| 1. Terms/Rights attached to equity shares The company has issued only
one class of equity shares having a par value of Rs. 10/- per share.
Each holder of equity shares is entitled to one vote per share.
2. During the year ended 31st March 2014 amount per share of dividend
recognised as distributions to equity shareholders was Rs. Nil
(P.Y.Nil) 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 numbers of equity shares held
by shareholders.
3. Additional Information:
a) Working Capital Term Loan : Details of Terms of repayment : Working
Capital Term Loan amount Rs. 110/ - crores sanctioned during the year
by State Bank of India. Rs. 2000.00 Lacs repayment before 30th June,
2013. F.Y. 2013-14, 12 monthly installments of Rs. 10/ - Lacs each
amounting to Rs. 120/- Lacs, F.Y. 2014-15, 12 monthly installments of
Rs. 16.70 Lacs each amounting to Rs. 200/ - Lacs, F.Y. 2015-16, 12
monthly installment of Rs. 29.20 Lacs each amounting to Rs. 350/ -
Lacs, F.Y. 2016-17, 12 monthly installment of Rs. 37.50 Lacs each
amounting to Rs. 450/ - Lacs, F.Y. 2017-18, 12 monthly installments of
Rs. 58.40 Lacs each amounting to Rs. 700/ - Lacs, F.Y. 2018-19, 12
monthly installments of Rs. 60/ - Lacs each amounting to Rs. 720/-Lacs.
b) Funded Interest Term Loan : Details of Terms of repayment : F.Y.
2013-14, 12 monthly installments of Rs. 20.90 Lacs each amounting to
Rs. 250/- Lacs, F.Y. 2014-15, 12 monthly installments of Rs. 29.30 Lacs
each amounting to Rs. 351/- Lacs, F.Y. 2015-16, 12 monthly installment
of Rs. 33/ - Lacs each amounting to Rs. 396/- Lacs, F.Y. 2016- 17, 12
monthly installment of Rs. 33/ - Lacs each amounting to Rs. 396/- Lacs,
F.Y. 2017-18, 12 monthly installments of Rs. 31.10 Lacs each amounting
to Rs. 373/- Lacs
c) Details of Security for Working Capital Term Loan and Funded
Interest Term Loan : The above facilities are secured by Hypothecation
of entire Stock and Current Assets of the Company. The facilities are
further collaterally secured by Equitable Mortgage of Factory Land and
Building at G.I.D.C Baroda, at Roorkee Dist Haridwar-Uttaranchal and
corporate office situated at Vikas Chambers, Malad(W), Mumbai and
Residential Flat at Vapi and also Hypothecation charge on Plant and
Machinery at GIDC Baroda and at Roorkee Dist Haridwar (Uttaranchal).
These facilities are further collaterally secured by Pledge of 93000
equity shares of Rs. 10/ - each of Tarapur Transformers Limited,
3200000 equity shares of Rs. 10/- each of Bilpower Limited and 16000000
equity shares of Rs. 1/ - each of Bil Energy Systems Limited.
The facilities are further collaterally secured by extension of
Equitable Mortgage of Land admeasuring 3 Acres and Building admeasuring
87175 sq. feet at Wada owned by Bil Energy Systems Limited and
extension of hypothecation charge on entire stock and Current Assets
and Plant & Machinery and all other movable Fixed Assets of Bil Energy
Systems Limited.
The above facilities are personally guaranteed by Mr.Rajendrakumar
Choudhary Director of the Company and Mr. Nareshkumar Choudhary (Ex
Director of the Company) and Corporate Guarantee of Bil Energy Systems
Limited.
As per terms of sanction the above facilities are also proposed to be
collaterally secured by equitable Mortgage of Factory Land and Building
and Plant and Machinery situated at Pali, Village Wada(Dist.Thane)
belonging to Tarapur Transformers Limited and corporate guarantee of
Tarapur Transformers Limited. However as per the legal opinion
obtained by the Company Tarapur Transformers Limited is required to
obtain approval of shareholders and lenders before creating the said
charge and executing the corporate guarantee which is pending.
d) Details of Interest rates : Working Capital Term Loan-2.50% above
base rate i.e.12.25% per annum with monthly rest. Funded Interest Term
Loan-2.50% above base rate i.e.12.25% per annum with monthly rest.
4. a) Vehicle Loan
Details of Terms of repayment : The Loan is to be repaid in 60 monthly
installments as per following repayment schedule. F.Y.2013-14 Rs.
681344/-, F.Y.2014-15 Rs. 756470, F.Y.2015-16 Rs. 839879/-, F.Y.2016-17
Rs. 932484/- and F.Y.2017-18 Rs. 590720/-
b) Details of Security for Other Term Loan-Auto Loan : Auto Loan is
secured against hypothecation of respective vehicle.
c) Details of Interest rates : Other Term Loan-10.51 % per annum on
monthly reducing basis.
