Mar 31, 2014
I) That the Faridabad unit & Alrnadabad unit are not working properly
since 2C11 due to labor trouble and the Stocks being in the closed
units are almost depleted the self life is over & n most of the cases
the consignments lying in the unit are outdated or Damage or
unbalanced, therefore the Company the valued The same at The only
scrap realizable value.
II) Material for Navistar Inc, USA supplied to CAPCI (USA) on
Navistar's consignment bas s have been reshipped to the Company in
India due to refusal to lift material. Company has not been in a
position to get The container released from port Author ties & also has
not boon able to pay other related dues eg: Custom Duty, Warehousing
and incidental changes to various authorities for which Company has
made several requests to the bankers in various consortium meeting tc
cooperate and release sanctioned limits. Company has not bean
supported by the Banks financially is getting the Material released.
The Banks have so far not cooperated, hence materials are still lying in
the docks or abandoned in USAS may be auctioned by the concerned
authorities in due course for recovery of the is dues. The Company is
made to suffer duo to supportive approach and non-disbursement of
necessary and essential payments
III) Company had incurred huge expenditure to the extent of Rs.o7 Crore
(Approx) in developing Hi the Clutches with the help of leading
Technology Institutions of the Country under the aegis of CSIS under
the NIMTLI Program of Dept of Science & Technology. Govt of India.
Shifting or existing Manufacturing Plant from Faridabad to B hi wadi,
is likely to take time and requires resources to re-establish the
Research facilities. hiring or Competent professionals, retrieval ordeal
Tor research Work and sustain activities pursuant to theis Research &
Development already done which has reached the stage of Lab to Market
"he Company needs substantial funds to take benefit of Technology as
developed so to reach production stage i.e. from Lab to Market. In the
present scenario and considering unsupportive approach of Banks in
releasing funds even for essential payments, it has become impossible to
carry on research work to terminal point. The Research took 5 to 6
years and now product has to be established in the market. Due to
financial constraints and in view of non-availability of funds. the
expenditure on research had to abandon and realisable value is nil. .
The Current state of capitalized value of Research & Development
expenditure docs not reflect the true value of the Assets in the
Balance Sheet as Readable Economic value is almost nil at the moment.
In licht of above, the Board has decided to reflect the true state of
affairs in the Balance sheet and thought it present to write off these
expenses standing at Rs. Sfi.79 Crore.
IV) Settlement agreement has been entered into with the Workers on
08.07 2013 but amount of claim/ settlement is yet to bad. identified,
matter is pending adjudication with Additional Chief Secretary. Labor
& Employment. Govt of Haryana and other forums for the interpretation
of the terms of the Agreement.
V) The Company has been showing debts outstanding against original
Equipment Markets segment. These outstanding debts are on account of
non- settlement of Warranty Claims forwanded by the Customers of
earlier years since incorporate on of the Company. During the year, the
Company has provided for Rs. 55.00.01,072' on account of Doubtful Debts
in the Balance Sheet so far and Balance warranty claims yet to be
determined to be determined & be provided for. Had the company provided
the warranty claims in respect we preceding financial year, its loss
would have increased and Sundry Debtors would have reduced
correspondingly.
VI) Company has not made provision (or the Employee Benefit Expenses,
which will be settled on cash basis as & when liabilities to which will
arise.
VII) Notes to financial statements form an integrate part of financial
statements.
Mar 31, 2013
I. SECURED LOANS
a) Nature Of Sec unity
i) Term Loan from RIICO
The company has availed project term simian of Rs. 3800.00 lacs from R11
CO i. e. E2S .951 acts against Land aid 2 81.25 lacs swap ping of term
loan from Axis Bank & balance Rs. 2683.80 lacs for Duding and Plants
Machinery stands. Disbursed Rs.3513.1S Lacs up to 31.03.2013 Secured by
way of equitable mortgage/ hypothecation of fixed assets present
Suture of the company sky pari-passu first charge fin terms of
Inter creditor and Security Sharing Agreement: executed with DEC.
