Mar 31, 2015
1. Rights of Equity Shareholders
The Company has only one class of equity shares having par value of
Rs.10 each. Each holder of equity shares is entitled to one vote per
share.The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General
Meeting,except in case of interim dividend.In the event of liquidation
of the Company, the holders of equity shares will be entitled to
receive any of the remaining assets of the Company, after distribution
of all prefrential amounts including in respect of prefrence shares
issued.The distribution will be in proportion to the number of Equity
Shares held by the shareholders.
2. Debentures - from public [refer note 6 (1)(b)(i) abovel
(a) These are secured by a second, subservient and subordinate charge
on the Company's immovable properties, both present and future and a
second subservient charge by way of hypothecation of the Company's
movable assets (save and except book debts) subject to prior charges
created in favour of the Company's bankers / assignees on the Company's
stocks of raw materials, semi-finished and finished goods, consumable
stores, spares and such other movables for working capital
requirements.
3. Term Loans and Zero Coupon Non-convertible Debentures - [refer note 6
(1Hb)(ii) and (ill) abovel
These are secured by a first charge on the Company's immovable
properties, both present and future and a second charge by way of
hypothecation of the Company's movable assets (save and except book
debts) subject to prior charges created in favour of the Company's
bankers / assignees on the Company's stocks of raw materials,
semi-finished and finished goods, consumable stores, spares and such
other movables for working capital requirements.
4. Borrowings from Banks - [refer note 6 (1)(b)(iv) abovel
These are secured by a first charge on the Company's book debts,
stocks of raw materials, semi-finished and finished goods, consumable
stores and spares and a second charge on the movable and immovable
properties of the Company both present and future in favour of the
banks / assignees, subject to prior charges created in favor of Term
Lenders and ZCNCD holders or their assignees.
5. Although the accumulated losses as at the year-end amounted to
Rs.9482.77 Lacs (Previous Year Rs.9199.73 Lacs) as against the paid up
share capital of Rs.2670.20 Lacs (Previous Year Rs.2670.20 Lacs),
pending the finalization and adoption of the business re-engineering
plans[refer Note 17(c)(iii) below], these financial statements have
been prepared on a 'goingconcern'basis and impairment loss, if any,
will be accounted for as and when the business re-engineering plans are
implemented.
6. In view of the accumulated losses, no transfer has been made to the
Debenture Redemption Reserve in respect of secured and unsecured
Non-Convertible Debentures.
7. Restructuring and Net Worth Status:
i. The Net Worth of the Company has been fully eroded and is negative
as on March 31, 2015. The management had been advised that since
certain conditions as per the Sick Industrial Companies (Special
Provisions) Act, 1985 were not being met, the Company was not eligible
to a make reference to BIFR. In the event of any change in the status
inter alia arising out of developments in the pending legal case [refer
Note (ii) below], appropriate steps will be taken in this regard.
ii. The validity of the closure declared by the Company with effect
from June 26, 2008, under the relevant provisions of The Industrial
Disputes Act, 1947, has been challenged before the Industrial Court by
the employees' union and the matter is pending before the Hon'ble
Court.
iii. The management has been exploring various options for
restructuring the business and finances of the Company, including the
recommencement / relocation of its manufacturing operations.
iv. As part of restructuring, the Company had earlier entered into an
arrangement for the assignment of the leasehold rights of its land.
However, certain issues have affected its implementation and the
management is pursuing the matter.The advance received has however been
utilized, inter alia, to settle certain liabilities of the Company.
v. During the year interest liability on all borrowings including
debentures, excluding inter-corporate deposits (refer note 4), has not
been provided since revised terms are in the process of being
negotiated with the lenders and the management estimates that the
liabilities already being carried are adequate.
vi. The Zero Coupon NCDs issued to and the Term Loans from IFCI Ltd.
were assigned to a third party by IFCI Ltd. The assignment has been
challenged by the Company and the matter is pending before the Hon'ble
Delhi High Court.
8. Revaluation
i. The Company had revalued the land, building and certain plant and
machinery as on April1, 1996 based on the valuation made by M/s PC.
