Mar 31, 2014
1. SHARE CAPITAL
a) The Company has only one class of issued shares i.e. Ordinary Shares
having par value of Rs.10/- per share. Each holder of Ordinary Share is
entitled to one vote per share and equal right for dividend. The
dividend proposed by the Board of Directors is subject to the approval
of shareholders in the ensuing Annual General Meeting, except in case
of interim dividend. In the event of liquidation, the ordinary
shareholders are eligible to receive the remaining assets of the
Company after payment of all preferential amounts, in proportion to
their shareholding.
b) The Company does not have any holding company or ultimate holding
company.
c) No Ordinary Shares have been reserved for issue under options and
contracts/commitments for the sale of shares/disinvestment as at the
Balance Sheet date.
d) No Ordinary Shares have been bought back by the Company during the
period of 5 years preceding the date as at which the Balance Sheet is
prepared.
e) No Ordinary Shares have been issued pursuant to scheme of
amalgamation and arrangement for consideration other than cash in
immediately preceding five years.
f) No securities convertible into Ordinary/Preference shares have been
issued by the Company during the year.
g) No calls are unpaid by any Director or Officer of the Company during
the year.
2. LONG-TERM BORROWINGS
Security
Term Loan, Working Capital Term Loan & FITL is secured by equitable
mortgage of all fixed assets including leasehold/ freehold land,
building and Capital Work in Progress (both present & future). The
above loans are also guaranteed by a relative of director.
i) Term Loan - I & II is repayable in 20 quarterly balloning
installments starting from quarter ending June 2013 and ending at March
2018.
ii) Working Capital Term Loan is repayable in 16 quarterly balloning
installments starting from quarter ending June 2013 and ending at March
2017
iii) FITL is repayable in 40 remaining equal monthly installments
starting from month ending December 2012 and ending at March 2016.
NOTES :
The above disclosure and maturity profile are based on loan
restructuring scheme sanctioned by the bank vide their renewal dated
24.01.2013.
During the year due to non payment of instalments and interest due on
the above loans, the bank took the symbolic possession of the tangible
property secured against the loans and proposed to auction the property
to realise their dues. As per the information''s available with the
company, in absence of any bid, the auction could not be materialised.
The company has initiated necessary talks with the bank to reach to a
compromise settlement and deposited a sum of Rs. 1 Cores with the bank
as no lien Fixed deposit to be adjusted with the loan balance upon
settlement. Further in absence of any balance confirmation by the bank
as at 31.03.2014, the loan balances are subject to confirmation by the
bank, however the company have continued to provide interest as per the
terms and conditions of above renewal letter received from the bank.
3. Contingent and disputed liabilities not provided for:-
Claims against the Company not acknowledged as debts
(Amount in Rs.)
As at As at
31st March 2014 31st March 2013
i) Disallowance of Modvat Credit
on input items Felts & etc
from 1993 - 2005 - 381,404
ii) Disallowance of Modvat Credit
on input items Felts & etc
from November, 1991 to May,
1992 320,192 320,192
iii) Disputed income tax liability
relating to disallowance of
depreciation in calculation
of book profit under MAT
provisions pending before
Kolkata High Court for the
financial year 1996- 1997. 796,364 796,364
iv) Disputed income tax liability
relating to imposition of
interest on advance tax not
paid u/s 154 pending before
Deputy Commissioner of Income
Tax, Kolkata for the financial
year 2007 - 2008. 550,000 550,000
B. Estimated amount of contracts remaining to be executed on Capital
Account not provided for Rs. nil, (net of advance), Previous Financial
Year Rs. nil (net of advance).
C. Bank guarantee outstanding at the year end is Rs.1,510,773 (Previous
year Rs.15,10,773).
D. The Company has incurred net loss of Rs.57,663,902 and cash loss
Rs.5,49.07,161 during the year ended 31st March, 2014 and the net worth
of the Company has been fully eroded. These financial statements have
been prepared on a going concern basis based on the future strategic
plan envisaged by the management for the revival of the company and on
the basis of a comfort letter received from a promoter company
confirming their continued financial support.
