Mar 31, 2015
1. Contingent Liability: For the Current Period is Rs. 5225.19 Lacs in
the event of default to Asset Reconstruction Company (Previous Year Rs.
5225.19 Lacs).
2. The Company has accumulated losses amounting to Rs.16,34,03,173/-
, which is more than 50% of its Net Worth, which may adversely affect
the future operation of the Company.
3. Estimated amount of Contracts remaining to be executed on Capital
account and not provided for Rs. NIL (Previous Year Rs. NIL).
4. Letters of confirmation of balances have been sent to suppliers
and debtors. Adjustments, if any, shall be made on receipt of
confirmation and reconciliation thereof.
5. Sundry Loans and Advances and other assets are, in the opinion of
management, stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
6. In view of the losses, Managing Director has foregone the salary
and therefore, no provision has been made in the current year.
7. Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the Company's policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
8. Provision for Tax:
In view of the Losses, the Company has not made any provision for
taxes.
9. Segment Reporting :
In terms of Accounting Standard (AS) Â 17, the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
10. Previous Years figures have been re-arranged and re-grouped
wherever necessary.
11. Note 1 to 31 forms an integral part of the accounts and have been
duly authenticated.
Mar 31, 2014
1. The issued, Subscribed and Paid-up capital of the Company has been
reduced from Rs.98.638.570/- toRs.2,46,59,640/- pursuant to 75%
reduction in Share Capital in terms of Hon''ble BIFR Order dated 26th
June, 2013
The Company during the period, issued 1,39,87,325 Equity shares of
Rs.10/- each on Preferential basis in terms of Hon''ble BIFR Order dated
26th June, 2013
2. During the Previous year, the Company''s dues to SBI have been
acquired by JM Financial Asset Reconstruction Company Pvt Ltd (JMFARC).
JMFARC re-structured the debt on a long term basis on the following
terms and conditions :
a. Re-structured debt at Rs.9,10,00,000/- .
b. During the period JMFARC sanctioned additional loan of
Rs.5,00,00,000/-.
3. a. Repayment - Repayable in 34 equal monthly installments beginning
from 30th June, 2014.
b. Interest @ 24% p.a from cut-of date i.e, 28th March, 2013 for
Rs.9,10,00,000/- and cut-of date i.e.17th May, 2013 for
Rs.5,00,00,000/- .
Payable on a monthly basis.
c. Interest is accrued and compounded on monthly basis upto 30th
September, 2013.
4. Debt of the Asset Reconstruction Company is secured by way of
equitable mortgage created or to be created on all the present and
future immoveable properties of the Company and hypothecation of all
the moveable properties including moveable machinery spares, tools and
accessories etc., present and future, subject to prior charge created
and / or to be created in favor of the Company''s bankers on stock of
raw materials,semi finished and finished goods, consumable stores and
other moveables as may be required for working capital requirements in
the ordinary course of business and personally guaranteed by the
Promoter.
5. During the Previous year, the Company''s dues to SBI have been
acquired by JM Financial Asset Reconstruction Company Pvt Ltd (JMFARC).
JMFARC re-structured the debt on a long term basis as mentioned in Note
No.4.1
6. During the year, the Company entered into One Time Settlement of
all its total liabilities of Secured Debentures.
7. The details of amount outstanding to Micro, Small and Medium
Enterprises based on available information with the Company is Nil.
The same has been relied upon by auditor
8. Other Liabilities in the Previous year include Rs.8,00,00,000/-
payable towards One Time Settlement dues of debentures.
9. Other loans and advances include amounts of Cenvat, TDS and
Interest receivable.
10. Deposits include amounts paid to Electricity board, Telephone
department and others.
11. The Company''s factory remained closed on account of illegal strike
since 8th December,2008. During the Previous year the management
settled all the dues of the workers and disposed off the entire
inventories on as- is-where-is-basis, as a scrap.
12. No provision has been made for doubtful debts, as in the opinion of
the management the same is recoverable.
13. Salaries & Wages of Previous year include Rs.2,27,94,505/- towards
full and final settlement dues of workers and staff.
14. Contingent Liability: For the Current Period is Rs. 5225.19 Lakhs
in the event of default to Asset Reconstruction Company (Previous Year
Rs. 5225.19 lakhs).
15. Financial Re-Structuring :
a. On 28th March,2013, JM Financial Asset Reconstruction Company
Private Limited (JMFARC) acquired the entire dues of the Company from
State Bank of India. On 15th May, 201 3, JMFARC, re-structured the
acquired debt at Rs.910 lakhs with effective date of 28th March, 201 3
on a long term basis and waived all the balances with the provision of
re-instatement in the event of default.
b. During the period i.e., on 17th May, 2013 JMFARC sanctioned
additional loan of Rs.500 Lakhs.
c. During the previous year, the Company entered into One Time
Settlement of all its total liabilities of Secured Debentures with
Reliance Capital Limited.
