With reference to Secured Term Loans and the amount of Current Maturities of such Secured Loans.
1. Term Loan of Rs 834127241 (Prev. Year Rs 804788483) from OBC, Rs 185105974 (Prev. Year Rs 180611575) from Allahabad Bank, Rs 97382830 (Prev. Year Rs.88644253 ) from Corporation Bank, Rs 122637954 (Prev. Year 122873205) from State Bank of India are secured by way of Ist Pari Passu charge on the Fixed Assets of the Company and 2nd charge on the Current Assets of the Company. Further these Loans are Secured by way of equitable mortgage of Factory Land and Building of the company situated at VPO Jugiana, G.T. Road , Ludhiana and at Village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana. However Corporate Loan & FITL pertaining to Oriental bank of commerce Corporate Loan have exclusive charge on Residential Land & Building in the name of Mr. Sandeep Jindal Msg 8061 sq yard situated at golf link ludhiana.
2. Term Loan of Rs-26310601 (Prev. Year. Rs. 25595440) From Punjab and Sind Bank is secured by way of exclusive charge on Windmill purchased out of the Term Loan.
3. Term Loan of Rs 35257604 (Prev. Year Rs.32173679) from Central Bank Of India is secured by way of equitable mortgage of Land in the name of the Company situated at village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana
4. The slowing industrial activity and depressed market conditions had seriously affected the operations of the company. The Company made request to Corporate Debt Restructuring Cell through Oriental Bank of Commerce (Lead Bank) to restructure the credit facilities. The Empowered Group of CDR-Cell has approved the restructuring package in CDR-Cell meetings held on 24/12/2013 vide order no. 857/2013-14 Dt. 27/12/2013.
e. Loans of Rs 734856(Prev. Year Rs. 7325553 ) are secured by way of hypothecation of respective vehicles.
5. Term borrowing from The Catholic Syrian Bank Limited of Rs. 226306560 ( Pre. Year 196788313) has transfer to Phoenix ARC Ltd due to non servicing of Interest. The above said term loan is secured by equitable mortgage of commercial plot in name of M/s Jindal Cycles Pvt. ltd. and Personal Guarantee of Promoter Directors.
6. The company has received/accepted the deposits from General Public in shape of FDR for different time frames for maturity. Due to financial constraints, the company has not able to repay the deposits within the schedule time period. The Company applied to the Company Law Board for deferment of repayment of deposits vide its order no. C.P. NO. 25/5/2013-CLB Dt. 23.12.2013 and has deferred the repayments of deposits by one year . The repayment of Deposits are paid accordingly with the company law board order from March. 2015. In case of genuine hardship the company will also repay Rs. 5 lacs quarterly basis.
All Secured Loans except car loans have also been guaranteed by following directors of the Company.
7. Sh. Sandeep Jindal
8. Sh. Yash Paul Jindal
9. Sh. Rajinder jindal
10. Sh. Ramesh Jindal
11. Maturity profile and repayment schedule of principal/interest on secured loan is not possible to determine by the company as accounts with banks slipped into sub standard category after restructuring , Hence banks has recalled the entire outstanding and started recovery action under SARFESI Act.
# With reference to loans and advances from related parties
All the Loans are repayable after 12 months from the date of squaring up bank dues. However the company reserve the right to prepay it.(Prev. yr. also all the Loans are repayable after 12 months from the date of squaring up bank dues. However the company reserve the right to prepay it.
Amt of default in repayment of Principal Nil(Prev. Year NIL),Amt. of default in repayment of interest NIL(Prev. Year NIL)
12. Short Term Borrowings of Rs 523771172/- (Prev. Year Rs. 511827726/-) are Secured by way of 1st charge on Current Assets (Stock & Book debts) of the Company and 2nd charge on the fixed assets of the Company. Further these Limits are secured by way of equitable mortgage of Factory Land and Building of the company situated at VPO Jugiana, G.T. Road , Ludhiana and at Village Mandiala Kalan, Tehsil Khanna, Distt. Ludhiana and Personal guarantees of the following promoter directors:-
13. The Company has not received any communication from all of its suppliers/ service providers in response to letters issued by the Company, confirming whether or not they are registered under the Micro, Small and Medium Enterprises Development Act, 2006. In the absence of any positive confirmation from the suppliers/ service providers, the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined. ___
- In case of raw material at actual cost determined on FIFO basis plus direct expenses.
