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Notes to Accounts of VIP Clothing Ltd.
Mar 31, 2025
^ The members of the Company through Postal Ballot on January 10, 2023 had approved issue of 1,01,50,000. Further, the allotment of equity warrants was undertaken on January 25, 2023 on receipt of 25% consideration towards subscription and allotment of warrants. The balance 75% part consideration from the warrant holders received on various dates upto July 24, 2024 towards exercising the equity and consequently, the Securities Allotment Committee approved the allotment of 35,50,000 equity shares upon conversion of warrants on July 24, 2024. The warrants are converted into equity and same form part of listing and paid up capital of the Company.
^ The members of the Company had approved the preferential issue of 93,06,000 equity to person(s) belonging to Non-Promoter category at the Extra Ordinary General Meeting held on August 5, 2024.Further, the Company had allotted the 39,83,000 Equity shares on October 3, 2024 by passing resolution by circulation under section 175 of the Companies Act, 2013 on against the receipt of money from the subscriber various dates upto October 3, 2024. The Company have received the listing and trading approval from NSE and BSE and same form part of listing and paid up capital of the Company.
(ii)Rights, preferences and restrictions attached to shares
Equity Shares: The Company has only one class of equity shares having par value of INR 2 per share. Each shareholder is entitled to one vote per share held. They entitle the holders to participate in dividends and dividend, if any declared is payable in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the 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.
^ The member of the Company through Postal Ballot on January 10, 2023 had approved issue of 1,01,50,000 share warants convertible into equity shares @ INR 44.50 per share warrant, the Company has issued 35,00,000 share warrants convertible into equity shares to promoter entities and 66,50,000 share warrants convertible into equity shares to non-promoter entities. Further, the allotment of equity warrants was undertaken on January 25, 2023 on receipt of 25% of the issue price (i.e. INR 11.13 per warrant) as warrant subscription money. The balance 75% of the issue price (i.e. INR 33.37 per warrant) part consideration from promoter and non-promoter entities received on various dates upto July 24, 2024 towards exercising the equity and consequently, the Securities Allotment Committee approved the allotment of 10,00,000 equity shares to promoter entities and 25,50,000 equity shares to non-promoter entities upon conversion of warrants on July 24, 2024. The warrants are converted into equity and same form part of listing and paid up capital of the Company.
^ The members of the Company approved the preferential issue of 1,23,03,000 fully Convertible equity warrants with each warrant convertible into or exchangeable for One fully paid-up equity share of the Company to person(s) belonging to Non-Promoter category at the Extra Ordinary General Meeting held on August 5, 2024. As per Special Resolution, passed by the members, an amount equivalent to twenty-five per cent of the consideration towards subscription and allotment of warrants was received by Company various date upto 03.10.2024, Consequent Security Allotment Committee allotted 1,14,05,000 warrants on October 3, 2024, by passing resolution by circulation under section 175 of the Companies Act, 2013.
The warrants are allotted to the investors reflecting in the account under the temporary ISIN and upon excising the allotment of equity on payment of remaining seventy-five percent amount the warrants will be converted and transfer to the main ISIN post on receipt of listing and trading approval.
I. IDBI and SBI Guaranteed Emergency Credit Line (''GECL'') term loan secured by way of hypothecation of inventories, book debts and movable property, plant and equipment of the Company on paripassu basis with members in consortium and further secured by way of second charge of property situated at Thingalur (Tamil Nadu), Edyaarpalayam (Tamil Nadu), Kon village-Kalyan (Maharashtra).
ii. Vehicle loan is secured by vehicle.
C. Period and amount of default:
The Company has made no defaults in the payment of principal or interest during the year ended March 31, 2025.
D. The Company has also satisfied all other debt covenants prescribed in the terms of bank loan.
^ The Company entered into the Foreign Currency Non-Resident Borrowing (''FCNRB'') Agreement (hedged item) with SBI on August 02, 2024 and raised finance of US $ 46,00,000. The said FCNRB loan was raised to finance for concessional interest rate compared to interest rate on cash credit . The rate of interest on the FCNRB loan is based on Secured Overnight Finance Rate (SOFR) for 6-month period 4.50% p.a.
* Includes interest accrued on borrowings.
The FCNRB loan repayment is expected in a single bullet for principal after 180 days and at monthly intervals for interest. In order to hedge the foreign exchange cash flow risk, the Company has entered into forward contracts to hedge the foreign exchange risk on principal & interest payable in USD. The forward contracts entered into by the Company is a derivative as defined in Ind AS 109.
Cash credit and SBI FCNRB loan secured by way of hypothecation of inventories, book debts and movable property, plant and equipment of the Company and further secured by way of first charge of property situated at Thingalur (Tamil Nadu), Edyaarpalayam (Tamil Nadu), Kon village-Kalyan (Maharashtra).
C. The statements of current assets and stocks submitted by the Company with banks are materially in agreement with the books of accounts.
i) The amounts receivable from customers become due after expiry of credit period which on an average ranges around from seven to ninety days. There is no significant financing component in any transaction with the customers.
ii) The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration.
iii) The Company has recognised revenue of '' 55.08 lakhs (March 31, 2024 - '' 55.24 lakhs) from the amounts included under advance received from customers at the beginning of the year.
* The basic EPS for the previous year has been restated to reflect the impact of a preferential allotment of equity shares made at a price below the market value. This restatement ensures comparability with the current year''s EPS by appropriately adjusting the weighted average number of equity shares outstanding. For the current year, the basic EPS has been calculated after accounting for the fresh issue of equity shares as well as the conversion of warrants into equity shares during the year. These changes have resulted in an increase in the share capital, affecting the earnings attributable per share in accordance with applicable indian accounting standards.
** The diluted EPS for the current financial year reflects the potential dilution arising from the issue of warrants. These warrants, if converted into equity shares, would increase the total number of outstanding shares, thereby reducing the earnings attributable per share. In accordance with relevant indian accounting standards, the impact of such potential equity shares has been considered in the computation of diluted EPS to provide a more comprehensive view of the earnings per share, assuming full conversion of outstanding warrants.
(c) Other long term employee benefit obligation Leave entitlement
Compensated Absences: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of year is INR 97.76 lakhs as at March 31, 2025 (March 31, 2024: INR 95.72 lakhs). Actuarial losses/gains are recognised in the statement of profit and loss in the year in which they arise.
The Company has only one reporting segment i.e. Hosiery and others. Hence no separate segment information has been furnished herewith.
39 Fair values of financial assets and financial liabilities
The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short-term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.
The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security and term deposits are not significantly different from the carrying amount.
Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and other financial assets.
The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
⢠Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
⢠Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
⢠Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
No financial assets/liabilities have been valued using level 1 fair value measurements.
