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Nitin Fire Protection Industries

BSE: 532854|NSE: NITINFIRE|ISIN: INE489H01020|SECTOR: Miscellaneous
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Notes to Accounts Year End : Mar '16

1. Terms/rights attached to equity shares

Each holder of equity shares is entitled to one vote per equity share. They are entitled to receive dividend proposed by the Board of Directors and approved by shareholders in General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Pursuant to the approval of the members of the Company at the Extraordinary General Meeting held on November 3, 2014 for issue of bonus shares in accordance with provisions of Section 63 and other applicable provisions of the Act, the Company has issued bonus shares in the proportion of one bonus share of Rs, 2 each for every three fully paid up equity shares of Rs, 2 each on the aforesaid date.

3. Pursuant to a special resolution pased by the members of the Company at the 20th Annual General Meeting (AGM) held on September 21, 2015, the authorized capital of the Company has been increased from Rs, 650,000,000 divided into 325,000,000 equity shares of Rs, 2 each to Rs, 750,000,000 divided into 375,000,000 equity shares of Rs, 2 each.

4. Pursuant to resolution passed by the members in the Annual General Meeting held on September 30, 2014 , dividend of Rs, 43,841,222 and dividend distribution tax thereon of Rs, 7,450,816 which was provided in the year ended March 31, 2014 has been reversed in the previous year ended March 31, 2015.

5. IFCI Limited

6. The term loan outstanding as at March 31, 2016 of Rs,181,562,500 (P.Y. Rs, 207,500,000) is secured by exclusive first charge on the commercial property owned by the promoters, situated at Ghatkopar - Mumbai and industrial land at village Khalapur, district - Raigarh, exclusive pledge of 9,573,527 (P.Y.13,733,334) equity shares of the Company, owned by the promoters, so as to give security cover of 1.5 times of the loan amount and personal guarantee of Nitin M Shah and Rahul N Shah.

7. The aforesaid loan is repayable in 8 quarterly installments of Rs,25,937,500 each at the end of 15th,18th, 21st, 24th, 27th, 30th, 33rd and 36th month, starting from November 03, 2014 and rate of interest ranges from 14% per annum to 14.50% per annum.

8. Aditya Birla Finance Limited

9. The term loan outstanding as at March 31, 2016 of Rs,48,365,449 (P.Y. Rs, 53,000,000) is secured by exclusive charge on office no. 801, 8th floor, Wing C, Neelkanth Business Park, Kirol Road, Vidyavihar West, Mumbai 400086.

10. The aforesaid loan is repayable in 84 monthly installments of Rs, 945,545 each starting from April 05, 2015 and carries rate of interest of 12.35% per annum.

11. IFCI Limited

11. The term loan outstanding as at March 31, 2016 of Rs,400,000,000 (P.Y. Rs, Nil) is secured by exclusive charge on the immovable property owned by Nitin M. Shah (HUF) situated at 7001, 70th floor, World One Tower, Lower Parel, Mumbai 400 013, exclusive charge on an immovable property owned by the promoters such that the combined distress value of both the properties shall provide a cover of one time of the loan outstanding , pledge of 14,590,803 (P.Y.Nil) equity shares of the Company owned by the promoters, so as to give security cover of 1.25 times of the loan amount and personal guarantee of Nitin M Shah and Rahul N Shah.

12. The aforesaid loan is for a period of five years including moratorium period of two years. Repayment will be in 36 equal monthly installments beginning from 25th month and continuing till 60th month and rate of interest ranges from 14% to 14.50% per annum.

13. PNB Housing Finance Limited

14. The term loan outstanding as at March 31, 2016 of Rs,54,275,537 (P.Y.Rs, Nil) taken from a financial institution is co-borrowed along with Nitin M. Shah and Rahul N. Shah, promoters of the Company which is secured by mortgage of property owned by the Company and situated at C-802, Neelkanth Business Park, Kirol Road, Vidyavihar -W, Mumbai 400 086.

15. Loan is repayable in 180 equal monthly installments of Rs, 662,493 each commencing from July 10, 2015 and carries an interest rate of 12.00% per annum.

16. Vehicle loan taken from a bank and outstanding as at March 31, 2016 of Rs,Nil (P.Y.Rs, 111,656) is secured by the hypothecation of the underlying asset.

17. The aforesaid loan is re-payable in 36 monthly installments of Rs, 56,580 each and carries rate of interest of 10.14% per annum. The charge has been satisfied.

