35th ANNUAL REPORT AND ACCOUNTS
2014 - 2015
BOARD OF DIRECTORS
Shri. V. T. Katare
Shri. K. T. Katare
Shri. S. T. Katare
Shri. S. B. Inamdar
Shri. Y. N. Konda
Shri. U. M. Mahindrakar
Mrs. V. K. Katare
Chairman & Executive Director (Expired on 27.07.2015)
Managing Director
Director
Director
Director
Director
Director (From 28.02.2015)
AUDITOR
G. M. PAWLE
Chartered Accountant
Ganesh Complex, 276, Sakhar Peth,
Solapur - 413005.
SPINNING MILL
Kamalanagar, Tamalwadi - 413 601
Tal. : Tuljapur, Dist. Osmanabad.
HOTEL TRIPURSUNDARI
Civil Lines, Solapur - 413 001
REGISTERED OFFICE
"KAMALA"
259, Sakhar Peth,
Solapur - 413 005
BANKERS
Bank of India,
Main Branch, Solapur – 413 002.
REGISTRAR & TRANSFER AGENTS
Link Intime India Pvt. Ltd.,
Akshay Complex, Block No. 202, 2nd Floor,
Opp. Dhole Patil Road,
Pune - 411 001.
E-mail : [email protected]
Katare Spinning Mills Ltd.
SOLAR POWER PROJECT
Kamalanagar, Tamalwadi - 413 601
Tal. : Tuljapur, Dist. Osmanabad.
Katare Spinning Mills Ltd.
3
K. T. KATAREManaging Director
(DIN No.-00645013)
By order of the Board of Directors
Notice is hereby given that 35th Annual General Meeting of the Shareholders of
the Company will be held on Wensday, the 30th September, 2015 at 11.00 a.m. (I.S.T.) at
C-2, M.I.D.C., Akkalkot Road, Solapur - 413006 to transact with or without modification as
may be permissible, the following business :
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2015 and
Statement of Profit and Loss for the year ended on that date and the Reports of the
Board of Directors and the Auditors of the Company
2. To appoint a Director in place of Shri. S.T.Katare who retires by rotation and being
eligible offers himself for re-appointment.
3. To appoint a Director in place of Shri. Y.N.Konda who retires by rotation and being
eligible offers himself for re-appointment.
4. Mrs.V.K.Katare was appointed as a additional director as on 28.02.2015 to comply with
SEBI requirement for appointment of a lady member on the Board of Director. The
appointment of the Mrs.V.K.Katare to be regularized.
5. To appoint Auditors in terms of section 139(I) of the company Act, 2013 and authorizing
to Board of Director to fix their remuneration.
N O T I C E
Solapur August 31, 2015
Katare Spinning Mills Ltd.
NOTES :
1. A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APOINT A PROXY TO ATTEND
AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER.
2. The proxy as per the format given in Annual Report should be duly filed, stamped, signed and
received by the Company at its Registered Office not less than 48 hours before the time for
holding the meeting.
3. Member/proxies should bring duly-filed Attendance Slips sent herewith to attend the meeting.
4. In case of joint holders attending the Meeting, only such joint holder who is higher in the order of
names will be entitled to vote.
5. The Register of Members and the Transfer Books of the Company will be closed from 23rd
September 2015 to 30th September 2015 ( both days are inclusive)
6. As per the provision of the Companies Act, 1956, facility for making nominations is available for
members in respect of shares held by them. Nomination forms can be obtained from the
Company's registrar and Transfer Agent.
7. Members are requested to intimate their email ids to the Company and also to the Company's
Registrar and Transfer Agents, Link Intime India Pvt. Limited., Akshay Complex, Block No.202,
2nd Floor opp: Dhole Patil Road, Pune - 400 001. email : [email protected]. This is
now mandatory.
8. Members may please note the contact details of the Company's Registrar and Transfer Agents,
Link Intime India Pvt. Limited., Akshay Complex, Block No.202, 2nd Floor opp: Dhole Patil
Road, Pune - 400 001. email : [email protected].
9. Members are requested to notify the change in their Address, Bank Details, E-mail etc. if any, to
the Companies Registrar and Transfer Agents. Shareholders should quote their folio
numbers./DP ID in all their correspondence with the Company and the Registrar and Transfer
agents.
10. As per Securities and Exchange Board of India ( SEBI ) notification, submission of Permanent
Account Number ( PAN ) is compulsorily required for participating in the securities market,
deletion of name of deceased share holder or transmission/transposition of shares. Members
holding shares in dematerialized mode are requested to submit the PAN details to their
Depository Participant, Whereas Members holding shares in physical form are requested to
submit the PAN details to the Companies Registrars and Transfer Agents.
11. The company has de materialized its equity shares to CDSL and NSDL and Company's ISIN
Number is INE498G01015. Members who have shares in physical form, are requested to de
materialize their shares.
12. Ministry of Company Affairs by vide circular number 17/95/2011 CL-V, has taken a green
initiative in the Corporate Governance and clarified that service of document ( Notice, Annul
Reports etc.) to member through electronic mode is in compliance with the relevant provision of
companies act, 1956. The Company is concerned about the environment and utilizes natural
resources in a sustainable way. Members are requested to register their email addresses,
through written application, with Company's Registrar and Transfer Agents to unable the
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Katare Spinning Mills Ltd.
Katare Spinning Mills Ltd.
5
Company to send notice, annual reports and other communication via email.
13. The notice of 35th Annual General Meeting and instructions for e-voting, along with the
attendance slip and Proxy Form, is being sent by electronic mode to all members whose e-mail
addresses are registered with the Company/Depository participant (s) unless a member has
requested for a hard copy of same. For members who have not registered their e-mail
addresses, physical copies of the aforesaid documents are being send by the permitted
mode.
The instructions for shareholders voting electronically are as under:
(i) The voting period begins on 24.09.2015, 09.00 A.M.(IST) and ends on 25.09.2015, 06.00
P.M.(IST) During this period shareholders' of the Company, holding shares either in physical
form or in dematerialized form, as on the cut-off 04.09.2015 of, may cast their vote electronically.
The e-voting module shall be disabled by CDSL for voting thereafter.
(ii) The shareholders should log on to the e-voting website www.evotingindia.com.
(iii) Click on Shareholders.
vi) Now Enter your User ID
a. For CDSL: 16 digits beneficiary ID,
b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
c. Members holding shares in Physical Form should enter Folio Number registered with the
Company.
(v) Next enter the Image Verification as displayed and Click on Login.
(vi) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted
on an earlier voting of any company, then your existing password is to be used.
(vii) If you are a first time user follow the steps given below:
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(viii) After entering these details appropriately, click on "SUBMIT" tab.
(ix) Members holding shares in physical form will then directly reach the Company selection screen.
However, members holding shares in demat form will now reach 'Password Creation' menu
wherein they are required to mandatorily enter their login password in the new password field.
Kindly note that this password is to be also used by the demat holders for voting for resolutions
of any other company on which they are eligible to vote, provided that company opts for e-
voting through CDSL platform. It is strongly recommended not to share your password with any
other person and take utmost care to keep your password confidential.
(x) For Members holding shares in physical form, the details can be used only for e-voting on the
resolutions contained in this Notice.
(xi) Click on the EVSN for the relevant KATARE SPINNING MILLS LTD. on which you choose to vote.
(xii) On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the
option "YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that
you assent to the Resolution and option NO implies that you dissent to the Resolution.
(xiii) Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.
(xiv) After selecting the resolution you have decided to vote on, click on "SUBMIT". A confirmation
box will be displayed. If you wish to confirm your vote, click on "OK", else to change your vote,
click on "CANCEL" and accordingly modify your vote.
(xv) Once you "CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.
(xvi) You can also take out print of the voting done by you by clicking on "Click here to print" option on
the Voting page.
(xvii) If Demat account holder has forgotten the same password then Enter the User ID and the image
verification code and click on Forgot Password & enter the details as prompted by the system.
Katare Spinning Mills Ltd.
PAN
For Members holding shares in Demat Form and Physical Form
Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable
for both demat shareholders as well as physical shareholders)
Members who have not updated their PAN with the Company/Depository
Participant are requested to use the sequence number which is printed on
Postal Ballot / Attendance Slip indicated in the PAN field.
DOB Enter the Date of Birth as recorded in your demat account or in the company records
for the said demat account or folio in dd/mm/yyyy format.
Dividend Bank Details
Enter the Dividend Bank Details as recorded in your demat account or in the company
records for the said demat account or folio.
Please enter the DOB or Dividend Bank Details in order to login. If the details
are not recorded with the depository or company please enter the member id /
folio number in the Dividend Bank details field as mentioned in instruction (iv).
(xviii) Note for Non - Individual Shareholders and Custodians
" Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are
required to log on to www.evotingindia.com and register themselves as Corporates.
" A scanned copy of the Registration Form bearing the stamp and sign of the entity should be
emailed to [email protected].
" After receiving the login details a compliance user should be created using the admin login and
password. The Compliance user would be able to link the account(s) for which they wish to vote
on.
" The list of accounts should be mailed to [email protected] and on approval of
the accounts they would be able to cast their vote.
" A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in
favour of the Custodian, if any, should be uploaded in PDF format in the system for the
scrutinizer to verify the same.
(xix) In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked
Questions ("FAQs") and e-voting manual available at www.evotingindia.com, under help
section or write an email to [email protected].
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Katare Spinning Mills Ltd.
K .T. KATAREManaging Director
(DIN No.-00645013)
By order of the Board of Directors
Solapur August 31, 2015
THE MEMBERS OF KATARE SPINNING MILLS LTD.
Your Directors have pleaser in presenting their THIRTY FIFTH Annual Report on the business
and operations of the Company together with the Audited Statement of Accounts for the year
ended 31st March,2015.
1. Financial Highlights:
DIRECTOR'S REPORT
2. OPERATIONS
Solar Power Project
The Company has already Commissioned Rooftop Solar Power Project at hotel and
has getting good benefit by way of reduction in monthly electricity bills.
Considering the involment of power part in the cost of finished goods, the Company
has decided to set up 1 MW power project for captive consumption and accordingly
pleased to inform you that the Company has successfully commissioned 1 MW solar
plant for captive consumption in the month of 22nd April 2015. This is the first net
metering installation in the Maharahstra so the Company will save the cost of
Rs.8.10 per unit and we expect about19 lacs units will be generated per annum so
that the Company will save electricity bill substantially during the current year.
8
(` in Lacs)
Particulars 2014-2015 2013-2014
3661.69
71.92
168.45
-96.53
62.72
0
-159.24
1.34
26.50
202.94
18.53
322.84
332.07
175.92
146.92
3770.13
324.41
247.16
77.25
79.88
20.71
18.08
0.39
20.83
-15.11
-17.47
321.78
304.31
0
304.31
Turnover
Profit Before Interest & Depreciation
Less : Interest
Profit before depreciation
Less : Depreciation
Add : Transfer from Revaluation Reserve
Profit after depreciation & before taxation
Add : Excess provision in the last year
Less: Tax expenses relating to previous year
Add/Less: Deferred Tax Liability/Assets
Profit / loss for the period
Add : Balance carried from previous year
Amount available for appropriation
Less : Transitional effect on revision of depreciation on
Katare Spinning Mills Ltd.
useful life of assets in accordance with schedule II
Profit carried forward
9
3. DIVIDEND
Your Directors do not recommend any dividend for the year under report.
4. DIRECTORS
(a) The Directors express their profound sorrow at the sad demise of Vijay T
Katare,who was being an ardent, philanthropist, hardworking and place on record
their deep sense of appreciation for the valuable services rendered by him during
association as a founder Director and later on a Chairman and Executive Director of
the Company prior to his demise.
