| Note 1.
The Company has made provision of unrecoverable capital advances
amounting to Rs.94,32,23,851/-given to various equipment suppliers and
other parties mainly towards implementing Weaving Project. The amount
represents balances outstanding for more than five years in respect of
projects of the Company which have not taken off and have been dropped
in view of the losses incurred by the Company. The equipment suppliers
have forfeited the advances and the Company is pursuing with them for
the recovery of the same. Pending such recovery, the Company has made a
provision for the same in the books of accounts.
Note 2.
Dues from Subsidairy represents the loan given by the Company to it's
wholly owned subsidiary Birla Cotsyn (India) Ltd FZE. in Dubai. The
increase in Loan Account is on account of Foreign Exchange Fluctuation
resulting from restatement of loan account at exchange rate prevailing
as at 31st March, 2015. The same has been considered as good for
recovery in view of the management.
Note 3.
The Company had given loan to one related party which has negative
net-worth as on balance sheet date and the same has been considered as
good for recovery in view of the management.
Note No.4.
The Government of India has approved import of Capital Equipment under
the "Exports Promotion Capital Goods Scheme" at a concessional rate of
custom duty. Under the Scheme the Company purchased Capital Goods at
nominal duty for which the Company has an export obligation aggregating
to Rs.130,96.40 lakh, to be fulfilled within eight years from the date
of issuance of respective licenses, failing which the duty saved
aggregating Rs.1637.05 Lakh, together with interest and penalties, if
levied, may have to be paid. As at the year end the Company has
fulfilled Export Obligation aggregating Rs.102,37.66 Lakh.
Note No.5.
EMPLOYEE BENEFITS DISCLOSURE AS PER AS-15 (REVISED) ISSUED UNDER
ACCOUNTING STANDARD RULES 2006 (AS AMENDED).
a. Defined Contribution Plans:
During the period ended 31st March, 2015 the Company has recognised the
contribution to Employees Provident Fund and Pension Fund aggregating
Rs.39,55,708/- (Previous year Rs. 42,06,379/-) in the Profit & Loss
Account.
b. Defined Benefit Plans:
I. Contribution to Gratuity.
Provision for Gratuity has been made on the basis of actuarial
valuation as at the period ended 31st March, 2015 The Company has
funding arrangement with LIC for Khamgaon, Dhule and Ghatanji units.
For Head office, Synthetic and Malkapur units there are no such
arrangement. The liability towards the employees is discharged in the
year of retirement / cessation of employment. Details under the AS -15,
are furnished below:
The Company has made provision of unrecoverable capital advances
amounting to Rs.94,32,23,851/-given to various equipment suppliers and
other parties mainly towards implementing Weaving Project. The amount
represents balances outstanding for more than five years in respect of
projects of the Company which have not taken off and have been dropped
in view of the losses incurred by the Company. The equipment suppliers
have forfeited the advances and the Company is pursuing with them for
the recovery of the same. Pending such recovery, the Company has made a
provision for the same in the books of accounts. Pre-operative
expenses incurred for the project which were shown as Capital Work In
Progress of Rs.4,62,00,730/- has been written-off as there are no
assets against such expenses.
Note No.6.
Comparative figures for the previous year have been regrouped and / or
rearranged wherever necessary.
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