| 1. The Company has one class of equity shares having a par value of Rs.
10 per share. Each holder of equity share is entitled to one vote per
share. The paid-up equity shares of the Company rank pari- passu in all
respects including dividend. In the event of liquidation of the Company,
the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares
held by the shareholders.
2 Redeemable, Non convertible and Non-Cumulative Preference Shares of
Face value of Rs. 100/- on such terms and conditions including but not
limited as to the rate of dividend, period and manner of redemption as
the Board in its absolute discretion may determine for the purpose of
agmenting the long term resource base of the company.
3. Issued to bankers against their sacrifice (341200 Debentures of
Rs. 1000/- each payable on 31-03-2026)
Working Capital Limit (Paper Divison)
First charge by way of hypothecation of raw materials, stock in
process, finished goods, receivables & other current assets of the
Paper Division ranking pari-passu basis with the consortium members
(OBC, PNB, SYB, IOB & Allahabad Bank).
4. Term Loan (Paper Division)
First charge on the entire fixed assets of the Paper Division present &
future (Excluding PCC) ranking on pari-passu basis. (OBC, PNB, SYB, IOB
& Allahabad Bank, Vijaya Bank). Exclusive charge on all PCC project
assets in favour of Syndicate Bank. Collateral Pari-Passu second charge
on the entire fixed assets of the company (present & future) along with
other consortium member banks.
5. Term Loan-Hotel Division
First charge on present/future blocks assets of Hotel division ranking
pari-passu with other lenders of the project. (OBC, PNB, SYB, IOB &
Allahabad Bank, Vijaya Bank).
6. Collateral
Working capital facilities shall be collaterally secured by way of
Second Charge on entire fixed assets (present & future) of the company
on pari-passu basis with the members of consortium. First charge
against these assets shall continue with term lending banks.
Term loan facilities shall be collaterally secured by way of Second
Charge on entire current assets (present & future) of the company on
pari-passu basis with the members of consortium. First charge against
these assets shall continue with working capital lender banks.
7.
For the Year For the Year
ended as on ended as on
DEFERRED TAX ASSETS /
DEFERRED TAX LIABILITY 31.03.2015 31.03.2014
Deferred Tax Assets (A) - 448,952,191.00
Deferred Tax Liabilities (B)
Net Deferred Tax Asset/
(Liability) (A-B) - 272,679,101.00
8
For the Year For the Year
ended as on ended as on
Long Term Loans & Advances 31.03.2015 31.03.2014
Security Deposit
Unsecured, Considered good 12,404,267.63 10,242,892.63
Zero Coupon Non-Convetiable
Debentures (Non-Current) 341,200,000.00 341,200,000.00
Total 353,604,267.63 351,442,892.63
9. Issued to bankers against their sacrifice (341200 Debentures
of Rs. 1000/- each payable on 31-03-2026)
(B) OTHER NOTES
10. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF THE
FOLLOWING :
Name of Name of the Amount(Rs.)
the Statue Dues
Custom & CENVAT 8, 28, 510/-
Central Credit
Excise
Custom & Excise Duty 20,97,503/-
Central on Production
Excise loss
Sale Tax Central Sale 91,437/-
tax
Excise Law Duty on 26,135/-(Plus
Waste Interest
26,135
Penalty)
Excise Law Duty on 1,73,115/-(
Waste Plus Interest
and 1,73,115)
Excise Law Duty on 1,58,816/-
Waste (Plus Interest)
Excise Law SCN for Duty 14,62,96,594/-
of excise on (Interest and
paper board Penalty)
Service Tax Demand of 90,11,674/-
Law Service Tax 21,458/-
Hotel 15,393/-
(Interest &
penalty)
Service Tax SCN for 1,64,00,749/-
Law Service Tax (Interest &
from Hotel penalty)
Excise Law Departmental 30,80,824/-
Appeal
against refund
order of
Newsprint
Excise Law Paper 13,28,43,130/-
Division- ( Interest
Newsprint- Penalty)
SCN
Excise Law Paper Division 5,83,68,368/-
Newsprint- (Interest
SCN Penalty)
Name of Period to Status/Forum
the Statue which the where Dispute is
amount Pending
relate
Custom & 2006 Custom & Central
Central Excise Department
Excise has filed appeal in
Allahabad high
Court.