18. The above borrowings are availed through a consortium agreement with bankers namely IDBI Bank Limited (Lead bank), Bank of Baroda, Dena Bank and Axis Bank Limited.

19. Security

First pari passu charge by way of hypothecation or indenture of mortgage and /or pledge of borrowers current assets,namely, stock of raw materials, semi finished and finished goods, stores and spares not relating to plant and machinery (consumable stores and spares), bills receivable and book debts and all movable current assets , both present and future.

First pari passu charge on immovable and movable assets of the Company both present and future including its location at (i)factory at A-117,TTC Industrial area, Pawana Village, Navi Mumbai-400 705 (ii) office premises at 501/502 Delta Technology Street, Hiranandani Gardens, Powai, Mumbai - 400 076 and

(iii)immovable properties of Eurotech Cylinders Private Limited, situated at EL-29, TTC Industrial Area, Mahape, Navi Mumbai 400 701 (only for IDBI Bank Limited).

Personal guarantees of Nitin M. Shah and Rahul N. Shah.

20. Credit facilities availed

Working capital loan and other non-fund based facilities.

21. Rate of interest ranges from 11.65% to 14.5% per annum.

22. IDBI Bank Limited:

23. Primary security: First pari passu charge on immovable properties of Eurotech Cylinders Private Limited at EL-29, TTC, Navi Mumbai 400 705.

Collateral security: Second pari passu charge on (i) entire current assets and movable assets of the Company both present and future (ii) 501/502 Delta, Technology Street, Hiranandani Gardens, Powai, Mumbai 400076 and its factory at A-117, TTC Industrial Area, Pawana Village, Navi Mumbai 400 705. Pledge of promoters shares held in the Company to the extent of 100% of the exposure.

Personal guarantees of the Nitn M. Shah and Rahul N. Shah.

24. Credit facilities availed: Standby letter of credit.

25. Axis Bank Limited:

26. Primary security: Negative lien on receivables of Nitin Ventures FZE and New Age Company LLC .

27. Collateral security: Pledge of the Company’s shares having aggregate market value of atleast 75% of the facility amount.

Pari passu second charge on fixed assets of the Companys (i) factory at A-117,TTC Industrial area, Pawana Village, Navi Mumbai-400 705 (ii) office premises at 501/502 Delta Technology Street, Hiranandani Gardens, Powai, Mumbai - 400 076 and (iii) on the entire current assets of the Company both present and future.

PDC’s for the facility amount of Nitin Ventures FZE and New Age Company LLC to the Dubai branch of the bank.

Personal guarantees of Nitn M. Shah and Rahul N. Shah.

28. Credit facilities availed

Stand by letter of credit.

29. Details of default: The Company has defaulted in the repayment of its loans to banks from February 2016 onwards. An amount of Rs,238,826,241 (P.Y. Rs, Nil) on account of principal and Rs,10,740,795 (P.Y. Rs, Nil) on account of Interest aggregating to Rs,249,567,036 (P.Y. Rs, Nil) are overdue as at March 31, 2016. Subsequent to the date of the Balance Sheet, the Company has paid Rs, 238,826,241 on account of principal and Rs, 8,140,465 on account of interest aggregating to Rs, 246,966,706.

(* There are no unpaid dividends which are required to be transferred to Investor Education and Protection Fund)

30. In view of book profits being in excess of taxable profits for the year ended March 31, 2016, as per computation of income, the provision for tax has been made as per MAT under section 115JB of the Income Tax Act, 1961. The Company is entitled to avail credit under section 115JAA (1A) which will be availed as and when due.

31. Sales include manufacturing sales of Rs, 5,695,875 (P.Y. Rs, 5,845,658) and materials and components consumed includes raw materials consumed for manufacturing activates amounting to Rs, 4,770,295 (P.Y.Rs, 4,987,741).

32. Relating to the exposure of Rs, 457,844,451 in Equity Shares of Worthington Nitin Cylinders Private Limited (WNCPL) as at March 31, 2016:The Company’s management had carried out the valuation of fixed assets of WNCPL from an independent value to substantiate the recoverability of the investment as at March 31, 2016. However, in the absence of the fair value of the investment as required under Accounting Standard 13 ‘Accounting for Investments’ and audited financial statements for the years ended March 31, 2014, March 31, 2015 and March 31, 2016, the Management is unable to comment on the impairment, if any, on the carrying amount of the investment.

33. Previous year:

Current year’s figures are stated in bold prints and previous year’s figures are regrouped/restated wherever considered necessary.

Source : Dion Global Solutions Limited
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