Mar 31, 2014
1. SHARE CAPITAL :
A. Voting Right :
(i) Each equity share holders is entitled to voting right proportionate to his holding.
(ii) Preference share holders are not ordinerily entitled to voting right unles any part of their dividend remain unpaid or agenda of voting relates to issues effecting their right.
B. Other Right :
Preference share holders are entitled to priority over equity share holders against the proceeds of realisation of assets under circumstances of liquidation of the company.
C. Transferability :
Shares of the company are ordinerily transferable provided :
i) Instrument of transfer submitted to the company is as per format prescribed under the Act.
ii) Company does not have any lien on shares under transfer.
iii) Transferee conveys his consent within stipulated period of issuance of notice under section 110 (2) of Companies Act by the company pertaing to application of transfer of partly paid shares made by transferer.
2. LONG TERM BORROWINGS :
Note: The above loans are subordinated and shall not be withdrawn during the rehabilitation period
3. TANGIBLE FIXED ASSETS
NOTE : i) Entire Building has been constructed on Leasehold Land.
ii) Leasehold Land relates to 31.15 Acres of Land at plot No.6,7, & 8 of Industrial Area village Chhawni Bhilai Dist: Durg in the State of Chattisgarh taken as operating lease for a period of 99 years in the year of 1972.
iii) There are no other Fixed Assets in the company other than tangible fixed assets.
3. Notes to accounts :
4. (i) Contingent Liabilities :
As at 31st March 2014 As at 31st March 2013 RS RS RS RS
i). Claim against the company not acknowledge as debt.
a) Demand for sales tax and entry tax which are contested by the company. 68,445,750 68,327,610
b) Demand for Income tax under appeal 635,439 635,439
c) Demand for Excise/ Custom duty under appeal 1,453,723 1,453,723
d) Demand from ESI Authorities which has protested by the company. 13,242,753 13,242,753
e) Awards issued by the Hon''ble High Court of Chhattisgarh/ Labour Court under industrial dispute act which are contested by the company 2,960,000 2,960,000
f) Compensation Claim by one service provider contested by the company) 23,900 23,900
g) Guarantee Furnished - -
ii) Commitment : - -
5. Following BIFR direction to Operating Agency (OA) to ensure conversion of unsecured loans (full or in part) in to equity shares and derating of share capital, the company obtained share holder''s approval by way of special resolution through postal ballot to the effect of derating of equity and preference shares by 60% of corresponding face vale and issuance of equity shares face value in Rs.1/- per share against reduced value of relevant shares apart from converting unsecured loans of Rs.3,40,61,000/- in to equity shares of Rs.1/- each at per, application of both the resolutions being contingent upon BIFR''S approval of company''s scheme of rehabilitation. Pursuant to obtention of approval of members, the scheme has been revised in limited context of above by the OA who has forwarded the same to BIFR for approval. Subsequently BIFR has issued deficiency letter on scrutiny of DRS to IDBI (OA) with a copy to the company which has been replied by the company to OA with a copy to BIFR and the same is under examination with the former.
6. Information pursuant to AS-17
The company at present operate in one segment only (I,e, SWD) This rules out the cause of furnishing segment report under AS-17.
7. Related party disclosure in terms of AS-18:
1 There is no enterprise where control exists.
2 Other related parties in transaction with the company.
a) Key management personnel :
Shri Sunil Khetawat - Whole time Director, Shri Sandeep Khetawat - Wholetime Director
b) Relatives of Key management personal (KMP):
Shri H.P Khetawat, Smt. Shanti devi Khetawat, Smt. Shraddha Khetawat, Smt. Aekta Khetawat and Shri H.P.Khetawat (HUF), Sunil Khetawat (HUF), Sandeep Khetawat (HUF)
c) List of enterprises where key management personnel or their relatives hold the office of KMP:
M/S Kumi Agro Industries Ltd, BWL Industries (P) Ltd, Sulabh Sales Pvt. Ltd, Bhavin Polyplast Pvt. Ltd and Bhubneswari Investment Pvt. Ltd,
d) Entities under significant influence of KMP''s H.P.Khetawat (HUF)
8. Information Pursuant to AS-22
In absence of virtual certainty of future taxable profit to realize deferred tax assets accrued till date on account of unabsorbed loss & unabsorbed depreciation, no deferred tax asset has been recognized as a measure of prudence as laid down under para 19 of AS-22. This also contributed to ignoring AS-22 in its totality.
9. Impairment of Fixed Assets:-
Test of impairment undertaken in recent past revealed recoverable value of the CGW under net selling price method significantly higher than it''s carrying cost, as such no impairment provision is called for.
10. The workforce of the Company is meager six including two whole time directors who are waiving their substantial remuneration. Gratuity liability paid as per the advice of LIC for Annual Premium amounts to Rs.4,950/- only (previous year Rs.75,000/-) Liability on account of Leave Salary amount to mere Rs.5,630/- (previous year Rs.27,614/-) for the year according to management estimate based on all employees retiring on Balance Sheet date. Ascertainment of Liability as laid down under AS-15 (revised) involves considerable cost which is difficult for this company to withstand. In view of this the company has accounted for these liabilities as per accounting policy No. 2A(g), It may be mentioned here in that under any circumstances existing book liability towards leave salary is bound to be higher than actuarial computation.
11. Depending on disclosure mandated for entities under MSMED Act,2006 to reveal their identity in correspondences, bills & challan etc, no transaction is observed to have been entered into by the company during the year with any party belonging to micro and small category under MSMED Act,2006.
