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Notes to Accounts of Black Rose Industries Ltd.
Mar 31, 2025
g) Provision & Contingent Liabilities
The Company creates a provision when there is present obligation as a result of past events and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation
or a present obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of
resources is remote, no provision or disclosure is made.
h) Revenue Recognition
The Company derives revenues primarily from sale of goods, products and related services.
Revenue from contract with customers is recognised upon transfer of control of promised products or services to customers
in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discounts offered by the Company as part of the contract.
(i) Revenue from sales of goods and services:
Revenue from sales of goods & services are recognised on accrual basis in the year in which the goods & services are
rendered at an amount that reflects the consideration which the Company expects to be entitled in exchange for
those goods or services. The timing of when the Company transfers the goods or provide services may differ from the
timing of the customer''s payment.
Amounts disclosed as revenue are net of goods and service tax (GST).
Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer.
Generally, the credit period varies between 0-90 days from satisfaction of performance obligations.
(ii) Dividends
Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.
(iii) Other income
The Company recognises income on accrual basis. However, where the ultimate collection of the same lacks reasonable
certainty, revenue recognition is postponed to the extent revenue is reasonably certain and can be reliably measured.
i) Leases
The Company as a lessee
The Company''s lease asset classes primarily consist of leases for land and buildings.
The Company assesses whether a contract contains a lease, at inception of a contract.
At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Company recognises the lease
payments as an operating expense on a straight-line basis over the term of the lease.
Lease term includes extension or termination options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognised at cost and subsequently measured at cost less accumulated depreciation
and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted
using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Lease
liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its
assessment of whether it will exercise an extension or a termination option.
The Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset
are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms.
j) Retirement and other employee benefits
Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period when the employees render the services.
Post-Employment Benefits
Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time
of resignation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of Gratuity Act
1972.
The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method
and spread over the period during which the benefit is expected to be derived from employees'' services.
Actuarial gain/losses of defined benefit plans in respect of post-employment are charged to the Other Comprehensive
Income.
Defined Contribution Plans
Payments to defined contribution retirement benefit plans, viz., Provident Fund for certain eligible employees and Pension
Fund are recognised as an expense when employees have rendered the service entitling them to the contribution.
k) Share Based Payment
The stock options granted to employees in terms of the Company''s Stock Options Schemes, are measured at the fair value of
the options at the grant date. The fair value of the options is treated as discount and accounted as employee compensation
cost over the vesting period on a straight-line basis. The amount recognised as expense in each year is arrived at based on
the number of grants expected to vest. If a grant lapses after the vesting period, the cumulative discount recognised as
expense in respect of such grant is transferred to the general reserve within equity.
l) Income Taxes
Income Tax expenses comprise current tax and deferred tax charge or credit.
Current Tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the
applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws.
Deferred tax is provided, on all temporary differences at the reporting date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured at the tax rates
that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted
or substantively enacted at the reporting date. Tax relating to items recognised directly in equity or OCI is recognised in
equity or OCI and not in the Statement of Profit and Loss.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets
on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the
extent that it is no longer probable.
m) Earnings Per Share
The basic Earnings Per Share ("EPS") is computed by dividing the net profit / (loss) after tax for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity
shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.
n) Foreign Currency Transactions
In preparing the financial statements of the Company, transactions in currencies other than the Company''s functional
currency (i.e. foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the
end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate as at the date of initial transactions.
Exchange differences on monetary items are recognised in the Statement of Profit and Loss in the period in which they
arise except for:
⢠exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings;
⢠exchange differences relating to qualifying effective cash flow hedges and qualifying net investment hedges in
foreign operations.
o) Financial Instruments
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of
the instruments.
Initial Recognition:
The Company recognises a financial asset in its financial statements when it becomes party to contractual provisions of
the instrument. All financial assets are recognised initially at fair value, plus in the case of financial assets not recorded at
fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial assets.
However, trade receivables that do not contain a significant financing component are measure at transaction price.
All financial liabilities at initial recognition are classified as financial liabilities at amortised cost or financial liabilities at fair
value through profit or loss, as appropriate. All financial liabilities classified at amortised cost are recognised initially at fair
value net of directly attributable transaction costs. Any difference between the proceeds (net of transaction costs) and the
fair value at initial recognition is recognised in the Statement of Profit and Loss or in the Capital Work-In-Progress, if another
standard permits inclusion of such cost in the carrying amount of an asset over the period of the borrowings using the
Effective Interest Rate (''EIR'') method.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive
income ("FVOCI") or fair value through profit or loss ("FVTPL") on the basis of following:
⢠the entity''s business model for managing the financial assets; and
⢠the contractual cash flow characteristics of the financial asset.
Amortised Cost:
A financial asset shall be classified and measured at amortised cost if both of the following conditions are met:
⢠the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
⢠the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Fair Value through OCI:
A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are met:
⢠the financial asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and
⢠the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost
or at fair value through OCI.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.
Impairment of Financial Assets
The Company assesses on a forward-looking basis, the expected credit losses associated with its financial assets carried at
amortised cost for e.g, trade receivables and bank balances. The impairment methodology applied depends on whether
there has been a significant increase in credit risk and if so, assess the need to provide for the same in the Statement of
Profit and Loss.
The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables and all lease
receivables.
Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or amortised cost''
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial
recognition as FVTPL.
Gains or Losses on liabilities held for trading are recognised in the Statement of Profit and Loss.
Amortised Cost :
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised
cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the net carrying amount on initial recognition.
p) Cash and Cash Equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand and short-term deposits with banks that
are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of
meeting short-term cash commitments.
q) Financial liabilities and equity instruments
⢠Classification as debt or equity:
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.
⢠Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by a Company are recognised at the proceeds received.
r) Derivative financial instruments
The Company enters into derivative financial instruments viz. foreign exchange forward contracts to manage its exposure
to foreign exchange rate risks. The Company does not hold derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss
immediately excluding derivatives designated as cash flow hedge.
s) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of asset and liability if market participants would take those into consideration. Fair value for measurement
and / or disclosure purposes in these Financial Statements is determined on such basis. Normally at initial recognition, the
transaction price is the best evidence of fair value.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
The Company uses valuation techniques those are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the Financial Statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
Financial assets and financial liabilities that are recognised at fair value on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation at the end of each reporting
period.
t) Current versus Non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
i) An asset is current when it is:
⢠Expected to be realised or intended to be sold or consumed in the normal operating cycle,
⢠Held primarily for the purpose of trading,
⢠Expected to be realised within twelve months after the reporting period, or
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
ii) A liability is current when:
⢠It is expected to be settled in the normal operating cycle,
⢠It is held primarily for the purpose of trading,
⢠It is due to be settled within twelve months after the reporting period, or
⢠There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current.
iii) Deferred tax assets and liabilities are classified as non-current assets and liabilities.
iv) The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Key assumptions:
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.
i) Useful Lives of Property, Plant & Equipment
The Company uses its technical expertise along with historical and industry trends for determining the economic
life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if
appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of
the assets.
ii) Lease term of right-to-use assets
Management reviews its estimate of the lease term of right-to-use assets at each reporting date, based on the
expected utility of the leased property. Uncertainties in this estimate relate to business obsolescence/discontinuance
that may change the lease term for certain right-to-use assets.
iii) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted
Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility.
iv) Defined benefit plans
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its longterm nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
v) Allowances for credit losses on receivables:
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The Company considered current and anticipated future economic
conditions relating to industries the Company deals with and the countries where it operates.
vi) Provisions
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow
of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The
timing of recognition and quantification of the liability requires the application of judgement to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed
regularly and revised to take account of changing facts and circumstances.
vii) Impairment of non-financial assets
For calculating the recoverable amount of non-financial assets, the Company is required to estimate the value-
in-use of the asset or the Cash Generating Unit and the fair value less costs to disposal. For calculating value in
use the Company is required to estimate the cash flows to be generated from using the asset. The fair value of
an asset is estimated using a valuation technique where observable prices are not available. Further, the discount rate
used in value in use calculations includes an estimate of risk assessment specific to the asset.
viii) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash
loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment
calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the
end of each reporting period.
ix) Share based Payment
The Company reviews the share-based payment expenses at each reporting date for the estimates pertaining to
number of options that will be exercised by the employees, number of options that will lapse. Significant management
judgement is required to determine the same.
Recent accounting pronouncements:
The Ministry of Corporate Affairs (MCA) notifies new standard for amendments to the existing standards. There is no such
notifications which would have been applicable from 1st April, 2025.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction
between willing parties.
The investment made in the wholly owned subsidiary company is shown at book value .
37 CAPITAL MANAGEMENT :
For the purpose of the Company''s Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other
Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company''s Capital Management is
to maximise the Shareholder''s wealth.
