Mar 31, 2015
1. Regency Ceramics Limited was incorporated in 1983. The company
manufactures ceramic floor and wall tiles suitable to domestic and
international markets. The company introduced glazed vitrified tiles,
parking tiles and heavy duty tiles for high traffic areas.
2. The company is operating from its Registered cum Corporate office in
Hyderabad and operates through various Depot network across the
country. The plant is located at Yanam, Union Territory of Puducherry.
The Company delcared lock-out of its plant on 31st January, 2012 and
since then, there is no production.
3. The company has recorded a Net Loss of Rs.1341.06 Lakhs for the year
and has accumulated loss of Rs.9455.42 Lakhs as on 31.03.2015 resulting
in erosion of the net worth. Further, there were no cash flows from the
existing business activities. The company has defaulted in payment of
dues to banks/financial institution and could not comply with the terms
of sanction and/or repayment schedules of the lenders. Consequently,
the lenders recalled the loans and initiated legal proceedings for
recovery of the debts. However, the company is of the opinion that One
Time Settlement package already sanctioned by the lenders where part
amount is already paid and the promoters are in the process of
arranging the balance amount, will be fulfilled shortly.
4. The matter was referred to Board for Industrial and Financial
Reconstruction (BIFR) and the case was registered. The management is
hopeful that BIFR will declare the company sick and grant an acceptable
and viable rehabilitation package to the company.
5. Further, the company is confident of an amicable settlement with the
agitating workers and is also hopeful of receiving insurance claim for
refurbishing the plant and to recommence the plant operations. In view
of the above, the financial statements have been prepared by the
company on a "going concern" basis.
6. The company paid 28.93% of loan Outstanding as One time Settlement
(OTS) amount as a compromise towards settlement of dues to the lenders
and requested for extension of time for balance payment. However, the
lenders issued a Demand Notice under section 13(2) of SARFAESI Act.
State Bank of India on behalf of its bank, Corporation Bank and State
Bank of Travancore issued a Possession Notice (Symbolic) under Rule
8(1) of Security Interest (Enforcement) Rules, 2002 stating that the
undersigned has taken possession of the properties in exercise of
powers conferred on him under section 13(4) of the SARFAESI Act on
04.03.2015 State Bank of Bikaner & Jaipur assigned and transferred the
facilities sanctioned by them together with all underlying securities
interests thereto to Phoenix ARC Private Limited (Trustee of Phoenix
Trust - FY15-5). The lenders filed an application under section 19 of
the Recovery of Debts due to Banks and Financial Institutions Act, 1993
in the Debts Recovery Tribunal, Hyderabad for recovery of their dues.
7. In view of the above, the Long Term Borrowings are considered as
current maturities of long term borrowings and shown under Note No.10
(Other Current Liabilities). Hypothecation / Hire purchase loans under
(D) are repayable within one year and shown under Note No.10 (Other
Current Liabilities)
8. Terms of Repayment and Security
The Short term borrowings are repayable on demand, secured by first
charge on current assets of the company, ranking paripassu with other
member banks and further secured by second charge on the company's fixed
assets ranking paripassu with other member banks of the consortium.
These Borrowings are further secured by i) pledge of 10% equity shares
of the company held by the promoters, ii) tangible collateral security
provided by the promoters equivalent to 15% of the share capital of the
company and iii) personal guarantee of 3 promoter directors of the
company on paripassu basis to all the lenders. Interest is payable on
monthly basis.
9. The company paid 28.93% of loan Outstanding as One Time Settlement
(OTS) amount as a compromise towards settlement of dues to the lenders
and requested for extension of time for balance payment. However, the
lenders issued a Demand Notice under section 13(2) of SARFAESI Act.
