Mar 31, 2014
Note No. 1
Terms / Rights attached to Equity Shares:
The Company has only one class of Equity Shares having a par value of
Rs.10 per share. Each holder of Equity Shares is entitled to one Vote
per share. The Dividend is subject to the aprpoval of the share holdes
in the ensuing Annual General Meeting.
Note No. 2
Foreign Exchange Transactions:
During the year the Company has not dealt with foreign exchange
transactions.
Note No. 3
As the networth of the company has been eroded Reference as per
provisions of Sick Industrial Com panles (Special Provisions) Act, 1985
(1 of 1986) was made to the Hon''ble BIFR on 28.05.2001 and the Company
was declared as Sick Industrial Company by the Hon''ble BIFR on
06.05.2003. The BIFR has appointed M/s Punjab National Bank as
Operating Agency to prepare rehabilitation scheme. The dues payable to
Punjab National Bank were settled during 2007 under OTS Scheme and that
of TIIC In 2011
While the Company is pursuing steps to settle alt dues, due to action
under SARFAES Act by TIIC & the BIFR by its order dated 22.04.2010
abated the proceedings-of Sick Industrial Company. The appeal by the
company against above order before AAIFR has been disallowed; The High
Court has also declined to quash the order of BIFR. The company has
also settled dues of SIPCOT, IFST and all other creditors.
SETTLEMENT OF DUES:
The Company has settled, under One Time Settlement (OTS), dues of
Punjab National Bank, TIIC, SIPCOT, IFST and all remaining creditors.
For this purpose, company has borrowed from its Associate Company M/s.
Savorit Limited and its Managing Director. The Company. has paid
Rs.241.02 Lakhs towards interest on the above loans
GUARANTEE IN FAVOUR OF ASSOCIATE COMPANY:
M/s Savorit Limited has borrowed from M/s Indian Bank, MGT Branch,
Chennai and inturn advanced the amount (balance as on 31.03.2014
Rs. 1047.56 lakhs) to our Company. For this purpose our Company has
given its Land and Building as Security and further extended Corporate
Guarantee.
Note No. 4
In the opinion of the Board the Current Assets, such as Short Term
Loans and Advances are shown at realisable value.
Note No. 5
Previous byear''s Figure have been regrouped reclassified wherever
necessary to correspond with the current Year''s figure.
Mar 31, 2013
Note No. 1
Foreign Exchange Transactions:
During the year the Company has not dealt with foreign exchange
transactions.
Note No. 2
As the networth of the company has been eroded, a reference as per
provisions of Sick Industrial Companies (Special Provisions) Act, 1985
(1 of 1986) was made to the Hon''ble BIFR on 28.05.2001 and the Company
was declared as Sick Industrial Company by the Hon''ble BIFR on
06.05.2003. The BIFR has appointed M/s Punjab National Bank as
Operating Agency to prepare rehabilitation scheme. The dues payable to
Punjab National Bank were settled during 2007 under OTS Scheme and that
of TIIC in 2011.
While the Company is pursuing steps to settle all dues, due to action
under SARFAESI Act by TIIC & SIPCOT, the BIFR by Its order dated
22.04.2010 abated the proceedings-of Sick Industrial Company. The
appeal by the company against above order before AAIFR has been
disallowed. The High Court has also declined to quash the order of BIFR
but liberty is granted to approach the AAIFR by way of appropriate
application stating subsequent developments. The company has also
settled dues of SIPCOT, IFST and all other creditors. SETTLEMENT OF
DUES:
The Company has settled, under One Time Settlement (OTS), dues of
Punjab National Bank & TIIC in earlier years and this year dues of
SIPCOT, IFST and all remaining creditors have been settled. For this
purpose, company has borrowed from its holding company M/s. SAVORIT
LTD., and its Managing Director.
WAIVER OF INTEREST AND OTHER INCOME:
During the year, the company has settled SIPCOT dues and has received
no dues certificate dated 22.5.2012. This settlement has resulted in
waiver of interest to, the extent of 21.52 Crores out of total interest
of Rs.25.86 provided so far. This amount of Rs.21.52 CTores has been
credited to Statement"of Profit and Loss under other income.
Note No. 3
PROVISION FOR TAXATION:
Solely due to interest of Rs. 21.52 Crores on SIPCOT Loan settlement.
In the opinion of Company, this is not a regular profit attracting
provisions of Income Tax as well as Section 115 J B. Moreover interest
charged in earlier has been continuously disallowed under 43B of I.T.
Act, as it is mere provision and not actually paid. Also the Company is
declared as Sick Industrial Company by BIFR on 6.5.2003, which though
abated subsequently, the Company is hopeful of its restoration of BIFR
status. Considering all the facts the Company is hopeful that the same
is to be execluded U/S. 115 JB of IT. Act, and there may not be any tax
liability hence no provision has been made.
Note No. 4
DISPOSAL OF PLANT AND MACHINERY
The company has stopped all operation in the Plant since October 2007.
The Company sees no viability in running Spinning Mill. Also the
company incurring power and over heads. Hence, in order to save costs
the company has dismantled the Plant and Machinery and sold the same
and the Profit on sale of Rs.7.28 Lakhs included in other income.
Note No. 5
Some of the balances of Short Term Loans and Advances are subject to
confirmation.
Note No. 6
In the opinion of the Board the Current Assets, Non-Current Assets,
such as Long Term Loans and Advances, are shown at realisable value.
The Company has unabsorbed depreciation and carryforward losses under
Income Tax Act, 1961 avail- able to be setoff against future taxable
Income. In the absence of virtual certainty of sufficient future
taxable Income to avail the said credit, deferred tax Assets are not
recognised during the year.
Note No. 7
Previous Year''s Figure have been regrouped / reclassified wherever
necessary to correspond with the current year''s figure.
Mar 31, 2012
I. Foreign Exchange Transactions:
During the year the Company has not dealt with foreign exchange
transactions.
II. As the networth of the Company has been eroded, a reference as
per provisions of Sick Industrial Companies (Special provisions) Act,
1985(1 of 1986) was made to the Hon''nble BIFR on 28.05.2001 and the
company was declared as Sick Industrial Company by the Hon''ble BIFR on
06.05.2003. Consequent on the Power Supply disconnection by TNEB on
03.11.2007 the Mill is not functioning.
III. In the absence of taxable income, no provision for Income Tax has
been made.
IV. Some of the balances of Short Term Loans and Advances and Trade
Payables are subject to confirmation.
V. In the opinion of the Board the Current Assets, Non-Current
Assets, such as Long Term Loans and Advances, Inventory are shown at
realisable value.
IV. Expenditure in Foreign Currency
VII. SECURED LOANS:
Term Loan from M/s SIPCOT is secured by mortgage of Fixed Assets
present and future of the Company on paripassu basis and floating
charge on Current Assets. They are also guaranteed by the Chairman-cum-
Managing Director.
The Status of Loan is as follows;
a) Term Loan with M/s SIPCOT
The Company has paid Rupees Two Crores and Four lakhs as upfront
payment and pursuing with M/s State Industries Promotion Corporation of
Tamilnadu Limited for OTS.
VIII. The revised schedule VI notified under Companies Act, 1956 has
become applicable to the company. The Company has reclassified previous
year figures to confirm to this year classification.
Mar 31, 2011
1. Estimated amount of contracts remaining to be executed on Capital
Accounts not provided for
2. Secured Loans:
Term loan from M/s.SIPCOT is secured by mortgage of fixed assets
present and future of the Company on paripassu basis and floating
charge on current assets. They are also guaranteed by the Chairman-
Cum-Managing Director.
The Status of Loan is as follows:
a) Term Loan with M/s.TIIC:
The Company has entered into One time Settlement (OTS) Scheme with M/s.
The Tamilnadu Industrial Investment Corporation Limited and loan has
been fully settled and a sum of Rs.96.16 lakhs being amount waived has
been taken to Profit and Loss account.
b) Term Loan with M/s.SIPCOT:
The Company has paid Rupees Twenty Seven lacs as upfront payment and
pursuing with M/s. State Industries Promotion Corporation of Tamilnadu
Limited for OTS.
3. As the net worth of the Company has been eroded, a reference as per
provisons of Sick Industrial Compa- nies (Special Provisions) Act, 1985
(1 of 1986) was made to the Hon''ble BIFR on 28.05.2001 and the Company
was declared as Sick Industrial Company by the Hon''ble BIFR on
06.05.03. Consequent on the Power Supply disconnection by TNEB on
03.11.2007 the mill is not functioning.
4. In the absence of taxable income, no provision for income tax has
been made.
5. Some of the balances of Sundry Creditors and Other Advances are
subject to confirmation.
6. In the opinion of the Board the Current Assets, such as
Stock-in-Trade & Loans and advances are shown at realisable value.
7. As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
8. Percentage of Raw Material Consumed Indigenous
9. Percentage of Spares parts & Components consumed (including
machinery maintenance)
10. Previous Year''s Figures have been regrouped where ever necessary.
11. The company has unabsorbed Depreciation and carry forward Losses
under Income Tax Act, 1961 available to setoff against future taxable
income. In the absence of virtual certainty of sufficient future
taxable income to avail the said credit. Deferred tax Assets are not
recognised during the year.
Mar 31, 2010
1. Secured Loans:
Term loans from (a) M/s.TIIC & (b) M/s.SIPCOT- They are secured by
mortgage of fixed assets present and future of the Company on paripassu
basis and floating charge on current assets. They are also guaranteed
by the Chairman-Cum-Managing Director.
The Status of Loans are as follows.
a) Term Loan with M/s.THC:
The Company has entered into OTS on 23.03.2007 for payment of Rs.270
lacs. The company paid Rs.54 lacs and could not pay the balance OTS
amount. During the year, interest of Rs.25.92 lacs has been provided on
OTS amount. Meanwhile M/s. TIIC has taken pocession of mill on
10.02.2010 under SARFAESI Act. The Company is renegotiating for revival
of OTS Scheme and to take back pocession of the mill.
b) Term Loan with M/s.SIPCOT:
The Company is yet to arrive at OTS with M/s.SIPCOT. Amount of interest
has been provided on accumulated Principal of Rs.300 lacs and funded
interest.
2. Contingent Liabilities not provided for
P.F. Due: The Provident Fund Authorities vide their letter dt. 12.02.98
have intimated that the provisions of the Provident fund Act are
applicable to the Company with effect from 22.09.97.But the Company has
disputed the same in Madras High Court. As a matter of caution the
Company has made a provision of Rs 2.95 Lakhs towards P.F. Payable, in
earlier years. However, with effect from 5th July 1999, the Company has
complied with the provisions of the said Act.
3. The company has won the case with TNEB and got refund of deposit
made by the company against Tariff Concession and also interest on the
same. An amount of Rs 29.08 lakhs of interest received is included in
other income.
4. As the net worth of the Company has been eroded, a reference as per
provisons of Sick Industrial Companies (Special Provisions) Act, 1985
(1 of 1986) was made to the HonbleBIFR on 28.05.2001 and the Company
was declared as Sick Industrial Company by the Honble BIFR on
06.05.03. Consequent on the Power Supply disconnection by TNEB on
03.11.2007 the mill is not functioning.
5. In the absence of taxable income, no provision for income tax has
been made.
6. Some of the balances of Sundry Creditors and Other Advances are
subject to confirmation.
7. In the opinion of the Board the Current Assets, such as
Stock-in-Trade, Sundry Debtors & Loans and advances are shown at
realisable value.
8. As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
9. Raw Material Consumed Cotton
10. Previous Years Figures have been regrouped where ever necessary.
11(A)Related Parties:
Sl.No Party Relationship
1.1) Savorit Limited Associate Enterprise
2) Savorit Food Industries Limited -do-
3) Savorit Oils Limited -do-
II. a) Sri K.S. Venugopala,
Chairman cum
Managing Director Key managerial personal
b) Sri R. Vijaykumar, Director -do-
c) Sri K.Alagiriswami, Director -do-
12. The company has unabsorbed Depreciation and carryforward Losses
under Income Tax Act, 1961 available to setoff against future taxable
income. In the absence of virtual certainty of sufficient future
taxable income to avail the said credit.deferred tax Assets are not
recognised during the year.
