Mar 31, 2011
1. Secured Loans includes: -
A. Term loan from Financial Institutions.
I. Rs. 26.60 lacs (Previous year 26.60 lacs) are secured by exclusive
charge in favor of The Industrial Development Bank of India (IDBI) on
specified Plant and Machinery acquired out of the loan proceeds under
Equipment Finance Scheme and Assets Credit Scheme.
II. Rs. 3007.50 lacs (Previous year 3007.50 lacs) are secured by first
charge in favor of IDBI on company's Immovable and Movable assets (save
and except book debts and stock in trade) both present and future
excluding pari-passu basis those covered by exclusive charges.
III. Rs. 180.00 lacs (Previous year Rs.180.00 lacs) are secured by
exclusive charge in favor of IDBI on Plant and Machinery acquired out
of the loan proceeds under Equipment Finance Scheme and also secured by
first on all immovable and movable assets (save and except book debts
and stock-in-trade) excluding those covered by exclusive charges.
IV. Rs. 915.40 lacs (Previous year Rs. 915.40 lacs) being un-paid
interest amount on the above loan have been deferred for payment by
IDBI and are repayable in 8 quarterly installments commencing from July
1, 2002
V. Rs. 171.94 lacs (Previous year 171.94 lacs) represent interest
accrued and due to IDBI on the un-paid interest amount and include
liquidated damages/overdue interest etc.
Deferred interest amount and interest accrued & due are further secured
by extension of charge on the respective assets. The interest of Rs.
8139.79 lacs on these loans has not been provided upto March, 2009
(Previous year Rs. 8139.79 lacs Upto March, 2009). The interest amount
on these loans has not been accounted and worked out for the year under
consideration. (Refer note 4 of this schedule)
VI. The IFCI ltd has assigned of the debts of the company aggregating
to Rs.679.10 lacs in favor of invent Assets Securitization &
Reconstruction Pvt Ltd for a consideration amount of Rs.111.93 lacs.
Further interest on these loans aggregating to Rs.1495.68 lacs not
provided for in the books of accounts upto March, 2009 is considered to
be waive off. (Refer note 4 o this Schedule)
VII. Rs. 341.88 lacs (Previous year Rs.341.88 lacs) is secured by an
exclusive first charge by of hypothecation in favor of Industrial
Investment Bank of India (I I B I) on the equipments / machinery
purchased / or to be purchased out ofthe loan proceed under Equipment
Finance Scheme by IIBI and further secured by pledge of shares of
promoter directors and are also guaranteed by promoter directors ofthe
company.
Out of the above loans Rs. 135.86 lacs (Previous year 135.86 lacs) are
further secured by way of second charge on book debts and stock in
trade on pari-passu basis interse with bankers. Further Rs. 206.02 lacs
(Previous year Rs. 206.02 lacs) are secured by specific inventories.
The interest of Rs. 713.25 lats has not been provided upto March, 2009.
(Previous year Rs. 713.25 lacs) The interest amount on these loans has
not been accounted and worked out for the year under consideration.
(Refer note no. 4 of this Schedule).
A. Non Convertible Debentures includes: -
Rs. 2626.82 lacs (Previous year Rs.2626.82 lacs) are offered to be
secured by way of equitable mortgage of title deeds pertaining to
immovable properties and further secured by first charge on company's
movable properties (save and except book debts and stock in trade) both
present and future subject to prior charge created / to be created in
favor of the company's bankers. Rs. 1124.31 lacs is further secured by
pledge of shares by promoters and guaranteed by the promoter directors
of the company. The interest of Rs. 5228.81 lacs on these loans has not
been provided upto March, 2009 (Previous year Rs. 5228.81 lacs. The
interest amount on these loans has not been accounted and worked out
for the year under consideration. (Refer note no. 4 of this Schedule).
The above consists of
I. 8, 00,000 (Prev. year 8, 00,000) 15.50% Secured Redeemable Non
Convertible Debentures of Rs, 100/- each are redeemable in three equal
yearly installments commencing from 8.09.2002. Interest accrued & due
on above is Rs. 480.89 lacs (Previous year Rs. 480.89 lacs).
II. 1,50,000 (Prev. year 1,50,000) 16.00% Secured Redeemable
non-convertible Debentures of Rs. 100/- each are redeemable in three
equal yearly installments commencing from 25.08.2002. Interest accrued
& due on above is Rs. 71.62 lacs (Previous year Rs.71.62 lacs)
III. The IFCI Ltd has assigned of the 9,00,000, 17% Secured Redeemable
Non Convertible Debentures aggregating to Rs.1124.31 lacs in favor of
Invent Assets Securitization 8t Reconstruction Private Ltd for a
consideration amount of Rs. 179.92 lacs. Further interest on these
loans aggregating to Rs.2203.47 lacs not provided for in the books of
accounts upto March, 2009 is considered to be waived off.
