Considering the past experience, management is of the view that there will not be any material impact on accounts on settlement/finalization of tax assessment.
15 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 62.18 Lacs (Previous year Rs. 379.43 Lacs) {(net of advances of Rs. 13.31 Lacs)(Previous year Rs. 211.35 Lacs)}.
16 In view of the management, no provision is required in respect of receivable of Rs. 1089.44 lacs from a body corporate whose net worth has been fully eroded, in view of future prospects of revival and also as the company is in the process of rehabilitation. Under these circumstances, the due date of payment will be mutually decided.
17 The Company’s Hydro Power Project (3.5 MW) at Manuni, Dharamshala, Distt. Kangra Himachal Pardesh has been synchronized with H.P.S.E.B.L Grid on 31.03.2017 and supplied electricity
H.P.S.E.B.L till 31st January, 2018 and is being captively consumed thereafter. The company has filed a writ petition before the Hon’ble Himachal Pradesh High Court at Shimla challenging levy of certain charges and additional free supply of power under “supplementary implementation agreement”, On Company’s application, Hon’ble High Court has granted interim stay on 11th Sept’ 2013 and currently the matter is sub-judice. Pending litigation amount payable; if any, cannot be estimated at this stage. Management is confident that there will not be any material impact of above on final settlement/ decision.
18 The company has taken legal and other persuasive actions for recovery of certain overdue Trade Receivables amounting to Rs. 18.29 Lacs (previous year Rs. 18.29 Lacs). In the opinion of the management, these outstanding are good and fully recoverable, hence no provision there against is considered necessary.
19 Balances of loans and advances sundry creditors and other liabilities are in the process of confirmation / reconciliation.
20 In accordance with the Accounting Standards (IndAS-36) on “Impairment of Assets” during the year the company has assessed useful life of fixed assets in use and is of the view that no impairment is considered to be necessary in view of its expected realizable value/value in use.
22 The Company has not received full information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amount unpaid as at year end together with interest paid /payable have been given based on the information so far available with the company/ identified by the company management. As required by schedule
III of companies Act, of the above said Act the following information is disclosed:-
1. SEGMENT INFORMATION
(i) Business segments have been identified based on the nature and class of products and services, assessment of differential risks and returns. Accordingly, company is a single segment company operating in textile business (Yarn, Fabric and allied activities) and disclosure requirements as contained in Ind AS- 108 ‘Operating Segments’ are not required in the financial statements.
(ii) The segment revenue in geographical segments considered for disclosure is as follow:
(a) Revenue inside India includes sales to customers located within India.
(b) Revenue outside India includes sales to customers located outside India.
2. RELATED PARTY DISCLOSURE
Related parties and transactions with them as specified in the Ind-AS 24 on “Related Parties Disclosures” presribed under Companies (Accounting Standards) Rules, 2015 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.
c) Other related parties
(i) Key management personnel and their relatives Relationship
Shri Ashish Bagrodia Chairman cum Managing Director
Shri Anil Sharma Chief Executive OfficerA
Shri Sanjay Kedia Chief Financial OfficerA
Shri Videshwar Sharma Company SecretaryA
Shri Satish Bagrodia Advisor (Relative of CMD)
a Pursuant to the Companies Act, 2013
(ii) Enterprise where Key Management Personnel & their relative have significant influence
Star point Financial Services (P) Ltd. India
Winsome Yarns Limited India
Roselab Commodities Pvt. Ltd India
Kailashpati Vinimay Pvt. Ltd. India
3. Managerial remuneration paid/provided to Managing Director during the year ended 31st March, 2018 which has exceeded the limit prescribed under section 197 read with schedule V to the Companies Act, 2013, by Rs. 28.29 Lakhs. The Company is in the process of filing waiver application with the Central Government for the above excess remuneration and pending application and receipt of the approval, no adjustments to financial statements have been made to show this amount as recoverable.
4. The disclosures required under Ind-AS -19, Employee Benefits, notified in the Companies (Accounting Standard) Rules, 2015 are given below, based on the Actuarial Report certified by a Practicing Actuary.
Defined Benefit Plan
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
5. During the year, the company has migrated to a new accounting system and in view of the frequent changes in the new GST regime, certain balances are in the process of reconciliation. The net amount of such unreconciled balances amounting to Rs. 56.36 lacs has been shown under Advances Recoverable in kind under the head “Other Current Assets”.
6. As per the past practice, consumption of raw material and stores and spares is derived as net of opening stock plus purchases less closing stock.
7. CAPITAL MANAGEMENT
The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the company’s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year ended 31st March 2018.
There were no changes in the objectives, policies or processes for managing capital during the year ended 31st March 2018 and 31st March 2017.
8. Figures for the previous year have been re-group/rearranged where ever necessary to make them comparable with current year
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