Mar 31, 2015
Note No. - 1. : EMPLOYEE BENEFIT EXPENSES (Contd.)
Defined Benefit Plans:
Gratuity - Gratuity is payable to all the eligible employees of the
Company on resignation, death, Permanent disablements in terms of the
Payment of Gratuity Act,1972.
Leave Encashment - Entitlement of annual leave is recognised when they
accrue to employees Annual leave can either be availed or encashed
subject to a restriction on the maximum number of accumulation of
leaves.
Note No. - 2.
The operations of the company predominantly comprises of "Manufacturing
of yarn"(made of Cotton, Polyster and Viscose). These activities
constitute the Primary segment. Secondary segmental reporting is made
on the basis of geographical location of the customers. The accounting
principles consistently used in the preparation of the financial
statements are also consistently applied to record income and
expenditure in individual segments.
The company's major exports are made to four principal geographical
areas in the World. In India, its home country, the company carries out
manufacturing of Yarn and Trading of raw cotton. The following table to
shows the distribution of the company's turnover
Note No. - 3.
Previous period's figures have been recast / restated to confirm with
the current year's classification.
Mar 31, 2014
SHARE CAPITAL
a) Terms/rights attached to equity shares:
The Company has one class of Equity Shares of face value Rs. 10 per
share. Each holder of Equity shares is entitled to one vote per share.
The Company declares and pays dividends in Indian Rupees. The dividend
proposed by the Board of Directors is subject to the approval of the
Share holders in ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
b) Terms/rights attached to 12% Redeemable Non Convertible Cumulative
Preference shares
(i) Entitled to receive dividend @ 12% per annum
(ii) 6,50,000 Shares issued on 17.10.2011 Redeemable on 16th January,
2025
(iii) 3,00,000 Shares issued on 14.11.2012 Redeemable on 15th February,
2025
(iv) The RNCCPS shall have right to attend the General meetings of the
company and vote on the Resolutions directly affecting their interest
or where the dividence are in arrears for not less than two years on
the date of the meeting, on all resolutions at every meeting of the
Company.
(v) In winding up, the RNCCPS holders of the said shares shall be
entitled to preferential right of return of the amount paid up on the
shares, together with arrears of cumulative preference dividend due as
on the date of winding up, but shall not have any further right or
claim over the surplus profits or assets of the Company.
c) Details of Equity and Redeemable Preference Shareholders holding
more than 5% of Shares along with No. of Shares held at the beginning
and at the end of the reporting period are as given below:
Note No. 1
(a) State Bank of India Term Loan carrying @16% interest and principle
to be repaid in 24 quarterly installments upto June 2016.
The term loan is secured by mortgage of present and future movable and
immovable assets of the company situated at Mahaboobnagar unit on Pari
Passu basis and guaranteed by one Director of Company.
(b) State Bank of Hyderabad Term Loans carrying @13.45% and @13.95%
interest and principle tobe repaid in 19 quarterly installments upto
June 2016. The Loans are secured by mortgage of present and future
movable and immovable assets of the company situated at Tandur unit on
Pari Passu basis and guaranteed by one Director of the Company.
(c) State Bank of Bikenere and Jaipur Term Loans carrying @14.25% and
@15.25% interest and principle tobe repaid in 25 quarterly installments
upto December 2015. The Loans are secured by mortgage of present and
future movable and immovable assets of the company situated at Tandur
unit on Pari Passu basis and guaranteed by one Director of the Company.
(d) Term Loan from Axis Bank Ltd carrying @14.75% interest and
principle tobe repaid in 32 quarterly installments upto June 2016. The
term loan is secured by mortgage of present and future movable and
immovable assets of the company situated at Tandur Unit on Pari Passu
basis and second Pari Passu charge on entire fixed assets of
Mahboobnagar Unit of the Company both present and future and guaranteed
by two Directors of the Company.
(e) Term Loan from ICICI Bank carrying @16.75% interest and principle
tobe repaid in 34 quarterly installments upto June 2018. The Loan of
ICICI Bank Ltd is secured on Pari Passu basis of factory land &
buildings of Mahboobnagar Unit present and future, and factory land and
buildings of dyeing plant at Yedira Village of Mahboobnagar district
and second Pari Passu charge on fixed assets of Tandur Unit.
