Notes to Financial Statement
(All amounts in Indian rupees unless otherwise stated)
Corporate Information:
Jakharia Fabrics Private Limited is a process house of yarn and fabric. The Company is in the line of activity of fabric / garment manufacture, processing yam and fabric and also trader in textile items. The Company was established on 22 June, 2007 and has its processing units at Saravali MIDC Bhiwandi Dist Thane & Tarapur MIDC, Dist. Palghar. The said units are working with 100% utilization capacity.
Event Occurring After Balance Sheet Date:
On April 27, 2018 the company has received certificate of incorporation consequent upon conversion to public limited company. Further on June 01, 2018 the company has also received in principle approval for Initial public issue of 10,92,000 as NSE emerge from National Stock Exchange of India limited.
1. Basis of Preparation:
The Financial Statements of the company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.
The accounting policies adopted in the preparation of financial statements are consistent With those of previous year, except for the change in accounting policy explained below
1.1 Summary of significant accounting policies:
a. Use of Estimates:
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
b. Property, Plant and Equipment:
Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.
Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life.
Gains or losses arising from derecognition of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized,
c. Depreciation & Amortisation;
Depreciation on Property, Plant and Equipment is calculated on a Written Down Value basis using the rates arrived at based on the useful lives estimated by the management. The identified components are depreciated separately over their useful lives; the remaining assets are depreciated over the life of the principal asset.
The Company has assessed the following useful life to depreciate and amortize on its property, plant and equipment and intangible assets respectively.
Particulars
|
Useful Lives of the Assets estimated by the management (years)
|
Factory Building
|
30
|
Building
|
60
|
Plant & Machinery
|
25
|
Electrical & Fitting
|
10
|
Furniture & Fixtures
|
10
|
Vehicles
|
8
|
Computers
|
3
|
Air Conditioner
|
5
|
Laboratory
|
10
|
Office Equipment
|
5
|
d. Classification of Current/Non -Current Assets and Liabilities:
AH assets & liabilities are presented as Current or Non-Current as per the Company's normal operating cycle and other criteria set out in Schedule III of Companies Act, 2013. Based on nature of business, the company has ascertained its operating cycle as 12 months for the purpose of Current/Non-Current classification of assets and liabilities.
e. Borrowing Cost:
All borrowing costs are expensed in the period they are incurred. Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowing, Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset.
f. Investments:
Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long-term investments and are carried at cost. However, provision for diminution in value of investments is made to recognise a decline, other than temporary, in the value of the investments.
Investments other than long-term investments being current investments are valued at cost or fair value whichever is lower, determined on an individual basis.
On disposal of an investment, the difference between the carrying amount and the net disposal proceeds is recognised in the Statement of Profit and Loss.
Investments which are readily realisable and intended to be held for not more than one year from Balance Sheet date, are classified as current investments. All other investments are classified as non-current investments. However, that part of long term investments which are expected to be realised within twelve months from the Balance sheet date is presented under "Current Investments" in consonance with the current / non-current classification under Schedule III of the Companies Act, 2013.
g. Investments in Associates:
The Company is one of the partners having capital contribution ratio and profit sharing ratio to tune of about 88% in 'M/s. Jakharia Industries' a partnership firm wherein there are 5 other individual partners. According to the partnership deed (as amended from time to time), key business decisions need unanimous approval of all the partners of the firm, irrespective of their profit sharing ratio and/or capital contribution ratio. In view of the same, the company does not have exclusive power to control the activities of the firm and in turn, influence the returns earned from its investment in the firm. Thus, the investment in firm is categorized as investment in Associate.
Further, the firm is still in its pre- operation phase and operations have not started till the date of financial statements. Consequently, amount of post-acquisition profits is nil.
h. Revenue recognition:
Revenue from services rendered is recognized on the basis of completion of job on dispatch thereof to customers or on sale of products. Revenue is recognized on sale of products when no significant uncertainty as to its determination or realization exists.
i. Inventories:
Inventories are carried at lower of cost and net realizable value. Cost is ascertained on first-in-first out basis. The cost includes all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling prices in the ordinary course of business less estimated cost necessary to make the sale.
j. Foreign currency translation: i. Initial recognition:
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the standard exchange rate determined at the transaction date. ii. Conversion:
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
iii. Exchange differences:
The Company accounts for exchange differences arising on translation/ settlement of foreign currency monetary items as below:
1) Exchange differences arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset.
