DCM Financial Services Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ
Mar 31, 2015
1. CONTINGENT LIABILITIES & OTHER COMMITMENTS
(a) Claims lodged and contingent liability arising out of suits and
winding up petitions filed against the company not acknowledged as
debts amounts to Rs.826.38 Lacs. There are also other cases filed in
consumer, civil & criminal courts and other courts against the company
for which the company is contingently liable but for which the amount
is not quantifiable.
(b) Punjab & Sind bank has filed a recovery suit before the Debt
Recovery Tribunal (DRT) for recovery of Rs.1,217.52 Lacs against which
the amount payable to them, as per books is Rs.803.40 Lacs. The company
contends that the dues of the Bank will be settled as per the fresh
restructuring scheme and consequently no provision for the difference
of Rs.414.12 Lacs has been made. In the event of default in the payment
of interest and principal or default as per Fresh Restructuring Scheme
or Fresh Restructuring Scheme is rejected, the concessions made by PSB
shall stand withdrawn and their claim settled before the Debt Recovery
Tribunal of Rs.1,217.52 Lacs will become payable with immediate effect.
(c) IndusInd Bank has filed a recovery suit before the Debt Recovery
Tribunal (DRT), of Rs.1,042.42 Lacs against which the amount payable to
them as per books is Rs.577.00 Lacs. The company contends that the dues
of the Bank will be settled as per the fresh restructuring scheme and
consequently no provision for the difference of Rs.465.42 Lacs has been
made. In the event that the company fails to pay the interest or
principal or company default as per Fresh Restructuring Scheme or Fresh
Restructuring Scheme is rejected, the concessions made by Indusind Bank
will be withdrawn and the amount claimed in the Debt Recovery Tribunal
amounting to Rs.1042.42 Lacs would be payable with immediate effect.
(d) During the year 1999, the company had received Rs.100.00 Lacs from
one of its debtors i.e. Pure Drinks New Delhi Ltd. and reduced the
same amount from his recoverable balance. Subsequently the Hon'ble
Punjab and Haryana Court deemed that payment is an out of turn payment
and asked the company to deposit back the said amount. The company had
filed a SLP with the Hon'ble Supreme Court of India which has been
dismissed by them. Therefore the company is liable to deposit the
amount mentioned above which has yet to be deposited. And in view of
restrictions imposed on operations of Bank A/c's by Hon'ble Delhi High
Court, the company has filed an application to release this money for
depositing the same with Punjab & Haryana High Court.
(e) During the year ended 30th June, 2011 the company's tenant has
filed a claim of Rs.100.00 Lacs against the company due to damages
suffered by the tenant which is pending under arbitration proceedings
as on 31st March, 2015.
(f) There is a demand of Rs.141.75 Lacs raised by Income Tax Department
for the Assessment Year 2010-11 for payment of income tax under the
Income Tax Act, 1961, which is disputed by the company as brought
forward losses under the Income Tax Act has not been allowed by the
department and rectification application for deletion of above said
demand has been filed by the company which is pending before the
appropriate authorities.
(g) There is an award passed by the arbitrator against the company in
the matter of MS Shoes East Limited on May 28, 2012 for Rs.51.28 Lacs
i.e. claim amount along with interest of Rs.307.00 Lacs for an
underwriting given by the company in the year 1995 for the public issue
of M/s MS Shoes East Ltd. The same has been contested by Company before
Hon'ble Delhi High Court.
(h) Due to dispute with the builder M/s NBCC Ltd. from which the
company had purchased an office premises in the year 1995, regarding a
claim for Rs.283.00 Lacs on account of increase in super area and
certain other expenditure M/s NBCC Ltd. had incurred and the same is
pending in arbitration.
2. RESTRUCTURING SCHEME
The management for a structured debt repayment had prepared two schemes
of arrangement for reorganization of share capital of the company and
for compromise with its secured and unsecured creditors. Both the
schemes of arrangement envisage a viable, just & equitable settlement
with its secured and unsecured creditors while simultaneously
increasing the risk and stake of the promoters and their shareholding
through fresh infusion of funds by the promoter company.
The company has also moved an application before the Hon'ble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations, 1991 proposing a fresh repayment schedule to
fixed depositors of the Company. The same repayment schedule has been
included in the "Fresh Restructuring Scheme" filed before the Hon'ble
High Court of Delhi at New Delhi on 24th September 2004.
The implementation of the schemes is subject to the fulfillment of all
the conditions of section 391 to section 394 of the Companies Act, 1956
and approval/orders of the Hon'ble Delhi High Court. The Hon'ble Delhi
High Court did not approve the company's first scheme filed in May
2000, though approved by the secured and unsecured creditors in their
respective meetings convened pursuant to the orders of the Hon'ble
Court, yet the Hon'ble Court did not accord sanction to the scheme on
technical grounds. An application for review had been filed before the
Hon'ble Delhi High Court on 30th May 2003, which is yet to be listed
for hearing and which is hereinafter, wherever applicable, referred to
as the "old scheme under review". The company intends not to pursue the
review application filed for the old scheme under review before the
Hon'ble Delhi High Court and it is proposed to be withdrawn at an
appropriate stage of the proceedings for the sanction of the "Fresh
Restructuring Scheme".
The company has filed a fresh Scheme of Arrangement for the
reorganization of the share capital of the company and for compromise
with the secured and unsecured creditors of the company, hereinafter
referred to as the "Fresh Restructuring Scheme" before the Hon'ble
Delhi High Court at New Delhi on 24th September 2004.
Pursuant to the orders of the Hon'ble Delhi High Court, the unsecured
creditors and debenture holders in their meeting convened under the
Chairpersonship of court appointed Chairpersons (retired Judges of
Hon'ble Delhi High Court) on 1st April 2005 and 2nd April, 2005 have
approved the scheme without any modifications with the requisite
majority. The meeting of the other secured creditors (banks/
institutions) was held on 17th September 2005 and has also approved the
scheme by the requisite majority after considering some modifications
proposed by the Punjab & Sind Bank.
The promoter company has undertaken, subject to sanction of the scheme
by the Hon'ble Delhi High Court, to contribute to Rs.195,000,000 of
which Rs.156,000,000 were deposited with the Registrar of the Hon'ble
Delhi High Court Registrar, as per court order by the promoter group,
and the balance amount of Rs.39,000,000 has been deposited on 27th
April, 2012.
The fresh restructuring scheme is conditional upon the following
approvals and shall be deemed to be effective on obtaining the last of
the approvals and the occurrence of the last of the following events: -
i. Sanction of the scheme by the Hon'ble High Court of Delhi under
Sections 391 and 394 of the Companies Act, 1956 and other applicable
provisions of the Act, Rules and Regulations, as the case may be;
ii. Filing of certified copies of the order of the Hon'ble High Court
of Delhi with the Registrar of Companies (Delhi and Haryana).
The restructured debts of the company for each category of debt is on
the basis of outstanding as envisaged in the fresh restructuring scheme
filed in the year 2004 excluding interest not provided for and all
liquidated damages/penal charges and interest on unpaid interest. The
"Fresh Scheme of Arrangement" is drawn on the basis of acceptance of
waiver of payment of past and future interest, penal charges,
liquidated damages, and any other charges, costs and claims etc. except
as provided and for values contained therein which is subject to the
approval of the Hon'ble Delhi High Court.
The accounts of the company have been drawn on the assumption that the
"fresh restructuring scheme" will be accepted and implemented. If it is
not accepted and cannot be implemented for any reason the total
liability before the proposed restructuring scheme including those for
which no provision has been made and has been quantified under
appropriate heads, shall become payable.
The fresh restructuring scheme is pending before the Hon'ble Delhi High
Court as at 31st March, 2015 & there is no change in the status at the
time of signing of the financials for the period ended 31st March, 2015
by the Board of Directors.
3. Deposit of Rs.1,950.00 Lacs by DCM Services Limited
DCM Services Ltd as a promoter has committed to bring in Rs.1,950.00
Lacs as a promoter contribution upon sanction of their restructuring
scheme u/s 391 of the Indian Companies Act, 1956 which is presently
pending for sanction before the Hon'ble Delhi High Court.
The Court vide order dated 06.05.2008 has asked DCM Services Limited to
deposit Rs.1,950.00 Lacs with the Court and pursuant to the court
order, They have deposited Rs.500.00 Lacs on 16.07.2010, Rs.670.00 Lacs
on 18.11.2010, Rs.390.00 Lacs on 21.04.2011 & Rs.390.00 Lacs on
27.04.2012 aggregating to Rs.1,950.00 Lacs on behalf of the promoters
with the Registrar, Hon'ble Delhi High Court. No financial impact of
this has been recorded in the financials of the company for the period
ended 31st March, 2015.
4. INCOME TAX
(a) Deferred Tax Assets
In accordance with Accounting Standard-22 as prescribed under Section
133 of the Companies Act, 2013 ('Act') read with Rule 7 of the
Companies (Accounts) Rules, 2014, deferred tax assets on accumulated
depreciation and losses have not been accounted for since as per
certain operational restrictions imposed, the company is unable to
conduct any new business and therefore it is uncertain whether there
will be sufficient future taxable income against which such deferred
tax assets can be realized. Accordingly in view of absence of virtual
certainty of sufficient taxable income in future no provision for
deferred tax has been made.
(b) Tax Provision
The company has made provision for Minimum Alternative Tax (MAT) during
the year ended 31st March, 2015.
5. EMPLOYEE BENEFITS
(a) Defined Contribution Plans:
The Company has recognized the contribution/liability in the profit &
loss account for the financial year 2014-15.
6. GOING CONCERN BASIS
To comply with the directives of the Reserve Bank of India the company
ceased to accept deposits from September 1997. Despite cessation of
business, substantial accumulated losses, provision for full NPA's and
interest payable, rejection of the "old scheme under review" and
winding up petition filed by the Reserve Bank of India and various
creditors of the company, the accounts of the company have been
prepared on a "going concern" basis on an assumption & premises made by
the management that
(a) the fresh restructuring scheme would be approved by the Hon'ble
Delhi High Court,
(b) adequate finances and opportunities would be available in the
foreseeable future to enable the company to start operating on a
profitable basis,
(c.) injection of Rs.1,950.00 Lacs as promoters quota infused by the
management group
7. BALANCE CONFIRMATION
(a) Balance confirmation of bills receivable and payable, advances
recoverable in cash or in kind, receivables and payables relating to
lease and hire purchase, lease security deposit of which party wise
details are not available. Balance confirmation of inter-corporate
deposits, balance of ex-employees, margin against L/C, loans from
institutions, banks, and other receivables and payables have not been
received from the parties/persons concerned. In the absence of balance
confirmation the closing balances as per books of accounts have been
incorporated in the final accounts and have been shown, unless
otherwise stated by the management about its recoverability in the
financials including considering the NPA Provisions, are good for
recovery/payment. Time barred debts under the Limitations Act have not
been separately ascertained and written off or provided for. In the
absence of such confirmation & corresponding reconciliation, the
financial impact cannot be ascertained.
8. Payment to Directors
The company has obtained the approval for payment of managerial
remuneration from Ministry of Corporate Affairs, Government of India
for the amount not exceeding Rs.3.99 Lacs per annum for the period of
three years starting from 01-12-2011 to 30-11-2014. The proportionate
amount of Managerial Remuneration of pertaining to the period from
01-April-2014 to 30th November- 2014 is Rs.2.66 Lacs.
9. Related Party disclosure
As required by Accounting Standard - AS 18 "Related Party Disclosure"
as prescribed under Section 133 of the Companies Act, 2013 ('Act') read
with Rule 7 of the Companies (Accounts) Rules, 2014 are as follows:
List of related parties with whom transactions have taken place during
the year:
I Control Exist - Subsidiary Company
(i) Global IT Option Limited
II Significant Influence Exist
(i) DCM Services limited
(ii) DCM International Limited
(iii) DCM Anubhavi Marketing Private Limited
III Key Management Personnel
(i) Mr. O. P. Gupta - Chairman
(ii) Mr. Surender Kumar Sharma - Executive Director
(iii) Mr. Rajeshwar Singh- Non Executive Director
10. The company's application to RBI for certificate of registration
(CoR) as a NBFC had been rejected by the RBI in year 2004. The company
had made an appeal to the Appellate Authority, Ministry of Finance
which directed the RBI to keep its order of rejection of CoR in
abeyance for a period of six months and directed the company to file
Fresh Restructuring Scheme before Hon'ble Delhi High Court. RBI has
preferred an appeal before the Hon'ble Delhi High Court against the
order of the appellate authority, which is still pending.
11. The company had no outstanding dues to suppliers under The Micro,
Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at
March 31,2015.
12. As the Company's business activity falls within a single primary
business segment "Financing Operations viz., inter corporate deposits
and investments", the disclosure requirements of Accounting Standard
(AS 17) "Segment Reporting" as prescribed under Section 133 of the
Companies Act, 2013 ('Act') read with Rule 7 of the Companies
(Accounts) Rules, 2014 are not required to be furnished.
13. PREVIOUS YEARS FIGURES
Previous year figures have been re-grouped/reclassified, wherever
necessary. The figures of current reporting period as well as previous
period consist of 12 months ended on 31 March, 2015.
Mar 31, 2014
1. Terms/ Rights attached to Shares Equity Shares
The company has only one class of Equity Shares having a par value of
Rs. 10 per Share. Each holder of equity is entitled to one vote per
share.
2. I) Capital Reserves
Rs. 193.87 lacs in the capital reserve account consists of surpluses
realized from settlement with the debentures and other liabilities not
payable, which in the opinion of the management have been transferred
to Capital Reserve since these amounts do not relate to trading
activities.
II) Debenture Redemption Reserve
Debenture Redemption Reserve for Series "B" has not been created during
the year in view of the carry forward losses suffered by the company in
the past.
III) Special Reserve
In the year 1996-97, the RBI under the clause 45IC has made it
manadatory for NBFC''s to create a reserve of at least 20% before
declaration of dividend.
3. As per consent letters received, expenditure incurred/repayment
made by the company amounting to Rs. 549.72 lacs funded by the group
companies till June.2007, have been credited to the Share Application
Account. Company has passed special resolution to allot such shares.
However the same is subject to sanction of Revised Restructuring Scheme
by the Hon''ble Delhi High Court.
4. a) During the year ended 31st March, 2014, Rs. 0.20 lacs has been
paid towards "B" Series debenture holder (19.5% Regular) on
compassionate grounds after getting approval from Hon''ble Delhi High
Court.
b) Scheme "A" Series
The company had allotted the Debenture A'' series on 28th February, 1996
and 23rd September 1996. Subject to Note 4.1 (d) these debentures are
secured against mortgage / hypothecation / charge on assets financed
out of the proceeds of these debentures. The outstanding debentures of
Rs. 8.50 lacs were overdue as on March 31,2014.
