Mar 31, 2018
1. Corporate Information:
Virat Industries Limited (âthe Companyâ) is a public Company listed on the Bombay Stock Exchange. The Company is a manufacturer and Exporter of premium quality of dress and sport socks for Men, Ladies and Children. The Company also manufactures high quality football socks for many clubs of Europe. The socks are knitted and processed on imported machinery. The socks of the Company are exported to Switzerland, U.K. and Gulf countries for top end markets.
The manufacturing activity and Registered Office of the Company are located in Navsari, South Gujarat. The Head Office of the Company is situated in Mumbai. The marketing function is carried out at the Mumbai Head Office.
2.1 Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
The Company has not alloted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back in the 5 years immediately preceding the balance sheet date.
Terms and rights attached to equity shares
The equity shares of the Company rank pari passu in all respacts including voting rights and entitlement to dividend.
2.2 Details of shares held by each shareholder holding more than 5% shares:
3 Employee Benefit Plans
(a) Defined Contribution Plan: The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognised (Rs. â000) 2,483 (Year ended 31 March, 2017 (Rs. â000) 2,159) for Provident Fund contributions.
(b) Defined Benefit Plan: Gratuity: Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using âProjected Unit Creditâ method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss. The Company has funded gratuity with Life Insurance Corporation of India.
The disclosures as required under revised Indian Accounting Standard 19 on "Employee Benefits" are as follows: The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:
4 Segment information
The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Indian Accounting Standard (Ind AS) 108 - âSegment Reportingâ. The segment reporting is consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker (âCODMâ).
The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.
Previous year figures are given in brackets.
Segregation of assets (except trade receivable) into secondary segments has not been done as all the assets are located and used in India and the Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.
Information about major customers
Included in revenues arising from direct sales of knitted socks of (In Rs.â000) 138,277, 51,009 and 43,495 (2015-2016 : (In Rs.â000) 81,694, 37,239 and 53,521) are revenues of approximately (In *â000) 265,164 (2016-17: (In Rs.â000) 172,454) which arose from Federation of Migros Co-operative Society, Buffalo Private Label Ltd. and RNA Resources. No other single customers contributed 10% or more to the revenue for both 2017-2018 and 2016-2017.
5 Details of leasing arrangements As Lessee
The Company has entered into finance lease arrangements for vehicles, which provide the Company an option to purchase the asset at the end of the lease period.
The Company has acquired premises on lease, which are in the nature of cancellable operating lease as defined in Accounting Standard 19 âLeasesâ. The lease rent paid and accounted during the year was (Rs. â000) 2049 (Previous year ((Rs. â000) 2249) as per the terms and conditions of the lease agreements and is charged to the Statement of Profit and Loss.
6 The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Companyâs policy and security deposits paid towards premises taken on leave and license basis have not been considered.
7 In the year 2016-17, the Company had received an advance of Rs.â000) 2420/- from a Customer against an order for socks. Since the Customer has wound up its business, the said order has been cancelled. Consequent to this, the said advance has been written back as liabilities no longer required, Note no. 26(ii) and adjusted against the cost of raw material of (Rs.â000) 355/- (Note No. 27) and cost of finished goods Rs.â000) 780/- (Note No. 28) of the said Order.
Notes: First-time adoption of Ind-AS
(i) These financial statements, for the year ended 31st March, 2018, are the first statements prepared by the Company in accordance with Ind-AS. For periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with statutory reporting requirement in India immediately before adopting Ind AS (âprevious GAAPâ).
(ii) Accordingly, the Company has prepared financial statements which comply with Ind-AS applicable for periods ending on or after 31st March, 2018, together with the comparative period data as at and for the year ended 31st March, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1st April, 2016, the Companyâs date of transition to Ind-AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.
(iii) Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind AS.
(iv) The estimates at 1 April 2016 and at March 31, 2016 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies).
(v) Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS.
The Company has applied the following exemptions:
Property, Plant and Equipments were carried in the statement of financial position prepared in accordance with previous GAAP on 31 March 2016. The Company has not elected the option to regard carrying values as at 31 March 2015 as deemed cost at the date of transition. Accordingly the Company has elected to measure its items of Property, Plant & Equipment at the date of transition to In AS. Accordingly an amount of (Rs.â000) 148 has been adjusted against opening reserves on date of transition.
