Notes to Accounts of Garware Synthetics Ltd.

Mar 31, 2024

(v) OTHER NOTES

i) Capital Commitment

The estimated amount of contracts remaining to be executed on capital account not provided for as on the Balance Sheet dated in NIL.

ii) Details of Benami Property Held

No proceedings have been initiated or pending against the company for holding any benami property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

iii) Borrowings from Banks for Credit Facility

The Company has not availed off any credit facilities from banks or financial institutions against the security of current assets during the year.

iv) Willful Defaulter

The company has not been declared as willful defaulter by any bank or financial institution or any lender during the year.

v) Relationship With Struck Off Companies

The company has no transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 during the year.

vi) Registration of Charges or Satisfaction with Registrar of Companies (Roc)

During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for registration with Registrar of Companies (ROC) beyond the statutory period.

vii) Compliance with Number of Layers of Companies

The company is in compliance with the relevant provisions of Companies Act, 2013 with respect to the number of layers under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restriction on number of layers) Rules, 2017.

viii) Utilisation of Borrowed Funds and Share Premium under Rule 11(E)

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (“intermediaries”) with the understanding, whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the company(“Ultimate Beneficiaries”)

The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Due to the accounting treatment as per this Standard, the current year profit has been decreased by Rs. 25.13 lakhs which consists of Lease interest, amortisation of ‘Right of use’, interest on deposit and prepaid rent and fair value changes on lease.

xi) Previous year figures are regrouped wherever necessary to make them comparable with the figures of the current year.

xii) All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

xiii) Balances of loans/advances/ sundry creditors, debtors and fixed assets are subject to reconciliations, confirmation and adjustment, if any.

xiv) In the opinion of Board of Directors the Current Assets, Loans and advances are stated at net realizable value in the ordinary course of business.

xv) Certain legal cases are pending with the court of law, the quantum of the same is not ascertainable. However, the management is of the opinion that, decision of the court will be in favor of the company.

xvi) In the absence of adequate information regarding the MSME Creditors, the Company is unable to give full particulars as required by Notification No. GSR - 376 (E) dated 22nd May 2002 issued by the Department of Company Affairs, Ministry of Law and Justice and Company Affairs.

xvii) As there is no Managing Director in the company, hence terms of Section 197 and 198 of the Companies Act, 2013 are not applicable to the Company.

xviii) Unless otherwise stated, in the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value if realized in the ordinary course of business. The provisions for all known liabilities made are adequate and are neither short nor in excess of the amount reasonably necessary.

xix) Figures in Brackets in the Notes forming part of the accounts relate to the previous year.

i) No amounts pertaining to related parties have been provided for as doubtful debts. Further, no amounts have either been written off or written back during the year.

Note 30 - Contingent Liabilities

The Company’s pending litigations comprise of claims against the Company primarily by the proceedings pending with Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March 31, 2024.

'' in lakhs
Particulars	2023-24	2022-23
Contingent liabilities and commitments (to the extent not provided for)
Income Tax Related	30.60	30.60

Note 31 - Disclosure under MSMED Act, 2006

The disclosure required under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) has not been given since classification with respect to MSME and others is not available and hence not given herein above.

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Mar 31, 2015

1. The disclosure required under Micro Small and Medium Enterprises Development Act 2006 (MSMED Act) has not been given since classification with respect to MSME and Others is not available and hence not given herein above.

2. Contingent Liabilities are not recognized but are disclosed in financial statements. Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes.

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Mar 31, 2014

Corporate Information

Garware Synthetics Limited is a Manufacturer of Nylon Monofilaments.

Note 1.1 - Contingent Liabilities Note Particulars

1.1.1 Contingent Liabilities are not recognised but are disclosed in financial statements. Provision involving substantial degree of estimation in measurement is recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes.

PARTICULARS 2013-14 2012-13 Rs. Rs.

1.1.2 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt

(Excluding interest claimed by the parties ) 1265509 1265509

(b) Penalty on TDS u/s 234E Constitutional Validity has been challenged in the Kerala Court in case of Narath mapila LP School v/s UOI & Vide Interim Order dated 18.12.2013 the High court has admitted the petition & granted a stay of proceedings. 42400 40200

Note 2 - Disclosure under MSMED Act 2006

2.1 The disclosure required under Micro Small and Medium Enterprises Development Act 2006 (MSMED Act) has not been given since classification with respect to MSME and Others is not available and hence not given herein above.

