Mar 31, 2014
1 Contingent Liabilities & Commitments (To the extent not provided
for)
Claims against the Company not acknowledged as debts including excise,
sales tax, Income Tax, Labour Disputes, Legal and other Disputes Rs.
8,42,21,964 Previous year Rs. 8,72,25,982).
Current Year Previous Year
(a) PF Cases pending at 2,00,02,286 2,00,02,286
various forums
(b) Labour Matters relating 16,46,109 56,12,277
settlement pending at
various forums
(c) Revenue collection charges 2,09,46,436 1,99,84,286
by Tehsil & other authorities
pending at Hon''able High Court
(d) Sales tax demand pending at 1,49,37,402 1,49,37,402
various forums
(e) Excise demand for unauthorised 1,65,21,748 1,65,21,748
removal of goods pending with
CESTAT
(f) Other Matters 1,01,67,983 1,01,67,983
2 Based on the confirmations from the suppliers, who have registered
themselves under the Micro, Small and Medium Enterprises Development
Act, 2006, received so far with the company, no balance is due to Micro
& Small Enterprises as defined under the Micro, Small and Medium
Enterprises Development Act, 2006 as on 31st March 2014. Further during
the year no interest has been paid or payable under the terms of the
said Act.
3 Balances appearing for few inoperative bank accounts, Trade
Receivable and Payables, loans & advances and Short term unsecured
borrowing are subject to confirmation, reconciliation and adjustments,
if any.
4 During the year company has signed a Memorandum of Understanding
concluding the renegotiation proceedings with both the secured lenders
and necessary accounting effect arising out of the same has been shown
under the Interest on borrowings in the note 2.18 of financial cost.
Independent year end confirmations are awaited from the lenders.
5 Company has started developing the Plots as per the approved plan
of UPSIDC and accordingly has incurred an expediture of Rs. 19,70,444
(excluding write back of Rs. 31,37,718) (Previous year Rs. 57,44,738),
which is allocated proportionately on the saleable area and unallocated
portion made a part of stock in Trade.
6 Considering the development agreement and the provisions as
specified in the Accounting Standard-22 "Accounting for taxes on
Income" issued by the Institute of Chartered Accountants of India, the
company has recognised Deferred Tax assets (DTA) based on the principle
of virtual certainty.
7 The Company has claimed losses in the return filed for subsequent
years till Assessment years 2013 -2014 and is of the view that the same
will be available for set off against future profits. In view of the
losses and unabsorbed depreciation and based on the legal opinion
obtained by the company, no provision for tax has been considered
necessary in the accounts.
8 Segment Information
The primary segment reporting format is determined to be the business
segment as the company''s risks and rate of return are affected
predominantly by difference in business line. Based on these lines,
company has identified Trading of fabric, Sale of leasehold plots
rights and discontinued business as business segments. The details of
the segment revenue, expenses, assets, liabilities and capital employed
are given here under:
9 The figures reported in financial statements have been rounded off
to the nearest rupee and have been regrouped and rearranged where ever
necessary.
Mar 31, 2013
1.1 PROFIT/(LOSS) FROM DISCONTINUING OPERATIONS
In view of the Economic/Financial non-viability and on-going labour
problems etc., the Company had discontinued its operations of
manufacturing of Polyester Fibres and Chips in the earlier year. Last
year, company had entered into a binding sale agreement for disposal of
its entire Plant & Machinery and Building related to the discontinued
operations and sold the significant part thereof. Further, as part of
the closure process of the discontinued business, company had provided
for all the doubtful debtors, advances and other recoverables and
written back the unclaimed liabilities. The following statement shows
the revenue and expenses of the discontinuing operations:
(i) Provisions are made herein for medium risk oriented issues
including old assets as a measure of abundant precaution.
(ii) Company presumes remote risk possibility of further cash outflow
pertaining to contingent liabilities listed in note 2.21 above
1.2 Based on the confirmations from the suppliers, who have registered
themselves under the Micro, Small and Medium Enterprises Development
Act, 2006, received so far with the company, no balance is due to Micro
& Small Enterprises as defined under the Micro, Small and Medium
Enterprises Development Act, 2006 as on 31st March, 2013. Further
during the year no interest has been paid or payable under the terms of
the said Act.
1.3 The Company has claimed losses in the return filed for subsequent
years till Assessment years 2012 - 2013 and is of the view that the
same will be available for set off against future profits. In view of
the losses and unabsorbed depreciation and based on the legal opinion
obtained by the company, no provision for tax has been considered
necessary in the accounts.
1.4 Balances appearing for few inoperative bank accounts, Trade
Receivable and Payables, loans & advances are subject to confirmation,
reconciliation and adjustments, if any.
1.5 In view of the conditions beyond the control of the parties, Plot
booking got delayed, resulting into collapse of full & final settlement
with the secured lenders achieved in the previous year. Management of
the company is in process of renegotiation with the secured lenders.
