Mar 31, 2014
1. BACKGROUND
Wetterman International Limited (the Company) Is a public limited
company domiciled in India and was incorporated dated 13.OS.1992 under
the provisions of the Companies Act, 1956 having registered office at
Plot No. 1135, At Post Lamdapura, Lamdapura Road. Savll, Vadodara. Its
shrams are listed on the Bombay Sock Exchange. The Company is engaged
In business of trading of Shoe Leather
2. The manufacturing unit at Landapurauearhjis been closed since May,
20M and hence the purchase productionthrtytn cspaut of the
manufacturingunit is no more (hare. However Company now me line of
business at Chennai.
3. In the opinion of the Board the Current Assets. Loans and Advances
are approximately of the value stated, if realised in the ordinary
course of business Froviswi for air known liabilities is adequate and
net in excess of the amount reasonably necessary. No provision for
income tax ha* h sen made m view of heavy brought forward business
losses and depreciation both as im the Income Tax Act and also as per
the books of account,
4. Debit and Credit balances in party accounis are subject In
confirmation and nsconcaliu bon. In absence of taxable income, prawsipn
for Income Tax has not been matte,
5. The Company has yet to comply provisions of S-action 383-A of the
Companies Act 19515 In respect of appaintmenl of Company Secretary and
provisions of Section 205-A of the Companies Acf. 1956 In respect of
payment of Dividend for the year 1905-96. However a Practicing Company
Secretary has been appointed as a natolr .sr 2ft Under the Micro, Small
and Medium Enterprises DevelopmenlAct, 20U6 which came into force on
October, 2006, certain disclosures aro required to be made relating to
Micro. Small and Medium Enterprises. Since the relevant Information's
notreadisy available, disefosur e could not be made.
6. Related Party Disclosure as per Accounting Standard 18.
Related Party and Its relationship
A Directors S Key Management Personnel 1. Kcyum R- Dhanami
B. Related Parties 1. Sara Soule Pvt Ltd
2. Aashita Leather Pvt Ltd
3. Sayaji Hotels Ltd
Mar 31, 2013
NOTE ''1''. BANKGROUND
Welterman International Limited (the Company) is a public limited
company domiciled in India and was incorporated dated 13.05.1992 under
the provisions of the Companies Act, 1956 having registered office at
Plot No. 1135, At Post Manjusar, Lamdapura Road, Savli, Vadodara. Its
shares are listed on the Bombay Stock Exchange. The Company is engaged
in business of trading of Shoe Leather.
2 The manufacturing unit at Lamdapura - Manjusar has been closed since
May, 2009 and hence the purchase - production - sales activity in
respect of the manufacturing unit is no more there. However Company
now, has been engaged into trading activity in the same line of
business at Chennai.
3 In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realised in the ordinary
course of business. Provision for all known liabilities is adequate and
not in excess of the amount reasonably necessary.
4 Debit and Credit balances in party accounts are subject to
confirmation and reconciliation. In absence of taxable income,
provision for Income Tax has not been made.
5 The Company has yet to comply provisions of Section 383-A of the
Companies Act 1956 in respect of appointment of Company Secretary and
provisions of Section 205-A of the Companies Act, 1956 in respect of
payment of Dividend for the year 1995-96. However a Practicing Company
Secretary has been appointed as a retainer.
6 Under the Micro, Small and Medium Enterprises Development Act, 2006
which came into force on October, 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises.
Since the relevant information is not readily available, no disclosures
have been made in the Books of Accounts.
Mar 31, 2012
1. Interest and other borrowing costs attributable to qualifying
assets are capitalized. Other interest and borrowing cost are charged
to revenue.
2. During the Year under report, the Company has written off
Rs.3,60,080 , being the remaining portion of the amount paid to the
workmen who opted retirement in previous years under Voluntary
Retirement Scheme.
3. The manufacturing unit at Lamdapura - Manjusar has been closed
since May, 2009 and hence the purchase - production - sales activity in
respect of the manufacturing unit is no more there. However Company
now, has been engaged into trading activity in the same line of
business at Chennai.
4. In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realised in the ordinary
course of business. Provision for all known liabilities is adequate and
not in excess of the amount reasonably necessary.
5. Debit and Credit balances in party accounts are subject to
confirmation and reconciliation. In absence of taxable income,
provision for Income Tax has not been made.
6. The Company has yet to comply provisions of Section 383-A of the
Companies Act 1956 in respect of appointment of Company Secretary and
provisions of Section 205-A of the Companies Act, 1956 in respect of
payment of Dividend for the year 1995-96. However a Practicing Company
Secretary has been appointed as a retainer.