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Mar 31, 2013

1. Previous year figures are regrouped wherever necessary to make them comparable with the figures of the current year.

2. Balances of loans/advances/ sundry creditors and debtors are subject to confirmation and adjustment if any.

3. In the opinion of Board of Directors the Current Assets, Loans and advances are stated at net realizable value in the ordinary course of business.

4. During the year, company has written back its few creditors, as the amount payable was under dispute, however during the year the decision was in favor of company and to that extend amount has been written back.

5. Certain legal cases are pending with the court of law, the quantum of the same is not ascertainable. However, the management is of the opinion that, decision of the court will be in favor of the company.

6. There are certain banks accounts which are non-operative for a longer period and bank statements are not available and the balances of such bank accounts are subject to reconciliation if any.

7. In the absence of adequate information regarding the SSI Creditors, the Company is unable to give full particulars as required by Notification No. GSR - 376 (E) dated 22nd May 2002 issued by the Department of Company Affairs, Ministry of Law and Justice and Company Affairs.

8. Aggregate Managerial Remuneration under Section 198 of the Companies Act,1956 paid or provided for during the year to the Managing Director and other directors is Rs.3,96,565/- (P.Y. Rs.3,46,200/-).

9. In view of absence of adequate profits in terms of Section 349 and 309 of the Companies Act, 1956 commission is not payable to the Managing Director.

10. Remuneration paid to Auditor during the Current Year is Rs. 84,270/- (P.Y. Rs. 84,270/-).

11. Unless otherwise stated, in the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value if realized in the ordinary course of business. The provisions for all known liabilities made are adequate and are neither short nor in excess of the amount reasonably necessary.

12. Balances amounting to Rs. 6,70,691/- (P.Y. 5,28,816/-) with various banks are subject to confirmation and reconciliation (if any).

13. Figures in Brackets in the Notes forming part of the accounts relate to the previous year.

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Mar 31, 2012

1. The balances of Sundry Debtors, Creditors and advances are subject to confirmation. Adjustment including provision/write off if any, required in accounts will be made on final reconciliation and/or settlement.

2. No provision has been made for tax in the absence of taxable profit.

3. In the absence of adequate information regarding the SSI Creditors, the Company is unable to give full particulars as required by Notification No. GSR - 376 (E) dated 22nd May 2002 issued by the Department of Company Affairs, Ministry of Law and Justice and Company Affairs.

4. Aggregate Managerial Remuneration under Section 198 of the Companies Act, 1956 paid or provided for during the year to the Whole time Director and other directors is Rs. 3,82,956/- (P.Y. Rs. 3,46,200/-)-

5. Contingent Liability Not provided:

- The Company is not enjoying any credit facilities from Bank Of Baroda and Indian Overseas Bank and there is no outstanding amount to its banker as full and final one time settlement is made during the year.

- The company has filed an appeal with DART (Debt Appellate Recovery Tribunal) against Bank of Baroda for the surplus amount paid to the extent of Rs. 32.00 Lacs.

6. Deferred Taxation

- Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses ,all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits

- In view of accounting standard 22, the incidence of Deferred Tax Assets on the company for the year under audit is Rs. 17,65,111/-

7. Revaluation of plant and machinery and building has been made during the year ended 31st March, 1992 on the basis of valuation report submitted by Mr. V.S. Pandit. The increase in value of these assets amounting to Rs. 14.79 Crores has been credited to the Capital Reserve.

8. Remuneration paid to Auditor during the Current Year is Rs. 84,720/- (P.Y. Rs. 66180/-).

9. Unless otherwise stated, In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value if realised in the ordinary course of business. The provisions for all known liabilities made are adequate and are neither short nor in excess of the amount reasonably necessary.

10. Revaluation of plant and machinery and building has been made during the year ended 31st March, 1992 on the basis of valuation report submitted by Mr. V.S. Pandit. The increase in value of these assets amounting to Rs. 14.79 Crores has been credited to the Capital Reserve.

11. Balances amounting to Rs. 5,27,816 /- (P.Y. 10,85,795/-) with various banks are subject to confirmation and reconciliation (if any).

12. Figures in Brackets in the Notes forming part of the accounts relate to the previous year.

13. Previous year figures have been re-grouped/re-arranged wherever necessary to make them comparable with current year figures.