(vi) Under previous GAAP, leasehold properties were presented as Fixed Assets and amortized over the period of the lease. Under Ind AS, such properties have been classified as Non Current Assets (current portion presented as Other Current Assets) and have been amortised over the period of the lease, resulting in decrease in Property, Plant and Equipment (PPE) by (Rs.â000) 499/- (NBV) as at 1st April, 2016 and by (Rs.â000)491/- as at 31st March, 2017 and corresponding increase in Other Non Current Assets by by (Rs.â000) 499/- (NBV) as at 1st April, 2016 and by (Rs.â 000) 491/- as at 31st March, 2017.
Such reclassification has resulted in decrease in Depreciation and amortization expense by (Rs.â000) 8/- for the year ended 31st March 2017 and corresponding increase in Other Expenses, but does not affect profit before tax and total profit for the year ended 31st March, 2017.
(vii) Under previous GAAP, dividends on equity shares (including the tax thereon) was provided in the books of account as proposed by the Directors, pending approval at the Annual General Meeting. Under Ind AS, dividends to shareholders recommended by the Directors after the end of the reporting period but before the financial statements are approved at the Annual General Meeting are not recognised as a liability (including the tax thereon) at the end of the reporting period, but are disclosed separately in the notes. These are recognised when declared by the members in the Annual General Meeting. The effect of this change is an increase in total equity as at 31st March, 2017 of Rs. NIL (1st April, 2016 - (Rs.â000) 14,814/-), but does not affect profit before tax and total profit for the year ended 31st March, 2017.
(viii) Under previous GAAP, actuarial gains and losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss. The actuarial gains for the year ended March 31, 2017 were (Rs.â000) 354/- and the tax effect thereon (Rs.â000) 117/-. This change does not affect total equity, but there is a increase in profit before tax of (Rs.â000) 354/-, and in total profit of (Rs.â000) 354/- for the year ended March 31, 2017.
(ix) Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face of the standalone financial statement of profit and loss. The change does not affect total equity as at April 1, 2016 and March 31, 2017, profit before tax or total profit for the year ended March 31, 2017.
Capital Management and Financial Instrument Disclosures
8 Capital management
The Company manages capital risk in order to maximize shareholdersâ profit by maintaining sound and optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary. There is no change in the overall capital risk management strategy of the Company compared to last year.
The Company monitors the total capital as comprising of debt and equity. Debt includes all short term and long term debts. Equity comprises of total shareholdersâ equity as reported in the financial statements.
The Company is not subject to externally enforced capital regulation.
9 Financial Risk Management
The Companyâs activities expose it to avariety of financial risks: market risk, credit risk, liquidity risk. The Companyâs primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Companyâs exposure to credit risk is influenced mainly by the individual characteristic of each customer.
Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices could affect the Companyâs income or the value of its holdings of financial instruments including cash flow. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks.
All such transactions are carried out within the guidelines set by the Board of Directors. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss.
Currency Risk
The Company undertakes transactions denominated in foreign currencies. Consequently, exposures to exchange rate fluctuations arise. The Companyâs exposure to currency risk relates primarily to the Companyâs operating activities and borrowings when transactions are denominated in a different currency from the Companyâs functional currency.
The above year-end foreign currency exposures have not been hedged by derivative instruments or otherwise.
Credit Risk
Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collatarel, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Companyâs exposure are continuously monitored.
Trade Receivables
The Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses. The Company has taken dealer deposit amounting to Rs. 5 lakh and also certain sales are undertaken based on advance payments from customers, which is considered as collateral and these are considered in determination of expected credit losses, where applicable.
The credit risk on liquid funds such as Fixed deposits with Banks, investment in IRFC Bonds and derivative financial instruments is limited because the counterparties are banks and financial institutions with high credit-ratings.
The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on ongoing basis. To assess whether there is a significant increase in credit risk, the company compares the risk of default occuring on the asset as at the reporting date with the risk of default as at the date of initial recognition.
Liquidity Risk
The Company has established an appropriate liquidity risk management framework for the management of short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Maturity profile of financial liabilities
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.
The amounts included above for financial guarantee contracts are the maximum amounts the Company could be forced to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the reporting period, the Company onsiders that it is more likely than not that such an amount will not be payable under the arrangement.
10 Sensitivity Analysis
Foreign Currency Sensitivity
The sensitivity analysis arises on account of outstanding foreign currency denominated assets and liabilities, including derivative contracts. The Company considers a sensitivity of 10% in applicable foreign currency rates, holding all other variables constant.
The following tables demonstrate the sensitivity to a reasonably possible change in USD, GBP and AUD exchange rates, with all other variables held constant.
If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-tax Equtiy Effect.
The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.
