crores to be retained and will be
released after one year with prior approval of Bank.
Note: 1.3 : The above long term borrowing from bank is guaranteed by
following two directors: Mr. L Vinay Reddy, Managing Director Mr. L.
Jaipal Reddy, Director
Note: 2.1 : The above cash credit from bank is secured by following:
Primary Security : Hypothecation of raw material, stock in process,
stores and spares, packing material, finished goods, books debts of the
Company.
Collateral Security : Exclusive charge on all fixed assets located at
Singsandra, Bangalore including Plant & Machinery and Land & Building
Note: 2.2 : The above long term borrowing from bank is guaranteed by
following two directors:
Mr. L Vinay Reddy, Managing Director Mr. L. Jaipal Reddy, Director
Note (i): Current maturities of long-term debt (Refer Notes 4.1, 4.2
and 4.3 - Long-term borrowings for details of security and guarantee):
# Interest Expenses has been shown as net off with Interest Received
Rs. 22,11,484/- (Prev. Year 34,28,922/-). Interest expenses is also
net off with interest subsidy received Rs. 50,58,581/- (Prev. Year NIL)
Note 2.3. Contingent Liabilities
Demand Notice from Customs Authorities 4,719,798 4,719,798
*Out of this Rs. 27,70,000 deposited underprotest
Income tax Demand A.Y. 2010-11 954,730 954,730
Income tax Demand A.Y. 2011-12 3,944,380 3,944,380
[Appeal Pending before Hon. CIT(Appeal)]
Note 2.4. Deferred Tax Assets / Liabilities
i) The Deferred Tax Liability for current year of Rs.76,59,096/- (P.Yr.
88,09,954) is recognised in Profit and Loss A/c.
ii) Tax effect of significant temporary differences that resulted in
defferred tax (assets) / liabilities are :
2.5. Information on related party as required by Accounting Standard
(AS-18) on Related Party Disclosures for the year ended 31st March,
2014
In accordance with the requirement of Accounting Standard (AS 18)
Related Party Disclosures, the names of the related parties where
control exits and/or with whome transactions have taken place during
the year and description of relationships, as identified and certified
by the management are :-
List of Related Parties :- A) Key Management Personnel :
Mr. G Ashok Reddy Mr. L Vinay Reddy Mr. L Jaipal Reddy
B) Other Related Parties
Entities where Key Management Personnel exercises significant
influence/ Group Companies :
Federal Brands Limited [Formerly Microtex India Limited]
Vinay Hosiery Private Limited
Hype Integracomm Private Limited
Blue Chip Fashions Private Limited
Holstein Ecofoods Private Limited
Reddy & Pathare Elastics Private Limited
Bellini Fashions Private Limited
Lariene Fashions Private Limited
Enka Enterprises Private Limited
Magnus marketing
Techknit Industries
Aadhunik Vitarak
Note: 2.6 Current Assets, Loans and Advances:
In the opinion of the Board, the current assets, loans and advances are
approximately of the value stated if realised in the ordinary course of
the business.
Note: 2.7 Amount payable to Micro SmallMedium Enterprises
Trade payables as at 31st March, 2014 include Rs. 1,24,43,320/-
(Previous year Rs. 1,07,78,540/-), amount due to Micro Small Medium
Enterprises. However, those enterprises are ascertained in cases where
they are registered in that category.
Note: 2.8 Previous year figures:
Previous year figures have been regrouped / recasted wherever
considered necessary to make them comparable with those of the current
year.
Mar 31, 2013
Corporate Information
Lovable Lingerie Limited (the Company) is a Limited Company domiciled
in India and incorporated under the Provisions of the Companies Act,
1956. The Company is engaged in the business of manufacturing
hosiery/garment products. The shares of the Company are listed in BSE
and NSE.
