Home  »  Company  »  Premco Global Li  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Premco Global Ltd.

Mar 31, 2018

NOTES:

1. The Company has applied the optional exemption to measure its property, plant and equipment at the date of transition at their fair values and used it as the deemed cost for such assets at the date of transition. The details are in Note 48 (A.1.1)

2. Subsidy on fixed assets gross of Rs. 9.62 Lakhs & Accumulated depreciation of Rs. 2.36 Lakhs reduced in FY 2016-17 under GAAP is now added back as per IND AS & Rs. 9.62 Lakhs- reflected as deferred income in other liability.

3. Refer Note 35 for disclosure of contractual commitments for the acquisition of preperty, plant and equipment.

The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of long term borrowings are shown under the current liabilities in Note 18B.

17.2 DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani.

Working capital referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani.

NOTE 34: Contingent Liabilities :-

a) Unredeemed Bank Guarantees & Letter of credit are Rs. 210.74 Lakhs (P.Y. Rs. 222.62 Lakhs)

b) Claims against the company not acknowledged as debts

¦ Income Tax Liability Rs. 4.94 Lakhs ( P.Y. 6.53 Lakhs )

c) The company has imported machineries under EPCG license whereby the custom duty saved of Rs. 52.72 Lakhs ( P.Y. 52.72 Lakhs ) is subject to performance of pre stated obligations. The non-performance would result in liability towards custom duty saved along with penalty and damages.

NOTE 35:

Capital Commitments :-

Estimate amount of contract remaining to be executed on Capital Account & not provided for Rs Nil ( Rs. Nil ) against which advance has been paid of Rs. Nil ( P.Y. Nil )

NOTE 36:

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2018 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

b) Defined benefit plans - Gratuity & Leave Encashment :

Gratuity :- The company operates a gratuity plan which is administrated through HDFC Standard Life Insurance Company Limited and a trust which is administrated through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity act, 1972. The same is payable at the time of separation from the company or retirement, whichever is earlier or death in service.

Leave Encashment :- The employees are entitled to accumulate compensated absence up to specified days as per company policy, which is payable at the time of separation from company i.e. retirement or death in service at the rate of last drawn salary.

The details on Company’s Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

NOTE 40 :

A) Segment Reporting :

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and all other activities of the Company including supply of raw materials to subsidiary of Rs. 739.46 Lakhs ( P.Y. Rs. 218.11 Lakhs ) revolve around the main business, and as such, there are no separate reportable segments.

NOTE 41:

Related Party Disclosures

A) List of Related Parties and Relationship

a) Subsidiaries : -

Premco Global Vietnam Co. Ltd._Subsidiary_

b) Associates : -

Premco Industries Enterprise on which significant influence is exercised having common Onspot Solutions Pvt. Ltd. directors/partners. Pixel Packaging Ltd.__

c) Key Management Personnel : -

Mr. Ashok B. Harjani Chairman & Managing Director

Mr. Lokesh P. Harjani Director

Mrs. Nisha P. Harjani Director

Mrs. Sonia A. Harjani Director

Mr. Devendra Kumar Jain CEO - Projects

Mr. Shantanu Dey__CEO_

NOTE 42:

Leases :

As a Leasee:

The Company’s major leasing arrangements are in respect of commercial /residential premises (including furniture and fittings therein wherever applicable taken on leave and license basis). These leasing arrangements which are cancellable, range 11 months to 5 years, or longer and are usually renewable by mutually agreed terms and conditions.

NOTE 44 : Corporate Social Responsibility (CSR) Activities :-

During the year, the Company is required to spend an amount of Rs. 35.47 Lakhs (PY Rs. 33.72 Lakhs) towards CSR activities, whereas the Company has already spent Rs. 35.32 Lakhs (PY Rs. 33.74 Lakhs) towards Corporate Social Responsibility ( CSR) under section 135 of the Companies Act, 2013 and rules thereon by way of contribution to various Trusts / NGOs / Societies / Agencies.