5. Additional information for loans
a) Details of Security for Working Capital Loan.
The above facility is secured by Hypothecation of entire Stock and
Current Assets of the Company. The facilities are further collaterally
secured by Equitable Mortgage of Factory Land and Building at G.I.D.C
Baroda, at Roorkee Dist Haridwar-Uttranchal and corporate office
situated at Vikas Chambers, Malad(W), Mumbai and Residential Flat at
Vapi and also Hypothecation charge on Plant and Machinery at GIDC
Baroda and at Roorkee Dist Haridwar (Uttranchal). The facility is
further collaterally secured by Pledge of 93000 equity shares of Rs.
10/- each of Tarapur Transformers Limited, 3200000 equity shares of Rs.
10/- each of Bilpower Limited and 16000000 equity shares of Rs. 1/-
each of Bil Energy Systems Limited. The facility is further
collaterally secured by extension of Equitable Mortgage of Land
admeasuring 3 Acres and Building admeasuring 87175 sq. feet at Wada
owned by Bil Energy Systems Limited and extension of hypothecation
charge on entire stock and Current Assets and Plant & Machinery and all
other movable Fixed Assets of Bil Energy Systems Limited. The above
facility is personally guaranteed by Mr.Rajendrakumar Choudhary
Director of the Company and Mr. Nareshkumar Choudhary (Ex Director of
the Company) and Corporate Guarantee of Bil Energy Systems Limited.
b) Details of Security for Working Capital Term Loan and Funded
Interest Term Loan.
The above facilities are secured by Hypothecation of entire Stock and
Current Assets of the Company. The facilities are further collaterlly
secured by Equitable Mortgage of Factory Land and Building at G.I.D.C
Baroda, at Roorkee Dist Haridwar-Uttranchal and corporate office
situated at Vikas Chambers, Malad(W), Mumbai and Residential Flat at
Vapi and also Hypothecation charge on Plant and Machinery at GIDC
Baroda and at Roorkee Dist Haridwar (Uttranchal).
These facilities are further collaterally secured by Pledge of 93000
equity shares of Rs. 10/- each of Tarapur Transformers Limited, 3200000
equity shares of Rs. 10/-each of Bilpower Limited and 16000000 equity
shares of Rs. 1/- each of Bil Energy Systems Limited.
The facilities are further collaterally secured by extension of
Equitable Mortgage of Land admeasuring 3 Acres and Building admeasuring
87175 sq. feet at Wada owned by Bil Energy Systems Limited and
extension of hypothecation charge on entire stock and Current Assets
and Plant & Machinery and all other movable Fixed Assets of Bil Energy
Systems Limited.
The above facilities are personally guaranteed by Mr.Rajendra kumar
Choudhary Director of the Company and Mr. Nareshkumar Choudhary (Ex
Director of the Company) and Corporate Guarantee of Bil Energy Systems
Limited.
c) Above facilities are also proposed to be collaterally secured by
equitable Mortgage of Factory Land and Building and Plant and Machinery
situated at Pali, Village Wada(Dist.Thane) beloging to Tarapur
Transformers Limited and corporate guarantee of Tarapur Transformers
Limited however as per the legal opinion obtained by the Company
Tarapur Transformers Limited is required to obtain approval of
shareholders and lenders before creating the said charge and executing
the corporate guarantee which is pending.
d) The company has not provided for interest payable to State Bank of
India amounting to Rs. 2341.46 lacs (on above loans)for the financial
year 2013-2014. The company has also not made any provision for penal
interest claimed by bank. As a result the loss for the year ended 31st
March, 2014 is understated by Rs. 2341.46 Lacs & current liabilities as
at 31st March, 2014 are also understated by Rs. 2341.46 Lacs. The
amount of penal interest cannot be quantified as the details have not
been received from the bank.
6. The company has defaulted in repayment of dues including interest
and principal to State Bank of India, on its various fund factilities
availed, outstanding at the year end amounting to Rs. 180.00 Crores
(Previous Year overdue Rs. 0.24 Crores). The unpaid interest provided
for in the books of accounts on the said loans amounts to Rs. 6.85
Crores (Previous Year Rs. 5.04 Crores). Also interest not provided
amounting to Rs. 23.42 Crores for the financial year 2013-14 as stated
in note 7.1 (d) above, is remaining unpaid. Entire loans have been
recalled by State Bank Of India during the financial year 2013-2014
7. Trade Payable Includes Rs. 181.18 Lacs (P.Y. Rs. 296.44 Lacs)
payable to Related Party Bil Energy Systems Limited
7.1 The Company has not received any intimation from the suppliers
under the Micro, Small & Medium Enterprises Development Act 2006 &
therefore disclosures, if any, relating to amounts unpaid as at the
year end together with interest paid/payable as required under the said
act have not been given.
