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Dollar Industries Ltd. के अकाउंट के लिये नोट
Mar 31, 2025
22 Provisions
Accounting Policy
Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows (representing
the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the
discount is recognized as finance cost.
Onerous Contracts
Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is
considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic
benefits expected to be received from it.
23 Trade payables
Accounting Policy
Trade payables represent liabilities for goods and services provided to the Company and are unpaid at the reporting period.
The amounts are unsecured and usually paid within time limits as contracted. Trade and other payables are presented as
current liabilities unless the payment is not due within 12 months after the reporting period. They are recognised initially at
their transactional value which represents the fair value and subsequently measured at amortised cost using the effective
interest method wherever applicable.
26 Revenue from operations
Accounting Policy
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue
can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties
collected on behalf of the Government.
a) Sale of Goods
Sale of goods is recognised at the point in time when control of the goods is transferred to the customer. Revenue towards
satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated
to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on
account of various discounts and schemes offered by the company as part of the contract. As the period between the date on
which the company transfers the promised goods to the customer and the date on which the customer pays for these goods
is generally one year or less, no financing components are taken into account.
Certain contracts provide a customer with a right to return the goods within a specified period. The company uses the
expected value method to estimate the goods that will not be returned because this method best predicts the amount of
variable consideration to which the company will be entitled. The requirements in Ind AS 115 on constraining estimates of
variable consideration are also applied in order to determine the amount of variable consideration that can be included in the
transaction price for goods that are expected to be returned instead of revenue the company recognises a refund liability. A
right of return asset and corresponding adjustment to change in inventory is also recognised for the right to recover products
from a customer.
b) Sale of Services
In contracts involving the rendering of services, revenue is measured using the completed service method.
c) Other Operating Revenue
Export incentive and subsidies are recognized when there is reasonable assurance that the company will comply with the
conditions and the incentive will be received. Insurance & other claims, where quantum of accruals cannot be ascertained with
reasonable certainty are recognized as income only when revenue is virtually certain which generally coincides with receipt/
acceptance.
d) Government Grants
Government grants are recognized at their fair values when there is reasonable assurance that the grants will be received
and the Company will comply with all the attached conditions. When the grant relates to an expense item, it is recognized as
income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
Grants related to purchase of property, plant and equipment are included in non-financial liabilities as deferred income and
are credited to the Statement Profit and Loss on a straight line basis over the expected useful life of the related asset and
presented within other operating revenue.
30 Employee benefits expense
Accounting Policy
Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services
are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within
twelve months after the end of the period in which the employees render the related service are recognized in respect of
employees'' services up to the end of the reporting period.
Post-Employment Benefits
The company operates the following post-employment schemes:
a) Defined Benefit Plans
The liability or asset recognized in the balance Sheet in respect of defined benefit plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets. The company net obligation in respect
of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have
earned in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries using the projected
unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less
the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The
net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period
that have terms approximating to the terms of related obligation.
Remeasurement of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement
recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the
statement of Profit and Loss.
31 Finance costs
Accounting Policy
Finance costs includes costs in relation to pensions and similar obligations, interest on lease liabilities which represents
unwinding of the discount rate applied to lease liabilities and also include interest costs in relation to financial liabilities.
Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing
costs also include exchange difference to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the
cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use
or sale. The company considers a period of twelve months or more as a substantial period of time.
Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest
Rate (EIR) method. All other borrowing costs are recognized in the statement of Profit and Loss in the period in which they
are incurred.
b) Defined Benefit Plan
The following are the types of Defined Benefit Plans:
(i) Gratuity Plan
Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the
provisions of The Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured
using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.â
(ii) Provident Fund
Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous
Provisions Act, 1952.
c) Risk Exposure
Defined Benefit Plans
Defined benefit plans expose the Company to actuarial risks such as: Interest rate risk, Salary risk and Demographic risk.
a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond
yield falls, the defined benefit obligation will tend to increase.
b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.
c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality
withdrawal disability and retirement. The effect of these decrements on the defined benefits obligations is not straight
forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to
overstate withdrawals because in the financial analysis the retirement benefit of the short career employee typically costs
less per year as compared to a long service employee.
37.2 Excess Spent has not been carried forward.
38 Contingent liabilities
Accounting Policy
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present
obligation that arises from past events but is not recognized because it is not possible that an outflow of resources embodying
economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made.
The company discloses the existence of contingent liabilities in other Notes to Financial Statements. Contingent assets are
neither recognised nor disclosed in the financial statements.
*Amount of H Nil (March 31, 2024: H 7.17 lacs) pertaining to Income tax and H 17.22 lacs (March 31, 2024: 9.77 Lacs)
pertaining to GST paid under protest.
#A refund claim of H 11,20,21,074 was filed by the Company on March 28, 2024 under the Inverted Duty Structure category.
The refund was sanctioned and processed by the GST Department and received by the Company. Subsequently, on November
22, 2024, the GST Department filed and appeal against the refund sanctioned and processed, disputing the amount.
The Matter is currenly under litigation and pending adjudication. However, the Company does not consider the said amount as
a contingent liability, since the refund was duly santioned and processed by the GST Department after due verification. The
company is of the view that there is no lapse on its part warranting reversal of the refund, and hence, no financial obligation
is expected to arise.
42 Fair value of financial assets and financial liabilities
42.1 The Company has measured its financial asset and financial liabilities at amortised cost.
42.2 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, lease
liabilities, short term borrowings and other current financial liabilities approximates their carrying amounts largely due to the
short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments
approximates their carrying value.
42.3 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are
classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit
risks, which was assessed as on the balance sheet date to be insignificant.
43 Fair value hierarchy
The fair value of financial instruments are classified into three categories depending on the inputs used in the valuation
technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and lowest priority to unobservable inputs (Level 3 measurements). The categories used are as follows:
¦ Level 1: Quoted prices for identical instruments in an active market;
¦ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
¦ Level 3: Inputs which are not based on observable market data.
a) The following are the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113
âFair Value Measurementâ.
b) There are no transfers between levels during the year.
44 Financial risk management objectives and policies
The Company''s activities expose it to the following risks:
a) Credit risk
b) Liquidity risk
c) Market risk
44.1 Credit risk
Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities including deposits with banks and financial institutions, investments, foreign exchange transactions and
other financial instruments.
Trade and other receivables
Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating
to customer credit risk management. Concentration of credit risk with respect to trade and other receivables are limited,
due to the Company''s customer / other party base being large and diverse. All trade and other receivables are reviewed
and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low.
Outstanding customer receivables / other party are regularly monitored and major customers / other party are generally
secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit
risk at the reporting date is the carrying value of trade receivable as disclosed in Note 16.
44.2Liquidity risk
It is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as
possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it
has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a
44.3 Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three type of risks:
Commodity price risk, Foreign exchange risk, and Interest rate risk.
1) Commodity price risk
The Company primarily imports cotton and rubber. It is exposed to commodity price risk arising out of movement in prices of
such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts,
where considered necessary.
2) Foreign currency risk
The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) in foreign currency for its
business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate
risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated
in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective
hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.
The Company''s exposure to foreign currency risk at the end of the reporting period are as follows:
Note : Explanation for change in ratio by more than 25%
(i) Debt service coverage ratio is decreased on account of increase in interest payout and term loan.
(ii) Profit after tax Finance cost Depreciation and Amortisation expenses - Net gain on sale of PPE.
(iii) Purchase of raw material, Changes in inventories of finished goods and work-in-progress and Other Expenses
(Manufacturing Expenses).
(iv) During the current and previous year, the Company has not earned income on the investments. Accordingly, ratio for
Return on Investments has not been presented.
46 During the earlier years, the Central Government has published âThe Code on Social Security, 2020â and âIndustrial Relations
Code, 2020â (âthe Codesâ) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which
deals with employees related benefits including post employment. The effective date of the codes thereunder and the rules
are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification of the
relevant provisions.
47 Other Statutory Information
No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III
(i) Crypto Currency or Virtual Currency.
(ii) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(iii) Registration of charges or satisfaction with Registrar of Companies.
(iv) Any transactions with companies struck off.
(v) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.
(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the funding party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
48 Capital management
The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable
returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is
reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic
investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both
short term and long term.Net Debt(total borrowing less cash and cash equivalents) to equity ratio is used to monitor capital.
49 Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management, the
value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the value at
which these are stated in the Balance Sheet.
50 Segment Reporting
There is only one primary business segment i.e. âGarments & Hosiery goods and related servicesâ and hence no separate
segment information is disclosed in this financials.
Secondary information is reported geographically.
Geographical segments
The Company primarily operates in India and therefore analysis of geographical segment is demonstrated into Indian and
overseas operation as under:
(i) Details of investments made by the Company in equity shares of subsidiary and its joint venture is disclosed in Note 9.
(ii) The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those
that prevail in arm''s length transactions. The Loans and Advances issued to Related Parties are on terms equivalent
to those that prevail in arm''s length transactions. Outstanding Balances at the year end are unsecured and settlement
occurs in cash for the year ended March 31, 2025, the Company has recorded the receivable relating to amount due from
Related Parties net of impairment. This assessment is undertaken each Financial Year through examining the Financial
position of the Related Parties and the market in which the Related Party operates.