(b) Miss. Vidhyawati K.Katare has been appointed as an Additional Director of the
Company w.e.f. 28.02.2015 pursuant to the provisions of Article 110 of the Articles
of Association of the Company. Miss. Vidhyawati has been associated for a long
period with the industrial family of Katare and already on the Board of other sister
companies and trusty of the Charitable institution and thus has vast experience in
the industrial and also social field which will be beneficial to the Company. This will
also fulfill the requirement of having a woman Director on the Board of Directors
under the Companies Act, 2013. She will hold office upto the date of the
forthcoming Annual General Meeting and being eligible, offers herself for being
appointed as a Director of the Company, liable to retire by rotation.
(c) Under Article 130 of Articles of Association of the Company,Mr. S.T.Katare and Mr Y
N Konda, both Directors of the company retire by rotation and being eligible offers
them self for reappointment.
5. RESERVES
No amount out of current year's profit was transferred to the General Reserves.
6. CORPORATE GOVERNANCE
Your Company believes that Corporate Governance is a code of self discipline. In the
line with this policy, the Board of Directors strongly believes that it is very important
that the Company follows healthy Corporate Governance practices and reports to
the shareholders the progress made on the various measures undertaken. The
Corporate Governance Certificate from Statutory Auditor regarding compliance of
conditions of corporate governance as stipulated in Clause 49 of the Listing
agreement is annexed with this report.
7. AUDITORS
G. M. Pawale, chartered accountants, Solapur hold office until the conclusion of the
ensuing Annual General Meeting and are eligible for reappointment. The members
are requested to re-appoint them as Auditors of the Company.
8. INTERNAL FINANCIAL CONTROL:
The Company has in place internal financial control systems, commensurate with
the size and complexity of its operations to ensure proper recording of financial and
operational information and compliance of various internal controls and other
Katare Spinning Mills Ltd.
10
Katare Spinning Mills Ltd.
regulatory and statutory compliances. The internal auditor monitors and evaluates
the efficacy and adequacy of internal control systems in the Company. Based on the
report of the internal auditor, respective departments undertake corrective action in
their respective areas and thereby strengthen the controls. Significant audit
observations and corrective actions there on are presented to the Audit Committee
of the Board.
9. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The information on conservation of energy, technology absorption and foreign
exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies
Act, 2013 read with Rule 8(3) of The Companies (Accounts) Rules, 2014, is annexed
herewith separately.
10. Secretarial Audit Report:
In terms of Section 204 of the Companies Act, 2013 and Rules made there under,
M/s. Upasani and Co., Practicing Company Secretary, Dombivli (E) has been
appointed Secretarial Auditor of the Company. The report of the Secretarial Auditor
is enclosed herewith. The report is self-explanatory however; the Company has
initiated necessary steps to comply with queries mentioned under the Secretarial
Audit Report as per the provisions of the Companies Act, 2013 and the Listing
Agreement.
11. FIXED DEPOSITS
The Company has not accepted or renewed any deposits from the public during the
year under review in terms of the Companies (acceptance of deposits) Rule,2014.
12. PARTICULARS OF EMPLOYEES
There are no employee drawing remuneration exceeding the limits prescribed
under Section 134(3) (q) read with Rule 5 of Rules 2014 and hence no details are
required to be annexed to this report.
13. SAFETY MEASURES
i. INSURANCE.
Your Company continued to cover all assets mainly; plant & machinery, building,
materials, stock, furniture & fixtures against possible risks like fire, flood, terrorism
and earthquake.
ii. INDUSTRIAL RELATIONS
The industrial relations at the plants of the Company during the year under review
continued to be cordial throughout the year.
14. LISTING OF SHARES & SECURITIES
The Company's Shares are listed on the BOMBAY STOCK EXCHANGE LIMITED
K .T. KATAREManaging Director
(DIN No.-00645013)
11
By order of the Board of Directors
Solapur August 31, 2015
15. DIRECTORS RESPOSIBILITY STATEMENT
The Board of Directors acknowledge the responsibility for ensuring compliance with
the provision of Section 134(3)(c) read with Section 134(5) of the Companies Act,
2016 in the preparation of annual accounts for the year ended on 31st March,2015
and state that
1. In the preparation of the annual accounts, the applicable accounting standard
had been followed along with proper explanation relating to material departures;
2. The directors had selected such accounting policies and applied them
consistently and made judgment and estimates that are reasonable and prudent so
as to give a true and fair view of the state of affairs of the Company at the end of the
financial year covered under this report and of the profit and loss of the Company for
that period.
3. The Directors had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this Act for
safeguarding the assets of the company and for preventing and detecting fraud and
other irregularities.
4. The Directors had prepared the annual accounts on a going concern basis.
5. The Directors had laid down internal financial control to be followed by the
Company and that such internal financial control are adequate and were operating
effectively: and
6. The Directors had devised proper systems to ensure compliance with the
provision of all applicable laws and that such systems were adequate and operative
effectively.
16. APPRECIATION
Your Directors would like to place on record their appreciation for the co-operation
and assistance received from the banks, for the utmost confidence reposed in the
management by the shareholders and customers during the year under review.
Your Directors wish to thank for the services of the executive, staff and workers of
the Company at all levels for their dedication, devotion, determination and
discipline. The Directors express their profound thanks to the shareholders for their
continued support and goodwill and they look forward to the future with confidence.
Katare Spinning Mills Ltd.
ANNEXURE TO DIRECTORS REPORT
12
Katare Spinning Mills Ltd.
578647
7011212
12.12
Sr.No
Particulars Spinning Division Hotel Division
Current Year
Previous Year
Current Year
Previous Year
a) Electricity
Purchased Units from MSEDCL 1799520
13404709
7.45
Total Amount Rs. 7692018 Rate Unit Rs.
b) Own Generation i) Diesel Generator
Unit --- -
Rate per unit Rs.
---
-
ii)
Solar Plant Unit
64490
Rate per unit Rs. -
60374
-
2398980
16882092
7.04
Information as required under rule 8 (3) of the companies (accounts) Rule 2014
A) Energy Conservation taken :
i) Switching off unwanted lights.
ii) Use of natural lights as far as possible.
iii) Humidification plants not operated during favorable climatic conditions.
iv) Control over slippage.
v) The Company has replaced HDP Ring Tubes and introduced light weight ABS Tubes for Ring Frame. Because of this the Company is getting more Yarn contents and about 1.5% power saving in the power consumption.
B) Additional investment and proposal, if any being implemented for reduction of consumption of energy. The management is actively considering different areas viz.
a) Solar Power Panel.
b) Change in Humidification Plant (Cell Type Air Washer) with the help of ATIRA where power can be saved.
c) Installation of appropriated energy saving devices.
d) Impact of measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production.
The above measures will save energy and to that extent the cost of goods produced will be reduced.
FORM "A"
A) POWER & FUEL CONSUMPTION
--- -
13
FORM "B"
RESEARCH & DEVELOPMENT
1. Specific Areas in which R & D i) R & D carried out to increase the strength
Carried out by the Company. of the yarn for better weaving results and
to supply fault - free and improved quality of
yarn for Auto Looms.
ii) Several Steps have been taken to reduce
and product faults and breakage and waste
percentage.
2. Benefits derived as result R & D Reduction in cost output, improvement in
Carried out by the company. Quality introduction of new varieties of
Yarn better marketability.
3. Future Plan of action The above activities shall continue &
more effects in this direction will be
made appropriate testing machines
& other suitable equipment are going to
be added.
4. Expenditure on R & D The separate division has been
established to act above activities and
A) Capital Rs. 380878.00 the expenditure is merged with the
B) Recurring Rs. 0.00 various expenses.
C) Total Rs. 380878.00
D) Total R & D. Expenditure
Technology absorption
Adaptation & innovation
a. Effort in brief towards technology The plants are based on indigenous
Absorption, adaptation technology. Every effort is made to know
and innovation. the latest development in technology in
India as well as abroad. Latest machines
like Rotors are installed in place of Ring
Frames as far as possible within permissible
financial resources.
b. Benefits derived as a results of After adaptation of Modern machines with
Above efforts e.g. output, latest technology the Company reduced
improvement cost reduction, considerable improvement in market
production, development import demand of our products.
substitution.
5. Details of imported Technology. No Technology has been imported during
the last 5 years.
K .T. KATAREManaging Director
By order of the Board of Directors
Solapur August 31, 2015
Katare Spinning Mills Ltd.
MANAGEMENT DISCUSSION AND ANALYSIS
14
Katare Spinning Mills Ltd.
1. Current Scenario
For the Textiles industry, the global focus is shifting from China to India due to cost and stability factors. The Government's positive steps are expected to help this shift and if foreign investment in textile retail materialises, the consumption of the textile product in the domestic market should increases in the year to come.
Recently, Government has withdrawn the requirement of export contract registration for cotton and cotton yarn and now these are in the free list, without any requirement of registration, which should boost export of cotton yarn and simultaneously, the domestic market is expected to improve.
2. Business Segment
a) Solar Power Project
The Company has already Commissioned Rooftop Solar Power Project at hotel and has got good benefit by way of reduction in monthly electricity bills.
Considering the involment of power part in the cost of finished goods, the Company has decided to set up 1 MW power project for captive consumption and accordingly pleased to inform you that the Company has successfully commissioned 1 MW solar plant for captive consumption in the month of 22nd April 2015. This is the first net metering installation in the Maharashtra so the Company will save the cost of Rs 8.10 per unit and we expect about19 lacs units will be generated per annum so that the Company will save electricity bill substantially during the current year.
b) Hotel :
Recently the Government of India has declared Smart City status to Solapur City hence a good investment will take place to develop the city. Also NTPC and Cement projects are coming up with in a short period and it help to development in tourism and increase in hotels occupancy throughout the year.
c) Textiles :
The company achieved a turnover of Rs. 3661.69 lacs as against Rs. 3770.13 lacs relating to the previous year. The gross profit of the Company recorded at Rs.71.92 lacs before interest and depreciation and net profit for the year is at Rs. 18.53 lacs as against loss of Rs.17.47 lacs for the previous year. The turnover of the Company is lower as compared to the previous year due to strike was there.
3. Outlook :
Industrial scenario in the Textile Sector remained unchanged during the year under review with stagnant domestic market and fierce competition in the international market. The company is, however, confident of sustained growth through a series of initiatives in the areas of product development, technological up gradation and strengthening of distribution network.
15
Katare Spinning Mills Ltd.
4. Internal Control Systems and their Adequacy :
The company management, which is much concerned about the adequacy of Internal Control System. It is aware that for a multi-faceted growth of any organization, only the strict overall control and efficient supervision can check all the operations, whether minor or major, and such control are backbone of any commercial establishment or manufacturing units.
The management of your company has taken appropriate steps by constituting Internal Audit team with well-experienced and hard working personnel under the supervision of Audit Committee of the Board; which frequently checks and reviews functions of various departments and effectiveness of Audit checks and revision of systems and procedures periodically.
In the year under review, the Company initiated a focused policy to evaluate the design effectiveness of existing management controls across all its locations. Under this initiative, the company also undertook steps to implement new control measures in line with global best-in-class practices.
5. The Financial and Operational Performance:
The financial statement given in the Report of the Directors for the financial year 2014-15 is quite satisfactory. It reflects the genuine steps taken by the management for transparency and best judgment for the estimate made to correctly reflect the true and fair affairs of the Company.
6. Human Resource Development:
The people of any industry serve as propeller for upliftment of the industry and thus indirectly contribute the National Product and through this to the exchequer of India. The management has always remained conscious of these inter-related factors and maintained a favorable climate during the year to suit the growth and excellence in the Company. The management has always strived to maintain cordial relationship between the staff, workers and management. This attitude created an atmosphere and every staff and worker started feeling a sense of 'ONENESS'.
