| 1.1 The company has issued only One class of shares referred to as
Equity shares having face value of Rs.5/-. Each Holder of One share is
entitled to One vote per share.
1.2 In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholder.
1.3 Under a scheme of the demerger, total paid up capital of the
company was reduced to Rs.13,50,00,000/- as against original paid up
capital of Rs.27,00,00,000/- by reducing the face value of share from
Rs.10 per share to Rs.5/- per share.
2.1 Security :
@ Term Loans under consortium finance are secured by first charge on
Fixed Assets (through mortgage/hypothecation of all immovable & movable
assets), both present & future; subject to prior charge in favour of
banker/other on specified assets for working capital loans/other loans
and secured by second charge on book debt & stocks and further secured
by personal guarantee of Promoter Directors & Corporate Gurantee of
Promoter's Group Companies.
2.2 Interest:
In respect of Term Loans under consortium finance the company is liable
to pay fixed interest @10.75% p.a. and in case of Funded
Interest Term Loan (FITL) interest Shall be payable @9.75% p.a on
monthly basis.
2.3 Default in payment of Interest & Installments:
The Company has not paid total amount of Principal of Rs.350,426,887/-
as on 31st March, 2014 ( Previous year Rs 377,706,735/-) and total
interest of Rs.1,13,795,419/- to various banks as on 31st March, 2014
(Previous year Rs 68,067,857/-).
2.4 The Company has defaulted in payment of principal and interest for
the whole year and hence the entire trem loan is due for payment as per
the terms of sanction.
2.5 Compound interest, penal interest & liquidated damages have not
been considered on all borrowings, amount of which is unascertainable,
pending confirmation / reconciliation.
3 Deferred Tax
The company is entitled for set off of carried forward losses and
unabsorbed depreciation against the future income under the income tax
act. However, as a matter of prudence, the company is not recognising
the deffered tax asset as provided in the Accounting Standard-22 issued
by the Institute of Chartered Accountant of India.
3.1 Security :
@ Working Capital Loans under consortium finance are secured by First
Charge on Book Debts and Stocks, and second charge on fixed assets and
further secured by personal guarantee of the Promoter Directors and
Corporate Guarantee of Promoter's Group Companies.
3.2 Default in payment of Interest & Cash Credit:
@ The Company has not paid total amount of Principal of cash Credit Rs.
235,817,211/- as on 31st March, 2014 ( Previous year Rs 235,835,862/-)
and total interest of Rs.95,454,215/- to various banks as on 31st March,
2014 (Previous year Rs 51,376,999/-).
3.3 @ Company has defaulted in payment of interest and Short term bank
borrowing Accounts not renewed and hence it is due for payment on
demand.
4.1 Default in payment of Interest on Term Loans & Working Capital
Loans:
The Details in respect of the Defaults made by the Company in payment
of Interest on Term Loan & Interest on Cash Credit has been given in
Note No.4.4 & Note No. 7.2 respectively.
5. CONTINGENT LIABILITIES:
Particulars 2013-14 2012-13
(Rs.in Lacs) (Rs.in Lacs)
a) Letters of Credit Outstanding Nil Nil
b) Income Tax demands disputed in appeal
by the Company/ Income Tax Authorities 23.67 234.72
(Against which the Company has paid amount
of Rs.6,23,979/-)
c) Bank Guarantee Nil 1.63
d) Value Added Tax demands disputed in
appeal by the Company 14.69 14.69
(Against which the Company has paid amount
of Rs.12,00,000/- )
e) Excise Duty demands disputed in appeal
by the Company/ Excise Authorities 2364.92 2128.10
(Against which the Company has paid
amount of Rs.400,736/-)
f) Textile Cess Demands disputed pending
with Textiles Committee, 50.90 50.90
Government of India, Ministry of Textiles.
g) Service Tax demand disputed in appeal by
the Company/Authority 41.96 41.96
(Against which the Company has paid
amount of Rs.503,046/-)
h) Claims not acknowledged as debts by the
company. 469.12 469.12
i) Show Cause Notices received from various
authorities 28.87 38.64
j) Employees Demands pending before
Labour Courts Amount not Amount not
ascertainable ascertainable
k) In respect of restructured Debts under CDR mechanisum, the banks
will have right Amount not Amount not to recompense in respect of
waivers/sacrifice made by them under CDR restructuring ascertainable
ascertainable
6. Debtors includes Rs. 2,642/- (Previous Year Rs. Nil) due from
private companies in which some of the directors are interested as
directors.
7. Based on the principles for determination of segments given in
Accounting Standard 17 "Segment Reporting" issued by the Institute of
Chartered Accountants of India, the company has identified its business
segment as primary segment. "Others" represents income from Trading of
Cloth. There is no reportable secondary segment as none of the
conditions as laid down for determining the geographical segments are
satisfied.
8. Related Party Disclosures
a) Key Management Personnel
Sr.
No. Name Designation
1 Shri Shyam Gupta Chairman
2 Shri Sunilkumar Gupta Managing Director
b) List of Other Related Parties with whom transactions have taken
place during the year
Sr.
No. Name
1 Gupta Dying and Printing Mills Pvt. Ltd.
2 Gupta Synthetics Limited
3 Shubhlaxmi Dying and Print Mills P. Ltd
4 Poly Coat India Pvt. Ltd
5 Ellora Syntex Pvt. Ltd
6 Sharp Synthetics Pvt. Ltd
7 Basant Bahar Properties Pvt Ltd
8 Millennium Infosoft Pvt. Ltd.
9. The amount of Exchange Difference
Debited to Profit and Loss Account Rs. Nil/- (Previous Year debited to
Profit and Loss Account Rs. 26,780/-)
10. Impairment of Asset
During the year, the company has impaired it's all assets to the tune
of Rs. Nil (Previous Year Rs. Nil)
11. Borrowing costs attributable to the acquisition or construction of
Qualifying Assets amounting to Rs. Nil (Previous Year Rs. Nil) is
capitalized by the company
12. Balances of Debtors, Creditors and Advances etc. are subject to
confirmation and reconciliation wherever required.
13. Figures of the previous year have been regrouped and/or rearranged
wherever necessary.
14. In the opinion of the board, Current Assets, Loans and Advances are
approximately of the value stated if realized in the ordinary course of
business.
Note : Previous year's figures have been shown in brackets.
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