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Notes to Accounts of Mohit Industries Ltd.

Mar 31, 2017

1. The Company has only one class of shares referred to as Equity Shares having face value of Rs.10/- each. Each equity Shareholder is eligible for one vote per share held.

2. Reconciliation of No. of Equity Shares Outstanding at the Beginning & End of the reporting period:

3. Shares in the company held by each shareholder holding more than 5% Equity Shares

4. Car Loans from Bank & Financial Institutions are secured by hypothecation of Motor Cars for which loan has been taken.

5. Term Loans from Banks are secured by hypothecation of all the fixed assets of the company.

6. Term Loan from Banks are also secured by entire Land & Building of the Company located at Kudsad-Kim, Olpad Taluka, Surat.

7. The Term Loans are also secured against Flat at Soffitel Tower, Surat and Office at International Trade Center, Surat of the company. Term Loan is also secured against peronal properties of directors and sister concern M/s Mohit Yarns Ltd. All the term loans are guaranteed by directors of the company.

8. Terms of Repayment of Term Loans:-

(a) Term Loan of Rs.470 Lakhs is Repayable in monthly installments of Rs.8,78,000/- each and will be repaid on September, 2021. Term Loan of Rs.209 Lakhs is repayable in monthly installments of Rs.4,20,000/- each and shall be repaid by April, 2021. Term loan of SVC Bank of Rs.1842 Lakhs (O/s Amount Rs.803 Lakhs) shall be repaid in monthly installments of Rs.21,93,000/- and shall be repaid by December, 2023. The rate of interest of term loans is 12.70%.

(b) Car Loans from Kotak Mahindra Prime Limited is repayable in 5 monthly installments of Rs.18,939/- ; Rs.37,331/-and Rs.19,992/- each. Another Car loan from Kotak Mahindra Prime Limited is repayble in 59 monthly installments of Rs.25,934/- each.

(c) Car Loan taken from Volkswagen Finance Limited is repayable in 41 installments of Rs.52,910/- each.

9. Cash Credit Limit & Export Packing Credit Limit is secured against First paripassu charge on the stock, books debts and entire current assets of the company. It is also secured by charge over assets mentioned in Note No. 5.3 above.

10. CONTINGENT LIABILITY & COMMITMENTS:-

(i) Contingent Liability In Respect of

(ii) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.1896.26 Lakhs (P.Y. Rs.2456.08 Lakhs) against which advance paid is Rs.187.10 Lakhs (P.Y. Rs.352.04 Lakhs).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (P.Y Rs. Nil)

(c) Other Commitments Rs. Nil (P.Y. Rs. Nil)

11. No provision for diminution in value of non-current investments has been made as in the opinion of management the diminution in of the temporary nature.

12. Disclosures of the Micro, Small and Medium Enterprises:-

The management of the Company has not received any intimation from ''suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule III of the Companies Act, 2013 could not be provided.

13. Segment Reporting

In line with Accounting Standard 17 on ''Segment Reporting'', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. "Textiles"

14. Specified Bank Notes Disclosure (SBN''s)

During the year, the company has specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 30, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBNs and Other Notes as per the notification is given below :


Mar 31, 2016

1 The Company has only one class of shares referred to as Equity Shares having face value of Rs. 10/- each. Each equity Shareholder is eligible for one vote per share held. Pursuant to the Scheme of Demerger of AAC Block Division as approved by Hon''ble Gujarat High Court, Authorized Capital of Rs. 5,00,00,000/- is transfer to the resulting company Bigbloc Construction Limited.

2 Reconciliation of No. of Equity Shares Outstanding at the Beginning & End of the reporting period:

3. Car Loans from Bank & Financial Institutions are secured by hypothecation of Motor Cars for which loan has been taken. Car Loans have been taken in re-financing also.

4. Term Loans from Banks are secured by hypothecation of all the fixed assets of the company.

5. Term Loan from State Bank of Travancore is also secured by entire Land & Building of the company located at Kudsad-Kim, Olpad Taluka, Surat.

6. The Term Loans are also secured against Flat at Soffitel Tower, Surat and Office at International Trade Center, Surat of the company. Term Loan is also secured against personal properties of directors and sister concern M/s Mohit Yarns Ltd. All the term loans are guaranteed by directors of the company.