Interest Rate sensitivity
The sensitivity analyses below have been determined based on exposure to interest rate for both derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities, analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for the whole year.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:
Offsetting of balances
Certain financial assets and financial liabilities are subject to offsetting where there is currently a legally enforceable right to set off recognized amounts and the Company intends to either settle on a net basis, or to realise the asset and settle the liability, simultaneously. Certain derivative financial assets and financial liabilities are subject to master netting arrangements, whereby in the case of insolvency, derivative financial assets and financial liabilities will be settled on a net basis.
Our Company has not offset any financial asset and financial liability.
11 Fair Value Measurement Fair value hierarchy
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities
Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
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. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
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 with listed instruments where market is not liquid and for unlisted instruments.
The fair value of trade receivables and payables is considered to be equal to the carrying amounts of these items due to their short - term nature.
There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.
12 Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2017
1. Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
The Company has not alloted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back in the 5 years immediately preceding the balance sheet date.
Terms and rights attached to equity shares
The equity shares of the Company rank pari passu in all respects including voting rights and entitlement to dividend.
2. Details of shares held by each shareholder holding more than 5% shares:
Note: 1) Hypothecated by deposit of title deeds of leasehold land and by a charge on buildings, structures, fixtures and fittings, immovable plant and machinery thereon. further secured by a charge on the company''s stocks, book debts, other receivables, movable properties and assets, etc., both present and future, for ''loans repayable on demand'', closing balance as at 31 March, 2017 is NIL.
2) For motor car capitalized during the year Rs. 24,26,500, the company is in the process of registering the motor car in its name.
3. Employee Benefit Plans
(a) Defined Contribution Plan : The Company makes Provident fund and other funds contributions to defined contribution plans for qualifying employees. The Company recognized Rs.2,159,471 (Year ended 31 March, 2016 Rs.1,967,149) for Provident Fund contributions.
(b) Defined Benefit Plan: Gratuity : Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss. The Company has funded gratuity with Life Insurance Corporation of India.
The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follows:
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
DISCLOSURE UNDER ACCOUNTING STANDARDS
4. Segment information
The principal business of the company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".
The Secondary Segment are identified based on the geographical location of customers. The secondary geographical segments of the company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.
ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS
5. Details of Leasing Arrangements As Lessee
The Company has entered into finance lease arrangements for vehicles, which provide the Company an option to purchase the asset at the end of the lease period.
The Company has acquired premises on lease, which are in the nature of cancellable operating lease as defined in Accounting Standard 19 "Leases". The lease rent paid and accounted during the year was Rs.2,049,167 (Previous year Rs.2,248,664) as per the terms and conditions of the lease agreements and is charged to the Statement of Profit and Loss.
6. The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company''s policy and security deposits paid towards premises taken on leave and license basis have not been considered.
ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS
7. The Company had received an advance of Rs.2,419,780/- from a Customer against an order for socks. Since the Customer has wound up its business, the said order has been cancelled. Consequent to this, the said advance has been written back as liabilities no longer required, Note no. 20(ii) and adjusted against the cost of raw material of Rs.354,670/- (Note No. 21) and cost of finished goods Rs.780,122 (Note No. 22) of the said Order.
8. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2016
1. Employee Benefit Plans
(a) Defined Contribution Plan
The Company makes Provident fund and other funds contributions to defined contribution plans for. qualifying employees. The Company recognized Rs. 1,967,149 (Year ended 31 March, 2015 Rs 1,668,602) for Provident Fund contributions.
(b) Defined Benefit Plan: Gratuity
Provision is made for gratuity and compensated absences based upon actuarial valuation done at the end of every financial year using ''Projected Unit Credit'' method and it covers all regular employees. Gains and losses on changes in actuarial assumptions are accounted for in the Statement of profit and loss.
The Company has funded gratuity with Life Insurance Corporation of India.
The disclosures as required under revised Accounting Standard 15 on "Employee Benefits" are as follows:
The following table sets out the funded status (unfunded in the previous year) of the defined benefit schemes and the amount recognized in the financial statements:
2. Segment information
The principal business of the Company is of manufacturing of socks. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting".
The Secondary Segments are identified based on the geographical location of customers. The secondary geographical segments of the Company consist of regions of United Kingdom, Switzerland, UAE, India and Rest of the World.
Previous year figures are given in brackets.
Segregation of assets (except trade receivable) into secondary segments has not been done as all the assets are located and used in India and the Company is of the view that it is not practical to reasonably allocate such assets and an ad-hoc allocation will not be meaningful.
