1. Contingent Liability not Provided for:
as] Outstanding Bills Purchased/Discounted for Rs.58,943 [Previous Year
Rs. 30,460s].
2. Impairment in the carrying value of fixed assets as at the
balance sheet date has not been ascertained, pending detailed review
and technical evaluation in this respect. The Comp. intends to get
the said review carried by independent valuer/consultant & adjustment
if any will then be made in the accounts.
3. Sundry Debtors over six months include Rs. 10,021 [Net of ECGC
Claim Rs. 4,792s] [Previous Year Rs. 10,021s] outstanding from certain
overseas buyers for a considerable period. Such balances have not been
realigned at the year end rate. In the opinion of management, these
will be recovered in due course & as such no provision is considered
necessary in this respect.
4. Balance of Debtors, Creditors, certain Bank balances, Loans and
Advances etc. are subject to confirmation & reconciliation with
respective parties.
5. Loans / Inter corporate deposits include Rs. 9,046 [including
interest of Rs. 365s] [Previous year Rs. 9,235s] given to companies,
which is overdue. In one of case the Comp. has field suit for
recovery of loan together with interest on this loan. As a matter
of abundant precaution, interest on the said loan amounting to Rs.
3,600 [including Rs. 450 for years] has not been accounted for.
Pending outcome of the* legal suit, in the opinion of management, no
provision for outstanding amount is considered necessary, as the same
in considered good & recoverable.
6. The Comp. is in the process of compiling information With regard
to suppliers covered under Micro, Small & Medium Enterprise
Development Act, 2006. To the extent identified, the Comp. has no
information from the suppliers under the Act & according the
disclosure as required in Sec. 22 of said Act couldn't be given in
these accounts.
7. In view of mandatory applicability of Accounting Standard 15
[Reviseds] 'Employee Benefits' [AS 15s] to the Company, the additional
charge of Rs. 32 in respect of period upto 31st March 2007, has been
changed of during the year.
8. Difference in Foreign Exchange includes Rs. 145 being Profit
[Previous Year Rs. 956 Losss] on Acc. of cancellation of forward
exchange Contract.
9. Certain Fixed assets amounting to Rs. 329 [Previous year Rs. 329s]
have been discarded on retiring from their active use & shown under
the head inventories. In the absence of determination of their
realisable value, these have been recorded at book value. In the
opinion of management the realisable value won't be lower than
the book value. Necessary adjustments, if any will be carried on
disposal of same.
10. Related party disclosure as identified by Management in
accordance with the Accounting Standard [AS-18s] is as follows :
As] List of related parties ;
I. Parties where control exists - NIL.
II. Other parties with whom the Comp. has entered into transactions
during the year.
as] Key Management Personnel & their relatives.
Sri M.L.Patodia-Chairman & Managing Director
Sri R. K. Patodia - Managing Director
bs] Group/Associates Companies.
is] Enterprise having common Director / Management personnel Madanlal
Brijlal [Ps] Ltd.
cs] Firm in which Directors have substantial interest
M/s. B.L.Singhal and Co.
M/s. B. M. Bagaria and Co.
11. Segment Reporting
The Companys business segment comprises of Yarn Trading & Home
Textile Unit. These have been identified by type of their
respective sales & services rendered.
Segment Information :
1. Segments have been identified in line with the Accounting Standards
AS-17 taking into Acc. the organization structure as well as the
differencing risk & return.
2. The Comp. has disclosed 'Business Segment as the primary segment,
these have been identified on the, basis of products/revenue of the
company. Accordingly, the Comp. has identified Trading of Yarn' and
'Home-Textile' as the-operating segments.
Revenue & expenses have been identified to segment on the basis of
their relationship to the operating activities of segment. Revenue
and expenses which relates to enterprise as a whole & not allocable
to segment on a reasonable basis have been included under the head
other common expenses.
3. The geographical segments of Comp. mainly comprise of exports
to various countries.
12. Figures are given in thousand & accordingly rounded to nearest
thousand
13. The Home Textile unit was fully setup & commercial production
commenced from 1st September 2006 & operations were discontinued
during the year from 1st January 2008. Therefore the previous year
figures are not comparable with those of current year.
