1. Discontinuing operations
On 14/11/2015, Board of Directors announced the plan to discontinue
operations of the Duplex Board Division of the company operating at
Chalakudy.
The decision of the disposal is in line with the company's long term
strategy to focus on more profit making segments rather than low margin
or loss making segments.
Further it was also decided to scrap the plant and machinery and
building and sell off the same for which a valuation report has been
placed and approved by the Board. It is proposed to sell off the land
separately. It is expected that these operations will be concluded by
March 2016.
At 31st March, 2015, the carrying amount of the assets of the division
was Rs.529.55 lakhs and its liabilities were Rs.48.92 Lakhs. The above
carrying amounts of assets were determined after providing for an
impairment loss of Rs 614.80 Lakhs (Previous Year NIL) in the year
ending on 31.03.2015.
The following statement shows the revenue and expenses of discontinuing
operations:
2. During the last 5 years, the company has not issued any shares
pursuant to any contract without payment being received in cash, as
bonus shares or has not brought back any shares
3. No shares have been reserved for issue under options and contracts /
commitments for the sale of shares / disinvestment
4. The Company has not issued any securities convertible into Equity or
Preference Shares
5. No shares have been forfeited till date.
6. Out of the total share capital issued and called up, no calls are
outstanding as unpaid
1 Nature of Security
a Term Loan Nature of Security
i. Federal Bank Ltd Paripassu first charge on the fixed assets and
pari passu second charge on the current assets of the company.
ii. State Bank of Travancore Paripassu first charge on the fixed
assets including equitable mortgage of land and pari passu second
charge on the current assets of the company.
iii. Axis Bank Paripassu first charge on the fixed assets and pari
passu second charge on the current assets of the company.
iv. Punjab National Bank Paripassu first charge on the fixed assets
including equitable mortgage of land and pari passu second charge on
the current assets of the company.
b. Vehicle loan from: Axis Bank (Loan 2) Hypothecation of Maruti Ritz
car
Axis Bank (Loan 3) Hypothecation of Maruti Swift Desire Car
Axis Bank (Loan 4) Hypothecation of Maruti Ertiga VDI Car
2 Personal Guarantee Details Nil
3 Terms of Repayment of Term Loans
Loan Terms of Repayment
a. Federal Bank Ltd Repayment in graded instalments in 84 months:
Month 1 -40 : Rs 1.50 lacs each Month 41 - 60 : Rs 2.50 lacs each Month
61 - 84 : Rs 3.75 Lacs each
b. State Bank of Travancore (TL I) Repayment in 131 monthly
instalments of Rs 7,58,000/- each and final payment of 7,02,000/-
c. State Bank of Travancore (TL II) Repayment in 131 monthly
installments of Rs 4,55,000/- each and final payment of Rs 3,95,000/-
d. Axis Bank Repayment in 59 monthly installments of Rs 16,66,000 each
and last installment of Rs. 17,06,000
e. Punjab National bank Repayment in 120 monthly installments of
Rs 2,50,000/- each commencing from June 2014
f. Axis Bank (Vehicle Loan 2) Repayment in 36 EMI of Rs 17399/- each
g. Axis Bank (Vehicle Loan 3) Repayment in 60 EMI of Rs 11044/- each
h. Axis Bank (Vehicle Loan 4) Repayment in 60 EMI of Rs 16083/- each
There is no continuing default as on the date of balance sheet in
repayment of loans and interest.
Mode of valuation: Inventory of raw materials and consumables are
valued at cost or net realizable value, whichever is lower, under FIFO
Method. Finished Goods are valued at cost or net realizable value
whichever is lower. Cost for the purposes of valuation of finished
goods includes cost of material, labour and other direct expenses.
Stock-in-process is valued at raw material cost plus proportionate
direct cost, wherever applicable. Scraped asset amounting to Rs. 457.98
lacs is stated at the value estimated by Approved Valuer.
Inventories in the nature of Renewable Energy Certificates (REC) are
accounted for in accordance with Guidance Note on Accounting for Self
Generated Emission Reductions issued by ICAI. Accordingly, RECs are
recognized on approval of certificate from respective authority, which
are valued at lower of cost or net realizable value. Cost comprises of
cost incurred for certification of REC and NRV is the floor price fixed
by Central Electricity Regulatory Commission.
i. CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Unexpired Contracts for Capital Expenditure : Rs 278 lacs (Previous
year Rs 277.37 lacs)
b) Usance Letter of credit remaining unpaid as on 31.03.2015 amounts to
Rs 2585.86 lacs (Previous years Rs.2319.39 lacs)
c) Guarantee given by bank on behalf of the Company Rs 133.32 lacs
(Previous year Rs 166.58 lacs)
d) Amount of Income tax liabilities disputed in appeal Rs 38.61 lacs
(Previous year Rs 152.07 lacs)
e) Additional claims of electricity charges disputed Rs 2.80 lacs
(Previous year Rs 2.80 lacs)
f) Sales Tax demand disputed under appeal is Rs 15.48 lacs (Previous
year 15.66 lacs)
g) Excise duty disputed under appeal Rs 143.78 lacs (Previous year Rs
143.78 lacs)
h) Claim towards water charge raised by Kerala Water Authority for Rs
78.42 lacs disputed in appeal (Previous year Rs 78.42 lacs)
i) Acturial valuation of gratuity is presently based on the retirement
age of 55 years. The Union has filed a case before Kerala High Court
for increasing the retirement age to 58. Impact on provision for
gratuity, if the case is decided against the Company, has not been
ascertained.
j) Customs duty liability of Rs 58.79 lacs (Previous year Rs 58.79
lacs) under EPCG claim
k) Arrears of non - convertible cumulative preference dividend is Rs
131.96 lacs (Previous year Rs nil)
Notes: The following information shall be furnished at the end of the
statement:
1. Names of subsidiaries which are yet to commence operations:
a) Sree Kailas Palchuram Hydro Power Ltd
b) Sree Adisakthi Mukkuttathode Hydro Power Ltd
c) Jalashaayi Alamparathode Hydro Power Ltd
2. Names of subsidiaries which have been liquidated or sold during the
year: Nil
1. Names of associates or joint ventures which are yet to commence
operations.
2. Names of associates or joint ventures which have been liquidated or
sold during the year. Note: This Form is to be certified in the same
manner in which the Balance Sheet is to be certified.
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