Mar 31, 2015
1. Rights, Preferances and Restrictions attached to Shares Issued :
Each Equity Shareholder holding shares of Rs. 10/- each is eligible for
one vote per share held and is entitled to dividend when proposed by
the Board of Directors subject to the approval of the sharesholders in
the Annual General Meeting. Each Equity Shares holders is entitled to
participate in repayament of Capital on liqudation after all secured
creditors have been paid.
13% Non Convertible Cumulative Redeemable Preference Shares have
already matured for redemption completely by 12th December, 2002 as per
terms of redemtion. However, no part of this Share Capital amount could
be redeemed by the aforesaid date. The Company has received during the
year 2010-11 a letter from IDBI, The holders demanding forthwith the
payament of the entire amount due on redemption togathet with the
dividends due thereon.
However, the matter is pending restructuring of loans due to banks and
financial institutions.
* The company, being a sick industrial undertaking could not redeem
debentures & interest thereof as per the terms of issue, which will be
dealt properly in the restructuring scheme. Accordingly no transfer has
been made to the Account of Investor & Protection fund.
* Following the declaration of the Company as a Sick Industrial
undertaking by the Board for Industrial and Financial Reconstruction
(BIFR) vides its Order dated 30.01.2006 in terms of Section 3 (1) (A)
of the Sick Industrial Companies (Special Provisions) Act, 1985 and
also athe appointment of Industrial Development Bank of India as the
Operating Agency for preparation of a viability study report to revive
the Company, Appeals against the said order were preferred by some of
the secured lenders as well as the Company before the
AppellateAuthority for Industrial & Financial Reconstruction (AAIFR).
The said appeals were taken up and adjudicated and vide its order dated
05.12.2007, AAIFR has remanded the case back to BIFR with a direction
to reconsider the earlier references of the company on the basis of its
earlier Balance Sheets also. During the year 2010-11 in one of the
appeals pending before AAIFR and in pursuance of ARCIL's application .
AAIFR has opined that in veiw of the actions taken by ARCIL under
Section 13 (4) of SARFAESI Act, the reference filed by the Company
stood abated in one of the appeals pending before AAIFR under the
proviso to Section 15(1) of SICA.
Following the reference application filed by the company having stood
abated under the proviso to Section 15(1) of SICA. ARCIL has asked
Indoworth to handover to them the possession of assets of the company
covered by the security.
However, matter is subjudice in a suit before the Kolkata High Court
and necesssary adjustments would be made in the financial statements if
required consequent to the final outcome of the proceedings. Pending
the above, the financial statements have been drawn up on Going Concern
basis as the Management is of the view that the going concern
assumption is not vitiated for the reason as stated above.
* Under the provisions of Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act), ARCIL has taken over possession of the secured assets
of the Company's plants during the Financial Year 2008-09 and has
appointed Indoworth India Ltd as the Custodian of such assets.
The Company's business continued since the aforesaid take over as
usual. However, the matter is subjudice in a suit before the Calcutta
High Court and necessary adjustments in the financial statements, if
required, would be made upon final adjudication of the proceedings.
However, these Accounts have been prepared on a Going Concern basis as
the Management is of the view that the Going Concern assumption is not
vitiated for the reason as stated above.
* The outstanding balance of Term Loans from Financial Institutions
and some of the banks are subject to receipt of confirmation /
statements, which couldnot be avialable due to restructuring in
progress.
* Mode of valuation - Refer Accounting Policy Note-1(f)
2. Finished Goods
i) Value of ' 184.38 Lacs lying with thrid party.
ii) Value of ' 115.51 Lacs under seizer of the Excise Department for a
storage of Stock with a third party without obtaining permission of the
Excise Department.
* Trade Recievable includes Rs. 2041.21 Lacs due from a Company which
has become sick and registered with BIFR under the Sick Industrial
Companies (Special Provisions) Act, 1985. Quantum of amount considered
doubtful is not ascertainable at this Stage. Accordingly no provision
has been made in the account in this regards.
* In respect of Sundry Debtors (including Domestic sales Debtors)
adjustments are pending against supplies and other liabilities, etc due
to the buyers Managent is confident of recovering the balance after
such adjustments pending approval from concerned regulatory authority.
* Certain Debtors are subject to Confirmation.
* Trade Recievable includes :
i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for
long against which the acompany has obtained a decree for realizing the
outstanding debts over a period of time ranging up to twenty years.
The company has also filed an appeal for reduction/variation of the
period of time.
ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for
long that will be set off against import liabilities, claims, and
commission etc. of the respective parties.
iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for
long against which the management has taken appropriate steps for its
recovery.
iv) Rs. 131.62 Lacs represanting other trade recievables outstanding
for long against which the management has taken appropriate steps for
recovery. According no provision gas been considered necessary at this
stage.
* Balances with the Bank in Current Account include Debit balances in
Current Account of Rs. 79.14 Lacs which are subject to receipt of
confirmation because of restructuring being in progress.
* Fixed Deposit lodged with Bank as margin for Guarantee Rs. 4.07 Lacs
and with Sales Tax Authorities Rs. 0.39
* During the year one of the banker of the company, Axis Bank Ltd,
under instructions from ARCIL has made debit freeze (freezing all
withdrawals ) of all current account of the company maintained with
them, the balance of which as per books amounted to Rs. 65.23 lacs as
on 31st March, 2015.As per Confirmation Certificates obtained from the
Bank, total balance of all such Current Accounts works out to Rs. 4.26
lacs as on 31st March, 2015. in absence of any details of the
withdrawals/other transactions made from such Accounts, necessary
entries could not be made in the books of the company.
* During the year the company opened certain new Current Accounts with
Banks (other than the bankers of the Company).
* Claim receivable of Rs. 689.36 lacs due from various banks on
account of excess interest charged by them in earlier years are subject
to confirmation. No provision has been made there against.
* Short Term Loans and Advances includes Rs. 1327.09 Lacs which have
become sick and referred to BIFR under the Sick Industrial Companies
(Special Provisions) Act, 1985. Quantum of amount considered doubtful
is not ascertainable at this Stage. Accordingly no provision has been
made in the account in this regards.