Germany on 19.12.2008) & guaranteed by Managing Director.
ii) External Commercial Borrowing (ECB)form DEO, Germany
The Company has executed CCD Loan Agreements viz Loan Agreement-1 dot,
18,12.2012 for US $ 6 Mn, [FC Expenditure] and other Loan Agree merit-
II at. 07.07.2003 for US $ 4 Month. {stands disbursed on 11.02.2003)
[Rupee Expenditure] with M/s. Deutsche In fastenings- and
En wick lungs Is haft shah, Facial Republic of Germany, for capacity
ex pansies & modernization. The above Loan is secured by first ranking
mortgage on the present and Tulare immovable assets and first ranking
phone line on all present and future movable assets (other than
current assets and stocks).
iii} Term Loan from ICICI Bank Ltd.
Secured by hypothecation of specific assets purchased there against and
guaranteed by Managing Director Scoured by an exclusive charge by way
of hypothecation on all movable properties under the Sponsored Research
& Development program of World Bank (SPREAD) under the agreement dated
Hot August, 2013.
iv} Term Loans from Reliquary Fives Ltd.
The Company has been san cottoned term loan of Rs. 350.001 lacs from
Relegate Finevest: Limited for purchase of plant & Machinery out of
which only Rs. 276.57 laus was disbursed. This term loan insecure
by hypos healing of specific assets purchased cutoff term loan and
further guaranteed by the Managing Directors Executive Directors of
the Company.
v) Working Capital Loans from banks
Secured by hypothecation of stock of finished goods, semi finished
goods- raw material, consumable stores and book debts of the company.
The3e securities rank pari-passu in favors of venous banks viz. State
Bark of Travancore. Canera Bank, Central Bank of India, State Bank of
India, DBS Bank S Exit Bank. Secured by noncore charge by way of
equitable mortgage of fixed assort* and guaranteed by Managing
Director.
b) Non fund based limits
Assets charged with Bank also cover security for these limits.
II. UNSECUREDLOANS
a) Ministry of Science and Technology under the aegis of CSIR. has
approved a Project under ''NMITL scheme on 30 03.2009 and had san stained
unsecured soft loan of Rs. 1503.55 lacs @ 3% rate of interest abut
of which Rs. 1493.35 lacs stands disbursed.
b) Lending from LIC Mutual Fund stands at Rs. 21.90 Crores Unsecured
Redeemable Non-Convertible debentures of Rs. 10 Lacs each. This was
pronounced surplus un objective, being a Haired from illegal accruals
and other sources. In order to save the interest cost to profitability,
lending was assigned, who took over the said debt and indemnifies
repayment along with interest accruing.
III.RE-LOCATION PROGRAMME
That company has acquired Lessee Hold Industrial Pot measuring SO.3''10
sq.mt from Rajasthan State industry Dove top ferment & Investment
Corporation Ltd. (RIICO), Jaipur vide Plot No. SP2 - 173 & 174, at
Industrial Area Kahrani (Bhiwadi Extn.) Dist, Alwar (Rajasthan) for
relocation of its existing manufacturing unit.
V. CONTINGENT LIABILITIES
2013 2012
Rs. In lacs Re. In lacs
i) Claiming aunts the company
not acknowledged as debts. 540.74 25.93
ii) Disputed Excise duty
(including penalty of
Rs. 215.63 lacs),
under appeal before
Cantonal Excised 421.36 421.36
Service Tax Appellate Tribunal
(Rs.50 lata paid as deposit
and aliens under loan a and
advances Schedule -IX)
iii) Disputed Horn Director
General of Foreign
Trade (DG FT) To issue
show case notice relating
lu not 150.72 150.72
fill full export obligation
iv) income Tax Command notice
issued by ACIT. Company not
acknowledge as debts, appeal
pending 107,00 41,85
before the Humble I TAT.