State Bank of India on behalf of its bank, Corporation Bank and State
Bank of Travancore issued a Possession Notice (Symbolic) under Rule
8(1) of Security Interest (Enforcement) Rules, 2002 stating that the
undersigned has taken possession of the properties in exercise of
powers conferred on him under section 13(4) of the SARFAESI Act on
04.03.2015 State Bank of Bikaner & Jaipur assigned and transferred the
facilities sanctioned by them together with all underlying securities
interests thereto to Phoenix ARC Private Limited (Trustee of Phoenix
Trust - FY15-5). The lenders filed an application under section 19 of
the Recovery of Debts due to Banks and Financial Institutions Act, 1993
in the Debts Recovery Tribunal, Hyderabad for recovery of their dues.
10. Term Loans under A,B and C above are repayable in quarterly
instalments. Interest is payable on monthly basis.These loans are
secured by first paripasu charge by way of mortgage and hypothecation
over all the fixed assets of the company, both existing and future,
further securedby second paripassu hypothecation charge over current
assets of the company both present and future. These loans are further
secured by i) pledge of 10% equity shares of the company held by the
promoters, ii) tangible collateral security provided by the promoters
equivalent to 15% of the share capital of the company and iii) personal
guarantee of 3 promoter directors of the company on paripassu basis to
all the lenders. Hypothecation / Hire Purchase loans under (A) above
are secured by hypothecation of vehicles and guaranteed by the promoter
directors of the company.
11. The Interest on Term Loans and Working Capital Loans for the year
2014-15 amounting to Rs.1021.93 lakhs (Previous Year Rs.978.11 Lakhs)
calculated @ interest rates as per sanction was not provided in the
books in line with the treatment made by the banks. The actual interest
liability shall vary depending upon the actual date of payment.
12. Creditors for Other Finance and Creditor for Expenses include dues
payable to the Statutory Authorities. The liability towards Interest
and Penalities payable on account of Statutory Dues were not provided
in the books expecting waiver in the current situation.
13. Terms of Repayment and Security:
Term Loans under A,B and C above are repayable in quarterly instalments.
Interest is payable on monthly basis.These loans are secured by first
paripasu charge by way of mortgage and hypothecation over all the fixed
assets of the company, both existing and future, further secured by
second paripassu hypothecation charge over current assets of the company
both present and future. These loans are further secured by i) pledge of
10% equity shares of the company held by the promoters, ii) tangible
collateral security provided by the promoters equivalent to 15% of the
share capital of the company and iii) personal guarantee of 3 promoter
directors of the company on paripassu basis to all the lenders.
Hypothecation / Hire Purchase loans under (A) above are secured by
hypothecation of vehicles and guaranteed by the promoter directors of
the company.
14. The Interest on Term Loans and Working Capital Loans for the year
2014-15 amounting to Rs.1021.93 lakhs (Previous Year Rs.978.11 Lakhs)
calculated @ interest rates as per sanction was not provided in the
books in line with the treatment made by the banks. The actual interest
liability shall vary depending upon the actual date of payment.
15. The company paid 28.93% of the OTS amount under settlement to all
the banks. Corporation Bank had shown the same in the No-lien Account,
State Bank of India had shown part of this amount in the No-Lien
Account while others have adjusted against the regular Term loan
Accounts. The Company made similar treatment in the books in line with
the treatment made by the respective banks.
16. The unprecedented industrial violence on 27.1.2012 had resulted in
deaths of personnel and destruction of buildings and equipment in the
factory. Consequently, a lock-out was declared at the factory from
31.01.2012. The Salary, Wages and other benefits to employees were not
considered as provisional liability and not taken in the books under
"No Work - No Pay" principle pending orders / judgment of the
Industrial Tribunal.