7. Cautionary Statement:
The Statements in Management Discussion and Analysis Report may contain certain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the statements as important factors could influence the company's operations such as Government policies, political and economic development etc.
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None of the Directors is a member in more than ten committees and acts as chairman in more than 5 committees across all the companies in which he is a Director.
B) BOARD PROCEDURE
Agenda is sent to each Director in advance of Board and Committee meetings to enable the Board discharge to its responsibilities effectively; the Managing Director briefs the Board at every meeting on the overall performance of the Company, followed by discussion by the Directors. The Board also reviews:
Strategy and business plans, Operations and capital expenditures, Finance and Banking operations, Adoption of quarterly/half yearly/ annual results, Compliance
Katare Spinning Mills Ltd.
Directors
Category No. of other Directorship No. of other Committee positions
Public Private Member Chairman
V.T. Katare(Deceased)Shri K.T.KatareShri S.T.KatareShri S.B.InamdarShri Y.N.KondaShri. U.M. MahindrakarMrs V K Katare
Promoter chairman
Promoter M.D
Promoter Director
Independent
Independent
Independent
Director
1111111
--1--------1
------11---
--------------
CORPORATE GOVERNANCE REPORTCORPORATE GOVERNANCE
The Company is fully complianc with the mandatory requirement of clause 49 of the Listing Agreement formulated by securities and Exchange Board of India and Stock Exchanges. The Company present s its report on compliance of governance conditions specified in Clause 49 of the Listing Agreement.
1. Company's Philosophy on Code of Governance :
Your Company believes that corporate governance is powerful medium to sub serve the long-term interest of all the shareholders, creditors, customers, employees and other stakeholders. Corporate Governance strengthens investors and creditors trust and ensures a long-term partnership that helps in fulfilling our guest for achieving significant growth and profits. Your Company is committed to benchmarking itself with good governance and operates with transparency, professionalism, good conduct and value based systems.
2. Board of Directors :
The Board of Directors along with its Committees provide leadership and guidance to the Company's management and direct, supervises and controls the performance of the Company. The present strength of Board of Directors is 6(six), whose composition and category is given below:
Two - Chairman, Managing Director
Five - Independent Directors
A) THE CONSTITUTION OF THE BOARD AS ON 31st MARCH, 2015
17
3. COMIITTEE OF THE BOARD
To focus effectively on the issues and ensure expedient resolution of diverse matters, the Board has constituted a set of committees with specific terms of reference/scope. The Committees operate as empowered agents of the Board as per their Charter/terms of reference. Targets set by them as agreed with the management are reviewed periodically and mid-course corrections are also carried out. The Board of Directors and the Committees also take decision by the circular resolutions which are noted at the next meeting. The minutes of the meetings of all Committees of the Board are placed before the Board for discussions/noting.
The Board of Directors has constituted three committees of the Board - (i) The Audit Committee (ii) Remuneration Committee and (iii) Shareholders/Investors Grievance Committee.
i) Audit Committee:
The Committee's power ,role and function are as stipulates in Clause 49 of the Listing Agreement and under Section 177 of the Companies Act 2013.
COMPOSITION
During the year ended 31st March, 2015, four Meetings were held.
The composition of the Audit Committee is as follows:
Katare Spinning Mills Ltd.
with statutory/regulatory requirements and review of major legal issues, Significant labour issues.
C) ATTENDANCE OF EACH DIRECTOR AT THE BOARD MEETINGS AND THE LAST ANNUAL GENERAL MEETING
During the year ended March 31, 2015, 7 (Seven) Board Meetings were held on 30th April 2014, 31st May 2014, 31st July 2014, 31st August,2014 30th October 2014, 31st January 2015.09th March,2015 Annual General Meeting during the year was held on 30stSeptember ,2014.
Name of the Directors Category of
Directorship
No. of Board Meeting Attended
Attendance at the last AGM held on 30.09.14
V. T. Katare (deceased)
Shri. K. T. Katare
Shri. S. T. Katare
Shri. S. B. Inamdar
Shri. Y. N. Konda
Shri. U. M. Mahindrakar
Mrs V K Katare
Chairman
Managing Director
Director
Director
Director
Director
Director
7
7
7
7
7
7
1
Present
Present
Present
Present
Present
Present
Present
ii) Remuneration Committee:
The Remuneration Committee of the Company is empowered to review the remuneration of the chairman Managing Director and retirement benefits to be paid to them under the Retirement Benefit Guidelines approved by the Board, on the amount and to the non-executive directors based on criteria fixed by the Board and to deal with matters pertaining to Employee's Stock Option Scheme, if any.
BRIEF DESCRIPTION OF TERMS OF REFERENCE:
Fixation of salary, perquisites etc. of all executive directors of the Company, as and when any new executive director is appointed/ existing executive director is re-appointed; and
Deciding commission payable to executive directors based on performance of the concerned executive director and for this purpose fixes targets for achievements.
COMPOSITION :
The constitution of the Remuneration Committee is as follows :
i) Shri. S. B. Inamdar
ii) Shri. Y. N. Konda
The detail of remuneration for the year ended 31st March, 2015 paid to the Managing Director during the period is as under:
Member of Audit Committee
Position
Committee Membership
Shri. S.B. InamdarShri. Y.N. Konda
MemberMember
44
18
Katare Spinning Mills Ltd.
Director
Salary
TotalPerquisites Cont. to PF &
Other Funds
Shri. V. T. KatareShri. K. T. Katare
3,60,000/-6,00,000/-
--------
43,200/-72,000/-
4,03,200/-6,72,000/-
iii) SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE :
BRIEF DESCRIPTION OF TERMS OF REFERENCE
The "Investors Grievance Committee" of the Board, looks into various issues relating to investor grievances and to deal with matters relating to transfers/transmission of shares, and monitors redressal of complaints from shareholders relating to transfers, non-receipt of balance-sheet, non-receipt of dividends declared, issue of duplicate share certificates, etc.
COMPOSITION :
The constitution of the committee is as follows:
19
Katare Spinning Mills Ltd.
The company's shares are compulsory traded in the dematerialized form at Bombay Stock Exchange Limited where Company's shares are listed. Mr. D B Gaikwad appointed as a Compliance Officer as required by the Listing Agreement.
There were no valid share transfer requests pending as on March 31, 2015.
4. GENERAL BODY MEETINGS:
Location and time, where last three Annual General Meetings were held is given below:
Financial Year Location of the MeetingDate Time
2013-14
2012-13
2011-12
30.09.14
31.08.13
28-09-12
11.00 am
11.00 am
11.00 am
224, Civil Lines, Solapur
C-2, MIDC, Akkalkot Road, Solapur.
C-2, MIDC, Akkalkot Road, Solapur.
5. DISCLOSURES
The Company had not entered into any transactions of a material nature, which will have a conflict with its interest during the year.
The disclosure of related party transactions as required by the Accounting Standard (AS)18 on 'Related Party Disclosures issued by the Institute of Chartered Accountants of India (ICAI) is given under Note No.02 of Notes on the Annual Accounts. All the transactions covered under related party transaction were fair, transparent and at arms length.
The company has complied with all the requirements of the listing agreements with the stock exchanges as well as regulations and guidelines of SEBI. No penalties have been imposed or stricture has been issued by SEBI, stock exchanges or any Statutory Authorities on matters relating to capital markets during the last three years.
The Company has followed all relevant accounting standards notified by the Companies Accounting Standards Rules 2006 and relevant provisions of the Companies Act, 1956 while preparing its financial statements.
6. MEANS OF COMMUNICATIONS
The quarterly, half yearly and annual results are communicated to all the Stock Exchanges where the Company's shares are listed as soon as the same are approved and taken on record by the Board of Directors of the Company. Further the results are published in widely circulating national and local dailies The results are not sent individually to the shareholders.
Katare Spinning Mills Ltd.
7. CODE OF CONDUCT
The Board of Director has adopted the Code of Business Conduct and Ethics for Director and Senior Management. The said Code has been communicated to the Directors and members of the Senior Management.
8. GENERAL SHAREHOLDERS INFORMATION
a) Annual General Meeting
i) Date & Time. 30th September 2015 at 11 am
ii) Venue. C-2, MIDC, Akkalkot Road, Solapur
b) Financial Calendar (tentative)
Results for the 1st Quarter Ending 30th June, 2015 Last Week July 2015
Result for the 2nd Quarter/Half Year Ending 30th Sep.2015 Last Week October 2015
Result for the 3rd Quarter Ending 31st December, 2015 Last Week January 2016
Results for the Quarter/Year Ending 31st March,2016 Last Week May 2016
c) Book Closure Date (Both days inclusive) Tuesday, 23rd September, 2015 to
Tuesday 30th September 2015
d) Listing on Stock Exchanges The Bombay Stock Exchange Ltd.,
Mumbai.
e) Stock Code Physical segment - BSE- 502933
NSDL / CSDL - ISIN : INE -498G01015
f) Stock Market Data
The monthly high and low Prices during the year at BSE are as follows :
20
Month
April 2014
May 2014
June 2014
July 2014
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
Mumbai Stock Exchange
High ` Low `
23.00
21.60
19.50
27.80
27.40
26.90
37.50
26.50
21.50
23.50
24.00
21.35
23.00
22.85
19.50
27.80
24.95
29.90
37.90
26.50
21.50
22.70
24.00
21.35
21
Katare Spinning Mills Ltd.
Sr.No.
Promoters ( Including Promoters Body Corporate)
Body Corporate
Resident Individuals
Non Resident Indian
Clearing Member
Category No. of Shares % (Percentage)
TOTAL
1
2
3
4
5
1749268
161151
933117
4151
2313
28,50,000
61.26
05.64
32.87
00.15
00.08
100.00
g) Share holding pattern as on 31.03.2015
h) Distribution of Share holding as on 31.03.2015
No. of Shares held %No. of Shareholders No. of Shares %
1 to 5000
5001 to 10000
10001 to 20000
20001 to 30000
30001 to 40000
40001 to 50000
50001 to 100000
100001 to onwards
1553
100
43
19
14
10
16
20
87.49
05.64
02.42
01.07
00.79
00.56
00.90
01.13
2390880
849180
660000
487310
501620
448530
1152680
22064020
08.39
02.98
02.32
01.71
01.76
01.57
04.04
77.42
i) Registrar and Share Transfer Agent : Link Intime India Pvt. Ltd.,
Akshay Complex, Block No. 202, 2nd Floor,
Off. : Dhole Patil Road, Pune - 411 001.
E-mail : [email protected]
j) Share Transfer System :
Trading in Equity shares of the company is permitted only in dematerialized form as per notification issued by the Securities & Exchange Board of India (SEBI), Link Intime India Pvt. Ltd., Pune handless both Demat and physical share transfers.
The Share transfers which are received in physical form are processed and the share certificate are returned within 21 days from the date of receipt, subject to Documents being valid and complete in all respects.
The Shareholders/Investores Grievance Committee meets periodically to consider the transfer and other proposals and attend to shareholders grievances.
k) DEMATERIALISATION OF SHARES
As on 31st March, Equity shares were in dematerialized form representing 33.04% of the total share capital.
22
Katare Spinning Mills Ltd.
As provide under Clause 49 of the Listing Agreement with the Stock Exchange, all Board members and
senior management personnel have affirmed compliance with Katare Spinning Mills Ltd. Code of
Business conduct and ethics for the year ended March 31, 2015.
DECLARATION
K.T. KATAREManaging Director
By order of the Board of Directors
Solapur 31st, August 2015
l) PLANT LOCATION : SPINNING MILLS
Kamala Nagar, Tamalwadi,
Tal. Tuljapur, Dist. Osmanabad.
