Home  »  Company  »  Gaekwar Mills Lt  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Gaekwar Mills Ltd.

Mar 31, 2014

NOTE 1:

The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10th September, 2009, the Hon. Bombay High Court accorded sanction to a scheme of Compromise/ Arrangement under section 391 to 393 of the Companies Act, 1956, for the revival of the Company and has stayed the Winding-up order dated 4th February, 2008.

NOTE 2:

Non-Convertible Debentures (Series A)

means 8 years (redeemable on or before the expiry of 8 years) Secured Non-Convertible Debentures, each of the face value of Rs. 1,00,000/- at par carrying 0% interest for the first three years (upto 09/10/2012), thereafter carrying interest in the 4th and 5th years at 9% p.a. and thereafter until maturity at 12% p.a and secured by way of floating charge upon all the present and future assets of the Company.

Accordingly interest on these Debentures has been provided for the year 2013/14 @ 9% p.a. amounting to Rs 2,70,00,000/-.

Non-Convertible Debentures (Series B)

means 7 years (redeemable on or before the expiry of 7 years) Zero Percent Secured Non-Convertible Debentures, each of the face value of Rs. 1,00,000/- at par and secured by way of charge on all fixed assets of the Company, ranking pari-passu with the chargeholder of Series A Debentures and floating charge on all other assets of the Company, both present and future. The pari passu charge to be restricted upto Rs. 5 crores only.

NOTE 3: RELATED PARTY DISCLOSURE:

A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

II Other related parties where controls/ significant influence exist:

Homi Mehta & Sons Pvt. Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with related parties referred in (A) above in ordinary course of business: NIL

NOTE 4:

(i) As per the Scheme of Compromise sanctioned by the Bombay High Court in 2009, amounts aggregating to Rs. 9.71 crores were payable to erstwhile workmen, based on Recovery Certificates in respect of 2,185 workmen issued in the year 2003 by Asst. Labour Commissioner, Navsari. The Company thereupon deposited with the Mamlatdar, Gandevi Rs. 3.03 crores and issued cheques in favour of individual workmen aggregating to Rs. 6.63 crores, thus satisfying the claims entirely.

In terms of the latest order passed by Justice Patel of the Bombay High Court on 15/01/2014, the Mamlatdar, Gandevi was asked to transfer all unclaimed amounts of the workmen to the Official Liquidator, Bombay High Court, which has been implemented.

(ii) Subsequent to the sanction of the Scheme, further Recovery Certificates were issued by the Asst. Labour Commissioner, Navsari, in respect of 386 workmen aggregating to Rs. 1,89,83,135.

The Official Liquidator wrote to the Controlling Authority under the Payment of Gratuity Act that these fresh claims are not payable as the relevant orders had been passed after date of winding up of the Company, and without mandatory sanction from the Bombay High Court, where liquidation proceedings are still pending.

Taking cognizance of this information, the Controlling Authority passed an order dated 02/08/2011 withdrawing the Recovery Certificates.

Withdrawal of the said orders was challenged by a group of workmen before the Gujarat High Court., wherein the Hon Gujarat High Court has upheld the order of the Controlling Authority.

The said order of the Gujarat High Court has been further challenged by the group of workmen before the Hon. Supreme Court of India. The Special Leave Petition filed by the workmen is yet to be admitted by the Hon. Supreme Court.

The Company has been advised that no provision be made in the accounts for the additional amount of Rs. 1,89,83,135. However the Company has provision of Rs. 73,08,495 for Gratuity and other related claims carried over from an earlier year.

NOTE 5:

Previous year''s figures have been regrouped, recast or reclassified wherever necessary.

NOTE 6:

Earnings per share has been computed with reference to losses of Rs. 21,824,653/- and 200,000 equity shares (Previous Year Rs. 14,436,979/- and 89,000 equity shares)

There is no diluted earnings per share as there are no dilutive potential equity shares.

NOTE 7:

In the opinion of the directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances, in the ordinary course of Business, would not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities is adequate.