16. Estimated amount of Contracts remaining to be executed on Capital
account and not provided for Rs. NIL (Previous Year Rs. NIL).
17. Letters of confirmation of balances have been sent to suppliers
and debtors. Adjustments, if any, shall be made on receipt of
confirmation and reconciliation thereof.
18. Sundry Loans and Advances and other assets are, in the opinion of
management, stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
19. In view of the losses, the Directors have foregone the salary and
therefore, no provision has been made in the current year.
20. Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the Company''s policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
21. Provision for Tax:
In view of the Losses, the Company has not made any provision for
taxes.
22. Segment Reporting :
In terms of Accounting Standard (AS) - 1 7, the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
23. Previous Years figures have been re-arranged and re-grouped
wherever necessary.
24. Note 1 to 33 forms an integral part of the accounts and have been
duly authenticated.
Mar 31, 2013
1 Contingent Liability: Rs. 5225.19 Lakhs in the event of default to
Asset Reconstruction Company (Previous Period Rs. Nil ).
2 Financial Re-structuring :
a. On 28th March,2013, JM Financial Asset Reconstruction Company
Private Limited (JMFARC) acquired the entire dues of the Company from
State Bank of India. On 15th May,2013, JMFARC, re-structured the
acquired debt at Rs.910.00 lakhs with effective date of 28th March,
2013 on a long term basis and waived off the balance with the provision
of re-instatement in the event of default.
In addition, the Company shall issue to JMFARC equity shares equivalent
to 6% of the Fully Paid-up Equity share capital of the Company.
b. During the year, the Company entered into One Time Settlement of
all its total liabilities of Secured Debentures with Reliance Capital
Limited.
3 Exceptional Income includes the waivers of Rs.31,66,02,335/- from
ARC debt restructuring and Rs.15,81,64,809/-- from One Time Settlement
of the Debentures.
4 Pre-operative Expenses of Rs.25,08,520/- incurred on the proposed
expansion have been written off in the current year, since the project
is deferred indefinitely.
5 During the year, the Company has disposed off the entire inventories
on as-is-where-is-basis as a scrap. Except for the stock records and
the sale bills relating to the sale of scrap, the Company does not have
any other independent source to determine the value of the scrap.
6 Estimated amount of Contracts remaining to be executed on Capital
account and not provided for Rs. NIL (Previous Year Rs. NIL).
7 Letters of confirmation of balances have been sent to suppliers and
debtors. Adjustments, if any, shall be made on receipt of confirmation
and reconciliation thereof.
8 Sundry Loans and Advances and other assets are, in the opinion of
management, stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
9 In view of the losses, the Directors have foregone the salary and
therefore, no provision has been made in the current year.
10 Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the Company''s policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
11 Provision for Tax:
In view of the Losses, the Company has not made any provision for
taxes.
12 Segment Reporting :
In terms of Accounting Standard (AS) Â 1 7, the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
13. The disclosure of transactions with the related parties, as
described in the Accounting Standard-18 issued by the Institute of
Chartered Accountants of India, are given below :
A. Name of the related parties Relationship
Ventura Texports Pvt. Ltd. An Associate
Penny Securities & Investments Pvt. Ltd. An Associate
Indo Gulf Financials Ltd. An Associate
Mr. P. M. Rao Key Management Personnel Â1
Mr. Abhijit Rao Key Management Personnel Â2
14. Earning per Share (EPS) - Basic & Diluted:
The Earning per Share as per the requirement of Accounting Standard
(AS)-20 issued by The Institute of Chartered Accountants of India is
computed as follows:
15. Previous Years figures have been re-arranged and re-grouped
wherever necessary.
16. Note 1 to 36 forms an integral part of the accounts and have been
duly authenticated.
Mar 31, 2012
1.1 Term Loans:
Term Loans from banks are secured by way of equitable mortgage created
or to be created on all the present and future immoveable properties of
the Company and hypothecation of all the moveable properties '(save and
except book debts) including moveable machinery spares' tools and
accessories etc.' present and future' subject to prior charge created
and / or to be created in favor of the CompanyÃs bankers on stock of
raw materials'semi finished and finished goods' consumable stores and
other moveables as may be required for working capital requirements in
the ordinary course of business. The mortgages and charges referred to
above rank pari-passu.The Term Loans from the banks are further
guaranteed by the Managing Director of the Company.
Effective 1st July 2008' the Account has become NPA with SBI and the
bank has not debited any interest thereafter. However' the Company
provided the interest upto 31st March'2009 at the agreed rate at the
time of sanction and thereafter' no interest has been provided.
