Sep 30, 2013
1. Basis of Preparation of Financial Statements
The Financial Statements are prepared as per historical cost convention
and in accordance with the Generally Accepted Accounting Principles
(GAAP) in India, the provision of the companies Act, 1956 and the
applicable Accounting Standards notified under the Companies
(Accounting Standards) Rules, 2006 (as amended). All Incomes and
Expenditure having material bearing on the Financial Statements are
recognized on accrual basis.
Expenditure on R & D, Trademark, development of markets, which are
determined to have a useful life spanning more than one year are
amortized over its useful life.
2. Terms/rights, preferences and restrictions attached to securities -
Equity Shares:
The Company has one class of equity shares having a par value of Rs.
10/- each. Each shareholder is eligible for one vote per share held
except share represented by GDRs. The dividend that may be proposed by
the board of directors is subject to the approval of shareholders in
the ensuing Annual General meeting, except in case of interim dividend.
In the event of liquidation, the equity share holders are eligible to
receive the remaining assets of the company after distribution of all
preferential dues, in proportion to their shareholding.
During the year ended 30th September, 2013, the amount of per share
dividend recognized for distribution to equity shareholders is Rs. Nil
(P.Y. 30th June, 2012 Rs. Nil)
3. The Company has provided for the premium payable on FCCBs for the
current year which has been adjusted against balance of Security
Premium as per Section 78 of the Companies Act, 1956.
Loans and advances from related parties
The company has taken interest free loans from subsidiaries and joint
ventures. The Repayments schedule for the same is not fixed and the
amount is repaid depending on the surplus funds, liquidity and
financial requirement of the company. Accordingly, management is of the
view that these loans are generally repayable after a period of 12
months.
Packing Credit from banks are secured by way of first pari passu charge
on current assets and second pari passu charge on fixed assets of the
company. Carrying interest on Working capital is at 12% to 14%.
Whatever information the company could identify as above were possible
at the year ended only, and in view of this according to the company,
it could not identify payments beyond due date during the year and to
make interest provisions to that extent, due to numerous transactions
concluded during the year as per the agreed terms with the suppliers.
However the company has made due interest provisions over the requisite
year end balances.
4. Earlier Short Term Loans from banks which has been presented as a
current liability as at 30.09.2013, are secured against hypothecation
of current assets of the company. The loan is further secured by
personal guarantee of Managing Director. The Short Term Loans (current
liability as at 30.09.2013) are repayable on demand and carrying
interest at 12% to 14%.
5. *Liability towards Investor Education and Protection Fund under
Section 205C of the Companies Act,1956, Rs. Nil (Not Due as on
30.09.2013/30.06.2012).
6. Working Capital from banks are secured by way of first pari passu
charge on current assets and second pari passu charge on fixed assets
of the company. Carrying interest on Working capital is at 12% to 14%.
7. Term Loan: Earlier Term Loan in Foreign currency from ICICI Bank
which has been presented as a current liability as at 30.09.2013, are
secured by way of First hypothecation charge on pari passu basis over
the fixed assets of the company and second pari passu charge on current
assets of the Company. The loan is further secured by personal
guarantee of Managing Director. Term Loan is carrying Rate of Interest
(at present) at the rate of 4.57%.
Earlier Term Loan in Foreign currency from PNB international Ltd and
Syndicate Bank which has been presented as a current liability as at
30.09.2013, are secured by way of Pledge of Equity Shares of Top Glass
S.p.A, Italy and second pari passu charge on fixed assets of the
Company. The loan is further secured by personal guarantee of Managing
Director. Term Loan is carrying Rate of Interest (at present) from
3.75% to 5.75%.
Vehicle Loan: Earlier Vehicle Loan from banks which has been presented
as a current liability as at 30.09.2013 are secured by way of
hypothecation of vehicles and are repayable over a period of 4 years.
Vehicle loan is carrying Rate of Interest(at present) from 8.91% to
13.25%.