7. Terms of Repayment of Term Loans:-

(a) Term Loan of Rs. 632.00 Lakhs is Repayable in monthly installments of Rs. 8,78,000 each and will be repaid on October, 2021. The Corporate loan of Rs. 505.43 Lakhs is repayable in monthly installments of Rs. 20,83,000/and shall be repaid by August, 2016. Term loan of Rs. 302 lakhs is repayment in monthly installments of Rs. 4,20,000/- each and shall be repaid by October, 2021. Term Loan from SVC Bank of Rs. 1842 Lakhs shall be repaid in monthly installments of Rs. 21,93,000/- and shall be repaid by December, 2023. The rate of interest of term loans is 13.25% p.a.

(b) Car Loans from Kotak Mahindra Prime Limited is repayable in 17 monthly installments of Rs. 41901/-; Rs. 18939/; Rs. 86418/- and Rs. 19992/-each. Another Car loan from Kotak Mahindra Prime Limited is repayable in 21 monthly installments of Rs. 191440/- each.

(c) Car Loans from ICICI Bank are repayable 3 monthly installments of Rs. 25,280/-. Car Loan taken from Volkswagen Finance Limited is repayable in 53 installments of Rs. 52910/- each.

8. Cash Credit Limit & Export Packing Credit Limit is secured against First paripassu charge on the stock, books debts and entire current assets of the company. It is also secured by charge over assets mentioned in Note No.

9. above.

Deferred tax resulting from ''timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

(ii) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 2456.08 Lakhs (P.Y. NIL) against which advance paid is Rs. 352.04 Lakhs (P.Y. NIL).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (P.Y. Rs. Nil)

(c) Other Commitments Rs. Nil (P.Y. Rs. Nil)

* Includes Job Work done for outside parties of 706114.00 Mtrs. (P.Y. 819092.00 Mtrs.). ** Out of production, 513605.630 Kgs. Has been transferred to Looms Division.

10. RELATED PARTY RELATIONSHIP AND TRANSACTION A. Name of Related Parties & Nature of Relationships

a) Subsidiary

1 Maxim Metals Pvt. Ltd.

b) Associates

1 Mohit Overseas Limited 3 Mohit E-Waste Recovery Pvt. Ltd.

2 Mohit Yarns Limited

c) Enterprises Controlled by Key Managerial Personnel & their relatives

1 SoulClothingPvt.Ltd. 4 MohitTexportPvt.Ltd.

2 Mohit Exim Pvt. Ltd. 5 Mask Investments Limited

3 Bigbloc Construction Limited

d) Key Managerial Personnel

1 Sitaram Saboo 3 Naresh S. Saboo

2 Narayan S. Saboo 4 Manish N. Saboo

11. SCHEME OF ARRANGEMENT (DEMERGER) BETWEEN THE COMPANY AND BIGBLOC CONSTRUCTION LIMITED

The Company (Demerged Company) had entered into a Scheme of Arrangement (''the Scheme'') with Bigbloc Construction Limited (BCL) (''Resulting Company'') for demerger of the AAC Block Division of the company into BCL. In Consideration of vesting of AAC Block division of the company to BCL as per terms of the Scheme, each shareholder of Demerged Company in respect of each share held in the company, is entitled to one share each of the Resulting company of face value of Rs. 10/each credited as fully paid up.

The Scheme was approved by the Honorable High Court of Gujarat on February 22, 2016. The Company has filed the order and the Scheme and the Scheme Approved by the High Court with the Registrar of the Companies, Ahmadabad (ROC) on March 16, 2016. Thus, the scheme becomes effective on March 16, 2016 and the effect of the same is given from Appointed Dated which is 1st April, 2015. Thus, as the scheme has been approved by Hon''ble Gujarat High Court and effective from 16th March, 2016 all the assets and liabilities of AAC Block Division of the company with effect from 1st April, 2015 becomes Assets & Liabilities of BCL.

The following assets and liabilities have been divested into the Resulting Company from MIL with effect from 01st April, 2015 pursuant to the Scheme.

The Net Assets relating to the AAC Block Division amounting to Rs. 2,384.02 lakhs divested into the Resulting Company as at 01st April, 2015, pursuant to the scheme of arrangement has been adjusted as per the terms of the Scheme against the Reserves of the company as Under:-

Deferred Tax liability pertaining to the demerged undertaking (AAC Block Division) in the accounts of demerged company (MIL) as on 31.03.2015 being Rs. 3,05,91,432/- has also been transferred from the Demerged Company to the Resulting Company and as the same being opening balance (i.e. created out of profits of earlier years) has been adjusted directly from balance of Surplus.

12. Disclosures of the Micro, Small and Medium Enterprises:-

The management of the Company has not received any intimation from ''suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule III of the Companies Act, 2013 could not be provided.

13. Previous period Comparatives

Consequent to the Scheme of De-merger of AAC Block Division effective from 1st April, 2015 the figures for the year ended March 31, 2016, are not comparable with the corresponding figures disclosed under previous year ended March 31, 2015.

