a) Terms and Rights attached to Equity Shareholders:
The Company has only one class of equity shares having a face value of
Rs. 1/- per share. Each holder of equity shares is entitled to one vote
per equity share. A member shall not have any right to vote whilst any
call or other sum shall be due and payable to the Company in respect of
any of the shares of such member. All equity shares of the Company rank
pari passu in all respects including the right to dividend. The
dividend is recommended by the Board of Directors and declared by the
members at the ensuing Annual General Meeting. The Board of Directors
have a right to deduct from the dividend payable to any member any sum
due from him to the Company.
In the event of winding-up, subject to the rights of holders of shares
issued upon special terms and conditions, the holders of equity shares
shall be entitled to receive remaining assets, if any, in proportion to
the number of shares held at the time of commencement of winding-up.
The Shareholders have all other rights as available to Equity
Shareholders as per the provisions of the companies Act, 1956, read
together with the Memorandum of Association and Articles of Association
of the Company, as applicable.
b) The Company does not have any holding company or ultimate holding
company. Promoter shareholding in the Company including persons acting
in concert with the promoters as on March 31, 2012 is 44,428,998 equity
shares i.e. 61.82 % of the equity share capital of the
Company.Previous Year March 31, 2011 is 44,416,194 equity shares ie.
* Secured by mortgage of related immovable and movable assets of the
company as well as personal gaurantee of three Directors, carrying
floating rate of interest 4.25% above base rate repayable by June,
Secured by subservient charge over current and movable fixed assets
of the company and personal gaurantee of three Directors carrying
floating rate of interest of 3% above base rate repayable by March,
## Secured by pledge of equity shares of the company and personal
guarantee of the promoter carrying interest rate of 13.75% repayable by
** Carrying interest ranging from 8.33% to 18% and to be repaid during
the period from January, 2014 to February, 2015.
@ Carrying interest ranging from 9.46% to 16% and to be repaid during
the period from December, 2012 to July, 2016. *** Repayment shall
commence from the financial year 2015-16 upto 2024-25.
** Secured by charge over entire stock of raw material,
stock-in-process, finished goods, stores & spares, goods-in- transit,
receivables and other current asset of tire company on pari passu basis
with other WC lender and personal gaurantee of three Directore carrying
inteeest rate of 3.75% above base rate.
# Secured by first pari-passu charge on all the current assets of the
company along with working oapital lendor and personal gaurantee of
three Directors carrying inteeesf rate of 3% above base eate.
## Of these, Loan of Rs.174,953,898/- (P.Y. Rs. 50,000,000/-) is taken by
pledge of promoters shares.
Bank Guarantee given Rs. 100,000/- (P.Y.Rs. 100,000/-)
In the opinion of the management, current assets, loans, advances and
deposits are approximately of the value stated, if realized in the
ordinary course of business. The provision of all known liabilities is
adequate and not in excess of the amount reasonably necessary.
Balances of certain trade receivables, trade payables and loans and
advances are subject to confirmations / reconciliation and
consequential adjustments, if any. The management does not expect any
material difference affecting the current year''s financial statements
on such reconciliation / adjustments.
Disclosure under MSMED Act, 2006:
The Company has not received any information from the suppliers
regarding their status under the Micro Small and Medium Enterprises
Development Act, 2006 and hence disclosures, if any, relating to the
amounts as at year end together with interest paid / payable as
required under the said act have not been given.
Amortization of Brand:
The management has decided to revise the estimated period for
amortization of balance value of Brand in next five years in view of
modification of paper mills at Nagpur. Had the Company followed its
earlier accounting policy, it would have amortised Rs.. 40,111,910/- out
of which Rs.. 29,172,298/- pertains to current year. Due to such
revision, amortization is short accounted by Rs.. 29,172,298/- resulting
into increase in profit by Rs.. 29,172,298/- and value of Brand by Rs..
Primary Segment (Business):
The Company operates in single business segment of manufacture and sale
of exercise note books and paper. Hence further disclosure required as
per Accounting Standard AS-17 Segment Reporting is not given.
After the close of the year on 31.03.2012,an Extra Ordinary General
Meeting (EGM) was held on 01.04.2012 to approve the issue of bonus
shares in the ratio of 2:1. As per the resolution, such bonus shares
shall rank parri passu in all respectswith and carry the same rights as
the existing fully paid up equity shares of the company and shall be
entitled to participate fullyin any dividend(s) to be declared after
the bonus shares are so allotted.
Previous year figures have been re-grouped/re-classified wherever
considered necessary to compare with current year figures.