NOTE 8:

Contingent Liability provided for Rs. NIL(NIL)

A) Expenses in Foreign Currency NIL NIL

B) Earning in Foreign Exchange NIL NIL


Mar 31, 2013

NOTE 1:

The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10th September, 2009, the Hon. Bombay High Court accorded sanction to a scheme of Compromise/ Arrangement under section 391 to 393 of the Companies Act, 1956, for the revival of the Company and has stayed the Winding-up order dated 4th February, 2008.

NOTE 2:

Debentures means 8 years (redeemable on or before the expiry of 8 years) Secured Non-Convertible Debentures, each of the face value of Rs. 1,00,000/- at par and each, allotted to the strategic Investor- Platinum Square Pvt Ltd, accompanied by a detachable warrant entitling to subscribe for 13 Equity Shares of the face value of Rs. 100/- at par, carrying 0% interest for the first three years, thereafter carrying interest in the 4th and 5th years at 9% p.a. and thereafter until maturity at 12% p.a and secured by way of floating charge upon all the present and future assets of the Company. Accordingly interest on these Debentures have been provided for the period 9-10-2012 to 31-03-2013 @ 9% p.a. amounting to Rs 1,27,97,260/- for the year.

NOTE 3: RELATED PARTY DISCLOSURE:

A. Relationship:

I Key Management Personnel: 1. Mr. Homi Framroze Mehta

II Other related parties where controls/ significant influence exist: Homi Mehta & Sons Pvt. Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with related parties referred in (A) above in ordinary course of business: NIL

NOTE 4:

(i) As per the Scheme of Compromise sanctioned by the Bombay High Court, amounts aggregating to Rs. 9.71 crores were payable to erstwhile workmen, based on Recovery Certificates in respect of 2,185 workmen issued in the year 2003 by Asst. Labour Commissioner, Navsari. The Company has already deposited with the Mamlatdar, Gandevi an amount of Rs. 3 crores and issued cheques in favour of individual workmen aggregating to Rs. 6.63 crores, thus satisfying the claims entirely.

(ii) The Company has now been informed that, subsequently to the sanction of the Scheme, further Recovery Certificates have been issued by the Asst. Labour Commissioner, Navsari, in respect of 386 workmen aggregating to Rs. 1,89,83,135. The Official Liquidator attached to Bombay High Court wrote to the controlling Authority under Payment of Gratuity Act that these fresh claims are not payable as the relevant orders had been passed after date of winding up of the Company, and without mandatory sanction from the Bombay High Court, where liquidation proceedings are still pending. Taking cognizana of this information, the controlling Authority passed an order dated 02/08/2011 withdrawing the Recovery Certificates.

(iii) Withdrawal of the said orders has been challenged by a group of workmen before the Gujarat High Court. The company is defending the proceedings.

(iv) The Company has been advised that these fresh claims are not payable, and accordingly no provision has been made in the accounts for the additional amount of Rs. 1,89,83,135. However the Company has provision of Rs. 76,40,682/- for Gratuity and other related claims carried over from an earlier year.

NOTE 5:

Previous year''s figures have been regrouped, recast or reclassified wherever necessary.

NOTE 6:

Earnings per share has been computed with reference to losses of Rs. 14,436,979/- |

(Previous Year Rs.14,97,100/-) and total number of equity shares 89,000.

There is no diluted earnings per share as there are no dilutive potential equity shares.

NOTE 7:

In the opinion of the directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances, in the ordinary course of Business, would not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities is adequate.

NOTE 8:

Contingent Liability provided for Rs. NIL.(NIL)

A] Expenses in Foreign Currency NIL NIL

B] Earning in Foreign Exchange NIL NIl


Mar 31, 2012

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10th September, 2009, the Hon. Bombay High Court accorded sanction to a scheme of Compromise/Arrangement under section 391 to 393 of the Companies Act, 1956, for the revival of the Company and has stayed the Winding-up order dated 4th February, 2008.

