i) Term / Rights attached to Equity shares
The company has one class of equity shares having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend.
During the year ended 31st March,2012 the amount per share dividend
recognized as distributed to equity shareholder is Rs. Nil (Previous
year: Rs. 1.50 Per Share)
In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.
ii) Equity Share Capital includes 29,57,469 Shares issued for
consideration other than Cash, pursuant to Scheme of Amalgamation of
erstwhile Bhilwara Processors Limited with the Company as approved by
the Hon''ble High Court of Rajasthan at Jodhpur.
i) Nature of Security: The Term Loans from Banks are secured by way of
joint equitable mortgage / hypothecation of all immovable and movable
existing and future assets of the Company except book debts ranking
pari passu subject to prior charge created / to be created in favour of
the Company''s bankers on stocks of raw materials, semi-finished,
finished goods for working capital.
iii) None of loans are guaranteed by Directors or Others.
ii) Deferred Tax Assets and Deferred Tax Liabilities have been offset
as they relate to the same governing taxation laws.
i) Bank loans for working capital are secured against hypothecation of
stocks of raw materials, finished goods and goods in process. The same
is also secured by second charge created/to be created in favour of
Company''s Bankers by way of joint equitable mortgage on immovable
properties of the Company which is ranking pari passu and having
floating interest rate ranging from 10.60% to 13.50%
ii) None of Working Capital loans are guaranteed by Directors or Others
There are no Micro, small and medium enterprises to whom the company
owes dues, which are outstanding for more than 45 days as at 31st
March, 2012. This information as required to be disclosed under the
Micro-small and medium enterprises development Act,2006 has been
determined to the extent such parties have been identified on the basis
of information available with the company.
There is no amount of Un-paid dividend, due for payment to the Investor
Education and Protection Fund under Section 205C of the Companies Act,
1956 as at the year end .
i) Disposal from Gross Block represents sale / transfer / discard of
fixed assets and adjustment of lease rent.
ii) Deduction in depreciation is on account of Sale / Transfer /
discard of Fixed Assets.
iii) Gross block and Net Block of fixed assets includes Rs. 1096.26 Lac
(P.Y. Rs. 1096.31 Lac) and Rs. 646.36 Lac (P.Y. Rs. 728.21 Lac) respectively
on account of revaluation of fixed assets carried out in past by
erstwhile Bhilwara Processors Limited. Depreciation of Rs. 81.82 Lac
(P.Y. Rs. 87.20 Lac) has been charged to statement of Profit & Loss on
these revalued assets.
iv) No provision is required for impairment of assets according to
AS-28 ''Impairment of Assets as the value in use as estimated by the
management, is higher than the carrying amount of the assets as on
Balance Sheet date. In order to arrive at the value in use, the company
has reviewed the future earnings of the remaining useful life of all
its cash generating units as at Balance Sheet date which has been
discounted at the average long term lending rate of the Company.
v) The commercial production of 20 Nos. Toyota Airjet weaving machines
have commenced during the year w.e.f. 01.01.2012. Preoperative
expenditure incurred up to the date of commencement of commercial
production is Rs. 43.26 Lacs.
Trade Receivable includes Rs. 39.64 Lacs (Previous year Rs. Nil)
receivables from related parties.
Short term loans and advances includes Rs. Nil (Previous year Rs. Nil)
receivables from Directors/ officers/ Companies and firms under same
The Company has complied with Accounting Standard 15 (Revised 2005) and
the required disclosure are given hereunder:
The estimation of future salary increase considered in actuarial
valuation, take account of inflation, seniority promotion and othe
relevant factors, such as supply and demand in the employment market
etc. The above information is certified by the Actuary. Th< estimate of
contribution for the next year as per actuarial valuation is as
a) Gratuity - Rs. 51.29 lac
b) Earned Leave - Rs. 12.01 lac
1. SEGMENT REPORTING
The Company''s operation predominantly relates to Textile & generation
of Wind power. On the basis of assessment of the risk and return
differential in terms of AS-17, the Company has identified Textile and
Wind Power as primary reportable segments. Further the geographical
segment have been considered as secondary segment and bifurcated into
Domestic & Export segments.
The revenue and expenditure in relation to the respective segment have
been identified and allocated to the extent possible. Other items i.e.
interest expenses, income tax, etc. not allocable to specific segments
are disclosed separately as unallocated and adjusted directly against
the total income of the Company.
2. RELATED PARTY TRANSACTIONS
a) Enterprises that directly, or indirectly through one or more
intermediaries, control or are controlled by or are under common
control with the reporting enterprise (this includes holding companies,
subsidiaries and fellow subsidiaries) - None
b) Associates and joint ventures - None
c) Individuals owning directly or indirectly, an interest in the voting
power of the reporting enterprise that gives them control or
significant influence over the enterprise, and relatives of any such
individual. - None
d) Key management Personnel and their relatives –
Shri Arun Churiwal
Shri Nivedan Churiwal
e) Enterprises over which any person described in (c) or (d) is able to
exercise significant influence.
- RSWM Limited
f) Transactions with Related Parties
The following transactions were carried out with the related parties in
the ordinary course of business:
3. FOREIGN CURRENCY EXPOSURE
(a) The Company hedges its export realizations through Foreign Exchange
Hedge Contracts in the normal course of business so as to reduce the
risk of exchange fluctuations. No Foreign Exchange Hedge Contracts are
taken /used for trading or speculative purpose.
(b) During the year Company has early adopted AS 30 Financial
Instruments: Recognition and Measurement and The effective portion of
such forward contracts is taken into hedging reserve for Rs. 150.00 Lacs
and profit on ineffective portion, not designated as hedge is taken
into statement of profit & loss for Rs. 21.25 Lacs.
(c) The Company has following gross forward contract exposure
outstanding as on balance sheet date which have been designated as cash
flow hedge to its exposure to movements in foreign exchange rates :
4. CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in lac)
S. Particulars This Year Previous Year
(i) Contingent Liabilities
(a) Claims against the Company
not acknowledged as debts 15.52 15.52
(b) Guarantees given by the
Company''s Bankers 134.58 159.38
(i) Bills discounted with Banks 1653.21 1229.78
(ii) Excise duty demand disputed
by the Company 18.65 23.88
(iii) Sales Tax demand of
Erstwhile BSL Wulfing Ltd.,
disputed by the company 31.64 31.64
(a) Estimated value of contracts
remaining to be executed on
Capital Accounts 14.78 617.97
5. PREVIOUS YEAR FIGURES
The financial statements for the year ended 31st March, 2011 had been
prepared as per the applicable, pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Companies Act, 1956, the financial statements for the year
ended 31st March, 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year''s classification. The adoption of Revised Schedule
VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial