Mar 31, 2018
Note
(I) The Company has entered into an agreement with a Strategic Investor to take over the loans from its all existing lenders directly or indirectly through other agencies and has agreed to pay as per Strategic Investment Agreement within 24 months from the date of 100% loans take-over by the Investor. The modification of charge in favour of Strategic Investor for the loans acquired by the Strategic Investor has been done. Company has obtained substantial relief of Rs. 311.04 crore from Strategic Investor from the originally agreed terms. The relief received from Strategic Investor is considered as reduction in fair value of the liability on the transition date, i.e. 1st April 2016. The reconciliation of effect of transition to Ind AS is given in Note No. 32A.
Further, in view of the advice from the technical consultant (Refer Note No. 24) to abandon the PTA project and discard its plant and machinery due to safety concern, the Company has negotiated and secured further reduction of Rs. 105.92 crore in the amount payable to the Strategic Investor. This reduction in liability is subject to right to recompense in case of failure of the Company to repay the dues within mutually agreed time frame. The reduction in liability agreed upon by the Strategic Investor has been shown under Other Comprehensive Income (Refer Note No. 21).
(ii) Non-Convertible Debentures include Series I debentures of the value of Rs. 2200.00 lacs and Series III debentures of the value of Rs. 772.21 lacs. These debentures were redeemable at par in one or more installments on various dates between February, 1999 and October, 2007 and are overdue for payment. Series I debentures of the value of Rs. 2200 lacs are secured by (i) first charge by way of English mortgage ranking pari-pasu of the immovable properties situated at specified plot of land at village Palas, District Roha, in the state of Maharashtra, and (ii) extension of first charge ranking pari-pasu on movable properties situated at village Chhata, District Mathura in the state of Uttar Pradesh. These debentures are further secured by first charge on all the movable assets of the Company both present and future (excluding current assets and specific assets charged to others) situated at aforesaid locations and ranking on a pari-pasu basis with others. The debentures are further secured by personal guarantee of a Promoter Director.
Series III debentures of the value of Rs. 772.21 lacs are secured by first charge by way of English mortgage ranking pari-pasu of the immovable properties situated at specified plot of land at village Palas, District Roha, in the state of Maharashtra, and first charge ranking pari-pasu on movable assets situated at village Chhata, District Mathura in UP.
(iii) Loans from financial institutions amounting to Rs. 2637.99 lacs (Previous year- Rs. 2638.99 lacs) along with loans acquired/settled/repaid by Strategic Investor are secured by way of Equitable Mortgage on immovable properties situated at Chhata, District Mathura in the State of Uttar Pradesh and are further secured by way of hypothecation of movable properties of the Company both present and future (other than current assets and specific assets charged to others) ranking on a pari-pasu basis and are further secured by personal guarantee of a Promoter Director .
Above loans from financial institution are inclusive of advance of Rs. 407.90 lacs given by the said institution to an Equipment Vendor for the supply of specific plants at Company''s site to be leased on commissioning to the Company. The above outstanding is included in the Term Loan in view of a cDr proposal to that effect followed by in-principle confirmation from the said Financial Institution to that restructuring scheme.
(iv) Secured Loan from Strategic Investor includes dues of banks and Financial Institution which were acquired and repaid by the Strategic Investor. These loans are secured by way of hypothecation/ charge on the immovable properties of the company excluding assets specifically charged to others and is further secured by personal guarantee of a Promoter Director.
Loans includes NCD acquired by strategic investor of the face value of Rs. 7153.43 lacs on account of NCD redemption. NonConvertible Debentures were redeemable at par in one or more installments on various dates with redemptions commencing from February, 1999 being the earliest redemption and October, 2007 being the last redemption date. These NCDs are part of the settlement with the Stretegic Investor as mentioned above in clause (I).
(v) A Promoter Director of the Company, his family members and investment companies, have pledged 20.88 lacs shares owned by them to Banks and Financial Institutions as collateral security.
1. Some of the lenders have approached DRT for recovery of their dues. Certain bankers and Financial Institutions have settled / assigned their claims to certain Asset reconstruction Company, Foreign bank and other Investment Companies including one strategic investor with whom company has entered into complete strategic investment settlement agreement. Company has replaced those lenders in its books of accounts by incorporating the name of strategic investor who has funded the oTs with them. PICUP being one of the Secured Creditors has issued notice for taking possession of assets of the Company. Company has obtained stay order from honorable Allahabad High Court against the PICUP''s notice of possession. Company is also in negotiation with PICUP for settlement of its dues.
2. Company''s PTA Plant under construction at Chhata in UP has been under shut down since September, 2000. Corrosion has taken place in the Plant due to climatic and cyclonic conditions in the area and due to lack of operation in the plant. Meanwhile, provisions of Ind AS became applicable to the Company with Transition Date being 01.04.2016. Company has elected to adopt Fair Value for measurement of Property Plant & Equipment. A reputed firm of valuers has assessed the Fair Value of plant and equipment under construction in PTA project of the Company at Chhata at Rs. 22514 lacs as on 01.04.2016. Loss of Rs. 68807 lacs arising from such Fair Value adoption has been adjusted in Ind AS Transition Reserve (Refer Note No. 32A).
The Company also sought advice of the experts on possible alternative uses of the plant under construction at Chhata. However Technical Expert, after doing health assessment of the plant, has categorically stated that if the Company tries to repair the equipment after some inspections, it will not be possible to guarantee overall safety & reliability of high pressure equipment for hazardous plant operation. Technical expert did not consider it safe to operate the equipment in Company''s plants & offsite facilities and concluded that Company''s plant and equipment under construction were not fit for operation and hence should be discarded.
Based on above advice, the Company has provided Impairment loss of Rs. 11343 lacs during the year in line with provisions of Ind AS 36-Impairment of Assets, considering scrap value of the discarded plant as realizable value of the asset. This being a technical matter, loss estimate is done by the management and relied upon by the auditors. Company has appointed largest plant disposal & management consultant to sell and dispose the plant & equipment as scrap subject to necessary approval from lenders. The impairment loss has been accounted under other comprehensive income (Refer Note No. 21). Other items of Capital work in progress have been capitalized and transferred to respective accounts of fixed assets on 31.03.2018. The Company has received an advance of Rs. 401 lacs from one party interested in purchase of some of the plant & equipmentâs under sale.
3. In respect of financial liabilities of the company towards outstanding debentures and secured loans from state financial institution, the Company is in negotiations for settlement of their dues. A reliable estimate cannot be made of the amount likely to be paid in satisfaction of above obligations. Following the provision of Ind AS 37 no provision has been made for additional amounts on account of interest and other charges which may be payable to the lenders.
4. Prior to this year the company has been capitalizing the expenses (net of any miscellaneous income) incurred as preoperative expenses in capital work in progress. Expenses up to 30th September 2017 have been accounted on the same basis and have been capitalized into capital work in progress. On deciding to abandon and scrap the project in progress, the revenue transactions with effect from 1st October 2017 have been recognized in the profit and loss statement.
5 Calls in arrears include unpaid Allotment Money related to Debentures which have been converted into Equity Shares as per the terms of their issue. The Company, in exercise of its lien on such shares, has not issued the share certificates to the defaulting Debenture holders. The Company''s lien on such shares will extend to the forfeiture of such shares if considered necessary by the Company Board in due course of time.
6 Contingent Liabilities not provided for in the Accounts are as follows :
a) Claims against the Company not acknowledged as debt, as certified by the management, including matter under litigation as on 31st March, 2018 Rs. 835.26 lacs (P.Y.Rs.835.26 lacs).
b) During the financial year 2015-16 company had received a letter dated 11.01.2016 from Central Bank for their fee including interest of Rs. 506.09 lacs for acting as Debenture trustee. Company has not provided for this demand as the matter is pending before Debt Recovery Tribunal (DRT).
c) Commercial Tax authorities have levied penalty for the years 2007-08 and 2008-09 of Rs.1,62,528/- and Rs.3,61,540/-respectively regarding use of concession form on procurement of HSD taken / used. Company has preferred appeal before the appellant authority for the stay and waiver of the penalty. The appeal has been decided partially in favor of company by giving 50% relief. Now, company has filed appeal before Tribunal for waiver of balance amount of Penalty. Company has however deposited the disputed amount under protest pending its appeal before the Tribunal. The final hearing has taken place and the order is awaited.
d. The Company had received show cause notice in the year 2003-04 from the Government authorities demanding duty of Rs. 95.57 lacs on imported spares kept in Govt. approved Bonded warehouse beyond permissible time limit. The authorities vide their order dated 30.05.2016 dropped the proceedings and instructed the competent officer to take charge of the imported spares, dispose them through auction and use the amount towards ground rent and detention charges. During the year, the Company has written off the imported spares shown in inventory amounting to Rs. 165 lacs and written back provision for duty demand.
7.Income Tax Assessment / intimation U/S 143 (1) of the company have been completed up to Assessment Year 2016-17. There is no disputed demand outstanding and payable as on date of Balance sheet.
8.There are no dues to Micro, Small and Medium Enterprises which are outstanding as at the Balance Sheet date and there were no delays as per the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 in payment of dues to such enterprises. The above 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 has been relied upon by the auditors.
9. OTHER NOTES
A. First-time adoption of Ind AS
These financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. The Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31,
2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). The Balance sheet as on the date of transition has been prepared in accordance with Ind AS 101- First Time Adoption of Indian Accounting Standards. Reconciliation and description of the effect of transition from previous GAAP to IND AS on net worth are provided below:
a. Fair valuation as deemed cost for Property, Plant and Equipment: The Company have considered fair value for property, viz land admeasuring over 261 acres, situated in Mathura, UP, with impact of Rs. 378.90 crore and unused under construction PTA Plant closed and non-operative since 2000 with impact of (-) Rs. 688.07 crore in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the Ind AS Transition Reserve.
b. Fair valuation for Financial Assets : The Company has valued Financial assets at fair value. Impact of fair value changes as on the date of transition, is recognized in Ind AS Transition Reserve.
c. Fair valuation for Financial Liabilities : The Company has valued Financial Liabilities at fair value. Impact of fair value changes as on the date of transition, is recognized in Ind AS Transition Reserve. The substantial relief of Rs. 311.04 crore received from strategic investor has been considered for fair valuation of borrowings.
B. During the year the company has set up 100% subsidiary with a capital of Rs. 1.00 lac. The subsidiary company has not started any operations during the year and no bank account was opened till 31.03.2018.
10.Related Parties Disclosure in respect of Related Parties pursuant to Ind AS 24 are given below:
A) List of related party with whom transactions have taken place and relationship :-
Subsidiary Company
i) Nandvan Food Park Private Limited
Associate Company
I) Akhil Marketing Private Limited
ii) Krishna Advisors Private Limited
iii) Krishna Suppliers Private Limited
iv) SVC Growth Fund Private Limited
Key Management Personnel Non Wholetime Director
Sh. Suresh V. Chaturvedi - Promoter Director
Sh. G S Dahotre-Director
Sh. Jaffar Imam- Director
Sh. I G Mehrotra-Director
Sh. P P Shastri- Director
Ms Abha Ravi- Director
a) No amount in respect of related parties have been written off / written back during the Accounting Period.
b) Related party relationship have been identified by the management based on Ind AS 24 and relied upon by the Auditors.
11.Pre-operative expenses subject to Note No. 26 hereinabove in respect of ongoing project up to 30th September 2017 are included under the head Capital Work-in-Progress.
12.Previous year figures have been regrouped, reworked, rearranged and reclassified wherever necessary. Figures in brac he corresponding figures for the previous year.
Mar 31, 2017
17. Since commercial production has not commenced during the year, no profit and loss account has been prepared. The necessary details as per Part II of Schedule II of the Companies Act, 2013 have been disclosed in Note No. 28 hereinafter. All the expenses incurred during the year have been capitalized as per said Note 28.
2. Calls in arrears include unpaid Allotment Money related to Debentures which have been converted into Equity Shares as per the terms of issue but in respect of which the Company, in exercise of its lien on such shares, has not issued the share certificates to the defaulting Debenture holders. The Company''s lien on such shares will extend to the forfeiture of such shares if considered necessary by the Company Board in due course of time.
3. Some of lenders have approached DRT for recovery. However, certain bankers and Financial Institutions have settled / assigned their claims to certain Asset reconstruction Company, Foreign bank and other Investment Companies including strategic investor with whom company has entered into complete strategic investment settlement agreement. Company has replaced those lenders in its books of accounts by incorporating the name of strategic investor who has funded the OTS with them. PICUP being one of the Secured Creditors has issued notice for taking possession of assets of company, however company has already got stay order from honorable Allahabad High court against the PICUP notice of possession, till further order.
4. Company''s Plant under construction has been under shut down since September, 2000 and with the passage of time and in the absence of any operation since then, the corrosion is taking place in the Plant due to climatic and cyclonic conditions in the area. It is difficult to express the opinion about the health of the Plant on going concern basis or about the losses due to impairment of the assets of the Project, as required under Accounting Standard 28 (AS-28), since the project and its plant & machinery are one of the highly technologically oriented project whose valuation or its capabilities and conditions are technical subject, and in the absence of independent technical evaluation and health check up of the Plant at present, one cannot determine losses if any, for making any provision for impairment of the assets of the project or about its status as ongoing project.
5. Due to non-servicing of debt and consequential debt restructuring/One Time settlement (OTS) proposal and also due to pendency of DRT proceedings, some Banks and institutions have not provided in their books of accounts Interest/Bank charges and therefore outstanding of such Banks and Financial Institutions is un-reconciled. In view of non commencement of.
6. Contingent Liabilities not provided for in the Accounts are as follows :
a) Claims against the Company not acknowledged as debt, excluding the amount mentioned in Note No.1 5 hereinabove, as certified by the management, including matter under litigation as on 31st March, 2017 Rs.835.26 lacs (P.Y.Rs.835.26 lacs)
b) During the previous year company has received a letter from Central Bank for their fee including interest for Rs. 506.09 lacs for acting as Debenture trustee, company has not provided for any provision for it. Because matter is pending before different Debt Recovery Tribunal (DRT).
c) Company has filed appeal against the order of Commissioner of Excise & Service Tax before CESAT Delhi for disallowing Cenvat credit Rs. 127.95 lacs and levy of penalty of equal amount. Company has received the stay order against above demand. The company is confident that its appeal will be allowed. Accordingly, no provision has been made in its accounts. Hearing is pending before Tribunal.
d) Company has received another show cause notice during the earlier year from the Excise authorities that why Cenvat Credit Rs. 217.60 lacs along with interest and penalty should not be recovered from the Company. Company has reversed the said - modvats credit of Rs.217.60 lacs under protest and has preferred appeal before the CESAT Delhi, got stay order and is confident that the relief will be granted by the CESAT. Company has included such reversal of modvat credit of Rs.217.60 lacs in earlier year 2010-2011 in Capital work in progress. Case is fixed on 09.05.2017.
e) Commercial Tax authorities have levied penalty for the year 2007-2008 and 2008-2009 of Rs.1,62,528/- and Rs.3,61,540/-respectively regarding use of concession form on procurement of HsD taken / used. Company has preferred appeal before the appellant authority for the stay and waiver of the penalty. The appeal has been decided partialy in favour of company by giving 50% relief. Now, company has filed appeal before Tribunal for waiver balance amount of Penalty. Company has however deposited the disputed amount under protest pending its appeal before the Tribunal. The Matter is still pending for hearing.
f) The Company had received show cause notice in the year 2003-04 from the Government authorities for demand of duty on imported spares kept beyond permissible time and still lying in Govt. approved Bonded warehouse amounting to Rs.95.57 lacs. Company has responded to said show cause notice and has also made provision accordingly. Final hearing was done on 11.11.2016 and final order is awaited shortly.
7 Income Tax Assessment / intimation U/S 143 (1) of the company have been completed up to Assessment Year 2015-16. There is no disputed demand outstanding and payable as on date of Balance sheet.
8 As there is no commercial operation or fresh purchases and there are only old creditors, the company is not able to identify creditors covered by Micro, small and medium Enterprises Development Act, 2006 and as such amount payable to them, if any, could not also be ascertained.
9 As per Accounting Standard (AS-18) on âRelated Party Disclosuresâ the disclosure of transactions with related parties as defined therein are given below:-
(A) List of related party with whom transactions have taken place and relationship :-
Associate Companies
(I) Akhil Marketing Pvt. Ltd.
Key Management Personnel Non Whole time Director
Sh. Suresh V. Chaturvedi - Promoter Director
Sh. GS Dahotre-Director
Sh. Jafer Imam- Director
Sh. I G Mehrotra-Director
Sh. PP Shastri- Director
Ms Abha Ravi- Director
(B) Transaction during the Accounting year with related parties
10 Disclosure on Specified Bank Notes (SBNs)
During the year, the Company had specified bank notes and other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 31, 2016, the denomination wise SBNs and other notes as per the notification is given below:
11 In the opinion of the Board, Assets of the company excluding Capital-work-Progress whose no technical evaluation has been made during the year, have a value on realization, at least equal to the amount at which they are stated in the books of accounts and provision for all known liabilities, except as mentioned otherwise, has been made.
12.Previous year figures have been regrouped, reworked, rearranged and reclassified wherever necessary. Figures in brackets indicate the corresponding figures for the previous year
* For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated 3th November. 2016.
Mar 31, 2015
1. Most of lenders have approached DRT for recovery. However, certain
bankers and Financial Institutions have assigned Sheirclaims to certain
Asset reconstruction Company, Foreign bank and other Investment
Companies including certain strategic investor. Company has not
replaced those lenders in its books of accounts due to ongoing
disputes. PICUP being one of the Secured Creditors has issued notice
for taking possession of assets of company, however company has already
got stay order from honourable Allahabad High court against the PICUP
notice of possession, till further order.
2. Due to non-servicing of debt and consequential debt
restructuring/One Time settlement (OTS) proposal and also due to
pendency of DRT proceedings, various Banks and institutions have not
provided in their books of accounts Interest/Bank charges and therefore
outstanding of such Banks and Financial Institutions is un- reconciled.
In view of various Debt Restructuring proposals submitted earlier
before the fenders and matters under One Time settlement (OTS)
negotiation and aiso certain matters being pending before the Debt
Recovery Tribunal and also due to non commencement of commercial
operation of the unit for more than a decade causing non-servicing of
its debt to the lenders and its present financial position , company
has not provided any interest since September' 1999, aggregating to
Rs.7604.83 crores (6302.97 crores) as on 31st March 2015 on this basis
of original documented rate. Neither Interest is provided nor
ascertained on the unpaid amounts payable to creditors due to delay in
project commissioning and disputes with such parties. The interest at
the documented rates not provided by the company amounted to Rs 1301.86
crores(Rs. 1092.59 crores) for the year ended on 31st March 2015
included in above on its secured borrowings.
3. Company's Plant under construction has been under shut down since
September, 2000 and with the passage of time and in the absence of any
operation since then, the corrosion is taking place in the Plant due to
climatic and cyclonic conditions in the area. It is difficult to
express the opinion about the health of the Plant on going concern
basis or about the losses due to impairment of the assets of the
Project, as required under Accounting Standard 28 (AS-28) since the
project and its plant & machinery are one of the highly technologically
oriented project whose valuation or its capabilities and conditions are
technical subject, and in the absence of independent technical
evaluation and health check up of the Plant at present, one can not
determine losses if any, for making any provision for impairment of the
assets of the project or about its status as ongoing project.
4. Amount of Rs.61.93 lac (Rs.61.93 lac) payable to certain financer
on account of Equipments / Machineries acquired under the Hire Purchase
Agreement having lien on those equipment and machineries are included
in the creditors for capital assets who has agreed to assign to new
equipment Financier Akhil Marketing Pvt. Ltd., an Associated company
in terms of tripartie agreement.
5. Since commercial production has not commenced during the year, no
profit and loss account has been prepared. The necessary details as per
Part II of Schedule III of the Companies Act, 2013 have been disclosed
in Note No. 28 hereinafter. All the expenses incurred during the year
have been capitalized as per said Note 28.
6. Calls in arrears include unpaid Allotment Money related to
Debentures which have been converted into Equity Shares as per
7. Contingent Liabilities not provided for in the Accounts are as
follows
Ciaims against the Company not acknowledged as debt, excluding the
amount mentioned in Note No. 15 hereinabove, as certified by the
management, including matter under litigation as on 31st March, 2015
Rs.835.26 lacs (P.Y,Rs.835.26 lacs)
8. Income Tax Assessment of the company have been completed up to
Assessment Year 2010-11. There is no disputed demand outstanding and
payable as on date of Balance sheet.
9. The Company had received show cause notice in the year 2003-04
from the Government authorities for demand of duty on imported spares
kept beyond permissible time and still lying in Govt, approved Bonded
warehouse amounting to Rs.95.57 lacs. Company has responded to said
show cause notice and has also made provision accordingly, The matter
is still pending before the Govt, authorities,
10 (a) Company has filed appeal against the order of Commissioner of
Excise & Service Tax before CESAT Delhi for disallowing Cenvat credit
Rs. 127.95 lacs and levy of penalty of equal amount. Company has
received the stay order against above demand. The company is confident
that its appeal will be allowed, Accordingly. no provision has been made
in its accounts.
(b) Company has received another show cause notice during the earlier
year from the Excise authorities that why Cenvat Credit Rs. 217.60 lacs
along with interest and penalty should not be recovered from the
Company, Company has reversed the said modvats credit of Rs.217.60 lacs
under protest and has preferred appeal before the CESAT Delhi, got stay
order and is confident that the relief will be granted by the CESAT
Company has included such reversal of modvat credit ofRs.217.60 lacs in
earlier year2010-2011 in Capital work in progress.
Caseis still pending for hearing.
11. Fixed assets taken on lease amounting to Rs. 907,26 lac (Rs.907.26
lac) being lease value net of margin deposit and amount transferred to
Secured Loans as referred in Note No. 5F herein above. There is no
future obligations pertaining to lease rentals becoming due after the
date of Balance Sheet. Outstanding dues pertaining to lease rental
payable on the documented rates, excluding write off of creditors as
per note 28 (a) and late payment charges, are included in Other Long
Term Liabilities amounting to Rs. 291.63 lacs. Lease suppliers have
exclusive charge on the leased assets provided byt hemalong with other
as per Note No. 5.F hereinabove. No provision has been made by the
Company for any lease rental or for late payment charges on a bove a
rrears as the pi a nt is closed sinee 2000.
12. As there is no commercial operation or fresh purchases and there
are only old creditors, the company is not able to identify creditors
covered by Micro, small and medium Enterprises Development Act, 2006
and as such amount payable to them, if any, could not also be
ascertained.
13. As per Accounting Standard (AS-18) on "Related Party Disclosures"
the disclosure of transactions with related parties as defined therein
are given below.
a. During the year, company has written off credit balance of certain
disputed lease creditors on account of it being time barred, no more
payable as per legal advice received by the company amounting to Rs.
317.13 lacs and has been adjusted from the capital work in progress as
above.
b. During the year company has provided full additional depreciation
of Rs.228.26 lacs as required in terms of part c of schedule II of
Companies act 2013 based on the remaining useful life of assets,
14. In the opinion of the Board, Assets of the company excluding
Capital- work-in-progress whose no technical evaluation has been made
during the year, have a value on realization, at least equal to the
amount at which they are stated in the books of accounts and provision
for all known liabilities, except as mentioned otherwise, has been
made.
15. Commercial Tax authorities have levied penalty for (he year 2007-
2008 and 2008-2009 of Rs.1,62,528/- and Rs.3,61,540/- respeciively
regarding use of concession form on procurement of HSD taken / used.
Company has preferred appeal before the appellant authority for the
stay and waiver of the penalty. The appeal has been decided partially in
favour of company by by giving 50% relief. Now, company has filed
appeal before Tribunal for waiver balance amount of Penalty. Company
has however deposited the disputed amount under protest pending its
appeal before the Tribunal. The Matteris still pending for hearing.
16. Previous year figures have been regrouped, reworked, rearranged
and reclassified wherever necessary. Figures in brackets indicate the
corresponding figures for the previous year.
Mar 31, 2013
1 CORPORATE INFORMATION
SVC Superchem Ltd Âthe Company'' was incorporated in India on 29th
August''1989 and is implementing PTA project at its plant site at Chhata
Barsana Road, Chhata, Mathura(UP). Company''s plant under construction
has been under shut down condition since September, 2000 after
successfull trial run. Company has its registered office at Mumbai .
2 Most of lenders have approached DRT for recovery. However, certain
bankers and Financial Institutions have assigned their claims to
certain Asset reconstruction Company, Foreign bank and other Investment
Companies. Company has not replaced those lenders in its books of
accounts due to ongoing disputes. PICUP being one of the Secured
Creditors has issued notice for taking possession of assets of company,
however company has already got stay order from honourable Allahabad
High court against the PICUP notice of possession.
3 Due to non-servicing of debt and consequential debt
restructuring/OTS proposal and also due to pendency of DRT proceedings,
various Banks and institutions have not provided in their books of
accounts full Interest/Bank charges and therefore outstanding of such
Banks and Financial Institutions is un-reconciled. In view of various
Debt Restructuring proposals submitted earlier before the lenders and
now matters being pending before the Debt Recovery Tribunal and also
due to non commencement of commercial operation of the unit for more
than a decade causing non-servicing of its debt to the lenders, company
has not provided any interest since September'' 1999, aggregating to Rs.
5210.38 crores
(4293.10 crores) as on 31-03-2013 on this basis of original documented
rate. Neither interest is provided nor ascertained on the unpaid
amounts payable to creditors due to delay in project commissioning and
disputes with such parties.The interest at the documented rates not
provided by the company amounted to Rs. 917.28 crores(Rs. 770.38
crores) for the year ended on 31 st march 2013 on its secured
borrowings.
4 Company''s Plant under construction has been under shut down since
September, 2000 and with the passage of time, inspite of time to time
maintenance by the Company and in the absence of any operation since
then, the corrosion is taking place in the Plant due to climatic and
cyclonic conditions in the area. It is difficult to express the opinion
about the health of the Plant on going concern basis or about the
losses due to impairment of the assets of the Project, as required
under Accounting Standard 28 (AS-28), since the project and its plant &
machinery are one of the highly technologically oriented project whose
valuation or its capabilities and conditions are technical subject, and
in the absence of independent technical evaluation and health check up
of the Plant at present, one can not determine losses if any, for
making any provision for impairment of the assets of the project or
about its status as ongoing project.
5 Amount of Rs.61.93 lac (Rs.61.93 lac) payable to certain financer on
account of Equipments / Machineries acquired under the Hire Purchase
Agreement having lien on those equipment and machineries are included
in the creditors for capital assets and which has been assigned to
equipment Financier Akhil Marketing Pvt. Ltd., an Associated company.
6 Since commercial production has not commenced during the year, no
profit and loss account has been prepared. The necessary details as per
Part II of Schedule VI of the Companies Act, 1956 have been disclosed
in Note No. 28 hereinafter. All the expenses incurred during the year
have been capitalized as per said Note 28.
7 Calls in arrears include unpaid Allotment Money related to
Debentures which have been converted into Equity Shares as per the
terms of issue but in respect of which the Company, in exercise of its
lien on such shares, has not issued the share certificates to the
defaulting Debenture holders. The Company''s lien on such shares will
extend to the forfeiture of such shares if considered necessary by the
Company Board in due course of time.
8 Contingent Liabilities not provided for in the Accounts are as
follows :
(a) Claims against the Company not acknowledged as debt, excluding the
amount mentioned in Note No.15 hereinabove, as certified by the
management, including matter under litigation as on 31st March, 2013
Rs.835.26 lacs (P.Y.Rs.844.86 lacs)
9 Income Tax Assessment of the company have been completed up to
Assessment Year 2008-09. There is no disputed demand outstanding and
payable as on date of Balance sheet.
10 The Company had received show cause notice in the year 2003-04 from
the Government authorities for demand of duty on imported spares kept
beyond permissible time and still lying in Govt. approved Bonded
warehouse amounting to Rs.95.57 lacs. Company has responded to said
show cause notice and has also made provision accordingly. The matter
is still pending before the Govt. authorities.
11 (a) Excise Department has preferred Appeal before the CESAT Delhi
against the order of its Appellant Authorities favouring Company by
setting aside their demand notices issued against the Company earlier
regarding Cenvat Credit refusal of Rs.127.96 lacs by the assessing
authority. The appeals are still pending for hearing and Company is
confident that those departmental appeals will also be set aside. The
appropriate authority has remanded the order to lower authority.
(b) Company has received another show cause notice during the earlier
year from the Excise authorities that why Cenvat Credit Rs. 217.60 lacs
along with interest and penalty should not be recovered from the
Company. Company has reversed the said modvats credit of Rs.217.60 lacs
under protest and has preferred appeal before the CESAT Delhi, got stay
order and is confident that the relief will be granted by the CESAT.
Company has included such reversal of modvat credit of Rs.217.60 lacs
in earlier year 2010- 2011 in Capital work in progress. Case is still
pending for hearing.
12 Fixed assets taken on lease amounting to Rs. 907.26 lac (Rs.907.26
lac) being lease value net of margin deposit and amount transfered to
Secured Loans as referred in Note No. 5F herein above. There is no
future obligations pertaining to lease rentals becoming due after the
date of Balance Sheet. Outstanding dues pertaining to lease rental
payable on the documented rates, excluding late payment charges, are
included in Other Long Term Liabilities amounting to Rs. 291.63 lacs
(Rs. 291.63 lacs) who have exclusive charge on the said leased assets
along with other as per Note No. 5.F hereinabove. No provision has been
made by the Company for any lease rental or for late payment charges on
above arrears as the plant is closed since 2000.
13 As there is no commercial operation or fresh purchases and there are
only old creditors, the company is not able to identify creditors
covered by Micro, small and medium Enterprises Development Act, 2006
and as such amount payable to them, if any, could not also be
ascertained.
14 Pre-operative expenses subject to Note No.15 and 25 hereinabove in
respect of ongoing project up to 31st March, 2013 are included under
the head Capital Work-in-
15 During the year the Company has received credit rebates and raised
Debit Notes on certain suppliers / contractors / creditors on account
of settlement of their claims on OTS basis / deficiency in the quality
of material supplied / work executed by them in earlier years amounting
to Rs. 17.00 lacs (Rs. 42.84 lacs). The above has been adjusted from
the Capital work-in- progress.
16 In the opinion of the Board, Assets of the company excluding
Capital-work-Progress have a value on realization, at least equal to
the amount at which they are stated in the books of accounts and
provision for all known liabilities, except as mentioned otherwise, has
been made.
17 Commercial Tax authorities have levied penalty for the year
2007-2008 and 2008-2009 of Rs.1,62,528/- and Rs.3,61,540/- respectively
regarding use of concession form on procurement of HSD taken / used.
Company has preferred appeal before the appellant authority for the
stay and waiver of the penalty. The appeal has been decided partialy in
favour of company by giving 50% relief. Now, company has filed appeal
before Tribunal for waiver balance amount of Penalty. Company has
however deposited the disputed amount under protest pending its appeal
before the Tribunal.
18 Previous year figures have been regrouped, reworked, rearranged and
reclassified wherever necessary. Figures in brackets indicate the
corresponding figures for the previous year.
Mar 31, 2012
1. CORPORATE INFORMATION
SVC Superchem Ltd Ãthe Companyà was incorporated in India on 29th
August, 1989 and is implementing PTA project at its plant site at
chhata Barsana Road, Chhata, Mathura (UP). Company's plant under
construction has been under shut down condition since September, 2000
after successful trial run. Company has its registered office at
Mumbai.
* The above borrowings include :
(a) Non-Convertible Debentures of Rs. 10185.63 lacs which were
redeemable at par in one or more installments on various dates with
redemptions commencing from February, 1999 being the earliest
redemption and October, 2007 being the last redemption date. All the
above Non-Convertible Debentures have become overdue.
(b) The Working Capital loan from banks including amount of Letter of
Credits devolved (net of margin money provided against such devolved
Letter of Credit) amounting to Rs. 7167.88 lacs (Rs. 7175.19 lacs) are
secured / to be secured by way of hypothecation of present and future
inventories, books debts and other movable assets of the company and
second and subsequent charges on the immovable properties of the
Company excluding assets specifically charged to others and is further
secured by way of personal guarantee of Promoter Director. Demand Loan
against Modvat receivables amounting to Rs. 1935.72 lacs (Rs. 1935.72
lacs) are secured / to be secured by way of hypothecation of Modvat
receivables of the company and second and subsequent charge on the
immovable properties of the company excluding assets specifically
charged to others and is further secured by personal guarantee of
Promoter Director.
(c) Term Loan from Financial Institutions to the extent of Rs. 12329.65
lacs (Rs. 12329.65 lacs) are secured / to be secured by way of
Equitable Mortgage created on immovable properties situated at Chhata,
District. Mathura in the State of Uttar Pradesh and are further secured
by way of hypothecation of movable properties of the Company both
present and future (other than current assets and specific assets
charged to others) ranking on a pari-pasu basis which is further
secured by personal guarantee of a Promoter Director and (ii) Rs.
2512.92 lacs (Rs. 2,512.92 lacs) from a Financial Institution under its
Bill Discounting Scheme are secured by exclusive charge by way of
hypothecation of specific items of machinery purchased under this
scheme and guarantee of two corporate bodies.
(d) Non-Convertible Debentures amounting to Rs. 10185.63 lacs (Rs.
10185.63 lacs) are secured / to be secured by way of first charge (i)
by Legal Mortgage on immovable property situated at Palas, District
Roha, in the state of Maharashtra (ii) extension of first charge by
equitable mortgage ranking pari-pasu on immovable properties situated
at Chhata, District. Mathura in the state of Uttar Pradesh. They are
further secured on all the movable assets of the Company both present
and future (excluding current assets and specific assets charged to
others) ranking on a pari-pasu first charge basis with others and are
also further secured by personal guarantee of a Promoter Director.
(e) Term Loan from Banks amounting to Rs. 16409.64 lacs (Rs.
16,409.64lacs) including the loan representing devolved amount of DPG
given against long term foreign currency loan) are secured / to be
secured by way of Equitable Mortgage of immovable properties situated
at Chhata, District. Mathura in the state of Uttar Pradesh and are
further secured by way of hypothecation of the movable properties of
the Company both present and future (other than current assets and
specific assets charged to others) ranking on a pari pasu basis which
are further secured by a personal guarantee of a Promoter Director.
Further loans amounting to Rs. 207.14 lacs (Rs. 207.14 lacs) is
exclusively secured by way of hypothecation of the specific fixed
assets of the company and are further secured by a personal guarantee
of a promoter director.
(f) Advance given by a Financial Institutions of Rs. 407.90 lacs to
Equipment Vendor for the supply of specific Plants at CompanyÃs site
and to be leased on commissioning along with arrear of lease rental up
to March 2001 provided by Company amounting to Rs. 122.69 lacs are
included in the capital work in progress. The above outstanding is
included in the Term Loan in view of earlier CDR proposal and based on
in-principle confirmation from the said Financial Institution received
earlier for converting the above lease finance into term loan as per
the then restructuring scheme.
(g) In view of disputes with Bankers and Lenders and also due to
Non-commencement of commercial Production, Company has defaulted on all
the above mentioned borrowings which were recalled and become subject
matter of recovery at various Debt Recovery Tribunals and no payment
has been made against the above over dues. Interest accrued and due on
company amounting to Rs. 5971.53 lacs (Rs. 5971.53 lacs) on the above
mentioned borrowings provided in the Books of accounts by the Company
upto September,1999 together with further interest thereon and not
provided by the Company since then where company has defaulted and
which remain unpaid is treated as Long Term liabilities pending final
settlement with lenders, read with Note No. 15 is secured ranking on a
pari-pasu basis with respective Secured loans.
(h) The Promoter Director of the Company, his family members and
investment companies, have also pledged Rs. 228.32 lac shares owned by
them to Banks and
2. Most of lenders have approached DRT for recovery. However, certain
bankers and Financial Institutions have assigned their claims to
certain Asset reconstruction Company, Foreign bank and other Investment
Companies. Company has not replaced those lenders in its books of
accounts due to ongoing disputes. PICUP being one of the Secured
Creditors has issued notice for taking possession of assets of company,
however company has already got stay order from honourable Allahabad
High court against the PICUP notice of possession.
3. Due to non-servicing of debt and consequential debt
restructuring/OTS proposal and also due to pendency of DRT proceedings,
various Banks and institutions have not provided in their books of
accounts full Interest/Bank charges and therefore outstanding of such
Banks and Financial Institutions is un-reconciled. In view of various
Debt Restructuring proposals submitted earlier before the lenders and
now matters being pending before the Debt Recovery Tribunal and also
due to non commencement of commercial operation of the unit for more
than a decade causing non-servicing of its debt to the lenders, company
has not provided any interest since September' 1999, aggregating to Rs.
4293.10 crores (3522.71 crores) as on 31-03-2012 on this basis of
original documented rate. Neither interest is provided nor ascertained
on the unpaid amounts payable to creditors due to delay in project
commissioning and disputes with such parties.The interest at the
documented rates not provided by the company amounted to Rs. 770.38
crores ( Rs. 647.21 crores) for the year ended on 31st March, 2012 on
its secured borrowings.
4. Company's Plant under construction has been under shut down since
September, 2000 and with the passage of time, inspite of time to time
maintenance by the Company and in the absence of any operation since
then, the corrosion is taking place in the Plant due to climatic and
cyclonic conditions in the area. It is difficult to express the opinion
about the health of the Plant on going concern basis or about the
losses due to impairment of the assets of the Project, as required
under Accounting Standard 28 (AS-28), since the project and its plant &
machinery are one of the highly technologically oriented project whose
valuation or its capabilities and conditions are technical subject, and
in the absence of independent technical evaluation and health check up
of the Plant at present, one can not determine losses if any, for
making any provision for impairment of the assets of the project or
about its status as ongoing project.
5. Amount of Rs. 61.93 lac (Rs. 61.93 lac) payable to certain financier
on account of Equipments / Machineries acquired under the Hire Purchase
Agreement having lien on those equipment and machineries are included
in the creditors for capital assets and which has been assigned to
equipment Financier Akhil Marketing Pvt. Ltd., an Associated company.
6. Since commercial production has not commenced during the year, no
profit and loss account has been prepared. The necessary details as per
Part II of Schedule VI of the Companies Act, 1956 have been disclosed
in Note No. 28 hereinafter. All the expenses incurred during the year
have been capitalized as per said Note 28.
7. Calls in arrears include unpaid Allotment Money related to
Debentures which have been converted into Equity Shares as per the
terms of issue but in respect of which the Company, in exercise of its
lien on such shares, has not issued the share certificates to the
defaulting Debenture holders. The Company's lien on such shares will
extend to the forfeiture of such shares if considered necessary by the
Company.
8. Contingent Liabilities not provided for in the Accounts are as
follows :
(a) Claims against the Company not acknowledged as debt as certified by
the management, including matter under litigation as on 31st March,
2012 Rs. 844.86 lacs (P.Y.Rs. 862.84 lacs)
(b) Un-provided aggregate Interest is un-ascertainable due to various
Debt restructuring proposals as per Note No15 hereinafter and matter
being un-reconciled and sub- judice due to arbitrary assignment of
debts by certain lenders as per Note No. 14 and 15 herein above.
9. Income Tax Assessment of the company have been completed up to
Assessment Year 2008-09. There is no disputed demand outstanding and
payable as on date of Balance sheet.
10. The Company had received show cause notice in the year 2003-04 from
the Government authorities for demand of duty on imported spares kept
beyond permissible time and still lying in Govt. approved Bonded
warehouse amounting to Rs. 95.57 lacs. Company has responded to said
show cause notice and has also made provision accordingly. The matter
is still pending before the Govt. authorities.
11. (a) Excise Department has preferred Appeal before the CESAT Delhi
against the order of its Appellant Authorities favouring Company by
setting aside their demand notices issued against the Company earlier
regarding Cenvat Credit refusal of Rs. 141.93 lacs by the assessing
authority. The appeals are still pending for hearing and Company is
confident that those departmental appeals will also be set aside.
(b) Company has received another show cause notice during the earlier
year from the Excise authorities that why Cenvat Credit Rs. 217.60
lacs along with interest and penalty should not be recovered from the
Company. Company has reversed the said modvats credit of Rs. 217.60
lacs under protest and has preferred appeal before the CESAT Delhi, got
stay order and is confident that the relief will be granted by the
CESAT. Company has included such reversal of modvat credit of Rs.
217.60 lacs in Capital work in progress.