NOTE 45: DISCLOSURE ON SPECIFIED BANK NOTES (SBNs) :-

i The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.

ii Following are the details of holdings as well as dealings in Specified Bank Notes for the previous year ended March 31, 2017.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. The Company has mutual funds for which all significant inputs required to fair value an instrument falls under level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and unlisted preference shares are included in level 3.

There are no transfers between levels 1, 2 and 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

Investments in quoted equity instruments are valued using the closing price at Bombay Stock Exchange (BSE) at the reporting period.

The fair value of forward foreign exchange contracts is determined using forward exchange rates as at the balance sheet date, prevailing with Authorised Dealers dealing in foreign exchange.

The use of Net Assets Value (‘NAV) for valuation of mutual fund investment. NAV represents the price at which the issuer will issue further units and will redeem such units of mutual fund to and from the investors.

The fair value of the debentures is determined based on present values and the discount rates used were adjusted for counterparty risk and country risk.

a) The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and cash equivalents, borrowings and other financial liabilities are considered to be the same as their fair values, due to their short term nature.

(b) The fair values and carrying value for equity investments, security deposits, loans, other financial assets and other financial liabilities are materially the same.

NOTE 47A: Financial risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The company has a robust risk management framework comprising risk governance structure and defend risk management processes. The risk governance structure of the company is a formal organization structure with defend roles and responsibilities for risk management.

The Company risk management is carried out by a central treasury department under the guidance from the board of directors. Company’s treasury identifies, evaluates and hedges financial risks in close coordination with the company’s operating units. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity. There is no change in objectives and process for managing the risk and methods used to measure the risk as compared to previous year.

1) Credit Risk :

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Credit risk mainly arises receivables from customers, cash and cash equivalents, loans and deposits with banks, financial institutions & others.

a) Trade receivables

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 1328.14 Lakhs as at March 31, 2018 (March 31, 2017- Rs.1257.54 Lakhs; April 1, 2016 - Rs.954.25 Lakhs) and from loans amounting Rs. 1185.35 Lakhs (March 31, 2017- Rs.944.36 Lakhs; April 1, 2016 - Rs.120.30 Lakhs) Trade receivables are typically unsecured and are derived from revenue earned from customers located in India as well as outside India. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables.

The Company‘s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, the country and the state in which the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

The management continuously monitors the credit exposure towards the customers outstanding at the end of each reporting period to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The movement in the allowance for impairment in respect of trade receivables during the year was as follow:

The average credit period on sales of products is less than 90 days. Credit risk arising from trade receivables is managed in accordance with the Company‘s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a detailed study of credit worthiness and accordingly individual credit limits are defined/modified. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision table as above.

b) Cash and cash equivalents:

As at the year end, the Company held cash and cash equivalents of Rs. 22.51 Lakhs (March 31, 2017: Rs.198.41 Lakhs and April 1, 2016: Rs. 198.78 Lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

c) Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating.

d) Loans : The maximum exposure from loans is from loans due to subsidiary company and the repayments Are regular and neither past due nor impaired.

e) Other financial assets:

Other financial assets includes security deposits which are neither past due nor impaired.

2) Liquidity Risk :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses.

Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company‘s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

Other financial liabilities includes Current maturity of long-term borrowings of Rs. 85.78 Lakhs ( March 31, 2017 : 77.23 Lakhs and April 1, 2016 : 36.30 Lakhs) is included in borrowings above :

3) 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 three types of risks namely interest rate risk, currency risk and other price risk, such as commodity risk. The Company is not exposed to interest rate risk whereas the exposure to currency risk and other price risk is given below:

A) Market Risk- Foreign currency risk.

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by maintaining an EEFC bank account and purchasing of goods, commodities and services in the respective currencies. The Company also uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments, highly probable forecast transactions and foreign currency required at the settlement date of certain receivables/payables. The use of foreign currency forward contracts is governed by the Company‘s strategy approved by the board of directors, which provide principles on the use of such forward contracts consistent with the Company‘s risk management policy and procedures.

B) Market Risk- Price risk.