However, pending any conclusion on the same, differential Interest of Rs.
10,57,86,111 to one of the lender, Paharpur Cooling Towers Limited
(PCTL) has been provided as per original sanctioned terms . With
respect to Interest to other Secured Lender, Pranajal
Vyapaar Private Limited (PVPL), no provision for interest has been made
in respect to outstanding loan due to fact that the management is under
re-negotiation with PVPL considering the corresponding delay in receipt
of assured sale consideration from PVPL, under the deed of assignment.
Differential interest amount, if any will be recognised on the
conclusion of negotiation process. However, independent confirmation
from respective lenders is yet to be received.
1.6 The Company has lost the appeal in Hon''able Supreme Court against
the order of Hon''able National Consumer Disputes Redressal Commission,
New Delhi (NCDRC) in respect of on-going case against a debtor in the
previous year. Accordingly, it has to refund the amount of Rs. 148.60
Lacs (including Interest Rs. 83.40 Lacs), which was received in the
previous years. The amount due from Debtor has since been written off
as Bad debts as shown in Discontinued operations.
1.7 Company has started developing the Plots as per the approved plan
of UPSIDC and accordingly has incurred an expediture of Rs. 57,44,738
(Previous year Rs. 7,05,33,542), which is allocated proportionately on
the saleable area and unallocated portion made a part of stock in
Trade.
1.8 Related Party disclosure in accordance with the Accounting
Standard-18, issued by the Institute of Chartered Accountants of India
is given below:
(1) Associates : National Textile Corporation Ltd. (Holding more than
20% shareholding in the company)
Nature of Transactions :
Unsecured Loan taken and outstanding : Rs. 2,30,21,497 (Previous Year Rs.
2,30,21,497) as on 31.03.2013
1.9 Considering the development agreement and the provisions as
specified in the Accounting Standard-22 "Accounting for taxes on
Income" issued by the Institute of Chartered Accountants of India, the
company has recognised Deferred Tax assets (DTA) based on the principle
of virtual certainty.
1.10 The figures reported in financial statements have been rounded off
to the nearest rupee.
Mar 31, 2012
* Rupee term loans are secured by way of pari-passu negative lien on
the land & building situated at Kavi Nagar, Ghaziabad, UP.
Details of the default amount is as follow :
(i) Loan from related Party - Principal Rs. Nil (Previous Year Rs.
12,42,76,100) , Interest Nil (Previous Year Rs. 3,10,50,000)
(ii) Loan from other Body Corporate - Principal Nil (Previous Year
14,00,00,000), Interest Nil (Previous Year Rs. 14,62,00,892)
1.1 Profit/(Loss) from discontinuing operations
In view of the Economic/Financial non-viability and on-going labour
problems etc., the Company had discontinued its operations of
manufacturing of Polyester Fibres and Chips in the earlier year.
However, during the year, the company has entered into a binding sale
agreement for disposal of its entire Plant & Machinery and Building
related to the discontinued operations and accordingly sold the
significant part thereof. Further, as part of the closure process of
the discontinued business, company has provided for ail the doubtful
debtors, advances and other recoverables and written back the unclaimed
liabilities. The following statement shows the revenue and expenses of
the discontinuing operations:
The carrying amount of total assets and liabilities to be disposed off
at 31st March are as follows. Comparative information for the
discontinuing operations is included in accordance with AS-24,
Discontinuing Operations:
1.2 Contingent Liabilities & Commitments (To the extent not provided
for)
Claims against the Company not acknowledged as debts including excise,
sales tax, Income Tax, Labour Disputes, Legal and other Disputes Rs.
8,61,73,840 (Previous year Rs. 13,88,20,328).
Particulars Current Year Previous Year
(a) PF Cases pending
at various forums 20,002,286 20,000,286
(b) Labour Matters
relating settlement pending
at various forums 5,409,813 6,471,566
(c) Revenue collection
charges by Tehsil & other
authorities pending at
HonÃable High Court 19,98.4,286 19,984,286
(d) Sales tax demand
pending at various forums 14,937,402 13,386,265
(e) Excise demand for
unauthorised removal of
goods pending with CESTAT 16,521,748 19,021,748
(f) Interest on the Secured
loan from Body corporate - 49,671,756
(g) Other Matters 9,318,305 10,284,421
(i) Provisions are made herein for medium risk oriented issues
including old assets as a measure of abundant precaution.
(ii) Company presumes remote risk possibility of further cash outflow
pertaining to contingent liabilities listed in note 2.21 above
1.3 The Company is in the process of obtaining confirmations from the
suppliers who have registered themselves under the Micro, Small and
Medium Enterprises Development Act, 2006. Based on the information
available with the Company, no balance is due to Micro & Small
Enterprises as defined under the Micro, Small and Medium Enterprises
Development Act, 2006 as on 31s1 March, 2012. Further during the year
no interest has been paid or payable under the terms of the said Act.
