Terms/ rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. 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 shareholders.
There is no restriction on distribution of dividend. However same is
subject to the approval of the shareholders in the Annual General
@ The Board of Directors has recommended dividend of Rs.5 per Equity
Share (Previous year Rs.5 per Equity Share and a one time special
dividend of Rs.2.50 per Equity Share ) of Rs.10 each for the year ended
31st March, 2012. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
(a) (i) Securities :
Term Loans are secured/to be secured by first equitable mortgage
ranking pari- passu over the Company''s Immovable Properties situated at
Bhawanimandi (Rajasthan), Kathua (Jammu 8 Kashmir) and Daheli (Gujarat)
and moveable assets (save and except book debts) both present and
future, subject to prior charges created/to be created in favour of
Bankers on moveables including book debts for securing Working Capital
(b) Secured by subservient charge over moveable fixed assets and
current assets of the Company, carries rate of Interest @ 11.25% p.a.
(Previous year 11% p.a.) and repayable within 1 year from the balance
(c) (i) Fixed deposit from public carries rate of interest @ 9.50% to
10% p.a. ( Previous year 8.50% to 9% p.a.) and are repayable after 2 to
3 years ( Previous year 2 to 3 years) from the date of acceptance of
(ii) Current maturities of fixed deposits includes amount accepted from
related parties Rs.678.20 lakhs.(Previous year Rs.504.60 lakhs)
(i) Provision of disputed statutory matters are on account of legal
matters, where the Company anticipates probable outflow. The amount of
provision is based on estimate made by the Company considering the
facts and circumstances of each case. The timing and amount of cash
flow that will arise from these matters will be determined by the
relevant authorities only on settlement of these cases.
(ii) Figures in brackets represents previous year''s amounts.
* The Company has not received any intimation from its suppliers being
registered under Micro, Small and Medium Enterprises Development Act,
2006 (MSME). Hence the necessary disclosure required under MSME Act,
2006 can not be made. However, the Company generally makes payment to
all its suppliers within the agreed credit period (generally less than
45 days) and thus the Management is confident that the liability of
interest under this Act, if any, would not be material.
1 Land includes Freehold Land of Rs.511.11 lakhs( Previous year
Rs.382.43 lakhs ) and Leasehold Land of Rs.409.27 lakhs ( Previous year
Rs.404.27 lakhs ). In case of Kathua unit Leasehold Land for Rs.263.37
lakhs ( Previous year Rs.258.37 lakhs) are pending for registration in
the name of the unit.
2 Fixed assets includes share of the company in a Holiday Flome at
Flaridwar jointly owned with other Bodies Corporates.
3 Additions includes Borrowing Cost Rs.20.28 lakhs ( Previous Year Nil)
8 Employees cost Rs.7.86 lakhs ( Previous Year Nil)
# Represents Amortisation of Lease Rent.
@ The same has been recognised by the Company, represents that portion
of MAT liability, which can be recovered and set off in subsequent
years based on the provisions of Section 115JAA of the Income Tax Act,
1961. The management based on the present trend of profitability and
also the future profitability projections, opines that there would be
sufficient taxable income in foreseeable future, which will enable the
Company to utilise MAT credit entitlement.
# Includes Rs.108.33 lakhs (Previous year Rs.108.33 lakhs) being not
allowed by Excise Department towards simultaneous claim for rebate of
duty on input 8 finished goods, hence Company has filed writ petition
before the Hon''ble Rajasthan High Court, Jaipur against the order.
Pending disposal of appeal by the Hon''ble High Court, above amount has
been considered good by the Management.
2012 31st March''
NOTE NO. 1
Contingent Liabilities and Commitments
(A) Contingent Liabilities (Not provided
for) in respect of:
1 Claim against the Company not
acknowledged as debts:
a) Labour Matters, except for which the
liability is unascertainable 84.31 93.84
b) Demand raised by Excise Department
for various matters 66.28 66.28
c) Demand for Service Tax, being
contested by the Company 23.91 23.91
d) Demand for Entry Tax (including
penalty & interest): 365.25 317.47
(stay granted by the Tribunal)
Note: The management believes that the Company has a strong chance of
success in above mentioned cases and hence, no provision their against
is considered necessary.
2 Bills Discounted with Bankers 1961.03 5696.09
(Since Realised upto 30.04.2012 Rs.1106.11 lakhs, Previous year
3 The Company has procured certain capital goods under EPCG Scheme at
concessional rate of duty. As on 31st March, 2012, the Company is
contingently liable to pay differential custom duty Rs.3257.92 lakhs
(Previous year Rs.4334.58 lakhs) on such import. In view of past
export performance and future projections, the management is hopeful of
completing the export obligation within stipulated time, and expect no
cash outflow on this account.
1 Estimated amount of Contracts remaining to
be executed on Capital Account [Net 257.27 1249.06
of Advances Rs.208.81 lakhs (Previous Year
Rs.575.20 lakhs)] and not provided for
2 The Kathua unit of the Company has availed certain government
subsidies. As per the terms and conditions, the unit has to continue
production for specified number of years failing which amount of
availed subsidies alongwith interest, penalty etc. will have to be
@ Amount is net of Nil (Previous year Rs.42.72 lakhs) Insurance Subsidy
received under Central Government Scheme.