Accordingly the closing balances of the loan accounts in the books do
not tally with bankÃs confirmation as on 31st March'2012.
1.2 Final Instalment of repayment of bank Term Loans is in the year
2013-14.
1.3 Differential interest under Corporate Debt Restructurring (CDR) was
transferred to Funded Interest.
1.4 Due to stoppage of operations' the promoters infused funds to meet
the day to day expenditure of the Company.
2.1 Working Capital Loans
Working Capital facilities are secured by hypothecation of raw
materials' semi finished and finished goods' stock- inprocess'
consumable stores' book debts present and future' of the Company. The
limits are further secured by way of second pari passu charge on the
fixed assets of the Company and guaranteed by the Managing Director.
In view of the continued illegal strke by the workmen' there has been
no operation in the Working Capital limits during the yearunder review.
2.2Debentures:
Debentures from Reliance Capital Limited are secured by way of
equitable mortgage created or to be created on all the present and
future immoveable properties of the Company and hypothecation of all
the moveable properties '(save and except book debts) including
moveable machinery spares' tools and accessories etc.' present and
future' subject to prior charge created and / or to be created in favor
of the CompanyÃs bankers on stock of raw materials'semi finished and
finished goods' consumable stores and other moveables as may be
required for working capital requirements in the ordinary course of
business. The mortgages and charges referred to above rank pari-
passu.The Term Loans from the banks are further guaranteed by the
Managing Director of the Company.
The debentures were due for redemption in the year 2009-10 and however
the same could not be redeemed due to adverse financial position of the
Company.
3.1 Payment to Auditors include amount towards taxation and other
services.
4. Contingent Liability: Rs. Nil (Previous Period Rs. Nil ).
5. Estimated amount of Contracts remaining to be executed on Capital
account and not provided For Rs. NIL (Previous Year Rs. NIL)
6. Letters of confirmation of balances have been sent to suppliers
and debtors. Adjustments' if any' shall be made on receipt of
confirmation and reconciliation thereof.
7. Sundry Loans and Advances and other assets' are in the opinion of
management' stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
8. In view of the losses' the Directors have foregone the salary and
therefore' no provision has been made in the current year.
9. Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the CompanyÃs policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
10. Provision for Tax:
In view of the Losses' the Company has not made any provision for
taxes.
11. Segment Reporting :
In terms of Accounting Standard (AS) Ã 1 7' the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
11. Previous Years figures have been re-arranged and re-grouped
wherever necessary.
12. Note 1 to 36 forms an integral part of the accounts and have been
duly authenticated.
Mar 31, 2011
1. Contingent Liability: Rs. Nil (Previous Period Rs. Nil ).
2. Estimated amount of Contracts remaining to be executed on Capital
account and not provided for Rs. NIL (Previous Period Rs. NIL).
3. Letters of confirmation of balances have been sent to suppliers and
debtors. Adjustments, if any, shall be made on receipt of confirmation
and reconciliation thereof.
4. The Company is in the process of identifying Small & Medium
Enterprises registered under SME Development Act, 2005 and hence the
amount payable to them as on 31st March is unascertained.
5. Sundry Loans and Advances and other assets are, in the opinion of
management, stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
6. Due to illegal strike by the workers, no wages have been provided
for the workers at the factory for the period ' 8th December, 2008 to
31st March, 2011.
7. In view of the losses, the Directors have foregone the salary and
therefore, no provision has been made in the current year.
8. a) As the Company's factory remains closed on-account of an illegal
strike since 8,h December, 2008,
the management is not in a position to assess the realizable value of
the inventories. Hence, the loss of the Company might be higher than as
stated in the Financial Statements. The management will recognize the
realizable value of the inventories as and when the illegal strike is
called-off.
b) Similarly, the management is not in a position to assess the
impairment loss of the assets. The management will recognize the
impairment loss, if any, as and when the illegal strike is called
off.
9. Effective 1st July, 2008 the Account has become NPA with SBI and
the bank has not debited any interest thereafter. However, the Company
provided the interest up to 31st March 2009 at the agreed rate at the
time of sanction and thereafter, no interest has been provided.
Accordingly, the closing balances of the loan accounts in the books do
not tally with bank's confirmation as on 31st March, 2011.
10. No provision for gratuity and leave encashment benefit has been
provided in the current financial year. However, as per AS-15 the said
liability would have to be provided on the basis of actuarial
valuation.
11. Miscellaneous Expenditure: Pre-operative expenses of Rs.
2,508,520/- incurred on the proposed expansion project have not been
amortized, since the project is not commenced.
12. Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the Company's policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
13. Provision for Tax:
In view of the Losses, the Company has not made any provision for
taxes.
