Mar 31, 2015
1. The Company has one class of equity shares having a par value of Rs.
10 per share. Each holder of equity share is entitled to one vote per
share. The paid-up equity shares of the Company rank pari- passu in all
respects including dividend. In the event of liquidation of the Company,
the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares
held by the shareholders.
2 Redeemable, Non convertible and Non-Cumulative Preference Shares of
Face value of Rs. 100/- on such terms and conditions including but not
limited as to the rate of dividend, period and manner of redemption as
the Board in its absolute discretion may determine for the purpose of
agmenting the long term resource base of the company.
3. Issued to bankers against their sacrifice (341200 Debentures of
Rs. 1000/- each payable on 31-03-2026)
Working Capital Limit (Paper Divison)
First charge by way of hypothecation of raw materials, stock in
process, finished goods, receivables & other current assets of the
Paper Division ranking pari-passu basis with the consortium members
(OBC, PNB, SYB, IOB & Allahabad Bank).
4. Term Loan (Paper Division)
First charge on the entire fixed assets of the Paper Division present &
future (Excluding PCC) ranking on pari-passu basis. (OBC, PNB, SYB, IOB
& Allahabad Bank, Vijaya Bank). Exclusive charge on all PCC project
assets in favour of Syndicate Bank. Collateral Pari-Passu second charge
on the entire fixed assets of the company (present & future) along with
other consortium member banks.
5. Term Loan-Hotel Division
First charge on present/future blocks assets of Hotel division ranking
pari-passu with other lenders of the project. (OBC, PNB, SYB, IOB &
Allahabad Bank, Vijaya Bank).
6. Collateral
Working capital facilities shall be collaterally secured by way of
Second Charge on entire fixed assets (present & future) of the company
on pari-passu basis with the members of consortium. First charge
against these assets shall continue with term lending banks.
Term loan facilities shall be collaterally secured by way of Second
Charge on entire current assets (present & future) of the company on
pari-passu basis with the members of consortium. First charge against
these assets shall continue with working capital lender banks.
7.
For the Year For the Year
ended as on ended as on
DEFERRED TAX ASSETS /
DEFERRED TAX LIABILITY 31.03.2015 31.03.2014
Deferred Tax Assets (A) - 448,952,191.00
Deferred Tax Liabilities (B)
Net Deferred Tax Asset/
(Liability) (A-B) - 272,679,101.00
8
For the Year For the Year
ended as on ended as on
Long Term Loans & Advances 31.03.2015 31.03.2014
Security Deposit
Unsecured, Considered good 12,404,267.63 10,242,892.63
Zero Coupon Non-Convetiable
Debentures (Non-Current) 341,200,000.00 341,200,000.00
Total 353,604,267.63 351,442,892.63
9. Issued to bankers against their sacrifice (341200 Debentures
of Rs. 1000/- each payable on 31-03-2026)
(B) OTHER NOTES
10. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE
FOLLOWING :
Name of Name of the Amount(Rs.)
the Statue Dues
Custom & CENVAT 8, 28, 510/-
Central Credit
Excise
Custom & Excise Duty 20,97,503/-
Central on Production
Excise loss
Sale Tax Central Sale 91,437/-
tax
Excise Law Duty on 26,135/-(Plus
Waste Interest
26,135
Penalty)
Excise Law Duty on 1,73,115/-(
Waste Plus Interest
and 1,73,115)
Excise Law Duty on 1,58,816/-
Waste (Plus Interest)
Excise Law SCN for Duty 14,62,96,594/-
of excise on (Interest and
paper board Penalty)
Service Tax Demand of 90,11,674/-
Law Service Tax 21,458/-
Hotel 15,393/-
(Interest &
penalty)
Service Tax SCN for 1,64,00,749/-
Law Service Tax (Interest &
from Hotel penalty)
Excise Law Departmental 30,80,824/-
Appeal
against refund
order of
Newsprint
Excise Law Paper 13,28,43,130/-
Division- ( Interest
Newsprint- Penalty)
SCN
Excise Law Paper Division 5,83,68,368/-
Newsprint- (Interest
SCN Penalty)
Name of Period to Status/Forum
the Statue which the where Dispute is
amount Pending
relate
Custom & 2006 Custom & Central
Central Excise Department
Excise has filed appeal in
Allahabad high
Court.
Custom & 2005-06 Addl. Commissioner
Central of Excise show
Excise cause notice
pending
Sale Tax 2010-11 Demand due U/S
28(1) is not paid yet.
May 12,2014
Excise Law Sept 2010 Appeal (A No.
to April E/3763/2012) has
2011 been filed against
the Show cause
Notice
(dt. 8.8.2011)
Excise Law Feb 2009 Appeal (A No.
to August E/2162/2012) has
2010 been filed against
the Show cause
Notice (dt.
9.12.2010)
Excise Law 2004-05 to Appeal (A No.
2007-08 E/2039/2011) has
been filed against
the Show cause
Notice (dt.
29.04.2009)
Excise Law Letter sent to
Commissioner ,GZB
to refer withdrawal
of SCN
2006-2010 Tribunal Delhi, Stay
Service Tax Granted and stay
Law extended.
Service Tax 2010-2011 Order Passed by
Law Comm. And Appeal
filed before Tribunal,
Delhi on 27.08.2013
Excise Law Tribunal Delhi, Next
Hearing Date yet to
be notified
Excise Law The company is
under preparation of
Reply
Excise Law The company is
under preparation of
Reply
Total Export Obigation Rs. 50,31,14,020/-
Export Turnover /Earning in Foreign Rs. 38,38,83,983/-
Currency up to 31-03-2015
Export Turnover yet to achieve Rs. 11,92,30,037/-
11. On April 8, 2014, a SIB search by Sale Tax Department of Uttar
Pradesh was conducted at Paper Division of the company some loose
papers consisting challans etc were taken in customer by the department.