The Company monitors capital using debt-equity ratio, which is total debt divided by total equity.
In addition, the Company has financial covenants relating to the some of the borrowing facilities that it has to maintain Aggregate
Tangible Net Worth which is maintained by the Company,
Gearing Ratio
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that its meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
financial covenants of any interest-bearing loans and borrowings in the currency period.
38 FINANCIAL RISK MANAGEMENT :
The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables, cash
and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i) Market Risk:
Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial
instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market
risks, primarily include loans and borrowings, investments and foreign currency receivables, payables and borrowings.
a) Interest Rate Risks :
The Company borrows funds in Indian Rupees and Foreign currency, to meet both the long term and short term funding
requirements. The Interest rate risk in terms of Foreign currency is managed through available financial instruments. Interest
on Short term borrowings is subject to floating interest rate and are repriced regularly. The sensitivity analysis detailed
below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to
bankers over a year.
If the interest rates had been 1% higher / lower and all other variables held constant, the Company''s profit for the year
ended 31st March, 2025 would have been decreased/increased by '' 5.12 lakhs (Previous Year - '' 1.53 lakhs).
b) Foreign Currency Risks :
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign
exchange rates. The Company enters into forward exchange contracts to hedge its foreign currency exposures. Foreign
currency risks from financial instruments at the end of the reporting period expressed in ''
The Company is mainly exposed to changes in US Dollar . The sensitivity to 1% increase or decrease in US Dollar
against '' with all other variables held constant will be '' 6.46 lakhs. (Previous Year - '' 19.25 lakhs).
The Sensitivity analysis is prepared on the net unhedged exposure of the Company at the reporting date.
c) Price Risks:
The Company''s revenue are generated from both domestic and export sales . As most of the products including
raw material and traded goods are imported, any volatility in the price and exchange rate are easily passed on to
the customers. The Company has a risk management policy in place to prudently manage the risk arising from the
volatility in exchange and commodity prices.
ii) Credit Risk
Credit Risk is the risk that a counterparty may default on its contractual obligations resulting in a financial loss to the Company.
It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares, Debt Funds and Balances
with Banks.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit
risk.
The Company limits its exposure to credit risk by generally investing only with counterparties that have a good credit rating.
The Company does not expect any losses from non-performance by these counterparties, and does not have any significant
concentration of exposures to specific industry sectors or specific country risks.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The outstanding
trade receivables due for a period exceeding 180 days as at the year ended 31st March, 2025 is 0.57% of the total trade receivables.
The Company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.
iii) Liquidity Risk
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by
continuously monitoring forecasts and actual cash flows.
The Company has obtained fund and non-fund based working capital lines from banks. The Company monitors funding options
available in the debt and capital markets with a view to maintaining financial flexibility. All payments are made along due dates
and requests for early payments are entertained after due approval and availing early payment discounts.
The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are planned.
Exposure to liquidity risk:
*The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated
using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating
the defined benefit obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
(x) Gratuity is payable as per company''s scheme as detailed in the report.
(xi) Actuarial gains/losses are recognised in the period of occurrence under Other Comprehensive Income (OCI). All above
reported figures of OCI are gross of taxation.
(xii) Salary escalation & attrition rate are considered as advised by the Company; they appear to be in line with the industry
practice considering promotion and demand & supply of the employees.
(xiii) Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition & death in respective
year for members as mentioned above.
(xiv) Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
(xv) Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights
are derived from the present value of each cash flow to the total present value.
II Share Based Payments
The Company grants ESOP to Senior Management employees in accordance with the terms of the Plan.
(a) Description of the ESOP plan (graded vesting) that existed during the period:
The Company has granted share based incentives to certain employees on 13th August, 2021 for which approval received
from SEBI on 1st December, 2022 under BRIL Employee Stock Options Scheme 2020 ("BRIL ESOS 2020") approved by
Nomination and Remuneration Committee (NRC). As per the scheme, the number of options that will be granted is based
upon length of service, grades, salary cost of the employee to the Company, performance appraisals and / or any other
factors as determined by NRC. The options granted under this scheme is exercisable by employees within one year from
date of its vesting. The Company has granted options at an exercise price of ''134.22/-. Option granted will vest in the ratio
of 30:30:40 each year starting from 2nd year from date of grant up to 4th year from date of grant.
57 MISCELLANEOUS
1 Quarterly statements of stocks and other current assets filed by the Company with banks are in agreement with the books of
accounts.
2 The Company has not traded or invested in crypto currency or virtual currency during the year.
3 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding that the intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or,
(b) Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
4 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or,
(b) Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
5 The Company does not have any charges or satisfaction of charges which are yet to be registered with ROC beyond the statutory
period.
6 The Company does not have any scheme of arrangements which has been approved by the Competent Authority in terms of
Section 230 to 237 of the Companies Act, 2013.
7 Provision regarding the number of layers prescribed under Section 2 (87) of the Act read with the Companies (Restriction on
number of layers) Rules, 2017 is not applicable.
8 The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of Income Tax Act, 1961).
9 The Company is not declared as wilful defaulter by any bank or financial institution or other lenders.
10 There is no transaction with the Struck off Companies under Section 248 or 560 of the Companies Act, 2013.
11 No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988.
12 There were no material subsequent events to be recognised or reported that are not already disclosed.
13 In the Opinion of the Board of Directors, the Current Assets, Loans & Advances are realisable in the ordinary course of business
at least equal to the amount at which they are stated in the Balance Sheet. The Provision for all known liabilities is adequate and
not in excess of the amount reasonably necessary.
14 a) Figures have been disclosed in rupees in lakhs.
b) Previous year''s figures have been regrouped and / or reclassified wherever found necessary to confirm current year''s
presentation.
As per our report of even date attached For and on behalf of the Board of Directors
For and on behalf of M M NISSIM & CO LLP
Chartered Accountants
Firm Regn. No. 107122W/W100672
N. Kashinath Shruti Jatia Ambarish Daga
Partner Executive Director Executive Director, Joint CFO & IR Officer
Membership No. 036490 DIN : 00227127 DIN : 07125212
Place: Mumbai Ratan Kumar Agrawal Ankit Kumar Jain
Date: 20th May, 2025 Chief Financial Officer Company Secretary
Mar 31, 2024
d) Terms/Rights Attached To Equity Shares:
The company has only one class of equity share having a par value of ''1/- per share. Each holder of equity shares is entitled to one vote per share and dividend per share on pari passu basis. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors except interim dividend is subject to the approval of the shareholders in the ensuing Annual General Meeting.
I n 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 proportion to the number of equity shares held by the shareholders.
Note No :20(a)Nature of Security
a) Working capital facilities from Axis Bank, HDFC Bank & Kotak Bank is secured by first pari-pasu charge on all existing & future current assets & tangible property plant and equipment of the Company (Other than Vehicles). The Company has also provided collateral security of factory land and building at Jhagadia, Gujarat and Hatkanangale, Maharashtra. The rate of interest is ranging between 9.00% to 9.65% [ Previous Year - 7.50 % to 8.75%]
Valuation techniques and significant unobservable inputs
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties.
The investment made in the wholly owned subsidiary company is shown at book value.
36 Capital Management (Ind AS 1):
For the purpose of the Company''s Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company''s Capital Management is to maximise the Shareholder''s wealth.
The Company monitors capital using debt-equity ratio, which is total debt divided by total equity.
In addition, the Company has financial covenants relating to the some of the borrowing facilities that it has to maintain Aggregate Tangible Net Worth which is maintained by the Company.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in financial covenants of any interest-bearing loans and borrowings in the currency period.
No changes have been made in the objectives, policies and processes for managing capital during the years ended 31st March 2024 & 31st March 2023.
37 Financial Risk Management (Ind AS 1):
The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables, cash and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans and borrowings, investments and foreign currency receivables, payables and borrowings.
a) Interest Rate Risks:
The Company borrows funds in Indian Rupees and Foreign currency, to meet both the long term and short term funding requirements. The Interest rate risk in terms of Foreign currency is managed through available financial instruments. Interest on Short term borrowings is subject to floating interest rate and are repriced regularly. The sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to bankers over a year.
If the interest rates had been 1% higher / lower and all other variables held constant, the company''s profit for the year ended 31st March, 2024 would have been decreased/increased by '' 1.53 Lakhs (Previous Year - '' 6.15 Lakhs).
b) Foreign Currency Risks :
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge its foreign currency exposures. Foreign currency risks from financial instruments at the end of the reporting period expressed in INR.
The Company is mainly exposed to changes in US Dollar . The sensitivity to 1% increase or decrease in US Dollar against INR with all other variables held constant will be '' 19.25 Lakhs. (Previous Year - '' 2.20 Lakhs).