2. Debentures means 8 years (redeemable on or before the expiry of 8 years) Secured Non-Convertible Debentures, each of the face value of Rs. 1,00,000/- at par and each, allotted to the strategic Investor- Platinum Square Pvt. Ltd, accompanied by a detachable warrant entitling to subscribe for 13 Equity Debentures of the face value of Rs. 100/- at par, carrying 0% interest for the first three years, thereafter carrying interest in the 4th and 5th years at 9% p.a. and thereafter until maturity at 12% p.a. and secured by way of floating charge upon all the present and future assets of the Company.

3. AS 18 - Related Party Disclosures:

A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

II Other related parties where controls/ significant influence exist: Homi Mehta & Sons Pvt. Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with related parties referred in (A) above In ordinary course of business: NIL

4. As per the Scheme of Compromise sanctioned by the Bombay High Court, amounts aggregating to Rs. 9.71 crores were payable to erstwhile workmen, based on Recovery Certificates in respect of 2,185 workmen issued in the year 2003 by Asst. Labour Commissioner, Navsari. The Company has already deposited with the Mamlatdar, Gandevi an amount of Rs. 3 crores and issued cheques in favour of individual workmen aggregating to Rs. 6.63 crores, thus satisfying the claims entirely.

The Company has now been informed that, subsequently to the sanction of the Scheme, further Recovery Certificates have been issued by the Asst. Labour Commissioner, Navsari, in respect of 386 workmen aggregating to Rs. 1,89,83,135. The Official Liquidator attached to Bombay High Court wrote to the controlling Authority under Payment of Gratuity Act that these fresh claims are not payable as the relevant orders had been passed after date of winding up of the Company, and without mandatory sanction from the Bombay High Court, where liquidation proceedings are still pending. Taking cognizance of this information, the controlling Authority passed an order dated 02/08/2011 withdrawing the Recovery Certificates.

Withdrawal of the said orders has been challenged by a group of workmen before the Gujarat High Court. The company is defending the proceedings.

The Company has been advised that these fresh claims are not payable, and accordingly no provision has been made in the accounts for the additional amount of Rs. 1,89,83,135. However the Company has provision of Rs. 76,40,682/- for Gratuity and other related claims carried over from an earlier year.

5. Previous year's figures have been regrouped, recast or reclassified wherever necessary.

6. Earnings per share has been computed with reference to losses of Rs. 14,97,100/-

(Previous Year Rs. 99,34,062/-) and total number of equity shares 89,000 (Previous Year 50,000 shares). There is no diluted earnings per share as there are no dilutive potential equity shares.

7. In the opinion of the directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances, in the ordinary course of Business, would not be less than the amount at which they are stated in the Balance Sheet and provision for all known liabilities is adequate.

8. Contingent Liability provided for Rs. NIL.

A) Expenses in Foreign Currency NIL NIL

B) Earning in Foreign Exchange NIL NIL

Notes :

1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard-3 notified by the Companies Act, 1956.

2. Cash and Cash equivalent represent cash and bank balances.

3. Previous Year's figures regrouped/recast wherever necessary.


Mar 31, 2011

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10th September 2009, the Hon. Bombay High Court accorded sanction to a Scheme of compromise / arrangement under section 391 to 393 of the Companies Act 1956 for revival of the Company and ha stayed the winding up order date d4th February 2008.

2. Debentures mean 8 years (redeemable on or before expiry of 8 years) Secured Non- Convertible Debentures, each of the face value of Rs. 1,00,000/- at par and each, allotted to strategic investor - Platinum Square Pvt. Ltd., Mumbai, accompanied by a detachable warrant entitling to subscribe for 13 Equity shares of the Face Value of Rs. 100/- at par, carrying zero % interest for the first three years, thereafter carrying interest in the 4th and 5th year @ 9% p.a. and thereafter until maturity @12%p.a. and secured by way of floating charge on all the present and future assets of the Company.