2) All other exchange differences are recognised as income or as expenses in the period in which they arise.
k. Employee benefits:
Defined contribution plans and short term employee benefits such as salary, bonus, provident fund etc. are charged to Profit & Loss account as incurred. The present value of the obligations under defined benefits plan is determined based on an actuarial valuation using the Projected Unit Credit Method. Actuarial gain and losses arising on such valuation are recognised immediately in the Profit & Loss account.
L Taxes on Income:
Current Tax: Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.
Deferred Tax: Deferred tax is measured on based on the tax rate and tax laws enacted or substantially enacted at the balance date. Deferred tax assets are recognized only if there is reasonable/virtual certainty that they will be realized.
m. Impairment of Assets:
At each Balance Sheet date, an assessment is made of whether there is any indication of impairment. Impairment loss is recognized whenever the carrying amount of assets exceeds its recoverable amount.
n, Provision & Contingencies:
A provision is recognized when the Company has a present obligation as a result of past event, 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. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
o. Earning Per Share:
a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as conversion of preference shares in to equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
p. Cash and cash equivalents:
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
Notes to Financial Statement for the year ended March 31, 2018 (All amounts in Indian rupees unless otherwise stated)
2) Snare Capital
|
March 31,2018 Rs.
|
march 31,2017 Rs.
|
AUTHORIZED SHARES
50,00,000/-Equity shares of Rs. 1O/- each
|
50,000,000
|
30,000,000
|
5,00,000/- 9% Convertible Preference shares of Rs.10/- each
|
-
|
5.000,000
|
Total
|
50,000,000
|
35.flflfl.000
|
ISSUED . SUBSCRIBED & FULLY PAID-UP SHARES
29.71,8307- (P.Y. 27,38,500/-)Equity shares of Rs.10/- each
|
29.71S.300
|
27,385,000
|
(P.Y,2,33,330/-) 9% Convertible Preference shares of Rs. 10/- each
|
-
|
2,333,300
|
Total issued, subscribed and fully paid-up share capital
|
29,718,3OO
|
29,718300
|
a) Reconciliation of the share) outstanding at the beginning and at the end of the reporting periud
|
March 31, 2018 Rs.
|
March 31, 2017 Rs.
|
Equity Shares At the beginning of the period
|
2,738,500
|
27,385,000
|
2.738,500
|
27,385.000
|
Add: Issued during the year
|
233,330
|
2,333,300
|
-
|
-
|
Outstanding at the end of the period
|
2,971,830
|
29,718,300
|
2,738,500
|
27385,000
|
Preference Shares 9% Convertible Preference shares of Rs. 10/- each
|
|
|
|
|
At the beginning of the period
|
233,330
|
2.333.300
|
233,330
|
2,333,300
|
Less : Converted to equity shares during the year
|
233.330
|
2,333,300
|
-
|
|
Outstanding at the end of the period
|
-
|
-
|
133.330
|
2,333,300
|
b) Rights, Preferences and Restrictions attached to Shire: Equity Shares
The company tins one class of equity shares having par value of Rs. IOA per share. Each shareholder is eligible for one vote per share. In the event of liquidation of the company, the holders of equity shares wilt be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Preff rtnrc Shares
9% Convertible non cummulative preference shares of Rs. 10 each were issued in FY 2011-2012 at a premium of Rs. 140 per shares. As per the terms of the issue one equity share issued against one preference share held to the preference shareholders. Each share is converted into one equity share of par value of Rs. 10 on 8th March, 2018.
c) Details of shareholding more than 5% equity shares in the Compai Equity Shares
Name of the shareholder
|
March 31, 2018 Rs.
|
March 31, 2017 Rs.
|
Mr. Himmatlal Shah
|
474,500 15.97
|
474.500 1 7.33
|
Mr. Jignesh Shah
|
137,000 4.61
|
137,000 5.00
|
Mr. Nitin Shah
|
467,000 15.71
|
467,000 17.05
|
Mr. DixitShah
|
347,000 11.68
|
347,000 12.67
|
Mr. Manekchand Shah
|
317,000 10.67
|
317.000 11.58
|
Mrs. Champaben Shah
|
225,000 7.57
|
223,000 8.22
|
M/s Jakharia Synthetics Private Limited
|
615,000 20,69
|
655,000 22.46
|
Preference Shares
Name of the shareholder
|
March 31, 2018 Rs.
|
March 31, 2017 Rs.