E. The paper factory remains under shut down w.e.f. 6th October, 2010
to fulfil certain pollution control measures as laid down by Central
Pollution Control Board. The management of the company is taking active
steps to comply with the required norms to start the factory. The
management is also actively considering to begin paper production
through alternate means. As reported earlier, the new paper mill with
an annual capacity of 18,000 MT is under installation and waiting for
necessary clearance to commence production as mentioned above. The
power plant also could not be started due to non operation of the paper
mill and thus still kept under capital work in progress.
F. In compliance with Accounting Standard AS-28 relating to "Impairment
of Assets", the company has reviewed the carrying amount of its fixed
assets as at the end of the year. Based on the future strategic plans
and the valuation report of the fixed assets of the company , no
impairment of assets is envisaged at the balance sheet date.
G. Balance confirmations from some of the parties of trade receivable,
unsecured loans, advances and trade payable are yet to be received.
Mar 31, 2013
A. Contingent and disputed liabilities not provided for:- Claims
against the Company not acknowledged as debts
(Amount in Rs.)
As at As at
31st March
2013 31st March
2012
i) Disallowance of Modvat
Credit on input items
Felts & etc from 1993 Â 2005 381,404 381,404
ii) Disallowance of Modvat Credit
on input items Felts
& etc from November, 1991 to May, 1992 320,192
iii) Disputed income tax liability
relating to disallowance of
depreciation in calculation of
book profit under MAT provisions
pending before Kolkata High Court
for the financial year 1996- 1997. 796,364 796,364
iv) Disputed sales tax liability
for interest on installment for
FY 2002-03 & 2003-04 37,701
v) Disputed provident fund
liabilities 1990-99 & 1999 -2008,
Stay granted from provident fund
Appellate Tribunal (net of advance). 2,64,000
vi) Disputed income tax liability
relating to imposition of interest
on advance tax not paid u/s 154
pending before Deputy Commissioner
of Income Tax, Kolkata for the
financial year 2007 Â 2008. 550,000 550,000
B . Estimated amount of contracts remaining to be executed on Capital
Account Rs. nil, (net of advance), Previous Financial Year Rs
74,00,000, (net of advance).
C. Bank guarantee outstanding at the year end is Rs.15,10,773
(Previous year Rs.15,10,773).
D. The Company has incurred net loss of Rs. 8,12,21,254 and cash loss
Rs.7,84,50,222 during the year ended 31st March 2013 and the net worth
of the Company has been fully eroded. These financial statements have
been prepared on a going concern basis based on the future strategic
plan envisaged by the management for the revival of the company and on
the basis of a comfort letter received from a promoter company
confirming their continued financial support.
E. The paper factory remains under shut down w.e.f. 6th October, 2010
to fulfil certain pollution control measures as laid down by Central
Pollution Control Board. The management of the company is taking active
steps to comply with the required norms to start the factory. The
management is also actively considering to begin paper production
through alternate means. As reported earlier, the new paper mill with
an annual capacity of 18000 MT is under installation and waiting for
necessary clearance to commence production as mentioned above. The
power plant also could not be started due to non operation of the paper
mill and thus still kept under capital work in progress.
F. In compliance with Accounting Standard AS-28 relating to
"Impairment of AssetsÂ, the company has reviewed the carrying amount of
its fixed assets as at the end of the year. Based on the future
strategic plans and the valuation report of the fixed assets of the
company, no impairment of assets is envisaged at the balance sheet
date.
G. Balance confirmations from some of the parties of trade receivable,
unsecured loans, advances and trade payable are yet to be received.
H. Employee Benefits:
a) Defined Contribution Plan:
The Company makes contribution towards provident fund and Employee''s
State Insurance Corporation (ESIC) to a defined contribution retirement
benefit plan for qualifying employees. The Provident Fund plan and ESIC
are operated by concerned Government agencies created for the purpose.
