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Notes to Accounts of Magnum Ventures Ltd.

Mar 31, 2015

1. The Company has one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The paid-up equity shares of the Company rank pari- passu in all respects including dividend. 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.

2 Redeemable, Non convertible and Non-Cumulative Preference Shares of Face value of Rs. 100/- on such terms and conditions including but not limited as to the rate of dividend, period and manner of redemption as the Board in its absolute discretion may determine for the purpose of agmenting the long term resource base of the company.

3. Issued to bankers against their sacrifice (341200 Debentures of Rs. 1000/- each payable on 31-03-2026)

Working Capital Limit (Paper Divison)

First charge by way of hypothecation of raw materials, stock in process, finished goods, receivables & other current assets of the Paper Division ranking pari-passu basis with the consortium members (OBC, PNB, SYB, IOB & Allahabad Bank).

4. Term Loan (Paper Division)

First charge on the entire fixed assets of the Paper Division present & future (Excluding PCC) ranking on pari-passu basis. (OBC, PNB, SYB, IOB & Allahabad Bank, Vijaya Bank). Exclusive charge on all PCC project assets in favour of Syndicate Bank. Collateral Pari-Passu second charge on the entire fixed assets of the company (present & future) along with other consortium member banks.

5. Term Loan-Hotel Division

First charge on present/future blocks assets of Hotel division ranking pari-passu with other lenders of the project. (OBC, PNB, SYB, IOB & Allahabad Bank, Vijaya Bank).

6. Collateral

Working capital facilities shall be collaterally secured by way of Second Charge on entire fixed assets (present & future) of the company on pari-passu basis with the members of consortium. First charge against these assets shall continue with term lending banks.

Term loan facilities shall be collaterally secured by way of Second Charge on entire current assets (present & future) of the company on pari-passu basis with the members of consortium. First charge against these assets shall continue with working capital lender banks.

7.

For the Year For the Year ended as on ended as on DEFERRED TAX ASSETS / DEFERRED TAX LIABILITY 31.03.2015 31.03.2014

Deferred Tax Assets (A) - 448,952,191.00

Deferred Tax Liabilities (B) Net Deferred Tax Asset/ (Liability) (A-B) - 272,679,101.00

8

For the Year For the Year ended as on ended as on

Long Term Loans & Advances 31.03.2015 31.03.2014

Security Deposit

Unsecured, Considered good 12,404,267.63 10,242,892.63

Zero Coupon Non-Convetiable Debentures (Non-Current) 341,200,000.00 341,200,000.00

Total 353,604,267.63 351,442,892.63

9. Issued to bankers against their sacrifice (341200 Debentures of Rs. 1000/- each payable on 31-03-2026)

(B) OTHER NOTES

10. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE FOLLOWING :

Name of Name of the Amount(Rs.) the Statue Dues

Custom & CENVAT 8, 28, 510/- Central Credit Excise

Custom & Excise Duty 20,97,503/- Central on Production Excise loss

Sale Tax Central Sale 91,437/- tax

Excise Law Duty on 26,135/-(Plus Waste Interest 26,135 Penalty)

Excise Law Duty on 1,73,115/-( Waste Plus Interest and 1,73,115)

Excise Law Duty on 1,58,816/- Waste (Plus Interest)

Excise Law SCN for Duty 14,62,96,594/- of excise on (Interest and paper board Penalty)

Service Tax Demand of 90,11,674/- Law Service Tax 21,458/- Hotel 15,393/- (Interest & penalty)

Service Tax SCN for 1,64,00,749/- Law Service Tax (Interest & from Hotel penalty)

Excise Law Departmental 30,80,824/- Appeal against refund order of Newsprint

Excise Law Paper 13,28,43,130/- Division- ( Interest Newsprint- Penalty) SCN

Excise Law Paper Division 5,83,68,368/- Newsprint- (Interest SCN Penalty)



Name of Period to Status/Forum the Statue which the where Dispute is amount Pending relate

Custom & 2006 Custom & Central Central Excise Department Excise has filed appeal in Allahabad high Court.

