Mar 31, 2015
1. During the financial year 1996-97 the Company has imported one
Continuous Casting and Rolling Line Equipment and bonded at Customs
Warehouse,Mumbai.The Company is awaiting the final sanction of the
Rehabilitation Package, so as to ,get clear the Equipment under EPGC
Scheme with a concessional Rate of Customs Duty as a part of
Rehabilitation Package.The Equipment is inspected by the Company
officials at regular intervals. However the Equipment is not tested for
technical obsolescence, normal ware and tare, impairment loss and also
suitability for its intended use, since the said Equipment was imported
a long back. No provision is also made in the books of account for the
Customs Duty payable on the import and also Storage Charges payable to
Warehousing Corporation.
2. Depreciation for the year is provided as per Schedule II of the
Companies Act, 2013, accordingly Rs. 8,352,417/-being the remaining
Carrying amount of the assets whose remaining useful life is nil is
recognised in the opening balance of retained earnings.
3. The principal amounts waived by term lenders pursuant to the
Rehabilitation Scheme under OTS amounting to Rs.100,854,691/- is
directly credited to Capital Reserve and interest waived amounting Rs.
770,827,504/- is credited to Profit and Loss as Exceptional Items.
4. Appointment and payment of Managerial Remuneration:
a. The reappointment of Executive Director with effect from 01.04.2002
is subject to the conditions laid down in schedule XIII to the
Companies Act, 1956. However, the Company has not obtained Central
Government approval pursuant to the said conditions for payment of
remuneration from that date amounting to Rs.10,031,810/-(including for
Current yearRs.848,774/-) and accordingly the provisions of Section
309(5A) of the Companies Act, 1956 are applicable. However, the said
amount is charged to the profit and loss account as managerial
remuneration, as the management is of the view that the said provisions
are not applicable to the Company, as the matter is a part of
Rehabilitation Scheme referred to BIFR under the Sick Industrial
Companies (Special Provisions) Act, 1985.
b. The appointment of Managing Director with effect 01.01.2006 is
subject to the conditions laid down in schedule XIII to the Companies
Act, 1956. However, the Company has not obtained Central Government
approval pursuant to the said conditions for payment of remuneration
from that date amounting to Rs.9,959,153/-(including for Current year
Rs.1,029,257) and accordingly the provisions of Section 309(5A) of the
Companies Act, 1956 are applicable. However, the said amount is charged
to the profit and loss account as managerial remuneration, as the
management is of the view that the said provisions are not applicable
to the Company, as the matter is a part of Rehabilitation Scheme
referred to BIFR under the Sick Industrial Companies (Special
Provisions) Act, 1985.
5. No Debenture Redemption Reserve is created in respect of the
Debentures redeemed during the year as the said debentures were
converted into loans by the Debenture holders pursuant to the
Rehabilitation Scheme .
6. Additional Interest and Liquidated damages payable to the
financial institutions for non compliance with terms of sanctions
and/or repayment schedules amounting to Rs.6,077 lakhs (on assigned
loan) from 01.07.1997 to 31.03.2014 is not provided in the books of
account.
7. Interest on Working Capital Loans from Banks, amounting to
Rs.23,929 lakhs (including on assigned loan) from 01.07.2000 to
31.03.2014 and Rs. 2,569 lakhs for the current year is not provided in
the books of account.
8. During the year IIBI and Canara Bank have assigned their rights
titles and interests in their financial assistance granted by them
to the Company to Edelweiss Assets Reconstruction Company Limited .
Since the Company started negotiations with them for settlement no
provision is made in the books of account for additional interest and liquidated damages for the year.
9. The Company has declared dividend for the year 1995-96 in the
Annual General Meeting held on 30.12.96 and unpaid amount of Rs.
115,56,699/- has become due for transfer to Investor Education and
Protection Fund. The Company has not complied with the provisions of
Sec-205-A (1) of the Companies Act, 1956 regarding transfer of unpaid
dividend to a special bank account and the interest payable for such
non compliance amounting to Rs. 249.32 lakhs up to 31st March, 2014 and
Rs.13.87 lakhs for the year is not provided in the books of account.
However, the Company is of the opinion that the said Provisions are not
applicable to the Company, as the same is payable to the share holders
and has been included in its rehabilitation proposal as payable at a
later date.
10. The ICICI Bank Limited has assigned all the amounts due to it by
the Company to a third party with effect from 01.01.2006 on "as is
where is" basis pending legal documentation and other negotiations as
to the repayment with the third party, the total amount due as at 31st
December, 2005 including principal on account of this mutual agreement
was classified as assigned liabilities and shown as other current
liability.
11. The Company is in the process of obtaining confirmation of
balances from the parties included under Borrowings, Trade Payables and
Other current Liabilities.
12. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated, if realised in the ordinary course of business and provision
for all known liabilities have been adequately made in the accounts.
13. Disclosure of Sundry Creditors under Trade Payables is based on the
information available with the Company regarding the status of the
suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors. During the
year, there were no transactions with Micro and Small Enterprises;
hence the disclosures as per Micro, Small and Medium Enterprise
Development Act, 2006, are not applicable to the Company for the time
being.
14. The Companies main business is manufacturing of Aluminum Conductors
and other allied products and all other activities of the Company
revolve around the main business and as such there are no separate
reportable segments as per the Accounting Standard AS 17 " Segment
Reporting" as specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules, 2014.
15. In terms of Accounting Standard (AS 22) on "Accounting for Taxes on
Income" as specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014, there is a net deferred tax asset
as on 31st March, 2015. In the absence of convincing evidence regarding
the availability of sufficient taxable income in near future against
which the deferred tax asset can be adjusted, the Company has not
recognised the deferred tax asset arising due to tax effect of timing
differences at present.
16. As required by Accounting Standard (AS 28) "Impairment of Assets",
the management has carried out the assessment of impairment of assets
and no impairment loss has been recognized during the year.
17. Previous year figures are regrouped and reclassified where ever
necessary to make them comparable with those of current year.
Mar 31, 2014
1. NATURE OF OPERATIONS:
GALADA POWER AND TELECOMMUNICATION LIMITED was incorporated on
24.06.1972. At present, the Company is engaged in the business of
manufacturing Aluminum conductors and other allied products.The Company
has recorded a net loss of Rs.9,062.03 Lakhs for the year and has
accumulated losses of Rs.77,063.49 Lakhs as at March 31,2014, resulting
in substantial erosion of the net worth. Further, there were lower cash
inflows from the existing business activities. The Company has
defaulted in payment of dues to banks / financial institutions and
could not comply with the terms of sanction and / or repayment
schedules of the lending institutions and Banks; consequently all the
lending institutions recalled the loans and the Bankers of the Company
also initiated legal proceedings for the recovery of the debts. The
matter was referred to Board for Industrial and Financial
Reconstruction (BIFR) and the Company had been declared sick. Later on,
BIFR confirmed their opinion for winding up in terms of Section 20(1)
of the Sick Industrial Companies (Special Provisions) Act, 1985 vide
order dt:14-09-2007. The Company preferred an appeal before AAIFR which
confirmed the BIFR order. The Company further preferred an appeal
before the Hon''ble High Court of Andhra Pradesh which has stayed BIFR
order and further hearings are in progress. As the Management of the
Company is of the view that an acceptable and viable rehabilitation
package can be worked out since all term lenders have in principle
consented for financial restructuring , the accompanying financial
statements have been prepared on a "going concern" basis.
2. BASIS OF ACCOUNTING:The financial statements have been prepared to
comply in all material respects with the Notified Accounting Standards
by Companies (Accounting Standards) Rules, 2006 (as amended) read with
the General Circular 15/2013 dated 13 September 2013 of Ministry of
Corporate Affairs and the relevant provisions of the Companies Act,
1956. The financial statements have been prepared in accordance with
the Generally Accepted Accounting Principles in India under the
historical cost convention and on accrual basis, except in case of
assets for which provision for impairment is made and revaluation is
carried out. The accounting policies are consistent with those used in
the previous year.
3. Rights attached to equity Shares:
The company has only one class of equity shares having a par value of
Rs.10/- per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
4 a. 17.5% Secured Redeemable Non-Convertible Debentures of Rs.100/-
each aggregating Rs.477 Lakhs issued to UTI are to be redeemed in 3
equal annual instalments starting from the end of the third year of
allotment (The date of allotment being 28th December, 1995 and 25th
August 1997). Though the same are secured by pari passu first charge on
the fixed assets of the Company, the documentation is not completed.
b. 18% Secured Redeemable Non-Convertible Debentures of Rs.100/- each
aggregating Rs.500 Lakhs issued to IDBI are to be redeemed in 3 equal
annual instalments starting from the end of the fourth year of
allotment (The date of allotment being 29th April, 1999) and secured by
pari passu first charge on the present and further fixed assets of the
Company and irrevocable personal guarantees of two of the Directors of
the Company.
c. Term Loans from IDBI and IIBI are secured by the mortgage of Land,
Buildings, Plant and Machinery and uncalled portion of capital, present
and future on pari-passu basis and irrevocable personal guarantee of
one of the Directors of the Company.
# The loans are already overdue for repayment and the Company is in
continuous default in repayments. However, as the Company''s
rehablitation proposal submitted to BIFR is pending with the Hon''ble
High Court of AP ,the loans are continued to be classified as long
term, which are otherwise current dues.