The Sensitivity analysis is prepared on the net unhedged exposure of the company at the reporting date.
c) Price Risks:
The Company''s revenue are generated from both domestic and export sales . As most of the products including raw material and traded goods are imported, any volatility in the price and exchange rate are easliy passed on to the customers. The Company has a risk management policy in place to prudently manage the risk arising from the volatility in exchange and commodity prices.
ii) Credit Risk
Credit Risk is the risk that a counterparty may default on its contractual obligations resulting in a financial loss to the Company. It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares, Debt Funds and Balances with Banks.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.
The Company limits its exposure to credit risk by generally investing only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The outstanding trade receivables due for a period exceeding 180 days as at the year ended 31 March 2024 is 0.51% of the total trade receivables. The company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.
iii) Liquidity Risk
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows.
The Company has obtained fund and non-fund based working capital lines from banks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility. All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts.
The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are planned.
The Company has taken premises on leases. The lease typically runs for a period of 1 to 5 years with an option to renew the lease after that period. The lease payments for the entire lease period are fixed at the time of entering into the lease agreement and are renegotiated towards the end of the lease period in case of renewals.
40 I Employee Benefits (Ind AS 19)Defined Benefit Plans:
(A) Gratuity:
The gratuity payable to employees is based on the employee''s service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company for payment of gratuity.
Inherent Risk:
The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.
* The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
(x) Gratuity is payable as per company''s scheme as detailed in the report.
(xi) Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.
(xii) Salary escalation & attrition rate are considered as advised by the company; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.
(xiii) Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as mentioned above.
(xiv) Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
(xv) Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total present value.
II Share Based PaymentsThe Company grants ESOP to Senior Management employees in accordance with the terms of the Plan.
(a) Description of the ESOP plan (graded vesting) that existed during the period:
The Company has granted share based incentives to certain employees on 13 August, 2021 for which approval received from SEBI on 01st December, 2022 under BRIL Employee Stock Options Scheme 2020 ("BRIL ESOS 2020") approved by Nomination and Remuneration Committee (NRC). As per the scheme, the number of options that will be granted is based upon length of service, grades, salary cost of the employee to the Company, performance appraisals and / or any other factors as determined by NRC. The options granted under this scheme is exercisable by employees within one year from date of its vesting. The Company has granted options at an exercise price of ''134.22/-. Option granted will vest in the ratio of 30:30:40 each year starting from 2nd year from date of grant up to 4th year from date of grant.
Market value of shares on the reporting period is considered and estimated fair value is arrived based on Black-Scholes model using one year, two year and three year G-Sec rates respectively for 1,2 & 3 year exercise period.
43 Contingent Liabilities & Capital Commitments
(i) There are no contingent liabilities nor capital commitments.
44 Segment Reporting (Ind AS 108):
In accordance with Ind AS 108 ''Operating Segment'', segment information has been given in the consolidated financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.
(i) Unspent CSR amount for financial year 2022-23: ''. 21.19 lakhs, utilised: '' 21.19 lakhs
(j) Above includes? 3.92 lakhs of corporate social responsibility (CSR) expenses related to ongoing projects as at 31st March 2024 ( 31st March 2023 : '' 21.19 lakhs). The same was transferred to a special account designated as "Unspent Corporate Social Responsibility Account" for the financial year 23-24"("UCSRA- FY 23-24") of the Company within 30 days from the end of the financial year.
46 Some of the suppliers have sent their intimations of them being the Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006. However, there were no amounts payable at the year end together with interest paid / payable beyond the stipulated period as required under the said Act.
In respect of other suppliers, the Company has not received any intimation 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 to that extent.
53 The Company has announced a proposed dividend of 0.55 paise /- per share and a special dividend of ''. 0.10 paise /- per share for the financial year 2023-2024 and shall be recognized once the dividend is paid.
54 In accordance with rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses accounting software that records an audit trail of every transaction, including an edit log of each change made in the books of account along with the date of the change. This audit trail feature has been operational throughout the year and has not been tampered with. However, for accounting softwares, the audit trail feature was not enabled for databases during the year. The Company has established and maintained an adequate internal control framework and, based on its assessment, believes that this framework was effective as of March 31,2024.
1 Quarterly statements of stocks and other current assets filed by the Company with banks are in agreement with the books of accounts.
2 The Company has not traded or invested in crypto currency or virtual currency during the year.
3 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or,
(b) Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
4 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or,
(b) Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
5 The Company does not have any charges or satisfaction of charges which are yet to be registered with ROC beyond the statutory period.
6 The Company does not have any scheme of arrangements which have been approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.
7 Provision regarding the number of layers prescribed under Section of Section 2 (87) of the Act read with the Companies (Restriction on number of layers) Rules, 2017 is not applicable.
8 The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of Income Tax Act, 1961).
9 The Company is not declared as willful defaulter by any bank or financial institution or other lenders.
10 There is no transaction with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.
11 No proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.
12 There were no material subsequent events to be recognized or reported that are not already disclosed.
13 In the Opinion of the Board of Directors, the Current Assets, Loans & Advances are realisable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
14 a) Figures have been disclosed in rupees in Lakhs.
b) Previous year''s figures have been regrouped and / or reclassified wherever found necessary to confirm current year''s presentation.
Mar 31, 2023
Terms/Rights attached to equity shares:
The company has only one class of equity share having a par value of ''1/- per share. Each holder of equity shares is entitled to one vote per share and dividend per share on pari passu basis. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors except interim dividend is subject to the approval of the shareholders in the ensuing Annual General Meeting.
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 proportion to the number of equity shares held by the shareholders.
Nature of security
a) Working capital facilities from Axis Bank, HDFC Bank & Kotak Bank is secured by first pari-pasu charge on all existing & future current assets & tangible property plant and equipment of the Company (Other than Vehicles). The Company has also provided collateral security of factory land and building at Jhagadia, Gujarat and Hatkanangale, Maharashtra. The rate of interest is ranging between 7.50% to 8.75% [ Previous Year - 7.50 % to 7.65%]
The Company has allotted share based incentives to certain employees on 13st August, 2021 for which approval received from SEBI on 1st December, 2022 under BRIL Employee Stock Options Scheme 2020 ("BRIL ESOS 2020") approved by Nomination and Remuneration Committee (NRC). As per the scheme, the number of options that will be granted is based upon length of service, grades, salary cost of the employee to the Company, performance appraisals and / or any other factors as determined by NRC. The options granted under this scheme is exercisable by employees within one year from date of its vesting. The Company has granted options at an exercise price of ''134.22/-. Option granted will vest in the ratio of 30:30:40 each year starting from 2nd years from date of grant up to 4th years from date of grant.
Valuation techniques and significant unobservable inputs
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties.
The investment made in the wholy owned subsdiary company is shown at book value .
34 Capital Management (Ind AS 1):
For the purpose of Company''s Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company''s Capital Management is to maximise the Shareholder''s wealth.
In addition, the Company has financial covenants relating to the some of the borrowing facilities that it has to maintain Aggregate Tangible Net Worth which is maintained by the Company.
35 Financial Risk Management (Ind AS 1):
The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables, cash and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans and borrowings, investments and foreign currency receivables, payables and borrowings.
a) Interest Rate Risks :
The Company borrows funds in Indian Rupees and Foreign Currency, to meet both the long term and short term funding requirements. The Interest rate risk in terms of foreign currency is managed through available financial instruments. Interest on Short term borrowings is subject to floating interest rate and are repriced regularly. The sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to bankers over a year.
If the interest rates had been 1% higher / lower and all other variables held constant, the company''s profit for the year ended 31st March, 2023 would have been decreased/increased by '' 6.15 Lakh (Previous Year - '' 12.95 Lakh).
b) Foreign Currency Risks :
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge its foreign currency exposures. Foreign currency risks from financial instruments at the end of the reporting period expressed in INR :
The Company is mainly exposed to changes in US Dollar . The sensitivity to 1% increase or decrease in US Dollar against INR with all other variables held constant will be '' 2.20 Lakh. (Previous Year - '' 13.70 Lakh).
The Sensitivity analysis is prepared on the net unhedged exposure of the company at the reporting date.
c) Price Risks:
The Company''s revenue are generated from both domestic and export sales. As most of the products including raw material and traded goods are imported, any volatility in the price and exchange rate are easily pass on to the customers. The Company has a risk management policy in place to prudently manage the risk arising from the volatility in exchange and commodity prices.
Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares, Debt Funds and Balances with Banks.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.
The Company limits its exposure to credit risk by generally investing only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The outstanding trade receivables due for a period exceeding 180 days as at the year ended 31st March, 2023 is 0.79% of ''the total trade receivables. The company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows.