(f) Working Capital Term Loan from Central Bank of India carrying
@15.5% interest and principle tobe repaid in 32 quarterly installments
upto July 2016. The loan of Central Bank of India is secured by Pari
Passu second charge on fixed assets of both Tandur & Mahboobnagar Units
and personal guarantee of two Directors of the Company.
(g) Short term corporate loan from State Bank of India carrying @16.1%
interest and principle tobe repaid in 12 quarterly installments upto
March 2016. The loan is secured by extension of first charge on current
assets along with working capital bankers of the consortium.
(h) Short term corporate loan from State Bank of Hyderabad carrying
@15.7% interest and principle tobe repaid in 12 quarterly installments
upto July 2016. The loan is secured by extension of first charge on
current assets along with working capital bankers of the consortium.
(i) Current maturities of Term Loans include Rs. 436.53 lakhs
installments over due as on the date of Balance Sheet, of which since
paid Rs. 394.03 lakhs.
Note No. 2
Unsecured Loans from Directors, their relatives and others are long
term loans and carrying rate of interest @8% per annum to @12% per
annum.
Note No. 3
All Working Capital Loans from Banks carrying interest @ 14% to 17% are
secured by hypothecation of stocks of raw materials, yarn, stock-
in-process, stores and spares, book debts and Second Charge on the
present and future immovable properties of the company on pari-passu
basis and further guaranteed by two directors of the Company.
Note No. 2.4.1
The 9.5% redeemable non convertible debentures are secured by mortgage
of present and future movable & immovable properties situated at
Mahaboobnagar unit on pari-passu basis and guaranteed by one director
of the Company. The above debentures are pending redemption.
Note No. 2.4.2
Unclaimed dividends do not include any amounts,due and outstanding, to
be credited to investor education and protection fund.
Note No. 2.4.3
Current maturities of Interest on Term Loans from Banks include Rs.
122.97 lakhs over due as on the date of Balance Sheet, of which Rs.
110.65 lakhs has since been paid.
Note No. 2.5
CASH AND BANK BALANCES
* Balances with Banks include unclaimed dividend of Rs. 5.36 Lakhs
(previous year Rs. 6.54 lakhs) and balance in Exchange Earners Exchange
Earners Foreign Currency Account Rs. 8.36 Lakhs (previous year Rs. 2.41
lakhs)
** Fixed Deposits with Banks are under lien to Banks towards LC''s, BG''s
& NCD''s of Rs. 283.49 Lakhs of which Rs. 283.49 lakhs (previous year
Rs. 486.33 lacs) with maturity of more than 12 months.
Note No. 2.6
Other non- operative Income includes recognisation of income towards
interest under TUFS receivable amounting to Rs. 1210.41 lakhs for the
period 2006-07 to 2010-11( refunded in earlier years), in view of the
favourable judgement of competent court. The amount is subject to final
determination by appropriate authorities and realisation thereof.
Note No. 2.7
Employee Benefits
As per Accounting Standard 15"Employee Benefits"the disclosures of
Employee Benefits as defined in the Accounting standard are given
below:
Defined Contributions:
Payments and provisions for employees include Rs. 81.04 lakhs (Previous
Year Rs. 88.84 lakhs) recognised as expenses in respect of defined
contribution plans.
Defined Benefit Plans:
Gratuity - Gratuity is payable to all the eligible employees of the
Company on resignation, death, permanent disablement in terms of the
Payment of Gratuity Act, 1972
Leave Encashment - Entitlement to annual leave is recognised when they
accrue to employees. Annual leave can either be availed or encashed
subject to a restriction on the maximum number of accumulation of
leaves.
Note: The estimate of future salary increases, considered in actuarial
valuation, takes into account inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
Note No. 2.8
Contingent Liabilities not provided for:
Particulars 31 March, 2014 31 March, 2013
a) Letters of credit Nil 47.89
b) Bank Guarantees 610.00 1711.97
c) In respect of Bills Discounted
& outstanding 668.23 2041.21
d) In respect of suits filed but not
acknowledged as debt 26.80 26.80
e) Other commitments:
Company remains exposed to liability towards fuel surcharge adjustment,
which are notified by Power Distribution Companies of Andhra Pradesh
pertaining to earlier years, which are being adjusted in future tariff
payable for consumption. Accordingly charges are accounted in the year
payment/bill raised for the same.