Further no tax demand has been raised yet.
12. REMUNERATION PAID TO AUDITORS:
Particular Current Year Last Year
As Statutory Auditors 2,45,000/- Fee 243089/- Service
Service Tax 30282/- Tax 30045/-
Tax Audit Fees 55,000/- Fee 55000/- Service
Service Tax 6798/- Tax 6798/-
In other matter NIL NIL
13. In the opinion of the management, current assets, loans and advances
are of the value stated if realised in the ordinary course of business
except otherwise stated. The provision for all the known liabilities
is adequate and not in excess of the amount considered reasonable.
14. During the year company has suffered loss & hence no provision for
taxation has been made for the year ended 31.03.2015 in accordance with
the provision of Income Tax Act, 1961.
15. Remuneration paid to the Directors of the company is as under:
Particular Current Year Last Year
Mr. Pradeep Kumar Jain 720000.00 -
Mr. Parmod Jain 480000.00 -
Mr. Abhey Jain 480000.00 -
Mr. S. P. Chaturvedi 586400.00 -
16. INCREASE IN AUTHORISED CAPITAL
During the year there is no increase in authorized capital of the
company
17. DEBTORS
The debtors outstanding as on 31.03.15 are inclusive of debtors
amounting to Rs. 2348.49 lakhs which are due for more than six months.
Some of the debtors mentioned above are not presently dealing with the
Company and created disputes for quality/rate out of which, Debtors of
Rs. 110.13 lacs are under litigations.
18. Additional information (as certified by the management and relied
upon by the Auditors)
19. PAPER DIVISION
I) Quantitative information with regard to the licensed & installed
capacity, production & sales of Paper manufactured by the company:
S. No. Particular Current Year Last Year
Qty. in MT Qty in MT.
(a) Licensed Capacity 85000 85000
(b) Installed Capacity NA N.A
20. RELATED PARTY TRANSACTION DISCLOSURE:
The related parties, as defined by Accounting Standard 18 'Related
Party Disclosure' issued by the Institute of Chartered Accountants of
India, in respect of which disclosure have been made, have been
identified on the basis of disclosure made by the managerial persons
and taken on record by the board.
We have identified all the related parties and transactions with all
such information provided to you as under complete in all respects:
21 The Directors have given Interest Free Unsecured Loan to the
Company.
Names of the related parties and descriptions of relationships
Mr. Pradeep Kumar Jain
Mr. Praveen Kumar Jain
Mr. Parmod Kumar Jain
Mr. Abhey Jain
Key Management Mr. Kishan Jain
Mr. RakeshGarg
personne Mr. SubhashOswal
Mr. Naveen Jain
Mr. Bikash Narayan Mishra
Mr. S. P. Chaturvedi
Ms. Monisha Company Secretary
Father of Director
Mr. Salek Chand Jain
Brother of Director
Mr. Vinod Kumar Jain
Wife of Director
Mrs. Veena Jain
Mrs. Rita Jain
Mrs. Asha Jain
Mrs. Monika Jain
Son of Director
Mr. Rishabh Jain
Mr. Ritesh Jain
Relatives of key
Mr. Parv Jain
2 management Daughter of Directors
personnel Mrs. Priyanka Jain
HUF of Father of Director
M/S Salek Chand Jain (HUF)
HUF of Brother of Director
M/S Vinod Jain (HUF)
HUF of Directors
M/S Praveen Kumar Jain (HUF)
M/S Pramod Kumar Jain (HUF)
M/S Pradeep Kumar Jain (HUF)
M/S Abhay Jain (HUF)
Sister of Director
Mrs. Shashi Jain
Firm of Brother in Law of Director
Johri Mal Kama! Kishore
22. SUNDRY CREDITORS:
As per the best available information with the company, No creditor has
intimated their MSME status to us and accordingly there is no amount
outstanding which is payable to small scale industrial undertaking.
Further the company raised claim on its suppliers for
Quality/Quantity/Rate Issues and an amount of Rs. 13,94,87,714/-
included in Short term Loan and Advances as Claim Receivables. The
amounts have not been realised so far and Company is regularly
following up with them and is hopeful of recovery, the same has been
considered as good for recovery. No provision has been created and as
such company will take necessary steps for
realising/recovering/adjustment for the claim as and when settled and
the unrecoverable amount shall be charged in the profit & Loss
Accounts.
23. DEFERRED TAX LIABILITY:
In view of huge accumulated losses of the company and absence of
virtual certainty regarding availability of future taxable income, the
management has decided not to recognise any deferred tax assets for the
year ended March 31,2015.
Further, as per the provisions of Accounting standard 22 Issued by The
Institute of Chartered Accountant of India in the absence of virtual
certainty of future taxable income and considering the losses, the
existing deferred tax assets (net) of Rs 27,26,79,101 recognized in
previous years has been derecognized in the current year.
24. IMPAIRMENT OF ASSETS
In accordance with Accounting Standard 28 'Impairment of Assets' issued
by Institute of Chartered Accountants of India and made applicable from
1st day of April 2004, the company has assessed the potential
generation of economic benefits from its business units as on the
balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business: there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
25. SEGMENT REPORTING
The Company is having two segment Paper division and Hotel Division.
The segment reporting of the company has been prepared in accordance
with Accounting Standard - 17 'Accounting for Segment Reporting' issued
by Institute of Chartered Accountants of India.
26. Primary -
The Company has considered Business segments as primary format for
segment reporting, namely Paper Division & Hotel Division.
27.Geographical Segment
No Geographical segment reporting is required as per the Accounting
Standard 17 issued by the Institute of Chartered Accountants of India.
28.PLEDGING OF SHARES
Presently the promoter of company has pledged the shares in favour of
Lenders to the Company as Security to the tune of 70% of their
shareholding in the Company. Further as per CDR 2nd Re-work package,
balance 30% of their shareholding shall also be pledged and it is under
process of pledging in favour of lenders.
