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Notes to Accounts of STL Global Ltd.

Mar 31, 2015

1. Contingent liabilities and commitments (to the extent not provided for) (Figure in Lakhs)

Particulars As at As at 31 March 31 March 2015 2014

Contingent liabilities

Disputed Liability towards Sale Tax 57.93 57.93

Disputed Liability towards Local Area 47.99 47.99 Development Tax

Surety given to Sale Tax Dept for third 1 1 party

Commitments

Estimated amount of contracts remaining 105.00 90.00 to be executed on capital account and not provided for Tangible assets

2. Related party transactions

A. List of Related Parties :

Key Managerial Personnel

J.P.Aggarwal Vishal Aggarwal S.K.Aggarwal

Relative of Key Managerial Personnel

Vikas Aggarwal Sumitra Aggarwal

Enterprises over which Key management personnel or relative having influence

Reckon Industries Ltd. Ruchi India Limited Shyam Tex Exports Limited Target Fashion Limited

3. Deferred Tax

No provision for deffered tax assets has been provided by the Company, as there is no certainty that there will sufficient future taxable income to realise such assets.

4. In pursuance of Collaboration Agreement dated 23-05-2007 entered into by the Company with RPS Infrastructure Limited (RPS) for development of IT Park on Company's land situated at 12/6 Mathura Road, Faridabad, the Company executed mortgage on the said land as security for loan raised by RPS Infrastructure Limited from two banks, which include Oriental Bank of Commerce,the banker and charge holder of assets of the Company and member of consortium of banks of the Company and United Bank of India for construction of IT Park at the above said land. The aforesaid loan availed by RPS Infrastructure Limited was though expected to be utilized for development of IT Park on the aforesaid land. but Neither M/s RPS Infrastructure Ltd nor the Banker i.e Oriental Bank of Commerce and United Bank of India are providing any detail for end use of the loan disbursed to RPS. The Company have filed a writ petition vide No. 7354/2013 before the Hon'ble High Court Delhi for availing details basis of loan disbursement and its utilization on construction of IT Park and the same has been disposed off on dated 29.09.2014.

5. As at the Balance Sheet date, the accumulated losses of the Company are more than fifty percent of its net worth in the current financial year and in the previous year also. The Company has made a Reference to the Hon'ble Board for Industrial & Financial Reconstruction (BIFR) pursuant to the provisions of Sick Industrial Companies (Special Provision Act,1985), and the Hon'ble Board have decided abatement and the Company has filed an appeal before AAIFR and was also dismissed on dated 10.12.2014.

6. The previous year's figure have been regrouped/reclassified, wherever considered necessary to make comparable with the current year figures.


Mar 31, 2014

1(a) 32,00,000 ( Previous year 32,00,000) Equity shares out of the issued, subscribed & paid up share capital were issued as fully paid -pursuant to scheme of Amalgamation in the year 2006-2007

1(b) The Reconcilation of the number of shares outstanding and the amount of share capital as at March 31,2014 and March 31,2013 is set out below:

* Represents excess amount retained by ICICI Bank Limited out of sale proceeds of assets located at plot No.4 Sector-6 Faridabad over and above outstanding secured term loan. The Company is claiming this amount with interest.

2. (a) Security

* Secured by a first charge over the Company''s immovable and movable properties (except land situated at 12/6 Mathura Road, Faridabad) including its movable machinery, spare & tools and accessories, present & future, and a first charge on all the remaining assets of the Company, present & future ( save and except book debts in the case of hypothecation) subject to prior charges and/ or to be created in favour of the company''s bankers for securing its working capital requirement and further guaranteed by personal guarantee of promoters directors.

The above secured borrowings (excluding vehicle loan) are further secured by way of Pledge of 60,00,000 equity share of the Promoters of the Company.

** Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movables, present & future, and also a second parri passu charge ranking after the charge to be created in favour of the term lenders on immovable and movable properties, both present and future.

