Note 1- Amounts in the financial statements are presented in Rupees and
rounded off to the nearest decimals thereoff. The previous year figures
have been regrouped / reclassified, wherever necessary to conform to
the current period presentation.
a. Rights, preferences and restriction attaching to various classes of
shares including restriction on distribution of dividends and repayment
The Company has only one class of shares which does not enjoy any
preferential right or bear any restriction with regard to distribution
of dividend or repayment of capital. Each holder of equity shares is
entitled to one vote per share.
Note: The Board of Directors has recommended dividend @ Rs.0.75 per
equity shares of Rs.10/- each on 17,714,800 equity shares for the year
ended 31.03.2012 (Previous year: Rs. Nil).
1.1 In accordance with the West Bengal Incentive Scheme 2000,
announced by the Govt. of West Bengal, the Company has approved an
action plan for availing the subsidy benefits based on the eligibility
certificate issued by the West Bengal Industrial Development
Corporation Ltd. In view of the reasonable uncertainty and the method
of calculation of subsidies, such subsidies are accounted for as and
when the disbursements will be received.
1.2 In the opinion of the Board the Current Assets, Loans and Advances
are not less than the stated value if realised in ordinary course of
business. The provision for all known liabilities is adequate. There is
no contingent liabilities except stated, as informed by the Management.
1.3 The Business of the Company falls under a single segment i.e.
Manufacturing of PP Woven Sacks / Fabric / Liner. In view of the
general classification notified by Central Government in exercise of
powers conferred u/s 211(3C) of Companies Act, 1956 for Companies
operating in single segment, the disclosure requirement as per
Accounting Standard-17 on Segment Reporting is not applicable to the
Company. The Company''s business is mainly concentrated in similar
geographical, political and economical conditions; hence disclosure for
geographical segment is also not required.
1.4 The Company is in communication with its suppliers to ascertain
the applicability of The Micro Small and Medium Enterprises
Development Act, 2006. As on the date of this Balance Sheet the
Company has not received any communication from any of its suppliers
regarding the applicability of this Act to them. This has been relied
upon by the Auditors.
1.5 Changes in Accounting Policy:
During the year, the Company has made provision for employee benefits
in accordance with Accounting Standard-15 (Revised 2005) on Employee
Benefits. Consequent to this change, the employee cost for the current
year is lower by Rs.314,896. Further in accordance with the transitional
provisions of AS-15, the excess provision towards Employee Benefits as
on 01.04.2011 amounting to Rs.236,874 has been credited to the Statement
of Profit and Loss.
1.6 Post employment benefits:
a) Defined contribution plans: The Company has recognised an expense of
Rs.1,005,696 (Previous year Rs.975,364) towards the defined contribution
5 The estimates of future salary increases, considered in actuarial
valuation takes account of inflation, seniority, promotion and other
relevant factors such as supply and demand in employment market.
6 Discount rate is based upon the market yields available on Government
Bonds at the accounting date with a term that matches with that of
1.7 Contingent liabilities:
a) Estimated amount of contract remaining Rs. Nil (Previous year Rs.50,000)
is to be executed on capital account and not provided for.
b) Unexpired bank guarantee is given by the Company against EPGC scheme
and Public issue for Rs.1,948,431(Previous year Rs.193,431).
c) Outstanding liability on account of letter of credit is given by the
Company against electricity security deposit for Rs.2,910,000 (Previous
d) On account of corporate guarantee given to bank for secured loan
taken by group companies, Rs. 99,472,250 (Previous year Rs.99,472,250)
1.8 The Company is under process of investigation as per SEBI ad
interim exparte order WTM/PS/45/ID9/DEC/2011 dated 28.12.2011 in
exercise of the powers conferred upon SEBI under section 11(1), 11(4),
11A and 11B of the said act and issued certain directions for the
Company to comply with. Accordingly the Company recalled the secured
loan from its group company and deposited the same in Escrow account.
1.9 The Company filed a WRIT petition (1971(W) of 2012) dated
04.02.2012 in Calcutta High Court challenging validity of SEBI''s
direction under Article 226. On 08.02.2012, the Company received an
interim order from Court allowing SEBI to continue further
investigation but restrained them to pass further order.
1.10 As a matter of prudence, interest accrued on Escrow Account of
Rs.2,553,937 and TDS there on of Rs.255,394 for the year ended 31.03.2012
has not been accounted for in the Books of Accounts as the matter is
sub judice, the recognition of interest has been postponed in
accordance with AS-9 Revenue recognition.
1.11 Note No 1 to 2.38 forms an integral part of financial statement.