3. Additional information required under Schedule VI to the Companies Act, 1956: Expenditure & earnings in Foreign Currency: NIL (Previous year: NIL)

4. Earning per share has been computed with reference to loss of Rs. 99,34, 062 (Previous year Loss of Rs. 1,60,28,491). There is no diluted earning per share as there are no dilutive potential equity shares.

5. AS 18- Related Party Disclosures:

A. Relationship:

I. Key Management Personnel:

1. Mr. Homi Framroze Mehta

II. Other related parties where controls / significant influence exist:

1. Homi Mehta & Sons Pvt. Ltd.

Related Party relationship is as identified by the Company and relied on by Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: NIL

6. As per the Scheme of Compromise sanctioned by the Bombay High Court, amounts aggregating to Rs. 9.71 crores were payable to erstwhile workmen, based on Recovery certificates in respect of 2185 workers issued in the year 2003 by Asst. Labour commissioner, Navsari. The Company has already deposited with the Mamlatdar Gandevi an amount of Rs. 3 crores and issued cheques in favour of individual workmen aggregating to Rs. 6.63 crores thus satisfying the claims entirely.

The Company has now been informed that subsequent to the sanction of the scheme, further recovery certificates have been issued by Asst. Labour commissioner Navsari, in respect of 386 workmen, aggregating to Rs. 1,89,83,135. However, the Company has Provision of Rs. 76,40,682/- for gratuity and other related carried over from an earlier year.

7. Previous year's figures have been regrouped, recast or reclassified where ever necessary.


Mar 31, 2010

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10th September, 2009, the Hon. Bombay High Court accorded sanction to a Scheme of Compromise/ Arrangement under section 391 to 393 of the Companies Act, 1956, for the revival of the Company and has stayed the Winding-up order dated 4th February 2008.

2. Debentures means 8 years (redeemable on or before the expiry of 8 years) Secured Non-Convertible Debentures, each of the face value of Rs. 1,00,000 at par allotted to the Strategic Investor - Platinum Square Pvt Ltd, Mumbai, accompanied by a detachable warrant entitling to subscribe for 13 Equity shares of the face value of Rs. 100/- at par, carrying zero % interest for the first three years, thereafter carrying interest in the 4th and 5th years at 9% p.a and thereafter until maturity at 12% p.a and secured by Equitable Mortgage of the land and having a floating charge on all the assets of the company.

In terms of the Scheme of Compromise/Arrangement under sections 391 to 393 of the Companies Act, 1956 as approved by the Hon. Bombay High Court on 9th September, 2010 and further modified by the Hon. Bombay High Court vide their orders dated 6th January, 2010, 7th January 2010 and 8th April, 2010 the amounts payable by the Strategic Investor in respect of the Debentures are as below:

4. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts at the amounts determined by the Scheme of Compromise/Arrangement under section 391 to 393 of the Companies Act, 1956 sanctioned by the Hon. Bombay High Court vide its order dated 10th September 2009 and further modified by the subsequent orders dated 6th January, 2010,7th January 2010 and 8th April, 2010.

5. Additional information required under Schedule VI to Companies Act, 1956:

Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

6. Earning per share has been computed with reference to loss of Rs. l,60,28,491/-(Previous year loss of Rs 1,18,64,210/-). There is no diluted earning per share as there are no dilutive potential equity shares.

7. AS 18 - Related Party Disclosures:

A. Relationship:

I Kev Management Personnel:

1. Mr. Homi Framroze Mehta

II Other related parties where controls/significant influence exist:

Homi Mehta & Sons Pvt Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

8. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2009

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10,th September, 2009, the Hon.Bombay High Court accorded sanction to a Scheme of Compromise/Arrangement under section 391 to 393 of the Companies Act, 1956, for the revival of the Company and has stayed the Winding-up order dated 4th February 2008.

2. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts at the amounts determined by the Scheme of Compromise/Arrangement under section 391 to 393 of the Companies Act, 1956 sanctioned by the Hon. Bombay High Court vide its order dated 10th September 2009 and further modified by the subsequent orders dated 6th January, 2010,7th January 2010 and 8th April, 2010.