Mar 31, 2009
1. Secured Loans:
Term loans from (a) M/s.TIIC & (b) M/s.SIPCOT- They are secured by
mortgage of fixed assets present and future of the Company on paripassu
basis and floating charge on current assets. They are also guaranteed
by the Chairman-Cum-Managing Director.
The Status of Loans are as follows:
a) Loans with M/s. Punjab National Bank:
The Company has arrived at OTS in 23.01.2006 with the Bank and has
fully settled the Loans and obtained No Due certificate from the bank
on 05.10.2007.
b) Term Loan with M/s.TIIC:
The Company has entered into OTS on 23.03.2007 for payment of Rs.270
lacs. The company paid Rs.54 lacs and could not pay the balance OTS
amount. During the year, interest of Rs.25.92 lacs has been provided on
OTS amounts. The settlement depends on payment by company and
acceptance by M/s.TIIC.
c) Term Loan with M/s.SIPCOT:
The Company is yet to arrive at OTS with M/s.SIPCOT. Amount of interest
has been provided on accumulated Principal of Rs.300 lacs and interest
thereon.
2. Contingent Liabilities not provided for
a. TNEB Due: The Company has made a deposit of Rs.68.52 lacs towards
Backward area power tariff concession. No provision has been made for
the "Backward area power tariff concession" amounting to Rs.89.04 lacs
claimed and taken credit in accounts but refused by the TNEB. The
Madras High Court vide its order dated 19th July05 has decided the
case in favour of the Company, TNEB has appealed to Supreme court by
way of special leave petition in which also the SC decided the case in
favour of the company.
b. P.F. Due: The Provident Fund Authorities vide their letter dt.
12.02.98 have intimated that the provisions of the Provident fund Act
are applicable to the Company with effect from 22.09.97.But the Company
has disputed the same in Madras High Court. As a matter of caution the
Company has made a provision of Rs2.95 Lakhs towards P.F. Payable, in
earlier years. However, with effect from 5th July 1999, the Company has
complied with the provisions of the said Act.
c. No provision has been made for Electricity Charges due Demanded by
Tamil Nadu Electricity Board on account of Peak Hour Charges amounting
to Rs.24.35 lakhs. The Company is making representation for waiver of
the same and is hopeful of waiver.
d. ESI Dues: Employees State Insurance Corporation (ESI) demands a sum
of Rs.35.54 lacs
No provision has been made for the same. The Unit is located in a
Backward Area and is not covered by ESIC Act and the Company has
disputed the liability and has obtained Injunction against demand from
Madras High Court.
3. As the net worth of the Company has been eroded, a reference as per
provisons of Sick Industrial Companies (Special Provisions) Act, 1985
(1 of 1986) was made to the HonbleBIFR on 28.05.2001 and the Company
was declared as Sick Industrial Company by the Honble BIFR on
06.05.03. Consequent on the Power Supply disconnection by TNEB on
03.11.2007 the mill is not functioning.
4. In the absence of taxable income, no provision for income tax has
been made. Provision has been made for FBT.
5. Some of the balances of Sundry Debtors, Sundry Creditors and Other
Advances are subject to confirmation.
6. In the opinion of the Board the Current Assets, such as
Stock-in-Trade, Sundry Debtors & Loans and advances are shown at
realisable value.
7. As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
8. The company has unabsorbed Depreciation and carry forward Losses
under Income Tax Act, 1961 available to setoff against future taxable
income. In the absence of virtual certainty of sufficient future
taxable income to avail the said credit.deferred tax Assets are not
recognised during the year.
Mar 31, 2007
1. Estimated amount of contracts remaining to be executed on Capital
Accounts not provided for
2. Secured Loans:
a. Term loans from Financial institutions and Bank: They are secured
by mortgage of fixed assets present and future of the Company on
paripassu basis and floating charge on current assets subject to first
charge to bank providing Working Capital. They are also guaranteed by
the Chairman-Cum-Managing Director.
b. The Comapany has arrived at OTS with the Bank and one of the
Financial Institutions, making payments accordingly.
3. Contingent Liabilities not provided for
a. No provision has been made for the "Backward area power tariff
concession" amounting to Rs. 80.94 lakhs claimed and taken credit in
accounts but refused by the TNEB. The Madras High Court vide its order
dated 19th July05 has decided the case in favour of the Company, TNEB
has appealed to Supreme court by way of special leave petition. Against
this the Company has made a deposit of Rs 68,52 lakhs.
b. The Company has arrived at a compromise through OTS with to M/s
Textool Ltd., Machinery supplier and paid a sum of Rs. 11.31 lakhs as
full and final settlement, the balance of Rs. 85.75 lakhs taken to
other Income.
c. The Provident Fund Authorities vide their letter dt. 12.02.98 have
intimated that the provisions of the Provident Fund Act are applicable
to the Company with effect from 22.09.97. But the Company has disputed
the same in Madras High Court. As a matter of caution the Company has
made a provision of Rs 2.95 Lakhs towards P.P. Payable, in earlier
years. However, with effect from 5th July 1999, the Company has
complied with the provisions of the said Act.
4. The Company has reached OTS with the following parties during the
Year:
a. M/s. Punjab National Bank: OTS reached and complied. Interest
waiver of Rs. 547.08 lakhs taken to Other Income.
b. M/s. The Tamilnadu Industrial Investment Corporation Limited: OTS
reached Interest Waiver of Rs. 353.94 lakhs taken to Other Income.
c. M/s. Textool Limited : OTS Reached and paid a sum of Rs. 11.31
lakhs as full and final settlement and the balance of Rs. 85.75 lakhs
taken to other Income.
d. Other Creditors : As per the agreement reached with Raw Matetials
Suppliers, the company received an amount of Rs. 19.01 lakhs taken to
ther Income.
e. Inter Corporate Deposit: M/s. Savorit Limited has waived the loan
due to them of Rs. 83.27 lakhs has been taken to Other Income.
5. E-Tax on TNEB Consumption: Consequent to the finality and as per
Supreme Coutr decision, the company has made provision for a sum of Rs.
46.35 lakhs demanded by TNEB towards. E-Tax for earlier years. The
Company is paying the above amount in installments as per the High
Court Order.