5. Appointment and payment of Managerial Remuneration:
a. The reappointment of executive director with effect from 01.04.2002
is subject to the conditions laid down in schedule XIII to the
Companies Act, 1956. However, the Company has not obtained Central
Government approval pursuant to the said conditions for payment of
remuneration from that date amounting to Rs.9,183,036/-(including for
Current year Rs.937,250/-) and accordingly the provisions of Section
309(5A) of the Companies Act, 1956 are applicable. However, the said
amount is charged to the profit and loss account as managerial
remuneration, as the management is of the view that the said provisions
are not applicable to the Company, as the matter is a part of
Rehabilitation Scheme referred to BIFR under the Sick Industrial
Companies (Special Provisions) Act, 1985.
b. The appointment of managing director with effect 01.01.2006 is
subject to the conditions laid down in schedule XIII to the Companies
Act, 1956. However, the Company has not obtained Central Government
approval pursuant to the said conditions for payment of remuneration
from that date amounting to Rs.8,929,896/ -(including for Current year
Rs. 979,491) and accordingly the provisions of Section 309(5A) of the
Companies Act, 1956 are applicable. However, the said amount is charged
to the profit and loss account as managerial remuneration, as the
management is of the view that the said provisions are not applicable
to the Company, as the matter is a part of Rehabilitation Scheme
referred to BIFR under the Sick Industrial Companies (Special
Provisions) Act, 1985.
6. No debenture redemption reserve is created in view of the losses
being suffered by the Company.
7. The Company has not received confirmation of balances from the
parties included under Trade Receivables, Loans and Advances, Trade
Payables and Other Liabilities.
8. Additional Interest and Liquidated damages payable to the financial
institutions and / or other financiers for non compliance with terms of
sanctions and/or repayment schedules amounting to Rs.30,316.18 lakhs
from 01.07.1997 to 31.03.2013 and Rs.5,418.13 lakhs for the current
year is not provided in the books of account.
9. Interest on Working Capital Loans from Banks, amounting to
Rs.20,313.31 lakhs from 01.07.2000 to 31.03.2013 and Rs. 3,616.13 lakhs
for the current year is not provided in the books of Account.
10. The Company declared dividend for the year 1995-96 in the Annual
General Meeting held on 30.12.96 and unpaid amount of Rs.115,56,699/-
has become due for transfer to Investor Education and Protection Fund.
However, the Company is of the opinion that the said amount need not be
transferred to Investor Education and Protection Fund as the same is
payable to the share holders and has been included in its
rehabilitation proposal as payable at a later date.
11. ICICI Bank Limited has assigned all the amounts due to it by the
Company to a third party with effect from 01.01.2006 on "as is where
is" basis. Pending legal documentation and other negotiations as to the
repayment with the third party, the total amount due as at 31st
December, 2005 including principal on account of this mutual agreement
was classified as assigned liabilities and shown as other current
liability.
12. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated, if realised in the ordinary course of business and provision
for all known liabilities have been adequately made in the accounts.
13. The Company''s main business is manufacturing of Aluminum Conductors
and other allied products and all other activities of the Company
revolve around the main business and as such there are no separate
reportable segments as per the Accounting Standard AS 17 "Segment
Reporting" as notified by Companies (Accounting Standards) Rules, 2006.
14. In terms of Accounting Standard (AS 22) on "Accounting for Taxes
on Income" as notified by the Companies (Accounting Standards) Rules,
2006, there is a net deferred tax asset as on 31st March, 2014. In the
absence of convincing evidence regarding the availability of sufficient
taxable income in near future against which the deferred tax asset can
be adjusted, the Company has not recognised the deferred tax asset
arising due to tax effect of timing differences at present.
15. As required by Accounting Standard (AS 28) "Impairment of Assets",
the management has carried out the assessment of impairment of assets
and no impairment loss has been recognized during the year.
S. PARTICULARS 31.03.2014 31.03.2013
NO. Rs. Rs.
16. Contingent liabilities and Commitments :
Contingent liabilities:
Bank guarantees and Letters of credit ; 3,535,862 299,59,151
Claims against the Company not
acknowledged as debts 33,542,529 294,10,856
Duty Payable on Imports in Transit 22,750,002 215,99,653
Income Tax demands disputed by the 50,54,342 50,54,342
Company
Commitments:
Estimated amounts of contracts remaining
to be executed on capital account and not
Provided for 1,190,324 -
17. Previous year figures are regrouped and reclassified where ever
necessary to make them comparable with those of current year.