Management has assessed that Cash and cash equivalents, Other balances with banks, Loans, Trade receivables, Other financial assets, Short term borrowings, Trade payables and Other financial liabilities carried at amortised cost approximate their carrying amounts largely due to the short-term maturities of these instruments.
41 Financial risk management objectives and policies
The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.
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 risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to currency risk on account of its receivable and payables in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward foreign exchange contracts to hedge its currency risk, with a maturity of less than one year from the reporting date.
The Company does not use derivative financial instruments for trading or speculative purposes.
In order to hedge exchange rate risk, the Company has a policy to hedge cash flows up to a specific tenure using forward exchange contracts. All hedging activities are carried out in accordance with the Company''s internal risk management policies, as approved by the Board of Directors, and in accordance with the applicable regulations where the Company operates.
The Company has also considered the effect of changes, if any, in both counterparty credit risk and own credit risk while assessing hedge effectiveness and measuring hedge ineffectiveness. The Company continues to believe that there is no impact on effectiveness of its hedges.
(iii) Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate (or any other material currency), with all other variables held constant, of the Company''s profit before tax (due to changes in the fair value of monetary assets and liabilities). The Company''s exposure to foreign currency changes for all other currencies is not material.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the Company''s receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the landlords before taking any property on lease and hasn''t had a single instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the non-realization risk. The Company does not foresee any credit risks on deposits with regulatory authorities.
Expected Credit Loss (ECL) for Trade Receivables and Deposits:
In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.
As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated.
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. (For example: The key liquidity risk the Company can face is the risk of subscription fee refund. As per the Company policy, no refunds are allowed once a subscription has been taken and it is only in exceptional cases that fee is refunded with proper approvals from senior Management. The Management believes that the probability of a liquidity risk arising due to fee refund is not there.)
42 Corporate social responsibility
As per Section 135 of the Companies Act, 2013, the provisions relating to Corporate Social Responsibility are not applicable to the Company for the financial year ended March 31, 2025.
However, during the year, the Company has voluntarily incurred an amount of INR 6.00 lakhs (Previous Year: INR Nil) towards Corporate Social Responsibility -related activities.
For the purpose of the Company''s capital management, capital includes issued equity capital, equity component of redeemable non cumulative non convertible preference shares, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and to ensure the Company''s ability to continue as a going concern.
The Company has not distributed any dividend to its shareholders. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of noncurrent borrowing which represents borrowings from bank & others and liability component of redeemable non cumulative non convertible preference shares. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
(i) Debt is defined as Non-current borrowings (including current maturities) and Current borrowings and interest accrued on Non-current and Current borrowings.
(ii) Capital is defined as Equity share capital and other equity.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and March 31, 2024.
44 Additional regulatory information(B) Title deeds of Immovable Properties not held in name of the Company
The Company does not hold any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company, at anytime during the year ended March 31, 2025.
(C) The Company has not revalued its property, plant and equipment and intangibles during the year ended March 31, 2025 and March 31, 2024.
(D) Details of Benami Property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(E) Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(F) Relationship with Struck off Companies under section 248 of The Companies Act, 2013 or section 560 of The Companies Act, 1956
1. The Company has made provision for doubtful debts for the balances.
2. There were no new transactions with these companies during the year.
(G) Registration of charges or satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(H) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
(I) Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current year or previous year.
(J) Utilisation of Borrowed funds and share premium:
(I) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(K) Undisclosed income
The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
(L) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
No significant subsequent events have been observed which may require an adjustment to financial statements.
|
(Amount in INR lakhs, unless otherwise stated) 46 Contingencies and commitments |
||
|
Particulars |
As at March 31, 2025 |
As at March 31, 2024 |
|
Guarantees given by bank |
97.41 |
104.41 |
|
Letter of credits |
201.74 |
409.39 |
|
Claims against the Company not acknowledged as debts - |
||
|
Indirect tax related: |
||
|
Tamil Nadu Value Added Tax Act, 2006, Tamil Nadu (FY 2001-02) |
195.46 |
195.46 |
|
Tamil Nadu Value Added Tax Act, 2006, Tamil Nadu (FY 2001-02) |
5.43 |
5.43 |
|
Tamil Nadu Value Added Tax Act, 2006, Tamil Nadu (FY 2002-03) * |
- |
802.77 |
|
Central Sales Tax Act, 1956, Delhi (FY 2005-06) |
7.28 |
7.28 |
|
Goods and Service Tax Act, 2017, Maharashtra (FY 2017-18) |
73.38 |
73.38 |
|
Goods and Service Tax Act, 2017, Tamil Nadu (FY 2017-18) |
17.45 |
17.45 |
|
Goods and Service Tax Act, 2017, Tamil Nadu (FY 2018-19) |
18.67 |
- |
|
Goods and Service Tax Act, 2017, Tamil Nadu (FY 2019-20) |
20.84 |
- |
|
Goods and Service Tax Act, 2017, Tamil Nadu (FY 2020-21) |
30.26 |
- |
* Pursuant to a judgment passed by the Hon''ble Madras High Court on April 7, 2025, in favor of the Company, the contingent liability has been reduced by INR 802.77 lakhs. During the year the contingent liability has been increased by INR 73.72 lakhs.
47 The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
Enhancing Accountability and Transparency: Implementation of Audit Trail
The Company had implemented an audit trail system within our Company''s software which has impact on books of accounts with effect from April 01, 2023. This implementation underscores our commitment to transparency, accountability, and data integrity. Audit trail has been implemented for all transactions recorded in the software throughout the year.
By capturing and documenting critical events and activities within our systems, we ensure a comprehensive record that enhances security, facilitates compliance, and supports effective decision-making.
In addition, audit trail data is preserved in the system as per statutory requirement for record retention. The Company''s dedication to maintain a robust audit trail reflects ongoing efforts to uphold the highest standards of governance and security across all aspects of business operations.
Backup Schedule and Data Preservation:
The Company is following a backup schedule and data preservation protocol within the organization The Company''s backup schedule entails frequent and systematic backups of critical data assets to safeguard against potential data loss or corruption. This proactive approach ensures that valuable information remains protected and accessible in the event of unforeseen circumstances. The Backup for the accounting software Intellect Core Banking System is done on a Daily basis and preserved at Disaster Recovery (DR) site located at Thingalur.
49 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
50 These financial statements were authorised for issue by the Board of Directors on May 23, 2025.
Mar 31, 2024
2.11 Provisions and contingent liabilities
Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
2.12 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and short-term deposits net of bank overdraft.
2.13 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
2.14 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of the instrument.
a) Financial assets
i. Initial recognition and measurement
At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
For purposes of subsequent measurement, financial assets are classified in following categories:
a) at amortised cost; or
b) at fair value through other comprehensive income; or
c) at fair value through profit or loss.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to Statement of Profit and Loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.
Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.
Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the profit and loss.
The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance on the following:
i. Trade receivables
ii. Financial assets measured at amortised cost (other than trade receivables)
iii. Financial assets measured at fair value through other comprehensive income (FVTOCI)
In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.
In case of other assets (listed as (ii) and (iii) above), the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.
Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognising impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the reporting date.
ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a range of outcomes, taking into account the time value of money and other reasonable information available as a result of past events, current conditions and forecasts of future economic conditions.
In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.
As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed default rates and changes in the forwardlooking estimates are updated.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the Statement of Profit and Loss.
iv. Derecognition of financial assets
A financial asset is derecognized only when
a) the rights to receive cash flows from the financial asset is transferred or
b) retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.
Where the financial asset is transferred then in that case financial asset is derecognised only if substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.
b) Financial liabilities
i. Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortised cost, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.
ii. Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in Statement of Profit and Loss when the liabilities are derecognised as well as through the EIR amortization process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.
iii. Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss as finance costs.
c) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
d) Derivative instruments and hedge accounting Derivative financial instruments
The Company enters into a derivative financial instrument such as foreign exchange forward contracts to manage its exposure to foreign exchange rate risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting year. The resulting gain or loss is recognized in Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in Statement of Profit and Loss depends on the nature of the hedge item.
2.15 Employee benefits
a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognised in respect of employees'' services up to the end of the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current provisions in the balance sheet.
b) Other long-term employee benefit obligations i. Defined contribution plan
Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.
Employee''s State Insurance Scheme: Contribution towards employees'' state insurance scheme is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.
ii. Defined benefit plans
Gratuity (funded): The Company provides for gratuity, a defined benefit plan (the ''Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognised in the other comprehensive income in the year in which they arise.
iii. Other long- term employee benefit obligations
Compensated Absences: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognised in the statement of profit and loss in the year in which they arise.
2.16 Share capital
Equity shares are classified as equity share capital. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
2.17 Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
2.18 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company has only one reporting segment i.e. Hosiery and others. Hence no separate segment information has been furnished in the financial statements.
2.19 Government grant
Grants from the Government are recognized at their fair value where there is reasonable assurance that the grant will be received and the Company will comply with all attached conditions and grants will be received.
Government grants relating to the purchase of Property, plant and equipment are included in non-financial liabilities as deferred income and are credited to the Statement of Profit and Loss on straight line basis over the expected lives of related assets and presented within other income.
2.20 Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
2.21 Significant accounting judgments, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the year-end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
a) Defined benefit plans and other long-term benefits (gratuity benefits and leave encashment)
The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each year end.
The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis. For details refer note 37.
b) Impairment of financial assets
In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognised as loss allowance.
As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade receivables. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated.
c) Useful economic lives of property, plant and equipment
The Company reviews the estimated useful economic lives of property, plant and equipment at the end of each reporting period. During the current year, the directors have determined that no changes are required to the useful lives of assets.
d) Deferred tax
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
43 Financial risk management objectives and policies
The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.
(A) 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 risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings. With all other variables held constant, the Company''s profit / (loss) before tax is affected through the impact on floating rate borrowings, as follows:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the Company''s receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. (For example: The key liquidity risk the Company can face is the risk of subscription fee refund. As per the Company policy, no refunds are allowed once a subscription has been taken and it is only in exceptional cases that fee is refunded with proper approvals from senior Management. The Management believes that the probability of a liquidity risk arising due to fee refund is not there.
44 Corporate social responsibility
The provision of Section 135 of the Companies Act, 2013, in respect of Corporate Social Responsibility is not applicable to Company.
45 Capital management
For the purpose of the Company''s capital management, capital includes issued equity capital, equity component of redeemable non cumulative non convertible preference shares, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and to ensure the Company''s ability to continue as a going concern.
The Company has not distributed any dividend to its shareholders. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of noncurrent borrowing which represents borrowings from bank & others and liability component of redeemable non cumulative non convertible preference shares. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
46 Additional regulatory information
(B) Title deeds of Immovable Properties not held in name of the Company
The Company does not hold any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company, at anytime during the year ended March 31,2024.
(C) The Company has not revalued its property, plant and equipment and intangibles during the year ended March 31,2024 and March 31,2023.
(D) Details of Benami Property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(E) Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(F) Relationship with Struck off Companies under section 248 of The Companies Act, 2013 or section 560 of The Companies Act, 1956
(G) Registration of charges or satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(H) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
(I) Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current year or previous year.
(J) Utilisation of Borrowed funds and share premium:
(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(K) Undisclosed income
The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
(L) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
47 Subsequent event
No significant subsequent events have been observed which may require an adjustment to financial statements.
50 The Code on Social Security 2020 (âthe Code'') relating to employee benefits, during the employment and post employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
51 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure
52 These financial statements were authorised for issue by the Board of Directors on May 24, 2024.
As per our report of even date For and on behalf of the Board of Directors of
For M S K A & Associates VIP Clothing Limited
Chartered Accountants CIN: L1810MH1991PLC059804
Firm Registration No.:105047W
Rajesh Murarka Sunil J. Pathare Kapil J. Pathare Devendra Vyas
Partner Chairman & Whole Time Director Chief Financial Officer
Membership No: 120521 Managing Director (DIN: 01089517) (M.No.ACA-150498)
(DIN: 00192182)
Place: Mumbai Archana Mungunti Place: Mumbai
Date: May 24, 2024 Company Secretary Date: May 24, 2024
(M.No.ACS-31071)
Mar 31, 2018
1 Corporate Information
VIP Clothing Limited (formerly known as Maxwell Industries Ltd.) (the âCompanyâ) is domiciled in India. The Company was incorporated on January 14, 1991. The Companyâs Identification No. is L18101MH1991PLC059804. The Companyâs registered office is at C-6, Road No. 22, MIDC, Andheri (East), Mumbai- 400093. The Company is a leading Manufacturer, Marketing and Distributor of Menâs and Womenâs innerwear and socks under the brand name VIP, Frenchie, Feelings, Leader and Eminence. The Companyâs equity shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
During the year, your Company had issued 1,65,19,304 fully paid-up equity shares of face value of Rs. 2/- each (âRights Issue Equity Sharesâ) for cash at a price of Rs. 26/- per equity share including a share premium of Rs. 24/- per equity share aggregating up to Rs. 4295.02 Lakhs to the existing equity shareholders on a rights basis in the ratio of 1 fully paid up equity shares for every 4 fully paid-up equity shares held by the existing equity shareholders on the record date, i.e. November 20, 2017 (âThe Issueâ). The Issue was open for subscription from November 28, 2017 to December 12, 2017.
