1. Terms / rights attached to Equity shares
The Company has only one class of equity shares having a par value of
'10 per share. Each holder of equity shares is entitled to one vote per
share.
In the event of the liquidation of the Company, the holder of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
2. Terms / rights attached to 6% Redeemable Preference shares
During year ended 31 March 2010 the Company has issued 12,500,000 6%
Redeemable Preference shares of ' 10 each at ' 100 each (including ' 90
premium). Each holder of 6% Redeemable Preference shares is entitled to
one vote per share only on resolution place before the Company which
directly affect the right attached to 6% Redeemable Preference shares.
6% Redeemable Preference shares shall be redeemable in 3 equal
installments commencing from 7th, 8th and 9th year from the date of
issue i.e. 27/03/2010.
3. Segmental reporting
The Company has only one business segment viz. Gems and Jewellery,
which is being considered as the primary segment.
The financial information about business segment is not applicable
since segment results / revenue / assets of the wind mill business are
not more than 10 percent of the combined business results / revenue /
assets.
4. Related party disclosures
i. Related party relationships:
a) Subsidiaries (where control exist)
: C. Mahendra International Limited - India
C. Mahendra NV (Formerly known as C Mahendra BVBA) -Belgium
Ciemme Jewels Limited - India
C. Mahendra Exports (H.K.) Ltd. - Hongkong
C. Mahendra (USA) Inc. - USA
International Gems & Jewellery FZE - UAE
Al Daspa Gems & Jewellery FZE - UAE
C. Mahendra DMCC - UAE
C. Mahendra Trading - India
C. Mahendra International Limited - Mauritius
Ciemme Entertainment Pvt.Ltd - India
b) Key Management Personnel
Mahendra C Shah (Chairman and Executive Director)
Champak K Mehta (Manging Director)
Sandeep M Shah (Upto 29/12/2014, Executive Director)
Babulal V Virvadia (Chief Financial Officer)
Swapnil Dafle (Company Secretary)
c) Relative of key management personnel
: Moghiben C. Shah
Dipika C. Mehta
Rasilaben M. Shah
Vikram M. Shah
Sandeep M. Shah
Hansa P. Mehta Hemali
J. Shah Nayna P. Mehta
Jignesh M. Shah
Kanu C. Shah
Prakash K. Mehta
Suresh K. Mehta
Paras C. Mehta
Alka K. Shah
Krupa S. Shah
Kevin P. Mehta
Sadhana S.Mehta
Pravin K. Mehta
Pravin C. Shah
Ramila P. Shah
Samir S. Shah
Suken Shah
Suresh K. Mehta
Sweety P. Shah
Vipul B. Virvadia
Bhavin B. Virvadia
d) Enterprises in which key : management personnel have significant
influence
C. Mahendra Commodities Private Limited
C. Mahendra Capital Ltd.
Champak K. Mehta (HUF)
Mahendra C. Shah (HUF)
Infojewels (India) Private Limited
Polo Developers Private Limited
Ashesha Trading Private Limited
CM Infojewels Private Limited
e) Enterprises in which relative of : key management personnel have
significant influence
C. K. Shah (HUF)
Kanu C. Shah (HUF)
Pravin C. Shah (HUF)
Allright Trading Private Limited
KPM Dimon LLC
5. Contingent liabilities and Commitments
Particulars As at As at
31/03/2015 31/03/2014
(Rs.) (Rs.)
Contingent liabilities (not provided for):
Guarantee given to banks in respect of
credit facilities sanctioned to a
subsidiary company (USD 11,000,000;
as at 31/03/2014 USD 12,000,000) 689,048,800 721,797,600
Bond executed in favour of The President
of India towards manufacture of
goods for exports 441,740,000 441,740,000
Bond executed in favour of The President
of India towards provisional
release of seized goods 30,622,000 30,622,000
Bank guarantee in favour of President
of India towards Bonded Warehouse 2,600,000 2,600,000
Disputed penalty under Customs Act 11,000,000 11,000,000
Disputed service tax liabilities 20,174,407 20,174,407
Disputed income tax liabilities 259,581,739 111,997,722
Unpaid Lease rent payment 1,80,000 -
The Company has received notice U/s 147 of the Income tax Act, 1961 for
reopening of AY 2007-08, 2008-09, 2009-10 & AY 2010-11 for alleged
bogus purchase. The assessment proceeding are yet to be commenced.
