| 1 Term loans (secured) from the Financial Institutions and Indian
Banks are secured by an equitable mortgage on all the immovable
properties at Mohali & Vadodara and hypothecation of the movable assets
of the company, present and future, save and except prior charges on
specified movables in favour of the bankers for working capital
requirements.
2 Working Capital term loans from Indian Banks and working capital
facilities from foreign banks are secured by first charge by way of
hypothecation of raw materials, goods-in-process, finished goods,
stores and spares, book debts and receivables of the Company, present
and future and second charge on the immovable properties at Mohali and
Vadodara.
3 In terms of the BIFR sanctioned scheme, outstanding principal amount
of the working capital facilities from banks (other than banks covered
under OTS as per sanctioned scheme) as on 31st March, 2007 have been
converted into working capital term loans. These will additionaly be
covered by a pari-pasu charge on the fixed assets along with the term
lenders, after completion of documentation in this regard.
4 Principal amount of working capital from banks covered under OTS
have been shown under working capital facilities. As mentioned in the
sanctioned scheme [Refer note no. 27(A) (c)] foreign banks are to be
paid by way of one time settelment (OTS)
5. CONTINGENT LIABILITIES & COMMITMENTS Rs. in Lacs
Sr. Particulars As at As at
No. 31.03.2015 31.03.2014
1. Contigent Liabilities
a) Claims against the company
not acknowledged as debts 2,573.30 5,905.90
2. Capital Commitments
Estimated amount of contracts
remaining to be executed on - -
capital account and not provided for
Claims against the company not acknowledged as debt s includes the
payment demanded by Income Tax, Central Excise, Labour Law, PF and ESI
Authorities, Punjab State Electricity Board, amounts to workers where
appeals are pending before the respective authorities or courts for
disposal.
6. The Board for Industrial and Financial Reconstruction (BIFR)
declared the company as a sick company vide its order dated 12th
December, 2005 under the Sick Industrial Companies (Special Provisions)
Act, 1985 (SICA). BIFR passed an order under section 17(3) of SICA &
sanctioned a rehabilitation scheme vide its order dated 12th March,
2007 with the cut off date fixed as 31st March, 2007, which was further
amended vide order dated 25th May, 2007. The scheme came into effect
from the date of issue of the sanctioned scheme and its provisions are
binding on all concerned. Relevant extracts from the sanctioned scheme
are given below:-
A. REHABILITATION SCHEME
(A) CONTOURS
Sr. Parameter Particulars
No.
1. Cut off date 31 -March-2007
2. Waivers (upto cut off date) Waiver of past interest /CI/LD/
penal interest, etc.
3. Shifting of Plant & The entire plant at Mohali
Machinery unit will be shifted to Vadodara
as new line-III for the of
Mohali plant to Vadodara
manufacture of 21" True Flat
Tubes. The land & building at
the Mohali unit will be sold
at an expected price of Rs. 11,900
lakhs. Workers at the Mohali
plant will be given employment
at the Vadodara plant and in the
event of any worker not opting
for shifting, he/she would be
paid their legal dues as per
the settlement.
4. Utilisation of sale proceeds Sale of Land & Building at and
of Land & Building utilization of the proceeds
Mohali Unit (expected at Land & Building
at Mohali Unit about Rs.11,900
lakhs) towards payment of
workers' dues (about Rs. 1,000
lakhs), payment of foreign
banks towards settlement of
their liabilities (Rs. 3,000
lakhs) and payment of balance
amount of Rs.7,900 lakhs to
lenders in the ratio of
outstanding dues for FIs &
core irregularities for the
banks. In case the realization
from sale of Land & Building
at Mohali unit falls below
Rs. 11,900 lakhs, then the
promoters will meet the
shortfall. In case proceeds
are more than Rs. 11,900 lakhs,
the appropriation shall be as
under
i) Upto Rs.3,000 lakhs -
Increase to be paid to secured
lenders after paying
crystallized workers dues.
ii) Beyond Rs.3,000 lakhs - To
be utilized by the company for
adding capacities with prior
approval of BIFR.