6. As the networth of the Company has been eroded, a reference as per
provisions of Sick Industrial Companies (Special Provisions) Act, 1985
(1 of 1986) was meade to the Honble BIFR on 28.05.2001. The company
was declared as Sick Industrial Company by the Hobble BIFR on
06.05.2003
7. The Company has not made any provision for the Interest payable on
unsecured loan taken from Chairman-cum- Managing Director since he has
weived the interest.
8. In the absence of taxable Income, no provision for Income tax has
been made.
9. Directors Remuneration:
As the company has not ontained approval from Central Government,
remunertion to Chairman cum Managing Director has not been provided
2006-07 2005-06
10. Some of the balances of Sundry Debtors, Sundry Creditors and Other
Advances are subject to confirmation.
11. In the opinion of the Board of Directors the Current Assets, such
as Stock-in-Trade, Sundry Debtors & Loans and advances are shown at
realisable value.
12. As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
13. The company has unabsorbed Depreciation and carry forward Losses
under Income Tax Act, 1961 available to setoff against future taxable
income. In the absence of virtual certainty of sufficient future
taxable income to avail the said credit, deferred tax Assets are not
recognised during the yeah
Mar 31, 2006
ANNUAL REPORT 2005-2006
NOTES ON ACCOUNTS
1. SIGNIFICANT ACCOUNTING POLICES:
A. Accounting Convention:
The Financial Statements are prepared in accordance with the requirements
of the Companies Act, 1956 under the historical cost convention on the
accrual basis.
B. Revenue Recognition:
Revenue from sale of goods is recognised upon passing of title to the
consumer, and delivery as per terms of sale. Other income and expenses are
accounted for on mercantile basis.
C. Fixed Assets:
Fixed Assets are stated at historical cost of acquisition (less CENVAT
Credits) including installation and commissioning charges less accumulated
depreciation. None of the Fixed Assets have been revalued during the year.
Depreciation is provided on Straight Line Method at the rates prescribed
under the Schedule - XIV of the Companies Act, 1956 and while doing so the
Plant and Machinery has been considered as continuous process plant by the
Company
D. Inventories:
i. Raw material and work-in-process: Valued at cost on FIFO basis.
ii. Finished goods and other Stock-in-trade: Valued at cost or net
realisable value, whichever is lower.
iii. Stores and Spares: Valued at cost.
iv. Packing Material: Valued at cost
v. Cotton waste: Net realisable value.
E. Investments: NIL
F. Retirement benefits
i. Provident Fund :
Eligible Employees receive benefits from a provident fund which is a
defined contribution plan. The Company is regular in payment of Provident
Fund dues.
ii. Gratuity :
The estimated liability of gratuity payable as per the management works out
to Rs. 93,515/- in accordance with the provisions of payment of Gratuity
Act 1972 which has been provided for.
iii. Leave encashment :
As determined on the basis of Leave Rules of the Company and are charged to
the Profit and Loss Account on accrual basis.
G. Sales:
Sales represent the amount receivable for goods sold.
H. Foreign Exchange Transactions:
During the year the Company has not dealt with foreign exchange
transactions.
I. Preliminary Expenses
1/10 of the preliminary expenses have been written off during the year.
2. Estimated amount of contracts remaining to be executed on Capital
Accounts not provided for
2006-06 2004-05
Nil Nil
3. Secured Loans:
a. Term loans from Financial institutions and Bank: They are secured by
mortgage of fixed assets present and future of the Company on pari-passu
basis and floating charge on current assets subject to first charge to bank
providing Working Capital. They are also guaranteed by the Chairman-Cum-
Managing Director.
b. Working Capital Loan has been secured against hypothecation of stock of
raw material, finished goods, work-in-process, stores and spares, book
debts and collaterally secured by second charge on the entire block of
assets and by personal guarantee of Chairman-Cum-Managing Director and a
shareholder of the Company.
4. Contingent Liabilities not provided for
a. No provision has been made for the "Backward area power tariff
concession" amounting to Rs. 80.94 lakhs claimed and taken credit in
accounts but refused by the TNEB. The Madras High Court vide its order
dated 19th July '05 has decided the case in favour of the Company, TNEB has
appealed to Supreme court by way of special leave petition. Against this
the Company has made a deposit of Rs 68.52 lakhs.
b. The Company has not yet made payment for purchase of machinery to M/s
Textool Ltd., amounting to Rs. 97.06 lakhs and is pending since 2000. The
Company has not made any provision for the interest payable of Rs. 90.30 on
the above outstanding amount as per the MOU entered with that Company.
c. The Provident Fund Authorities vide their letter dt. 12.02.98 have
intimated that the provisions of the Provident Fund Act are applicable to
the Company with effect from 22.09.97. But the Company has disputed the
same in Madras High Court. As a matter of caution the Company has made a
provision of Rs 2.95 Lakhs towards P.F. Payable, in earlier years. However,
with effect from 5th July 1999, the Company has complied with the
provisions of the said Act.
5. As the net worth of the Company has been ended, a reference as per
provisions of Sick Industrial Companies (special provisions) Act 1985, (1
of 1986) was made to the Hon'ble BIFR on 28.05.2001 and the Company was
declared as Sick Industrial Company by the Hon'ble BIFR on 06.05.2003.
6. The Company has not made any provision for the interest on Inter
Corporate Deposit of Rs. 83.27 lakhs, taken from M/s. Savorit Limited, as
the said Company has waived the interest.
7. The Company has not made any provision for the interest payable on
unsecured loan taken from Chairman cum - Managing Director since he has
waived the interest.
8. In the absence of taxable income, no provision for income tax has been
made.
9. Director's Remuneration:
As minimum remuneration as per schedule XIII of the Companies Act, 1956 has
been paid to the Chairman-Cum-Managing Director, the Computation under
section 349/350 of the Companies Act, 1956 has not been furnished.
2005-06 2004-05
Remuneration Rs. 6.00 Lakhs p.a Rs. 14.40 Lakhs p.a
10. Some of the balances of Sundry Debtors, Sundry Creditors and Other
Advances are subject to confirmation.