7. Under the Micro, Small and Medium Enterprises Development Act, 2006
which came into force on October, 2006, certain disclosures are
required to be made relating to Micro, Small and Medium Enterprises.
Since the relevant information is not readily available, no disclosures
have been made in the Books of Accounts.
8. Accounting for Taxes on Income and Deferred Tax Asset AS - 22
The Company has not been liable to pay any Income-tax for the year as
the Company has been in loss. Further the Company has huge Unabsorbed
Business Losses and Unabsorbed Depreciation under the Income tax Act
and hence its Deferred Tax Assets are much in excess of Deferred Tax
Liabilities. Company has not recognized differed tax asset till last
year in absence of virtual certainty of continual future profits. But,
though in the current year, there has been business loss, the
expectation of business profit has been certain and hence Deferred Tax
Asset has been recognized as under.
9. Figures for the previous year have been regrouped, rearranged and
recast wherever necessary so as to make them comparable with those of
the current year.
Mar 31, 2009
1. During the year Company paid Rs. 18,00,018/- towards the Voluntary
Retirement Scheme to the workmen who opted retirement. U/s 35DDA of the
Income Tax Act, 1961, 175th of such amount becomes allowable in each
year from the year in which such payments have been made. Accordingly,
for the year under review, an amount of Rs. 3,60,004 has been debited
under revenue for the year under report and similarly Rs.1,36,001 have
been debited for the Previous Year.
2. Due to persistent unviability of the production unit, the Directors
decided to close down the entire plant in May,2009 and hence the
purchase - production - sales activity is closed.
3. In the opinion of the Board, the Current Assets, Loans and Advances
are approximately of the value stated, if realised in the ordinary
course of business. Provision for all known liabilities is adequate and
not in excess of the amount reasonably necessary.
4. Debit and Credit balances in party accounts are subject to
confirmation and reconciliation. In absence of taxable income,
provision for Income Tax has not been made.
5. No interest has been paid/ provided on unsecured loans obtained
from the Promoters and Associate Companies as per the conditions
imposed by financial institutions.
6. The Company has yet to comply provisions of Section 383-A of the
Companies Act
1956 in respect of appointment of Company Secretary and provisions of
Section 205-A of the Companies Act, 1956 in respect of payment of
Dividend for the year 1995-96. However a Practicing Company Secretary
has been appointed as a retainer.
7. In the absence of sufficient information, disclosure of particulars
regarding unpaid amounts exceeding for 30 days to Small Scale
Industrial Undertakings as defined under the Industries ( Development
and Regulation ) Act, 1951 could not be made.
8. Interest on the Term Loan obtained from the Gujarat State Finance
Corporation has not been provided for by the Company during the year
just like in the previous years as the lender has treated Advance to
the Company as Non-performing asset and has not intimated the Company
for the charges of the interest. The Company being a sick industrial
undertaking, it has been felt that such interest in all likelihood will
be waived. However company is under the process of repaying the same
on One Time Settlement basis.
9. Sara Soule Private Limited repaidthe Companys Secured loan of
industrial Financial Corporation of India (IFCI) amounting to Rs. 9.21
Crores (Including Principal Rs. 5.02 Crores and Penal Interest of Rs.
0.33 Crore) at hte behest of the Company. Sara Soule Pvt. Ltd. paid to
IFCI Rs. 324.76 Lacs afresh during the year whereas the balance Rs.
596.96 Lacs has been paid by rhe company form the unsecured deposit of
Sara Soule pvt. Ltd. lying with the Company. The process of handing
over the documents of title of property of hte Company from IFCI to
Sara Soule Pvt. Ltd. and creation of change in its favour with the
Registrar of Companies has been in progress, meanwhile interim legal
document for creation of the charge in favour of Sara Soule has been
executed.
10. Accounting for Taxes on Income AS - 22
The Company has not been liable to pay any Income-tax for the year as
the Company has been in loss. Further the Company has huge Unabsorbed
Business Losses and Unabsorbed Depreciation under the Income tax Act
and hence its Deferred Tax Assets are much in excess of Deferred Tax
Liabilities. Net differed tax asset has not been recognised by the way
of prudence in accordance with Accounting Standard - AS 22 relating to
"Accounting for Taxes on Income" issued by the Institute of Chartered
Accountants of India, in absence of virtual certainty of future
profits.
11. Figures for the previous year have been regrouped, rearranged and
recast wherever necessary so as to make them comparable with those of
the current year.