The Company has obtained fund and non-fund based working capital lines from banks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility. All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts. The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are planned.
38 Employee Benefits (Ind AS 19)Defined Benefit Plans:
Gratuity:
The gratuity payable to employees is based on the employee''s service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company for payment of gratuity.
Inherent Risk:
The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
(x) Gratuity is payable as per company''s scheme as detailed in the report.
(xi) Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.
(xii) Salary escalation & attrition rate are considered as advised by the company; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.
(xiii) Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as mentioned above.
(xiv) Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
(xv) Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total present value.
41 Contingent Liabilities (Ind AS 37)(a) Contingent liabilities not provided for in respect of :
(i) Disputed Income Tax net demands of '' 221.46 Lakh (P.Y. '' 221.46 Lakh) for which company has filed an appeal with Commission of Income Tax(Appeal).The management is of the opinion that the said demand need to be deleted completely and accordingly no provision has been made.
There are no guarantees issued as at the end of the balance sheet date.
42 Segment Reporting (Ind AS 108):
In accordance with Ind AS 108 ''Operating Segment, segment information has been given in the consolidated financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.
(i) Unspent CSR amount for financial year 2021-22: '' 24.92 lakhs, utilised: 24.92 lakhs
(j) Above includes? 21.19 lakhs of corporate social responsibility (CSR) expenses related to ongoing projects as at 31st March 2023 ( 31st March 2022 : '' 24.92 lakhs). The same was transferred to a special account designated as "Unspent Corporate Social Responsibility Account" for the financial year 22-23"("UCSRA- FY 22-23") of the Company within 30 days from the end of the financial year.
44 Some of the suppliers have sent their intimations of them being the Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006. However, there were no amounts payable at the year end together with interest paid / payable beyond as stipulated period as required under the said Act.
In respect of other suppliers, the Company has not received any intimation 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 to that extent.
50 The Company has not traded or invested in crypto currency or virtual currency during the year.
51 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or,
(b) Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or,
(b) Provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
52 The Company does not have any charges or satisfaction of charges which are yet to be registered with ROC beyond the statutory period.
53 The Company does not have any scheme of arrangements which have been approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.
54 Provision regarding the number of layers prescribed under Section of Section 2 (87) of the Act read with the Companies (Restriction on number of layers) Rules, 2017 is not applicable.
55 The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of Income Tax Act, 1961).
56 The Company is not as wilful defaulter by any bank or financial institution or other lenders.
57 The are no transactions with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.
58 No proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.
59 The Company has announced a proposed dividend of Re. 0.55 paise /- per share for the financial year 2022-2023 and shall be recognized once the dividend is paid.
61 Disclosure required by the Securities and Exchange Board on India ( Listing Obligations and Disclosure Requirements) Regulations, 2015; and Section 186(4) of the Companies Act, 2013:
1 Details of investments made are given in Note 3
2 Amount of Loans and advances in the nature of loans outstanding from/to subsidiaries '' NIL ( Previous year - '' NIL)
3 Loans to employees have been considered to be outside the purview of disclosure requirement.
4 Investment by Loanee in the shares of the Parent company - NIL ( Previous year - NIL)
62 In the Opinion of the Board of Directors, the Current Assets, Loans & Advances are realisable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
63 a) Figures have been disclosed in rupees in lacs.
b) Previous year''s figures have been regrouped and / or reclassified wherever found necessary to confirm current year''s presentation.
Mar 31, 2018
1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
Corporate Information
Black Rose Industries Limited (the Company) is a Public Limited Company incorporated in India having its registered office at Mumbai, Maharastra, India. The Company is engaged in manufacturing and trading of chemicals and manufacturing of gloves and fabrics.The company is also in the business of power generation by setting up Windmills in the State of Rajasthan and Gujarat.
Note No. 2 (a):
Secured Loan:
(i) Vehicle Loan
From YES Bank Limited
Nature of security
Secured by hypothecation of vehicles
Rate of Interest
The rate of interest is 8.98 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 0.59 Lacs commencing from 5th October, 2017 and ending on 2nd September, 2020.
(ii) Term Loan
From Kotak Mahindra Bank Limited Nature of security
a) Secured by first pari-pasu charge with Axis Bank on all present and future current assets and movable fixed asset of the manufacturing unit at Jhagadia , Gujarat.
b) Collateral Security of Plot No.675 at GIDC, Jhagadia & Plot No. 11 to 18 at Shri Laxmi Sahakari Aodhyogik Vasahat, Hatkanangale, Dist. Kolhapur.
c) Personal Guarantee of a Director.
Rate of Interest
The rate of interest is MCLR 0.30 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 27.31 Lacs commencing from 1st July, 2015 and ending on 1st December, 2020.
Equated monthly installment of Rs. 9.17 Lacs commencing from 20th April, 2016 and ending on 20th March, 2020.
(iii) Loan from other party
From Tata Capital Financial Services Limited Nature of security
a) First & exclusive Charge by way of hypothecation of the Windmills along with its accessories etc. installed at Tiwri, Location No.38, Village - Indroka, Dist : Jodhpur, Rajashthan and Location No. 311, Samana Site, Village Paddaval, Taluka - Upleta, Dist : Rajkot, Gujarat- 360 007 by mortgage of the Land.
b) First & exclusive charge by way of hypothecation on all trade receivables.
c) Unconditional and irrevocable personal guarantee of a Director.
Rate of Interest
The rate of interest is Long Term Lending Rate - 3.25 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 27.31 Lacs commencing from 1st July, 2015 and ending on 1st December, 2020.
Equated monthly installment of Rs. 9.17 Lacs commencing from 20th April, 2016 and ending on 20th March, 2020.
Note No. 3(a):
Nature of security
a) Secured by first pari-pasu charge with Axis Bank on all present and future current assets and movable/intangible fixed asset of the Company (Other than Vehicles).
b) Collateral Security of Plot No. 675 at GIDC, Jhagadia & Plot No. 11 to 18 at Shri Laxmi Sahakari Aodhyogik Vasahat, Hatkanangale, Dist. Kolhapur.
c) Corporate guarantee of Black Rose Trading Pvt. Ltd. and Tozai Enterprises Pvt. Ltd.
d) Personal Guarantee of a Director.
The above charges rank pari passu for all intents and purposes.
4 First-time adoption of Ind AS (Ind AS 101)
As stated in Note 1, these financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (IGAAP).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April 1, 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its IGAAP financial statements, including the balance sheet as at April 1, 2015 and the financial statements as at and for the year ended March 31, 2016 and how the transition from IGAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows.
Exemptions Availed:
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:
(a) Deemed cost for property, plant and equipment and intangible assets:
The Company has elected to continue with the carrying value of all of its plant and equipment and intangible assets as recognised as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
(b) Investment in Subsidiary, Joint ventures and Associates:
The Company has elected to carry its investment in subsidiary, joint venture and associates at deemed cost which is its previous GAAP carrying amount at the date of transition to Ind AS.
(c) Fair Value of Financials Assets and Liabilities:
As per Ind AS exemption the Company has not fair valued the financial assets and liabilities retrospectively and has measured the same prospectively.
Notes to the Reconciliation of equity as at April 1, 2017 and March 31, 2018 and Total Comprehensive Income for the year ended March 31, 2018:
(a) Property, Plant and Equipment
(i) As per Ind AS 16, spare parts, stand- by equipment and servicing equipment are recognised as Property, Plant and Equipment (âPPEâ) when they meet the following criteria:
*Are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and *Are expected to be used during more than one period.
However, in the opinion of the Management, items of stores and spares are of not material amount and are assessed for being consumed within one year.
(ii) As per Appendix A to Ind AS 16, the cost of an item of property, plant and equipment includes the initial estimate of the cost of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.
(b) Investments
The Company has no designated investments other than Investment in Subsidiary.
(c) Fixed deposit with maturity greater than twelve months shown in IGAAP under other non-current assets have been reclassified as other non current financial assets as per Schedule III to Companies Act, 2013.
(d) Fixed deposit with maturity less than twelve months have been reclassified from Cash and Cash equivalents to Other Bank Balances as per Schedule III to Companies Act, 2013.
(e) Financial Instruments
The Company uses forward currency contracts to hedge its foreign currency risks.
As per Ind AS 109, such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(f) Loans/Other Financial Assets/ Other Current Assets
(i) As per Schedule III, Security Deposits are to be classified under Loans or Other Non-current/Current Assets respectively. Accordingly, Security Deposits which are financial in nature are classified under Loans and other deposits are classified under Non-current/ Current Assets respectively.
(ii) Under IGAAP, Loans and Advances were shown together under Loans and Advances. However, as per Schedule III, Loans are classified under other Non-current/Current Assets.