12. The Company has no Bank or Institutional borrowings. Lion''s share of borrowing relates to sources of Promoters which are of the nature of quasi capital. It has been already stated in appropriate note that major part of quasi capital is poised for conversion in to equity shares so as to render net worth positive. Beside the management aspires to revertilise the unit by implementation of package under consideration of BIFR. These are raison de''etre of going concern assumption guiding accounting policies.
13. Draft scheme for Rehabilitation of the Company is lying with the appropriate authority for circulation to the Stake holders & approval. At this strenuous point of time it is difficult to find an eligible independent director for which remuneration committee is unable to conform to required composition under LA - 49 and Companies Act''1956 for which company is helpless.
14. Figures for the previous reporting period have been regrouped and rearranged wherever necessary.
Mar 31, 2010
As At 31st March, 2010 As At 31st March 2009 (Rs) (Rs)
1 Contingent Liabilities Not Provided For:
A) Counter Guarantee Given By The Company
To Banks For Guarantees Given By them. 311,985 654,585
B) Demand For Sales Tax And Entry Tax
Which Are Contested By The Company. 68.334.83 58,573,919
C) Demand For Income Tax Under Appeal. 635,439 635.439
D) Demand for Excise/Custom Duty under appeal 3,140,167 3,539,191
E) Demand from ESI authorities which has been protested by the company. 13,242,753 13,242,753
F) Award issued by the Honble High Court of ChhatSsgarti/Labour court under Industrial dispute Act which has contested by the company. 2,960,000 2,960.000
H) Compensation Claim by one service provider contested by the company. 23,900 23,900
2 Honble BIFR directed IDBI Bank the operating Agency (OA) to conduct Techno Economic Viability Study (TEVS) of Steel Wire Division and value fixed assets of two divisions of the company through reputed agencies apart from directing company to submit Draft Rehabilitation Scheme (DRS).
Pursuant to companys submission of DRS to OA, the latter submitted it to Honble BIFR. The same has been directed for revision by the company which is pending fordisposal of Land & Building of OFC Division.
3 Information pursuant to AS-17.
Pursuant to the decision of the management (duly approved in the extra ordinary general meeting held on 07.05.2007) to dispose of OFC Division and discontinuing if s operation, the particulars of the division appear under discontinued operation warranting disclosure under AS-24. Consequently, the company at present operate in one segment only (i.e. SWD). This rules out the cause of furnishing segment report under section AS-17.
4 Related party disclosure in terms of AS-18 issued by ICAI:
1 There is no enterprise where control exists for the purpose of disclosure under above standard.
2 Other related parties in transaction with the company.
a) Key management personnel:
Shri Sunil Khetawat - Whole time Director, Shri Sandeep Khetawat: Whotetime Director
b) Relatives of each key management personnel:
Shri H.P. Khetawat Smt Shanti Devi Khetawat, Smt Shraddha Khetawat, Smt. Aekta Khetawat and Shri H.P. Khetawat (HUF). H.P. Khetawat & Sons, Sunil Khetawat & sons, Sunil Khetawat (HUF), Sandeep Khetawat (HUF).
c) List of enterprises where key mangement personnel or their relatives hold the office of a Key Management personnel:
M/s. Kumi Agro Industries Limited, BWL Industries (P) Limited, Sulabh Sales (P) Ltd., Integrated Teleacc (P) Ltd., Bhavin Polyplast (P) Ltd.
5 Information pursuant to AS-22:
In absence of virtual certainty of future profit to realise deferred tax assets accrued ttl date on account of unabsorbed toss & depreciation, no deferred tax asset has been recognised as a measure of prudence as laid down under 19 of AS-22. This also contributed to ignoring AS-22 in its totality.
6 Impairment of Fixed Assets :
The company has undertaken test of impairment of Fixed Assets close to the balance sheet date in respect of SWD, the lone cash generating (CGU) unit based on net selling price method as recoverable value. Recoverable value proving higher then caning cost, no provision has been made in this regard.
7 Information pursuant to AS-19 :
The lease rental charged to revenue amounted to Rs.60000/-, (previous period Rs.90000/-) for the year ended 31st March, 2010 against vehicle taken on operational lease.
8 Debts recovabte includes Rs.72340/-, (previous period Rs.515636/-) being due from BWL Industries (P) Ltd., a company sharing Directors are common with the company.
9 AddWonal Information As Required Under Part-ll Of The Schedule-Vi of The Companies Act 1956 A) Quantitative And Other Information At Required To Be Furnished As Under:
1) Licensed Capacity : a) 24,460 Mt Of Various Types Of Steel Wires (Various Sizes Of Mild Steel Wires. Low Carbon Wires,
High Carbon Wires, Stainless Steel Wires, Coated And Uncoated, Plain And Strand As Per Letter Of Intent Issued By The Central Government - Previous Year 24,460 Mt).
b) 50000 Nos. Tension Set Galvanised Tension Bar (previous year Rs.50000 Nos.) 50000 Sets suspension set demountable pully Article of Aluminium (Previous year Rs.50000 Nos.) 1200 Nos. Parts of Tower and mast structures for transmission (previous year Rs.12000 Nos.)
2) Installed Capacity: a) 24,000 Mt (Previous Year 24,000 Mt)
b) 20000 Nos. Tension SetGarvanisedTension Bar (previous year Rs.20000 Nos.) 20000 Sets Suspension Set Demountable Pully Article of Aluminium (Previous year Rs.20000 Nos.) SIA Registration No.2018/SIA/INO/2008 dtd.03.07,2008 issued by ministry of comerce of Industry.
10 Figure for The Previous Period Have Been Regrouped And Rearranged Wherever Necessary. Figures of Current Year are not comparable with those of previous period due to previous period relates to 18 months as against current figures relate to financial year 2009-10.