HOTEL
224, Civil Lines, Solapur.
SOLAR PLANT
Kamala Nagar, Tamalwadi,
Tal. Tuljapur, Dist. Osmanabad.
m) ADDRESS FOR CORRESPONDENCE : Link Intime India Pvt. Ltd.,
Akshay Complex, Block No. 202, 2nd Floor,
Opp. Dhole Patil Road, Pune - 411 001.
Katare Spinning Mills Ltd.
Form No. MR-3
SECRETARIAL AUDIT REPORT
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED: 31.03.2015
To,
The Members
KATARE SPINNING MILLS LIMITED
SOL APUR-413005
We have conducted the secretarial audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by KATARE SPINNING MILLS
LIMITED (hereinafter called the company). Secretarial Audit was conducted in a manner
that provided us a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
Based on our verification of the company's books, papers, minute books, forms and
returns filed and other records maintained by the company and also the information
provided by the Company, its officers, agents and authorized representatives during the
conduct of secretarial audit, we hereby report that in our opinion, the company has,
during the audit period covering the financial year ended on March 31, 2015 complied
with the statutory provisions listed hereunder and also that the Company has proper
Board-processes and compliance-mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter:
23
Katare Spinning Mills Ltd.
We have examined the books, papers, minute books, forms and returns filed and
other records maintained by the Company for the financial year ended on March 31,
2015 according to the
provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules
made there under.
(iii) The Depositories Act, 1996 and the Regulations and Byelaws framed there
under;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations
made there under to the extent of Foreign Direct Investment and Overseas
Direct Investment. During the audit period, there were no Foreign Direct
Investment, Overseas Direct Investment and External Commercial
Borrowing.
(v) The following Regulations and Guidelines prescribed under the Securities
and Exchange Board of India Act, 1992 ('SEBI Act'):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 1992;
(c) The Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2009 (Not Applicable to the
Company during the Audit Period);
(d) The Securities and Exchange Board of India (Employee Stock Option
Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. (Not
Applicable to the Company during the Audit Period);
(e) The Securities and Exchange Board of India (Issue and Listing of Debt
Securities) Regulations, 2008 (Not Applicable to the Company during the
Audit Period);
(f) The Securities and Exchange Board of India (Registrars to an Issue and
Share Transfer Agents) Regulations, 1993 regarding the Companies Act and
dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2009 (Not Applicable to the Company during the Audit Period);
and
(h) The Securities and Exchange Board of India (Buyback of Securities)
Regulations, 1998 (Not Applicable to the Company during the Audit Period);
24
Katare Spinning Mills Ltd.
As per the minutes of the meetings duly recorded and signed by the Chairman, the
decisions of the Board were unanimous and no dissenting views have been
recorded.
We further report that there are adequate systems and processes in the company
commensurate with the size and operations of the company to monitor and ensure
compliance with applicable laws, rules, regulations and guidelines
Dombivali
25th August 2015
For H B Upasani & Co.Company Secretaries
H B UpasaniProprietor
Membership No. FCS-4891 COP-5966
25
Katare Spinning Mills Ltd.
Annexure A to the Secretarial Audit Report
To,
The Members
KATARE SPINNING MILLS LIMITED
SOLAPUR-413005
Our report of even date is to be read along with this letter,
1. Maintenance of secretarial record is the responsibility of the management of
the Company. Our responsibility is to express an opinion on these secretarial
records based on our audit.
2. We have followed the audit practices and processes as were appropriate to
obtain reasonable assurance about the correctness of the contents of the
secretarial records. The verification was done on the random test basis to
ensure that correct facts are reflected in secretarial records. We believe that
the processes and practices, we followed provide a reasonable basis for our
opinion.
3. We have not verified the correctness and appropriateness of financial
records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation
about the compliance of laws, rules and regulations and happening of
events etc.
5. The compliance of the provisions of Corporate and other applicable laws,
rules, regulations, standards is the responsibility of management. Our
examination was limited to the verification of procedures on the random test
basis.
6. The Secretarial Audit report is neither an assurance as to the future viability
of the company nor of the efficacy or effectiveness with which the
management has conducted the affairs of the company.
For H B Upasani & Co.Company Secretaries
H B UpasaniProprietor
Membership No. FCS-4891 COP-5966
Dombivali
25th August 2015
26
Katare Spinning Mills Ltd.
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
as on financial year ended on 31.03.2015
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company
(Management & Administration ) Rules, 2014.
I REGISTRATION & OTHER DETAILS:
i
ii
iii
iv
v
vi
vii
CIN
Registration Date
Name of the Company
Category/Sub-category of the Company
"Address of the Registered office &
contact details"
Whether listed company
Name , Address & contact details of the
Registrar & Transfer Agent, if any.
L17199PN1980PLC022962
8/8/1980
KATARE SPINNING MILLS LIMITED
COMPANY LIMITED BY SHARES
"KAMALA",259, SAKHAR PETH,
SOLAPUR-413005
YES
Link Intime India Pvt Ltd,Akshay Complex,
Block No. 202, 2nd Floor,Opp.Dhole Patil Road,
Pune-411001
:
:
:
:
:
:
:
II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated
Name & Description of main products/services
SPINNING Cotton Yarn 88.21
HOTEL Hotel Servises 11.79
NIC Code of the Product /service
% to total turnover of the company
SL No
1
2
III PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES
There are no holding subsidiary and associate companies as defined under Companies Act,2013
Name & Address of the CompanySL No CIN/GLN HOLDING/SUBSIDIARY/ASSOCIATE
% OF SHARES HELD
APPLICABLE SECTION
27
Katare Spinning Mills Ltd.
IV. SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)
Category of Shareholders %
change
Demat Physical Total % of
Total
Shares
Demat Physical Total % of
Total
Shares
A. Promoters
(1) Indian
a) Individual/HUF 328756 1266312 1595068 55.86 320754 1266312 1587066 55.58 0.28
b) Central Govt.or
State Govt. 0 0 0 0 0 0 0 0 0
c) Bodies Corporates 0 0 0 0 0 0 0 0 0
d) Bank/FI 0 0 0 0 0 0 0 0 0
e) Any other 38146 124034 162180 5.68 38146 124056 162202 5.68 0.00
SUB TOTAL:(A) (1) 366902 1390346 1757248 61.54 358900 1390368 1749268 61.26 0.28
(2) Foreign
a) NRI- Individuals 0 0 0 0 0 0 0 0 0
b) Other Individuals 0 0 0 0 0 0 0 0 0
c) Bodies Corp. 0 0 0 0 0 0 0 0 0
d) Banks/FI 0 0 0 0 0 0 0 0 0
e)
Any other… 0 0 0 0 0 0 0 0 0
SUB TOTAL (A) (2) 0 0 0 0 0 0 0 0 0
Total Shareholding of
Promoter
(A)= (A)(1)+(A)(2) 366902 1390346 1757248 61.54 358900 1390368 1749268 61.26 0.28
B. PUBLIC SHAREHOLDING
(1) Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 0
b) Banks/FI 0 4400 4400 0.15 7350 4400 11750 0.41 -0.26
C) Cenntral govt 0 0 0 0 0 0 0 0 0
d) State Govt. 0 0 0 0 0 0 0 0 0
e) Venture Capital Fund 0 0 0 0 0 0 0 0 0
f) Insurance Companies 0 0 0 0 0 0 0 0 0
g) FIIS 0 0 0 0 0 0 0 0 0
h) Foreign Venture
Capital Funds 0 0 0 0 0 0 0 0 0
i) Others (specify) 0 0 0 0 0 0 0 0 0
SUB TOTAL (B)(1): 0 4400 4400 0.15 7350 4400 11750 0.41 -0.26
No. of Shares held at the beginning of
the year
No. of Shares held at the end of the year
28
c) Others (specify)
Market Maker 2447 0 2447 0.09 2313 0 2313 0.08 0.00
Non Resident Indian (non repat) 536 0 536 0.02 536 0 536 0.02 0.00
Non Resident Indian (repat) 0 0 0 0.00 3615 0 3615 0.13 -0.13
SUB TOTAL (B)(2): 862552 225800 1088352 38.30 866704 227700 1094404 38.33 -0.02
Total Public Shareholding
(B)= (B)(1)+(B)(2) 862552 230200 1092752 38.46 874054 232100 1106154 38.74 -0.28
C. Shares held by Custodian
for
GDRs & ADRs
0 0 0 0 0 0 0 0 0
Grand Total (A+B+C) 1229454 1620546 2850000 100 1232954 1622468 2855422 100
(2) Non Institutions
a) Bodies corporates 97037 9565 106602 3.73 151586 9565 161151 5.64 -1.91
i) Indian 0 0 0 0 0 0 0 0 0
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals 0 0 0 0 0 0 0 0 0
i) Individual shareholders
holding nominal share capital
upto Rs.1 lakhs
349754 216235 565989 20.01 340543 218135 558678 19.57 0.45
ii) Individuals shareholders
holding nominal share capital in
excess of Rs. 1 lakhs
412778 0 412778 14.46 368111 0 368111 12.89 1.56
Katare Spinning Mills Ltd.
(ii) SHARE HOLDING OF PROMOTERS
Sl No. Shareholders Name % change
in share
holding
during the
year
NO of
shares
% of total
shares
of the
company
% of shares
pledged
encumbered to
total shares
NO of
shares
% of total
shares
of the
company
% of shares
pledged
encumbered
to total
shares
1 Geeta Anilkumar Kapatkar 200 0.0070 0 200 0.0070 0 0.0000
2 Sunita Prashant Achalkar 200 0.0070 0 200 0.0070 0 0.0000
3 Vanita Tulshidas Katare 200 0.0070 0 200 0.0070 0 0.0000
4 Nanda Tulshidas Katare 200 0.0070 0 200 0.0070 0 0.0000
5 Tulsidas Tippanna Katare 329204 11.5510 0 329204 11.5510 0 0.0000
6 Vijay Tippanna Katare 293489 10.2979 0 285539 10.0189 0 0.2790
7 Subhash Tippanna Katare 326205 11.4457 0 326205 11.4457 0 0.0000
8 Shakuntala Tulsidas Katare 50527 1.7729 0 53447 1.8753 0 -0.1024
9 Umavati Vijay Katare 55107 1.9336 0 55787 1.9574 0 -0.0238
10 Kishor Tippanna Katare 324667 11.3918 0 324667 11.3918 0 0.0000
11 Tippanna Tulsiram Katare 286236 10.0433 0 286236 10.0433 0 0.0000
12 Sushama Subhash Katare 8000 0.2807 0 8000 0.2807 0 0.0000
13 Ambutai Abhaykumar Telkar 2600 0.0912 0 2600 0.0912 0 0.0000
14 Jaishree Venkatesh Mahindrakar 1700 0.0596 0 1700 0.0596 0 0.0000
15 Chhaya Umakant Mahindrakar 1700 0.0596 0 1700 0.0596 0 0.0000
16 Mahindrakar Umakant Mahadev 7478 0.2623 0 7478 0.2623 0 0.0000
17 Katare Sachin Subhash 3150 0.1105 0 3150 0.1105 0 0.0000
18 Katare Subhash Tippanna 9800 0.3438 0 9800 0.3438 0 0.0000
19 Vidhyavati Kishor Katare 10300 0.3614 0 10300 0.3614 0 0.0000
20 Katare Kirti Kishor 8418 0.2953 0 8418 0.2953 0 0.0000
21 Katare Kritika Kishor 8800 0.3087 0 8800 0.3087 0 0.0000
22 Kishor Tippanna Katare 25467 0.8936 0 25415 0.8917 0 0.0019
23 Umakantrao M Mahindrakar 0 0.0000 0 22 0.0007 0 -0.0007
Total 1757248 61.5308 0 1749268 61.3769 0 0.1539
Shareholding at the
begginning of the year
Shareholding at the
end of the year
29
Katare Spinning Mills Ltd.