52 The Company has used an accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except that :
i) The feature of recording audit trail (edit log) w.r.t what has been changed is not enabled at the application layer of the
accounting software âLogicâ and âUBQâ Application for maintaining the books of accounts..
ii) The feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct data changes
for the accounting software used for maintaining the books of account.
Further there is no instance of audit trail feature being tampered with.
Additionally, the audit trail has been preserved by the company as per the statutory requirements for record retention, except
for the exceptions mentioned above that it was enabled at the application layer of the SAP Application from March 18, 2024
and for the logic application from April 01, 2024 and no retention at database level as audit trail feature is not enabled.
53 The management has evaluated all activity of the company till May 14, 2025 and concluded that there were no additional
subsequent events required to be reflected in the company''s financial statements.
As per our report of even date attached
For Singhi & Co. For and on behalf of the Board of Directors of
Chartered Accountants Dollar Industries Limited
FRN: 302049E CIN : L17299WB1993PLC058969
Rahul Bothra Vinod Kumar Gupta Krishan Kumar Gupta
Partner Managing Director Whole Time Director
Membership No: 067330 DIN: 00877949 DIN: 01982914
Kolkata Ajay Kumar Patodia Abhishek Mishra
May 14, 2025 Chief Financial Officer Company Secretary
Mar 31, 2024
23 Provisions
Accounting Policy
Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
Onerous Contracts
Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.
24 Trade payables
Accounting Policy
Trade payables represent liabilities for goods and services provided to the Company and are unpaid at the reporting period. The amounts are unsecured and usually paid within time limits as contracted. Trade and other payables are presented as current liabilities unless the payment is not due within 12 months after the reporting period. They are recognised initially at their transactional value which represents the fair value and subsequently measured at amortised cost using the effective interest method wherever applicable.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government.
a) Sale of Goods
Sale of goods is recognised at the point in time when control of the goods is transferred to the customer. Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the company as part of the contract. As the period between the date on which the company transfers the promised goods to the customer and the date on which the customer pays for these goods is generally one year or less, no financing components are taken into account.
Certain contracts provide a customer with a right to return the goods within a specified period. The company uses the expected value method to estimate the goods that will not be returned because this method best predicts the amount of variable consideration to which the company will be entitled. The requirements in Ind AS 115 on constraining estimates of variable consideration are also applied in order to determine the amount of variable consideration that can be included in the transaction price for goods that are expected to be returned instead of revenue the company recognises a refund liability. A right of return asset and corresponding adjustment to change in inventory is also recognised for the right to recover products from a customer.
b) Sale of Services
In contracts involving the rendering of services, revenue is measured using the completed service method.
c) Other Operating Revenue
Export incentive and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions and the incentive will be received. Insurance & other claims, where quantum of accruals cannot be ascertained with reasonable certainty are recognized as income only when revenue is virtually certain which generally coincides with receipt/ acceptance.
d) Government Grants
Government grants are recognized at their fair values when there is reasonable assurance that the grants will be received and the Company will comply with all the attached conditions. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Grants related to purchase of property, plant and equipment are included in non-financial liabilities as deferred income and are credited to the Statement Profit and Loss on a straight line basis over the expected useful life of the related asset and presented within other operating revenue.
31 Employee benefits expense
Accounting Policy
28 Other income Accounting Policy
Interest Income
For all financial instruments measured at amortized cost, Interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset.
Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period.
Post-Employment Benefits
The company operates the following post-employment schemes:
a) Defined Benefit Plans
The liability or asset recognized in the balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The company net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation.
Remeasurement of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the statement of Profit and Loss.
32 Finance costs
Accounting Policy
Finance costs includes costs in relation to pensions and similar obligations, interest on lease liabilities which represents unwinding of the discount rate applied to lease liabilities and also include interest costs in relation to financial liabilities.
Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also include exchange difference to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale. The company considers a period of twelve months or more as a substantial period of time.
Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of Profit and Loss in the period in which they are incurred.
36 Earnings per share
Accounting Policy
Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by the weighted average number of shares outstanding during the year. Partly paid up shares are included as fully paid equivalents according to the fraction paid up.
Diluted earnings per share is computed using the weighted average number of shares and dilutive potential shares except where the result would be anti-dilutive.
b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.
c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality withdrawal disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of the short career employee typically costs less per year as compared to a long service employee.
d) Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)/ liability and its components:
b) Defined Benefit Plan
The following are the types of Defined Benefit Plans:
(i) Gratuity Plan
Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.
(ii) Provident Fund
Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
c) Risk Exposure
Defined Benefit Plans
Defined benefit plans expose the Company to actuarial risks such as: Interest rate risk, Salary risk and Demographic risk.
a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events but is not recognized because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The company discloses the existence of contingent liabilities in other Notes to Financial Statements. Contingent assets are neither recognised nor disclosed in the financial statements.
(H in lakhs)
40 The Board of Directors at its meeting held on May 21, 2024 have recommended a payment of dividend of H 3.00 per equity share of FV H 2 each for the financial year ended March 31, 2024. The same amounts to H 1701.48 Lakhs. This is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.
43 Fair value of financial assets and financial liabilities
43.1 The Company has measured its financial asset and financial liabilities at amortised cost:
43.2 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, lease liabilities, short term borrowings and other current financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments approximates their carrying value.
43.3 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.
44 Fair value hierarchy
The fair value of financial instruments are classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The categories used are as follows:
¦ Level 1: Quoted prices for identical instruments in an active market;
¦ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
¦ Level 3: Inputs which are not based on observable market data.
a) The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 âFair Value Measurementâ.
b) There are no transfers between levels during the year.
45 Financial risk management objectives and policies
The Company''s activities expose it to the following risks:
a) Credit risk
b) Liquidity risk
c) Market risk
45.1 Credit risk
Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including deposits with banks and financial institutions, investments, foreign exchange transactions and other financial instruments.
45.3 Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks:
Trade and other receivables
Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Concentration of credit risk with respect to trade and other receivables are limited, due to the Company''s customer / other party base being large and diverse. All trade and other receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Outstanding customer receivables / other party are regularly monitored and major customers / other party are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable as disclosed in Note 16.
Commodity price risk, Foreign exchange risk, and Interest rate risk.
1) Commodity price risk
The Company primarily imports cotton and rubber. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.
2) Foreign currency risk
The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.
The Company''s exposure to foreign currency risk at the end of the reporting period are as follows:
45.2 Liquidity risk
It is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals. The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.
3) Interest rate risk
The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where considered necessary.
Note : Explanation for change in ratio by more than 25%
(i) Net profit ratio, Return on capital employed and Return on equity ratio is increased due to increase in sale in volume by 21% with respect to previous year.
(ii) Debt equity ratio is increased on account of increase in inventory resulting in an increase in borrowing.
(iii) Profit after tax Finance cost Depreciation and Amortisation expenses - Net gain on sale of PPE.
(iv) Purchase of raw material, Changes in inventories of finished goods and work-in-progress and Other Expenses (Manufacturing Expenses).
(v) During the current and previous year, the Company has not earned income on the investments. Accordingly, ratio for Return on Investments has not been presented.
47 During the earlier years, the Central Government has published âThe Code on Social Security, 2020â and âIndustrial Relations Code, 2020â (âthe Codesâ) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the codes thereunder and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification of the relevant provisions.
48 Other Statutory Information
No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III
(i) Crypto Currency or Virtual Currency.
(ii) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(iii) Registration of charges or satisfaction with Registrar of Companies.
(iv) Any transactions with companies struck off.
(v) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.
(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
49 Capital management
The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and long term.Net Debt(total borrowing less cash and cash equivalents) to equity ratio is used to monitor capital.
50 Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.
51 Segment Reporting
There is only one primary business segment i.e. âGarments & Hosiery goods and related servicesâ and hence no separate segment information is disclosed in this financials.
Secondary information is reported geographically.
Geographical segments
The Company primarily operates in India and therefore analysis of geographical segment is demonstrated into Indian and overseas operation as under:
(i) Details of investments made by the Company in equity shares of subsidiary and its joint venture is disclosed in Note 10.
(ii) The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances issued to Related Parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding Balances at the year end are unsecured and settlement occurs in cash for the year ended March 31, 2024, the Company has recorded the receivable relating to amount due from Related Parties net of impairment. This assessment is undertaken each Financial Year through examining the Financial position of the Related Parties and the market in which the Related Party operates.
53 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that :
i) The audit trail(edit log) feature is not enabled at the database level but was activated subsequent to balance sheet date.
ii) The feature of recording audit trail (edit log) w.r.t what has been changed is not enabled at the application layer of the accounting software relating to e-commerce management and âinhouse ERPâ for maintaining the books of accounts.
Further there is no instance of audit trail feature being tampered with.
54 The management has evaluated all activity of the company till May 21, 2024 and concluded that there were no additional subsequent events required to be reflected in the company''s financial statements.
55 Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, wherever considered necessary.