Custom & 2005-06 Addl. Commissioner
Central of Excise show
Excise cause notice
pending
Sale Tax 2010-11 Demand due U/S
28(1) is not paid yet.
May 12,2014
Excise Law Sept 2010 Appeal (A No.
to April E/3763/2012) has
2011 been filed against
the Show cause
Notice
(dt. 8.8.2011)
Excise Law Feb 2009 Appeal (A No.
to August E/2162/2012) has
2010 been filed against
the Show cause
Notice (dt.
9.12.2010)
Excise Law 2004-05 to Appeal (A No.
2007-08 E/2039/2011) has
been filed against
the Show cause
Notice (dt.
29.04.2009)
Excise Law Letter sent to
Commissioner ,GZB
to refer withdrawal
of SCN
2006-2010 Tribunal Delhi, Stay
Service Tax Granted and stay
Law extended.
Service Tax 2010-2011 Order Passed by
Law Comm. And Appeal
filed before Tribunal,
Delhi on 27.08.2013
Excise Law Tribunal Delhi, Next
Hearing Date yet to
be notified
Excise Law The company is
under preparation of
Reply
Excise Law The company is
under preparation of
Reply
Total Export Obigation Rs. 50,31,14,020/-
Export Turnover /Earning in Foreign Rs. 38,38,83,983/-
Currency up to 31-03-2015
Export Turnover yet to achieve Rs. 11,92,30,037/-
11. On April 8, 2014, a SIB search by Sale Tax Department of Uttar
Pradesh was conducted at Paper Division of the company some loose
papers consisting challans etc were taken in customer by the department.
Further no tax demand has been raised yet.
12. REMUNERATION PAID TO AUDITORS:
Particular Current Year Last Year
As Statutory Auditors 2,45,000/- Fee 243089/- Service
Service Tax 30282/- Tax 30045/-
Tax Audit Fees 55,000/- Fee 55000/- Service
Service Tax 6798/- Tax 6798/-
In other matter NIL NIL
13. In the opinion of the management, current assets, loans and advances
are of the value stated if realised in the ordinary course of business
except otherwise stated. The provision for all the known liabilities
is adequate and not in excess of the amount considered reasonable.
14. During the year company has suffered loss & hence no provision for
taxation has been made for the year ended 31.03.2015 in accordance with
the provision of Income Tax Act, 1961.
15. Remuneration paid to the Directors of the company is as under:
Particular Current Year Last Year
Mr. Pradeep Kumar Jain 720000.00 -
Mr. Parmod Jain 480000.00 -
Mr. Abhey Jain 480000.00 -
Mr. S. P. Chaturvedi 586400.00 -
16. INCREASE IN AUTHORISED CAPITAL
During the year there is no increase in authorized capital of the
company
17. DEBTORS
The debtors outstanding as on 31.03.15 are inclusive of debtors
amounting to Rs. 2348.49 lakhs which are due for more than six months.
Some of the debtors mentioned above are not presently dealing with the
Company and created disputes for quality/rate out of which, Debtors of
Rs. 110.13 lacs are under litigations.
18. Additional information (as certified by the management and relied
upon by the Auditors)
19. PAPER DIVISION
I) Quantitative information with regard to the licensed & installed
capacity, production & sales of Paper manufactured by the company:
S. No. Particular Current Year Last Year
Qty. in MT Qty in MT.
(a) Licensed Capacity 85000 85000
(b) Installed Capacity NA N.A
20. RELATED PARTY TRANSACTION DISCLOSURE:
The related parties, as defined by Accounting Standard 18 'Related
Party Disclosure' issued by the Institute of Chartered Accountants of
India, in respect of which disclosure have been made, have been
identified on the basis of disclosure made by the managerial persons
and taken on record by the board.
We have identified all the related parties and transactions with all
such information provided to you as under complete in all respects:
21 The Directors have given Interest Free Unsecured Loan to the
Company.