(iii) CHANGE IN PROMOTERS' SHAREHOLDING ( SPECIFY IF THERE IS NO CHANGE)
Sl. No.
No. of Shares
% of total
shares of the
company
No of shares
% of total
shares of
the
company
At the beginning of the year 1757248 61.5308
At the end of the year 1757248 61.5308 1757248 61.5308
Share holding at the
beginning of the Year
Cumulative Share holding during
the year
(iv) Shareholding Pattern of top ten Shareholders (other than Direcors, Promoters & Holders of
GDRs & ADRs)
No.of shares at
the beginning
(01.04.14)/end
of the
year(31.03.15)
% of total
shares of the
company
No of shares
% of total
shares of the
company
90011 3.1583 01.04.2014
115605 4.0563 31.03.2015
0 0 01.04.2014
28958 1.016 31.03.2015
62282 2.1853 01.04.2014
55065 1.9321 31.03.2015
76429 2.6817 01.04.2014
76429 2.6817 31.03.2015
50000 1.7543 01.04.2014
50000 1.7543 31.03.2015
49495 1.7366 01.04.2014
49495 1.7366 31.03.2015
48831 1.7133 01.04.2014
48831 1.7133 31.03.2015
31348 1.0999 01.04.2014
37595 1.3191 31.03.2015
22156 0.7774 01.04.2014
22156 0.7774 31.03.2015
10818 0.3796 01.04.2014
10818 0.3796 31.03.20150.3796
10 Anjana Sinha 0
Nil Movement
during the year10818
1.3191
9 Mohan Ramkrishna Chavdekar0
Nil Movement
during the year22156 0.7774
8 Kamal Marketing pvt Ltd6247
Movement
during the year37595
49495 1.7366
7 VSL Securities0
Nil Movement
during the year48831 1.7133
5
6 Krishnagopal Motilal Chandak0
Nil Movement
during the year
Heena Kirti Joshi0
Nil Movement
during the year
3 Jhaveri Securities Ltd-7217
Movement
during the year55065
4 Preeti Krishnagopal Chandak0
Nil Movement
during the year76429
28958Movement
during the year28958
50000 1.7543
1.9321
2.6817
1.0160
Reason
Cumulative Shareholding
during the year (01.04.2014 to
31.03.2015)
1 Balram Bharwani25594
Movement
during the year115605 4.0563
Sl. No Name
Shareholding
DateIncrease/
decrease
2 Rahul kathade
30
Katare Spinning Mills Ltd.
(v) Shareholding of Directors & KMP
V. INDEBTEDNESS (Rs. In Lacs)
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans
excluding
deposits
Unsecured
Loans
Deposits Total
Indebtedness
i) Principal Amount 2060.12 0.00 0.00 2060.12
ii) Interest due but not paid 70.06 0.00 0.00 70.06
iii) Interest accrued but not due 3.81 0.00 0.00 3.81
Total (i+ii+iii) 2134.00 0.00 0.00 2134.00
62.96 428.42 0.00 491.38
2173.85 428.42 2602.27
ii) Interest due but not paid 18.35 18.35
iii) Interest accrued but not due 4.75 4.75
Total (i+ii+iii) 2196.96 428.42 2625.38
Net Change
i) Principal Amount
Change in Indebtedness during
the financial year
Additions
Reduction
Indebtness at the beginning of
the financial year
Indebtedness at the end of the
financial year
No.of shares
at the
beginning
(01.04.14)/en
d of the
year(31.03.15
)
% of total
shares of
the
company No of
shares
% of total
shares of
the
company
A Directors
336005 11.7895 01.04.2014
336005 11.7895 31.03.2015
10300 0.3614 01.04.2014
10300 0.3614 31.03.2015
B KMPs
293489 10.2979 01.04.2014
285539 10.0189 31.03.2015 285539 10.0189
350134 12.2854 01.04.2014
350082 12.283531.03.2015
350082 12.2835
2
Kishor Tippanna Katare
52 Movement
during the year
0Nil Movement
during the year10300
1
Vijay Tippanna Katare
7950 Movement
during the year
0.3614
Cumulative
Shareholding during
the year (01.04.2014
1
Subhash Tippanna Katare
0Nil Movement
during the year336005 11.7895
Sl.
NoName
Shareholding
DateIncrease/d
ecreaseReason
2
Vidhyavati Kishor Katare
31
Katare Spinning Mills Ltd.
VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A.Remuneration to Managing Director
Sl.No Particulars of Remuneration
1
1
- -
2 Stock option - -
3 Sweat Equity - -
4 Commission - -
as % of profit
others (specify)
5 Others, please specify - -
Total (A) 672000
Ceiling as per the Act N.A.
2 Shri Vijay T Katare Chairman and Executive Director
1
- -
2 Stock option - -
3 Sweat Equity - -
4 Commission - -
as % of profit
others (specify)
5 Others, please specify - -
Total (A) 403200
Ceiling as per the Act N.A.
(a) Salary as per provisions contained in
Gross salary
600000
Total AmountName of the MD/WTD/Manager
Shri Kishore T Katare Managing Director
(b) Value of perquisites
u/s 17(2) of the Income
tax Act, 1961 43200 403200
(c ) Profits in lieu of
salary under section
17(3) of the Income Tax
Act, 1961
72000 672000
Gross salary
(a) Salary as per provisions contained in 360000
(b) Value of perquisites
u/s 17(2) of the Income
tax Act, 1961
(c ) Profits in lieu of
salary under section
17(3) of the Income Tax
Act, 1961
32
Katare Spinning Mills Ltd.
B. Remuneration to other directors:
Sl.No Shri Subhash
T katare
Shri U M
Mahindrakar
Shri S B Inamdar Shri Y N
Konda
Mrs
Vidhyvati
k katare
1 Independent Directors 12000 12000 12000 12000 1500
(b) Commission - - - - -
(c ) Others, please specify - - - - -
Total (1) 12000 12000 12000 12000 1500
2 Other Non Executive Directors
- - - - -
(b) Commission - - - - -
(c ) Others, please specify. - - - - -
Total (2) - - - - -
Total (B)=(1+2) 12000 12000 12000 12000 1500
Total Managerial Remuneration 1136700 #
Overall Cieling as per the Act. N.A.
(a) Fee for attending
board committee meetings
Particulars of Remuneration
(a) Fee for attending board committee meetings
#Total Remunaration to whole Time Directors and other Directors (being the total of A& B)
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Sl. No. Total
Gross Salary CEO Company
Secretary
CFO Total
Key Managerial PersonnelParticulars of Remuneration
1
There are no any key managerial personnel other than MD/MANAGER/WTD as defined under Companies Act 2013
VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES
Type
Section of
the
Companie
s Act
Brief
Description
Details of
Penalty/Punis
hment/Compo
unding fees
imposed
Authority
(RD/NCLT/
Court)
Appeall
made if any
(give
details)
There is no any Penalties / Punishment / Compounding of Offences incurred during the year
33
34
TO THE MEMBERS OF KATARE SPINNING MILLS LIMITED,
Report on the Financial Statements
I have audited the accompanying financial statements of KATARE SPINNING MILLS LIMITED ("the company"), which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial statements based on my audit.
I have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
I conducted my audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors,
INDEPENDENT AUDITOR'S REPORT
Katare Spinning Mills Ltd.
as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the financial statements.
Opinion
Attention is drawn to the following:
a. As stated in Note No. 15 to the accounts, the company has included in other non-current assets a sum of Rs. 428.00 lacs as deferred interest expenditure. In the past the company had availed a term loan ICICI Bank Ltd (which was under OTS with them) which was subsequently assigned by ICICI to Kotak Mahindra Bank Ltd. Consequent upon assignment The Kotak Mahindra Bank Ltd had filed suit against the company in DRAT for recovery. The company has settled the said loan with Kotak Mahindra Bank Ltd for an agreed amount of Rs. 750 lacs of which Rs. 325 lacs was deposited before DRAT and Rs. 425 lacs is paid on or before 31/05/2013 and accordingly no balance is now outstanding.
b. The company had a transferred balance in Capital Reserve of Rs. 150 lacs when the loan was settled with ICICI Bank Ltd. The said balance is now reversed from Capital Reserve and balance Rs. 600 lacs represent the amount of interest from the year 2002 to the date of settlement. The company has deferred this interest amount of Rs. 600 lacs to be written off over a period of 7 years and have accordingly charged Rs. 86 lacs each year in the last two years but has not charged Rs. 86.00 lacs to the statement of profit and loss for the year under audit and balance Rs. 428.00 lacs is carried as deferred revenue expenditure.
c. Had the items reported in para 4 (b) and (c) above been charged to the statement of profit and loss, the profit for the year of Rs. 18.53 lacs would have been resulted into loss of Rs. 502.22 lacs. To that extent it has resulted into overstatement of year end net Current Assets and Reserves and Surplus by Rs. 502.22 lacs.
d. No provision is made for payment for gratuity on actuarial basis as on 31st March 2015 hence its impact on the net profit could not be ascertained as referred to Note. No. 27(b) in the notes on accounts.
In my opinion and to the best of my information and according to the explanations given to me, except as reported in para 4(a) to (e) above, the financial statements give the information required by the Act in the manner so required and except as reported in para 4(a) to (e) above, give a true and fair view in conformity with the accounting principles generally accepted in India:
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, I give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, I report that:
a) I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.
b) In my opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
35
Katare Spinning Mills Ltd.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In my opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.
f) In my opinion and to the best of my information and according to the explanations given to me, I report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
g) In my opinion, the company has adequate internal financial control systems in place and the same are effective and commensurate with the nature of business of the company and the scale of its operations.
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
36
Place : Solapur
Date : 31st August 2015
G M PAWLEChartered Accountant
Membership No. : 032561
Katare Spinning Mills Ltd.
Referred to in paragraph 1 of our report of even date under the heading "Report on Other Legal and Regulatory Requirements"
(i) In respect of its fixed assets:
a)The Company has maintained proper records showing full particulars, including quantitative details and the situation of the fixed assets.
b) Fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in my opinion, provides for physical verification of all the fixed assets at reasonable intervals. No material discrepancies were noticed on such verification.
(ii) In respect of its inventory:
a) The inventories of finished goods, semi-finished goods, stores, spare parts and raw materials were physically verified at regular intervals by the Management.
b) The procedures of physical verification of inventories followed by the Management
c) were reasonable and adequate in relation to the size of the Company and the nature of its business.
d) The Company has maintained proper records of its inventories. According to information and explanation given to me, the discrepancies noticed on physical verification of stocks as compared to book records were not material and have been properly dealt with in the books of account.
(iii) The Company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 and therefore paragraph 3(iii) of the Order is not applicable.
(iv) In my opinion, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods and services. During the course of my Audit, I have not observed any continuing failure to correct major weaknesses in internal control.
(v) The company has not accepted any deposits from the public during the year except the unsecured advances received from the directors and their relatives/associates.
2013 and are of the opinion that prima facie the prescribed cost records have been made and maintained. I have, however, not made a detailed examination of these records with a view to determining whether they are accurate or complete.
(vi) I have broadly reviewed the cost records maintained by the Company pursuant to the the Rules made by the Central Government under Section 148(1) of the Companies Act,
37
Katare Spinning Mills Ltd.