Under the said schemes the company is required to contribute a specific
percentage of pay roll costs in respect of eligible employees to the
retirement benefit scheme to fund the benefits. The contribution
payable to these plans by the company is at the rates specified in the
rules of the scheme.
b) Defined Benefits Plan:
i) Gratuity : 15 days salary for every completed year of service.
Vesting period is 5 years and payment is restricted to Rs. 10.00 lacs.
ii) Leave: The employees of the Company are also eligible for
encashment of leave on retirement.
iii) The present value of defined obligation and related current cost
are measured using the Projected Credit Method with actuarial valuation
being carried out at each balance sheet date.
c) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
d) The table below illustrates experience adjustment disclosure as per
Para 120 (n) (ii) of Accounting Standard 15 Â Employee Benefits.
e) The disclosure as required by Para 120 of Accounting Standard  15
"Employee Benefit has been made to the extent applicable to the
Company.
I. No borrowing cost as per Accounting Standard -16 " Borrowing CostsÂ
has been capitalised during the year.
J. The company does not have any exposure in foreign currency at the
year end.
K. Segment Reporting
The Company''s business activities fall within a single primary
reportable segment viz., Writing & Printing Paper. Accordingly,
pursuant to Accounting Standard (AS)-17 on Segment Reporting, Segmental
Information is not given.
L . In view of substantial brought forward losses and depreciation,
the year end deferred tax position reflects net deferred tax assets and
the same has not been recognised on acount of prudence.
M Previous year''s figures have been regrouped and/or re-arranged
wherever necessary, to conform the current year classification.
Mar 31, 2012
A Restucturing of secured borrowings
As per Allahabad Bank sanction letter dated 25.03.2011 previous year,s
credit limit has been restructured alongwith the sanction of fresh FILT
of Rs.5.25 corres (being the interest to be funded on all facilities
for the period of 18 months i.e. 01.04.2011 to 30.09.2012) & fresh WCTL
of Rs.9.00 crores (conversion of entire CC limit).
1 Contingent and disputed liabilities not provided for:-
A Claims against the Company not acknowledged as debts
(Rs in Lacs)
Sl. Particulars As at 31st
March, 2012 As at 31st
March, 2011
1. Disallowance of Modvat Credit
on input items Felts & etc
from 1993Ã2005 3.81 16.09
(Show Cause Notice issued by
Excise Department).
2. Disputed income tax liability
relating to disallowance of
depreciation in 7.96 7.96
calculation of book profit under
MAT provisions pending before Kolkata
High Court for the financial year
1996- 1997.
3. Disputed sales tax liability for
installment for FY 2002-03 & 2003-04. 0.37 -
4. Disputed provident fund liabilities
1990-91 to 2000-2001 & 2003-2004, stay 2.64 2.64
granted from provident fund Appellate
Tribunal (net of advance).
5. Disputed income tax liability
relating to imposition of interest on
advance 6.23 6.23
tax not paid u/s 154 pending before
Deputy Commissioner of Income Tax,
Kolkata for the financial year 2007-2008.
The provisions for disputed obligatory liabilities on account of cases
pending with courts/concerned authorities based on estimate made by the
company considering the facts and circumstances.
3. Estimated amount of contracts remaining to be executed on Capital
Account Rs 74.00 lacs, (Advances Rs. nil). Previous Financial Year Rs
74.00 lacs, (Advances Rs. nil).
4. Bank guarantee outstanding at the year end is Rs. 15.11 lacs
(Previous year Rs. 15.11 lacs).
5 The power plant has been commissioned and started generating power
from 16th October, 2008 and was operated until 19th February, 2009. As
the power plant can be made fully operational with the upcoming
additional paper production capacity, the same is considered under
trial run and has been shown under capital work in progress.
6 Additional paper machine with an annual capacity of 18000 MT is
under installation. However, pulp mill of the new paper machine has
commenced its trial run production w.e.f. 25th October, 2009 and has
generated Nil MT of pulp during 2011-12 (previous year 2017 MT).
7 In compliance with Accounting Standard AS-28 relating to "Impairment
of Assets", the company has reviewed the carrying amount of its fixed
assets as at the end of the year and no impairment of assets is
envisaged.