As per our report of even date attached
For Singhi & Co. For and on behalf of the Board of Directors of
Chartered Accountants Dollar Industries Limited
FRN: 302049E CIN : L17299WB1993PLC058969
Rahul Bothra Vinod Kumar Gupta Krishan Kumar Gupta
Partner Managing Director Whole Time Director
Membership No: 067330 DIN: 00877949 DIN: 01982914
Kolkata Ajay Kumar Patodia Lalit Lohia
May 21, 2024 Chief Financial Officer Company Secretary
Mar 31, 2023
10.1 On 20.01.2023, the company acquired 66.66% stake in Dollar Garments Private Limited, a unlisted company incorporated in india and engaged in the business of Production and sale of Rain Wear Product. The company had acquired substantive rights which gives control over relevant activities of the business and right to variable returns through inter alia composition of Board, decision making rights, management control, and hence Dollar Garments Private Limited is treated as a Subsidiary.
10.2 The company holds 49% of the share capital in the Joint Venture Company.During the year, the Company has made additional investment in Joint Venture for '' 200 lacs During the previous year, the Company has provided for impairment on its investment in Joint Venture viz. Pepe Jeans Innerfashions Pvt Ltd (PJIFPL) of '' 308 lacs. Hence, the carrying amount of investment has reduced to '' 1189 lacs against the total investment of '' 1,497 lacs.
11.1 During the current year, the company has made an impairment in the value of investment in Arkay Energy (Rameswaram) Limited. In previous year, the Company has made an impairment in the value of investment in Ind-Barath Power Gencom Limited and Suryadev Alloys and Power Private Limited. The management anticipates that the termination of contract in future (if any) would be at cost i.e. the amount invested. Since the investment has been made only for consuming the power and not for any financial reasons, hence the same is valued at cost, deemed to be at fair value.
11.2The Company had invested in shares of Bahadurgarh Footwear Development Services Private Limited in FY 2018-19 to procure land and the same is valued at cost which is deemed to be fair value.
D Disclosure in Relation to Undisclosed Income
During the year, the Company has not surrendered or disclosed any income in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Accordingly, there are no transaction which are not recorded in the books of accounts.
14.1 Balances with Government and statutory authorities include input credit entitlements and other indirect taxes receivable.
14.2 Others include amounts claimed from parties on account of business obligations.
14.3 Balances with Government and statutory authorities include '' 2.37 lacs (March 31, 2022 - '' 2.37 lacs) for payment made against protest for GST Appeal.(Refer Note No. 39)
14.4 Others include advances paid to employees.
16.1 In determining allowance for credit losses of trade receivables, the Company has used the practical expedient by computing the expected credit loss allowance based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on ageing of the receivables and rates used in the provision matrix.
16.2 The Company considers its maximum exposure to credit risk with respect to customers as at March 31, 2023 to be '' 42,831.03 lacs (March 31, 2022: '' 40,208.65 lacs), which is the carrying value of trade receivables after allowance for credit losses. The Company''s exposure to customers is diversified and no single customer contributes more than 10% of the outstanding receivables as at March 31, 2023 and March 31, 2022.
16.3 There are no outstanding receivables due from directors or other officers of the Company.
19.4 Rights, preferences and restrictions attached to shares
The Company has one class of issued shares i.e. equity shares having par value of '' 2 per share. Each holder of ordinary shares is entitled to one vote per share. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.
19.5 The Company does not have any holding Company or ultimate holding Company.
19.6 No shares have been reserved for issue under options and contracts / commitments for the sale of shares / disinvestment as at the balance sheet date.
19.7 No convertible securities has been issued by the Company during the year.
19.8 No calls are unpaid by any Director and officer of the Company during the year.
(b) Nature and purpose of reserves20.1 Securities premium
Securities premium represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.
General reserve is created out of the profits transferred from the earnings during the year. It is available for distribution to the shareholders.
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
20.4 Remeasurement of defined benefit Plans
Remeasurement of defined benefit plans comprises actuarial gains and losses and return on plan asset (excluding interest income) which are recognised in other comprehensive income and then immediately transferred to retained earnings.
a) Term loan from ICICI Bank is secured by exclusive charge on the capital assets procured out of the proceeds of the respective loan.
b) Term loan from Indian Bank (previously Allahabad Bank) is secured by exclusive first charge over the assets acquired out of the proceeds of the respective loan and situated at the Dyeing & Bleaching unit of the company at Dist. Erode, Taluk: Penrundurai, SIPCOT industrial Growth Centre, Tamil Nadu, PIN:938052. Factory land & Building, Windmill properties are also pledged as collateral security (on pari passu with all consortium banks).
c) Term loan from HDFC Bank is secured by exclusive charge on the capital assets procured out of the proceeds of the respective loan. Personal Guarantee of the promoter directors are also provided as collateral security.
d) Working capital loan and packing credit from consortium member banks are secured by way of hypothecation charge over entire current assets viz. raw materials, stock-in-trade and book debts both present and future ranking pari passu with other consortium member banks.Factory land & Building, Windmill properties, entire fixed assets of the company are also pledged as collateral security (on pari passu with all consortium banks). Furthermore, personal guarantee of promoter directors and corporate guarantee are also provided against the same.
21.2 Repayment terms of loans outstanding As at March 31, 2023
a) Allahabad Bank term loan V amounting '' 78.69 lacs (March 31, 2022: '' 227.24 lacs) is repayable in 19 equal quarterly instalments beginning from June, 2019, the next instalment is due in June, 2023.
b) ICICI Bank term loan IV amounting Nil (March 31, 2022: '' 10.04 lacs) was repayable in 16 equal quarterly instalments beginning from October, 2018, the loan has been repaid during the year.
c) Allahabad Bank term loan IV amounting Nil (March 31, 2022: '' 5.55 lacs) was repayable in 16 equal quarterly instalments beginning from November, 2018, the loan has been repaid during the year.
d) HDFC Bank term loan amounting '' 22.60 lacs (March 31, 2022: '' 30.82 lacs) is repayable in 20 equal quarterly instalments beginning from February, 2021, the next instalment is due in May, 2023.
e) Working capital loans from banks amounting to '' 16,060.37 lacs (March 31, 2022: '' 20,293.31 lacs) is repayable on demand.
21.3 Interest rates on the above loans from banks and body corporate between 5.95% to 8.55% p.a.
The following are the types of Defined Benefit Plans:
(i) Gratuity Plan
Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.
(ii) Provident Fund
Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
Defined Benefit Plans
Defined benefit plans expose the Company to actuarial risks such as: Interest rate risk, Salary risk and Demographic risk.
a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.
b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.
c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality withdrawal disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of the short career employee typically costs less per year as compared to a long service employee.
42.1 The company has elected to apply Ind AS 116 to its leases with modified retrospective approach. Under this approach, the company has recognized lease liabilities and corresponding equivalent right of use assets. In the statement of profit & loss for the year ended, operating lease expenses which were recognised as other expenses in previous periods is now recognised as depreciation expenses on right of use assets and finance cost for interest accrued on such lease liability.
43.2 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, lease liabilities, short term borrowings and other current financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments approximates their carrying value.
43.3 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.
The fair value of financial instruments are classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The categories used are as follows:
¦ Level 1: Quoted prices for identical instruments in an active market;
¦ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
¦ Level 3: Inputs which are not based on observable market data.
a) The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 âFair Value Measurementâ.
b) There are no transfers between levels during the year.
45 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
45.2 Liquidity risk
It is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals. The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.
The Company''s activities expose it to the following risks:
a) Credit risk
b) Liquidity risk
c) Market risk
Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including deposits with banks and financial institutions, investments, foreign exchange transactions and other financial instruments.
Trade and other receivables
Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Concentration of credit risk with respect to trade and other receivables are limited, due to the Company''s customer / other party base being large and diverse. All trade and other receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Outstanding customer receivables / other party are regularly monitored and major customers / other party are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable as disclosed in Note 16.
45.3 Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks:
Commodity price risk, Foreign exchange risk, and Interest rate risk.
1) Commodity price risk
The Company primarily imports cotton and rubber. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.
2) Foreign currency risk
3) Interest rate risk
The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where considered necessary.
The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.
The Company''s exposure to foreign currency risk at the end of the reporting period are as follows:
Note : Explanation for change in ratio by more than 25%
(i) Net profit ratio, Return on capital employed, Return on equity ratio and Debt service coverage ratio is decreased due to volatility in raw material prices which has impacted the gross margin and profit margin.
(ii) Debt equity ratio is decreased due to rationalisation of working capital management by reduction in inventory.
(iii) Profit after tax Finance cost Depreciation and Amortisation expenses - Net gain on sale of PPE.
(iv) Purchase of raw material, Changes in inventories of finished goods and work-in-progress and Other Expenses (Manufacturing Expenses).
(v) During the current and previous year, the Company has not earned income on the investments. Accordingly, ratio for Return on Investments has not been presented.
47 Code on Social Security During the previous year ended 31st March, 2021 the Central Government has published âThe Code on Social Security, 2020â and âIndustrial Relations Code, 2020â (âthe Codesâ) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the codes thereunder and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification of the relevant provisions.
48 OTHER STATUTORY INFORMATION
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) The Company has not been declared as Wilful defaulter by any Banks, Financial institution or Other lenders.
The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and long term.Net Debt(total borrowing less cash and cash equivalents) to equity ratio is used to monitor capital.
50 Certain Trade Receivables, Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.
There is only one primary business segment i.e. âGarments & Hosiery goods and related servicesâ and hence no separate segment information is disclosed in this financials.
Secondary information is reported geographically.
(i) Details of investments made by the Company in equity shares of subsidiary and its joint venture is disclosed in Note 10.