1.4 Based on the information available on records, excess provision
for Income Tax & FBT relating the past more than 5 years has been
reversed and disclosed as Income Tax provision no longer required, in
the Profit & Loss Statement. Further, the Company has claimed losses in
the return filed for subsequent years till Assessment years 2011 - 2012
and is of the view that majority of the losses will be available for
set off against future profits. In view of the losses and unabsorbed
depreciation and based on the legal opinion obtained by the company, no
provision for tax has been considered necessary in the accounts.
1.5 Balances appearing for few inoperative bank accounts, Trade
Receivable and Payables, loans & advances are subject to confirmation,
reconciliation and adjustments, if any.
1.6 During the year, company has entered into a Developer Agreement
with Adarsh Cement Products Private Limited (ACPPL) to develop the
requisite infrastructure at the leasehold land of the Company and to
sale the plots of the land, as per the subdivision letter received from
UPSIDC. for a undertaking consideration.
This agreement was subsequently assigned in favour of the secured
lender, Pranajal Vyapaar Private Limited (PVPL) through deed of
assignment and the Memorandum of Understanding entered between the
company and secured lenders.
1.7 During the year company has entered into a Memorandum of
Understanding with its secured lenders PVPL and Paharpur Cooling Towers
Limited (PCTL) for agreeing the full & final settlement of their claims
as on the cut-off date i.e. 1st Dec., 2011 for an amount of Rs.
34,13,12,614/- and Rs. 24,60,45,432/- respectively. Besides this,
Company, subject to the approval of the Shareholders in the general
meeting, has agreed to allot 1,50,000/-, 9.5% cumulative Redeemable
Preference Shares of Rs. 100/- each to be redeemed on or before 30m
Sept. 2012 along with one detachable warrant to each preference share,
which entitle them to get 15,00,000/- equity shares of Rs. 10/- each at
a price determined in accordance SEBI regulations. Accordingly, Company
has provided the differential interest of Rs. 12,23,92,821/- in the
current year. Further, the aforesaid agreed amount is payable out of
proceeds received from PVPL under the aforesaid Developer agreement and
deed of assignment. However, independent confirmation from respective
lenders is yet to be received.
1.8 The Company has lost the appeal in HonÃable Supreme Court
against the order of HonÃable National Consumer Disputes Redressal
Commission, New Delhi (NCDRC) in respect of on-going case against a
debtor in the previous year. Accordingly, it has to refund the amount
of Rs. 148.60 Lacs (including Interest Rs. 83.40 Lacs), which was
received in the previous years. The amount due from Debtor has since
been written off as Bad debts as shown in Discontinued operations.
1.9 Revaluation of Factory Building was carried out during the year
1986-87 and accordingly increase in values due to revaluation had been
credited to Revaluation Reserve. Since then, each yearÃs withdrawal
amount has been credited to Profit & Loss Account. During the year,
majority of the Building got dismantled and sold at a profit.
Accordingly the proportionate amount of Rs. 74,13,606/- has been
transferred to General Reserve from the Revaluation Reserve in
accordance with the Provisions of Accounting Standard, AS-10,
Accounting for Fixed Assets.
1.10 Company has started developing the Plots as per the approved plan
of UPSIDC and accordingly has incurred an expediture of Rs.
7,05,33,542/- which is allocated proportionately on the saleable area
and unallocated portion made a part of stock in Trade.
1.11 Considering the development agreement as specified in note no.
2.28 here in above and the provisions as specified in the Accounting
Standard-22 "Accounting for taxes on Income" issued by the
Institute of Chartered Accountants of India, the company has recognised
Deferred Tax assets (DTA) based on the principle of reasonable
certainty. However, in the absence of virtual certainty with regards to
realisation of DTA in the foreseeable future, DTA has not been
recognised on carried forward losses and unabsorbed depreciation.
1.12 Till the year end 31st March, 2011, the company was using
pre-revised Schedule VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March, 2012, the revised schedule VI notified under the Companies Act,
1956, has become applicable to the company. The Company has
reclassified previous year figures to conform to this yearÃs
classification. The adoption of Revised schedule VI does not impact
recognition and measurement principles followed for preparation of
financial statements.
1.13 Segment Information
The primary segment reporting format is determined to be the business
segment as the companyÃs risks and rate of return are affected
predominantly by difference in business line. Based on these lines,
company has identified Trading of fabric, Sale of leasehold plots
rights and discontinued business as business segments. The details of
the segment revenue, expenses, assets, liabilities and capital employed
are given here under:
1.14 The figures reported in financial statements have been rounded off
to the nearest rupee.