(g) Borrowings
As per Ind AS 109, the Company has classified Foreign Currency Loans as financial liabilities to be measured at amortised cost. The Company has executed derivative contracts to hedge foreign currency risk of borrowings. The borrowings have been restated as at the date of transition.
(h) Provisions
Under IGAAP, Provision for Asset Retirement Obligation is initially measured at the undiscounted amount to settle the obligation, however, Ind AS 37, requires that where the effect of time value of money is material, the amount of provision should be the present value of the expenditures expected to be required to settle the obligation.
(i) For Forward Covers, MTM reclassified to Derivative Liability as on the date of transition. The resulting gains or losses as on the date of transition are included in Retained earnings.
(j) Deferred Tax
IGAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.
(k) Defined Benefit Liabilities
Both under IGAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under IGAAP, the entire cost, including actuarial gains and losses, are charged to Statement of Profit and Loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.
(l) Other Comprehensive Income
In accordance with Ind AS, Movement in Other Comprehensive Income includes effective portion of gains and loss on hedging instruments in a cash flow hedge and remeasurements on defined benefit liability which was charged to Statement of Profit and Loss as per the IGAAP.
5 Fair Values and Hierarchy
A. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels are presented below . It does not include the fair value information for financial assets and financial liabilities not measured at fair value if their carrying amount is a reasonable approximation of fair value.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction between willing parties.
6 Capital Management (Ind AS 1)
For the purpose of Companyâs Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Companyâs Capital Management is to maximise the Share Holder Value.
The Company monitors capital using debt-equity ratio, which is total debt less investments divided by total equity.
In addition, the Company has financial covenants relating to the some of the borrowing facilities that it has to maintain Aggregate Tangible Net Worth which is maintained by the Company.
7 Financial Risk Management (Ind AS 1)
The Companyâs principal financial liabilities comprise loans and borrowings, trade and other payables.
The main purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables, investments in mutual funds and cash and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i) Market Risk
Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans And borrowings, investments and foreign currency receivables, payables and borrowings.
a) Interest Rate Risks
The Company borrows funds in Indian Rupees and Foreign currency, to meet both the long term and short term funding requirements. The Interest rate risk in terms of Foreign currency is managed through financial instruments available to convert floating rate liability into fixed rate liability. Interest on Short term borrowings is subject to floating interest rate and are repriced regularly. The sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to bankers over a year.
If the interest rates had been 1% higher / lower and all other variables held constant, the companyâs profit for the year ended 31st March, 2018 would have been decreased/increased by Rs. 36.01 Lakhs.
b) Foreign Currency Risks
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge its foreign currency exposures. Foreign currency risks from financial instruments at the end of the reporting period expressed in INR :
The Company is mainly exposed to changes in US Dollar. The sensitivity to 1% increase or decrease in US Dollar against INR with all other variables held constant will be Rs. 23.41 Lacs (Previous Year - Rs. 16.47 Lacs).
The Sensitivity analysis is prepared on the net unhedged exposure of the company at the reporting date.
c) Price Risks
The Companyâs revenues are mainly generated from sales within India and the raw materials are procured through import and local purchases where local purchases track import parity price. The Company is affected by the price stability of certain commodities. Due to the significantly increased volatility of certain commodities, the Company enters into contract with the customers that has provision to pass on the change in the raw material prices and also the volatility in the exchange rate. The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.
ii) Credit Risk
Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares, Debt Funds and Balances with Banks
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.
The Company limits its exposure to credit risk by generally investing only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The outstanding trade receivables due for a period exceeding 180 days as at the year ended 31 March 2018 is 0.67% of the total trade receivables. The company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.
iii) Liquidity Risk
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows.
The Company has obtained fund and non-fund based working capital lines from banks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility. All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts.
The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are planned.
Exposure to liquidity risk:
The following are the remaining contractual maturities of financial liabilities at the reporting date:
(ii) The Company has announced a proposed dividend of Rs. 0.15/- per share and accordingly, the dividend distribution tax on account of the same amounting to Rs. 15.57 Lacs shall be recognized once the dividend is paid.
8 Operating Lease (Ind AS 17)
(a) Operating lease income recognised in the Statement of Profit and Loss amounting to Rs. 16.70 Lacs (March 31, 2017 Rs. 8.82 Lacs)
(b) General Description of leasing agreements:
Leased Assets: Factory Building
Future Lease rentals are determined on the basis of agreed terms.
At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing. Lease agreements are generally cancellable and are renewable by mutual consent on mutually agreed terms.
9 Employee Benefits (Ind AS 19)
Defined Benefit Plans Gratuity:
The gratuity payable to employees is based on the employeeâs service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company for payment of gratuity.
Inherent Risk:
The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
(x) Gratuity is payable as per companyâs scheme as detailed in the report.
(xi) Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.
(xii) Salary escalation & attrition rate are considered as advised by the company; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.
(xiii) Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in respective year for members as mentioned above.
(xiv) Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
10 Government Grant (Ind AS 20)
Interest, Wages Expenses and Repairs to plant and machinery are net of subsidy received under State Investment Promotion Scheme of Rs. 27.91 Lakhs (March 31, 2017 Rs. 13.04 Lacs),
11 Related party disclosures (Ind AS 24)
(A) Information about related parties:
(i) Holding company Wedgewood Holdings Limited, Mauritius
(ii) Wholly-owned foreign subsidiary company B.R.Chemicals Co., Limited, Osaka, Japan
(B) Other Related Parties with whom there were transactions during the year:
Parties Relationship
Anup Jatia, Executive Director Key Management Personnel (KMP)
C. P. Vyas, Company Secretary Key Management Personnel (KMP)
Ratan Agrawal, Chief Financial Officer Key Management Personnel (KMP)
Manju Agrawal Relative of KMP Black Rose Trading Private Limited Tozai Safety Private Limited
Wedgewood Holdings LLP Enterprises owned or significantly influenced by any
Tozai Enterprises Private Limited management personnel or their relatives Fukui Accent Trading (India) Private Limited
Accent Industries Limited ,
(a) The following transactions were carried out with the related parties in the ordinary course of business:
12 Contingent Liabilities (Ind AS 37)
(a) Contingent liabilities not provided for in respect of:
(i) Central Sales Tax liability of Rs. 35.28 Lacs (P.Y. Rs. 71.61 Lacs) as per MVAT Audit, as the said liability is on account of non receipt of âCâ forms from various payable customers and the company is awaiting the receipt of said forms. The liabilities if any will be accounted in the books of account in the year in which the final liability is determined.
(ii) Disputed Central Sales Tax demands of Rs. 163.83 Lacs (P.Y Rs. 163.65 Lacs) in respect of Bond Transfer Sales. The issue was decided by Honourable Maharashtra Sales Tax Tribunal in favour of assessess, However, the department has filed an appeal against the order in Bombay High Court.
(b) Guarantees:
The Company has issued corporate guarantees as under :
(i) Guarantee given to Government authorities Rs. 2.32 Lacs (P.Y. Rs. 12.47 Lacs).
13 Segment Reporting (Ind AS 108)
In accordance with Ind AS 108 âOperating Segmentâ, segment information has been given in the consolidated financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.
14 Corporate Social Responsibility
The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended March 31, 2018 is Rs. 14.97 Lacs (March 31, 2017 Rs. 6.40) i.e. 2% of average net profits for last three financials years, calculated as per section 198 of the Companies Act, 2013. However, the Company was unable to spend the CSR amounts as the amounts were not scalable with the suitable CSR Activity and hence the same will be added to the CSR Budget for the Fianancial Year 2018-2019.
15 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclousers, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act has not been given.
16 In the Opinion of the Board of Directors, the Current Assets, Loans & Advances are realisable in the ordinary course of businesss at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
17 Figures less than Rs. 50,000 have been shown at actual, wherever statutorily required to be disclosed, as the figures have been rounded off to the nearest rupees in lacs.
Mar 31, 2016
Note No. 1(a)
Secured Loan
Vehicle Loan
(i) From Kotak Mahindra Bank Limited
Nature of security
Secured by hypothecation of vehicles Rate of Interest
The rate of interest is 10.27 % p.a.
The rate of interest is 10.23 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 19,360/- commencing from 10th August, 2013 and ending on 10th June, 2016. Equated monthly installment of Rs. 134,862/- commencing from 1st December, 2014 and ending on 1st October, 2017.
From HDFC Bank Limited
Nature of security
Secured by hypothecation of vehicles
Rate of Interest
The rate of interest is 10.51 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 14,823/- commencing from 5th June, 2014 and ending on 5th June, 2017.