2. Rights, Preference and Restriction attached to Shares.
The Company has two class of shares, one is Equity shares having face value of Rs. 2/- each per share and other is Preference shares of Rs. 100/- each. Each holder of equity share is entitled to one vote per share. The Preference shares does not carry voting rights but entitled to get the dividend. The dividend, if any, proposed by the Board of Directors is subject to the approval of the equity shareholder in their ensuing general meeting. In the event of liquidation of the Company, the holder of equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts (including redeemable Preference Shares). The distribution will be in proportion to the number of equity shares held by the shareholder.
3. The Company does not have any Holding Company or Subsidiary Company, Hence disclosure of shares held by Holding Company and Subsidiary Company does not arise.
(i) Working capital loan secured by way of hypothecation of inventories, book debts and movable fixed assets of the company and further secured by way of first charge of property situated at GIDC-Umbergaon (Gujarat), Thingalur (Tamil Nadu), Edyaarpalayam (Tamil Nadu), Kon village-Kalyan (Maharashtra)
(ii) The unsecured loan received from the Promoter Directors of the Company.
During the financial year, Company had sold off the Knitting unit on 17.11.2017 situated at 360/13, Ganesh Industrial Estate, Village Kachigam, Nani Daman, Daman - 396210, for a consideration of Rs. 150 Lakhs and booked the capital loss of Rs. 35.39 Lakhs and loss on account of discontinued operation is Rs. 8.73 Lakhs. Also Company had completed it''s sale transaction of Gobi land on 28.03.2018 and realised the sale consideration of Rs. 73.76 Lakhs and incurred the capital gain of Rs. 33.76 Lakhs on the transaction. Previous year Company had sold off the process unit situated at 13-15, SIPCOT, Perundurai, Erode, Tamil Nadu - 638052, for a consideration of Rs. 444 Lakhs and booked the capital loss of Rs. 721 Lakhs and loss on account of discontinued operation was Rs. 122 Lakhs.
Additional information to financial statements and disclosures under Accounting Standards: Note
No.4: Employee Benefits:
Defined benefit plans:
A. Gratuity:
The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age. The contributions are managed through a third party which acts as the adminitrator of the fund.
B. Other defined benefit plan (Leave encashment)
Amount recognized in the balance sheet and movement in the net defined benefit obligation for the year are as follows:
Note No.5: Corporate Social Responsibility (CSR)
During the financial year, the Company spend Rs. 6.52 Lakhs (P.Y Rs. 16.00 Lakhs) as per the section 135 of the Companies Act, 2013 in respect of Corporate Social Responsibility (CSR). The Company was focus on implementing the project identified by the CSR Committee and successfully completed the project.
The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.
The Company has availed a concessional rate of tax of 1% on the taxable sales without filing the forms âCâ and âHâ within the time frame stipulated under rule 12 (7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 and is therefore liable to pay Rs. 3,615.63 Lakhs. The Company has since collected and in possession of forms required to be submitted to the concerned Sales Tax Officer and requested for time period to submit the relevant forms at the time of assessment.
In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the Company''s results of operations or financial conditions.
The Company is engaged in the business of manufacturing garments. Therefore there is no separate reportable segment.
Note No. 6. FINANCIAL INSTRUMENTS:
Note No. 6.1 Capital Management:
The Companyâs objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns to the shareholders and benefits to other stakeholders and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may issue new shares or sell assets to reduce debt. The capital structure of the Company consists of debt and total equity of the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity, External-commercial borrowings and short-term borrowings. The Companyâs policy is aimed at combination of short-term and long-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
The Company is not subject to any externally imposed capital requirements.
Total debt includes all long and short term debts as disclosed in notes no. 18 to the financial statements.
Note No. 6.2. Fair Value Measurement
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Ind AS 113 - Fair Value Measurement. An explanation of each level is as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - Unobservable inputs for the asset or liability.
The Company is exposed primarily to market risk, credit risk and liquidity risk which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
Market Risk:
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates and other market changes.
Interest Rate Risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs variable rate short-term debt obligations and external commercial borrowings.
Credit Risk:
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Outstanding customer receivables are regularly monitored. The Company maintains its cash and cash equivalents and deposits with banks having good reputation and high quality credit ratings.
Liquidity Risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Share based payments expenditure:
Share based payments expense (included in Note 28 : Employee Benefit Expense) recognized during the year represents the difference between market value of equity shares as at the grant date and market value of equity shares as at the exercise date.
7. Standards issued but not yet effective
In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying Ind AS 115, âRevenue from Contracts with Customersâ substituting Ind AS 18, âRevenueâ and Ind AS 11, âConstruction Contractsâ. This notification is in line with the recent notifications made by International Accounting Standards Board (IASB) by notifying IFRS 15, âRevenue from Contracts with Customersâ substituting IAS 18, âRevenueâ and IAS 11, âConstruction Contractsâ. The standard is applicable to the Company from April 1, 2018.
Impact assessment because of Ind AS 115:
The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.
8. Fair value measurement of Land
Under Previous GAAP, land was valued at cost. Under Ind AS, the entity has opted option available under paragraph D5 of Appendix D to Ind AS 101 and has elected to measure land at the date of transition to Ind AS at its fair value and use that fair value as its deemed cost at that date.
The carrying value of land as per IGAAP was '' 76.81 Lakhs as on transition date. The land has been fair valued at '' 1334.91 Lakhs and the difference of '' 1258.10 Lakhs has been transferred to retained earnings.
9. Fair value measurement of License / Brand
Under Previous GAAP, license was valued at cost. Under Ind AS, the entity has opted option available under paragraph D7 read with paragraph D5 of Appendix D to Ind AS 101 and has elected to measure licence at the date of transition to Ind ASs at its fair value and use that fair value as its deemed cost at that date.
The carrying value of brand as per IGAAP was Rs. 1189.65 Lakhs as on transition date . The brand has been fair valued at Rs. 12397.10 Lakhs and the difference of Rs. 11207.45 Lakhs has been transferred to retained earnings.
10. Reclassification of lease
Under Indian GAAP, there is no specific guidance for contracts that involve leases of Land. Under Ind AS, leases of land is recognized as operating or finance lease as per definition and classification criteria. Where the land lease is for several decades, generally it qualifies as a finance lease even though the right of ownership of the land may not transfer at the end of the lease term. Land lease for relatively shorter periods are treated as operating leases. In such cases lease rentals paid in advance are recorded as prepaid lease rentals as part of other current / non-current assets.