12. Fixed assets taken on lease amounting to Rs. 907.26 lac (Rs. 907.26
lac) being lease value net of margin deposit and amount transfered to
Secured Loans as referred in Note No. 5F herein above. There is no
future obligations pertaining to lease rentals becoming due after the
date of Balance Sheet. Outstanding dues pertaining to lease rental
payable on the documented rates, excluding late payment charges, are
included in Other Long Term Liabilities amounting to Rs. 291.63 lacs
(Rs. 291.63 lacs) who have exclusive charge on the said leased assets
along with other as per Note No. 5.F herein above. No provision has
been made by the Company for any lease rental or for late payment
charges on above arrears as the plant is closed since 2000.
13. As there is no commercial operation or fresh purchases and there are
only old creditors, the company is not able to identify creditors
covered by Micro, small and medium Enterprises Development Act, 2006
and as such amount payable to them, if any, could not also be
ascertained.
14. As per Accounting Standard (AS-18) on ÃRelated Party DisclosuresÃ
the disclosure of transactions with related parties as defined therein
are given below
(A) List of related party with whom transactions have taken place and
relationship :-
Associate Companies
(I) SVC Growth Fund Pvt. Ltd.
(II) Krishna Suppliers Pvt. Ltd.
(III) Krishna Advisors Pvt. Ltd.
(IV) Akhil Marketing Pvt. Ltd.
Key Management Personnel
(I) *G. S. Tiwari
(II) Jaffar Imam
(B) Transaction during the Accounting year with related parties
15. Pre-operative expenses subject to Note No.15 and 25 hereinabove in
respect of ongoing project up to 31st March, 2012 are included under
the head Capital Work-in- Progress.
16. During the year the Company has received credit rebates and raised
Debit Notes on certain suppliers / contractors / creditors on account
of settlement of their claims on OTS basis / deficiency in the quality
of material supplied / work executed by them in earlier years amounting
to Rs. 42.84 lacs (Rs. 23.62 lacs). The above has been reduced from the
Capital work-in- progress.
17. In the opinion of the Board, Assets of the company excluding
Capital-work-Progress have a value on realization, at least equal to
the amount at which they are stated in the books of accounts and
provision for all known liabilities, except as mentioned otherwise, has
been made.
18. Commercial Tax authorities have levied penalty for the year
2007-2008 and 2008-2009 of Rs. 1,62,528/- and Rs. 3,61,540/-
respectively regarding use of concession form on procurement of HSD
taken / used. Company has preferred appeal before the appellant
authority for the stay and waiver of the penalty. The appeal has been
decided partially in favour of company by by giving 50% relief. Now,
company has decided to file further appeal before Tribunal for balance
amount of Penalty. Company has however deposited the disputed amount
under protest pending its appeal before the Tribunal.
19 Previous year figures have been regrouped, reworked, rearranged and
reclassified wherever necessary. Figures in brackets indicate the
corresponding figures for the previous year.
Mar 31, 2010
A. OTHER NOTES: 1. Secured loans include :-
a. Non-Convertible Debentures of Rs. 10185.63 lacs which were
redeemable at par in one or more installments on various dates with
redemptions commencing from February, 1999 being the earliest
redemption and October, 2007 being the last redemption date. All the
above Non-Convertible Debentures have become overdue.
b) The Working Capital loan from banks including amount of Letter of
Credits devolved (net of margin money provided against such devolved
Letter of Credit) amounting to Rs. 7180.16 lacs (Rs.7185.48 lacs) are
secured / to be secured by way of hypothecation of present and future
inventories, books debts and other movable assets of the company and
second and subsequent charges on the immovable properties of the
Company excluding assets specifically charged to others and is further
secured by way of personal guarantee of Promoter Director. Demand Loan
against Modvat receivables amounting to Rs.1935.72 lacs (Rs.1935.72
lacs) are secured /to be secured by way of hypothecation of Modvat
receivables of the company and second and subsequent charge on the
immovable properties of the company excluding assets specifically
charged to others and is further secured by personal guarantee of
Promoter Director.
c. (i) Term Loan from Financial Institutions to the extent of Rs.
12329.64 lacs (Rs. 12329.64 lacs) are secured / to be secured by way of
Equitable Mortgage created on immovable properties situated at Chhata,
District. Mathura in the State of Uttar Pradesh and are further
secured by way of hypothecation of movable properties of the Company
both present and future (other than current assets and specific assets
charged to others) ranking on a pari-pasu basis which is further
secured by personal guarantee of a Promoter Director and (ii) Rs.
2512.92 lacs (Rs.2,512.92 lacs) from a Financial Institution under its
Bill Discounting Scheme are secured by exclusive charge by way of
hypothecation of specific items of machinery purchased under this
scheme and guarantee of two corporate bodies.
d. Non-Convertible Debentures amounting to Rs.10185.63 lacs
(Rs.10185.63 lacs) are secured / to be secured by way of first charge
(i) by Legal Mortgage on immovable property situated at Palas, District
Roha, in the state of Maharashtra (ii) extension of first charge by
equitable mortgage ranking pari-pasu on immovable properties situated
at Chhata, District. Mathura in the state of Uttar Pradesh. They are
further secured on all the movable asssets of the Company both present
and future (excluding current assets and specific assets charged to
others) ranking on a pari-pasu first charge basis with others and are
also further secured by personal guarantee of a Promoter Director.
e. Term Loan from Banks amounting to Rs.16409.64 lacs (Rs. 16,409.64
lacs) (including the loan representing devolved amount of DPG given
against long term foreign currency loan) are secured / to be secured by
way of Equitable Mortgage of immovable properties situated at Chhata,
District. Mathura in the state of Uttar Pradesh and are further secured
by way of hypothecation of the movable properties of the Company both
present and future (other than current assets and specific assets
charged to others) ranking on a pari pasu basis which are further
secured by a personal guarantee of a Promoter Director. Further loans
amounting to Rs. 207.14 lacs (Rs.207.14 lacs) is exclusively secured by
way of hypothecation of the specific fixed assets of the company and
are further secured by a personal guarantee of a promoter director.
f. Advance given by a Financial Institutions of Rs.407.90 lacs to
Equipment Vendor for the supply of specific Plants at Companys site
and to be leased on commissioning along with arrear of lease rental up
to March 2001 provided by Company amounting to Rs. 122.69 lacs are
included in the capital work in progress. The above outstanding is
included in the Term Loan in view of earlier CDR proposal and based on
in principle confirmation from the said Financial Institution received
earlier for converting the above lease finance into term loan as per
then restructuring scheme.
g. Interest accrued and due amounting to Rs. 5971.53 lacs (Rs.5971.53
lacs) on all the above borrowings provided in the Books of accounts by
the Company upto September, 1999 together with further interest thereon
and not provided by the Company since then read with Note No.B-16, is
secured ranking on a pari- pasu basis with respective Secured loans.
h. The Promoter Director of the Company, his family members and
investment companies, have also pledged Rs. 228.32 lac shares owned by
them to Banks and Financial Institutions as collateral security.