Term Loan
From Bank of Baroda
Nature of security
a) Hypothecation of stock & book debts of the company.
b) Hypothecation of goods purchased/imported under L.C.
c) Composite hypothecation agreement of Stocks and Book Debts, Plant and Machinery of the company, both present & future as well as other fixed assets of the company.
Rate of Interest
The rate of interest is 12.70 % p.a.
Terms of Repayment Repayable in 84 months as under:
FY 2015 - 12 monthly installments of Rs. 10.00 Lacs FY 2016 - 12 monthly installments of Rs. 13.33 Lacs FY 2017 - 12 monthly installments of Rs. 16.67 Lacs FY 2018 - 12 monthly installments of Rs. 29.33 Lacs FY 2019 - 12 monthly installments of Rs. 29.33 Lacs FY 2020 - 12 monthly installments of Rs. 29.33 Lacs FY 2021 - 12 monthly installments of Rs. 28.51 Lacs
However, during the year, the Company has made full repayment of the above loan.
From Kotak Mahindra Bank Limited
Nature of Security
a) Secured by exclusive charge on all present & future current assets & movable fixed asset of the manufacturing unit at Jhagadia, Gujarat.
b) Collateral Security of Plot No. 675 at GIDC, Jhagadia & Plot No. 11 to 18 at Shri Laxmi Sahakari Aodhyogik Vasahat, Hatkanangale, Dist. Kolhapur
c) Personal Guarantee of a Director and his relatives.
Rate of Interest
The rate of interest is Base Rate 2.25 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 27,31,810/- commencing from 1st July, 2015 and ending on 1st March, 2021. Equated monthly installment of Rs. 9,17,394/- commencing from 20th April, 2016 and ending on 20th March, 2020.
(ii) Loan from other party
From Tata Capital Financial Services Limited
Nature of security
a) First & exclusive Charge by way of hypothecation of the Windmills along with its accessories etc. installed at Tiwri, Location No.38, Village - Indroka, Dist - Jodhpur, Rajashthan and Location No. 311, Samana Site, Village Paddaval, Taluka - Upleta, Dist - Rajkot, Gujarat - 360 007 by mortgage of the Land.
b) First & exclusive charge by way of hypothecation on all trade receivables.
c) Unconditional and irrevocable personal guarantee of a Director.
Rate of Interest
The rate of interest is Long Term Lending Rate - 3.25 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 560,738/- commencing from 10th October, 2010 and ending on 10th September, 2016.
Mar 31, 2015
1 Leases (AS-19)
(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/restrictive covenants in the lease agreements. There is
no contingent rent.
2 Impairment of Assets (AS-28)
Based on exercise of impairment of assets undertaken by the management
in due cognizance of paragraphs 5 to 13 of AS 28.The Company has
concluded that no impaired loss is required to be booked.
3 Contingent Liabilities
Contingent liabilities not provided for in respect of :- (i) Bank
Guarantee given to Government authorities Rs. 15,000/- (P.Y. Rs. 15,000/-)
(ii) Central Sales Tax liability of Rs. 6,030,980/- (P.Y. Rs. 2,140,665/-)
as per MVAT Audit completed in the current financial year, as the said
liability is on account of non receipt of 'C' forms from various
payable customers and the company is awaiting the receipt of said
forms. The liabilities if any will be accounted in the books of account
in the year in which the final liability is determined.
(iii) Disputed Income Tax demands of Rs. 231,686/- (P.Y. Rs. 231,686/-) for
which company has gone in appeal. The management is of the opinion that
the said demand is likely to be either deleted or substantially reduced
and accordingly no provision has been made.
4 Capitalisation of Expenditure
The company has capitalised the following revenue expenses by debiting
to statement of Profit and loss and transferring the same to capital
work-in-progress (CWIP) account for its project at Jhagadia, Gujarat.
Consequently, expenses disclosed under the respective notes are net of
amounts capitalised by the company.
During the previous year, project at Jhagadia was completed and
consequently all pre-operative expenses lying under capital
work-in-progress were apportioned to the assets created upon completion
of project.
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 has not been given.
6 In the Opinion of the Board of Directors, the Current Assets, Loans
and Advances are realisable in the ordinary course of business at
least equal to the amount at which they are stated in the Balance
Sheet. The Provision for all known liabilities is adequate and not in
excess of the amount reasonably necessary.
7 The balances of debtors, creditors and deposits are subject to
confirmation and reconciliation.
8 (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.
(ii) Figures have been rounded off to the nearest rupee.
Mar 31, 2014
1 a) Terms/Rights attached to equity shares
The company has only one class of equity share having a par value of
Rs. 1/- per share. Each holder of equity shares is entitled to one vote
per share and dividend per share on pari passu basis. The company
declares and pays dividends in Indian Rupees. The dividend proposed by
the Board of Directors except interim dividend is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2014, the amount of per share
dividend recognised as distributions to equity shareholders was Rs. Nil
(31st March, 2013 Rs. Nil).
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 proportion to the number of equity shares held by the shareholders.
Note : 2 (a)
Secured Loan:
Vehicle Loan
(i) From ICICI Bank Ltd.
Nature of security
Secured by hypothecation of vehicles Rate of Interest
The rate of interest is 11.08% p.a. ( P.Y. 11.08% p.a.)
Terms of Repayment
Equated monthly installment of Rs. 45,260/- commencing from 1st
October, 2012 and ending on 1st April, 2015. From Kotak Mahindra Bank
Ltd.
Nature of security
Secured by hypothecation of vehicles Rate of Interest
The rate of interest is 10.27 % p.a.
Terms of Repayment
Equated monthly installment of Rs. 19,360/- commencing from 10th
August, 2013 and ending on 10th June, 2016.
From Bank of Baroda Nature of security
a) Hypothecation of stock & book debts of the company.
b) Hypothication of goods purchased/imported under L.C.
c) Composite hypothecation agreement of Stocks and Book Debts, Plant
and Machinery of the company, both present & future as well as other
fixed assets of the company.
Rate of Interest
The rate of interest is p.a. 12.70 % p.a.
Terms of Repayment
Repayable in 84 months as under:
FY 2015 - 12 monthly installaments of Rs. 10.00 Lacs
FY 2016 - 12 monthly installaments of Rs. 13.33 Lacs
FY 2017 - 12 monthly installaments of Rs. 16.67 Lacs
FY 2018 - 12 monthly installaments of Rs. 29.33 Lacs
FY 2019 - 12 monthly installaments of Rs. 29.33 Lacs
FY 2020 - 12 monthly installaments of Rs. 29.33 Lacs
FY 2021 - 12 monthly installaments of Rs. 28.51 Lacs
(ii) Loan from other party
From Tata Capital Financial Services Limited
Nature of security
a) First & exclusive Charge by way of hypothecation of the Windmills
along with its accessories etc. installed at Tiwri, Location No. 38,
Village - Indroka, Dist : Jodhpur, Rajashthan and Location No. 311,
Samana Site, Village Paddaval, Taluka - Upleta, Dist : Rajkot, Gujarat
- 360 007 by mortgage of the land.
b) First & exclusive charge by way of hypothecation on all trade
receivables.
c) Unconditional and irrevocable personal guarantee of a Executive
Director, Mr. Anup Jatia.
Rate of Interest
The rate of interest is p.a. 14.75% p.a. (P.Y. 14.75% p.a.)
Terms of Repayment
Equated monthly installment of Rs. 560,738/- commencing from 10th
October, 2010 and ending on 10th September, 2016
Nature of security
Hypothecation of stocks and book debts of the company, present and
future, and pledge of office premises and corporate guarantee of Black
Rose Trading Pvt. Ltd.
The above charges rank pari passu for all intents and purposes.
Rate of Interest
Effective cost for the above loans are in the range of 12.50% p.a. to
14.00% p.a. (P.Y. 13 % p.a. to 14.25% p.a.)
(b) Provision for leave salary has been made on actuarial valuation as
per the requirement of Revised Accounting Standard 15.
(c) The above actuarial valuation does not include gratuity and leave
salary payable to Executive Director, Mr. Anup Jatia.
3 Notes :
1. The above Related Party relationships are given by the management
and relied upon by the auditor.
2. Figures of previous year are given in brackets.
4 Leases (AS-19)
(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/ restrictive convenants in the lease agreements. There
is no contingent rent.
(b) Particulars of Asset given on lease
5 Impairment of Assets ( AS-28)
Based on exercise of impairment of assets undertaken by the management
in due cognisance of paragraphs 5 to 13 of AS 28. The Company has
concluded that no impaired loss is required to be booked.
6 Contingent Liabilities
Contingent liabilities not provided for in respect of :
(i) Bank Guarantee given to Government authorities Rs. 15,000/- (P.Y.
Rs. 15,000/-)
(ii) Central Sales Tax liability of Rs. 936,172/- (P.Y. Rs.
