| 1. Share Capital
a. Rights, Preferences and Restrictions attached to Shares
The Company has one class of shares referred to as equity shares having
a par value of Rs. 10 each. Each shareholder is entitled to one vote
per share held. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their
shareholding.
b. Shares held by Holding/Ultimate Holding Company and/or its
subsidiaries/associates:
Out of total equity shares issued by the Company, shares held by its
holding company, ultimate holding company and its
subsidiaries/associates.
c. Unpaid calls
As per records of the Company, no calls remain unpaid by the directors
and officers of the Company as on 31st March, 2014
d. As per records of the Company, no shares have been forfeited by the
Company during the year.
2. Long Term Borrowings
Nature of Security
From Banks:
Rs. Nil (Previous Year Rs. 1,887 Lacs) secured by Legal Mortgage of
Four residential flats at Mumbai, One Residential Flat and One Office
Premise at Chennai, One Residential Flat at Kolkata, Leasehold Land &
Buildings situated at Plot F 3/1 & F 3/2 Sinnar, Dist Nasik and all the
movables including Plant and Machinery of the Company's EHV and LT/HT
units at Sinnar Dist., Nasik, Personal guarantee of the Chairman of the
Company, Pledge of Promoters' shares and second charge on office
premises at Mumbai.
From Financial Institution:
Rs. 373 Lacs (Previous Year Rs. 457 Lacs) secured by mortgage of Office
premises in Mumbai.
Details of default
An amount of Rs. 50 Lacs on account of Principal and Interest is
overdue to a Financial Institution as on 31st March 2014, for the
period January 2014 to March 2014, which has been subsequently repaid.
3. Short Term Borrowings
Details of Security
Rs. 7,127 Lacs (Previous Year Rs. 5,357 Lacs) Secured by joint
hypothecation of stocks of all raw materials, stores, stock-in-process,
stock-in-trade, book debts etc. and Legal Mortgage of Four residential
flats at Mumbai, One Residential Flat and a Office Premise at Chennai,
One Residential Flat at Kolkata, Leasehold Land & Buildings situated at
Plot F 3/1 & F 3/2 Sinnar, Dist Nasik and all the movables including
Plant and Machinery pertaining to the Company's EHV and LT/HT units at
Sinnar Dist., Nasik, personal guarantee of the Chairman of the Company
and pledge of Promoters' shares.
Rate of Interest
i. Working Capital Loans from banks carry interest rates ranging from
13.00% to 15.75% per annum.
4. Contingent liability in respect of:
Rs. In Lacs
2013-2014 2012-2013
a) Guarantees given by the Banks on behalf
of the Company 5,050 5,050
b) Income tax demands disputed by the Company
which are under appeal 523 523
c) Demands from Sales Tax Authorities disputed
by the Company which are under appeal 964 964
d) Demands from Central Excise Authorities
disputed by the Company which are under appeal 224 224
e) Penal damages and Interest levied by PF
department and contested in PF Tribunal
by the Company 72 72
f) Claims against the Company not
acknowledged as debt 100 100
g) Right of recompense towards Not
sacrifices by Banks under CDR ascertainable
5. The effect of changes in foreign exchange rates are as follows:
The amount of exchange difference Profit included in the Loss for the
year is Rs 1 lac [Previous year Profit: Rs 25 lacs].
6. RELATED PARTY DISCLOSURES (As identified and certified by the
Management and relied upon by the Auditors).
Related Party disclosures as required by Accounting Standard 18 issued
by Institute of Chartered Accountants of India are given below:
A) Companies/Entities with which transactions have taken place during
the year:
Premjyot Finvest & Trading Limited, CCI Projects Pvt. Ltd. & Krishabh
Trading & Services Private Ltd.
B) Companies/Entities with which no transactions have taken place
during the year:
Great View Properties Private Limited, Sthir Trading Company Private
Limited, CCI Realtors Private Limited, Future Deal Properties Private
Limited, Aries Trust, Gemini Trust, Pisces Trust, Sagitarius Trust, NHK
Trust, Gemini International FZE and Viscose Holdings Ltd.
C) Key Management Personnel
i) Shri H.A. Khatau (Chairman)
ii) Shri R Sridharan (Director Strategy and Business Development)
iii) Shri Madhav Digraskar (MD & CEO)
D) Relatives of Key Management Personnel
Mrs. Kamala Sridharan
Mr. Rohan H Khatau
7. SEGMENT REPORTING
Information about Primary Business Segments.
The Company has disclosed business segments as the primary segments.
Segments have been identified taking into account the nature of the
products, the differing risks and returns, the organizational structure
and the internal reporting system.
The Company's operations predominantly relate to manufacturing of
cables. Other business segment reported is Real Estate business.
There are no reportable geographical segments. Segment results include
the respective amounts identifiable to each of the segments as also
amounts allocated on a reasonable basis. Segment wise assets and
liabilities are not ascertainable in view of the nature of activity of
the Company.
