Home  »  Company  »  Jyoti Overseas  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Jyoti Overseas Ltd.

Mar 31, 2014

Note:

I) The Term Loans from Assets Reconstruction Co of (India) Ltd, is secured by way of:

(A) Primary Securities : The Term Loans from ARCIL are secured by first pari-passu mortgage of all immovable properties, save and except assets charged to IDBI earlier, and is further secured by way of hypothecation of all movable properties (save and except the book debts) of the company subject to prior charges created in favour of Company''s Bankers on inventory of the Company to secure the borrowing for working capital.

(B) Personal Guarantees : The term loan from bank is further secured by personal guarantee of Managing Director and ExChairman.

II) The Term Loans from Export Import Bank of India, is secured by way of:

(A) Primary Securities : Hypothecation of all the present and future movable fixed assets except book debts and stock and is further secured by first pari passu mortgage of all the immovable assets of company save and except assets charged to IDBI earlier.

(B) Personal Guarantees : The term loan from bank is further secured by personal guarantee of Managing Director and ExChairman.

1 Derivative contracts entered into by the Company and outstanding as on the date of Balance sheet.

a) Hedging Commitments outstanding - Rs. Nil (Previous Year Nil)

b) Foreign currency exposures that are not hedged by derivative instruments - Rs. Nil (Previous Year Nil)

2 Earnings/Expenditure in Foreign Exchange : Rs. Nil (Previous Year -Nil)

3 Details of government grants - NIL (Previous Year -Nil)

4 Borrowing Costs capitalised during the year : Rs. Nil (Previous Year -Nil)

5 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities (Rs. In Lacs) 31.03.14 31.03.13

(a) Interest to secured Lenders 5314.96 4991.97

(b) Claim not acknowledged as debts 0.00 0.00

(c) Provision for accrued gratuity liability made, pending actuarial valuation and - - accounting policy followed.

There is no reasonable / virtual certainty supported by convincing evidence that sufficient future income will be available against the net deferred tax assets. In consideration of prudence, the company has not considered the net deferred tax Assets in the Books of Accounts.

6 As per the information''s available with the Company in response to the enquires from all existing suppliers with whom Company deals, none of the suppliers are registered with the micro, small & medium enterprises Development Act, 2006.

7 Sales Tax, Purchase Tax and Income Tax Assessment are pending at various stages. Provision of Taxes in the opinion of management is sufficient

8 No Provision for taxation has been considered necessary in view of Carry forward losses, and unabsorbed depreciation and other allowances under the Income Tax Act.

9 Vehicles in the block of Fixed Assets are in the name of Director, as the finances have been arranged by them. These vehicles are in the possession of the Company. The amount of installments outstanding for payment to financing agencies as on the date of Balance Sheet is Rs.Nil (Previous Year Rs. Nil) Lacs.

10 Computation of Net Profit in accordance with Section 349 of the Companies Act, 1956 has not been given, as commission by way of percentage of Profit is not payable for the year to any of the director of the Company.

11 Balances of some of the sundry Debtors, Creditors, Loans & advances are taken as per Books of Account and are subject to confirmation from respective parties. However, in the opinion of the management these accounts will fetch the amount as stated in the books of accounts on realization in the ordinary course of business.

12 Secured Lenders viz, Asset Reconstruction Company (India) Limited (ARCIL) and Export Import Bank of India took the possession of the Secured Assets of the company under section 13 (4) of Securitization And Reconstruction of Financial Assets And Enforcement of Security Interest Act, 2002 ( SARFAESI Act ) on 11th July, 2007 against their dues and appointed the Company as Custodian of the Secured Assets and permitted to continue the Business activities on a payment of Rs 25,000 per month towards royalty charges till 31st March, 2011. Thereafter, they have withdrawn the custodian ship. They have also filed petition for winding up of the company before the hon''ble High Court of M.P. , which is pending for admission.

The Commercial Tax Department also took action for recovery of their dues by way of attachment of Fixed Assets under the Provisions of M.P. Land Revenue Code , 1959. Hence, Consequential fate of Secured fixed assets taken over by the secured lenders is not ascertainable. Therefore , any adjustment on account of possession of the assets is also not ascertainable in the circumstances as on 31st March, 2014. In view of the possession of Secured assets have been taken by Secured Lenders, the estimated amount of interest for the year amounting to Rs.322.98 Lacs (Previous Year 322.98 Lacs) has also not been provided in books of accounts of the Company. Total estimated amount of Interest not provided for as on the date of Balance Sheet is Rs.5314.96. ( Previous Year. 4991.98) Lacs.