Names of the related parties and descriptions of relationships
Mr. Pradeep Kumar Jain
Mr. Praveen Kumar Jain
Mr. Parmod Kumar Jain
Mr. Abhey Jain
Key Management Mr. Kishan Jain
Mr. RakeshGarg
personne Mr. SubhashOswal
Mr. Naveen Jain
Mr. Bikash Narayan Mishra
Mr. S. P. Chaturvedi
Ms. Monisha Company Secretary
Father of Director
Mr. Salek Chand Jain
Brother of Director
Mr. Vinod Kumar Jain
Wife of Director
Mrs. Veena Jain
Mrs. Rita Jain
Mrs. Asha Jain
Mrs. Monika Jain
Son of Director
Mr. Rishabh Jain
Mr. Ritesh Jain
Relatives of key
Mr. Parv Jain
2 management Daughter of Directors
personnel Mrs. Priyanka Jain
HUF of Father of Director
M/S Salek Chand Jain (HUF)
HUF of Brother of Director
M/S Vinod Jain (HUF)
HUF of Directors
M/S Praveen Kumar Jain (HUF)
M/S Pramod Kumar Jain (HUF)
M/S Pradeep Kumar Jain (HUF)
M/S Abhay Jain (HUF)
Sister of Director
Mrs. Shashi Jain
Firm of Brother in Law of Director
Johri Mal Kama! Kishore
22. SUNDRY CREDITORS:
As per the best available information with the company, No creditor has
intimated their MSME status to us and accordingly there is no amount
outstanding which is payable to small scale industrial undertaking.
Further the company raised claim on its suppliers for
Quality/Quantity/Rate Issues and an amount of Rs. 13,94,87,714/-
included in Short term Loan and Advances as Claim Receivables. The
amounts have not been realised so far and Company is regularly
following up with them and is hopeful of recovery, the same has been
considered as good for recovery. No provision has been created and as
such company will take necessary steps for
realising/recovering/adjustment for the claim as and when settled and
the unrecoverable amount shall be charged in the profit & Loss
Accounts.
23. DEFERRED TAX LIABILITY:
In view of huge accumulated losses of the company and absence of
virtual certainty regarding availability of future taxable income, the
management has decided not to recognise any deferred tax assets for the
year ended March 31,2015.
Further, as per the provisions of Accounting standard 22 Issued by The
Institute of Chartered Accountant of India in the absence of virtual
certainty of future taxable income and considering the losses, the
existing deferred tax assets (net) of Rs 27,26,79,101 recognized in
previous years has been derecognized in the current year.
24. IMPAIRMENT OF ASSETS
In accordance with Accounting Standard 28 'Impairment of Assets' issued
by Institute of Chartered Accountants of India and made applicable from
1st day of April 2004, the company has assessed the potential
generation of economic benefits from its business units as on the
balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business: there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
25. SEGMENT REPORTING
The Company is having two segment Paper division and Hotel Division.
The segment reporting of the company has been prepared in accordance
with Accounting Standard - 17 'Accounting for Segment Reporting' issued
by Institute of Chartered Accountants of India.
26. Primary -
The Company has considered Business segments as primary format for
segment reporting, namely Paper Division & Hotel Division.
27.Geographical Segment
No Geographical segment reporting is required as per the Accounting
Standard 17 issued by the Institute of Chartered Accountants of India.
28.PLEDGING OF SHARES
Presently the promoter of company has pledged the shares in favour of
Lenders to the Company as Security to the tune of 70% of their
shareholding in the Company. Further as per CDR 2nd Re-work package,
balance 30% of their shareholding shall also be pledged and it is under
process of pledging in favour of lenders.
29. CORPORATE DEBT RESTRUCTURING
The Company got approval from CDR EG for second rework vide LOA dated
30th December 2013. The Key Features of the re-work packages is as
under:
30 Cut Off Date : 01st April 2013
b) Reduction in Interest Rate on Term Loans for Paper & Hotel Units,
Additional WCTL and Working Capital Borrowings to 11.50% (base rate of
MI 1.25%).
31 Reduction in Interest Rate on WCTL, FITL to 10.25% (base rate of
MI).