Mar 31, 2013
1 NATURE OF OPERATIONS:
GALADA POWER AND TELECOMMUNICATION LIMITED has been incorporated on
24.06.1972. At present the Company is engaged in the business of
manufacturing Aluminum conductors and other allied products.
The Company has recorded a net loss of Rs.8,770.79 Lakhs for the year
and has accumulated losses of Rs.72,231.10 Lakhs as at March 31, 2013,
resulting in substantial erosion of the net worth. Further, there were
lower cash inflows from the existing business activities. The Company
has defaulted in payment of dues to banks / financial institutions and
could not comply with the terms of sanction and / or repayment
schedules of the lending institutions and Banks; consequently all the
lending institutions recalled the loans and the Bankers of the Company
also initiated legal proceeding for the recovery of the debts. The
matter was referred to Board for Industrial and Financial
Reconstruction (BIFR) and the Company had been declared sick. Later on,
BIFR confirmed their opinion for winding up in terms of Section 20(1)
of the Sick Industrial Companies (Special Provisions) Act, 1985 vide
order dt: 14-09-2007. The Company preferred an appeal before AAIFR
which confirmed the BIFR order. The Company further preferred an appeal
before the Hon''ble High Court of Andhra Pradesh which has stayed BIFR
order and further hearings are in progress. As the Management of the
Company is of the view that an acceptable and viable rehabilitation
package can be worked out, the accompanying financial statements have
been prepared on a "going concern" basis.
2. BASIS OF ACCOUNTING:
The financial statements have been prepared to comply in all material
respects with the Notified Accounting Standards by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared in accordance with the Generally Accepted Accounting
Principles in India under the historical cost convention and on accrual
basis, except in case of assets for which provision for impairment is
made and revaluation is carried out. The accounting policies are
consistent with those used in the previous year.
3. Appointment and payment of Managerial Remuneration:
a. The reappointment of executive director with effect from 01.04.2002
is subject to the conditions laid down in schedule XIII to the
Companies Act, 1956. However, the Company has not obtained Central
Government approval pursuant to the said conditions for payment of
remuneration from that date amounting to Rs. 82,45,786/-(including for
Current year Rs. 9,98,794/-) and accordingly the provisions of Section
309(5A) of the Companies Act, 1956 are applicable. However, the said
amount is charged to the profit and loss account as managerial
remuneration, as the management is of the view that the said provisions
are not applicable to the Company, as the matter is a part of
Rehabilitation Scheme referred to BIFR under the Sick Industrial
Companies (Special Provisions) Act, 1985.
b. The appointment of managing director with effect 01.01.2006 is
subject to the conditions laid down in schedule XIII to the Companies
Act, 1956. However, the Company has not obtained Central Government
approval pursuant to the said conditions for payment of remuneration
from that date amounting to Rs. 79,50,405/-(including for Current year
Rs. 9,82,694) and accordingly the provisions of Section 309(5A) of the
Companies Act, 1956 are applicable. However, the said amount is charged
to the profit and loss account as managerial remuneration, as the
management is of the view that the said provisions are not applicable
to the Company, as the matter is a part of Rehabilitation Scheme
referred to BIFR under the Sick Industrial Companies (Special
Provisions) Act, 1985.
4. No debenture redemption reserve is created in view of the losses
being suffered by the Company.
5. The Company has not received confirmation of balances from the
parties included under Trade Receivables, Loans and Advances, Trade
Payables and Other Liabilities.
6. Additional Interest and Liquidated damages payable to the
financial institutions and /or other financiers for non compliance with
terms of sanctions and/or repayment schedules amounting to Rs.29,558.99
lakhs from 01.07.1997 to 31.03.2012 and Rs.4,986.83 lakhs for the
current year is not provided in the books of account.
7. Interest on Working Capital Loans from Banks, amounting to
Rs.17,162.06 lakhs from 01.07.2000 to 31.03.2012 and Rs. 3,151.25 lakhs
for the current year is not provided in the books of Account.
8. The Company has declared dividend for the year 1995-96 in the
Annual General Meeting held on 30.12.96 and unpaid amount of
Rs.115,56,699/- has become due for transfer to Investor Education and
Protection Fund. However, the Company is of the opinion that the said
amount need not be transferred to Investor Education and Protection
Fund as the same is payable to the share holders and has been included
in its rehabilitation proposal as payable at a later date.
9. The ICICI Bank Limited has assigned all the amounts due to it by
the Company to a third party with effect from 01.01.2006 on "as is
where is" basis pending legal documentation and other negotiations as
to the repayment with the third party, the total amount due as at 31st
December, 2005 including principal on account of this mutual agreement
was classified as assigned liabilities and shown as other current
liability.
10. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated, if realised in the ordinary course of business and provision
for all known liabilities have been adequately made in the accounts.