Annexure to the Auditors' Report
38
(vii) In respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, Sales Tax, VAT, Cess and other material statutory dues in arrears/were outstanding as at 31 March, 2015 for a period of more than six months from the date they became payable.
c) There were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund
(viii) The company does not have the accumulated losses at the end of financial year. The company has not incurred any cash losses during the financial covered by my Audit and the immediately preceding financial year.
In arriving at the accumulated losses and net worth as above, I have considered the quantifications which are quantifiable in the audit reports of the years to which these losses pertain.
(ix) The Company has not defaulted in the repayment of dues to financial institutions and banks except the Special Capital Incentive in the form of loan of Rs. 3,16,139 which remained unpaid as at the date of the Balance Sheet.
(x) The company has not given any guarantee for loans taken by others from banks or financial institutions during the year.
(xi) The Term loans taken by the company have been applied for the purpose for which they were raised.
(xii) To the best of my knowledge and according to the information and explanations given to me, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
Katare Spinning Mills Ltd.
Place : Solapur
Date : 31st August 2015
G.M.PAWLEChartered Accountant
Membership No. : 032561
39
BALANCE SHEET AS AT 31st MARCH 2015
ParticularsSr.No.
NoteNo.
As At31st March 2015
Rs.
As at31st March 2014
Rs.
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share Capital
(b) Reserves and surplus
28500000
81067462
A
1
Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (net)
(c) Other long-term liabilities
(d) Long-term provisions
2
117137543
0
475452
0
113440481
12263000
380857
0
Current liabilities
(a) Short-term borrowings
(b) Trade payables
(c) Other current liabilities
(d) Short-term provisions
3
144925020
26775323
4468267
1964908
99578305
11363289
14237309
1275294
TOTAL 398981369 384177236ASSETS
Non-current assets
(a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Capital work-in-progress
including Advances
B
1
Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short-term loans and advances
(f) Other current assets
0
26271974
9800349
22640464
8059985
14578799
TOTAL 398981369 384177236
(b) Non-current investments
(c) Long-term loans and advances
(d) Other non-current assets
(e) Deferred tax Assets (net)
11100
0
88482160
2
5
6
7
8
9
10
11
12.A
12.B
12.C
16
17
18
19
20
13
14
15
6
3
4
118416142
46631
102363617
11200
0
88244692
8031000
0
19573978
11183003
29632818
12037779
9440508
140431023
60829
73840553
In terms of my report attached.
Notes forming part of the financial statements 1-30
For and on behalf of the Board of Directors
K. T. KATARE (Managing Director)
S. T. KATARE (Director)
Mrs. V.K. KATARE (Director)
G.M.PAWLEChartered Accountant
Place : Solapur
Date : 31st August 2015
28500000
96806095
Katare Spinning Mills Ltd.
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2015
40
In terms of my report attached.
Notes forming part of the financial statements 1-30For and on behalf of the Board of Directors
K. T. KATARE (Managing Director)
S. T. KATARE (Director)
Mrs. V.K. KATARE (Director)
G.M.PAWLEChartered Accountant
Place : Solapur
Date : 31st August 2015
ParticularsSr.No.
NoteNo.
For the yearended 31stMarch 2015
For the yearended 31stMarch 2014
Revenue from operations
Other income
Total revenue (1+2)
Expenses
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade
(d) Employee benefits expense
(e) Finance costs
(f) Depreciation and amortisation expense
Depreciation for the year
Transfer from revaluation reserve
(g) Other expenses
Total expenses
Profit before exceptional and
extraordinary items and tax (3 - 4)
Exceptional items
Profit before extraordinary items and tax (5+6)
Extraordinary items
Profit before tax (7 + 8)
Tax expense :
Less : Current tax expense for current year
Less : Tax expense relating to previous year
(including MAT)
Add : Excess bonus provision reversed
Add : Excess provision of Dividend distribution Tax
Add / Less : Deferred tax
Profit / (Loss) from continuing operations (9 +10)
Profit / (Loss) from discontinuing operations
Profit / (Loss) for the year (11 + 12)
Earnings per share (of 10/- each):
(a) Basic
(b) Diluted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
21
22
23.a
23.b
23.c
24
25
12
26
355776546 363931296
10392914 13081437
366169459 377012733
88024554 126865710
200311732 157714000
-5131818 5634571
25440715 27835233
16844733 24716409
6271623 7987961
0 2070890
40068776 37790824
382093952 375204676
-15924492 1808057
0 0
2650234 2104842
133893 38663
0 22017
20294000 -1511000
1853167 -1747105
0 0
1853166 -1747105
-15924492 1808057
0 0
-15924492 1808057
0 0
Katare Spinning Mills Ltd.
0.65 -0.610 0
Notes forming part of the financial statements
1. Corporate Information
The company is engaged in the business of manufacturing of cotton yarn and is also engaged in hospitality business. The cotton yarn manufacturing unit is situated at Tamalwadi, Taluka Tuljapur District Osmanabad. It's Hotel viz. Hotel Tripursundari is situated at Civil Lines, Solapur.
2. Accounting Policies and Other Information
A. Significant Accounting Policies:
1) System of Accounting:
i) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.
ii) The financial statements have been prepared in all material respects with Accounting Standards as relevant and notified by the Central Government.
iii) The financial statements are prepared on historical cost basis and as a going concern.
2) Revenue recognition:
i) Sale of goods is recognized at the point of dispatch of goods to customers. Gross sale is inclusive of Excise Duty when applicable and is net of returns and Value Added Tax
ii) Income from guest accommodation in respect of hotel division is recognized on day to day basis after the guests checks-in. Discounts, if any, in this regard are accounted upon final conclusion of the bill with the guests. Any advance received in respect of the same is treated as a liability pending finalization of bill/provision of services. Income from sale of Food & Beverages is recognized at the point of serving of these items to the guests. The income stated is inclusive of luxury tax, service charge and VAT but net of complimentary and discounts.
iii) Dividends from investment are recognized as income of the year in which the same are declared by the investee company
3) Tangible Fixed Assets and Depreciation:
Tangible Fixed Assets acquired by the company are reported at acquisition value with revaluated amount of Rs. 19,56,71,129 as approved by Valuer on 31/03/2002, with deductions for accumulated depreciation and impairment losses, if any.
The acquisition cost for this purpose includes the purchase price (net of duties and taxes which are recoverable in future) and expenses directly attributable to the asset to bring it to the site and in the working condition for its intended use.
Where the construction or development of any such asset requiring time to set up for its intended use, is funded by borrowings, the corresponding borrowing costs are capitalized up to the date when the asset is ready for its intended use.
The interest during construction period, indirect project expenditure and trial run
41
Katare Spinning Mills Ltd.
expenditure (net of trial run income) incurred in respect of projects under implementation are capitalized to the asset created.
Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 in respect of the remaining useful life of the asset as far as the existing assets are concerned. In respect of additions, depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.
During the year the company had carried out technical evaluation of the useful life of the existing assets and applied the method of depreciation as prescribed by Schedule II of the Companies Act, 2013. The adjustment as a result of the re-computation is made to the opening balance of profit and loss account.
4) Investments:
Investments are stated at cost.
5) Inventories:
a) Finished goods are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.
b) Stock in process/plant is valued at cost.
c) Stock of raw materials, Stores and Spares and packing materials are valued at cost. Cost for this purpose, does not include duties/taxes that are recoverable in future.
d) Food & Beverages:
1) Groceries: Groceries is valued at cost arrived at on weighted average basis.
2) Beverages: Valued at cost.
6) Staff Benefits:
a) The Company's contribution to Provident Fund and pension fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.
b) Gratuity is accounted for on actual payment basis. No provision for gratuity on actuarial basis is made and hence it's effect on profit or loss can not be ascertained.
7) Research and Development:
Revenue expenditure on research and development is charged to Statement of profit and loss in the year in which is incurred. Capital expenditure on research and development is treated at par with fixed assets and depreciated as such.
42
Katare Spinning Mills Ltd.
8) Deferred Taxation:
Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Charted Accountants of India.
9) Minimum Alternate Tax:
Minimum Alternate Tax paid in accordance with tax laws, which give rise to the future economic benefits in the form of adjustment to future income tax liability, is considered as as asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company and the asset can be measured reliably.
10) Borrowing Costs:
Costs in respect of borrowings for the purpose of expansion/additional fixed investments including R & D project are capitalized to such investments.
Borrowing costs relating to period after the commencement of operations of the project are charged to revenue.
12) Foreign Currency Transactions:
Foreign Exchange Transactions are recorded at pre-determined standard exchange rates which are reviewed periodically. Gains or losses arising out of such standard rates and also on realization settlement are accounted for accordingly.
13) Impairment of Assets:
The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II to Companies Act, 2013.
43
Katare Spinning Mills Ltd.
44
Katare Spinning Mills Ltd.
SEGMENT REVENUE Spinning Division Hotel Division Total
Sales Revenue
Segment Result
Unallocated Corporate Expenses
Unallocated Corporate Income
Operating Profit
Interest Expenses
Interest Income
Profit/loss from ordinary activities
Extra-Ordinary items
Net Profit/loss
OTHER INFORMATION:
Segment Assets
Segment Liabilities
Depreciation (net)
3127
106
(11)
15
110
(139)
2
(26)
0
(26)
2569
2569
37
3182
93
(10)
15
98
(223)
2
(123)
0
(123)
2861
2861
37
398
51
0
0
51
(30)
23
45
0
45
882
882
26
457
105
0
0
105
(22)
23
106
0
106
1263
1263
43
3557
157
(11)
15
162
(168)
25
19
0
19
3451
3451
63
3639
198
(10)
15
203
(245)
25
-17
0
-17
4124
4124
80
2015 2014 2015 2014 2015 2014
Contingent Liabilities:
A provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at Balance Sheet Date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.
B) Segment Reporting:
The company operates in two segments viz. Spinning Mill segment and Hotel segment.
The segment results are as under: (Rs. in lacs)
Additional Information pertaining to Statement of Profit and Loss:
Sr. No.
Nature of Income/ Expenses
Current Year Previous Year
Amount In
Foreign Currency
Amount in INR
Amount In Foreign
Currency
Amount in INR
1. Export Earning 3272720/- 0 0
E)Previous year's figures are regrouped and reclassified wherever considered
necessary.
$ 54885.60
45
Notes forming part of the financial statements
Note 3: Share Capital
Sr.No.
ParticularsAs at 31st March 2014
Number ofshares
Value inRs.
Number ofshares
Value inRs.
Authorised Capital
Equity shares of 10/- each with voting rights
Issued Capital
Equity shares of 10/- each with voting rights
Subscribed and fully paid up Capital
Equity shares of 10/- each with voting rights
Subscribed but not fully paid up
TOTAL
(a)
(b)
(c)
(d)
60,00,000
28,50,000
28,50,000
28,50,000
60000000
28500000
28500000
0
28500000
60,00,000
28,50,000
28,50,000
28,50,000
60000000
28500000
28500000
0
28500000
a. Reconciliation of the Shares outstanding at the beginning and at the end of the reporting period
Equity shares No. of shares Value in Rs.
No. of shares outstanding at the beginning of the year
Add : further issue during the period
No. of shares outstanding at the end of the period
2850000
0
2850000
28500000
0
28500000
b. Terms/rights attached to shares
The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares held by the shareholders.
c. Shareholding of more than 5%.
Sr.
No.Name of the Shareholder
As at 31st March 2015 As at 31st March 2014
% heldNo. of
shares%
Vijay Tippanna Katare (deceased)
Subhash Tippanna Katare
Kishore Tippanna Katare
Tippanna Tulsiram Katare (deceased)
Tulsidas Tippanna Katare (deceased)
% heldNo. of
shares%
10.02
11.79
12.28
10.04
11.55
285539
336005
350082
286236
329204
10.30
11.79
12.29
10.04
11.55
293489
336005
350134
286236
329204
1
2
3
4
5
d. Shares reserved for issue under options
e. Employees Stock Option Scheme
f. Bonus shares/Buy Back/Shares for consideration other than
cash issued during past five years
Nil
Nil
Nil
As at 31st March 2015
Katare Spinning Mills Ltd.