29. CORPORATE DEBT RESTRUCTURING
The Company got approval from CDR EG for second rework vide LOA dated
30th December 2013. The Key Features of the re-work packages is as
under:
30 Cut Off Date : 01st April 2013
b) Reduction in Interest Rate on Term Loans for Paper & Hotel Units,
Additional WCTL and Working Capital Borrowings to 11.50% (base rate of
MI 1.25%).
31 Reduction in Interest Rate on WCTL, FITL to 10.25% (base rate of
MI).
32 Re-payment of principal for Paper Term Loans Rs. 36.58 Cr, PCC - Rs.
24.89 Cr, FITL - Rs. 21.40 Cr, WCTL - Rs. 8.81 Cr to be made in 40
structured quarterly instalments in 10 years commencing form 30.06.13
to 31.03.23.
33 Re-payment of principal for Hotel Loans - Rs. 126.75 Cr to be made
in 52 structured quarterly instalments in 13 years commencing form
30.06.13 to 31.03.26.
34 Re-payment of Additional WCTL - Rs. 48.14 Cr to be made in 36
structured quarterly instalments in 13 years commencing form 30.06.14to
31.03.23.
35 Principal Instalment Repayments during the year are proposed to be
serviced 10% in Qtr I, 15% in Qtr II, 40% in Qtr III and 35% in Qtr IV.
36 Funding of interest for April - June 2013 on Term Loan and WC Limits
of Rs. 8.66 Cr as FITL and to be repaid in 5 years. Interest on FITL
shall be 10.25% i.e. Base Rate of MI
37 Working Capital Limits of Rs. 46 Cr be Continue.
38 100% pledge of Promoter's Shareholding of the Company.
39. The Company to sell surplus land of Rs. 40 Cr approx and its sale
proceeds estimated to be realized Rs. 12 Cr in FY 13-14; Rs. 15 Cr in
FY 14-15; Rs. 7 Cr in FY 15-16 and Rs. 6 Cr in FY 16-17.
40 Promoters to bring in Rs. 9.93 Cr i.e. 25% of Sacrifice of Rs. 39.73
Cr, before implementation of package and Rs. 5 Cr p.a. from FY 2014-15
till all the loans are repaid in full.
41 Bank's Sacrifice: Total Bank's Sacrifice is Rs. 39.73 Cr out of
which; Company will issue Zero Coupon Non Convertible Debentures of Rs.
34.12 Cr redeemable on 31.03.2026. These NCDs shall be secured by first
pari- passu charge on fixed assets of the company and charge shall be
created accordingly.
42. As per CDR Circular, the package should be implemented within 120
days i.e. by April 23, 2014 by all the banks without waiting for their
individual sanctions for the re- structuring package. However banks
wait for sanction from the authorities and the MRA &other documents
were signed on 31st July 2014 and implementation of package in the
system by Banks is pending at their end.
43. As per CDR package, Promoters has inducted Rs. 10.05 Cr against the
stipulated contribution of Rs. 9.93 Cr before 31st March 2014.
44 As per CDR Package, promoters signed and submitted the documents
to the lenders for pledging their balance 30% shareholding.
45. As per CDR Package, The company has to sell surplus land situated at
A-35/1 and A-40/2 Sahibabad Industrial Area, Ghaziabad. The Company
submitted request to UPSIDC for sub-division of plots in August 2014
and entered into agreement to sell with the parties to sell the plots
after sub-division from UPSIDC and collected advance of Rs. 7.85 Cr
during FY 13-14 & FY 14-15. The Sub-division of the plots is pending at
UPSIDC and sales documents of these plots shall be executed after
subdivision permission from UPSIDC.
46. As per CDR package, Non Convertible Debenture (Zero Coupon Bond)
of Rs. 34.12 Cr has been issued by the company on 31st March 2014 in
favour of lenders for their sacrifice repayable on 31st March 2026.
47. Further as per RBI Guideline & CDR Circular on Re-structuring, The
Banks has to classify the re-structured account as sub-standard. Hence
all banks categorized our account as sub-standard.
48. The Company recorded the interest (including the provision) on term
loans and working capital as per interest rate stipulated in the CDR
2nd re-work package.
49. The Accumulated losses of the company as on March 31, 2015 are more
than the net worth of the Company.
50. The Company had filed a case against Shree Laxmipati Balajee
(Trader) for recovery of One Crore before the Honb'le District Court
Ghaziabad, Uttar Pradesh u/s 138 of Negotiable Instrument Act, 1881.
51. Previous year figure have been regrouped and reclassified wherever
considered necessary to make them comparable to those of the current
year.
52. All other information required to be given is either Nil or Not
applicable.
53. Figures in {brackets} pertain to the previous year.
Mar 31, 2014
(A) OTHER NOTES
1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE FOLLOWING
:
(a) CUSTOM AND CENTRAL EXCISE
i) The company had received a Show Cause Notice for claim of CENVAT
CREDIT for the year 2006
and demand of Rs. 8,28,510 was raised. However, the matter was decided
against the department by Honb''le CESTAT. Subsequent to which the
Department filed a Writ Petition before the Hon''ble High Court
Allahabad which is still pending.
ii) The Central Excise Department had issued Show Cause Notice (''SCN")
12/ADC/2007 for excess consumption of waste paper during April 2005 to
September 2005 and demandof Rs. 20,97,503 was raised on the company.
The company has filed an appeal against the SCNwhich is pending before
the Additional Commissioner of Central Excise Ghaziabad till date.
iii) The Central Excise Department had issued Show Cause Notice for
Non-payment of excise duty on waste, subsequently the company filed an
appeal before the Additiontional Commissioner of Central Excise which
was dismissed and following demands were raised upon the company
- Rs. 26,135 (Plus Interest and Penalty) for the period September 2010
to April 2011.