3. Related Party Transactions Details of related parties: Description of relationship |
Names of related parties: |
Promoter Company |
Shapoorjee Chandabhoy Finvest Private Limited |
Associates |
Armayesh Enterprise LLP (up to 31 October, 2015) |
Key Management Personnel (KMP) |
Key Management Personnel: |
and their Relatives |
Mr. Adi F. Madan - Managing Director |
Entities over which promoter group has |
Mrs. Ayesha K. DadyBurjor - Whole-time Director (w.e.f. 1 September, 2014) Their Relatives: Mr. Naozer J. Aga Mr. Armand N. Aga Mr. Kaizad R. DadyBurjor Mrs. Ayesha A. Madan Mr. Jehan Adi Madan Armayesh Consultancy and Agencies Private Limited |
significant influence |
(Up to 31 July, 2015) |
Armayesh Embroideries Private Limited Note: Related parties have been identified by the Management. |
4 The Company has not granted any loans / advances in the nature of loans as stipulated in the Clause 32 of the Listing Agreement with the Stock Exchanges. For this purpose, the loans to employees as per the Company''s policy and security deposits paid towards premises taken on leave and license basis have not been considered.
5. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2015
1. Corporate Information:
Virat Industries Limited ("the Company") is a Manufacturer and Exporter
of premium quality of dress and sport socks for Men, Ladies and
Children. The Company also manufactures high quality football socks for
many prestigious clubs of Europe. The socks are knitted and processed
on imported machinery. The socks of the Company are exported to
Switzerland, U.K and Gulf countries for top end markets.
The manufacturing activity and Registered Office of the Company are
located in Navsari, South Gujarat. The Head Office of the Company is
situated in Mumbai. The marketing function is carried out at the Mumbai
Head Office.
Virat Industries Limited is a public imited Company, listed on the
Bombay Stock Exchange.
Particulars As at As at
31 March, 2015 31 March, 2014
Rs. Rs.
2. Contingent Liabilities and
Commitments (to the extent
not provided for)
(i) Contingent Liabilities
Claims against the Company not
acknowledged
as debt Not Not
Ascertained Ascertained
* For Assessment Year 2005-06 and 2006-07,
the Income Tax Department has adjusted the
carried forward of losses and unabsorbed
depreciation in computing the benefit under
section 10B of the Income Tax Act, 1961.
During the year Company received favourable
order in Income-tax Appellate Tribunal for
the Assessment Year 2006-07 and the Income-tax
Department, Navsari has referred the said
matter to the High Court of Gujarat at
Ahmedabad. Hence, the matter has been
referred to the High Court of Gujarat at
Ahmedabad for Assessment Year 2005-06 and
2006-07. Additional liability, if any,
is not ascertained.
(ii) Commitments
Estimated amount of contracts remaining
to be executed
on capital account and not provided for 200,000 -
Total 200,000 -
3. Employee Benefit Plans
(a) Defined Contribution Plan
The Company makes Provident fund and other funds contributions to
defined contribution plans for qualifying employees. The Company
recognised Rs. 1,668,602 (Year ended 31 March, 2014 Rs. 1,501,137) for
Provident Fund contributions.
(b) Defined Benefit Plan: Gratuity
Provision is made for gratuity and compensated absences based upon
actuarial valuation done at the end of every financial year using
'Projected Unit Credit' method and it covers all regular employees.
Gains and losses on changes in actuarial assumptions are accounted for
in the Statement of profit and loss.
During the previous year the Company funded gratuity with LIC of India.
The disclosures as required under revised Accounting Standard 15 on
"Employee Benefits" are as follows: The following table sets out the
funded status (unfunded in the previous year) of the defined benefit
schemes and the amount recognised in the financial
statements:
4. Segment information
The principal business of the Company is of manufacturing of socks. All
other activities of the Company revolve around its main business.
Hence, there is only one primary reportable business segment as defined
by Accounting Standard 17 - "Segment Reporting".
The Secondary Segments are identified based on the geographical
location of customers. The secondary geographical segments of the
Company consist of regions of United Kingdom, Switzerland, UAE, India
and Rest of the World.
5. Related Party Transactions Details of related parties:
Description of relationship Names of related parties:
Promoter Company Shapoorjee Chandabhoy Finvest
Private Limited
Associates Armayesh Enterprise LLP
Key Management Personnel (KMP) Key Management Personnel:
and their Relatives Mr. Adi F. Madan - Managing
Director
Mrs. Ayesha K. DadyBurjor -
Whole-time Director
(w.e.f. 01/09/2014)
Their Relatives:
Mr. Naozer J. Aga
Mr. Armand N. Aga
Mr. Kaizad R. DadyBurjor
Mrs. Ayesha A. Madan
Mr. Jehan Adi Madan
Entities over which promoter group Armayesh Consultancy and Agencies
Private Limited
has significant influence Armayesh Embroideries Private
Limited
Note: Related parties have been identified by the Management.