Mar 31, 2010
1. Contingent Liabilities not provided for in respect of:
Claims against the Company not acknowledged as debts including excise,
sales tax, Income Tax, Labour Disputes, Legal and other Disputes Rs.
2335 lacs (Previous year Rs. 1929 lacs). ( Rs. in Lacs)
Particulars Current Year Previous Year
(a) PF Cases pending at various forums 199.43 166.42
(b) Labour Matters relating settlement
pending 41.54 76.54
at various forums
(c) Revenue collection charges by
Tehsil & other 199.84 199.84
authorities pending at Honable High Court
(d) Sales tax demand pending at
various forums 133.74 147.46
(e) Excise demand for unauthorised
removal of goods 165.22 139.18
pending with Commissioner Central Exise
(f) Interest on the Secured loan
from Body corporate 1,526.86 896.60
(g) Other Matters 68.05 303.23
2. In view of the Economic/Financial non-viability and ongoing labour
problems etc., the Company had discontinued its operations of
manufacturing of Polyester Fibres and Chips, the resumption of which
seems to be very unlikely. The Management to the extent possible has
considered necessary provisions and do not anticipate any significant
change in the value of its current assets and liabilities which have
been shown in the Balance Sheet.
3. The Company is in the process of obtaining confirmations from the
suppliers who have registered themselves under the Micro, Small and
Medium Enterprises Development Act, 2006. Based on the information
available with the Company, no balance is due to Micro & Small
Enterprises as defined under the Micro, Small and Medium Enterprises
Development Act, 2006 as on 31st March 2010. Further during the year no
interest has been paid or payable under the terms of the said Act.
4. The Company had received Rs. 148.60 Lacs (including Interest Rs.
83.40 Lacs) based on the order of Honable National Consumer Disputes
Redressal Commission, New Delhi (NCDRC) in respect of ongoing case
against a debtor in the previous year. This amount was released on
furnishing of Bank Guarantee and security in the form of company flats
at Kavi Nagar. However the matter has since been remanded back by
Honable Supreme Court to NCDRC for reconsideration. Accordingly, the
Interest received has not been recognised and would be recognised on
its final disposal.
5. Income Tax and Wealth Tax assessments have been completed upto
Assessment year 1998-99 and against some of the orders, appeals are
still pending. The Company has claimed losses in the return filed for
subsequent years till Assessment years 2009 - 2010 and is of the view
that majority of the losses will be available for set off against
profits. In view of the losses and unabsorbed depreciation, no
provision for tax has been considered necessary in the accounts.
6. Balances appearing for certain inoperative bank accounts, debtors,
creditors, loans, advances and other parties are subject to
confirmation, reconciliation and adjustments, if any, by the respective
parties.
7. In respect of the secured loans taken from the bodies corporate,
further provision for interest has not been considered necessary due to
arbitration proceedings and ongoing discussions for one time settlement
with the respective body corporate. Further Liability, if any would be
provided for in the year of settlement.
8. Revaluation of fixed assets (Factory building & Plant and
Machinery) was carried out during the year 1986-87 and accordingly
increase in values due to revaluation had been credited to Revaluation
Reserve. Since then, each years withdrawal amount has been credited
to Profit & Loss Account. During the year Rs. 2.13 Lacs (Previous Year
Rs. 2.13 Lacs) has been withdrawn from the Revaluation Reserve and
credited to Profit & Loss Account.
9. Related Party disclosure in accordance with the Accounting
Standard-18, issued by the Institute of Chartered Accountants of India
is given below:
(1) Associates
National Textile Corporation Ltd.
(Holding more than 20% shareholding in the company)
Nature of Transactions
Unsecured Loan taken as on 31.03.2010 : Rs. 2,30,21,497 (Previous Year
Rs. 2,30,21,497)
(2) Associates
Paharpur Cooling Towers Ltd.
(Holding indirectly more than 20% shareholding in the company)
Nature of Transactions
Reimbursement for various expenses : Rs. 11,18,712 (Previous Year Rs.
8,96,748)
Unsecured Loan taken : Nil (Previous Year Rs. 1,69,72,831)
Unsecured Loan repaid : Nil ( Previous Year Rs. 39,58,170)
Outstanding Balance as on 31.03.2010
Secured Loan Taken : Rs. 13,50,00,000 (Previous Year Rs. 13,50,00,000)
Unsecured Loan Taken : Rs. 2,92,76,100 ( Previous Year Rs. 2,92,76,100)
10. In accordance with the Accounting Standard-22 "Accounting for
taxes on Income" issued by the Institute of Chartered Accountants of
India, the company has certain amounts eligible to create Deferred Tax
assets (DTA). However, in the absence of virtual certainty with regards
to realisation of DTA in the foreseeable future, DTA has not been
recognised.
11. Previous years figures have been regrouped/recast wherever
considered necessary
12. The figures reported in financial statements have been rounded off
to the nearest rupee.