Moneycontrol
SENSEX NIFTY
Moneycontrol.com India | Notes to Account > Textiles - Weaving > Notes to Account from Garden Silk Mills - BSE: 500155, NSE: GARDENSILK
YOU ARE HERE > MONEYCONTROL > MARKETS > TEXTILES - WEAVING > NOTES TO ACCOUNTS - Garden Silk Mills

Garden Silk Mills

BSE: 500155|NSE: GARDENSILK|ISIN: INE526A01016|SECTOR: Textiles - Weaving
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Mar 24, 16:00
32.65
-1 (-2.97%)
VOLUME 64,389
LIVE
NSE
Mar 24, 15:54
32.75
-1 (-2.96%)
VOLUME 184,418
Array
Mar 15
Notes to Accounts Year End : Mar '16

1. As per the terms of issue and in accordance with the provisions of SEBI (ICDR) Regulation, 2009 and consequent to the rights of conversion exercised by the OCCPS holders, the Board of Directors of the Company at its meeting held on 18th March, 2015, allotted 1949860 equity shares of Rs. 10/- each at a premium of? 25.90 per share in favour of Praful Amichand Shah, Partner of M/s. Isha Enterprises, the promoter and/or promoter group of the Company, against 1487147, 0.001% OCCPS held by the promoters at the beginning of the year,

2. Rights, Preferences and Restrictions attached to Shares Equity Shares:

The Company has one class of shares referred to as equity shares having a par value of Rs.10 each. Each shareholder is entitled to one vote per share held. The dividend as and when proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. In the event of liquidation, Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. As per the terms of issue and in accordance with the provisions of SEBI (ICDR) Regulation, 2009, consequent to the rights of conversion exercised by the OCCPS holders, the Board of Directors of the Company at its meeting held on 18th March 2015 allotted 1949860 equity shares of Rs.10/- each at a premium of Rs.25.90 per share in favour of Praful Amichand Shah, Partner of M/s. Isha Enterprises, the promoter and/or promoter group of the Company.

4. Note on Secured Long-Term Borrowings:

a) Term Loans from Banks and Financial Institutions are secured by first mortgage on pari passu basis on all immovable properties (except those specifically excluded by lenders, of Rupee Term Loans as per Note (b) below), both present and future and first charge by way of hypothecation of all movables (except book debts) both present and future subject to prior charges created/to be created in favor of Bankers for working capital borrowings.

b) Of the Rupee Term Loans from banks:

i) Loans from Bank of India to the extent of Rs.212.29 Lacs (Previous year Rs.212.50 Lacs) are secured by hypothecation of specific machinery of Fully Drawn Yarn (FDY) Project at Jolwa.

ii) Loans from Bank of India to the extent of Rs.1012.61 Lacs (Previous year Rs.1012.61 Lacs) are secured by hypothecation of specific Building and machinery of Texturising plant and Draw Twisting plant at Jolwa.

iii) Term loans from ICICI Bank, Kotak Mahindra Prime Limited and Axis Bank Ltd aggregating to Rs.111.95 Lacs (Previous year Rs.107.69 Lacs) under vehicle finance scheme are secured by an exclusive charge by way of hypothecation of specific vehicles purchased under the arrangements.

iv) Housing Loan of Rs. 472.97 Lacs (Previous year Rs. 565.14 Lacs) from ICICI Bank is secured by hypothecation of residential fiat at Mumbai.

v) Loans from Corporation Bank to the extent of Rs. 3094.00 Lacs (Previous Year Rs. 3094.00 Lacs) are secured by hypothecation of movable fixed assets of Specific Continuous Polymerization Project at Jolwa.

vi) Loan from Union Bank of India to the extent of Rs.4461.40 Lacs (Previous Year Rs.4461.40 Lacs) is secured by hypothecation of specific machinery of Coal Based Thermal Power Project at Jolwa.

5. The Company has unabsorbed depreciation and carried forward losses under Tax laws. In absence of virtual certainty of sufficient future taxable income, net deferred tax assets have not been recognized considering prudence in accordance with Accounting Standard (AS) 22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India.

6. The Company has entered into a Long Term Advance Payment and Supply Agreement (ASPA) with one of its export customers (Refer Note 30(i)&(ii)). Under the ASPA, the Company has received Long Term Advances against Exports to the tune of USD 64.91 Million which will be adjusted against exports to that Customer over 9 years.

7. Cash Credit facilities are part of Working Capital facilities availed from Consortium of Banks and are secured with hypothecation by way of first pari passu charge on all company''s current assets and by way of second pari passu charge on immovable and all movable properties (excluding current assets) of the Company. Rate of Interest on Cash Credit facilities ranged between 10.90% to 11.40%

8. Buyers'' Credit is secured by Letter Of Comfort (LOC) / Undertaking (LOU) forming part of Working Capital facilities issued by the banks. Rate of Interest on Buyers'' Credit facility is 3M Libor 45 bps above the Libor at the relevant time.