3. Additional information required under Schedule VI to Companies Act, 1956: Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

4. Earning per share has been computed with reference to loss of Rs. l,18,64,210/-(Previous year loss of Rs 42,345/-). There is no diluted earning per share as there are no dilutive potential equity shares.

5. AS 18 - Related Party Disclosures:

A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

II Other related parties where controls/significant influence exist:

Homi Mehta & Sons Pvt Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

6. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2008

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court. Subsequently, on 10th September, 2009, the Hon.Bombay High Court accorded sanction to a Scheme of Compromise/Arrangement under section 391 to 393 of the Companies Act, 1956, for the revival of the Company and has stayed the Winding-up order dated 4th February 2008.

2. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts at the amounts determined by the Scheme of Compromise/Arrangement under section 391 to 393 of the Companies Act, 1956 sanctioned by the Hon. Bombay High Court vide its order dated 10th September 2009 and further modified by the subsequent orders dated 6th January, 2010,7th January 2010 and 8* April, 2010.

3. Since no interest is payable on the Secured Loans for year under review in view of the Orders of the Hon. Bombay High Court referred to in para (2) above, no provision for interest on Secured Loans has been made in the accounts.

4. Additional information required under Schedule VI to Companies Act, 1956: Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

5. Earning per share has been computed with reference to loss of Rs. 42,345/-(Previous year loss of Rs 9,945/-). There is no diluted earning per share as there are no dilutive potential equity shares.

6. AS 18 - Related Party Disclosures:

A. Relationship:

I Key Management Personnel; 1. Mr. Homi Framroze Mehta

II Other related parties where controls/significant influence exist:

Homi Mehta & Sons Pvt Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

7. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2007

1. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts in terms of notes no. 2 & 3 above. The excess/short provision has been written back/provided for in the accounts for the year ended 31.3.2002.

2. Since no interest is payable on the Secured Loans for year under review in view of the Orders of the Hon. Bombay High Court, no provision for interest on Secured Loans has been provided for in the accounts.

3. Additional information required under Schedule VI to Companies Act, 1956:

Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

4. Earning per share has been computed with reference to loss of Rs. 9,94S/-(Previous year loss of Rs 2,37,621/-). There is no diluted earning per share as there are no dilutive potential equity shares.

5. AS 18 - Related Party Disclosures:

A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

2. Mr. Khurshed K. Kotwal

3. Mr. Rasheed A. Maskati

4. Mr. N.O.Parekh

II Other related parties where controls/significant influence exist: Homi Mehta & Sons Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

6. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2006

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court in Company Petition no. 228 of 1987 and upon the opinion expressed by the Hon. BIFR in case no. 57 of 1987 which was converted into Company Petition and numbered as CP/ 735 of 2004.

Subsequent to the winding up order as above, the shareholders and the promoters of the company who along with their friends, relatives and associates who held and controlled about 56% of the paid-up Share Capital of the company (hereinafter referred to as the Applicants), propounded a scheme under Section 391 to 393 of the Companies Act, 1956 for the revival of the company. The Hon. Bombay High Court vide its order dated 10th September, 2009 has accorded sanction to a scheme of Compromise/Arrangement under sections 391 to 393 of the Companies Act 1956, inter alia, for revival of the company. The scheme was further modified by the subsequent orders of the Hon. Bombay High Court dated 6th January 2010 and 7th January 2010.

Under the said revival scheme PLATINUM SQUAARE PVT LT., Mumbai is the Strategic Investors in the Company who would provide the funds to the extent of Rs. 30 crores, over a period of time, for payment of existing negotiated/settled liabilities to the Creditors of the Company (comprising of the Secured Creditors, Statutory dues, Workers and Unsecured Creditors) and for the revival of the companys operation. The Company shall issue to Platinum Square Pvt Ltd 8 years Secured Redeemable Non Convertible Debentures each of the face value of Rs.l, 00,000 at par and each debentures shall be accompanied by a detachable warrant entitling the holder to subscribe for 13 equity shares of the face value of Rs.l00 at par within 18 months from the allotment of the Warrants..