6. Details of Leasing Arrangements As Lessee
The Company has acquired premises on lease, which are in the nature of
cancellable operating lease as defined in Accounting Standard 19
"Leases". The lease rent paid and accounted during the year was Rs.
1,138,694 (Previous year Rs. 809,400) as per the terms and conditions
of the lease agreements and is charged to the Statement of Profit and
Loss.
7. The Company has not granted any loans / advances in the nature of
loans as stipulated in the Clause 32 of the Listing Agreement with the
Stock Exchanges. For this purpose, the loans to employees as per the
Company's policy and security deposits paid towards premises taken on
leave and license basis have not been considered.
8. Effective from 1 April, 2014, the Company has charged depreciation
based on the remaining useful life of the assets as per the
requirements of Schedule II of the Companies Act, 2013 ("the Act").
Consequent to this, depreciation charge for the year ended on 31 March,
2015 is higher by Rs. 1,763,765. Pursuant to the transition provisions
prescribed in Note 7(b) of Schedule II to the Companies Act, 2013, the
Company has fully depreciated the carrying value of assets, net of
residual value, where the remaining useful life of the asset was
determined to be nil as on 1 April, 2014, and has adjusted an amount of
Rs. 623,393 (Net of Deferred Tax of Rs. 307,920) against opening
Surplus balance in the Statement of Profit and Loss under Reserves and
Surplus in respect of assets wherein the remaining useful life of the
assets is Nil.
9. Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
1 Corporate Information:
Virat Industries Limited is a manufacturer and Exporter of premium
quality of dress and sport socks for Mens, Ladies and Children. The
Company also manufactures high quality football socks for many
prestigious clubs of Europe. The socks are knitted and processed on
imported machinery. The socks of the Company are exported mainly to
Switzerland, U.K and Gulf countries for top end markets. The
manufacturing activity and Registered Office of the Company are located
in Navsari, South Gujarat. The Head Office of the Company is situated
in Mumbai. The marketing function is carried out at the Mumbai Head
Office. Virat Industries Limited is a Public Limited Company, listed
on the Bombay Stock Exchange.
Particulars As at As at
31 March, 2014 31 March, 2013
2 Contingent Liabilities and
Commitments (to the extent not
provided for)
i Contingent Liabilities
a Claims against the Company not
acknowledged as debt Not Not
Ascertained Ascertained
- For Assessment Year 2005-06 and 2006-07, the Income Tax Department
has adjusted the carried forward of losses and unabsorbed depreciation
in computing the benefit under section 10B of the Income Tax Act, 1961.
The matter has been referred to the High Court of Gujarat at Ahmedabad
for Assessment Year 2005-06 and is pending before the Income Tax
Appellate Tribunal for Assessment Year 2006-07. Additional liability,
if any, is not ascertained.
Total - -
DISCLOSURE UNDER ACCOUNTING STANDARDS
3 Employee Benefit Plans
(a) Defined Contribution Plan
The Company makes Provident fund and other funds contributions to
defined contribution plans for qualifying employees. The Company
recognised Rs. 1,501,137/- (Year ended 31st March, 2013 Rs. 1,335,804/-)
for Provident Fund contributions.
(b) Defined Benefit Plan: Gratuity
Provision is made for gratuity and compensated absences based upon
actuarial valuation done at the end of every financial year using
''Projected Unit Credit'' method and it covers all regular employees.
Gains and losses on changes in actuarial assumptions are accounted for
in the statement of profit and loss. During the year the Company
funded gratuity with LIC of India.
The disclosures as required under revised Accounting Standard 15 on
"Employee Benefits" are as follow: The following table sets out the
funded status(unfunded in the previous year) of the defined benefit
schemes and the amount recognised in the financial statements:
4 Segment information
The principal business of the company is of manufacturing of socks. All
other activities of the Company revolve around its main business.
Hence, there is only one primary reportable business segment as defined
by Accounting Standard 17 - "Segment Reporting".
The Secondary Segment are identified based on the geographical location
of customers. The secondary geographical segments of the company
consist of regions of United Kingdom, Switzerland, UAE, India and Rest
of the World.
Previous year figures are given in brackets.
Segregation of assets (except trade receivable) into secondary segments
has not been done as all the assets are located and used in India and
the Company is of the view that it is not practical to reasonably
allocate such assets and an ad-hoc allocation will not be meaningful.
