Mar 31, 2010
1 a) The company has discontinued the production since 08-09-2009
b] Two parties to whom the Company owes money, have filed winding up petition the same has been admitted by the honorable High Couit
2 Share Capital:
i. Equity Shares include 6, 00,000 (Previous year 6,00,000) shares of Rs 1 0/- each (reduced t: 4,50,000 Equity shares of Rs 10/- each after consolidation) issued as fully paid up 6cu. Shores by Capitalization of General Reserve
ii. Optionally Convertible Cumulative Redeemable Preference Shares
Interest due the certain Financial Institutions and Banks were converted into Optional Convertible Cumulative Redeemable Preference Shares (OCCRPS) carrying rate o dividend @ 6% per annum. During the current year further 15276 no of OCCRPS *ci Issued against interest of earlier years. OCCRPS holders have an option *o con.tr preference shares alang with dividend entitlement into fully paid equity shares o* Company, at the rate to be worked out as per the applicable SEB guidelines
In the event OCCRPS not converted as mentioned before, they are redeemable equal annual installments at 5% from the year 2011-12 to 2021-22, 20% in the year 207Rs. , and balance 25% in the year 2023-24.
3 Secured Loans:
i. Term loans and other non-funded facilities together with all interest liquidated damage; additional interest, premium on prepayment or redemption casts, charges, expenses an. other monies payable to Banks and Financial Institutions are secured by first mortgage oi all moveable and immovable properties both present and future situated a'' Jhagaaio Industrial Estate, District Bharuch in Gujarat, subject to the prior charge created / to d. created in favour of Banks on inventories and baok debts for working capital facilities The said term loans are secured by, pari passu, first charge on the fixed assets of. Company situated at Jhagadia Industrial Estate, District Bharuch in Guiorat by way o mortgage by deposit of title deeds and hypothecation of moveable assets suo.ect *-¦ prior charge in favor of Company''s bankers for securing working capital Borrowings
ii Optionolly Fully Convertible Debentures (OFCD) are secured by way of -
Legal Mortgage in English form of lease hold land, the whole of the properties of ''n. Company including moveable plant and machineries both present and future situate- at Industrial Estate, District Bharuch in Gujarat together with all structures, factory, constructions and all fixed plant and machineries or an* fixtures ; fittings annexed to the same As per revised schedule agreed by the OFCD are redeemable in ten equal annual installments of 5% from ten year 2009 2018-19 and balance in next five years at 10% annually from the year Rs. 20 to 2023 In the event of default of repayment of principal amount/interest, the OFCD halides shoo have the right to convert entire/part af principal amount /interest outstanding meow equity, shares at the Company. However, no such OFCD has been redeemed or converted in*- Equity Shares till date in
iii. The working capital facilities are secured by way of hypothecation of whole of Company''s stock of raw material, semi finished goods, finished goods consummate;; stores and spares nod such other movables including book debts, fails. documentary or clean, both present and future. The facilities granted by ICICI Sank !..h, are further secured by pair pass charge by way of first mortgage on all immoral Die an: movable properties including plant and machineries of the Company situated
iv, ICICI Bank Ltd. IDBI Bank, IFCI Limited and State Bonk of India have sola/ assign transferred /releosed their rights in favour of Asset Limited (ARCIL) u/s 5 of the financial Assets or , Enforcement of Securities Interest Act, 2002. Consequent upon and with effect from ir- date of Assignment agreement and by virtue of section 5(2] of the SARFAtSI Act, ARC hos become the lender in relation to the loans transferred to them and the underiv.na security interests are vested in ARCIL ARCIL has issued notice u/s 13 (2.1 of the SARFAts Act 2002 for demanding payments of the outstanding lang term financial assistance amounting to Rs. 72465 Lacs,
4, Employee Stock Option Scheme (ESOS): -
The Board of Directors approved the scheme of ESOS on 14th August 2004, The sho''ehoiac- at the 41" annuo! general meeting held on 24''f September 2004 accorded approval to ¦s5Âc ond ollot equity shares to the employees of the company under ESOS