(a) Exposure

The company is mainly exposed to the price risk due to its investment in mutual funds and investment in equity instruments held by the company and classified in the balance sheet as fair value through profit or loss. The investment in mutual funds are mix of equity and debt based mutual funds. The price risk arises due to uncertainties about the future market values of these investments. To manage its price risk arising from investments in equity securities and mutual funds, the company diversifies its portfolio.

(b) Sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company‘s equity and Gain/ Loss for the period. The analysis is based on the assumption that the index has increased by 5% or decreased by 5% with all other variables held constant, and that all the company‘s equity instruments moved in line with the index.

NOTE 47B: Capital management (a) Risk Management

The company‘s objectives when managing capital are to safeguard the company‘s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital on the basis of the following gearing ratio:

NOTE 48: First Time Adoption of Ind AS Transition to Ind AS

These are the Company‘s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the company‘s date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company‘s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Deemed cost for Property, Plant and Equipment, Intangible Assets and Investment Property.

Ind AS 101 permits a first time adopter to opt to continue with the carrying value for all of its property, plant and equipment as recognized 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 after making necessary adjustments for de commissioning liabilities if any. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the company has opted to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value and use the same as deemed cost in the opening Ind AS balance sheet.

A.1.2 Designation of previously recognized financial instrument

Ind AS 101 allows an entity to recognize investments in equity instruments at fair value through profit and loss (FVTPL) through an irrevocable election on the basis of the facts and circumstances at the date of transition to Ind AS. The company has opted to apply this exemption for its investment in quoted equity investments, debentures and mutual funds.

A.1.3 Investment in subsidiary

The Company has opted to measure its equity investment in subsidiary at its previous GAAP carrying values which shall be the deemed cost as at the date of transition to Ind AS.

A.2 Ind AS mandatory exceptions

A.2.1 Estimates

An entity‘s estimates in accordance with Ind AS‘s at the date of transition shall 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.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP

- Investment in equity instruments carried at FVTPL

- Investment in debt instruments carried at FVTPL

- Impairment of financial assets based on expected credit loss model

Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by previous GAAP.

A.2.2 Classification and measurement of financial assets

a) Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

b) Reconciliation between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliation from previous GAAP to Ind AS.

Note 1: Fair valuation of investments

Under previous GAAP, Investments were accounted at cost. Under IND AS, the company has valued investments at fair value through statement of profit and loss. Impact of fair value changes on the date of transition including tax impact thereon is recognized in other equity (opening reserves) as at 1st April, 2016. Changes in fair value thereafter are recognized in statement of profit and loss and impact of actual realized gain as per previous GAAP is reversed.

Note 2: Government grants relating to Property, Plant & Equipment & other revenue grants

Under the previous GAAP, the government grants towards reimbursement of cost of fixed assets were reduced from the cost of fixed assets. Under IND AS the Company has increased the cost of fixed assets and recognized income from government grants over the useful life of the assets. Further the depreciation is also charged as per the remaining useful life.

The government grants other than fixed assets are recognized as income in the year of receipt.

Note 3: Financial instruments - derivatives

Under the previous GAAP, the foreign currency exchange rate fluctuation on forward contract hedges as on the closing dates were booked in the statement of profit & loss account. Under IND AS the same are recognized through other comprehensive income.

Note 4: Remeasurements of post-employment benefit obligations

Under the IND AS, remeasurement i.e. actuarial gain/loss and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liability are recognized in other comprehensive income instead of statement of profit and loss. Under the previous GAAP, these remeasurement were part of profit and loss for the year.

Note 5: Effective Interest on borrowing

Under the IND AS, the interest on long term borrowings are recognized at effective rate recognizing the initial borrowing expenditure incurred. Under the previous GAAP, the interest was accounted at actual rate.

NOTE 6 : Figures of Previous are regrouped and reclassified wherever necessary. As per our Annexed Report of even date For & On Behalf of The Board


Mar 31, 2017

1.1 The items for reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period is as follows.

1.2 Terms/Rights Attached to Shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of fully paid equity shares is entitled to one vote per share. The company declares and pays dividends to the holders of fully paid equity shares in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

1.3 Details of Share holders holding more than 5 % of Shares

1.4 There are no Bonus Shares /Buyback/Shares for consideration other than cash issued during past five years

2.1 The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

2.2 DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh P. Harjani.

(b) HDFC BANK LTD

Vehicle Loan from Bank are secured by mortgage of Respective Vehicle. The details of Loan is as under

(c) KOTAK MAHINDRA PRIME LTD.