Note No. 2.9
The balance outstanding to the debit or credit in the accounts of
parties are subject to confirmation and review by the company.
Note No. 2.10
The operations of the company predominantly comprises of "Manufacturing
of yarn". These activities constitute the Primary segment. Secondary
segmental reporting is made on the basis of geographical location of
the customers. The accounting principles consistently used in the
preparation of the financial statements are also consistently applied
to record income and expenditure in individual segments.
The company''s major exports are made to four principal geographical
areas in the World. In India, its home country, the company carries out
manufacturing of Yarn and Trading of raw cotton. The following table
shows the distribution of the company''s turnover by geographical
locations.
Note No. 2.11
RELATED PARTY TRANSACTIONS
NAMES OF ASSOCIATES FIRMS
M/s Balaji Enterprises M/s Sri Laxmi Enterprises
U. K. Agarwal (Family Trust) U. K. Agarwal (HUF)
M/s U. K. Cotton Exports
NAMES OF KEY MANAGEMENT PERSONNEL
Sri U. K. Agarwal Sri Ritesh K. Agarwal
NAMES OF RELATIVES OF KEY MANAGEMENT PERSONNEL
Mrs. Usha Agarwal - Wife of Sri. U. K. Agarwal
Mrs. Arti Agarwal - Wife of Sri. Ritesh K Agarwal
Master Viraj Agarwal - Son of Sri. Ritesh K Agarwal
Miss Neysa Agarwal - Daughter of Sri. Ritesh K. Agarwal
Note No. 2.12
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to the Companies Act, 1956 ("the
schedule") issued by Ministry of Corporate Affairs. Previous period''s
figures have been recast/restated to confirm to the classification
required by the revised Schedule VI.
Mar 31, 2013
Note No. 1.1 A
Employee Benefits
As per Accounting Standard 15 "Employee Benefits," the disclosures of
Employee Benefits as defined in the Accounting Standard are given
below:
Defined Contributions:
Payments and provisions for employees include Rs.88.84 lakhs (Previous
Year Rs.86.24 lakhs) recognised as expenses in respect of defined
contribution plans.
Defined Benefit Plans:
Gratuity- Gratuity is payable to all the eligible employees of the
Company on resignation, death, permanent disablement in terms of the
Payment of Gratuity Act, 1972
Leave Encashment - Entitlement to annual leave is recognised when they
accrue to employees. Annual leave can either be availed or encashed
subject to a restriction on the maximum number of accumulation of
leaves.
Note No. 1.2
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to the Companies Act, 1956 ("the
schedule") issued by Ministry of Corporate Affairs. Previous period''s
figures have been recast / restated to confirm to the classification
required by the revised Schedule VI.
Mar 31, 2012
A) Terms/rights attached to equity shares:
The Company is having one class of Equity Shares of face value Rs.10 per
share. Each holder of Equity shares is entitled to one vote per share.
The Company declares and pays dividends in Indian Rupees. The dividend
proposed by the Board of Directors is subject to the approval of the
Share holders in ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
b) Terms/rights to 12% Redeemable Non Convertible Cummulative
Preference shares
The Preference shares issued are non convertible and redeemble after a
period of 5 years with a right of divedend @ 12% p.a
c) Details of Equity Shareholders holding more than 5% of equity shares
along with No. of Equity Shares held at the beginning and at the end of
the reporting period are as given below:-
(1) The 9% redeemable non convertible debentures are secured by
mortgage of present and future movable & immovable properties situated
at Mahaboobnagar unit on pari-passu basis and guaranteed by one
director of the Company.The debentures are redeemable in ten quarterly
instalments starting from 1st January,2010 onwards as per
reschedulement permitted by IDBI bank.
(2) Industrial Development of India and State Bank of India Term Loans
are secured by mortgage of present and future movable and immovable
assets of the Company situated at Mahaboobnagar unit on Pari Passu
basis and guaranteed by one Director of the Company.