B. From Company's Bankers.
Working capitals facilities from bankers are secured by first charge by
way of hypothecation of book debts and stock in trade and as second
charge over company's immovable and movable ' fixed assets ranking
pari passu interse with Financial Institutions and are also guaranteed
by promoter directors of the company. The interest of Rs. 14639.24 lacs
has not been provided upto March, 2009 (Previous year Rs. 14639.24
lacs). The Interest amount on these loans has not been accounted and
worked out for the year under consideration. Out of this Bank of Nova
Scotia has assigned of the debts of the company aggregating to Rs.
969.43 lacs in favor of Invent Assets Securitization and Reconstruction
Private Ltd. for a consideration amount of Rs. 59.10 lacs. Further
interest on this loan aggregating to Rs. 1936.91 lacs not provided for
in the books of accounts up to the march, 2009 is considered to be
waived off. (Refer note 4 of this Schedule).
2. Unsecured loans include:
I. 5,00,000, 16.50 % Secured Redeemable Non Convertible Debentures of
Rs. 100/- each against which no charge has been created hence the same
is treated as unsecured and included therein, of which past amount of
Rs. 95 lacs has been repaid. The said debentures were redeemable on :
31st December, 1999. The interest accrued and due is Rs. 131.08 lacs
(Previous year Rs. 131.08 lacs). The interest of Rs. 1019.66 lacs has
not been provided upto March 2009.(Previous year Rs. 1019.66 lacs).
The Interest amount on these loans has not been accounted and worked
out for the year under consideration and for the previous year (Refer
note no. 4 of this Schedule).
II. Inter corporate Loans & Deposits of Rs. 400 lacs are repayable
within one year. The interest ; accrued and due is Rs. 190.14 lacs
(Previous year Rs. 190.14 lacs). The interest of Rs. 1019.54 lacs has
not been provided upto March, 2009 (Previous year Rs. 1019.54 lacs The
interest amount on these loans has not been accounted and worked out
for the year under consideration. (Refer note no. 4 of this Schedule)
3. The company's operations were seriously hampered by the stalemate
caused by delay rehabilitating the unit under the provisions of Sick
Industrial Company's Act, 1985. Having had to refer the company to BIFR
in terms of the said Act, it had to go according to the direction of
the Hon'ble Board. Acute funds shortage due to freezing of working
capital limits with banks, delay in approving the OTS submitted by the
company to SASF; rejection of the status of the company by BIFR
necessitating appeal to AAIFR, etc, stood in the Way of the company's
ability to exploit the business opportunities. We now anxiously await
approval of the Rehabilitation Plan submitted to the Operating Agency
appointed by BIFR. Once it is approved there would be waiver of
interest and v write off by all such lenders. In view of this your
company has not provided for interest payment to the extent of Rs.
34456.54 lacs upto March 2009, which excludes interest of Rs. 5636.06
lacs waived off including waived off of Rs. 3699.15 lacs during the
previous year (Refer note no. 2, 3 & 9 of this Schedule).
4. The company has not revalued export receivables at the exchange
rate prevailing at the end of the year and accordingly the debtors are
overstated by Rs. 2.29 lacs (Previous year Rs. 1.22 lacs) and creditors
are overstated by Rs.1.02 lacs and thereby loss is understated to the
extent of Rs. 1.27 lacs (Previous year Rs. 1.22 lacs
5. In view of the continues losses the Debentures Redemption Reserve
has not been created and The. Debenture Redemption Reserve aggregating
to Rs. 633.00 lacs (Prev. year Rs. 633.00 lacs) will be created in the
year the company makes profit.
6. Debtors and Creditors balances are subject to confirmation from the
respective parties.
7. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. 2.50 lacs (Previous
year Rs. 5.65 lacs).
8. Other current liabilities includes Rs. 2073.83 lacs (Prev. year Rs.
2073.83) being amount of guarantee devolving on the banker of the
company. The interest of Rs. 3079.44 lacs has not been provided upto
March 2009 (Previous year Rs. 3779.44 lacs) The Interest amount on
these loans has not been accounted and worked out for the year under
consideration and for the previous year (Refer note no. 4 of this
Schedule).
