Home  »  Company  »  Emtex Inds.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Emtex Industries (India) Ltd.

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.

 
Subscribe now to get personal finance updates in your inbox!