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मॉडर्न सिटेक्स (इंडिया)

बीएसई: 500281  |  NSE: MODRNSYNTX  |  ISIN:  |  Textiles - Synthetic & Silk

खोजें मॉडर्न सिटेक्स (इंडिया) कनेक्शन मार्च 13
लेखांकन नीति साल : मार्च '14
1.1 Basis for preparation: The financial statements of the company have
 been prepared in accordance w ith generally accepted accounting
 principles in India (Indian GAAP). The company has prepared these
 financial statements to comply in all material aspects with the
 accounting standards notified under the Companies (Accounting
 Standards) Rules, 2006 (as amended) and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared on an
 accrual basis (unless otherwise stated) and under historical cost
 convention. The accounting policies are consistent with those used in
 previous year.
 
 1.2 Use of Estimates: The preparation of financial statements requires
 the management of the company to make certain estimates and assumptions
 that affect the amounts reported in the financial statements and notes
 thereto. Differences, if any, between actual amounts and estimates are
 recognized in the period in which the results are known / materialized.
 
 1.3 Revenue Recognition
 
 i.  Revenue from Sale of Products is recognised when the significant
 risk and rewards of ownership is transferred to the customers, net of
 returns.
 
 ii.  Sales represents invoiced value of goods supplied net of returns
 and trade discounts, and include applicable excise duty, surcharge and
 other elements as are allowed to be recovered as part of the price but
 excludes VAT/Sales Tax.
 
 iii.  Interest income is recognized on a time proportion basis taking
 into account the amount outstanding and the applicable interest rate.  
 
 iv.  Income and expenditure are recognized and accounted for on accrual
 basis except premium on redemption of debentures, which are accounted
 for as and when settled.
 
 v.  Exports entitlement under the Duty Entitlement Pass Book (DEPB)
 scheme is recognized in the Statement of Profit & Loss when the right
 to receive credit as per the terms of the scheme is established in
 respect of the exports made.
 
 1.4 Tangible Fixed Assets
 
 i. Fixed Assets are stated at cost of acquisition or construction net
 of accumulated depreciation and accumulated impairment losses, if any.
 The cost comprises purchase price, borrowings cost if capitalization
 criteria are met and directly attributable cost of bringing the assets
 to its working condition for the intended use.
 
 ii. CENVAT credit on capital goods is accounted for by reducing the
 cost of capital goods.
 
 1.5 Depreciation
 
 i. Depreciation on fixed assets is provided under the straight line
 method, at rates prescribed under Schedule XIV to the Companies Act,
 1956.
 
 ii. Depreciation is charged on plant and machinery treating the same as
 continuous process plant as per technical opinion except of Texturising
 Division, where depreciation is provided on shift basis.
 
 iii. Depreciation is charged on addition / deletion on pro-rata monthly
 basis including the month of addition / deletion.
 
 iv. Assets costing less than Rs. 5,000 acquired prior to 1st April, 1993
 are depreciated at old rates whereas such assets acquired thereafter
 are fully depreciated.
 
 1.6 Investments
 
 Long-term investments are valued at cost. Provision for diminution in
 value is made to recognize a decline, other than of temporary nature,
 in the value of such investments.
 
 1.7 Inventories
 
 i.  Inventories are stated at cost or net realizable value, whichever
 is lower.
 
 ii. Cost of raw materials is determined on FIFO basis and the cost of
 stores and spares is determined on weighted average basis. Cost
 comprises of expenditure incurred in the normal course of business in
 bringing inventories to their present location including appropriate
 overheads apportioned on a reasonable and consistent basis.
 
 iii. The net realizable value of finished goods is the estimated
 selling price in the ordinary course of business less the estimated
 cost of completion and selling expenses.
 
 iv.  Waste is valued at estimated net realizable value.
 
 v. Obsolete, slow moving, surplus and defective stocks are identified
 at the time of physical verification of stocks and necessary, provision
 is made for such stocks.
 
 1.8 Borrowing costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets till the month in which the asset is ready for use. A
 qualifying asset is one that necessarily takes substantial period of
 time to get ready for intended use.  All other borrowing costs are
 charged to revenue.
 
