1.1 In view of the inadequacy of profits during the year 2012-13, the
remuneration paid to the Whole time Director Shri Suhai P. Shah is
subject to the approval of the Central Government as required in
accordance with the provisions of Schedule XIII of the Companies Act,
1956. The Central Government had granted its approval for payment of
remuneration in case of Shri Suhail P. Shah upto 30th November, 2012.
The Company has already filed an application with the Central
Government seeking their approval for payment of remuneration to him
for the period from 1st December, 2012 to 30th November, 2015.
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 Foreign Currency Exposure
The Company uses plain forward contracts for hedging purpose. Foreign
currency Loans / ECB which are covered by full currency and interest
rate swap. All the contracts are for hedging purpose only and not for
any speculative purpose.
3.1 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 4 : Contingent Liabilities and Commitments
1. Contingent Liabilities
(i) Disputed liabilities for Excise Duty not acknowledged as debts
Rs.41796.85 Lacs (Previous YearRs. 11818.33 Lacs).
(ii) Disputed liabilities for Gujarat Sales Tax not acknowledged as
debts Rs.70.51 Lacs (Previous Year Rs.70.51 Lacs).
(iii) Customs duty on Capital Goods and Raw Materials imported under
Advance License/EPCG Scheme, against which export obligation is to be
fulfilled isRs. Nil (Previous year Rs.3083.07 Lacs).
(iv) Counter-guarantees to Banks against guarantees issued to third
parties Rs.61.75 Lacs (Previous year Rs.61.75 Lacs)
(v) Foreign bills Discounted with BanksRs.5545.04 Lacs
Estimated amount of contracts pending on Capital Accountand not
provided forRs. Nil (Previous Year Rs.2912.98 Lacs).
The Company has only one reportable segment viz. Textiles''as per
Accounting Standard (AS) 17 ofThe Institute of Chartered
Accountants of India (ICAI).
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification