NOTE1- CORPORATE INFORMATION
Bhandari Hosiery Exports Limited is a public limited Company incorporated under the provisions of Companies Act, 1956. The Company s CIN is L17115PB1993PLC013930 and the Company s Registered Office is situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at BSE Limited (BSE) and NSE. The Company does not have any subsidiary Company. The Company is into Textiles and is a garment manufacturing company having vertical production facility to produce High Fashion Knitted Garments. With more than 20 years experience and state of that art manufacturing facilities, Bhandari Hosiery manufactures garments of leading international and overseas brands and some overseas retail chains..in the international market, we have a presence in around 18 countries including quality conscious markets like USA,, Canada,, UK and European Uniion..
The company is engaged in fabrics and in the manufacture and export of knitted hosiery garments such as T- Shirts,, Pull Overs,, Sweat Shirts,, Bermudas,, Pollo Shirts,, Track Suits,, Payajamas,, Lowers,, Ladies Knitted Tops with embroidery and prints etc. and manufacture , processing and trading of dyed and and undyed fabrics at domestic and international levels. The Company conform to International standards in Human Recourses Practices and adopt Eco-friendly standards in production.
2.1 Contingent Liabilities not provided for (Rs. In Lacs)
2.2 (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability in addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time.
(b) Provision for Income Tax has been made in the Statement of Profit & Loss on the basis of actual tax liability under MAT as per the Income Tax Act, 1961.
2.3 Legal cases by and against Company
There are no legal cases pending or initiated against the Company. Following cases were filed by the Company against some parties and are pending:
2.4 Interest on FDRs is accounted for on accrual basis and the same has been accounted for under the head other Income. Other Income also includes Rent Received.
2.5 Impairment of Assets:- An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment losses, if any, are recognized in accordance with the Accounting Standard 28 issued in this regard by The Institute of Chartered Accountants of India.
No material Impairment of Assets has been identified by the Company and as such no provision is required as per Indian Accounting Standards issued by the Institute of Chartered Accountants of India.
2.6 Party’s balances (under Debtors, Creditors and Advances) as at the year end are subject to confirmation. However Company has a perpetual system of reconciling the accounts with its suppliers & customers during the year.
2.7 In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.
2.8 Segment Reporting
The Company is mainly engaged in the business of manufacturing of textiles consisting of fabric and garments. Considering the nature of the business and financial reporting of the company, the company has only one segment viz textiles as reportable segment . The company operates in domestic and export segment geographically .The sales for both is separately given .But due to the nature of business the assets / liabilities and expenses for these activities cannot be bifurcated separately. Domestic Sales consist sales made in different parts of India. Export Sales consist exports made to Germany, Switzerland, USA, U.K., Netherland,, Dubai and other countries of European Union (EU). The Export sales and Domestic sales are as under:
2.9 Micro, Small and Medium Industries:-
The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the available information with the Company are as under :
2.10 Related Party Disclosure
Detail of disclosures as required by Indian Accounting Standard on “Related Party Disclosures” issued by the Institute of Chartered Accountants of India are as under: -
A. Related parties with whom transactions have taken place during the year 2017-18.
a. Key Managerial Personnel:
1. Shri Nitin Bhandari, Mg. Director 2. Shri Manoj Kumar, CFO 3.Shri Gurinder Makkar, Company Secretary (Resigned w.e.f. 31.03.2018)
b. Relatives of Key Managerial Personnel
1. Shri Naresh Bhandari (Father of Shri Nitin Bhandari, Mg. Director ) 2. Ms. Kusum Bhandari (Mother of Shri Nitin Bhandari, Mg. Director) 3. Ms. Aditi Bhandari (Wife of Shri Nitin Bhandari, Mg. Director) 4.Ms. Nitika Bhandari (Sister of Shri Nitin Bhandari , Mg. Director) 5. Ms. Pushpinder Kaur ( Wife of Mr. _Gurinder Makkar, Company Secretary)
B. Enterprise owned or significantly influenced by key management personnel or their relatives:
1. Bhandari Knit Exports 2. Miracle Clothing Company 3.TBD Trading Company 4. Life Style Garments
5. Amaira Textiles Mills Plc Transactions with Related Parties:
Others- Subsidiary Company/ Holding Company/ joint Ventures- NIL/Not Applicable.
All the transactions with related parties have been made in ordinary course of business and at arm s length basis.
2.11 Leases
There are no such rental/ lease agreements entered into by the Company which require disclosure under AS-19.
2.12 Previous year’s figures have been recast/ regrouped wherever necessary to make them comparable with the current year’s figures.
2.13 Note 1 to 23 form an integral part of the financial statement.
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