ANJANI FABRICS LIMITED
ANNUAL REPORT 2009-2010
NOTES ON ACCOUNTS
A. Significant Accounting Policies
The financial statements are prepared under the historical cost convention
on the 'Accrual Concept' of accountancy in accordance with the accounting
principles generally accepted in India and comply with the accounting
standards issued by the Institute of Chartered Accountants of India to the
extent applicable and with the relevant provisions of the Companies Act,
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported amount
of revenues and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the period in which
results are known / materialized.
The Gross Block of Fixed Assets are shown at the cost which includes taxes,
duties (Net of Cenvat) and other identifiable direct expenses and interest
on borrowings attributable to acquisition of Fixed Assets upto the date of
Commissioning of the assets.
In case of new projects/expansion of existing projects, expenditure
incurred during construction/ preoperative period including interest and
finance charges on specific/general purpose loans, prior to commencement of
commercial production are capitalized. The same has been allocated to the
respective fixed assets on completion of construction / erection of the
capital project/fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection/installation are stated in the Balance Sheet as
'Capital Work in Progress.'
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amounts of its
fixed assets to determine whether there is any indication that those assets
suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of
impairment loss. Recoverable amount is the higher of an asset's net selling
price and value in use. In assessing value in use, the estimated future
cash flows expected from the continuing use of the asset and from its
disposal are discounted to their present value using a pre-tax discount
rate that reflects the current market assessments of time value of money
and the risks specific to the asset.
The company has provided depreciation on fixed assets by written Down
valued at the rates specified in schedule XIV of The Companies Act, 1956.
However depreciation is taken for the whole month in which assets is
Depreciation on additions to/deletions from fixed assets made during the
period is provided on prorata basis from / up to the month of such addition
/ deletion as the case may be.
Long term investments are stated at cost. Current investments are stated at
lower of cost and market price. Provision for diminution in the value of
long term investments is made only if such a decline is other than
temporary in the opinion of the management.
1) Grey Cloth, Colour & chemical, packing material are valued at cost.
2) Semi finish goods are valued at estimated cost as per 'Full absorption
basis' in accordance with the revised Accounting Standard-2.
3) Finished goods are valued at cost or net realizable value, whichever is
Due consideration is given to the saleability of the stock and no obsolete
or unserviceable/damaged items included therein except at their net
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other item is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing costs that are attributable to the acquisition, construction or
production of qualifying assets are capitalized as part of the cost of such
assets. A qualifying asset is one that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing costs
are charged to revenue.
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which the
related service is rendered.
Post employment and other long term employee benefits are recognized as an
expense in the profit and loss account for the year in which the employee
has rendered services.
Taxes on Income
Income tax expenses for the year comprises of current tax and deferred tax.
Current tax provision is determined on the basis of taxable income computed
as per the provisions of the Income Tax Act. Deferred tax is recognized for
all timing differences that are capable of reversal in one or more
subsequent periods subject to conditions of prudence and by applying tax
rates that have been substantively enacted by the balance sheet date.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past events
and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
B. Notes o n Accounts
1. Quantitative Information
a) Class of Goods Manufactured
ii) Printing & Dying Grey Cotton & MM Fabrics
b) Licensed/Installed Capacity:
Particular Unit 2009-10 2008-09
i) Licensed Capacity N.A. N.A.
ii) Installed Capacity
(As certified by the Management) Not Ascertained Not Ascertained
c) Information about Production, Turnover and Stock of Finished Goods:
Particulars 2009-10 2008-09
i) Finished Cloth 23291140 28531004
* After adjustment of shrinkage of 90,908 Meters (Previous Year 2,21,525
Meters) 2) Sales.
Particulars 2009-10 2008-09
Quantity Value Rs. Quantity Value Rs.