 1.9 Retirement and other Employee Benefits
 
 i. Contributions to defined contribution schemes towards Provident Fund
 are charged to the Statement of Profit and Loss as and when incurred.
 
 ii. The Company also provides for retirement / post-retirement benefits
 in the form of gratuity and leave encashment. Such defined benefits are
 charged to the Statement of Profit and Loss based on valuations made by
 independent actuaries using the Projected Unit Credit Method, as at the
 balance sheet.
 
 1.10 Foreign Currency Transactions
 
 i. Transactions in foreign currency are accounted in the reporting
 currency at the exchange rate prevailing on the date of transaction.
 
 ii. Monetary items denominated in foreign currency are converted at
 exchange rates prevailing on the date of Balance Sheet.
 
 iii. Foreign Exchange differences arising at the time of translation or
 settlement are recognized as income or expense in the Statement of
 Profit & Loss either under foreign exchange fluctuation or interest as
 the case may be.
 
 1.11 Taxes on Income
 
 i. Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 
 ii. Deferred tax resulting from timing differences between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the balance sheet date.
 
 iii. The deferred tax asset is recognized and carried forward only to
 the extent that there is a reasonable certainty that the assets will be
 realized in future. However, in respect of unabsorbed depreciation or
 carry forward losses, the deferred tax asset is recognized and carried
 forward only to the extent that there is a virtual certainty that the
 assets will be realized in future.
 
 iv. The carrying amount of deferred tax assets and unrecognized
 deferred tax assets are reviewed at each balance sheet date.
 
 1.12 Capital Subsidy
 
 Subsidy received under the Central / State capital subsidy scheme is
 credited to capital reserve and treated as part of shareholders'' funds.
 
 1.13 Research and Development Expenses
 
 All revenue expenditure on research and development is charged off in
 the year it is incurred. Capital expenditure on research and
 development is included in fixed assets and depreciated as per policy.
 
 1.14 Impairment of Assets
 
 The carrying amounts of tangible assets are tested for impairment at
 each Balance Sheet date. If there is any indication of impairment, the
 company estimates the recoverable amount of those assets. If the
 carrying amount of the assets exceeds the recoverable amount on the
 reporting date, the carrying amount is reduced to the recoverable
 amount. The recoverable amount is measured as the higher of the net
 selling price and the value in use determined by the present value of
 estimated future cash flows.
 
 1.15 Provisions and Contingent Liabilities
 
 i. A provision is recognized when an enterprise has a present
 obligation as a result of past events; it is probable that an outflow
 of resources will be required to settle the obligation and in respect
 of which a reliable estimate can be made. Provisions are not discounted
 to its present value and determined based on best estimate required to
 settle the obligation at the balance sheet date.
 
 ii. Contingent Liabilities are not recognized but are disclosed in the
 Notes.  Contingent liabilities are disclosed in respect of possible
 obligations that arise from past events but their existence is
 confirmed by the occurrence or non-occurrence of one or more uncertain
 future events not wholly within the control of the Corporation.
 
 1.16 Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends, if any, and attributable taxes) by the
 weighted average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effect of all dilutive potential equity shares.
 
 1.17 Liability for import duty, if any, on export obligation yet to be
 completed under EPCG Scheme is accounted for on expiry of obligation
 period / extension thereof.
 
 1.18 Fund based bank borrowings are being accounted for as debited by
 banks subject to reconciliation & confirmation. Non-fund based
 borrowings unless paid / discharged / settled by the Company are not
 accounted for.
 
 1.19 Excise duty / Custom duty is accounted for on the basis of
 payments made in respect of goods cleared as also the provision made
 for goods lying in bonded warehouse.
 
 2.1 Preference shares ofRs. 250 Lacs, Rs. 590 Lacs & Rs. 210 Lacs were
 redeemable from December 05, March 06 & April 06 respectively in 28
 equal quarterly installments without any past & future dividend as per
 settlement terms with the preference share holders. Preference Shares
 ofRs. 450 Lacs were to be redeemed at Rs. 45 Lacs as per settlement terms.
 Final redemption of Preference Shares will be on sanction of
 rehabilitation scheme by BIFR. Pending fulfillment of various terms &
 conditions of restructuring/settlement & sanction of rehabilitation
 scheme by BIFR, Rs. 1,042.41 Lacs paid (Previous YearRs. 1,042.41 Lacs) to
 Preference Shareholders has been shown as other current assets.
 