2,677,976/-) as per MVAT Audit completed in the current financial year,
as the said liability is on account of non receipt of ''C'' forms from
various payable customers and the company is awaiting the receipt of
said forms. The liabilities if any will be accounted in the books of
account in the year in which the final liability is determined.
(iii) Disputed Income Tax demands of Rs. 231,686/- (Previous Year Rs.
231,686/-) for which company has gone in appeal. The management is of
the opinion that the said demand is likely to be either deleted or
substantially reduced and accordingly no provision has been made.
7 Capitalisation of Expenditure
The company has capitalised the following revenue expenses by debiting
to statement of profit and loss and transferring the same to capital
work-in-progress (CWIP) account for its project at Jhagadia, Gujarat.
Consequently, expenses disclosed under the respective notes are net of
amounts capitalised by the company.
During the year, project at Jhagadia was completed and consequently all
pre-operative expenses lying under capital work-in-progress were
apportioned to the assets created upon completion of project.
8 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 has not been given.
9 The amount of Deferred Premium/Discount on Foreign Exchange Forward
Contract to be recognised in statement of Profit & Loss in the
subsequent year is Rs. 573,506/- (Previous Year Rs. 549,393/-)
10 In the Opinion of the Board of Directors, the Current Assets, Loans
& Advances are realisable in the ordinary course of business at least
equal to the amount at which they are stated in the Balance Sheet. The
Provision for all known liabilities is adequate and not in excess of
the amount reasonably necessary.
11 The balances of debtors, creditors and deposits are subject to
confirmation and reconcilation.
12 (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.
(ii) Figures have been rounded off to the nearest rupee.
Mar 31, 2013
Note: 1 (a) Secured Loan:
Vehicle Loan
(i) From ICICI Bank Ltd. (P.Y - HDFC Bank Ltd)
Nature of security
Secured by hypothecation of vehicles
Rate of Interest
The rate of interest is 11.08% p.a. ( P.Y. 9.87% p.a.)
Terms of Repayment
Equated monthly installment of Rs. 45,260/- commencing from 1 st October,
2012 and ending on 1 st April, 2015. (ii) Loan from other party
From Tata Capital Financial Services Limited.
Nature of security
a) First & exclusive Charge by way of hypothecation of the Windmills
along with its accessories etc. installed at Tiwri, Location No. 38,
Village - Indroka, Dist: Jodhpur, Rajashthan and Location No. 311,
Samana Site, Village Paddaval, Taluka - Upleta, Dist: Rajkot, Gujarat -
360 007 by mortgage of the Land.
b) First & exclusive charge by way of hypothecation on all trade
receivables.
c) Unconditional and irrevocable personal guarantee of a Executive
Director, Mr. Anup Jatia. Rate of Interest
The rate of interest is 14.75% p.a. ( P.Y. 13.25% p.a. to 14.75% p.a.)
Terms of Repayment
Equated monthly installment of Rs. 560,738/- commencing from 10th
October, 2010 and ending on 10th September, 2016
2. Leases (AS-19)
(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/ restrictive convenants in the lease agreements.There is
no contingent rent.
(b) Particulars of Asset given on lease:
Note : The figures given above are for whole of the asset as per books
of account and not for the part area of the asset given on lease.
(c) The lease rental recognised income in the statement of profit and
loss during the current financial year is Rs. 732,000/-
(d) Future minimum rentals receivable under non-cancellable operating
leases are as follows:
3. (a) The Provision for current tax of Rs. 12,020,000/- has been made
as per the provisions of Income Tax Act,1961. However, after availing
credit for MAT of Rs. 6,003,235/-already paid, the actual liability
towards tax will be Rs. 6,016,765/-
(b) During the year the company has, in accordance with Accounting
Standard-22 w.r.t Accounting for Credit available in respect of Minimum
Alternate Tax paid under section 115JB of the Income Tax Act,1961, made
provision for Income tax after taking available MAT credit of Rs.
6,003,235/- paid u/s 115JB of the Income tax Act, 1961 in the earlier
years and accordingly the availed amount had been deducted from
openingn MAT Credit Entitlement of Rs. 8,362,380/- appearing as an asset
under the head other long term loans and advances (Note No: 13)
4. Impairment of Assets ( AS-28)
Based on exercise of impairment of assets undertaken by the management
in due cognisance of paragraphs 5 to 13 of AS 28.The Company has
concluded that no impaired loss is required to be booked.
5. Contingent Liabilities
Contingent liabilities not provided for in respect of :-
(i) Custom duty demand of Rs. 1,488,943/- for which the company has
preferred appeal
( P.Y. Rs. 1,488,943/-).
(ii) Bank Guarantee given to Government authorities Rs. 15,000/- (P.Y. Rs.
15,000/-)
(iii) Central Sales Tax liability of Rs. 2,677,976/- (P.Y. Rs. 849,750/-)
as per MVAT Audit completed in the current financial year, as the said
liability is on account of non receipt of ''C forms from various payable
customers and the company is awaiting the receipt of said forms. The
liabilities if any will be accounted in the books of account in the
year in which the final liability is determined.
(iv) Disputed Income Tax demands of Rs. 231,686/- (Previous Year Rs. Nil)
for which company has gone in appeal. The management is of the opinion
that the said demand is likely to be either deleted or substantially
reduced and accordingly no provision has been made.
6. Capitalisation of Expenditure
During the year, the company has capitalised the following revenue
expenses by debiting to statement of profit and loss and transferring
the same to capital work-in-progress (CWIP) account for its on going
project at Jhagadia, Gujarat. Consequently, expenses disclosed under
the respective notes are net of amounts capitalised by the company.
7. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclousers, if any, relating to
amounts unpaid as at the year end together with interest paid/payable
as required under the said Act has not been given.
8. The amount of Deferred Premium/Discount on Foreign Exchange
Forward Contract to be recognised in statement of Profit & Loss in the
subsequent year is Rs. 549,393/- (Previous Year Rs. 668,269/-)
9. The balances of debtors, creditors and deposits are subject to
confirmation and reconcilation.
10. (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.
(ii) Figures have been rounded off to the nearest rupee.
Mar 31, 2012
A) Terms/Rights attached to equity shares
The company has only one class of equity share having a par value of Rs.
1/- per share. Each holder of equity shares is entitled to one vote per
share and dividend per share on pari passu basis. The company declares
and pays dividends in Indian Rupees. The dividend proposed by the Board
of Directors except interim dividend is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
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 proportion to the number of equity shares held by the shareholders.
Note: 1 (a)
Secured Loan
Vehicle Loan
(i) From HDFC Bank Limited Nature of security
Secured by hypothecation of vehicles Rate of Interest
The rate of interest is 9.87% p.a. (P.Y. 9.87% p.a.)
Terms of Repayment
Equated monthly installment of Rs. 16,929/- commencing from 8th October,
2009 and ending on 7th September, 2012.
(ii) Loan from other party
From Tata Capital Financial Services Limited.
Nature of security
a) First & exclusive Charge by way of hypothecation of the Windmills
along with its accessories etc. installed at Tiwri, Location No. 38,
Village - Indroka, Dist- Jodhpur, Rajashthan and Location No. 311,
SamanaSite, Village Paddaval, Taluka - Upleta, Dist - Rajkot, Gujrat-
360 007 by mortgage of the land.
b) First & exclusive charge by way of hypothecation on all trade
receivables.
c) Unconditional and irrevocable personal guarantee of a Executive
Director, Mr.Anup Jatia.
Rate of Interest
The rate of interest varies from 13.25% p.a. to 14.75% p.a. (P.Y.
12.25% p.a. to 13.25% p.a.)
Terms of Repayment
Equated monthly installment of Rs. 560,738/- commencing from 10th
October, 2010 and ending on 10th September, 2016
Nature of security
Hypothecation of stocks and book debts of the company, present and
future, and pledge of office premises and corporate guarantee of Black
Rose Trading Private Limited. The above charges rank pari passu for all
intents and purposes.
Rate of Interest
The rate of interest for above loan is 12.25% to 14.45 % (P. Y. 11 % to
13%)
2 Leases (AS-19)
(a) The company has given part of its lease hold factory building on
operating lease basis for a period of 5 years. The lease agreement is
of non-cancellable in nature and renewable at the end of the expiry
period at the option of both the lessor and the lessee, and there are
no exceptional/restrictive covenants in the lease agreements. There is
no contingent rent.
Note : The figures given above are for whole of the asset as per books
of account and not for the part area of the asset given on lease.