5. Future Interest Rate Interest @ 6% p.a. for term
loans/working capital term
loans w.e.f 1.10.2008 & there
will be no running cash credit
working capital facility with
banks.
6. Conversion of Principal Term Conversion of 15% of principal
loans / WCTL into Equity outstanding of Term Loans/WCTL
(Rs.5,400 lakhs) into equity
shares of the company after
reduction of existing equity
by 90%.
7. Promoters' contribution Equity : Rs. 2,500 lakh
(Rs. 750 lakhs towards upfront
payment Rs. 1,750 lakhs
towards capital expenditure for
setting up facilities of 14" CPT
and captive power generation),
In addition, the company will
also convert share application
money into equity at par after
write down of existing equity.
8. Sanction of need based Non Fund Based Limit - Need
(L/C / LG limits) based 2007-08 : Rs.5,054 lakhs
additional
9. Security 1. Pledge of entire share
holding of promoters post
restructuring (after equity w/
off, conversion & fresh
induction).
2. Personal Guarantee of
Sh. Arjun Thapar on the entire
Loans of FIs & Banks.
3. Ceding of pari-passu charge
to working capital banks for
their WCTL exposure.
4. Opening of Trust & Retention
Account with lead bank.
10. Capital Reduction To write down existing paid up
equity share capital
(Rs. 3,450 lakhs) by 90%.
11. Workers' dues JCTEL/promoters to settle the
workers past liability at
Rs. 1,000 lakhs (as estimated)
to be paid out of sale proceeds
of Mohali Unit, as per
appropriation proposed in
Item No.4.
b) REPAYMENT SCHEDULE
Sr. Parameter Particulars
No.
1. Repayment of balance In 33 quarterly instalments
principal-Term Loans & commencing from Dec, 2008
working capital term loans to Mar, 2017.
c) ONE TIME SETTLEMENT PROPOSAL FOR FOREIGN BANKS
Sr. Parameter Particulars
No.
1. OTS PROPOSAL One time settlement of dues with foreign
banks towards settlement of their entire
liabilities for Rs. 3,000 lakhs (36.36% of
principal) payable out of the Mohali
sale proceeds.
C. SALE OF MOHALI ASSETS
The scheme envisages sale of land and building and other infrastructure
of the Mohali unit (Punjab) and shifting of the plant and machinery to
Vadodara and utilizing the sale proceeds for meeting the liabilities of
the secured lenders and workers.
D. RELIEFS & CONCESSIONS:
FIs & Banks
* To waive past interest/compound interest/LD/penal damages etc. from
the date of the first default to respective institutions and banks and
to agree to collect the principal outstanding as on the cut-off-date in
instalments as shown in the cash flow statement, starting from December
2008. The default date for this purpose of waiver for all institutions
and banks from which relief is sought is listed in annexure III to the
scheme.
* To agree to levy 6% per annum interest from 1.10.2008 until the dues
are paid and to convert the debentures into Term Loan.
* Conversion of Working Capital limits into WCTL by Bankers.
* Conversion of part principal into equity, as per SEBI
guidelines/pricing formula.
* Reschedule payment of principal so that it is repaid in 33 quarterly
instalments starting from December, 2008.
* Banks to provide need based LC/LG facilities from time to time
assessed at Rs.5,054 Lakh for the year 2007-08.
* Ceding of pari-passu charge in favour of Working Capital Bankers to
secure their WCTL, exposure.
Promoters/Shareholders/JCTEL
* Write down of existing equity by 90%, immediately after sanction of
the Scheme.
* Promoters to convert Share Application Money into equity capital as
per SEBI formula.
* Personal Guarantee of Shri Arjun Thapar, MD to the exposure of FIs &
Banks.
* Promoters to bring in Rs. 25 crores as promoters' contribution in the
shape of equity.
* Pledge of entire Promoter's Shareholding (post rehabilitation) with
FIs and Banks.
