| 1. Redemption of Preference Shares: In terms of the Scheme of
Compromise approved by the Hon'ble Calcutta High Court, the Preference
shares were to be redeemed in three annual installments i.e.
2009-10,2010-11 and 2011 -12 @ Rs. 2.21 Crs. every year. The Companies
Act, 1956, however, provides that the Preference shares can be redeemed
either out of the profit available for distribution of dividend or out
of the fresh proceeds of shares issued for the said purpose. Since the
company did not either have profit available for distribution of
dividend or any fresh proceed ol shares, a legal opinion was obtained
from M/s. Khaitan & Co., Advocates & Solicitors, Kolkata whether the
preference shares could be redeemed by the company. They have opined
that the Preference shares of the company could not be redeemed under
the present circumstances.
2. There is no change in the number of shares at the end of the
reporting period as compared to the same at the beginning of the
reporting period.
3. The Company does not have any holding company or ultimate holding
company.
4. The Preference Shares carry the preferential rights as provided in
the Companies Act, 1956. There is no restriction on distribution of
dividends and repayment of Capital with respect to any shares and the
same would be governed by the provisions of the Companies Act,1956.
5. No Shares have been reserved for issue under options and contracts
/commitments for the sale of shares / disinvestments.
6. No shares have been allotted as fully paid up pursuant to contracts
without payment being received in cash.
7. No bonus shares have been issued and no shares have been bought
back.
8. No convertible securities are outstanding at the end of the
reporting period nor any calls are unpaid.
9. The Non-Convertible Debentures (NCDs) have been secured by creating
mortgage on land at Chimur, district Chandrapur, Maharastra in favour
of Debenture Trustees namely IDBI Trusteeship Services Ltd., Mumbai
besides mortgage on all other immovable properties.
10. The NCDs were transferred in favour of ACRE pursuant to an MOU,
with a provision of buy back of NCDs, by Vivid Colors Pvt. Ltd. on
clearing the dues of Rs.15.65 Crores by KCL to ACRE Ltd. The
transaction; would be concluded as per the MOU dated 28th June, 2013.
11. As per Scheme of Compromise, approved by the Hon'ble Calcutta High
Court no interest is payable on the Non-Convertible Debentures.
12. As per the Scheme sanctioned by BIFR, the unsecured loans of Rs,200
lacs [Rs.100 lacs at 3.1 (c )(1) and Rs.100 lacs included in 3.1 (c
)(2)] are convertible into equity sharl^at par with a lock-in period of
3 years from the date of allotment.
13. Loans from Banks (Si.No.(i)(a) include the loans of Rs.33.96 Lacs
(Prev.Yr.Rs.31.95 Lacs) against Fixed Deposits and overdraft of
Rs.39.78 Lacs (Prev. Yr. Rs.0.00 Lacs).
14. Method of valuation of inventory
Inventory has been valued as under
a) Raw Materials & Work in Progress - At weighted average cost or net
realisable value, whichever is lower.
b) Finished Goods - At lower of the cost or realisable market value.
c) Stores & Spares - At average cost.
15. The Excise Duty amounts related to the closing and opening stock of
Finished Goods amounting respectively to Rs. 21.28 lacs and Rs. 15.58
lacs have been included in the respective value of stocks in Silo, at
depots and in transit and recognized separately under Note 14 forming
part of the Profit & Loss Statement in terms of the provisions of the
Ac wanting Standard (AS)-9.
16. The Excise Duty amounts related to the closing and opening stock of
Finished Goods amounting respectively to Rs. 21.28 lacs and Rs. 15.58
lacs have been included in the respective value of stocks in Silo, at
depots and in transit and recognized separately in the Profit & Loss
Statement in terms of the provisions of the Accounting Standard (AS)-9.
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