1. CONTINGENT LIABILITIES :
i) Guarantees given Rs. 317,10,00,000/-(2009: Rs. 3,121,000,000/-).
ii) Bank Guarantees given Rs. 12,40,000/-(2009 : Rs. Nil).
iii) Taxation matters in respect of which appeal is pending - Rs.
1,53,33,080/- (2009 : Nil).
2. SECURED LOANS:
(a) Cash Credit Facilities of Rs. 1,14,16,861 are secured by first and
exclusive charge hypothecation by way of first charge on stock and
receivables excluding goods acquired under LC basis, collateral
security of shares of Pantaloon Retail (India) Ltd and guarantee of two
directors of the company.
(b) Term Loan of Rs. 83,34,00,927 is secured by First and exclusive
charge of land and building, plant and machinery, and furniture and
fixtures of the specified assets and personal guarantees of the
(c) Hire Purchase is secured by hypothecation of specific assets.
(d) Following loan installments are due during next 12 months. Terns
Loans - Rs. 1,25,00,000 (2009 : Rs. 2,34,99,62,480) Hire Purchase Loans
- Rs. 1,33,053/- (2009 : Rs. 2,87,750)
3. Some of the balances in Sundry Debtors, Sundry Creditors, Advances
and Deposits are subject to confirmation, reconciliations and
adjustments if any, which in the opinion of management will not be
significant and would be carried out when settled.
4. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated, if realised in the ordinary
course of the business. The provision for all known liabilities are
adequate and not in excess of the amount considered reasonably
5. The Company has not received any intimation from Suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the said Act have not been given.
6. There are no amounts due and outstanding to be credited to the
Investor Education and Protection Fund.
7. Segment Reporting :
In accordance with the Notified AS-17 under the companies (Accounting
Standards) Rules 2006 on Segment Reporting under Companies Accounting
Standard Rule, 2006, the company has been identified two reportable
businesses segment i.e. Fabric Business and Share Business, which are
regularly evaluated by the management, in deciding allocation of
Reserves and assessment of performance.
8. Licensed Capacity:
The Company is not required to obtain any license under Industries
(Development & Regulation) Act, 1951, therefore legal licensed capacity
is not applicable.
9. Investments Converted to Stock in Trade :
During the year on April 1, 2009 investment in 11,786,922 equity shares
of Rs. 10/- each fully paid up in Indus League Clothing Limited was
converted to Stock in Trade at weighted average cost of Rs. 20.18 per
10. During the year Stripes Apparels Limited merged into Kamadgiri
Synthetics Limited and the Company received 1,409,884 equity shares in
Kamadgiri Synthetics Limited in exchange of its shareholding in Stripes
11. RELATED PARTY DISCLOSURE :
Disclosures as required by the Accounting Standard 18 Related Party
Disclosure is given below : a) List of Related Parties & Key
Management Personnel and Relatives
Associate Companies/Firm Key Management Personnel
1. Future Ventures Limited 1. Mr. Vijay Biyani - Managing Director
2. Kamadgiri Synthetics Limited (up to September 25, 2009)
2. Mr. Anil Biyani - Whole-time Director
3. Mr. Sunil Biyani- Whole-time Director
1. Sain Advisory Services Private Limited
2. Shendra Advisory Services Private Limited
1. Indus League Clothing Ltd. (subsidiary upto January 29, 2010)
2. Weavette Texstyles Limited
3. Anchor Investment & Trading Private Limited
b) List of enterprise over which Key Management Person is able to
exercise significant influence
1. Manz Retail Private Limited
2. Vishnu Mall Management Private Limited
3. Dhanshree Fashions Private Limited
4. Utsav Mall Management Co. Private Limited
12. Disclosure pursuant to Accounting Standard 15 - Employee Benefits
Defined Contribution Plan
Amount recognised as an expense and included in Schedule 16 under the
head Contribution to Provident and Other Funds of Profit & Loss
Account Rs. 2,57,958/- (Rs. 7,24,676/-).
Defined Benefit Plan
The following tables summaries the components of net benefit expenses
in the profit and loss account and amounts recognized in the balance
sheet for the respective plans.
13. Store and Spares represents Obsolete Stocks Scrapped and written
14. Additional information pursuant to the provisions of Paragraphs 3,
4c & 4d of part II of Schedule VI to the Companies Act, 1956 to the
extent nil or not applicable has not been given.
15. Previous years figures have been regrouped, re-classified, and
recasted and rearranged wherever necessary.