11. The Companies main business is manufacturing of Aluminum Conductors
and other allied products and all other activities of the Company
revolve around the main business and as such there are no separate
reportable segments as per the Accounting Standard AS 17 " Segment
Reporting" as notified by Companies (Accounting Standards) Rules, 2006.
12. In terms of Accounting Standard (AS 22) on "Accounting for Taxes
on Income" as notified by the Companies (Accounting Standards) Rules,
2006. there is a net deferred tax asset as on 31st March, 2013. In the
absence of convincing evidence regarding the availability of sufficient
taxable income in near future against which the deferred tax asset can
be adjusted, the Company has not recognised the deferred tax asset
arising due to tax effect of timing differences at present.
13. As required by Accounting Standard (AS 28) "Impairment of Assets",
the management has carried out the assessment of impairment of assets
and no impairment loss has been recognized during the year.
14. Contingent liabilities and Commitments :
Particulars 31.03.2013 31.03.2012
Rs. Rs.
Contingent liabilities:
Bank guarantees and Letters
of credit; 299,59,151 177,01,099
Claims against the Company
not acknowledged as debts 294,10,856 248,62,726
Duty Payable on Imports
in Transit 215,99,653 204.49,304
Income Tax demands disputed
by the Company 50,54,342 50,54,342
15. Expenditure in Foreign Currency during the financial year on
account of travelling and other matters Rs.511,915/-( Previous year
Rs.Nil)
16. Previous year figures are regrouped and reclassified where ever
necessary to make them comparable with those of current year.
Mar 31, 2012
01 SHARE CAPITAL
a Rights attached to equity Shares
The company has only one class of equity shares having a par value of
Rs. 1/- per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amount. The distribution will be
in proportion to the number of equity shares held by the shareholders.
02 LONG TERM BORROWINGS
a. 17.5% Secured Redeemable Non-Convertible Debenture of Rs. 100/-
aggregating to Rs. 477 Lakhs issued to UTI are to be redeemed in 3
equal annual Installments starting from the end of the third year of
allotment. (The date of allotment being 28th December, 1995 and 25th
August 1997), though the same are secured by Pari Passu first charge on
the fixed assets of the Company, the documentation is not completed.
b. 18% Secured Redeemable Non-Convertible Debenture of Rs. 100/-
aggregating to Rs. 500 Lakhs issued to IDBI are to be redeemed in 3
equal annual Installments starting from the end of the fourth year of
allotment. (The date of allotment being 29th April, 1999), and secured
by Pari Passu first charge on the fixed assets of the Company and
irrevocable personal guarantees of two of the Directors of the Company.
c. Term Loans from Industrial Development Bank of India and Industrial
Investment Bank of India are secured by the mortgage at Land,
Buildings, plant and machinery and uncalled portion of capital, present
and future on Pari-Passu basis and irrevocable personal guarantee of
one of the Directors of the Company.
# The loans are already overdue for repayment and the company is in
continuous default in repayments. However, as the company's
rehabilitation proposal submitted to BIFR is pending with the Hon'ble
High Court of AP ,the loans are continued to be classified as long
term, which are otherwise current dues.
03 SHORT TERM BORROWINGS
The Working Capital facilities from Canara bank and Syndicate Bank are
secured by hypothecation of all movable assets of the company and a
second charge on all Fixed Assets of the Company and irrevocable
personal guarantees of five of the Directors of the Company could not
comply with the items of sanction, the Bankers have initiated legal
Proceedings for recovery of above details.
1 NATURE OF OPERATIONS:
GALADA POWER AND TELECOMMUNICATION LIMITED has been incorporated on
24.06.1972 At present the Company is engaged in the business of
manufacturing Aluminum conductors and other allied products.
The Company has recorded a net loss of Rs. 7,889 60 Lakhs for the year
and has accumulated fosses of Rs 63,460.30 Lakhs as at March 31, 2012.
resulting in substantial erosion of the net worth Further, there were
tower cash inflows from the existing business activities The Company
has defaulted in payment of dues to banks financial institutions and
could not comply with the terms of sanction and/or repayment schedules
or the lending institutions and Banks, consequently all the lending
institutions recalled the loans and the Bankers of the Company also
initiated legal proceeding for the recovery of the debts The matter was
referred to Board for industrial and Financial Reconstruction (BIFR)
and the Company had been declared sick. Later on BlFR confirmed their
opinion for winding up in terms of Section 20(1) of the Sick Industrial
Companies (Special Provisions) Act. 1985 vide order dt 14-09-2007 The
Company preferred an appeal before AAIFR which confirmed the BlFR order
The Company further preferred an appeal before the Hon'ble High Court
of Andhra Pradesh which has stayed BIFR order and further hearings are
in progress As the Management of the Company Is of the view that an
acceptable and viable rehabilitation package can be worked out the
accompanying financial statements have been prepared on a "going
concern" basis.