Custom & 2005-06 Addl. Commissioner Central of Excise show Excise cause notice pending

Sale Tax 2010-11 Demand due U/S 28(1) is not paid yet. May 12,2014

Excise Law Sept 2010 Appeal (A No. to April E/3763/2012) has 2011 been filed against the Show cause Notice (dt. 8.8.2011)

Excise Law Feb 2009 Appeal (A No. to August E/2162/2012) has 2010 been filed against the Show cause Notice (dt. 9.12.2010)

Excise Law 2004-05 to Appeal (A No. 2007-08 E/2039/2011) has been filed against the Show cause Notice (dt. 29.04.2009)

Excise Law Letter sent to Commissioner ,GZB to refer withdrawal of SCN

2006-2010 Tribunal Delhi, Stay Service Tax Granted and stay Law extended.



Service Tax 2010-2011 Order Passed by Law Comm. And Appeal filed before Tribunal,

Delhi on 27.08.2013

Excise Law Tribunal Delhi, Next Hearing Date yet to be notified



Excise Law The company is under preparation of Reply

Excise Law The company is under preparation of Reply

Total Export Obigation Rs. 50,31,14,020/-

Export Turnover /Earning in Foreign Rs. 38,38,83,983/-

Currency up to 31-03-2015

Export Turnover yet to achieve Rs. 11,92,30,037/-

11. On April 8, 2014, a SIB search by Sale Tax Department of Uttar Pradesh was conducted at Paper Division of the company some loose papers consisting challans etc were taken in customer by the department.

Further no tax demand has been raised yet.

12. REMUNERATION PAID TO AUDITORS:

Particular Current Year Last Year

As Statutory Auditors 2,45,000/- Fee 243089/- Service Service Tax 30282/- Tax 30045/-

Tax Audit Fees 55,000/- Fee 55000/- Service Service Tax 6798/- Tax 6798/-

In other matter NIL NIL

13. In the opinion of the management, current assets, loans and advances are of the value stated if realised in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonable.

14. During the year company has suffered loss & hence no provision for taxation has been made for the year ended 31.03.2015 in accordance with the provision of Income Tax Act, 1961.

15. Remuneration paid to the Directors of the company is as under:

Particular Current Year Last Year

Mr. Pradeep Kumar Jain 720000.00 -

Mr. Parmod Jain 480000.00 -

Mr. Abhey Jain 480000.00 -

Mr. S. P. Chaturvedi 586400.00 -

16. INCREASE IN AUTHORISED CAPITAL

During the year there is no increase in authorized capital of the company

17. DEBTORS

The debtors outstanding as on 31.03.15 are inclusive of debtors amounting to Rs. 2348.49 lakhs which are due for more than six months. Some of the debtors mentioned above are not presently dealing with the Company and created disputes for quality/rate out of which, Debtors of Rs. 110.13 lacs are under litigations.

18. Additional information (as certified by the management and relied upon by the Auditors)

19. PAPER DIVISION

I) Quantitative information with regard to the licensed & installed capacity, production & sales of Paper manufactured by the company:

S. No. Particular Current Year Last Year Qty. in MT Qty in MT.

(a) Licensed Capacity 85000 85000

(b) Installed Capacity NA N.A

20. RELATED PARTY TRANSACTION DISCLOSURE:

The related parties, as defined by Accounting Standard 18 'Related Party Disclosure' issued by the Institute of Chartered Accountants of India, in respect of which disclosure have been made, have been identified on the basis of disclosure made by the managerial persons and taken on record by the board.

We have identified all the related parties and transactions with all such information provided to you as under complete in all respects:

21 The Directors have given Interest Free Unsecured Loan to the Company.

Names of the related parties and descriptions of relationships

Mr. Pradeep Kumar Jain

Mr. Praveen Kumar Jain

Mr. Parmod Kumar Jain

Mr. Abhey Jain

Key Management Mr. Kishan Jain

Mr. RakeshGarg

personne Mr. SubhashOswal

Mr. Naveen Jain

Mr. Bikash Narayan Mishra

Mr. S. P. Chaturvedi

Ms. Monisha Company Secretary

Father of Director

Mr. Salek Chand Jain

Brother of Director

Mr. Vinod Kumar Jain

Wife of Director

Mrs. Veena Jain

Mrs. Rita Jain

Mrs. Asha Jain

Mrs. Monika Jain

Son of Director

Mr. Rishabh Jain

Mr. Ritesh Jain

Relatives of key

Mr. Parv Jain

2 management Daughter of Directors

personnel Mrs. Priyanka Jain

HUF of Father of Director

M/S Salek Chand Jain (HUF)