The company proposes to vary the terms of debentures through the scheme
of arrangement for reorganation of share capital of the company and for
compromise with its secured and unsecured creditors.
c) The value of assets charged in favour of debentures has been
depleted over a period of time but the depletion has not been
ascertained. To the extent of shortfall, if any, the liability is
unsecured.
e) A supplementary trust deed forgiving effect to the proposed
repayment plans as provided in Clause 44 of the Trust deed has not been
prepared by the trustees so far.
f) Provision of interest on debentures up to 31st March, 2014
calculated @ 10% p.a. of simple interest as per renewal offer letter of
1998 on 19.5% Debenture "B" Series and regular interest on Debenture
"A" Series amounting to approximately Rs. 4,057.54 lacs has not been
provided since a Fresh Restructuring Scheme that is subject to the
approval of the Hon''ble High Court of Delhi has been submitted which
does not envisage payment of any interest. To the extent of the
non-provision of interest calculated as per renewal offer letter of
1998, and considering the current year interest of Rs. 255.50 lacs ,
the current period profits are overstated to the extent of Rs. 255.50
lacs and cumulative net losses are understated to the extent of Rs.
4,057.54 lacs. The difference between the original contracted interest
@ 19.5% and as per offer letter @ 10% has also not been ascertained and
provided for pending approval of the fresh scheme. To the extent of
interest of Rs. 4057.54 lacs not provided cumulative net loss is
understated.
g) i. The Central Bank of India, Mumbai, Trustees for the
Non-Convertible Debentures B-Series have filed a suit for recovery of
Rs. 4,423.86 lacs on 14th October, 1999 before the Hon''ble Mumbai High
Court. As against the claim of Rs. 4,423.86 lacs filed by The Central
Bank of India, Mumbai, Trustees for The Non-Convertible Debentures "B"
Series, Rs. 2,546.55 lacs on account of principal and interest is
already reflected in the books as on date. In view of the Fresh
Restructuring Scheme seeking waiver of interest payable to debenture
holders, no provision has been made for the difference between the
claim made by the Central Bank of India and the liability as per the
books which comes to Rs. 1,877.31 lacs and to this extent the
cumulative net losses of Rs. 1,877.31 lacs is understated.
ii. The Hon''ble Mumbai High Court vide its interim order dated 24th
December, 1999 has passed an order that all receipts from hypothecated
assets shall be deposited with the trustees in a separate bank account
except for amounts utilized as per orders of The Reserve Bank of India
and the Company Law Board.
iii. The suits filed by the Central Bank of India before the Hon''ble
Mumbai High Court has been stayed by Hon''ble High Court of Delhi vide
order dated 14 September 2005 on application made by the company and
there is no change in the status as at 31st March, 2014.
5. a (i) Hypothecation / charge on assets financed out of the said
loan.
(ii) The aforesaid amount outstanding Rs. 36.30 lacs is overdue for
payment.
b The value of the assets charged in favour of institutions have
depleted over a period of time and the depletion has not been
ascertained. To the extent of the shortfall, if any, the liability is
unsecured.
c The amount due has been quantified at Rs. 45.38 as per the "Old
Scheme Under Review". However, under the Fresh Restructuring Scheme the
interest payable amounting to Rs. 9.08 is sought to be waived and has
already been written back in the earlier year. The principal amount due
as on 30th June, 2004 amounting to Rs. 36.30 is proposed to be repaid
in 3 equal installments of Rs. 12.10 from the 2nd year of the effective
date. However no such payment has been made.
d SIDBI has filed a petition for winding up on alleged non-payment of
Rs. 54.40 lacs which consist of interest, overdue interest and other
charges, before the Hon''ble Delhi High Court on which stay has been
granted by the Hon''ble Delhi High Court. Provision for such liability
on account of interest, overdue interest, and other charges claimed and
claimable by SIDBI has not been ascertained and provided for due to
waiver of interest sought under the "Fresh Scheme".
* Amount due to banks are secured against the assets financed out of
the said facilities and hypothecated to the bank.
6. (i) The value of the assets charged in favour of banks have depleted
over a period of time and the depletion has not been ascertained. To
the extent of the shortfall, if any, the liability is unsecured.
(ii) PUNJAB & SIND BANK (PSB): As per the Fresh Restructuring Scheme,
the total amount payable to PSB remains quantified at Rs. 901.80 lacs
as on 30th June 2004. (after providing interest @10% p.a., compounded
quarterly from 30th September 1999 till 31st March, 2000 on the
principal debt as on 30.09.1997). Out of this 60% of Rs.901.80 iacs
i.e. Rs.541.08 lacs. shall be payable in 6 equal yearly installments
after one year from the date of approval of the scheme or 1 st
April,2006 whichever is earlier. The balance 40% shall be discharged by
issuing equity shares at any time within 3 years of the effective date
or 1st April, 2006 which ever is earlier. The company has till date
paid/ adjusted Rs. 98.40 lacs and the balance of Rs. 803.40 lacs as on
30th June 2008 is payable as per the Fresh Restructuring Scheme pending
before the Hon''ble Delhi High Court. Pursuant to an earlier agreement
with the bank, from April 1, 2000 till 31 st March 2005, interest at a
compounded half yearly rate of 10% p.a. has been computed at Rs. 395.97
lacs, which has already been paid by way of allotment of equity shades
of Rs. 101- each at a premium of Rs. 20/- on 31 st March 2001. In the
event of default in the payment of interest and principal, the
concessions made by PSB shall stand withdrawn and their claim settled
before the Debt Recovery Tribunal of Rs. 1,217.52 lacs will become
payable with immediate effect. Interest payable from 01.04.2005 to
31.03.2014 is also not provided since a Fresh Restructuring Scheme,
which is subject to the approval of Hon''ble High Court of Delhi, has
been submitted which does not envisage payment of any interest.
Considering the default in payment, the claim of Rs 1,217.52 lacs filed
before the Debt Recovery Tribunal and to the extent of interest,
overdue interest, default charges not provided for net profit for the
year is overstated and cumulative net loss is understated to that
extent.
(iii) Indusind Bank: The amount payable to Indusind Bank after
calculating interest up to March 31,2000 had been quantified at Rs.
916.64 lacs in accordance with the "Old Scheme Under Review". The
company has till date paid/adjusted Rs. 339.64 lacs and the balance of
Rs.577.00 lacs as on 30th June 2008 is also payable as per the Fresh
Restructuring Scheme. Pursuant to an earlier agreement with the bank,
from April 1, 2000 till 31st March 2005, interest at a compounded half
yearly rate of 10% p.a. has been computed at Rs. 300.20 lacs, which
has already been paid by way of allotment of equity shares of Rs. 10/-
each at a premium of Rs. 20/-on 31st March 2001. In the event that the
company fails to pay the interest or principal, the concessions made by
Indusind Bank will be withdrawn and the amount claimed in the Debt
Recovery Tribunal amounting to Rs. 1,042.42 lacs would be payable with
immediate effect. Interest payable from 01.04.2005 to 31.03.2014 is
also not provided since a Fresh Restructuring Scheme, which is subject
to the approval of Hon''ble High Court of Delhi, has been submitted
which does not envisage payment of any interest. In considering the
default in payment the claim of Rs 1,042.42 lacs filed before the Debt
Recovery Tribunal and to the extent of interest, overdue interest,
default charges not provided, net profit for the year is overstated and
cumulative net loss is understated to that extent.
7. FIXED DEPOSITS ACCEPTED
(a) During the year 31" March, 2014 Rs. 2.48 lacs has been paid to
Fixed Deposit holder on compassionate ground after getting approval
from Hon''ble Delhi High court. Interest of Rs. 0.42 lacs has been paid
on the fixed deposits amounted Rs. 0.18 lacs as per the order of
Consumer Forum, Kolkata.
(b) In respect of repayment of outstanding deposits with interest vide
order dated 17.07.98, the Company Law Board had ordered payment of
interest at contracted rates up to the date of maturity and at 10%
thereafter. Due to liquidity problems, the company has not fully
followed the schedule of repayment ordered by the Company Law Board.
However, a Fresh Restructuring Scheme of arrangement for
re-organization of the share capital of the company and for compromise
with its creditors including fixed depositors has been made in which
interest dues will be waived and accordingly provision of interest
payable amounting to Rs. 827.06 lacs has been written back in earlier
years.
(c) The Company has also moved an application before the Hon''ble
Company Law Board, New Delhi on 22nd July 2004 under Regulation 44 of
the Company Law Regulations 1991 proposing a fresh repayment schedule
to fixed depositors of the Company before the Fresh Restructuring
Scheme was filed before the Hon''ble Delhi High Court.
(d) Fixed deposits and bills payable as per information retained on the
computer is Rs.5,642.97 lacs whereas fixed deposits, which also
includes bills payable, as per books, amounts to Rs.5,632.27 lacs and
the difference of Rs. 10.69 lacs is un-reconciled. The company, in
accordance with a subsequently confirmed order of the Hon''ble Company
Law Board dated July 17,1998 had given an option to the creditors of
overdue bills rediscounted to convert their dues into fixed deposits on
due dates retrospectively. Bills rediscounted, including those
converted into fixed deposits, have been reflected under fixed
deposits.
(e) Liability on account of Fixed Deposits received contain certain
deposits which appear prima- facie to be suspect due to either lack of
identification of depositors or no claim or confirmation having been
received by the company. Payment of those deposits that are under a
suspicious category will be made under the proposed Fresh Restructuring
Scheme of arrangement only after the evidence of receipt of money is
established.
(f) Provision for interest on fixed deposits up to March 31,2014
calculated at simple interest @ 10% p.a. in accordance with the order
of The Hon''ble Company Law Board amounting to approx. Rs.9,855.56 lacs
(including Rs. 9,287.99 lacs for the earlier years) has not been made
in view of the "Fresh Restructuring Scheme" pending before the Hon''ble
Delhi High Court wherein the company does not envisage payment of any
interest. To the extent of non- provision of interest @10% as per the
previous CLB order, the current year profits are overstated to the
extent of approximately Rs.564.28 lacs and cumulative net losses are
understated to the extent of approximately Rs. 9,855.56 lacs. The
difference between the contracted rate of interest and rate of interest
@ 10% has also not been ascertained and provided for.
(g) Due to a liquidity crises in the past the minimum liquid assets
@15% of fixed deposits as per RBI directives has not been maintained by
the company. The company has applied to the Reserve Bank of India and
the Company Law Board for exemption from maintaining minimum liquid
assets and payment of penal interest but the disposal of the
application is still pending.
8. SBI Home Finance Ltd.(SBIHF):-
The company has already paid Rs. 290.00 lacs under the Old Scheme and
proposes to allot shares worth Rs. 25.00 lacs for the balance as per
the Fresh Restructuring Scheme in the first year from the effective
date (Effective date means the date of filling of the certified copy of
the order sanctioning the scheme of the Honorable High Court of Delhi
at New Delhi with the Registrar of Companies of Delhi & Haryana). SBIHF
has removed a charge on its assets and therefore the loan is now
categorized as unsecured loan.
9. Inter-Corporate Deposits
The value of inter corporate deposits is Rs 27.17 lacs. Provision for
interest on inter corporate deposits up to 31st March, 2014 amounting
to approximately Rs. 107.22 lacs which includes approximately Rs.100.91
lacs for the earlier years, has not been made in view of the "Fresh
Restructuring Scheme" pending before the Hon''ble High Court of Delhi
wherein the company does not envisage payment of any interest. The
current year interest is Rs 6.32 lacs .To the extent of non-provision
of interest, the current year''s profits are overstated to the extent of
approximately Rs. 6.32 lacs and cumulative net losses are understated
to the extent of approximately Rs 107.22 lacs.
Note6.1 As per the guidelines of Non-Banking Financial Companies
Prudential Norms Directions, 1998 issued and prescribed by Reserve bank
of India, assets and receivables are required to be classified as
NPAand provision for non-performing assets as prescribed is required to
be made. The provision fon non-performing assets as per these
Directions on , inter-corporate deposits , bills receivable and other
long term trade receivable has been made by Rs.2,060.56 lacs during the
year ended 31st March, 2014. Please also refer Note No. 11, 11.2,12 and
21.
Note 10. During the year ended 31st March, 2014 provision has been made
on Employee advaces and other long term advances considered as doubtful
debt by Rs.28.08 lacs.
11. Employees Advances
During the year Provision has been made against the employees advances
upto 100% amounted Rs. 17.69 lacs.
12. Inventory Valuation Method:-
(a) During the year there were no transactions relating to
sale/purchase of stocks/ investment in shares. During the period ended
31 st March, 2014, those shares which were held as bad deliveries have
been removed from the schedule of stock in trade. The same will be
shown when such shares/stock which are termed as bad deliveries are
actually transferred in the name of company.
(b) The inventory of Securities is valued at Market value & Cost which
ever is lower.
(c) For the untraded shares, value has been taken as Re. 1 /= per
Company.
(d) For partly paid-up shares, Re.1 for untraded company hasbeentaken.
(e) Bonus shares forwhich original shares not available is valued at
Re.Zero per shares
13. i) Bank Balance of Rs. 15.16 lacs appearing in the books of
accounts pertaining to 14 Banks were yet to be confirmed by the Banks
as at 31st March, 2014. The same are anticipated to be confirmed by the
said banks.
ii) These are restricted bank balance and cannot be operated with out
getting prior approval of Hon''ble Delhi High Court.
iiii) During the year ended 31-March-2014, provision for bank balances
has been made by Rs. 2.07 against those banks which are non-operated
and balance confirmation has not been received for the same from the
respective banks.
14. Prior period includes Expense of Electricity in the name of ledger
of Water Gas and Electricity expense of office in the books of accounts
of the company and in previous year it includes Consultancy and
Retainership charges.
15. CONTINGENT LIABILITIES & OTHER COMMITMENTS
(a) Claims lodged and contingent liability arising out of suits and
winding up petitions filed against the company not acknowledged as
debts amounts to Rs. 826.38 lacs. There are also other cases filed in
consumer and other courts against the company for which the company is
contingently liable but for which the amount has not been ascertained.
(b) Punjab & Sind bank has filed a recovery suit before the Debt
Recovery Tribunal (DRT) for recovery of Rs. 1217.52 lacs against which
the amount payable to them, as per books is Rs. 803.40 lacs. The
company contends that the dues of the Bank will be settled as per the
fresh restructuring scheme and consequently no provision for the
difference of Rs. 414.12 lacs has been made. Since the company has not
made payment of interest & principal in accordance with the Fresh
Restructuring Scheme filed with the Hon''ble High Court, Rs 1217.52
became payable to PSB. No provision for the difference of Rs. 414.12
lacs has been made by the company.
(c) Induslnd Bank has filed a recovery suit before the Debt Recovery
Tribunal (DRT), of Rs. 1042.42 lacs against which the amount payable to
them as per books is Rs. 577.00 lacs. The company contends that the
dues of the Bank will be settled as per the fresh restructuring scheme
and consequently no provision for the difference of Rs. 465.42 lacs has
been made.
(d) During the year ended 30* June, 2009, the company had received Rs.
100.00 lacs from one of its debtors and reduced the same amount from
his recoverable balance. Subsequently the Hon''ble Punjab and Haryana
Court deemed that payment to be an out of turn payment and asked the
company to deposit the amount. The company had filed a SLP with the
Hon''ble Supreme Court of India which has been dismissed by them.
Therefore the company is liable to deposit the amount mentioned above
which has yet to be deposited.