Gandhi &Associates, an independent firm of consulting Engineers,
Surveyors and GovernmentApproved Valuers vide their report dated 30th
April, 1997. Accordingly, the original costs of the above assets as on
April 1, 1996 have been restated at estimated market value arrived at
after adjusting the depreciation on the estimated replacement cost. The
resultant increase in net book value arising on revaluation amounting
to Rs. 4285.93 Lacs was transferred to Revaluation Reserve Account
during the period ended 31st August, 1997. The following re-valued
amounts remain substituted for the historical cost in the gross block
of fixed assets:
ii. Revaluation Reserve amounting to Rs.4285.93 Lacs had been adjusted
against the then accumulated losses pursuant to the scheme of
restructuring approved by the Hon'ble High Court of Bombay vide its
order dated April 23, 2001. Depreciation is, however, being provided on
the revalued amounts.
9. Contingent Liabilities have not been provided for in respect of:
Rs Lacs
Particulars Year ended Year ended
31st March, 2015 31st March, 2014
i. Claims against the Company
which are disputed relating
to (including interest or
penalty upto the date of
demand)
Excise Duty 62.26 62.26
Customs Duty - -
Sales Tax 31.40 31.40
Cess Liability 28.35 28.35
MIDC Charges 108.32 108.32
NMMC Property Tax 14.72 14.72
Suppliers
ii Arrears of Fixed Preference 74.94 68.66
Dividend (Including Dividend Tax)
iii Liability as may arise in respect of matters referred to in Note
17(c) above and further interest / liability / penalty if any as may
arise in respect of matters referred to in Note 17(e)(i) and on
delays/defaults in payments to lenders, amounts whereof is presently
not ascertainable.
10. (i) In the opinion of the management, Current and Non-Current
Assets, Long Term and Short Term Loans and Advances are realizable at a
value, in the ordinary course of business,which isatleast equal to the
amount at which these are stated, and provisions for all known and
determined liabilities are adequate and not in excess of the amounts
stated.
(ii) The accounts of certain Trade Receivables, Trade Payables, Loans
andAdvancesand Lendersare however subject to formal
confirmation/reconciliationand consequent adjustments, if any. The
management does not expect any material difference affecting the
current year's financial statements on such reconciliation /
confirmation.
11. Deferred Tax Asset/Liability:
No current tax provision has been made in the absence of taxable
profits and also no deferred tax asset is being recognized.
12. Details of transactions with related parties as identified by the
management in accordance with Accounting Standard -18 of the Companies
Accounting Standard Rules, 2006 are as follows:
(i) Key Management Personnel-Mr. S. P. Gupta, Wholetime Director (till
29.03.2013)
(ii) Associates with whom transaction have been entered into: - ISG
Traders Limited; Kavita Marketing Pvt. Ltd.; Shubh Shanti Services
Ltd.
(iii) The following transactions were carried out with each type of the
above related parties in the ordinary course of business and at arm's
length:
13. Notes: Figures inbrackets relate to Previous Year.
14. Disclosure in accordance with Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006.
The Company has not received any intimation from its vendors regarding
their status under Micro, Small and Medium Enterprises Development Act,
2006 and hence disclosure, if any, required under the said Act, have
not been made.
15. Pursuant to enactment of the Companies Act 2013 (the Act), the
Company has , effective IstApril 2014, reviewed and revised the
estimated useful life of certain fixed assets, in accordance with the
Schedule II of the Act. Accordingly, the Company has given impact of
Rs. 145.81 (net of deferred tax of Rs. Nil ) on account of assets whose
useful life was already exhausted on 1st April, 2014 to Retained
Earnings. As a result of the change, the depreciation charged to the
statement of Profit and Loss for for the year is lower by Rs. 24.74
lacs.
16. After the resignation of the Company Secretary w.e.f. June 30,
2007, the Company continues to make concerted efforts to appoint fill
up the vacancy as required under Section 203 of the Companies Act,
2013.
17. Amount overdue to be credited to Investor Education Protection Fund
is Rs.164.59Lacs (previous year Rs 164.59 Lacs).
18. The Company is primarily engaged in one segment i.e. EPDM Rubber. In
view of the same, both primary and secondary reporting disclosures for
business/geographical segment as envisaged in AS-17 are not applicable
to the Company.
19. The previous year's figures have been re-grouped and/or re-arranged
wherever necessary to conform to the current year's presentation.