8 Balance confirmations from some of the parties of sundry debtors,
unsecured loans, advances and creditors are yet to be received.
9 The factory remains under shut down w.e.f. 6th October, 2010 to
fulfill certain pollution control measures laid down by Central
Pollution Control Board.
10 Employee Benefits:
a) Defined Contribution Plan:
The Company makes contribution towards provident fund and Employee,s
State Insurance Corporation (ESIC) to a defined contribution retirement
benefit plan for qualifying employees. The Provident Fund plan and ESIC
by concerned Government agencies created for the purpose. Under the
said schemes the Company is required to contribute a specific
percentage of pay roll costs in respect of eligible employees to the
retirement benefit scheme to fund the benefits. The contribution
payable to these plans by the Company is at the rates specified in the
rules of the scheme.
b) Defined Benefits Plan:
i) Gratuity: 15 days salary for every completed year of service.
Vesting period is 5 years and payment is restricted to Rs. 10.00 lacs.
ii) Leave: The employees of the Company are also eligible for
encashment of leave on retirement.
iii) The present value of defined obligation and related current cost
are measured using the Projected Credit Method with actuarial valuation
being carried out at each balance sheet date.
c) Amount not recognized as an asset, because of the limit prescribed
in Accounting Standard 15 (Revised 2005) i.e. Employees Benefits is Rs.
Nil.
d) There is no reimbursement right at the balance sheet date.
e) Fair value of plan assets does not include any amount for Companies
own financial instruments or any property occupied by or other assets
used by, the Company.
f) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
h) Comparative values of defined benefit plans for the past four
financial years as required by Accounting Standard à 15 (Revised 2005)
on Employees Benefits are provided, this being only the fourth year of
adoption of the Standard.
i) The disclosure as required by Para 120 of Accounting Standard à 15
"Employee Benefit"has been made to the extant applicable to the
Company.
11. During the year borrowing cost amounting to Rs Nil (Previous year
Rs 41.63 lacs) has been capitalized and grouped under Capital
Work-in-Progress.
12. The year end foreign currency exposures that have not been hedged
by derivative instrument or otherwise are given below:
13. Segment Reporting
The Company,s business activities fall within a single primary
reportable segment viz., Writing & Printing Paper. Accordingly,
pursuant to Accounting Standard (AS)-17 on Segment Reporting, Segmental
Information is not given.
14 In view of suspension of operation the company has incurred
substantial lisses resulting in erosion of net worth by more than 50%.
However, the management feels that going concern concept is not
impaired.
15 Previous year,s figures have been regrouped and/or re-arranged
wherever necessary, to conform the current year classification.
Mar 31, 2011
1. Contingent and disputed liabilities not provided for:-
A Claims against the Company not acknowledged as debts As at 31st
March, 2011 As at 31st March, 2010
1. Disallowance of Modvat Credit on input items Felts & etc from
1993-2005 16.09 16.45 (Show Cause Notice issued by Excise Department).
2. Disputed income tax liability relating to disallowance of
depreciation in 7.96 7.96 calculation of book profit under MAT
provisions pending before Kolkata High Court for the financial year
1996-1997.
3. Disputed sales tax liability for pending Declaration Forms & etc.
for 1999-2000 - 5.94 to 2004-05.
4. Disputed provident fund liabilitiesl 990-91 to 2000-2001 &
2003-2004, stay 2.64 2.64 granted from provident fund Appellate
Tribunal (net of advance).
5. Disputed income tax liability relating to imposition of interest on
advance tax not 6.23 7.17 paid u/s 154 pending before Deputy
Commissioner of Income Tax, Kolkata for the financial year 2007-2008.
The above claims / demands are at various stages of appeal and in the
opinion of the Company are not tenable.
The provisions for disputed obligatory liabilities on account of cases
pending with courts/concerned authorities based on estimate made by the
company considering the facts and circumstances.
3. Estimated amount of contracts remaining to be executed on Capital
Account (Net of Advances) Rs. 74.00 lacs (Previous Financial Year Rs
56.90 lacs).
