| 1. Rights of Equity Share Holders : The company has only one class of
equity shares having face value of Rs 10 per share. Each holder of
equity shares is entitled to one vote per share. Equity shareholders
are also entitled to dividend as and when proposed by the Board of
Directors and approved by share holders in Annual 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
distribution of all preferential amounts which shall be in proportion
to the number of shares held by the shareholders.
2. Term Loan
a) Term Loan from bank are secured against primary charge of
Mould/Equipments purchase out of term loan finance and secured by way
of collateral security by registered mortgage of land and building at
Arav village(Khopoli), Pukkathurai village(Chengalput) and
hypothecation residual value of plant & machineries of the company.
3. Term Loan from NBFC are secured against immovable properties of
Director and personal gurantee of Director.
4. Vehicle loan secured by hypothecation of respective vehicle.
5. Working capital loan from bank are secured against hypothecation of
raw material, finished goods, WIP, consumables stores at factories of
the Company at Arav, Pukkathurai & Hubli and receivable books debts and
further secured by collateral security by registered mortgage of the
factory land & building at Arav, Pukkathurai and hypothecation of fixed
assets of the Company including machinery installation in the Company
factories at Arav, Pukkathurai & Hubli and furnitures & fixtures.
6. The company has not received the required information from the
vendors regarding their status under the Micro, Small and Medium
Enterprises development Act, 2006. Hence disclosures , if any relating
to amounts unpaid as at the year end together with interest
paid/payable as required under the said act have not been made.
Defined Benefit Plan
The company provides gratuity benefit to it's employees which is a
defined benefit plan. The present value of obligation is determined
based on actuarial valuation using the Projected Unit Credit Method,
which recognizes each period of service as giving rise to additional
unit of employee benefit entitlement and measures each unit separately
to build up the final obligation. The obligation for Compensated
Absences is recognized in the same manner as gratuity.
7. Segment Reporting
From the current year, the Company has identified two reportable
segments viz. Plastic Products and Trading in various products. Segment
have been identified and reported taking in to account nature of
products and the differing risks and returns.. The Accounting policies
are adopted for segment are in line with the accounting policy of the
company with following additional policies for segment reporting.
a) Revenue and expenses have been identified to a segment on the basis
of relationship to operating activities of the segment.
b) Segment assets and segment liabilities represent assets and
liabilities in respectiv segments.
8. Deferred tax Asset consist mainly of carried forward loss, and
depreciation. As a matter of prudence,the Company has not recognised
Deferred Tax Asset in accounts.
(i) List of related parties where control exists and related parties
with whom transactions have taken place and relationships:
SNo. Name of the Related Party Relationship
1 Ambani Sales Organisation Enterprises over which Key Managerial
Personnel are able to
exercise significant influence
2 Mukesh B. Ambani Key Managerial Personnel
3 Pratik M. Ambani Relative of Key Managerial Personnel
9. The previous year figures have been regrouped / reclassified,
wherever necessary to conform to the current year presentation.
10. In current fiscal year, company was faced with the liquidity issues
due to limited working capital. Company could not ensure the steady
supply of raw materials due to limited working capital which resulted
into lower operations and the losses during the year. The networth of
the Company as at 31 st March, 2015 has been eroded. Company has
managed to raise additional loans from financial institutions which
have improved the operations, in the latter part of the year.
Company continues to explore various options to raise additional
finance and is exploring various options to dispose of surplus
immovable properties, concentration of operations at few plants to
improve operating efficiency in order to meet its short term and long
term obligations. Although there exist material uncertainty in
accomplishing these options, these financial statements have been
prepared on a going concern basis.
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