HUF of Brother of Director M/S Vinod Jain (HUF)

HUF of Directors

M/S Praveen Kumar Jain (HUF)

M/S Pramod Kumar Jain (HUF)

M/S Pradeep Kumar Jain (HUF)

M/S Abhay Jain (HUF)

Sister of Director Mrs. Shashi Jain

Firm of Brother in Law of Director

Johri Mal Kama! Kishore

22. SUNDRY CREDITORS:

As per the best available information with the company, No creditor has intimated their MSME status to us and accordingly there is no amount outstanding which is payable to small scale industrial undertaking.

Further the company raised claim on its suppliers for Quality/Quantity/Rate Issues and an amount of Rs. 13,94,87,714/- included in Short term Loan and Advances as Claim Receivables. The amounts have not been realised so far and Company is regularly following up with them and is hopeful of recovery, the same has been considered as good for recovery. No provision has been created and as such company will take necessary steps for realising/recovering/adjustment for the claim as and when settled and the unrecoverable amount shall be charged in the profit & Loss Accounts.

23. DEFERRED TAX LIABILITY:

In view of huge accumulated losses of the company and absence of virtual certainty regarding availability of future taxable income, the management has decided not to recognise any deferred tax assets for the year ended March 31,2015.

Further, as per the provisions of Accounting standard 22 Issued by The Institute of Chartered Accountant of India in the absence of virtual certainty of future taxable income and considering the losses, the existing deferred tax assets (net) of Rs 27,26,79,101 recognized in previous years has been derecognized in the current year.

24. IMPAIRMENT OF ASSETS

In accordance with Accounting Standard 28 'Impairment of Assets' issued by Institute of Chartered Accountants of India and made applicable from 1st day of April 2004, the company has assessed the potential generation of economic benefits from its business units as on the balance sheet date and is of the view that assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business: there is no indication to the contrary and accordingly, the management is of the view that no impairment provision is called for in these accounts.

25. SEGMENT REPORTING

The Company is having two segment Paper division and Hotel Division. The segment reporting of the company has been prepared in accordance with Accounting Standard - 17 'Accounting for Segment Reporting' issued by Institute of Chartered Accountants of India.

26. Primary -

The Company has considered Business segments as primary format for segment reporting, namely Paper Division & Hotel Division.

27.Geographical Segment

No Geographical segment reporting is required as per the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

28.PLEDGING OF SHARES

Presently the promoter of company has pledged the shares in favour of Lenders to the Company as Security to the tune of 70% of their shareholding in the Company. Further as per CDR 2nd Re-work package, balance 30% of their shareholding shall also be pledged and it is under process of pledging in favour of lenders.

29. CORPORATE DEBT RESTRUCTURING

The Company got approval from CDR EG for second rework vide LOA dated 30th December 2013. The Key Features of the re-work packages is as under:

30 Cut Off Date : 01st April 2013

b) Reduction in Interest Rate on Term Loans for Paper & Hotel Units, Additional WCTL and Working Capital Borrowings to 11.50% (base rate of MI 1.25%).

31 Reduction in Interest Rate on WCTL, FITL to 10.25% (base rate of MI).

32 Re-payment of principal for Paper Term Loans Rs. 36.58 Cr, PCC - Rs. 24.89 Cr, FITL - Rs. 21.40 Cr, WCTL - Rs. 8.81 Cr to be made in 40 structured quarterly instalments in 10 years commencing form 30.06.13 to 31.03.23.

33 Re-payment of principal for Hotel Loans - Rs. 126.75 Cr to be made in 52 structured quarterly instalments in 13 years commencing form 30.06.13 to 31.03.26.