* Advance includes Rs. 3144.73 Lacs due from a party which in opinion
of the Management is considered t be fully recoverable.
* Advance includes Rs. 0.10 Lacs due from a director (Max Amount at
any time during the year Rs. 1.08 Lacs)
* Certain Advances are subject to Confirmation.
* The adjustment of Rs. 5948.37 lacs pertaining to transfer of Fixed
Assets of the company in earlier years under scheme of demerger is
still pending and will be dealt in restructuring Scheme.
2. Contingent Liabilities and Commitments :
(To the extent not provided for)
i) Contingent Liabilities
a) Claim against the company not acknowledged as debt.
b) Guarantees 767,629 767,742
c) Other money for which
the company is
contingently liable :
* Letter of Credit 9,882 9,882
* Arrear Dividend on
13% Non Convertible
Cumulative
Redeemable Preference
Shares.
(Refer Note 2 (b)) 38,224 38,224
* Entry Tax 8,858 8,858
* Central / Commercial
Sale Tax Demands 20,463 20,463
* Excise Demands 104,329 127,129
* Interest on Lease rent 473
* TDS Demand Default 923
* Custom Demands 46,922 25,200
* Professional Tax/Labour
Cases/Water Cess etc. 985 981
* Electricity Duty 11,545 242,604 115,450 346,187
Total 1,010,233 1,113,929
* Claims / Disputed liabilities not acknowledged as debt,the amount of
which is not ascertained.
* Gaurantees include Corporate Guarantees Rs. 7000 lacs ( Previous
Year Rs. 7000 lacs) given by the Company to financial Institutions and
Banks for granting Term Loans and Working Capital Loans to certain Body
Corporates.
* Interest provision on borrowing from some of the institutions and
banks has been made in the accounts at prevailing/estimated rates on
simple interest basis applicable on such loans. The impact of compound
interest /Penal charges wherever applicable could not be ascertained.
Besides there is dispute between the Company and Bankers/Creditors,
over the issue of charging interest and payment to the
Bankers/Creditors of interest and principal amount.The
Bankers/Creditors have approached appropiate court of law for recovery
of its due which is being defended by the Company.
* Pending restructuring interest provision on certain
loans/borrowings has not been made and impact of the same is not
presently ascertainable
3. Related Party disclosure as required by AS - 18, "Related Party
Disclosure" are given below : a) Relationship :
Associates
Uniworth Textile Ltd.
Uniworth Power Ltd.
Uniworth Apparel Ltd.
Aviante International Ltd.
Key Management Personnel Mr S N Shenwai
a) Balance of ' 4250.51 lacs with Uniworth Textiles Limited (Related
Party) as at 31st March, 2015 is under reconciliation.
4. Based on the guiding principles given in Accounting Standards on
"Segment Reporting" (AS-17) the Company's primary business segment is
Wool and Silk business.
5. Employee benefits (Revised Accounting Standard 15)
a) Defined Contribution Plan :
The company makes contribution towards Provident Fund and ESIC to a
defined contribution retirement benefit plan for qualifying employees.
The Provident Fund plan is operated partly by RegionalProvident Fund
Commissioners and partly by an independent Trust, ESIC by Government
agencies. Under the said schemes the company is required to contribute
a specific percentage of pay roll costs in respect of eligible
employees to the retirement benefit scheme to fund the benefits.
During the year the company has recognised Rs. 64.05 lacs for Provident
fund contribution, Rs 18.98 lacs for ESIC. The Contribution payable to
these plans by the Company is at the rates specified in the rules of
the scheme.
b) Defined Benefit Plans :
i) The plan provides for a lump sum payment to vested employees upon
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary payable for each
completed year of service. Vesting occurs upon completion of five years
of continuous service.
ii) The employees of the company are eligible for encashment of leave
upon retirement up to 30 days for each year (Maximum 120 days). Leave
is accounted for on accrual basis.
6. With the introduction of the companies Act, 2013 with effect from
1st Arpil, 2014, adoption of Schedule - II of the said Act regarding
calculation of depreciation based on estimated Useful Life of each
tangible asset has become mandatory from that date. However, as the
company's Fixed Assets Register has not yet been fully updated with
regard to estimated useful life of each asset, calculation of
depreciation as per schedule -II could not be made by Company during
the year. This tantamount to non- compliance of mandatory requirements
of the Companies Act, 2013 read with Accounting Standard (AS) 6:
Depreciation Accounting. Effect of such non-compliance on the Financial
Statements of the Company is not presently ascertainable.
7. The Company has not recognized Deferred Tax Assets (Net) as per
Accounting Standard - 22, regarding "Accounting for Taxation"
estimation of future in view of consistent losses and of uncertainty
regarding Profit with reasonable certainty.
8. Certain Banks and Financial Institutions have taken legal recourse
for recovery of their dues from the company. Loans and Advances
includes Rs. 150 lacs deposited with the Banks in the name of advocates
on record for both parties as per order of Hon'ble Kolkata High Court
in case of litigation with the Bank.
9. Due to non-completion of certain technical formalities, certain
borrowing facilities,which were to be transferred to a body corporate
pursuant to the original scheme of restructuring, could not be made.
10. The company has applied from time to time to The Reserve Bank of
India for extension/ set off of certain over- due bills, approval of
which is still awaited.
11. In preparation of these Accounts, cognizance has not been taken by
the Company of a Debit Note sent by a body corporate in an earlier year
, indicating the unilateral transfer back by the said body corporate of
all the assets which were transferred to them on 01.04.2000, together
with all existing and underlying securities/ charges as part of the
restructuring scheme formulated by ICICI, in view of the various
judicial proceedings pending at this juncture. However, the Company has
been legally advised to deal with the above transfer back only after
final disposal of the process of adjudication by the Court.
12. Export obligation for the assets acquired/taken on lease without
payment of applicable duties lies with the Company under the provisions
of the Exim Policy (Amount unascertained).
37. Discounts, commission & other selling expenses include commission
Rs 235.91 lacs. (Pr. year Rs 133.81 Lacs).
