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Notes to Accounts of Gangotri Textile Ltd.

Mar 31, 2015

1. Teams/Rights attached to Equity shares

The company has both Equity and Preference shares

(i) The Equity share have a par value of Rs.5/- per share. Each holder of Equity Shares is entitled is one vote per share.

The Company declares and pays dividend in Indian Rupees. The dividend Proposed by the Board of Directors is subject to approval of shareholders in Annual General Meeting.

For the year ended 31st March'2015, the amount of per share dividend recognized as distribution to Equity Shareholder is Nil (Previous year Nil)

In the event of liquidation of the company the holders of Equity Share will be entitled to receive remaining assets of the Company in proportion to the amount paid up as credited in such Equity shares respectively, after distribution of all preferemtial amounts.

Rights of Preference Share

2. (ii) The Company's Preference Share have a par value of Rs.100/- per share. The preference shareholders have right over the equity shareholders inrespect of declare of dividend and in the distribution of the assests in the event of liquidation of the company.

Nature OF Security TERM LOANS

a Term Loan of Rs.245 million and Funded Interest Term Loan of Rs.4.94 million sanctioned by IDBI are secured by extension of first charge on all assets of the company, present and future, except to the prior charge created/to be created (i) on specific assets covered by loans from other financial institutions and banks (ii) on specified movables (Current Assets) in favour of the Company's Bankers for working capital borrowings.

b Term Loan of Rs.76.10 million and Funded Interest Term Loan of Rs.2.36 million sanctioned by Corporation Bank is Secured by way of exclusive charge over the assets created our of the said loan

c Term Loan of Rc.15 million and Funded Interest Term Loan of Rs.20.79 million sanctioned by State Bank of India is secured by exclusive first charge over the assets financed under the term loan and second charge on the entire current assets of the Company on Pari Pasu basis and extension of charge on the fixed assets of washing unit at Perundurai

d Term Loan of Rs.100 million and Funded Interest Term Loan of Rs.23.1 Omillion sanctioned by IDBI is secured by extension of first charge on Pari Pasu basis except the assets which are exclusively charged by SBI and Corporation Bank. First Charge by way of Hypothecation in Favour of IDBI of all assets of the Company's movable (save and except book debts), including movable machinery, machinery spares, tools and accessories, present and future, subject to the prior charge created/to be created in favour of Company's bankers on the Company's stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by IDBI for securing the borrowings for working capital requirements in the ordinary course of business.

3. WORKING CAPITAL LOANS

a The working capital loan of Rs.200.30 million sanctioned by State Bank of India is secured by hypothecation of entire current assets and movable assets of the Company and a second charge over entire fixed assets of the Company on pari passu basis with other commercial bankers under consortium agreement.

b The working capital loan of Rs.28.30 million sanctioned by State Bank of Hyderabad is secured by hypothecation of the entire current assets of the Company and movable assets of the Company and a second charge on the fixed assets of the Company on pari passu basis with other commercial banks under consortium agreement.

c The working capital loan of Rs.18.70 million sanctioned by Corporation Bank is secured by hypothecation of the entire current assets of the Company and movable assets of the Company and a second charge on the fixed assets of the Company on pari passu basis with other commercial banks under consortium agreement.

4. Contingent Liabilities not provided for in the accounts.

1) Estimated amount of contract remaining to be executed on capital accounts - Rs. Nil (Previous year Rs.Nil)

2) The Company has export obligations for value of Rs.40931 lakhs under EPCG Scheme against which exports aggregating Rs.5626 lakhs including third party exports have been made on 31.03.2015. Balance obligations required to be fulfilled as per various schedules, culminating on 20.07.2015 is Rs.35305 Lakhs. If company fails to comply with obligation the customs duty of Rs.18.45 Crores along with applicable interest is to be paid to customs department and DGFT.