11. In the opinion of the Board of Directors the Current Assets, such as
Stock-in-Trade, Sundry Debtors & Loans and advances are shown at realisable
value.
12. As information relating to small scale units having business
relationship with the Company is not readily available, such information is
not furnished.
13. Additional Information:
2006-06 2004-05
a. Licensed Capacity (No. of Spindles) Delicensed Delicensed
b. Installed Capacity (No. of Spindles) 16128 16128
c. Production & Sales
i. Production 108.424 541.256
M.T Rs. Lakhs M.T Rs. Lakhs
ii. Sales
Yarn 102.034 70.58 559.378 519.77
Cotton - - 9.612 3.85
Waste 17.959 0.94 114.229 5.95
Job work receipts 1650.723 298.70 851.70 157.39
14. Raw Material Consumed
Cotton 131.388 57.18 669.842 360.92
15. Opening & Closing Stocks
a. Yarn 0.219 0.15 18.342 18.11
Work-in-Process 1.768 1.01 25.760 19.13
Total 1.987 1.15 44.102 37.24
Closing Stock
Yarn 6.609 4.83 0.219 0.15
b. Work-in-Process 1.916 1.26 1.768 1.01
Total 8.525 6.09 1.987 1.15
16. Percentage of Raw
Material Consumed
Indigenous 100% 57.18 100% 360.92
17. Percentage of Spares
parts & Components consumed 100% 21.38 100% 28.60
(including machinery maintenance)
2005-06 2004-05
18. Auditors Remuneration
Audit Fee 0.20 0.20
Tax Audit Fee 0.15 0.15
Other Matters - -
Total 0.35 0.35
19. Value of Imports (CIF Value)
a) Raw Materials - -
b) Capital Goods - -
20. Expenditure in Foreign Currency
21. Previous Year's Figures have been regrouped where ever necessary.
22(A) Related Parties:
Sl. No. Party Relationship
I. 1 Savorit Limited Associate Enterprise
2 Savorit Food Industries Limited -do-
3 Savorit Oils Limited -do-
II. a) Sri. K.S. Venugopala,
Chairman cum Managing Director Key Managerial Personnel
b) Sri. R. Vijaykumar, Director -do-
c) Sri. K. Alagiriswami, Director -do-
22(B). RELATED PARTY DISCLOSURES Rs. in Lakhs
Name of the Description Nature of the A B C D E
related of the transactions
party relationship
1. K.S. Chairman-Cum- Unsecured NIL 56.02 NIL NIL 56.02
Venugopala Managing Loan (Cr.) Cr.
Director received (Net)
2. Savorit Controlled Inter 83.27 NIL NIL NIL 83.27
Limited by the same corporate Cr. Cr.
management deposit
received
United India Rental 0.12 0.03 NIL NIL 0.09
Rentals (A Payment Cr. (Cr.) Cr.
Division of (Net)
Savorit Ltd)
A: Opening Balance 2004-2005
B: Volume of the transaction 2005-2006
C: Any other elements of the related party transactions
D: Amount written off in respect of debts due to related parties
E: Balance as on 31.03.2006
23. The Basic and diluted Earning per Share (EPS)
Particulars Year ended Year ended
31.03.2006 31.03.2005
Loss After Tax Rs.36912584 Rs.49653239
Number of Equity Share 7000000 7000000
Nominal Value of Ordinary Shares Rs. 10/- Rs. 10/-
Basic/diluted earning per share Rs. (5.27) Rs. (7.09)
24. The company has unabsorbed Depreciation and carry forward Losses under
Income Tax Act, 1961 available to setoff against future taxable income. In
the absence of virtual certainty of sufficient future taxable income to
avail the said credit, deferred tax Assets are not recognised during the
year.
As per our report attached
K.S. VENUGOPALA R. VIJAYKUMAR For S. DHANYAKUMAR & CO.,
CHAIRMAN-CUM- DIRECTOR CHARTERED ACCOUNTANTS
MANAGING DIRECTOR
D. SAMPATHKUMAR
Place: Chennai PROPRIETOR
Date: 29.05.2006 M.No. 3483
Mar 31, 2005
1. The preliminary expenses have been written off during the year.
2. Estimated amount of contracts remaining to be executed on Capital
Accounts not provided for
2004-05 2003-04
Nil Nil
3. Secured Loans:
a. Term loans from Financial institutions and Bank: They are secured
by mortgage of fixed assets present and future of the Company on
paripassu basis and floating charge on current assets subject to first
charge to bank providing Working Capital. They are also guaranteed by
the Chairman-Cum-Managing Director.
b. Working Capital Loan has been secured against hypothecation of
stock of raw material, finished goods, work-in-process, stores and
spares, book debts and collaterally secured by second charge on the
entire block of assets and by personal guarantee of
Chairman-Cum-Managing Director and a shareholder of the Company.
4. Contingent Liabilities not provided for
a. No provision has been made for the "Backward area power tariff
concession" amounting to Rs 80.94 lakhs claimed and taken credit in
accounts but refused by the TNEB. The matter is pending before the
Madras High Court. Against this the Company has made a deposit of Rs
68.52 lakhs.
b. The Company has not yet made payment for purchase of machinery to
M/s Textool Ltd., amounting to Rs. 97.06 lakhs and is pending since
2000. The Company has not made any provision for the interest payable
of Rs. 50.38 on the above outstanding amount as per the MOD entered
with that Company.
c. The Provident Fund Authorities vide their letter dt. 12.02.98 have
intimated that the provisions of the Provident Fund Act are applicable
to the Company with effect from 22.09.97. But the Company has disputed
the same in Madras High Court. As a matter of caution the Company has
made a provision of Rs 2.95 Lakhs towards P.F. Payable, in earlier
years. However, with effect from 5th July 1999, the Company has
complied with the provisions of the said Act.
5. As the net worth of the Company has been eroded, a reference as per
provisions of Sick Industrial Companies (special provisions) Act 1985,
was made to the Honble BIFR on 28.05.2001 and the Company was declared
as Sick Industrial Company by the Honble BIFR on 06.05.2003.
6. The Company has not made any provision for the interest on inter
Corporate Deposit of Rs. 83.27 lakhs, taken from M/s. Savorit Limited,
as the said Company has waived the interest.