* Includes excise duty on increase/(decrease) of finished goods stock
Nil (Previous year Rs.6.17 lakhs), Wealth Tax Rs.6.49 lakhs (Previous
year Rs.6.10 lakhs) and Sales tax Rs.56.82 lakhs (Previous year Rs.8.15
$ Amount is net of credit of Rs.196.40 lakhs ( Previous year Rs.209.46
lakhs) for Sharing of Common Expenses with a body corporate.
# Including service tax wherever applicable.
$$ Previous year includes Stores 8 Spares Consumed Rs.9.57 lakhs ,
Power, Fuel and Water Charges Rs.44.07 lakhs and Miscellaneous Expenses
Rs.8.50 lakhs related to earlier years.
## The Company has complied with the announcement issued by the
Institute of Chartered Accountants of India (ICAI) on Accounting for
Derivatives'' requiring provision for loss on all outstanding derivative
contracts by marking them to market rate.
Accordingly Loss on Forward Contracts amounting to Rs.109.70 lakhs
included herein above (Previous year Rs.3.90 lakhs is net off with Net
Gain on Foreign Currency transactions and translation under Note no.
# Net of 4% / 5% interest subsidies received/receivable under TUF
(Technology Upgradation Fund) scheme amounting to Rs.2353.15 lakhs
(Previous year Rs.2634.94 lakhs).
$ Previous year includes Rs.83.64 lakhs related to earlier years .
@ The Minimum Alternate Tax (MAT) provided during the year is as per
provisions of section 115 JB of the Income Tax Act, 1961 and same is
eligible for set off in the specified assessment years as per the
provisions of the Income Tax Act,1961.
2.01 Nature of Operations
The Company is a manufacturer of Synthetic Staple Fibres Yarn, Man made
Fibres blended yarn 8 Cotton Yarn and Fabrics. It has two spinning
units viz. Rajasthan Textile Mills, Bhawanimandi (Raj) 8 Chenab Textile
Mills, Kathua (J 8 K), one weaving 8 processing unit viz. Damanganga
Fabrics, one Garments unit viz. Damanganga Garments and one Home
Textiles unit viz. Damanganga Home Textiles at Village Daheli, near
Bhilad (Gujarat) .
2.02 In respect of Okara Mills, Pakistan, ( Which remained with the
Company as a result of transfer of textiles division of Sutlej
Industries Limited with the Company ) no returns have been received
after 31.03.1965. Against Net Assets of Okara Mills, Pakistan amounting
to Rs.232.35 lakhs, the demerged/transferor Company had received adhoc
compensation of Rs.25 lakhs from Government of India in the year
1972-73. These assets now vest in the Custodian of Enemy Property,
Pakistan for which claim has been filed with the Custodian of Enemy
Property in India .The Company shall continue to pursue its claim for
compensation/ restoration of assets. Hence, further compensation, if
any received, credit for the same will be taken in the year of receipt.
In the year 2003-04, net assets of Rs. 207.35 lakhs (net of
compensation received) as on 31.03.1965, valued at pre-devaluation
Exchange Rate, being diminution in value has been provided for.
2.3 Proportionate expenses reimbursed for utilising services of
establishments maintained by other entities have been included in
respective heads of expenses.
2.4 Segment Reporting
Segment information has been prepared in conformity with the accounting
policies adopted for preparing and presenting the financial statements
of the Company.
As part of Secondary reporting, revenues are attributed to geographic
areas based on the location of the customers.
The following tables present the revenue, profit, assets and
liabilities information relating to the Business/Geographical segment
for the year ended 31.03.2012.
The company has common assets for producing goods for domestic market
and overseas market. However, it has Export Trade Receivable Rs.1703.96
lakhs (Previous year Rs.4049.06 lakhs).
(i) The Company is organised into two main business segments, namely;
- Yarn comprising of Cotton and Man Made Fibres Yarn;
- Fabrics and Apparels comprising woven of Worsted/ Synthetic Staple
Yarn, Fabric Processing, Home Furnishings and Garments.
Segments have been identified and reported taking into account, the
nature of products, the differing risks and returns, the organisation
structure, and the internal financial reporting systems.
(ii) Segment revenue in each of the above domestic business segment
primarily includes sales, other income and export incentives in the
(iii) The segment revenue in the geographical segments considered for
disclosure are as follows:
(a) Revenue within India includes sales to customers located within
India and earnings in India.
(b) Revenue outside India includes sales to customers located outside
India and earnings outside India and export incentives benefits.
(iv) Segment, Revenue, Results, Assets and Liabilities include the
respective amounts identifiable to each of the segments and amounts
allocated on a reasonable basis.
(v) Previous year figures has been regrouped to make them comparable
with current year figures.
$ Remuneration to Key Managerial personnel do not include provision for
leave encashment and contribution to the approved Gratuity Fund of the
Company, which are actuarially determined for the Company as a whole.
Note : The above information has been identified on the basis of
information available with the Company and relied upon by the Auditors.
# Deposited in Indian Rupees in the Bank Accounts maintained by the
shareholders in India.
2.5 The Company has prepared current year account as per presentation
and disclosure requirement of Revised Schedule VI to the Companies Act,
1956 applicable with effect from 1st April, 2011. Previous year figures
have been reclassified/regrouped to conform current year figures.