* Sale of Mohali land and building and utilization of proceeds thereof
for reduction of debt of institutions/banks and settling workers'
liability.
* To continue to induct nominees of lead bank and lead FIs on the board
of company.
Workers (Mohali Plant)
* The workers shall extend full cooperation for sale of land and
buildings to the company at Mohali and for shifting the plant and
machinery to Vadodara.
* To agree to shift to Vadodara on the terms and conditions as
applicable to the employees at Vadodara in the event of their giving
consent to shift to Vadodara works.
* Those not willing to get shifted, to collect their payments etc. in
arrears in accordance with the law.
* To withdraw the legal cases pending with various courts filed by them
upon receiving the terminal dues.
Government of Punjab
* To consider to grant permission for closure of Black & White Picture
Tube plant and Watch unit as these are nonoperational since 1991; and
* To consider waiver of minimum demand charges, interest etc. from PSEB
during lock out and non-operational periods and refund of security
deposit.
* Government to consider permitting sale and conversion of end use of
land of industrial plots at A-32, Indl. Phase-VIII, Mohali and A-27,
Phase-VII, Mohali.
* The Sales Tax Deptt. of Punjab has not raised any demand whatsoever.
With the sale of land and building of the Mohali unit & shifting of
Plant, the Sales tax liability, if any, shall be deemed to have been
extinguished. As no liability has arisen the assessments pending, if
any, shall be deemed to have been completed.
Government of Gujarat
* Extension of Sales Tax (CST & VAT) concession/exemption expiring in
May, 2006 for a further period of 10 years;
* Exemption of Octroi duty for a period of 10 years;
* Exemption from payment of Electricity Duty for a period of 10 years;
Central Government
* Withdrawal of demand notices for PF contribution on wages/salaries
during the lock out period.
* Waiver of interest, liquidated damages and penal interest on delayed
payments of Provident Fund.
* Exemption from SEBI guidelines for reduction/de-rating of equity;
allotment of equity shares to promoters and associates on a
preferential basis as envisaged in the Scheme.
* Income Tax Department to consider exempting the company from the
provisions of section 115JB & Fringe Benefit Tax and capital gains tax
on sale of Mohali assets under the Income Tax Act during the period of
rehabilitation.
* The Ministry of Commerce, (Director General Foreign Trade) to extend
the Export Obligation (EO) period under EPCG scheme for a further
period of 5 years from the cut off date (31.3.2007).
E. OTHER STIPULATIONS
If the company commits default towards repayment of principal
instalments as per the sanctioned scheme or any combination, FIs /
Banks reserves the right to charge interest on the defaulted amount at
top of the band together with liquidated damages of 2% p.a. thereon
till the date of clearance of default or FIs / Banks shall have the
right to convert its entire overdue into fully paid up equity shares of
JCTEL during the currency of the loans as per SEBI guidelines, or
otherwise but with the permission of Hon'ble BIFR, FIs / Banks also
reserves the right to revoke the package of rehabilitation with the
prior approval of BIFR and in such event of revocation, the decision of
FIs / Banks shall be final and binding on the borrower and/or
guarantors. In case of FIs / Banks exercise the right of revocation,
the financial rehabilitation sanctioned or granted to JCTEL shall be
treated as withdrawn and the terms and the conditions of the original
loan agreements or documents shall come into force as if no such
financial rehabilitation were ever granted to JCTEL. Further, FIs /
Banks shall have the right to adjust payment received under the present
package of financial rehabilitation against outstanding dues in terms
of the original loan agreements/documents.
7 The impact of the scheme approved by the Hon'ble BIFR, on the
accounts of the company for the year under review for which appropriate
effect was required to be given are as follows :-
(a) As per the scheme, interest is to be provided @ 6% p.a. on loans
from banks and FIs w.e.f. October 1, 2008. The company has started
accruing interest @ 6% per annum on Term Loans & Working Capital Term
Loans outstanding from 1st October, 2008.