- Rs. 1, 73,115 (Plus Interest and Penalty) for the period February
2009 to August 2010.
- Rs. 1,58,816 (Plus Interest and Penalty) for the period F/Y 2004-05
to F/Y 2007-08.
However, the Company has filed an appealagainst the above order before
Honb''le CESTAT which is still pending for adjudication.
(b) Sale Tax Department issued notice on July 5, 2013 and demand of
Rs. 91,437 was raised as Central Sale Tax for the financial year
2010-11.Companyhasfiled an appeal against the order before Additional
Commissioner Appealwhich is pending for adjudication.
(C)EPCG LICENSE:- Under the EPCG scheme of the Government of India, the
company imported capital goods for its Hotel Project during the year
2008-09 & 2009-10 at import duty rates less than the regular import
duty rates and has saved import duty of equivalent INR Rs.6.38 Crores
on import of capital goods and hence to fulfill an export obligation
(including average basic export) in the next 8 year equal to Rs.51.04
crore.
During the year 2011-12, Paper Division utilized EPCG License 8.89 Lac
on import of capital goods and hence to fulfill an export obligation
(including average basic export) in the next 8 year equal to Rs.71.04
Lac.
Non- fulfillment of obligation will result into company liability to
pay the duty so saved along with interest and such other sum as
specified by the concerned authority.
2. Fixed assets installed and put to use have been certified by the
management and relied upon by the auditors, being a technical matter.
The Company capitalized Inward Freight of Capital Asset at the end of
month.
4. In the opinion of the management, current assets, loans and
advances are of the value stated if realised in the ordinary course of
business except otherwise stated. The provision for all the known
liabilities is adequate and not in excess of the amount considered
reasonable.
5. During the year company has suffered loss & hence no provision for
taxation has been made for the year ended 31.03.2014 in accordance with
the provision of Income Tax Act, 1961.
6. The accounts of the parties are subject to their respective
confirmation
8. INCREASE IN AUTHORISED CAPITAL
The Authorized Share Capital of the Company has been increased from Rs.
64,00,00,000 to 69,00,00,000 divided into 3,90,00,000 equity shares of
Rs. 10/- each and 30,00,000 Preference Share of Rs. 100/- each.
9. ALLOTMENT OF ZERO COUPON NON-CONVERTIABLE DEBENTURES
During the year the Board of Directors of the Company had allotted
341200 Non-Convertible, Zero Coupon Non-Cumulative Redeemable
Debentures of face value of Rs. 1000/- each at par payable on
31-03-2026 as per the CDR Terms and Conditions.
10. Additional information pursuant to the provision of paragraph 3,
4C and 4D of the schedule-VI to the Companies Act, 1956 (as certified
by the management and relied upon by the Auditors)
11. RELATED PARTY TRANSACTION DISCLOSURE:
The related parties, as defined by Accounting Standard 18 ''Related
Party Disclosure'' issued by the Institute of Chartered Accountants of
India, in respect of which disclosure have been made, have been
identified on the basis of disclosure made by the managerial persons
and taken on record by the board.
We have identified all the related parties and transactions with all
such information provided to you as under complete in all respects:
1 Key Management personnel
Mr. Pardeep Kumar Jain
Mr. Praveen Kumar Jain
Mr. Parmod Kumar Jain
Mr. Abhey Jain
Mr. Kishan Jain
Mr. RakeshGarg
Mr. SubhashOswal
Mr. Naveen Jain
Mr. Bikash Narayan Mishra
Mr. S. P. Chaturvedi
2 Relatives of key management personnel
Father of Director
Mr. Salek Chand Jain
Brother of Director
Mr. Vinod Kumar Jain
Wife of Director
Mrs. Veena Jain Mrs. Rita Jain Mrs. Asha Jain
Mrs. Monika Jain
Son of Director
Mr. Rishabh Jain Mr. Ritesh Jain Mr. Parv Jain
Daughter of Directors
Mrs. Priyanka Jain
Ms. Shilpi Jain
HUF of Father of Director
M/S Salek Chand Jain (HUF)
HUF of Brother of Director
M/S Vinod Jain (HUF)
HUF of Directors
M/S Praveen Kumar Jain (HUF)
M/S Pramod Kumar Jain (HUF)
M/S Pradeep Kumar Jain (HUF)
M/S Abhay Jain (HUF)
Sister of Director
Mrs. Shashi Jain
12. SUNDRY CREDITORS:
As per the best available information with the company there is no
amount outstanding which is payable to small scale industrial
undertaking.
13. DEFERRED TAX LIABILITY:
Deferred tax assets and liabilities are attributable to the following
items:
14. IMPAIRMENT OF ASSETS
In accordance with Accounting Standard 28 ''Impairment of Assets'' issued
by Institute of Chartered Accountants of India and made applicable from
1st day of April 2004, the company has assessed the potential
generation of economic benefits from its business units as on the
balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of
15. SEGMENT REPORTING
The Company is having two segment Paper division and Hotel Division.
The segment reporting of the company has been prepared in accordance
with Accounting Standard  17 ''Accounting for Segment Reporting'' issued
by Institute of Chartered Accountants of India.
Primary Â
The Company has considered Business segments as primary format for
segment reporting, namely Paper Division & Hotel Division.
17. CORPORATE DEBT RESTRUCTURING
During the Year Company had requested for second rework proposal to
CDR, and approved by CDR EG at its meeting on 24-12-2013. The package
is under process of implementation by the individual bankers. The Key
Features of the re-work packages is as under:
a) Cut Off Date : 01st April 2013
b) Reduction in Interest Rate on Term Loans for Paper & Hotel Units,
Additional WCTL and Working Capital Borrowings to 11.50% (base rate of
MI 1.25%).
c) Reduction in Interest Rate on WCTL, FITL to 10.25% (base rate of
MI).
d) Re-payment of principal for Paper Term Loans Rs. 36.58 Cr, PCC Â Rs.