9. Contingent Liability (not provided for):
- Disputed differential water charges and penalties charged by MIDC of
Rs. 615.41 lacs (Previous Year Rs. 656.79 lacs)
- Disputed Income tax liability for which the company has gone in
appeal Rs. 770.13 lacs (Previous year Rs.1210.70 lacs)
- Dividend of Rs. 203.21 lacs (previous year Rs. 203.21 lacs) on 5,
00,000,12% Red. Cumulative Pref. Shares of Rs. 100 each and dividend
of Rs. 6.75 lacs (previous year Rs. 6.75 lacs) on 15000, 15% Red.
Cumulative Pref. Shares of Rs. 100 each.
10. Sundry Creditors includes amounts due to Small Scale Industrial
Undertakings of Rs.63.73 lacs (Previous year Rs. 46.99 lacs) (Clause a
of schedule VII). Other than SSI Rs. 1747.22 lacs (Previous year Rs.
1809.88 lacs)
The undertaking from whom amounts outstanding for more than 30 days in
respect of small scale undertakings where such dues exceeds Rs. 1 lacs
are as under.
1. Empire Dye Chem. 2. Jessica Chemicals
3. Rehin Chemical Pvt. Ltd. 4. Industrial Roller Corporation
5. Glory Pack Industries 6. Terex Colorants
The above information has been compiled in respect of parties to the
extent to which they could be identified as small scale and ancillary
undertakings on the basis of information available with the company.
11. In the opinion of the Board of Directors all the current assets,
loans and advances have a value on realization in the ordinary course
of business equal to amount at which they are stated.
12. Segment Information Reporting as per AS-17 on Segment Reporting
for the year ended March 31, 2011
1) Information about Primary Segments.
The company has two business segments viz. processing of textile
fabrics and manufacturing of chemical intermediates. Since the segment
revenue, segment results and segment assets of the segment -
manufacturing of Chemical intermediates is less than 10% of total the
same is considered insignificant and accordingly no segment is
considered reportable.
2) Information about Secondary Segments.
Since the exports during the year is marginal and hence the data
related to geographical segment is not considered reportable.
13. The Company has not calculated deferred tax as required by AS-22
due to continuous losses incurred by the Company.
14. DIRECTORS REMUNERATION:
The company has not paid / payable remuneration to Directors under
consideration
15. Previous year's figures have been regrouped and / or rearranged
wherever considered necessary.
Mar 31, 2010
1. Secured Loans includes: -
A. Term loan from Financial Institutions.
I. Rs. 26.60 lacs (Previous year 26.60 lacs) are secured by exclusive
charge in favour of The Industrial Development Bank of India (IDBI) on
specified Plant and Machinery acquired out of the loan proceeds under
Equipment Finance Scheme and Assets Credit Scheme.
II. Rs. 3007.50 lacs (Previous year 3007.50 lacs) are secured by first
charge in favour of IDBI on companys Immovable and Movable assets
(save and except book debts and stock in trade) both present and future
excluding pari-passu basis those covered by exclusive charges.
III. Rs. 180.00 lacs (Previous year Rs. 180.00 lacs) are secured by
exclusive charge in favour of IDBI on Plant and Machinery acquired out
of the loan proceeds under Equipment Finance Scheme and also secured by
first on all immovable and movable assets (save and except book debts
and stock-in-trade) excluding those covered by exclusive charges.
IV. Rs. 915.40 lacs (Previous year Rs. 915.40 lacs) being un-paid
interest amount on the above loan have been deferred for payment by
IDBI and are repayable in 8 quarterly installments commencing from July
1, 2002
V. Rs. 171.94 lacs (Previous year 171.94 lacs) represent interest
accrued and due to IDBI on the un-paid interest amount and include
liquidated damages/overdue interest etc.
Deferred interest amount and interest accrued & due are further secured
by extension of charge on the respective assets. The interest of Rs.
8139.79 lacs on these loans has not been provided upto March, 2009
(Previous year Rs. 8139.79 lacs upto March, 2009). The interest amount
on these loans has not been accounted and worked out for the year under
consideration, (refer note 4 of this schedule)
VI. The IFCI Ltd has assigned of the debts of the company aggregating
to Rs. 679.10 lac in favour of Invent Assets Securitization &
Reconstruction Pvt Ltd for a consideration amount of Rs. 111.93 lac.
Further interest on these loans aggregating to Rs. 1495.68 lacs not
provided for in the books of accounts upto March, 2009 is considered to
be waive off. (Refer note 4 of this Schedule).
VII. Rs. 341.88 lacs (Previous year Rs.341.88 lacs) is secured by an
exclusive first charge by way of hypothecation in favour of Industrial
Investment Bank of India (I I B I) on the equipments / machinery
purchased / or to be purchased out of the loan proceed under Equipment
Finance Scheme by IIBI and further secured by pledge of shares of
promoter directors and are also guaranteed by promoter directors of the
company.