(ii) The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances issued to Related Parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding Balances at the year end are unsecured and settlement occurs in cash for the year ended March 31, 2023, the Company has recorded the receivable relating to amount due from Related Parties net of impairment. This assessment is undertaken each Financial Year through examining the Financial position of the Related Parties and the market in which the Related Party operates.
53 Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, wherever considered necessary.
Mar 31, 2018
1. CORPORATE AND GENERAL INFORMATION
Dollar Industries Limited (the Company), was incorporated in India the year 1993. The Company is domiciled in India, and has its registered office in Om Tower, 32, J.L Nehru Road, 15th Floor, Kolkata - 700 071.
The Company is a Public Limited Company incorporated as per the provision of Companies Act applicable in India. The Company is primarily engaged in manufacture of hosiery products in knitted inner wears, casual wears and thermal wears. It also has a Power Generation Unit sourced from Windmill. The shares of the Company are listed on National Stock Exchange of India Limited.
2. BASIS OF ACCOUNTING
2.1 Statement of Compliance
These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (the Act), read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and other accounting principles generally accepted in India.
The financial statements for all periods up to and including the year ended 31st March, 2017, were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India, which includes the accounting standards prescribed under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 and other provisions of the Act (collectively referred to as âIndian GAAPâ). These financial statements for the year ended 31st March, 2018 are the first Ind AS Financial Statements with comparatives, prepared under Ind AS. The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet as at 1st April, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101- First Time Adoption of Indian Accounting Standards.
An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company is provided in Note 44. Certain of the Companyâs Ind AS accounting policies used in the opening Balance Sheet differed from its Indian GAAP policies applied as at 31st March, 2017 and accordingly the adjustments were made to restate the opening balances as per Ind AS. The resulting adjustment arising from events and transactions before the date of transition to Ind AS were recognized directly through retained earnings as at 1st April, 2016 as required by Ind- AS 101. The financial statements of the Company for the year ended 31st March, 2018 have been approved by the Board of Directors in their meeting held on 29th May, 2018.
2.2 Basis of Measurement
The financial statements have been prepared on historical cost basis, except for following:
- Financial assets and liabilities (including derivative instruments) that is measured at Fair value/ Amortised cost.
2.3 Functional and Presentation Currency
The Financial Statements have been presented in Indian Rupees (INR), which is also the Companyâs functional currency. All financial information presented in INR has been rounded off to the nearest lakhs as per the requirements of Schedule III, unless otherwise stated.
2.4 Use of Estimates and Judgements
The preparation of financial statements require judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period prospectively in which the results are known/ materialized.
2.5 Current Vs non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as current when it is:
- Expected to be realized or intended to sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting period; or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period; or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other assets and liabilities as non-current.
Deferred Tax Assets and Liabilities are classified as non-current assets and liabilities respectively.
3. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES
Information about significant judgements and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:
- Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Companyâs future taxable income against which the deferred tax assets can be utilized. In addition, significant judgement is required in assessing the impact of any legal or economic limits.
- Useful lives of depreciable/ amortisable assets (tangible and intangible): Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.
- Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lesseeâs option to purchase and estimated certainty of exercise of such option, proportion of lease term to the assetâs economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
- Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.
- Provisions and Contingencies: The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, âProvisions, Contingent Liabilities and Contingent Assetsâ. The evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.
- Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.
- Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.
- Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
c) The Company has one class of issued shares i.e. equity shares having par value of RS.2 per share. Each holder of ordinary shares is entitled to one vote per share. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.
d) The Company does not have any holding Company or ultimate holding Company.
e) No shares have been reserved for issue under options and contracts/ commitments for the sale of shares/disinvestment as at the balance sheet date.
f) No convertible securities has been issued by the Company during the year.
g) No calls are unpaid by any Director and officer of the Company during the year.
h) The equity shares of the Company were split from FV RS.10/- each to RS.2/- each. In this regard, the Board of Directors of the Company accorded its approval at its meeting held on 29 May, 2017 and shareholders have approved the same at the Annual General Meeting held on 8 August, 2017. The Company had fixed its record date as 1 September, 2017 and accordingly the changes have been made in the NSE.
i) The Company had issued and allotted 25,00,000 equity shares of RS.2/- each, for cash, at a premium of RS.428/- per share aggregating to RS.10,750.00 lakhs on preferential basis to the Promoter/ Promoter group on 7 November, 2017.
j) During the financial year 2016-17 the Company had issued and allotted 30,98,064 bonus shares to the equity shareholders in the ratio of 0.4 equity shares for each held.
Nature and purpose of other reserves
a) General reserve
General reserve is created out of the profits transferred from the earnings during the year. It is available for distribution to the shareholders.
b) Securities premium reserve
Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act.
4.1 Nature of security
a) Term loan from Yes Bank and ICICI Bank are secured by exclusive charge on the capital assets procured out of the proceeds of the respective loan.
b) Term loan from Allahabad Bank are secured by exclusive first charge over the assets acquired out of the proceeds of the respective loan and situated at NH 7, V. Paddukottal, Tamilnadu.
4.2 Repayment terms of secured term loans outstanding as at 31 March, 2018
a) Allahabad Bank corporate loan amounting RS.997.98 lacs (31 March, 2017: RS.1,993 lacs; 1 April, 2016: Nil) is repayable in 2 annual instalments commencing from March, 2018.
b) Allahabad Bank term loan III amounting RS.270.55 lacs (Previous year 31 March, 2017: RS.586.97 lacs; 1 April, 2016: RS.905.18 lacs) is repayable in 16 quarterly instalments commencing from June, 2015.
c) Yes Bank term loan amounting RS.166.80 lacs (31 March, 2017: RS.299.71 lacs ; 1 April, 2016: RS.408.06 lacs) is repayable in 15 quarterly instalments commencing from December, 2015.
d) Allahabad Bank term loan V amounting RS.131.69 lacs (31 March, 2017: Nil; 1 April, 2016: Nil) is repayable in 19 quarterly instalments commencing after one year from the final disbursement of the loan.
e) ICICI Bank term loan IV amounting RS.80.37 lacs (31 March, 2017: Nil; 1 April, 2016: Nil) is repayable in 16 equated quarterly instalments commencing from November, 2018.
f) Allahabad Bank Term loan IV amounting RS.18.60 lacs (31 March, 2017: Nil; 1 April, 2016: Nil) is repayable in 16 equated quarterly instalments commencing from November, 2018.
4.3 The loan from body corporate amounting to RS.4,246.97 (31 March, 2017: RS.5,276.50; 1 April, 2016: RS.1,270.39) is repayable after April 2019.
4.4 Interest rates on the above loans from banks and body corporate range between 8.25% to 10.50%.
5.1 Movement in deferred tax assets and liabilities during the year ended 31 March, 2018 and 31 March, 2017
6.1 Working capital loan from banks are secured by way of hypothecation charge over entire current assets viz. raw materials, stock-in-trade and book debts both present and future ranking pari passu with other consortium member banks.
6.2 Interest rates on the above loan from banks range between 8.25% to 10.60%
7.1 Based on the information available with the Company, there were no dues during the year to entities covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no Interest provisions/payments have been made by the Company to such creditors.
8. Disclosure pursuant to Indian Accounting Standard - 19 âEmployee Benefitsâ as notified u/s 133 of the Companies Act, 2013.
a) Defined Contribution Plan
The amount recognized as an expense for the Defined Contribution Plans are as under:
b) Defined Benefit Plan
The following are the types of defined benefit plans:
(i) Gratuity Plan
Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.
(ii) Provident Fund
Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
c) Risk Exposure Defined Benefit Plans
Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic Risk.
a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.
b) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.
c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that includes mortality withdrawal disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of the short career employee typically costs less per year as compared to a long service employee.
d) Reconciliation of the net defined benefit (asset)/ liability
The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)/ liability and its components:
i) Maturity Analysis
At 31 March, 2018, the weighted average duration of the defined benefit obligation was 25 years (previous year 24 years). The distribution of the timing of benefits payment i.e., the maturity analysis of the benefit payments is as follows:
j) Sensitivity Analysis
The sensitivity analysis below have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
9. The Board of Directors at its meeting held on 29th May, 2018 have recommended a payment of final dividend of RS.1.60 per equity share of FV RS.2 each for the financial year ended 31 March, 2018. The same amounts to RS.1,093.99 lacs (including dividend distribution tax of RS.186.53 lacs).
The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.
10. Operating leases As Lessee
The Companyâs significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godown) etc. These leasing arrangements which are cancellable range between 11 months and 8 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.
11. Transition to Ind AS
11.1 Basis for preparation
For all period up to and including the year ended March 31, 2017, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended 31 March, 2018 are the Companyâs first annual Ind AS financial statements and have been prepared in accordance with Ind AS.
The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended 31 March, 2018, the comparative information presented in these financial statements for the year ended 31 March, 2017 and in the preparation of an opening Ind AS balance sheet at 1 April, 2016 (the date of transition). This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows.
11.2 Exceptions and exemptions applied
Ind AS 101 âFirst-time adoption of Indian Accounting Standardsâ (hereinafter referred to as Ind AS 101) allows first time adopters certain mandatory exceptions and optional exemptions from the retrospective application of certain Ind AS, effective for 1st April, 2016 opening balance sheet. In preparing these Standalone financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.