(e) During the year ended 30* June, 2011 the company''s tenant has filed
a claim of Rs 100.00 lacs against the company due to damages suffered
by the tenant which is pending under arbitration proceedings.
(f) As explained to us, there is a disputed demand of Rs. 152.12 lakhs
and Rs. 141.74 lakhs for the Assessment Year 2009-10 and 2010-11
respectively for payment of income tax under the Income Tax Act, 1961,
which is disputed by the company as the brought forward losses under
the Income Tax Act has not been allowed by the department and
rectification application for deletion of above said two demands has
been filed by the company which is pending before the appropriate
authorities.
(g) There is an award passed by the arbitrator against the company in
the matter of MS Shoes East Limited on May 28,2012 for Rs. 51.28 lacs
i.e. claim amount along with interest of Rs. 307 lacs for an
underwriting given by the company in the year 1995 for the public issue
of M/s MS Shoes East Ltd. The same has been contested by Company before
Hon''ble Delhi High Court.
16. RESTRUCTURING SCHEME
The management for a structured debt repayment had prepared two schemes
of arrangement for reorganization of share capital of the company and
for compromise with its secured and unsecured creditors. Both the
schemes of arrangement envisage a viable, just & equitable settlement
with its secured and unsecured creditors while simultaneously
increasing the risk and stake of the promoters and their shareholding
through fresh infusion of funds by the promoter company.
The company has also moved an application before the Hon''ble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company. The same repayment schedule has been
included in the fresh restructuring scheme filed before the Hon''ble
High Court of Delhi at New Delhi on 24th September 2004.
The implementation of the schemes is subject to the fulfillment of all
the conditions of section 391 to section 394 of the Companies Act and
approval/orders of the Hon''ble Delhi High Court. The Hon''ble Delhi High
Court did not approve the company''s first scheme filed in May 2000,
though approved by the secured and unsecured creditors in their
respective meetings convened pursuant to the orders of the Hon''ble
Court, yet the Hon''ble Court did not accord sanction to the scheme on
technical grounds. An application for review had been filed before the
Hon''ble Delhi High Court on 30* May 2003, which is yet to be listed for
hearing and which is hereinafter, wherever applicable, referred to as
the "old scheme under review". The company intends not to pursue the
review application filed for the old scheme under review before the
Hon''ble Delhi High Court and it is proposed to be withdrawn at an
appropriate stage of the proceedings forthe sanction of "the fresh
scheme".
The company has filed a fresh Scheme of Arrangement for the
reorganization of the share capital of the company and for compromise
with the secured and unsecured creditors of the company, hereinafter
referred to as the "fresh scheme" before the Hon''ble Delhi High Court
at New Delhi on 24* September 2004.
Pursuant to the orders of the Hon''ble Delhi High Court, the unsecured
creditors and debenture holders in their meeting convened under the
Chairpersonship of court appointed chairpersons (retired Judges of
Hon''ble Delhi High Court) on 1st April 2005 and 2nd] April, 2005 have
approved the scheme without any modifications with the requisite
majority. The meeting of the other secured creditors (banks/
institutions) was held on 17th September 2005 and has also approved the
scheme by the requisite majority after considering some modifications
proposed by the Punjab & Sind Bank.
The promoter company has undertaken, subject to sanction of the scheme
by the Hon''ble Delhi High Court, to contribute to Rs. 1,950 Lacs of
which has been already deposited with the Registrar of the Hon''ble
Delhi High Court.
The fresh scheme is conditional upon the following approvals and shall
be deemed to be effective on obtaining the last of the approvals and
the occurrence of the last of the following events: -
i. Sanction of the scheme by the Hon''ble High Court of Delhi under
Sections 391 and 394 of the Act and other applicable provisions of the
Act, Rules and Regulations, as the case may be;
ii. Filing of certified copies of the order of the Hon''ble High Court
of Delhi with the Registrar of Companies (Delhi and Haryana).
The restructured debts of the company for each category of debt is on
the basis of outstandings as envisaged in the fresh scheme filed in the
year 2004 excluding interest not provided for and all liquidated
damages/penal charges and interest on unpaid interest. The "Fresh
Scheme of Arrangement" is drawn on the basis of acceptance of waiver of
payment of past and future interest, penal charges, liquidated damages,
and any other charges, costs and claims etc. except as provided and for
values contained therein which is subject to the approval of the
Hon''ble Delhi High Court.
The accounts of the company have been drawn on the assumption that the
"fresh scheme" will be accepted and implemented. If it is not accepted
and cannot be implemented for any reason the total liability before the
proposed restructuring scheme including those for which no provision
has been made and has been quantified under appropriate heads, shall
become payable.
The fresh scheme is pending before the Hon''ble Delhi High Court as at
31st March, 2014 & there is no change in the status at the time of
adoption of the financials for the period ended 31st March, 2014 by the
Board of Directors.
17. Deposit of Rs 1,950 Lacs by DCM Services Limited
DCM Services Ltd as a promoter has committed to bring in Rs 19.50 Cr as
a promoter contribution upon sanction of their restructuring scheme u/s
391 of the Indian Companies Act, 1956 which is presently pending for
sanction before the Hon''able Delhi High Court.
The Court vide order dated 06.05.2008 has asked DCM Services Limited to
deposit Rs. 1,950 Lacs with the Court and pursuant to the court order,
They have deposited (Rs 500 Lacs on 16.07.2010, Rs 670 Lacs on
18.11.2010, Rs. 390 Lacs on 21.04.2011 & Rs. 390 Lacs on 27.04.2012
aggregating to Rs. 1,950 Lacs on behalf of the promoters with the
Registrar, Hon''ble Delhi High Court. No financial impact of this has
been recorded in the financials of the company for the period ended
31st March, 2014.
18. INCOME TAX
(a) Deferred Tax Assets
In accordance with Accounting Standard-22 issued by The Institute of
Chartered Accountants of India, deferred tax assets on accumulated
depreciation and losses have not been accounted for since as per
certain operational restrictions imposed, the company is unable to
conduct any new business and therefore it is uncertain whether there
will be sufficient future taxable income against which such deferred
tax assets can be realized. Accordingly in view of absence of virtual
certainty of sufficient taxable income in future no provision for
deferred tax has been made.
(b) Tax Provision
The company has not made/retained any provision for income tax during
the year since the company has substantial accumulated/ brought forward
losses from earlieryears.
Notes:
(a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors;
(b) The liability towards gratuity & the earned leave for the period
ended 31st March, 2014, based on actuarial valuation amounting to Rs
1.37 lacs. & Rs. 1.07 lacs have been recognized in the profit & loss
account.
19. GOING CONCERN BASIS
To comply with the directives of the Reserve Bank of India the company
ceased to accept , deposits from September 1997. Despite cessation of
business, substantial accumulated losses, provision for full NPA''s and
interest payable, rejection of the "old scheme under review" and
winding up petition filed by the Reserve Bank of India and various
creditors of the company, the accounts of the company have been
prepared on a "going concern" basis on an assumption & premises made by
the management that
(a) the fresh scheme would be approved by the Hon''ble Delhi High Court,
(b) after approval of the scheme, adequate finances and opportunities
would be available in the foreseeable future to enable the company to
start operating on a profitable basis,
(c) the promoters of the Company have provided letter of support, and
(d) considering the injection of Rs. 1,950 Lacs as promoters quota.
20. BALANCE CONFIRMATION
(a) Balance confirmation of bills receivable and payable, advances
recoverable In cash or in kind, receivables and payables relating to
lease and hire purchase, lease security deposit of which party wise
details are not available. Balance confirmation of inter-corporate
deposits, balance of ex-employees, margin against L/C, loans from
institutions, banks, and other receivables and payables have not been
received from the parties/persons concerned. In the absence of balance
confirmation the closing balances as per books of accounts have been
incorporated in the final accounts and have been shown, unless
otherwise stated by the management about its recoverability in the
financials including considering the NPA Provisions, are good for
recovery/payment. Time barred debts under the Limitations Act have not
been separately ascertained and written off or provided for. In the
absence of such confirmation & corresponding reconciliation, the
financial impact cannot be ascertained.
21. Payment to Directors
The company has obtained the approval for payment of managerial
remuneration from Ministry of Corporate Affairs, Government of India
for the amount not exceeding Rs. 3.99 lacs per annum forthe period of
three years starting from 01-12-2011 to 30-11-2014.
22. The company''s application to RBI for certificate of registration
(CoR) as a NBFC had been rejected by the RBI in year 2004. The company
had made an appeal to the Appellate Authority which directed the RBI to
keep its order of rejection of CoR in abeyance for a period of six
months during which the Company shall file a revised scheme for
restructuring. RBI has preferred an appeal before the Hon''ble Delhi
High Court against the order of the appellate authority, which is still
pending.
23. The company had no outstanding dues to suppliers under The Micro,
Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at
March 31,2014.
24. Figures for the previous have been regrouped and recast wherever
necessary.The figures have been given in lacs.
Mar 31, 2013
1. CONTINGENT LIABILITIES & OTHER COMMITMENTS
(a) Claims lodged and contingent liability arising out of suits and
winding up petitions filed against the company not acknowledged as
debts amounts to Rs 868 18 lacs. There are also other cases filed in
consumer and other courts against the company for which the company is
contingently liable but for which the amount has not been ascertained.
(b) Punjab & Sind bank has filed a recovery suit before the Debt
Recovery Tribunal (DRT) for recovery of Rs. 1217.52 lacs against which
the amount payable to them, as per books is Rs. 803.40 lacs. The
company contends that the dues of the Bank will be settled as per the
fresh restructuring scheme and consequently no provision for the
difference of Rs. 414.12 lacs has been made. Since the company has not
made payment of interest & principal in accordance with the Fresh
Restructuring Scheme filed with the Hon''ble High Court, Rs 1217.52
became payable to PSB. No provision for the difference of Rs. 414.12
lacs has been made by the company.
(c) IndusInd Bank has filed a recovery suit before the Debt Recovery
Tribunal (DRT), of Rs. 1042. 42 lacs against which the amount payable
to them as per books is Rs. 577.00 lacs. The company contends that the
dues of the Bank will be settled as per the fresh restructuring scheme
and consequently no provision for the difference of Rs. 465.42 lacs has
been made.
(d) During the year ended 30th June, 2009, the company had received Rs.
100.00 lacs from one of its debtors and reduced the same amount from
his recoverable balance. Subsequently the Hon''ble Punjab and Haryana
Court deemed that payment to be an out of turn payment and asked the
company to deposit the amount. The company had filed a SLP with the
Hon''ble Supreme Court of India which has been dismissed by them.
Therefore the company is liable to deposit the amount mentioned above
which has yet to be deposited.
(e) During the year ended 30th June, 2011 the company''s tenant has
filed a claim of Rs 100.00 lacs against the company due to damages
suffered by the tenant which is pending under arbitration proceedings.
(f) There is a disputed a demand of Rs. 152.12 lakhs and Rs. 141.74
lakhs for the Assessment Year 2009-10 and 2010-11 respectively for
payment of income tax under the Income Tax Act, 1961, which is disputed
by the company as the brought forward losses under the Income Tax Act
has not been allowed by the department and rectification application
for deletion of above said two demands has been filed by the company
which is pending before the appropriate authorities.
(g) There is an award passed by the arbitrator against the company in
the matter of MS Shoes East Limited on May 28, 2012 for Rs. 51.28 lacs
i.e. claim amount along with interest of Rs. 307 lacs for an
underwriting given by the company in the year 1995 for the public issue
of M/s MS Shoes East Ltd. The same has been contested by Company before
Hon''ble Delhi High Court.
2 RESTRUCTURING SCHEME
The management for a structured debt repayment had prepared two schemes
of arrangement for reorganization of share capital of the company and
for compromise with its secured and unsecured creditors. Both the
schemes of arrangement envisage a viable, just & equitable settlement
with its secured and unsecured creditors while simultaneously
increasing the risk and stake of the promoters and their shareholding
through fresh infusion of funds by the promoter company.
The company has also moved an application before the Hon''ble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company. The same repayment schedule has been
included in the fresh restructuring scheme filed before the Hon''ble
High Court of Delhi at New Delhi on 24th September 2004.
The implementation of the schemes is subject to the fulfillment of all
the conditions of section 391 to section 394 of the Companies Act and
approval/orders of the Hon''ble Delhi High Court. The Hon''ble Delhi High
Court did not approve the company''s first scheme filed in May 2000,
though approved by the secured and unsecured creditors in their
respective meetings convened pursuant to the orders of the Hon''ble
Court, yet the Hon''ble Court did not accord sanction to the scheme on
technical grounds. An application for review had been filed before the
Hon''ble Delhi High Court on 30th May 2003, which is yet to be listed
for hearing and which is hereinafter, wherever applicable, referred to
as the "old scheme under review". The company intends not to pursue the
review application filed for the old scheme under review before the
Hon''ble Delhi High Court and it is proposed to be withdrawn at an
appropriate stage of the proceedings for the sanction of "the fresh
scheme".
The company has filed a fresh Scheme of Arrangement for the
reorganization of the share capital of the company and for compromise
with the secured and unsecured creditors of the company, hereinafter
referred to as the "fresh scheme" before the Hon''ble Delhi High Court
at New Delhi on 24th September 2004.
Pursuant to the orders of the Hon''ble Delhi High Court, the unsecured
creditors and debenture holders in their meeting convened under the
Chairpersonship of court appointed chairpersons (retired Judges of
Hon''ble Delhi High Court) on 1st April 2005 and 2nd April, 2005 have
approved the scheme without any modifications with the requisite
majority. The meeting of the other secured creditors (banks/
institutions) was held on 17th September 2005 and has also approved the
scheme by the requisite majority after considering some modifications
proposed by the Punjab & Sind Bank.
The promoter company has undertaken, subject to sanction of the scheme
by the Hon''ble Delhi High Court, to contribute to Rs. 19.50 crores of
which Rs.15.60 crores were deposited with the Registrar of the Hon''ble
Delhi High Court Registrar, as per court order by the promoter group,
and the balance amount of Rs 3.90 crores has been deposited on 27th
April, 2012.
The fresh scheme is conditional upon the following approvals and shall
be deemed to be effective on obtaining the last of the approvals and
the occurrence of the last of the following events: -
i. Sanction of the scheme by the Hon''ble High Court of Delhi under
Sections 391 and 394 of the Act and other applicable provisions of the
Act, Rules and Regulations, as the case may be;
ii. Filing of certified copies of the order of the Hon''ble High Court
of Delhi with the Registrar of Companies (Delhi and Haryana).
The restructured debts of the company for each category of debt is on
the basis of outstandings as envisaged in the fresh scheme filed in the
year 2004 excluding interest not provided for and all liquidated
damages/penal charges and interest on unpaid interest. The "Fresh
Scheme of Arrangement" is drawn on the basis of acceptance of waiver of
payment of past and future interest, penal charges, liquidated damages,
and any other charges, costs and claims etc. except as provided and for
values contained therein which is subject to the approval of the
Hon''ble Delhi High Court.
The accounts of the company have been drawn on the assumption that the
"fresh scheme" will be accepted and implemented. If it is not accepted
and cannot be implemented for any reason the total liability before the
proposed restructuring scheme including those for which no provision
has been made and has been quantified under appropriate heads, shall
become payable.
The fresh scheme is pending before the Hon''ble Delhi High Court as at
31st March, 2013 & there is no change in the status at the time of
adoption of the financials for the period ended 31st March, 2013 by the
Board of Directors.
3. Deposit of Rs 19.50 Crore by DCM Services Limited
DCM Services Ltd as a promoter has committed to bring in Rs 19.50 Cr as
a promoter contribution upon sanction of their restructuring scheme u/s
391 of the Indian Companies Act, which is presently pending for
sanction before the Hon''able Delhi High Court.
The Court vide order dated 06.05.2008 has asked DCM Services Limited to
deposit Rs. 19.50 crores with the Court and pursuant to the court
order, They have deposited (Rs 5.00 crores on 16.07.2010, Rs 6.70
crores on 18.11.2010, Rs. 3.90 crores on 21.04.2011 & Rs. 3.90 on
27.04.2012 aggregating to Rs. 19.50 crores on behalf of the promoters
with the Registrar, Hon''ble Delhi High Court. No financial impact of
this has been recorded in the financials of the company for the period
ended 31st March, 2013.
4. INCOME TAX
(a) Deferred Tax Assets
Currently the main source of income of the company constitutes only
interest on fixed deposits and rental income. However, against rental
income auditors have qualified our independent auditor''s report on the
basis of non-provisioning of doubtful debts of rent receivable.
Moreover income tax demand for previous years was raised by income tax
department against disallowance of brought forward losses and the same
is still under dispute. After considering the above mentioned facts and
in view of absence of virtual certainty of sufficient taxable income in
future no provision for deferred tax has been made
(b) Tax Provision
The company has not made/retained any provision for income tax during
the year since the company has substantial accumulated/ brought forward
losses from earlier years.
5. EMPLOYEE BENEFITS
(a) Defined Contribution Plans:
The Company has recognized the contribution/liability in the profit &
loss account for the financial year 2012-13.
(b) Defined Benefit Plans & Other Long Term Benefits:
The following disclosures are made in accordance with AS 15 (Revised)
pertaining to Defined Benefit Plans and Other Long Term Benefits:
Notes:
(a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors;
(b) The liability towards gratuity & the earned leave for the period
ended 31st March, 2013, based on actuarial valuation amounting to Rs
1.01 lacs. & Rs. 0.67 lacs have been recognized in the profit & loss
account.
6. GOING CONCERN BASIS
To comply with the directives of the Reserve Bank of India the company
ceased to accept deposits from September 1997. Despite cessation of
business, substantial accumulated losses, non-provision for full NPA''s
and interest payable, rejection of the "old scheme under review" and
winding up petition filed by the Reserve Bank of India and various
creditors of the company, the accounts of the company have been
prepared on a "going concern" basis on an assumption & premises made by
the management that
(a) the fresh scheme would be approved by the Hon''ble Delhi High Court,
(b) adequate finances and opportunities would be available in the
foreseeable future to enable the company to start operating on a
profitable basis,
(c) the promoters of the Company have provided letter of support, and
(d) injection of Rs. 19.50 crores as promoters quota.
7. BALANCE CONFIRMATION
(a) Balance confirmation of bills receivable and payable, advances
recoverable in cash or in kind, receivables and payables relating to
lease and hire purchase, lease security deposit of which party wise
details are not available. Balance confirmation of inter-corporate
deposits, balance of ex-employees, margin against L/C, loans from
institutions, banks, and other receivables and payables have not been
received from the parties/persons concerned. In the absence of balance
confirmation the closing balances as per books of accounts have been
incorporated in the final accounts and have been shown, unless
otherwise stated by the management about its recoverability in the
financials including considering the NPA Provisions, are good for
recovery/payment. Time barred debts under the Limitations Act have not
been separately ascertained and written off or provided for. In the
absence of such confirmation & corresponding reconciliation, the
financial impact cannot be ascertained.
8. Payment to Directors
The company has obtained the approval for payment of managerial
remuneration from Ministry of Corporate Affairs, Government of India
for the amount not exceeding Rs. 3.99 lacs per annum for the period of
three years starting from 01-12-2011 to 30-11-2014.
9. The company''s application to RBI for certificate of registration
(CoR) as a NBFC had been rejected by the RBI in year 2004. The company
had made an appeal to the Appellate Authority which directed the RBI to
keep its order of rejection of CoR in abeyance for a period of six
months during which the Company shall file a revised scheme for
restructuring. RBI has preferred an appeal before the Hon''ble Delhi
High Court against the order of the appellate authority, which is still
pending.
10. The company had no outstanding dues to suppliers under The Micro,
Small and Medium enterprises Development Act, 2006, (MSMED Act) as at
March 31, 2013.
11. Previous Years Figures
Figures for the previous year have been regrouped and recast wherever
necessary. However, due to the difference in the length of the
previous period which consist of nine months & and the current year
which consist of 12 months, the figure of the current year in the
statement of profit & loss are not comparable with figures of previous
period.
Mar 31, 2012
1.1 Capital Reserves
Rs. 193.87 lacs in the capital reserve account consists of surpluses
realized from settlement with the debentures and other liabilities not
payable, which in the opinion of the management have been transferred
to Capital Reserve since these amounts do not relate to trading
activities.
1.2 Debenture Redemption Reserve
Debenture Redemption Reserve for Series 'B' has not been created
during the year in view of the carry forward losses suffered by the
company in the past.
1.3 Special Reserve
In the year 1996-97, the RBI under the clause 45 IC has made it
manadatory for NBFC's to create a reserve of at least 20% before
declaration of dividend.
2.1 As per consent letters received, expenditure incurred/repayment
made by the company amounting to Rs. 549.72 lacs funded by the group
companies till June.2007, have been credited to the Share Application
Account. Company has passed special resolution to allot such shares.
However the same is subject to sanction of Revised Restructuring Scheme
by the Hon'ble Delhi High Court.
3.1.a During the year Rs. 1.59 Lacs has been paid to debenture holder
on compassionate grounds after getting approval from Hon'ble Delhi High
court.
3.1.b Scheme 'A' Series
The company had allotted the Debenture 'A' series on 28th February,
1996 and 23rd September 1996. Subject to Note 4.1 (d) these debentures
are secured against mortgage / hypothecation / charge on assets
financed out of the proceeds of these debentures. The outstanding
debentures of Rs.8.50 Lacs were overdue as on March 31, 2012.
3.1.c Scheme 'B' Series
Debenture 'B' Series were allotted on 5th November, 1996. and subject
to Note 4.1 (d) are secured against hypothecation / charge on land and
premises situated at Mouje Pirangut, Taluka Mulshi, Distt Pune in the
State of Maharashtra alongwith all buildings, structures thereon and
all plant and machinery, spares, tools, accessories and other movables
of the Company, both present and future, whether installed or not. The
total amount of debentures alloted were Rs 2818.04 lacs and matured for
redemption on 5th May 1998. Out of total debentures alloted amounting
to Rs 2818.04 lacs,debentures of Rs 270.88 lacs have been redeemed upto
March 31,2012. The remaning debentures as at March 31, 2012 in the
'B' series amounting to Rs 2547.16 lacs consist of the following:-
The company proposes to vary the terms of debentures through the scheme
of arrangement for reorganation of share capital of the company and for
compromise with its secured and unsecured creditors. 4.1.d The value
of assets charged in favour of debentures has been depleted over a
period of time but the depletion has not been ascertained. To the
extent of shortfall, if any, the liability is unsecured.
3.1.e A supplementary trust deed for giving effect to the proposed
repayment plans as provided in Clause 44 of the Trust deed has not been
prepared by the trustees so far.
3.1.f Provision of interest on debentures up to 31st March, 2012
calculated @ 10% p.a. of simple interest as per renewal offer letter of
1998 on 19.5% Debenture "B" Series and regular interest on Debenture
"A" Series amounting to approximately Rs. 3,546.52 lacs has not been
provided since a Fresh Restructuring Scheme that is subject to the
approval of the Hon'ble High Court of Delhi has been submitted which
does not envisage payment of any interest. To the extent of the
non-provision of interest calculated as per renewal offer letter of
1998, and considering the current year interest of Rs. 192.66, the
current period profits are overstated to the extent of Rs. 192.66
lacs. and cumulative net losses are understated to the extent of Rs.
3,546.52 lacs. The difference between the original contracted interest
@ 19.5% and as per offer letter @ 10% has also not been ascertained and
provided for pending approval of the fresh scheme. To the extent of
interest of Rs. 3546.52 lacs not provided cumulative net loss is
understated.
3.1.g.(i) The Central Bank of India, Mumbai, Trustees for the
Non-Convertible Debentures B-Series have filed a suit for recovery of
Rs. 4,423.86 lacs on 14th October, 1999 before the Hon'ble Mumbai High
Court. As against the claim of Rs. 4,423.86 lacs by The Central Bank of
India, Mumbai, Trustees for The Non-Convertible Debentures "B" Series,
Rs. 2547.16 lacs on account of principal and interest is reflected in
the books as on date. In view of the Fresh Restructuring Scheme seeking
waiver of interest payable to debenture holders, no provision has been
made for the difference between the claim made by the Central Bank of
India and the liability as per the books and to this extent the
cumulative net losses of Rs. 1,876.70 lacs is understated.
3.1.g.(ii) The Hon'ble Mumbai High Court vide its interim order dated
24th December, 1999 has passed an order that all receipts from
hypothecated assets shall be deposited with the trustees in a separate
bank account except for amounts utilized as per orders of The Reserve
Bank of India and the Company Law Board.
3.1.g.(iii) The suits filed by the Central Bank of India before the
Hon'ble Mumbai High Court has been stayed by Hon'ble High Court of
Delhi vide order dated 14 September 2005 on application made by the
company and there is no change in the status as at 31st March, 2012.
3.2.a (i) Hypothecation / charge on assets financed out of the said
loan.
(ii) The aforesaid amount outstanding Rs. 36.30 lacs is overdue for
payment.
3.2.b The value of the assets charged in favour of institutions have
depleted over a period of time and the depletion has not been
ascertained. To the extent of the shortfall, if any, the liability is
unsecured.
3.2.c The amount due has been quantified at Rs. 45.38 lacs as per the
"Old Scheme Under Review". However, under the Fresh Restructuring
Scheme the interest payable amounting to Rs. 9.08 lacs is sought to be
waived and has already been written back in the earlier year. The
principal amount due as on 30th June, 2004 amounting to Rs. 36.30 lacs
is proposed to be repaid in 3 equal installments of Rs. 12.10 lacs from
the 2nd year of the effective date. However no such payment has been
made.
3.2.d SIDBI has filed a petition for winding up on alleged non-payment
of Rs. 54.40 lacs which consist of interest, overdue interest and other
charges, before the Hon'ble Delhi High Court on which stay has been
granted by the Hon'ble Delhi High Court. Provision for such liability
on account of interest, overdue interest, and other charges claimed and
claimable by SIDBI has not been ascertained and provided for due to
waiver of interest sought under the "Fresh
3.3.1 The value of the assets charged in favour of banks have depleted
over a period of time and the depletion has not been ascertained. To
the extent of the shortfall, if any, the liability is unsecured.
3.3.2 PUNJAB & SIND BANK (PSB): As per the fresh Restructuring scheme,
the total amount payable to PSB remains quantified at Rs 901..80 lakhs
as on 30th june 2004, (after providing interest @ 10% p.a , compounded
quarterly from 30th Septemper 1999 till 31st March, 2000 on the
principal debt as on 30.09.1997). Out of this 60% of Rs 901.80 lacs
I.e. Rs 541.08 lacs. Shall be payable in 6 equal yearly installments
after one year from the date of approval of the scheme or 1st April ,
2006 whichever is earliar.The balance 40% shall be discharged by
issuing equity shares at any time within 3 years of the effective date
or 1st April , 2006 which ever is earliar. The company has till date
paid / adjusted Rs 98.40 lacs and the balance of Rs 803.40 lacs as on
30th June 2008 is payable as per the Fresh Restructuring Scheme pending
before the Hon'ble Delhi High Court. Pursuant as per the Fresh
Retructuring Scheme pending before the Hon'ble Delhi High Court.
Pursuant to an earliar agreement with the bank , from April 1, 2004,
2000 till 31st March 2005, interest at a compounded half yearly rate of
10% p.a has been computed at Rs 395.97 lakhs , which has already been
paid by way of alloment of equity shares of Rs, 10/- each at a premium
of Rs 20/- on 31st March 2001. In the event of default in the payment
of interest and principal, the concessions made by PSB shall stand
withdrawn and their claim settled before the Debt Recovery Tribunal of
Rs 1217.52 lakhs will become payable with immediate effect Interest
payable from 01.04.2005 to 31.03.2012 is also , not provided since a
Fresh Restructuring Scheme , which is subject to the approval of
Hon'ble High Court of Delhi , has been submitted which does not
envisage payment of any interest . Considering the default in payment ,
claim of Rs 1217.52 filed before the the Debt Recovery Tribunal and to
the extent of interest , overdue interst , default charges not provided
for net profit for the year is overstated and cumulative net loss is
understated to that extent.
3.3.3 Indusind Bank: The amount payable to Indusind Bank after
calculating interest up to March 31, 2000 had been quantified at Rs.
916.64 lakhs in accordance with the "Old Scheme Under Review". The
company has till date paid/adjusted Rs. 339.64 lakhs and the balance of
Rs.577.00 lacs as on 30th June 2008 is also payable as per the Fresh
Restructuring Scheme. Pursuant to an earlier agreement with the bank,
from April 1, 2000 till 31st March 2005, interest at a compounded half
yearly rate of 10% p.a. has been computed at Rs. 300.20 lakhs, which
has already been paid by way of allotment of equity shares of Rs. 10/-
each at a premium of Rs. 20/- on 31st March 2001. In the event that the
company fails to pay the interest or principal, the concessions made by
Indusind Bank will be withdrawn and the amount claimed in the Debt
Recovery Tribunal amounting to Rs. 1042.42 lakhs would be payable with
immediate effect. Interest payable from 01.04.2005 to 31.03.2012 is
also not provided since a Fresh Restructuring Scheme, which is subject
to the approval of Hon'ble High Court of Delhi, has been submitted
which does not envisage payment of any interest. In considering the
default in payment the claim of Rs 1042.42 filed before the Dept
Recovery Tribunal and to the extent of interest , overdue interest ,
default charges not provided , net profit for the year is overstated
and cumulative net loss is understated to that extent.
3.4 FIXED DEPOSITS ACCEPTED
(a) During the year, Rs.3.25 Lacs has been paid to Fixed Deposit holder
on compassionate ground after getting approval from Hon'ble Delhi High
court.
(b) In respect of repayment of outstanding deposits with interest vide
order dated 17.07.98, the Company Law Board had ordered payment of
interest at contracted rates up to the date of maturity and at 10%
thereafter. Due to liquidity problems, the company has not fully
followed the schedule of repayment ordered by the Company Law Board.
However, a Fresh Restructuring Scheme of arrangement for
re-organization of the share capital of the company and for compromise
with its creditors including fixed depositors has been made in which
interest dues will be waived and accordingly provision of interest
payable amounting to Rs. 827.06 lacs has been written back in earlier
years.