Delhi v) Cherubs discounted
with Banks - 48.76
vi) Guarantees given by
Banter {excluding liabilities
provided) 224.00 136.10
vii) The company is
contingently I able for
payment of interest on
delayed payments made beyond 27.60 54.56
the appointed day during the financial year as well as on outstanding
amount al the year end to Micro, Small, and Medium Enterprises under
the provisions of Section 16 of The Small, and Medium Enterprises
Development Act. 2006.
VI. CURRENT ASSETS, LOANS AND ADVANCES
i) Basis coquinas five particulars given below under item XIV is as
under;
(1) Producing figures have-been ascertained on the basis of production
report summaries. The opening and closing balances of finished goods
are based on stock records and physically verified inventories. Sales
quantities have been furnished or the basis of sales invoices.
(2) The quantities of different classes of raw materials and components
consumed law heed cervix/eri by position a separate ledger, the opening
Lilies & purchase ad deducing there from thing stock. The qualified
for differed Learns have no: been ascertained from stock cams. The
Company is still to traduce a procedure for correlation of materials
costumed with production.
(3) Stock of semi - finished, raw material and finished goods includes
slow moving and non-moving stock of Rs, 1.35 lacs (16.27lacs). In the
opinion of the Management. reduction is considered necessary in the
value of the stocks.
(O Semi -finished goods have been ascertained on the basis of physical
verification,
(5) Fin is had Goods comprise of varied specifications and inclusion
number of coin pennants. In "the absence of a scientific system of
costing in vogue, value of closing stock is worked out, as in the past,
by reducing from the selling price, an appropriate margin towards
profit & selling expenses.
(6) In the opinion of the Board and to the best of their knowledge and
belief, Value of realization of current assets, loans and advances in
the ordinary course of business would not be less than the amount at
which they are stated in the balance sheet. Balance of person apace
units are subject to confirmation for the respective parties.
(7) The cal a new Kind Sundry Debtors and Sundry Creditors are
subjecting information.
(8) During the financial year 2007-C8, the company incurred an amount
of Rs. 31.&B Crore the development of product for Ws. Navistar Inc,
Chicago, IL, USA. However, the same has neither capitalized
Fortran''s formed the same to the Statement of Profit 8 Loss, as they had
no recognized the product manufactured by the company and the case Is
pending with the US Court.
Mar 31, 2012
I. SECURED LOANS
a) Nature Of Security
i) Term Loan from RIICO
The company has availed project terms loan of Rs. 3800.00 lacs from
RIICO i.e. 828.95 lacs against Land and 281.25 lacs swapping of term
loan from Axis Bank & balance Rs. 2689.80 lacs for building and Plant &
Machinery stands. Disbursed Rs.3226.16 Lacs upto 31.03.2012. Secured by
way of equitable mortgage / hypothecation of fixed assets present &
future of the company by pari-passu first charge (in terms of
Intercreditor and Security Sharing Agreement executed with DEG, Germany
on 19.12.2008) & guaranteed by Managing Director and secured by
pari-passu second charge on current assets present & future.
ii) External Commercial Borrowing (ECB) from DEG, Germany
The Company has executed ECB Loan Agreements viz Loan Agreement - I dt.
18.12.2007 for US $ 8 Mn. [FC Expenditure] and other Loan Agreement -
II dt. 07.07.2008 for US $ 4 Mn. (stands disbursed on 11.02.2009)
[Rupee Expenditure] with M/s. Deutsche Infestations- und
Entwicklungsgesellschaft mbh, Federal Republic of Germany, for capacity
expansion & modernisation. The above Loan is secured by first ranking
mortgage on the present and future immovable assets and first ranking
hypothecation on all present and future movable assets (other than
current assets and stocks)
iii) Term Loans from Technology Development Board / ICICI Bank Ltd.
Secured by hypothecation of specific assets purchased there against and
guaranteed by Managing Director. Secured by an exclusive charge by way
of hypothecation on all movable properties under the Sponsored Research
& Development program of World Bank (SPREAD) under the agreement dated
6th August, 2003.
iv) Term Loans from Religare Finvest Ltd.
