NOTE NO. ''1'' CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on Capital
account Rs. 1,110.85 Lacs (Previous Year Rs. 1,597.45 Lacs) and export
obligation against EPCG licenses Rs. Nil (Previous Year Rs. 6,699.28 Lacs).
NOTE NO. 2.1 Accounting Standard: 15 Employee Benefits, the
disclosures of Employee benefits as defined in the accounting standard
are given below:
1. Defined Contribution Plan
Employer''s contribution to provident fund paid Rs. 772.15 Lacs (Previous
Year Rs. 690.65 Lacs) has been recognized as expense for the year.
2. Defined Benefit Plan
Present value of gratuity and long earned leave obligation is
determined based on actuarial valuation using the projected unit credit
method which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation. Short term earned leave
encashed during the year charged to Statement of Profit and Loss.
Note No.''3'' Accounting Standard 17 - Segment Reporting
The Company is engaged in production of textile products having
integrated working and power generation. For management purposes,
Company is organized into major operating activity of the textile
products. The company has no activity outside India except export of
textile products manufactured in India. Thereby no geographical segment
and no segment wise information are reported.
Note No. ''4'' Accounting Standard 18 - Related Party Disclosure
The Company has identified all the related parties as per details given
below: 1. Relationship:
a) Joint Venture and Associate concerns
Carreman Fabrics India Ltd. Banswara Fabrics Ltd. Treves Banswara
b) Key Management Personnel and Their Enterprises:
Shri Ravindra Kumar Toshniwal
Shri Rakesh Mehra
Shri Shaleen Toshniwal
c) Enterprises where Key Management Personnel has control /interest:
Dhruv Impex Mehra International Lawson Trading Co. Pvt. Ltd. Niral
Trading Pvt. Ltd. Shaleen Syntex Ltd. Moonfine Trading Co. Pvt. Ltd.
Speed Shore Trading Co. Pvt. Ltd. Toshniwal Trust APM Industries Ltd.
d) Relatives of Key Management Personnel and their Enterprises where
transactions have taken place
Shri Rameshwar Lai Ravindra Kr Toshniwal HUF
Shri Ravindra Kumar Toshniwal HUF
Shri Dhruv Toshniwal
Shri Udit Toshniwal
Smt. Prem Toshniwal
Smt. Navneeta Mehra
Smt. Radhika Toshniwal
Smt. Sonal Toshniwal
Smt. Kavita Soni
Ms. Esha Toshniwal
Ms. Diya Toshniwal
Sarvodaya Impex Pvt. Ltd.
Note No. ''5'' Financial and Derivative Instruments
Company has entered into following foreign exchange financial
a) The Company uses foreign currency forward contracts to hedge its
risks associated with foreign currency fluctuations relating to certain
firm commitments on forecasted transactions as approved by Board of
Directors. The Company does not use forward contracts for speculation
purpose. Outstanding forward exchange financial instruments entered
into by the Company for hedging of export/import transaction:
b) Foreign Currency exposure that are not hedged by financial
instruments or forward contracts as at 31* March, 2013 amount to US
Dollar 140.29 Lacs equivalent to Rs. 7,096.25 Lacs (Previous Year US
Dollar 216.47 Lacs equivalent to Rs.11,018.39 Lacs)
Note No. ''6'' Accounting Standard 27 Financial Report of interest in
a) The Company has entered into the Joint Venture with Carreman, France
for 50% ownership interest in jointly controlled entity Carreman
Fabrics India Ltd.
The above Joint Venture Company is incorporated in India. The Company''s
share of assets and liabilities as on 316| March, 2013 and income and
expenses for the year ended on that date in respect of joint venture
entities as per unaudited Financial Statements is given below:
The Company has given guarantee in favour of bankers of Carreman
Fabrics India Ltd. for an amount of Rs. 1,950.00 Lacs (Previous Year Rs.
1,950.00 Lacs) for term loan. [Outstanding as on 31.03.2013 Rs. 744.13
Lacs (Previous Year Rs. 1,092.00 Lacs)].
Note No. ''7'' Accounting Standard : 28 Impairment of Assets:
The Company assessed potential generation of economic benefits from its
business units and is of the view that assets employed in continuing
businesses are capable of generating adequate returns over their useful
lives in the usual course of business, there is no indication to the
contrary and accordingly the management is of the view that no
impairment provision is called for in these accounts.
Note No. ''8'' All assets and liabilities are presented as Current or
Non-current as per the criteria set out in the Revised Schedule VI of
the Companies Act, 1956. Based on the nature of products and the time
between the acquisition of assets for processing and their realization,
the Company has ascertained its operating cycle less than 12 months,
accordingly 12 months period has been considered for the purpose of
Current/Non current classification of assets and liabilities.
Note No. ''9'' The previous year figures have been
regrouped/reclassified wherever it found necessary to correspond with
the current year''s classification/disclosure. Accordingly amounts and
other disclosures for the preceding year are included as and integral
part of the current year''s financial statements and are to be read in
relation to the amounts and other disclosures relating to current year.