(c) The Company has also moved an application before the Hon'ble
Company Law Board, New Delhi on 22nd July 2004 under Regulation 44 of
the Company Law Regulations 1991 proposing a fresh repayment schedule
to fixed depositors of the Company before the Fresh Restructuring
Scheme was filed before the Hon'ble Delhi High Court.
(d) Fixed deposits and bills payable as per information retained on the
computer is Rs.5645.45 lacs whereas fixed deposits, which also includes
bills payable, as per books, amounts to Rs.5634.75 lacs and the
difference of Rs. 10.70 lacs is un-reconciled. The company, in
accordance with a subsequently confirmed order of the Hon'ble Company
Law Board dated July 17, 1998 had given an option to the creditors of
overdue bills rediscounted to convert their dues into fixed deposits on
due dates retrospectively. Bills rediscounted, including those
converted into fixed deposits, have been reflected under fixed
deposits.
(e) Liability on account of Fixed Deposits received contain certain
deposits which appear prima- facie to be suspect due to either lack of
identification of depositors or no claim or confirmation having been
received by the company. Payment of those deposits that are under a
suspicious category will be made under the proposed Fresh Restructuring
Scheme of arrangement only after the evidence of receipt of money is
established.
(f) Provision for interest on fixed deposits up to March 31, 2012
calculated at simple interest @ 10% p.a. in accordance with the order
of The Hon'ble Company Law Board amounting to approx. Rs.8,723.45 lacs
(including approximately Rs. 8,297.92 lacs for the earlier years) has
not been made in view of the "Fresh Restructuring Scheme" pending
before the Hon'ble Delhi High Court wherein the company does not
envisage payment of any interest. To the extent of non-provision of
interest @10% as per the previous CLB order, the current year profits
are overstated to the extent of approximately Rs.425.53 lacs and
cumulative net losses are understated to the extent of approximately
Rs.8,723.45 lacs. The difference between the contracted rate of
interest and rate of interest @ 10% has also not been ascertained and
provided for.
(g) Due to a liquidity crises in the past the minimum liquid assets
@15% of fixed deposits as per RBI directives has not been maintained by
the company. The company has applied to the Reserve Bank of India and
the Company Law Board for exemption from maintaining minimum liquid
assets and payment of penal interest but the disposal of the
application is still pending.
3.5 SBI Home Finance Ltd.(SBIHF): -
The company has already paid Rs. 2.90 crores under the Old Scheme and
proposes to allot shares worth Rs. 25 lakhs for the balance as per the
Fresh Restructuring Scheme in the first year from the effective date
(Effective date means the date of filling of the certified copy of the
order sanctioning the scheme of the Honorable High Court of Delhi at
New Delhi with the Registrar of Companies of Delhi & Haryana). SBIHF
has removed a charge on its assets and
3.6 Inter-Corporate Deposits
The value of inter corporate deposits is Rs 27.17 Lacs. Provision for
interest on inter corporate deposits up to 31st March, 2012 amounting
to approximately Rs.94.59 lacs which includes approximately Rs.89.86
lacs for the earlier years, has not been made in view of the "Fresh
Restructuring Scheme" pending before the Hon'ble High Court of Delhi
wherein the company does not envisage payment of any interest. The
current year interest is Rs 4.73 Lacs.To the extent of non-provision of
interest, the current year's profits are overstated to the extent of
approximately Rs.4.73 lacs and cumulative net losses are understated to
the extent of approximately Rs 94.59 lacs.
4.1 Unreconciled Sub Ledger Balances
To overcome past deficiencies a new accounting software package was
introduced in an earlier year on the basis of which accounts have been
drawn. However, the aggregate of un- reconciled opening balances of
various sub-ledgers with general ledger and subsequently other
rectification entries/ unidentified balances requiring further analysis
had been transferred to a separate account which at the end of the year
is Rs.197.09 lacs debit and Rs. 363.66 lacs credit and the net balance
of Rs. 166.57 lacs has been shown as a other long term liabilities.
5.1 Provision for Non Performing Assets
As per Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions, 1998 assets and receivables are required to be classified
as NPA and provision for non-performing assets as prescribed is
required to be made. The provision for non-performing assets as per
these Directions on , inter-corporate deposits , bills receivable,
employees advances , share division customer account, others long term
& advances required to be provided amounted to approx. Rs. 470.22 lacs.
The provision for NPA till 31st March 2012 is Rs. Nil. To the extent of
said provision of NPA Rs.470.22 lacs( approx) the cumulative net loss
reflected is understated & assets are overstated.
5.2 Share Division Customer Account
During the year there were no transactions relating to sale/purchase of
stocks/ investment in shares. In the absence of a complete
reconciliation/confirmation of the share division customer account Rs.
164.96 Lacs has been shown as other loans & advances, the
recoverability of which is uncertain. The Company has kept with for
itself a few shares & securities as a security received from its
customer against the recoverable amount of Rs 164.96 Lacs, which are
under reconciliation & confirmation.
6.1 Provision for Non Performing Assets
As per Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions, 1998 assets and receivables are required to be classified
as NPA and provision for non-performing assets as prescribed is
required to be made. The provision for non-performing assets as per
these Directions on trade receivables required to be provided amounted
to approx. Rs.2209.95 lacs (Net of Security received of Rs 601.93).
However, provision of NPA of Rs.1,556.79 lacs has been made. To the
extent of non-provision of NPA of Rs.653.16 lacs(approx), the
cumulative net loss reflected is understated. & assets are overstated.
7.1 Inventory Valuation Method:-
(a) During the year there were no transactions relating to
sale/purchase of stocks/ investment in shares. During the period ended
31st March, 2012, those shares which were held as bad deliveries have
been removed from the schedule of stock in trade. The same will be
shown when such shares/stock which are termed as bad deliveries are
actually transferred in the name of company.
(b) The inventory of Securities is valued at Market value & Cost which
ever is lower.
(c) For the untraded shares, value has been taken as Re.1/= per
Company.
(d) For partly paid-up shares, Re.1 for untraded company has been
taken.
(e) Bonus shares for which original shares not available is valued at
Re. Zero per shares
7.2 Bank Balance of Rs. 2.79 lacs appearing in the books of accounts
pertaining to 17 Banks were yet to be confirmed by the Banks as at 31st
March, 2012. The same are anticipated to be confirmed by the said
banks..
7.3 These are restricted bank balance and cannot be operated with out
getting prior approval of Hon'ble Delhi High Court.
23. CONTINGENT LIABILITIES & OTHER COMMITMENTS
(a) Claims lodged and contingent liability arising out of suits and
winding up petitions filed against the company not acknowledged as
debts amounts to Rs. 868.18 lacs. There are also other cases filed in
consumer and other courts against the company for which the company is
contingently liable but for which the amount has not been ascertained.
(b) Punjab & Sind bank has filed a recovery suit before the Debt
Recovery Tribunal (DRT) for recovery of Rs. 1217.52 lacs against which
the amount payable to them, as per books is Rs. 803 40 lacs. The
company contends that the dues of the Bank will be settled as per the
fresh restructuring scheme and consequently no provision for the
difference of Rs. 414.12 lacs has been made. Since the company has not
made payment of interest & principal in accordance with the Fresh
Restructuring Scheme filed with the Hon'ble High Court, Rs 1217.52 lacs
became payable to PSB. No provision for the difference of Rs. 414.12
lacs has been made by the company.
(c) IndusInd Bank has filed a recovery suit before the Debt Recovery
Tribunal (DRT), of Rs. 1042.42 lacs against which the amount payable
to them as per books is Rs. 577.00 lacs. The company contends that the
dues of the Bank will be settled as per the fresh restructuring scheme
and consequently no provision for the difference of Rs. 465.42 lacs has
been made.
(d) During the year ended 30th June, 2009, the company had received Rs.
100.00 lacs from one of its debtors and reduced the same amount from
his recoverable balance. Subsequently the Hon'ble Punjab and Haryana
Court deemed that payment to be an out of turn payment and asked the
company to deposit the amount. The company had filed a SLP with the
Hon'ble Supreme Court of India which has been dismissed by them.
Therefore the company is liable to deposit the amount mentioned above
which has yet to be deposited.
(e) During the preceding financial year ended 30th June, 2011 the
company's tenant has filed a claim of Rs 100.00 lacs against the
company due to damages suffered by the tenant which is pending
arbitration before Mr. S.K. Tandon , Sole Arbitrator .
(f) There is a disputed a demand of Rs152.12 lakhs for payment of
income tax under the Income Tax Act, 1961, which is disputed by the
company and is pending before the appropriate authorities.
(g) There is an award passed by the arbitrator against the company in
the matter of MS Shoes East Limited on May 28, 2012 for Rs. 51.28 lacs
i.e. claim amount along with interest of Rs. 3.07 crores for an
underwriting given by the company in the year 1995 for the public issue
of M/s MS Shoes East Ltd. The same has been contested by Company before
Hon'ble Delhi High Court .
8. RESTRUCTURING SCHEME
The management for a structured debt repayment had prepared two schemes
of arrangement for reorganization of share capital of the company and
for compromise with its secured and unsecured creditors. Both the
schemes of arrangement envisage a viable, just & equitable settlement
with its secured and unsecured creditors while simultaneously
increasing the risk and stake of the promoters and their shareholding
through fresh infusion of funds by the promoter company.
The company has also moved an application before the Hon'ble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company. The same repayment schedule has been
included in the fresh restructuring scheme filed before the Hon'ble
High Court of Delhi at New Delhi on 24th September 2004.
The implementation of the schemes is subject to the fulfillment of all
the conditions of section 391 to section 394 of the Companies Act and
approval/orders of the Hon'ble Delhi High Court. The Hon'ble Delhi
High Court did not approve the company's first scheme filed in May
2000, though approved by the secured and unsecured creditors in their
respective meetings convened pursuant to the orders of the Hon'ble
Court, yet the Hon'ble Court did not accord sanction to the scheme on
technical grounds. An application for review had been filed before the
Hon'ble Delhi High Court on 30th May 2003, which is yet to be listed
for hearing and which is hereinafter, wherever applicable, referred to
as the "old scheme under review". The company intends not to pursue the
review application filed for the old scheme under review before the
Hon'ble Delhi High Court and it is proposed to be withdrawn at an
appropriate stage of the proceedings for the sanction of "the fresh
scheme".
The company has filed a fresh Scheme of Arrangement for the
reorganization of the share capital of the company and for compromise
with the secured and unsecured creditors of the company, hereinafter
referred to as the "fresh scheme" before the Hon'ble Delhi High Court
at New Delhi on 24th September 2004.
Pursuant to the orders of the Hon'ble Delhi High Court, the unsecured
creditors and debenture holders in their meeting convened under the
Chairpersonship of court appointed chairpersons (retired Judges of
Hon'ble Delhi High Court) on 1st April 2005 and 2nd April, 2005 have
approved the scheme without any modifications with the requisite
majority. The meeting of the other secured creditors (banks/
institutions) was held on 17th September 2005 and has also approved the
scheme by the requisite majority after considering some modifications
proposed by the Punjab & Sind Bank.
The promoter company has undertaken, subject to sanction of the scheme
by the Hon'ble Delhi High Court, to contribute to Rs. 19.50 crores of
which Rs.15.60 crores were deposited with the Registrar of the Hon'ble
Delhi High Court Registrar, as per court order by the promoter group,
and the balance amount of Rs 3.90 crores has been deposited on 27th
April, 2012.
The fresh scheme is conditional upon the following approvals and shall
be deemed to be effective on obtaining the last of the approvals and
the occurrence of the last of the following events: - i. Sanction of
the scheme by the Hon'ble High Court of Delhi under Sections 391 and
394 of the
Act and other applicable provisions of the Act, Rules and Regulations,
as the case may be;
ii. Filing of certified copies of the order of the Hon'ble High Court
of Delhi with the Registrar of Companies (Delhi and Haryana).
The restructured debts of the company for each category of debt is on
the basis of outstandings as envisaged in the fresh scheme filed in the
year 2004 excluding interest not provided for and all liquidated
damages/penal charges and interest on unpaid interest. The "Fresh
Scheme of Arrangement" is drawn on the basis of acceptance of waiver of
payment of past and future interest, penal charges, liquidated damages,
and any other charges, costs and claims etc. except as provided and for
values contained therein which is subject to the approval of the
Hon'ble Delhi High Court.
The accounts of the company have been drawn on the assumption that the
"fresh scheme" will be accepted and implemented. If it is not accepted
and cannot be implemented for any reason the total liability before the
proposed restructuring scheme including those for which no provision
has been made and has been quantified under appropriate heads, shall
become payable.
The fresh scheme is pending before the Hon'ble Delhi High Court as at
31st March, 2012 & there is no change in the status at the time of
adoption of the financials for the period ended 31st March, 2012 by the
Board of Directors.
9. DEPOSIT OF RS 19.50 CRORE BY DCM SERVICES LIMITED
DCM Services Ltd as a promoter has committed to bring in Rs 19.50 Cr as
a promoter contribution upon sanction of their restructuring scheme u/s
391 of the Indian Companies Act, which is presently pending for
sanction before the Hon'able Delhi High Court.
The Court vide order dated 06.05.2008 has asked DCM Services Limited to
deposit Rs. 19.50 crores with the Court and pursuant to the court
order, They have deposited (Rs 5.00 crores on 16.07.2010, Rs 6.70
crores on 18.11.2010, Rs. 3.90 crores on 21.04.2011 & Rs. 3.90 on
27.04.2012) aggregating to Rs. 19.50 crores on behalf of the promoters
with the Registrar, Hon'ble Delhi High Court. No financial impact of
this has been recorded in the financials of the company for the period
ended 31st March, 2012.
10. INCOME TAX
(a) Deferred Tax Assets
In accordance with Accounting Standard-22 issued by The Institute of
Chartered Accountants of India, deferred tax assets on accumulated
depreciation and losses have not been accounted for since as per
certain operational restrictions imposed, the company is unable to
conduct any new business and therefore it is uncertain whether there
will be sufficient future taxable income against which such deferred
tax assets can be realized. Accordingly in view of absence of virtual
certainty of sufficient taxable income in future no provision for
deferred tax has been made.
(b) Tax Provision
The company has not made/retained any provision for income tax during
the year since the company has substantial accumulated/ brought forward
losses from earlier years.
11. EMPLOYEE BENEFITS
(a) Defined Contribution Plans:
The Company has recognized the contribution/liability in the profit &
loss account for the financial year 2011-12.
12. GOING CONCERN BASIS
To comply with the directives of the Reserve Bank of India the company
ceased to accept deposits from September 1997. Despite cessation of
business, substantial accumulated losses, non-provision for full NPA's
and interest payable, rejection of the "old scheme under review" and
winding up petition filed by the Reserve Bank of India and various
creditors of the company, the accounts of the company have been
prepared on a "going concern" basis on an assumption & premises made by
the management that (a) the fresh scheme would be approved by the
Hon'ble Delhi High Court,
b) adequate finances and opportunities would be available in the
foreseeable future to enable the company to start operating on a
profitable basis,
(c) the promoters of the Company have provided letter of support, and
(d) injection of Rs. 19.50 crores as promoters quota.