5 Related Party Transactions
Details of related parties:
Description of relationship Names of related parties:
Promoter Company Shapoorjee Chandabhoy Finvest Private Limited
Key Management Personnel (KMP) Adi F. Madan
Entities over which promoter group has Armayesh Consultancy and
Agencies Private Limited
significant influence Armayesh Embroideries Private Limited
Associates Armayesh Enterprise LLP
Note: Related parties have been identified by the Management.
6 Details of Leasing Arrangements
As Lessee
The Company has acquired premises on lease, which are in the nature of
cancellable operating lease as defined in Accounting Standard 19
"Leases". The future lease obligations payable within one year
aggregate to NIL (Previous Year Nil). The lease rent paid and accounted
during the year was Rs. 809,400/- (Previous year Rs.735,480/-) as per the
terms and conditions of the lease agreements and is charged to the
Statement of Profit and Loss.
7 The Company has not granted any loans / advances in the nature of
loans as stipulated in the Clause 32 of the Listing Agreement with the
Stock Exchanges. For this purpose, the loans to employees as per the
Company''s policy and security deposits paid towards premises taken on
leave and license basis have not been considered.
8 Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2013
1. Corporate tofanmaiion
Virat Industries Limited is a Manufacturer and Exporter of premium
quality of dress and sport socks for .Mens, Ladies and Children. The
Company also manufactures high quality football socks for many
prestigious clubs of Europe. The socks are knitted and processed on
imported machinery.
The installed capacity of the Company is 50 lakhs pairs per annum. 95
to 96 % of the revenue of the Company is derived from export sales. The
socks of the Company are exported to Switzerland, U.K and Gulf
countries for top end markets.
The manufacturing activity and Registered Office of the Company are
located in Navsari, South Gujarat. The Head Office of the Company is
situated in Mumbai. The marketing function is carried out at the Mumbai
Head Office.
Virat Industries Limited is a public limited Company, listed on the
Bombay Stock Exchange.
2 Employee Benefit Plans
(a) Defined Contribution Plan
The Company makes Provident Fund contributions to defined contribution
plans for qualifying employees. The Company recognised Rs. 798,666 (Year
ended 31 March, 2012 Rs. 1,204,302) for Provident Fund contributions.
(b) Defined Benefit Plan: Gratuity
Provision is made for unfunded gratuity and compensated absences based
upon actuarial valuation done at the end of every financial year using
"Projected Unit Credit" method and it covers all regular employees.
Gains and losses on changes in actuarial assumptions are accounted for
in the Profit and Loss account.
The disclosures as required under revised Accounting Standard 15 on
"Employee Benefits" are as follow: The Companies gratuity plan is not
funded and liability is provided for in the account.
3 Segment information
The principal business of the Company is of manufacturing of socks. All
other activities of the Company revolve around its main business.
Hence, there is only one primary reportable business segment as defined
by Accounting Standard 17 - "Segment Reporting".
The Secondary Segments are identified based on the geographical
location of customers. The secondary geographical segments of the
Company consist of regions of United Kingdom, Switzerland, UAE, India
and Rest of the World.
4 The Company has not granted any Joans / advances in the nature of
loans as stipulated in the Clause 32 of the Listing Agreement with the
Stock Exchanges. For this purpose, the loans to employees as per the
Company''s policy and security deposits paid towards premises taken on
leave and license basis have not been considered.
5 Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2012
1. Corporate Information
Virat Industries Limited is manufacturer and exporter of premium
quality of dress and sport socks for Mens, Ladies and Children. The
Company also manufactures high quality football socks for many
prestigious clubs of Europe. The socks are knitted and processed on
state of art imported machinery. The installed capacity of the Company
is 47 lakhs pairs per annum. 95 to 96% sale revenue of the Company is
derived from export sales. The socks of the Company are exported to
Switzerland, U.K and Gulf countries for top end markets.
The manufacturing activity and registered office of the Company are
located in Navsari, South Gujarat. The Head Office of the Company is
situated in Mumbai. The marketing function is carried out at Mumbai
Head Office.
Virat Industries Limited is public limited Company, listed on Bombay
Stock Exchange.
Particulars As at
31 March, 2012 As at
31 March, 2011
Rs. Rs.
2 Contingent Liabilities and
Commitments (to the extent not provided for)
(i) Contingent Liabilities Not Not
Ascertained Ascertained
(a) Claims against the company
not acknowledged as debt
- For Assessment Year 2005-06 and
2006-07, the Income Tax Department has
adjusted the carried forward of losses
and unabsorbed depreciation in computing
the benefit under section 10B of the
Income Tax Act, 1961. The matter has
been referred to the High Court of
Gujarat at Ahmedabad for Assessment Year
2005-06 and is pending before the Income
Tax Appellate Tribunal for Assessment
Year 2006-07. Additional liability,
if any, is not ascertained.
