1.1 During the year, the Central Government granted its approval for
payment of remuneration to Shri Suhail P. Shah for an aggregate amount
of Rs. 1,43,51,960/- per annum for a period of 3 years with effect from
01/12/2012 to 30/11/2015. Further the Company has already filed an
application with the Central Government seeking their approval for
payment of remuneration to Shri Praful A. Shah as approved by
shareholders for the period from 1st September, 2013 to 31st August,
2016. However, the actual remuneration paid to Shri Praful A. Shah
during the year 2013-14 is in accordance with the provisions of Part II
Section II of Schedule V to the Companies Act, 2013. The arrears if
any, would be paid on receipt of approval of Central Government.
1.2 Employee Benefits as per AS 15:
Brief description :The type of defined benefit plans is as follows:
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.
The present value of obligation for Leave encashment is determined
based on actuarial valuation and is unfunded.
2.1 Share warrants issued during the year (Refer Note: 4.1 ) being
priced at fair value, are not considered as dilutive and hence they are
ignored in the computation of diluted earning per share.
Note 3 : Related Party Disclosures
As per Accounting Standard 18, the disclosures of transactions with the
Related Parties are as given below: (i) List of related parties with
whom transactions have taken place and relationships:
Sr. No. RelationshipsName of Related Party
1 Group Company SuratTextile Mills Limited
2 Key Management Personnel Shri Praful A. Shah
Smt. Shilpa P. Shah*
Shri Sanjay S. Shah
Shri Alok R Shah
Shri Suhail R Shah
3 Relatives of Key management personnel
Smt. Shilpa P. Shah and their enterprises where transactions Smt.
Sujata V. Parsai have taken place. Shri V. K. Parsai
Armorax Business Centre Pvt. Ltd. ComoTextile Pvt. Ltd. Sorrento
Textile Pvt. Ltd. Amalfi Textile Pvt. Ltd. _Tissue Textile (India)
* Resigned as member of the Board w.e.f 1st May, 2012.
Note 33 : Contingent Liabilities and Commitments
1. Contingent Liabilities
(i) Disputed liabilities for Excise Duty not acknowledged as debts Rs.
50264.32 Lacs (Previous Year Rs. 41796.84 Lacs),
ii) Disputed liabilities for Gujarat Sales Tax not acknowledged as
debtsRs. 70.51 Lacs (Previous YearRs. 70.51 Lacs),
(iii) Counter-guarantees to Banks against guarantees issued to third
partiesRs. 24.02 Lacs (Previous yearRs. 61.75 Lacs),
(iv) Foreign bills Discounted with Banks Rs. 2902.43 Lacs (Previous Year
Rs. 5545.04 Lacs).
Estimated amount of contracts pending on Capital Account and not
provided for Rs.Nil (Previous Year Rs.Nil)
Note 4: 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 5: Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification