| a) The Company has only one class of issued shares i.e. Ordinary
Shares having par value of Rs.10/- per share. Each holder of Ordinary
Share is entitled to one vote per share and equal right for dividend.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting, except
in case of interim dividend. In the event of liquidation, the ordinary
shareholders are eligible to receive the remaining assets of the
Company after payment of all preferential amounts, in proportion to
their shareholding.
b) The Company does not have any holding company or ultimate holding
company.
c) Details of shareholders holding more than 5% shares in the Company:
d) No Ordinary Shares have been reserved for issue under options and
contracts/commitments for the sale of shares/disinvestment as at the
Balance Sheet date.
e) No Ordinary Shares have been bought back by the Company during the
period of 5 years preceding the date as at which the Balance Sheet is
prepared.
Security
Term Loan is secured by equitable mortgage of all fixed assets
including leasehold/freehold land, building and Capital Work in
Progress (both present & future). The above loan are also guaranteed
by a relative of director.
A Contingent and disputed liabilities not provided for:-
A (i) Claims against the Company not acknowledged as debts
(Amount in Rs.)
As at 31st As at 31st
March,2015 March, 2014
i) Disallowance of Modvat Credit on
input items Felts & etc from 320,192 320,192
November, 1991 to May, 1992
ii) Disputed income tax liability
relating to disallowance of
depreciation in - 796,364
calculation of book profit
under MAT provisions pending before Kolkata
High Court for the financial year 1996- 1997.
iii) Disputed income tax liability
relating to imposition of interest on advance 550,000 550,000
tax not paid u/s 154 pending before
Deputy Commissioner of Income Tax,
Kolkata for the financial year 2007-2008.
(ii) Civil Cases Pending
SL Name of Party Before the Court Nature Brief Description
a Rajlakshmi Learned Civil Against Suit claiming a
Chemaical Judge Supply decree for
Industries (Sr. Division) of Rs 241,000
_ Pune Material (P.Y 241,000) with
interest from the
interest from the
date of suit till
completion.
The above claims / demands are at various stages of appeal and in the
opinion of the Company are not tenable.
B Estimated amount of contracts remaining to be executed on Capital
Account not provided for Rs. nil, (net of advance), Previous Financial
Year Rs. nil (net of advance).
C Bank guarantee outstanding at the year end is Rs.7,45,000 (Previous
year Rs.15,10,773).
D.i During the year the Company has reached to a compromise settlement
with the lender bank and vide bank's letter dated 27th March 2015, the
entire dues to the bank as on 27th March 2015 have been settled at a
fixed sum which shall be repayable without any further interest as per
the terms of settlement. Accordingly a sum of Rs. 5,00,00,000 was paid
to the bank by the company till 31st March 2015. Further a sum of Rs.
4,50,50,201/- representing liability for interest towards various
facilities availed from the bank in earlier years have been written
back during the year in lieu of settlement.
ii The interest on various facilities from the bank amounting to
Rs.4,22,92,645 provided during the year for the period 1st April 2014
to 31st December 2014 has also been reversed at the end of the year in
lieu of above settlement.
E The net worth of the Company has been fully eroded. These financial
statements have been prepared on a going concern basis based on the
future strategic plan envisaged by the management for the revival of
the company and on the basis of a comfort letter received from a
promoter company confirming their continued financial support. Further
the Board of directors have decided in their meeting dated 11th April
2015 to explore various avenues to raise funds to repay the term loan.
F The paper factory remains under shut down w.e.f. 6th October, 2010
to fulfil certain pollution control measures as laid down by Central
Pollution Control Board. The management of the company is taking
active steps to comply with the required norms to start the factory.
The management is also actively considering to begin paper production
through alternate means. As reported earlier, the new paper mill with
an annual capacity of 18,000 MT is under installation and waiting for
necessary clearance to commence production as mentioned above. The
power plant also could not be started due to non operation of the
paper mill and thus still kept under capital work in progress.
G In compliance with Accounting Standard AS-28 relating to "Impairment
of Assets", the company has reviewed the carrying amount of its fixed
assets & Capital work in progress as at the end of the year. Based on
the future strategic plans and the valuation report of the fixed
assets of the company, no impairment of fixed assets & Capital work in
progress has been envisaged at the balance sheet date.
H In view of the requirements of Schedule II of the Companies Act 2013
("Act"), depreciation for the year has been provided based on the
lives prescribed under the schedule II. Further in view of
transitional provision of the Schedule II, a sum of Rs. 2,20,154/- has
been recognised in the Statement of Profit & Loss on account of those
assets whose useful life was nil as on 31st March 2014 as per the
provision of Schedule II. Further due to applicability of schedule II
during the year, the depreciation for the year is higher by Rs.2.43
lacs.
I Balance confirmations from some of the parties of trade receivable,
unsecured loans, advances and trade payable are yet to be received.
J Employee Benefits:
a) Defined Contribution Plan:
The Company makes contribution towards provident fund and Employee's
State Insurance Corporation (ESIC) to a defined contribution
retirement benefit plan for qualifying employees. The Provident Fund
plan and ESIC are operated by concerned Government agencies created
for the purpose. Under the said schemes the company is required to
contribute a specific percentage of pay roll costs in respect of
eligible employees to the Scheme to fund the benefits. The
contribution payable to these plans by the company is at the rates
specified in the rules of the scheme.
During the year the company has contributed Rs. 1,37,765 (P.Y
Rs1,70,409) for Provident Fund and Rs. 57,357 (P.Y Rs.74,846) for ESI
Fund. The contributions payable to these plans by the Company are at
the rates specified in the rules of the scheme.
b) Defined Benefits Plan:
i) Gratuity: 15 days salary for every completed year of service.
Vesting period is 5 years and payment is restricted to Rs. 10.00 lacs.
ii) Leave: The employees of the Company are also eligible for
encashment of leave on retirement.
iii) The present value of defined obligation and related current cost
are measured using the Projected Credit Method with actuarial
valuation being carried out at each balance sheet date.
c) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
d) The table below illustrates experience adjustment disclosure as per
para 120(n)(ii) of Accounting Standard 15 -Employee Benefits.
e) The disclosure as required by Para 120 of Accounting Standard - 15
"Employee Benefit" has been made to the extent applicable to the
Company.
K No borrowing cost as per Accounting Standard -16 "Borrowing Costs"
has been capitalised during the year.
L The company does not have any exposure in foreign currency at the
year end.
M Segment Reporting
The Company's business activities fall within a single primary
reportable segment viz., Writing & Printing Paper. Accordingly,
pursuant to Accounting Standard (AS)-17 on Segment Reporting,
Segmental Information is not given.
N Related party's disclosures under AS- 18
Q In view of substantial brought forward losses and depreciation, the
year end deferred tax position reflects net deferred tax assets and
the same has not been recognised on account of prudence.
R The entire spares and components consumption during the year as well
for the previous year are through indigenous sources.
S Previous year's figures have been regrouped and/or re-arranged
wherever necessary, to conform the current year classification.
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