7. The Company has not made any provision for the interest payable on
unsecured loan taken from Chairman - cum - Managing Director since he
has waived the interest.
8. Due to financial constraints the company is unable to pay any
principal and interest due to Financial Institutions and Bank during
the year.
9. In the absence of taxable income, no provision for income tax has
been made.
10. Directors Remuneration:
As minimum remuneration as per schedule XIII of the Companies Act, 1956
has been paid to the Chairman-Cum-Managing Director, the Computation
under section 349/350 of the Companies Act, 1956 has not been
furnished.
2004 - 05 2003 - 04
Remuneration Rs. 14.40 Lakhs p.a Rs.14.40 Lakhs p.a
11. Some of the balances of Sundry Debtors, Sundry Creditors and Other
Advances are subject to confirmation.
12. In the opinion of the Board of Directors the Current Assets, such
as Stock-in-Trade, Sundry Debtors & Loans and advances are shown at
realisable value.
13. As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
2004-05 2003-04
14. Auditors Remuneration
Audit Fee 0.20 0.20
Tax Audit Fee 0.15 0.15
Other Matters
Total 0.35 0.35
15. Value of Imports (GIF Value)
a) Raw Materials
b) Capital Goods
16. Expenditure in Foreign Currency
17. Previous Years Figures have been regrouped where ever necessary.
18(A) Related Parties:
Sl.No. Party Relationship
I. 1) Savorit Limited Associate Enterprise
2) Savorit Food Industries Limited -do-
3) Savorit Oils Limited -do-
4) Vims Impex Limited One of CMDs Sons is a Director
5) Aarambam Enterprises Limited -do-
6) Savorit Flour Mills Pvt. Limited -do-
II. a) Sri. K.S.Venugopala,
Chairman cum Managing Director Key Managerial Personnel
b) Sri. R.Vijaykumar, Director -do-
c) Sri. K. Alagiriswami, Director -do-
19. The Basic and diluted Earning per Share (EPS)
Particulars Year ended Year ended
31.03.2005 31.03.2004
Loss After Tax Rs. 49653239 Rs. 36354164
Number of Equity Share 7000000 7000000
Nominal Value of Ordinary Shares Rs. 10/- Rs. 10/-
Basic/diluted earning per share Rs.(7.09) Rs.(5.19)
20. The company has unabsorbed Depreciation and carry forward Losses
under Income Tax Act, 1961 available to set off against future taxable
income. In the absence of virtual certainty of sufficient future
taxable income to avail the said credit, deferred tax Assets are not
recognised during the year.
Mar 31, 2003
1. Contingent Liabilities not provided for
a. No provision has been made for the "Backward area power tariff
concession" amounting to Rs 80.94 lakhs claimed and taken credit in
accounts but refused by the TNEB.The matter is pending before the
Chennai High Court and hopefull of favourable decision by the company.
Against this the Company has made a deposit of Rs. 68.52 lakhs.
b. The Company has not yet made payment for purchase of machinery to
M/s Textool Ltd., amounting to Rs.97.06 lakhs and is pending since
2000. The company has not made any provision for the Interest payable
of Rs.34.37 lakhs on the above outstanding amount as per the MOU
entered with that company.
c. The Provident Fund Authorities vide their letter dt. 12.02.98 have
intimated that the provisions of the Provident fund Act are applicable
to the Company with effect from 22.09.97. But the Company has disputed
the same in Chennai High Court. As a matter of caution the Company has
made a provision of Rs 2.95 Lakhs towards P.F. Payable, in earlier
years. However, with effect from 5th July 1999, the Company has
complied with the provisions of the said Act.
2. The Company has not made any provision for the interest on inter
Corporate Deposit of Rs. 83.27 lakhs, taken from M/s Savorit Limited,
as the said Company has waived the interest.
3. The Company has not made any provision for the interest payable on
unsecured loan taken from Chairman-cum-Managing Director since he
has waived the payment of the same.
4. Due to financial constraints the company is unable to pay any
principal and interest due to financial institutions and bank during
the year.
5. In the absence of taxable income, no provision for income tax has
been made.
6. Directors Remuneration:
As minimum remuneration as per schedule XIII of the Companies Act, 1956
has been paid to the Chairman-Cum-Managing Director, the Computation
under section 349/350 of the Companies Act, 1956 has not been
furnished.
2002-03 2001-02
Remuneration Rs.14.40 Lakhs p.a Rs.14.40 Lakhs p.a
7. Some of the balances of Sundry Debtors, Sundry Creditors and Other
Advances are subject to confirmation.
8. In the opinion of the Board, the Current Assets, such as
Stock-in-Trade, Sundry Debtors & Loans and advances are shown at
realisable value.
9. As information relating to small scale units having business
relationship with the company is not readily available, such
information is not furnished.
10. Previous Years Figures have been regrouped where ever necessary.
Mar 31, 2002
1. Estimated amount of contracts remaining to be executed on Capital
Accounts not provided for
2001-02 2000-01
Nil Nil
2. Contingent Liabilities not provided for
a. No provision has been made for the "Backward area power tariff
concession" amounting to Rs 80.94 lakhs claimed and taken credit in
accounts but refused by the TNEB. The matter is pending before the
Chennai High Court. Against this the Company has made a deposit of Rs
68.52 lakhs.
b. The Company has not made any provision for the interest payable of
Rs. 16 lakhs to M/s Textool Ltd as per the agreement as the Company is
hopeful of wavier of the said interest.
c. The Company has not yet made payment for purchase of machinery from
M/s. Textool Ltd., amounting to Rs.97.06 lakhs and is pending since
2000 also company has not made any provisions.
d. The Company has not made any provision for the interest on inter
Corporate Deposit of Rs. 80.00 lakhs, taken from M/s Savorit Limited,
as the said Company has waived the interest.
e. The Provident Fund Authorities vide their letter dt. 12.02.98 have
intimated that the provisions of the Provident fund Act are applicable
to the Company with effect from 22.09.97. But the Company has disputed
the same in Chennai High Court. As a matter of caution the Company has
made aprovision of Rs 2.95 Lakhs towards P.F. Payable, in earlier
years. However, with effect from 5th July 1999, the Company has
complied with the provisions of the said Act.