4. Bank guarantee outstanding at the year end is Rs.15.11 lacs
(Previous year Rs.15.11 lacs).
5. Depreciation/Amortization for the year includes arrear depreciation
amounting to Rs. 357.39 lacs (Previous year Rs. 357.39 lacs) related to
financial year 1996-1997 to 1999-2000.
6. In earlier years the Company had taken unsecured foreign currency
loan amounting to Rs.9,47,33,625/- (balance as on 31.03.2011) for the
rehabilitation of the Company. The Board of the Company had also
decided to issue right share to the lender in lieu of the loan. However
considering the present scenario and in view of term of settlement
reached between the Company and the lender, the loan liability remained
as on 31.03.2011 after payment of settlement amount has been foregone
by the lender.
7. The power plant has been commissioned and started generating power
from 16th October, 2008 and was operated until 19th February, 2009. As
the power plant can be made fully operational with the upcoming
additional paper production capacity, the same is considered under
trial run and has been shown under capital work in progress.
8. Additional paper machine with an annual capacity of 18000 MT is
under installation. However, pulp mill of the new paper machine has
commenced its trial run production w.e.f. 25th October, 2009 and has
generated 2017 MT of pulp during 2010-11 (previous year 2487 MT).
9. In compliance with Accounting Standard AS-28 relating to
"Impairment of Assets", the company has reviewed the carrying amount of
its fixed assets as at the end of the year and no impairment of assets
is envisaged.
10. Balance confirmations from some of the parties of sundry debtors,
unsecured loans, advances and creditors are yet to be received.
11. The factory remains under shut down w.e.f. 6th October, 2010 to
fulfill certain pollution control measures laid down by Central
Pollution Control Board.
12. Employee Benefits:
a) Defined Contribution Plan:
The Company makes contribution towards provident fund and Employee's
State Insurance Corporation (ESIC) to a defined contribution retirement
benefit plan for qualifying employees. The Provident Fund plan and ESIC
by concerned Government agencies created for the purpose. Under the
said schemes the Company is required to contribute a specific
percentage of pay roll costs in respect of eligible employees to the
retirement benefit scheme to fund the benefits. The contribution
payable to these plans by the Company is at the rates specified in the
rules of the scheme.
b) Defined Benefits Plan:
i) Gratuity: 15 days salary for every completed year of service.
Vesting period is 5 years and payment is restricted to Rs. 10.00 lacs.
ii) Leave: The employees of the Company are also eligible for
encashment of leave on retirement.
iii) The present value of defined obligation and related current cost
are measured using the Projected Credit Method with actuarial valuation
being carried out at each balance sheet date.
c) Amount not recognized as an asset, because of the limit prescribed
in Accounting Standard 15 (Revised 2005) i.e. Employees Benefits is Rs.
Nil.
d) There is no reimbursement right at the balance sheet date.
e) Fair value of plan assets does not include any amount for Companies
own financial instruments or any property occupied by or other assets
used by, the Company.
f) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
h) Comparative values of defined benefit plans for the past three years
instead of four financial years as required by Accounting Standard - 15
(Revised 2005) on Employees Benefits are provided, this being only the
fourth year of adoption of the Standard.
i) The disclosure as required by Para 120 of Accounting Standard - 15
"Employee Benefit" has been made to the extant applicable to the
Company.
13. During the year borrowing cost amounting to Rs. 41.63 lacs
(Previous year Rs. 190.02 lacs) has been capitalized and grouped under
Capital Work- in-Proqress.
14. Segment Reporting
The Company's business activities fall within a single primary
reportable segment viz., Writing & Printing Paper. Accordingly,
pursuant to Accounting Standard (AS)-17 on Segment Reporting, Segmental
Information is not given.
15. Operating Leases
The Company does not have any lease agreement as at the end of the
year. The total rental expenses under non-cancelable operating lease
for the year is Rs.8,75,000 (Previous year Rs.15,00,000).
(i) Closing stock includes stock with consignment Agent 73.30 M.T.