14. Segment Reporting :
In terms of Accounting Standard (AS) - 1 7, the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
i) Retirement benefits on-account of provident fund are- provided for
by payment to Provident Fund Authorities and periodic contributions
are charged to revenue.
ii) Gratuity Liability is provided on estimated basis and charged to
Profit & Loss account, except in the current year where no provision
has been made.
iii) Liability for leave encashment benefit is determined in accordance
with the rules of the Company and charged to revenue, except in the
current year where no provision has been made.
15. The disclosure of transactions with the related parties, as
described in the Accounting Standard-1 8 issued by the Institute of
Chartered Accountants of India, are given below :
A. Name of the related parties Relationship
Ventura Texports Pvt. Ltd. An Associate
Penny Securities & Investments Pvt. Ltd. An Associate
Indo Gulf Financials Ltd. An Associate
Mr. R M. Rao Key Management Personnel -1
Mr. Abhijit Rao Key Management Personnel -2
16. Previous Year figures have been re-arranged and re-grouped
wherever necessary.
17. Schedules 1 to 21 forms an integral part of the accounts and have
been duly authenticated.
Mar 31, 2010
1. Contingent Liability: Rs. Nil (Previous Period Rs. 49.95 Lacs ).
2. Estimated amount of Contracts remaining to be executed on Capital
account and not provided for Rs. NIL (Previous Period Rs. NIL).
3. Letters of confirmation of balances have been sent to suppliers and
debtors. Adjustments, if any, shall be made on receipt of confirmation
and reconciliation thereof.
4. The Company is in the process of identifying Small & Medium
Enterprises registered under SME Development Act, 2005 and hence the
amount payable to them as on 31st March is unascertained.
5. Sundry Loans and Advances and other assets are, in the opinion of
management, stated at the amount realizable in the ordinary course of
business and provision for all known liabilities has been made.
6. Due to illegal strike by the workers, no wages have been provided
for the workers at the factory for the period 8,h December, 2008 to
31s1 March, 2010.
7. In view of the losses, the Directors have foregone the salary and
therefore, no provision has been made in the current year.
8. As the Companys factory remains closed on-account of an illegal
strike since 8th December, 2008, the management is not in a position to
assess the realizable value of the inventories. Hence, the loss of the
Company might be higher than as stated in the Financial Statements. The
management will recognize the realizable value of the inventories as
and when the illegal strike is called-off.
9. Effective Is July, 2008 the Account has become NPA with SBI and
the bank has not debited any interest thereafter. However, the Company
provided the interest up to 31st March 2009 at the agreed rate at the
time of sanction and thereafter, no interest has been provided.
Accordingly, the closing balances of the loan accounts in the books do
not tally with banks confirmation as on 31s March, 2010.
10. The Company has not provided interest of Rs.5,954,795/- on
Debentures in the current financial year and to this extent, the loss
of the company is understated.
11. No provision for gratuity and leave encashment benefit has been
provided in the current financial year. However, as per AS-15 the said
liability would have to be provided on the basis of actuarial
valuation.
12. Exceptional Income includes refund of Electricity charges of Rs.
14,073,485/- due to excess tariff levied and collected in the earlier
years, write-back of provision for expenses of Rs. 722,545/- and
write-off of Sundry balances of Rs. 525,894/-
13. Miscellaneous Expenditure: Pre-operative expenses of Rs.
2,508,520/- incurred on the proposed expansion project have not been
amortized, since the project is not commenced.
14. Deferred Tax:
The Company has not provided for Deferred Tax Asset / Liabilities as
the Companys policy to recognize the asset is only when there is a
reasonable certainty that sufficient future taxable income will be
available.
15. Provision for Tax:
In view of the Losses, the Company has not made any provision for
taxes.
16. Segment Reporting :
In terms of Accounting Standard (AS) - 1 7, the Company is engaged
mainly in the business of manufacturing of Textiles consisting of
Fabric and Yarn. Considering the nature of financial reporting the
Company has only one reportable segment.
17. Additional information pursuant to the provisions of paragraphs 3
and 4 of the part II of Schedule VI of the Companies Act, 1956.
Details of products Manufactured, Opening Stock, Closing Stock, Raw
Materials Consumed, Purchase for Trading and Sales
18. The disclosure of transactions with the related parties, as
described in the Accounting Standard-1 8 issued by the Institute of
Chartered Accountants of India, are given below :
A. Name of the related parties Relationship
Ventura Texports Pvt. Ltd. An Associate
Penny Securities & Investments Pvt. Ltd. An Associate
Indo Gulf Financials Ltd. An Associate
Mr. R M. Rao Key Management Personnel -1
Mr. Abhijit Rao Key Management Personnel -2
19. Previous Year figures have been re-arranged and re-grouped
wherever necessary.
20. Schedules 1 to 21 forms an integral part of the accounts and have
been duly authenticated.