14. SEGMENT INFORMATION:-

Consequent to the demerger of the AAC Block Division as mentioned in note 39 above, the Company''s operations predominately relates to Textile Division only and accordingly this is the only primary reportable segment as per AS -17.

(iii) The company has not reported Geographical Segment (i.e. Secondary Segment) as all the operations and risks & return of the company are based in India and no activity is done outside India.


Mar 31, 2015

1 CORPORATE INFORMATION

Mohit Industries Limited ('the company) is a public limited company domiciled in India and incorporated under the provisions of the Company Law. Its shares are listed on BSE and NSE. The company is having its head quarters in Surat and plants at Kim and Umargaon. The company is primarily engaged in manufacture of Texturized Yarn from POY and weaving of the Yarn to Grey Cloth. The company is also engaged in manufacture of Autoclaved Aerated Concrete Blocks (AAC Blocks).

2. The Company has only one class of shares referred to as Equity Shares having face value of Rs. 10/- each. Each equity Shareholder is eligible for one vote per share held.

3 Long Term Borrowings

4. Car Loans from Bank & Financial Institutions are secured by hypothecation of Motor Cars for which loan has been taken. Car Loans have been taken in re-financing also.

5. Term Loans from Banks are secured by hypothecation of all the fixed assets of the company of both Textile and AAC Block Division.

6. Term Loan from State Bank of Travancore is also secured by entire Land & Building of the company located at Kudsad-Kim, Olpad Taluka, Surat. The Term Loans for AAC Block Division is also secured by Land & Building of Factory at Umargaon, Valsad.

7. The Term Loans are also secured against Flat at Soffitel Tower, Surat and Office at International Trade Center, Surat of the company. Term Loan is also secured against peronal properties of directors and sister concern M/s Mohit Yarns Ltd. All the term loans are guaranteed by directors of the company.

8. Terms of Repayment of Term Loans:-

(a) Term Loan of Rs. 632.00 Lakhs is Repayable in 72 number of monthly instalments of Rs. 8,78,000 each and will be repaid on October, 2021. Term Loan of Rs. 72.15 Lakhs is repayable in 25 number of monthly instalments of Rs. 2,86,000/- each and will be repaid by April, 2016. The corporate loan of Rs. 505.43 is repayable in 24 monthly instalments of Rs. 20,83,000/- each and will be repaid by March, 2016. Term Loan of Rs. 302 Lakhs is repayable in 72 number of monthly installments of Rs. 4.20 Lakhs each will be repaid by October, 2021. The rate of interest as at year end is 13.75%.

(b) The remaining Term Loans from State Bank of Travancore, Central Bank of India and The Shamrao Vithal Co.Op. Bank Ltd. for AAC Block Division at Umargaon of Rs. 1628.71 Lakhs are repayable in Equal Monthly Instalments of Rs. 28.38 Lakhs by July, 2019. The rate of interest at year end is 13.75%.

(c) Car Loans from Kotak Mahindra Prime Limited is repayble in 29 monthly instalments of Rs. 41901/-; Rs. 18939/-; Rs. 86418/- and Rs. 19992/- each.

(d) Car Loans from ICICI Bank are repayable in 13,16 and 16 monthly instalments of Rs. 12,770; Rs. 14315/- and Rs. 25,280/- respectively.

9. Buyer's Line of Credit is secured by undertaking given by State Bank of Travancore. The under-taking given is secured by securities mentioned in above 5.2 & 5.3. The balance of Buyer's Line of Credit is subject to confirmation / statement.

10. Cash Credit Limit & Export Packing Credit Limit is secured against First paripassu charge on entire current assets of Textile Division of the company and Stock and Book Debts of AAC Block Division of the company. It is also secured by charge over assets mentioned in Note No. 5.3 above.

11. CONTINGENT LIABILITY&COMMITMENTS:-

(i) Contingent Liability In Respect of

As at As at Particulars 31st March, 31st March, 2015 2014

(a) Sales Tax Demand Disputed in Appeal 486,462.00 486,462.00

(b) Gujarat VAT Demand of F.Y. 2006-07 pending at appeal stage* 46,080,888.00 46,080,888.00

Gujarat Entry Tax Demand of F.Y. 2006-07 pending at appeal stage* 43,318,045.00 43,318,045.00

* The management states that Tribunal has granted stay in respect of above demand raised and in opinion of the management the demand raised is not sustainable in law.