13 As the accumulated losses of the Company had exceeded its entire net worth in earlier years, the Company had been declared a Sick Industrial Company within the meaning of Clause (O) of sub section 1 of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) vide order of BIFR dated 17th May, 2006. Pursuant to the action taken by secured Lenders under section 13(4) of the SARFAESI Act, 2002 the BIFR, vide its order dated 26th November, 2007 has abated the reference filed by the Company under SICA. As the Company has concluded one time settlement with working capital bankers and IDBI and is pursuing settlement discussions with remaining Secured Lenders and is keen to revive its operations, the accounts of the Company have been prepared on going concern basis. In case the Company is unable to continue as a going concern in future, the resultant adjustments, if any, are presently not ascertainable.

14 As the company is not having possession of the assets of the company, no physical verification of the assets of the plant could be carried out. The management of the company is of the opinion that there is an impairment of the assets of this plant, however, such loss has not been estimated or determined and, therefore, no provision for loss on account of impairment of assets has been made in the accounts. To this extent, the company has not complied with the Accounting Standard 28, Impairment of Assets.

15 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2011

1. Secured Loans:

a. The Term Loans from ARCIL are secured by first pari-passu mortgage of all immovable properties, save and except assets charged to IDBI earlier, and is further secured by way of hypothecation of all movable properties (save and except the book debts) of the company subject to prior charges created in favour of Company's Bankers on inventory of the Company to secure the borrowing for working capital.

b. The Term Loan from Export Import Bank of India is secured by way of Hypothecation of all the present and future movable fixed assets except book debts and stock and is further secured by first pari passu mortgage of all the immovable assets of company save and except assets charged to IDBI earlier.

c. Working Capital Borrowings from Export Import Bank of India represents the amount of foreign Usance bills discounted by the Bank.

d. All the above loans are further secured by personal guarantees of Managing Director and Ex-Chairman.

2. Secured Lenders viz, Asset Reconstruction Company (India) Limited (ARCIL) and Export Import Bank of India took the possession of the Secured Assets of the company under section 13 (4) of Securitization And Reconstruction of Financial Assets And Enforcement of Security Interest Act, 2002 ( SARFAESI Act) on 11th July, 2007 against their dues and appointed the Company as Custodian of the Secured Assets and permitted to continue the Business activities on a payment of Rs 25,000 per month towards royalty charges till 31st March, 2011. Thereafter, they have withdrawn the custodian ship. They have also filed petition for winding up of the company before the hon'ble High Court of M.P., which is pending for admission.

The Commercial Tax Department also took action for recovery of their dues by way of attachment of Fixed Assets under the Provisions of M.P. Land Revenue Code, 1959.

Hence, Consequential fate of Secured fixed assets taken over by the secured lenders is not ascertainable. Therefore , any adjustment on account of possession of the assets is also not ascertainable in the circumstances as on 31 st March, 2011.

3. As the accumulated losses of the Company had exceeded its entire net worth in earlier years, the Company had been declared a Sick Industrial Company within the meaning of Clause (O) of sub section 1 of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SfCA) vide order of BIFR dated 17th May, 2006. Pursuant to the action taken by secured Lenders under section 13(4) of the SARFAESI Act, 2002 the BIFR, vide its order dated 26th November, 2007 has abated the reference filed by the Company under SICA.

As the Company has concluded one time settlement with working capital bankers and IDBI and is pursuing settlement discussions with remaining Secured Lenders and is keen to revive its operations, the accounts of the Company have been prepared on going concern basis. In case the Company is unable to continue as a going concern in future, the resultant adjustments, if any, are presently not ascertainable.

4. In view of One-time settlement achieved by the Company and its ongoing discussions with other lenders, the estimated amount of the interest for the year amounting to Rs. 322.98 Lacs (Prev. Yr. 322.98 Lacs) has not been provided in books of accounts of the Company. Total amount of Interest not provided for as on the date of Balance Sheet is Rs. 4346.03 (Prev. Yr. 4023.05 Lacs).

5. As per the Information's available with the Company in response to the enquiries from all existing suppliers with whom Company deals, none of the suppliers are registered with the Micro, Small & Medium Enterprises Development Act, 2006.

6. Balances of some of the Sundry Debtors, Creditors, Loans & advances are taken as per Books of Account and are subject to confirmation from respective parties. However, in the opinion of the management these accounts will fetch the amount as stated in the books of accounts on realization in the ordinary course of business.

7. Sales Tax, Purchase Tax and Income Tax Assessment are pending at various stages. Provision of Taxes in the opinion of management is sufficient.

8. No Provision for taxation has been considered necessary in view of Carry forward losses, and unabsorbed depreciation and other allowances under the Income Tax Act.

9. Vehicles in the block of Fixed Assets are in the name of Directors, as the finances have been arranged by them.

These vehicles are in the possession of the Company. The amount of installments outstanding for payment to financing agencies as on the date of Balance Sheet is Rs. 0.72 (2.16) Lacs.

