| 1. Teams/Rights attached to Equity shares
The company has both Equity and Preference shares
(i) The Equity share have a par value of Rs.5/- per share. Each holder
of Equity Shares is entitled is one vote per share.
The Company declares and pays dividend in Indian Rupees. The dividend
Proposed by the Board of Directors is subject to approval of
shareholders in Annual General Meeting.
For the year ended 31st March'2015, the amount of per share dividend
recognized as distribution to Equity Shareholder is Nil (Previous year
Nil)
In the event of liquidation of the company the holders of Equity Share
will be entitled to receive remaining assets of the Company in
proportion to the amount paid up as credited in such Equity shares
respectively, after distribution of all preferemtial amounts.
Rights of Preference Share
2. (ii) The Company's Preference Share have a par value of Rs.100/- per
share. The preference shareholders have right over the equity
shareholders inrespect of declare of dividend and in the distribution
of the assests in the event of liquidation of the company.
Nature OF Security TERM LOANS
a Term Loan of Rs.245 million and Funded Interest Term Loan of Rs.4.94
million sanctioned by IDBI are secured by extension of first charge on
all assets of the company, present and future, except to the prior
charge created/to be created (i) on specific assets covered by loans
from other financial institutions and banks (ii) on specified movables
(Current Assets) in favour of the Company's Bankers for working capital
borrowings.
b Term Loan of Rs.76.10 million and Funded Interest Term Loan of
Rs.2.36 million sanctioned by Corporation Bank is Secured by way of
exclusive charge over the assets created our of the said loan
c Term Loan of Rc.15 million and Funded Interest Term Loan of Rs.20.79
million sanctioned by State Bank of India is secured by exclusive first
charge over the assets financed under the term loan and second charge
on the entire current assets of the Company on Pari Pasu basis and
extension of charge on the fixed assets of washing unit at Perundurai
d Term Loan of Rs.100 million and Funded Interest Term Loan of Rs.23.1
Omillion sanctioned by IDBI is secured by extension of first charge on
Pari Pasu basis except the assets which are exclusively charged by SBI
and Corporation Bank. First Charge by way of Hypothecation in Favour of
IDBI of all assets of the Company's movable (save and except book
debts), including movable machinery, machinery spares, tools and
accessories, present and future, subject to the prior charge created/to
be created in favour of Company's bankers on the Company's stocks of
raw materials, semi finished and finished goods, consumable stores and
such other movable as may be agreed to by IDBI for securing the
borrowings for working capital requirements in the ordinary course of
business.
3. WORKING CAPITAL LOANS
a The working capital loan of Rs.200.30 million sanctioned by State
Bank of India is secured by hypothecation of entire current assets and
movable assets of the Company and a second charge over entire fixed
assets of the Company on pari passu basis with other commercial bankers
under consortium agreement.
b The working capital loan of Rs.28.30 million sanctioned by State Bank
of Hyderabad is secured by hypothecation of the entire current assets
of the Company and movable assets of the Company and a second charge on
the fixed assets of the Company on pari passu basis with other
commercial banks under consortium agreement.
c The working capital loan of Rs.18.70 million sanctioned by
Corporation Bank is secured by hypothecation of the entire current
assets of the Company and movable assets of the Company and a second
charge on the fixed assets of the Company on pari passu basis with
other commercial banks under consortium agreement.
4. Contingent Liabilities not provided for in the accounts.
1) Estimated amount of contract remaining to be executed on capital
accounts - Rs. Nil (Previous year Rs.Nil)
2) The Company has export obligations for value of Rs.40931 lakhs under
EPCG Scheme against which exports aggregating Rs.5626 lakhs including
third party exports have been made on 31.03.2015. Balance obligations
required to be fulfilled as per various schedules, culminating on
20.07.2015 is Rs.35305 Lakhs. If company fails to comply with
obligation the customs duty of Rs.18.45 Crores along with applicable
interest is to be paid to customs department and DGFT.