As at As at
31.03.2015 31.03.2014
(Rs. in lakhs) (Rs. in lakhs)
17. Estimated Amount of
contracts remaining to be
executed on Capital
Accounts and
not provided for - -
18. Contingent Liabilities
not provided for:
i) On account of Letters
of Credit and Bank
Guarantees given by Bankers. - -
ii) Demand from Directorate of
Enforcement, disputed by the
Company pending in
Appellate Tribunal for
Foreign Exchange. 5.50 5.50
iii) Demand from Customs &
Central Excise (Service
Tax Cell), disputed
by the company,
Pending in appeal
before CESTAT, Bangalore. 35.04 35.04
iv) Demand from Yanam
Municipality (Property
Tax-With retrospective
effect) disputed by the
company- pending with
commissioner, Yanam
Municipality 32.35 32.35
v) Demand from The Deputy
Commissioner of Income Tax,
Hyderabad, disputed by the
Company. Appeal allowed by ITAT,
Hyderabad. DCIT modified the
demand to Rs.90.98 Lakhs
after giving partial effect
to ITAT orders.. The company
again requested DCIT to set
aside the modified order by
giving effect to the entire
ITAT orders. 90.98 101.17
19. The company suffered extensive damage to the Buildings, Plant &
Machinery and other assets situated at Factory, Yanam due to
unprecedented violence, occurred on 27th January, 2012. Stocks of
Finished goods, Raw materials, stores and spares, stocks-in-process and
other inventories were damaged / looted to a large extent. The Company
declared lock-out of the Plant from 31st January 2012.
20. The extent of loss/damage to Plant & Machinery, Buildings and other
assets of the company were not considered in the books pending
assessment and disclosed at book value after providing depreciation
without considering 5% residual value on account of efflux of time. The
company could not estimate the condition of the existing fixed assets &
its realizable value. As such, the machinery & buildings could not be
insured.
21. Similarly, the condition of the raw materials, stores & spares and
its realizable value could not be estimated by the company, not
insured and disclosed at book value.
22. The Company could not obtain confirmation of balances in respect
of Sundry Debtors & Sundry Creditors, loans and advances, other current
assets and other liabilities.
23. The company has not provided the provisional liability towards
salary, wages and other benefits to its factory employees pending
orders/judgment of the industrial Tribunal. Further, the company has
not provided for its liability towards Gratuity and leave encashment as
per AS-15 due to loss of employee records in the factory during the
violent incidence occurred on 27th January, 2012.
24. The company paid part of One Time Settlement (OTS) amount to the
lenders and requested for extension of time for balance payment.
However, the lenders issued a Demand Notice under section 13(2) of
SARFAESI Act. State Bank of India on behalf of its bank, Corporation
Bank and State Bank of Travancore issued a Possession Notice (Symbolic)
under Rule 8(1) of Security Interest (Enforcement) Rules, 2002 stating
that the undersigned has taken possession of the properties in exercise
of powers conferred on him under section 13(4) of the SARFaESI Act on
04.03.2015 State Bank of Bikaner & Jaipur assigned and transferred the
facilities sanctioned by them together with all underlying securities
interests thereto to Phoenix ARC Private Limited (Trustee of Phoenix
Trust - FY15-5). The lenders filed an application under section 19 of
the Recovery of Debts due to Banks and Financial Institutions Act, 1993
in the Debts Recovery Tribunal, Hyderabad for recovery of their dues.
In view of the above, the Long Term Borrowings are considered as
current maturities of long term borrowings and shown under Other
Current Liabilities. Hypothecation / Hire purchase loans are repayable
within one year and shown under Other Current Liabilities.
25. The company filed a reference under section 15(1) of Sick
Industrial Companies (Special Provisions) Act, 1985 with the Board for
Industrial and Financial Reconstruction. The reference made by the
company has been registered in the BIFR as Case No.19/2014.
26. Remittance in foreign currency on account of Dividend:
There is no remittance in foreign currency on account of Dividend
during the year 2014-15.
27. There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund.
28.Segment Reporting : The entire operations of the Company relate
only to one segment.
