Mar 31, 2014
A. Accounts are not authenticated by the whole time Company Secretary,
as required by section 215(1) of the Companies Act, 1956, as the
company is facing acute financial crunch no whole time company
secretary was available for appointment, for due compliances.
b. CONTINGENT LIABILITIES:
Contingent Liabilities are disclosed after a careful evaluation of the
facts and legal aspects of the matter involved.
Contingent Liabilities not provided for:-
i) In respect of demand raised by the Central Excise Department
amounting to Rs. 1,76,04,797/-, the company preferred an appeal which
was won by the company. However, the Central Excise Department, Mumbai
has preferred an appeal before the Supreme Court and the case is being
protested suitably. The Central Excise department has filed further
complaint in this regard before the court of Honorable Chief Judicial
Magistrate, at Silvassa.
ii) Recron Synthetics Limited has filed case against the Company before
the High Court, Mumbai for a claim of Rs.4,49,38,266/- and interest
thereon Rs.2,99,41,821/- and other claims of Rs. 32,,87,546/-. However
the same is being suitably defended by the company.
iii) An Appeal Filed by the Company before the commissioner of Central
Excise (Appeal) the order on the same has been passed in favour of the
Company against demand of Rs. 3,61,537/- (already Paid) plus Rs.
16,32,382/- (already paid) and imposed penalty of Rs. 3,61,537/- and
Rs. 1,00,000/- and Interest thereon. However the Excise Department has
filed appeal before the CEGAT (case No. 103/adi/2001 ADC dated
31.10.2001). The Case is being defended by the company.
c. As per Accounting Standard-18 issued by the Institute of Chartered
Accountants of India, the disclosure of transactions with related
parties as defined in the Accounting Standard are given below.
Mar 31, 2011
1. NATURE OF SECURITY FOR SECURED LOANS:
A) Working Capital Loan from Central Bank of India.
1) By hypothecation of all the present and future stock of Raw
Materials, Stock in process, Finished Goods, Stores & Spares and Book
debts of the company.
2) Personal guarantee of Mr. Ravi Dalmia, Mr. Shashi Dalmia, Mr. Aditya
Dalmia, Mrs. Anita Dalmia, Mrs. Shardadevi Dalmia, Mrs. Pratibha
Dalmia, M/s. Pratik Overseas Corporation, Dalmia Exim Corpn. M/s. Ravi
International and Corporate Guaratee from M/s. Dalmia Exim Ltd.
B) Term Loan from Central Bank of India.
Secured by Equitable mortgage and first charged on present and future
Fixed Assets situated at 110/111 Govt. Indl. Estate Masat, Silvassa and
Sr.No. 218/1/1/ at Dadra Village and Hypothecation of Machinery and
other assets acquired or to be acquired by the company.
2. Balance of unsecured loans and sundry debtors, creditors, loans and
advances and deposits and bank loans taken /paid and bank balances are
subject to confirmation.
3. Sundry Advances include Rs. 14,75,000/- (Rs. 14,75,000/-), paid as
deposit to a firm in which directors are interested, for taking
premises on rent.
4. Loans and advances includes amount due from associated concern
where Directors are interested Rs. 11,35,556/- (Rs. 11,66,721/-).
5. Additional information pursuant to the provision of paragraph 3, 4C
& 4D of part II of Schedule VI of the Companies Act, 1956 is applicable
and the copy of stock statement is attached.
6 During the year, the company has provided Rs.Nil/-(Rs.Nil /-) in
respect of borrowing from Central bank of India. The reasonable quantum
and calculation of is taken as certified by the management as the
necessary evidence regarding the exact amount isn't in the possession
of the management. The company has requested the bank to waive all
uncharged / unpaid interest in its proposal for compromise arrangement.
The request is pending before the bank for concurrence. The losses
during the year are understated to the extent of unprovided interest as
borrowings from the bank. However the company has written back interest
expenses claimed earlier to the extent of Asst Year 2003-04 amounting
to Rs.5.26 Crores as the loss thereof would not be allowed to be
carried forward.
7. On 8.4.97 while implementing plans for expansion of the
manufacturing facilities the company had an MOU with M/s. Raymond
Synthetics Ltd. (RSL) interalia providing terms for supply for
uninterrupted raw material. It was also agreed to suitably revise the
job charges on revision in cost of power, labour, oil etc. Raymond
Synthetics Ltd. (RSL) has failed to fulfill its obligation under the
said MOU and reported to have become a sick company under provisions of
SIC (SP) ACT. The company is seeking for remedial action against
Raymond Synthetics Ltd. (RSL) for losses resulted due to its failure in
honoring terms of the MOU.