34 Re-payment of Additional WCTL - Rs. 48.14 Cr to be made in 36 structured quarterly instalments in 13 years commencing form 30.06.14to 31.03.23.

35 Principal Instalment Repayments during the year are proposed to be serviced 10% in Qtr I, 15% in Qtr II, 40% in Qtr III and 35% in Qtr IV.

36 Funding of interest for April - June 2013 on Term Loan and WC Limits of Rs. 8.66 Cr as FITL and to be repaid in 5 years. Interest on FITL shall be 10.25% i.e. Base Rate of MI

37 Working Capital Limits of Rs. 46 Cr be Continue.

38 100% pledge of Promoter's Shareholding of the Company.

39. The Company to sell surplus land of Rs. 40 Cr approx and its sale proceeds estimated to be realized Rs. 12 Cr in FY 13-14; Rs. 15 Cr in FY 14-15; Rs. 7 Cr in FY 15-16 and Rs. 6 Cr in FY 16-17. 40 Promoters to bring in Rs. 9.93 Cr i.e. 25% of Sacrifice of Rs. 39.73 Cr, before implementation of package and Rs. 5 Cr p.a. from FY 2014-15 till all the loans are repaid in full.

41 Bank's Sacrifice: Total Bank's Sacrifice is Rs. 39.73 Cr out of which; Company will issue Zero Coupon Non Convertible Debentures of Rs. 34.12 Cr redeemable on 31.03.2026. These NCDs shall be secured by first pari- passu charge on fixed assets of the company and charge shall be created accordingly.

42. As per CDR Circular, the package should be implemented within 120 days i.e. by April 23, 2014 by all the banks without waiting for their individual sanctions for the re- structuring package. However banks wait for sanction from the authorities and the MRA &other documents were signed on 31st July 2014 and implementation of package in the system by Banks is pending at their end.

43. As per CDR package, Promoters has inducted Rs. 10.05 Cr against the stipulated contribution of Rs. 9.93 Cr before 31st March 2014.

44 As per CDR Package, promoters signed and submitted the documents to the lenders for pledging their balance 30% shareholding.

45. As per CDR Package, The company has to sell surplus land situated at A-35/1 and A-40/2 Sahibabad Industrial Area, Ghaziabad. The Company submitted request to UPSIDC for sub-division of plots in August 2014 and entered into agreement to sell with the parties to sell the plots after sub-division from UPSIDC and collected advance of Rs. 7.85 Cr during FY 13-14 & FY 14-15. The Sub-division of the plots is pending at UPSIDC and sales documents of these plots shall be executed after subdivision permission from UPSIDC.

46. As per CDR package, Non Convertible Debenture (Zero Coupon Bond) of Rs. 34.12 Cr has been issued by the company on 31st March 2014 in favour of lenders for their sacrifice repayable on 31st March 2026.

47. Further as per RBI Guideline & CDR Circular on Re-structuring, The Banks has to classify the re-structured account as sub-standard. Hence all banks categorized our account as sub-standard.

48. The Company recorded the interest (including the provision) on term loans and working capital as per interest rate stipulated in the CDR 2nd re-work package.

49. The Accumulated losses of the company as on March 31, 2015 are more than the net worth of the Company.

50. The Company had filed a case against Shree Laxmipati Balajee (Trader) for recovery of One Crore before the Honb'le District Court Ghaziabad, Uttar Pradesh u/s 138 of Negotiable Instrument Act, 1881.

51. Previous year figure have been regrouped and reclassified wherever considered necessary to make them comparable to those of the current year.

52. All other information required to be given is either Nil or Not applicable.

53. Figures in {brackets} pertain to the previous year.








Mar 31, 2014

(A) OTHER NOTES

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE FOLLOWING :

(a) CUSTOM AND CENTRAL EXCISE

i) The company had received a Show Cause Notice for claim of CENVAT CREDIT for the year 2006

and demand of Rs. 8,28,510 was raised. However, the matter was decided against the department by Honb''le CESTAT. Subsequent to which the Department filed a Writ Petition before the Hon''ble High Court Allahabad which is still pending.

ii) The Central Excise Department had issued Show Cause Notice (''SCN") 12/ADC/2007 for excess consumption of waste paper during April 2005 to September 2005 and demandof Rs. 20,97,503 was raised on the company. The company has filed an appeal against the SCNwhich is pending before the Additional Commissioner of Central Excise Ghaziabad till date.

iii) The Central Excise Department had issued Show Cause Notice for Non-payment of excise duty on waste, subsequently the company filed an appeal before the Additiontional Commissioner of Central Excise which was dismissed and following demands were raised upon the company

- Rs. 26,135 (Plus Interest and Penalty) for the period September 2010 to April 2011.

