A. Company overview:-
Kamadgiri Fashion Limited is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its
shares are listed at Bombay Stock exchange in India. The Company is
engaged in the manufacturing and job in textile industries.
a) Terms / rights attached to equity shares
The company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian Rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2012, the amount of per share divided
recognized as distribution to equity shareholders was Rs. 0.50(31 st
March 2011 :Rs.1.50).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
i) Term loan from bank was sanctioned during the financial year
2010-2011 and carries interest rate @13.75% . The loan is repayable in
66 months with 6 months moratorium repayable in 60 equal monthly
installments of Rs. 18.60 Lacs each along with interest, from the last
disbursement date. The loan is secured by equitable mortgage of Factory
Land and Building hypothecation of Plant and Machineries and secured .
ii) Vehicle loan from bank was taken during the current financial year
and carries interest @ 10.35%. The loan is repayable in 35
installments of Rs. 0.40 Lacs along with the interest, from the proceeding
month of the approval letter, the loan is secured by hypothecation of
iii) The Company has given premises on operating lease for a period of
99 years commencing from the 1 st January 2007 which is non cancellable
for 99 years. Interest free refundable deposits Rs. 63 lacs received by
the Company, has been disclosed under unsecured loans as deposits.
*Cash credit from banks is secured by hypothecation of present and
future stock of raw materials, stock in process, finished goods, stores
and spares, book debts, outstanding monies, receivable and carries
interest @ 11.25% to 15.25 % and the same is repayable on demand
No interest is paid / payable during the year to any enterprise
registered under Micro Small and Medium Enterprises Development Act,
2006 ( MSME) The above information has been determined to the extent
such parties could be identified on the basis of the status of
suppliers under MSME.
* Includes statutory dues, advances / deposits from customers and
provisions for expenses
* Investment held in the shares of Jagruti Synthetics Limited, being of
long term nature, is stated at cost of acquisition and no adjustment
has been made in respect of diminution in the value of such investment.
** Includes advance to employees , advances to suppliers and right
* Pledged with bankers against margin money of Rs. 12.13 Lacs and against
bank guarantee of Rs. 0.70 Lacs (31st March 2011 Margin money Rs. 9.21 Lacs
and bank guarantee Rs. 20.80 Lacs)
* other non operating income includes Insurance claim received Rs. 9.43
Lacs (31st March 2011 Rs. 7.51 Lacs)
Defined Benefit Plan
The employees'' gratuity fund scheme is unfunded . The present value of
obligation is determined based on actuarial valuation using the
projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employees benefit entitlement and
measures each unit separately to build up the final obligation.
The obligation for leave encashment is recognized in the same manner as
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
Experience adjustments have not been disclosed as details information
was not received from the actuary.
1 RELATED PARTY DISCLOSURES:
As per Accounting Standard 18, the disclosures of transactions with the
related parties are given below
2 The company is engaged in manufacturing (in house and outsourced)
fabrics, ready to wear garments. Considering the overall nature, the
management is of the opinion that the entire operation of the company
falls under one segment i.e. Textiles and as such there is no separate
reportable segment for the purpose of disclosures as required under
Accounting Standard -17 Segment Reporting.
3 CONTINGENT LIABILITIES AND OTHER COMMITMENTS
(Rs. in Lacs)
31st March 2012 31st March 2011
(I) Contingent Liabilities
(a) Claims against the company
not acknowledged as debt 378.34 145.55
(b) Guarantees 79.48 20.80
(a) Estimated amount of contracts
remaining to be executed on
capital account and not
provided for - 107.55
(b) Other commitments - Pending
obligation under EPCG Scheme 334.45 334.45
4 As notified by Ministry of Corporate Affairs, Revised Schedule VI
under the Companies Act, 1956 is applicable to the Financial Statements
for the financial year commencing on or after 1st April 2011.
Accordingly, the financial statements for the year ended 31st March
2012 are prepared in accordance with the Revised Schedule VI. The
amounts and disclosures included in the financial statements of the
previous year have been reclassified to conform to the requirements of
Revised Schedule VI.
* Dividend for the F.Y. 2010-11 was declared in AGM held on 23rd August
2011 and paid on 27th August 2011