8. Figures in brackets indicate the figures pertaining to the
previous year.
9. Figures are rounded off to the nearest rupee.
10. Figures pertaining to the previous year have been regrouped and
rearranged where necessary to make them comparable with figures of the
Current Year.
11. No deferred Tax Assets are created in the books of the company as
in the opinion of the management, they are not reasonably certain that
there will be sufficient future income to recover such Deferred Tax
Assets.
12. Expenditure in foreign currency in respect of traveling amounted
to Rs. Nil/- (Rs. Nil /-) and Export Commission of Rs. Nil/-(Rs.
Nil/-). FOB Value of Exports is Rs. Nil/- (Rs. Nil /-).
13. Unpaid amount due as on 31.03.2011, to MICRO, Small and Medium
enterprise suppliers on account of principal amount together with the
interest thereon under the Micro, Small and Medium enterprise
Development Act, 2006 could not be ascertained by the company in the
absence of information relating to the status of the suppliers and has
not disclosed in the Financial Statements.
14. No provision has been made in the books of accounts of the Company
on account of retirement benefits of the employees, in accordance with
the AS-15 issued by the ICAI, as the same is made on cash basis and
shall be provided in the books of the company as and when paid.
15. In the opinion of the management AS-17 of segmental reporting is
not applicable to the company as the company has only one segment,
hence no separate reporting is made.
16. In Compliance with AS-20 Earning per Share issued by the I.C.A.I,
the disclosure are as under:
Earning per share - Rs. 11.42/- (Rs.-1.56/-)
Earning per share is calculated on Basis Earning per Share Method i.e.
by dividing the net profit for the period attributed to equity
shareholders by the weighted average number of equity share outstanding
during the period.
17. As per Accounting Standard-18 issued by the Institute of Chartered
Accountants of India, the disclosure of transactions with related
parties as defined in the Accounting Standard are given below:
18. Accounts are not authenticated by the whole time Company
Secretary, as required by section 215(1) of the Companies Act, 1956, as
the company is facing acute financial crunch no whole time company
secretary was available for appointment, for due compliances.
19. Central Bank of India has initimated proceedings under SARFAESI
Act, 2002 and taken symbolic possession of the plant assets. The
company is exploring possibilities of amicable settlement and
accordingly submitted proposal for One Time Settlement along with No
Lien Deposit of Rs. 43.00 Lac. The OTS proposal is under consideration
by bank. The company is contemplating to resume its manufacturing
activities therefore, the accounts are prepared assuming "Going
Concern" concept.
20. As informed by the management, Central Bank of India exercising
powers u/s 13(4) of Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002 has during the
year 2007-2008 disposed off collateral security of residential house
and office premises owned by guarantors for aggregate consideration of
Rs.196.00 lac. However, the bank has not yet provided the details
regarding appropriation of sale proceeds from disposal of the guarantor
assets. Therefore, the company has not made any accounting entries in
respect of these transactions.
Mar 31, 2008
A) Working Capital Loan from Central Bank of India.
1) By hypothecation of all the present and future stock of Raw
Materials, Stock in process, Finished Goods, Stores & Spares and
Bookdebts of the company.
2) Personal guarantee of Mr. Ravi Dalmia, Mr. Shashi Dalmia, Mr. Aditya
Dalmia, Mrs. Anita Dalmia, Mrs. Shardadevi Dalmia, Mrs. Pratibha
Dalmia, M/s. Pratik Overseas Corporation, Dalmia Exim Corpn. M/s. Ravi
International and Corporate Guarantee from M/s. Dalmia Exim Ltd.
B) Term Loan from Central Bank of India.
Equitable mortgage and first charged on present and future Fixed Assets
situated at 110/111 Govt. Indl. Estate Masat, Silvassa and Sr.No.
218/1/1/ at Dadra Village and Hypothecation of Machinery and other
assets acquired or to be acquired by the company.
1. Balance of unsecured loans and sundry debtors, creditors, loans and
advances and deposits and bank loans taken /paid are subject to
confirmation.
2. The company has made provisions for debts doubtful of recovery Rs.
2,90,77,392/- (Rs.2,90,77,392/-) as the management is not hopeful of
recovering the same.
