a) Working capital facilities with Indian Overseas Bank is secured by
first charge on Current Assets of the Company.
b) As collateral security, Indian Overseas Bank has second pari passu
charge on (i) Movable block assets of the company, (ii) Mortgage on
Land and Building at Doddaballapur, Bangalore and (iii) Mortgage on
Land and Building at Gangarampur, 24 Parganas (S), West Bengal.
c) Further, the working capital limits of Indian Overseas Bank is also
secured by personal guarantee of two Directors of the company.
d) The said loan from Indian Overseas Bank are subject to confirmation
and reconciliation, if any.
e) Rupee Term Loan with Industrial Development Bank of India Ltd (IDBI)
has been secured as follows:
Purpose Description of property
Retail showroom
(i) Plant and machinery of Kolkata EOU on first Charge.
(ii) Entire movable property (excluding current assets) of retail
showroom on first charge basis. (iii) Stock of Raw Material, WIP and
Finished goods of all units on second charge Doddaballapur (i) First
charge on Land and Building at Dodaballapur.
(ii) First charge on movable and immovable assets (except Stock) of
J.J.Spectrum (unit of J J Exporter Ltd.) (iii) First charge on movable
and immovable assets (except Stock) of EOU at Kolkata.
Kolkata EOU (i) Whole of movable properties (other than stock) of the
company's unit situated at Gangarampur, EOU-I and EOU-II (ii) Land
measuring 40,000 sq. feet together with buliding thereon. Plant and
machinery on first charge (iii) Personal guarantee of a Director.
a) Terms of Repayment of Term Loans/ FITL From IDBI
The IDBI Bank Limited has approved One Time Settlement (OTS) of its
dues on account of Term Loan and Funding Interest Term Loan, the
repayment of which is as follows:
Rs.15 crore was to be paid by selling Dodaballapur unit by March, 2015,
the remaining Term Loan of Rs. 57,662,750/- is to be repaid w.e.f. 1st
April 2015 in 59 monthly installments of Rs. 965,000/- and one
installment of Rs. 727,750/-.
The Funding Interest Term Loan of Rs. 67,732,163/- is to be repaid in 60
monthly installments w.e.f 1st April 2015.
b) The Working Capital Loans and Funding Interest Term Loan has been
recalled by Indian Overseas Bank. Hence, the said loan is shown as
Current Maturity of Long Term Borrowings and is included in Other
Current Liabilities (Refer Note 5). However, the Company has approached
the bank for One Time Settlement.
c) Terms of Repayment of Term Loans of Previous Year
Terms of Repayment of Funding Interest Term Loans From Banks:
A) IDBI Bank Limited
Funding Interest Term Loans Rs. 3,17,40,479/-.The interest on the Term
loan is funded by the bank by way of FITL upto Rs. 7 Crores till 31st
March, 2015. It was to be repaid in 60 monthly installment w.e.f 1st
April 2015.
B) Indian Overseas Bank
Funding Interest Term Loans Rs. 99,78,469/-. The interest on the Working
Capital Term loan is funded by the bank by way of FITL. It was to be
repaid in 16 Quarterly installment w.e.f 1st April, 2016.
Terms of Repayment of Working Capital Term Loan from IOB:
The Bank had crystalised and converted part of the Packing Credit
Facility to WCTL during the year. The said loan was repayable in 16
Quarterly Installments of Rs. 56.25 lacs each w.e.f 1st April, 2016.
Terms of Repayment of Term Loan from IDBI:
The Bank has restructured the terms of repayment of Term Loan as
follows:
Rs. 20 crore was to be paid by selling Dodaballapur unit by March, 2015,
the remaining Term Loan of Rs. 57,662,750/- was to be repaid w.e.f. 1st
April 2015 in 59 monthly installments of Rs. 965,000/- and one
installment of Rs. 727,750/-
1. In respect of the Equity Shares of Erstwhile J.J. Spectrum Silks Ltd.
held by the company (hereinafter referred to as the transferee
company), 1,303,675 shares have been issued by the transferee company
in terms of scheme, to the board of trustees to have and to hold such
shares in trust exclusively for the benefit of the transferee company
and deal with the same as they deem fit.
The above shares have been valued at cost. The said shares, being long
term in nature, no provision for diminution in value has been done in
earlier years. However, as per prudence and in view of the Financial
Position, the company has made a provision of Rs. 3,00,00,000/- towards
diminution in the year 2013-14 which, according to the management, is
appropriate.
2. In the opinion of Board of Directors, all the current assets, 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 and
that all the known liabilities relating to the year have been provided
for.
3. As the company's business activities falls mainly within a single
primary business segment viz. Dealing in Textile Goods, so disclosure
requirement of Accounting Standard 17 " Segment Reporting ", notified
in the Section 133 of Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 has not been given.