3) The bank has taken physical possession of unit 4, unit 9 were sold by the bank and the proceeds were adjested agsinst the loan dues. The bank has also dold unit 2 & unit 5 and adjust the proceeds against the loan due. The banks is pursuing with the SARFAESI proceedings and may sell all the units. If not is going to happen. Then there will be worker's liablility to be settled by the company.

4) The Sales Tax Department has preferred an appeal before STAT Coimbatore for the year 2002-03 for issues representing sales tax demand of Rs.1.82 lakhs which is pending before STAT, Coimbatore

5) The Sales Tax Department has preferred an appeal before STAT Coimbatore for the year 2003-04 for issues representing sales tax demand of Rs.13.54 lakhs which is pending before STAT, Coimbatore.

6) The Income Tax Department has preferred an appeal with a tax effect of Rs.5.85 lakhs before ITAT, Chennai against the Order of CIT (appeal) in favour of the Company regarding interest claim U/S 234B/234C for the Assessment Year 2004-05.

7) The Income Tax Department's appeal for assessment year 1998-99 before The Honourable High Court, Chennai against the company's stand regarding Sec 80IA has beeen decided in favour of the department and there by the likely demand on the company is estimated at Rs.1.25 lakhs.

8) The Company is out of CDR package with effect from 22.10.2012. However, the interest in various loans availed by the company has been continued to be charged based on the CDR rates. The differential interest that ought to have been provided for in the accounts is estimated at Rs.103 Crores. (1.7.2008 - 31.3.2015)

9) The company has been served with a demand notice by Maharashtra Sales Tax Department for Rs.32.46 lakhs for Issues representing reversal of input vat credit for the Assessment year 2005-06 & 2006-07. An appeal is preferred by the company.

10) The Company has received legal notice from two of the claimants and the matter is sub judice. Further one of the claimants has also proposed winding up provision in the legal notice.

9a. one claimant has attained a decree against the company for a claim of Rs. 1.18 lakhs which is being disputed by the company.

9b. one claimant who has issued a legal notice against the company for Rs.93.86 lakhs has also proposed winding up of the company.

11) The company had sold its land to the extent of 1.62 acres at Kaiapatty. The Co-owners of the erstwhile sellers to the company have filled a case against the company. The matter is sub judice.

12) The company has received a demand from the Electricity Board towards Additional Current Consumption Deposits of about Rs. 1.03 Crores (falling due on May. June and July end) for various units. This deposits yet to be paid by the company.

5. provision is recognized when there is present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and Is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to reflect best current estimate.

Names of related parties and description of relationship upto 31.03.2015

Key management Personal Sri.Manoj Kumar Tibrewal, Managing Director

Sri.Mohanlal Tibrewal, Executive Director

Sri. Manoj Kumar Tibrewal : Managing Director

Smt. Anitha Tibrewal : Wife

Mr.Mayank Tibrewal : Son

Mrs. Arpita Tibrewal : Daughter in Law

Mr.Umang Tibrewal : Son

Sri. Mohanlal Tibrewal : Executive Director

Smtlakshmi Devi Tibrewal : Wife

Mrs.Suman Tibrewal : Daughter

Mrs.Neha Tibrewal : Daughter

6. Requirement under Clause 32 of the Listing Agreement. Loans and advances in the nature of loans to subsidiaries, Firms, Associates and Companies in which Directors are interested in Rs.Nil (Previous year Nil)

7. In compliances with AS 22 relating to "Taxes on Income" the company has not recognized Deferred Tax Liability / assets for current year on account of absence of virtual certainty.

8. Previous year figures have been regrouped and reclassifed wherever necessary.

9. Figures have been rounded off to the nearest rupee.


Mar 31, 2014

A Teams/Rights attached to Equity shares

The company has both Equity and Preference shares

(i) The Equity share have a par value of Rs.5/- per share. Each holder of Equity Shares is entitled is one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend Proposed by the Board of Directors is subject to approval of shareholders in Annual General Meeting.

