1. The Company has a pending litigation in the court of City Civil Judge at Bengaluru, in the form of compensation payable by the Company and S V Global Mills Ltd to the legal successors of a victim who died in an electricity accident outside the premises of the Company’s showroom at Bengaluru.
2. In the opinion of the Management, all current assets, debtors and loans and advances would, in the ordinary course of business, realize at the value stated.
3. Acknowledgement of Balances: The Company has obtained confirmation of balances from all the banks. In respect of Debtors and Creditors, the confirmations of balances were sought for by the company or by the concerned parties, as the case may be. The reconciliation of discrepancies in balances, wherever applicable, is in progress.
4. There are no Obsolete/Damaged stocks with the company for the year ended 31st March, 2016.
During the year, due to flood caused by heavy rains in the months of November 2015 and December 2015, the warehouses of the Company were flooded thereby causing damage to the textile material bales and packed materials that were kept ready for sale. The Company had made a claim amount of Rs. 24,94,344/- to the Insurance Company for the loss incurred and had received compensation amount of Rs. 24,25,000/- as against the claim made. The shortfall amount of Rs. 69,344/- between the amount of claim made and the amount of compensation received has been treated as loss on flood damaged goods.
During the year, the Company had sold the old and non-moving stock of textile materials that were received from the Kolkata and Bangalore showrooms of the Company worth Rs.7,36,663/- for an amount Rs.1,00,000/-. The difference amount of Rs.6,36,663/- between the cost of goods sold and the amount of consideration received, has been treated as Loss on sale of show room old stock.
5. Depreciation has been provided based on the useful life of asset as specified in Schedule II of the Companies Act, 2013.
6. Total outstanding dues of Creditors to Small Scale Industrial Undertakings - Rs. Nil (Rs. Nil as on 313-2015). Total outstanding dues of Creditors other than Small Scale Industrial Undertakings - Rs. 151.75 lakhs (Rs. 117.42 lakhs as on 31-3-2015).
7. All operating leases entered into by the company are cancellable on giving a notice of one to three months. The operating lease amount for the year is charged to revenue.
8. There are no Micro, Small and Medium Enterprises to whom the Company owes dues which are outstanding for more than 45 days at the Balance Sheet Date, computed on unit wise basis. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.
9. Employee Benefits:
10. The Company has determined the liability for employee benefits as at 31st March 2016 in accordance with Accounting Standard - 15 (revised) “Employee Benefits” issued by the ICAI and as provided in the Companies (Accounting Standard) Rules, 2006.
11. Defined Benefit Plan - as per Actuarial Valuation as on 31st March 2016 - Gratuity & Long Term Compensated Absence
All the transactions were made by the Company in the ordinary course of business and on arm’s length basis. Hence, these transactions will not attract the provisions of section 188(1) of the Companies Act, 2013.
No amounts have been written off, or provided for, or written back, during the year, in respect of debts due from, or to, the related parties.
12. The estimated amount of contracts, remaining to be executed on Capital account, as at 31st March 2016: Rs. Nil (Rs. Nil as at 31st March 2015).
13. Provision for Wealth tax is not made in the accounts as in the opinion of the management no Wealth tax is payable.
14. The Preference Dividend payable on the Cumulative Redeemable Preference Shares (CRPS) issued by the Company is as follows:
On the 5,88,000 (9.75% ) CRPS of Rs.5/- each aggregating to Rs.29,40,000/-, the preference dividend payable is Rs.27,94,838/- (Rs.25,08,188/- for 31-3-2015). The 9.75% CRPS issued on 2-6-2010 are due for redemption on or before 30th June 2016.
On the 28,14,18,142 (9%) CRPS of Rs.5/- each aggregating to Rs. 140,70,90,710/-, the preference dividend payable is Rs.115,10,97,874/- (Rs. 102,44,59,710/- for 31-3-2015). The 9% CRPS issued on 2-6-2010 are due for redemption on or before 12th May 2020.
The arrears of Preference Dividend are calculated from the date of original allotment of shares by Binny Ltd. Binny Ltd was demerged on 1st January 2010 (i.e., the Appointed date) vide the Order of the Madras High Court dated 22nd April 2010. The arrears of preference dividend are to be borne by the resulting companies, viz., Binny Mills Ltd and S V Global Mill Ltd, from the date of original allotment of shares by Binny Ltd.
15. The Company has pending litigations in case of ownership of its showrooms in Bangalore. At present provision for rent and damages payable are made as per the court order.
16. Figures for the previous year have been regrouped and reclassified, wherever necessary, to conform to the current year’s classification.
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