In the scheme of Compromise/arrangement referred to above, the company has allotted 3000 8 years Secured R Redeemable Non Convertible Debentures each of the face value of Rs.l, 00,000 at par on 9th of October 2009.The amount paid up on each debentures as on date is Rs.l 7,500/- amounting to Rs. 5,25,00,000/-

2. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts in terms of notes no. 2 & 3 above. The excess/short provision has been written back/provided for in the accounts for the year ended 31.3.2002.

3. Since no interest is payable on the Secured Loans for year under review in view of the Orders of the Hon. Bombay High Court, no provision for interest on Secured Loans has been provided for in the accounts.

4. Additional information required under Schedule VI to Companies Act, 1956:

Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

5. Earning per share has been computed with reference to loss of Rs. 2,3 7,621/-(Previous year loss of Rs 1,44,963/-). There is no diluted earning per share as there are no dilutive potential equity shares.

6. AS 18 - Related Party Disclosures: A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

2. Mr. Khurshed K.Kotwal

3. Mr. Rasheed A. Maskati

4. Mr. N.O.Parekh

II Other related parties where controls/significant influence exist: Homi Mehta & Sons Pvt Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

7. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2005

1. The Company was wound up by an order dated 4th February 2008 passed by the Hon. Bombay High Court in Company Petition no. 228 of 1987 and upon the opinion expressed by the Hon. BIFR in case no. 57 of 1987 which was converted into Company Petition and numbered as CP/ 735 of 2004.

Subsequent to the winding up order as above, the shareholders and the promoters of the company who along with their friends, relatives and associates who held and controlled about 56% of the paid-up Share Capital of the company (hereinafter referred to as the Applicants), propounded a scheme under Section 391 to 393 of the Companies Act, 1956 for the revival of the company. The Hon. Bombay High Court vide its order dated 10th September, 2009 has accorded sanction to a scheme of Compromise/Arrangement under sections 391 to 393 of the Companies Act 1956, inter alia, for revival of the company. The scheme was further modified by the subsequent orders of the Hon. Bombay High Court dated 6th January 2010 and 7th January 2010.

Under the said revival scheme PLATINUM SQUAARE PVT LT., Mumbai is the Strategic Investors in the Company who would provide the funds to the extent of Rs. 30 crores, over a period of time, for payment of existing negotiated/settled liabilities to the Creditors of the Company (comprising of the Secured Creditors, Statutory dues, Workers and Unsecured Creditors) and for the revival of the companys operation. The Company shall issue to Platinum Square Pvt Ltd 8 years Secured Redeemable Non Convertible Debentures each of the face value of Rs.l, 00,000 at par and each debentures shall be accompanied by a detachable warrant entitling the holder to subscribe for 13 equity shares of the face value of Rs.100 at par within 18 months from the allotment of the Warrants..

In the scheme of Compromise/arrangement referred to above, the company has allotted 3000 8 years Secured Redeemable Non Convertible Debentures each of the face value of Rs.1, 00,000 at par on 9th of October 2009. The amount paid up on each debentures as on date is Rs.17,500/- amounting of Rs.5,25,00,000/-

3. The Compromise/Arrangement scheme as approved by the Hon. Bombay High Court determined Liabilities of the company as below:

Interest dues to Secured Creditors:

Bank of India:

i) Simple interest at 10% p.a from 17.04.2008 to 08.12.2009

ii) Simple interest at 12% p.a from 09.12.2009 till the date of payment, which is not later than 31st March, 2010

Union Bank of India:

i) Simple interest at 10% p. a from 01.06.2008 to 08.12.2009

ii) Simple interest at 12% p. a from 09.12.2009 till the date of payment, which is not later than 31st March, 2010

4. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts in terms of notes no. 2 & 3 above. The excess/short provision has been written back/provided for in the accounts for the year ended 31.3.2002.