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Mar 31, 2011

1. Contingent Liability not provided for:

- The Company has provided corporate guarantee for loan taken by others, the terms and conditions whereof are prima facie prejudicial to the interest of the company. The said loan is defaulted by the company.

- Bank of Baroda and Indian Overseas Bank has filed a Suit in Debt Recovery Tribunal for recovery of advances granted by them. However One Time Settlement has been negotiated and 30% of Settlement amount has already deposited with the Bank. However no provision has been made in the books for the interest on both these borrowings.

2. SEGEMNT REPORTING:

Geographical Segment

Company’s entire business is conducted within India but there are no separate reportable geographical segments.

3. Related party Disclosures : No any transaction has taken place during the year with related parties.

4. The balances of Sundry Debtors, Creditors and advances are subject to confirmation. Adjustment including provision/write off if any, required in accounts will be made on final reconciliation and/or settlement.

5. No provision has been made for tax in the absence of taxable profit.

6. In the absence of adequate information regarding the SSI Creditors, the Company is unable to give full particulars as required by Notification No. GSR - 376 (E) dated 22nd May 2002 issued by the Department of Company Affairs, Ministry of Law and Justice and Company Affairs.

7. Aggregate Managerial Remuneration under Section 198 of the Companies Act, 1956 paid or provided for during the year to the Managing Director and other directors is Rs.3,46,200 /- (P.Y. Rs.3,30,372/-).

8. In view of absence of adequate profits in terms of Section 349 and 309 of the Companies Act, 1956 commission is not payable to the Managing Director.

9. Remuneration paid to Auditor during the Current Year is Rs. 66180/- (P.Y. Rs. 66180/-).

10. Unless otherwise stated, In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value if realised in the ordinary course of business. The provisions for all known liabilities made are adequate and are neither short nor in excess of the amount reasonably necessary.

11. Balances amounting to Rs. 10,85,795/- (P.Y. 14,35,188/-) with various banks are subject to confirmation and reconciliation (if any).

11. Figures in Brackets in the Notes forming part of the accounts relate to the previous year.

12. Previous year figures have been re-grouped/re-arranged wherever necessary to make them comparable with current year figures.

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Mar 31, 2010

1. Contingent Liability not provided for:

- The Company has provided corporate guarantee for loan taken by others, the terms & conditions whereof are prima facie prejudicial to the interest of the company. The said loan is defaulted by the company.

- Bank of Baroda and Indian Overseas Bank has filed a Suit in Debt Recovery Tribunal for recovery of advances granted by them. However One Time Settlement has been negotiated and 30% of Settlement amount has already deposited with the Bank. However no provision has been made in the books for the interest on both these borrowings.

2. SEGEMNT REPORTING:

Geographical Segment

Company's entire business is conducted within India but there are no separate reportable geographical segments.

3. Related party Disclosures : No any transaction has taken place during the year with related parties.

4. The balances of Sundry Debtors, Creditors and advances are subject to confirmation. Adjustment including provision/write off if any, required in accounts will be made on final reconciliation and/or settlement.

5. No provision has been made for tax in the absence of taxable profit.

6. In the absence of adequate information regarding the SSI Creditors, the Company is unable to give full particulars as required by Notification No. GSR - 376 (E) dated 22nd May 2002 issued by the Department of Company Affairs, Ministry of Law & Justice and Company Affairs.

7. Aggregate Managerial Remuneration under Section 198 of the Companies Act, 1956 paid or provided for during the year to the Managing Director and other directors is Rs.3,30,372 /- (P.Y. Rs.4,32,720/-).

8. In view of absence of adequate profits in terms of Section 349 and 309 of the Companies Act, 1956 commission is not payable to the Managing Director.

9. Remuneration paid to Auditor during the Current Year is Rs. 66180/- (P.Y. Rs. 66180/-).

10. Unless otherwise stated, In the opinion of the Board of Directors, the current assets, loans & advances are approximately of the value if realised in the ordinary course of business. The provisions for all known liabilities made are adequate and are neither short nor in excess of the amount reasonably necessary.

11. Balances amounting to Rs. 12,88,557/- (P.Y. 16,21,148/-) with various banks are subject to confirmation and reconciliation (if any).

12. Figures in Brackets in the Notes forming part of the accounts relate to the previous year.

13. Previous year figures have been re-grouped/re-arranged wherever necessary to make them comparable with current year figures.