| a) Previous years figures have been regrouped or rearranged, wherever
necessary, to conform to current years' classification.
b) Contingent Liabilities
(Rupees in lacs)
Particulars 2013-14 2012-13
i) Claims against the Company
not acknowledged as debts. NIL 13.55
ii) Income Tax matter relating to Ass.
Year 2006-07 7.75 7.75
iii) VAT appeal relating to year 2008-09 13.87 Nil
iv) The Company, earlier having its plant at Gujarat Industrial
Development Corporation (GIDC), Ankleshwar, was required to contribute
towards equity of Bharuch Eco Aqua Infrastructure Ltd. (BEAIL), a
company floated by GIDC and GPCB for implementing an effluent treatment
and disposal system in GIDC, Ankleswar. BEAIL requires all
member-companies to give a counter guarantee in favour of GIDC for
loans sanctioned by financial institutions to BEAIL and guaranteed by
GIDC. This counter-guarantee has been issued by the Company. However,
no liability has been materialized as on 31st March 2014 due to this
counter guarantee provided to GIDC. The Company will take necessary
steps for withdrawal of this counter guarantee as it does not have any
plant now in GIDC, Ankleswar.
c) Auction of Manufacturing Facilities of the company under SARFAESI
Act, 2002 and Recovery case in DRT.
Indian Bank (Lead Bank) auctioned both the facilities of the company
i.e. weaving unit and process house at Ankleshwar, under The
Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 (SARFAESI Act) in February, 2012.
Further, Indian Bank has filed a case in Debt Recovery Tribunal (DRT)
Mumbai for recovery of dues which is going on.
d) Impairment of Assets
In opinion of the management, none of the assets of the company are
required to be further Impaired as on the date of the balance sheet in
accordance with Accounting Standard 28 issued by the Institute of
Chartered Accountants of India on "Impairment of Assets".
e) Secured Loans
The Term Loans & Working Capital Loans from banks were/are secured by:
i. Pari passu first charge on fixed assets situated at Plot No.
5901/2, GIDC, Ankleshwar, Gujarat state, in favour of IDBI and Indian
Bank and second charge thereon in favour of Indian Bank Consortium.
ii. Pari passu first charge on fixed assets situated at Plot No. 3608,
GIDC, Ankleshwar, Gujarat state, in favour of Indian Bank Consortium
and second charge thereon in favour of IDBI and Indian Bank.
iii. Personnel Guarantee of the promoter directors namely Shri Mazher
N. Laila, Shri Salim T. Shahpurwala and Shri Shabbbir N. Laila.
iv. Pledge of promoter Director's shareholding of 629381 shares in
Oxford Industries Ltd.
v. Corporate Guarantee of Kachins Textiles Ltd., Panoli, Ankleswar.
vi. Pari passu first charge favouring Consortium Banks on Continuous
Bleaching Range (CBR) machine for WCTL/FITL.
vii Hypothecation of inventories including consumable spares and book
debts in respect of working capital facilities including WCTL and FITL,
which are further secured by pari passu first charge by way of
equitable mortgage of all fixed assets at Plot No. 3608, GIDC,
Ankleshwar, Gujarat state.
(Note: Indian Bank (Lead Bank) had auctioned both the manufacturing
facilities of the company i.e. Weaving unit situated at plot no. 3608
and Process House situated at plot no. 5901/2, at GIDC Ankleshwar in
February 2012. Charges relating to point no. (i), (ii) and (vi) above
have been satisfied during the year).
f) Interest On Secured Loan
As already reported, Indian Bank (Lead Bank) had exercised its
enforcement right under SARFAESI Act, 2002 and auctioned both the
facilities of the company i.e. weaving unit and process house at
Ankleshwar in February, 2012. Indian Bank has filed a case in Debt
Recovery Tribunal(DRT), Mumbai, which is going on. In view of this,
Interest on secured loan from consortium of banks for the year of Rs.
589.66 lacs (Previous Year 514.73 lacs) cumulative interest as on 31st
March 2014 of Rs. 2171.24 lacs (Previous Year Rs. 1581.58 lacs) has not
been charged to revenue.
Note: Due to inadequacy of profits, managerial remuneration is paid as
per Schedule XIII read with section 198 and other applicable provisions
of the Companies Act, 1956 and hence no computation is given in the
note.
i) Current Assets, loans & advances.
i) In the opinion of the Board of Directors, all current assets, loans
& advances have a value on realisation in ordinary course of the
company's business, which is at least equal to the amount at which they
are stated in Balance Sheet unless otherwise stated.
ii) The court case which was pending before Hon'ble Gujarat High Court,
Ahmedabad, against Dakshin Gujarat Vii Company Ltd. (DGVCL) to refund
the deposit of Rs.15.95 lacs had been pronounced in favour of the
Company. But DGVCL has filed an appeal with Hon'ble Division Bench of
Gujarat High Court, Ahemdabad, against this order which is pending.
iii) Balances of Sundry Debtors, Sundry Creditors, Loans & Advances and
various others Debit/Credit balances including
Bankers/Lenders/lnstitutions/Companies are subject to confirmation.
iv) The Company had placed fixed deposits with Oriental Bank of
Commerce against L.C. margins. As per intimation received from the
Bank, the same shall be apportioned on pro-rata basis between the bank
and ARCIL against outstanding liabilities. No information has been
received by the company on such apportionment.
j) Export incentives in form of DEPB Licence Entitlement/Duty Drawback
at the end of the year are recognized at Rs. Nil ( P.Y. Nil)
k) Unpaid dividend on 15% Optionally Cumulative Convertible Redeemable
Preference Shares (that were already converted into equity shares as
per the terms) for the year ended on 31-03-2001 Rs.18.00 lacs, & for
the year ended on 31-03-2002 Rs.4,09,315 /- were not provided for in
the books of accounts due to inadequacy of profit in 2001-02 and losses
in 2002-03. This position remains the same as on 31.03.2014.
l) During the year, the company has capitalized borrowing costs
amounting to Rs. NIL/- (Previous Year Rs.NIL) attributable to the
acquisition or construction of fixed assets.
m) Deferred Tax: The net Loss of the Company (as per the provisions of
the Income-tax Act, 1961) for financial years 2007-08, 2008-09, 2009-10
and 2010-11 were 319.60 Lacs, 933.73 Lacs,15.24 Lacs, 64.29 Lacs
respectively. Further, in opinion of the management, given the present
state of affairs, it is uncertain whether the operations of the Company
would result in taxable income in the near future. As per the
guidelines provided by Accounting Standard ('AS') 22 issued by the
Institute of Chartered Accountants of India, deferred tax assets should
be recognized only in case that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. Accordingly, the company has not
recognized any Deferred Tax Asset as at 31st March 2014. As a matter of
prudence the management has provided for Deferred Tax Liability as on
that date.
n) Dues to Micro and Small Enterprises (SME):
In terms of Section 22 of the Micro, Small and Medium Enterprises
Development Act 2006, ('SME Act') the outstanding payable to Micro and
Small enterprises, as defined under the SME Act, are required to be
disclosed in the prescribed format. However, such Enterprises are
required to be registered under the SME Act. In the absence of the
information about registration of the Enterprises as at 31s1 March
2014, the required information could not be furnished. However, the
management is of the opinion that the company has not received any
claim for overdue interest from such suppliers during the year.
o) The company's objects mainly confined to manufacturing and selling
of textile fabrics in India. Hence disclosure requirements of
Accounting Standard 17 on "Segment Reporting" issued by the Institute
of Chartered Accountants of India are not applicable to the company.
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