| Nature of Operations
Blue Bird (India) Limited ["The Company"] is engaged in the
manufacturing of Student Books / Exercise Books, Printing and
Publication of books, trading of paper and Commercial Printing etc. The
Company is also engaged in construction activity.
1. Contracts remaining to be executed on capital account and not
provided for Rs. 196.00 Lacs , (Previous Year Rs. 196.00 Lacs)
2. Contingent Liability not provided for-
a) Bank Guarantees issued by banks on behalf of the Company Rs. 1 53 88
Lacs (Previous year Rs. 163.15 lacs) for import of Plant & Machinery
against licenses granted under EPCG Scheme for payment of Customs Duty.
b) Other Bank Guarantees-Rs. 46.00 Lacs (Previous Year Rs. 46.90 Lacs)
c) Guarantee Bonds issued in favour of the Customs Authorities
amounting to Rs. 1524.00 lacs (Previous year Rs. 1,524.00 Lacs) for
fulfillment of export obligations of USD 134.15 Lacs equivalent to
Rs.6,123.13 Lacs for import of machinery against licenses granted under
EPCG Scheme. The Company has to fulfill the said export obligation by
August 06, 201 6. The Company has fulfilled export obligations of USD
106.93 lacs up to March 31, 2010, however, the cancellation of the
guarantee bonds made is of Rs 87.05 Lacs and balance is in process.
d) Fines/Penalties for default in payment of Statutory dues (Amount not
ascertainable).
e) Disputed Income Tax demands in respect of earlier years Rs. 924.93
Lacs (Previous Year Rs.22.06 lacs, the same has been paid under protest
against these demands.)
f) Amount of Interest on dues claimed by various creditors not
considered.
3. Non convertible Debentures were to be redeemed in full latest by
August 31,2009. The debentures have not been redeemed.
4. Other liabilities include.Rs.2.01 Lacs (Previous year Rs.2.01
Lqcs) being amounts refundable to unsuccessful share applicants in the
public issue and Rs. 3.49 Lacs ( previous year Rs. 3.50 Lacs) being
dividend warrants not enchased by shareholders. These amounts are lying
in separate bank accounts.
5. The Company, during the year, incurred cash loss. Also it could
not recover its dues from the customers in time. This has resulted into
a cash crunch faced by the Company. Consequently, the Company defaulted
in repayment of interest and principal amounts to its lenders. The
Company has also received notices under Section 433 and 434 of the
Companies Act, 1956 from a lender and a few suppliers for nonpayment of
their dues. The Company is in negotiations with these parties for
re schedulement / extension of time. The Company is confident of
settling the matter amicably.
The Corporate Debt Restructuring (CDR) proposal has been approved by
CDR cell of Reserve Bank of India on -28.01.2011. to the said proposal,
payment of all Secured loans has been considered to be made in a phased
manner. The proposal has been admitted by the CDR cell subject to
fulfillment of certain conditions. The Company is confident of
compliance of all the requisite formalities. The viability of CDR
proposal is assessed by an independent agency appointed by the lead
bank of consortium.
No effect of the approval has been given in the accounts, pending
sanction by CDR lenders and completion of requisite formalities.
In view of the foregoing, the accounts have been prepared on going
concern basis.
6. Segment Reporting
Th8 Company operates mainly in five business segments namely Student
Books/Exercise Books, Publication/Commercial Printing, Exports. Trading
and Construction Activity The segment wise reports are as follows:
7. The Company has not given or taken any asset on financial lease as
on Balance Sheet date. The Company has taken two manufacturing promises
and commercial premises under cancelable operating leases. The lease
agreements are usually renewable by mutual consent on mutually
agreeable terms. The expenses in respect of operating leases have been
accounted as Administrative Expenses.
8. In the opinion of the management, all the Current Assets, Loans
and Advances are good, recoverable and approximately of the value
stated, if realized in the ordinary course of the business.
9. Debtors and Creditors are subject to confirmation, reconciliation
and consequential adjustments, if any.
On assessment of debtors, the management is of the opinion that it may
be able to recover only some partial dues or no dues from some of its
customers. Considering this eventuality, a Bad Debts written off has
been made on estimated basis.
Bad debts written off are net of the Provision for doubtful Debts made
in earlier year. T7, Land (Stock in Trade) includes-
(i) Advances paid for purchase of land - Nil (Previous year Nil)
(ii) Right to purchase of land acquired under a memorandum of
understanding - Nil (Previous Year - Nil)
10. Extra ordinary expenses for the year represent debtors written
off, amount payable as per Sales Tax / VAT demands in respect of
earlier years and amount written of out of land sale as per
confirmation deed of rectification. The company is in the process of
getting the Sales. Tax/ VAT liabilities reduced by submitting relevant
documents / information to the respective Authorities.
11. Previous year's figures are regrouped / rearranged wherever
necessary to conform with the current year's , presentation.
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