3 Secured Loans:
a. Term loans from Financial institutions and Bank: They are secured
by mortgage of fixed assets present and future of the Company on
paripassu basis and floating charge on current assets subject to first
charge to bank providing Working Capital. They are also guaranteed by
the Chairman-Cum-Managing Director.
b. SIPCOT and TIIC have funded the interest payable of Rs. 287.42 till
31st March 2001 and the same has been shown under Secured Loans along
with interest charged on the same of Rs. 55.69 lakhs during the current
year.
c. Working Capital Loan has been secured against hypothecation of
stock of raw material, finished goods, work-in-process, stores and
spares, book debts and collaterally secured by second charge on the
entire block of assets and by personal guarantee of
Chairman-Cum-Managing Director and a shareholder of the Company.
4 Due to financial constraints the company is unable to pay any
principal and interest during the year.
5 The Company has not made any provision for the interest payable on
unsecured loan taken from Sri.K.S.Venugopaal, Chairman-Cum-Managing
Director since he has waived the interest.
6 1/10 of the preliminary expenses have been written off during the
year.
7 In the absence of taxable income, no provision for income tax has
been made.
8 Directors Remuneration:
As minimum remuneration as per schedule XIII of the Companies Act, 1956
has been paid to the Chairman-Cum-Managing Director. The Computation
under section 349/350 of the Companies Act, 1956 has not been
furnished.
2001-02 2000-01
Remuneration Rs. 14.40 Lakhs p.a. Rs. 11.90 Lakhs p.a.
9 Balances of Sundry Debtors, Sundry Creditors and Other Advances are
subject to confirmation.
10 In the opinion of the Board the Current Assets, such as
Stock-in-Trade, Sundry Debtors & Loans and advances are shown at
realisable value.
11 As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
12 Percentage of Raw Material Consumed
Indigenous 100% 379.38 100% 569.11
17 Percentage of Indigenous
Spare parts & Components 100% 19.60 100% 34.78
consumed (including
machinery maintenance)
13 Auditors Remuneration
Audit Fee 0.20 0.20
Tax Audit Fee 0.15 0.15
Other Matters - 0.01
14 Value of lmports (CIF Value) 0.35 0.36
a) Raw Materials Nil Nil
b) Capital Goods Nil Nil
15 Expenditure in Foreign Currency Nil Nil
16 Previous Years Figures have been regrouped where ever necessary.
Mar 31, 2001
1. Estimated amount of contracts remaining
to be executed on 2000-01 1999-00
Capital Accounts not provided for Nil Nil
2. Contingent Liabilities not provided for
a. No provision has been made for the "Backward area power tariff
concession" amounting to Rs. 80.94 lakhs claimed and taken credit in
accounts but refused by the TNEB. The matter is pending before the
Chennai High Court. Against this the Company has made a deposit of Rs
68.52 lakhs.
b. The Company has paid a sum of Rs. 33.00 lakhs to M/s. Textool LTD.
towards dues for machinery purchased. However has not made any
provision for interest amounting to Rs. 19.08 lakhs payable as per
agreement, as the Company is hopeful of wavier of said interest.
c. The Company has not made any provision for interest on Inter
Corporate Deposit of Rs. 70.00 lakhs taken from M/S. Savorit Limited,
as the said Company has waived the interest.
d. The provident Fund Authorities vide their letter dt. 12.02.98 have
intimated that the provisions of the Provident fund Act are applicable
to the Company with effect from 22.09.97. But the Company has disputed
the same in Chennai High Court. As a matter of caution the Company has
made a provision of Rs 2.95 lakhs towards P.F. Payable, in earlier
year. However, with effect from 5th July 1999, the Company has complied
with the provisions of the said Act.
4. Secured Loans :
a. Term loans from Financial institutions and Bank : They are secured
by mortgage of fixed assets present and future of the Company on
paripassu basis and floating charge on current assets subject to first
charge to bank providing Working Capital. They are also guaranteed by
the Chairman-Cum-Managing Director.
b. SIPCOT and TIIC have funded the interest payable amounting to
Rs. 287.42 lacs till 31st March 2001 and the same has been shown under
secured Loans.
c. Working Capital Loan has been secured against hypothecation of
stock of raw material, finished goods, work-in-process, stores and
spares, book debts and collaterally secured by second charge on the
entire block of assets and by personal guarantee of
Chairman-Cum-Managing Director and a shareholder of the Company.
5. 1/10 of the preliminary expenses have been written off during the
year.
6. In the absence of taxable income, no provision for income tax has
been made.
7. Balances of Sundry Debtors, Sundry Creditors and Other Advances are
subject to confirmation.
8. In the opinion of the Board, the Current Assets, Stock-in-Trade,
Sundry Debtors & Loans and advances are shown at realisable value.
9. As information relating to small scale units having business
relationship with the Company is not readily available, such
information is not furnished.
Mar 31, 2000
1. Estimated amount of contracts remaining
to be executed on 1999-00 1998-99
Capital Accounts not provided for Nil Nil
2. Contingent Liabilities for provided for
a) Inland letter of credit of Rs.49.54 lakhs facility availed from
Punjab National Bank, Sowcarpet Branch.
b) No provision has been made for "Backward area power tariff
concession" amounting to Rs.80.61 lakhs claimed and taken credit in
accounts but refused by TNEB. The matter is pending before the Madras
High Court. Against this, the Company has made a deposit of Rs.65.96
Lakhs.
3. The Provident Fund Authorities vide their letter dt. 12-02-98 have
intimated that the provisions of the Provident Fund Act are applicable
to the company with effect from 22-09-97. But the company was disputed
the same in Madras High Court. As a matter of caution the Company has
made a provision of Rs.2.95 Lakhs towards P.F. payable. However, with
effect from 5th July 1999, the Company has complied with the provisions
of the said Act.
4. As per Agreement with Textool Ltd., the Company has to pay Interest
prospectively if any. Hence the amount provided in earlier years
amounting to Rs.27.17 Lakhs has been reversed to Interest account.