(b) However, the Hon'ble BIFR vide order dated 12th November, 2008, has
stipulated that FI(s)/banks would neither raise any claim for payment
of interest w.e.f. 1st October, 2008 in respect of installments, as
envisaged in the sanctioned scheme to be read along-with the cash flow
statement, nor would they take coercive action in this regard, until
issuance of further direction(s) by the Board. The due installment's of
the balance principal outstanding has been released to Banks/Financial
Institutions who have communicated their sanctions. Since Bank of
Baroda and Indian Overseas Bank have opted for OTS, they have not been
paid installments towards balance principal outstanding.
Starting from the quarter January to March 2009, the company started
paying the balance principal outstanding of Term loans & Working
Capital Term Loan after adjusting the amount converted to equity shares
and upfront payment already made, on a deferral basis (over a period of
33 quarterly installments), except payment to Vijaya Bank as the said
bank had not sent confirmation to the rehabilitation scheme approved by
the Hon'ble BIFR on 12th March, 2007 till the end of 31st March, 2015.
However, the Company has defaulted in payment of principal amount of
Loans of Rs 10,670.42 (Previous year - Rs 6,977.43 Lacs) to Banks /
Financial Institutions for sixteen quarters starting from 1st April,
2011 to 31st March, 2015. The Company was unable to meet its
obligations towards repayment of quarterly installments due in respect
of term/working capital term loans as per BIFR sanctioned scheme, due
to non availability of working capital limits as envisaged in the
sanctioned scheme and sluggish market conditions during the year.
In the event the company defaults in its obligations towards repayment
of quarterly installments, the banks/ FIs reserve the rights given in
the sanctioned scheme as mentioned in Para E of Note 27.
However the Company approached the IFCI (i.e. The Operating Agency
hereinafter referred as OA) and the lenders whose interest were
affected pursuant to which a meeting of secured lenders was held in the
month of April, 2012 where consent for the proposed Modified Debt
Restructuring Scheme (MDRS) which envisaged sale of certain additional
surplus assets was obtained . The OA, thereafter submitted the MDRS to
the Hon'ble BIFR in the month of October, 2012 which envisages besides
sale of surplus assets such as Plant & Machinery along-with Other
Miscellaneous Assets and Flats, sale/mortgage of vacant land at
Vadodara and also re-schedulement of repayment of secured loan and
interest thereon within the scheme period. The amount collected from
disposal of such surplus assets are to be used to address the dues of
secured lenders as per original sanctioned scheme and dues of workers
as per Memorandum of Settlement. The Hon'ble BIFR, after hearing all
concerned parties vide its interim order dated 29.01.2013, approved the
sale of surplus assets as envisaged in MDRS namely 168 workers flats at
Mohali, idle Plant & Machinery at Mohali which is no longer required to
be relocated to Vadodara and also the surplus land up to 175 acres at
the company's unit at Vadodara through the Asset Sale Committee (ASC)
already constituted and keeping the sale proceeds in a no lien account
( NLA ) with the OA and utilized as decided by BIFR. The matter
regarding re-schedulement of repayment of secured loan within the
scheme period as envisaged in proposed Modified Debt Restructuring
Scheme (MDRS) is under consideration of BIFR as at 31st March, 2015.
During the financial year ended 31st March, 2015 the BIFR bench which
was monitoring the case, referred the matter to a larger bench to be
headed by the Chairman, BIFR.
(c) During the year ended 31st March, 2014, the idle Plant & Machinery
including Electrical Installation, Storage & Water System, Office
Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc and
few workers flats were sold by the ASC and the proceeds were deposited
in the No Lien Account with Operating Agency. The sale of remaining
worker's flats is in progress & will be made as per BIFR Interim Order.
Bids for the sale of surplus land at Vadodara were invited by the Asset
Sale Committee.
During the year ended 31st March, 2015 one conditional bid was received
requesting for waiver of the conditions stipulated in the guidelines
which was rejected by BIFR and no sale could be concluded till 31st
March, 2015. Efforts are on to sell the assets.