1.1. Information on related party as required by Accounting Standard
(AS-18) on Related Party Disclosures for the year ended 31st March,
2013
List of Related Parties :- A) Key Management Personnel :
Mr. G Ashok Reddy Mr. L Vinay Reddy Mr. L Jaipal Reddy
B) Other Related Parties
Entities where Key Management Personnel exercises significant
influence/ Group Companies :
Federal Brands Limited [Formerly Microtex India Limited] Bellini
Fashions Private Limited
Vinay Hosiery Private Limited Lariene Fashions Private Limited
Hype Integracomm Private Limited Tecknit Industries
Blue Chip Fashions Private Limited Aadhunik Vitarak Holstein Ecofoods
Private Limited Reddy & Pathare Elastics Private Limited
1.2 Current Assets, Loans and Advances:
In the opinion of the Board, the current assets, loans and advances are
approximately of the value stated if realised in the ordinary course of
the business.
1.3 Trade payables as at 31st March, 2013 include Rs. 1,07,78,540/-
(Previous Year Rs.18,05,261/-), amount due to Micro Small Medium
Enterprises.
However, these enterprises are ascertained in cases where they are
registered in that category.
1.4 Previous year figures:
Previous year figures have been regrouped / recasted wherever
considered necessary to make them comparable with those of the current
year.
Mar 31, 2012
Note 1.1: Information on related party as required by Accounting
Standard (AS-18) on Related Party Disclosures for the year ended 31st
Mar, 2012
In accordance with the requirement of Accounting Standard (AS 18)
Related Party Disclosures, the names of the related parties where
control exits and/or with whom transactions have taken place during
the year and description of relationships, as identified and certified
by the management are
Note 1.2: Current Assets, Loans and Advances:
In the opinion of the Board, the current assets, loans and advances are
approximately of the value stated if realised in the ordinary course
of the business.
Note 1.3: The Revised Schedule VI has become effective form 1st
April,2011 for the preparation of financial statements. This has
significantly impacted the disclosure and presentation made in the
financial statements. Previous year''s figures have been regrouped /
reclassified wherever necessary to correspondence with the current
year''s classification/disclosure.
Mar 31, 2011
1 The Initial Public Offer (IPO) proceeds have been utilized as per
objects of the issue as stated in the prospectus as under:
2 Current Assets, Loans and Advances:
In the opinion of the Board, the current assets, loans and advances are
approximately of the value stated if realized in the ordinary course of
the business. Loans and Advances-Others represent advertisement
materials stock on hand.
3 Leases:
Operating Lease:
Rental expenses for operating leases for the year ended March 31, 2011
and March 31, 2010 was Rs9,765,560/-and Rs8,661,480/- respectively.
The company has leased facilities under cancelable operating leases.
The future payments in respect of these leases as on March 31,2011 are:
Minimum lease payments:
4 Dues to Micro, Small and Medium Enterprises
The Company is in the process of compiling relevant information about
their overage under Micro, Small and Medium Enterprises Development
Act, 2006 from its suppliers. Since the relevant information is not
readily available, no disclosures have been made in the accounts.
However, in the opinion of management, the impact of interest, if any,
that may be payable in accordance with the provision of this Act is not
expected to be material.
5. Information on related party as required by Accounting Standard
(AS-18) on Related Party Disclosures for theyearended 31st Mar, 2011
In accordance with the requirement of Accounting Standard (AS 18)
Related Party Disclosures, the names of the related partieswhere
control exits and/or with whome transactions havetaken
placeduringtheyearand description of relationships, as identified and
certified by the management are :-
List of Related Parties :-
A) Key Management Personnel:
Mr.G AshokReddy
Mr.L VinayReddy
Mr.L JaipalReddy
B) Other Related Parties
Entities where Key Management Personnel exercises significant
influence/ Group Companies:
- Federal Brands Limited [Formerly Microtex India Limited]
- Vinay Hosiery Private Limited
- Hype Integracomm Private Limited
- Strategy Games Pvt. Ltd.
- Holste in Ecofoods Private Limited
. Reddy & Pathare Elastics Private Limited
. Belleni Fashions Private Limited
. Lariene Fashions Private Limited
. Tecknit Industries
. Aadhunik Vitarak
6) Previous year figures:
Previous year figures have been regrouped / recasted wherever
considered necessary to make them comparable., with those of the
current year