3 Employee Benefit Plans
(a) Defined Contribution Plan
The Company makes Provident Fund contributions to defined contribution
plans for qualifying employees. The Company recognised Rs. 1,204,302
(Year ended 31 March, 2011 Rs. 1,103,333) for Provident Fund
contributions.
(b) Defined Benefit Plan: Gratuity
Provision is made for unfunded gratuity and compensated absences based
upon actuarial valuation done at the end of every financial year using
'Projected Unit Credit' method and it covers all regular employees.
Gains and losses on changes in actuarial assumptions are accounted for
in the Profit and Loss Account.
4 Segment information
The principal business of the company is of manufacturing of socks. All
other activities of the Company revolve around its main business.
Hence, there is only one primary reportable business segment as defined
by Accounting Standard 17 - "Segment Reporting".
The Secondary Segment are identified based on the geographical location
of customers. The secondary geographical segments of the company
consist of regions of United Kingdom, Switzerland, UAE, India and Rest
of the World.
Previous year figures are given in brackets. Segregation of assets
(except sundry debtors) into secondary segments has not been done as
all the assets are located and used in India and the. Company is of the
view that it is not practical to reasonably allocate such assets and an
ad-hoc allocation will not be meaningful.
5 the Company has not granted any loans / advances in the nature of
loans as stipulated in the Clause 32 of the Listing Agreement with the
Stock Exchanges. For this purpose, the loans to employees as per the
Company's policy and security deposits paid towards premises taken on
leave and license basis have not been considered.
6 The Revised Schedule VI has become effective from 1 April, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2011
1. Capital Commitments:
The estimated amounts of contracts remaining to be executed on capital
account, and not provided for (net of advance) as at March 31,2011 NIL
(Previous year:Rs 206,919/-)
2. Contingent Liabilities
a) For Assessment Years 2005-06 and 2006-07 the Income Tax Department
has adjusted the carried forward losses and unabsorbed depreciation in
computing the benefit u/s 10B of the Income Tax Act, 1961.
The matter has been referred to the High Court of Gujarat at Ahmedabad
for Assessment Year 2005-06 and is pending before the Income Tax
Appellate Tribunal for Assessment Year 2006-07. Additional liability,
if any, is not ascertained.
b) For Assessment Year 2009-10 the Income tax department has served an
intimation u/s 143(1) of the Income Tax, 1961 demanding Rs 81,70,174/-.
The company has also preferred rectification application, since the
demand has arisen on account of non-setting off of the brought forward
loss against the business income for the year under consideration. The
Company is in appeal with the Commissioner of Income-Tax (Appeal).
Additional liability of Rs 54,20,173/- may arise on the said matter.
3. Depreciation
a) Depreciation on fixed assets has been provided on Written Down Value
basis in accordance with the provisions of section 205(2)(a) of the
Companies Act, 1956, in respect of the assets acquired/ purchased upto
March 31,1995.
b) Depreciation on assets acquired/purchased since April 1, 1995, has
been provided on Straight Line Basis in accordance with the provisions
of section 205(2)(b) of the Companies Act, 1956.
c) The depreciation under sections 205(2)(a) and 205(2)(b), as stated
above, has been provided at the rates specified in Schedule XIV of the
Companies Act, 1956, and has been provided on pro-rata basis according
to the period each asset was put to use during the period.
4. Contributions are made to Provident Fund and Family Pension Fund
which covers all regular employees. Amount recognized as expense in
respect of these defined contribution plans, aggregate to Rs 1,103,333/-
(previous year Rs 952,016/-).
Provision is made for unfunded gratuity and compensated absences based
upon actuarial valuation done at the end of every financial year using
'Projected Unit Credit' method and it covers all regular employees:
Gains and losses on changes in actuarial assumptions are accounted for
in the Profit and Loss account.
The above excludes amounts pertaining to gratuity and compensated
absences for the year as the same is provided on the basis of the
actuarial valuation for the Company as a whole.
Computation of Net Profit in accordance with the provisions of section
349 of the Companies Act, 1956, has not been given as
commission by way of percentage of profits is not payable for the year
to the Directors of the Company.
5. The principal business of the Company is of manufacturing socks.
All other activities of the Company revolve around its main business.
Hence, there is only one primary reportable business segment as defined
by Accounting Standard 17 - "Segment Reporting" (AS 17).
The Secondary Segments are identified based on the geographical
location of customers. The secondary geographical segments of the
company consist of regions of United Kingdom, Switzerland, UAE, India
and Rest of the World.