8. Trade Advance includes payable to Related Party TRC Power
Rs. Nil (P.Y. Rs. 0.03 Lacs)
8.1 The company has not provided for interest payable to State Bank of
India amounting to Rs. 2341.46 lacs (on above loans)for the financial
year 20l3-20l4.The company has also not made any provision for penal
interest claimed by bankAs a result the loss for the year ended 31st
March, 2014 is understated by Rs. 2341.46 Lacs & current liabilities as
at 31st March, 2014 are also understated by Rs. 2341.46 Lacs. The
amount of penal interest cannot be quantified as the details have not
been received from the bank.
9. Interest others includes Rs. 7.44 Lacs paid/payable to Sales Tax
Dept. on delayed payment of MVAT/CST. (P.Y. Rs. 31.28 Lacs) And Rs.
0.005 Lacs paid to CBEC on delayed payment of Service tax (P.Y. Rs.
0.002 Lacs)
9.1 The company has not provided for interest payable to State Bank of
India amounting to Rs. 2341.46 lacs (on above loans)for the financial
year 2013-2014.
The company has also not made any provision for penal interest claimed
by bank. As a result the loss for the year ended 31st March, 2014 is
understated by Rs. 2341.46 Lacs & current liabilities as at 31st March,
2014 are also understated by Rs. 2341.46 Lacs. The amount of penal
interest cannot be quantified as the details have not been received
from the bank.
10. Legal & Professional fees-other than payment to auditors includes
Rs. Nil (P.Y. Rs. 0.59 Lacs)pertaining to prior period. Rent payment
includes Rs. 1.35 Lacs (P.Y. Rs. Nil) pertaining to prior period.
11. The lender Bank of Bil Energy Systems Limited has pursuant to
certain corporate guarantees given by the company demanded from the
company their dues from Bil Energy Systems Limited amounting to Rs.
84.69 crores. No provision has been made in the accounts for the
probable loss that may arise on account of above demand of Rs. 84.69
crores.
12. CONTINGENT LIABILITIES (Rs. in Lacs)
Particulars as at 31st as at 31st
March 2014 March 2013
(a) Income Tax demands including
interest which is under dispute
and pending in appeals. Nil Nil
(b) Claims not acknowledged as debts 0.77 0.77
(c) Guarantee given to custom department
(margin of Rs. 3.40 Lacs is available). 2.16 2.16
(d) Sales tax liability against non
collection of various sales tax forms Not Not
under relevant sales tax laws, not Ascertainable Ascertainable
provided due to uncertainty in
ascertainment of amount of liability,
if any.
(e) Sales Tax Demand 114.59 Nil
(f) Custom Duty (Pending in appeal) 18.38 18.38
(g) Excise Demand 4327.79 4327.79
Apart from the above there exists contingent liability in case of LCs
issued and LCs discounted
13. SEGMENT REPORTING
The company primarily deals in the business of Electrical Steel
Products and Other Steel Products related to Transformer Industry and
hence there is no Primary reportable segment in the context of
Accounting Standard 17 issued by The Institute of Chartered Accountants
of India.
14. DISCLOSURE PURSUANT TO ADOPTION OF ACCOUNTING STANDARD 15
Gratuity liability for the year is determined on actuarial valuation by
The Life Insurance Company of India with whom the company has taken a
policy for settlement of future gratuity liability.
15. Term Deposit Receipts, wherever obtained, are endorsed in favour
of Banks and Government Departments against Margin for Bank Guarantee,
L/C Facilities etc.
16. The Company has not received any intimation from the suppliers
under the Micro, Small & Medium Enterprises Development Act 2006 &
therefore disclosures, if any, relating to amounts unpaid as at the
year end together with interest paid/payable as required under the said
Act have not been given.
17. During the current financial year the company has recognised
provision for Dimunition in value of quoted Investments Rs. 1209.08
Lacs
18. As per the best estimate of the management, no provision is
required to be made as per Accounting Standard (AS) 29 "Provision,
Contingent Liabilities & Contingent Assets" as notified by the
companies (Accounting Standards) Rules 2006, in respect of any present
obligation as a result of a past event that could lead to a probable
outflow of resources which would be required to settle the obligation.
19. Consumption of consumable stores is wholly indigenous in the
current & previous year.
20. Balances of the Creditors / Debtors / Loans / Advances are subject
to Confirmations and resultant reconciliation, if any.
21. Bills Payable represents Bills of Exchange drawn by suppliers in
favour of Bank.
22. Sundry Debtors as on the date of Balance sheet are Net of amounts
received after discounting of Letter of Credits.
23. Previous Year Figures have been regrouped / recast / rearranged
wherever necessary.
Signature to the Balance Sheet, Statement of Profit and Loss and Notes
which form an integral part of accounts.
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