Vehicle Loan from Bank are secured by mortgage of Respective Vehicle. There are different Loans and their respective details are as under

3.1 The Long Term Portion of Security Deposit Employees are shown under Other Long term Liabilities and the current maturities of Security Deposit Employees are shown under the current liabilities in Note 10(e)(i) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

4.1 The Long Term Portion of Provision for Employee Benefits are shown under Long Term Provisions and the current portion of Provision for Employee Benefits are shown under the Short term Provisions in Note 11(a) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

Working capital referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh P. Harjani.

*5.1 The Company has received intimation from suppliers regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence the following disclosures are given wrt. the extent of information as available with the company

Note 6.1 The board of Directors has recomonded a final dividend @ Rs. 3/- per equity share of Rs. 10/- each on 33,04,800 equity shares for the year ended 31.03.2017. ( P.Y. Rs. 0.50/- per equity share of Rs. 10/- each on 33,04,800 equity shares ) in addition to Interim Dividend paid @ Rs. NIL per equity share of Rs. 10/- each ( P.Y. Rs. 2.50/- per equity shares ) of Rs. 10/- each.

7.1 The Long Term Portion of Loans and Advances given to staff are shown under Long term Loans and Advances and the current portion of Loans and Advances given to staff are shown under the Short term Loans and Advances in Note 19 as per the disclosure requirements of the Schedule III.

NOTE 8: Contingent Liabilities :-

a) Unredeemed Bank Guarantees & Letter of credit are Rs. 222.62 Lakhs (P.Y. Rs. 21.48 Lakhs )

b) Claims against the company not acknowledged as debts

- Income Tax Liability Rs. 6.53 Lakhs ( P.Y. 11.49 Lakhs )

c) The company has imported machineries under EPCG license whereby the custom duty saved of Rs. 52.72 Lakhs ( P.Y. 32.38 Lakhs ) is subject to performance of pre stated obligations. The non-performance would result in liability towards custom duty saved along with penalty and damages.

NOTE 9:

Capital Commitments :-

Estimate amount of contract remaining to be executed on Capital Account & not provided for Rs Nil ( Rs. 308.72 Lakhs) against which advance has been paid of Rs. Nil ( P.Y. Nil )

NOTE 10:

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2017 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

NOTE 11 : Unhedged Foreign Currency Exposure & Derivative Instruments :-

(A) Foreign Currency exposure that are not hedged by derivative instruments or otherwise are as follows:

(B) Forward Contracts for hedge of Trade Receivables and under firm commitments/high probable forecast transactions are as follows :

NOTE 12: Disclosures in accordance with Revised AS -15 on “Employee Benefits” :-

a) Defined contribution plans- The company has recognized the following amounts in the Statement of Profit & loss for the Year :

b) Defined benefit plans - Gratuity & Leave Encashment :

Gratuity :- The company operates a gratuity plan which is administrated through HDFC Standard Life Insurance Company Limited and a trust which is administrated through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity act, 1972. The same is payable at the time of separation from the company or retirement, whichever is earlier or death in service.

Leave Encashment :- The employees are entitled to accumulate compensated absence upto specified days as per company policy, which is payable at the time of separation from company i.e. retirement or death in service at the rate of last drawn salary.

The details on Company’s Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

NOTE 13 :

A) Segment Reporting :

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

B) Secondary Business Segment :

NOTE 14: Information (to the extent applicable) pursuant to AS 19 :

The Company’s significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 29.

NOTE 15: Earning Per Share:

Earning per share computed in accordance with Accounting Standard 20: ‘Earning Per Share’

NOTE 16 : Corporate Social Responsibility (CSR) Activities :-

During the year, the Company has spent Rs. 33.74 Lakhs (PY Rs. 21.82 Lakhs) towards Corporate Social Responsibility ( CSR ) under section 135 of the Companies Act, 2013 and rules thereon by way of contribution to various Trusts / NGOs / Societies / Agencies.