(d) In view of the deemed sanction of the Income Tax Department, as per
section 19(2) of SICA, no provision for Minimum Alternate Tax is
required to be made nor is the remission or cessation of interest
liability subject to tax under section 41(1) of The Income Tax Act,
1961 since reliefs/concessions provided in the sanctioned scheme under
section 17(3) have an over riding effect on the provisions of the
Income Tax Act, 1961.
(e) No interest has been provided on the unsecured loans as per the
sanctioned scheme.
(f) The Company had entered into a Memorandum of Settlement with the
worker's unions at Mohali, Punjab crystallizing their dues at Rs 40
Crores as directed by BIFR. The Settlement has been registered before
the concerned authorities and submitted to BIFR and forms part of the
MDRS. Since the crystallized dues were to be settled out of the sale
proceeds of the Mohali assets as per the sanctioned scheme, no
provision for the same was made till last year. However in view of the
objections raised by Statutory Auditors along-with SEBI/Stock Exchanges
and to comply with the SEBI directives provision for the said amount of
Rs. 40 Crores has been made in the current year and has been shown as
exceptional item in the profit and loss statement.
(g) In view of the proposed introduction of GST, extension of Sales Tax
(CST & VAT) concession/exemption for a further period of 10 years has
not been extended & approved by the Gujarat Govt and accordingly VAT is
being paid on goods sold locally and CST on goods sold in an interstate
transaction. Further input tax credit is being claimed on VAT paid.
(h) The Scheme granted exemption of octroi & electricity duty for a
period of 10 years but the same has not been approved by the Gujarat
Government & is being borne by the Company.
8 The impact of the scheme approved by the Hon'ble BIFR, on the
accounts of the company for the previous years for which
appropriate effect was required to be given are as follows
(a) The working capital facilities from the banks (other than banks
covered under OTS as per the sanctioned scheme) have been converted
into working capital term loan as per the sanctioned scheme. Since the
working capital loans of SBI & SBICI, who had earlier opted for OTS,
were assigned to Asset Reconstruction Company (India) Limited (ARCIL)
in the financial year 2009-2010, their loans have also been converted
into WCTL.
(b) Indian Overseas Bank and Bank of Baroda had not been issued equity
equivalent to 15% of principal outstanding as on the cut-off date as
per the BIFR sanctioned scheme in the FY 07-08 as they had opted for
OTS.
(c) Out of total Debentures of Rs 500 Lacs issued under Series I to
Vijaya Bank, 15% of the aforesaid amount of debentures amounting to Rs
75 Lacs has been converted into equity shares in the financial year
2009-2010. The balance amount of Rs.425 lacs have been shown as Term
Loan from the financial year 2009-2010 onwards in terms of Sanctioned
Scheme. The security created in favour of Debenture Trustees through
Trust Deed has not yet been released as at 31st March, 2015.
(d) Similarly, Debentures of Rs 3,000 Lacs issued under Series II &
Series III to IFCI have been shown as Term Loan from the financial year
2009-2010 onwards in terms of Sanctioned Scheme. The security created
in favour of Debenture Trustees through Trust Deed has not yet been
released as on 31st March, 2015.
(e) As per BIFR sanctioned scheme, the share capital of Rs. 7,502.26
lacs was allotted to the promoters/FIs/Banks in the financial year
2007-2008. Further during the year 2009-10, share capital of Rs.34.78
lacs was allotted to ARCIL pursuant to BIFR order, since SBI & SBICI
had assigned their debt to aRcIL.
