Security Details for the aforesaid Long Term Loans
Term Loan outstanding balance of Rs. 234.92 lacs with KVB secured by
exclusive 1st charge over the entire. Fixed Assets of the company
excluding the assets financed by the other NBFC''s
Hire Purchase outstanding of Rs, 131.51 lacs with indo Wind Energy Ltd
secured by exclusive charge over four number of wind mills HP
outstanding of Rs. 57.53 lacs with Indonet Global Ltd, secured by
exclusive charge over number of wind mill HP outsanding of Rs. 23.73
lacs with Loyal Credit Investments Ltd, secured by exclusive charge
over the specific items of machinery. Terms of repayment :
1. All Term Loans with KVB except Corporate Loan to the tune of Rs.
200 lacs, is due for repayment before 31-03-2013
2. With regard, Corporate Loan, repayable in 60 monthly instalment
starting from August 2012 onward;.
3. In respect of the Term Loan originally availed from ICICI for
purchase of wind mills, the said loan has been transferred to M/s Kotak
Mahindra Bank Limited with out the company''s consent. M/s Kotak
Mahindra Bank has already filed petition before the Hon''ble High court
vide C.P 51/2005 and as per the directions of the court the company has
paid Rs. 25 lacs as initial payment in 2008 and after that paid Rs. 2
lacs per month as monthly installments without interest. During the
financial year under audit, the company has paid Rs. 6 lacs to M/s
Kotak Mahindra Bank Ltd, as dues. The Scheme has been agreed to in
principle by M/s. Kotak Mahindra Bank and accepts the dues. Hence no
provision has been made towards interest.
4. EXPENDITURE IN FOREIGN CURRENCY Nil
5. EARNINGS IN FOREIGN EXCHANGE Nil
6. The balances appearing in the Books of Accounts relating to
Debtors, Creditors, Loans and Advances are subject to confirmation and
reconciliation wherever necessary. Letters have been sent to the
parties soliciting confirmation.
7. Other Income of Rs. 93.73 lacs is the conversion charges received
in unit A working on job work basis on a production of yarn
commercially valued at Rs. 416.54 lacs
8. Disclosure in respect of MSME Sector.
The company does not hold any payment due to the MSME sector. Further
information regarding MSME registration has not been provided by the
suppliers. However, based on the information available from the company
the amount due to MSME creditors for the year towards
9. Income Tax Assessments have been completed up to the assessment
year 2009-2010 and wealth tax assessments have been completed up to the
Assessment year 1997-98.
10. Segment Reporting:
As per AS 17 recommended by the Institute of Chartered Accountants of
India The Company operates in a single primary business segment namely
manufacture of cotton yarn. Hence no separate disclosure is required
11. The Share Transfer works is presently being done at M/s
S.K.D.C.Consultants Ltd, Coimbatore. The Company has opted for
dematerialization of shares with the stock exchanges and become a
member of NSDL and CSDL.
12. As per provisions of Accounting Standard 18 - Related Parties
Transactions issued by the Institute of Chartered Accountants of
India, the details of Related Party Transaction based on disclosure
certificate issued by the Directors is given below:
13. The Liability in respect of assets acquired on Hire Purchase was
shown at values equivalent to the principal outstanding.
14. Taxation : In view of the loss for the current financial year, no
provision for Income Tax has been provided.
15. Deferred Tax Liability - AS 22
The company has provided a sum of Rs. 19.43 lacs, towards Deferred Tax
Asset during the current financial year in view of timing differences
in depreciation charged as per Income Tax and Company''s Act provisions.
16. The Revised Schedule VI has become effective from 1.4.2011 for
preparation of financial statements. This has significantly imparted
the disclosure and presentations in the financial statements. Previous
Year''s figures have been regrouped/ reclassified wherever necessary to
correspond with the current year classification/disclosure.