1.1 The company has made provision in the accounts for gratuity based
on actuarial valuation. The particulars under the AS 15 (Revised)
furnished below are those which are relevant and available to the
company for this year.
2. In the opinion of the management and to the best of their knowledge
and belief, the value under the head of current and non-current assets
(other than fixed assets and non-current investments) are approximately
of the value stated, if realised in ordinary course of business, except
unless stated otherwise. The provision for all known liabilities is
adequate and not in excess of amount considered reasonably necessary.
3. SEGMENT REPORTING
The company's business activity falls within a single business segment
viz. 'Textile' and is managed organisationally as a single unit.
However, it has customers in India as well as outside India and thus
segment reporting based on the geographical location of its customers
is as follows :
* Segment Assets from outside India represents receivables from export
sales (net of advances in relation to exports). In view of the
interwoven / intermix business operations and manufacturing facility,
other information is not ascertainable.
4. RELATED PARTY DISCLOSURES
As per the Accounting Standard 18, disclosure of transactions with
related parties (as identified by the management), as defined in the
Accounting Standard are given below:
I. Names of Ralated Parties & Description of Relationship
(A) Subsidiaries of Company : Pradip Home Fashions, INC (USA)
(B) Key Managerial Personnel :
Shri Pradip J. Karia, Managing Director
Shri Chetan Karia, Whole Time Director
Shri Vishal R. Karia, Whole Time Director & CFO
Shri Amit H. Thakkar, President
Shri Anil Agarwal, Vice President (Production)
Shri A. N. Saboo, Vice President (HRD & Admin.)
Shri Anand Shiplkar, Vice President (Technical)
Shri Kaushik Kapadia, Company Secretary & Compliance Officer
(C) Enterprises over which (B) above have significant influence:
M/s Pradip Exports Pradip Intigrated Textile Park Pvt. Ltd.
Pradip Enterprises Limited Pradip Energy Limited
M/s Anu Impex
5. The company had made an application before the Hon'ble Settlement
Commission, Mumbai u/s 245C of the Income Tax Act, 1961, for A.Y.
2006-07 to 2012-13. During the year, the application was heard and
disposed off vide order u/s 245 D(4) dated 07.11.2014 in favour of the
Company. The effects of the order have been given in the current year'
financial statements.
6. Pradip Overseas Ltd. had formed a company, "Pradip Home Fashion
Inc." (USA), on 31-01-2011 by subscribing all 100 Equity Shares of US$
0.01 in the said Company and making it as a wholly owned Subsidiary
Company. The subsidiary company has not commenced any business
activities. As per clause 32 of the Listing Agreement, the company is
required to mandatorily publish Consolidated Financial Statements (CFS)
in its Annual Report in addition to the individual financial
statements. The Company will have to get its Consolidated Financial
Statements audited by the statutory auditors of the company and file
the same with the stock exchange. The Accounting Standard 21 related to
"Consolidated Financial Statement" states that it applies to material
items and if there are no material transactions, the accounts of the
subsidiary may not be consolidated. Accordingly, since no transaction
has been carried out by the subsidiary company, except issue of share
capital, the consolidated accounts have not been prepared.
Section 129(3) of the Companies Act, 2013 read with Companies
(Accounts) Rules, 2014 requires that a company having one or more
subsidiaries (including associate company) will, in addition to
separate financial statements, prepare CFS. But as per the fourth
proviso to Rule 6 of the Companies (Accounts) Rules, 2014 (as amended),
"nothing in Rule 6 shall apply in respect of consolidation of financial
statement by a company having subsidiary or subsidiaries incorporated
outside India only for the financial year commencing on or after 1st
April, 2014". Since the company has subsidiaries (including associate
company) incorporated outside India, it is also not required to prepare
CFS as per the Companies Act, 2013 read with the relevant Rules.
7. Previous year's figure have been regrouped / reclassified, wherever
necessary to confirm to this year's classification / disclosure.
Further the figures have been rounded off to the nearest rupee.
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