(c) The lease rental recognized income in the statement of profit and
loss during the current financial year is Rs. 732,000/-
(d) Future minimum rentals receivable under non-cancellable operating
leases are as follows:
Note No. 3(a)
Pursuant to the issue of bonus equity shares during the current year,
the earnings per share (EPS) for the previous year has been adjusted as
per para 22 of the Accounting Standard - 20, Earning per Share as
under:
(a) In Numerator the amount is taken as profit for the previous year.
(b) In Denominator the weighted average No. of equity shares
outstanding at the end of the previous year has been adjusted by
increasing the No. of equity shares by the No. of bonus shares issued
as if the event had occurred at the beginning of the earliest period
reported.
4 (a) During the year the company has in accordance with Guidance Note
No. 22 on Accounting for Credit available in respect of Minimum Alternate
Tax paid under section 115JB. The Income of the Income Tax Act, 1961
issued by the Institute of Chartered Accountants of India, has accounted
for MAT Credit Entitlement available in respect of earlier years of Rs. 7,065,91 It- on revision of computation of tax by crediting to the
statement of Profit and Loss and adding to MAT Credit Entitlement
pearing as an asset under the head other long term loans and advances
( Note No. : 13)
(b) During the year the company has in accordance with Guidance Note
No. 22 on Accounting for Credit available in respect of Minimum
Alternate Tax paid under section 115JB of the Income Tax Act,1961
issued by the Institute of Chartered Accountants of India has made
provision for Income- Tax after taking available MAT credit of Rs.
973,223/- paid u/s 115JB of the Income tax Act, 1961 in the earlier
years and accordingly the availed amount had been deducted from
openingn MAT Credit Entitlement of X 8,362,380/- appearing as an asset
under the head other long term loans and advances (Note No. 13)
5 Based on exercise of impairment of assets undertaken by the
management in due cognizance of paragraphs 5 to 13 of AS 28. The
Company has concluded that no impaired loss is required to be booked.
6 Contingent liabilities not provided for in respect of :
(i) Custom duty demand of X 1,488,943/- for which the company has
preferred appeal ( P.Y. Rs. 1,488,943/-)
(ii) Income Tax demand relating to Assessment year 2005-06 for which
the company has preferred appeal with the higher authorities C.Y.
Nil (P.Y. 1308,436/-)
(iii) Bank Guarantee given to Government authorities Rs. 15,000/- (P.Y. 1
15,000/-)
(iv) Central Sales Tax liability of Rs. 849,750/- in respect of financial
year 2010-11 as per MVAT Audit completed in the current financial year,
as the said liability is on account of non receipt of 'C' forms
from various payable customers and the company is awaiting the receipt
of said forms. The liabilities if any will be accounted in the books of
account in the year in which the final liability is determined.
7 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 has not been given.
b) Particulars of unheeded foreign currency exposure as at the balance
sheet date Particulars
Trade Payable (US$) Rs. 129,032,647/- (31st March, 2011: Rs. 136,546,825/-)
Secured Trade Credit (US$) t 40,764,852/- (31st March, 2011:)
9,009,869/-)
Trade receivable (US$) Rs. 1,548,126/- (31st March, 2011: Rs. - NIL)
8 The amount of Deferred Premium/Discount on Foreign Exchange Forward
Contract to be recognized in Statement of Profit & Loss in the
subsequent year is Rs. 668,269/- (Previous Year - Rs. 20,882/-)
9 The balances of debtors, creditors and deposits are subject to
confirmation and reconciliation.
10 Previous year figures
Till the year ended 31st March 2011, the company was using pre-revised
Schedule VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March, 2012 the revised Schedule VI notified under the Companies Act,
1956, has become applicable to the company. The company has
reclassified previous year figures to conform to this year's
classification. Except accounting for dividend on investments in
subsidiaries, the adoption of revised Schedule VI does not impact
recognition and measurement principles followed for preparation of
financial statements. However, it significantly impacts presentation
and disclosures made in the financial statements, particularly
presentation of balance sheet.
Mar 31, 2011
1. Contingent liabilities not provided for in respect of :-
(a) Custom duty demand of Rs.1,488,943/- for which the company has
preferred appeal (Previous Year Rs. 1,488,943/-)
(b) Income Tax demand of Rs.308,436/- relating to Assessment Year
2005-06 for which the company has preferred appeal with the higher
authorities. (Previous Year Rs.308,436/-)
(c) Bank Guarantee given to Government authorities - Rs. 15,000/-
(Previous Year - Rs. 15,000/-)
(d) Capital commitment not provided for (net of advances) Rs.
13,457,500/- (25,000,000 Yen) (P.Y. Nil) (1 Yen = Rs 0.5383).
(e) Uncalled amount of Rs Nil ( P.Y.Rs 25/-) per preference share in
respect of 60,000 partly paid up non-cumulative redeemable preference
shares of Yarntex Exports Ltd.
2. The balances of debtors, creditors and deposits are subject to
confirmation and reconciliation.
3. In the opinion of the Board of Directors, the Current Assets,
Loans and Advances have a value realisation in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance Sheet and adequate provision for all known liabilities of the
Company has been made.
4. Based on exercise of impairment of assets undertaken by the
management in due cognizance of paragraphs 5 to 13 of AS 28 issued by
the ICAI, the Company has concluded that no impaired loss is required
to be booked.
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 has not been given.
6. The amount of Deferred Premium/Discount on Foreign Exchange Forward
Contract to be recognized in Profit & Loss Account in the subsequent
year is Rs. 20,882 (Previous Year - Rs.67,368/-)
7. (a) The gratuity charged to the profit and loss account for the
year includes provision as per theactuarial valuation as per the
requirement of Revised Accounting Standard 15 issued by the Institute
of Chartered Accountants of India as well as payment made for the year
towards gratuity. The actuarial valuation is done at the year end using
Projected Cost Unit method and it covers all regular employees.
8. Disclosure of Related Party Transactions (AS - 18) (As certified by
the Management)
(a) Information about related parties:
SR.
NO PARTICULARS NAME OF RELATED PARTY
1 Key Management Personnel Executive Director
Shri Anup Jatia
2 Enterprises owned or significantly Black Rose Trading Pvt. Ltd.
influenced by any management Tozai Safety Pvt. Ltd.
personnel or their relatives. Tozai Enterprises Pvt. Ltd.
Accent Industries Ltd.
Fukui Accent Trading (India)
Pvt. Ltd.
9. During the year the Company, in accordance with Guidance note No.
22 on Accounting for Credit available in respect of Minimum Alternative
Tax under The Income-Tax Act, 1961 issued by the Institute of Chartered
Accountants Of India, has made provision for Income-tax after taking
available MAT credit of Rs.1,109,314/- paid u/s 115JB of the Income-tax
Act, 1961 in the earlier years and accordingly the availed amount has
been deducted from opening MAT credit entitlement of Rs.3,379,000/-
as an asset under the head Loans & Advances.
10. (i) Figures of the previous year have been re-grouped and
re-classified wherever necessary to correspond with the figures of the
current year.
(ii) Figures have been rounded off to the nearest rupee.
Mar 31, 2010
1. Contingent liabilities not provided for in respect of :-
(a) Custom duty demand of Rs1,488,943/-for which the company has
preferred appeal (Previous Year Rs. 1,488,943/-)
(b) Income Tax demand of Rs 308,436/- relating to Assessment Year
2005-06 for which the company has preferred appeal with the higher
authorities. (Previous Year Rs. 308,436/-)
(c) Bank Guarantee given to Government authorities-Rs.
15,000/-(Previous Year- Rs.15, 000/-)
(d) Uncalled amount of Rs.25/- per preference share in respect of
60,000 partly paid up non- cumulative redeemable preference shares of
Yarntex Exports Ltd.
2. The balances of debtors, creditors end deposits are subject to
confirmation and reconciliation.
3. In the opinion of the Board of Directors, the Current Assets, Loans
and Advances have a value realisation in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance Sheet and adequate provision for all known liabilities of the
Company has been made.
4. Based en exercise of impairment of assets undertaken by the
management in due cognizance of paragraphs 5 to 13 of AS 28 issued by
the ICAI, the Company has concluded that no impaired loss is required
to be booked.
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 has not been given.
6. The amount of Deferred Premium on Foreign Exchange Forward Contract
to be recognized in Profit & Loss Account in the subsequent year is Rs.
67,368/- ( Previous Year-Rs 219,925/- )
7. (a) The gratuity charged to the profit and loss account for the
year includes provision as per the actuarial valuation as per the
requirement of Revised Accounting Standard 15 issued by the Institute
of Chartered Accountants of India as well as payment made for the year
towards gratuity. The actuarial valuation is done at the year end using
Projected Cost Unit method and it covers all regular employees.
(b) Provision for leave salary has been made on actuarial valuation as
per the requirement of Revised Accounting Standard 15 issued by the
Institute of Chartered Accountants of India.
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