Bombay Dyeing and Manufacturing Company
BSE: 500020 | NSE: BOMDYEING | ISIN: INE032A01015 | Diversified
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Mar '09 |
(1) Capital Commitments Estimated amount of contracts to be executed on capital account and not provided for as at 31st March, 2009 - Rs 6.30 crores (31.3.2008 Rs. 42.52 crores). (2) Share Capital Under orders from the Special Court (Trial of Offences relating to Transactions in Securities) Act, 1992, - the allotment against 928 [2007- 2008- 2,768] warrants carrying rights of conversion into equity shares of the Company have been kept in abeyance in accordance with section 206A of the Companies Act, 1956, till such time as the title of the bonafide owner is certified by the concerned Stock Exchanges. During the year 1,840 (2007-2008- 660) equity shares have been allotted out of the shares kept in abeyance. (3) Share Warrants The Company had on 7th September, 2007 alloted 19,30,000 warrants on a preferential basis to The Bombay Burmah Trading Corporation Ltd. (BBTCL), a company in the promoter group.The warrants carry an option to apply for and be allotted in one or more tranches, one equity share of Rs. 10/- each per warrant within 18 months from the date of the issue (validity period) at an issue price of Rs. 616 each as determined in accordance with the SEBI prescribed pricing formula as per the provisions of Chapter XIII of the SEBI (Disclosure and Investor Protection) Guidelines, 2000. The Company had received an advance equivalent to 10% of the issue price i.e. Rs. 61.60 per warrant aggeragating Rs. 11.89 crores on allotment of the warrants in terms of the SEBI guidelines. BBTCL did not exercise the option to subscribe to the equity shares of the Company, as attached to the warrants, within the validity period, whereupon the option expired and the amount aggregating Rs. 11.89 crores referred to hereinabove was forfeited in terms of the SEBI (DIP) Guidelines and conditions attached to the warrants. The forfeited amount of Rs. 11.89 crores has been credited to Capital Reserve. (4) (a) Buildings (see Schedule 5 - Fixed assets) include residential flats at Roha at a cost of Rs. 0.13 crore which is held for disposal, the net book value in respect of which is Rs. 0.03 crore. (b) Borrowing costs capitalised during the year is Rs. 10.98 crores (2007-2008 Rs.59.53 crores) of which an amount of Rs.4.22 crores (2007-2008 Rs. Nil) is included in closing stock of real estate under development. (5) The Companys Textile Processing Plant at Ranjangaon is required and designed to operate 24 hours a day, as certified by the Chartered Engineers and is thus treated as a Continuous Process Plant (CPP), Consequently, depreciation has been charged 5.28% as applicable to CPP instead of the general rates, applicable to plant and machinery, of 10.34%. The auditors have relied on the Certificate from Chartered Engineers, without any verification being a technical matter. (6) During the year 2000-2001, pursuant to the scheme of amalgamation between Seal Investments Limited (SIL) and the Company, sanctioned by the jurisdictional court on 20th April, 2001, the assets, liabilities and reserves of SIL had been transferred to and vested in the Company with effect from 1st October, 2000. The Company is taking necessary steps for securing transfer of some of the assets and liabilities in the name of the Company. (7) Inventory Pursuant to the implementation of SAP during the year, the method of determination of cost of certain raw materials and work-in-progress has undergone a change. Cost of cotton and fibre which was determined on specific identification basis and that of ready finished cloth on a first-in-first-out method upto the previous year, has been determined as on March 31, 2009 on the weighted average method. It has not been possible to ascertain the impact of this change, however in the opinion of the management the same is not expected to materially impact the profit and loss statement. (8) The Company has during the year ended 31 st March, 2009 converted a part of the freehold land under real estate development from fixed assets to stock in trade at market value and the difference between the market value and cost amounting to Rs. 390.11 crores has been credited to Revaluation Reserve. The Company has pursuant to the Memorandum of Agreement sold a part of the commercial building being constructed on such land to White Horse Real Estate Private Ltd. (WHREPL), a wholly owned subsidiary acquired on 31s December, 2008 and recognized a revenue there against of Rs. 235.02 crores (including revenue from the undivided interest in the underlying free hold land therein amounting to Rs. 193.34 crores in line with the Companys stated accounting policy) in the Profit and Loss Account. In line with the provisions of Accounting Standard 21 - Consolidation of Financial Statements, the said subsidiary has been excluded from consolidation in view of the intended investment being of temporary nature. (9) Debtors and creditors balances are subject to confirmation and consequent reconciliation, if any. (10) Advances recoverable in cash or in kind or for value to be received Advances recoverable in cash or in kind or for value to be received include Rs. 0.88 crore due from directors of the Company of which Rs. 0.71 crore is on account of remuneration recoverable from Mr. M.K.Singh, Executive Director, whose services were terminated on 6th July, 2008 based on certain acts of omission and commission detected. A suit has been filed by the company in the High Court of Judicature of Mumbai. The matter is sub-judice. (11) Deposit with a joint venture company Deposit of Rs. 15.22 crores (2007-2008 Rs. 15.22 crores) with a joint venture company is a shareholders deposit with PT. Five Star Textile Indonesia (PTFS). This deposit, originally denominated in U.S. $, was w.e.f. 1st April 2003 converted to Indian rupees, as approved by the Board of Directors of the Company and by the Board of Commissioners of PTFS. This deposit was earlier repayable by PTFS after it clears, in full, the term loan availed by it from a consortium of Indian nationalised banks, which was to be effected in installments spread out between 1996 and 2010. During the year 2000-2001, PTFS has prepaid the aforesaid term loan by raising funds through other borrowings subject to annual review and the aforesaid deposit is now repayable by PTFS after these borrowings are eventually repaid or during the year 2010, whichever is earlier. |
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| Source : Religare Technova | |
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