1. Details of Security.
External Commercial Borrowings:
The secured loan mentioned above is secured by first pari passu charge by way of mortgage of land, buildings and tenements and immovable Plant & Machinery, both present and future at the Company's works at Nashik, and first pari passu charge by way of hypothecation of the whole of the inventories and other movable assets of the Company including its movable Plant & Machinery, spares, tools and accessories both present and future.
OTHER NOTES
2) During the financial year 2015-16, the Company has implemented various measures to improve the operational and financial performance which have resulted in significant improvement in our product quality and reduced levels of variable as well fixed overheads. Despite overall economy slow down and weakness in the crude oil market, there has been a noticeable improvement in our sales in the branded segment. Our products are now well accepted by a wide range of international brands, which is evident from improved sales in branded segments, and regular additions of new customers/brands to our customer profile. During the second half of the financial year we shifted our focus towards making more of finer denier products which have the potential of realizing higher sales value and margins. With this we expect further improvement in our operations going forward.
The existing Promoters and Lenders of the Company have always been extremely supportive of the Company’s project and with this the Company is quite hopeful of achieving its strategic objective of becoming a leading supplier of 100% recycled content product and being recognized as a preferred supplier.
The parent company (viz. PerPETual Global Technologies Limited (‘PGTL’), in its efforts to support the company, have agreed during quarter ending 31st March, 2016, to not to charge any interest up to 30th June, 2016 on the External Commercial Borrowings that it has made available to the Company. Pursuant to this decision, the total interest of USD 1.26 Million (equivalent toRs, 836.58 Lacs) accrued up to 31st December, 2015, on this facility has been written back in the books of accounts. Out of this, interest amount to USD 0.57 Million (equivalent toRs, 356.22 Lacs) provided up to previous year ended 31st March 2015 has been considered as an exceptional item in the income statement. Balance interest amounting to USD 0.69 Million (equivalent toRs, 480.36 Lacs) provided for the nine months ended 31st December 2015 has been netted off against the interest expense during the year. In addition to this, the Company has also received letter of support from PGTL for financial, technical and administrative support for the forthcoming 12 months.
Based on the above the management has performed impairment test and is of the view that there is no impairment in the value of fixed assets.
Considering what is stated above, the accounts are prepared based on Principle of Going Concern.
3) Exceptional item during the year is reversal of Interest on ECB Loan received from PGTL for the amount ofRs, 83.7 million up to 31st December 2015 (During previous yearRs, 24.0 Million treated as exceptional item for the provision for loss in respect of assets held for disposal), as per amendment agreement signed between both the parties and Interest till the date of 30th June, 2016 waived off by the PGTL.
b) Commitments:
Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of Advances) is Rs, 38.5 million (previous yearRs,106.8 million).
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 Interest on contingent liabilities mentioned above is not disclosed as the Management is of the view that the likelihood of outflow of resources is remote. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements
The above information has been compiled in respect of parties to the extent to which it could be identified as Micro, Small, and Medium Enterprises. The disclosure is based on the information made available to the Company regarding the status of suppliers in relation to the “Micro, Small, and Medium Enterprise Development Act, 2006”.
4) Related Party Transactions as per Accounting Standard -18:
Related parties where control exists.
- PerPETual Global Technologies Ltd. (Promoter, Holding Company)
Key Management Personnel
- Mr. Marc Lopresto - Director
- Mr. M. N. Sudhindra Rao - Chief Executive Officer (w.e.f. 17th July, 2014)
- Mr. Paresh Damania - Company Secretary
- Mr. Rakesh Tanna - Chief Financial Officer (w.e.f. 28th May, 2015)
- Mr. Amarjit Singh Bhatia - CFO (from 23rd April,2014 to 21st February,2015)
Notes:
5. Previous year’s figures are given in brackets.
6. During the year, the Company has written back interest aggregating to USD 1.3 million (equivalent toRs,83.7 million) on ECB loan from PGTL. Except for this, there are no other write offs/written backs or provisions for doubtful debts/ receivables during the year.
7. Related party relationships are as identified by the management and relied upon by the auditors.
8) (a) In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.
(b) The accounts of certain Trade Payables, Trade Receivables and Advances are subject to formal confirmations / reconciliations and adjustments, if any. The management does not expect any material difference affecting the current year’s financial statements.
9) Employee Benefit Plans:
The disclosures in accordance with the requirements of the Accounting Standards are provided below:-
10. Defined Contribution Plan:
The Company has recognisedRs,5.1 million (Previous yearRs,5.6 million) as an expense towards its postemployment defined contribution plan comprising of a provident fund, deposited with government authorities.
11. Defined Benefit Plan:
In accordance with Payment of Gratuity Act, 1972, the Company is required to provide post-employment benefits to its employee in the form of gratuities. The Company is contributing to the trust, administered by the Trustees and managed by ICICI Prudential, an amount actuarially valued at the year-end. In accordance with Accounting Standards, the disclosure relating to the Company’s gratuity plan is given below.
Note:
The liability recognized with respect to compensated absences in the balance sheet as on 31st March 2016 is '5.3 million (previous yearRs,3.9 million).
12) a) The previous year’s figures have been re-grouped and/or re-arranged wherever necessary to conform to the current year’s presentation.
b) Figures in 0.0 represents amount less thanRs,50,000
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