Out of the above loans Rs. 135.86 lacs (Previous year 135.86 lacs) are
further secured by way of second charge on book debts and stock in
trade on pari-passu basis interse with bankers. Further Rs. 206.02 lacs
(Previous year Rs. 206.02 lacs) are secured by specific inventories.
The interest of Rs. 713.25 lacs has not been provided upto March, 2009.
(Previous year Rs. 713.25 lacs) The interest amount on these loans has
not been accounted and worked out for the year under consideration.
(Refer note no. 4 of this Schedule).
B. Non Convertible Debentures includes: -
Rs. 2626.82 lacs (Previous year Rs.2626.82 lacs) are offered to be
secured by way of equitable mortgage of title deeds pertaining to
immovable properties and further secured by first charge on companys
movable properties (save and except book debts and stock in trade) both
present and future subject to prior charge created / to be created in
favour of the companys bankers. The interest of Rs. 5228.81 lacs on
these loans has not been provided upto March, 2009 (Previous year Rs.
5228.81 lacs). The interest amount on these loans has not been
accounted and worked out for the year under consideration. (Refer note
no. 4 of this Schedule).
The above consists of -
I. 8, 00,000 (Prev. year 8, 00,000) 15.50% Secured Redeemable Non
Convertible Debentures of Rs, 100/- each are redeemable in three equal
yearly installments commencing from 8.09.2002. Interest accrued & due
on above is Rs. 480.89 lacs (Previous year Rs. 480.89 lacs).
II. 1,50,000 (Prev.year 1,50,000) 16.00% Secured Redeemable
non-convertible Debentures of Rs. 100/- each are redeemable in three
equal yearly installments commencing from 25.08.2002. Interest accrued
& due on above is Rs. 71.62 lacs (Previous year Rs.71.62 lacs)
III The IFCI Ltd has assigned of the 9,00,000 , 17% Secured Redeemable
Non Convertible Debentures aggregating to Rs. 1124.31 lac in favour of
Invent Assets Securitization & Reconstruction Pvt Ltd for a
consideration amount of Rs. 179.92 lac. Further interest on these loans
aggregating to Rs. 2203.47 lacs not provided for in the books of
accounts upto March, 2009 is considered to be waive off. (Refer note 4
of this Schedule).
C. From Companys Bankers.
Working capitals facilities from bankers are secured by first charge by
way of hypothecation of book debts and stock in trade and as second
charge over companys immovable and movable fixed assets ranking pari
passu interse with Financial Institutions and are also guaranteed by
promoter directors of the company. The interest of Rs. 14639.24 lacs
has not been provided upto March, 2009. (Previous year Rs. 14639.24
lacs) The interest amount on these loans has not been accounted and
worked out for the year under consideration (Refer note 4 of this
Schedule).
2. Unsecured loans include:
I. 5,00,000, 16.50 % Secured Redeemable Non Convertible Debentures of
Rs. 100/- each against which no charge has been created hence the same
is treated as unsecured and included therein. The said debentures were
redeemable on 31st December, 1999. The interest accrued and due is Rs.
80.91 lacs (Previous year Rs. 80.91 lacs). The interest of Rs. 1019.66
lacs has not been provided upto March, 2009. (Previous year Rs. 1019.66
lacs) The interest amount on these loans has not been accounted and
worked out for the year under consideration (Refer note no. 4 of this
Schedule).
II. Inter corporate Loans & Deposits of Rs. 400 lacs are repayable
within one year. The interest accrued and due is Rs. 190.14 lacs
(Previous year Rs. 190.14 lacs). The interest of Rs. 1019.54 lacs has
not been provided upto March, 2009 (previous year Rs. 1019.54 lacs).
The interest amount on these loans has not been accounted and worked
out for the year under consideration (Refer note no. 4 of this
Schedule)
3. The companys operations were seriously hampered by the stalemate
caused by delay in rehabilitating the unit under the provisions of Sick
Industrial Companys Act, 1985. Having had to refer the company to BIFR
in terms of the said Act , it had to go according to the direction of
the Honble Board. Acute funds shortage due to freezing of working
capital limits with banks, delay in approving the OTS submitted by the
company to SASF, rejection of the status of the company by BIFR
necessitating appeal to AAIFR, etc, stood in the way of the companys
ability to exploit the business opportunities. We now anxiously await
approval of the Rehabilitation Plan submitted to the Operating Agency
appointed by BIFR. Once it is approved there would be waiver of
interest and write off by all such lenders. In view of this your
company has not provided for interest payment to the extent of Rs.