24.89 Cr, FITL Â Rs. 21.40 Cr, WCTL Â Rs. 8.81 Cr to be made in 40
structured quarterly instalments in 10 years commencing form 30.06.13
to 31.03.23.
e) Re-payment of principal for Hotel Loans  Rs. 126.75 Cr to be made
in 52 structured quarterly instalments in 13 years commencing form
30.06.13 to 31.03.26.
f) Re-payment of Additional WCTL Â Rs. 48.14 Cr to be made in 36
structured quarterly instalments in 13 years commencing form 30.06.14to
31.03.23.
g) Principal Instalment Repayments during the year are proposed to be
serviced 10% in Qtr I, 15% in Qtr II, 40% in Qtr III and 35% in Qtr IV.
h) Funding of interest for April  June 2013 on Term Loan and WC Limits
of Rs. 8.66 Cr as FITL and to be repaid in 5 years. Interest on FITL.
i) Working Capital Limits of Rs. 46 Cr be Continue.
j) 100% pledge of Promoter''s Shareholding of the Company.
k) The Company to sell surplus land of Rs. 40 Cr approx and its sale
proceeds estimated to be realized
Rs. 12 Cr in FY 13-14; Rs. 15 Cr in FY 14-15; Rs. 7 Cr in FY 15-16 and
Rs. 6 Cr in FY 16-17.
l) Promoters to bring in Rs. 9.93 Cr i.e. 25% of Sacrifice of Rs.
39.73 Cr, before implementation of package and Rs. 5 Cr p.a. from FY
2014-15 till all the loans are repaid in full.
m) Bank''s Sacrifice: Total Bank''s Sacrifice is Rs. 39.73 Cr out of
which; Company will issue Zero Coupon Non pokll Convertible Debentures
of Rs. 34.12 Cr redeemable on 31.03.2026. These NCDs shall be secured
by first pari-passu charge on fixed assets of the company and charge
shall be created accordingly.
18. As per Section 3(1) (o) of the Sick Industrial Company Act, 1985
the company is not a sick industrial company as on 31st March 2014.
19. The Hotel Division of the Company is having exemption from payment
of Luxury Tax for a period of 5 years from 05-11-2009
20. Previous year figure have been regrouped and reclassified wherever
considered necessary to make them comparable to those of the current
year.
21. All other information required to be given is either Nil or Not
applicable.
22. Figures in {brackets} pertain to the previous year.
Mar 31, 2013
1. Fixed assets installed and put to use have been certified by the
management and relied upon by the auditors, being a technical matter.
2. In the opinion of the management, current assets, loans and
advances are of the value stated if realised in the ordinary course of
business except otherwise stated. The provision for all the known
liabilities is adequate and not in excess of the amount considered
reasonable.
3. During the year company has suffered loss & hence no provision for
taxation has been made for the year ended 31.03.2013 in accordance with
the provision of Income Tax Act, 1961.
4. The accounts of the parties are subject to their respective
confirmation
5. Remuneration paid to the Directors of the company is as under:
6. RECLASSIFICATION OF AUTHORISED CAPITAL
The Authorised Share Capital of the Company is reclassified from Rs.
64,00,00,000 divided into 3,90,00,000 equity shares of Rs. 10/- each
and 25,00,000 Preference Share of Rs. 100/- each.
7. ALLOTMENT OF PREFERENCE SHARES
During the year the Board of Directors of the Company had allotted
25,00,000 Non-Convertible, Non- Cumulative Redeemable Preference Shares
of face value of Rs. 100/- each at par.
8. Additional information pursuant to the provision of paragraph 3,
4C and 4D of the schedule-VI to the Companies Act, 1956 (as certified
by the management and relied upon by the Auditors)
I) Quantitative information with regard to the licensed & installed
capacity, production & sales of paper manufactured by the company:
9. RELATED PARTY TRANSACTION DISCLOSURE:
Related party disclosures have been set out in separate statement
annexed to this schedule. The related parties, as defined by Accounting
Standard 18 ÂRelated Party Disclosure'' issued by the Institute of
Chartered Accountants of India, in respect of which disclosure have
been made, have been identified on the basis of disclosure made by the
managerial persons and taken on record by the board.
10. SUNDRY CREDITORS:
Sundry creditors include nil amounts due to small-scale industrial
undertakings. The information regarding small scale industrial
undertakings have been determined to the extent such parties have been
identified on the basis of information available with the Company.
11. DEFERRED TAX LIABILITY:
Deferred tax assets and liabilities are attributable to the following
items:
12. BORROWING COST
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A Qualifying asset is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to revenue. Interest and other borrowing cost amounting Rs.
Nil (Previous year Nil) have been capitalised to the carrying cost of
fixed assets & Capital Work in Progress
13. In accordance with Accounting Standard 28 ÂImpairment of Assets''
issued by Institute of Chartered
Accountants of India and made applicable from 1st day of April 2004,
the company has assessed the potential generation of economic benefits
from its business units as on the balance sheet date and is of the view
that assets employed in continuing business are capable of generating
adequate returns over their useful lives in the usual course of
business: there is no indication to the contrary and accordingly, the
management is of the view that no impairment provision is called for in
these accounts.
14. SEGMENT REPORTING
The Company is having two segment Paper division and Hotel Division.
The segment reporting of the company has been prepared in accordance
with Accounting Standard  17 ÂAccounting for Segment Reporting'' issued
by Institute of Chartered Accountants of India.
Primary Â
The Company has considered Business segments as primary format for
segment reporting, namely Paper Division & Hotel Division.
PLEDGING OF SHARES
The Promoter of Company has pledged the shares in favour of Lenders to
the Company as Security to the tune of 70% of their shareholding in the
Company.