- Rs. 1, 73,115 (Plus Interest and Penalty) for the period February 2009 to August 2010.

- Rs. 1,58,816 (Plus Interest and Penalty) for the period F/Y 2004-05 to F/Y 2007-08.

However, the Company has filed an appealagainst the above order before Honb''le CESTAT which is still pending for adjudication.

(b) Sale Tax Department issued notice on July 5, 2013 and demand of

Rs. 91,437 was raised as Central Sale Tax for the financial year 2010-11.Companyhasfiled an appeal against the order before Additional Commissioner Appealwhich is pending for adjudication.

(C)EPCG LICENSE:- Under the EPCG scheme of the Government of India, the company imported capital goods for its Hotel Project during the year 2008-09 & 2009-10 at import duty rates less than the regular import duty rates and has saved import duty of equivalent INR Rs.6.38 Crores on import of capital goods and hence to fulfill an export obligation (including average basic export) in the next 8 year equal to Rs.51.04 crore.

During the year 2011-12, Paper Division utilized EPCG License 8.89 Lac on import of capital goods and hence to fulfill an export obligation (including average basic export) in the next 8 year equal to Rs.71.04 Lac.

Non- fulfillment of obligation will result into company liability to pay the duty so saved along with interest and such other sum as specified by the concerned authority.

2. Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter. The Company capitalized Inward Freight of Capital Asset at the end of month.

4. In the opinion of the management, current assets, loans and advances are of the value stated if realised in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonable.

5. During the year company has suffered loss & hence no provision for taxation has been made for the year ended 31.03.2014 in accordance with the provision of Income Tax Act, 1961.

6. The accounts of the parties are subject to their respective confirmation

8. INCREASE IN AUTHORISED CAPITAL

The Authorized Share Capital of the Company has been increased from Rs. 64,00,00,000 to 69,00,00,000 divided into 3,90,00,000 equity shares of Rs. 10/- each and 30,00,000 Preference Share of Rs. 100/- each.

9. ALLOTMENT OF ZERO COUPON NON-CONVERTIABLE DEBENTURES

During the year the Board of Directors of the Company had allotted 341200 Non-Convertible, Zero Coupon Non-Cumulative Redeemable Debentures of face value of Rs. 1000/- each at par payable on 31-03-2026 as per the CDR Terms and Conditions.

10. Additional information pursuant to the provision of paragraph 3, 4C and 4D of the schedule-VI to the Companies Act, 1956 (as certified by the management and relied upon by the Auditors)

11. RELATED PARTY TRANSACTION DISCLOSURE:

The related parties, as defined by Accounting Standard 18 ''Related Party Disclosure'' issued by the Institute of Chartered Accountants of India, in respect of which disclosure have been made, have been identified on the basis of disclosure made by the managerial persons and taken on record by the board.

We have identified all the related parties and transactions with all such information provided to you as under complete in all respects:

1 Key Management personnel

Mr. Pardeep Kumar Jain

Mr. Praveen Kumar Jain

Mr. Parmod Kumar Jain

Mr. Abhey Jain

Mr. Kishan Jain

Mr. RakeshGarg

Mr. SubhashOswal

Mr. Naveen Jain

Mr. Bikash Narayan Mishra

Mr. S. P. Chaturvedi

2 Relatives of key management personnel

Father of Director

Mr. Salek Chand Jain

Brother of Director

Mr. Vinod Kumar Jain

Wife of Director

Mrs. Veena Jain Mrs. Rita Jain Mrs. Asha Jain

Mrs. Monika Jain

Son of Director

Mr. Rishabh Jain Mr. Ritesh Jain Mr. Parv Jain

Daughter of Directors

Mrs. Priyanka Jain Ms. Shilpi Jain

HUF of Father of Director

M/S Salek Chand Jain (HUF)