The Company has been sanctioned term loan of Rs. 350.00 lacs from
Religare Finvest Limited for purchase of Plant & Machinery out of which
only Rs. 276.57 lacs was disbursed. This term loan is secured by
hypothecation of specific assets purchased out of term loan and further
guaranteed by the Managing Director & Executive Directors of the
Company.
v) Working Capital Loans from banks
Secured by hypothecation of stock of finished goods, semi finished
goods raw material, consumable stores and book debts of the company.
These securities rank pari-passu in favour of various banks viz. State
Bank of Travancore, Canara Bank, Central Bank of India, State Bank of
India, DBS Bank & Exim Bank. Secured by second charge by way of
equitable mortgage of fixed assets and guaranteed by Managing Director.
b) Non fund based limits
Assets charged with Bank also cover security for these limits.
II. UNSECURED LOANS
a) Ministry of Science and Technology under the aegis of CSIR, has
approved a Project under 'NMITLI' scheme on 30.03.2008 and had
sanctioned unsecured soft loan of Rs. 1503.55 lacs @ 3% rate of
interest out of which Rs. 1493.35 lacs stands disbursed.
b) Lending from LIC Mutual Fund amounting to Rs. 21.70 Crores, secured
by way of issuance of 217 Nos i.e.(during the year company redeemed 8
Nos of NCD at par) Unsecured Redeemable Non-Convertible debentures of
Rs. 10 Lacs each. This was pronounced surplus on objective, being
attained from internal accruals and other sources. In order to save the
interest cost to profitability, lending was assigned, who took over the
said debt and indemnified repayment along with interest accruing.
III. CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.370.57 lacs (Rs. 746.57 lacs) relating
to purchase of Plant & machinery.
IV. RE-LOCATION PROGRAMME
The company has acquired Lease Hold Industrial Plot measuring 50,340
sq.mt from Rajasthan State Industrial Development & Investment
Corporation Ltd. (RIICO), Jaipur vide Plot No. SP2 - 173 & 174, at
Industrial Area Kahrani (Bhiwadi Extn.) Distt, Alwar (Rajasthan) for
relocation of its existing manufacturing unit.
V. CONTINGENT LIABILITIES 2012 2011
Rs. In lacs Rs. In lacs
i) Claims against the company not
acknowledged as debts. 25.93 22.49
ii) Disputed Excise duty (including
penalty of Rs. 215.68 lacs), under appeal
before Central Excise & Serv- 421.36 421.36
ice Tax Appellate Tribunal (Rs.50 lacs
paid as deposit and shown under loans
and advances Schedule - IX )
iii) Disputed from Director General of
Foreign Trade (DGFT) for issue show
case notice relating to not fill 150.72 150.72
full export obligation
iv) Income Tax Demand notice issued by
ACIT. Company not acknowledge as debts,
appeal pending before 41.95 23.45
the CIT (appeal) - VI
v) Cheques discounted with Banks 48.76 123.73
vi) Guarantees given by Banks
(excluding liabilities provided) 136.10 113.10
vii) The company is contingently liable
for payment of interest on delayed
payments made beyond the ap- 54.56 59.13
pointed day during the financial year
as well as on outstanding amount at the
year end to Micro, Small, and Medium
Enterprises under the provisions of
Section 16 of The Micro, Small, and
Medium Enterprises Development Act, 2006.
VI. CURRENT ASSETS, LOANS AND ADVANCES
i) Basis of quantitative particulars given below under item XIV is as
under;
(1) Production figures have been ascertained on the basis of production
report summaries. The opening and closing balances of finished goods
are based on stock records and physically verified inventories. Sales
quantities have been furnished on the basis of sales invoices.
(2) The quantities of different classes of raw materials and components
consumed have been derived by posting in a separate ledger, the opening
quantities & purchases and deducting there from the closing stock. The
quantities for different items have not been ascertained from stock
cards. The Company is still to introduce a procedure for correlation of
materials consumed with production.