13. BALANCE CONFIRMATION
(a) Balance confirmation of bills receivable and payable, advances
recoverable in cash or in kind, receivables and payables relating to
lease and hire purchase, lease security deposit of which party wise
details are not available. Balance confirmation of inter-corporate
deposits, balance of ex-employees, margin against L/C, loans from
institutions, banks, and other receivables and payables have not been
received from the parties/persons concerned. In the absence of balance
confirmation the closing balances as per books of accounts have been
incorporated in the final accounts and have been shown, unless
otherwise stated by the management about its recoverability in the
financials including considering the NPA Provisions, are good for
recovery/payment. Time barred debts under the Limitations Act have not
been separately ascertained and written off or provided for. In the
absence of such confirmation & corresponding reconciliation, the
financial impact cannot be ascertained.
(b) To overcome past deficiencies a new accounting software package was
introduced in an earlier year on the basis of which accounts have been
drawn. However, the aggregate of un- reconciled opening balances of
various sub-ledgers the general ledger and subsequently other
rectification entries, unidentified balances requiring further analysis
had been transferred to a separate account which at the end of the year
is Rs.197.09 lacs debit and Rs. 363.66 lacs credit and the net balance
of Rs. 166.57 lacs has been shown as a current liability. These are
subject to confirmation and reconciliation.
14. PAYMENT TO DIRECTORS
The company has paid Rs 2.87 Lacs remuneration to its Director during
the period ended 31st March, 2012. Out of managerial remuneration of Rs
2.87 Lacs paid by the company, Rs 1.47 lacs pertain to period from
July, 2011 to November, 2011. During the month of November, 2011,
company has submitted an application to the Central Government seeking
approval for re-appointment of whole time director and for approving
the payment of Rs 5.40 lacs for the period of 1.12.2009 to 30.11.2011.
Pending approval, the company has paid the remuneration to the director
& has shown it as managerial remuneration in the financials.
The company has submitted another application with the Central
Government seeking approval of payment of managerial remuneration of
Rs. 3.99 lacs per annum for the period 1.12.2011 to 30.11.2014 dated on
29th March 2012 out of this Rs 1.40 Lacs pertain to the period from
December, 2011 to March, 2012. The approval of the Central Government
for the Directors remuneration is still pending as on 31st August 2012.
The amount of directors remuneration of Rs 8.27 Lacs payable to
director of company are still pending for approval by Central
Government as at 31st March 2012. The break-up of Rs 8.27 Lacs is as
under :-
Rs. 1.86 Lacs for the period from December, 2009 to June, 2010 Rs. 3.54
Lacs for the period from July, 2010 to June, 2011 Rs. 2.87 Lacs for the
period from July, 2011 to March, 2012
Pending approval, the company has paid the remuneration to the director
& has shown it as managerial remuneration in the financials.
15. RELATED PARTY DISCLOSURE
As required by Accounting Standard - AS 18 "Related Party Disclosure"
issued by The Institute of Chartered Accountants of India are as
follows:
16. The company's application to RBI for certificate of registration
(CoR) as a NBFC had been rejected by the RBI in the year 2004. The
company had made an appeal to the Appellate Authority which directed
the RBI to keep its order of rejection of CoR in abeyance for a period
of six months during which the Company shall file a revised scheme for
restructuring. RBI has preferred an appeal before the Hon'ble Delhi
High Court against the order of the appellate authority, whichlis still
pending.
17. MSME undertakings as defined in Micro, Small and Medium
Development Act,2006 to whom Company owes NIL Previous year NIL.
18. PREVIOUS YEARS FIGURES
Company has changed its accounting from July-June to April-March.
Considering this, its accounting year therefore the figures for the
current year is for nine months only i.e. July' 11 to March' 12 and
previous years figures have been regrouped and recast wherever
necessary. However due to the difference in the length of the previous
year & the current period the figure in the statement of profit & loss
are not comparable.
Jun 30, 2011
1. RESTRUCTURING SCHEME
The management for a structured debt repayment had prepared two schemes
of arrangement for reorganization of share capital of the company and
for compromise with its secured and unsecured creditors. Both the
schemes of arrangement envisage a viable, just & equitable settlement
with its secured and unsecured creditors while simultaneously
increasing the risk and stake of the promoters and their shareholding
through fresh infusion of funds by the promoter company.
The Company has also moved an application before the Hon'ble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company. The same repayment schedule has been
included in the fresh restructuring scheme filed before the Hon'ble
High Court of Delhi at New Delhi on 24th September 2004.
The implementation of the schemes is subject to the fulfillment of all
the conditions of section 391 to section 394 of the Companies Act and
approval/orders of the Hon'ble Delhi High Court. The Hon'ble Delhi
High Court did not approve the company's first scheme filed in May
2000, though approved by the secured and unsecured creditors in their
respective meetings convened pursuant to the orders of the Hon'ble
Court, yet the Hon'ble Court did not accord sanction to the scheme on
technical grounds. An application for review had been filed before the
Hon'ble Delhi High Court on 30th May 2003, which is yet to be listed
for hearing and which is hereinafter, wherever applicable, referred to
as the "old scheme under review". The company intends not to pursue the
review application filed for the old scheme under review before the
Hon'ble Delhi High Court and it is proposed to be withdrawn at an
appropriate stage of the proceedings for the sanction of "the fresh
scheme".
The company has filed a fresh Scheme of Arrangement for the
reorganization of the Share Capital of the Company and for compromise
with the Secured and Unsecured Creditors of the company, hereinafter
referred to as the "fresh scheme" before the Hon'ble Delhi High Court
at New Delhi on 24th September 2004.
Pursuant to the orders of the Hon'ble High Court, the unsecured
creditors and Debenture holders in their meeting convened under the
Chairpersonship of court appointed chairpersons (retired Judges of
Hon'ble Delhi High Court) on 1st April 2005 and 2nd April, 2005 have
approved the scheme without any modifications with the requisite
majority. The meeting of the other Secured creditors (Banks/
Institutions) was held on 17th September 2005 and has also approved the
scheme by the requisite majority after considering some modifications
proposed by the Punjab & Sind Bank.
The promoter company has undertaken subject to sanction of the scheme
by the Hon'ble Delhi High Court to contribute to Rs. 19.50 Crores of
which Rs.15.60 crores was deposited with the Hon'ble High Court
Registrar, as per Court order by promoter group.
The fresh scheme is conditional upon the following approvals and shall
be deemed to be effective on obtaining the last of the approvals and
the occurrence of the last of the following events: -
i. Sanction of the Scheme by the Hon'ble High Court of Delhi under
Sections 391 and 394 of the Act and other applicable provisions of the
Act, Rules and Regulations, as the case may be;
ii. Filing of certified copies of the order of the Hon'ble High Court
of Delhi with the Registrar of Companies (Delhi and Haryana).
The restructured debts of the company for each category of debt is on
the basis of out standings as envisaged in the fresh scheme filed in
the year 2004 excluding interest not provided for and all liquidated
damages/penal charges and interest on unpaid interest. The "Fresh
Scheme of Arrangement" is drawn on the basis of acceptance of waiver of
payment of past and future interest, penal charges, liquidated damages,
and any other charges, costs and claims etc. except as provided and for
values contained therein which is subject to the approval of the
Hon'ble Delhi High Court.
The accounts of the company have been drawn on the assumption that the
"fresh scheme" will be accepted and implemented. If it is not accepted
and cannot be implemented for any reason the total liability before the
proposed restructuring scheme including those for which no provision
has been made and has been quantified under appropriate heads, shall
become payable.
The fresh scheme is pending before the Hon'ble Delhi High Court as at
30th June, 2011 & there is no change in the status at the time of
adoption of the financials for the period ended 30th June, 2011 by the
Board of Directors.
2. DEPOSIT OF RS 15.60 CRORE BY DCM SERVICES LIMITED
DCM Services Ltd as a promoter has committed to bring in Rs 19.50 Cr as
a promoter contribution upon sanction of their restructuring scheme u/s
391 of the Indian Companies Act, which is presently pending for
sanction before the Hon'able Delhi High Court.
The Court vide order dated 15.2.2010 has asked the promoters to deposit
Rs 15.60 Crore with the court with a condition that in case the scheme
is not approved due to any reason the amount will be given back to the
promoters .
Pursuant to the court order, DCM Services Limited has deposited Rs 5.00
Cr on 16.07.2010, Rs 6.70 Cr on 18.11.2010 & Rs. 3.90 Cr. on 21.04.2011
with the Registrar, Delhi High Court. No financial impact of same has
been recorded in the financials of the Company during the year ended
30th June, 2011.
3. SHARE APPLICATION MONEY
As per consent letters received, expenditure incurred/repayment made by
the company amounting to Rs. 549.72 lacs funded by the group companies
till June.2007, have been credited to the Share Application account.
4. CAPITAL RESERVES
Rs. 193.87 lacs in the capital reserve account consists of surpluses
realized from settlement with the debentures and other liabilities not
payable, which in the opinion of the management have been transferred
to Capital Reserve since these amounts do not relate to trading
activities.
5. DEBENTURES
a) The value of assets charged in favour of debentures has been
depleted over a period of time but the depletion has not been
ascertained. To the extent of shortfall, if any, the liability is
unsecured.
b) A supplementary trust deed for giving effect to the proposed
repayment plans as provided in clause 44 of the Trust deed has not been
prepared by the trustees so far.
c) Provision of interest on debentures up to June 30, 2011 calculated @
10% p.a. of simple interest as per renewal offer letter of 1998 on
19.5% Debenture "B" Series and regular interest on Debenture "A" Series
amounting to approximately Rs. 3,353.86 lacs has not been provided
since a fresh restructuring scheme that is subject to the approval of
the Hon'ble High Court of Delhi has been submitted which does not
envisage payment of any interest. To the extent of the non-provision of
interest calculated as per renewal offer letter of 1998, the current
year profits are overstated to the extent of Rs. 255.78 lacs. And
cumulative net losses are understated to the extent of Rs. 3,353.86
lacs. The difference between the original contracted interest @ 19.5%
and as per offer letter @ 10% has also not been ascertained and
provided for pending approval of the fresh scheme. To the extent of
interest not provided cumulative net loss is understated.
d) Debenture Redemption Reserve for series 'B' has not been created
during the year in view of the carry forward losses suffered by the
company in the past.
e) The Central Bank of India, Mumbai, Trustees for the Non-Convertible
Debentures B- Series have filed a suit for recovery of Rs. 4,423.86
lacs on 14th October, 1999 before the Hon'ble Mumbai High Court. As
against the claim of Rs. 4,423.86 lakhs by The Central Bank of India,
Mumbai, Trustees for The Non-Convertible Debentures "B" Series, Rs.
2548.75 lacs on account of principal and interest is reflected in the
books as on date. In view of the fresh scheme seeking waiver of
interest payable to debenture holders, no provision has been made for
the difference between the claim made by the Central Bank of India and
the liability as per the books to this extent the cumulative net losses
of Rs. 1,875.11 lacs. is understated.
The Hon'ble Mumbai High Court vide its interim order dated 24th
December, 1999 has passed an order that all receipts from hypothecated
assets shall be deposited with the trustees in a separate bank account
except for amounts utilized as per orders of The Reserve Bank of India
and the Company Law Board.
The suits filed by the Central Bank of India before the Hon'ble Mumbai
High Court has been stayed by Hon'ble High Court of Delhi vide order
dated 14 September 2005 on application made by the company and there is
no change in the status as at 30th June, 2011.
6. LOANS FROM INSTITUTIONS/ BANKS
(A) SBI HOME FINANCE LTD.(SBIHF): -
The company has already paid Rs. 2.90 crores under the old scheme and
proposes to allot shares worth Rs. 25 lakhs for the balance as per the
fresh scheme in the first year from the effective date (Effective date
means the date of filling of the certified copy of the order
sanctioning the scheme of the Honorable High Court of Delhi at New
Delhi with the Registrar of Companies of Delhi & Haryana). SBIHF has
removed a charge on its assets and therefore the loan is now
categorized as unsecured loan.
(B) SIDBI: The amounts due has been quantified at Rs. 45.38 lacs as per
the "old scheme under review". However, under the fresh scheme the
interest payable amounting to Rs. 9.08 lacs is sought to be waived and
has already been written back in the earlier year. The principal
amount due as on 30th June, 2004 amounting to Rs. 36.30 lacs is
proposed to be repaid in 3 equal installments of Rs. 12.10 lacs from
the 2nd year of the effective date.
SIDBI has filed a petition for winding up on alleged non-payment of Rs.
54.40 lacs before the Hon'ble Delhi High Court on which stay has been
granted by the Hon'ble Delhi High Court. Provision for liability on
account of interest, overdue interest, and other charges claimed and
claimable by SIDBI has not been ascertained and provided for due to
waiver of interest sought under the "fresh scheme".
(C) PUNJAB & SIND BANK (PSB): As per the fresh scheme the total amount
payable to PSB remains quantified at Rs. 901.80 lakhs as on 30th June
2004. (After providing interest @10% p.a., compounded quarterly from
30th September 1999 till 31st March, 2000 on the principal debt as on
30.09.1997. Out of this 60% of Rs.901.80 lacs i.e. Rs.541.08 lacs.
shall be payable in 6 equal yearly installments after one year from the
date of approval of the scheme on or 1st April,2006 whichever is
earlier. The balance 40% shall be discharged by issuing equity shares
at any time within 3 years of the effective date or 1st April, 2006
which ever is earlier. The company has till date paid/ adjusted Rs.
98.40 lacs and the balance of Rs. 803.40 lacs as on 30th June 2008 is
payable as per the fresh scheme pending before the Hon'ble Delhi High
Court. Pursuant to an earlier agreement with the bank, from April 1,
2000 till 31st March 2005, interest at a compounded half yearly rate of
10% p.a. has been computed at Rs. 395.97 lakhs, which has already been
paid by way of allotment of equity shares of Rs. 10/- each at a premium
of Rs. 20/- on 31st March 2001. In the event of default in the payment
of interest and principal, the concessions made by PSB shall stand
withdrawn and their claim settled before the Debt Recovery Tribunal of
Rs. 1217.52 lakhs will become payable with immediate effect. Interest
payable from 01.04.2005 to 30.06.2011 is also not provided since a
fresh restructuring scheme, which is subject to the approval of Hon'ble
High Court of Delhi, has been submitted which does not envisage payment
of any interest. In view of the claim of Rs 1217.52 filed before the
Debt Recovery Tribunal and to the extent of interest, overdue interest,
default charges not provided, net profit for the year is overstated and
cumulative net loss is understated to that extent.
(D) INDUSIND BANK: The amount payable to Indus land Bank after
calculating interest up to March 31, 2000 had been quantified at Rs.