13. Claims had been filed against the Compamy by a body corporate
amounting to Rs. 21625 Lacs for non fulfillment of certain clauses of
an agreement relating to transfer of Nagpur Unit to them in respect
this we are unable to express our opinion on liablities that may arise
eventualy on finalistion of suit.
14. The previous year's figures have been reworked, regrouped,
rearranged and reclassified wherever necessary and practicable .
Amounts and other disclosures for the preceding year are included as an
integral part of the current year financial statements and are to be
read in relation to the amounts and other disclosures relating to the
current year.
Mar 31, 2014
(Rs in 000''s)
2013-14 2012-13
Rs. Rs. Rs. Rs.
1. Contingent Liabilities and
Commitments. (To the extent not
provided for)
i) Contingent Liabilities
a) Claim against the company not
acknowledged as debt.
b) Guarantees 7,67,742 7,67,222
c) Other money for which the
company is contingently liable:
- Letter of Credit 9,882 9,882
- Arrear Dividend on 13% Non
Convertible Cumulative
Redeemable Preference Shares.
(Refer Note 2 (b) ) 38,224 38,224
- Entry Tax 8,858 5,035
- Central / Commercial Sale
Tax Demands 20,463 23,357
- Excise Demands 1,27,129 20,965
- Custom Demands 25,200 77,393
- Professional Tax/Labour
Cases/Water Cess etc. 981 981
- Electricity Duty 1,15,450 3,46,187 - 1,75,837
Total 11,13,929 9,43,059
Note :
1) Claims / Disputed liabilities not acknowledged as debtthe amount of
which is not ascertained.
2) Gaurantees include Corporate Guarantees Rs.7000 lacs ( Previous Year
Rs.7000 lacs) given by the Company to financial Institutions and Banks
for granting Term Loans and Working Capital Loans to certain Body
Corporates.
Note:
1. Interest provision on borrowing from some of the institutions and
banks has been made in the accounts at prevailing/ estimated rates on
simple interest basis applicable on such loans. The impact of compound
interest/Penal charges wherever applicable could not be ascertained.
Besides there is dispute between the Company and Bankers/Creditors,
over the issue of charging interest and payment to the
Bankers/Creditors of interest and principal amount. The
Bankers/Creditors have approached appropiate court of law for recovery
of its due which is being defended by the Company.
2. Pending restructuring interest provision on certain
loans/borrowings has not been made and impact of the same is not
presently ascertainable
3. Employee benefits (Revised Accounting Standard 15)
a) Defined Contribution Plan
The company makes contribution towards Provident Fund and ESIC to a
defined contribution retirement benefit plan for qualifying employees.
The Provident Fund plan is operated partly by RegionalProvident Fund
Commissioners and partly by an independent Trust, ESIC by Government
agencies. Under the said schemes the company is required to contribute
a specific percentage of pay roll costs in respect of eligible
employees to the retirement benefit scheme to fund the benefits.
During the year the company has recognised Rs 62.18 lacs for Provident
fund contribution, Rs 21.24 lacs for ESIC. The Contribution payable to
these plans by the Company is at the rates specified in the rules of
the scheme.
Note: Above information have been compiled on the basis of certificate
issued by the Actuaries.
4. The Company has not recognized Deferred Tax Assets (Net) as per
Accounting Standard - 22, regarding "Accounting for Taxation"
estimation of future in view of consistent losses and of uncertainty
regarding Profit with reasonable certainty.
5. Certain Banks and Financial Institutions have taken legal recourse
for recovery of their dues from the company. Loans and Advances
includes Rs. 150 lacs deposited with the Banks in the name of advocates
on record for both parties as per order of Hon''ble Kolkata High Court
in case of litigation with the Bank.
6. Due to non-completion of certain technical formalities, certain
borrowing facilities, which were to be transferred to a body corporate
pursuant to the original scheme of restructuring, could not be made.
7. The company has applied from time to time to The Reserve Bank of
India for extension/ set off of certain overdue bills, approval of
which is still awaited.
8. In preparation of these Accounts, cognizance has not been taken by
the Company of a Debit Note sent by a body corporate in an earlier
year, indicating the unilateral transfer back by the said body
corporate of all the assets which were transferred to them on
01.04.2000, together with all existing and underlying
securities/charges as part of the restructuring scheme formulated by
ICICI, in view of the various judicial proceedings pending at this
juncture. However, the Company has been legally advised to deal with
the above transfer back only after final disposal of the process of
adjudication by the Court.
9. Export obligation for the assets acquired/taken on lease without
payment of applicable duties lies with the Company under the provisions
of the Exim Policy (Amount unascertained).
10. Discounts, commission & other selling expenses include commission
Rs 133.81 lacs. (Pr. year Rs 161.97 Lacs)
11. Claims had been filed against the Compamy by a body corporate
amounting to Rs. 21625 Lacs for non fulfillment of certain clauses of
an agreement relating to transfer of Nagpur Unit to them in respect
this we are unable to express our opinion on liablities that may arise
eventualy on finalistion of suit
12. The previous year''s figures have been reworked, regrouped,
rearranged and reclassified wherever necessary and practi- cable.
Amounts and other disclosures for the preceding year are included as an
integral part of the current year financial statements and are to be
read in relation to the amounts and other disclosures relating to the
current year.
Mar 31, 2013
1. Contingent Liabilities and Commitments.
(To the extent not provided for)
i) Contingent Liabilities
a) Claim against the company not
acknowledged as debt.
b) Guarantees 7,67,222 7,67,222
c) Other money for which the company
is contingently liable:
< Letter of Credit 9,882
< Arrear Dividend on 13% Non Convertible
Cumulative
Redeemable Preference Shares.
(Refer Note 2 (b) ) 38,224 38,224
< Entry Tax 5,035
< Central / Commercial Sale Tax Demands 23,357
< Excise Demands 20,965
< Custom Demands 77,393
< Professional Tax/Labour Cases/Water Cess etc. 981
< Non fulfilment of Export Obligation
under ISIL Scheme 1,75,837 38,225
Total - 9,43,059 8,05,447
Note :
1) Claims/Disputed liabilities not acknowledged as debt,the amount of
which is not ascertained.