NOTE 17 : DISCLOSURE ON SPECIFIED BANK NOTES (SBNs) :-

During the year, the Company had specified bank notes (SBNs) and other denomination notes as defined in the MCA notification G.S.R. 308(E) dated 31st March, 2017, on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8th November, 2016 to 30th December, 2016, the denomination wise SBNs and other notes as per the notification is given below:

NOTE 18 :Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2016

1. Terms/Rights Attached to Shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of fully paid equity shares is entitled to one vote per share. The company declares and pays dividends to the holders of fully paid equity shares in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. There are no Bonus Shares /Buyback/Shares for consideration other than cash issued during past five years

3. DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a)HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani.

4. The Company has not received any intimation from suppliers regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures regarding :

a) Amount due and Outstanding to suppliers as at the end of accounting year.

b) Interest paid during the year.

c) Interest due on amount find beyond due date during the year

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

e) Total interest due but not paid including prior years.

*There is no amount due and outstanding as on 31st March 2016 to be credited to Investor Education and Protection Fund. The unpaid dividend for the financial year 2007-08 of Rs. 153912/- which has been paid to Investor Protection Reserve Fund on 31.10.2015.

Note 5. The board of Directors has recommended a final dividend @ Rs. 0.50/- per equity share of Rs. 10/- each on 33,04,800 equity shares for the year ended 31.03.2016. ( P.Y. Rs. 2.70/- per equity share of Rs. 10/- each on 32,61,000 equity shares ) in addition to Interim Dividend paid @ Rs. 2.50/- per equity share of Rs. 10/- each ( P.Y. NIL per equity shares ) of Rs. 10/- each.

b) Defined benefit plans - Gratuity & Leave Encashment :

Gratuity :- The company operates a gratuity plan which is administrated through HDFC Standard Life Insurance Company Limited and a trust which is administrated through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity act, 1972. The same is payable at the time of separation from the company or retirement, whichever is earlier or death in service.

Leave Encashment :- The employees are entitled to accumulate compensated absence up to specified days as per company policy, which is payable at the time of separation from company i.e. retirement or death in service at the rate of last drawn salary.

The details on Company''s Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

NOTE 6:

Information (to the extent applicable) pursuant to AS 19 :

The Company''s significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 29.

NOTE 7 : Corporate Social Responsibility (CSR) Activities :-

During the year, the Company has spent Rs. 21.82 Lacs (P.Y. Rs. 9.49 Lacs) towards Corporate Social Responsibility ( CSR ) under section 135 of the Companies Act, 2013 and rules thereon by way of contribution to various Trusts / NGOs / Societies / Agencies.

NOTE 8. : Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2015

1. Terms/Rights Attached to Shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of fully paid equity shares is entitled to one vote per share. The company declares and pays dividends to the holders of fully paid equity shares in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

a. The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of Long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

2. DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani.

3.a. The Long Term Portion of Provision for Employee Benefits are shown under Long Term Provisions and the current portion of Provision for Employee Benefits are shown under the Short term Provisions in Note 11 (a) as per the disclosure requirements of the Schedule III of the Companies Act, 2013.

b. The Company has entered into funding arrangement with HDFC Standard Life Insurance Company Limited and that the Gratuity payable to Employees is covered under the Employees Group Gratuity Scheme through the " Premco Global Limited Employees Gratuity Trust". Accordingly the gratuity liabilities provided in the books of the company as on 31.03.2015 of Rs. 56.91 Lacs ( P.Y. Rs. 55.91 Lacs) has been squared off against the company contribution of Rs. 65.00 Lacs towards planned assets and the amount of Rs. 8.28 Lacs is charged to Profit & Loss account as Gratuity Expense.

During the year, the Company has revised depreciation rate on certain fixed assets as per the useful life specified in the Companies Act, 2013.

Accordingly, the carrying amount as at 01.04.2014 is being depreciated over revised remaining useful life of the asset.