Mar 31, 2014
NOTE 1 - NOTES FORMING PART OF THE FINANCIAL STATEMENTS
a. Although the accumulated losses as at the year-end amounted to
Rs.9199.73 Lacs (Previous Year Rs.8969.69 Lacs) as against the paid up
share capital of Rs.2670.20 Lacs (Previous Year Rs.2670.20 Lacs),
pending the finalization and adoption of the business re-engineering
plans[refer Note 17(c)(iii) below], in these financial statements have
been prepared on a''going concern'' basis and impairment loss, if any,
will be accounted for as and when the business re-engineering plans
are implemented.
b. In view of the accumulated losses, no transfer has been made to the
Debenture Redemption Reserve in respect of secured and unsecured Non-Convertible Debentures.
c. Restructuring and Net Worth Status:
i. The Net Worth of the Company has been fully eroded and is negative
as on March 31, 2014. The management had been advised that since
certain conditions as per the Sick Industrial Companies (Special
Provisions) Act, 1985 were not being met, the Company was not eligible
to a make reference to BIFR. In the event of any change in the status
inter alia arising out of developments in the pending legal case [refer
Note (ii) below], appropriate steps will be taken in this regard.
ii. The validity of the closure declared by the Company with effect
from June 26, 2008, under the relevant provisions of The Industrial
Disputes Act, 1947, has been challenged before the Industrial Court by
the employees'' union and the matter is pending before the Hon''ble
Court.
iii. The management has been exploring various options for
restructuring the business and finances of the Company, including the
recommencement / relocation of its manufacturing operations.
iv. As part of restructuring, the Company had earlier entered into an
arrangement for the assignment of the leasehold rights of its land.
However, certain issues have affected its implementation and the
management is pursuing the matter.The advance received has however been
utilized, inter alia, to settle certain liabilities of the Company.
v. During the year interest liability on all borrowings including
debentures has not been provided since revised terms are in the process
of being negotiated with the lenders and the management estimates that
the liabilities already being carried are adequate.
vi. The Zero Coupon NCDs issued to and the Term Loans from IFCI Ltd.
were assigned to a third party by IFCI Ltd. The assignment has been
challenged by the Company and the matter is pending before the
Hon''bleDelhi High Court.
d. Revaluation
i. The Company had revalued the land, building and certain plant and
machinery as on April1, 1996 based on the valuation made by M/s P.C.
Gandhi & Associates, an independent firm of consulting Engineers,
Surveyors and Government Approved Valuers vide their report dated 30th
April, 1997. Accordingly, the original costs of the above assets as on
April 1, 1996 have been restated at estimated market value arrived at
after adjusting the depreciation on the estimated replacement cost.
The resultant increase in net book value arising on revaluation
amounting to Rs. 4285.93 Lacs was transferred to Revaluation Reserve
Account during the period ended 31st August, 1997. The following
re-valued amounts remain substituted for the historical cost in the
gross block of fixed assets:
ii. Revaluation Reserve amounting to Rs.4285.93 Lacs had been adjusted
against the then accumulated losses pursuant to the scheme of
restructuring approved by the Hon''ble High Court of Bombay vide its
order dated April 23, 2001. Depreciation is, however, being provided on
the revalued amounts.
e. Contingent Liabilities have not been provided for in respect of:
Rs Lacs
Particulars Year ended Year ended
31st March, 2014 31st March,2013
i. Claims against the Company
which are disputed relating to
(including interest or penalty
upto the date of demand)
Excise Duty 62.26 62.26
Customs Duty - 1.25
Sales Tax 31.40 31.40
Cess Liability 28.35 28.35
MIDC Charges 108.32 108.32
NMMC Property Tax - 72.13
Suppliers 14.72 14.72
ii Arrears of Fixed Preference
Dividend (Including Dividend Tax) 68.66 62.34
iii Liability as may arise in respect of matters referred to in Note
17(c) above and further interest / liability / penalty if any as may
arise in respect of matters referred to in Note 17(e)(i) above -
amounts not ascertainable
f. (i) In the opinion of the management, Current and Non-Current
Assets, Long Term and Short Term Loans and Advances are realizable at
a value, in the ordinary course of business,which isatleast equal to
the amount at which these are stated, and provisions for all known and determined liabilities are adequate and not in excess of the amounts
stated.