11.2.1 Optional exemptions availed
a) Property, plant and equipment and Intangible assets
As permitted by Para D5-D8B of Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets also.
b) Determining whether an arrangement contains a lease
Para D9-D9AA of Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 âLeasesâ for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement). The Company has applied the above transitional provision and has assessed all the arrangements at the date of transition.
c) Business combination
Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Standard has not been applied to acquisitions of subsidiaries, which are considered businesses for Ind AS, or of interests in associates that occurred before the transition date, 1 April, 2016.
11.2.2 Mandatory exceptions
a) Estimates
As per Para 14 of Ind AS 101, an entityâs estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entityâs first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.
As per Para 16 of the standard, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period.
The Companyâs estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below:
-Impairment of financial assets based on the expected credit loss model.
-Determination of the discounted value for financial instruments carried at amortized cost.
b) De-recognition of financial assets and liabilities
As per Para B2 of Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, âFinancial Instrumentsâ, prospectively for transactions occurring on or after the date of transition to Ind AS. However, Para B3 gives an option to the entity to apply the derecognition requirements from a date of its choice if the information required to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the initially accounting for those transactions. The Company has elected to apply the derecognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
c) Classification and measurement of financial assets
Para B8 - B8C of Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.
Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively.
12. Transition to Ind AS- Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:
12.1 Reconciliation of Balance sheet as at 1 April, 2016 (Transition Date) and as at 31 March, 2017
12.2 Reconciliation of Statement of Profit and Loss Account and total comprehensive income for the year ended 31 March, 2017
12.3 Reconciliation of total equity as at 1 April, 2016 and as at 31 March, 2017
12.4 Adjustments to Statement of Cash Flows
The presentation requirement under Previous GAAP differ from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
Notes to the reconciliation of Balance Sheet & Equity as at 1 April, 2016 and 31 March, 2017 and Profit for the year ended 31 March, 2017
Explanations to the material adjustments made in the process of IND AS transition from previous GAAP
a) Long term borrowings
Under Indian GAAP, the Company accounted for long term borrowings measured at transaction value. Under Ind AS, the Company has recognised the long term borrowings at amortised cost using effective interest rate (EIR) method.
b) Deferred revenue
As per the Policy of the Company , grants received from government agencies against specific fixed assets (Property, Plant and Equipment) are credited to the Profit and Loss Account. Under IND AS the same has been presented as deferred revenue being amortised in the statement of profit & loss on a systematic basis.
c) Dividend and tax on dividend
Under Indian GAAP, proposed dividends including Dividend Distribution Tax (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.
Since declaration of dividend occurs after period end in the Company, the provision for proposed dividend has been derecognized against retained earnings on 1 April, 2016 and Liabilities recognized in the year ended 31 March, 2017.
d) Forward contract
Under IND AS mark to market gain or loss on restatement of forward contract as at the reporting date has been recognized in the Statement of profit and loss.
e) Security deposits given
Under the Previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) were recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent.
f) Deferred tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.
In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.
g) Re-classifications
Assets/ liabilities which do not meet the definition of financial asset/ financial liability have been reclassified to other asset/ liability. Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCI.
13. Fair value of financial assets and financial liabilities
13.1 The Company has measured its Financial Asset and Financial Liabilities to be measured at Amortised Cost, except as stated below:
13.2 The management has assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, short term borrowings, and other current financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. The management has assessed that the fair value of floating rate instruments approximates their carrying value.
13.3 The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.
14. Fair value hierarchy
The fair value of financial instruments are classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The categories used are as follows:
- Level 1: Quoted prices for identical instruments in an active market;
- Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
- Level 3: Inputs which are not based on observable market data.â
14.1 The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 âFair Value Measurementâ.
14.2 There are no transfers between levels during the year.
15. Financial risk management objectives and policies
The Companyâs activities expose it to the following risks:
a) Credit risk
b) Liquidity risk
c) Market risk
a) Credit risk
Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including deposits with banks and financial institutions, investments, foreign exchange transactions and other financial instruments.
Trade receivables
Customer credit risk is managed by the Company subject to the Companyâs established policy, procedures and control relating to customer credit risk management. Concentration of credit risk with respect to trade receivables are limited, due to the Companyâs customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivable as disclosed in Note 12.
b) Liquidity risk
It is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation. Typically the Company ensures that it has sufficient cash on demand to meet expected short term operational expenses. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans/internal accruals. The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date.
c) Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks:
Commodity Price Risk, Foreign Exchange Risk, and Interest Rate Risk.
1) Commodity price risk
The Company primarily imports cotton and rubber. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.
2) Foreign currency risk
The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.
The Companyâs exposure to foreign currency risk at the end of the reporting period are as follows:
Sensitivity analysis
The Analysis is based on assumption that the increase/decrease in foreign currency by 5% with all other variables held constant, on the unhedged foreign currency exposure.
3) Interest rate risk
The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where considered necessary.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:
16. Capital management
The Companyâs objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and long term.
17. Certain Trade Receivables , Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Loans & Advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.
18. Segment Reporting
There is only one primary business segment i.e. âGarments & Hosiery goods and related servicesâ and hence no separate segment information is disclosed in this financials.
Secondary information is reported geographically.
Geographical segments
The Company primarily operates in India and therefore analysis of geographical segment is demonstrated into Indian and overseas operation as under:
The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those that prevail in armâs length transactions. The Loans and Advances issued to Related Parties are on terms equivalent to those that prevail in armâs length transactions. Outstanding Balances at the year end are unsecured and settlement occurs in cash for the year ended 31 March, 2018, the Company has recorded the receivable relating to amount due from Related Parties net of impairment. This assessment is undertaken each Financial Year through examining the Financial position of the Related Parties and the market in which the Related Party operates.
19. Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.
Mar 31, 2017
Note: 1 - Corporate Information
Dollar Industries Limited ( the âCompanyâ ) is a public limited company incorporated in India. Its Shares are listed on The Calcutta Stock Exchange Ltd. The shares of the Company has also been listed on the National Stock Exchange of India Ltd w.e.f. 21st April, 2017. The Company is primarily engaged in the business of manufacturing & sale of hosiery goods in knitted innerwear, casual wears and thermal wears. The Manufacturing units of the Company are located in Kolkata, Tirupur, New Delhi and Ludhiana. It also has a Power Generation Unit operated on Windmill process located at various places in the state of Tamil Nadu.
2.1 Terms/Rights, Preferences and Restrictions attached to the Equity Shares
The company has only one class of equity shares having a par value of RS.10 per share which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entitled to one vote per share.
3.1 Security
Loan from Bank and Financial Institutions for purchase of Fixed Assets are secured against the fixed assets purchased out of those loans.
3.2 Repayment Terms
a) Term Loan from Allahabad Bank is repayable in 24 equated quarterly installments of RS.1,04,58,113/= starting from 30.06.2011 and the last instalment will be falling due on 30.06.2017.
b) Term Loan from Allahabad Bank is repayable in 16 equated quarterly installments of RS.81,25,000/= starting from 30.06.2015 and the last instalment will be falling due on 31.03.2019.
c) Term Loan from ICICI Bank is repayable in 20 equated quarterly installments of RS.50,00,000/= starting from 19.08.2012 and the last instalment will be falling due on 18.05.2017.
d) Term Loan from ICICI Bank is repayable in 16 quarterly installments of RS.1,12,41,912/= starting from 31.01.2014 and the last instalment will be falling due on 30.10.2017.
e) Term Loan from ICICI Bank is repayable in 16 equated quarterly installments of RS.15,01,382/= starting from 30.04.2014 and the last instalment will be falling due on 31.01.2018.
f) Term Loan from Yes Bank is repayable in 15 equated quarterly installments of RS.33,45,005/= starting from 31.12.2015 and the last instalment will be falling due on 30.06.2019.
g) Term Loan from Allahabad Bank is repayable in 2 equated yearly installments of RS.10,00,00,000/= each starting from FY 2017-18 and the last instalment shall be repaid during FY 2018-19.
h) Term Loan from Daimler Financial Services (I) Pvt Ltd ( NBFC ) was repayable in 36 equated monthly installments of RS.13,889/= starting from 28.02.2014 and the last installment was paid on 28.02.2017.
i) Term Loan from BMW India Financial Services Pvt Ltd ( NBFC ) is repayable in 36 equated monthly installments of RS.1,44,063/= starting from 15.11.2014 and the last instalment will be falling due on 15.10.2017.
j) Unsecured Loans from body corporates are repayable at the will of the management or lenders after three years from the date of receipt of such loan.
k) Unsecured Loans from banks were availed for advertisement Plans and product development and were reapid during the year.