(c) Gujarat VAT Demand of F.Y. 2009-10 (Tax and Penalty)* 45,506,728.00 45,506,728.00

Gujarat Entry Tax Demand of F.Y. 2009-10 pending at 51,382,920.00 51,382,920.00 appeal stage*

* The management states that Tribunal has granted stay in respect of above demand raised and in opinion of the management the demand raised is not sustainable in law.

(d) Gujarat VAT Demand of F.Y. 2010-11 (Tax and Penalty)* 30,149,224.00 -

Gujarat Entry Tax Demand of F.Y. 2010-11 pending at 32,353,021.00 - appeal stage*

* The order dated 30-03-2015 has been received by the company and the company is in process of filing appeal against the same before First Appellate Authority.

(e) Income Tax Demand of A.Y. 2009-10 pending before Tribunal 3,073,713.00 3,073,713.00

(f) Excise Duty Demands/ Excise Rebate rejected pending at 18,363,086.00 24,396,264.00 various Appellate Stages

(g) Service Tax Demands pending before appellate authority 790,408.00 790,408.00

(ii) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (P.Y.NIL) against which advance paid is Rs. NIL (P.Y. NIL).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (P.Y. Rs. Nil)

(c) Other Commitments Rs. Nil (P.Y. Rs. Nil)

12 (i) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

(ii) No provision for dimunition in value of non-current investments has been made as in the opinion of management the dimunition is of temporary nature.

13. RELATED PARTY RELATIONSHIP AND TRANSACTION A. Name of Related Parties & Nature of Relationships

a) Associates

1 Mohit Overseas Limited 2 Mohit Yarns Limited

3 Mohit E-Waste Recovery Pvt. Ltd.

b) Enterprises Controlled by Key Managerial Personnel &their relatives

1 Soul Clothing Pvt. Ltd. 2 Mohit Exim Pvt. Ltd.

3 Mohit Texport Pvt.Ltd. 4 Mask lnvestments Limited

c) Key Managerial Personnel

1 Sitaram Saboo 2 Narayan S. Saboo

3 Naresh S. Saboo 4 Manish N. Saboo

14. Previous year figures have been regrouped wherever thought necessary to make them comparable with figures of current year.

15. SEGMENT INFORMATION:-

In accordance with Accounting Standard - 17 on "Segment Reporting", the company has identified two reportable segments viz. Textiles &AAC Block and reported taking into account nature of products & services, the differing risks and returns of these segments.

(ii) The reportable segments are further described below:

a) The Textiles Division includes production and marketing activities of Textile Products viz. Texturised Yarn, Twisted Yarn, Grey Cloth Fabrics & Finished Cloth Fabrics.

b) The AAC Block Division includes production and marketing activities of Auto-claved Aerated Concrete Blocks.

(iii) The company has not reported Geographical Segment (i.e. Secondary Segment) as all the operations and risks & return of the company are based in India and not activity is done outside India..


Mar 31, 2014

1.1 The Company has only one class of shares referred to as Equity Shares having face value of Rs. 10/- each. Each equity Shareholder is eligible for one vote per share held.

1.2 Reconciliation of No. of Equity Shares Outstanding at the Beginning & End of the reporting period:

2.1 Car Loans from Bank & Financial Institutions are secured by hypothecation of Motor Cars for which loan has been taken.

2.2 Term Loans from Banks are secured by hypothecation of all the fixed assets of the company of both Textile and AAC Block Division.

2.3 Term Loan from State Bank of Travancore is also secured by entire Land & Building of the company located at Kudsad-Kim, Olpad Taluka, Surat. The Term Loans for AAC Block Division is also secured by Land & Building of Factory at Umargaon, Valsad.

2.4 The Term Loans are also secured against Flat at Soffitel Tower, Surat and Office at International Trade Center, Surat of the company. Term Loan is also secured against personal properties of directors and sister concern M/s Mohit Yarns Ltd. All the term loans are guaranteed by directors of the company.

2.5 Terms of Repayment of Term Loans:-

(a) Term Loan of Rs. 140.69 Lakhs is Repayable in 12 number of instalments of Rs. 11,72,000 each and will be repaid on March, 2015. Term Loan of Rs. 72.15 Lakhs is repayable in 25 number of instalments of Rs. 2,86,000/- each and will be repaid by April, 2016. The corporate loan of Rs. 505.43 is repayable in 24 monthly instalments of Rs. 20,83,000/- each and will be repaid by March, 2016. The rate of interest at year end is 12.25%

(b) The remaining Term Loans from State Bank of Travancore, Central Bank of India and The Shamrao Vithal Co.Op. Bank Ltd. for AAC Block Division at Umargaon of Rs. 1628.71 Lakhs are repayable in Equal Monthly Instalments of Rs. 28.38 Lakhs by July, 2019. The rate of interest at year end is 12.25%.