(ii) The accounts of certain Trade Receivables, Trade Payables, Loans
and Advances and Lenders are however subject to formal
confirmations/reconciliations and consequent adjustments, if any. The
management does not expect any material difference affecting the
current year''s financial statements on such reconciliation /
confirmation.
g. Deferred Tax Asset/Liability:
No current tax provision has been made in the absence of taxable
profits and also no deferred tax asset is being recognized.
h. Details of transactions with related parties as identified by the
management in accordance with Accounting
Standard -18 of the Companies Accounting Standard Rules, 2006 are as
follows:
(i) Key Management Personnel-Mr. S. P Gupta, Wholetime Director (till
29.03.2013)
(ii) Associates - ISG Traders Limited; Kavita Marketing Pvt. Ltd.;
Shubh Shanti Services Ltd.
(iii) The following transactions were carried out with each type of the
above related parties in the ordinary course of business and at arm''s
length:
Notes: Figures in brackets relate to Previous Year.
(iv) Managing/Wholetime Director''s remuneration:
Company did not have any managing Director or Whole-time Director
during the year.
(*) The Company had applied to the Central Government for necessary
approval as per Schedule XIII of the Companies Act, 1956 towards
managerial remuneration and the same is awaited. The application
includes an amount of Rs 20.98 Lacs (relating to the financial years
2009-10 and 2010-11) paid in excess and provided for in earlier years
and Rs 30 lacs pertaining to the financial years 2007- 08, 2008-09 and
2009-10 also provided for in the previous year/s.
i. Disclosure in accordance with Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006.
(*)Amounts not determined
The Company has compiled the above information based on verbal
confirmations from suppliers. As at the year end, no supplier has
intimated the Company about its status as a Micro or Small Enterprise
or its registration under the Micro, Small and Medium Enterprises
Development Act, 2006.
j. After the resignation of the Company Secretary w.e.f. June 30, 2007,
the Company continues to make concerted efforts to appoint a Company
Secretary as required under Section 383A of the Companies Act, 1956.
k. Amount overdue to be credited to Investor Education Protection Fund
is Rs.164.59 Lacs (previous year Rs 164.59 Lacs).
Notes:
(i) The above Cash Flow Statement has been prepared under the indirect
method set out in AS-3 issued by the Institute of Chartered Accountants
of India.
(ii) Figures in brackets indicate cash outflow.
(iii) Previous year''s figures have been regrouped/reclassified wherever
applicable.
Mar 31, 2013
A. Although the accumulated losses as at the year-end amounted to Rs.
8969.70 Lacs (Previous Year Rs.8575.15 Lacs) as against the paid up
share capital of Rs.2670.20 Lacs (Previous Year Rs.2670.20 Lacs),
pending the finalization and adoption of the business re-engineering
plans [refer Note 19(c)(iir) below], these financial statements have
been prepared on agoing concern basis and impairment loss, if any, will
be accounted for as and when the business re-engineering plans are
implemented.
b. In view of the accumulated losses, no transfer has been made to the
Debenture Redemption Reserve in respect of secured and unsecured
Non-Convertible Debentures.
c. Restructuring and Net Worth Status:
i. The Net Worth of the Company has been fully eroded and is negative
as on March 31, 2013. The management had been advised that since certain
conditions as per the Sick Industrial Companies (Special Provisions)
Act, 1985 were not being met, the Company was not eligible to a make
reference to BIFR. In the event of any change in the status inter alia
arising out of developments in the pending legal case [refer Note
(ii) below], appropriate steps will be taken in this regard.
ii. The validity of the closure declared by the Company with effect
from June 26, 2008, under the relevant provisions of The Industrial
Disputes Act, 1947, has been challenged before the Industrial. Court
by the employees'' union and the matter is pending before the Hon''ble
Court
iii. The management has been exploring various options for
restructuring the business and finances of the Company, including the
recommencement / relocation of its manufacturing operations.
iv. As part of restructuring, the Company had earlier entered into an
arrangement for the assignment of the leasehold rights of its land.