46
Note 4: Reserves and Surplus
Share Premium
Capital Reserve
General Reserve
Revaluation Reserve
Less : utilised for set off against depreciation
transfer to statement of profit and loss
Surplus as per statement of profit and loss
Balance brought forward
Less : Transitional effect on revision of Depreciation on
useful life of assets in accordance with Schedule II
Add Profit / Loss for the period
Sr.No. Particulars
As at 31stMarch 2014
As at 31stMarch 2015
i
ii
iii
iv
v
49068 49068
58423 58423
6032884 6032884
60234703 62305593
0 2070890
60234703
30431017
17591800
1853167
14692384
81067462
60234703
32178122
0
-1747105
30431017
96806095
Note 5 : Long-term borrowings
Sr.
No.Particulars
Non Current Portion Current Maturities
As at 31stMarch 2015
Term Loans
From other parties - secured
From banks - secured
Bank of India Term loan - Solar Division
Loan from LIC on Keyman Insurance Policy
Int on LIC Loan Payable
Others
(a)
(b)
As at 31stMarch 2014
As at 31stMarch 2015
As at 31stMarch 2014
87440092
87440092
29697451
117137543
88038065
88038065
113440481
9639000
9639000
0
9639000
0
0
0
0
SUB TOTAL
SUB TOTAL
GRAND TOTAL
5.1 Additional information to Secured / Unsecured Borrowing
The long term portion of term loans are shown under long term borrowing & current maturities of long term borrowing are shown under the current liability. as per the disclosure requirements of the Act.
5.2 Details of Securities & Terms of Repayment
a) Loan from Life Insurance Corporation of India is secured by an assignment of Director's Key- man Life insurance policies in their favor.
b) The Term loan from Bank of India is secured by hypothication of Solar Power Project Machinary.
Closing Balance of revaluation reserve
TOTAL
Closing balance of surplus
25402416
27546000
1835312 0 0
18396000
7006416
316139 0 00
0 0
Katare Spinning Mills Ltd.
47
Note 6 : Deferred Tax Assets / Liabilities (Net)
Deferred tax assets for the period ended March 31, 2015 has been provided on the estimated tax computation for the year. Major components of deferred tax assets & liabilities arising on account of timing differences are :
Note 7: Other long-term liabilities
Others :
Interest accrued but not due on borrowings
Interest on LIC loan.
TOTAL
475452
475452
380857
380857
Details of Securities & Terms of Repayment
a. The cash credit loan from Bank of India is secured by hypothication of all stock of raw material, stores, work in process, finished goods, book debts, equitable mortgage of Hotel property & second charge on the immovable properties of the company situated at Village - Tamalwadi, District - Osmanabad together with all buildings and structes thereon & all Plant & Machinery and joint and several guarantee of the Directors Shri. V.T. Katare, Shri. K. T. katare and Shri. S. T. Katare.
b. Overdraft from Kamala Co-op Bank is secured against Fixed Deposit of the Company with the said Bank & on third party deposit of Rs. 12500000/- kamal
Sr.No. Particulars
As at 31stMarch 2014
As at 31stMarch 2015
Deferred Tax Liabilities :
On account of timing difference in depreciation
Others
Deferred Tax Asset :
Unabsorbed depreciation & losses
Disallowance
Provision for bad & doubtful debts
Deferred Tax Asset / Liability ( A-B)
A
B
11899000
9735000
21634000
25961000
838000
2866000
29665000
8031000
17977000
9271000
27248000
10837000
1271000
2877000
14985000
12263000
Subtotal A :
Subtotal B :
Note 8 : Short-term borrowings
Loans repayable on demandFrom banks - securedCash Credit
FD-OD
Unsecured Loans
TOTAL
i
ii
iii
60695595
41387209
42842215
62095341
37482964
0
144925020 99578305
Katare Spinning Mills Ltd.
48
Katare Spinning Mills Ltd.
Note 11 : Short-term provisions
Provision for employee benefits
i) Provision for bonus
ii) Provision for other employee benefits
Provision - Others :
i) Provision for tax
1239961
0
1239961
35333
35333
1275294
1522152
407423
1929575
35333
35333
1964908
a
b.
Subtotal (a)
Subtotal (b)
Grand Total (a+b)
TOTAL
74830
791036
1366588
2365855
14237309
190000
437128
488499
3352640
4468267
Sr.No.
ParticularsAs at 31st
March 2014As at 31st
March 2015
Note 10 : Other current liabilities
Int. accrued but not due on borrowings-Bank
Current maturities of long-term borrowings
Bank of India Term Loan - Solar Division
Other payables
i)
ii)
iii)
a.
b.
c.
Statutory remittances
Advances from customers
Outstanding expenses
9639000 0
Note 9 : Trade payables
Trade payables :
Other than Acceptances 11363289
26775323
26775323
15925899
Katare Spinning Mills Ltd.No
te 1
2 : F
ixed
ass
ets
Part
icul
ars
GRO
SS B
LOCK
Accu
mul
ated
dep
reci
atio
n an
d im
pairm
ent
N
ET B
LOCK
Tang
ible
ass
ets.
(a) L
and
Fre
ehold
(b) B
uild
ings
Ow
n u
se
Facto
ry B
uildin
g
Hote
l Buildin
g
(c) P
lant
and
Equ
ipm
ent
Ow
ned
(d) F
urni
ture
and
Fix
ture
s
Ow
ned
Spin
nin
g D
ivis
ion
Hote
l D
ivis
ion
(e) V
ehic
les
Ow
ned
(f) O
ffic
e eq
uipm
ent
Ow
ned
(g) O
ther
s
Ow
ned
Com
pute
r H
ard
ware
Books
Researc
h &
Devp.
Equip
ments
Oth
er
Assets
Tota
l Ta
ngib
le A
ssets
Inta
ngib
le a
sset
s
(a)
Com
pute
r soft
ware
Tota
l Fix
ed A
sset
s
Tota
l Pre
viou
s yea
r
Bala
nce
as a
t1 A
pril
2014
Additio
ns
Dis
posals
Oth
er
adju
st-
ments
Bala
nce
as a
t31 M
arc
h2015
Bala
nce
as a
t1 A
pril
2014
Depre
ciation/
am
ort
isation
expense
for
the y
ear
Depre
cia
tion
on d
isposed
Assets
Bala
nce
as a
t31 M
arc
h,
2015
Bala
nce
as a
t31 M
arc
h,
2015
19144835
87396109
48561538
226169050
2774419
16754269
2664085
344076
2167602
9671
380878
3966811
410333342
106456
410439798
450841609
0 0
23005
1655859 0
89552 0 0
57028 0 0
8901
1834345 0
1834345
4467129
0 0 0
3629427 0 0 0 0 0 0 0 0
3629427 0
3629427
44432030
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
436910
19144835
87396109
48584553
224195482
2774419
16843821
2664085
344076
2224630
9671
380878
3975712
408538260
106456
408644716
410439798
0
40931656
11711475
193780964
2422562
13977759
1483391
296651
2049962
8601
340079
2899220
269902320
45626
269947946
304901015
0
1631637
769168
26588992
37296
872970
192731
3694
32425 0
73
61539
6260525
11098
6271623
7987961
0 0 0
-3629427 0 0 0 0 0 0 0 0
-3629427 0
-3629427
42941030
0
49993356
13304183
202096439
2619463
14252120
1732667
308411
1942778
9187
361319
3502195
290122118
59824
290181942
269947946 0
19144835
37402753
35280359
22099043
154956
2591701
931418
35665
281852
484
19559
473517
118416142
46631
118462774
140491852
102363617
Note
: L
and &
leashold
land, Facto
ry B
uildin
g, H
ote
l Buildin
g &
Pla
nt &
Machin
ery
were
revalu
ed a
s o
n 3
1st M
arc
h 2
002 resultin
g in incre
ase in v
alu
e o
f th
ese a
ssets
by R
s.
1,5
3,8
1,2
22/-
, Rs. 5,0
9,5
9,4
42/-
and R
s. 12,4
8,8
5,7
71/-
respectively
.
Capi
tal W
ork
In P
rogr
ess
7384
0553
2852
3063
00
1023
6361
70
00
Tra
nsitio
nal
effect
on
revis
ion o
fdepre
cia
tion
0
7430063
823540
9285910
159605
-598609
56545
8066
-139609
586
21167
541436
17588700
3100
17591800 00
Bala
nce
as a
t31 M
arc
h,
2014
19144835
46464453
36850062
32388086
351857
2776510
1180694
47425
117640
1070
40799
1067591
140431022
60829
140491852
145940594
73840553
A.Sr. CB.
50
Sr.No.
ParticularsAs at 31st
March 2014
As at 31st
March 2015
In the past company had availed a term loan for its hotel project at solapur from ICICI Bank Ltd. Which said bank had assigned to Kotak Mahindra Bank Ltd. Consequent upon settlement in the year 2012-13 with Kotak Mahindra Bank Ltd. the company has fully paid the loan plus interest of Rs. 600.00 lacs and there is no outstanding loan. However the interest paid of Rs. 600.00 Lacs for the year 2002 to 2013 was decided to be written off in 7 years. Accordingly company has written off Rs. 86 Lacs each in the last two year but has not written off Rs. 86.00 lacs for the year under review. Balance of Rs. 428.00 Lacs is included in Note No. 15(d) above & same will be written off in next 5 years.
Note 13 : Non-current investments
Sr.No.
Particulars
As at 31st March 2015 As at 31st March 2014
Other Investments
Investment in equity instruments
of other entities
Bank of India
200 equity shares of Rs. 10 each fully paid
(Market value Rs. 195.75 / Share)
Laxmi Co-op. Bank
1 equity share of Rs. 100 fully paid
Kamala Co-op. Bank Ltd.
Kamala Sakhar Udhyog Ltd
2 equity shares of Rs. 1000 each fully paid
1 equity share of Rs. 100 each Fully Paid
(unquoted)
TOTAL
QuotedUn
quoted TOTAL
9000
0
0
9000
QuotedUn
quoted TOTAL
a)
b)
c)
d)
0
100
2000
100
2200
9000
100
2000
100
11200
9000
0
0
0
9000
0
100
2000
2100
9000
100
2000
11100
Note 14 : Long-term loans and advances
Capital advances
TOTAL
0 0
0 0
Note 15 : Other Non-current Assets
Security deposits
MAT credit entitlement - Unsecured, considered good
Balances with government authorities
Other
TOTAL
2789087
4806408
6349197
74300000
88244692
2789087
7161882
5731191
72800000
88482160
b.
c.
d.
a.
Katare Spinning Mills Ltd.
0 00
51
Note 17 : Trade receivables (Unsecured, considered good)
Trade receivables
outstanding for a period excceding six months
Other Trade receivables
outstanding for a period less than six months
TOTAL
2864207
8318795
11183003
2507848
7292501
9800349
Raw materials
Work-in-progress
Finished goods (other than those acquired for trading)
Stock-in-trade (acquired for trading)
Stores and spares
Others
Food & Beverages
Wastage & Scrap
diesel (fuel)
17368959
2091200
2550154
223512
183056
9943
26271974
1853657
1991493
a.
b.
c.
d.
e.
f.
Sr.No.