(c) Car Loan from Kotak Mahindra Prime Limited is repayble in 9 instalments of Rs. 9810/-

(d) Car Loans from ICICI Bank are repayable in 8, 25 and 28 instalments of Rs. 38,700/-, Rs. 12,770/- and Rs. 25,280/- respectively.

2.6 Buyer''s Line of Credit is secured by undertaking given by State Bank of Travancore. The under-taking given is secured by securities mentioned in above 5.2 & 5.3. The balance of Buyer''s Line of Credit is subject to confirmation / statement.

3.1 Cash Credit Limit & Export Packing Credit Limit is secured against First paripassu charge on entire current assets of Textile Division of the company and Stock and Book Debts of AAC Block Division of the company. It is also secured by charge over assets mentioned in Note No. 5.3 above.

Deferred tax resulting from ''timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable cetainty that the assets will be realised in future.

4 CONTINGENT LIABILITY&COMMITMENTS:-

(i) Contingent Liability In Respect of

As at As at Particulars 31st Mar 2014 31st Mar 2013

(a) Sales Tax Demand Disputed in Appeal 486,462.00 486,462.00

(b) Gujarat VAT Demand of F.Y. 2006-07 46,080,888.00 46,080,888.00 pending at appeal stage*

Gujarat Entry Tax Demand pending atappeal 43,318,045.00 43,318,045.00 stage*

* The management states that Tribunal has granted stay in respect of above demand raised and in opinion of the management the demand raised is notsustainable in law.

(c) GujaratVATDemandofF.Y. 2009-10 51,382,920.00 - (Taxand Penalty)

* The order dated 29-03-2014 has been received by the company and the company is in process of filing appeal against the same before First Appellate Authority.

(d) Income Tax Demand of A.Y. 2009-10 3,073,713.00 3,073,713.00 pending before Tribunal

(e) Excise Duty Demands/ Excise Rebate 24,396,264.00 388,000.00 rejected pending at various Appellate Stages

(f) Service Tax Demands pending before 790,408.00 2,930,000.00 vaious Appellate Stages

(ii) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL(P.Y.NIL) against which advance paid is Rs. NIL (P.Y. NIL).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (P.Y. Rs. Nil)

(c) OtherCommitments Rs. Nil (P.Y. Rs. Nil)

* Includes Job Work done for outside parties of 2470830.00 Mtrs. (P.Y. 979511.00 Mtrs.). ** Out of production, 101284.530 Kgs. Has been transferred to Looms Division.

In current year the stock of AAC Block has been taken in Unit of Kilograms. The opening and closing stock of 6888 Pieces of Blocks are lying at Kim Factory of the company.

* There is shortage of 5232.77 Meters.

** There is shortage of 28,716 Kgs. In AAC Block.

** There are various Raw Materials like Aluminium Powder, Lime Powder, Cement, Gypsum Powder, Coal, Caustic Soda etc. are consumed to produce AAC Blocks. As quantity units of all raw materials consumed are different from each other, the same are not given above. However, value of Raw Material consumed and Closing Stock are given.

5 (i) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

(ii) No provision for dimunition in value of non-current investments has been made as in the opinion of managementthe dimunition is of temporary nature.

6 EFFECT OF CHANGE IN SIGNIFICANT ACCOUNTING POLICY

During the year, the company has changed its accounting policy regarding accounting of gain or loss arising on account of foreign exchange flucuation in respect of Long Term Monetary assets or liabilities. The loss arising on account of foreign exchange flucutuation in respect of Long Term Monetary Liabilities (Buyers'' Line of Credit) has been added to cost of Depreciable Assets for which such liabilties was outstanding. Upto previous, the company was charging / crediting the same to Statement of Profit & Loss Account.

Had the company followed same accounting policy as that of last year, then profits of the company would be lower by Rs. 83.13 Lakhs and value of Tangible Fixed Assets would be lower by Rs. 83.13 Lakhs.

7 Previous year figures have been regrouped wherever thought necessary to make them comparable with figures of current year.

8 SEGMENT INFORMATION:-

In accordance with Accounting Standard - 17 on "Segment Reporting", the company has identified two reportable segments viz. Textiles &AAC Block and reported taking into account nature of products & services, the differing risks and returns of these segments.

(ii) The reportable segments are further described below:

a) The Textiles Division includes production and marketing activities of Textile Products viz. Texturised Yarn, Twisted Yarn, Grey Cloth Fabrics & Finished Cloth Fabrics.

b) The AAC Block Division includes production and marketing activities of Auto-claved Aerated Concrete Blocks.