However, certain issues have affected its implementation and the
management is pursuing the matter.The advance received has however been
utilized, inter alia, to settle certain liabilities of the Company.
v. During the year interest liability on all borrowings including
debentures has not been provided since revised terms are in the process
of being negotiated with the lenders and the management estimates that
the liabilities already being earned are adequate.
vi. The Zero Coupon NCDs issued to and the Term Loans from IFCI Ltd.
were assigned to a third party by IFCI Ltd. The assignment has been
challenged by the Company and the matter is pending before the Delhi
High Court.
d. Revaluation
i. The Company had revalued the land, building and certain plant and
machinery as on ApriH, 1996 based on the valuation made by M/s P.C.
Gandhi & Associates, an independent firm of consulting Engineers,
Surveyors and Government Approved Valuers vide their report dated 30"
April, 1997. Accordingly, the original costs of the above assets as on
April 1, 1996 have been restated at estimated market value arrived at
after adjusting the depreciation on the estimated replacement cost.
The resultant increase in net book value arising on revaluation
amounting to Rs. 4285.93 Lacs was transferred to Revaluation Reserve
Account during the period ended 31" August, 1997. The following
re-valued amounts remain substituted for the historical cost in the
gross block of fixed assets:
ii. Revaluation Reserve amounting to Rs.4285.93 Lacs had been adjusted
against the then accumulated losses pursuant to the scheme of
restructuring approved by the Hon''ble High Court of Bombay vide , its
order dated April 23, 2001. Depreciation is, however, being provided on
the revalued amounts.
e. Contingent Liabilities have not been provided for in respect of:
f. (i) In the opinion of the management, Current and Non-Current
Assets, Long Term and Short Term Loans and Advances are realizable at a
value, in the ordinary course of business.which is atleast equal to the
amount at which these are stated, and provisions for all known and
determined liabilities are adequate and not in excess of the amounts
stated.
ii) The accounts of certain Trade Receivables, Trade Payables, Loans
and Advancesand Lendersare however subject to formal
confirmations/reconciliationsand consequent adjustments, if any. The
management does not expect any material difference affecting the
current year''s financial statements on such reconciliation /
confirmation.
g. Deferred Tax Asset/Liability:
No current tax provision has been made in the absence of taxable
profits and also no deferred tax asset is being recognized.
h. Details of transactions with related parties as identified by the
management in accordance with Accounting Standard -18 of the Companies
Accounting Standard Rules, 2006 are as follows:
(i) Key Management Personnel - Wholetime Director Mr. §, P. Gupta
(ii) Associates - ISG Traders Limited;Kavita Marketing Pvt. Ltd.;Shubh
Shanti Services Ltd..
(iii) The following transactions were carried out with each type of the
above related jrartiesin the ordinary course of business and at arm''s
length:
(i) After the resignation of the Company Secretary w.e.f. June 30,
2007, the Company continues to make concerted efforts to appoint a
Company Secretary as requiredunder Section 383A of the Companies Act
1956.
(j) Amount overdue to be credited to Investor Education Protection Fund
is Rs.164.59 Lacs.
(k) The previous year''s figures have been re-grouped and/or re-arranged
wherever necessary to conform to the current year''s presentation.
Mar 31, 2012
(1) These are secured by a second, subservient and subordinate 'charge
on the Company's immovable properties, both present and future and a
second subservient charge by way of hypothecation of the Company's
movable assets (save and except book debts) subject to prior charges
created in favour of the Company's bankers on the Company's stocks of
raw materials, semi-finished and finished goods, consumable stores,
spares and such other movables for 'working capital' requirements.
Term Loans and Zero Coupon Non-convertible Debentures - [refer note 6
(1)(b)(ii) and (Hi) above]
(2) These are secured by a first charge on the Company's immovable
properties, both present and future and a second charge by way of
hypothecation of the Company's movable assets (save and except book
debts) subject to prior charges created in favour of the Company's
bankers on the Company's stocks of raw materials, semi-finished and
finished goods, consumable stores, spares and such other movables for
'working capital' requirements.