29.Related Party Disclosure:
Name of the party Nature of relationship:
1) Regma Ceramics Limited : Company under the same management:
2) Regency Educational Society : Other entities where Directors/their
relatives are interested
3) Dr. G.N. Naidur
4) Smt. Bindu G Naidu } Key Management Personnel
5) Sri. N. Satyendra Prasad
30. The Scheduled III to the Companies Act, 2013 has become
effective from 1st April, 2014 for the pereparation of Finacial
Statements and accordingly, disclosure and presentation have been made
in the financial statements.
31. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosere.
32. Members may fill up the Ballot Form printed overleaf and submit the
same in a sealed envelope to Mr. K.V.Chalama Reddy, Practicing Company
Secretary, Flat No.301, Madhava Apartments, Hill Colony, Khairtabad,
Hyderabad-500004, so as to reach by 5.00 pm on September 29, 2015.
Ballot Form received thereafter will strictly be treated as if not
received.
33. The Company will not be responsible if the envelope containing the
Ballot Form is lost in transit.
34. Unsigned, incomplete or incorrectly ticked forms are liable to be
rejected and the decision of the Scrutinizer on the validity of the
forms will be final.
35. In the event member casts his votes through both the processes i.e.
E-voting and Ballot Form, the votes in the electronic system would be
considered and the Ballot Form would be ignored.
36. The right of voting by Ballot Form shall not be exercised by a
proxy.
37. To avoid fraudulent transactions, the identity/signature of the
members holding shares in electronic/demat form is verified with the
specimen signatures furnished by NSDL/CDSL and that of members holding
shares in physical form is verified as per the records of the share
transfer agent of the Company (i.e. XL Softech Systems Pvt Ltd.).
Members are requested to keep the same updated.
38. There will be only one Ballot Form for every Folio/DP ID/CLIENT ID
irrespective of the number of joint members.
39. In case of joint holders, the Ballot Form should be signed by the
first named shareholder and in his/her absence by the next named
shareholders. Ballot Form signed by a joint holder shall be treated
valid if signed as per records available with the Company and the
Company shall not entertain any objection on such Ballot Form signed by
other joint holders.
40. representative of the Body Corporate/Trust/Society, etc. a certified
copy of the relevant authorization/ Board resolution to vote should
accompany the Ballot Form.
41. The voting rights of shareholders shall be in proportion to their
shares of the paid up equity share capital of the Company as on the
cut-off date 25th September, 2015.
Mar 31, 2014
Terms of Repayment and Security:
Term Loans under A,B and C above are repayable in quarterly
instalments. Interest is payable on monthly basis.These loans are
secured by first paripasu charge by way of mortgage and hypothecation
over all the fixed assets of the company, both existing and future,
further secured by second paripassu hypothecation charge over current
assets of the company both present and future. These loans are further
secured by i) pledge of 10% equity shares of the company held by the
promoters, ii) tangible collateral security provided by the promoters
equivalent to 15% of the share capital of the company and iii) personal
guarantee of 3 promoter directors of the company on paripassu basis to
all the lenders. Hypothecation / Hire Purchase loans under (A) above
are secured by hypothecation of vehicles and guaranteed by the promoter
directors of the company
The Interest on Term Loans and Working Capital Loans for the year
2013-14 amounting to Rs.978.11 lakhs (Previous Year Rs.1114.23 Lakhs)
calculated @ interest rates as per sanction was not provided in the
books in line with the treatment made by the banks. The actual interest
liability shall vary depending upon the actual date of payment.
Creditors for Other Finance and Creditor for Expenses include dues
payable to the Statutory Authorities. The liability towards Interest
and Penalities payable on account of Statutory Dues were not provided
in the books expecting waiver in the current situation.
02. The company has not provided the provisional liability towards
salary, wages and other benefits to its factory employees pending
orders/judgment of the industrial Tribunal. Further, the company has
not provided for its liability towards Gratuity and leave encashment as
per AS-15 due to loss of employee records in the factory during the
violent incidence occurred on 27th January, 2012.