3. Sundry Advances include Rs.14,75,000/- (Rs.14,75,000/-), paid as
deposit to a firm in which directors are interested, for taking
premises on rent.
4. Loans and advances includes amount due from associated concern
where Directors are interested Rs. Nil/- (Rs.10,745/-).
5. Additional information pursuant to the provision of paragraph 3, 4C
& 40 of part II of Schedule VI of the Companies Act, 1956 is not
applicable as there are no purchase and sales.
6. During the year, the company has provided Rs. Nil/-(Rs. Nil /-) in
respect of borrowing from Central bank of India . The reasonable
quantum and calculation of is taken as certified by the management as
the necessary evidence regarding the exact amount isn't in the
possession of the management. The company has requested the bank to
waive all uncharged / unpaid interest in its proposal for compromise
arrangement . The request is pending before the bank for concurrence .
The losses during the year are understand to the extent of un provided
interest as borrowings from the bank.
7. On 8.4.97 while implanting plans for expansion of the
manufacturing facilities the company had an MOU with M/s. Raymond
Synthetics Ltd. (RSL) interalia providing terms for supply for
uninterrupted raw material. It was also agreed to suitably revise the
job charges on revision in cost of power, labour, oil etc. Raymond
Synthetics Ltd. (RSL) has failed to fulfill its obligation under the
said MOU and reported to have become a sick company under provisions of
SIC (SP) ACT. The company is seeking for remedial action against
Raymond Synthetics Ltd. (RSL) for losses resulted due to its failure in
honoring terms of the MOU.
8. Figures in brackets indicate the figures pertaining to the
previous year.
9. Figures are rounded off to the nearest rupee.
10. Figures pertaining to the previous year have been regrouped and
rearranged where necessary to make them comparable with figures of the
Current Year.
11. No deferred Tax Assets are created in the books of the company as
in the opinion of the management, they are not reasonably certain that
there will be sufficient future income to recover such Differed Tax
Assets.
12. Expenditure in foreign currency in respect of traveling amounted
to Rs. Nil/- (Rs. Nil /-) and Export Commission of Rs.Nil/-(Rs. Nil
/-). FOB Value of Exports is Rs.Nil/- (Rs. Nil /-).
13. Unpaid amount due as on 31.03.2008, to MICRO, Small and Medium
enterprise suppliers on account of principal amount together with the
interest thereon under the Micro, Small and Medium enterprise
Development Act,2006 could not be ascertained by the company in the
absence of information relating to the status of the suppliers and has
not disclosed in the Financial Statements.
14. The BIFR in hearing held on 01.08.2005 have declared the Company
as Sick Industrial Company under section 3(l)(o) of the Sick Industrial
Companies (Special Provision) Act, 1985. However since Central Bank of
India has initiated proceedings under SARFSIA, the reference stands
abated.
15. No provision has been made in the books of accounts of the Company
on account of retirement benefits of the employees, in accordance with
the AS-15 issued by the ICAI, as the same is made on cash basis and
shall be provided in the books of the company as and when paid.
16. In the opinion of the management AS-17 of segmental reporting is
not applicable to the company as the company has only one segment,
hence no separate reporting is made.
17. In Compliance with AS-20 Earning per Share issued by the I.C.A.I,
the disclosure are as under:
Earning per share Rs.-2.73/- (Rs.-3.17)
- Earning per share is calculated on Basis Earning per Share Method
i.e. by dividing the net loss for the period attribute4 to equity
shareholders by the weighted average number of equity share outstanding
during the period.
18 Accounts are not authenticated by the whole time Company Secretary,
as required by section 215(1) of the Companies Act, 1956, as the
company being a sick industrial company facing acute financial crunch
no whole time company secretary was available for appointment, for due
compliances.
19 The manufacturing activities of the company continue to be closed.
The accumulated losses of the company have exceeded its net worth. The
Company has made reference to the Board for Industrial and Financial
Reconstruction (BIFR) and submitted proposal for rehabilitation.
However, Central Bank of India has initiated proceedings under SARFESIA
consequently BIFR has passed order for abetment of SICA proceedings.
The bank has taken possession of plant assets. Therefore, the company
is not a Going concern. The financial statement (and Notes thereto) do
not disclose this fact.
20 The management is of view that as per AS-28, impairment loss is
required to be recognized, as the present values of assets are lower
than the carrying amount of such assets. However, since the assets are
in possession of the bank, the company could not ascertain the
impairment loss.
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