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Gwalior Polypipes
BSE: 506987|SECTOR: Chemicals
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Gwalior Polypipes is not traded in the last 30 days
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« Mar 13
Notes to Accounts Year End : Mar '14
1 General Information
 
 Gwalior PoJyPipes Limited was incorporated on October 19, 1982 and is
 engaged in the manufacturing of Rigid PVC Pipes & Fittings and PVC and
 HDPE Corrugated Pipes & Fittings.
 
 2 Additional Notes To Financials statements
 
 2.1 Reference to BIFRand appelastoAAIFR
 
 The Company was declared as a sick industrial company in terms of
 Section 3(1 )(o) of the Sick Industrial Companies (Special Provisions)
 Act, 1985 (SICA) vide BIFR order dated September 9, 2009. IFCI was
 appointed as the Operating Agency for formulating the scheme of
 rehabilitation. Subsequently, BIFR vide its order dated October 11,
 2010 had ordered for issue of an advertisement for change of management
 of the Company, against which the Company preferred an Appeal with
 Appellate Authority for Industrial and Financial Reconstruction
 (AAIFR).
 
 In the meantime, BIFR passed an order dated March 15,2012 that since
 Kotak Mahjndra Bank Ltd. has taken symbolic possession of the factories
 of the Company under section 13 (4) of SARFAESI Act, 2002, the
 Company''s reference No. 02/2008 stands under third proviso to the
 sub-section (1) of section 15 of SICA. Consequently, the Appeal with
 AAIFR became infructuous and dismissed vide AAIFR order dated March
 22,2013. The Company has filed a writ petition before the Hon''ble M.P.
 High Court against the abatement of reference by BIFR/AAIFR.
 
 2.2 Unsecured Loans
 
 Working Capital facilities were originally sanctioned by State Bank of
 India (SBI), Gwalior. The said loans were secured by a first charge on
 the current assets of the company anda personal guarantee by Managing
 Director, Whole time Director & two former Directors of the Company.
 The said working capital facilities were further secured by mortgage of
 land, building and plant & machinery of the units of the Company.
 
 During August 2003, SBI had cancelled the limits and recalled the loans
 and filed a suit before Debt Recovery Tribunal (DRT), Jabalpur for
 recovery of the amount due. Subsequently, SBI had assigned the said
 loan to Kotak Mahindra Bank Limited (KMBL), pursuant to the execution
 of a deed of assignment on January 16,2006.
 
 The loan payable to KMBL has been consistently considered as unsecured,
 as no charge on the assets has ever been created / registered in their
 favour. KMBL had issued a notice dated July 6, 2007 to the Company u/s
 13 (2) of SARFAESI Act, 2002, despite being an unsecured creditor,
 against which the Company filed a Writ Petition before the Hon''ble High
 Court qf Judicature Jabalpur Bench at Gwalior on the ground that the
 bank being assignee of the debt is not a secured creditor and hence can
 not take action under SARFAESI Act, 2002. During the pendency of the
 case for final hearing, KMBL took an action on 28th and 29th November
 20.11 purportedly u/s 13(4) SARFAESI Act, 2002 and took the symbolic
 possession of the assets of the Company.
 
 On being approached by the Company against the said action of KMBL, an
 order dated December 7,2011 was passed by the Hon''ble High Court of
 Madhya Pradesh-directing KMBL that no coercive action be taken against
 the Company. Later, the Hon''ble High Court of Madhya Pradesh directed
 the Company to file appropriate application before the Debt Recovery
 Tribunal (DRT), against the action of KMBL taken under SARFAESI Act,
 2002. The Company has filed the Application before the DRT Jabalpur,
 which is being heard.
 
 Interest on unsecured loans payable to KMBL has not been provided for
 the year as the liability amount and transfer of security interest with
 KMBL has been disputed. Further, the Directors are of the view that the
 existing provision in the books made earlier as a matter of prudence,
 is considered sufficient to cover the interest liability, if held
 otherwise, and the shortfall, if any, shall be dealt with on cash basis
 at the time of settlement.
 
 2.3 Provisions
 
 No provision of interest on various overdue outstanding liabilities on
 account of Sales Tax/VAT/CST/Entry Tax aggregating to Rs. 121.05 Lac
 (including that disputed amounting Rs.90.55 Lac) has been made in the
 accounts as the management is hopeful of getting the waiver of interest
 in full or in part at the time of the settlement of the dues
 particularly in vjew of the huge losses suffered by the Company in the
 past and hence the liability is not expected to be material and shall
 be dealt with on cash basis.
 
 2.4 Fixed Assets
 
 The Sales Tax Authorities of M.P. at Gwalior had attached and sealed
 the company''s manufacturing unit at Malanpur and attached its Kota unit
 for realization of its dues. The company had disputed the action of
 sales tax authorities before Hon''ble High Court of Madhya Pradesh,
 Gwalior Bench. The matter is sub-judice.
 
 As stated above, KMBL took symbolic possession of factories of the
 company under section 13 (4) of SARFAESI Act, 2002, on 28th and 29th
 November, 2011. The matter is under adjudication before the DRT,
 Jabalpur, as directed by the Hon''ble High Court of Madhya Pradesh.
 
 2.5 Current assets, loans & advances
 
 In the opinion of the board, current assets, loans and advances have a
 value on realisation in the ordinary course of business, at least equal
 to the amount at which they are stated. No provision has been made
 against the dues of Rs. 65.9 Lacs from Mr. H.K. Sahu, ex Managing
 Director of the company, A criminal suit has been filed against him for
 recovery of this amount, which is pending in the couri.
 
 Letter of confirmation of balances have not been received and hence the
 balances (debit/credit) are subject to adjustments, if any, on
 reconciliation/settlement of accounts.
 
 2.6 Accounts Payable
 
 The Company is in the process of identification of Micro and Medium
 suppliers as defined in and for the purpose of payment of interest on
 overdues to them as required by The Micro, Small and Medium Enterprises
 Development Act, 2006. Responses from suppliers are awaited till the
 time of preparation of these accounts and therefore, prescribed
 disclosures under Section - 22 of the Act could not be given.
 
 b. Terms/rights attached to equity shares
 
 The company has only one class of shares referred to as equity shares
 having par value of Rs. 10 each. Each holder of equity shares is
 entitled to one vote per fully paid up share held. The dividend
 proposed, if any, by the Board of Directors is subject to approval of
 the shareholders in the ensuing Annual General Meeting, except in case
 of interim dividend. In the event of liquidation, the equity
 shareholders are eligible to receive the remaining assets of the
 company after distribution of all preferential amounts, in proportion
 to their shareholding.
 
 Note 3 Previous year''s figures
 
 Previous year figures have been regrouped and re-arranged so as to
 confirm to current year''s classification.
Source : Dion Global Solutions Limited
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