ParticularsAs at 31st
March 2014As at 31st
March 2015
Note 16 : Inventories(At lower of cost and net realisable value)(As taken valued & certified by the Managing Director)
TOTAL
a. Trade receivable to the extent of Rs. 563002/- are bad for which no provision is made.
Note 18 : Cash and cash equivalents
Cash on hand
Balances with banks
In current accounts
In deposit accounts
TOTAL
527940
18515
29086363
29632818
675120
33861
21931483
22640464
a.
b.
i)
ii)
Loans and advances to related parties
Prepaid expenses
Balances with government authorities
a. Income tax / TDS
b. Advance income tax
c. TCS Income tax- Hotel
Others
TOTAL
228390
54154
466404
1724
11282107
12037779
5000 125400213156
128576
382614
3866
7206373
8059985
a.
b.
c.
d.
Note 19 : Short-term loans and advances(Unsecured, considered good)
Katare Spinning Mills Ltd.
412442
714252
14086896
1680000
2476896
175426
21742
6324
19573978
52
Short-term loans and advances include amounts due from:
Other officers of the Company
S S Katare
Firms in which any director is a partner
Pvt. companies in which any director is
a director/member
Kamal Marketing Pvt. Ltd.
Kamala Sakhar Udyog Ltd.
TOTAL 5000
102937
5000 5100
17363
125400
Note 20 : Other current assets
Accruals
Interest accrued on deposits
TOTAL
288192
9152317
9440508
5063802
14578799
a.
b.
Sr.No.
ParticularsAs at 31st
March 2014As at 31st
March 2015
Katare Spinning Mills Ltd.
Others 9514997
0
0
53
Sale of products
Sale of services
Other operating revenues
Total Revenue from operations
334312593 336570927
19905297 25696035
1558656 1664334
355776546 363931296
a.
b.
c.
Sr.No.
ParticularsFor the year
ended 31st March2014
For the yearended 31st March
2015
Note 21 : Revenue from operations
Note:
Sale of products comprises :
Manufactured goods
Cotton Yarn
Sale of foods and beverages
Total - Sale of manufactured goods
Traded goods
Cotton Yarn
Total - Sale of products
Sale of services comprises
Room Rent - Hotel
Service charges (Management share - Hotel)
Cotton processing Charges
Hank yarn receipt
Total - Sale of services
Other operating revenues comprise:
Sale of scrap
113262500
20714901
133977401
200335192
334312593
19065757
48470
385525
405545
19905297
1558656
157381849
21159078
178540927
158030000
336570927
24554627
0
549400
592008
25696035
1664334
(i)
(ii)
(iii)
Katare Spinning Mills Ltd.
54
Interest income (Refer Note (i) below)
Dividend Income
from other long term investments
Insurance claim received
Spinning Division
Hotel Division
Rent received
Spinning Division
Other non-operating income (Refer Note (ii) below)
Sr.No.
ParticularsFor the year
ended 31st March2014
For the yearended 31st March
2015
Note 22 : Other income
2593117
240
16875
380696
25000
7376986
10392914
2509741
3100
0
0
25000
10543596
13081437TOTAL
a.
b.
c.
d.
e.
Note :
Interest income comprises :
Interest from banks on deposits:
Spinning Division
Hotel Division
Other interest
Interest on MSEB deposit
Spinning Division
Hotel Division
Total - Interest income
Other non-operating income comprises :
30365
2324003
175209
63540
2593117
7376986
26980
2259555
170784
52422
2509741
(i)
(ii)
Katare Spinning Mills Ltd.
Accrued Bonus on key Man Policies
Profit on sale of assets
Other income (Exchange Rate Diff)
Cash Discount Received
Electricity Exps Rate Difference Receivable
Hotel Division
Food deduction from employees
Miscellaneous receipts
P/A system
Venue charges
1500000
1400000
38646
0
3847192
405528
89405
24370
71845
1500000
8563280
0
49911
0
356690
48795
11125
13795
10543596Total
55
Note 23. a Cost of materials consumed
Spinning Division
Opening stock
Add: Purchases of raw cotton
Subtotal
Less: Closing stock
Hotel Division
Opening stock
Add: Purchases food & beverages
Subtotal
Less: Closing stock
1853657
78440533
80294190
412442
79881748
223512
8094720
8318232
175426
8142806
88024554
5328798
114284321
119613119
1853657
117759462
240178
9089582
9329760
223512
9106248
126865710
Sr.No.
ParticularsFor the year ended 31st March 2014
For the year ended 31st March 2015
Raw material (cotton) consumed
Food & beverages consumed
Total cost of material consumed
Note 24 : Employee benefits expense
Salaries and wages
Contributions to provident and other funds
Staff welfare expenses
22996395
2113838
330482
25440715
25305926
2354965
174342
27835233
Note 23. b Purchase of traded goods
Cotton Yarn
TOTAL
200311732
157714000
157714000
197864000
Note 23.c Changes in inventories of finished goods, work-in-progress and stock-in-trade
Inventories at the end of the year:
Finished goods
Work-in-progress
Wastage & scrap
Inventories at the beginning of the year:
Finished goods
Work-in-progress
Wastage & scrap
15766896
714252
21742
16502890
19460159
1991493
183056
21634708
-5131818
19460159
1991493
183056
21634708
15632485
224123
143529
16000137
5634571
(i)
Total (A)
Total (B)
Net (increase) / decrease (A-B)
TOTAL
Katare Spinning Mills Ltd.
56
Interest expense on:
Bank interest
Other interest (LIC loan)
Interest Paid Others (Unsecured Loan)
Defered Interest
13346766
2780139
717828
0
16844733
Sr.No.
ParticularsFor the year ended 31st March 2014
For the year ended 31st March 2015
13839196
2119060
0
8600000
Other borrowing costs
Loan processing & other 0 158153
24716409
Note 25 : Finance costs
TOTAL
Note 26 : Other expenses
Consumption of stores and spare parts
Consumption of packing materials
Power and fuel
Rent
Repairs and maintenance - Buildings
Repairs and maintenance - Machinery
Repairs and maintenance - Others
Insurance
Rates and taxes
Communication
Travelling and conveyance
Printing and stationery
Freight and forwarding
Sales commission
Legal and professional
Payments to auditors
- As auditors - statutory audit
Bank charges
Directors sitting fees
Advertisement
M VAT
Loundry expenses
News papers & periodicals
Miscellaneous expenses
Local Body tax
Fire Fighting Expenses
5413255
1174877
21218581
12000
1111767
876106
345966
995575
946431
295035
738484
203133
1401145
289335
765135
68540
191282
33000
19850
1268038
406883
67744
680433
1546181
0
40068776
5359632
1364276
18225930
12000
288036
835617
304348
1103833
1071573
332396
995183
337956
1405842
223170
908808
67716
282324
24000
38740
1329746
472284
65237
684153
2055778
2246
37790824TOTAL
Katare Spinning Mills Ltd.
57
Note 27: Earnings Per Share (EPS) :
Particulars
Net Profit / (Loss) as per profit and loss a/c
available for equity share holders
Weighted average no. of equity shares
Earning / (Loss) per share
a.
b.
c.
Katare Spinning Mills Ltd.
31.03.2015
1853167
2850000
0.65
31.03.2014
(1747105)
2850000
(0.65)
Note : There are no diluted equity shares therefore, no working is given for diluted earningsper share.
Note 28 : Deferred Taxation :
Particulars
Deferred Tax Liabilities :
on account of timing difference in depreciation
Others
Sub Total A :
A.
Deferred Tax Assets
Unabsorbed depreciation and losses
Disallowances
Provision for Bad & Doubtful Debts
Sub Total B :
B.
(60.78)
4.64
(56.14)
118.99
97.35
216.34
Balance ason
31.03.2014
Arisingduring
the year
Balance as on
31.03.2015
179.77
92.71
272.48
108.37
12.71
28.77
149.85
151.24
(04.33)
(00.11)
146.80
259.61
8.38
28.66
296.65
Deferred Tax Assets / Liab (B-A)C. 122.63 (202.94) (80.31)
Company has made provision for deferred tax liability as above.
Note 29 : Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.
Note 30 : Balances of Trade payables, Loans & advances & trade receivables have been taken as per books awaiting respective confirmation & reconciliation.
As per my report of even date for and on behalf of the Board of Directors
G. M. PawleChartered Accountant
Kishor T. Katare (Managing Director)
Solapur31st August, 2015
Subhash T. Katare (Director)
Mrs. V K Katare (Director)
(Rs. in Lacs)
58
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2015
A
Particulars Sr.No.
Cash flow from operating activitiesProfit before taxAdjustment ForDepreciation & Amortisation
Depreciation written back
Revaluation Reserve
Provision for Dividend
Last year Bonus excess provision reversed
Excess provision of Dividend Distribution Tax
Finance Cost
Tax expenses relating to previous year
Other non operating income - (Interest/Rent/divid)Interest income
Insurance Claim received
Dividend income
Rent Received
Other Non operating income
CurrentYear
PreviousYear
Operating Profit before working capital changes
-15924492
6271623
0
133893
0
16844733
-2593117
-397571
-240
-25000
-8776986
-4467157
1808057
7987961
-42941030
-2070890
0
38663
22017
-24716409
-1945282
-2509741
0
-3100
-25000
-10543596
-74898350
Changes in Working CapitalAdjustments for (increase)/decrease in operating assets :
Inventories
Trade receivables
Short-term loans and advances
Other current assets
Loans and advances - (Assets)
Other non-current operating assets
Adjustments for increase/(decrease) in operating liabilities:
Short-term Borrowings
Trade Payables
Other Current Liabilities
Short-term Provisions
Cash genrated from operations
Finance Cost
Taxes Paid
Net Cash flow from Operating activites (A)
6697996
-1382654
-3977794
5138291
237468
45346715
-15412034
10085181
-689614
46043555
-16844733
-2650234
22081431
-2392678
5376383
-5987782
-2003643
40716
7273854
-26702409
10882308
-6260652
-2330077
-22103980
24716409
-159560
-72445481
Katare Spinning Mills Ltd.
59
G.M.PAWLEChartered Accountant
M. No. : 32561
B
Particulars Sr.No.
Cash flow from investing ActivitiesPurchase of fixed assets
Sales of fixed assets
Purchase of Investments
Investment in bank deposits
Other non operating income - (Interest/Rent/divid)Interest income
Insurance claim received
Dividend Income
Rent Received
Other non operating income
CurrentYear
PreviousYear
Net Cash flow from Investing Activities (B)
-30357409
1400000
-100
-7154880
2593117
397571
240
25000
7376986
-25719475
-77642842
44868940
0
-218630
2509741
0
3100
25000
10543596
-19911095
Net Cash Flow from financing Activities (C)
C Cash flow from Financing Activities
Net Increase in Bank / Fin. Inst. - Borrowings
Other long-term liabilities
Increase in Cash and Cash equivalents (A+B+C)
Cash and Cash Equivalents as on 01-04-2014Cash and Cash Equivalents as on 31-03-2015
Components of Cash and Cash EquivalentsBank balance with Bank's
Cash in hand
Cheques / Drafts on hand
Total Cash and Cash equivalents
3475518
3380923
94595
-162526
708981
546455
0
18515
527940
0
546455
89747468
90132864
-385396
-2609109
3318090
708981
0
33861
675120
0
708981
I have audited the above cash flow statement of Katare Spinning Mills Limited from the audited financial statements for the year ended March 31, 2014 and March 31, 2015 and found the same to be drawn in accordance therewith and also with requirements of clause 32 of the listing arrangements with the stock exchange.
For and on behalf of the Board of Directors
Katare Spinning Mills Ltd.
K. T. KATARE (Managing Director)
S. T. KATARE (Director)
Mrs. V.K. KATARE (Director)
Katare Spinning Mills Ltd.
Notes