Borrowings from Banks - [refer note 6 (1)(b)(iv) above]
(3) These are secured by a first charge on the Company's book debts,
stocks of raw materials, semi-finished and finished goods, consumable
stores and spares and a second charge on the movable and immovable
properties of the Company both present and future, subject to prior
charges created in favor of Term Lenders and ZCNCD holders.
a. Although the accumulated losses as at the year-end amounted to
Rs.8575.15 Lacs (Previous Year Rs.5285.37 Lacs) as against the paid up
share capital of Rs.2670.19 Lacs (Previous Year Rs.2670.19 Lacs),
pending the finalization and adoption of the business re-engineering
plans [refer Note 21(c)(iii) below], these financial statements have
been prepared on a going concern basis and impairment loss, if any,
will be accounted for as and when the business re- engineering plans
are implemented.
b. In view of the accumulated losses, no transfer has been made to the
Debenture Redemption Reserve in respect of secured and unsecured
Non-Convertible Debentures.
c. Restructuring and Net Worth Status:
i. The Net Worth of the Company has been fully eroded and is negative
as on March 31, 2012. The management had been advised that since
certain conditions as per the Sick Industrial Companies (Special
Provisions) Act, 1985 were not being met, the Company was not eligible
to a make reference to BIFR. In the event of any change in the status
inter alia arising out of developments in the pending legal case [refer
Note (ii) below], appropriate steps will be taken in this regard.
ii. The validity of the closure declared by the Company with effect
from June 26, 2008, under the relevant provisions of The Industrial
Disputes Act, 1947, has been challenged before the Industrial Court by
the employees' union and the matter is pending before the Hon'ble
Court.
iii. The management has been exploring various options for
restructuring the business and finances of the Company, including the
recommencement / relocation of its manufacturing operations. During the
year, the Company has been able to settle the debts of certain parties,
mainly working capital lenders and the management is exploring various
options for settlement of the balance debt.
iv. As part of restructuring, the Company had earlier entered into an
arrangement for the assignment of the leasehold rights of its land.
However, certain issues have affected its implementation and the
management is pursuing the matter. The advance received has however
been utilized, inter alia, to settle certain liabilities of the
Company.
v. A promoter group company has given corporate guarantees and a
Director of the Company has given personal guarantees in favor of the
Banks / their Assignees. Amount due to Banks is Rs. NIL (Previous Year
Rs. 886.70 Lacs) and amount due to Assignee is Rs 508.14 Lacs (Previous
Year Rs.508.14 Lacs).
vi. During the year interest liability on all borrowings including
debentures has not been provided since revised terms are in the process
of being negotiated with the lenders and the management expects that
the liabilities already being carried are adequate.
vii. The Zero Coupon NCDs issued to and the Term Loans from IFCI Ltd.
as mentioned in Note 6(b)(iii) - "Other Current Liabilities" were
assigned to a third party by IFCI Ltd. The assignment has been
challenged by the Company and the matter is pending before the Delhi
High Court.
d. Revaluation
i. The Company had revalued the land, building and certain plant and
machinery as on April 1, 1996 based on the valuation made by M/s P.C.
Gandhi & Associates, an independent firm of consulting Engineers,
Surveyors and Government Approved Valuers vide their report dated 30th
April, 1997. Accordingly, the original costs of the above assets as on
April 1, 1996 have been restated at estimated market value arrived at
after adjusting the depreciation on the estimated replacement cost. The
resultant increase in net book value arising on revaluation amounting
to Rs. 4285.93 Lacs was transferred to Revaluation Reserve Account
during the period ended 31st August, 1997. The following re-valued
amounts remain substituted for the historical cost in the gross block
of fixed assets:
ii. Revaluation Reserve amounting to Rs. 4285.93 Lacs had been adjusted
against the then accumulated losses pursuant to the scheme of
restructuring approved by the Hon'ble High Court of Bombay vide its
order dated April 23, 2001. Depreciation is, however, being provided on
the revalued amounts.
ii Arrears of Fixed Preference Dividend (Including Dividend Tax) 56.07
49.79
iii Liability as may arise in respect of matters referred to in Note
21(c) above and further interest / liability / penalty if any as may
arise in respect of matters referred to in Note 21 (e){i) above -
amounts not ascertainable
e. i) In the opinion of the management, Current and Non-current
Assets, Long Term and Short Term Loans and Advances
are realizable at a value, in the ordinary course of business, which is
atleast equal to the amount at which these are stated, and provisions
for all known and determined liabilities are adequate and not in excess
of the amounts stated.
ii) The accounts of certain Trade Receivables, Trade Payables, Loans
and Advances and Lenders are however subject to formal confirmations /
reconciliations and consequent adjustments, if any. The management does
not expect any material difference affecting the current year's
financial statements on such reconciliation / confirmation.
