| i) Contingent liabilities not provided for:
Sr. Particulars As At As At
No. 31st March, 30th September,
2015 2013
a) Counter Guarantees for Sales tax 5,000 5,000
b) Claims against the Group not
acknowledged as debts 321,594,000 64,243,000
c) Letter of undertaking executed in
favour of Joint Director General of
foreign trade under Duty Exemption
Entitlement Scheme (Advance
License Scheme) for custom duty 13,040,682 13,040,682
d) Letters of credit and Bank Guarantees
given by bankers on behalf of the Company. 5,250,000 5,250,000
Contingent liabilities are considered only when converted into demands.
ii. The Board is contemplating taking steps for recovering the
calls-in-arrears from defaulting applicants, including forfeiture of
the shares as a last resort after exhausting all other avenues for
recovery in a spirit of maintaining shareholder friendly environment.
The Board therefore considers it prudent not to provide for the
interest on calls-in-arrears.
iii. Estimated amount of contracts remaining to be executed on capital
account net of advances is Rs. Nil (Previous Year Rs. Nil).
iv. During the period the company has paid 10% share application money
of Rs. 49,906 to Prag Jyoti Tetile Park Pvt Ltd which is grouped under
Current Assets.
v. Loans and Advances include Rs. 77,66,880 (Previous Year Rs.
77,28,700/- ) overdue from various parties on account of accommodation
deposits, security deposits, advances given to suppliers, ex-employees,
etc. Compensation for delayed payment, if any, will be accounted in the
books of account, if and when realized. No provision is made since the
Company has recovered part of the amount and is hopeful of recovering
the balance amount.
vi. There is no amount overdue and remaining unpaid to small scale/or
ancillary Industrial Suppliers on principal and/or interest as at the
close of the period.
vii. Previous Period's figures have been regrouped/
reclassified/rearranged wherever necessary.
viii. In the opinion of the Board of Directors, in the ordinary course
of business the value on realization of current assets, loans and
advances, including security Deposits are at least equal to the amount
at which they are stated in the Balance Sheet.
ix. Amounts appearing in Trade Receivables & Payables are realized and
paid as on date of signing. Balances of Banks, Sundry Debtors, Sundry
Creditors, Loans & Advance, and Deposits are subject to confirmation.
xi. The AS-17 "Segment Reporting" is not applicable as the Company
has operated only in one segment i.e. manufacturing of Yarn.
xii. AS-18 Related Party Information:
Pursuant to AS-18 information on remuneration paid to Key Management
Personnel is given in the report on Corporate Governance under the
heading " Remuneration to Directors" for Shri. Hemant B.Vyas -
Managing Director and Shri S. K. Saha - Finance Director.
xiii. During the period, the company has entered into One Time
Settlement (OTS) with Standard Chartered Bank (SCB) in respect of their
dues of holding 8% Optionally Cumulative Convertible Debentures (OCCD)
worth Rs. 11.34 Crores, Unsecured Loan of Rs. 2.9 Crores and Interest
Accrued, due and provided of Rs. 3.41 Crores upto 31.03.2015. As per the
terms of OTS; Standard Chartered Bank is paid Rs. 2.26 Crores towards
total dues of 8% OCCD holding, Rs. 0.25 crores towards Unsecured Loans
and Interest Accrued and Due is totally waived. Therefore, the
remaining balance in OCCD of Rs. 9.08 Crores, Rs. 1.84 Crores in
Unsecured Loans of SCB and Interest Accrued and Due of Rs. 3.41 Crores
being non payable to SCB are transferred to General Reserve as per
legal advice.
xiv. Salary, Wages and other dues in respect of workers at Guwahati
factory who had not attended to the work and for such workers total
Salary, Wages of Rs. 81,16,327 and other dues of Rs. 4,23,678 for the
period October, 2013 to March 2014 were provided in the accounts. As
per legal and experts opinion, provision is not required and hence the
same is written back as per the legal advice and expert's opinion.
xv. Prag Bosimi Synthetics Ltd (Holding Company) has two subsidiaries
viz Prag Bosimi Texturising Pvt. Ltd. and Prag Bosimi Packaging Pvt.
Ltd. Both these companies are non operating and non revenue generating.
Therefore certain operating expenditure incurred by the company are
absorbed by the holding Company. Accordingly such expenses incurred
during the period are absorbed.
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