2) Gaurantees include Corporate Guarantees Rs.7000 lacs (Previous Year
Rs.7000 lacs) given by the Company to financial Institutions and Banks
for granting Term Loans and Working Capital Loans to certain Body
Corporates.
2. Based on the guiding principles given in Accounting Standards on
"fSegment Reporting"f (AS-17) the Company''s primary business segment is
Wool and Silk business. Segment wise Revenue, Results and Capital
Employed under Clause 41 of the Listing Agreement for the year ended
31st March 2013.
3. Employee benefits (Revised Accounting Standard 15)
a) Defined Contribution Plan
The company makes contribution towards Provident Fund and ESIC to a
defined contribution retirement benefit plan for qualifying employees.
The Provident Fund plan is operated partly by RegionalProvident Fund
Commissioners and partly by an independent Trust, ESIC by Government
agencies. Under the said schemes the company is required to contribute
a specific percentage of pay roll costs in respect of eligible
employees to the retirement benefit scheme to fund the benefits.
During the year the company has recognised Rs 62.18 lacs for Provident
fund contribution, Rs. 21.24 lacs for ESIC. The Contribution payable to
these plans by the Company is at the rates specified in the rules of
the scheme.
b) Defined benefit Plans :
i) The plan provides for a lump sum payment to vested employees upon
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary payable for each
completed year of service. Vesting occurs upon completion of five years
of continuous service.
ii) The employees of the company are eligible for encashment of leave
upon retirement up to 30 days for each year (Maximum 120 days). Leave
is accounted for on accrual basis.
4. The Company has not recognized Deferred Tax Assets (Net) as per
Accounting Standard  22, regarding "fAccounting for Taxation"f
estimation of future in view of consistent losses and of uncertainty
regarding Profit with reasonable certainty.
5. Certain Banks and Financial Institutions have taken legal recourse
for recovery of their dues from the company. Loans and Advances
includes Rs. 150 lacs deposited with the Banks in the name of advocates
on record for both parties as per order of Hon''ble Kolkata High Court
in case of litigation with the Bank.
6. Due to non-completion of certain technical formalities, certain
borrowing facilities,which were to be transferred to a body corporate
pursuant to the original scheme of restructuring, could not be made.
7. The company has applied from time to time to The Reserve Bank of
India for extension/ set off of certain over- due bills, approval of
which is still awaited.
8. In preparation of these Accounts, cognizance has not been taken by
the Company of a Debit Note sent by a body corporate in an earlier year
, indicating the unilateral transfer back by the said body corporate of
all the assets which were transferred to them on 01.04.2000, together
with all existing and underlying securities/charges as part of the
restructuring scheme formulated by ICICI, in view of the various
judicial proceedings pending at this juncture. However, the Company has
been legally advised to deal with the above transfer back only after
final disposal of the process of adjudication by the Court.
9. Export obligation for the assets acquired/taken on lease without
payment of applicable duties lies with the Company under the provisions
of the Exim Policy (Amount unascertained).
10. Discounts, commission & other selling expenses include commission
Rs 161.97 lacs. (Pr. year Rs 109.78 Lacs)
11. Claims had been filed against the Compamy by a body corporate
amounting to Rs. 21625 Lacs for non fulfillment of certain clauses of
an agreement relating to transfer of Nagpur Unit to them in respect
this we are unable to express our opinion on liablities that may arise
eventualy on finalistion of suit.
12. The Previous figure have been regrouped/rearranged whereever
necessary.
Mar 31, 2012
A) Rights, Preferances and Restrictions attached to Shares Issued :
Each Equity Shareholder holding shares of Rs. 10/- each is eligible for
one vote per share held and is entitled to dividend when proposed by
the Board of Directors subject to the approval of the sharesholders in
the Annual General Meeting. Each Equity Shares holders is entitled to
participate in repayament of Capital on liquidation after all secured
creditors have been paid.
Note :
13%- Non Convertible Cumulative Redeemable Preference Shares have
already matured for redemption completely by 12 th December' 2002 as
per terms of redemtion. However, no part of this Share Capital amount
could be redeemed by the aforesaid date. The Company has received
during the year 2010-11 a letter from IDBI, The holders demanding
forthwith the payament of the entire amount due on redemption together
with the dividends due thereon.
However, the matter is pending restructuring of loans due to banks and
financial institutions.
Notes :
1) The company, being a sick industrial undertaking could not redeem
debentures & interest thereof as per the terms of issue, which will be
dealt properly in the restructuring scheme. Accordingly no transfer has
been made to the Account of Investor & Protection fund.
2) Following the declaration of the Company as a Sick Industrial
undertaking by the Board for Industrial and Financial Reconstruction
(BIFR) vides its Order dated 30.01.2006 in terms of Section 3 (1) (A)
of the Sick Industrial Companies (Special Provisions) Act, 1985 and
also athe appointment of Industrial Development Bank of India as scheme
for the Operating Agency for preparation of a viability study report
and revised the Company, Appeals against the said order were preferred
by some of the secured lenders as well as the Company before the
AppellateAuthority for Industrial & Financial Reconstruction (AAIFR).
The said appeals were taken up and adjudicated and vide its order dated
05.12.2007, AAIFR has remanded back to BIFR with a direction to
reconsider the earlier references of the company on the basis of its
earlier Balance Sheets also. During the year 2010-11 in one of the
appeals pending before AAIFR and in pursuance of ARCIL application to
AAIFR has opined that in veiw of the actions taken by ARCIL under
Section 13 (4) of SARFAESI Act, the reference filed by the Company
stood abated under in one of the appeals pendingbefore AAIFR and
inpursuance of ARCIL application to AAIFR has opined that in veiw of
the actions taken by ARCIL under Section 13 (4) of SARFAESI Act, the
reference filed by the Company stood abated under the proviso to
Section 15(1) of SICA.
3) Under the provisions of Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act ), ARCIL has taken over possession of the secured assets
of the Company's plants during the Financial Year 2008-09 and has
appointed Indoworth India Ltd as the Custodian of such assets. The
Company's business continued since the aforesaid take over as usual.
However, the matter is subjudice in a suit before the Calcutta High
Court and necessary adjustments in the financial statements, if
required, would be made upon final adjudication of the proceedings.
