17,500,000 Ordinary shares of Rs. 10 each
750,000 Preference shares of Rs. 100 each
Issued, Subscribed and Paid up
7,593,768 Ordinary shares of Rs.10 each fully paid up.
Of the above 4,145,326 Shares were allotted
as fully paid up Bonus shares by capitalisation
of General Reserve.
(a) Loans from banks are secured by :
- hypothecation on stocks of raw material, stock-in-process, stores,
manufactured goods, book debts, bill, moveable plant & machinery and
other current assets.
- mortgage on second charge basis by deposit of title deeds by
constructive delivery with Exim Bank, Exim Bank acting as agent of the
consortium of banks, all documents of title evidences, deeds and
writings in order to create a security on the Company's immovable
properties together with all buildings and structures thereon and all
plant and machinery attached to the earth or permanently fastened to
anything attached to the earth.
b) Term Loans from financial institution are secured by hypothecation
of all moveables, save and except book debts, including moveable
machinery, spares, tools and accessories, both present and future,
subject to prior charges created or to be created in favour of the
company's bankers for financing working capital requirements. Loans to
the extent of Rs. 12,500,000 (31.3.2004 Rs. 112,580,000) are also
secured by mortgage of the Company's immovable properties both present
1. Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 21,763,612 (31.3.2004 : Rs.3,035,164).
2. Contingent Liabilities not provided for :
The Company has furnished a guarantee for repayment of institutional
loans of another company in accordance with the terms of rehabilitation
of that Company sanctioned by the BIFR. The contingent liability under
the guarantee is Rs. 1,100,000 (31.3.2004 : Rs. 2,200,000).
Bank Guarantees : Rs. 222,849,541 (31.3.2004 : Rs. 213,141,945).
(b) Bills drawn on customers and discounted with banks and advances
against collection : Rs. 150,868,321 (31.3.2004 : Rs. 94,079,684).
(c) Claims against the company not acknowledged as debts :
i) In respect of matters relating to Income-tax, Wealth Tax and other
Commercial Taxes which are under appeal Rs. 23,690,802 (31.3.2004 :
ii) In respect of other matters : Rs. 11,381,148 (31.3.2004 :
3. Rampur Texpro Unit and 100% EOU Narayanpur have been closed with
effect from 22 July 2003 and 20 February 2004 with due process of law .
Working at Shalimar Unit has been suspended since 18 March 2005 due to
strike by the workers. Wellington Jute Mill, Rishra, Hooghly remained
under suspension of work from 20 October 2004 to 07 November 2004 due
to labour unrest. Working at Libra Carpet and 100% EOU at Choudwar has
resumed operation from 22 February 2005. Management is of the view that
the sale proceeds of the fixed Assets relating to the Rampur and
Narayanpur Units would not be lower than the amount at they are carried
in the books .This has been relied upon by the Auditors.
4. Insurance claims in respect of fire occurred in February 2004 at
Wellington Jute Mill would be accounted for on settlement/receipt of
related claim from the Insurance Company which is under assessment.
5. The Company has an Investment of Rs. 2,420 (31.3.2004 :
Rs.2,100,000) in A.I.Champdany Industries Limited (AICIL) and has
advanced an interest free loan of Rs. 82,000,000 (31.3.2004 : Rs.
82,000,000) in accordance with the scheme of rehabilitation sanctioned
by the BIFR. AICIL has since turned around and its net worth became
positive as of 30 September 2004.
6. The Company has taken under financial lease Plant & Machinery having
an aggregate cost of Rs. Nil (31.3.2004 : Rs. 1,184,200). The lease
rentals paid during the year amounted to Rs. Nil (31.3.2004 : 367,853).
7. Small Scale Industrial units to which the Company owes amounts which
have been outstanding for more than 30 days as at 31 March 2005:
Associated Engineering Co, A.B. Engineering, Bengal Paper Core
Industries , Bhadreswar Foundry, Eshani Rubber Industries, Fintex
Private Ltd., Gadia Manufacturing Co., Garuda Automation System, Jai
glass & chemical, Jupiter S Co., Juco Machinery Corporation, Kaven
Plasticare Pvt. Ltd., Madhavi Engg. Works , S.K. Synthetics, Sandeep
Industries, Synthetic Plywood Industries (P) Ltd., Shankar Engineering
works, Rescon Chemicals (P) Ltd., Universal Stores Syndicate.
The above information has been compiled in respect of parties to the
extent to which they could be identified as small scale and ancillary
undertakings on the basis of information available with the Company.
8. Commodity Hedging Transactions
The outstanding commodity hedging contracts are accounted on the date
of their settlement and realised gain/loss in respect of settled
contracts are recognised in the Profit and Loss Account, along with the
9. The Profit and Loss Account includes net exchange gain of
Rs.5,804,006 (2003-04: Rs.12,590,362).
10. The Profit & Loss Account includes a debit of Rs. 60,000
(2003-04:Rs. 515,286) relating to earlier years.
11. The Company's application to the Competent Authority for exemption
from the provisions of the Urban Land (Ceiling and Regulation)Act, 1976
is pending approval.
12. Purchase of goods include Rs. 456,601,673 (2003-04
Rs. 1,067,609,856) towards Purchase of 16,109 M.T. (2003-04 : 46,342
M.T.) of Jute Goods.
(1) The Licensed Capacity of Wellington Jute Mills has been estimated
by the Management based on the number of spindles licensed at the Mill.
The Licensed Capacities in respect of the Export Oriented units,
Shalimarunit and Carpet unit are in accordance with respective
(2) As certified by the Directors and accepted by the Auditors.
(3) Excludes data for captive consumption.
13. Jute Carpets have been treated as belonging to the same class as
Jute Goods and accordingly, information relating to Turnover,
Capacities and Production of Jute Carpets has been included in Jute
Goods in Schedule 13 and Note 25 respectively
14. The Company has maintained separate books of account for each of
its 100% Export Oriented units at Rishra, Narayanpur , Choudwar and
Konnagar (yarn) and for the other units at Shalimar, Rampur, Konnagar
(Weaving), Beldanga, Jagatdal (Flax) and Libra Carpet unit at Choudwar.
15. Champdany Constructions Limited, has become wholly owned Subsidiary
company with effect from 10 October 2004.
16. In terms of approval of the Shareholders in the General Meeting of
the Company held on 25 February 2005 convened by Hon'ble High Court at
Kolkata, the Scheme of Amalgamation with A.I. Champdany Industries
limited , has been submitted to the Calcutta High Court. The Scheme
will be given effect to in the financial statements with effect from 01
April 2004, only after necessary regulatory approvals are received.
17. Remittance in Foreign Currencies for Dividends : Rupees
No. of non-resident shareholders 2 2
No of shares held by non-resident shareholders 3,200,000 3,200,000
Amount of Dividend remitted (Gross) in respect
of years to which such dividends relate (in Rupees)
2002-03 - Rs.5,760,000
2003-04 - Rs.8,000,000
18. Previous year's figures have been re-arranged/re-grouped, wherever
necessary to conform to current year's classification.