The Carrying value of Rs. 87.35 Lacs in case of Assets worth NIL revised remaining useful life as at 01.04.2014, is reduced aftertax adjustment of Rs. 29.69 Lacs from the Retained Earnings as at such date. Further, had the Company continued with the previously assessed useful lives, charge for depreciation for the year ended 31.03.2015 would have been lower by Rs. 121.56 Lacs and profit before tax would be higher by such amount.

4. Contingent Liabilities:

a) Unredeemed Bank Guarantees are Rs.24.22 Lacs (P.Y. Rs. 15.34 Lacs)

b) Claims against the company not acknowledged as debts

* Income Tax Liability Rs. 14.25 Lacs (PY. 6.13 Lacs)

5. Capital Commitments :-

Estimate amount of contract remaining to be executed on Capital Account & not provided for Rs. 24.18 Lacs (P.Y. NIL) against which advance has been paid Of Rs. 4.35 Lacs (P.Y. NIL)

6. The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2015 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

a) Defined benefit plans - Gratuity & Leave Encashment:

Gratuity The company operates a gratuity plan which is administrated through HDFC Standard Life Insurance Company Limited and a trust which is adm inistrated through trustees. Every employee is entitled to a minimum benefit equivalent to 15 days salary last drawn for each completed year of service in line with Payment of Gratuity act, 1972, The same is payable at the time of separation from the company or retirement, whicheverisearlierordeath in service.

Leave Encashment :-The employees are entitled to accumulate compensated absence upto specified days as per company policy, which is payable at the time of separation from company i.e. retirement or death in service at the rate of last drawn salary.

The details on Company's Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

7. Segment Reporting:

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and ail other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

8.Related Party Disclosures

a) List of Related Parties and Relationship Relationship Prernco Industries Associate Firm

b) Key Management Personnel - Directors

Mr, Ashok B. Harjani Chairman & Managing Director

Mr. Lokesh P. Harjani Director

c) Key Management Personnel - Otherthan Directors

Mrs. Nisha P. Harjani Chief Financial Officer

d) Relatives of Key Management Personnel Mrs. Sonia A. Harjani Relative Mr. Prem B. Harjani Relative Mr. Suresh B. Harjani Relative

9. Information (to the extent applicable) pursuant to AS 19 :

The Company's significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 28.

10. Corporate Social Responsibility (CSR) Activities

During the year, the Company has spent Rs. 9.49 Lacs towards Corporate Social Responsibility ( CSR ) under section 135 of the Companies Act, 2013 and rules thereon by way of contribution to various Trusts / NGOs / Societies / Agencies.

11. Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2014

1. Terms/Rights Attached to Shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of fully paid equity shares is entitled to one vote per share. The company declares and pays dividends to the holders of fully paid equity shares in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Revised Schedule VI

3. DETAILS OF SECURITY AND TERMS OF REPAYMENT

(a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at Plot no. 41, Survey no. 35 (PT) Diwan & sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey no. 202/2, Old check post, Dadra & Nagar Haveli, Dadra along with personal guarantee of Lokesh Harjani & Ashok Harjani.

4. NOTE :

Contingent Liabilities :

a) Unredeemed Bank Guarantees are Rs.15.34 Lacs (P.Y. Rs. 16.54 Lacs)

b) Claims against the company not acknowledged as debts

* Income Tax Liability Rs. 6.13 Lacs (P.Y. Nil)

5. NOTE :

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2014 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

6. NOTE :

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

7. NOTE :

A) Segment Reporting:

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

8. NOTE :

Information (to the extent applicable) pursuant to AS 19:

The Company''s significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 28:.

9. NOTE : Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2013

NOTE 1:

Contingent Liabilities:

a) Unredeemed Bank Guarantees are Rs. 16.54 Lacs (RY. Rs.18.90 Lacs)

b) Claims against the company not acknowledged as debts

- Income Tax Liability Rs. Nil (P.Y. 2.42 Lacs)

NOTE 2:

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2013 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

NOTE 3:

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

NOTE 4:

Consequent to the adoption of Accounting standard on Employee benefits (AS 15) (Revised 2005) issued by the institute of Chartered Accountants of India, the following disclosures have been made by the Standard:

a) The details on Company''s Gratuity and Leave Encashment liabilities employees are given below which is certified by the actuary and relied upon by the auditors.