3.3 The applicable rate of interest on the above term loans during the year are
a) Term Loan from Allahabad Bank carries interest rate of 9.00% p.a. on reducing balance basis.
b) Term Loan from Allahabad Bank carries interest rate of 9.00% p.a. on reducing balance basis.
c) Term Loan from ICICI Bank Ltd carries interest rate of 11.35% p.a. on reducing balance basis.
d) Term Loan from ICICI Bank Ltd carries interest rate of 11.35% p.a. on reducing balance basis.
e) Term Loan from ICICI Bank Ltd carries interest rate of 11.35% p.a. on reducing balance basis.
f) Term Loan from Yes Bank Ltd carries interest rate of 10.50% p.a. on reducing balance basis.
g) Term Loan from Allahabad Bank carries interest rate of 8.65% p.a. on reducing balance basis.
h) Term Loan from Daimler Financial Services (I) Pvt Ltd ( NBFC ) was interest free.
i) Term Loan from BMW India Financial Services Pvt Ltd ( NBFC ) carries interest rate of 9.60% p.a. on reducing balance basis.
j) Unsecured Loans from Related Parties carries interest rate of 9% p.a.
4.1 Security
Secured Working Capital Loan From Banks are secured against first charge by way of hypothecation of raw materials, stocks, book debts, stores & spares and all other current assets created out of the bankâs finance along with the future additions and also by the personal guarantee of the directors of the Company.
Details of Transactions entered into with related parties during the year as required by Accounting Standard (AS) - 18 on âRelated Party Disclosuresâ issued by The Institute of Charterted Accountants of India are as under:
a) Key Management Personnel :
1) Shri Din Dayal Gupta, Chairman
2) Mr Vinod Kumar Gupta, Managing Director
3) Mr Binay Kumar Gupta, Managing Director
4) Mr Krishan Kumar Gupta, Whole Time Director
5) Mr Bajrang Kumar Gupta, Whole Time Director
6) Mr S. Gopalakrishnan, Administrative Director
7) Mr Ram Niranjan Purohit, Chief Financial Officer ( upto 17th April, 2017 )
8) Ms Shashi Agarwal, Chief Financial Officer ( w.e.f. 18th April, 2017 )
9) Ms Shraddha, Company Secretary ( w.e.f. 1st May, 2016 )
b) Relatives of Key Management Personnel :
1) Mr Ramesh Kumar Gupta
2) Mr Pramod Kumar Gupta
3) Mrs Anita Gupta
4) Mrs Seema Gupta
5) Mrs Nitu Gupta
6) Mrs Ruchi Gupta
7) Mr Ankit Gupta
8) Mr Gaurav Gupta
9) Mr Aayush Gupta
c) Enterprises owned or significantly influenced by the Key Management Personnel or their relatives :
1) Goldman Trading Pvt Ltd
2) Simplex Impex Pvt Ltd
3) Amicable Properties Pvt Ltd
4) PHPL Stock Broking Pvt Ltd
5) Zest Merchants Pvt Ltd
6) VA Infraprojects Pvt Ltd
7) BS Infraproperties Pvt Ltd
8) KN Infraproperties Pvt Ltd
9) BR Infraprojects Pvt Ltd
10) Adds Projects Pvt Ltd
11) KPS Distributors Pvt Ltd
12) VHR Solutions Pvt Ltd
13) Vichaar Television Network Ltd
14) Sri Venkateswara Knitting
15) Sree Krishna Enterprise
16) Dhaksh Knitfab
17) Bhawani Textiles
18) L. M. Garments
19) Baker Fashioning
20) Dollar Foundation
21) Force Marketing
Provision is made for Income tax liability estimated to arise on the financial results for the year at the current rate of tax in accordance with the provisions of Income Tax Act, 1961.
Balances and transactions of parties appearing under the head Debtors, Creditors and Advances are subject to confirmations. In opinion of the Management, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet if realised in the ordinary course of business. The provision for depreciation and other known liabilities are adequate and not in excess of the amount reasonably necessary.
Note: 5 -
The Company has not received any memorandum as required to be filed by the suppliers with the notified authority and Micro, Small and Medium Enterprises Development Act, 2006 for claiming their status as micro small or medium enterprises. Consequently, the amounts paid/payable to such parties as at the year end together with interest paid/payable as required under the said Act have not been provided seperately in the Balance Sheet.
Note: 6 -
Demands/Claims by various government authorities and others not acknowledged as debts by the Company:
(i) Bank Guarantee outstanding RS.92.51 Lakh ( Previous Year: RS.28.02 Lakh )
(ii) Central Excise Matters ( Under Appeal ) RS.3.06 Lakh ( Previous Year: RS.3.06 Lakh )
(iii) Income Tax Matters ( Under Appleal/Rectification ) RS.88.10 Lakh ( Previous Year: RS.88.10 Lakh )
Note: 7 - In accordance with the revised Accounting Standard-15 i.e âEmployee Benefitsâ, the requisite disclosure are as follows:
(i) Defined Contribution Plan
The Company contributes to the Provident fund maintained by the Regional Provident Fund Commissioner. Contributions are made by the company to the Fund based on the current salaries. Employeesâ contribution are deducted from their remuneration on a monthly basis and deposited by the Company to the Regional Provident Fund. Apart from making monthly contribution to the scheme, the Company has no other obligation.
(ii) Post Employment Defined Benefit Plan - Gratuity
The Company has a defined benefit employee retirement plan in the form of gratuity. Every employee, who has completed five years or more of service gets a gratuity on departure equivalent to 15 days salary (last drawn salary) for each completed year of service.
The following tables summarize the components of employee benefit expenses recognised in the Statement of Profit and Loss and Balance Sheet for the Gratuity plans:
The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors. The expected return on plan assets is based on actuarial expectation of the average long term rate of return expected on investments of the funds during the estimated terms of the obligations.
(iii) The Company had not made any provision for Gratuity during the past years and recognised it as and when incurred. The manangement has changed the companyâs gratuity policy from cash basis to accrual basis starting from the current financial year. On the basis of actuarial valuation report obtained during the year, the Company has provided for the companyâs liability for gratuity as on 01.04.2016 for gratuity for RS.1,23,15,699/- and the same has been reduced from the Surplus in Statement of Profit & Loss.
Note: 8 -
The amount of borrowing cost capitalized during the Year is H Nil ( Previous Year: H Nil )
As Companyâs business activities fall within single primary business segment segment viz. âHosiery Goodsâ the disclosure requirement of Accounting Standard - 17, âSegment Reportingâ issued by The Institute of Chartered Accountants of India are not applicable in respect of business segment. However, the geographical segments considered for disclosures on the basis of sales are as under :
Note: 9 -
The Board of Directors of the Company has recommended to pay a final dividend @ 50% ( RS.5/- per share on Face Value of RS.10/-) subject to the approval of shareholders in the Annual General Meeting. The same have been provided in the books of accounts by the management on prudent basis.
As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceeding three financial years on CSR activities. A CSR committee has been formed by the company as per the Act. In accordance with Guidance Note on Accounting for Expenditure on Corporate Social Responsibility, the requisite disclosure are as follows:
(a) Gross amount required to be spent by the company during the year : RS.61.51 Lakh ( Previous Year: RS.45.30 Lakh )
(b) Amount spent during the year on :
(c) Details of related party transactions as per AS - 18 in relation to CSR Expenditure : RS.65.50 Lakh ( Previous Year: RS.48 Lakh )
(d) Provisions made in relation to CSR expendutire, if any : H Nil
Note: 10 -
Comparative Financial information (i.e. the amounts and other disclosure for the preceding year) presented above, is included as an integral part of the current yearâs financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.
Mar 31, 2015
1. Term /Rights, Preferences and Restrictions attached to the Equity Shares
The company has only one class of equity shares having a par value of Rs.10 per share which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entailed to one vote per share.
As per records of the Company, including i1s register of shareholders/members and other declarations received from shareholders regarding beneficial interest. the above shareholding represents both legal and beneficial ownership of shares.
2. Security
Loan from Bank and Financial Institutions for purchase of Fixed Assets are secured against the fixed assets purchased out of those loans.
3. Repayment Terns
4. Term Loan From Allahabad Bank is repayable in 24 equated qualify installments of Rs.1,02.00.000/= starting from 30.06.2011 and the last installment will be felling due on 30,06.2017.
5. Term Loan from ICJCI Bank is repayable in 20 equaled quarterly installments of Rs. 50,00.000/= starting from 19.08.2012 and the last installment will be falling due on 19.08.2017.
6. Term Loan from ICICI Bank is repayable in 15 equated quarterly Installments of Rs. 1,06,04,621/= starting from 30.04.2014 and the last installment will be falling due on 30.10.2017
7. Term Loan from ICICI Bank is repayable in 16 equated quarterly installments or Rs. 15,01,382/= starling from 30.04.2015 and the last installment will be falling due on 30.04.2018.
8. Term Loan from Yes Bank Ltd is availed to the tune of Rs. 3,44,57,606/= out of She iota I sanctioned loan or T 7,2&.00,000/=. The same shall be repaid as per the final repayments schedule to be fixed by the bank.
9. Term Loan from Allahabad Bank is Availed to the tone of Rs. 10,54,43,364/= out of the total sanctioned loan of Rs. 13,00,00,000/=. The same shall be repaid as per the final repayment schedule lo be fixed by the bank.
10. Term Loan from Daimler Financial Services (I) Pvt. Ltd ( NBFC) was repayable in 36 equated monthly installments of Rs.13,889/= starting foam 28.02.3014 and the Iasi installment will be falling due on 28.02.2017.
11. Term Loan from BMW India Financial Services Pvt Ltd (M8FC) is repayable in 36 equated monthly installments ofRs. 1,44,063/= starting from 15.11.2014 and the last installment will be falling due on 15.10.2017,
12. Unsecured Loans are repayable at the will of the management or lenders after three years from the date of receipt of such loan.