2 BASIS OF ACCOUNTING:
The financial statement have been prepared to comply in all material
respects with the Notified Accounting Standards by Companies
{Accounting Standards) Rules 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared in accordance with the Generally Accepted Accounting
Principles in India under the historical cost convention and on accrual
basis, except in case of assets for which provision for impairment is
made and revaluation is carried out The accounting policies are
consistent with those used in the previous year.
3. Appointment and payment of Managerial Remuneration:
a. The reappointment of executive director with effect from 01.04.2002
is subject to the conditions laid down in schedule XIII to the
Companies Act, 1956 However, the Company has not obtained Central
Government approval pursuant to the said conditions for payment of
remuneration from that date amounting to Rs. 7.246,992/- (including for
Current year Rs. 7,33,281/-) and accordingly the provisions of Section
309(5A) of the Companies Act, 1956 are applicable. However, the said
amount is charged to the profit and loss account as managerial
remuneration as the management is of the view that the said provisions
are not applicable to the Company, as the matter is referred for
rehabilitation under the Sick Industrial Companies (Special Provisions)
Act, 1985.
b. The appointment of managing director with effect 01.01.2008 is
subject to the conditions laid down in schedule XIII to the Companies
Act 1956 However, the Company has not obtained Central Government
approval pursuant to the said conditions for payment of remuneration
from that date amounting to Rs. 69.87,711/- (including for Current year
Rs. 9,82,694) and accordingly the provisions of Section 309(5A) of the
Companies Act, 1956 am applicable However, the said amount is charged
to the profit and loss account as managerial remuneration, as the
management is of the view that the said provisions are not applicable
to the Company, as the matter is referred for rehabilitation under the
Sick Industrial Companies (Special Provisions) Art, 1985.
4. No debenture redemption reserve is created in view of the losses
being suffered by the Company.
5. The Company has not received confirmation of balances from the
parties included under Sundry Debtors, Loans and Advances. Sundry
Creditors and Other Liabilities.
6. Additional Interest and Liquidated damages payable to the financial
institutions and Jar other financiers for non compliance with terms of
sanctions and/or repayment schedules amounting to Rs. 25,363,35 lakhs
from 01.07.1997 10 31.03.2011 and Rs. 4,195,64 lakhs for the current
year is not provided in the books of account.
7. Interest on Working Capital Loans from Banks, amounting to Rs.
14,415,93 lakhs from 01.07.2010 to 31.03.2011 and Rs. 2.746,13 lakhs
for the current year is not provided in the books or Account
8. The Company has declared dividend for the year 1995-96 in the Annual
General Meeting held on 30.12.96 and unpaid amount of Rs. 11,556,699/-
has become due for transfer to Investor Education and Protection Fund.
However, the Company is of the opinion that the said amount need not be
transferred to Investor Education and Protection Fund as the same is
payable to the share holders and has been included in its
rehabilitation proposal as payable at a later date.
9. The ICICI Bank Limited has assigned all the amounts due to it by the
Company to a third party with effect from 01.01.2006 on as is where
is basis pending legal documentation and other negotiations as to the
repayment with the third party, the total amount due as at 31st
December, 2005 including principal on account of this mutual agreement
was classified as assigned liabilities and shown as other current
liability.
10. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated if realised in the ordinary course of business and proven tor
all known liabilities have been adequately made in the accounts.
11. Disclosure of Sundry Creditors under current liabilities is based on
the Information available with the Company regarding the status of the
suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors.
12. The Companies main business Is manufacturing of Aluminum Conductors
and other allied products and all other activities of the Company
revolve around the main business and as such there are no separate
reportable segments as per the Accounting Standard AS 17 "Segment
Reporting" as notified by Companies (Accounting Standards} Rules,2006.
13. The details of related party transactions in terms of Accounting
Standard (AS 1B) am as follows
a. Names of related parties and relation with the company
i. Key Management Personnel.
Sri Dharam Chand Galada Managing Director
Sn Devendra Galada Executive Director
ii. Relatives of Key Management Personnel:
Sn Mahavir Chand Galada Father of Managing Director
Smt Snehlatha Galada Wife of Managing Director
Sri Shail Galada Son of Managing Director
Sri Shashi Galada Son of Managing Director
Sri Ewanth Kumar Parekh Son-in-law of Managing Director
14. In terms of Accounting Standard (AS 22) on "Accounting for Taxes on
Income" as notified by the Companies (Accounting Standards) Rules, 2006
there is a net deferred tax asset as on 31st March, 2012. In the
absence of convincing evidence regarding the availability of sufficient
taxable income in near future against which (he deferred tax asset can
be adjusted, the Company has not recognised the deferred tax asset
arising due to tax effect of timing differences at present
15. As required by Accounting Standard (As 28) 'Impairment of Assets'.
the management has carried out the assessment of impairment of assets
and no impairment loss has been recognized during the year
16. Contingent liabilities and Commitments;
Particulars 31.03.2012 3.03.2011
Rs. Rs.
