| Note:
I) The Term Loans from Assets Reconstruction Co of (India) Ltd, is
secured by way of:
(A) Primary Securities : The Term Loans from ARCIL are secured by
first pari-passu mortgage of all immovable properties, save and except
assets charged to IDBI earlier, and is further secured by way of
hypothecation of all movable properties (save and except the book
debts) of the company subject to prior charges created in favour of
Company's Bankers on inventory of the Company to secure the borrowing
for working capital.
(B) Personal Guarantees : The term loan from bank is further secured
by personal guarantee of Managing Director and ExChairman.
II) The Term Loans from Export Import Bank of India, is secured by way
of:
(A) Primary Securities : Hypothecation of all the present and future
movable fixed assets except book debts and stock and is further
secured by first pari passu mortgage of all the immovable assets of
company save and except assets charged to IDBI earlier.
(B) Personal Guarantees : The term loan from bank is further secured
by personal guarantee of Managing Director and ExChairman.
1 Derivative contracts entered into by the Company and outstanding
as on the date of Balance sheet.
a) Hedging Commitments outstanding - Rs. Nil (Previous Year Nil)
b) Foreign currency exposures that are not hedged by derivative
instruments - Rs. Nil (Previous Year Nil)
2 Earnings/Expenditure in Foreign Exchange : Rs. Nil (Previous Year
-Nil)
3 Details of government grants - NIL (Previous Year -Nil)
4 Borrowing Costs capitalised during the year : Rs. Nil (Previous
Year -Nil)
5 Contingent liabilities and commitments (to the extent not
provided for)
Contingent liabilities (Rs. In Lacs)
31.03.14 31.03.13
(a) Interest to secured Lenders 5314.96 4991.97
(b) Claim not acknowledged as debts 0.00 0.00
(c) Provision for accrued gratuity liability made, pending actuarial
valuation and - - accounting policy followed.
There is no reasonable / virtual certainty supported by convincing
evidence that sufficient future income will be available against the
net deferred tax assets. In consideration of prudence, the company has
not considered the net deferred tax Assets in the Books of Accounts.
6 As per the information's available with the Company in response
to the enquires from all existing suppliers with whom Company deals,
none of the suppliers are registered with the micro, small & medium
enterprises Development Act, 2006.
7 Sales Tax, Purchase Tax and Income Tax Assessment are pending at
various stages. Provision of Taxes in the opinion of management is
sufficient
8 No Provision for taxation has been considered necessary in view
of Carry forward losses, and unabsorbed depreciation and other
allowances under the Income Tax Act.
9 Vehicles in the block of Fixed Assets are in the name of
Director, as the finances have been arranged by them. These vehicles
are in the possession of the Company. The amount of installments
outstanding for payment to financing agencies as on the date of
Balance Sheet is Rs.Nil (Previous Year Rs. Nil) Lacs.
10 Computation of Net Profit in accordance with Section 349 of the
Companies Act, 1956 has not been given, as commission by way of
percentage of Profit is not payable for the year to any of the
director of the Company.
11 Balances of some of the sundry Debtors, Creditors, Loans &
advances are taken as per Books of Account and are subject to
confirmation from respective parties. However, in the opinion of the
management these accounts will fetch the amount as stated in the books
of accounts on realization in the ordinary course of business.
12 Secured Lenders viz, Asset Reconstruction Company (India)
Limited (ARCIL) and Export Import Bank of India took the possession of
the Secured Assets of the company under section 13 (4) of
Securitization And Reconstruction of Financial Assets And Enforcement
of Security Interest Act, 2002 ( SARFAESI Act ) on 11th July, 2007
against their dues and appointed the Company as Custodian of the
Secured Assets and permitted to continue the Business activities on a
payment of Rs 25,000 per month towards royalty charges till 31st
March, 2011. Thereafter, they have withdrawn the custodian ship. They
have also filed petition for winding up of the company before the
hon'ble High Court of M.P. , which is pending for admission.
The Commercial Tax Department also took action for recovery of their
dues by way of attachment of Fixed Assets under the Provisions of M.P.
Land Revenue Code , 1959. Hence, Consequential fate of Secured fixed
assets taken over by the secured lenders is not ascertainable.
Therefore , any adjustment on account of possession of the assets is
also not ascertainable in the circumstances as on 31st March, 2014. In
view of the possession of Secured assets have been taken by Secured
Lenders, the estimated amount of interest for the year amounting to
Rs.322.98 Lacs (Previous Year 322.98 Lacs) has also not been provided
in books of accounts of the Company. Total estimated amount of
Interest not provided for as on the date of Balance Sheet is
Rs.5314.96. ( Previous Year. 4991.98) Lacs.
13 As the accumulated losses of the Company had exceeded its entire
net worth in earlier years, the Company had been declared a Sick
Industrial Company within the meaning of Clause (O) of sub section 1
of section 3 of the Sick Industrial Companies (Special Provisions)
Act, 1985 (SICA) vide order of BIFR dated 17th May, 2006. Pursuant to
the action taken by secured Lenders under section 13(4) of the
SARFAESI Act, 2002 the BIFR, vide its order dated 26th November, 2007
has abated the reference filed by the Company under SICA. As the
Company has concluded one time settlement with working capital bankers
and IDBI and is pursuing settlement discussions with remaining Secured
Lenders and is keen to revive its operations, the accounts of the
Company have been prepared on going concern basis. In case the Company
is unable to continue as a going concern in future, the resultant
adjustments, if any, are presently not ascertainable.
14 As the company is not having possession of the assets of the
company, no physical verification of the assets of the plant could be
carried out. The management of the company is of the opinion that
there is an impairment of the assets of this plant, however, such loss
has not been estimated or determined and, therefore, no provision for
loss on account of impairment of assets has been made in the accounts.
To this extent, the company has not complied with the Accounting
Standard 28, Impairment of Assets.
15 Previous year's figures have been regrouped/reclassified
wherever necessary to correspond with the current year's
classification/ disclosure.
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