*** Secured by Subservient charge on the current assets of the Company.

**** Secured by first charge on certain movable assets (Vehicles)

3. (a) Punjab National Bank as consortium leader issued Notice u/s 13(2) and further u/s 13(4) of the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. by declaring accounts as NPA and amount demanded in both the notices are exorbitant high The Company disputes the validity of the aforesaid notices and has a separate claim for losses due to action/inaction of various parties and filed an Appeal U/s 17 of the same Act before Hon''ble Debt Recovery Tribunal (DRT-I), Chandigarh and are under consideration. Apart from the above DBS Bank, ICICI Bank and UCO Bank have separately filed Recovery suit against the Company before the Hon''ble Debt Recovery Tribunal (DRT) and the matter is still pending.

3 (b). Interest on Bank borrowing has been provided on the basis of interest rates as per the sanctioned Scheme under CDR, penal or other interests claimed by the bank are not accounted.

4(a). Security

Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movables, present & future, and also a second pari passu charge ranking after the charge to be created in favour of the term lenders on immovable and movable properties, both present and future.

20052 sqft of built up area in IT Park being developed by RPS Infrastructure Limited on land owned by the Company, in pursuance of Collaboration Agreement between RPS Infrastructure Limited and the Company has been allotted by the Company, to Indusind Bank Limited against their full amount of outstanding dues.

The Company will adjust the loan amount of Indusind Bank Limited on fulfillment of condition for sale of area.

4 (b). Interest on Bank borrowing has been provided on the basis of interest rates as per the sanctioned Scheme under CDR, penal or other interests claimed by the bank are not accounted.

4(c). The Company has not provided interest on working capital loans from DBS Bank, as it not participated in the CDR Package (approved by more than 3/4 majority of lenders) and filed recovery suit against the Company before the Hon''ble Debt Recovery Tribunal ( DRT),The proceedings in the matter are pending.

''Includes Rs.15,45,952 as on 31st March,2014 (previous year Rs. 12,18,786) due to Micro, Small and Medium Enterprises as required to be disclosed under the Micro,Small and Medium Enterprises Development Act, 2006. further there was no delays in payment to Micro,Small and Medium Enterprises. The information regarding Micro,small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors.

The Company have various legal dispute with M/s RPS Infrastructure Ltd and the matter is sub-judice and pending before Hon''ble Court. However The Company has recognized revenue from Real Estate Business of Development of IT Park on the basis of accounts submitted by M/s RPS Infrastructure Ltd

(Figure in Lakhs) Particulars As at As at 31 March, 2014 31 March, 2013

Contingent liabilities

Disputed Liability towards Sales Tax 57.93 57.93

Disputed Liability towards Local Area 47.99 47.99 Development Tax

Bank Gurantee Towards HSPCB - 3.00

Surety given to Sale Tax Deptt for third Party 1 1

Commitments

Estimated amount of contracts remaining to 90.00 90.00 be executed on capital account and not provided for Tangible assets

5. Employee Benefits

In accordance with Accounting standard 15 "Employee Benefits", the Company has classified verious benefits provided to the employee are as follows:

6. Related party transactions

A. List of Related Parties :

Key Managerial Personnel

J.P. Aggarwal Vishal Aggarwal S.K.Aggarwal

Relative of Key Managerial Personnel

Vikas Aggarwal Sumitra Aggarwal

Enterprises over which Key management personnel or relative having influence

Reckon Industries Ltd.

Ruchi India Limited Shyam Tex Exports Limited Target Fashions Limited

B. Related Party Transactions :

7. Segment Reporting a) Primary Segment

Based on the guidelines on Segment Reporting ( AS-17) issued by the ICAI. The Company''s primary business segment is Textile, during the current financial year The Company have revenue from Real Estate also.

Fixed assets used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly no disclosure relating to total segment assets and liabilities are made.

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company''s consolidated sales is within india, accordingly no disclosure relating to Geographical Segment are made.

8. Deferred Tax

No provision for deffered tax assets has been provided by the Company, as there is no certainty that there will sufficient future taxable income to realise such assets.

9. In pursuance of Collaboration Agreement dated 23-05-2007 entered into by the Company with RPS Infrastructure Limited (RPS) for development of IT Park on Company''s land situated at 12/6 Mathura Road, Faridabad, the Company executed mortgage on the said land as security for loan raised by RPS Infrastructure Limited from two banks, which include Oriental Bank of Commerce,the banker and charge holder of assets of the Company and member of consortium of banks of the Company and United Bank of India for construction of IT Park at the above said land.