(iii) The company has not reported Geographical Segment (i.e. Secondary Segment) as all the operations and risks & return of the company are based in India and not activity is done outside India.


Mar 31, 2013

1 CORPORATE INFORMATION

Mohit Industries Limited (''the company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE and NSE. The company is having its head quarters in Surat and plants at Kim, Silvassa and Umargaon. The company is primarily engaged in manufacture of Texturized Yarn from POY and weaving of the Yarn to Grey Cloth.

The company is also engaged in manufacture of Autoclaved Aerated Concrete Blocks (AAC Blocks).

2 CONTINGENT LIABILITY & COMMITMENTS:- (i) Guarantee given to State Bank of Travancore for loans/credit facilities taken by associate company namely Mohit Overseas Ltd., Rs 1,00,00,000/- (P.Y. Rs 1,00,00,000/-). To secure this guarantee and loan so taken by Mohit Overseas Ltd., the bank has exteded the first charge on entire fixed assets of the Kim unit of the company.

(ii) Disputed Sales Tax Demand of F.Y. 2001-02 of Rs. 4,86,462/- (P.Y. 4,86,462/-); disputed Gujarat VAT demand of F.Y. 2006-07 of Rs. 4,60,80,888/- (P.Y. Rs. 4,60,80,888/-) and disputed Entry Tax under Gujarat Laws of Rs. 4,33,18,045/- (P.Y. Rs. 4,33,18,045) (including interest and penalty) has not been provided. The management states that Tribunal has granted stay in respect of above demand raised of F.Y. 2006-07.

(iii) Disputed Income Tax Demand of Rs. 30.74 Lakhs (P.Y. Rs. 31.47 Lakhs).

(iv) Disputed Excise Duty amount of Rs. 3.88 Lakhs (P.Y. Rs. NIL)

(v) Disputed Service Tax demand of Rs. 29.30 Lakhs (P.Y. Rs. NIL)

(vi) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (P.Y. Rs. 500 Lakhs against which advance paid is Rs. NIL (P.Y. Rs. 410.35 Lakhs).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (P.Y. Rs. Nil)

(c) Other Commitments Rs. Nil (P.Y. Rs. Nil)

3 (i) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

(ii) No provision for dimunition in value of non-current investments has been made as in the opinion of management the dimunition is of temporary nature.

4 Previous year figures have been regrouped wherever thought necessary to make them comparable with figures of current year.


Mar 31, 2012

1.1 The Company has only one class of shares referred to as Equity Shares having face value of Rs. 10/- each. Each equity Shareholder is eligible for one vote per share held.

1.2 Reconciliation of No. of Equity Shares Outstanding at the Beginning & End of the reporting period:

1. CORPORATE INFORMATION

Mohit Industries Limited ('the company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The company is having its head quarters in Surat and plants at Kim, Silvassa and Palghar. The company is primarily engaged in manufacture of Texturized Yarn from POY and weaving of the Yarn to Grey Cloth.The company is also engaged in manufacture of Autoclaved Aerated Concrete Blocks (AAC Blocks). The AAC Blocks unit of the company at Palghar has been sold out during the year under consideration.The company is in process of commissioning another plant of AAC Blocks at Umargam which is still in Work in Progress stage.

2.1 Car Loans from Bank & Financial Institutions are secured by hypothecation of Motor Cars for which loan has been taken.

2.2 Term Loans from State Bank of Travancore is secured by hypothecation of of all the fixed assetsof the company of Textile Division.

2.3 Term Loan from State Bank of Travancore is also secured by Factory Land & Building of the company located at Kudsad-Kim, Olpad Taluka, Surat & Silvassa, Dadra & Nagar Haveli. It is also secured against Flat at Soffitel Tower, Surat and Office at International Trade Center, Surat of the company. Term Loan is also secured against peronal properties of directors and sister concern M/s Mohit Yarns Ltd.

2.4 Terms of Repayment of Term Loans:-

(a) Term Loan of Rs. 419.19 Lakhs is Repayable in 35 number of installments of Rs. 11,72,000 each and will be repaid on February, 2015. The rate of interest as at year end is 14% p.a.

(b) Term Loan of Rs. 25.60 Lakhs Repayable in 9 number of installments of Rs. 2,86,000/- each and will be repaid in December, 2012. The rate of interest as at year end is 14% p.a.

(c) Car Loans from Kotak Mahindra Prime Limited are repayable in 12 & 33 installments of Rs. 25,200/- and Rs. 9,810/- respectively.

(d) Car Loans from ICICI Bank are repayble in 23 & 32 installments of Rs. 1,15,050/- and Rs. 38,700/- respectively.

