| Rights, Preferances and Restrictions attached to Shares Issued :
Each Equity Shareholder holding shares of Rs. 10/- each is eligible for
one vote per share held and is entitled to dividend when proposed by
the Board of Directors subject to the approval of the sharesholders in
the Annual General Meeting. Each Equity Shares holders is entitled to
participate in repayament of Capital on liqudation after all secured
creditors have been paid.
1) Working Capital Loans etc. from Banks are secured /to be secured by
first charges by way of hypothecation on the company's stock of Raw
Materials, Consumable stores, Semifinished & Finished Goods and book
debts present & future.
2) State Bank of India and Punjab & Sind Bank have filed applications
against the Company before the Debt Recovery Tribunal, Kolkata for the
recovery of their dues.The matters are pending and lying subjudice.
3) The outstanding balance of borrowings from the banks for Working
Capital Loans, Overdraft and Cash Credit are subject to receipt of
confirmation/statements which could not be obtained due to
restructuring being in progress.
4) Efforts are made for recovery of Trade Recievable (including
certain Domestics Sales Debts) In respect of the above debts adjustment
are pending against supplies and other liabilities etc due to the
buyers.
The Management is confident of recovering the balance after such
adjustments pending approval from the concerned regulatory authority.
5) Trade Recievable include :-
Overdue Export Bills amounting to Rs.2060.62 Lacs outstanding for long
after realization of Rs.236.03 Lacs from such debtors till 31.03.2014
pursuant to a decree in UK Court.
The Management considered that the remaining portion of the debt which
is not covered by above decree will be fully adjustable against dues to
the party in respect of supplies etc. on receipt of approval from the
regulatory authorities.
6) Trade Recievable (over 6 months) also include Rs.1025.28 Lacs due
from a customer based in UK in respect of consignment made to them for
which suits have been filed by the company for recovery of the dues.The
Management has been legally advised that such dues will be recovered.
7) Trade Recievable includes Rs. 176.68 Lacs due from the companies
which have become sick and refereed to BIFR under Sick Inndustrial
Companies ( Special Provisions ) Act, 1985. In the absence of
rehabiliation scheme amount of provision if any required has not been
ascertained at this stage.
8) Claims receivable from various banks amounting to Rs.63.06 Lacs on
account of excess interest charged by them in earlier years which are
subject to confirmation. However as explained by the Management the
Banks have not disputed the claims.
9) The Miscellaneous Advances includes dues from certain Banks
amounting to Rs.299.87 Lacs settlement of which is pending
restructuring.
10) Loans and Advances includes Rs. 33.90 Lacs due from the companies
which have become sick and refereed to BIFR under Sick Inndustrial
Companies ( Special Provisions ) Act, 1985. In the absence of
rehabiliation scheme amount of provision if any required has not been
ascertained at this stage.
11) Advances include Rs. 539.00 Lacs due from a party, which in the
opinion of the management is considered to be fully recoverable.
12) During the year the company paid Rs 211.70 Lacs as advance to
overseas consultant on the basis of Advance Invoice raised by the
Consultant for providing technical knowhow and marketing assisstance.
The consultant failed to provide neccassary services and the Management
is contemplating legal action against him. As the extent of
recoverabilty of the amount is presently unascertainable, no provision
has been made for the same.
13) Contingent Liabilities and Commitments
(To the extent not provided for)
i) Contingent Liabilities
a) Guarantees
Letter of Credit 16,970 16,970
Bank Gurantee 4,179 4,005
Corporate Gaurantee 2,00,000 2,21,149 2,00,000 2,20,975
b) Other money for which the
company is contingently
liable:
Excise Demands 13,67,637 13,70,159
Income Tax 1,531 1,531
Demands are in various 1,450 13,70,618 1,450 13,73,140
forums/Authorities.
Total 15,91,767 15,94,115
ii) Commitments
Estimated Amount of Contracts remaing 11,972 -
to be executed on Capital Account
and not provided for
Total 11,972 -
13) The Company is a Sick Industrial Undertaking and has been
registered with BIFR u/s 15 (1) of the Sick Industrial Companies
(Special Provisions) Act, 1985.Act, 1985.The Restructuring Scheme of
the company is under preparation. However, these Accounts have been
prepared on a Going Concern basis as the Management is of the view that
the going concern assumption is not vitiated.
14) Trade Payable, Trade Receivable and Advances are subject to
confirmation.
15) Advances include Rs.30000/- (Previous year Rs.166283/-) being
amount due from an officer of the company (Maximum amount due at any
time during the year Rs.178352/- (Previous Year Rs.634588/-).
16) Related Party Disclosures under AS - 18
i) Related Parties Relationship :
a) Key Management Personnel
Mr N K Garg (Executive Director)
b) Other Related Parties
Uniworth Limited
Uniworth Apparel Limited
Note: The enterprise listed under (b) above over which Key Management
Personnel are able to exercise signficant influence.
F. The previous year's figures have been reworked, regrouped,
rearranged and reclassified wherever necessary and practicable. Amounts
and other disclosures for the preceding year are included as an
integral part of the current year financial statements and are to be
read in relation to the amounts and other disclosures relating to the
current year.
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