13. The applicable rate of interest on the above term loans during the year are
14. Term Loan f ram Allahabad Bank carries interest rate of 12,25% p ,a. on reducing balance basis.
15. Term Loan from ICIC f Bank Ltd carries interest rate of 13.50% p.a. on reducing balance basis.
16. Term Loan from ICICI Bank Ltd caries interest rate of 12.00% p .a. on reducing balance basis,
17. Term Loan from JCICI Bank Ltd carries interest rate of 12.00% p.a. on reducing balance basis.
18. Term Loan from Yes Bank Ltd caries interest rate of 11.60% p.a. on reducing balance basis.
19. Term Loan from Allahabad Bank carries interest rate Of 12.25%p,a. on reducing balance basis.
20. Term Loan from Daimler Financial Services(l) Pvt. Ltd (NBFC) is interest free.
21. Term Loan from BMW India Financial Services Pvt. Ltd {NBFC ) carries interest rate of 9.60% p. a, on reducing balance basis.
22. Unsecured Loans from Related Parties carries interest rate of 9% p.a.
23. The related party relationship is as identified by the Company and relied upon by the Auditors.
24. Transactions with related parties have been disclosed for the period of existence of relationship. Previous year transactions with parties that have ceased to be related parties in ''the current year have been excluded in above details as the relationship did not exist.
25. Figures in bracket are those as at and far the year ended 31st March, 2014.
29. No employee of the company is in receipt of remuneration in excess of the amount specified U/s 134 of the Companies Act, 2013.
26. Provision is made for Income tax liability estimated to arise on the financial results for the year at the current rate of tax in accordance with the provisions of Income Tax Act, 1961.
27. Balances and transactions of parties appearing under the head Debtors, Creditors and Advances are subject to confirmations. In opinion of the Directors, Current Assets, Loans arid Advances have the value at which they are stated in the Balance Sheet it realized in the ordinary course of business. The provision for depreciation and other known liabilities are adequate and not in excess of the amount reasonably necessary.
28. The Company has not received any intimation from the ''suppliers'' under the Micro, Small and Medium Enterprises Development Act, 2006 and therefore disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.
29. The company has only one main business segment âHosiery Goods''. Further, since virtually alt sates are effected in the domestic market, there is only one geographical segment. Therefore the disclosure requirements for'' Segment Reporting" are not applicable to the company,
30. Comparative Financial information {i.e. the amounts and other disclosure for the preceding year presented above, is included as an inelegant part of the current yearâs financial statements, and is to be react in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.
Mar 31, 2014
1 Terms/Rights, Preferences and Restrictions attached to the Equity Shares
The company has only one class of equity shares having a par value of Rs, 10 per share which does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or repayment of capital. Each holder of equity shares is entitled to one vote per share.
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
2 Security
Loan from Bank and Financial Institutions for purchase of Fixed Assets are secured against the fixed assets purchased out ot those loans.
3 Repayment Terms
a) Term Loan from Allahabad Bank is repayable in 24 equated quarterly installments of Rs, 1,02,00,000/- starting from 30.06.2011 and the last installment will be falling due on 30.06 2017.
b) Term Loan from Allahabad Bank was repayable in 11 equated quarterly installments of Rs, 17,00,000/- starting from 30.12.2010 and the last installment was due on 30.06.2013.
c) Term Loan from ICICI Bank is repayable in 20 equated quarterly installments of Rs, 50,00,000/- starting from 19.08.2012 and the last installment will be falling due on 19.08,2017.
d) Term Loan from ICICI Bank is availed only to the tune of *16,11,50,074/- out of the total loan sanctioned of Rs, 25,00,00,000/- and out of the same Rs, 86,25,883/- was repaid during the year. The same shall be repayable as per the final repayment schedule to be fixed by the bank.
e) Term Loan from ICICI Bank is repayable in 16 equated quarterly installments of Rs, 15,01,382/- starting from 30.04.2014 and the last installment will be falling due on 30.04.2018.
f) Term Loan from Kotak Mahindra Prime Ltd (NBFC) was repayable in 36 equated monthly installments of Rs, 59,535/- starting from 31 03.2011 and the last installment was due on 31.03 2014.
g) Term Loan from Daimler Financial Services (I) Pvt Ltd (NBFC) was repayable in 36 equated monthly installments of Rs, 13,889/- starting from 28.02.2014 and the last installment was due on 28.02.2017.
h) Unsecured Loans are repayable at the will of the management or lenders after three years from the date of receipt of such loan
4 The applicable rate of interest on the above term loans during the year are
a) Term Loan from Allahabad Bank carries interest rate of 13.20% p.a. on reducing balance basis.
b) Term Loan from Allahabad Bank carries interest rate of 12.20% p.a. on reducing balance basis.
c) Term Loan from ICICI Bank Ltd carries interest rate of 13.50% p.a. on reducing balance basis.
d) Term Loan from ICICI Bank Ltd carries interest rale of 13.25% p.a. on reducing balance basis.
e) Term Loan from ICICI Bank Ltd carries interest rate of 13.25% p.a. on reducing balance basis.
f) Term Loan from Kotak Mahindra Prime Ltd (NBFC) carries interest rate of 4.12% p. a, on reducing balance basis.
g) Term Loan from Daimler Financial Services (I) Pvt Ltd (NBFC) is interest free.
h) Unsecured Loans from Related Parties carries interest rate of 9% p.a.
5 No employee of the company is in receipt of remuneration in excess of the amount specified U/s 217 (2A) of the Companies Act, 1956.
6 Provision is made for Income tax liability estimated to arise on the financial results for the year at the current rate of tax in accordance with the provisions of Income Tax Act, 1961.
7 A search was conducted on 7th November, 2013 by the Income Tax Department at various business premises of the company. Since some documents and vouchers were seized, the audit has been conducted on the basis of certified photocopies of such vouchers/documents. The final tax liability arising out of the search operation shall be determined only after completion of the assessments.
8 Balances and transactions of parties appearing under the head Debtors, Creditors and Advances are subject to confirmations. In opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet if realised in the ordinary course of business. The provision for depreciation and other known liabilities are adequate and not in excess of the amount reasonably necessary.
9 The Company has not received any intimation from the ''suppliers'' under the Micro, Small and Medium Enterprises Development Act, 2006 and therefore disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.
NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2014
10 Contingent Liability not provided for in respect of:
(i) Bank Guarantee Rs, 43.87 Lacs ( Previous Year: Rs, 18.73 Lacs)
(ii) Central Excise Matters (Linder Appeal) Rs, 3.06 Lacs (Previous Year: Rs, 3.06 Lacs)
11 The company has only one main business segment "Hosiery Goods". Further, since virtually all sales are effected in the domestic market, there is only one geographical segment. Therefore the disclosure requirements for "Segment Reporting" are not applicable to the company.
12 Comparative Financial information (i.e. the amounts and other disclosure for the preceding year) presented above, is included as an integral part of the current year''s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year are regrouped and reclassified wherever necessary to correspond to figures of the current year.
Mar 31, 2013
(P) Material Events occurring after Balance Sheet date are taken into consideration.
1. Terms/Rights, Preferences and Restrictions attached to the snares
The company has only one das® of equity shares having a par value of Rs10 per share does not enjoy any preferential right or bear any restriction with regard to distribution of dividend or statement of equity shares vote per share.
2. Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date___
As per records of the Company, including its register Of members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
3. Security
Loan from Bank and Financial Institutions for purchase of Fixed Assets are secured against the fixed assets purchased out of those loans.
4. Repayment Terms
a) Term Loan from Allahabad Bank is repayable in 24 equated quarterly installment of Rs .1.02 00,000/= starting from 30.06.2011 and the Iasi installment will be falling due on 30.06.2017.
b) Term Loan from Allahabad Sank is repayable in 11 .equated quarterly installments of Rs 17,00,000 starting from 20.122010 and the Iasi incitement will be telling due on 30 16 2013
c} Term Loan from ICICI Bank is repayable in 20 equated quarterly Installments or Rs5000,000/= starting from 19.08.2012 and the last instilment will be failing due on 19.08,2017
d) Tern Loan from ICICI Bank is availed only to the tune of Rs2.70,00,000/= out of the total loan sanctioned of Rs, 25,00,00:000/= and shall be repayable as per the final re payment schedule to be fixed by the bank.
e) Term Loan from Kodak Mahindra Prime Ltd ( NBFC) is repayable in 36 equated: monthly installments of '' 59,535/= starting from 31. G3-20T1 and the last installment will be falling due on 31.03.2014
f) Unsecured Loans are repayable at (he will of (he management or enders after three years from the date of commencement,
5. The applicable rate of interest on the above term loans during the year are
a) Term Loan from Allahabad Bank carries interest rate of 13.20% p.a. on reducing balance basis
b) Term Loan from Allahabad Bank carries interest rate of 1220% p.a. on reducing balance basis.
c) Term Loan from (CICI Bank Ltd carries interest rate of 13.25% p.a. on reducing balance basis.
d) Term Loan from ICIC! Bank Ltd carries interest rate of 13,007: p.a. on reducing balance basis
e) Term Loan from Kctak Mahindra Prime Ltd ( MBFC ) carries interest rate of 4.12% p. a. on reducing Glance basis, -
f) Unsecured Loans from Related Panes carries interest rate of 9% p.a.
