9.1 Rights, Preferences and restrictions attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote pershare held and is entitled to dividend, if declared at the Annual General Meeting. In the eventof liquidation of the Company, the holders of equity shares will be entitled to receive the 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.
9.2 The Company does not have any holding / ultimate holding company.
9 Particulars and terms of redemption of non-convertible preference shares are as under:
1. 600,000 14% preference shares of Rs. 100/- each, aggregating to Rs. 60,000,000/- have been allotted on 26th May, 1999 to the Industrial Development Bank of India, redeemable on par after expiry of six years from allotment, i.e. 25th May, 2005;
2. 500,000 14% preference shares of Rs. 100/- each, aggregating to Rs. 50,000,000/- have been allotted on 15th October, 1997 to SICOM Limited, redeemable on par after expiry of five years from allotment, i.e. 15th October, 2002.
3. 200,000 15% preference shares of Rs. 100/- each, aggregating to Rs. 20,000,000/- have been allotted on 16th September, 1997 to Tata Finance Limited, redeemable on par after expiry of five years from allotment, i.e. 15th September, 2002;
4. 100,000 15% preference shares of Rs. 100/- each, aggregating to Rs. 10,000,000/- have been allotted on 12th July, 1997 to BOB Asset Management Company Limited, redeemable on par after expiry of three years (extended by a further period of three years) from allotment, i.e. 11th July, 2003;
5. 50,000 15% preference shares of Rs. 100/- each, aggregating to Rs. 5,000,000/-, have been allotted on 2nd June, 1997 to The Ratnakar Bank Limited, redeemable on par after expiry of six years from allotment, i.e. 1st June, 2003;
6. 30,100 15% preference shares of Rs. 100/- each, aggregating to Rs. 3,010,000/-, have been allotted on2nd June, 1997 to various individuals, redeemable on par after expiry of six years from allotment, i.e. 1st June, 2003;
7. 31,170 15% preference shares of Rs. 100/- each, aggregating to Rs. 3,170,000/-, have been allotted on 8th July, 1997 to various individuals, redeemable on par after expiry of six years from allotment, i.e. 7th July, 2003.
11.1 Term loans and working capital facilities availed by the company from various banks and financial institutions were classified as Non-Performing Assets (NPAs) in earlier financial years. The Company has not made any provision for interest on these loans over the years since no communication was received from the lenders regarding the amount of interest provision as the same was classified as NPAs.
NOTE: 2 CONTINGENT LIABILITIES
(I) Contingent liabilities, if any, are disclosed in the notes on accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year-end till the adoption of accounts by the Board of Directors and which have material effect on the position stated in the Balance Sheet and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
(II) Contingent Liabilities not provided for in respect of
1. Provision for Gratuity (not included as it is incremental liability)
2. Claims against the Company not acknowledged as debts
3. The Income tax assessments of the company been completed upto Assessment Year 1999-2000 and block assessment upto 1995 and block assessment 1996-2001. The demand raised by the Income Tax Department in respect thereof is Rs. 480.88 lacs and Rs 783.29 lacs which are under dispute. The disputed matters are pending in appeal.
3. Liabilities in respect of Daman Electricity Board disputed.
4. Liabilities in respect of Daman Gram Panchyat disputed.
5. Liabilities in respect of GIDDC disputed.
6. Liabilities in respect of Customs disputed &appeal .
7. Liabilities in respect of DGFT disputed & appeal.
8. Liabilities in respect of 138 Case filed by IFCI disputed & appeal Rs .90,00,000/-
9. Liabilities in respect of Dividend and Dividend distribution Tax Rs 22,00,807/- disputed
10. Liabilities in respect of Investor Education & Protection Fund disputed.
11. Liabilities in respect of delisting of Shares at Ahmedabad Stock Exchange & Delhi Stock Exchange
12. Liabilities in respect of redemption of Debenture and Interest thereof
13. Liabilities in respect of redemption of debenture held by UTI & LIC
14. Liabilities in respect of Factory License/ Weights & Measurement Dept
NOTE: 8 None of the current employees qualify to receive any termination benefits. None of the employees in the year 24-25 have completed a year and therefore
are liable to receive any benefits including bonus. Hence no provision has been made for the same.
NOTE: 9 CSR is not applicable to the company since it does not meet the criteria defined under Section 135 of the Companies Act, 2013. For calculation of net profit,
a reference to Section 198 of the Companies Act, 2013 is made. Clause 3(c) excludes profits of a capital nature from the net profit calculation and Clause 3(e) excludes any change in carrying amounts of assets and liabilities. Therefore the CSR provision is not applicable to the company.
NOTE: 10 The company was into three segments of weighing scales, software and packaged drinking water. In absence of business, segment reporting disclosure as
required under IND AS 108 is not provided.
NOTE: 11 During the year, the company has undertaken the process of revoking its supension with the exchanges and has also filed a restructuring scheme with NCLT.
The management is confident of reviving and renewing the company after its restructuring exercise. It is the management's view that the company is and will continue to remain a going concern.
NOTE: 12 All the borrowings of the Company from Banks & Financial Institutions as at 31st March, 2025 are subject to confirmation & reconciliation. The Company has
not received any communcation from the banks as to the amount outstanding as at 31st March, 2025.
NOTE: 13 All the borrowings of the company became Non-Performing Assets (NPAs) in the financial year 2003-04, The only communication
received from the lenders during this tenure has been accounted for in our books. The lenders have not provided any communication regarding interest on the above loans since 2004, and therefore the company has not reflected the interest expense in its books.
The Company has also filed a counter claim on the bankers for not disbursing the committed funds thereby putting the project in jeopardy.
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