34,456.54 lacs, which excludes interest of Rs. 3,699.15 lacs waived off
during the year under consideration. (Refer note no. 2, 3 & 9 of this
Schedule).
4. The company has not revalued export receivables at the exchange
rate prevailing at the end of the year and accordingly the debtors are
overstated by Rs. 1.22 lacs (Previous year Rs. 1.92 lacs overstated)
and the loss is understated to the extent of Rs. 1.22 lacs (Previous
year Rs. 1.92 lacs loss understated).
5. In view of the continues losses the Debentures Redemption Reserve
has not been created and The Debenture Redemption Reserve aggregating
to Rs. 633.00 lacs (Prev. year Rs. 633.00 lacs) will be created in the
year the company makes profit.
6. Debtors and Creditors balances are subject to confirmation from the
respective parties.
7. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. 5.65 lacs (Previous
year Rs. 3.50 lacs)
8. Other current liabilities includes Rs. 2073.83 lacs (Prev. year Rs.
2073.83) being amount of guarantee devolving on the banker of the
company. The interest of Rs. 3779.44 lacs has not been provided upto
March, 2009 (Previous year Rs. 3779.44 lacs) The interest amount on
these loans has not been accounted and worked out for the year under
consideration (Refer note no. 4 of this Schedule).
9 Consequent to splitting of UTI, 1000000, 0% Preference shares of Rs.
100 each fully paid of Rs. 1000 lacs subscribed by them have been
bifurcated between the specified undertaking of the Unit Trust of India
(SUUTI) which has taken Rs. 934 lacs in its books and the remaining
amount of Rs. 66 lacs was given to UTI Mutual Fund. A One Time
Settlement has been reached with them, by which we got our dues to UTI
are assigned to M/s Invent Assets Securitization and Reconstruction
Pvt. Ltd., who have already paid the OTS amount. Therefore the said
Pref. shares now stand assigned to M/s Invent Assets Securitization and
Reconstruction Pvt. Ltd.
10. Contingent Liability (not provided for):
- Disputed differential water charges and penalties charged by MIDC of
Rs. 656.79 lacs (Previous Year Rs. 726.20 lacs)
- Disputed Income tax liability for which the company has gone in
appeal Rs. 1210.70 lacs (Previous year Rs. 1153.62 lacs)
- Dividend of Rs. 203.21 lacs (previous year Rs. 203.21 lacs) on 5,
00,000, 12% Red. Cumulative Pref. Shares of Rs. 100 each and dividend
of Rs. 6.75 lacs (previous year Rs. 6.75 lacs) on 15000, 15% Red.
Cumulative Pref. Shares of Rs. 100 each.
11. Sundry Creditors includes amounts due to Small Scale Industrial
Undertakings of Rs. 46.99 lacs (Previous year Rs. 46.99 lacs) (Clause
a of schedule VII). Other than SSI Rs. 1809.88 lacs (Prev year Rs.
1980.11 lacs)
The undertaking from whom amounts outstanding for more than 30 days in
respect of small scale undertakings where such dues exceeds Rs. 1 lacs
are as under.
1. Empire Dye Chem 2. Jessica Chemicals
3. Rehin Chemical Pvt. Ltd. 4. Industrial Roller Corporation
5. Glory Pack Industries 6. Tarex Colorants
The above information has been compiled in respect of parties to the
extent to which they could be identified as small scale and ancillary
undertakings on the basis of information available with the company.
12. In the opinion of the Board of Directors all the current assets,
loans and advances have a value on realization in the ordinary course
of business equal to amount at which they are stated.
13. Segment Information Reporting as per AS-17 on Segment Reporting
for the year ended March 31, 2010
1) Information about Primary Segments.
The company has two business segments viz. processing of textile
fabrics and manufacturing of chemical intermediates. Since the segment
revenue, segment results and segment assets of the segment -
manufacturing of Chemical intermediates is less than 10% of total the
same is considered insignificant and accordingly no segment is
considered reportable.
2) Information about Secondary Segments.
There were no exports during the year and hence the data related to
geographical segment is not applicable.
14. As per AS - 18, issued by ICAI, the disclosure of transaction with
the related parties as defined in the Accounting Standard are given
below:
(i) Key Management personnel and relatives of such personnel:
a) Shivprakash Makharia Key Management personal
b) Shri Pradeep Makharia Key Management personal
15. The Company has not calculated deferred tax as required by AS-22
due to continuous losses incurred by the Company.
16. DIRECTORS REMUNERATION:
The company has not paid / payable remuneration to Directors under
consideration
17. Previous years figures have been regrouped and / or rearranged
wherever considered necessary.