However, these Accounts have been prepared on a Going Concern basis as
the Management is of the view that the Going Concern assumption is not
vitiated for the reason as stated above.
4) The outstanding balance of Term Loans from Financial Institutions
and some of the banks are subject to receipt of confirmation
/statements, which couldnot be avialable due to restructuring in
progress.
Note :
1) Amount dues to suppliers, which are subject to cnfirmation of the
parties.
2) There are certain cases pending in appropriate court regarding goods
supplied by various creditors which are being disputed by the company.
Advance given to them will be adjusted once the cases are disposed off
and settled.
Note :
1) Sundry Debtors includes Rs.1229.69 Lacs due from a Company which has
become sick and registered with BIFR under the Sick Industrial
Companies ( Special Provisions ) Act, 1985. Quantum of amount
considered doubtful is not ascertainable at this Stage. Accordingly no
provision has been made in the account in this regards.
2) In respect of Sundry Debtors (including Domestic sales Debtors )
adjustments are pending against supplies and other liabilities, etc due
to the buyers Managent is confident of recovering the balance after
such adjustments pending approval from concerned regulatory authority.
3) Certain Debtors are subject to Confirmation.
4) Sundry Debtors includes :
i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for
long against which the acompany has obtained a decree for realizing the
outstanding debts over a period of time ranging up to twenty years. The
company has also filed an appeal for reduction/variation of the period
of time.
ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for
long that will be set off against import liabilities, claims, and
commission etc. of the respective parties.
Note :
1) Claim receivable of Rs. 689.36 lacs due from various banks on
account of excess interest charged by them in earlier years are subject
to confirmation. No provision has been made there against.
2) Short Term Loans and Advances includes Rs.1479.02 Lacs which have
become sick and referred to BIFR under the Sick Industrial Companies (
Special Provisions ) Act, 1985. Quantum of amount considered doubtful
is not ascertainable at this Stage. Accordingly no provision has been
made in the account in this regards.
3) Certain Advances are subject to Confirmation.
Note :
The adjustment of Rs. 5948.37 lacs pertaining to transfer of Fixed
Assets of the company in earlier years under scheme of demerger is
still pending and will be dealt in restructuring Scheme.
(Rs in 000's)
2011-12 2010-11
Rs. Rs. Rs. Rs.
1. Contingent Liabilities
and Commitments.
(To the extent
not provided for)
i) Contingent Liabilities
a) Claim against the
company not acknowledged
as debt.
b) Guarantees 767,222 767,222
c) Other money for which
the company is
contingently liable :
< Letter of Credit 9,882
< Arrear Dividend on 13%
Non Convertible Cumulative
Redeemable Preference
Shares.(Refer Note 2 (b) 38,224 38,224
< Entry Tax
< Central /Commercial
Sale Tax Demands
< Excise Demands
< Custom Demands 1 38,225 1 48,106
Total 805,447 815,328
Note :
1) Claims/Disputed liabilities not acknowledged as debt,the amount of
which is not ascertained.
2) Gaurantees include Corporate Guarantees Rs.7000 lacs (Previous Year
Rs.7000 lacs) given by the Company to financial Institutions and Banks
for granting Term Loans and Working Capital Loans to certain Body
Corporates.
2. Based on the guiding principles given in Accounting Standards on
"Segment Reporting" (AS-17) the Company's primary business segment
is Wool and Silk business.
Segment wise Revenue, Results and Capital Employed under Clause 41 of
the Listing Agreement for the year ended 31st March 2012
3. Employee benefits (Revised Accounting Standard 15)
a) Defined Contribution Plan
The company makes contribution towards Provident Fund and ESIC to a
defined contribution retirement benefit plan for qualifying employees.
The Provident Fund plan is operated partly by RegionalProvident Fund
Commissioners and partly by an independent Trust, ESIC by Government
agencies. Under the said schemes the company is required to contribute
a specific percentage of pay roll costs in respect of eligible
employees to the retirement benefit scheme to fund the benefits.
During the year the company has recognised Rs 73.46 lacs for Provident
fund contribution, Rs 23.05 lacs for ESIC. The Contribution payable to
these plans by the Company is at the rates specified in the rules of
the scheme.
b) Defined benefit Plans :
i) The plan provides for a lump sum payment to vested employees upon
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary payable for each
completed year of service. Vesting occurs upon completion of five years
of continuous service.
ii) The employees of the company are eligible for encashment of leave
upon retirement up to 30 days for each year (Maximum 120 days). Leave
is accounted for on accrual basis.
4. The Company has not recognized Deferred Tax Assets (Net) as per
Accounting Standard - 22, regarding "Accounting for Taxation"
estimation of future in view of consistent losses and of uncertainty
regarding Profit with reasonable certainty.
5. Certain Banks and Financial Institutions have taken legal recourse
for recovery of their dues from the company. Loans and Advances
includes Rs. 150 lacs deposited with the Banks in the name of advocates
on record for both parties as per order of Hon'ble Kolkata High Court
in case of litigation with the Bank.
6. Due to non-completion of certain technical formalities, certain
borrowing facilities,which were to be transferred to a body corporate
pursuant to the original scheme of restructuring, could not be made.
7. The company has applied from time to time to The Reserve Bank of
India for extension/ set off of certain over-due bills, approval of
which is still awaited.
8. In preparation of these Accounts, cognizance has not been taken by
the Company of a Debit Note sent by a body corporate in an earlier year
, indicating the unilateral transfer back by the said body corporate of
all the assets which were transferred to them on 01.04.2000, together
with all existing and underlying securities/charges as part of the
restructuring scheme formulated by ICICI, in view of the various
judicial proceedings pending at this juncture. However, the Company has
been legally advised to deal with the above transfer back only after
final disposal of the process of adjudication by the Court.
9. Export obligation for the assets acquired/taken on lease without
payment of applicable duties lies with the Company under the provisions
of the Exim Policy (Amount unascertained).