{Previous Year: 192.85 MT) of paper.
(ii) Pulp plant is an integral part of the Paper plant and therefore
capacity and actual production of pulp are not separately shown.
Note: The above Remuneration does not include provision for post
retirement benefits under Accounting Standard 15, since the same is not
available for individual's employees.
16. Previous year's figures have been regrouped and/or re-arranged
wherever necessary, to conform the current year classification.
Mar 31, 2010
1, Contingent and disputed liabiiities not provided for:-
(Rs. in Lacs)
A Claims against the Company
not acknowledged as debts As at 31st
March, 2010 As at 31st
March, 2009
1. Disallowance of Modvat
Credit on input items Felts
& etc from 1993-2005 16.45 50.29
(Show Cause Notice issued by
Excise Department).
2. Disputed income tax
liability relating to disallowance
of depreciation in 7.96 7.96
calculation of book profit
under MAT provisions pending
before Kolkata High Court for
the financial year 1996-1997.
3. Disputed sales tax liability
for pending Declaration Forms & etc.
for 1999-2000 5.94 30.47
to 2004-05.
4. Disputed provident fund
liabilities!990-91 to
2000 -2001 & 2003 -2004, Stay 2.64 2.64
granted from provident fund
Appellate Tribunal
(net of advance). ,
5. Disputed income tax
liability relating to imposition
of interest on adyanc|tax not 7.17 Nil
paid u/s 154 pending before
Deputy Commissioner
of Income Tax, Kolkfltator
the financial year 2007 -2008.
6. Arrear depreciation amounting to Rs. 357.39 lacs (Previous year Rs.
357.39 lacs) from the financial year 1996-1997 to 1999-2000 remains to
be provided. The Company has already taken necessary approvals from the
shareholders In the earlier Annual General Meeting regarding adjustment
of arrear depreciation with securities premium account. The Company is
in the process of complying with necessary formalities in this regard.
7. Unsecured Loan in foreign currency represents money brought in
earlier years by the promoters of the company in the process of
rehabilitation. The board had decided to retain the amount for the
proposed right issue of the company. However in view of unfavorable
market situation, the Company did not launch the right issue and the
loan of Rs. 999.44 lacs (Previous year Rs. 1082.15 lacs) equivalent to
$ 22.14 lacs (Previous year $21.14 lacs) has been kept as interest free
loan,
8. The power plant has been commissioned and started generating power
from 16th October 2008 and was operated until 19th February, 2009. As
the power plant can be made fully operational with the upcoming
additional paper production capacity, the same Is considered under
trial run and has been shown under capital work in progress.
9. Additional paper machine with an annual capacity of 18000 MT is
under installation. However, pulp mill of the new paper machine has
commenced its trial run production w.e.f., 25th Oct, 2009 and has
generated 2487 MT of pulp during 2009-10.
10. Impairment Loss on assets provided during the year Rs. Nil
(Previous year Nil).
11. Balance confirmations from some of the parties of sundry debtors,
unsecured loans, advances and creditors are yet to be received.
12. During the year borrowing cost amounting to Rs. 190.02 lacs
(Previous year Rs. 132.49 lacs) has capitalized and grouped under
Capital Work-in Progress.
13. Segment Reporting
The Companys business activities fall within a single primary
reportable segment viz., Writing & Printing Paper. Accordingly,
pursuant to Accounting Standard (AS)-17 on Segment Reporting, Segmental
Information is not given.
14. Related partys disclosures under AS-18
Name of Parties Relationship
A. 1, Arrow Syntax Pvt Ltd Associate Company and having
significant influence over the Company
B. 1. Foto Exim FZE, Dubai Common Director
2. Orion IT Parks Pvt Ltd
3. Dhanshree Impex Pvt. Ltd.
C. 1. D. Kumar-Whole Time
Director Key Management Personnel
Note: The above Remuneration does not include provision for post
retirement benefits under Accounting Standard 15, since the same is not
available for individuals employees.
15. Previous years figures have been regrouped and/or re-arranged
wherever necessary, to conform the current year classification.