03. The lenders opted for settlement of dues under OTS as a compromise.
The company paid part amount and requested for extension of time. The
company has not provided interest on term loans, working capital loans
to the extent of Rs.978.11 Lakhs (Previous Year Rs.1114.23 Lakhs)
calculated @ interest rates as per sanction in line with the treatment
given by the banks.
04. The lenders, however, issued a Demand Notice under SARFAESI Act for
recovery of their dues.
05. The company filed a reference under section 15(1) of Sick
Industrial Companies (Special Provisions) Act, 1985 with the Board for
Industrial and Financial Reconstruction (BIFR). The reference made by
the company has been registered in the BIFR as Case No.19/2014.
06. Remittance in foreign currency on account of Dividend:
There is no remittance in foreign currency on account of Dividend
during the year 2013-14.
07. There are no amounts due and outstanding to be credited to Investor
Education and Protection Fund.
08. Segment Reporting :
The entire operations of the Company relate only to one segment.
09. Related Party Disclosure:
Name of the party Nature of relationship:
1) Regma Ceramics Limited : Company under the same management:
2) Regency Educational Society : Other entities where Directors/their
relatives are interested
3) Dr. G.N. Naidu
4) Smt. Bindu G Naidu Key Management Personnel
5) Sri. N. Satyendra Prasad
Mar 31, 2013
01. The company suffered extensive damage to the Buildings, Plant &
Machinery and other assets situated at Factory, Yanam due to
unprecedented violence, occurred on 27th January, 2012. Stocks of
Finished goods, Raw materials, stores and spares, stocks-in-process and
other inventories were damaged / looted to a large extent. The Company
declared lock-out of the Plant from 31st January 2012.
The financial results for the year ended 31st March 2013 were prepared
considering the effect of the loss / damage to FG stocks, Raw
Materials, stores and spares, stocks-in-process and other inventories
in the books of accounts. However, the value of loss/damage to Plant &
Machinery, Buildings and other assets of the company and also, claim
under loss of profit were not considered in the books pending
assessment.
02. The Company has not obtained confirmation of balances from Sundry
Debtors and Sundry Creditors and is in the process of obtaining
confirmation of balances from Sundry Debtors, Sundry Creditors, other
liabilities and advances.
03. The company extended "Letter of Comfort" to ICICI Bank aggregating
to Rs.23.70 Lakhs with an undertaking to convert the same into
Corporate Guarantee in line with terms and conditions of the sanction
to M/s. Regma Ceramics Ltd., a Body Corporate under the same
management.
04. Gratuity provision as per AS-15 was not provided in the books due
to loss of employee records in the factory during the voilent incidence
occurred on 27h January,2012.
05. Remittance in foreign currency on account of Dividend:
There is no remittance in foreign currency on account of Dividend
during the year 2012-13
06. There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund.
07. Segment Reporting: The entire operations of the Company relate
only to one segment.
08. Related Party Disclosure:
Mar 31, 2010
01. Secured Loans:
i) The Term Loans ( including fresh loans, Funded Interest Term Loans
and Working Capital Term Loans) availed from Banks are secured by first
paripassu charge by way of mortgage and hypothecation over all the
fixed assets of the Company, both existing and future; further secured
by second paripassu hypothecation charge over current assets of the
Company both present and future ( except on the assets on which
exclusive charge is created against the loans sanctioned by
hypothecation/ hire purchase vendors).
ii) The working capital limits availed from banks are secured by first
charge on current assets of the Company, ranking paripassu with other
member banks and further secured by second charge on the Companys
fixed assets ranking paripassu with other member banks of the
consortium.
iii) The loans availed under (i) and (ii) above are further secured by
(a) pledge of 10% Equity shares of the Company held by the promoter (b)
Tangible collateral security provided by the promoters equivalent to
15% of the share capital of the Company and (c) personal guarantees of
three promoter Directors of the Company on paripassu basis to all the
lenders.