11. Trade receivables:
Under Indian GAAP, provision for doubtful debts was recognized based on the estimates of the outcome and of the financial effect of contingencies determined by the management of the Company. This judgement was based on consideration of information available up to the date on which the financial statements were approved and included a review of events occurring after the balance sheet date.
Under Ind AS, a loss allowance for expected credit losses is recognized on financial assets carried at amortised cost. Expected loss on individually significant receivables is assessed when they are past due and based on Company''s historical counterparty default rates and forecast of macro-economic factors. Other receivables have been segmented by reference to the shared credit risk characteristics to evaluate the expected credit loss.
12. Loans to employees:
Under Indian GAAP, interest on term loan is recorded at transaction price.
Under Ind AS, term loan is discounted to its present value where the effect of the time value of money is material. The imputed interest on the term loan is subsequently recognized in statement of profit and loss.
13. Re-measurements of defined benefit obligations:
Under the previous GAAP, actuarial gains and losses were recognized in the statement of profit or loss. Under Ind AS, the actuarial gains and losses form a part of re-measurement of the net defined benefit liability / assets which is recognized in other comprehensive income.
14.Sales of goods:
1) Under the previous GAAP, revenue from operations was presented net of taxes. Under Ind AS, revenue from operations is shown inclusive of taxes. The taxes paid is presented on the face of the statement of profit and loss as part of expense.
2) The Company recovers from its customers certain freight and insurance costs paid to the vendor. Under Previous GAAP, the actual freight and insurance costs incurred was netted off with the recoveries. Under Ind AS, such costs and amounts recovered from the customers is accounted on gross basis
3) The Company evaluated its revenue contracts and consequently, reversed revenue that did not meet the revenue recognition criteria under Ind AS with corresponding increase in inventory and decrease in cost of sales and trade receivable.
4) The Company had carried out job work from its related party.
15. Financial liabilities:
Under Indian GAAP, interest on term loan is recorded at transaction price
Under Ind AS, term loan is discounted to its present value where the effect of the time value of money is material. The imputed interest on the term loan is subsequently recognized in statement of profit and loss.
16. Deferred Tax
Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.
In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.
17. Previous year figures have been regrouped/rearranged, wherever necessary to make them comparable with the current year''s classification.
Mar 31, 2016
Note:
(i) 3,57,50,000 Equity Shares of Rs. 2/- each allotted as fully paid up Bonus Shares by way of Capitalization of Share Premium.
(ii) The Company has allotted the 24,35,000, 5% Redeemable Preference Shares of Rs. 100/- each on 1st February, 2006, redeemable after 31.01.2016 with an option to the Company to redeem it at the end of the 8th, 9th and 10th Year, in three equal installment of Rs. 811.60 Lakhs each i.e redeemable on 31.01.2014, 31.01.2015 and 31.01.2016. After the buyback of 12,50,050 Preference Shares the installment will be proportionately reduce to Rs. 394.98 Lakhs each year to be redeemed on 31.03.2014, 31.01.2015 and 31.01.2016. The Company had redeemed its first trench on 31.07.2014, second trench on 31.01.2015 and third trench was redeemed on 31.01.2016.
(iii) The Company had issued and allotted 30,00,000 Equity Shares of Rs. 2/- each on conversion of 30,00,000 warrants issued to person belonging to Promoter Group. The warrants were issued at Rs. 38 per warrant. The Equity share capital increased from Rs. 1,261.54 Lakhs to Rs. 1321.54 Lakhs and securities premium increase from Rs. 2,609.49 Lakhs to Rs. 3,689.49 Lakhs.
1. Rights, Preference and Restriction attached to Shares.
The Company has two class of shares, one is Equity shares having face value of Rs. 2/- each per share and another is 5% Redeemable Preference shares of Rs. 100/- each. Each holder of equity share is entitled to one vote per share. The Preference shares does not carry voting rights but entitled to get the dividend. The dividend, if any, proposed by the Board of Directors is subject to the approval of the equity shareholder in their ensuing general meeting. In the event of liquidation of the Company, the holder of equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts (including redeemable Preference Shares). The distribution will be in proportion to the number of equity shares held by the shareholder.
2. The Company had issued and allotted 30,00,000 Equity share on conversion of warrants to person belongs to Promoter group on 14th February, 2016 @ Rs. 38/- each .
3. The Company does not have any holding company or subsidiary company, Hence disclosure of shares held by holding company and subsidiary company does not arise.
Mar 31, 2015
1. CORPORATE INFORMATION
Maxwell Industries Limited ('Company') was incorporated on 14th
January, 1991. The Company's Identification No. is
L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing
and Distribution of Men's, Women's inner wears and Socks under brand
name VIP, Frenchie and Feelings. The Company's Equity Shares are listed
on BSE Limited (BSE) and National Stock Exchange Limited (NSE).
1.1 Rights, Preference and Restriction attached to Shares.
The Company has two class of shares, one is Equity shares having face
value of Rs. 2/- each per share and another is 5% Redeemable Preference
shares of Rs.100/- each. Each holder of equity share is entitled to one
vote per share. The Preference shares does not carry voting rights but
entitled to get the dividend. The dividend, if any, proposed by the
Board of Directors is subject to the approval of the equity shareholder
in their ensuing general meeting. In the event of liquidation of the
Company, the holder of equity shareholders will be entitled to receive
remaining assets of the Company, after distribution of all preferential
amounts (including redeemable Preference Shares). The distribution will
be in proportion to the number of equity shares held by the
shareholder.
1.2 Company had issued and allotted 30,00,000 convertible warrants at
price of Rs. 38 per warrant determined under regulation of SEBI (ICDR)
Regulation, 2009 to person belongs to Promoter Group. The warrants will
be converted into Equity shares within a period of 18 months from the
date of issue and allotment.
1.3 The Company does not have any holding company or subsidiary
company, Hence disclosure of shares held by holding Company and
subsidiary company does not arise.
Notes:
(I) Working Capital Loan secured by way of Hypothecation of
Inventories, Book Debts & Movable Fixed Assets of the Company and
further secured by way of First charge of Property situated at
GIDC-Umergaon (Gujarat), Kachigam (Daman), SIPCOT-Perundurai (Tamil
Nadu), Edyaarpalayam (Tamil Nadu) and Thingalur (Tamil Nadu).
(ii) The unsecured loan received from the Promoter of the Company.
# The figures reflect the position as at year end. The actual amount to
be transferred to the Investor Education and Protection Fund in this
respect shall be determined on the due date. *
* Including Statutory dues, Contributions to PF and ESIC, VAT, TDS,
Service Tax, Professional Tax etc.