CORPORATE DEBT RESTRUCTURING
Due to the worldwide recession in the Hotel industry the company has
not been in a position to generate revenue as envisaged at the time of
project financing. Therefore the company applied to CDR Cell and the
account of the company is under CDR Mechanism since 01-04-2009. Since
then the Company had two round of Debt restructuring with the
protection of NPV (Net present Value) of future cash flows of interest
and principal. The company is again approaching the bankers for certain
reliefs and concessions and the rework proposal is under their active
consideration.
15. As per Section 3(1)(o) of the Sick Industrial Company Act, 1985
the company is not a sick industrial company as on 31st March 2013.
16. Previous year figure have been regrouped and reclassified wherever
considered necessary to make them comparable to those of the current
year.
17. All other information required to be given is either Nil or Not
applicable.
18. Figures in {brackets} pertain to the previous year.
Note 1 to 27 form an integral part of the Balance Sheet as at 31st
March -2013 and have been authenticated as such.
Mar 31, 2012
1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE FOLLOWING
:
Name Nature of the Amount Period Present Status
of the Dues (Rs.)
Statue
Excise Excise Duty 2097503/- 2005-06 Addl.
Law On Production Commissioner of
Loss Excise Show Cause
Notice pending not
yet decided
With regard to 828510/- Hon'ble Allahabad
amount of CENVAT High Court
Credit of Rs.828510/-
availed from the
purchase made by
the company, as
the question on
genuineness of the
supplier is raised
by the Department
of Excise, for
which the company
has filed an appeal
before the Custom
Excise Service Tax
Appellate Tribunal
which was decided
in favour of the
Company vide order
dated 02/06/06.
The Commissioner of
Custom & Central
Excise, Ghaziabad
has filed an appeal
before Hon. High
Court of Allahabad
u/s 35-G of Central
Excise Act.
Excise Duty on Kachra 158816/- 01-04-08 Matter pending
Law (Waste) (Plus to before Tribunal
15-01-09 not yet decided
Interest)
EPCG Under the EPCG scheme of the Government of India, the
License company imported capital goods for its Hotel
Project during the year 2008-09 & 2009-10 at import
duty rates less than the regular import duty rates and has
saved import duty of equivalent INR Rs.6.38 Crore on import
of capital goods and hence to fulfill an export obligation
(including average basic export) in the next 8 year equal
to Rs.51.04 crore.
During the year 2011-12, Paper Division utilized EPCG
License 8.89 Lac on import of capital goods and hence
to fulfill an export obligation (including average basic
export) in the next 8 year equal to Rs.71.04 Lac.
Non- fulfillment of obligation will result into company
liability to pay the duty so saved along with interest
and such other sum as specified by the concerned authority.
Income A Search and seizure operation was conducted on January 18,
Tax 2007 by the Income Tax Department u/s 132 of the Income Tax
Act, 1961 on the company's administration and production
facilities at 18/31 and 18/41,site IV, Industrial Area,
Sahibabad, Ghaziabad; and the residence of the promoters
at 113/3, Daryaganj, New Delhi & survey operation was
conducted u/s 133A of the Income Tax Act, 1961 on the
Company's Properties at A-35/1, A-40/2, and 64/6, Site IV,
Industrial Area, Sahibabad, Ghaziabad. The Assessment has
been completed with addition of Rs. 15.95 Crores. The
CIT (Appeal) vide its order dated 13-12-2010 has deleted
the addition to the tune of Rs. 15.17 Crore. For the
balance addition of Rs. 0.78 Crore, the company has
filed an appeal before Hon'ble ITAT, Delhi.
2. Fixed assets installed and put to use have been certified by the
management and relied upon by the auditors, being a technical matter.
Capital Work in Progress includes advances for capital assets Rs.Nil
(previous year Nil)
3. In the opinion of the management, current assets, loans and
advances are of the value stated if realised in the ordinary course of
business except otherwise stated. The provision for all the known
liabilities is adequate and not in excess of the amount considered
reasonable.
4. During the year company has suffered loss & hence no provision for
taxation has been made for the year ended 31.03.2012 in accordance with
the provision of Income Tax Act, 1961.
5. The accounts of the parties are subject to their respective
confirmation
6. Remuneration paid to the Directors of the company is as under:
Particular Current Year Last Year
Remuneration Paid Nil Nil
7. RIGHT ISSUE
The Board of Directors of the company in its meeting held on 13th
August 2010 had discussed and approved for rising of funds by the
Company by way of issue of shares or any other securities however the
company had deferred the right issue for the time being.
8. Additional information pursuant to the provision of paragraph 3, 4C
and 4D of the schedule-
VI to the Companies Act, 1956 (as certified by the management and
relied upon by the Auditors)
9. RELATED PARTY TRANSACTION DISCLOSURE:
Related party disclosures have been set out in separate statement
annexed to this schedule. The related parties, as defined by Accounting
Standard 18 'Related Party Disclosure' issued by the Institute of
Chartered Accountants of India, in respect of which disclosure have
been made, have been identified on the basis of disclosure made by the
managerial persons and taken on record by the board.
10. SUNDRY CREDITORS:
Sundry creditors include nil amounts due to small-scale industrial
undertakings. The information regarding small scale industrial
undertakings have been determined to the extent such parties have been
identified on the basis of information available with the Company.
11. BORROWING COST
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A Qualifying asset is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to revenue. Interest and other borrowing cost amounting Rs.
Nil (Previous year Nil) have been capitalised to the carrying cost of
fixed assets & Capital Work in Progress
12. In accordance with Accounting Standard 28 ÃImpairment of Assets'
issued by Institute of
Chartered Accountants of India and made applicable from 1st day of
April 2004, the company has assessed the potential generation of
economic benefits from its business units as on the balance sheet date
and is of the view that assets employed in continuing business are
capable of generating adequate returns over their useful lives in the
usual course of business: there is no indication to the country and
accordingly, the management is of the view that no impairment provision
is called for in these accounts.