f. Details of transactions with related parties as identified by the
management in accordance with Accounting Standard - 18 of the Companies
Accounting Standard Rules, 2006 are as follows:
(i) Key Management Personnel - Wholetime Director : Mr. S. P. Gupta
(ii) Associates - ISG Traders Limited, Kavita Marketing Pvt. Ltd. and
Shubh Shanti Services Ltd.
g. After the resignation of the Company Secretary w.e.f. June 30,
2007, the Company continues to make concerted efforts to appoint a
Company Secretary as required under Section 383A of the Companies Act,
1956.
h. Amount overdue to be credited to Investor Education Protection Fund
is Rs. 164.69 Lacs. The above excludes Rs. 57.67 Lacs interest on
Debentures being unfunded.
i. The Company was using the pre-revised Schedule VI to the Companies
Act 1956 for the preparation and presentation of its financial
statements upto the year ended 31st March 2011. During the year ended
31st March 2012, the revised Schedule VI notified under the Companies
Act 1956 has become applicable to the Company. The Company has
reclassified the previous year's figures to confirm to this year's
classification. The adoption of the revised Schedule VI does not impact
revenue recognition and measurement principles followed for the
preparation of the financial statements
Mar 31, 2010
1. Although the accumulated losses as at the year end amounted to
Rs.360,406,682 (Previous Year Rs.250,216,183) as against paid up share
capital of Rs.267,019,990, (Previous Year Rs.267,019,990) these
financial statements have been prepared by the Management on a "going
concern" basis taking into account the financial support of promoters/
shareholders and the various revival / restructuring options being
actively pursued by the management, including relocation of
manufacturing operations.
2. There was a fire on October 24, 2006 in the finishing area of the
plant resulting in destruction of fixed assets. The amount spent in
respect of repair / replacement of the damaged / destroyed fixed
assets, which was disclosed under the head Capital Work In Progress
during 2007-08, has been adjusted against final settlement of the
insurance claims in the previous year.
3. In view of accumulated losses, no transfer has been made to the
Debenture Redemption Reserve in respect of secured and unsecured Non
Convertible Debentures.
4. Restructuring and networth status
a) After the CDR Rework proposal was rejected by the lenders, the
Company had declared formal closure of its manufacturing operations
with effect from June 26, 2008 as per the relevant provisions of The
Industrial Disputes Act, 1947. The legal dues and compensation payable
to the workmen affected by the closure have been duly provided for in
the accounts for the previous year. The employees union had preferred
to move the Industrial Court on the issue and the matter is still
pending before the Honble Court.
b) Interest liability has not been provided on assigned loans and
debentures as revised terms are in the process of being negotiated and
in the opinion of the management, no further liability is expected.
c) During the year ended March 31, 2009 the Company had obtained the
approval of shareholders through postal ballot for a resolution
proposed as per Sec 293 (1) (a) of The Companies Act, 1956. A
shareholder had filed a petition before the Honble Company Law Board
opposing the postal ballot exercise carried out by the Company. The
Honble CLB, while allowing the postal ballot process to be completed
and results to be declared, restrained the Company from disposing of
any of its fixed assets and subjected the result of the postal ballot
to the final outcome of the petition. The petition is still pending
before the Honble CLB Bench.
d) The Company continues to actively pursue the possibility of
establishing manufacturingoperations at another site offering better
competitive advantages in terms of supply chain logistics, input
availability and cost. The Management expects to arrive at some
preliminary conclusions on this option during the year.
e) As part of restructuring, during 2008-09 the Company had also
entered into an arrangement for assignment of lease hold rights of its
land and part advance received has been utilised, inter alia, to settle
certain liabilities of the company.
f) The networth of the company as fuUy eroded during the year ended
March 31, 2010. However, the management as received legal opinion to
the effect that no reference need to be made BIFR as certain conditions
required for the same as per the Sick Industrial Companies (Special
Provisions) Act, 1985 are not applicable to the Company under the
present circumstances.
5. Revaluation
(a) The Company had revalued the land, building and certain plant and
machinery as on April 1, 1996 based on the valuation made by M/s P.C.