|
P. Saji Textiles Limited
|
-
|
66,666 28.S7
|
Victory Sales Private Limited
|
-
|
26,666 11.43
|
Shyam Alcohol & Chemicals Limited
|
-
|
36,666 15,7!
|
Shipra Fabrics Private Limited
|
.
|
30,000 21.43
|
Dolex Commercial Private Limited
|
.
|
13,333 5.71
|
Acute Consultancy Limited
|
-
|
13.333 5,71
|
B K Dyeing &. Printing Mills Private Limited
|
|
13,333 5.7I
|
Lunkad Textiles Private Limited
|
-
|
13,333 5.71
|
3) Reserves & Surplus
|
March 31. 2018
|
March 31, 2017 ks
|
Securities Premium :
|
|
|
Opening Balance
|
3:43-66,700
|
3,43.66,700
|
Less : Transfer to Capital Redemption Reserve
|
(2.).33,300
|
.
|
Closing Balance
|
3.20.33,400
|
3.43.66,700
|
Capital Redemption reserves'
|
|
|
Opening Balance
|
-
|
-
|
Add . Transfer from Security Premium Account
|
23.33.300
|
.
|
Closing Balance Surplus/ (deficit) In the statement of profll and loss
|
23.33.300
|
-
|
Balance as per last Financial Statement
|
13,86,58.446
|
10,33,91.924
|
Profit for the year
|
1,33,96,294
|
3,52,66,522
|
net-[ surplus in the statement of profit and lost
|
15,20.54,740
|
13,86,58,446
|
Total Reserves and Surplus
|
18,64,21.440
|
17,30,25,146
|
4) Long Term Borrowings
March 31. 2018 & March 31,. 2017.
|
Secured Term loans from bank
|
9,18,52,519
|
8,41.95:653
|
Loan (From Bank for Vehicles
|
10,11,417
|
|
Liis . Current cnalurilitfa of long term debt (Amount disclosed under the head 'other currenl liabilities' refer Ticte no 9)
|
(1,23.70.444)
|
(1,09,04,390
|
|
8,04,93,492
|
7,32,91,263
|
1. Term Loans Taken From Kotak Mahindra Bank:-
Term Loan - II For acquiring plant and machinery payable m not exeding-60 equated monthly Installment carring interest rate MCLR 1.30%
Term Loan-Hi For acquiifing plant and machinery payable in 84 equated monthly installment, carrying inlerest-rate MCLR I. 30%.-
The above loan are secured againsi
1. First and exclusive charge on all existingi and future current asset*, including movcablc fixed assets of the company
2. Equitable mortgage of factory and &. buildinglocated at plot no. A/11. Ml DC Tiripur Industrial Area, Village Pamieinbhi, Taluka Palghar, dist Thane (factory of JFPL} owned by M's Jikharia Fabrics PM Ltd
3. Eiqutiabic. Mortgage of factory band & building .-situated at survey no 1/1 & 25/5 devji Nagar survey'nii. Ir'I & 25:'5. Devji Sagar, Near Shanti 'nagar complex Village Narpoli. Bhiwandi, DLsi Thane-421302 (factory of JSPL1 owned by Mr. Himmatlal Shah and Mr. Jigsicsh Shah
4. Equitable mortage of Flat No. 504. 5th Floor, Tower No I, Gemini building:. Runwal Aulburiuiv.. l.HS Rnitd. Mu!und (W) Mumbni 4UGOM owned by Mr. Dixii Shah and Mr. Manekchand Shah
5. equitable mortagege of no. 1201, 12th floor B Wing,E Apartment nahar sarvoday Heights CSHL, Saryodaya Parihwanslh Kagar, Mulund W, Mumbai 400080 owned hy Jignush H Shah. Himailul Shah & Sejal Shah
6. Equitable iiiort&agje of Flat No. 605. 6th>"ioor, building No 2. Man Mandir SurahshaCHS, Muiuiid W, Mumbai 40flO«0 owned by Sejal N'ilin Shah
7. Equiablenortgitgeof J-JVl I, MJOC, Tanapur Indl Area. Village'Sarevah, Taluka Palghar. Dist Thane owned by Jakharia Industries.
5. Personal £uarani«or following direciors :
a. Mi. Hinnnattal P. Shah
b. Mr. Jigntih II Shah c Mr NilinKShah
d. Mr. Ma-ickdiartd P Shah
c Mr. Dixil M Shah
|