10. Discounts, commission & other selling expenses include commission
Rs 199.78 lacs. (Pr. year Rs 181.13 Lacs)
11. The financial statement for the year ended 31st March' 2011 had
been prepared as per the then applicable, pre-revised Schedule VI to
the Companies Act 1956.Consequent to the notification of Revised
Schedule VI under the Companies Act 1956, the financial statements for
the year ended 31st March' 2012 are prepared as per Revised Schedule VI
Accordingly, the previous years figures have also been reclassified to
conform to this year's classification. The adoption of Revised Schedule
VI for previous years figures does not impact recognition and measurement
principles followed for preparation of financial statements.
Mar 31, 2011
1. Contingent Liabilities not provided for in respect of:
a) Guarantees outstanding Rs 672.22 lacs (Previous year Rs. 672.22
lacs)
b) Letter of credit Rs. 92.82 Lacs(Previous year Rs. 341.32 Lacs)
c) Arrear Dividend on 13% Non-Convertible Cumulative Redeemable
Preference Shares as or- 31st March 2011 amounts to Rs. 382.24 lacs
(Previous year Rs 382.24 lacs). See also Note B4 herein below
d) Claims/Disputed liabilities not acknowledged as debt, the amount of
which is not ascertained.
e) Against outstanding Bank guarantee/letter of credit - Fixed deposit
NIL (Previous year Rs. 257.00 Lacs) lacs lodged as security.
The company has received the following demands, which are disputed by
the company and not provided for :
2. The Company has given Corporate Guarantees to Financial Institutions
and Banks for granting Term Loans and Working Capital Loans to certain
body corporates to the extent of Rs. 7000 lacs (Previous year Rs. 7000
lacs).
3.i) Following the declaration of the Company as a Sick Industrial
undertaking by The Board for Industrial and Financial Reconstruction
(BIFR) vide its order dated 30.01.2006 in terms of Section 3 (1) (A) of
the Sick Industrial Companies (Special Provisions) Act, 1985 and also
the appointment of Industrial Development Bank of India as the
Operating Agency for preparation of a viability study report and
revised scheme for the Company, Appeals against the said order were
preferred by some of the secured lenders as well as the Company before
the Appellate Authority for Industrial & Financial Reconstruction
(AAIFR). The said appeals were taken up and adjudicated and vide its
order dated 05.12.2007, AAIFR has remanded back to BIFR with a
direction to reconsider the earlier references of the company on the
basis of its earlier balance sheets also. During the year, in one of
the appeals pending before AAIFR and in pursuance of ARCIL application
to AAIFR, has opined that in view of the actions taken by ARCIL under
Section 13(4) of SARFAESI Act, the reference filed by the Company stood
abated under the proviso to Section 15(1) of SICA.
ii) Under the provisions of Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act), ARCIL has taken over possession of the secured assets
of the Company's plants during the Financial Year 2008-09 and has
appointed Indoworth India Limited as the Custodian of such assets. The
Companies business continued throughout the year as usual. However, the
matter is subjudice in a suit before the Kolkata High Court and
necessary adjustments in the financial statements, if required, would
be made upon final adjudication of the proceedings.
However, these Accounts have been prepared on a Going Concern basis as
the Management is of the view that the Going Concern assumption is not
vitiated for the reason as stated above.
4. 13% Non-Convertible Cumulative Redeemable Preference Shares of the
company has not been redeemed at par as per term of issue in 3 equal
installments completely by 12th December, 2002. The company has
received during the year a letter from IDBI , the holders demanding
forthwith the payment of the entire amount due on redemption together
with the dividends due thereon. However the matter is pending
restructuring of loans due to Bank and Financial Institutions.
5. Sundry Debtors includes :
i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for
long against which the company has obtained a decree for realizing the
outstanding debts over a period of time ranging up to twenty years. The
company has also filed an appeal for reduction/variation of the period
of time.
ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for
long that will be set off against import liabilities, claims, and
commission etc. of the respective parties.
iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for
long against which the management has taken appropriate steps for its
recovery.
6. i) The final settlement in respect of sales claims & commissions
provided during the year 2002-03 for Rs. 8722.28 lacs is still pending
& the necessary adjustment for such clairris & commissions will be made
after finalisation on receipt of necessary approval from the concerned
regulatory authorities. ii) Based on the past experience the company
has provided Rs. 163.78 Lacs (Previous year Rs.72.23 lacs) during the
year as sales claims which the management thinks adequate to meet
future claims.
7. The company has applied from time to time to The Reserve Bank of
India for extension/ set off of certain overdue bills, approval of
which is still awaited.
8. There are certain cases pending in appropriate court regarding
goods supplied by various creditors, which are being disputed by the
Company. Advances given to them will be adjusted once the cases are
disposed of and settled.
9. Current assets includes the understated amounts receivable from
Companies, which have become sick and referred to BIFR under the Sick
Industrial Companies (Special Provisions) Act, 1985.
10. Export obligation for the assets acquired/taken on lease without
payment of applicable duties lies with the Company under the provisions
of the Exim Policy (Amount unascertained).
11. a) Interest provision on borrowing from some of the institutions
and banks has been made in the accounts at prevailing/estimated rates
on simple interest basis applicable on such loans. The impact of
compound interest/Penal charges wherever applicable could not be
ascertained.
b) The outstanding balance of Working Capital facilities from some of
the banks and Term Loans from Financial Institutions are subject to
receipt of confirmation/ statements. Balances in current account from
some of the Banks are also subject to receipt of confirmation/
statement.
c) Pending restructuring interest provision on certain loans/borrowings
has not been made and impact of the same is not presently
ascertainable.
d) Certain Banks and Financial Institutions have taken legal recourse
for recovery of their dues from the company. Loans and Advances include
Rs. 150 Lacs deposited with the Banks in the name of advocates on
record for both parties as per order of Hon'ble Kolkata High Court in
case of litigation with a Bank.
12. As per technical opinion by the Company, the Company's Plant have
been designed and operated on continuous process plant basis and
depreciation has been provided at rates applicable to continuous
process plant.
13. No interest income on loan amounting to Rs. 227.30 lacs has been
accounted for during the year considering the financial health of the
other Companies. However, the Management considers the outstanding
principal amount of Rs. 227.30 lacs and interest receivable amounting
to Rs. 136.69 lacs thereon as good and recoverable.