10. Excise duty drawback receivable related with Exports of previous years, earlier denied by the Custom authorities, now have been allowed by the Hon'ble CESTAT, New Delhi and therefore have been shown as Income underthe head 'Other Income'

11. Bad debts and irrecoverable debit balances written off during the year is Rs. 6.76 Lacs (Prev.Yr. NIL) which were shown as receivables in earlier years now determined and adjusted.

12. Prior Period items represent amount ascertained and accounted for During the Year on the basis of various assessments completed during the Year and other settlements related with earlier years.

13. Related Party Disclosures:

A. List of related Parties: Shri Pramod Somani (relationship: Managing Director)

B. Transactions with related parties NIL

14. Traveling and Conveyance includes Directors Traveling-Inland Rs. 5,57,607 (Prev.Yr. 2,28,483), Foreign Traveling Directors Rs. Nil (Prev. Yr. Nil) and Foreign Traveling-others Rs. Nil (Pre.Yr.Nil).

15. Segment Information : The Company is operating in Single segment.

16. The Computation of net Profit in accordance with section 349 of the Companies Act, 1956 has not been given, as Commission by way of percentage of Profit is not payable for the year to any of the Directors of the Company.

17. In the opinion of the directors the assets had recoverable value as compared to their carrying Cost, and therefore no provision is considered necessary.

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

19. Previous year figures have been regrouped / rearranged, wherever necessary.

20. Figures and remarks in the brackets pertains to the previous year, unless other wise specified.

There is no reasonable / virtual certainty supported by convincing evidence that sufficient future income will be available against the net deferred tax assets. In consideration of prudence, the company has not considered the net deferred tax Assets in the Books of Accounts.

21. In the opinion of the Board the current assets, loans & advances have a value on realisation in the ordinary course of business, at least equal to the amounts at which these are stated and that the provisions for all the known liabilities has been adequately made and not in excess of the amount reasonably necessary and there is no Contingent liability other than listed below.

a) Interest to Secured Lenders Rs. 43.46 Crores. ( Prev.Yr. Rs. 40.23 Crores)

b) Provision for accrued gratuity liability made , pending actuarial valuation and accounting policy followed.

c) Claim not acknowledged as debts Rs. 15 Lacs. (Prev.Yr. 3.50 Lacs)

21. Schedules referred to herein are under the same signature and form an integral part of the Accounts.


Mar 31, 2009

1. Secured Loans:

a. The Term Loans from ARCIL are secured by first pari-passu mortgage of all immovable properties, save and except assets charged to IDBI earlier, and is further secured by way of hypothecation of all movable properties (save and except the book debts) of the company subject to prior charges created In favour of Companys Bankers on inventory of the Company to secure the borrowing for working capital.

b. The Term Loan from Export Import Bank of India is secured by way of Hypothecation of all the present and future movable fixed assets except book debts and stock and is further secured by first pari passu mortgage of all the immovable assets of company save and except assets charged to IDBI earlier.

c. Working Capital Borrowings from Export Import Bank of India represents the amount of foreign Usance-bills discounted by the Bank.

d. All the above loans are further secured by personal guarantees of Managing Director and Ex-Chairman.

2. Secured Lenders viz, Asset Reconstruction Company (India) Limited (ARCIL) and Export Import Bank of India had taken the possession of the Secured Assets of the company under section 13 (4) of Securitization And Reconstruction of Financial Assets And Enforcement of Security Interest Act, 2002 (SARFAESI Act) on 11th July, 2007 against their dues and appointed the Company as Custodian of the Secured Assets and permitted to continue the Business activities on a payment of Rs 25,000 per month towards royalty charges.

The Commercial Tax Department also took action for recovery of their dues by way of attachment of Fixed Assets under the Provisions of M.P. Land Revenue Code, 1959.

Both of the above, ARCIL and Commercial tax Department issued Public Notices for sale of the Properties by Public Auction. No Sale of the assets has been taken place due to the stay order issued by the Honble High Court of Madhya Pradesh, in response to the petition filed by the Commercial Tax Department against auction notice issued by ARCIL..

3. As the accumulated losses of the Company had exceeded its entire net worth in earlieryears, the Company had been declared a Sick Industrial Company within the meaning of Clause (O) of sub section 1 of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) vide order of BIFR dated 17th May, 2006. Pursuant to the action taken by secured Lenders under section 13(4) of the SARFAESI Act, 2002 the BIFR, vide its order dated 26th November, 2007 has abated the reference filed by the Company under SICA.

As the Company has concluded one time settlement with working capital bankers and IDBI and is pursuing settlement discussions with remaining Secured Lenders and is keen to revive its operations, the accounts of the Company have been prepared on going concern basis. In case the Company is unable to continue as a going concern in future, the resultant adjustments, if any, are presently not ascertainable.