As at
31.03.10 As at
31.03.09
(Rs.in
lakhs) (Rs.in
lakhs)
02. Estimated Amount of contracts remaining
to be executed on Capital Accounts
and not provided for - -
03. Contingent Liabilities not provided for:
i) On account of Letters of Credit and Bank 861.92 1587.66
Guarantees given by Bankers.
ii) Demands from Sales Tax Dept., disputed - 17.89
by the Company pending in appeals,
amounting to Rs. 17.89 lakhs.
iii) Demand from Directorate of Enforcement, 5.50 5.50
disputed by the Company pending in
Appellate Tribunal for Foreign Exchange.
iv) Demand from Customs & Central Excise Dept.
(Service Tax cell), disputed by the
Company, pending in appeal, amounting to
Rs.62.36 lakhs. Against these demands,
the Company paid an amount of Rs.9.97
lakhs. 62.36 62.36
v) Demand from Customs & Central Excise
(Service Tax Cell), disputed by the
Company, Pending in appeal before CESTAT,
Bangalore amounting to Rs. 35.04 Lakhs 35.04 35.04
vi) Demand from Commissioner, Central Excise
(Service Tax Cell) Visakhapatnam - II
disputed by the Company, pending in
appeal before CESTAT, Bangalore amounting
to Rs.1.22 Lakhs 1.22 1.22
vii) Demand from Yanam Municipality
(Property Tax) disputed by the Company-
pending with commissioner, Yanam
Municipality. 32.35 32.35
viii) Demand from Regional Provident Fund
Commissioner, Rajahmundry, disputed
by the Company pending in appeal,
amounting to Rs.46.26 Lakhs. Against
this demand, the Company paid an amount
of Rs. 11.57 Lakhs during the Financial
Year 2009-10 46.26 46.26
ix) Demand from Dy. Commissioner of Income
Tax, Hyderabad, disputed by the Company,
pending in appeal before Income Tax
Appellate Tribunal, Hyderabad amounting to
Rs. 130.97 Lakhs 130.97 130.97
04. The Company incurred Rs.118.85 Lakhs in the earlier years on
installation of 132KV electric line for getting uninterrupted power
supply from Pondicherry Electricity Board. The line is the property of
the Electricity board on energigation in the month of July05 and thus
the expenditure is being written off in five equal annual installments
from the year of energigation. Accordingly, Rs.23.77 Lakhs is charged
to Revenue in the current year.
05. The Company has obtained confirmation of balances from few parties
from Sundry Debtors and Sundry Creditors and is in the process of
obtaining confirmation of balances from the balance parties included
under Sundry Debtors, Sundry Creditors, other liabilities and advances.
06. In the opinion of the Board, the current Assets and Loans &
Advances have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated.
07. The Company extended "Letter of Comfort" to the Banks aggregating
to Rs.52 Lakhs with an undertaking to convert the Same into Corporate
Guarantee in line with terms and conditions of the sanction to M/s.
Regma Ceramics Ltd., a Body Corporate under the same management.
08. Remittance in foreign currency on account of Dividend:
There is no remittance in foreign currency on account of Dividend
during the year 2009-10
09. There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund.
10. Segment Reporting: The entire operations of the Company relate
only to one segment.
11. Related Party Disclosure:
Name of the party Nature of relationship:
1) Regma Ceramics Limited : Company under the same management:
2) Regency Educational Society : Other entities where Directors/their
relatives are interested:
3) Dr. G.N. Naidu ")
4) Smt. G. Radhika Key Management Personnel
5) Smt. Bindu G Naidu
6) Sri. K.C. Chandrasekhar
12. Lease rentals payable towards vehicles acquired under operating
lease:
- not later than one year: - 2.83
- later than one year but not later than five years :
13. Previous years figures have been regrouped /re-arranged wherever
necessary to make them comparable with the current years figures.