6. Details of Transactions entered into with related parties during the year as required by Accounting Standard (AS) - 18 on "Related Party Disclosures" issued by The institute of Chartered Accountants of India are as under:
a) Key Management Personnel:
1} Mr Din Dayal Gupta, Chairman
2) M r Vi nod Ku m a r Gupta. Man aging Di recto r
3) Mr Blriay Kumar Gupta. Whole Time Director
4) Mr Krishan Kumar Gupta, Whole Time Director
5) Mr Bajrang Lai Gupta, Whole Time Director
b) Relatives of Key Management Personnel
1) Mr Ramesh Kumar Gupta
2) Mrs Anita Gupta
3) Mrs Nitu Gupta
C) Enterprises owned or significant influenced by the Key Management personnel or their Natives :
1) Goldman Trading Pvt. Ltd
2) Simplex Impex Pvt .Ltd
3) Arnica Me Properties Pvl Ltd
4) Sn Venkateshwara Knitting
5} L M. Garments
6} Bhawani Textiles 1) Sree Krishna Enterprise
d) Details of transactions with related parties during the year / previous year
1. Key Management Personnel.
''2. Relates of Key Management Personnel.
3. Enterprises over which key management personnel anti their relatives exercise significant influence.
Notes:
1. The related party relationship is as identified by the Company and relied upon by the Auditors
2 Transactions with related parties have been disclosed for the period of existence of relationship ship. Previous year transactions with parties that have ceased to be related parties in the current year have been excluded in above details as the relationship did not exist.
3 Figures in. bracket are those as at and off for the year ended 31st March, 2012.
Notes on Financial Statements for the Year ended 31st March, 2013
7.. No employee of the company is in receipt of remuneration in excess of the amount specified U/s 217 (2A) of the Companies Act. 1956.
8.. Provision is made for Income tax liability estimated to arise on the financial results for the year at the current rate of tax in accordance with the provisions of Income Tax; Act, 1961,
9. Balances and transactions of parties appearing under the head Debtors, Creditors and Advances are subject la confirmations, In opinion of the Doctors, Currant Assets, Loans and Advances have ne value at which they are stated in the Balance Sheet if realized in the ordinary course of business. The provision for depreciation and of'' the known liabilities are adequate and not in excess of the amount reasonably necessary,
10. The Company has not received any intimation from the ''suppliers'' under the micro Small and Medium Enterprises Development Act, 2006 and therefore disclosures, if any. relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given
11. Contingent Liability not provided for in respect of:
[i] Bank Guarantee Rs18.73 Lacs f Previous Year Rs 18,73 Lacs)
(l|) Central Excise Matters
(Under Appeal) Rs 3.06 Lacs (Previous Year. Rs3.06 Lacs)
12. The company has only one main business segment "Hosiery Goods'' Further, since Virtually all sales are effected n the domestic market, there is only one geographical segment. Therefore the disclosure requirements for Segment Reporting" are not applicable to the company
Notes on Financial Statements for the Year ended 31st March, 2013
13. Comparative Financial information (i.e. the amounts and other disclosure for the preceding year) presented above, is Included as an integral part of the current years financial statements, and is to be read in relation to the amounts arc other disclosures relating to the current year Figures of the previous year are regrouped and reclassified wherever necessary to correspond lo figures of the current year.
Mar 31, 2012
1. Terms/Rights, Preferences and Restrictions attached to the Equity Shares
The company has only one class of equity shares having a par value of Rs.10 per share which, does not enjoy any preferential right or bear any resonation with regard to distribution of dividend or repayment of capital. Each holder of entitled shares is entitled to one vote per share.
2. Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date
*Out of the above, 10,39,000 shares have seen allotted on 30/12/2005 and 32,06, 100 shares have been allotted on 29/03/2007 pursuant to schemes of amalgamation without payment being received in cash.
3. Security
Loan from Bank and Financial Institutions for purchase of Fixed Assets are secured against the fixed assets purchased out of those loans.
4. Repayment Terms
a) Term Loan from Allahabad Bank is repayable in 24 equated quarterly installments of Rs.1,02 ,00,000/= starting from 30.06.2011 and the last installment will be falling due on 30.06.2017.
b) Term Loan from Allahabad Bank is repayable in 12 equated quarterly installments of Rs. 17.00.000/-Starting from 30.12.2010 and the last installment will be falling due on 30.12.2013.
c) Term Loan from ICICI Bank is repayable in 20 equated quarterly installments of Rs. 50,00,000 /= starting from 19.08.2012 and the last installment will be fall due on 19.08.2017.
d) Term Loan from Kotak Mahindra Prime Ltd (NBFC) is repayable in 36 equated monthly installments of Rs. 59,535/= Starting from 31 03.2011 and the last installment wil be felling due on 31.03 2014.
e) Ungeared Loans are repayable at the will of me management or lenders after three years from the date of commencement.
4.4 The applicable rate of interest on the above term loans during the year are
a) Term Loan from Allahabad Bank carries interest rate of 13.75% p.a on reducing balance basis.
b) Term Loan from Allahabad Bank carries interest rate of 12.75% p.a. on reducing balance basis.
c) Term Loan from ICICI Bank carries interest rate of 13,50% pa. on reducing balance basis.
d) Term Loan from Koak Mahindra Prime Ltd ( NBFC ) carries interest rate of 4.12% p a. on reducing balance basis.
e) Unsecured Loans from Related Parties carries interest rate of 9% p.a.
5. Details of Transactions entered into with related parties during the year as required by Accounting Standard (AS) - 18 on Related Party Disclosures" issued by The Institute of Chartered Accountants Of India are as under:
a) Key Management Personnel:
1) Mr. Din Dayal Gupta, Chairman
2) Mr. Vinod Kumar Gupta. Managing Director
3) Mr. Binary Kumar Gupta, Whole Time Director
4) Mr. Krishan Kumar Gupta, Whole Time Director
5) Mr. Bajrang Lal Gupta, Whole Time Director
b) Relatives of Key Management Personnel:
1) Mr. Ramesh Kumar Gupta 2) Mrs.Anita Gupta 3) Mrs.Nitu Gupta c) Enterprises owned or significantly i nflunced by the Key Management Personnel or their relatives.
1) Goldman Trading Pvt Ltd
2) Simplex Impex Pvt Ltd
3) Amicable Properties Pvt Ltd 4) Sri Venkateshwara Knitting
5) L M. Garments
6) Bhawani Textiles
7) Sree Krishna Enterprise
6.. No employee of the company is in receipt of remuneration in excess of the amount specified U/S 217 (2A) of the Companies Act 1956
7.. Provision is made for Income tax liability estimated to arise on the financial results for the year at the current rate of tax in accordance with the provisions of income Tax Act, 1961.
8. As per me provisions of section 115JAA of the Income Tax Act 1961. MAT Credit receivable to the amount in excess over tax liability as per normal computation has been recognized as an asset. MAT credit is recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to the Profit & Loss account and shown as MAT Credit Entitlement The company will review the sane at each Balance sheet and write down, the carrying amount of MAT Credit Entitlement to the extent there is no longer convince evidence to the effect that Company will pay normal income fax during the specified period.
9. Balances and transactions of parses appearing under the head Debtors. Creditors and Advances are subject to confirmations. In opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet if realized in the ordinary course or business. The provision for depreciation and other known liabilities are adequate end not m excess of the amount reasonably necessary.
10.. The Company has not received any information from the âsuppliers'' under the Micro, Small and Medium Enterprises Development Act. 2006 and therefore disclosures, if any. relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.
11. Contingent Liability not provided for in respect of:
(i) Bank Guarantee Rs.18.73 Lees (Previous Year: Rs.18. 73 Lacs)
(ii) Central Excise (Appeal) Rs. 3.06 Lacs (Previous Year: 3.06 Lacs)
12. The company has only one main business segment "Hosiery Goods". Further, since virtually all sales are effected in the domestic market, there is only one geographical segment. Therefore the disclosure requirements for âSegment Reporting" are not applicable to the company.
13. Foreign Exchange Earnings and Outgo ;
14. Note 1 to 37 form an integral part of financial statements,
The FY 2012-l3 will witness fashion revolution from Dollar. Your Company is entering to men''s lifestyle apparel segment with force, that''s why the brand name has been strategically cared "FORCE. Go Wear".
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Dollar Industries Ltd. पर और जानकारी
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Dollar Industries Ltd. टूल
- बल्क डील
- ब्लॉक डील
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Dollar Industries Ltd. कंपनी का विवरण
- कंपनी का प्रोफाइल
- कंपनी का इतिहास
- मैनेजमेंट टीम
- पूंजी ढांचा
- प्रॉडक्ट मिक्स
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कंपनी का इतिहास
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Dollar Industries Ltd. मुख्य वित्तीय अनुपात
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Dollar Industries Ltd. परिणाम
- तिमाही परिणाम
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- नौ महीने के परिणम
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Dollar Industries Ltd. Financial Data
- ऑडिट के परिणाम
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Dollar Industries Ltd. की रिपोर्ट
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Dollar Industries Ltd. कॉर्पोरेट घोषणाएं
- बुक क्लोज़र
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