6. a) The Consortium of the bankers which had granted various working
and export facilities have withdrawn these facilities and have called
upon the Company to repay their outstanding. to the promoters,
guarantors and also to the companies who have provided corporate
guarantees.. Further the banks have issued notice of Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act 2002.
b) Most banks had not provided bank confirmations (including working
capital facility and overdraft) since the accounts are freezed by the
consortium of banks as a result facility has been ceased to be
operational.
c) The Company has provided for interest upto the period where it has
been charged by the banks. No interest is provided by the Company
amounting to Rs. 915,371,518 where the banks has not intimated to the
Company.
d) After the balance sheet date symbolic possession has been taken of
most office premises of the company.
7. Trade receivables amounting to Rs. 11,949,340,981 and Loans and
advances receivable amounting to Rs. 87,185,015 are outstanding for
more than one year.
b) The account of Trade Receivables, Loans and Advances and Trade
Payables are however, subject to formal confirmations/reconciliations
and consequent adjustments, if any. The management does not expect any
material difference affecting the current period's financial statements
on such reconciliation/adjustments.
c) During the year the company had send notices to its overseas
customers. No response is received from the overseas customers but the
company is hopeful of the recovery.
d) Amounts receivable and payable from same party are netted off for
presentation in the financial statements.
8. During the year, share of loss from Investment in partnership firm
- M/s C Mahendra Trading is not considered.
9. In view of loss incurred no provision is made for Dividend on
12,500,000 no of 6% Redeemable Preference shares of Rs. 10 each as on
31st March, 2015 which amounts to Rs. 7,500,000/- (PY Nil).
10. The Company Secretary and Chief Financial Officer have resigned on
01/04/2015. In the absence of the Company Secretary and Chief Financial
Officer, these financial statements have not been authenticated by
Company Secretary and Chief Financial Officer under Section 203 of
Companies Act, 2013.
11. Pursuant to the Companies Act, 2013 ("the Act") coming in to
effect from April1, 2014, the Company has not realigned the remaining
useful life of its fixed assets in accordance with the provision
prescribed under Schedule II to the Act.. However the depreciation has
continued to provide depreciation on written down value method except
plant and machinery relating to Windmill at the rates and in the manner
specified in erst while Schedule XIV of old Companies Act, 1956.
Depreciation on Windmill is provided on straight line method. Leasehold
land is amortised over the lease period. Due to above the impact in
financial statement could not be ascertained.
12. There were disputes among promoters. The management is of the
opinion that no adjustment is required to be made on account of the
disputes.
13. Sundry balance written off includes Rs. 25,682,264/- being
reversal of part amount of insurance claim receivable provided in
earlier years. As the Hon'ble Bombay High Court order has been
contested by the Insurance Company
14. a) Small scale undertakings to whom the company owes a sum which is
outstanding for more than 30 days at the Balance Sheet is not
available. In view of this, information required to be furnished is not
given.
b) Suppliers/ Service providers covered under Micro, Small Medium
Enterprises Development Act 2006 have not furnished the information
regarding filing of necessary memorandum with the appropriate authority.
In view of this, information required to be disclosed u/s 22 of the said
Act is not given.
15.During the year the company has incurred heavy loss in the year under
review and due to the company turning into NPA, the Company is yet to
initiate its Corporate Social Responsibility (CSR) activities as per
Section 135 of the Companies Act, 2013.
16. Previous year's figures have been regrouped or rearranged, wherever
considered necessary to conform to current year's presentation. Figures
in bracket are in respect of previous year.
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