HUF of Brother of Director

M/S Vinod Jain (HUF)

HUF of Directors

M/S Praveen Kumar Jain (HUF) M/S Pramod Kumar Jain (HUF) M/S Pradeep Kumar Jain (HUF) M/S Abhay Jain (HUF)

Sister of Director

Mrs. Shashi Jain

12. SUNDRY CREDITORS:

As per the best available information with the company there is no amount outstanding which is payable to small scale industrial undertaking.

13. DEFERRED TAX LIABILITY:

Deferred tax assets and liabilities are attributable to the following items:

14. IMPAIRMENT OF ASSETS

In accordance with Accounting Standard 28 ''Impairment of Assets'' issued by Institute of Chartered Accountants of India and made applicable from 1st day of April 2004, the company has assessed the potential generation of economic benefits from its business units as on the balance sheet date and is of the view that assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of

15. SEGMENT REPORTING

The Company is having two segment Paper division and Hotel Division. The segment reporting of the company has been prepared in accordance with Accounting Standard – 17 ''Accounting for Segment Reporting'' issued by Institute of Chartered Accountants of India.

Primary –

The Company has considered Business segments as primary format for segment reporting, namely Paper Division & Hotel Division.

17. CORPORATE DEBT RESTRUCTURING

During the Year Company had requested for second rework proposal to CDR, and approved by CDR EG at its meeting on 24-12-2013. The package is under process of implementation by the individual bankers. The Key Features of the re-work packages is as under:

a) Cut Off Date : 01st April 2013

b) Reduction in Interest Rate on Term Loans for Paper & Hotel Units, Additional WCTL and Working Capital Borrowings to 11.50% (base rate of MI 1.25%).

c) Reduction in Interest Rate on WCTL, FITL to 10.25% (base rate of MI).

d) Re-payment of principal for Paper Term Loans Rs. 36.58 Cr, PCC – Rs. 24.89 Cr, FITL – Rs. 21.40 Cr, WCTL – Rs. 8.81 Cr to be made in 40 structured quarterly instalments in 10 years commencing form 30.06.13 to 31.03.23.

e) Re-payment of principal for Hotel Loans – Rs. 126.75 Cr to be made in 52 structured quarterly instalments in 13 years commencing form 30.06.13 to 31.03.26.

f) Re-payment of Additional WCTL – Rs. 48.14 Cr to be made in 36 structured quarterly instalments in 13 years commencing form 30.06.14to 31.03.23.

g) Principal Instalment Repayments during the year are proposed to be serviced 10% in Qtr I, 15% in Qtr II, 40% in Qtr III and 35% in Qtr IV.

h) Funding of interest for April – June 2013 on Term Loan and WC Limits of Rs. 8.66 Cr as FITL and to be repaid in 5 years. Interest on FITL.

i) Working Capital Limits of Rs. 46 Cr be Continue.

j) 100% pledge of Promoter''s Shareholding of the Company.

k) The Company to sell surplus land of Rs. 40 Cr approx and its sale proceeds estimated to be realized

Rs. 12 Cr in FY 13-14; Rs. 15 Cr in FY 14-15; Rs. 7 Cr in FY 15-16 and Rs. 6 Cr in FY 16-17.

l) Promoters to bring in Rs. 9.93 Cr i.e. 25% of Sacrifice of Rs. 39.73 Cr, before implementation of package and Rs. 5 Cr p.a. from FY 2014-15 till all the loans are repaid in full.

m) Bank''s Sacrifice: Total Bank''s Sacrifice is Rs. 39.73 Cr out of which; Company will issue Zero Coupon Non pokll Convertible Debentures of Rs. 34.12 Cr redeemable on 31.03.2026. These NCDs shall be secured by first pari-passu charge on fixed assets of the company and charge shall be created accordingly.

18. As per Section 3(1) (o) of the Sick Industrial Company Act, 1985 the company is not a sick industrial company as on 31st March 2014.