2.5 Buyer's Line of Credit is secured by undertaking given by State Bank of Travancore. The under-taking given is secured by securities mentioned in above 5.2 & 5.3. The balance of Buyer's Line of Credit is subject to confirmation / statement.

3.1 Cash Credit Limit & Export Packing Credit Limit is secured against First paripassu charge on entire current assets of textile division of the company. It is also secured against collateral charge over assets mentioned in Note No. 5.3 above.

Deferred tax resulting from 'timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable cetainty that the assets will be realised in future.

4 CONTINGENT LIABILITY & COMMITMENTS:-

(i) Guarantee given to State Bank of Travancore for loans/credit facilities taken by associate company namely Mohit Overseas Ltd., Rs 1,00,00,000/- (RY. Rs 1,00,00,000/-). To secure this guarantee and loan so taken by Mohit Overseas Ltd., the bank has exteded the first charge on entire fixed assets of the Kim unit of the company.

(ii) Liability in respect of loss in Foreign Exchange Swap Contract with ICICI Bank Ltd., which matured on 18th September, 2009, of Rs. 134.28 Lacs (RY. 134.28 Lacs on Mark to Market basis), which liability has not been acknowledged and provided by the the company as in the opinion of the management of the company the Swap Contract was void in law ab initio.

(iii) Disputed Sales Tax Demand of F.Y. 2001-02 of Rs. 4,86,462/- (RY. 4,86,462/-); disputed Gujarat VAT demand of F.Y. 2006-07 of Rs. 4,60,80,888/- (RY. Rs. 4,60,80,888/-) and disputed Entry Tax under Gujarat Laws of Rs. 4,33,18,045/- (RY. Rs. 4,33,18,045) (including interest and penalty) has not been provided. The management states that Tribunal has granted stay in respect of above demand raised of F.Y. 2006-07.

(iv) Disputed Income Tax Demand of Rs. 31.47 Lakhs (RY. Rs. 9.79 Lakhs).

(v) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 500 Lakhs (RY. Rs. NIL) against which advance paid is Rs. 410.35 Lakhs (RY. Rs. NIL).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (RY. Rs. Nil)

(c) Other Commitments Rs. Nil (RY. Rs. Nil)

* Includes Job Work done for outside parties of 948610.50 Mtrs. (P.Y. 2164950.50 Mtrs.) for outsiders.

** Includes wastage yarn of 75111.000 Kgs. (P.Y. 63008.000 Kgs.)

** There are various Raw Materials like Aluminium Powder, Lime Powder, Cement, Gypsum Powder, Coal, Caustic Soda etc. are consumed to produce AAC Blocks. As quantity units of all raw materials consumed are different from each other, the same are not given above. However, value of Raw Material consumed and Closing Stock are given.

5 (i) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

(ii) No provision for dimunition in value of non-current investments has been made as in the opinion of management the dimunition is of temporary nature.

6 SEGMENTINFORMATION

In accordance with Accounting Standard - 17 on "Segment Reporting", the company has identified two reportable segments viz. Textiles & AAC Block and reported taking into account nature of products & services, the differing risks and returns of these segments.

(ii) The reportable segments are further described below:

a) The Textiles Division includes production and marketing activities of Textile Products viz. Texturised Yarn, Twisted Yarn, Grey Cloth Fabrics & Finished Cloth Fabrics.

b) The AAC Block Division includes production and marketing activities of Auto-claved Aerated Concrete Blocks

(iii) The company has not reported Geographical Segment (i.e. Secondary Segment) as all the operations and risks & return of the company are based in India and not activity is done outside India.

7 Previous year figures have been regrouped wherever thought necessary to make them comparable with figures of current year.


Mar 31, 2011

1. a) CONTINGENT LIABILITY not provided for in Books of Accounts: -

(i) Guarantee given to State Bank of Travancore for loans/credit facilities taken by associate company namely Mohit Overseas Ltd., Rs.l,00,00,000/-(P.Y. Rs.1,00,00,000/-). To secure this guarantee and loan so taken by Mohit Overseas Ltd., the bank has extended the first charge on entire fixed assets of the Kim unit of the company.

(ii) Liability in respect of loss in Foreign Exchange Swap Contract with ICICI Bank Ltd., which matured on 18th September, 2009, of Rs. 134.28 Lacs (P.Y. Rs. 134.28 Lacs on Mark to Market basis), which liability has not been acknowledged and provided by the the company as in the opinion of the management of the company the Swap Contract was void in law ab initio.

