| 1 Right of Equity Shareholders:
Company has only one class of equity shares of par value Rs.10. The
holder of this equity share is entitled to one vote per share. In the
event of liquidation of the Company the holder of equity share will be
entitled to receive any of the remaining assets of the Company after
distribution of the preferential payments. However, no such
preferential amounts exist currently.
The distribution will be in proportion to the nos. of equity shares
held by the shareholders.
2 Notes:
1) Term Loans at (a) (i) above are secured by way of first pari-passu
mortgage created on immovable properties of the Company, situated at
MIDC, Gokul Shirgaon, Kolhapur and other movable assets both present
and future and second pari-passu charge created on inventories and book
debts both present and future and some immovable properties of the
Company at Kolhapur.
2) Loans in (a)(ii) above are secured by way of hypothecation of
Vehicles purchased there against.
3 Contingent assets are not recognised or disclosed in the financial
statement.
As at As at
31st March, 31st March,
2015 2014
(Rs. in Lacs) (Rs. in Lacs)
3 OTHER NOTES TO FINANCIAL STATEMENTS
1. Contingent liabilities :
Contingent liabilities not
provided for in respect of :
a) Amount outstanding in respect
of Bills discounted under Export 1,480.02 3,195.05
Letter of Credit (Since realised
Rs.498.82 Lacs; Previous Year
Rs.1199.69 Lacs)
b) Disputed Statutory claims /
levies, including, those pending
incourtand other claims not
acknowledged as debts (excluding
interestwhere not ascertained /
demanded) in respect of:
(' Rs. Lacs)
Sr.
No Particulars Current Year Previous Year
a Sales Tax 408.44 330.92
b Excise Duty 1,391.32 1,391.32
c Custom Duty 136.39 136.39
c) "The Company's pending litigations comprise of claims against the
Company and proceedings pending with tax and other Authorities. The
Company has reviewed all its pending litigations and proceedings and
has made adequate provisions, wherever required and disclosed the
contingent liabilities, wherever applicable, in its financial
statements. The Company does not reasonably expect the outcome of these
proceedings to have a material impact on its financial statements."
4). a) The Company's case in the matter of Electricity Charges wrongly
claimed by Maharashtra State Electricity Distribution Company Ltd.
(MSEDCL) from November, 1998 to June, 2008 has been decided favourably
by Maharastra Electricity Regulatory Commission (MERC) and Appellate
Tribunal, New Delhi. MSEDCL has filed an appeal before the Supreme
Court.
b) Similarly the High Court of Mumbai has in the matter of Electricity
5). a) In the opinion of Board, the assets other than Fixed Assets and
non-current Investments have a value on realisation in the ordinary
course of business, atleast equal to the amount at which they are
stated in the Balance Sheet. The provision for depreciation and other
known liabilities is adequate and not in excess of what is required.
b) The account of certain Trade Receivables, Loans and Advances given /
received, Trade Payables and Bank Accounts are, however, subject to
formal confirmations and reconciliations, if any. The management,
however, is confident that the impact whereof for the year on the
financial statements will not be material.
6). Related Party disclosures pursuant to Accounting Standard '18':
1. Name of the Parties:
(i) Key Management Personnel:
Shri Krishan Kumar Patodia (Chairman and Managing Director)
Shri Narayan Patodia (Managing Director)
Shri Rajiv Patodia (Executive Director & CFO w.e.f. 8th November, 2014)
Shri Rahul Rawat (Company Secretary)
(ii) Other Related Parties (Associates), where transactions have taken
place during the year: PBM Polytex Limited
Patodia Syntex Limited Murarilal Mahendra Kumar Paramount Cotton Co.
provision has been made tor doubtful debts/receivables.
7). In terms ot Accounting Standard 17, the Company operates primarily
only in one business segment Viz. Cotton yarn and has its production
facilites and all other assets located in India. Sales comprises
exports sales ot Rs. 20,180.78 Lacs (Previous year Rs. 25,021.61 Lacs)
and Domestic sales of Rs. 6,789.91 Lacs (Previous year Rs. 8,222.32
Lacs).
8). During the year, certain freehold land has been converted into
stock-in-trade and included in the inventory at cost. (Fair Value as
per Govt. Valuer is 106.75 lacs).
9). Previous years' figures have been regrouped / rearranged wherever
necessary to conform with current year's presentation.
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