9. The Company had recognized liability based on substantial degree of estimation for excise duty payable on clearance of goods lying in stock as on 31st March, 2015 of Rs.1101.67 Lacs as per the estimated pattern of dispatches. On the analogy, provision for such liability works out to be Rs.756.06 Lacs as on 31st March, 2016. Actual outflow is expected in next financial year.

Notes:

10. Buildings include Rs.40.59 Lacs (Previous Year Rs.40.59 Lacs) being cost of shares relating to ownership flat in a Co-Operative Society.

11. Plant & Machineries include foreign currency fluctuation capitalized during the year aggregating to Rs.116.56 Lacs (Previous Year Rs.188.07 Lacs) in accordance with para 46A of Accounting Standards 11 relating to ''The effects of changes in Foreign Exchange Rates''.

12. During the year, 72337 Sq. Mtrs Land at Vareli Shown as stock in trade (Property under Development) of Rs.478.36 lacs has been converted into Fixed Assets.

13. Consequent to the applicability of the Companies Act, 2013 with effect from 1st April, 2014, during the year ended 31st March, 2015, the depreciation is required to be provided as per the useful life specified in the Act or as re-assessed by the Company. Consequently, the Company having followed useful life specification as per Schedule II to the Companies Act, 2013, resultant depreciation for the year ended 31st March, 2016, is lower by Rs.2012.20 Lacs . Carrying value of the assets whose useful life is already exhausted as on 1st April, 2014, amounting to Rs.272.93 Lacs has been adjusted in the opening balance of Retained Earnings.

14. During the year, the Central Government vide its letter dated 28th April, 2015, granted its approval for payment of total remuneration @ Rs.1,43,71,000/- (Rupees One Crore Forty-three Lacs Seventy -one Thousand only) per annum to Shri Praful A. Shah for the period from 01/04/2014 to 31/08/2016.

15. Employee Benefits as per AS 15:

Brief description : The type of defined benefit plans is as follows

Gratuity :

The employee gratuity fund is managed by Garden Silk Mills - Employees Gratuity Fund. The present value of obligation is determined based on actuarial valuation. The liability is fully funded.

Leave Encashment:

The present value of obligation for Leave encashment is determined based on actuarial valuation and is unfunded.

16. Foreign Currency Exposure

The Company uses plain forward contracts for hedging purpose. Foreign currency Loans / ECB which are covered by full currency & interest rate swap. All the contracts are for hedging purpose only and not for any speculative purpose.

Note 17 : Earnings per share (EPS)

Earning Per Share (EPS) computed in accordance with Accounting Standard 20 Earning per Share as notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014

17.1 Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the year attributable to equity shareholders and the weighted average numbers of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares (i.e. Optionally convertible Cumulative Preference shares)

Since, resultant EPS due to dilution decreased net loss per share as compared to basic earning per share, both basic and diluted EPS are considered at basic earnings.

Note 18: Related Party Disclosures

As per Accounting Standard 18 (AS-18) ''Related Party Disclosures'', as notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014, the disclosures of transactions with the related parties as defined in As -18 are given below:

Note : Figures in bracket represent Previous Year''s amount.

Note 19 : Contingent Liabilities and Commitments

1 Contingent Liabilities

(i) Disputed liabilities for Excise Duty not acknowledged as debts Rs.3470.23 Lacs (Previous Year Rs.18987.14 Lacs).

(ii) Disputed liabilities for Income - Tax not acknowledged as debts Rs.133.13 Lacs (Previous Year Rs. Nil).

(iii) Disputed liabilities for Gujarat Sales Tax not acknowledged as debts Rs.70.51 Lacs (Previous Year'' 70.51 Lacs).

(iv) Counter-guarantees to Banks against guarantees issued to third parties Rs.0.50 Lacs (Previous year Rs.23.75Lacs)

(v) Foreign bills Discounted with Banks Rs.74.82 Lacs (Previous Year Rs.4361.81 Lacs)

(vi) Unpaid dividend on 0.001% Optionally Convertible Cumulative Preference shares (now converted into equity shares) not acknowledged as debts Rs.0.01 Lacs (Previous year Rs. 0.01 Lacs)

(vii) Custom Duty on Raw materials Imported under advance license against which export obligation is to be fulfilled is Rs.143.69 lacs (Previous year Nil)

Note 20:

There being no business activity in Garden Exim Pte. Ltd. since its incorporation, the Company submitted its application for winding up / striking off its name from the records of Accounting and Corporate Regulatory Authority (ACRA), Singapore, the regulator. The said application has been approved by the regulator w.e.f. 22nd March, 2016.

Note 21 :

The Company has only one reportable segment viz. ''Textiles'' as per Accounting Standard (AS) 17 of The Institute of Chartered Accountants of India (ICAI).

Note 22 :

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

Source :
Quick Links for gardensilkmills
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.