| 1. Corporate information
Marvel Vinyls Limited (the Company] is a public limited company
domiciled in India and incorporated on May 30, 1985 under the
provisions of Indian Companies Act, 1956. The Company operates 3
manufacturing units in India, manufacturing of PVC Film and Sheeting.
PVC Floor Covering, PVC Coated/ Lamnated Fabric and Knitted Fabrics.
The Company caters to both domestic and international markets.
2. Basis of preparation
The financial statements are prepared on accrual basis under the
historical cost convention as supplemented by revaluation of certain
assets, in accordance with the generally accepted accounting principles
in India and to comply with the Accounting Standards referred to in sub
section (3C] of section 211 of the Companies Act,1956 including the
Rules framed there under,
3. Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
end assumptions that affect the reported balances of assets and
liabilites and the disclosure relating to contingent fiabilities as at
the date of financial statements and reported amount of income and
expenses during the period. Difference between the actual results and
estimates ere recognised in the year in which the results are known or
materialized.
4. Contingent liabilities not provided for in respect of :
i Bank Guarantees 23.82 83.00
ii. Disputed Excise Duty Matters 322.49 240.95
in Disputed Sates/Trade Tax Matters - 1-43
5. The Gross Sales and Cost of material as shown in the Statement of
Profit S Loss are net of intar- divisiansl transfers of Rs. B2D3.99
Lacs [Rs.7552.14 lacs in previous year] as per the Accounting Standard
9 issued by The Institute of Chartered Accountants of India. The Gross
sales indusive of inter -divisional transfers stands at Rs. 27340.78
lacs [previous year-Rs.25404,28 lacs].
6. Provision for Gratuity and Leeve Encashments are made by the
Company et the year end on the assumption that such benefit is payable
to at employees at the end of the accounting year. An incremental
provision of Rs, 15.56 lacs towards Gratuity and Rs. 7.03.toes towards
Leave Encashment has been charged to the Statement of Profit & Loss for
the year under consideration.
7. The company had revalued its Factory Land & Building and the Plant
S Machinery instatlod therein of its Sahibahad Unit as on 01.04.1993 as
per the revaluation done by the approved valuer . The revaluation of
assets hod resulted in increase in the value of assets by Rs.GBS 79
lacs and the same was transferred to Revaluation Reserve Consequent to
the said revaluation there is an additional charge of depreciation of
Rs.4.B4 Lacs [Previous Year Rs. 4.84 Lacs] and an equivalent amount,
has been withdrawn from Revaluation Reserve and credited to the
Statement of Profit and Loss . This has no impact on profit for the
year. The accumulated depreciation on revalued assets adjusted egoinst
the Revaluation Reserve upto 31st March 2014 is Rs.484.01 Lacs.
8. Un -Secured Loans are received by the Company from the Promoters,
their relatives and their associates due to a special condition
proposed by the Banker of the Company from whom finandes/ secured bans
have been availed for the purposes of its business. Accordingly such
unsecured loans are not covered under the purview of Companies
[Acceptance of Deposit] Rules,1975. Hence, the provisions of section
50-A is not applicable on such deposits.
9. Dmdend of Rs. 3B.D0 Lacs on 1B% Cumulative Redeemable Pref.Share
Capital has been proposed and provided for the current year. Arrears of
Preference Share dividend tiD 31st March.2014 is Rs.283.00 Lacs
[Previous year Rs. 289.00 Lacs] .
10. In compliance of Accounting Standard 18 on "Related Party
Disclosures" issued by the ICAI. details pertaining to related party
transactions are as follows :
A. Names of related
i. Key Management: Personnel
1. Mr. Pavan Chawla - Managing Director
2. Mr. Pankaj Chawla - Whole Time Director
3. Mr. Ankit Chawla
ii. Relatives of Key Management Personnel
1. Mrs. Puneeta Chawla & Mrs, Saroj Chawla
2. Mrs-Yamtni Chawla
3. Mr. Saksham Chawla
iii. Associate Concerns
1. M/s Ganesh Das & Co.
2. M/s Ganesh Das & Sons [HUF]
3. M/s Soave Enterprises [P] Ltd,
4. Mr. Pavan Chawla [HUF]
5. Mr. Panka) Chawla (HUF]
11. The Company have various cancellable operating leases for Offices &
Godowns that are renewable on annual basis and cancellable at its
option. Rental expenses for operating leases recognised in Profit &
Loss Account and amount within the purview of AS-19 on Leases is
Rs.13.32 lacs.
12. Expenditure on account of Premium on forward exchange contracts to
be recognised in the Profit and Loss account of subsequent accounting
penod aggregates Rs. Nit,[ Previous year Rs. Nil].
13. Expenditure due to Loss in exchange fiuctation of foreign currency
of Rs.54.9S Lacs for the year includes notional loss of Rs.31.68 lacs
on conversion of foreign currency [as per FBI rate] on reporting date
as per AS-11 issued by ICAI on the effect of changes in foreign
exchange rates.
14. Letters of confirmation of outstanding balances are awaited in
certain cases. Rjrther. the Company has not received any intimation
from any of its transacting party that they are registered under the
Micro.SmaJI & Medium Enterprises Development Act,2006. So the
information required to be furnished under the MSMED Act is not
applicable.
15. The Purchase of Raw Materia! shown in the Balance Sheet is net of
sales of old empty drums and paper bags.
16. Previous year's figures have been rearranged/regrouped wherever
necessary to make them comparable with current figures.
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