*As certified by management and relied upon by the auditors.
"Actual production excludes 1,160,107 pairs (previous year 1,461,400
pairs) manufactured by the job workers.
6. Assets acquired on Lease
a) The Company has acquired premises on lease, which are in the nature
of Operating lease as defined in Accounting Standard 19 "Leases". The
future lease obligations payable within one year aggregate to NIL
(Previous Year Rs. 288,000/-). The lease rent paid and accounted during
the year was Rs 288,000/- (Previous Year Rs 205,219/-) as per the terms
and conditions of the lease agreements and is charged to the profit and
loss account.
general description of Lease terms:
(i) Lease rentals are charged on the basis of agreed terms. (ii) Asset
is taken on lease over a period of 36 months.
7. The Company has not granted any loans / advances in the nature of
loans as stipulated in the Clause 32 of the Listing Agreement with the
Stock Exchanges. For this purpose, the loans to employees as per the
Company's policy and security deposits paid towards premises taken on
leave and license basis have not been considered.
8. The dues outstanding to Micro, Small and Medium Enterprises under
the Micro, Small and Medium Enterprises Development Act, 2006 are based
on the information available with the Company and hence the disclosures
as required under the said Act have not been given.
9. Figures of the previous year have been regrouped wherever
necessary to correspond with those of the current year.
Mar 31, 2010
1. Capital Commitments:
The estimated amounts of contracts remaining to be executed on capital
account, and not provided for (net of advance) as at March 31, 2010 Rs.
206,919/- (Previous year: Rs. 348,660/-)
Current Year Previous Year
2. Contingent Liabilities Rupees Rupees
Guarantees given by the Bank on
behalf of the Company to Excise/
Customs authorities NIL 335,000
3. Depreciation
a) Depreciation on fixed assets has been provided on Written Down Value
basis in accordance with the provisions of section 205(2)(a) of the
Companies Act, 1956, in respect of the assets acquired/purchased upto
March 31,1995.
b) Depreciation on assets acquired/purchased since April 1, 1995, has
been provided on Straight Line Basis in accordance with the provisions
of section 205(2)(b) of the Companies Act, 1956.
c) The depreciation under sections 205(2)(a) and 205(2)(b), as stated
above, has been provided at the rates specified in Schedule XIV of the
Companies Act, 1956, and has been provided on pro-rata basis according
to the period each asset was put to use during the period.
4. Contributions are made to Provident Fund and Family Pension Fund
which covers all regular employees. Amount recognized as expense in
respect of these defined contribution plans, aggregate to Rs.952,016/-
(previous year Rs. 718,917/-).
Provision is made for gratuity and leave encashment based upon
actuarial valuation done at the end of every financial year using
Projected Unit Credit method and it covers all regular employees.
Gains and losses on changes in actuarial assumptions are accounted for
in the Profit and Loss account.
5. The principal business of the Company is of manufacturing socks.
All other activities of the Company revolve around its main business.
Hence, there is only one primary reportable business segment as defined
by Accounting Standard 17 - "Segment Reporting" (AS 17).
The Secondary Segments are identified based on the geographical
location of customers. The secondary geographical segments of the
company consist of regions of United Kingdom, Switzerland, India and
Rest of the World.
6. As required under Accounting Standard 18 on "Related party
disclosures" (AS 18), following are details of transactions during the
period with the related parties of the Company:
(a) Names of related parties and description of relationship
Promoter Company - (which can Shapoorjee Chandabhoy Finvest
Pvt. Ltd.
exercise significant influence)
Others Related Company -
(Other entities Armayesh Consultancy and Agencies
Pvt. Ltd.
which can exercise significant
influence) Indijack Limited
Key Management Personnel Mr. Adi F. Madan
7. Assets acquired on Lease
The Company has acquired premises on lease, which are in the nature of
Operating lease as defined in Accounting Standard 19 "Leases". The
future lease obligations payable within one year aggregate to Rs.
288,000/- (Previous Year Rs. 127,700/-). The above lease agreement was
extended during the year for a period of one year. The lease rent paid
and accounted during the year was Rs. 205,219/- (Previous Year Rs.
219,000/-) as per the terms and conditions of the lease agreement and
is charged to the profit and loss account.
8. The Company has not granted any loans advances in the nature of
loans as stipulated in the Clause 32 of the Listing Agreement with the
Stock Exchanges. For this purpose, the loans to employees as per the
Companys policy and security deposits paid towards premises taken on
leave and license basis have not been considered.
9. 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, as required under the said
Act have been given accordingly.
10. Figures of the previous year have been regrouped wherever
necessary to correspond with those of the current year.
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