9 As per BIFR Sanctioned Scheme, the revival of the company is
dependant on sale of land and building at Mohali. As envisaged in
sanctioned scheme, the company's net worth could not turn positive in
the 4th year of its implementation due to delay in sale of land &
building at Mohali. Due to this delay in the sale of the land and
building at Mohali, the company offered some surplus assets for sale
which was agreed in the meeting of the joint lenders and thereafter
BIFR also gave its consent to the sale through the ASC. While some of
these assets have been sold, the sale of surplus land at Vadodara could
not be concluded for reasons explained above. The process for
re-running the sale is on. Management is hopeful that its request for
Modified Debt Restructuring Scheme (MDRS) would be accepted by Hon'ble
BIFR & Company would be able to arrange requisite working capital for
importing critical raw materials to start its production lines. On the
assumption that the revival of the company will take place in near
future, the accounts of the company have been prepared on a "going
concern" basis and on the assumption made by the management that
adequate finances would be available after the sale of surplus assets
to enable the company to operate on a profitable basis. Accordingly,
the company has been treated as a going concern. Further with the
release of Working Capital as envisaged in the Sanctioned Scheme the
company would like to take up assembly of LCD/LED modules which is also
in the same space and having same customer base.
10 (a) In terms of the sanctioned scheme passed by BIFR in 2007 and
interim order of BIFR dated 29.01.2013, the Mohali Assets which includes
Land, Building, Plant & Machinery including Electrical Installation,
Storage & Water System, Office Equipment, Factory Equipment, Furniture &
Fittings, Vehicles and Worker's Flat in its entirety are to be sold on
"As is where is" and "As is what is basis" through the Asset Sale
Committee. The BIFR also permitted sale of surplus land at Vadodara
through the Asset Sale Committee. During the year ended 31st March,
2014, few Worker's Flats, Idle Plant & Machinery including Electrical
Installation, Storage & Water System, Office Equipment, Factory
Equipment, Furniture & Fittings, Vehicles etc were sold by the Asset
Sale Committee and the proceeds were deposited with the Operating
Agency.The carrying value assets as at 31-March, 2015 consist of Lease
hold Land & Building. Being operations at Mohali has been discontinued,
the same are held for sale on 31-March-2015. In view of above, no
provision for impairment of remaining Fixed Assets at Mohali is
required.
(b) The Fixed Assets at Mohali as at 31st March, 2015 consist of Land,
Building and remaining Workers Flats which have been retired from
active use and held for disposal and are shown separately in Note No.
10.1 i.e. Schedule of fixed assets pertaining to discontinued
operations in financial statements.
(c) During the financial year ended 31st March, 2015, Company has made
a provision for impairment of inventory at Mohali to the extent of Rs
61.57 Lacs thereby reducing the value of Inventory to zero. Similarly
the Company has made a provision for impairment of Inventory at
Vadodara of Rs 253.10 Lacs reducing the value of Inventory thereto Rs
359.62 Lacs.
(d) No provision for impairment of the fixed assets at Vadodara Unit
has been made as the Vadodara unit is temporarily not in operation and
would commence production no sooner the surplus assets are sold and
thereafter working capital is made available as stipulated in the
sanctioned scheme. Further the assets have not completed their useful
life and are in good working condition. Besides there is lot of
appreciation in the value of the land bank available at Vadodara.
31 The Company estimates the deferred tax (charge) / credit using the
applicable rate of taxation based on the impact of timing differences
between financial statements and estimated taxable income for the
current period. Since there is no reasonable virtual certainty of
realisation, deferred tax asset (Net) of Rs.15,822.97 Lacs (Previous
year Rs. 17,235.36 lacs) has not been recognized.
11 EMPLOYEE BENEFITS:
(a) Defined Contribution Plans
The Company has recognized the contribution/liability in the Statement
of Profit & Loss for the financial year 2014-15.
(b) Defined Benefit Plans & Other Long Term Benefits:
The following disclosures are made in accordance with AS 15 (Revised)
pertaining to Defined Benefit Plans and Other Long Term Benefits:-
12 BALANCE CONFIRMATION
(a) In the opinion of the management, Sundry Debtors & Loans and
Advances have a value on realization in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance sheet. Margin Money Balances, Trade Receivables, Trade Payables
and other receivables /payables have been shown as per values appearing
in the books of accounts and have been treated as good for
recovery/payment unless specifically provided for.