2. Employee benefit plans
Defined contribution plans
The Company makes Provident Fund and Employee pension scheme to defined
contribution plans for qualifying employees. Under the Schemes, the
Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The Company recognized Rs. 175.67 Lakhs (Year
ended 31 March, 2014 Rs. 118.90 Lakhs) for Provident Fund contributions
in the Statement of Profit and Loss. The contributions payable to these
plans by the Company are at rates specified in the rules of the
schemes.
Defined benefit plans
The Company offers the following employee benefit schemes to its
employees:
i. Gratuity
ii. Other defined benefit plans (Leave Encashment)
3. Related party transactions
a. Details of related parties:
Associates
Maxwell Ventures Private Limited Maxwell Capital Management Private
Limited Maxwell Entertainment Private Limited Maxwell Retails Private
Limited Maxwell Health & Hygiene Private Limited Shogun Chemicals
Private Limited HYBO Hindustan PAKO Hindustan *
Pats Treasures *
Unnati Ventures Kanishk Capital Partners K. 3 Realtors Global
Construction Pathare Agro Farms
Note: Related parties have been identified by the Management. *
Transactions with Related Parties.
4. Contingent Liabilities and Contingent Assets
The Company recongnizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. When there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Particulars Year ended Year ended
31 March, 2015 31 March, 2014
(Rs. in Lakhs) (Rs. in Lakhs)
Guarantees given by Bank 21.10 23.35
Claims against the company not
acknowledged as debts - -
Cotton Corporation of India 33.83 33.83
Income Tax Liability in Appeal
by IT department 1,175.53 1,157.49
Letter of Credits 471.65 283.13
* Split-up of equity shares from Rs. 10/- each to Rs. 2/- each and issue of
bonus shares.
** Rs. 620.60 Lakhs 5% Redeemable Preference shares of Rs. 100/- each bought
back.
*** Rs. 629.45 Lakhs 5% Redeemable Preference shares of Rs. 100/- each bought
back.
**** Rs. 790 Lakhs 5% Redeemable Preference shares of Rs. 100/- each redeemed.
# Excluding yarn - discontinued operation.
Mar 31, 2014
CORPORATE INFORMATION
Maxwell Industries Limited (''Company'') was incorporated on 14th
January, 1991. The Company''s Identification No. is
L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing
and Distribution of Men''s, Women''s inner wears and Socks under brand
name VIP, Frenchie and Feelings. The Company''s Equity Shares are listed
on BSE Limited (BSE) and National Stock Exchange Limited (NSE).
Notes:
(i) Working Capital Loan secured by way of Hypothecation of Inventories
& Book Debts of the Company and further secured by way of Equitable
Mortgage of Property situated at GIDC-Umergaon (Gujarat), Kachigam
(Daman), SIPCOT-Perundurai (Tamil Nadu), Edyaarpalayam (Tamil Nadu) and
Thingalur (Tamil Nadu).
(ii) Buyers credit arranged by Kotak Mahindra Bank is secured against
import of Machineries, finance by them.
(ii) Purchase Bill Discounting is secured by way of sub-servient charge
on the inventories and Book Debts and further secured by way of
Personal Guarantee of Promotor - Directors.
(iii) Unsecured Short Term Loan is guaranteed by Promotor - Directors.
1. Contingent Liabilities and Contingent Assets
The Company recongnizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but prbably
will not, require an outflow of resourses. When there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Particulars Year ended Year ended
31 March, 2014 31 March, 2013
(Rs. in Lakhs) (Rs. in Lakhs)
Guarantees given by Bank 23.35 30.95
Claims against the company not
acknowledged as debts -
Cotton Corporation of India 33.83 33.83
Income Tax Liability in Appeal by
IT department 1,157.49 1,157.49
Letter of Credits 283.13 262.11
Mar 31, 2013
1 CORPORATE INFORMATION
Maxwell Industries Limited (ÂCompany'') was incorporated on 14th
January, 1991. The Company''s Identification No. is
L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing
and Distribution of Men''s, Women''s inner wears and Socks under brand
name VIP, Frenchie and Feelings. The Company''s Equity Shares are listed
on Bombay Stock Exchange Limited (BSE) and National Stock Exchange
Limited (NSE).
2. Employee benefit plans
a Defined contribution plans
The Company makes Provident Fund and Employee pension scheme to defined
contribution plans for qualifying employees. Under the Schemes, the
Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The Company recognized Rs. 132.33 Lakhs
(previous year Rs. 115.62 Lakhs) for Provident Fund contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
b Defined benefit plans
The Company offers the following employee benefit schemes to its
employees:
I. Gratuity
ii. Other defined benefit plans (Leave Encashment)
3. Segment information
During the year under review, Company has one primary business segment,
which is Hosiery. In the previous year, the Company were having two
business segments namely Hosiery and Spinning. Revenues and expenses
directly attributable to segments are reported under each reportable
segment. Expenses which are not directly identifiable to each
reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts, all other expenses which
are not attributable or allocable to segments have been disclosed as
unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. Fixed assets that are used interchangeably amongst
segments are not allocated to primary and secondary segments.
4. Related party transactions
a. Details of related parties:
Associates
Maxwell Ventures Private Limited
Maxwell Capital Management Private Limited
Maxwell Entertainment Private Limited
Maxwell Retails Private Limited
HYBO Hindustan
PAKO Hindustan *
Pats Treasures *
Unnati Ventures
Kanishk Capital Partners
K. 3 Realtors
Global Construction
Pathare Agro Farms
Shogun Chemicals Private Limited
Note: Related parties have been identified by the Management. *
Transactions with Related Parties.
5. Remuneration to Managing Director and Whole Time Directors exceeds
the maximum permissible limits prescribed in Section 198, 269 and other
applicable provisions of the Companies Act, 1956. The Company is in the
process of getting Central Government approval.
However, the excess remuneration paid to Managing Director and Whole
time Directors is well within the limit of Schedule XIII of the
Companies Act, 1956.
6. Contingent Liabilities and Contingent Assets
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
(Rs. in Lakhs)
Particulars Year ended Year ended
31 March, 2013 31 March, 2012
Guarantees given by Bank 30.95 30.95
Claims against the company not
acknowledged as debts -
Cotton Corporation of India 33.83 33.83
Income Tax Liability in Appeal
by IT department 1,157.49 1,157.49
Letter of Credits 262.11 594.24
Mar 31, 2012
1. Corporate Information:
Maxwell Industries Limited ('Company') was incorporated on 14th
January, 1991. The Company's Identification No. is
L18101MH1991PLC059804. The Company is a leading Manufacturer, Marketing
and distribution of Men's, Women's inner wears and Socks under brand
name VIP, Frenchie and feelings. The Company's Equity Shares are listed
on Bombay Stock Exchange Limited (BSE) and National Stock Exchange
Limited (NSE).