From Financial Institution: Earlier Term Loan from L&T finance limited
which has been presented as a current liability as at 30.09.2013, is
secured by way of hypothecation charge on pari passu basis over the
fixed assets and current assets of the company. Term Loan (current
liability as at 30.09.2013) is carrying Rate of Interest (at present)
at the rate of 12.5%.
Earlier Term Loan which has been presented as a current liability as at
30.09.2013, in Rupee Currency are secured by way of First hypothecation
charge on pari passu basis over the fixed assets of the company and
second pari passu charge on current assets of the company. The loan is
further secured by personal guarantee of Managing Director. Term Loan
(current liability as at 30.09.2013) is carrying Rate of Interest (at
present) from 12% to 14%.
During the period, Review/Restructuring Scheme has been done by the
Allahabad Bank with the Support of consortium member Banks and
repayment schedule has been given to the company for repayment of
outstanding dues. All such loans are secured.
The amounts of loan from Financial Institutions (Secured, Unsecured,
Term Loan, Short Term Funding etc.) have been categorized under Current
Liabilities'' as the Company has defaulted in honoring the repayments on
Scheduled Dates and as on the date of the Balance Sheet, the entire
sums stood categorized as Non-Performing Assets by the said Financial
Institutions and hence ''Payable Immediately'' (Demand Loan).
The outstanding balance is presented as a current liability as at
30.09.2013.
Interest payments on outstanding dues on the Company''s Borrowings which
are shown under the current liability was overdue during the period and
the Management expects that the Company will be able to meet all
contractual obligations from borrowing in the near future.
During the year under report, the Company has acquired further 51%
equity shares in Kemrock Resins Private Limited. The 51:49 Joint
Venture between "GP Chemicals International Holding S.a.r.l" and
"Kemrock Industries and Exports Limited" set up under the name of
"Georgia-Pacific Kemrock International Private Limited" (entity) has
been discontinued w.e.f., 12th March, 2013, with the mutual agreement
of both the partners. The said entity, now being a wholly owned
subsidiary of the Company, has been renamed as "Kemrock Resins Private
Limited".
*The Inventory of Raw Materials, stores & Spares, Work in Progress and
Finished goods has been taken, valued and certified by the management.
The Inventory of Work in Progress has been verified and valued by
Government approved technical agency as the valuation is technical in
nature.
The Company has made project exports for Fiber Reinforced Polymer (FRP)
in various countries. The Company has made total exports for the same
to the extent of Rs. 11,041.36 Lacs. However the Company has not made
reference to appropriate authorities for non-receipt of earnings from
exports of Rs. 9,781.75 lacs since last six months from the date of
Financial statement. Company is of the view that these earning are
recoverable and good and hence no reference to appropriate authorities
or provision in books of accounts is made.
** Margin Money deposits with a caring amount of Rs. 184.43 lacs (P.Y.
Rs. 3,268.49 lacs) are given as margin against Letter of Credit opened
with bank.
8. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided
for)
(Rs.in Lacs)
Particulars As at As at
30th September, 30th June,
2013 2012
Contingent Liabilities
a) Guarantees
Guarantees issued by the bank 106.69 11,721.29
on behalf of the Company.
b) Other money for which Company
is contingently liable
Disputed Tax Demands(not acknowledged)
against which proceedings are pending
before various Tax
Authorities. 496.55 315.16
Litigations against the Company 47.28 52.20
Letter of Credit issued by the Bank Nil 14,590.31
on behalf of the Company.
c)Commitments
Estimated amounts of Contracts 227.01 309.60
remaining unpaid on Capital Account
Defined Benefit Plan
The Company has adopted Accounting Standard 15 (AS-15) (Revised)
"Employee Benefits" which is mandatory from accounting periods starting
from 7th December, 2006. Accordingly, the Company has provided for
gratuity and leave encashment based on actuarial valuation done as per
Projected Unit Credit Method.
The estimate of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
9. Borrowing Costs directly attributable to creation of assets has
been capitalized. The relevant amount is Rs. NIL (Previous Year Rs.
5,433.16 lacs).