13. SEGMENT REPORTING
The Company is maintaining separate records for Manufacturing of Duplex
Board & Writing Printing Paper and News Prints.
The segment reporting of the company has been prepared in accordance
with Accounting Standard - 17 ÃAccounting for Segment Reporting' issued
by Institute of Chartered Accountants of India.
Primary -
The Company has considered Business segments as primary format for
segment reporting, namely Paper Division & Hotel Division.
Geographical Segment
No Geographical segment reporting is required as per the Accounting
Standard 17 issued by the Institute of Chartered Accountants of India.
14. Sundry Debtors and creditors are subject to the confirmations
15. Note to Schedule III of the Balance Sheet (Security for the Term
Loans & Working Capital)
Paper Division
a Working Capital Limit First charge by way of hypothecation of
raw materials, stock in process,
finished goods, receivables & other
current assets of the Paper Division
ranking pari-passu basis with the
consortium members (OBC,PNB, SYB, IOB
& Allahabad Bank).
b Term Loan First charge on the entire fixed assets
of the Paper Division present & future
(Excluding PCC) ranking on pari-passu
basis. (OBC, PNB, SYB, IOB & Allahabad
Bank, Vijaya Bank).
c Term Loan PCC Exclusive charge on all PCC project
assets in favour of Syndicate Bank.
Collateral Pari-Passu second charge on
the entire fixed assets of the company
(present & future) along with other
consortium member banks.
Hotel Division
a Term Loan First charge on present/future blocks
assets of Hotel division ranking
pari-passu with other lenders of the
project. (OBC, PNB, SYB, IOB & Allahabad
Bank, Vijaya Bank).
Collateral
a Working capital facilities shall be collaterally secured by way
of Second Charge on entire fixed assets (present & future) of the
company on pari-passu basis with the members of consortium. First
charge against these assets shall continue with term lending
banks.
b Term loan facilities shall be collaterally secured by way of
Second Charge on entire current assets (present & future) of the
company on pari-passu basis with the members of consortium. First
charge against these assets shall continue with working capital
lender banks.
Pledging of Shares
The Promoter of Company has pledged the shares in favour of Lenders to
the Company as Security to the tune of 70% of their shareholding in the
Company.
16. Previous year figure have been regrouped and reclassified wherever
considered necessary to make them comparable to those of the current
year.
17. All other information required to be given is either Nil or Not
applicable.
18. Figures in brackets pertain to the previous year.
Mar 31, 2010
1.CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE FOLLOWING
Name of the
Statue Nature of the Dues Amount (Rs.) Period Present
Status
Excise Law Excise DutyOn
Production Loss 2097503/- 2005-06 Addl.
Commissioner
of Excise
With regard to
amount of CENVAT 828510/- Honble
Allahabad
Credit of Rs.828510/-
availed from the High Court
purchase made by
the company, as
the question on
genuineness of the
supplier is raised
by the Department
of Excise, for
which the company
has filed an appeal
before the Custom
Excise Service
Tax Appellate
Tribunal which was
decided in favour
of the Company
vide order dated
02/06/06. The
Commissioner of
Custom & Central
Excise, Ghaziabad has
filed an appeal
before Hon. High
Court of Allahabad
u/ s 35-G of
Central Excise Act.
Central
Sales Commercial Tax 617083/- 1996-1997 Honble
Allahabad
Tax Laws The Company has filed
writ petition on High Court
08.01.2004 with Hon.
High Court stay granted
Allahabad against the
process of re- on 08-01-04
assessment in pursuance
of the notice
dated 25.11.2003
under section 21 of
the U.P. Trade Tax Act
for quashing the
circular of CST/ UP
dated 25.01.2003
regarding non inclusion
of stock transfer
in achieving Base
Production U/s 4A .
Hon. High Court has
granted stay on
08.01.2004.
The Company has been purchasing diesel oil against Form 3B on
concessional rate of tax @ 2.50 %. The Commissioner (Trade Tax) issued
a Circular denying the concessional rate of tax to the industry using
diesel oil for generating the power, the company and other companies
filed Writ Petition in Honble Allahabad High Court against the State
of UP to quash the Circular that was decided in favor of the company
and other Petitioners. The State of UP filed an appeal before the
Honble SC of India against order of Honble HC of Allahabad. The
Management of the Company is not actively pleading the case in Honble
SC as there are a number of other respondent also.
EPCG License
Under the EPCG scheme of the Government of India, the company imported
capital goods for its Hotel Project during the year 2008-09 & 2009-10
at import duty rates less than the regular import duty rates and has
saved import duty of equivalent INR Rs.6.38 Crore on import of capital
goods and hence to fulfill un export obligation (including average
basic export) in the next 8 year equal to Rs.51.06 Crore, this includes
Export obligation of Rs. 0.63 Lac for Paper division. Non- fulfillment
of obligation will result into company liability to pay the duty so
saved along with interest and such other sum as specified by the
concerned authority.
Name of the
Statue Nature of the
Dues Amount (Rs.) Period Present
Status
Excise Law Excise DutyOn
Production Loss 2097503/- 2005-06 Addl.
Commiss-
ioner of
Excise
Income Tax
A Search and seizure operation was conducted on January 18, 2007 by the
Income Tax Department u/s 132 of the Income Tax Act, 1961 on the
companys administration and production facilities at 18/31 and 18/41,
site IV, Industrial Area, Sahibabad, Ghaziabad; and the residence of
the promoters at 113/3, Daryaganj, New Delhi & survey operation was
conducted u/s 133A of the Income Tax Act, 1961 on the Companys
Properties at A-35/1, A-40/2, and 64/6, Site IV, Industrial Area,
Sahibabad, Ghaziabad. The Assessment has been completed raising a
Demand of Rs. 9.98 Crores. The demand has been raised without
considering the Advance Tax, Self Assessment Tax of Rs. 2.27 Crores for
which a rectification u/s 154 has been filed and for balance demand the
Company had filed an appeal before the CIT (Appeal).
