Home  »  Company  »  Ventura Textiles  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Ventura Textiles Ltd.

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) – 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) – 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 –1

Mr. Abhijit Rao Key Management Personnel –2

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 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. 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 bank’s 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 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. 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 Company’s 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) – 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.