10. Balanace of Unsecured Loans, Trade Payables, Trade Receivables,
Loans & Advances, Other Parties, Buyer''s Credit and Letter of Credit
are subject to their confirmations and reconciliation, due adjustment,
if necessary, will be made on receipt thereof. In the opinion of
management, all known liabilities are accounted for and there are no
contingent liabilities other than those disclosed.
11. Segment Reporting
As per Accounting Standard 17, Business Segment has been identified as
per the primary segment and geographical segment has been identified as
the secondary segment as reportable segments of the company. Primary
Segment Information - Business.
Notes :
12. Geographical Segments considered for disclosures are as follows:
* Sales within India includes Sales to Customers located within India.
* Sales Outside India includes Sales to Customers located outside
India.
13. Opening balances have been considered on the basis of the last
year audited balance sheet and the figures of previous year were
audited by a firm of Chartered Accountants other than our firm. Opening
balances have been regrouped/rearranged wherever necessary while
reporting current year financial statements.
14. Certain Balance of Trade Receivable, Trade Payable, Loans &
Advances for Capital Expenditures are non- moving/sticky since more
than 3 years. However, in view of management, the same is
recoverable/payable and hence no provision for the same is made in the
books of accounts.
Jun 30, 2010
1. Figures of previous year have been regrouped / reworked wherever
necessary. The Company has extended its financial year by a period of
3 months beyond 31 st March, 2010 to 30th June, 2010. Accordingly, the
financial results have been prepared for the period of 15 months from I
st April, 2009 to 30th June, 2010 and therefore are not comparable.
2. Contingent Liabilities not provided for: (Amt. in Rupees)
Particulars 15 Months ended As at 31.03.2009
30.06.2010
Letters of Credit issued by
Bank on behalf of the Company 118,922,738 503,232,079
Guarantees issued by Bank on
behalf of the Company 99,633,485 5,817,771
Estimated amounts of Contracts
remaining unpaid on Capital
Account 79,059,007 417,235,898
Disputed Income Tax Demands (not
acknowledged) against which
proceedings are 6,223,000 1,675,103
pending before Income Tax Authorities
Litigations against the Company 2,185,038 2,185,038
3. (a) The Company has purchased certain assets on deferred credit from
foreign suppliers which is to be paid over a period of 7 years, where,
as per the terms of credit, no interest is payable.
(b) Borrowing Costs directly attributable to creation of assets has
been capitalized. The relevant amount is Rs. 499,330,191/- (Previous
Year Rs. 64,641,498/-)
4. (a) Deferred Revenue Expenditure carried over from the previous year
is deferred and amortized over the period for which the benefit is
estimated to accrue. During the year the amount charged to Profit and
Loss Account is Rs. 970,596/- (Previous Year Rs. 1,222,496/-)
(b) As per section 78 of the Companies Act, 1956, the Securities
Premium Account has been applied in writing off the expenses in
connection with issue of shares to the extent of Rs.
23,670,007/-(Previous Year Rs. 97,347,306/-)
B. Defined Benefit Plan:
The employees gratuity fund scheme managed by a Trust is a Defined
Benefit Plan. The present value of obligation is determined based on
actuarial valuation using the Projected Unit Credit Method which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation for leave encashment is
recognized in the same manner as gratuity.
5. (a) Balances are subject to confirmation and in the opinion of
management, all known liabilities are accounted for and there are no
contingent liabilities other than those disclosed. (b) All loan and
advances, debtors on the balance sheet are good and recoverable in the
opinion of the management and hence no provision there against is made.
6. (a) During the period, Dividend of Rs. 49,24,81II- (Previous year
Rs. 40,54,288/-) pertaining to Financial Year 2008-09 was remitted
outside India to 4 non-resident shareholders holding 32,83,208 shares
in the Company. (b) Further, Interim Dividend of Rs. 32,83,208/-
(Previous Year Nil) pertaining to Financial Year 2009-10 was remitted
outside India to 4 non-resident shareholders holding 32,83,208 shares
in the Company.
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