916.64 lakhs in accordance with the "old scheme under review". The
company has till date paid/adjusted Rs. 339.64 lakhs and the balance of
Rs.577.00 lacs as on 30th June 2008 is also payable as per the fresh
scheme. Pursuant to an earlier agreement with the bank, from April 1,
2000 till 31st March 2005, interest at a compounded half yearly rate of
10% p.a. has been computed at Rs. 300.20 lakhs, which has already been
paid by way of allotment of equity shares of Rs. 10/- each at a
premium of Rs. 20/- on 31st March 2001. In the event that the company
fails to pay the interest or principal, the concessions made by Indus
land Bank will be withdrawn and the amount claimed in the Debt Recovery
Tribunal amounting to Rs. 1042.42 lakhs would be payable with
immediate effect. Interest payable from 01.04.2005 to 30.06.2011 is
also not provided since a fresh restructuring scheme, which is subject
to the approval of Hon'ble High Court of Delhi, has been submitted
which does not envisage payment of any interest. The net profit for
the year is overstated and cumulative net loss is understated to that
extent.
(E) VALUE OF SECURITY AGAINST SECURED LOANS FROM BANKS/ INSTITUTIONS:
The value of the assets charged in favour of banks and institutions
have depleted over a period of time and the depletion has not been
ascertained. To the extent of the shortfall, if any, the liability is
unsecured.
7. FIXED DEPOSITS ACCEPTED
a) In respect of repayment of outstanding deposits with interest vide
order dated 17.07.98, the Company Law Board had ordered payment of
interest at contracted rates up to the date of maturity and at 10%
thereafter. Due to liquidity problem, the company has not fully
followed the schedule of repayment ordered by the Company Law Board.
However, a fresh scheme of arrangement for re-organization of the share
capital of the company and for compromise with its creditors including
fixed depositors has been made in which interest dues will be waived
and accordingly provision of interest payable amounting to Rs. 827.06
lacs has been written back in earlier years.
b) The Company has also moved an application before the Hon'ble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company before the fresh scheme is filed before
the Hon'ble Delhi High Court.
c) Fixed deposits and bills payable as per information retained on the
computer is Rs.5648.70 lacs whereas fixed deposits, which also includes
bills payable, as per books, amounts to Rs.5638.00 lacs and the
difference of Rs. 10.70 lacs is un-reconciled. The company, in
accordance with a subsequently confirmed order of the Hon'ble Company
Law Board dated July 17, 1998 had given an option to the creditors of
overdue bills rediscounted to convert their dues into fixed deposits on
due dates retrospectively. Bills rediscounted, including those
converted into fixed deposits, have been reflected under fixed
deposits.
d) Liability on account of Fixed Deposits received contain certain
deposits which appear prima-facie to be suspect due to either lack of
identification of depositors or no claim or confirmation having been
received by the company.
Payment of those deposits that are under a suspicious category will be
made under the proposed scheme of arrangement only after the evidence
of receipt of money is established.
e) Provision for interest on fixed deposit up to June 30, 2011
calculated at simple interest @ 10% p.a. in accordance with the order
of The Hon'ble Company Law Board amounting to approx. Rs.8,297.92 lacs
(including approximately Rs. 7,732.88 lacs for the earlier years) has
not been made in view of the "fresh scheme" pending before the Hon'ble
Delhi High Court wherein the company does not envisage payment of any
interest. To the extent of non-provision of interest @10% as per the
previous CLB order, the current year profits are overstated to the
extent of approximately Rs.565.04 lacs and cumulative net losses are
understated to the extent of approximately Rs.8,297.92 lacs. The
difference between the contracted rate of interest and rate of interest
@ 10% has also not been ascertained and provided for.
f) Due to a liquidity crises in the past the minimum liquid assets @15%
of fixed deposits as per RBI directives has not been maintained by the
company. The company has applied to the Reserve Bank of India and the
Company Law Board for exemption from maintaining minimum liquid assets
and payment of penal interest but the disposal of the application is
still pending.
8. INTER - CORPORATE DEPOSITS
Provision for interest on inter corporate deposits up to June 30, 2011
amounting to approximately Rs.89.86 lacs which includes approximately
Rs.83.54 lacs for the earlier years, has not been made in view of the
"fresh scheme" pending before the Hon'ble High Court of Delhi wherein
the company does not envisage payment of any interest. To the extent of
non-provision of interest, the current year's profits are overstated to
the extent of approximately Rs.6.32 lacs and cumulative net losses are
understated to the extent of approximately Rs 89.86 lacs.
9. NON-PROVISION ON NON-PERFORMING ASSETS AS PER RBI NORMS
As per Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions, 1998 assets and receivables are required to be classified
as NPA and provision for non- performing assets as prescribed is
required to be made. The provision for non- performing assets as per
these Directions on hire purchase and lease receivables, inter-
corporate deposits given, bills receivable, advances recoverable in
cash or in kind and other receivables required to be provided amounted
to approx. Rs.2685.99 lacs (Net of Security received of Rs 601.93) but
only provision of Rs.1,556.79 lacs has been made. To the extent of
non-provision of approximately Rs.1129.20 lacs the cumulative net loss
reflected is understated.
Current assets, loans & advances other than mentioned above are good
for recovery..
10. INCOME TAX
(a) Deferred Tax Assets
In accordance with Accounting Standard-22 issued by The Institute of
Chartered Accountants of India, Deferred tax assets on accumulated
depreciation and losses has not been accounted for since as per certain
operational restrictions imposed, the Company is unable to conduct any
new business and therefore it is uncertain whether there will be
sufficient future taxable income against which such deferred tax assets
can be realized. Accordingly in view of absence of virtual certainty
of sufficient taxable income, no provision for deferred tax has been
made.
(b) Tax Provision
The Company has not made/retained any provision for income tax during
the year since the company has substantial accumulated brought forward
losses from the earlier years.
11. INVESTMENTS/SECURITIES HELD AS STOCK-IN-TRADE
During the year there were no transactions relating to sale/purchase of
stocks/ investment in shares. In the absence of a complete
reconciliation/confirmation of the share division customer account Rs.
164.96 Lacs has been shown as current assets, the recoverability of
which is uncertain. During the year ended 30th June 2011, those shares
which were held as bad deliveries have been removed from the schedule
of stock in trade. The same will be shown when such shares/stock which
are termed as bad deliveries are actually transferred in the name of
company. The Company has kept with itself few shares & securities as a
security received from its customer against the recoverable amount of
Rs 164.96 Lacs, which are under reconciliation & confirmation.
12. EMPLOYEE BENEFITS
(a) Defined Contribution Plans:
The Company has recognized the contribution/liability in the Profit &
Loss Account for the financial year 2010-11.
(b) Defined Benefit Plans & Other Long Term Benefits:
The following disclosures are made in accordance with AS 15 (Revised)
pertaining to Defined Benefit Plans and Other Long Term Benefits:
Notes:
(a) The estimates of future salary increases, considered in actuarial
valuation, takes into account the inflation, seniority, promotion and
other relevant factors;
(b) The liability towards gratuity & the earned leave for the year
ended 30th June, 2011, based on actuarial valuation amounting to Rs
1.04 lacs. & Rs. 0.03 lacs. have been recognized in the profit & loss
account.
13. GOING CONCERN BASIS
To comply with the directives of the Reserve Bank of India the company
ceased to accept deposits from September 1997. Despite cessation of
business, substantial accumulated losses, non-provision for full NPA's
and interest payable, rejection of the "old scheme under review" and
winding up petition filed by the Reserve Bank of India and various
creditors of the company, the accounts of the company have been
prepared on a "going concern" basis on an assumption & premises made by
the management that (a) fresh scheme would be approved by Hon'ble Delhi
High Court, b adequate finances and opportunities would be available in
the foreseeable future to enable the company to start operating on a
profitable basis and (c) the promoters of the Company have provided
letter of support.
14. BALANCE CONFIRMATION
(a) Balance confirmation of bills receivable and payable, advances
recoverable in cash or in kind, receivables and payables relating to
lease and hire purchase, lease security deposit of which party wise
details are not available. Balance confirmation of inter-corporate
deposits, balance of ex-employees, margin against L/C, loans from
institutions, banks, and other receivables and payables have not been
received from the parties/persons concerned. In the absence of balance
confirmation the closing balances as per books of accounts have been
incorporated in the final accounts and have been shown, unless
otherwise stated by the management, as good for recovery/payment. Time
barred debts under the Limitations Act have not been separately
ascertained and written off or provided for. In the absence of such
confirmation & corresponding reconciliation, the financial impact
cannot be ascertained.
(b) To overcome past deficiencies a new accounting software package was
introduced in an earlier year on the basis of which accounts have been
drawn. However, the aggregate of un- reconciled opening balances of
various sub-ledgers with general ledger and subsequently other
rectification entries/ unidentified balances requiring further analysis
had been transferred to a separate account which at the end of the year
is Rs.197.09 lacs debit and Rs. 363.66 lacs credit and the net balance
of Rs. 166.57 lacs has been shown as a current liability.
(c) Bank Balance of Rs. 1.26 lacs appearing in the books from 10 Banks
were yet to be confirmed by the Banks as at 30th June, 2011.
The Company has paid Rs 3.54 Lacs remuneration to its Director during
the year ended 30th June, 2011.Company has got the approval of Central
Government for the payment of Director's Remuneration under Section 309
of the Companies Act, 1956, which was effective and valid up to 30th
November 2009. Out of managerial remuneration of Rs 3.52 Lacs paid by
the company, Rs 1.66 Lacs pertain to till November, 2009. During the
month of November, 2011, Company has submitted an application with
Central Government seeking approval for re-appointment of Whole Time
Director and for approving the payment of managerial remuneration of Rs
1.86 for the year 2009-2010 & Rs 3.54 for the year 2010-2011. Pending
approval, Company has paid the remuneration to director & the same has
been shown as managerial remuneration in financials.
15. RELATED PARTY DISCLOSURE
As required by Accounting Standard - AS 18 "Related Party Disclosure"
issued by The Institute of Chartered Accountants of India are as
follows:
16. CONTINGENT LIABILITIES
(a) Claims lodged and contingent liability arising out of suits and
winding up petitions filed against the company not acknowledged as
debts amounts to Rs. 868.18 lacs. There are also other cases filed in
consumer and other courts against the company for which the company is
contingently liable but for which the amount has not been ascertained.
(b) Punjab & Sind bank has filed a recovery suit before the Debt
Recovery Tribunal (DRT) for recovery of Rs. 1217.52 lacs against which
the amount payable to them, as per books is Rs. 803.40 lacs. The
company contends that the dues of the Bank will be settled as per the
fresh restructuring scheme and consequently no provision for the
difference of Rs. 414.12 lacs has been made. Since the Company has not
made payment of interest & principal in accordance with the Fresh
Restructuring Scheme filed with the Hon'ble High Court, Rs 1217.52
became payable to PSB. No provision for the difference of Rs. 414.12
lacs has been made by the Company.
(c) Indus land Bank has filed a recovery suit before the Debt Recovery
Tribunal (DRT), of Rs. 1042.42 lacs against which the amount payable
to them as per books is Rs. 577.00 lacs. The company contends that the
dues of the Bank will be settled as per the fresh restructuring scheme
and consequently no provision for the difference of Rs. 465.42 lacs has
been made.
(d) During the year ended 30th June, 2009, the Company had received Rs.
100.00 lacs from one of the Debtors and reduced the balance recoverable
from the debtors account. Subsequently the Hon'ble Punjab and Haryana
Court deemed that payment to be an out of turn payment and asked the
company to deposit the amount. The Company had filed a SLP with the
Hon'ble Supreme Court of India which has been dismissed by them. The
Company is liable to deposit the amount mentioned above which has yet
to be deposited.
(e) During the preceding financial year ended 30th June, 2011 the
company's tenant has filed a claim of Rs 100.00 lacs against the
company due to damages suffered by the tenant.
(f) There is a disputed statutory due that have not been deposited on
account of matters pending before appropriate authorities a demand of
Rs.152.12 Lakh for payment of income tax under the Income tax Act, 1961.
17. Company application to RBI for certificate of registration (CoR)
as a NBFC had been rejected by the RBI. The company had made an appeal
to the Appellate Authority which directed the RBI to keep its order of
rejection of CoR in abeyance for a period of six months during which
the Company shall file a revised scheme for restructuring. RBI has
preferred an appeal before Hon'ble Delhi High Court against the order
of the Appellate Authority, which is still pending.
18. PREVIOUS YEARS FIGURES
Previous years figures have been regrouped and recast wherever
necessary to make them comparable with the figures for the current
year.
Notes:
1) As defined in paragraph 2(1) (xii) of the Non-Banking Financial
Companies Acceptance of Public Deposits (Reserve Bank) Directions ,
1998.
2) Provisioning norms shall be applicable as prescribed in the Non -
Banking Financial (Deposit Accepting or Holding) Companies Prudential
Norms (Reserve Bank) Directions, 2007.
3) All Accounting Standards and Guidance Notes issued by ICAI are
applicable including for valuation of investments and other assets as
also assets acquired in satisfaction of Debt. However , market value
in respect of quoted investments and break up/fair value/ NAV in
respect of unquoted investments should be disclosed irrespective of
whether they are classified as long term or current in (5) above.
Jun 30, 2010
1. RESTRUCTURING SCHEME
The management for a structured debt repayment had prepared two schemes
of arrangement for reorganization of share capital of the company and
for compromise with its secured and unsecured creditors. Both the
schemes of arrangement envisage a viable, just & equitable settlement
with its secured and unsecured creditors while simultaneously
increasing the risk and stake of the promoters and their shareholding
through fresh infusion of funds by the promoter company.
The Company has also moved an application before the Honble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company. The same repayment schedule has been
included in the fresh restructuring scheme filed before the Honble
High Court of Delhi at New Delhi on 24th September 2004.
The implementation of the schemes is subject to the fulfillment of all
the conditions of section 391 to section 394 of the Companies Act and
approval/orders of the Honble Delhi High Court. The Honble Delhi High
Court did not approve the companys first scheme filed in May 2000,
though approved by the secured and unsecured creditors in their
respective meetings convened pursuant to the orders of the Honble
Court, yet the Honble Court did not accord sanction to the scheme on
technical grounds. An application for review had been filed before the
Honble Delhi High Court on 30th May 2003, which is yet to be listed
for hearing and which is hereinafter, wherever applicable, referred to
as the "old scheme under review". The company intends not to pursue the
review application filed for the old scheme under review before the
Honble Delhi High Court and it is proposed to be withdrawn at an
appropriate stage of the proceedings for the sanction of "the fresh
scheme".
The company has filed a fresh Scheme of Arrangement for the
reorganization of the Share Capital of the Company and for compromise
with the Secured and Unsecured Creditors of the company, hereinafter
referred to as the "fresh scheme" before the Honble Delhi High Court
at New Delhi on 24" September 2004.
Pursuant to the orders of the Honble High Court, the Unsecured
creditors and Debenture holders in their meeting convened under the
Chairpersonship of court appointed chairpersons (retired Judges of
Honble Delhi High Court) on 1st April 2005 and 2nd April, 2005 have
approved the scheme without any modifications with the requisite
majority. The meeting of the other Secured creditors (Banks/
Institutions) was held on 17th September 2005 and has also approved the
scheme by the requisite majority after considering some modifications
proposed by the Punjab & Sind Bank.
The promoter company has undertaken subject to sanction of the scheme
by the Honble Delhi High Court to contribute to Rs. 19.50 Crores of
which Rs.11.70 crores was deposited with the Honble High Court
Registrar, as per Court order by promoter group.