(3) Stock of semi - finished, raw material and finished goods includes
slow moving and non-moving stock of Rs.16.27 lacs (16.05lacs). In the
opinion of the Management, no reduction is considered necessary in the
value of the stocks.
(4) Semi - finished goods have been ascertained on the basis of
physical verification.
(5) Finished Goods comprise of varied specifications and include a
number of components. In the absence of a scientific system of costing
in vogue, value of closing stock is worked out, as in the past, by
reducing from the selling price, an appropriate margin towards profit &
selling expenses.
(6) In the opinion of the Board and to the best of their knowledge and
belief, Value of realization of current assets, loans and advances in
the ordinary course of business would not be less than the amount at
which they are stated in the balance sheet. Balance of personal
accounts are subject to confirmation for the respective parties.
VII. Previous year figures have been regrouped & rearranged, wherever
required to conform to the revised presentation of accounts.
Note: - Figures in brackets are in respect of previous year
VIII. Notes to financial statements form an integral part of financial
statements.
Mar 31, 2010
1) SECURED LOANS
a) Nature Of Security
i) Term Loan from AXIS BANK
Secured by way of equitable mortgage / hypothecation of fixed assets
present & future of the company by pari-passu first charge (in terms of
Intercreditor and Security Sharing Agreement executed with DEG, Germany
on 19.12.2008) & guaranteed by Managing Director and secured by pari-
passu second charge on current assets present & future.
ii) External Commercial Borrowing (ECB) from DEG, Germany
The Company has executed ECB Loan Agreements viz Loan Agreement - I dt.
18.12.2007 for US $ 8 Mn. [FC Expenditure] and other Loan Agreement -
II dt. 07.07.2008 for US $ 4 Mn. (stands disbursed on 11.02.2009)
[Rupee Expenditure] with M/s. Deutsche Investitions- und
Entwicklungsgesellschaft mbh, Federal Republic of Germany, for capacity
expansion & modernisation. The above Loan is secured by first ranking
mortgage on the present and future immovable assets and first ranking
hypothecation on all present and future movable assets (other than
current assets and stocks).
iii) Term Loans from Technology Development Board / ICICI Bank Ltd.
Secured by hypothecation of specific assets purchased there against and
guaranteed by Managing Director.
Secured by an exclusive charge by way of hypothecation on all movable
properties under the Sponsored Research & Development program of World
Bank (SPREAD) under the agreement dated 6th August, 2003.
iv) Working Capital Loans from banks
Secured by hypothecation of stock of finished goods, semi finished
goods raw material, consumable stores and book debts of the company.
These securities rank pari-passu in favour of various banks viz. State
Bank of Travancore, Canara Bank, Central Bank of India, State Bank of
Inodre, Exim Bank & DBS Bank. Secured by second charge by way of
equitable mortgage of fixed assets and guaranteed by Managing Director.
b) Non fund based limits
Assets charged with Bank also cover security for these limits.
2) UNSECURED LOANS
a) Ministry of Science and Technology under the aegis of CSIR, has
approved a Project under NMITLI scheme on 30.03.2008 and had
sanctioned unsecured soft loan of Rs. 1503.55 lacs @ 3% rate of
interest out of which Rs. 1370 lacs stands disbursed .
b) Lending from LIC Mutual Fund amounting to Rs. 25 Crores, secured by
way of issuance of 250 Nos Unsecured Redeemable Non-Convertible
debentures of Rs. 10 Lacs each. This was pronounced surplus on
objective, being attained from internal accruals and other sources. In
order to save the interest cost to profitability, lending was assigned,
who took over the said debt and indemnified repayment along with
interest accruing.
3) CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 2480.95 lacs (Rs. 760.91 lacs)
relating to purchase of machinery.