(3) State Bank of Hyderbad and State Bank of Bikaner & Jaipur Term
Loans are secured by mortgage of present and future movable and
immovable assets of the Company situated at Tandur unit on Pari Passu
basis and guaranteed by one Director of the Company.
(4) Term Loans from Axis Bank Ltd are secured by mortgage of present
and future movable and immovable assets of the Company situated at
Tandur Unit on Pari Passu basis and second Pari Passu charge on entire
fixed assets of Mahboobnagar Unit of the Company both present and
future and guaranteed by two Directors of the Company.
(5) Term Loan of ICICI Bank Ltd is secured on Pari Passu basis of
factory land & buildings of Mahboobnagar Unit present and future, and
factory land and buildings of dyeing plant at Yedira Village of
Mahboobnagar district and second Pari Passu charge on fixed assets of
Tandur Unit.
(6) Car Loans are succured by Hypothecation of respective assets and
guaranteed by one director of the Company.
(7) Current maturities of Term Loans include Rs.492.78 lakhs instalments
over due as on the date of Balance Sheet which has since been paid by
the Company Unclaimed dividends do not include any amounts,due and
outstanding, to be credited to investor education and protection fund.
Current maturities of Interest on Term Loans from Banks include Rs.148.54
lakhs over due as on the date of Balance Sheet has since been paid by
the Company.
Note No. 1.1
A Employee Benefits
As per Accounting Standard 15 "Employee Benefits," the disclosures of
Employee Benefits as defined in the Accounting Standard are given
below:
Defined Contributions:
Payments and provisions for employees include Rs.86.24 lakhs (Previous
Year Rs.74.89 lakhs) recognised as expenses in respect of defined
contribution plans.
Defined Benefit Plans:
Gratuity- Gratuity is payable to all the eligible employees of the
Company on resignation, death, permanent disablement in terms of the
Payment of Gratuity Act, 1972
Leave Encashment - Entitlement to annual leave is recognised when they
accrue to employees. Annual leave can either be availed or encashed
subject to a restriction on the maximum number of accumulation of
leaves.
Rs. in lakhs
Note No. 1.2 31 March 2012 31 March 2011
Contingent Liabilities not provided for:
a) Letters of credit 168.52 -
b) Bank Guarantees 2111.97 1.97
c) In respect of Bills Discounted
& outstanding 2561.87 831.64
d) In respect of suits filed but not
acknowledged as debt 26.80 26.80
Note No. 1.3
The operations of the Company predominently comprises of "Manufacturing
of yarn". These activities constitute the Primary segment.
Secondary segmental reporting is made on the basis of geographical
location of the customers. The accounting principles consistently used
in the preparation of the financial statements are also consistently
applied to record income and expenditure in individual segments.
The Company's major exports are made to four principal geographical
areas in the World. In India, its home country, the Company carries out
manufacturing of Yarn and Trading of raw cotton. The following table to
shows the distribution of the Company's turnover by geographical
locations.
Note No. 1.4
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to the Companies Act, 1956 ("the
schedule") issued by Ministry of Corporate Affairs. Previos period's
figures have been recast / restated to conform to the classification
required by the revised Schedule VI.
Mar 31, 2011
31.03.2011 31.03.2010
Rs. in Lacs Rs. in Lacs
1) Contingent Liabilities not provided for:
a) Bank Guarantees 1.97 11.97
b) In respect of Bills Discounted &
outstanding 831.64 2512.28
c) In respect of suits filed but not
acknowledged as debt 26.80 26.80
2) The Company has disputed the amount payable to M/s Surya Lakshmi
Cotton Mills Limited on account of demerger and consequential
transactions. M/s Surya Lakshmi Cotton Mills Limited has filed recovery
suit for Rs. 444.16 lacs plus interest which the company has disputed
and filed a counter claim for Rs. 700.00 lacs. The Company has also
initiated other legal proceedings against the aforesaid company for
recovery of Various Benifits, Refunds and other Dues, which are pending
before the Judicial Authorities. The Company expects no further
liability.
3) Current Assets and Loans and Advances: In the opinion of the Board
of Directors, the current assets, loans and advances are approximately
of the value stated if realised in the ordinary course of business.