For the year ended 31 st March''2014, the amount of per share dividend recognized as distribution to Equity Shareholder is Nil (Previous year Nil)

In the event of liquidation of the company the holders of Equity Share will be entitled to receive remaining assets of the Company in proportion to the amount paid up as credited in such Equity shares respectively, after distribution of all preferemtial amounts. Rights of Preference Share b (ii) The Company''s Preference Share have a par value of Rs.100/- per share. The preference shareholders have right over the equity shareholders inrespect of declare of dividend and in the distribution of the assests in the event of liquidation of the company.

Nature of Security TERM LOANS

a Term Loan of Rs.245 million and Funded Interest Term Loan of Rs.4.94 million sanctioned by IDBI are secured by extension of first charge on all assets of the company, present and future, except to the prior charge created/to be created (i) on specific assets covered by loans from other financial institutions and banks (ii) on specified movables (Current Assets) in favour of the Company''s Bankers for working capital borrowings.

b Term Loan of Rs.76.10 million and Funded Interest Term Loan of Rs.2.36 million sanctioned by Corporation Bank is Secured by way of exclusive charge over the assets created our of the said loan

c Term Loan of Rs.15 million and Funded Interest Term Loan of Rs.20.79 million sanctioned by State Bank of India is secured by exclusive first charge over the assets financed under the term loan and second charge on the entire current assets of the Company on Pari Pasu basis and extension of charge on the fixed assets of washing unit at Perundurai

d Term Loan of Rs.100 million and Funded Interest Term Loan of Rs.23 lOmillion sanctioned by IDBI is secured by extension of first charge on Pari Pasu basis except the assets which are exclusively charged by SBI and Corporation Bank. First Charge by way of Hypothecation in Favour of IDBI of all assets of the Company''s movable (save and except book debts), including movable machinery, machinery spares, tools and accessories, present and future, subject to the prior charge created/to be created in favour of Company''s bankers on the Company''s stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by IDBI for securing the borrowings for working capital requirements in the ordinary course of business.

d Term Loan of Rs.150 million and Funded Interest Term Loan of Rs.9.59 million sanctioned by State Bank of Indore is secured by second charge on all present and fixed assets of the Company Term Loan for New Project from Sanctioned amount.

WORKING CAPITAL LOANS

a The working capital loan of Rs.200.30 million sanctioned by State Bank of India is secured by hypothecation of entire current assets and movable assets of the Company and a second charge over entire fixed assets of the Company on pari passu basis with other commercial bankers under consortium agreement.

b The working capital loan of Rs.28.30 million sanctioned by State Bank of Hyderabad is secured by hypothecation of the entire current assets of the Company and movable assets of the Company and a second charge on the fixed assets of the Company on pari passu basis with other commercial banks under consortium agreement.

c The working capital loan of Rs.18.70 million sanctioned by Corporation Bank is secured by hypothecation of the entire current assets of the Company and movable assets of the Company and a second charge on the fixed assets of the Company on pari passu basis with other commercial banks under consortium agreement.

2. Contingent Liabilities not provided for in the accounts.

1) Estimated amount of contract remaining to be executed on capital accounts - Rs. Nil (Previous year Rs.Nil)

2) The Company has export obligations for value of Rs.24106 lakhs under EPCG Scheme against which exports aggregating Rs.56.26 Crores including third party exports have been made on 31.03.2014. Balance obligations required to be fulfilled as per various schedules, culminating on 20.07.2015 is Rs.184.79 Crores. If company fails to comply with obligation the customs duty of Rs.18 Crores along with applicable interest is to be paid to customs department and DGFT.

3) The Sales Tax Department has preferred an appeal before STAT Coimbatore for the year 2002-03 for issues representing sales tax demand of Rs.1.82 lakhs which is pending before STAT, Coimbatore

4) The Sales Tax Department has preferred an appeal before STAT Coimbatore for the year 2003-04 for issues representing sales tax demand of Rs.13.54 lakhs which is pending before STAT, Coimbatore.