19. The Hotel Division of the Company is having exemption from payment of Luxury Tax for a period of 5 years from 05-11-2009

20. Previous year figure have been regrouped and reclassified wherever considered necessary to make them comparable to those of the current year.

21. All other information required to be given is either Nil or Not applicable.

22. Figures in {brackets} pertain to the previous year.


Mar 31, 2013

1. Fixed assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

2. In the opinion of the management, current assets, loans and advances are of the value stated if realised in the ordinary course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonable.

3. During the year company has suffered loss & hence no provision for taxation has been made for the year ended 31.03.2013 in accordance with the provision of Income Tax Act, 1961.

4. The accounts of the parties are subject to their respective confirmation

5. Remuneration paid to the Directors of the company is as under:

6. RECLASSIFICATION OF AUTHORISED CAPITAL

The Authorised Share Capital of the Company is reclassified from Rs. 64,00,00,000 divided into 3,90,00,000 equity shares of Rs. 10/- each and 25,00,000 Preference Share of Rs. 100/- each.

7. ALLOTMENT OF PREFERENCE SHARES

During the year the Board of Directors of the Company had allotted 25,00,000 Non-Convertible, Non- Cumulative Redeemable Preference Shares of face value of Rs. 100/- each at par.

8. Additional information pursuant to the provision of paragraph 3, 4C and 4D of the schedule-VI to the Companies Act, 1956 (as certified by the management and relied upon by the Auditors)

I) Quantitative information with regard to the licensed & installed capacity, production & sales of paper manufactured by the company:

9. RELATED PARTY TRANSACTION DISCLOSURE:

Related party disclosures have been set out in separate statement annexed to this schedule. The related parties, as defined by Accounting Standard 18 ‘Related Party Disclosure'' issued by the Institute of Chartered Accountants of India, in respect of which disclosure have been made, have been identified on the basis of disclosure made by the managerial persons and taken on record by the board.

10. SUNDRY CREDITORS:

Sundry creditors include nil amounts due to small-scale industrial undertakings. The information regarding small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the Company.

11. DEFERRED TAX LIABILITY:

Deferred tax assets and liabilities are attributable to the following items:

12. BORROWING COST

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A Qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue. Interest and other borrowing cost amounting Rs. Nil (Previous year Nil) have been capitalised to the carrying cost of fixed assets & Capital Work in Progress

13. In accordance with Accounting Standard 28 ‘Impairment of Assets'' issued by Institute of Chartered

Accountants of India and made applicable from 1st day of April 2004, the company has assessed the potential generation of economic benefits from its business units as on the balance sheet date and is of the view that assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business: there is no indication to the contrary and accordingly, the management is of the view that no impairment provision is called for in these accounts.

14. SEGMENT REPORTING

The Company is having two segment Paper division and Hotel Division. The segment reporting of the company has been prepared in accordance with Accounting Standard – 17 ‘Accounting for Segment Reporting'' issued by Institute of Chartered Accountants of India.

Primary –

The Company has considered Business segments as primary format for segment reporting, namely Paper Division & Hotel Division.

PLEDGING OF SHARES

The Promoter of Company has pledged the shares in favour of Lenders to the Company as Security to the tune of 70% of their shareholding in the Company.

CORPORATE DEBT RESTRUCTURING

Due to the worldwide recession in the Hotel industry the company has not been in a position to generate revenue as envisaged at the time of project financing. Therefore the company applied to CDR Cell and the account of the company is under CDR Mechanism since 01-04-2009. Since then the Company had two round of Debt restructuring with the protection of NPV (Net present Value) of future cash flows of interest and principal. The company is again approaching the bankers for certain reliefs and concessions and the rework proposal is under their active consideration.

15. As per Section 3(1)(o) of the Sick Industrial Company Act, 1985 the company is not a sick industrial company as on 31st March 2013.

16. Previous year figure have been regrouped and reclassified wherever considered necessary to make them comparable to those of the current year.

17. All other information required to be given is either Nil or Not applicable.

18. Figures in {brackets} pertain to the previous year.

Note 1 to 27 form an integral part of the Balance Sheet as at 31st March -2013 and have been authenticated as such.

 
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