| Right, Preferences and Restriction attached to shares
Equity shares
The company has only one class of Equity having a par value Rs. 10.00
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the board of directors is subject to the
approval of the shareholders in ensuing Annual General Meeting, except
in case of interim dividend. 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.
Preference shares
The company has only one class of Preference having a par value Rs.
10.00 per share. Each shareholder is eligible for one vote per share
held. The dividend proposed by the board of directors is subject to the
approval of the shareholders in ensuing Annual General Meeting, except
in case of interim dividend. In the event of liquidation, the
Preference shareholders are eligible to receive the remaining assets of
the company after distribution of all preferential amounts, in
proportion to their shareholding.
2. Contingent Liabilities
(Rs. in Lacs)
S. Particulars 2014 2013
No.
a. Guarantees issued by bankers 2.00 2.00
b. Lease rent payable over the unexpired 17.55 17.55
portion of the lease agreements on
leased Plant & Machinery
c. Excise Duty in respect of which the 18.28 18.28
company is in appeal
d. Cumulative Preference Dividend (to 555.5 555.5
become payable when the dividend
would be declared)
e. Damerages for delayed payment of 9.72 9.72
Provident Fund in respect of which
company is in appeal
3. Information related to Related Parties has not been produced before
us.
4. Sales and Purchases include inter-division transfer of yarn and
waste material of Rs is Nil
5. As per Accounting Standard (AS) 5 "Net profit or loss for the
period, prior period items and changes in accounting policies" Prior
period expenses of Rs. NIL
6. Accounting Standard (AS) 17 "Segment Reporting" is not applicable as
the company operates in a single segment Textiles.
7. As per Accounting Standard (AS) 22 "Accounting for Taxes on Income".
The deferred tax assets have, however not been recognized and carried
forward in the absence of a reasonable or virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
8. In view of insufficient information from the suppliers regarding
their status as SSI unit, amount overdue to them as on 31.03.14 cannot
be ascertained.
9. The Company has not transferred the amount of Unclaimed Dividend to
Investor Education and Protection Fund established under sub-section
(1) of section 205C of the Companies Act, 1956 and the same is shown
under the head of current liabilities.
10. Balances of Debtors, Unsecured Loans, Creditors and Loans &
Advances are as per books of accounts and subject to confirmation.
11. The financial statements of the company are prepared on the basis
of Going concern
(Yarn Division) and its textile (Fabric) division is closed.
12. No provision for Income tax has been made due to accumulated
business losses and unabsorbed depreciation as per the Income Tax Act
1961.
13. The company is a sick company within the meaning of Sick Industrial
Companies (special Provision) Act, 1985, as its accumulated losses
exceeded fifty percent of its Net Worth at the end of the financial
year. The Company has incurred cash losses during the current year as
also during the immediately preceding financial year. Reference file
under section 15(1) of sick Industrial Companies (special Provision)
Act, 1985 was registered as case no. 353/2004 vide letter No. 3
(T-22)/BC/2004 dated 30/11/2004 issued by Registrar, Board of
Industrial and Financial Reconstruction, New Delhi. The bench has
declared that the Company is a sick Industrial Company in terms of 3
(1) (O) of the Act w.e.f. 2.05.2006.
14. Figures have been rounded to the nearest rupee.
15. Previous year figures have been regrouped, reworked, rearranged and
reclassified wherever necessary.
16. Schedules "A" to "O" are under the same signatures as Balance
Sheet.
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