5. Secured Loans :
a. Term loans from Financial Institution and Bank : They are secured by
mortgage of fixed assets present and future of the company on paripassu
basis and floating charge on current assets subject to first charge to
bank providing Working Capital. They are also guaranteed by the
Chairman-Cum-Managing Director.
b. SIPCOT And TIIC have funded the Interest payable till 31st March,
2000 and the same has been shown under Secured Loans.
c. Hire purchase liabilities on assets are secured by corresponding
assets.
d. Working Capital Loan has been secured against hypothecation of stock
of raw materials, finished goods, work-in-process, stores and spares,
book debts and collaterally secured by second charge on the entire
block of assets and by personal guarantee of Chairman-cum-Managing
Director and a Shareholder of the company.
6. 1/10th of the preliminary expenses have been written off during the
year.
7. In the absence of taxable income, no provision for Income-tax has
been made.
Director's Remuneration :
As minimum remuneration as per Schedule XIII of Companies Act, 1956 has
been paid to the Chairman-cum-Managing Director, the Computation under
section 349/350 of Companies Act, 1956 have not been furnished.
1999-00 1998-99
Remuneration Rs.8.40 Lacs p.a. Rs.8.40 Lakhs p.a.
9. Balances of Sundry Debtors, Sundry Creditors, Loans & Advances are
subject to confirmation.
10. In the opinion of the Board, the Current Assets, Stock-in-Trade,
Sundry Debtors & Loans and Advances are shown at realisable value.
Mar 31, 1999
1. Estimated amount of contracts remaining to be executed on
Capital Accounts not provided for : 1998-99 1997-98
Nil Nil
2. Contingent Liabilities not provided for
a) Inland letter of credit of Rs.59,92,209/- facility availed from
Punjab National Bank, Sowcarpet Branch.
b) The Company has made no provision for "Backward area power tariff
concession" amounting to Rs.51,44,680/- claimed and taken credit in
accounts but refused by TNEB. The matter is pending before the Madras
High Court.
3. The Provident Fund Authorities vide their letter dt.12-02-98 have
intimated that the provisions of the Provident Fund Act are applicable
to the company with effect from 22-09-97. But the company has disputed
the same in Madras High Court. However the company has made a
provision of Rs.2,49,730/- (Rs.1,48,032 relating to earlier years)
towards P.F payable as a matter of caution.
4. The company has provided an amount of Rs.27,16,870/- (Rs.4,15,770/-
relating to earlier years) towards interest payable to M/s. Textool
Ltd., on the balance outstanding payable for Machinery purchases as
they have insisted payment with interest.
5. Excise duty amounting to Rs.1,99,878/- has been provided on
uncleared goods lying at the factory premises. However, the accounting
of the same will not have any impact on the loss for the year.
6. Secured Loans :
a. Term loans from Financial Institutions and Bank : They are secured
by mortgage of fixed assets present and future of the company on
paripassu basis and floating charge on current assets subject to first
charge to bank providing Working Capital. They are also guaranteed by
the Chairman-Cum-Managing Director.
b. Hire purchase liabilities on assets are secured by corresponding
assets.
C. Working Capital Loan has been secured against hypothecation of stock
of raw material, finished goods, work-in-process, stores and spares,
book debts and collaterally secured by second charge on the entire
block of assets and by personal guarantee of Chairman-cum-Managing
Director and a Shareholder of the company.
7. 1/10th of the preliminary expenses have been written off during the
year.
8. In the absence of taxable income, no provision for Income-tax has
been made.
9. The Company has taken steps for "Y2K" compliance.
10. Balances of Sundry Debtors, Sundry Creditors, Loans & Advances are
subject to confirmation.
11. In the opinion of the Board, the Current Assets, Stock-in-Trade,
Sundry Debtors & Loans and Advances are shown at realisable value.
Mar 31, 1998
1. Excise duty amounting to Rs. 4,34,227/- has been provided on
uncleared goods lying at the factory premises. However, the accounting
of the same will not have any impact on the loss for the year.
2. Secured Loans :
a. Term loans from Financial Institutions and bank. They are secured
by mortgage of fixed assets present and future of the company on
paripassu basis and floating charge on current assets having subject to
first charge to bank providing Working Capital, they also guaranteed by
the Chairman-cum-Managing Director.
b. Hire purchase liabilities on assets are secured by corresponding
assets.
c. Working Capital Loan has been secured against hypothecation of stock
of raw material, finished goods, work-in-process, stores & spares, book
debts and collaterally secured by second charge on the entire block of
assets and by personal guarantee of Chairman-cum-Managing Director and
a Shareholder of the company.
3. 1/10th of the preliminary expenses have been written off during the
year.
4. In the absence of taxable income, no provision for tax is made.
Mar 31, 1997
1. Excise Duty of Rs. 39,420/= payable on finished goods lying in the
factory premises as on 31.3.97 and not cleared has not been included in
inventory valuation. However non accounting of this amount does not
affect the loss for the year.
2. Secured Loans
a. Term loans from finance institutions and bank are secured by
mortgage of present and future fixed assets of the company on pari
passu basis and floating charge on current assets subject to first
charge to bank providing Working capital and also guaranteed by the
Chairman Cum Managing Director.
b. Hire purchase liabilities on assets are secured by corresponding
assets.
c. Working Capital loan has been secured against hypothecation of stock
of raw material finished goods, work-in-process, stores & spares, book
debts and collaterally secured by second charge on the entire block of
assets and by personal guarantee of Chairman Cum Managing Director and
a Shareholder of the company.
3. The company has commenced commercial production on 5.7.96. All
incidental expenditure incurred during the construction/commissioning
period are capitalised by allocating to fixed assets.
4. In the absence of taxable income, no provision for tax is made.
5. Expenditure on Employees who are in receipt of remuneration of not
less than Rs. 3 Lakhs or more when employed throughout the year or
Rs.25,000 per month when employed for the part of the year : NIL
6. No portion of Preliminary and Public Issue expenses is written off
during the year.
7. Amount due from Companies under the same Management.
Savorit Limited Rs. NIL (last year Rs.NIL) - Maximum Amount due during
the year Rs.42.00 lakhs (last year Rs. NIL)
Mar 31, 1996
No Information Available.
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