The aforesaid loan availed by RPS Infrastructure Limited was though expected to be utilized for development of IT Park on the aforesaid land. but Neither M/s RPS Infrastructure Ltd nor the Banker i.e. Oriental Bank of Commerce and United Bank of India are providing any detail for end use of the loan disbursed to RPS. The Company have filed a writ petition vide No. 7354/2013 before the Hon''ble High Court of Delhi for availing details basis of loan disbursement and its utilization on construction of IT Park and the case is still pending.

10. As at the Balance Sheet date, the accumulated losses of the Company are more than fifty percent of its net worth in the current financial year and in the previous year also. Total accumulated losses as at 31st March,2014 was Rs. 15,940.83 lakhs ( previous year Rs 13,052.71 lakhs ) against net worth of the Company for the current year Rs 7,885.42 lakhs (Previous year7,885.42 lakhs) excluding revaluation reserve of Rs.2044.38 lakhs. The Company has made a Reference to the Hon''ble Board for Industrial & Financial Reconstruction (BIFR) pursuant to the provisions of Sick Industrial Companies (Special Provision Act,1985), and the Hon''ble Board have decided abatement and the Company is filing Appeal before appropriate authority.

11. The previous year''s figure have been regrouped/rearranged, wherever considered necessary to make comparable with the current year figures.


Mar 31, 2013

1. Deferred Tax

An amount of Rs. 21,46,33,257 pertaining to deferred tax assets created up to the financial 2010-2011 was reversed in the previous financial year 2011-2012 for reasons of lack of certainty that there will be sufficient future taxable income available to realize such assets. As there is no change in the aforesaid assessment of future income as at March 31,2013, Deferred Tax Asset is not recognized.

2. In pursuance of Collaboration Agreement dated 23-05-2007 entered into by the Company with RPS Infrastructure Limited for development of IT Park on Company''s land situated at 12/6 Mathura Road, Faridabad, the Company executed mortgage on the said land as security for loan raised by RPS Infrastructure Limited from two banks, which include Oriental Bank of Commerce, the banker and charge holder of assets of the Company and member of consortium of banks of the Company and United Bank of India for construction of IT Park at the above said land.


Mar 31, 2012

STL Global Limited having its plant situated at Plot no 207-208 Sector-58 Faridabad , the company deals in business of Manufacturing of knitted fabrics and processing, dyeing and finishing of Knitted Fabrics.

1.1.a) 32,00,000 ( Previous year 32,00,000) Equity shares out of the issued, subscribed & paid up share capital were issued as fully paid -persuant to scheme of Amalgamation in the year 2006-2007

1.1.b) The Reconcilation of the number of shares outstanding and the amount of share capital as at March 31,2012 and March 31, 2011 is set out below

1.2.a Security

* Secured by a first charge over the Company's immovable and movable properties ( except land situated at 12/6 Mathura Road, Faridabad) including its movable machinery, spare & tools and accessories, present & future, and a first charge on all the remaining assets of the Company, present & future ( save and except book debts in the case of hypothecation) subject to prior charges and/ or to be created in favour of the company's bankers for securing its working capital requirement and further guaranteed by personal guarantee of promoters directors

** Secured by equitable mortgage of land measuring 13370 Sq Yards situated at 12/6 ,Mathura Road Faridabad.

*** Secured by pari passue first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movable, present & future and also a second parri passue charge ranking after the charge to be created in favours of the term lenders on immovable and movable properties both present and future.

**** Secured by Subservient charge on the current assets of the Company.

***** Secured by first charge on certain movable assets ( Vehicles)

1.3.a Security

Secured by pari passu first charge on current assets , stock of raw material, semi finished and finished goods, consumable stores & spares, bills receivables & books debts and all other movable, present & future and also a second parri passu charge ranking after the charge to be created in favours of the term lenders on immovable and movable properties both present and Future.