2. Fixed assets installed and put to use have been certified by the
management and relied upon by the auditors, being a technical matter.
Capital Work in Progress includes advances for capital assets
Rs.3409843.53 (previous year 446719600).
3. In the opinion of the management, current assets, loans and
advances are of the value stated if realised in the ordinary course of
business except otherwise stated. The provision for all the known
liabilities is adequate and not in excess of the amount considered
reasonable.
4. During the year company has suffered loss & hence no provision for
taxation has been made for the year ended 31.03.2010 in accordance with
the provision of Income Tax Act, 1961.
5. The accounts of the parties are subject to their respective
confirmation During the year the Company is having inadequacy of
Profit/Loss U/s 309(5)/198/349. The Company is having Losses during the
year the remuneration is provided in accordance with Part II of
Schedule XIII of the Companies Act, 1956.
6. RIGHT ISSUE The Board of Directors of the company in its meeting
held on 26th June 2008 had discussed and approved for rising of funds
by the Company by way of issue of shares or any other securities.
7. Additional information pursuant to the provision of paragraph 3, 4C
and 4D of the schedule-VI to the Companies Act, 1956 (as certified by
the management and relied upon by the Auditors).
8. RELATED PARTY TRANSACTION DISCLOSURE:
Related party disclosures have been set out in separate statement
annexed to this schedule. The related parties, as defined by Accounting
Standard 18 ÃRelated Party Disclosure issued by the Institute of
Chartered Accountants of India, in respect of which disclosure have
been made, have been identified on the basis of disclosure made by the
managerial persons and taken on record by the board.
9. SUNDRY CREDITORS:
Sundry creditors include nil amounts due to small-scale industrial
undertakings. The information regarding small scale industrial
undertakings have been determined to the extent such parties have been
identified on the basis of information available with the Company.
In the opinion of the management the company expects to generate
taxable income in the coming years, which would enable it to utilize
the unabsorbed depreciation.
10. BORROWING COST
Borrowing Cost that are attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such
assets. A Qualifying asset is one that necessarily takes substantial
period of time to get ready for intended use. All other borrowing costs
are charged to revenue. Interest and other borrowing cost amounting
Rs.133337754/- (Previous year Rs.90181429/-) have been capitalised to
the carrying cost of fixed assets & Capital Work in Progress.
11. In accordance with Accounting Standard 28 ÃImpairment of Assets
issued by Institute of Chartered Accountants of India and made
applicable from 1st day of April 2004, the company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business: there is no
indication to the country and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
12. SEGMENT REPORTING
The segment reporting of the company has been prepared in accordance
with Accounting Standard à 17 Accounting for Segment Reporting issued
by Institute of Chartered Accountants of India.
Primary -
The Company has considered Business segments as primary format for
segment reporting, namely Paper Division & Hotel Division.
Geographical Segment
No Geographical segment reporting is required as per the Accounting
Standard 17 issued by the Institute of Chartered Accountants of India.
13. Sundry Debtors and creditors are subject to the confirmations
14. Note to Schedule III of the Balance Sheet (Security for the Term
Loans & Working Capital) Paper Division a Working Capital Limit
First charge by way of hypothecation of raw materials, stock in
process, finished goods, receivables & other current assets of the
Paper Division ranking pari-passu basis with the consortium members
(OBC, PNB, SYB, IOB & Allahabad Bank).
b. Term Loan
First charge on the entire fixed assets of the Paper Division present &
future (Excluding PCC) ranking on pari-passu basis. (OBC, PNB, SYB, IOB
& Allahabad Bank, Vijaya Bank).
c Term Loan PCC
Exclusive charge on all PCC project assets in favour of Syndicate Bank.
Collateral Pari-Passu second charge on the entire fixed assets of the
company (present & future) along with other consortium member banks.
Hotel Division
a Term Loan
First charge on present/future blocks assets of Hotel division ranking
pari-passu with other lenders of the project. (OBC, PNB, SYB, IOB &
Allahabad Bank ,Vijaya Bank).
ollateral a Working capital facilities shall be collaterally secured by
way of Second Charge on entire fixed assets (present & future) of the
company on pari-passu basis with the members of consortium. First
charge against these assets shall continue with term lending banks. b
Term loan facilities shall be collaterally secured by way of Second
Charge on entire current assets (present & future) of the company on
pari-passu basis with the members of consortium. First charge against
these assets shall continue with working capital lender banks.
15. Previous year figure have been regrouped and reclassified wherever
considered necessary to make them comparable to those of the current
year.
16. All other information required to be given is either Nil or Not
applicable.
17. Figures in brackets pertain to the previous year. Schedule I to
XIX form an integral part of the Balance Sheet as at 31st March -2010
and have been authenticated as such.
Note: Names of the related parties and descriptions of relationships
1. Key Management personnel
Mr. Pardeep Kumar Ja Mr. Praveen Kumar Ja Mr. Parmod Kumar Jai Mr.
Vinod Jain Mr. Abhey Jain Mr. Kishan Jain Mr. Rakesh Garg Mr. Subhash
Oswal Mr. Naveen Jain Mohd Sahid Aftab
2. Relatives of key management personnel
Mr. Salek Chand Jain
Mrs. Asha Jain
Mr. Rishabh Jain
Mr. Ritesh Jain
Mrs. Monika Jain
Mrs. Rita Jain
Mrs. Veena Jain
Mrs. Priyanka Jain
Ms. Shilpi Jain
Mr. Parv Jain
M/S Praveen Kumar Jain (HUF)
M/S Pramod Kumar Jain (HUF)
M/S Pradeep Kumar Jain (HUF)
M/S Vinod Jain (HUF)
M/S Abhay Jain (HUF)
M/S Salek Chand Jain (HUF)