5) The Income Tax Department has preferred an appeal with a tax effect of Rs.5.85 lakhs before ITAT, Chennai against the Order of CIT (appeal) in favour of the Company regarding interest claim U/S 234B/234C for the Assessment Year 2004-05.

6) The Income Tax Department''s appeal for assessment year 1998-99 before The Honourable High Court, Chennai against the company''s stand regarding Sec 80 IA has beeen decided in favour of the department and there by the likely demand on the company is estimated at Rs.1.25 lakhs.

7) The Company is out of CDR package with effect from 22.10.2012. However, the interest in various loans availed by the company has been continued to be charged based on the CDR rates. The differential interest that ought to have been provided for in the accounts is estimated at Rs.85 Crores. (1.7.2008-31.3.2014)

8) The company has been served with a demand notice by Maharashtra Sales Tax Department for Rs.32.46 lakhs for issues representing reversal of input vat credit for the Assessment year 2005-06 & 2006-07. An appeal is being preferred by the company.

9) The Company has received legal notice from two of the claimants and the matter is sub judice. Further one of the claimants has also proposed winding up provision in the legal notice.

9a. one claimant has attained a decree against the company for a claim of Rs. 1.18 lakhs which is being disputed by the company. 9b. one claimant who has issued a legal notice against the company for Rs.93.86 lakhs has also proposed winding up of the company.

10) The company had sold its Land to the extent of 1.62 acres at Kalapatty. The Co-owners of the erstwhile sellers to the company have filled a case against the company. The matter is sub judice.

11) The company has received a demand from the Electricity Board towards Additional Current Consumption Deposits of about Rs. 1.03 Crores (falling due on May, June and July end) for various units. This deposits yet to be paid by the company.

12. A provision is recognized when there is present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to reflect best current estimate.


Mar 31, 2013

1. Contingent Liabilities not provided for in the accounts.

1) Estimated amount of contract remaining to be executed on capital accounts - Rs. Nil (Previous year Rs.Nil)

2) The Company has export obligations for value of Rs.24106 lakhs under EPCG Scheme against which exports aggregating RT.5626.53 lakhs including third party exports have been made on 31.03.2013. Balance obligations required to be fulfilled as per various schedules, culminating on 20.07.2015 is Rs.18479.47 lakhs.

3) The Sales Tax Department has preferred an appeal before STAT Coimbatore for the year 2002-03 for issues representing sales tax demand of Rs.1.82 lakhs which is pending before STAT, Coimbatore

4) The Sales Tax Department has preferred an appeal before STAT Coimbatore for the year 2003-04 for issues representing sales tax demand of Rs.13.54 lakhs which is pending before STAT, Coimbatore.

5) The Income Tax Department has preferred an appeal with a tax effect of Rs.5.85 lakhs before ITAT, Chennai against the Order of CIT (appeal) in favour of the Company regarding interest claim U/S 234B/234C for the Assessment Year 2004-05.

6) The Income Tax Department''s appeal for assessment year 1998-99 before The Honorable High Court, Chennai against the company''s stand regarding Sec 80 IA has beeen decided in favour of the department and there by the likely demand on the company is estimated at Rs.1.25 lakhs.

7) The Company is out of CDR package with effect from 22.10.2012. However, the interest in various loans availed by the company has been continued to be charged based on the CDR rates. The differential interest that ought to have been provided for in the accounts is estimated at Rs.5700 Lakhs.

8) The Company has received a notice of petition from M/S. Think Capital Private Limited, demanding Rs.93.86 Lakhs ( Rs.77.55 Lakhs principal sum and Rs.16.31 Lakhs interest). Since the matter is sub judice, no provision has been made for the same in the accounts.

2. A provision is recognized when there is present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation Provision is not discounted to its present value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to refelect best current estimate.

