[*] Working Capital Loan comprising Cash Credit(CC), Packing Credit in Foreign Currency (PCFC), Export Packing Credit (EPC), Bills discounted and Demand Loan (DL) is repayable on demand from Banks are secured by way of hypothecation of the Company’s entire current assets including stock of goods, including raw material, work-in-process, finished goods, stores, consumables, spares, goods in transit etc. and book-debts, both present and future, to rank on “pari-passu” basis. These facilities are also secured by way of first charge over the entire fixed assets including Equitable mortgage over leasehold right over the factory land of the Company situated at Plot No.2, GIDC Estate, Palej, Dist. Bharuch, Gujarat (India) both present and future. Interest for borrowing in Indian Currency through CC, EPC and DL is 10.30% p.a. and for borrowing in foreign currency through PCFC is in the range of Libor 2.6172 % p.a. to Libor 2.6420% p.a.
The secured borrowings are further secured by way of pledge of 3,19,21,366 Equity Shares held by the promoters in favour of the Consortium of Bankers During the year, the Company has drawn the working capital financing facility in excess of sanctioned limits at some times. However, there is no continuous overdrawing of working capital limits as at 31st March, 2016.
From Others [Unsecured] / Inter Corporate Deposits:
Unsecured, short term borrowings received, will be repayable within 90 days from the date of agreement (i.e.29th December, 2015). The applicable interest rate on the loan is 15% p.a. Payable in advance (for 90 days)
1 As on 31st March, 2016, the Company has entered into an “Agreement to Sell” and handed over possession and transferred the significant risk and ownership of the for part of its leasehold industrial land in favour of the buyer, admeasuring 40470.99 Sq. Mtr. out of it total 247581.81 Sq. Mtr. of leasehold land under 99 years lease from G.I.D.C. situated at Plot No.2, G.I.D.C. Estate, N.H.No.8, Palej, Dist.Bharuch, Gujarat (India) with M/s Steelco Colour Coating Limited at a total consideration of Rs, 1500 lakhs. The Company has received a part payment of Rs, 519 lakhs during the year. The final sale deed and convincing and registration of titles in the favaour of the buyer will be executed after obtaining regulatory approvals & compliance and completion of other regulatory and other formalities. In anticipation of completion of above stated approvals & compliances, the Company has recorded the above stated transaction as sale of land in its books of accounts on the basis of “Agreement to Sell” and the resultant net profit of Rs, 1488.84 lakhs has been shown under “Extra-ordinary Item” in the Statement of Profit & Loss.
2 During financial year 2014-15, the Company has carried out an exercise to undertake technical assessment and evaluation of its fixed assets and has appointed an independent Govt. approved technical value and assessors namely Gujarat Techno - Economic Consultants Pvt. Ltd. The said firm has carried out technical evaluation and assessment of fixed assets and based on their technical review and the practice and policy of continuous refurbishment and maintenance of the equipment and buildings, it has suggested estimated remaining useful life of Buildings and Plant and Machinery for a period which is longer than the period as is specified in Schedule-II to the fixed assets which is as under:
A The Company has worked out deferred tax liabilities / assets as at March 31, 2016. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognized as a matter of prudence and in absence of virtual certainty as to its realization.
A Name of the Related Party and Nature of the Related Party Relationship: a Holding Company:
Spica Business Corp., Panama The Holding Company of Spica Investments Limited
Spica Investments Limited, Mauritius Holding Company
b Subsidiary Company:
Steelco Colour Coating Limited Subsidiary Company (up to 31.03.2016)
c Directors and their relatives:
Shri Rashmi Chandaria Non-Executive Director
Shri Vimal Chandaria Non-Executive Director
Shri Mahendra Lodha Non-Executive Independent Director
Shri Jatinder Mehra Non-Executive Independent Director
Dr. R. S. Mamak Non-Executive Vice Chairman (Executive Vice Chairman up to 13.08.2015)
Shri S. S. Ranjan Non-Executive Independent Director
Shri Jiban Goswami Nominee Director
Smt. Ameeta Trehan Non-Executive Independent Director
Shri Mitesh H Shah Managing Director (w.e.f. 14.11.2014)
Smt.Tejal M Shah Wife of Shri Mitesh Shah (Managing Director)
Shri N. M. Mohnot Managing Director (up to 14.08.2014)
Smt.Saroj Mohnot Wife of Shri N.M.Mohnot (Managing Director)
d Key Managerial Persons:
Shri Abhishek Jajoo Chief Financial Officer (w.e.f. 6th November, 2015)
Shri Achal Thakkar Company Secretary (w.e.f. 29th August, 2015)
Shri Sunil Singhvi Chief Finance Officer (up to 23rd October, 2015)
Shri Arvind Tambi Financial Controller & Company Secretary (up to 28th August, 2015)
e Enterprises significantly influenced by Directors and/or their relatives:
Ignis International Industries Pvt. Ltd. (Influence of Shri N. M. Mohnot up to 14.08.2014)
Grip Strapping Technologies Pvt. Ltd. (Influence of relative of Dr. R. S. Mamak)
The Financial Statements of the Company have been prepared on “Going Concern Basis” considering the following facts:
1 Promotors have infused funds during the year and have committed to the lenders to further infuse their contribution towards capex plans/meet working capital needs in the forthcoming period;
2 The Company has identified a surplus plot of land and has already initiated process to liquidate the same to raise finance to meet long term requirements after due compliance of attached regulatory & other requirements & approvals;
3 The steel industry is expected to show positive outlook with recent positive policy initiatives taken by the Government;
4 The new management team has been inducted with fresh outlook showing improvement in operational efficiencies
5 Changes implemented in marketing strategies, customer focus and product mix in order to improve margins and profitability.
NOTE: 3
Exceptional item relate to write back of an unclaimed long outstanding dues which is written back during the year as decided by the managements after its review.
Note: 4
Confirmation letters have not been obtained from some of the Trade Receivables, Trade Payables and Loans & Advances. Hence, the balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.
Note: 5
Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classifications/ disclosure.
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