(iii) Disputed Sales Tax Demand of F.Y. 2001-02 of Rs. 4,86,462/- (P.Y. Rs. 4,86,462/-); disputed Gujarat VAT demand of F.Y. 2006-07 of Rs. 4,60,80,888/- (P.Y. Rs. Nil) and disputed Entry Tax under Gujarat Laws of Rs. 4,33,18,045/- (P.Y. Rs. Nil) (including interest and penalty) has not been provided.

(iv) Disputed Income Tax Demand of Rs. 9.79 Lacs (P.Y. Rs. 29.31 Lacs).

2) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

3) Loans & Advances include a sum of Rs. 3.11 Lacs (P.Y. Rs. 191.31 Lacs) due from companies in which directors of this company are directors and which is a company under the same management under section 370(1B) of the Companies Act, 1956.

4) SEGMENT INFORMATION :-

In accordance with Accounting Standard - 17 on "Segment Reporting", the company has identified two reportable segments viz. Textiles & AAC Block and reported taking into account nature of products & services, the differing risks and returns of these segments.

(ii) The reportable segments are further described below:

a) The Textiles Division includes production and marketing activities of Textile Products viz. Texturised Yarn, Twisted Yarn, Grey Cloth Fabrics & Finished Cloth Fabrics.

b) The AAC Block Division includes production and marketing activities of Auto-claved Aerated Concrete Blocks

(iii) The company has not reported Geographical Segment (i.e. Secondary Segment) as all the operations and risks & return of the company are based in India and no activity is done outside India.

5) Previous year figures have been regrouped wherever thought necessary to make them comparable with figures of current year.

6) EVENTS OCCURING AFTER BALANCE SHEET DATE :

The company after the date of balance sheet but before the approval of accounts has sold out its AAC Block Unit at Palghar. The company has sold the unit in June, 2011. Hence, the Unit of AAC Block of Palghar as on the date of approval of accounts has already been sold and there will be no operations with respect to the same after june, 2011.


Mar 31, 2010

1. a) CONTINGENT LIABILITY not provided for in Books of Accounts: -

(i) Guarantee given to State Bank of Travancore for loans/credit facilities taken by associate company namely Mohit Overseas Ltd., Rs. 1,00,00,000/- (RY. Rs. 1,47,00,000/-). To secure this guarantee and loan so taken by Mohit Overseas Ltd., the bank has extended the first charge on entirefixed assets of the Kim unit of the company.

(ii) The company had procured Machines under EPCG (Export Promotion Capital Goods Scheme) as per which the company has saved total Excise Duty value of Rs.1,87,16,312/- (P.Y. Rs 1,87,16,312/-) against its Export Obligation of USD 31,61,524 (P.Y. USD 31,61,524) to be fulfilled within eight year from purchase of Machinery.

(iii) Liability in respect of loss in Foreign Exchange Swap Contract with ICICI Bank Ltd., which matured on 18th September, 2009, of Rs. 134.28 Lakhs (P.Y. Rs. 116.20 Lakhs on Mark to Market basis), which liability has not been acknowledged and provided by the the company as in the opinion of the management of the company the Swap Contract was void in law ab initio.

(iv) Disputed Sales Tax Demand of F.Y. 2001-02 of Rs. 4,86,462/- (P.Y. NIL

(v) Disputed Income Tax Demand of A.Y. 2007-08 of Rs. 29.31 Lakhs (P.Y. NIL).

b) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. NIL (P.Y. Rs. NIL) against which advance paid is Rs. NIL (P.Y. Rs. NIL).

2) Unsecured Loans, Sundry Creditors, Sundry Debtors and Loans and Advances are subject to confirmation.

3) Advances include a sum of Rs. 191.31 lacs (P.Y. Rs. 272.16 lacs) due from a company in which directors of this company are directors and which is a company under the same management undersection 370(1B) of the Companies Act, 1956.

4) SEGMENT INFORMATION :-

In accordance with Accounting Standard - 17 on "Segment Reporting", the company has identified two reportable segments viz Textiles & AAC Block and reported taking into account nature of products & services, the differing risks and returns of these segments.

(ii) The reportable segments are further described below:

a) The Textiles Division includes production and marketing activities of Textile Products viz. Texturised Yarn, Twisted Yarn, Grey Cloth Fabrics & Finished Cloth Fabrics.

b) The AAC Block Division includes production and marketing activities of Auto-claved Aerated Concrete Blocks

(iii) The company has not reported Geographical Segment (i.e. Secondary Segment) as all the operations and risks & return of the company are based in India and not activity is done outside India.

5) Previous year figures have been regrouped wherever thought necessary to make them comparable with figures of current year.

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