1. Disclosure pursuant to Accounting Standard - 15 (revised) - Employee
Benefit :
There are no employees who are eligible for gratuity as on 31.03.2015.
Hence no provision is considered necessary.
2. The Company is not in the possession of details required for the
purpose of classification of creditors as per Micro, Small and Medium
Enterprises Development Act, 2006. Hence the company is unable to
furnish the information required under the said Act.
3. Balances in certain party's accounts are subject to reconciliation
and consequent adjustments thereof. In the opinion of the management
the impact of such adjustments, if any, on the financial results would
be not material.
4. The company operates in one segment, viz., Textiles.
5. Taxation
Deferred Tax Asset on the unabsorbed business/depreciation loss is not
recognised since no virtual certainity can be established evidencing
that sufficient future taxable income will be available against which
deferred tax asset can be realised.
6. Bank Balances
Consequent to listing of the company in stock exchange the company has
communicated to the bankers for making necessary change in the name of
the company in their records however some of the bankers have not given
effect to the change and continuing in the erstwhile name
7. Turnover of the company is net of sales returns and trade discounts.
The negative income in the statement of profit and loss is due to sales
returns on the cancellation of sales. The goods have been repossesed to
the extent of cancelled sales and the stock are valued at cost or
realisable value whichever is lower
8. Other Operating revenue represents the export incentives receivable
from the government authorities
9. During the 2013-14, the company has made on application with the
Board for Industrial and Financial Reconstruction (BIFR) under section
15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 on
30th July 2013. Subsequently the application has been registered in the
board vide Case No.61/2013.
10 The net worth of the wholly owned subsidiary M/s. Indus Garments
Pvt. Ltd is fully eroded, and there is a permanent decline in the value
of investment and accordingly the entire value of investments is
provided for.
11. The manufacturing unit at Nanjangud, Nelamangala and Peenya having
gross block of fixed assets Rs.185,20,32,868/- is not in operation for
the past two years. The units do not have any long term contracts for
manufacture and supply of textiles/garments. This indicates that the
cash generating capacity of the fixed assets have been impaired.
Accordingly, the management is in process of testing, wherein future
cash flows are being estimated to determine the provision required, if
any, in respect of impairment of fixed assets. Management believes that
adjustment to the carrying amount of fixed assets, if any, arising out
of testing would not be material.
12. The Company has not prepared the Bank Reconciliation Statements for
the following bank accounts due to non-receipt of bank statement/bank
confirmation from the banks. The unreconciled balances, if any, would
not be material.
i. Andhra Bank , Yeshwanthapur Branch
ii. Canara Bank EEFC $ A/C
iii. Canara Banj ,Mysore-C.A. A/C NO.1046
iv. Canara Bank -Nanjangud-C.A.-1060
v. Corporation Bank - CC A/C 01/050004
vi. Corporation Bank - CB CA /01/22
vii. Corporation Bank- 400012
viii. Corporation Bank EEFC A/C (USD)
ix. Corporation Bank, Mysore- CBCA/01/000011
x. Corporation Bank, Nanjangud-000063
xi. HDFC Bank-0090330002120
xii. ICICI Bank Limited- 028705001608
xiii. Karnataka Bank A/c No: 1182000100020201
xiv. Karnataka Bank A/C NO.1182000100018501
xv. State Bank of India, Meenambakkam Branch- 10775223147
xvi. State Nahavashev A/C NO 10072948718
xvii. State Bank of India -Andheri A/C NO 11147766330
xviii. State Bank of India CC 016000/53002
xix. UCO Bank -Bangalore C.A A/C 1135
13 The Company has accounted the interest on the following following
term loans/ Cash credit accounts at the rates as per the terms of
sanction for the following loan accounts due to non-receipt of loan
statement/confirmation from the banks. The difference between the
actual interest and the computed interest, if any, will be not be
material.
i. Corporation Bank TL No: 40006
ii. UTI BANK FITL A/C No: 909060033270773
iii. Canara bank 2636773000019
iv. Karnataka Bank TLNo: 1187001600032901
v. Karnataka Bank TL/NO.1187001600030201
vi. Karnataka Bank TL-1187001600025501
vii. Karnataka Bank TLA/c 1187001600033001
viii. UTI Bank Term Loan: 009010600134248
ix. Axis Bank Critical Capex TL NO: 910060032360219
x. Canara bank TL A/c no: 2636773000013
xi. Bills Discounting - Karnataka Bank
xii. Bills Discounting - Axis Bank Ltd
xiii. Corporation Bank - PRTBL
xiv. Corporation Bank CC A/C 40001
xv. Axis Bank -PC LOAN A/C
xvi. Standard Chartered Bank -H06234093655 xvii . Canara FITL
2636747000002
xviii. ABN AMRO
14. Consequent to the changes in depreciation rates as per Schedule II
of Companies Act, 2013, the depreciation charged is higher by Rs.692.04
lakhs on the assets held at April 1, 2014.
15 Related party disclosure as per AS 18 - refer annexure
16 Previous year figures have been regrouped / reclassified wherever
necessary
Transaction with the key Management Personnel:-
1 Mr. Nitin N Mandhana : Vice Chairman & Managing Director
2 Mr. Shashikant Mandhana : Executive Director Till 31-05-2014
3 Mr. Prakash G. Mandhana : Executive Director Till 31-05-2014
Transaction with relatives of key Management Personnel :-
1 Mrs. Savita Mandhana
2 Mrs. Kavita Mandhana
3 Mrs. Neeta Mandhana
4 Mrs. Nirmala N Mandhana
5 Mrs. Leelavati G Mandhana
6 Mr . Narayandas mandhana
Name of Related Parties & Relationships Wholly Owned Subsidiary Company
1 Indus Garments Private Limited
Associates (Enterprises in which Key Management Personnel or their
relatives exercise significant influence)
1 Abhay Weaving Mills Pvt. Ltd.
2 Abhijeet Weaving Mills Pvt. Ltd.
3 Ahaan Weaving Mills Pvt. Ltd.
4 Andrew Finvest Pvt Ltd
5 Avinash Weaving Mills Pvt. Ltd.
6 Indus Infoways Pvt. Ltd
7 Kamal Kishor Finvest Pvt Ltd
8 Kavita Weaving Mills Pvt. Ltd
9 Neeta Weaving Mills Pvt. Ltd 10 Niharika Weaving Mills Pvt. Ltd
II Nirmala Hosieries Mills Pvt. Ltd
12 Parag Investment Pvt. Ltd
13 Propellor Infotech
14 Savita Textiles Pvt. Ltd
15 Siddhant Spinning & Weaving Mills Pvt. Ltd
16 Sneha Textiles Private Limited
17 Vedant Weaving Mills Pvt. Ltd
18 Vir Retail Private Limited
19 Tulsi Weaving Mills
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