14. Due to non-completion of certain technical formalities, certain
borrowing facilities, which were to be transferred to a body corporate
pursuant to the original scheme of restructuring, could not be made.
15. The claim receivable includes Rs. 689.36 Lacs due from various
banks on account of excess interest charged by them in earlier years
are subject to confirmation. No provision has been made there against.
16. Certain Debtors, Creditors and Advances are subject to
confirmation.
17. In respect of Sundry Debtors (including Domestic Sales Debtors)
adjustments are pending against supplies and other liabilities etc due
to the buyers. Management is confident of recovering the balance after
such adjustments pending approval from concerned regulatory authority.
18. The company, being a sick industrial undertaking, could not redeem
debentures & interest thereof as per the terms of issue, which will be
dealt properly in the restructuring scheme.
19. The adjustment of Rs. 59.48 crores pertaining to transfer of Fixed
Assets of the company in earlier years under scheme of demerger is
still pending and will be dealt in the restructuring scheme.
20. In preparation of these Accounts, cognizance has not been taken by
the Company of a Debit Note sent by a body corporate, indicating the
unilateral transfer back by the said body corporate of all the assets
which were transferred to them on 01.04.2000, together with all
existing and underlying securities/charges as part of the restructuring
scheme formulated by ICICI, in view of the various judicial proceedings
pending at this juncture. However, the Company has been legally advised
to deal with the above transfer back only after final disposal of the
process of adjudication by the Court.
NOTES:
A) PRODUCTION :
Q Silk Waste dispatched includes recycled during the year 104222 Kgs
(Previous year production excludes waste recycled 92551 kgs)- 5)
Worsted Yarn Production excludes 44688 kgs of yarn (Previous year 9517
kgs) issued for reprocessing. Si) Worsted Yarn production exclude job
account production of 544553 kgs (Previous year 445362 kgs)
B) SALES :
The above figure excludes the following; however consider the same in
sales schedule.
i) Worsted yarn sales excludes job processing charges amounting to Rs
430.71 lacs (Previous year Rs. 235.06 lacs) and Top sale Rs 34.54 lacs
(Previous year Top sale Rs 1430.15). ii) Silk Yarn sales excludes Silk
Top sale of quantity 1640.65 kgs value Rs. 24.09 lacs (Previous year
Qty 3927 kgs value Rs. 47.47 lacs). Si) OES Yarn sales excludes
OESTop qty 500 kgs amounting to Rs 2.39 lacs.(Previous year Qty 2561
kgs value Rs. 12.14 lacs).
h) The Company has not recognized Deferred Tax Assets (Net) as per
Accounting Standard 22, regarding "Accounting for Taxation" in view of
consistent losses and of uncertainty regarding estimation of future
Profit with reasonable certainty.
21. Employee benefits (Revised Accounting Standard 15)
a) Defined Contribution Plan :
The company makes contribution towards Provident Fund and ESIC to a
defined contribution retirement benefit plan for qualifying employees.
The Provident Fund plan is operated partly by Regional Provident Fund
Commissioners and partly by an independent Trust, ESIC by Government
agencies. Under the said schemes the company is required to contribute
a specific percentage of pay roll costs in respect of eligible
employees to the retirement benefit scheme to fund the benefits.
During the year the company has recognised Rs. 54.98 lacs for Provident
fund contribution, Rs. 16.87 lacs for ESIC. The Contribution payable to
these plans by the Company are at the rates specified in the rules of
the scheme.
b) Defined benefit Plans :
i) The plan provides for a lump sum payment to vested employees upon
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary payable for each
completed year of service. Vesting occurs upon completion of five years
of continuous service.
ii) The employees of the company are eligible for encashment of leave
upon retirement up to 30 days for each year (Maximum 120 days). Leave
is accounted for on accrual basis.
Mar 31, 2010
1. Contingent Liabilities not provided for in respect of:
a) Guarantees outstanding Rs 672.22 lacs (Previous year Rs. 669.75
lacs)
b) Letter of credit Rs. 341.32 Lacs(Previous year Rs. 341.32 Lacs)
c) Arrear Dividend on 13% Non-Convertible Cumulative Redeemable
Preference Shares as on 31st March 2010 amounts to Rs. 382.24 lacs
(Previous year Rs 382.24 lacs)
d) Claims/Disputed liabilities not acknowledged as debt, the amount of
which is not ascertained.
e) Against outstanding Bank guarantee/letter of credit- Fixed deposit
Rs. 257(Previous year Rs. 204.76 Lacs) lacs lodged as security.
2. The Company has given Corporate Guarantees to Financial
Institutions and Banks for granting Term Loans and Working Capital
Loans to certain body corporates to the extent of Rs. 7000 lacs
(Previous year Rs. 7000 lacs).
3. i) Following the declaration of the Company as a Sick Industrial
undertaking by The Board for ..Industrial and Financial Reconstruction
(BIFR) vide its order dated 30.01.2006 in terms of Section 3 (1) (A) of
the Sick Industrial Companies (Special Provisions) Act, 1985 and also
the appointment of Industrial Development Bank of India as the
Operating Agency for preparation of a viability study report and
revised scheme for the Company, Appeals against the said order were
preferred by some of the secured lenders as well as the Company before
the Appellate Authority for Industrial & Financial Reconstruction
(AAIFR). The said appeals were taken up and adjudicated and vide its
order dated 05.12.2007, AAIFR has remanded back to BIFR with a
direction to reconsider the earlier references of the company on the
basis of its earlier balance sheets also. During the year, in one of
the appeals pending before AAIFR and in pursuance of ARCIL application
toAAIFR, has opined that in view of the actions taken by ARCIL under
Section 13(4) of SARFAESI Act, the reference filed by the Company stood
abated under the proviso to Section 15(1) of SICA.
ii) Under the provisions of Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act), ARCIL has taken over possession of the secured assets
of the Companys plants during the last Financial Year and has
appointed Indoworth India Limited as the Custodian of such assets. The
Companies business continued throughout the year as usual. However, the
matter is subjudice in a suit before the Kolkata High Court and
necessary adjustments in the financial statements, if required, would
be made upon final adjudication of the proceedings.
However, these Accounts have been prepared on a Going Concern basis as
the Management is of the view that the Going Concern assumption is not
vitiated for the reason as stated above.