3. Requirement under Clause 32 of the Listing Agreement. Loans and advances in the nature of loans to subsidiaries, Firms, Associates and Companies in which Directors are interested in Rs.Nil (Previous year Nil)

4. In compliances with AS 22 relating to "Taxes on Income" the company has not recognized Deferred Tax Liability / assets for current year on account of absence of virtual certainty.

5. Previous year figures have been regrouped and reclassified wherever necessary.

6. Figures have been rounded off to the nearest rupee.


Mar 31, 2010

1 Secured loans from Banks and Financial Institutions have been guaranteed by the Managing Director and Executive Director of the Company. No guarantee commission has been paid to any director in this connection. Security details of the said loans are:-

i. TERM LOANS

(A) TUF Loan - Rs. 150 Million

(B) TUF Loan - Rs. 95 Million

(C) Funded Interest Term Loan (FITL) - Rs. 4.94 Million

Above term loans sanctioned by IDBI are secured by extension of first charge on all assets of the Company, present and future, subject to the prior charge created / to be created (i) on specific assets covered by loans from other financial institutions and banks (ii) on specified movables (Current Assets) in favour of the Companys Bankers for working capital borrowings.

(D) TUF Loan - Rs 76.10 Million

(E) FITL - Rs. 53.85 Million

The Term Loan availed from Corporation Bank is secured by way of exclusive charge over the assets created out of the said loan.

(F) TUF Loan Rs.190 Million & Non TUF Loan - Rs 15 Million

(G) FITL - Rs.20.08 Million

The Term Loan sanctioned by State Bank of India is secured by exclusive first charge over the assets financed under the term loan and second charge on the entire current assets of the Company on pari passu basis and extension of charge on the fixed assets of washing unit at Perundurai.

(H) Corporate Loan - Rs. 100 Million & Rs 150 Million (I) FITL - Rs. 21.66 Million

The Corporate Loan sanctioned by IDBI is secured by extension of first charge on Pari Pasu basis except the assets which are exculsively charged to SBI and Corporation Bank. First charge by way of Hypothecation in favour of IDBI of all assets of the companys movable (save and except book debts), including movable machinery, machinery spares, tools and accessories, present and future, subject to the prior charge created/to be created in favour of companys bankers on the companys stocks of raw materials, semi finished and finished goods, consumable stores and such other movable as may be agreed to by IDBI for securing the borrowings for working capital requirements in the ordinary course of business.

(J) Term Loan - Rs. 150 Million

(K) FITL - Rs. 9.42 Million

The Term Loan sanctioned by the State Bank Of Indore is secured by second charge on all present fixed assets of the company.

The Term Loan sanctioned by the above Banks in consortium is secured by first charge on paripassu basis by way of Equitable mortgage of Land and Buildings and Hypothecation of all the fixed assets and second charge on all the current assets of the Company shared on pari passu basis with banks in the consortium of the New Project of Rs 351 crores.

* FITL- Funded Interest Term Loan

ii. WORKING CAPITAL LOANS

(A) Fund based limits - Rs.130.30 Million

Non fund based - Rs 70 Million

The working capital facility sanctioned by State Bank of India is secured by hypothecation of entire current assets and movable assets of the Company and a second charge over entire fixed assets of the Company on pari passu basis with other commercial bankers under consortium agreement.

(B) Fund based limit - Rs 28.30 Million

The working capital facility sanctioned by State Bank of Hyderabad is secured by hypothecation of the entire current assets of the Company and movable assets of the Company and a second charge on the fixed assets of the Company on paripassu basis with other commercial banks under Consortium agreement.

(C) Fund based limit - Rs 18.70 Million

The working capital facility sanctioned by Corporation Bank is secured by hypothecation of the entire current assets of the Company and movable assets of the Company and a second charge on the fixed assets of the Company on paripassu basis with other commercial banks under Consortium agreement.

iii) FUNDED INTEREST TERM LOAN

State Bank of India : Rs.99.15 Million

State Bank of Hyderabad : Rs.23.84 Million

Corporation Bank : Rs. 16.68 Million

Funded Interest Term Loan is secured by First charge on the entire fixed assets of the company existing / proposed including EM on factory land and buildings on pari-passu basis with other Consortium TL bankers.

iv) WORKING CAPITAL TERM LOAN

a) State Bank of India : 399.90 Million

b) State Bank of Hyderabad : 88.60 Million

c) Corporation Bank : 57.30 Million

Working Capital Term Loan is secured by First charge on the entire fixed assets of the company existing / proposed including EM on factory land and buildings on pari-passu basis with other Consortium TL bankers.