 2.5 The company has two class of shares namely equity shares having at
 par value of 7 10 per share and preference share having at par value
 ofRs. 100 per share. Each holder of equity share is entitled to one vote
 per share and each holder of preference share is entitled to ten vote
 per share. In the event of liquidation of die company, the preference
 share holders shall get priority on proportionate basis towards
 payments and the holders of the equity shares will be entitled to
 receive remaining asset of the company in proportion to the number of
 equity shares held.
 
 4.1 The company has received amount ofRs. 4,500 Lacs (Previous Year Rs.
 4,500 Lacs) towards equity share application pursuant to the
 restructuring / settlement scheme. Instruments will be issued on
 sanction of rehabilitation scheme by BIFR. Necessary increase in
 authorised share capital will be done at appropriate time. The company
 does not envisage any refund out of share application money.
 
 # Considered under other current liabilities. (Refer Note 9)
 
 5.1 Debentures, Rupee Term Loans (including working capital term loan)
 and interest accrued and due thereon are secured / to be secured by
 first charge against all existing and future immovable properties,
 hypothecation of all movable assets of the Company by way of joint
 equitable mortgage and hypothecation (save and except book debts)
 created / to be created in favour of the financial institutions / banks
 ranking pari passu and personal guarantees of some of the directors
 subject to prior charge in favour of the company''s bankers on stock of
 raw materials, semi finished / finished goods, stores and book debts
 for working capital.
 
 5.2 Foreign Currency Loans from Hypo Vereinsbank including funded
 interest and interest accrued and due is secured by corporate guarantee
 from Modem Terry Towels Limited.
 
 5.3 Terms of redemption of Non Convertible Debentures based on
 restructuring / settlement wherever carried out is as under.
 
 a) Rs. 60 Lacs were reedemed in March'' 2014 (The Payment ofRs. 60 Lacs made
 towards settlement shown as other current assets).
 
 b) Rs. 60 Lacs were to be redeemable by March'' 2013 (The payment ofRs. 60
 Lacs made towards settlement is shown as other current assets).
 
 c) Rs. 120 Lacs were to be redeemable by January'' 2013 (The payment ofRs.
 120 Lacs made towards settlement is shown as other current assets).
 
 d) Rs. 45 Lacs were to be redeemable by December'' 2012 (The payment ofRs.
 45 Lacs made towards settlement is shown as other current assets).
 
 e) Rs. 75 Lacs redeemable in 28 quarterly installments commencing from
 31st December, 2005 (The payment ofRs. 72.72 Lacs made towards settlement
 is shown as other current assets and the Installments payable in
 September'' 2012 amounting to Rs. 2.28 Lacs yet to be paid).
 
 0 Rs. 240 Lacs were to be redeemed on of before 31st March, 2009 (The
 payment of Rs. 240 Lacs made towards settlement is shown as other current
 assets).
 
 g) Rs. 20 Lacs were redeemable by 15th November, 2008 (The payment of X
 20 Lacs made towards settlement is shown as other current assets).
 
 h) Rs. 4,900 Lacs, out of which Rs. 500 Lacs were redeemable by March'' 2008
 and Rs. 4,400 Lacs were redeemable by 30th September, 2008 (The payment
 ofRs. 4,900 Lacs made towards settlement is shown as other current
 assets).
 
 i) Rs. 2,355 Lacs were redeemable in 28 staggered quarterly installments
 from 30th September, 2004 (The payment ofRs. 2,355 Lacs made towards
 settlement is shown as other current assets).  
 
 j) Rs. 97.67 Lacs of suiting division were redeemable by 2010-11 (The
 payment ofRs. 97.67 Lacs made towards settlement is shown as other
 current assets).
 
 k) Rs. 50 Lacs were redeemable in August12003 (The payment ofRs. 50 Lacs
 made towards settlement is shown as other current assets).
 
 5.4 Pending fulfillment of various terms and conditions of
 restructuring/settlement and/or satisfaction of charge, payment ofRs. 311
 Lacs towards Rupee Term Loan (including working capital term loan) is
 shown as other current assets.
 