3) The bank has taken physical possession of unit 4, unit 9 were sold
by the bank and the proceeds were adjested agsinst the loan dues. The
bank has also dold unit 2 & unit 5 and adjust the proceeds against the
loan due. The banks is pursuing with the SARFAESI proceedings and may
sell all the units. If not is going to happen. Then there will be
worker's liablility to be settled by the company.
4) The Sales Tax Department has preferred an appeal before STAT
Coimbatore for the year 2002-03 for issues representing sales tax
demand of Rs.1.82 lakhs which is pending before STAT, Coimbatore
5) The Sales Tax Department has preferred an appeal before STAT
Coimbatore for the year 2003-04 for issues representing sales tax
demand of Rs.13.54 lakhs which is pending before STAT, Coimbatore.
6) The Income Tax Department has preferred an appeal with a tax effect
of Rs.5.85 lakhs before ITAT, Chennai against the Order of CIT (appeal)
in favour of the Company regarding interest claim U/S 234B/234C for the
Assessment Year 2004-05.
7) The Income Tax Department's appeal for assessment year 1998-99
before The Honourable High Court, Chennai against the company's stand
regarding Sec 80IA has beeen decided in favour of the department and
there by the likely demand on the company is estimated at Rs.1.25
lakhs.
8) The Company is out of CDR package with effect from 22.10.2012.
However, the interest in various loans availed by the company has been
continued to be charged based on the CDR rates. The differential
interest that ought to have been provided for in the accounts is
estimated at Rs.103 Crores. (1.7.2008 - 31.3.2015)
9) The company has been served with a demand notice by Maharashtra
Sales Tax Department for Rs.32.46 lakhs for Issues representing
reversal of input vat credit for the Assessment year 2005-06 & 2006-07.
An appeal is preferred by the company.
10) The Company has received legal notice from two of the claimants and
the matter is sub judice. Further one of the claimants has also
proposed winding up provision in the legal notice.
9a. one claimant has attained a decree against the company for a claim
of Rs. 1.18 lakhs which is being disputed by the company.
9b. one claimant who has issued a legal notice against the company for
Rs.93.86 lakhs has also proposed winding up of the company.
11) The company had sold its land to the extent of 1.62 acres at
Kaiapatty. The Co-owners of the erstwhile sellers to the company have
filled a case against the company. The matter is sub judice.
12) The company has received a demand from the Electricity Board
towards Additional Current Consumption Deposits of about Rs. 1.03
Crores (falling due on May. June and July end) for various units. This
deposits yet to be paid by the company.
5. provision is recognized when there is present obligation as a
result of a past event, that probably requires an outflow of resources
and a reliable estimate can be made to settle the amount of obligation.
Provision is not discounted to its present value and Is determined based
on the last estimate required to settle the obligation at the year end.
These are reviewed at each year end and adjusted to reflect best
current estimate.
Names of related parties and description of relationship upto 31.03.2015
Key management Personal Sri.Manoj Kumar Tibrewal, Managing Director
Sri.Mohanlal Tibrewal, Executive Director
Sri. Manoj Kumar Tibrewal : Managing Director
Smt. Anitha Tibrewal : Wife
Mr.Mayank Tibrewal : Son
Mrs. Arpita Tibrewal : Daughter in Law
Mr.Umang Tibrewal : Son
Sri. Mohanlal Tibrewal : Executive Director
Smtlakshmi Devi Tibrewal : Wife
Mrs.Suman Tibrewal : Daughter
Mrs.Neha Tibrewal : Daughter
6. Requirement under Clause 32 of the Listing Agreement. Loans and
advances in the nature of loans to subsidiaries, Firms, Associates and
Companies in which Directors are interested in Rs.Nil (Previous year
Nil)
7. In compliances with AS 22 relating to "Taxes on Income" the
company has not recognized Deferred Tax Liability / assets for current
year on account of absence of virtual certainty.
8. Previous year figures have been regrouped and reclassifed wherever
necessary.
9. Figures have been rounded off to the nearest rupee.
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