Gandhi & Associates, an independent firm of consulting Engineers,
Surveyors and Government Approved Valuers vide their report dated 30*"
April, 1997. Accordingly, the original costs of the above assets as on
April 1, 1996 have been restated at estimated market value arrived
after adjusting the depreciation on the estimated replacement cost. The
resultant increase in net book value arising on revaluation amounting
Rs. 428,593,000 was transferred to Revaluation Reserve Account during
the period ended 31 st August, 1997. The following re-valued amounts
remain substituted for the historical cost in the gross block of fixed
assets:
6. Contingent Liabilities not provided for in respect
of:
Year ended Year ended
31 st March,
2010 31 st March,
2009
Rupees Rupees
a) Outstanding Guarantees given by
banks 1,084,000 - 1,084,000
b) Claims against the Company relating
to (including interest
or penalty upto the date of demands-
Excise Duty 6,226,499 6,226,499
Sales Tax 5,437,647 5,437,647
Cess Liability 2,835,224 2,835,224
MIDC Charges 25,524,142 25,524,142
Suppliers 1,681,414 1,681,414
c) Other Matters 125,000
125,000
d) Arrears of Fixed Preference Dividend
(Including Dividend Tax) 4,351,430 3,728,000
e) Liability as may arise in respect of matter as referred in 4(a)
above and further interest liability/penalty if any as may arise jn the
matters mentioned in para 6(b) above, amount not ascertainable.
7. (a) Duncans Industries Limited has given corporate guarantees
favoring consortium banks for Rs. 154,100,000
(Previous year Rs.154,100,000) for Companys working capital facilities
and amount due to the banks/other is Rs.88,988,010 (Previous year Rs.
88,919,146) including FITL Rs.11,611,718 (Previous year Rs.11,611,718)
Letters of Credit and Bank Guarantees Rs. 1,084,000 (Previous year Rs.
1,084,000).
(b) All the Bank Working Capital Loans (including interest accrued and
due) have been / are being personally guaranteed by a director of the
Company.
8. (a) In the opinion of management, Current Assets, Loans and
Advances have a value on realization in the ordinary
course of business at least equal to the amount at which they are
stated.
(b) The accounts of certain Sundry Debtors, Sundry Creditors, Banks,
Advances and Lenders are subject to confirmation/reconciliations and
adjustments, if any. The Management does not expect any material
difference affecting the current years financial statements.
9. a) Deferred Tax Asset/Liability
The Company has recognize the revised net deferred tax asset in
accordance with Accounting Standard 22 - "Accounting for Taxes on
Income" issued by The Institute of Chartered Accountants of India on
the basis of virtual certainty. The Management is of the opinion that
there will be sufficient future income against which such deferred tax
assets will be fully realised.
10. Disclosures as required by Accounting Standard 19 "Leases" a)
Finance Lease where Company is a lessee
The Company has entered into lease arrangement for vehicles with banks.
The lease arrangements are non- cancelable finance leases.
11. Details of transactions with related parties as identified by the
management in accordance with Accounting Standard -18 of the Companies
Accounting Standard Rules, 2006 are as follows:
(1) Key Management Personnel:
Whole Time Director Mr. S. P. Gupta
(2) Associates/ Group Companies with whom the company has entered into
the transaction during the year: ISG Traders Limited, Shubh Shanti
Services Limited
12. After the resignation of Company Secretary w.e.f June 30, 2007,
the Company is making concerted efforts to appoint a Company Secretary
required to be appointed under Section 383A of the Companies Act, 1956.
13. Amount outstanding to be credited to Investor Education Protection
Fund is Rs.7,520,885. Further based on a legal opinion obtained by the
Company, interest on debentures outstanding for more than 7 years
aggregating to Rs. 8,948,469 (Previous Year Rs. 8,330,424) has not been
included in the aforesaid amount as the Debenture Holders have
rescheduled the payment of the abovementioned amount vide resolutions
passed in Debenture Holders General Meetings tlated August 4, 2003 and
June 15, 2006.
14. The Company is primarily engaged hi one Segment i.e. EPDM rubber.
15. (a) Raw Materials and Packing Materials Consumed, Consumption of
indigenous and imported raw material and packing materials, Consumption
of indigenous and imported stores:
16. Figures of the previous year have been re-grouped/re-arranged
wherever necessary to conform to current years presentation.