The provision for all known liabilities are adequate and not in excess
of the amounts considered reasonably necessary.
4) Confirmations from debtors & creditors are subject to confirmation
and reconciliation
5) Disclosure in accordance with section 22 of Micro, Small and Medium
Enterprises Development Act, 2006
The information as required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company.
6) The operations of the company predominently comprises of
"Manufacturing of yarn". These activities constitute the Primary
segment.
Secondary segmental reporting is made on the basis of geographical
location of the customers. The accounting principles consistently used
in the preparation of the financial statements are also consistently
applied to record income and expenditure in individual segments.
7) Related party disclosure
NAMES OF KEY MANAGEMENT PERSONNEL
Sri U.K.Agarwal
Sri Ritesh K. Agarwal
RELATIVES OF KEY MANAGEMENT PERSONNEL.
Mrs. Usha Bai Agarwal wife of Sri. U.K..Agarwal
Mrs. Arti Agarwal wife of Sri. Ritesh K..Agarwal
Master Viraj Agarwal Son of Sri. Ritesh K. Agarwal
Miss Neysa Agarwal Daughter of Sri. Ritesh K. Agarwal
NAMES OF OTHER ASSOCIATES
M/s Balaji Enterprises
M/s Sri Laxmi Enterprises
U.K.Agarwal (Family Trust)
U.K.Agarwal (HUF)
M/s U.K.Cotton Exports
8) General:
a) Paise are rounded off to the nearest Rs.
b) Previous year's figures have been regrouped / recast wherver
considered necessary to make these comparable with those of the current
year.
Mar 31, 2010
31.03.2010 31.03.2009
Rs in Lacs Rs in Lacs
1) Contingent Liabilities not
provided for:
a) Letters of Credit 1,511.45 1,188.87
b) Bank Guarantees 11.97 11.97
c) In respect of Bills Discounted
& outstanding 1,000.83 658.44
d) In respect of suits filed but
not acknowledged as debt 26.80 26.80
2) Capital commitments For the
amounts of Contracts remaining to be
executed 20.30 332.80
3) The Company has disputed the amount payable to M/s Surya Lakshmi
Cotton Mills Limited on account of demerger and consequential
transactions. M/s Surya Lakshmi Cotton Mills Limited has filed recovery
suit for Rs. 444.16 lacs plus interest, which the company has disputed
and filed a counter claim for Rs. 700.00 lacs. The Company has also
initiated other legal proceedings against the aforesaid company for
recovery of Various Benifits, Refunds and other Dues, which are pending
before the Judicial Authorities. The Company expects no further
liability. Ã Ã
4) The revaluation of Plant & Machinery and other equipment carried out
by an approved valuer in March 1993 resulted in increase in the gross
value of assets by Rs.53337442.The same was adopted on 31.03.1993,
reflection in showing under fixed assets schedule as seperate item by
creating revaluation reserve to that extent. The depreciation on the
balance of revalued assets for the period
5) The operations of the company predominently comprises of
"Manufacturing of yarn". These activities constitute the Primary
segment
Secondary segmental reporting is made on the basis of geographical
location of the customers.The accounting principles consistently used
in the preparation of the financial statements are also consistently
applied to record income and expenditure in individual segments.
The companys major exports are made in four principal geographical
areas in the World. In India, its home country, the company carries out
manufacturing of Yarn and Trading of raw cotton. The following table
shows the distribution of the companys turnover by geographical
locations.
6) Related party disclosure
NAMES OF KEY MANAGEMENT PERSONNEL
Sri U.K.Agarwal
Sri Ritesh K. Agarwal
RELATIVES OF KEY MANAGEMENT PERSONNEL.
Mrs. Usha Bai Agarwal wife of Sri. U.K. Agarwal
Mrs. Arti Agarwal wife of Sri. Ritesh K. Agarwal
Master Viraj Agarwal Son of Sri. Ritesh K. Agarwal
NAMES OF ASSOCIATES
M/s Balaji Enterprises,
M/s Sri Laxmi Enterprises
U.K.Agarwal (Family Trust)
U.K.Agarwal (HUF)
M/s U.K.Cotton Exports
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