NOTE 5:

A) Segment Reporting:

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

NOTE 6:

Related Party Disclosures

a) List of Related Parties and Relationship Relationship Premco Industries Associate Firm

b) Key Management Personnel

Ashok B. Harjani Chairman & Managing Director

Lokesh P. Harjani Director

c) Relatives of Key Management Personnel

Mrs. Nisha P. Harjani Relative

Mrs. Sonia Harjani Relative

Mr. PremB. Harjani Relative

NOTE 7:

Information (to the extent applicable) pursuant to AS 19:

The Company''s significant leasing arrangements are in respect of operating leases for premises (Factory & office premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 27:.

NOTE 8:

Earning Per Share:

Earning per share computed in accordance with Accounting Standard 20: ''Earning Per Share

NOTE 9:

Information pursuant to Para 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 (to the extent available and as certified by the management) is as under :-

a) Production of Finished Goods

b) Quantitative information in respect of Opening Stock, Closing Stock, Sales and Consumption of Raw Materials (As Certified by Management)

NOTE 10. Figures of Previous are regrouped and reclassified wherever necessary.


Mar 31, 2012

NOTE a) Cash & Cash equivalent include : cash and Bank balance in Current Account and Unpaid Dividend

b) The cash flow statement as been prepared under the "Indirect method" of AS - 3 "cash flow statement issued by the Institute of Chartered Accountants of India.

1.1 There are no items for reconciliation of the number of shares outstanding at the beginning and at the end of the reporting

1.2 Terms / Rights Attached to Shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of fully paid equity shares is entitled to one vote per share. The company declares and pays dividends to the holders of fully paid equity in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.

1.3 There are no Bonus Shares I Buyback I Shares for consideration other than cash issued during past five years.

2.1 The Calls of Rs. 2,25,000/- (RY. Rs. 2,25,000/-) in Securities Premium Reserve are due from Share holders other than Directors and officers

3.1 The Long Term Portion of Term Loans are shown under long term Borrowings and the current maturities of long term borrowings are shown under the current liabilities in Note 10(a) as per the disclosure requirements of the Revised Schedule VI

3.2 DETAILS OF SECURITY AND TERMS OF REPAYMENT

a) HDFC BANK - Term Loans referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stocks & book debts and plant & machinery along with equitable mortgage on the property situated at plot No. 41, Survey no. 35 (PT) Diwan & Sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey No. 202/2, Old Check Post, Dadra & Nagr Haveli, Dadra along with personal guarantee of Lokesh Harjani & Ashok Harjani.

c) ICICI BANK LTD.

Vehicle Loan from Bank are secured by mortgage of Respective Vehicle. The Loan has been fully repaid during the year and the interest applicable on the said loan at the rate of 8.70% p.a.

d) KOTAK MAHINDRA PRIME LTD.

Vehicle Loan from Bank are secured by mortgage of Respective Vehicle.

4.1 The long term portion of Security Deposit Employees are shown under Other Long Term Liabilities and the current maturities of Security Deposit Employees are shown under the current liabilities in note 10(e)(i) as per the disclosure requirements of the Revised Schedule VI

5.1 The long term portion of Provision for Employee Benefits are shown under Other Long Term Provisions and the current portion of Provision for Employee Benefits are shown under the Short Term Provisions in note 11(a) as per the disclosure requirements of the Revised Schedule VI

Working capital referred to above from Banks are secured by way of Hypothecation of first & exclusive charge on all present & future current assets inclusive of all stock & book debts and plant & machinery along with equitable mortgage on the property situated at Plot No. 41, Survey no. 35 (PT) Diwan & Sons industrial Estate, Aliyali Village, Palghar, Thane District & Survey No. 202/

2, Old Check Post, Dadra & Nagr Haveli, Dadra along with personal guarantee of Lokesh Harjani & Ashok Harjani.

*There is no amount due and outstanding as on 31st March 2012 to be credited to Investor Education and Protection Fund.