The company has ESOP Scheme, under which 19,36,500 shares have been granted v.. employees. The options are vested at the end of first, second and third year at *ne rate of 30%, 30% and 40% and the options can be exercised within 2 year of vesting at the pt''¦--:-¦ "¦'' Rs. 10/- per share The option outstanding at the balance sheet date is as follows
5 Contingent liabilities:
(i) Claims against the Company not acknowledged as debts Total Rs 396 :- :,
[Previous year: Rs.l 19 Lacs]. (ii) Guarantees given by the Company''s bankers and counter guaranteed t-y tre
Company Rs.5467 Lacs (Previous year: Rs. 7159Lacs). (iii) Dividend on OCCRPS - Rs.23334 Lacs (Previous year: Rs. 19362 Lacs!. (ivj Disputed income-tax 5. sales tax liabilities:
Disputed Income tax Rs. 1204 Lacs, (Previous year'' Rs.341 Lacs). Disputed Sales Tax demand, Rs. T6 Lacs. (Previous year: Rs.l 6 Lacs)
6 Export Obligation:
The Company has an export obligation against imports made under Advance Lictnsc Scheme, If the export obligation is not fulfilled, the company will have custom duty liabii % ot Rs.5355 Lacs (Previous year 6094 Lacs) and further interest will be payable on the same the basis that the stock lying with the Company will be totally exported the liability jnc o'' cenvat) will get reduced to Rs.l 727 Lacs which has been provided for
7 Estimated amount of contracts remaining ta be executed on capita: accouni provided for (net of advances) Rs NIL (Previous year Rs NIL)
8 Exchange Rate Fluctuation:
Exchange rate fluctuation Rs NIL (Previous year: Rs, 277 Lacs Adverse) on account i,'' borrowings has been recognized in profit 8, loss account as addition to borrowing cost Th<.= said borrowings were converted into rupee loan in earlier years due to transfer of Loans ''o ARCIL by Banks /Financial Institutions.
9 Deferred Tax :
In the absence of virtual certainty of taxable profit in future, deferred tax assets on accord taxable loss is created only to the extent of deferred tax liabilities on account: depreciation differentiable. Effectively, net deferred tax asset is ignored 11. Amount payable to Micro, Small and Medium Enterprise are as follows
|i) Total amount of principal outstanding in respect of the above as at Balance date is Rs.7-09 Lacs (Previous year; Rs. 14.56 Lacs] in respect of various parses
(ill Total amount of delayed payments during the year aggregating to Rs 42 43, a-;, respect of 14 parties (Previous year: Rs 35.94 Lacs in respect of '' parties !
(in] Total interest payable on account of delayed payment aggregates to Rs Rs.42 i a: ; (Previous year Rs. 0 78 Lacks) This has not been provided for
10. Balances of Secured loans, Unsecured loans, Sundry Debtors, Creditors Loans and Advances and Deposits are subject to confirmation.
11 Sundry Creditors include Rs. 18835 Lacs (Previous year: Rs, 13274 Lacs] covered under *''"t
credit arrangement. The said arrangement is secured by pieage o* certain material Further it is also secured by Bank Guarantee of one of the bamc-i amounting to Rs. 5441.70 Lacs,
12 Employee Benefits:
The Company has classified various employee benefits as under;
(o) Defined Contribution Plans
The Company makes contribution towards provident fund, family pension fury superannuation fund to a defined contribution retirement benefit plan for quern, employees. The provident fund and pension fund is administered by Government of and the superannuation is administered by Superannuation Trust through Life Insurer Corporation of India.
b] Defined Benefit Plan (i| Gratuity Plan.
The Company offers its employees defined-benefit plan in the form of a grain., scheme. The gratuity scheme is administered by Gratuity Trust through Life lnsuano: Corporation of India The Company contributes funds to fee Gratuity Trust
(ii) Leave Encashment:
The Company permits encashment of leave accumulated by their employees on retirement, separation and during the course of service. The liability for encashment'' of such leave is determined and provided on the basis of actuarial performed by an independent actuary at the balance sheet date
13- As on the Balance Sheet date, the company does not have outstanding forward contract*, (Previous year No of contract 10, Position: Sales, Value: Rs, 2579,22 Lao)