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Moneycontrol.com India | Notes to Account > Textiles - Spinning - Cotton Blended > Notes to Account from GTN Industries - BSE: 500170, NSE: GTNIND
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GTN Industries

BSE: 500170|NSE: GTNIND|ISIN: INE537A01013|SECTOR: Textiles - Spinning - Cotton Blended
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Notes to Accounts Year End : Mar '16

1. During the year, the Company had announced a Voluntary Retirement Scheme - 2015 (‘Scheme’) for its personnel at Medak and Doubling Units in terms of which the Company has paid an amount of Rs. 941.99 lacs which has been disclosed as an exceptional item.

2. a) In the opinion of the Management, assets other than Fixed Assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all other known liabilities is adequate and not in excess of the amount reasonably necessary.

b) Certain balances in Trade Payables, Other Current Liabilities, Trade Receivables and Loans and advances are subject to confirmations, reconciliation and adjustments. In the opinion of the Management, adjustments, if any, on such confirmations/reconciliations will not have material impact on the loss for the year.

3. Contingent Liabilities and commitments (to the extent not provided for):

4. Contingent Liabilities

5. Disputed Drawback and Excise Duty - Rs.18.69 lacs (Previous Year Rs. 19.36 lacs).

6. Disputed Income Tax Interest up to the date of demand - Rs. 38.92 lacs (Previous Year Rs. 38.92 lacs)

7. Cross Subsidy Charges - Rs. 122.08 lacs (Previous Year Rs. Nil)

8. Disputed Other dues (Gram Panchayat Tax, FSA charges, Non-agricultural Tax, Sewerage Cess etc.): Rs.164.52 lacs (Previous Year Rs. 177.06 lacs).

9. Commitments

10. Estimated amount of contracts remaining to be executed on capital account and are not provided for: Rs. 91.34 lacs (Previous Year Rs. 91.34 lacs); net of advances of Rs. 8.99 lacs (Previous Year Rs. 8.99 lacs).

11. Arrears of Preference Dividend, including Dividend Distribution Tax, Rs. 30.83 lacs (Previous Year Rs. 99.91 lacs).

12. The Company’s pending litigations comprise of claims against the Company and proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

13. Employee Benefit Plans

The following table set out the status of the gratuity plan as required under AS 15:

*The Company has entered into a Group Gratuity Scheme with Life Insurance Corporation of India (’LIC’) and the plan assets of the Company are being maintained by LIC.

With respect to compensated absences (leave entitlements), liability recognized in the balance sheet as on March 31, 2016 is Rs 21.65 lacs (Previous Year Rs.21.21 lacs).

14. In terms of Accounting Standard 17, the Company operates materially only in one business segment viz., yarn and has its production facilities and all other assets located in India. Sales to external customers comprise export sales of Rs. 10552.04 lacs (Previous Year Rs. 22122.67 lacs) and local sales of Rs. 17243.64 lacs. (Previous Year Rs. 17031.52 lacs).

15. The Company had revalued its Land and Building as on March 31, 2015 based on the valuation made by an independent firm of valuers. Accordingly, the original costs of the above assets as on March 31, 2015 have been revalued on market value / replacement cost basis using standard indices after considering the obsolescence and age of individual assets.

16. The revalued amounts, net of withdrawals, of Rs. 7640.55 lakhs for Land and Buildings and Rs. 1061.72 lakhs for Plant & Machinery and Electrical Installations (Previous Year Rs. 7640.55 lakhs and Rs. 1335.33 lakhs, respectively) remain substituted for the historical cost in the gross block of fixed assets.

17. During the previous year, pursuant to the Shareholders’ approval and in accordance with the Business Transfer Agreement dated 16th July, 2013, entered into between the Company and GTN Engineering (India) Limited, an associate, (‘transferee’), the Company had completed the process of hive-off of its Yarn Processing Unit located at Shadnagar, Telanagana and Knitting Unit located at Medak, Telangana (jointly referred to as ‘units’) as a going concern on “slump sale” basis on 4th September, 2014 for a consideration of Rs. 3050 lacs resulting into a profit of Rs. 99.04 lacs. The sale consideration was received in the following manner:

18. Pursuant to the hive-off, the bank accounts / facilities, agreements, licenses and certain immovable properties of the Units are in the process of being transferred in the name of the Transferee. Further, the Company is in the process of getting the charges modified / released in respect of secured loans transferred.

19. The figures of the previous year include the income and expenditure of the Units up to 3rd September, 2014 and thus, the figures of the current year are not comparable with those of the previous year.

20. Previous year’s figures have been regrouped and rearranged wherever necessary so as to conform to the current year’s presentation.

Source : Dion Global Solutions Limited
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