4. 13% Non-Convertible Cumulative Redeemable Preference Shares of the
company has not been redeemed at par as per term of issue in 3 equal
installments completely by 12th December, 2002. The company has
received during the year a letter from IDBI , the holders demanding
forthwith the payment of the entire amount due on redemption together
with the dividends due thereon. However the matter is pending
restructuring of loans due to Bank and Financial Institutions.
5. Sundry Debtors includes :
i) Rs. 3697.89 Lacs representing overdue Export Bills outstanding for
long against which the company has obtained a decree for realizing the
outstanding debts over.a period of time ranging up to twenty years. The
company has also filed an appeal for reduction/ variation of the period
of time.
ii) Rs. 27097.12 lacs representing overdue Export Bills outstanding for
long that will be set off against import liabilities, claims, and
commission etc. of the respective parties.
iii) Rs. 992.30 lacs representing overdue Export Bills outstanding for
long against which the management has taken appropriate steps for its
recovery.
6. i) The final settlement in respect of sales claims & commissions
provided during the year 2002-03 for Rs. 8722.28 lacs is still pending
& the necessary adjustment for such claims & commissions will be made
after finalisation on receipt of necessary approval from the concerned
regulatory authorities.
ii) Based on the past experience the company has provided Rs. 72.23
Lacs (Previous year Rs. 189.53 lacs) during the year as sales claims
which the management thinks adequate to meet future claims.
7. The company has applied from time to time to The Reserve Bank of
India for extension/ set off of certain overdue bills, approval of
which is still awaited.
8. There are certain cases pending in appropriate court regarding
goods supplied by various creditors, which are being disputed by the
Company. Advances given to them will be adjusted once the cases are
disposed of and settled.
9. a) Interest provision on borrowing from some of the institutions
and banks has been made in the accounts at prevailing/estimated rates
on simple interest basis applicable on such loans. The impact of
compound interest/Penal charges wherever applicable could not be
ascertained.
b) The outstanding balance of Working Capital facilities from some of
the banks and Term Loans from Financial Institutions are subject to
receipt of confirmation/ statements. Balances in current account from
some of the Banks are also subject to receipt of confirmation/
statement.
c) Pending restructuring interest provision on certain loans/borrowings
has not been made and impact of the same is not presently
ascertainable.
d) Certain Banks and Financial Institutions have taken legal recourse
for recovery of their dues from the company. Loans and Advances include
Rs. 150 Lacs deposited with the Banks in the name of advocates on
record for both parties as per order of Honble Kolkata High Court in
case of litigation with a Bank.
10. As per technical opinion by the Company, the Companys Plant have
been designed and operated on continuous process plant basis and
depreciation has been provided at rates applicable to continuous
process plant.
11. No interest income on loan amounting to Rs. 227.30 lacs has been
accounted for during the year considering the financial health of the
other Companies. However, the Management considers the outstanding
principal amount of Rs. 227.30 lacs and interest receivable amounting
to Rs.136.69 lacs thereon as good and recoverable.
12. Due to non-completion of certain technical formalities, certain
borrowing facilities, which were to be transferred to a body corporate
pursuant to the original scheme of restructuring, could not be made.
13. The claim receivable includes Rs. 689.36 Lacs due from various
banks on account of excess interest charged by them in earlier years
are subject to confirmation. No provision has been made there against.
14. Certain Debtors, Creditors and Advances are subject to
confirmation.
15. In respect of Sundry Debtors (including Domestic Sales Debtors)
adjustments are pending against supplies and other liabilities etc due
to the buyers. Management is confident of recovering the balance after
such adjustments pending approval from concerned regulatory authority.
16. The company, being a sick industrial undertaking, could not redeem
debentures & interest thereof as per the terms of jssue, which will be
dealt properly in the restructuring scheme.
17. The adjustment of Rs. 59.48 crores pertaining to transfer of Fixed
Assets of the company in earlier years under scheme of demerger is
still pending and will be dealt in the restructuring scheme.
18. In preparation of these Accounts, congnizance has not been taken
by the Company of a Debit Note sent by a body corporate within the year
end, indicating the unilateral transfer back by the said body corporate
of all the assetswhich were transferred to them on 01.04.2000,
tegether with all existing and underlying securities/charges as part of
the restructuring scheme formulated by ICICI, in view of the various
judicial proceedings pending at this juncture. Howerver, the Company
has been legally advised to deal with the above transfer back only
after final disposal of the process of adjudication by the Court.
19. Discounts, commission & other selling expenses include commission
Rs. 102.01 lacs (Previous year Rs. 46.53 lacs).
20. Related Party Disclosure :
Related Party disclosure as required by AS -18, "Related Party
Disclosure" are given below :
a. Relationship :
Associates :
Uniworth Textiles Ltd.
Uniworth Power Ltd.
Uniworth Apparel Ltd.
Aviante International Ltd.
Key Management Personnel Mr. Shiv Sharma
21. Employee benefits (Revised Accounting Standard 15)
a) Defined Contribution Plan :
The company makes contribution towards Provident Fund and ESIC to a
defined contribution retirement benefit plan for qualifying employees.
The Provident Fund plan is operated partly by Regional Provident Fund
Commissioners and partly by an independent Trust, ESIC by Government
agencies. Under the said schemes the company is required to contribute
a specific percentage of pay roll costs in respect of eligible
employees to the retirement benefit scheme to fund the. benefits.
During the year the company has recognised Rs. 41.48 lacs for Provident
fund contribution, Rs 9.99 lacs for ESIC. The Contribution payable to
these plans by the Company are at the rates specified in the rules of
the scheme.
b) Defined benefit Plans :
i) The plan provides for a lump sum payment to vested employees upon
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary payable for each
completed year of service. Vesting occurs upon completion of five years
of continuous service.
22. Previous Years figures have been re-grouped/re-arranged wherever
considered necessary and figures in brackets relates to Previous Year.
23. Schedule 1 to 11 and 20-form part of the Balance Sheet as at 31st
March 2010 and Schedule 12 to 20 - form part of the Profit & Loss
Account for the year ended on that date.
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