(b) Balance of Banks and FIs as appearing in the books of accounts are
as mentioned in the sanctioned scheme approved by the Hon'ble BIFR and
these balances are after accounting for 15% equity share allotment made
to them in the financial year 2007-08 and 2009-10, upfront payment and
installments paid up to financial year ending 31st March, 2015. There
is no change in the bank balances of those banks which have not yet
sent the confirmation to the sanctioned scheme or those which have
opted for OTS.
13. RELATED PARTY DISCLOSURES:
Names of related parties and description of relationship
(a) Related parties where significant influence exist : India
International Airways Limited
(b) Associates : JCT Limited
(c) Key Management Personnel : Mr Arjun Thapar
(d) Relative of Key Management Personnel :
Mrs. Nayantara Thapar, Ms. Shivani Thapar
(e) Companies over which persons described in
(c) & (d) are able to exercise significant influence : Team Plus
Securities Limited
APJ Financial Services Private Limited
14 The Company has taken certain commercial premises under cancellable
operating lease arrangements. The total aggregate Lease Rentals
recognized as expense in the Statement of profit & loss under
cancellable operating lease was Rs. 27.80 Lacs (Previous Period: Rs
68.77 Lacs).
15 INFORMATION ON SEGMENT RESULTS:
The company is engaged in the manufacture of Colour Picture Tubes &
Deflection Yoke which is in the context of Accounting Standard 17 on
Segment Reporting, issued by the Institute of Chartered Accountants of
India is considered as the only business segment. Presently company has
one plant designed to manufacture Color Picture Tube & Deflection Yoke
which is situated at Vadodara. Plant & Machinery including Electrical
Installation, Storage & Water System, Office Equipment, Factory
Equipment, Furniture & Fittings, Vehicles etc. of two Plants situated
at Mohali has been disposed off during the year ended 31st March, 2014.
Being having one business entity, there is no reportable business as
well as geographical segments.
16. Team Plus Securities Limited being the promoter and holding company
had advanced an interest free loan of Rs 50 lacs to the company in the
beginning of FY 2011/12 towards meeting the short fall in the resources
available with the company at that time for servicing the secured
debts. In terms of BIFR order the promoters are to meet any shortfall
in the fund requirements of the company for servicing the debts of the
secured creditors. Mr Arjun Thapar is a director of Team Plus
Securities Limited, the promoter and holding company, and the Managing
Director of JCT Electronics Limited, its subsidiary. The said loan of
Rs 50 lacs is still outstanding and has not been returned by the
company as the same cannot be repaid without the prior written approval
of the secured lenders. Further no interest is payable on such loans
without the approval of the lenders. The Sick Industrial Companies
(Special Provisions) Act, 1985 stipulates that the provisions of this
act and rules made there under shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time
being in force or in the Memorandum or Articles of Association of an
industrial company. As such the orders of BIFR prevail and override the
provisions contained in the Companies Act. Further Team Plus Securities
Limited is an NBFC and is authorized to give loans as per its objects
and such loans are exempted from the applicability of the provisions of
Section 185 of the Companies Act , 2013 .
17. DISCONTINUING OPERATIONS
(a) Description of Discontinuing Operations
(i) Company had set-up a manufacturing plant at A-32, Industrial Area,
Phase - VIII, Mohali for manufacture of Color Picture Tubes. The
installed capacity of this plant was 10 Lacs units per annum. Company
also had manufacturing plant for manufacture of Deflection Yokes unit
at A-27, Industrial Area, Phase - VII, Mohali.
(ii) The Company started incurring losses from the year 1997-98 due to
non-availability of working capital resulting in low capacity
utilization. Further the decline in prices of colour picture tubes on
account of cheap imports, also contributed to the losses. This resulted
in both the plants at Mohali shutting down active production in 2001. A
reference was made by the Company to the Hon'ble BIFR under the
relevant provisions of Sick Industrial Companies (Special Provisions)
Act, 1985 ('SICA') in 2002, when the accumulated losses exceeded its
net worth as on 31st March, 2002. The Company was declared a sick
industrial company within the meaning of SICA by the Hon'ble BIFR vide
its order dated 12.12.2005. Thereafter, the Company submitted its
proposal for revival and rehabilitation and sanction was accorded to
the scheme vide order dated 12.03.2007 passed by the Hon'ble BIFR
(Sanctioned Scheme).
