| (i) Nature of Security
(A) Secured against joint equitable mortgage of all immovable
properties both present and future ranking pari passu inter se and
Hypothecation of all movable properties both present and future (Save
and Except Book Debts) including movable machinery machinery spares,
tools and accessories, subject to prior charge created and/or to be
created in favour of Company's Bankers for Working Capital Facilities.
(iv) During the previous year State Bank of India and IDBI bank has
recalled the loan on account of breach of loan covenant, while, so the
same loans have been classified as current maturities of long term
borrowings for the current year. Interest has been provided as per last
communicated rates or at the rate debited by Bank.
(v) Includes Rs. 25,000/- (Previous Year Rs. 25,000/-) payable to Director.
(1) Valued at cost or net realizable value whichever is lower
(2) Valued at cost
(3) At Net realisable value
(a) Excludes inventory of cotton Rs. 5,37,18,385/- (net of VAT Rs.
26,66,596/-) [P.Y. Rs. 6,82,80,224/- (net of VAT Rs. 34,14,0121-)] for the
current year, lying with the Company in respect of which, as per the
terms of purchase agreement, the property in and title of goods shall
continue with the suppliers until and to the extent payment is not made
to them.
(b) in view of (a) above, unpaid suppliers of cotton as at September
30, 2014 amounting ^5,99,99,140/- (P.Y. Rs.6,98,03,788/-)whose material
have been consumed on or before September 30, 2014 have lien over the
work- in-progress and finished goods produced out of consumption of
those cotton, to the extent of the outstanding amount due to them.
2. OTHER NOTES TO ACCOUNTS
(a) Contingent Liabilities and Commitments (to the extent not provided
for) (Amount in Rs.)
As at 30.09.2014 As at 30.09.2013
(i) Contingent Liabilities
(a) Claims against the Company
not acknowledged as debt -
Labour Matters 10,27,271 5,65,877
(b) Losses on account of
foreign exchange difference,
excluding interest, 11,78,81,338 11,78,81,338
if any, on unilateral
cancellation of Forward
Contract by State Bank of
India without authorisation
form the Company for which
the Company has filed a suit in
the Hon'ble High Court at
Calcutta against the Bank.
The said suit has been
transfered to the City
Civil Court in Ahmedabad
pursuant to the order dated
18th day of August 2014 of
Calcutta High
Court.
11,89,08,609 11,84,47,215
(ii) Commitments
Estimated amount of contracts
remaining to be executed on 15,00,000 -
Capital Account and not provided for
15,00,000 -
12,04,08,609 11,84,47,215
(b) As of the Balance Sheet date, the Company's net foreign currency
exposures that are not hedged by a derivative instrument or otherwise
is Rs. Nil (PY Rs. Nil)
(c) Segment Reporting
In accordance with the requirements of Accounting Standard 17 -
'Segment Reporting' the Company has determined its business segment as
Textile Products. Since 100% of the Companys' business is from Textile
Products, there are no other primary reportable segments. Thus the
segment revenue, segment results, total carrying amount of segment
liabilitites, total cost incurred to acquired segment assets, the total
amount of charge for depreciation and amortisation during the year are
all as reflected in the financial statements for the year ended
September 30, 2014 and as on that date. Also there being no business
outside India, the entire business has been considered as single
geographic segment.
(g) Disclosure pursuant to Accounting Standarad -15 (Revised) "Employee
Benefits": a. Defined Contribution Plans :
Amount of Rs. 66,99,302/- (Previous year Rs. 63,53,416/-) is recognised as
expense and included in "Employee Benefits Expenses" in Note - 21 to
the Statement of Profit & Loss.
(h) Related Party Disclosures
Related party disclosures, as required by AS-18 "Related Party
Disclosures", are given below:
1. Relationships:
(i) Key Management Personnel and their relatives :
Mr. Umang Kanoria Ms. Stuti Kanoria
Mrs. Anuradha Kanoria Master Satvik Kanoria (ii) Enterprises over which
the key management personnel and/or their relatives have significant
influence :
B.T. Investments Pvt. Ltd. Innova Properties Pvt. Ltd.
Cosmos Resources Pvt. Ltd. Milan Agencies Pvt. Ltd.
Kanco Tea & Industries Ltd. Nidhi Pvt. Ltd.
E.T. Resources Pvt. Ltd. OCL Investments & Leasing Ltd.
Facitcon Investments Pvt. Ltd. ST. Investment Pvt. Ltd.
Suryasakti Commodities Pvt. Ltd.
(i) The Company's appeal filed on 18/01/2013 in Appellate Authority for
Industrial and Financial Reconstruction u/s 25(1) of the Sick
Industrial Companies (Special Provisions) Act,1985 (SICA, 1985) for
reference bearing no.3/2012 filed u/s 15(1) of the SICA, 1985 against
the order passed by the Board of Industrial and Financial
Reconstruction (BIFR) is pending. The Company's reference bearing
no.6/2014 filed u/s 15(1) of SICA, 1985 filed with BIFR is also
pending.
Q) The Company has accumulated losses of Rs. 76,31,01,034/- as on
September 30, 2014, resulting in complete erosion of its net worth. The
Company has no specific plan to wind up its operations in the near
future. The management is of the view that long term prospects of the
Company appear better with overall turnaround in the textile industry,
stability in the cotton price. In view of this the financial statement
have been prepared on a going concern basis.
In addition to this management also expect reliefs/concessions on
sanction of rehabilitation/ revival package by the Board of Industrial
and Financial Reconstructions ( BIFR) as company is already involved in
discussion with its lenders for this purpose which will help the
Company to run its operations in coming years.
(k) The previous period figures have been regrouped/reclassified,
wherever necessary to conform to the current year presentation.
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