5. Since no interest is payable on the Secured Loans for year under review in view of the Orders of the Hon. Bombay High Court, no provision for interest on Secured Loans has been provided for in the accounts.

6. Additional information required under Schedule VI to Companies Act, 1956: Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

7. Earning per share has been computed with reference to loss of Rs. l,44,963/-(Previous year loss of Rs 17,490/-). There is no diluted earning per share as there are no dilutive potential equity shares.

8. AS 18 - Related Party Disclosures:

A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

2. Mr. Khurshed K.Kotwal

3. Mr. Rasheed A. Maskati

4. Mr.N.O.Parekh

II Other related parties where controls/significant influence exist: Homi Mehta & Sons Pvt Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

9. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2004

1. The Secured Loans and the Current Liabilities & Provisions have been stated in the accounts in terms of notes no. 2 & 3 above. The excess/short provision has been written back/provided for in the accounts for the year ended 31.3.2002.

2. Since no interest is payable on the Secured Loans for the year under review, in view of the Orders of the Hon. Bombay High Court referred to in notes no. 2 & 3 above, no provision for interest on Secured Loans has been made in the accounts.

3. Additional information required under Schedule VI to Companies Act, 1956:

Expenditure & Earnings in Foreign Currency: NIL (Previous year: NIL)

4. Earning per share has been computed with reference to loss of Rs. 17,490/-(Previous year loss of Rs 16,545/-). There is no diluted earning per share as there are no dilutive potential equity shares.

5. AS 18 - Related Party Disclosures:

A. Relationship:

I Key Management Personnel:

1. Mr. Homi Framroze Mehta

2. Mr. Khurshed K. Kotwal

3. Mr. Rasheed A. Maskati

4. Mr. N.O. Parekh

II Other related parties where controls/significant influence exist:

Homi Mehta & Sons Pvt Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

B. Details of transactions with the related parties referred in (A) above in ordinary course of business: Nil.

6. Previous years figures have been regrouped, recast or reclassified wherever necessary.


Mar 31, 2001

1. The years accruing and the total accumulated, liability for Gratuity Act, 1972, or otherwise, in respect of employees still in service, as at the Balance sheet date, has not been ascertained. An ad-hoc provision, of Rs.1,05,85,296, stands, in the Accounts, against this liability.

2. As the Mills were closed throughout the year, and since

10th June 1986, no Depreciation has been provided or computed for the year or up to date and the accumulated arrears. as at 30th June, 1986, amounted to Rs.1,90,04,724.

3. The company has during the year sold Machineries, building material, Furniture & Fittings. The details of Actual Cost and Accumulated depreciation in respect of above assets is not available with the company due to closure since long. In absence of these records the value apportioned to the above items are as estimated by the management. The Loss considered is based on the above working.

4. As stated in the Notes in the past Accounts, The Cotton Corporation of India Ltd. has filed a suit, against the Company, for Rs. 9,83,036, being the alleged losses suffered because of the Company failing to take delivery of 300 Bales, of imported Cotton, contracted by the Company. The company is contesting the case .

5. Excise Duty refund of Rs. 47,15,732 received from the Government in 1979-80, has to be repaid, to it, as per the order of the Supreme Court. However, the payment has not been made, and interest is, therefore, payable, on the same, at the rate of 12% per annum. This would work out, up to the Balance Sheet date, to about Rs.1,66,45,172/- which is included under the head Sundry Creditors.

6. There are generally no confirmations, from parties, of their debit/credit balances.

7. Contingent Liabilities :

Estimated amount of contracts remaining to be executed, on Capital Account, and not provided for : Rs. 1,15,42,954 (as at the end of the previous year : Rs. 1,15,42,954).

8. Additional information required under Schedule VI to the Companies Act, 1956.

(iii) Expenditure in Foreign Currency : Rs. Nil (Previous Year ; Rs. Nil).

9. Previous years figures have been regrouped, recasted or reclassified wherever necessary.

 
Subscribe now to get personal finance updates in your inbox!