- In case of Stores and spares at weighted average cost.
- in case of Work in process at raw material cost plus conversation cost depending upon stage of completion.
- in case of finished goods at raw material cost plus conversion cost and appropriate proportion of overheads incurred to bring the goods to there present location and condition plus excise duty wherever applicable.
NOTE NO. 14
Disclosure related to Fixed Assets
Pursuant to the enactment of the Companies Act,2013 the company has applied the estimated useful lives as in Schedule II .Depreciation on Part of the assets was charged on WDV up to FY 2013-14 and now from FY 14-15 onwards, Depreciation is calculated with straight line method with effect from the capitalization date.
15. Notes:
16. Management has identified two reportable business segments, namely:
Textile: - Production of Acrylic Yarn, Polyester Yarn, Poly/cotton Blended Yarn, Cotton Yarn and other Blended Yarns.
- Energy Generation: - Generation of Energy from Wind Mill.
Segments have been identified and reported taking into account the nature of products.
17. The segment in the geographical segments considered for the disclosure are as follows:
- India: comprising of sales to customers located within India and earnings in India
- Outside India : comprising of sales to customers located outside India.
18. Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.
NOTE NO. 19
In the opinion of the Board, current assets, loans and advances have a value in the ordinary course of business at least equal to that stated in the balance sheet and adequate provisions have been made for all known liabilities and depreciation in the books of accounts.
NOTE NO. 20
All figures have been rounded off to nearest rupees.
NOTE NO. 21
Debit or Credit Balance on what so ever accounts are subject to confirmation from parties.
NOTE NO. 22. Pending Legal Cases
23. The suppliers has filed the cases against the company at various levels of Distt. & Session Courts. Total amount of exposure involved in the petitions filed in the court amounts to Rs. 1156.83 lacs .
24. The company has filled the cases in Distt. & Session Court against the debtors namely Kaur Sain Mittal Synthetics Ltd for amount of Rs. 144.50 Lacs
25. There are various suits filed against the company u/s 138.
26. One of the creditor being ‘Vinod cotton corporation’ has even filed petition application for winding up of the company.
NOTE NO. 27
The Institute of Chartered Accountants of India has issued an Accounting Standard - 28 on Impairment of Assets, which is mandatory for the accounting periods commencing on or after 1st April, 2004. In accordance with the said standards, the company has assessed as on date of applicability of the aforesaid standard and as well as on balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.
NOTE NO. 28
INVESTMENTS
The Investments are stated at cost. Diminution in value of investments on account of market fluctuations which are of permanent nature are provided for. Temporary diminution in the value of investments has also been provided for.
The Company has accumulated losses of Rs. 227.64 Crores which has eroded its peak level net worth by more than 50% and as such has become potentially sick company. Based on the detailed evaluation of the current situation, plans formulated management is confident of raising adequate finance and rescheduling its debt. Therefore, the management is of the view that the company will realize its assets and discharge the liabilities in the normal course of business. Taking into account the above facts, the financial statements have been prepared on the basis that the company is a going concern.
NOTE NO. 29
The company has outstanding deposits received/accepted from General Public in shape of FDR for different time frames for maturity. Due to financial constraints, the company was not able to repay the deposits within the scheduled time period. The Company applied to the Company Law Board for the deferment of repayments of deposits. The Company Law Board vide its Order No. C.P. NO 25/2013-CLB Dated 23/12/2013 has deferred the repayments of deposits by one year. The repayment of Deposits started from March, 2015. In case of genuine hardship, the company has been repaying Rs. 5 Lacs on quarterly basis as per the hardship committee meeting.
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