Note:
(i) 3,57,50,000 Ordinary Shares of Rs 21- each allotted as fully paid up
Bonus Shares by way of Capitalization of Share Premium.
(ii) The Company has originally allotted the 5%, 24,35,000 Redeemable
Preference Shares of Rs 100/-each on 1st February, 2006, redeemable after
31.01.2016 with an option to the Company to redeem it at the end of the
8th, 9th and 10th Year, in three equal installment of Rs 811.60 Lacs each
i.e. redeemable on 31.01.2014, 31.01.2015 and 31.01.2016. After the
buyback, installment will be reduced to Rs 394.98 Lacs each i.e.
redeemable on 31.01.2014,31.01.2015 and 31.01.2016.
(iii) out of 24,35,000 Redeemable Preference Shares, the bought back
6,20,600 Preference Share during the financial year 2010-11 and
6,29,450 Preference Shares during the financial year 2011-12.
1.1 The Board of Director of the Company approved the Buyback of
6,29,450 fully paid up, 5% Redeemable Preference Shares of Rs 100/- at
par including dividend due up to the date of Buyback, During the year,
the Company has bought back and existinguised 6,29,450 Preference
Shares of Rs 100/- each by utilising Securities Premium Account to the
extent of Rs 629.45 Lacs. Capital Redemption Reserve has been created
out of Securities Premium Account being the nominal value of share
bought back in terms of Section 77AAof the Companies Act, 1956.
1.2 Rights, Preference and Restriction attached to Shares
The Company has two class of shares, one is Equity shares having face
value of Rs 21- each per share and another is 5% Redeemable Preference
shares of Rs 100/- each. Each holder of equity share is entitled to one
vote per share. The Preference shares does not carry voting rights but
entitled to get the dividend. The dividend, if any, proposed by the
Board of Directors is subject to the approval of the equity shareholder
in their ensuing general meeting. In the event of liquidation of the
Company, the holder of equity shareholders will be entitled to receive
remaining assets of the Company, after distribution of all preferential
amounts (including redeemable Preference Shares). The distribution will
be in proportion to the number of equity shares held by the
shareholders.
1.3 The Company does not have any holding company or subsidiary
company. Hence disclosure of shares held by holding Company and
subsidiary company doe not arise.
Note:
There were 2 Term Loans outstanding from Barclays Bank PLC in the
previous year (current year Nil).
One Term loan from Barclay Bank PLC is secured by way of first charge
on Land and Building, Plant & Machinery, Furniture & Fixtures and
Electrical Equipments of Company's unit situated at Thingalur (Tamil
Nadu) and re-payable in 16 equal quarterly instalments.
Second Term loan from Barclays Bank PLC is secured by way of first
charge on Land & Building, Plant & Machinery, Furniture & Fixtures and
Electrical Equipments of Company's unit situated at Daman and
repayable in 12 equal quarterly installment.
The Company has recognized deferred tax asset on unabsorbed
depreciation to the extent of the corresponding deferred tax liability
on the difference between the book balance and the written down value
of fixed assets under Income Tax (or) The Company has recognized
deferred tax asset on unabsorbed depreciation and brought forward
business losses based on the Management's estimates of future profits
considering the non-cancellable customer orders received by the
Company.
Notes:
(i) Working Capital Loan secured by way of Hypothecation of Inventories
& Book Debts of the Company and further secured by way of Equitable
Mortgage of Property situated at TTC- Turbhe (Navi Mumbai), GIDC-
Umergaon (Gujarat), Kachigam (Daman), SIPCOT- Perundurai (Tamil Nadu),
Edayaarpalayam (Tamil Nadu) and Thingalur (Tamil Nadu).
(ii) Purchase Bill Discounting is secured by way of second charge on
the Inventories and Book debts and further secured by way of Personal
Guarantee of Promotor - Directors.
(iii) Unsecured Short Term Loan is guaranteed by Promotor- Directors.
1. Employee benefit plans
a. Defined contribution plans
The Company makes Provident Fund and Employee pension scheme to defined
contribution plans for qualifying employees. Under the Schemes, the
Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The Company recognized Rs 115.62 Lacs (Year
ended 31st March, 2011 Rs 106.57 Lacs) for Provident Fund contributions
in the Statement of Profit and Loss. The contributions payable to these
plans by the Company are at rates specified in the rules of the
schemes.
b. Defined benefit plans
The Company offers the following employee benefit schemes to its
employees:
i. Gratuity
ii. Other defined benefit plans (Leave Encashment)
2. Segment information
The Company has identified business segments as its primary segment and
geographic segments as its secondary segment. Business segments are
primarily Hosiery and Spinning. Revenues and expenses directly
attributable to segments are reported under each reportable segment.
Expenses which are not directly identifiable to each reportable segment
have been allocated on the basis of associated revenues of the segment
and manpower efforts. All other expenses which are not attributable or
allocable to segments have been disclosed as unallocable expenses.
Assets and liabilities that are directly attributable or allocable to
segments are disclosed under each reportable segment. Fixed assets that
are used interchangeably amongst segments are not allocated to primary
and secondary segments.
Note: Figures in bracket relates to the previous year 27. Related party
transactions a. Details of related parties:
Associates
Maxwell Ventures Private Limited
Maxwell Capital Management Private Limited
Maxwell Entertainment Private Limited
Maxwell Retails Private Limited
HYBO Hindustan
PAKO Hindustan *
Pats Treasures *
Unnati Ventures
Kanishk Capital Partners
K. 3 Realtors
Global Construction
Pathare Agro Farms
Shogun Chemicals Pvt. Limited
Note: Related parties have been identified by the Management.
* Transactions with related parties
3. Discontinuing operations
During the year, pursuant to the approval of the Shareholders and other
authorities as required, the Company has transferred the Spinning
Division business to M C Spinners Private Limited on a slump sale basis
with effect from the close of business on 10th December' 2011 for a
consideration of Rs 39.00 Crore (Rupees Thirty Nine Crore only). The
Sipinning business was reported as part of Business segment of the
Company. The results of the discontinued business during the year until
discontinuation were as under:-
4. The Revised Schedule VI has become effective from 1sl 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.
5. Remuneration to Managing Director and Whole Time Directors exceeds
the maximum permissible limits prescribed in Section 269 and other
applicable provisions of the Companies Act, 1956. The Company is in the
process of getting Central Government approval.