14.1 The long term portion of loans & advances given to staff are shown under Long Term Loans & Advances & The Current portion of Loans & Advances given to staff are shown under the short term Loans & Advances in Note 19 as per the disclosure requirements of the revised schedule VI.

The Sales revenue from operations & consumption of Raw material for the year ended 31/03/2011 includes the value of Inter Division Sales & Purchase respectively aggregating of Rs. 618.54 Lacs. During the year the Company has changed the method accounting of sales revenue from operations & consumptions of raw material by excluding the value of interdivision Sales/ purchases of Rs. 708.06 Lacs for the current year. The above has no effect in overall profit / loss of the year. Consequently the sales of the earlier year is overstated to the extent of Rs. 618.54 Lacs.

The Sales revenue from operations & consumption of Raw material for the year ended 31/03/2011 includes the value of Inter Division Sales & Purchase Respectively aggregating of Rs. 618.54 Lacs. During the year the Company has changed the method accounting of sales revenue from operations & consumptions of raw material by excluding the value of interdivision Sales/purchases of Rs. 708.06 Lacs for the current year. The above has no effect in overall profit / loss of the year. Consequently the sales of the earlier year is overstated to the extent of Rs. 618.54 Lacs.

NOTE 6:

Contingent Liabilities :

a) Unredeemed Bank Guarantees are Rs.18.90 Lacs (RY.Rs.18.64 Lacs)

b) Claims against the company not acknowledged as debts

- Claims Rs. Nil (P. Y. 503.35 Lacs)

- Income Tax Liability Rs. 2.42 Lacs (P.Y. 32.01 Lacs)

NOTE 7:

The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2012 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

NOTE 8:

In the opinion of the management, no item of current assets, loans and advances has a value on realization in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

NOTE 9:

Consequent to the adoption of Accounting standard on Employee benefits (AS 15) (Revised 2005) issued by the institute of Chartered Accountants of India, the following disclosures have been made by the Standard :

NOTE 10:

A) Segment Reporting

In the opinion of the management the company is mainly engaged in the business of manufacturing of Elastic Tapes and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

NOTE 11:

Information (to the extent applicable) pursuant to AS 19 :

The Company's significant leasing arrangements are in respect of operating leases for premises (factory, office, premises etc.). These leasing arrangements which are not non-cancellable range between 11 months and 5 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 27

NOTE 12:

The Financial Statements for the year ended March 31,2011 had been prepared as per the then applicable, per-revised schedule VI to the Companies Act 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figure have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition and measurement principals followed for preparation of financial statements.

*Note: Interdivision transfer is not consider as sales from FY 2011 -12 onwards.

The Company Shares are listed in Mumbai & Ahmadabad Stock Exchange. The requisite listing fees have been paid.


Mar 31, 2010

1. Figures of the previous year have been regrouped and rearranged, wherever considered necessary.

2. Contingent Liabilities :

a) Unredeemed Bank Guarantees are Rs.15.95 Lacs (P.Y.Rs.12.95 Lacs)

b) Claims against the company not acknowledged as debts

- Claims Rs. 503.35 lacs (P. Y. 503.35)

- Income Tax Liability Rs. 3.51 (P.Y. 3.12)

3. Estimated amount of contracts remaining to be executed (net of advances) is Rs. 347.28 lacs (P.Y. 565.21 Lacs)

4. The balance confirmations in respect of debtors, creditors, advances, loans and deposits as at 31st March 2010 have been called for and are subject to confirmation & reconciliation as the necessary communication in this respect is not received from them. The management has scrutinized the accounts and the balances appearing in the Balance Sheet are correct.

5. In the opinion of the management, no item of current assets, loans and advances has a value on realisation in the ordinary course of business, which is less than the amount of value at which it is stated in the Balance Sheet, unless otherwise specified.

6. Dividend income is accounted on receipt basis.

7. The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures regarding :

a) Amount due and outstanding to suppliers as at the end of accounting year.

b) Interest paid during the year.

c) Interest payable at the end of the accounting year.

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmations from the suppliers as regards their status under the Act.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X