Contingent liabilities
Bank guarantees and Letters of credit: 17.701,099 17,701.096
Claims against the Company not
acknowledged as debts 24.862,726 22.694.963
Duty Payable on imports in Transit 20.449.304 19.298.955
Income Tax demands disputed by the Company 5.054,342 5.054.342
17. Previous year figures are regrouped and reclassified where ever
necessary to make them comparable with those of Current year.
Mar 31, 2010
1. NATURE OF OPERATIONS
GALADA POWER AND TELECOMMUNICATION LIMITED has been incorporated on
24.06.1972 At present the Company is engaged in the business of
manufacturing Aluminium conductors and other allied products.
2. The Company has recorded a net loss of Rs.60, 457,781/-for the year
and has accumulated losses of Rs. 1,526,649,779/- as at March 31, 2010,
resulting in substantial erosion of the net worth. Further, there were
lower cash inflows from the existing business activities. The Company
has defaulted in payment of dues to banks / financial institutions and
could not comply with the terms of sanction and / or repayment
schedules of the lending institutions and Banks; consequently all the
lending institutions recalled the loans and the Bankers of the Company
also initiated legal proceeding for the recovery of the debts. The
matter was referred to Board for Industrial and Financial
Reconstruction (BIFR) and the Company had been declared sick and
ordered for winding up in terms of Section 20(1) of the Sick Industrial
Companies (Special Provisions) Act, 1985 by BIFR vide order dt:
14-09-2007. The Company preferred as appeal against the said order
before Appellate Authority for Industrial and Financial Reconstruction
(AAIFR), AAIFR has stayed BIFR order for winding up and further
hearings are in progress. As the Management of the Company is of the
view that an acceptable and viable rehabilitation package can be worked
out, the accompanying financial statements have been prepared on a
"going concern" basis.
3. LOANS:
a) Term Loans from Industrial Development Bank of India, Industrial
Investment Bank of India and the guarantees given by Industrial
Development Bank of India to Capital Equipment Suppliers for deferred
payment are secured by the mortgage of Land, Buildings, Plant and
Machinery and uncalled portion of capital, present and future on
Pari-Passu basis and irrevocable personal guarantee of one of the
Directors of the Company.
b) The Working Capital facilities from Canara Bank and Syndicate Bank
are secured by hypothecation of all movable assets of the Company and a
second charge on all Fixed Assets of the Company and irrevocable
personal guarantees of five of the Directors of the Company.
4. NON-CONVERTIBLE DEBENTURES:
a) 17.5% Secured Redeemable Non-Convertible Debenture of Rs.100/- each
aggregating to Rs.477 Lakhs issued to UTI are to be redeemed in 3 equal
annual instalments starting from the end of the third year of allotment
(The date of allotment being 28th December, 1995) and 25th August
1997), though the same are secured by Pari Passu first charge on the
fixed assets of the Company, the documentation is not completed.
b) 18% Secured Redeemable Non-Convertible Debentures of Rs.100/- each
aggregating to Rs.500 Lakhs issued to IDBI are to be redeemed in 3
equal annual instalments starting from the end of the fourth year of
allotment (The date of allotment being 29th April, 1999) and secured by
pari passu first charge on the present and further fixed assets of the
Company and irrevocable personal guarantees of two of the Directors of
the Company.
5. Interest Free Sales Tax Loan from Andhra Pradesh State Government
is over due for repayment.
6. Out of the deferred sales tax an amount of Rs.4,500,000 was overdue
for repayment and balance amount of Rs.2,210,843/- is payable on 1st
April, 2014.
7. Fixed Deposits of Rs.3,250,000/- ( previous year Rs.3,000,000/-)
are in the name of Executive Engineer, Electricity Department Dadra &
Nagar Haveli, Silvassa, towards Security Deposit for supply of power.
8. No debenture redemption reserve is created in view of the losses
being suffered by the Company.
9. Depreciation on fixed assets is provided under Straight Line Method
in accordance with Schedule XIV to the Companies Act 1956.
10. The value of the movable assets acquired on lease as on 31.03.2010
amounts to Rs.267.84 lakhs (previous year Rs. 267.84 lakhs). The
Company is paying Compensatory Finance charges to the iDBI, the lessor,
as the lease agreement is not yet concluded.