i) Finished Cloth 41523788 2022139534 31944351 1429425162
ii) Grey Cloth 1146092 33160765 2049689 57149116
iii) Job Charges - 220915288 - 200563773
Grey/Fabric Consumed 40128360 1712280461 34355914 1092573423
Grey Cloth Traded 1146092 30844689 2049689 55164523
Colour Chemical - 117219377 195723538
Finished Goods 3509860 174139701 3691196 176864432
Semi Finished Goods 911530 30012992 2216532 84590628
Grey 2522596 132356661 4088469 116345735
d) Imported and indigenous Raw-Materials, Stores and Spare parts and
Components consumed during the year:
Particulars 2009-10 2008-09
Indigenous Imported Indigenous Imported
1) RAW MATERIALS
1) Grey/Fabric 1738715653 4409497 1142004445 11742958
% Consumption 99.75% 0.25% 98.98% 1.02%
2) STORES & SPARES
Stores & Spares 32122289 6329270 43538982 11618378
% Consumption 83.54% 16.46% 78.94% 21.06%
3) COLOUR & CHEMICALS
Colour & Chemicals 103351913 13867464 192622343 3101195
88.17% 11.83% 98.42% 1.58%
e) CIF Value of Imports during the year Rs. 3,27,34,651/- (Previous Year
f) Expenditure in foreign currency: remittance in foreign Currency and
earnings in foreign currency during the year Rs. 3,23,84,080/- (Previous
Year Rs. 2,44,15,894/-)
g) Value of Export (FOB) Rs. NIL (Previous Year Rs. 30,58,938)
2. The Profit and Loss Account includes:
(i) Auditors Remuneration:
Particulars 2009-10 2008-09
For Audit 40300 140300
For Tax Audit 52200 52725
TOTAL 192500 193025
3. DEFERRED TAX
Major components of deferred tax are:
Particulars As at As at
March 31, 2010 March 31, 2009
Deferred Tax Liability
Depreciation 3157351 7138188
Deferred Tax Assets
Disallowance under the Income Tax Act, 1961
Deferred Tax Liability (Net) 3157351 7138188
4. Micro & Small Enterprises Dues
As per information given to us there were no amount overdue and remaining
outstanding to Small scale and/or ancillary Industrial suppliers on account
of principal and/or interest as at the close of the year. Based on the
information available with Company, there are no dues outstanding to Micro
and Small Enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006 for more than 45 days as at March 31, 2010.
5. Figures have been rounded off to nearest rupees.
6. Balances of Sundry Creditors, Debtors, Loans & Advance and Receivables
are subject to confirmation.
7. Previous year's figures have been regrouped/rearranged wherever
necessary so as to make them comparable with the figures of the current
8. Provision for income-tax is based on the taxable profits of the company
in accordance with the Income - tax Act, 1961.
9. Estimated amounts of contracts remaining to be executed on capital
account and not provided for Rs.16,91,631/- (Previous year Rs.42,61,843/-).
10. Contingent Liability on account duty saved due to import against EPCG
license is Rs.29,73,278/ - (Previous Year Rs.72,24,340/-), which has to be
met by fulfilling an export obligation of Rs. 2,38,26,224/- (Previous Year
Rs. 5,77,94,739/-) in eight years.
11. Amount of borrowing cost capitalized as per 'Accounting Standard-16',
during the year was Rs. NIL/- (Previous Year Rs. 8,84,138/-)
12. There are no separate reportable segments as per Accounting Standard 17
as the entire operations of the Company relate to one segments, viz. the
13. There is no lease transaction during the year as per 'Accounting
14. As required by 'Accounting Standard -20' the basic Earning Per Share
(EPS) is Rs.0.41 arrived at by dividing the Profit After Tax (PAT) by the
total number of shares issued and subscribed as at the end of the year,
15. During the year company has paid a sum of Rs. 25 Lacs to Textile
Process Association towards contribution to drainage line. The same has
been shown as Plant & Machinery WIP pending completion of the project by
16. Disclosures in respect of related parties as defined in Accounting
Standard 18, with whom transactions have taken place during the year are
(a) Associate Bodies Corporate:
Belhanuman Fabrics Pvt. Ltd.
Anunay Fab Ltd.
Gujarat Investa Ltd.
(b) Directors and their relatives:
Radheshyam Tilokchand Agarwal
Purushottam Radheshyam Agarwal
Anjani Radheshyam Agarwal
Following transactions were carried out with the related parties in the
ordinary course of business:
Particulars Associates Directors & Concerns in which
Companies Relatives Directors are
1. Sales & other Inc. 30,55,13,994 NIL 6,65,92,005
2. Purchased other Ser. 22,06,80,573 NIL 24,74,43,821
3. Remuneration NIL 1,65,600 NIL
4. Purchase of Assets NIL NIL NIL
5. Deposit Received 17,30,13,300 NIL NIL
6. Deposit Paid 15,66,30,000 NIL NIL
7. Interest Reed. NIL NIL NIL
8. Interest Paid 12,85,968 21,000 NIL
9. Rent Paid NIL 2,40,000 NIL
in Equity NIL NIL NIL
11. Balance Dr/Cr (Net) 7,97,46,506
The particulars given above have been identified on the basis of
information available with the company.
17. Earning Per Share (EPS):
Particulars 2009-10 2008-09
Profit after tax as per profit & loss Account 39,22,095 2,34,42,382
Average number of Equity Shares 95,00,000 64,10,274
(Face value Rs. 10/- each)
Basic and Diluted EPS Rs. 0.41 Rs. 3.66
AS PER OUR REPORT OF EVEN DATE
For Nahta Jain & Associates For and On Behalf of Board of Directors
Chartered Accountants, Purshottam R. Agarwal
Firm Rgn No. 106801W Anjani R. Agarwal
Radheshyam T. Agarwal
(CA Gaurav Nahta) Devendrakumar B. Nathani
Partner Ramniwas K. Pandia
Date : 01.08.2010.