Mar 31, 2011
1 a) Working Capital borrowing from banks are secured by hypothecation
of Company's entire stock of raw materials (imported and indigenous),
stocks in process, finished goods and goods in transit covered by
documents of title to goods, book debts further collaterally secured by
way of first charge on land and building, plant and machinery,
furniture & fixture and electrical equipments of the Company's units at
TTC Turbhe (Navi Mumbai), Gobichettipalayam (Tamil Nadu) and Equitable
Mortgage of land at Edayarpalayam (Tamil Nadu), Umbergaon (Gujarat) and
Perundurai (Tamil Nadu).
b. Term loan from Barclays Bank PLC is secured by way of first charge
on land and building, plant and machinery, furniture and Fixture and
electrical equipments of the Company's units at Thingalur (Tamil Nadu),
Kachigam (Daman).
2. Cash Credit loan from State Bank of India of Rs. 6853.03 Lakhs
outstanding as on 31.03.2011.
3. Payment against supplies from small scale and ancillary
undertakings are generally made in accordance with agreed credit terms.
4. In the opinion of the Company, the current assets, loans and
advances are approximately of the value stated if realized in the
ordinary course of the business.
5. Sundry Debtors and Sundry Creditors balances are subject to
confirmation.
ACCOUNTING STANDARD DISCLOSURES (Issued by Institute of Chartered
Accountant of India)
6. AS 10 -ACCOUNTING FOR FIXED ASSETS:
The Company assets were capitalized on the date they were ready and put
to use for commercial production. Depreciation on these assets under
the Companies Act and Income Tax Act have been calculated accordingly.
7. AS-17-SEGMENT REPORTING:
The segments are identified based on the dominant source and nature of
risks and returns and the internal organization and management
structure. Inter segment revenue is accounted on the basis of
transactions which are primarily market driven. Unallocated Corporate
Expenses include revenue and expenses which relate to the enterprise as
a whole and are not attributable to the segments.
8. AS 18 RELATED PARTY:
A. List of Related Parties with whom the Company undertook
transactions:
1. Group Concerns: VIP Overseas Marketing Pvt. Ltd., Hybo Hindustan,
Pako Hindustan, PATS Treasure.
2. Directors and other members of Promoter Group: Shri J. K. Pathare,
Shri Sunil J. Pathare, Smt Lalita J. Pathare, Shri KapilJ. Pathare.
9. AS-29 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2010
1. a) Working Capital borrowing from bank are secured by hypothecation
of Companys entire stock of raw materials (imported and
indigenous), stocks in process, finished goods and goods in transit
covered by documents of title to goods, book debts and further
collaterally secured by way offirst charge on land and building,
plantand machinery, furniture & fixture and electrical equipments of
the Companys units at TTC Turbhe (Navi Mumbai), Gobichettipalayam
(Tamil Nadu) and Equitable Mortgage of land at Edayarpalayam (Tamil
Nadu), Umbergaon (Gujarat) and Perundurai, Tamil Nadu.
b. Short Term (Working Capital) Loan taken from IDBI Bank Limited are
secured by way of sub-serivent charge on Stock and Book Debts of the
Company.
c. Term loan from Barclays Bank is secured by way of first charge on
land and building, plantand machinery, furniture and fixture and
electrical equipments of the Companys units at Thingalur (Tamil Nadu),
Daman (Kanchigam) and byway of personal guarantees of Promoter
Directors.
2. Cash Credit loan from State Bank of India of Rs. 5032.75 lakhs
outstanding as on 31.03.2010.
3. i) Payment against suppliers from small scale and ancillary
undertaking are generally made in accordance with agreed credit
terms.
ii) The Company has not received any intimation from "Suppliers"
regarding the status under the Micro, Small and Medium Enterprises
Development Act, 2006 & hence disclosures ifany relating to amounts
paid as atyearend together with interest paid / payable as required
under the said Act have not been given.
4. In the opinion of the Company, the current assets, loans and
advances are approximately of the value stated if realized in the
ordinary course of the business.
6.AS 10 -ACCOUNTING FOR FIXEDASSETS:
The CompanyAssets arecapitalized on the date they were ready and
put to usefor commercial production.Depreciation on these assets
under the CompaniesAct and IncomeTaxAct have beencalculated
accordingly.
7.AS-15 -EMPLOYEES BENEFIT:
The Company has classified the various benefits provided to
employees as under.
9.AS 18 RELATED PARTY:
A.List of Related Parties with whom the Company undertook
transactions;
1 Group Concerns:VIP Overseas Marketing Pvt.Ltd.,Hybo Hindustan,
Pako Hindustan,Pats Treasure,
Maxwell Entertainment Pvt.Ltd.
2.Directors and other members of Promoter Group:Shri Jaykumar
K.Pathare,Shri Sunil J.Pathare,Smt Lalita J.
Pathare,Shri Kapil J.Pathare,Shri Jaykumar K.Pathare HUF.
12.AS-28-IMPAIRMENT OFASSETS:
The Companys asset at TTC,Thane are in the process of being
disposed off and are stated at realizable market value.As a
cash generating unitthe flows are expected to be positive
overthe useful life ofthe asset.
13.AS-29 PROVISIONS.CONTINGENT LIABILITIESAND CONTINGENT
ASSETS
The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be made
of the amount of obligation.A disclosure for a contingent
liability is made when there is a possible obligation or a
present obligation that may,but probablywill not,require an
outflow of resources.Wherethere is a possibleobligation or
a present obligation thatthe likelihood ofoutflow of
resourcesis remote,noprovisionordisclosure is made.
Contingent Liabilities Rupees in Lakhs
Particulars 2009-10 2008-09
Guarantees given by Bank 35.05 33.94
Letter of Credits 458.03 274.39
Claims against the company not
acknowledged as debts 33.83 0.00
Income Tax Liability in Appeal 1157.49 1157.49
Export obligations 196.52 381.86
Previous Years figures have been regrouped,reclassified and
rearranged wherever necessary.
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ഓഹരി വിപണി 11 മാസത്തെ താഴ്ചയില്, നിഫ്റ്റി, സെന്സെക്സ് കൂപ്പുകുത്തി, കാരണങ്ങളറിയാം -
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കേന്ദ്രബജറ്റ് സെഷന് 2026: ഇടിവോടെ തുടങ്ങി നിഫ്റ്റിയും സെന്സെക്സും, നിക്ഷേപകര് പ്രതീക്ഷിക്കുന്നതെന്ത്? -
9 മാസത്തില് 314 ശതമാനം ഉയര്ന്ന് ഹിന്ദുസ്ഥാന് കോപ്പര് ഓഹരി, ഭാവി സാധ്യതകള് -
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1065 പോയിന്റ് ഇടിഞ്ഞ് സെന്സെക്സ്, നിഫ്റ്റി 25250 ന് താഴെ; ഭാവി പ്രവണതകള് -
2025 ലെ മികച്ച ഓഹരി; കുതിപ്പ് തുടരാൻ ശ്രീറാം ഫിനാൻസ്; ലക്ഷ്യവില ഇങ്ങനെ -
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