4. Related Party Disclosure in accordance with Accounting Standard 18
notified in the Section 133 of Companies Act, 2013, read with Rule 7 of
the Companies (Accounts) Rules, 2014.
a) Where common control exist Relationship
i) Spin International Inc. Wholly Owned Subsidiary Company
ii) OOO JJ Home Wholly Owned Subsidiary Company
iii) JJ Creation SA Subsidiary Company (Ceased to be a Subsidiary
Company during the year)
iv) Nupur Carpet Private Limited (Associate)
b) Key Managerial Personnel
i) Sri S.N. Jhunjhunwala Executive-Chairman
ii) Sri Rajiv Jhunjhunwala Vice-Chairman
v) Shri A.B. Chaturvedi Whole Time Director
c) Relative of key managerial personnel
i) Mrs. Kavita Jhunjhunwala Wife of Mr. Rajiv Jhunjhunwala,
Vice-Chairman
Note : The Sale of Goods include Deemed Export Sale to Subsidiary
Company amounting to Rs. NIL (Previous Year Rs. 1,355,634/-).
5. The Company has approached the banks for one Time Settlement of
outstanding loans. Two of the banks have approved Company's One Time
Settlement Proposal and have been accepted by the company. All
necessary adjustment entries have been passed in the books of accounts
where the company has accepted the One time settlement approval in
totality and has been shown as Extraordinary Item.
6. The Net worth of the Company has substantially eroded and now the
Company has initiated business and debt restructuring (Refer Note 7
above). In view of the ongoing restructuring, the accounts of the
Company have been prepared on going concern basis.
7. As a matter of prudence no deferred tax assets after adjusting MAT
liability has been recognised in the account in accordance with
"Accounting Standard 22", as notified in the Section 133 of Companies
Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
8. Profit and Loss on sale of Investment includes Rs. 1486/- (Previous
Year - Rs. NIL) on account of Security Transaction Tax paid on such
transactions.
9. One of the subsidiary, OOO JJ HOME, had closed its business during
the year 2013-14. As a consequence of that, debit balance due from
above subsidiary amounting to Rs. 20,101,432 had been provided and a
provision for diminution in value of investment was done amounting to Rs.
6,095,172, necessary approval is awaited from Reserve Bank of India.
10. Land measuring about 2.07 acre duly conveyed in the name of one of
the unit of the Company by the State Government has been disputed by
the original owner and the matter is subjudice.
11. In Respect Of 100% Export Oriented Units and as per the prevailing
laws and guidelines, it is exempted from Customs and Central Excise
Duties and levies. The Company has executed legal undertaking to pay
the customs and central excise duties and liquidated damages, if any,
in respect of capital goods, raw material, stores etc. procured duty
free in the event of non- fulfillment of terms and conditions.
12. Loans and advances include Rs. 8,112/- ( Previous Year amounting to Rs.
374,736/-) balance lying with Central Excise department.
13. There is no amount to be credited to Investors Education &
Protection Fund as on 31st March 2015.
14. Interest on term loan is net of TUFS subsidy amounting to Rs.
4,518,636/- (Previous Year Rs. 4,592,858/-).
15. a Claims against certain Derivative transactions entered with a Bank
during 2007-2008 have not been acknowledged by the company. Claims of
Rs. 7.86 crores (excluding Interest) against these transactions which
were contested and not provided by the management. However, the same
had been settled by the company for an amount of Rs. 4 crores, which
had been reflected as an Exceptional item in 2013-14.
16. b Also, Claims of Rs. 14,597,401/- by the company against the bank,
for which a provision had been made in the books, was treated as Bad
Debts in Accounts in the year 2013-14.
17. The Company had closed down the operation in its units at
Dodaballapur, Bangalore with effect from 01-04-2013 and had disposed of
the assets thereon in the Previous year except Land and Building which
is in the process of disposal.
18. The Disclosure required under Accounting Standard 15 " Employee
Benefits " notified in the Section 133 of Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014 are given below:
A DEFINED CONTRIBUTION PLANS
B DEFINED BENEFIT PLANS
GRATUITY PLAN
The estimation of rate escalation in salary considered in the actuarial
valuation, takes into account inflation, seniority, promotion and other
relevant factors such as supply and demand in employment market. The
above information as provided by the actuary.
19. Due to unfavourable market conditions and downturn in silk industry,
one of the units at Gangarampur is no more viable to operate. So the
company has declared temporary closure w.e.f. 01.12.2013.
20. One of the Subsidiary, namely, J J Creations SA had reduced its
share capital by _ 42,500 in the previous year. The Shares of the said
subsidiary were disposed of by the Company during the year.
21. The company has regrouped and rearranged previous year figures to
confirm the corresponding figures of this year.
Note:
a) Previous year's figures has been regrouped and rearranged wherever
necessary.
b) The above cash flow has been prepared under "Indirect Method" as
prescribed under Accounting Standard 3 notified in Section 133 of the
Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules,
2014.
c) Cash & Cash Equivalents as at March 31, 2015 and March 31, 2014
exclude restricted Cash & Bank Balances. The restrictions are primarily
on account of Bank Balances held as Margin Money Deposits against
Guarantees and Unpaid Bills but includes restricted Bank Balance such
as Unpaid Dividends.
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