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SEL Manufacturing Company
BSE: 532886|NSE: SELMCL|ISIN: INE105I01012|SECTOR: Textiles - General
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« Mar 10
Notes to Accounts Year End : Mar '11
1.  There are contingent liabilities in respect of the following items:
 No outflow is expected in view of the past history relating to these
 items:- 
                                                        (Rs. in Crores)
 
 Particulars                             March 31, 2011  March 31, 2010
 
 (i) Export Bills Discounted                      18.81           32.63
 
 (ii) Estimated amount of capital 
 contracts remaining to be executed 
 net of advances                                  38.33           19.97
 
 (iii) Income Tax demand for AY 2005-06 
 to AY 2008-09 (Previous Year AY 2004-05 
 to AY 2007-08) net of deposit of Rs. 
 1.91 crores (Previous year Rs. 3.61 crores)       1.16            1.86
 against the said demand, contested in appeals.  
 
 (iv) Guarantees given by the Company on behalf
 of SEL Textiles Ltd. (Subsidiary Company)       316.15           67.15
 
 2.  Earnings Per Share
 
 The calculation of Earnings per Share as disclosed in the statement of
 Profit & Loss has been in accordance with Accounting Standard (AS)-20
 on Earning per Share issued by Companies (Accounting Standards)
 Rules, 2006.
 
 3.  Debit or Credit balances on whatsoever account are subject to
 confirmation from parties; as such their effect on profit and loss
 account cannot be reflected.
 
 4.  In opinion of the Board, all the current assets, loans & advances
 have the value on realization in the ordinary course of business
 at-least equal to amount at which they are stated.
 
 5.  Current Assets, Loans & Advances includes Rs. 1.81 Cores (Previous
 Year Rs. 20.85 Crores) due from firms as debtors in which directors of
 the company are interested as partners.
 
 6.  Expenses on issue of Shares & GDRs are being adjusted against
 Securities Premium Account as permitted by the Section 78 of the
 Companies Act.
 
 7.  There are no outstanding forward exchange contracts.
 
 8.  Segment Reporting
 
 Segment Information as required by Accounting Standard (AS)-17 on
 Segment Reporting, issued by Companies (Accounting Standards) Rules
 2006, has been compiled on the basis of the consolidated financial
 statements and is disclosed in the notes to accounts forming part of
 the consolidated financial statements in accordance with the above
 standard. Therefore segment information in respect of separate
 financial statements of the company is not being disclosed in the stand
 alone financial statements.
 
 9.  The Company has purchased, through auction by Official Liquidator,
 the assets of a closed unit namely, Mangla Cotex Limited for Rs. 6.70
 Crores. However, so far the Company has paid Rs. 1.675 Crores as
 advance for property, which has been shown under Capital Work in
 Process & Advances, and the possession of the same would be taken only
 after the confirmation of auction by the High Court.
 
 Note: Balances with non-scheduled banks in Overseas are translated at
 the year-end rates of exchange.
 
 10.  The tax paid u/s 115JB (MAT) of Income Tax Act, 1961 has been
 treated as an asset in accordance with the provision of the Guidance
 note for Credit available in respect of Minimum Alternate Tax under the
 Income Tax Act, 1961 issued by the Institute of Chartered Accountants
 of India. The MAT credit entitlement for the current year is on the
 basis of statement of assessable income prepared on provisional basis.
 
 11.  In accordance with the Accounting Standard (AS)-28 on Impairment
 of Assets, the Company has access as on the balance sheet date, whether
 there are any indications (listed in paragraph 8 to 10 of the Standard)
 with regard to the impairment of any of the assets. Based on such
 assessment it has been ascertained that no potential loss is present
 and therefore, formal estimate of recoverable amount has not been made.
 Accordingly no impairment has been provided in the books of account.
 
 12. Cheques issued but not presented for payment amounting to Rs.
 665,981,773/- (Previous Year Rs. 308,253,944/-) have been shown as Rs.
 363,641,944/- (Previous Year Rs. 84,329,964/-) under the head other
 liabilities after netting of Cheques in Hand Rs. 302,339,829/-
 (Previous Year Rs. 223,923,980/-).
 
 # Excludes provision for gratuity, which is determined on the basis of
 actuarial valuation done on overall basis for the company.
 