32 Re-payment of principal for Paper Term Loans Rs. 36.58 Cr, PCC - Rs.
24.89 Cr, FITL - Rs. 21.40 Cr, WCTL - Rs. 8.81 Cr to be made in 40
structured quarterly instalments in 10 years commencing form 30.06.13
to 31.03.23.
33 Re-payment of principal for Hotel Loans - Rs. 126.75 Cr to be made
in 52 structured quarterly instalments in 13 years commencing form
30.06.13 to 31.03.26.
34 Re-payment of Additional WCTL - Rs. 48.14 Cr to be made in 36
structured quarterly instalments in 13 years commencing form 30.06.14to
31.03.23.
35 Principal Instalment Repayments during the year are proposed to be
serviced 10% in Qtr I, 15% in Qtr II, 40% in Qtr III and 35% in Qtr IV.
36 Funding of interest for April - June 2013 on Term Loan and WC Limits
of Rs. 8.66 Cr as FITL and to be repaid in 5 years. Interest on FITL
shall be 10.25% i.e. Base Rate of MI
37 Working Capital Limits of Rs. 46 Cr be Continue.
38 100% pledge of Promoter's Shareholding of the Company.
39. The Company to sell surplus land of Rs. 40 Cr approx and its sale
proceeds estimated to be realized Rs. 12 Cr in FY 13-14; Rs. 15 Cr in
FY 14-15; Rs. 7 Cr in FY 15-16 and Rs. 6 Cr in FY 16-17.
40 Promoters to bring in Rs. 9.93 Cr i.e. 25% of Sacrifice of Rs. 39.73
Cr, before implementation of package and Rs. 5 Cr p.a. from FY 2014-15
till all the loans are repaid in full.
41 Bank's Sacrifice: Total Bank's Sacrifice is Rs. 39.73 Cr out of
which; Company will issue Zero Coupon Non Convertible Debentures of Rs.
34.12 Cr redeemable on 31.03.2026. These NCDs shall be secured by first
pari- passu charge on fixed assets of the company and charge shall be
created accordingly.
42. As per CDR Circular, the package should be implemented within 120
days i.e. by April 23, 2014 by all the banks without waiting for their
individual sanctions for the re- structuring package. However banks
wait for sanction from the authorities and the MRA &other documents
were signed on 31st July 2014 and implementation of package in the
system by Banks is pending at their end.
43. As per CDR package, Promoters has inducted Rs. 10.05 Cr against the
stipulated contribution of Rs. 9.93 Cr before 31st March 2014.
44 As per CDR Package, promoters signed and submitted the documents
to the lenders for pledging their balance 30% shareholding.
45. As per CDR Package, The company has to sell surplus land situated at
A-35/1 and A-40/2 Sahibabad Industrial Area, Ghaziabad. The Company
submitted request to UPSIDC for sub-division of plots in August 2014
and entered into agreement to sell with the parties to sell the plots
after sub-division from UPSIDC and collected advance of Rs. 7.85 Cr
during FY 13-14 & FY 14-15. The Sub-division of the plots is pending at
UPSIDC and sales documents of these plots shall be executed after
subdivision permission from UPSIDC.
46. As per CDR package, Non Convertible Debenture (Zero Coupon Bond)
of Rs. 34.12 Cr has been issued by the company on 31st March 2014 in
favour of lenders for their sacrifice repayable on 31st March 2026.
47. Further as per RBI Guideline & CDR Circular on Re-structuring, The
Banks has to classify the re-structured account as sub-standard. Hence
all banks categorized our account as sub-standard.
48. The Company recorded the interest (including the provision) on term
loans and working capital as per interest rate stipulated in the CDR
2nd re-work package.
49. The Accumulated losses of the company as on March 31, 2015 are more
than the net worth of the Company.
50. The Company had filed a case against Shree Laxmipati Balajee
(Trader) for recovery of One Crore before the Honb'le District Court
Ghaziabad, Uttar Pradesh u/s 138 of Negotiable Instrument Act, 1881.
51. Previous year figure have been regrouped and reclassified wherever
considered necessary to make them comparable to those of the current
year.
52. All other information required to be given is either Nil or Not
applicable.
53. Figures in {brackets} pertain to the previous year.
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