1 Corporate Debt Restructuring (CDR Package)

Financial Restructuring Scheme under Corporate Debt Restructuring Mechanism has been approved by the Empowered Group with the cut off date being 01.07.2008.

2 Amount outstanding for more than 30 days to Micro and small Enterprises undertakings is Rs 14.39 lakhs as detailed below (Previous year Rs 2.76 lakhs)

1) Aadi Plastic Industries P Ltd

2) Adhi Vinayagar Enterprises,

3) Apex Engineering,

4) Avanthi Industries

5) Erode Scientific and Chemicals,

6) Ganesh Colour Company,

7) Sekar Engineering Works,

8) Sigma Industries

9) Sri Vignesha Engineers,

10) Venus Rubbers

11) Pioneer Woven Sacks Pvt Ltd

3 Contingent liabilities not provided for in the accounts

a. Estimated amount of Contracts remaining to be executed on capital accounts - Rs.Nil (Previous year Rs 20.09 lakhs).

b. The Company has export obligations for value Rs. 24106 lakhs under EPCG Scheme against which exports aggregating Rs. 5626.53 lakhs including third party exports have been made as on 31.03.2010. Balance obligations required to be fulfilled as per various schedules, culminating on 20.07.2015.

c. The Counter guarantee given by the Company for the guarantees issued by the Bankers is Rs.14.03 lakhs (previous year Rs.NIL)

d. The sales tax department has preferred an appeal before STAT Coimbatore for the year 2003-04 for issues representing sales tax of Rs 3.68 lakhs which is pending before STAT Coimbatore.

e. The Income Tax Department has preferred an appeal before ITAT, Chennai against the Order of CIT(Appeal) in favour of the Company regarding interest claim U/S 234B/234C for the Assessment Year 2004-05

f. The Company has preferred an appeal before the CIT, appeals Coimbatore against the order of the Assistant commissioner of income tax Compnay circle for the Assessment year 2007-08 on disallowance of Rs.7.50 lakhs and the company is confident on favourable judgement.

g. The lenders, with the approval of the Corporate Debt Restructuring Empowered Group shall have the right to recompense the reliefs / sacrifices / waivers extended by respective CDR lenders amounting to Rs.1012 Million as on 31.03.2010 with regard to the interest differential as per CDR guidelines. In the event of default, Lenders shall have the right to reverse the waivers with the approval of Corporate Debt Restructuring Empowered Group.

4. The amount falling due within one year in respect of long term secured loans are as follows:

5. Term Loans - Rs. 105.80 Million (Previous year - Rs.Nil in view of CDR Package) IFST Dues - Rs.14.12 million (Previous year Rs 12.41 million)

i In the opinion of the Board of Directors, Current Assets,

Loans and Advances will fetch the amounts stated, if realised in the normal course of business.

ii The balances due to / due from parties and Loans and

Advances are subject to confirmation.

iii Miscellaneous expenses not yet written off as shown on the asset side of Balance Sheet includes Rs. 38.69 million towards follow-on public issue made during the year.

6. The provision for all liabilities is neither inadequate nor more than what is reasonably necessary.

7. The borrowings cost capitalised during the year in respect of the qualifying assets is Rs. Nil (previous year Nil).

8 Requirement under Clause 32 of the Listing Agreement. Loans and advances in the nature of loans to Subsidiaries, Firms, Associates and Companies in which Directors are interested is Rs.Nil (previous year Nil)

 
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