Bank of India has filed a case against the company with the Hon''ble
Bombay High court for Rs. 166,34,72,817/- in the capacity of trustee
for certain series of Debentures which is in appeal and the Company
does not expect any liability in this matter.
2. SCHEME OF COMPROMISE AND ARRANGEMENTS
The Company has since made all the payments due as per the sanctioned
scheme except the T Series Debenture Holders who have not yet
surrendered their Debenture Certificates and Security Depositors who
have not yet claimed.
3. EQUITY SHARE CAPITAL
The Hon''ble Bombay High Court vide their order dated 8th April 2011 has
confirmed the reduction of Capital of the Company by cancellation of
1,18,45,425 Equity Shares and the reduction of the paid up and face
value per Equity Share from Rs.10/- to Rs.5/-. The Registrar of
Companies, Maharashtra, Mumbai has registered the said reduction on
14th June 2011 and altered the Master Data. Accordingly the Company has
given accounting effect to the same during the Quarter Ended 30th June
2011. The Revised Authorised Capital of the Company is 7,00,00,000
Equity Shares of Rs. 5/ - each and Paid up Capital of the Company is
2,80,36,275 shares of Rs.5/- each aggregating to Rs.14,01,81,375/- and
the Share Premium Account is Nil as on 31st March 2012.
4. NON CONFIRMATIONS AND RECONCILIATIONS OF BANKS
In respect of Current Accounts with banks amounting to Rs. 32,53,369/-
(net) [previous year Rs.77,01,461/- (net)] which includes book debit
balance of Rs. 34,30,207/- and book credit balance of Rs. 1,76,838/-,
statements of account were not being received; including from 2000-2001
in some cases.
5. During the year 2004-2005 the company has accounted for the
immovable properties acquired in satisfaction of claims valued at
Rs.59,76,429/-. Though the company is in possession of the property,
completion of documentation is pending.
6. Most of the company''s debtors are fully provided / written off and
have been suit filed or not traceable. In the past the Company had
circulated confirmation letters to debtors/advances. As most of these
companies'' latest addresses are not available, the Company has not sent
any confirmation letters this year. The Company has not circularised
confirmations for Sundry Creditor balances.
7. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid/payable
as required under the said Act have not been given.
8. The Company is in possession of 3,00,000 shares of Sunanda Capital
Services Limited. Pending for transfer of these shares in the name of
the Company, the same is not taken as investments in the books.
9. As required by Accounting Standard - 18 issued by The Institute of
Chartered Accountants of India, Related Party Disclosures are as
A. Subsidiary Company
Maximus Securities Limited
(Formerly known as Mafatlal Securities Limited)
B. Associate Companies
Garron Shares and Stock Brokers Private Limited
Garron Trading Company Private Limited
Hybrid Systems Limited
(formerly known as Mafatlal Systems Limited )
Mafatlal Trustee Company Limited
Sunanda Capital Services Limited
Hybrid Services and Trading Limited
(Formerly known as Sunanda Service and Trading Limited)
Sushmita Engineering & Trading Limited
C. Key Management Personnels
Mr. N R Divate
10. The Company has complied with AS-22 Accounting for taxes on
Income, issued by the Institute of Chartered Accountants of India;
accordingly, the opening deferred tax asset and as well as for the year
has not been accounted on the grounds of prudence.
11. The company has taken Office premises on Operating Lease and Lease
Rent amounting to Rs. 3,00,758/- (Previous Year Rs. 7,92,540/-) was
paid during the year has been debited to Statement of Profit and Loss.
The future minimum lease payment is as under:
12. Comparative financial information (i.e. the amounts and other
disclosures for the previous year presented above as corresponding
figures), is included as an integral part of the current year''s
Financial Statements, and is to be read in relation to the amounts and
other disclosures relating to the current year. Figures of the
previous year have been regrouped / reclassified wherever necessary to
correspond to figures of the current year.
13. The previous year''s figures have been reworked, regrouped,
rearranged and reclassified wherever necessary.