1. Operating Lease Arrangements:
a. As lessee:
Rental expenses of Rs. 1,13,56,240/- (P.Y. Rs.3,50,65,735) in respect
of obligation under operating leases have been recognized in the profit
and loss account.
The above figures include:
i. Lease rentals calculated based on estimated date of commencement of
lease in cases where the agreements / MOU''s have been entered into but
the date of commencement of lease is dependent on the date of
construction/renovation of premises and based on the commitment for
delivery by lessors.
ii. Lease rentals do not include common maintenance charges, tax
payable, if any.
iii. The Company has not entered under any operating lease agreement
which is not-cancelable more than five years.
b. As lessor:
Rental Income recognized in the profit & Loss account during the year
Rs. 1,32,53,130/- (Previous Year Rs.1,31,43,600) relating lease
2. Employee benefit plan:
The Company has recognized Rs. 10,42,745 (PY Rs. 4,34,633/-) in the
Profit and Loss Account for the year ended 31st March 2012 under
defined contribution plans.
3. Contingent Liabilities
Particulars 31.03.2012 31.03.2011
Bank Guarantees 17,65,000 16,30,000
Letter of credit 6,68,72,722 7,16,68,684
Export Obligation 3,65,71,097 3,52,21,146
Corporate Guarantee 10,00,00,000 10,00,00,000
Total 20,52,08,819 20,85,19,830
4. Details of Deferred Tax assets and liabilities:
In view of the Accounting Standard 22 issued by Institute of Chartered
Accountants of India, the significant component and classification of
deferred tax liability/ asset on account of timing difference comprises
of the following:
5. In the opinion of the Board, sundry debtors, loans and advances
and other current assets and unsecured loans are approximately of the
value stated if realized in the ordinary course of business. The
provisions for all known liabilities is adequate and not in excess of
the amount reasonably necessary. Balances are subject to confirmation
Debtors outstanding includes
(1) Amount of Rs.18,50,24,149 recoverable from Koutons Retail India Ltd
(KRIL). Some creditors are reported to have approached the Delhi High
Court to recover their dues.
(2) Amount of Rs. 1,47,43,932/- receivable from Liverpool Retail India
Ltd. The Company has filed a legal case in the Metropolitan Magistrate
However, the Company is negotiating with the management of the above
party for recovery of its dues.
The Company is hopeful of being able to realize its entire outstanding
and therefore no provision in regard thereto has been made in the
6. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as the year end together with interest paid / payable as
required under the said Act have not been given.
7. Previous year figure has been regrouped, rearranged and restated
8. Segment Reporting:
a. Primary Segment:
The company is primarily engaged in single business segment of
manufacturing and marketing of textile and textile products and is
managed as one business unit.
(Figures in bracket indicate previous year''s figures)
*Segment Assets from outside India represents receivables from Export
Sales. In view of the interwoven / intermix nature of business and
manufacturing facility, other information is not ascertainable.
9. Demerger of Retail Division
The Company filed a Scheme of arrangement under section 391 to 394 of
the Companies Act, 1956 (the scheme) to demerge the Retail Division
into a new Company, Thomas Scott India Ltd on going concern basis. The
appointed date of the Scheme was 1 April 2011. The Hon''ble High Court
of Judicature of Bombay vide its order dated 22 July 2011, had
sanctioned the Scheme.
Consequent to the transfer of the Retail Division of the Company, the
financial statements of the Company for the year ended 31 March 2012
does not include the operations of the Retail Division business and is
therefore not strictly comparable with the figures of the previous year
ended 31 March 2011. All the assets and liabilities of the Retail
Division as on the appointed date of 1 April 2011 have been transferred
to Thomas Scott India Ltd and excess of assets over liabilities
relating to the Retail Business has been adjusted against the Reserves
in accordance with the terms of the Scheme. Further the investment in
Thomas Scott India Ltd existing prior to the date of Demerger was
cancelled in accordance with the Scheme.
10. Information on Related Party Disclosure
A. Enterprises where control exists.
Subsidiaries Vedanta Creations Ltd.
Bang Europa SRO Bang HK Limited
Thomas Scott India Ltd. (Subsidiary till 31.03.2011)
B. Key Managerial Persons (KMP) Venugopal Bang (Chairman)
Brijgopal Bang (Managing Director)
C. Relatives of Key Managerial Persons Balaram Bang
Radhadevi Bang Girdhargopal Bang Rajgopal Bang Nandgopal Bang
D. Enterprises owned or significantly influenced by key management
personnel or their relatives
1) Bang Data Forms Pvt. Ltd.
2) Thomas Scott India Ltd. (from 01.04.2011)