4) EXPANSION PROGRAMME
The company has acquired Lease Hold Industrial Plot measuring 50,340
sq.mt from Rajasthan State Industrial Development & Investment
Corporate Ltd. (RIICO), Jaipur vide Plot No. SP2 - 173 & 174, at
Industrial Area Kahrani (Bhiwadi Extn.) Distt, Alwar (Rajasthan) for
expansion of its existing manufacturing unit. The company has paid Rs.
3.90 crores as Advance out of total Rs.15.40 crores payable to RIICO
over a period of 5 years as lease charges.
4) The expenditure on product development & training and sales
promotion & brand development carried in the balance sheet as deferred
revenue expenditure are being amortized equally over a period of 5
years. Consequently an amount of Rs. 6.72 lacs (Rs. 6.72 lacs) have
been written off during the current year.
5) CONTINGENT LIABILITIES 2010 2009
Rs. (n lacs Rs. In lacs
i) Claims against the company not
acknowledged as debts. 22.49 24.59
ii) Disputed Excise duty (including
penalty of Rs. 215.68 lacs), under
appeal before Central Excise &
Service Tax Appellate Tribunal
(Rs.50 lacs paid as deposit and
shown under loans and advances
Schedule -IX) 421.36 421.36
iii) Income Tax Demand notice issued
by ACIT. Company not acknowledge as
debts, appeal pending before the CIT
(appeal)-VI 23.45 28.01
iv) Cheques discounted with Banks 158.35 79.82
v) Guarantees given by Banks
(excluding liabilities provided) 100.76 105.22
vi) Technology Development Board
(TDB) - unreconciled balance of
outstanding interest overdue of
short Term Loan from TDB.
However the The company has
requested waiver for the same
on 04.05.2009. 19.45 19.45
vii)The company is contingently
liable for payment of interest on
delayed payment made beyond the
appointed day during the financial
year as well as on outstanding
amount at the year end to Micro,
Small, and Medium Enterprises under the
provisions of Section 16 of The Micro,
Small, and Medium Enterprises
Development Act, 2006. 69.89 78.01
6) CURRENT ASSETS, LOANS AND ADVANCES
i) Basis of quantitative particulars given below under item 17 is as
under;
(1) Production figures have been ascertained on the basis of production
report summaries. The opening and closing balances of finished goods
are based on stock records and physically verified inventories. Sales
quantities have been furnished on the basis of sales invoices.
(2) The quantities of different classes of raw materials and components
consumed have been derived by posting in a separate ledger, the opening
quantities & purchases and deducting there from the closing stock. The
quantities for different items have not been ascertained from stock
cards. The Company is still to introduce a procedure for correlation
of materials consumed with production.
(3) Stock of semi - finished, raw material and finished goods includes
slow moving and non-moving stock of Rs. 23.08. lacs (20.49 lacs). In
the opinion of the Management, no reduction is considered necessary in
the value of the stocks.
(4) Semi - finished goods have been ascertained on the basis of
physical verification.
(5) Finished Goods comprise of varied specifications and include a
number of components. In the absence of a scientific system of costing
in vogue, value of closing stock is worked out, as in the past, by
reducing from the selling price, an appropriate margin towards profit &
selling expenses.
(6) In the opinion of the Board and to the best of their knowledge and
belief, Value of realization of current assets, loans and advances in
the ordinary course of business would not be less than the amount at
which they are stated in the balance sheet. Balance of personal
accounts are subject to confirmation for the respective parties.
7. RELATED PARTY DISCLOSURES -AS-18 a. Related parties and their
relationship
i. Key management personnel
- Mr. V.K. Mehta, Chairman & Managing Director (Promoter)
- Mr. Anuj Mehta, Executive Director (Relative)
- Mrs Pooja Kapur Director (Relative)
b) Transactions with the above parties in the ordinary course of
business.
8. Previous year figures have been regrouped, wherever necessary to
correspond to current year figures
9. Additional information pursuant to para 4C & 4D of para II of
Schedule VI of the Companies Act, 1956.
a) Particulars of capacity, production, Stocks & Sales - Annexure
attached
b) Particulars of Raw Materials & Components consumed.
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