 13.  (i) In 2009-10 the Company has issued 5,600,000 Global Depositary
 Receipts (GDRs) at the rate of USD 1.52 per GDR (USD 8,512,000), out of
 which USD 8,392,000 amounting to Rs. 39.48 crores (after netting of USD
 120,000 for GDRs issue expenses) is still unutilized and lying with
 Overseas Bank, in the form of fixed deposit.  The said amount is shown
 in Balances with Bank in Fixed Deposits Account in Annexure-J of Cash
 & Bank Balances.
 
 (ii) During the year the Company has issued two series of Global
 Depositary Receipts (GDRs). The first series being of 3,000,000 Global
 Depositary Receipts (GDRs) at the rate of USD 15.50 per GDR amounting
 to Rs. 207.20 crores (USD 46,500,000). The second series being of
 3,500,000 Global Depositary Receipts (GDRs) at the rate of USD 10.00
 per GDR amounting to Rs. 162.96 crores (USD 35,000,000). The funds have
 been used for working capital/capital expenditures.  Out of total
 receipts USD 2,500,000 amounting to Rs. 11.64 crores is still
 unutilized and lying with Overseas Bank and the said amount is shown in
 Balances with Bank in Annexure-J of Cash & Bank Balances.
 
 14.  (i) In 2009-10 the Company had allotted 6,600,000 equity warrants
 on preferential basis, carrying an option to the holder of such
 warrants to subscribe to one equity share of Rs. 10/- each at a premium
 of Rs. 60/- per share for every warrant held, within 18 months from the
 date of allotment (i.e. from Sept. 18, 2009), in terms of SEBI (DIP)
 Guidelines read with SEBI (Issue of Capital & Disclosure Requirements)
 Regulation, 2009. Out of above, holders of 5,700,000 equity warrants
 have exercised this option by depositing the remaining amount in the
 year 2009-10 and the balance 900,000 equity warrant holders have
 exercised this option by depositing the remaining amount during the
 year under consideration.
 
 (ii) During the year the Company had allotted 3,090,000 equity warrants
 on preferential basis, carrying an option to the holder of such
 warrants to subscribe to one equity share of Rs. 10/- each at a premium
 of Rs. 64/- per share for every warrant held, within 18 months from the
 date of allotment (i.e. from Sept. 27, 2010), in terms of SEBI (DIP)
 Guidelines read with SEBI (Issue of Capital & Disclosure Requirements)
 Regulation, 2009. All of the aforesaid holders of 3,090,000 equity
 warrants have exercised this option by depositing the amount during the
 year itself.
 
 15.  The Micro, Small and Medium Enterprises Development Act, 2006 come
 into force w.e.f. 02.10.2006. The Company has not received any
 confirmation from its vendors / service providers regarding their
 status of registration under the said act. Hence, the disclosures
 required under the said Act have not been given.
 
 16.  The Company has under taken export obligation of Rs. 2101.86
 crores to export of goods against the issuance of EPCG Licenses for the
 import of capital goods and duty free procurement of indigenous capital
 goods etc. Out of this, export obligations of Rs. 567.11 crores have
 already been fulfilled up to 31st March 2011.
 
 17.  The summarized position of Post-Employment benefits and long term
 employee benefits recognized in the Profit & Loss Account and Balance
 Sheet as required in accordance with Accounting Standard (AS15) are as
 under:
 
 b) Provident Fund:
 
 During the year the company has recognized an expense of Rs
 22,092,868/- (Previous Year Rs. 11,291,220/-) towards provident fund
 scheme.
 
 c) Leave Encashment 
 
 During the year the company has recognized an expense of Rs 4,783,052/-
 (Previous Year Rs. 5,038,964/-).
 
 18.  Current Liabilities include Rs. 28,348/- (Previous Year Rs
 28,348/-) on account of Unclaimed Dividend. Unclaimed Dividend for the
 year 2007-08 does not include any amount due and outstanding to be
 credited to investors Education and Protection Fund.
 
 19.  A sum of Rs. 0.47 crores (Previous Year Rs. 0.01 crores) is
 included in profit & loss account under different expenditures heads
 representing prior period items.
 
 20.  The figures in bracket indicate deductions.
 
 21.  The figures of the previous year have been rearranged and / or
 regrouped, wherever considered necessary to facilitate comparison.
 
 22.  Additional information as required by paragraph 3 & 4 of Part II
 of Schedule VI of the Companies Act, 1956 and Balance Sheet abstract
 and Companys General Profile are enclosed herewith.
Source : Dion Global Solutions Limited
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