Note 1.4 Contingent liabilities and commitments (to the extent not provided for)

(Figure in Lakhs)

Particulars As at 31 As at 31 March, 2012 March, 2011

Contingent liabilities

Letter of Credit (Net of Margin of Rs. 47.71 Lakhs 351.07 353.92 previous year Rs. 44.72 Lakhs)

Disputed Liability towards Income Tax 39.33 39.33

Disputed Liability towards Sale Tax 27.23 27.23

Disputed Liability towards Local Area Development Tax 47.99 47.99

Disputed Liability towards A.E.P.C - 9.85

Bank Gurantee towards HSPCB 3.00 -

Surity given to Sale Tax Deptt for third party 1 1

Commitments

Estimated amount of contracts remaining to be executed 120.00 42.00 on capital account and not provided for Tangible assets

Fixed assets used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. Accordingly no disclosure relating to total segment assets and liabilities are made.

b) Secondary Segment Reporting ( By Geographical Segments) :

The distribution of Company's consolidated sales is within India, accordingly no disclosure relating to Geographical Segment are made.


Mar 31, 2010

AS AT AS AT

31.03.2010 31.03.2009

(Rs. in lakhs) (Rs. in lakhs)

1. CONTIGENT LIABILITIES

(a) Letter of Credit (Net of Margin of Rs. 65.67 197.97 1102.55 Lakhs previous year Rs. 281.60 Lakhs)

(b) Disputed Liability towards Income Tax 44.62 39.33

c) Disputed Liability towards Sale Tax 56.05 44.25

(d) Disputed Liability towards Local Area 47.99 47.99 Development Tax

(e) Disputed Liability towards A.E.P.C 9.85 Nil

(f) Surety given to Sale Tax Deptt. For third party 1 1

2. Estimated amount of contracts remaining to be executed on Capital account is Rs. 60.00 lakhs (Previous Year Rs.275.00 lakhs)

3. Computation of Net Profit in accordance with section 198/349 of the Companies Act, 1956 has not been given as no commission is payable to managing/whole time Director.

4. Previous years figures have been regrouped / rearranged wherever considered necessary to make comparable with the current year figures.

5. Sundry creditors includes Rs. 15,45,688.00 as on 31st March 2010 (Previous year Rs. 19,22,572) due to Micro, Small and Medium Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. further there are no delays in payment to Micro, Small and Medium Enterprises. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

6. RELATED PARTY TRANSACTIONS

As per AS-18 issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions with them are disclosed below:

Related Parties

(a) Subsidiaries : Nil

b) Associates : Nil

(c) Key Managerial Personnel 1. J.RAggarwal

2. Vishal Aggarwal

3. S.K.Aggarwal

(d) Relative of key Managerial 1. Sumitra Aggarwal

Personnel 2. Vikas Aggan/val

(e) Enterprises over which key 1. M/s Reckon Industries Ltd.

management personnel (KMP) 2. M/s Ruchi India Limited

or relative having influence 3. M/s Target Fashion Limited.

4. M/s Vinsan Healthcare Ltd.

5. M/s Reckon Pharmachem Pvt. Ltd.

6. M/s Shyam Tex Exports Ltd.

7. SEGMENT INFORMATION:

a) Primary Segment Reporting by Business Segment:

Based on the guidelines in Accounting Standard on segment Reporting (AS-17) issued by the ICAI, The Companys primary business segment is Manufacture in textiles. The Textile Business incorporate the product groups namely: Dyeing and Processing of woven and knitted Fabrics and Processing and dyeing of Yarn and Manufacture of Readymade Garments and Sewing threads, which mainly have similar risks and returns.

The Company has common fixed assets for producing goods for overseas market and domestic markets, hence separate figures for fixed assets/additions to fixed assets etc. cannot be furnished.

8. FINANCIAL AND DERIVATIVE INSTRUMENTS

a) The Company have entered into derivative contract under the category Currency swaps and Notional Principal amount outstanding as on 31st March 2010 amounts to Rs. 20,00,00,000 (Previous year Rs.20,00,00,000)

b) In respect of outstanding derivative contracts which are stated in para a above, there is a net unrealized profit of Rs. 30.67 lakhs ason31st March 2010due to reversal in M to M Provision and Rs 25.53 Lakhs .which has been credited to Profit & Loss account, considering the principles of prudence as enunciated in Accounting Standard I "Disclosure of Accounting policies" notified in the Companies (Accounting Standard) Rules 2006.

c) Foreign currency exposure i.e Assets (Trade Receivables) .that are not hedged by the company are Rs 21.68 lakhs (Previous year Rs. 347.61 lakhs).

9. Additional Information pursuant to part II of schedule VI of the Companies Act, 1956 as certified by the management.

 
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