| 1 Pursuant to the Companies Act 2013, the Company has revised the
depreciation rates w.e.f. April 1, 2014, based on the maximum useful
life of its various Fixed Assets as prescribed in Part-C of Schedule
-II to the Companies Act, 2013. The Company has reworked the estimated
useful life of the fixed assets during the current financial year and
accordingly in case of fixed assets whose useful life has already been
completed as on April 1, 2014, the carrying value (net of residual
value) of those Fixed Assets amounting to Rs. 5,934.66 lacs have been
debited to the opening balance of General Reserve Account.
2 Extra Ordinary item amounting to Rs. 3,552.17 Lacs debited to profit
and loss account during the financial year 2014-15 is on account of
provisions made for permanent diminution in value of Investments in its
subsidiary and Loans & Advances made to its partnership firm.
3 The Company's financial facilities/arrangements including Term
Loans, Working Capital Facilities and Non Fund Based Credit Facilities
have expired and the accounts with the Banks have turned into Non
Performing Assets since more than 2 years. The Banks have initiated
legal proceedings for the recovery from the Company u/s. 19 of the Debt
Recovery Tribunal (DRT) and u/s. 13(2) of the Securitization &
Reconstruction of Financial Assets & Enforcement of Security (Second)
Interest (SARFAESI) Act, 2002. Some of the creditors filed cases
against the Company and its Directors for recovey of their dues,
including petitions for winding up of the Company, in the High Court of
Mumbai. The management has taken and been taking all diligent steps
under legal advice, to defend the Company in all the litigation. Since
the matters are sub-judice, the exact liability of the Company can't be
ascertained at this point of time.
4 The Company on the basis of registration filed u/s. 15(1) of the
Sick Industrial Companies (Special Provisions) Act, 1985, before the
Hon'ble Board for Industrial & Financial Reconstruction, and the
hearings for which are in process for determination of sickness and on
the basis of ongoing negotiations with the lenders for reduction in
interest, rephasement in terms of borrowings etc., has not provided for
interest to the tune of Rs. 8,758.47 Lacs (calculated based on last
sanction letters in hand) on financial facilities, for the year ending
March 31, 2015.
Note 5:- Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Note 6:- The Company does not have a Company Secretary as required
under the provision of Section 203 of the Companies Act, 2013. The
Company is in the process of appointing a whole time Company Secretary
as required by the provision of Section 203 of the Companies Act, 2013.
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