8. In terms of the provisions of the Accounting Standard 22 "Accounting
for Taxes on Income" issued by the Institute of Chartered Accountants
of India, there is a net deferred tax asset on account of accumulated
business losses and unabsorbed depreciation.
In compliance with provisions of Accounting Standard and based on
general prudence, the Company has not recognised any further deferred
tax asset while preparing the accounts of the year under review.
9. In view of the carried forward losses under section 115JB of Income
Tax Act, 1961, no provision for taxation has been made.
10. Micro Small & Medium Enterprises dues : The Company has not
received any information from suppliers regarding their Status under
the Micro, Small & Medium Enterprises Development Act, 2006 & hence
disclosures regarding a) amount due and outstanding to suppliers as at
the end of the Accounting Year, b) Interest paid during the year, c)
Interest payable at the end of the accounting year and d) Interest
accrued and unpaid at the end of the accounting year have not been
given. The Company is making efforts to get the confirmations from the
suppliers as regards their status under the Act.
11. During the year the Company has provided Rs. 2 Lacs (Previous Year
Rs. 23 Lacs) on account of Gratuity payable to its employees. The
amount due to the Gratuity Fund as on 31st March, 2014 is Rs. 105 Lacs
(Previous Year Rs. 117 lacs).
12. Consequent to the adoption of Accounting Standard on Employee
Benefits (AS-15 revised 2005) issued by the Institute of Chartered
Accountants of India, the following disclosures have been made as
required by the Standard:
DEFINED CONTRIBUTION PLANS
The Company has recognised Rs. 22 Lacs (Previous year Rs. 39 Lacs)
towards Provident Fund and Rs. NIL (Previous year Rs. 0.04 Lacs)
towards Employees State Insurance (State Plan).
DEFINED BENEFIT PLANS
A. CONTRIBUTION TO GRATUITY FUND
The details of the Company's Gratuity Fund for its employees are given
below which have been certified by an Actuary as on 31st March, 2014
and relied upon by the auditors.
B. LEAVE ENCASHMENT
Payments to and Provisions for Employees is net of Rs. 5 Lacs (Previous
Year includes Rs. 16 Lacs) towards provision made as per Actuarial
Valuation in respect of accumulated Leave Encashment.
13. Some of the balances in Trade Payables, Trade Receivables, and
Other Current Liabilities are subject to reconciliation, confirmation
and consequential adjustments/provisions, the amounts whereof have not
been determined.
14. The Company had received an order from the Additional Labour
Commissioner granting permission for retrenchment of workmen at its
Borivali Unit. The matter is pending before Industrial Court, Mumbai.
No provision has been made for the compensation payable to these
workmen as the liability is not ascertainable. The Company has
accounted the payments towards retrenchment compensation in respect of
workmen who have accepted voluntary settlement.
15. Pursuant to Project Management Agreements entered between the
Company and CCI Projects Pvt. Ltd, the Company has given CCI Projects
Pvt. Ltd. the License to-enter the Premises at Borivali for
development. The Company has mortgaged its land with HDFC Ltd. in
connection with loans granted to CCI Projects Pvt. Ltd.
16. The Company has entered into Agreements for Project Management and
Coordination with CCI Projects Pvt. Ltd. for development of the
properties at Borivali. During the previous year the Company had
entered into Addendum Agreement whereby CCI Projects Pvt Ltd. and the
Company have agreed to revise their commercial understanding in
relation to sharing of revenues and payment by CCI Projects Pvt Ltd. to
the company based on the present value of the company's share in the
revenues from the project calculated in accordance with the discounted
cash flow method. Pursuant to these Agreements, the Company has
accounted Rs. 3,320 Lacs (Previous Year Rs. 8,894 Lacs) as Income from
Real Estate.
17. In respect of Land and Building sold by the Company in the earlier
years, Power of Attorney has been executed in favour of the Developers
for executing conveyance on behalf of the Company.
18. Based on the valuation reports obtained by the Company from an
approved valuer in the previous years covering all fixed assets, there
is no impairment of assets as stated under AS - 28 'Impairment of
Assets' issued by Institute of Chartered Accountants of India.
19. Loans and Advances in the nature of loans given to Subsidiaries,
Associates & others as on 31st March, 2014 - NIL. (Previous year -
NIL).
20. Unclaimed amount payable to debenture holders which was deposited
with ICICI Bank Ltd. in their capacity as Debenture Trustee and which
was due for payment to Investors Education and Protection Fund during
the previous year has not been transferred by ICICI Bank Ltd. to
Investors Education and Protection Fund despite repeated requests by
the Company.
21. The Company has been informed by BSE Limited vide their letter
dated 6th January, 2014 that trading of Equity Shares of the Company
has been discontinued w.e.f. 9th January, 2014 and the script of the
Company has been delisted from the Exchange Records w.e.f. 16th
January, 2014.
22. In the opinion of the Board, all assets other than fixed assets
have a value on realisation in the ordinary course of business atleast
equal to the amount at which they are stated except for reconciliation
adjustments in respect of some of the payables and receivables.
23. Previous years figures have been regrouped/rearranged to make them
comparable with those of the current year.
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