Mar 31, 2010
Nature of Operations
Blue Bird (India) Limited ["The Company"] is engaged in the
manufacturing of Student Books / Exercise Books, Printing and
Publication of books, trading of paper and Commercial Printing etc. The
Company is also engaged in construction activity.
1. Contracts remaining to be executed on capital account and not
provided for Rs. 196.00 Lacs (Previous Year Rs. 519.00 Lacs)
2. Contingent Liability not provided for-
a) Bank Guarantees issued by banks on behalf of the Company Rs. 163.15
Lacs (Previous year Rs.163.15 lacs) for import of Plant & Machinery
against licenses granted under EPCG Scheme for payment of Customs Duty.
b) Other Bank Guarantees - Rs. 46.90 Lacs (Previous Year Rs.48.10 lacs)
c) Guarantee Bonds issued in favour of the Customs Authorities
amounting to Rs. 1524.00 lacs (Previous year Rs. 1,524.00 Lacs) for
fulfillment of export obligations of USD 134.15 Lacs equivalent to
Rs.6,123.13 Lacs for import of machinery against licenses granted under
EPCG Scheme. The Company has to fulfill the said export obligation by
August 06, 2016. The Company has fulfilled export obligations of USD
106.93 lacs upto March 31, 2010, however, the cancellation of the
guarantee bonds to that extent is in process.
d) Fines/Penalties for default in payment of statutory dues (Amount not
ascertainable).
e) Disputed Income Tax demands in respect of earlier years Rs. 22.06
Lacs (Previous Year Rs.22.06 lacs). The amount has been paid under
protest against these demands.
3. Non convertible Debentures were to be redeemed in full latest by
August 31, 2009. The debentures have not been redeemed.
4. Material Consumption is net of sale of raw material of Rs. 192.66
Lacs (Previous Year Nil)
5. Other liabilities include Rs. 2.01 Lacs (Previous year Rs.2.12
Lacs) being amounts refundable to unsuccessful! share applicants in the
public issue and Rs. 3.50 Lacs (previous year Rs. 3.67Lacs) being
dividend warrants not encashed by shareholders. These amounts are lying
in separate bank accounts.
6. The Company, during the year, incurred cash loss. Also it could
not recover its dues from the customers in time. This has resulted into
a cash crunch faced by the Company. Consequently, the Company defaulted
in repayment of interest and principal amounts to its lenders. The
Company has also received notices under Section 433 and 434 of the
Companies Act, 1956 from a lender and a few suppliers for non payment
of their dues. The Company is in negotiations with these parties for
reschedulement / extension of time. The Company is confident of
settling the matter amicably.
The Company has submitted a Corporate Debt Restructuring (CDR) proposal
to CDR cell of Reserve Bank of India, seeking extension of time for
repayment of its borrowings and interest thereon and certain other
concessions effective January 31, 2010. In the said proposal, payment
of all dues has been considered to be made in a phased manner. The
proposal has been admitted by the CDR cell subject to fulfillment of
certain conditions. The Company is confident of compliance of all the
requisite formalities and of getting the proposal approved from CDR
cell. The viability of CDR proposal is assessed by an independent
agency appointed by the lead bank of consortium.
In view of the foregoing, the accounts have been prepared on going
concern basis.
7. Statement of Related Parties Disclosure
A. List of Related parties
Associate Companies N.S. Shares & Investments Private Limited
Ajinkya Hotelling Private Limited
Vastu Housing Finance Corporation Limited
Bhoomiputra Infrastructure Private Limited
Key Management Personnel Nitin Sontakke, Chairman & Managing Director
Apoorv Sontakke, Director Marketing
( Exports) Upto
August 31, 2009
David Kunder, Director Finance
Satish Bhagwat, Director Technical
Santosh Dhankude, Director Production
Relatives of Directors Vidya Sontakke
Apoorv Sontakke - after September 1, 2009
8. The Company has not given or taken any asset on financial lease as
on Balance Sheet date. The Company has taken two manufacturing premises
and commercial premises under cancelable operating leases. The lease
agreements are usually renewable by mutual consent on mutually
agreeable terms. The expenses in respect of operating leases have been
accounted as Administrative Expenses.
9. In the opinion of the management, all the Current Assets, Loans
and Advances are good, recoverable and approximately of the value
stated, if realized in the ordinary course of the business.
10. Debtors and Creditors are subject to confirmation, reconciliation
and consequential adjustments, if any. During the year, the lead bank
of the consortium had appointed an independent firm of Chartered
Accountants to assess the correctness and recoverability of the major
customers covering substantial part of the dues of the Company. The
said auditors have submitted their report.
On assessment of debtors, the management is of the opinion that it may
be able to recover only some partial dues from some of its customers.
Considering this eventuality, a provision for doubtful debts has been
made on estimated basis.
11. Land (Stock in Trade) includes -
(i) Advances paid for purchase of land - Nil ( Previous year Rs.306.03
lacs) (ii) Right to purchase of land acquired under a memorandum of
understanding - Nil (Previous Year - Rs. 67.37 )
12. Disclosure as per AS 15 (As per report received from LIC of India)
The Principal assumption in actuarial valuation of Gratuity (Funded) is
as under Discount Rate 8.00%
Expected rate of return on assets 7.50%
Expected rate of future salary increase 5.00%
13. Previous years figures are regrouped / rearranged wherever
necessary to conform with the current years presentation.
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