11. The Company has not received confirmation of balances from the
parties included under Sundry Debtors, Loans and Advances, Sundry
Creditors and Other Liabilities. Further balance with Banks in current
accounts to the extent of Rs. 7,017,790/- is also subject to
confirmation.
12. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated, if realised in the ordinary course of business and provision
for all known liabilities have been adequately made in the accounts.
13. Additional Interest and Liquidated damages payable to the financial
institutions and /or other financiers for non compliance with terms of
sanctions and/or repayment schedules amounting to Rs.17,793.27 lakhs
from 01.07.1997 to 31.03.2009 and Rs.3,624.83 lakhs for the current
year is not provided in the books of account.
14. Interest on Working Capital Loans from Banks, amounting to
Rs.9,937.39 lakhs from 01.07.2000 to 31.03.2009 and Rs. 2,085.44 lakhs
for the current year is not provided in the books of Account.
15. Disclosure of Sundry Creditors under Current Liabilities is based
on the information available with the company regarding the status of
suppliers as defined under the "Micro, small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors. During the
year, the company has paid no interest in terms of section 16 of the
said Act.
16. Details of total outstanding dues to Micro and Small Enterprises
as per Micro, Small and Medium Enterprises Act, 2006:
17. The Company has declared dividend for the year 1995-96 in the
Annual General Meeting held on 30.12.96 and unpaid amount of
Rs.11,556,699/- has become due for transfer to Investor Education and
Protection Fund. However, the Company is of the opinion that the said
amount need not be transferred to Investor Education and Protection
Fund as the same is payable to the share holders and has been included
in its rehabilitation proposal as payable at a later date.
18. The reappointment of executive director and managing director with
effect from 01.04.2002 and 01.01.2006 respectively are subject to the
conditions laid down in schedule XIII to the Companies Act, 1956.
However, the Company has not obtained Central Government approval
pursuant to the said conditions for payment of remuneration from those
dates amounting to Rs. 5,684,331/-and Rs. 5,002,522/ -respectively and
accordingly the provisions of Section 309(5A) of the Companies Act,
1956 are applicable. However, the said amount is charged to the profit
and loss account as managerial remuneration, as the management is of
the view that the said provisions are not applicable to the Company, as
the matter is referred for rehabilitation under the Sick Industrial
Companies (Special Provisions) Act, 1985.
19. The ICICl Bay Lim.ted has assigned all the amounts due to it by
the Company to a third party with effect from 01.01.2006 on "as is
where is" basis pending legal documentation ano other negotiations as
to the repayment with the third party, the total amount due as at 31st
December, 2005 including principal on account of this mutual agreement
was classified and shown as current liability under the head Sundry
Creditors.
20. The Companies main business is manufacturing of Aluminium
Conductors and other allied products and all other activities of the
Company revolve around the main business and as such there are no
separate reportable segments as per the Accounting Standard AS 17"
Segment Reporting" as notified by Companies (Accounting Standards)
Rules, 2006.
21. The details of the transactions with related parties to be
disclosed as required by Accounting Standard - 18 are as follows.
a) Names of Related parties and description of relationship.
i) Key Management Personnel
Sri Dharam Chand Galada Managing Director
Sri Devendra Galada Executive Director
ii) Relatives of Key Management Personnel
Sri Mahavir Chand Galada Father of Managing Director
Smt. Snehlatha Galada Wife of Managing Director
Sri Shall Galada Son of Managing Director
Sri Shashi Galada Son of Managing Director
Sri Ewanth Kumar Parekh Son - in - law of Managing Director
22. In terms of Accounting Standard (AS 22) on "Accounting for Taxes
on Income" as notified by the Companies (Accounting Standards) Rules,
2006. there is a net deferred tax asset as on 31st March, 2010. In the
absence of convincing evidence regarding the availability of sufficient
taxable income in near future against whiuh the deferred tax asset can
be adjusted, the Company has not recognised the deferred tax asset
arising due to tax effect of timing differences at present.
23. As required by Accounting Standard (AS 28) "impairment of Assets",
as notified by the Companies (Accounting Standards) Rules, 2006,the
management has carried out the assessment of impairment of assets and
no impairment loss has been recognised during the year.
24. Contingent liabilities not provided for on account of:
CURRENT YEAR PREVIOUS YEAR
a) Guarantees and Letters of Credit
issued by the bankers 17,701,099 17,701,099
b) Estimated liabilities to parties
against
materials 2,854,688 2,854,688
c) Claims against the Company not
acknowledged as debts 10,717,794 9,909,001
d) Duty Payable on Imports in Transit 18,148,606 16,998,257
25. Previous year figures have been regrouped wherever necessary to
make them comparable with those of current year.
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