(iii) In terms of the Sanctioned Scheme the land & building at both the
plants at Mohali was to be sold and the plant & machinery shifted to
Vadodara. Subsequently the Hon'ble BIFR allowed sale of the idle plant
& machinery including Electrical Installation, Storage & Water System,
Office Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc
at Mohali Unit and it was no longer required to be shifted as proposed
in the MDRS submitted to BIFR by the OA.
(iv) During the year ended 31st March, 2014, the Asset Sale Committee
sold the Idle Plant & Machinery including Electrical Installation,
Storage & Water System, Office Equipment, Factory Equipment, Furniture
& Fittings, Vehicles etc. as also few workers flats and the proceeds
were deposited in the no lien account with the Operating Agency. The
land, building, and remaining workers flats at Mohali have been retired
from the above assets and are held for disposal and the same are shown
separately in Note No. 10.1 i.e. Schedule of fixed assets pertaining to
discontinued operations.
(v) During the year ended 31st March, 2015, no sale could be transacted
for the land, building, and remaining workers flats at Mohali.
(b) Business or Geographical Segment.
(i) Company is engaged only in manufacture of Color Picture Tube, and
Deflection Yoke. This is the only Business Segment of the Company.
(ii) In the previous year's company had three plants designed to
manufacture Color Picture Tube & Deflection Yoke. Plant & Machinery
including Electrical Installation, Storage & Water System, Office
Equipment, Factory Equipment, Furniture & Fittings, Vehicles etc of two
Plants situated at Mohali were disposed off during the year ended 31st
, March 2014 . The remaining one plant is situated at Baroda Unit,
Gujarat. These have not been categorized under Accounting Standard 17
on Segment Reporting, issued by Ministry of Corporate Affairs as
reportable geographical segments. However for limited purpose of
categorization under discontinuing operations, Vadodara Plant & Mohali
Plant were considered as two geographical segments.
(c) Date & Nature of Initial Disclosure
The date & nature of such disclosure is described as under:-
(i) The Asset Sale Committee (ASC) initiated action to sell the Land &
Building at Mohali, consisting of two plots i.e. at A-32, Industrial
Area, Phase - VIII and A-27, Industrial Area, Phase-VII, Mohali as per
the Sanctioned Scheme of BIFR by releasing advertisements in the months
of December, 2011, September, 2012 and February, 2013 in response to
which no bids were received at the Reserve Price fixed by Asset Sale
Committee (ASC).
(ii) The Plant & Machinery, including Electrical Installation, Storage
& Water System, Office Equipment, Factory Equipment, Furniture &
Fittings, Vehicles etc & few workers flats at Mohali were sold by the
ASC pursuant to order of BIFR dated 29th Jan, 2013 and the proceeds
were deposited in the No Lien Account with Operating Agency.
(iii) Till the year ended 31st March, 2015, the Company has not yet
entered into any binding agreement for sale of Land and Building
attributable to the discontinuing operation with any party. The
decision to sell Land & Building, Plant & Machinery, including
Electrical Installation, Storage & Water System, Office Equipment,
Factory Equipment, Furniture & Fittings, Vehicles etc & Flats and its
acceptance by Board of directors and secured lenders, is sufficient to
disclose it as discontinuing operations.
(d) Date or period in which the discontinuance is expected to be
completed if known or determinable
The ASC has already initiated steps towards sale. However the date or
period in which the discontinuation is expected to be completed is not
determinable as on date as the process for sale has not been completed
in respect of the land & building and few workers flats at Mohali till
31st March, 2015.
18. Provisions related to Corporate Social Responsibility (CSR) as
defined and prescribed under section 135 of the Companies Act, 2013,
deses not apply to Company during the financial year ended 31st March,
2015
19. COMPARATIVE FIGURES
Figures for the previous year have been regrouped/reclassified wherever
necessary to make them comparable with those of the current year.
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