2. Most of lenders have approached DRT for recovery. However, certain
bankers and Financial Institutions have assigned their claims to
certain Asset reconstruction Company, Foreign bank and other Investment
Companies. Company has not replaced those lenders in its books of
accounts due to ongoing disputes. Bombay High Court has allowed ASREC
to take appropriate action under securitization act. PICUP being one of
the Secured Creditors has issued notice for taking possession of assets
of company however company has got stay order from honourable Allahabad
High court against the PICUP notice of possession.
3. Due to non-servicing of debt and consequential debt
restructuring/OTS proposal and also due to pendency of DRT proceedings,
various Banks and institutions have not provided in their books of
accounts full Interest/Bank charges and therefore outstanding of such
Banks and Financial Institutions is un-reconciled. Neither Interest is
provided nor ascertained on the unpaid amounts payable to creditors due
to delay in project commissioning and disputes with such parties.
3. Companys Plant under construction has been under shut down since
September, 2000 and with the passage of time, inspite of time to time
maintenance by the Company and in the absence of any operation since
then, the corrosion is taking place in the Plant due to climatic and
cyclonic conditions in the area. It is difficult to express the opinion
about the health of the Plant on going concern basis or about the
losses due to impairment of the assets of the Project, as required
under Accounting Standard 28 (AS- 28), since the project and its plant
& machinery are one of the highly technologically oriented projects
whose valuation or its capabilities and conditions are technical
subject, and in the absence of independent technical evaluation and
health check up of the Plant at present, one can not determine losses
if any, for making any provision for impairment of the assets of the
project or about its status as ongoing project.
4. Amount of Rs.61.93 lac (Rs.61.93 lac) payable to certain financer
on account of Equipments / Machineries acquired under the Hire Purchase
Agreement having lien on those equipment and machineries are included
in the creditors for capital assets.
5. Since commercial production has not commenced during the year, no
profit and loss account has been prepared. The necessary details as
per Part II of Schedule VI of the Companies Act, 1956 have been
disclosed in Note No.B-18 hereinafter. All the expenses incurred during
the year have been capitalized as per said Note B-18.
6. Calls in arrears include unpaid Allotment Money related to
Debentures which have been converted into Equity Shares as per the
terms of issue but in respect of which the Company, in exercise of its
lien on such shares, has not issued the share certificates to the
defaulting Debenture holders. The Companys lien on such shares will
extend to the forfeiture of such shares if considered necessary by the
Company.
7. Contingent Liabilities not provided for in the Accounts are as
follows :
a) Claims against the Company not acknowledged as debt as certified by
the management including matter under litigation as on 31st March, 2010
Rs. 872.11 lacs (P.Y.Rs.1042.48 lacs).
b) Un-provided aggregate Interest is un-ascertainable due to various
Debt restructuring proposals as per Note No.B-16 hereinafter and matter
being un- reconciled and sub-judice due to arbitrary assignment of
debts by certain lenders as per Note No. B-2 and B-3 hereinabove.
8. Income Tax Assessment of the company have been completed up to
Assessment Year 2007-2008. There is no disputed demand outstanding and
payable. During the year company has received refund of Income Tax
along with interest for the assessment year 1993-1994 of Rs. 52.49
lacs.
9. The Company had received show cause notice in the year 2003-04
from the Government authorities for demand of duty on imported spares
kept beyond permissible time and still lying in Govt, approved Bonded
warehouse amounting to Rs.95-57 lacs. Company has responded to said
show cause notice and has also made provision of Rs. 69.11 lacs for the
above show cause liability net of CVD credit. The matter is still
pending.
10. Excise Department has preferred Appeal before the CESAT Delhi
against the order of its Appellant Authorities favouring Company by
setting aside their demand notices issued against the Company earlier
regarding Cenvat Credit refusal of Rs.141.93 lacs by the assessing
authority. The appeals are still pending for hearing and Company is
confident that those departmental appeals will also be set aside.
Company has received another show cause notice during the year from the
Excise authorities that why Cenvat Credit Rs. 217.60 lacs alongwith
interest and penalty should not be recovered from the Company. Company
has filed reply seeking relief under the Central Excise Act. The
company is confident that the relief will be granted by the department.
The matter is pending before the authorities.
11. Fixed assets taken on lease amounting to Rs.907.26 lac (Rs.907.26
lac) being lease value net of margin deposit. There is no future
obligations pertaining to lease rentals becoming due after the date of
Balance Sheet. Outstanding dues pertaining to lease rental payable on
the documented rates, excluding late payment charges, are included in
sundry creditors amounting to Rs.608.76 lacs {Rs. 608.76 lacs) who have
exclusive charge on the said leased assets along with other as per Note
No.B-1-f hereinabove. No provision has been made by the Company for any
lease rental or for late payment charges on above arrears as the plant
is closed since 2000.
12. As there is no commercial operation or fresh purchases and there
are only old creditors, the company is not able to identify creditors
covered by Micro, small and medium Enterprises Development Act, 2006
and as such amount payable to them, if any, could not also be
ascertained.
13. In view of the various Debt Re-structuring proposals submitted
earlier before the lenders and now matter being pending before the Debt
Recovery Tribunal and also due to non- commencement of commercial
operation of the unit for almost a decade causing non-servicing of its
debt to the lender, company has not provided any interest since
September, 1999. The Interest at the documented rates not provided by
the Company amounted to Rs. 543.93 crores (Rs.457.29 crores) for the
year ended on 3rMarch, 2010 on its secured borrowings.
14. As per Accounting Standard (AS-18) on "Related Party Disclosures"
the disclosure of transactions with related parties as defined therein
are given below:
A List of related party with whom transactions have taken place and
relationship :-
Associate Companies
I. SVC Growth Fund Pvt. Ltd.
II. Krishna Suppliers Pvt. Ltd.
III. Krishna Advisors Pvt. Ltd.
IV. Akhil Marketing Pvt. Ltd.
Key Management Personnel
I. Shri G. S. Tiwari
II. Shri Jaffar Iman
15. Pre-operative expenses subject to Note No.B-14 and fi- le
hereinabove in respect of ongoing project up to 31st March 2010 are
included under the head Capital Work-in- Progress :-
16. During the year the Company has received credit rebates and raised
Debit Notes on certain suppliers / contractors / creditors on account
of settlement of their claims on OTS basis / deficiency in the quality
of material supplied / work executed by them in earlier years amounting
to Rs. 570.28 lacs (Rs. 84.12 lacs). The above has been reduced from
the Capital work-in- progress.
17. In the opinion of the Board, Current Assets, Loans and Advances
and other receivable excluding Fixed Assets and Capital-work-Progress
have a value on realization, at least equal to the amount at which they
are stated in the books of accounts and provision for all known
liabilities, except as mentioned otherwise, has been made.
18. Previous year figures have been regrouped, reworked, rearranged and
reclassified wherever necessary. Figures in brackets indicate the
corresponding figures for the previous year.