4. In view of One-time settlement achieved by the Company and its ongoing discussions with other lenders, the estimated amount of the interest for the year amounting to Rs. 322.98 Lacs ( Prev. Yr. 322.98 Lacs) has not been provided in books of accounts of the Company. Total amount of Interest not provided for as on the date of Balance Sheet is Rs. 3700.07 (Prev. Yr. 3377.09 Lacs).

5. As per the Informations available with the Company in response to the enquiries from all existing suppliers with whom Company deals, none of the suppliers are registered with the micro, small & medium Enterprises Development Act, 2006.

6. Payment to Auditors (including Service Tax):

7. Balances of some of the Sundry Debtors, Creditors, Loans & advances are taken as per Books of Account and are subject to confirmation from respective parties. However, in the opinion of the management these accounts will fetch the amount as stated in the books of accounts on realization in the ordinary course of business.

8. Sales Tax, Purchase Tax and Income Tax Assessment are pending at various stages. Provision of Taxes in the opinion of management is sufficient.

9. No Provision for taxation has been considered necessary in view of Carry forward losses, and unabsorbed depreciation and other allowances under the IncomeTax Act.

10. Vehicles in the block of Fixed Assets are in the name of Director, as the finances have been arranged by them. These vehicles are in the possession of the Company. The amount of installments outstanding for payment to financing agencies as on the date of Balance Sheet is Rs. 3.59 (5.95) Lacs.

11. In respect of disputed levy of Excise duty of Rs. 80.73 Lacs, the matter is under consideration of The Commissioner, Central Excise & Custom, Indore. In view of similar case decided in favour of the Company, the directors are of the opinion, that no provision is required in this respect.

12. Bad debts and irrecoverable debit balances written off during the year is Rs. 11,08,644 (Prev. Yr.2,00,77,968) which were shown as receivables in earlier years now determined and adjusted.

13. Prior Period items represent Liability ascertained and accounted for during the Year on the basis of various assessments completed during the Year and other expenses related with earlier year.

14. Related Party Disclosures:

A. List of related Parties: Shri Pramod Somani (relationship: Managing Director)

B. Transactions with related parties NIL

15. Traveling and Conveyance includes Directors Traveling-Inland Rs. 3,73,571 (Prev.Yr. 2,37,919), Foreign traveling Directors Rs. Nil (Prev. Yr.8,06,751) andForeign Traveling-others Rs.Nil(Pre.Yr.Nil).

16. Segment Information.The Company is operating in Single segment.

17. The Computation of net Profit in accordance with section 349 of the Companies Act, 1956 has not been given, as Commission by way of percentage of Profit is not payable for the year to any of the Directors of the Company.

18. In the opinion of the directors the assets had recoverable value as compared to their carrying Cost, and therefore no provision is considered necessary. During the year the Company could not utilize the installed capacity fullyforwantof working Capital.

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

20. Previous year figures have been regrouped / rearranged, wherever necessary.

22. Figures and remarks in the brackets pertains to the previous year, unless otherwise specified.

There is no reasonable / virtual certainty supported by convincing evidence that sufficient future income will be available against the net deferred tax assets. In consideration of prudence, the company has not considered the net deferred tax Assets In the Books of Accounts.

24. I n the opinion of the Board the current assets, loans & advances have a value on realization in the ordinary course of business, at least equal to the amounts at which these are stated and that the provisions for all the known liabilities has been adequately made and not in excess of the amount reasonably necessary and there is no Contingent liability other than listed below.

a) Central Excise Duty of Rs 80.73 Lacs against which the Company has filed an appeal and the matter is pending with the Commissioner, Central Excise & Custom, Indore.

b) Income Tax of Rs. 5.40 Lacs, Rs. 6.60 Lacs for the Ass. Year 1991 - 92,1993-94 respectively, against which the appeals are pending with Honble Appellate Authority CIT, Indore.

c) CommercialTax of Rs. 130.38 Lacs & EntryTaxof Rs.35.03Lacs for the Year 2003-04, against which the revision are pending with Honble Addl. Commissioner CommercialTax (Revision), Indore.

d) Liquidated damages and interest of Rs 9.06 Lacs , levied by Provident Fund Department, against which the Company has filed an appeal and the matter is pending before Honble Provident Fund Appellate Tribunal.

e) Claims not acknowledged as Debts is Rs. 7.5 Lacs, e) Interest to Secured Lenders Rs. 37.00 Crores.

25. Schedules referred to herein are under the same signature and form an integral part of the Accounts.

26. Information pursuant to para 3,4 C&4D of part 11 of Schedule VI to the Companies Act, 1956.

(a) Licenced Capacity: 260 (260 (Looms

(b) Installed Capacity: 244 (244) looms

 
Subscribe now to get personal finance updates in your inbox!