 5.5 a) The company has defaulted in repayment of foreign currency loan
 from Hypo Vereinsbank ofRs. 8,148.42 Lacs since 1997-98 alongwith
 interest on the same.
 
 b) Exchange Fluctuation on foreign currency loan availed in DM currency
 to acquire Plant & Machinery has not been provided since 1 st April,
 2001 due to conversion of currency from DM to Euro, as there is no
 currency conversion clause in the agreement. Accordingly, foreign
 currency loan and interest thereon is stated in books at exchange rates
 prevailing on 31st March, 2001. In case, the liability is accounted for
 based on the exchange rate of Euro as on the Balance sheet date, the
 liability in respect of principal amount and interest would have been
 higher by Rs. 9,585.08 Lacs and Rs. 4,228.85 Lacs respectively (Previous
 Year Rs. 6,721.45 Lacs and Rs. 2,662.70 Lacs).
 
 c) Interest on above loan has been provided at fixed rate of 2.74% p.a.
 rather than a floating interest rate based on 6-months-DM-Libor plus a
 margin of 0.80% pa., impact of which is not ascertainable.
 
 9.1 Security of Debentures and interest accrued and due thereon are
 mentioned in para 5.1 of Note 5.
 
 9.2 Unsecured Non Convertible Redeemable Debentures (Retail) initially
 when issued were secured by way of second charge on fixed assets of
 Yarn Division of the Company, subsequently assets of Yam Division have
 been sold, hence the same is considered as unsecured debentures. The
 said debentures were to be redeemed in installments before 30th
 November, 2002 as per the resolution passed in the meeting of debenture
 holders held on 25th October, 1999, which is not paid and shall now be
 redeemed as per rehabilitation scheme to be sanctioned.
 
 93 In respect of restructured debts, future payment obligation is to be
 fulfilled as stipulated, failing which the original liability will fall
 back with interest and panel interest, amount of which is not
 ascertainable. However, SUUT1 has restored the total liabilities due to
 default in payment of OTS amount and have intimated the outstanding
 dues ofRs. 1,638.04 Crores including unsecured debts ofRs. 7 Crores, dues
 of UTI MF, overdue & penal interest etc. as per their records as on 31
 st March, 2014. The company has disputed the entire dues of UTI MF and
 is in the process of renegotiating the OTS proposal with mem and SUUTI,
 pending which, unpaid liability oft 13.60 crores as per earlier
 settelement terms is kept in books of accounts.
 
 9.4 Provision for interest amounting to Rs. 245.34 Lacs (including for
 the year Rs. 17.80 Lacs) on public fixed deposits and Rs. 665.40 Lacs
 (Including for the year Rs. 69.11 Lacs) on retail non convertible
 debentures have not been made since 1st October, 2002 as the company
 expects waiver/relief on sanction of rehabilitation scheme by BIFR.
 tl.l Plant and Machinery include 24 looms having WDV ofRs. 26.42 Lacs,
 pertaining to closed suitings division lying in the premises of third
 party. The company has filed legal suit for recovery of these
 machineries.
 
 11.2 In pursuant to Accounting Standard 28 issued by The Institute of
 Chartered Accountants of India on Impairment of Assets, the company
 has made necessary provisions during 2005-06 for the impairment loss in
 respect of its Petrofils division.  There are no primary indications
 thereafter that the recoverable amount of cash generating unit is less
 than its carrying cost. Accordingly, no further detailed excercise has
 been done to calculate the amount of impairment loss.  113 Deductions
 in Plant and Machinaries pertains to items discarded.
स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

  • MARKET CUES : FIIs ने कैश में `3127.36 Cr की बिकवाली की
  • MARKET CUES : DIIs ने कैश में `3497.5 Cr की खरीदारी की
  • MARKET CUES : FIIs ने F&O में `5503.79 Cr की खरीदारी की
  • MARKET CUES : इंडेक्स फ्यूचर्स में `2200.55 Cr की बिकवाली
  • MARKET CUES : इंडेक्स ऑप्शंस में `6881.62 Cr की खरीदारी
  • MARKET CUES : स्टॉक फ्यूचर्स में `726.32 Cr की खरीदारी
  • CITI ON INDUSIND BANK : Buy रेटिंग, लक्ष्य `1900/Sh
  • MACQUARIE ON INDUSIND BANK : Buy रेटिंग, लक्ष्य `1558/Sh
  • MACQUARIE ON CONCOR : Outperform रेटिंग, लक्ष्य `625/Sh
  • GOLDMAN SACHS ON ICICI PRU : Buy रेटिंग कायम, लक्ष्य बढ़ाकर `530/Sh

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