| 1 Contingent Liabilities
a. Corporate Guarantee given on behalf of Associate/Group Companies as
on Balance Sheet date is aggregating to Rs. 389.03/-crores approx.,
details of which has been tabulated below:
(Rs. In crores)
|--Sanctioned Credit Facility-|
Sr.
No. For Company/Bank Term Loan LC & BG CC Total Rs.
I. Sancia Global
Infraprojects
Limited:
a. State Bank of India 14.50 24.40 10.00 48.90
b. Bank of India 93.88 20.00 5.00 118.88
II News awlnfra projects
Limited:
a. State Bank of India 13.75 18.00 7.50 39.25
b. State Bank of Hyderabad 15.00 - - 15.00
Sancialnfraglobal Private
III. Limited:
a. Indian Overseas Bank 100.00 - - 100.00
b. Punjab National Bank 67.00 - - 67.00
| Total Rs. 304.13 62.40 22.50 389.03
b. During the previous reporting period, the proceeding of SFIO is
pending before its adjudication before the Company Law Board / Court at
Kolkata. Since the liability is not materialized yet, hence no
provision regarding the same has been made in the books of accounts,
however the management has filed compounding application.
c. During the period under review, the Securities and Exchange Board
of India, Mumbai issued notices dated 26th March, 2014 under Rule 4 of
SEBI (Procedure for Holding Inquiry and Imposing Penalties by
Adjudication officer) Rules, 1995. Since the liability is not
materialized yet, hence no provision regarding the same has been made
in the books of accounts however the management has submitted its reply
and outcome of the same is still pending.
d. On 02nd July, 2012, M/s. Aum Saw Pipe and Industries Private
Limited has filed an Arbitration Petition (L) No.994 of 2013, with the
Hon'ble Bombay High Court before the lordship of Mr. Justice Ranjit
More, to obtain control over the current management of company in
pursuance to the open offer place by M/s. Aum Saw Pipe & Industries
Private Limited before the shareholders of company. However the
Company has already intimated about termination of open offer to Bombay
Stock Exchange during the previous reporting period. Presently the
matter is dispose - off by the court and consequently the open offer
become terminated. Accordingly the company has made the necessary
disclosures/compliance to the relevant regularities.
e. Other contingent liabilities as may arise on account of non or
delayed compliance of certain fiscal statutes - Amount Unascertainable
(Previous year-Amount Unascertainable).
2. Secured Loans: Term Loan
a. Term Loan I, II & III from State Bank of India is secured by the
following:
I. First charge on entire assets created out of bank finance
(Refractory and coke manufacturing units at village Lunva, Gujarat) and
entire current assets of the company, present and future
ii. Second Pari-passu charge on entire fixed assets of the company
iii. First pari-passi charge over commercial land at Bachhau, Village
Lunva, Gujarat
iv. First charge on the commercial land at village lunva, commercial
land at Silvassa, residential premises at Goregaon (Mumbai), office
premises at Andheri (w) Mumbai.
v. Personal guarantee of the Chairman & Managing Director of the
company
b. Term Loan from Bank of India is secured by the following:
I. Ist Pari Passu Charge on Land at village Lunva, Gujarat
ii. Ist Pari Passu Charge on movable plant & machinery, furniture &
fixture etc.
created out of the bank finance on factory land and building.
c. Term Loan from State Bank of Indore has been fully repaid by the
company, and the respective charges / liens of bank on the immovable
asset (residential premises at Andheri of director) secured for such
purpose, have been relinquished.
Working Capital & Letter of Credit:
Working Capital & Letter of Credit facility from State Bank of Indore
which has been taken over by State Bank of India is secured by the
following:
a. Primarily secured by hypothecation of entire stocks of raw
materials, stocks-in-process, finished goods and stores & spares,
book-debts and goods- in- transit covered by documents of title thereto
on First pari passu basis with other working capital lenders
b. Collaterally secured by second pari passu charge on entire fixed
assets of the company, and first pari passu charge over commercial land
at village Lunva Gujarat
c. Personal guarantee of the Chairman & Managing Director of the
company.
Working Capital & Letter of Credit facility from State Bank of India is
secured by the following:
a. Entire current assets of the company, present and future
b. Second Pari-passu charge on entire fixed assets of the company
c. First pari- passi charge over commercial land at Bachhau, Village
Lunva, Gujarat
d. First charge on the commercial land at village lunva, commercial
land at Silvassa, premises at Goregaon (Mumbai), office premises at
Andheri (w) Mumbai.
e. Personal guarantee of the Chairman & Managing Director of the
company
Working Capital & Letter of Credit facility from Bank of India is
secured by the following:
a. Ist Pari- passu charge on the current assets of the company with
working capital lenders.
b. Pledge of term deposit receipts
c. Collaterally secured by 2nd Pari Passu charge on entire movable
plant and machinery of the company
d. Collaterally secured by 2nd pari passu charge by way of EQM of
specified commercial lands at village Lunva & Maassat in Dadra & Nagar
Haveli, Residential & Commercial premises at Mumbai
e. Personal guarantee of the Chairman & Managing Director of the
company.
Working Capital & Letter of Credit facility from IDBI Bank is secured
by the following:
a. Primarily secured by first pari passu charge on the entire current
assets of the company.
b. Collaterally secured by second pari passu charge on entire fixed
assets.
c. Personal guarantee of the Chairman & Managing Director of the
company
3. Provision for Interest and other expenses: Provision of Interest on
Term Loans and Working Capital Loans has not been recognized during the
year, as bankers has classified company's account as Non-Performing
Asset (NPA). Further State Bank of India, Stressed Assets Management
Branch, Mumbai vide their letter no. SBI/SAMB/SB/NIPL/0569 dated 04th
June, 2014 have absolutely assigned all the rights, title and interest
in financial assistance in favour of "Invent Assets Securitisation &
Reconstruction Private Limited".
4. None of the creditors have informed us as to their status of being
micro, small and medium Enterprise as per Micro, small and medium
enterprises development Act, 2006.
5. Managerial remuneration:
Managing Directors - Salary including other benefits for the year Rs.
5,77,923/- (Previous period: Rs. 5,00,855/-)
6. Balances appearing under the head of Investments, Loans, Sundry
Debtors, Sundry Creditors, Loans & Advances and deposits are subject to
confirmations, reconciliation and adjustments, if any.
7. The accumulated losses of company during the reporting year is
Rs.583.19 crores (P.Y. Accumulated Loss Rs. 547.81 crores) and has
incurred a cash loss of Rs. 2.50 crores (P.Y. Cash loss Rs. 5.76
crores) and as such company falls within the definition of "sick
industrial company" within the meaning of section 3(1)(o) of Sick
Industrial Companies (Special Provisions) Act, 1985 (SICA).
8. Interest payable to suppliers on delayed payments is being
accounted for only after acceptance of such claims by the Company.
9. No provision for gratuity has been made since no employee has yet
put in qualifying number of years of service.
10. Inventory as at the close of the year is carried as taken, valued
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