The fresh scheme is conditional upon the following approvals and shall
be deemed to be effective on obtaining the last of the approvals and
the occurrence of the last of the following events:-
i. Sanction of the Scheme by the Honble High Court of Delhi under
Sections 391 and 394 of the Act and other applicable provisions of the
Act, Rules and Regulations, as the case may be;
ii. Filing of certified copies of the order of the Honble High Court
of Delhi with the Registrar of Companies (Delhi and Haryana).
The restructured debts of the company for each category of debt is on
the basis of out standings as envisaged in the fresh scheme filed in
the year 2004 excluding interest not provided for and all liquidated
damages/penal charges and interest on unpaid interest. The "Fresh
Scheme of Arrangement" is drawn on the basis of acceptance of waiver of
payment of past and future interest, penal charges, liquidated damages,
and any other charges, costs and claims etc. except as provided and for
values contained therein which is subject to the approval of the
Honble Delhi High Court.
The accounts of the company have been drawn on the assumption that the
"fresh scheme" will be accepted and implemented. If it is not accepted
and cannot be implemented for any reason the total liability before the
proposed restructuring scheme including those for which no provision
has been made and has been quantified under appropriate heads, shall
become payable.
The fresh scheme is pending before the Honble Delhi High Court as at
30th June, 2010 & there is no change in the status at the time of
adoption of the financials for the period ended 30th June, 2010 by the
Board of Directors.
2. DEPOSIT OF RS 11,7 CRORE BY PCM SERVICES LIMITED
DCM Services Ltd as a promoter has committed to bring in Rs 19.5 Cr as
a promoter contribution upon sanction of their restructuring scheme u/s
391 of the Indian Companies Act, which is presently pending for
sanction before the Honable Delhi High Court.
The Court vide order dated 15.2.2010 has asked the promoters to deposit
Rs 11.7 Crore with the court with a condition that in case the scheme
is not approved due to any reason the amount will be given back to the
promoters.
Pursuant to the court order, DCM Services Limited has deposited Rs 5.00
Cr on 16.07.2010and Rs 6.7 Cr on 18.11.2010 with the Registrar, Delhi
High Court. No financial impact of same has been recorded in the
financials of the Company during the year ended 30th June, 2010.
3. SHARE APPLICATION MONEY
As per consent letters received, expenditure incurred/repayment made by
the company amounting to Rs. 549.72 lacs funded by the group companies
till June.2007, have been credited to the Share Application account.
4. CAPITAL RESERVES
Rs. 193.87 lacs in the capital reserve account consists of surpluses
realized from settlement with the debentures and other liabilities not
payable, which in the opinion of the management have been transferred
to Capital Reserve since these amounts do not relate to trading
activities.
5. DEBENTURES
a) The value of assets charged in favour of debentures have been
depleted over a period of time but the depletion has not been
ascertained. To the extent of shortfall, if any, the liability is
unsecured.
b) A supplementary trust deed for giving effect to the proposed
repayment plans as provided in clause 44 of the Trust deed has not been
prepared by the trustees so far.
c) Overdue interest up to June 30, 2010 calculated @ 10% p.a. of simple
interest as per renewal offer letter of 1998 on 19.5% Debenture "B"
Series and regular interest on Debenture "A" Series amounting to
approximately Rs. 3,098.08 lacs has not been provided since a fresh
restructuring scheme that is subject to the approval of the Honble
High Court of Delhi has been submitted which does not envisage payment
of any interest. To the extent of the non-provision of interest
calculated as per renewal offer letter of 1998, the current year
profits are overstated to the extent of Rs. 255.85 lacs, and cumulative
net losses are understated to the extent of Rs. 3098.08 lacs. The
difference between the original contracted interest @ 19.5% and as per
offer letter @ 10% has also not been ascertained and provided for
pending approval of the fresh scheme. To the extent of interest not
provided cumulative net loss is understated.
d) Debenture Redemption Reserve for series "B" has not been created
during the year in view of the carry forward losses suffered by the
company in the past.
e) The Central Bank of India, Mumbai, Trustees for the Non-Convertible
Debentures B- Series have filed a suit for recovery of Rs. 4,423.86
lacs on 14th October,1999 before the Honble Mumbai High Court. As
against the claim of Rs. 4,423.86 lakhs by The Central Bank of India,
Mumbai, Trustees for The Non-Convertible Debentures "B" Series, Rs.
2,549.99 lacs on account of principal and interest is reflected in the
books as on date. In view of the fresh scheme seeking waiver of
interest payable to debenture holders, no provision has been made for
the difference between the claim made by the Central Bank of India and
the liability as per the books to this extent the cumulative net losses
of Rs. 1,873.87 lacs, is understated. The Honble Mumbai High Court
vide its interim order dated 24th December, 1999 has passed an order
that all receipts from hypothecated assets shall be deposited with the
trustees in a separate bank account except for amounts utilized as per
orders of The Reserve Bank of India and the Company Law Board.
The suits filed by the Central Bank of India before the Honble Mumbai
High Court has been stayed by Honble High Court of Delhi vide order
dated 14 September 2005 on application made by the company and there is
no change in the status as at 30th June, 2010.
6. LOANS FROM INSTITUTIONS/ BANKS
(A) SBI Home Finance Ltd.(SBIHF): -
The company has already paid Rs. 2.90 crores underthe old scheme and
proposes to allot shares worth Rs. 25 lakhs for the balance as per the
fresh scheme in the first year from the effective date (Effective date
means the date of filling of the certified copy of the order
sanctioning the scheme of the Honorable High Court of Delhi at New
Delhi with the Registrar of Companies of Delhi & Haryana). SBIHF has
removed a charge on its assets and therefore the loan is now
categorized as unsecured loan.
(B) SIDBI: The amounts due has been quantified at Rs. 45.38 lacs as per
the "old scheme under review". However, under the fresh scheme the
interest payable amounting to Rs. 9.08 lacs is sought to be waived and
has already been written back in the earlier year. The principal amount
due as on 30th June, 2004 amounting to Rs. 36.30 lacs is proposed to be
repaid in 3 equal installments of Rs. 12.10 lacs from the 2Ã1 yearof
the effective date.
SIDBI has filed a petition for winding up on alleged non-payment of Rs.
54.40 lacs before the Honble Delhi High Court on which stay has been
granted by the Honble Delhi High Court. Provision for liability on
account of interest, overdue interest, and other charges claimed and
claimable by SIDBI has not been ascertained and provided for due to
waiver of interest sought under the "fresh scheme".
(C) PUNJAB & SIND BANK (PSB): As per the fresh scheme the total amount
payable to PSB remains quantified at Rs. 901.80 lakhs as on 30th June
2004. (After providing interest @10% p.a., compounded quarterly from
30th September 1999 till 31st March, 2000 on the principal debt as on
30.09.1997. Out of this 60% of Rs.901.80 lacs i.e. Rs.541.08 lacs,
shall be payable in 6 equal yearly installments after one year from the
date of approval of the scheme on or 1" April,2006 whichever is
earlier. The balance 40% shall be discharged by issuing equity shares
at any time within 3 years of the effective date or 1" April,2006 which
ever is earlier. The company has till date paid/ adjusted Rs. 98.40
lacs and the balance of Rs. 803.40 lacs as on 30" June 2008 is payable
as per the fresh scheme pending before the Honble Delhi High Court.
Pursuant to an earlier agreement with the bank, from April 1, 2000 till
31st March 2005, interest at a compounded half yearly rate of 10% p.a.
has been computed at Rs. 395.97 lakhs, which has already been paid by
way of allotment of equity shares of Rs. 10/- each at a premium of Rs.
20/- on 31st March 2001. In the event of default in the payment of
interest and principal, the concessions made by PSB shall stand
withdrawn and their claim settled before the Debt Recovery Tribunal of
Rs. 1217.52 lakhs will become payable with immediate effect. Interest
payable from 01.04.2005 to 30.06.2010 is also not provided since a
fresh restructuring scheme, which is subject to the approval of Honble
High Court of Delhi, has been submitted which does not envisage payment
of any interest. In view of the claim of Rs 1217.52 filed before the
Debt Recovery Tribunal and to the extent of interest, overdue
interest., default charges not provided, net profit for the year is
overstated and cumulative net loss is understated to that extent.
(D) Indusind Bank: The amount payable to Indusind Bank after
calculating interest up to March 31, 2000 had been quantified at Rs.
916.64 lakhs in accordance with the "old scheme under review". The
company has till date paid/adjusted Rs. 339.64 lakhs and the balance of
Rs.577.00 lacs as on 30th June 2008 is also payable as per the fresh
scheme. Pursuant to an earlier agreement with the bank, from April 1,
2000 till 31sMarch 2005, interest at a compounded half yearly rate of
10% p.a. has been computed at Rs. 300.20 lakhs, which has already been
paid by way of allotment of equity shares of Rs. 10/- each at a premium
of Rs. 20/-on 31st March 2001. In the event that the company fails to
pay the interest or principal, the concessions made by Indusind Bank
will be withdrawn and the amount claimed in the Debt Recovery Tribunal
amounting to Rs. 1042.42 lakhs would be payable with immediate effect.
Interest payable from 01.04.2005 to 30.06.2010 is also not provided
since a fresh restructuring scheme, which is subject to the approval of
Honble High Court of Delhi, has been submitted which does not envisage
payment of any interest. The net profit for the year is overstated and
cumulative net loss is understated to that extent.
(E) VALUE OF SECURITY AGAINST SECURED LOANS FROM BANKS/ INSTITUTIONS:
The value of the assets charged in favour of banks and institutions
have depleted over a period of time and the depletion has not been
ascertained. To the extent of the shortfall, if any, the liability is
unsecured.
7. FIXED DEPOSITSACCEPTED
a) In respect of repayment of outstanding deposits with interest vide
order dated 17.07.98, the Company Law Board had ordered payment of
interest at contracted rates up to the date of maturity and at 10%
thereafter. Due to liquidity problem, the company has not fully
followed the schedule of repayment ordered by the Company Law Board.
However, a fresh scheme of arrangement for re-organization of the share
capital of the company and for compromise with its creditors including
fixed depositors has been made in which interest dues will be waived
and accordingly provision of interest payable amounting to Rs. 827.06
lacs has been written back in earlier years.
b) The Company has also moved an application before the Honble Company
Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the
Company Law Regulations 1991 proposing a fresh repayment schedule to
fixed depositors of the Company before the fresh scheme is filed before
the Honble Delhi High Court.
c) Fixed deposits and bills payable as per information retained on the
computer is Rs.5653.06 lacs whereas fixed deposits, which also includes
bills payable, as per books, amounts to Rs.5642.36 lacs and the
difference of Rs. 10.70 lacs is un- reconciled. The company, in
accordance with a subsequently confirmed order of the Honble Company
Law Board dated July 17,1998 had given an option to the creditors of
overdue bills rediscounted to convert their dues into fixed deposits on
due dates retrospectively. Bills rediscounted, including those
converted into fixed deposits, have been reflected underfixed deposits.
d) Liability on account of Fixed Deposits received contain certain
deposits which appear prima-facie to be suspect due to either lack of
identification of depositors or no claim or confirmation having been
received by the company.
Payment of those deposits that are under a suspicious category will be
made under the proposed scheme of arrangement only after the evidence
of receipt of money is established.
e) Provision for interest upto June 30, 2010 calculated at simple
interest @ 10% p.a. in accordance with the order of The Honble Company
Law Board amounting to approx. Rs.7,732.88 lacs (including
approximately Rs. 7,167.57 lacs for the earlier years) has not been
made in view of the "fresh scheme" pending before the Honble Delhi
High Court wherein the company does not envisage payment of any
interest. To the extent of non-provision of interest @10% as per the
previous CLB order, the current year profits are overstated to the
extent of approximately Rs.565.31 lacs and cumulative net losses are
understated to the extent of approximately Rs.7,732.88 lacs The
difference between the contracted rate of interest and rate of interest
@ 10% has also not been ascertained and provided for.
f) Due to a liquidity crises in the past the minimum liquid assets @15%
of fixed
deposits as per RBI directives has not been maintained by the company.
The company has applied to the Reserve Bank of India and the Company
Law Board for exemption from maintaining minimum liquid assets and
payment of penal interest but the disposal of the application is still
pending.
8. INTER -CORPORATE DEPOSITS
Provision for interest upto June 30, 2010 amounting to approximately
Rs.83.54 lacs which includes approximately Rs.77.22 lacs for the
earlier years, has not been made in view of the "fresh scheme" pending
before the Honble High Court of Delhi wherein the company does not
envisage payment of any interest. To the extent of non-provision of
interest, the current years profits are overstated to the extent of
approximately Rs.6.32 iacs and cumulative net losses are understated to
the extent of approximately Rs 83.54 lacs.
9. NON-PROVISION ON NON-PERFORMING ASSETS AS PER RBI NORMS
As per Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions, 1998 assets and receivables are required to be classified
as NPAand provision for non- performing assets as prescribed is
required to be made. The provision for non-performing assets as per
these Directions on hire purchase and lease receivables,
inter-corporate deposits given, bills receivable, advances recoverable
in cash or in kind and other receivables required to be provided
amounted to approx. Rs.2704.00 lacs (Net of Security received of Rs
601.93) but only provision of Rs. 1,556.79 lacs has been made. To the
extent of non-provision of approximately Rs.1147.21 lacs the cumulative
net loss reflected is understated.
Further, current assets, loans and advances to which the above
provision for NPA relates are required to be classified as good and
doubtful. Such distinction has not been drawn and the entire amount has
been shown as good for recovery.
10. INCOME TAX
(a) Deferred Tax Assets
In accordance with Accounting Standard-22 issued by The Institute of
Chartered Accountants of India, Deferred tax assets on accumulated
depreciation and losses has not been accounted for since as per certain
operational restrictions imposed, the Company is unable to conduct any
new business and therefore it is uncertain whether there will be
sufficient future taxable income against which such deferred tax assets
can be realized.
(b) Tax Provision
The Company has not made/retained any provision for income tax during
the year since the company has substantial accumulated brought forward
losses from the earlier years.
11. INVESTMENTS/SECURITIES HELD AS STOCK-IN-TRADE
During the year there were no transactions relating to sale/purchase of
stocks/ investment in shares. In the absence of a complete
reconciliation/confirmation of the share division customer account Rs.
164.96 Lacs has been shown as current assets, the recoverability of
which is uncertain. There are a number of shares in stock in trade held
as bad deliveries and these shares have been valued at Rs 1 each per
company. The Company is making efforts to transfer these shares to the
name of the company. The Company have kept with itself few shares &
securities as a security received from its customer against the
recoverable amount of Rs 164.96 Lacs, which are under reconciliation &
confirmation.
12. EMPLOYEE BENEFITS
(a) Defined Contribution Plans
The Company has recognized the contribution/liability in the Profit &
Loss Account for the financial year 2009-10.
(b) Defined Benefit Plans & Other Long Term Benefits:
The following disclosures are made in accordance with AS 15 (Revised)
pertaining to Defined Benefit Plans and Other Long Term Benefits:
13. GOING CONCERN BASIS
To comply with the directives of the Reserve Bank of India the company
ceased to accept deposits from September 1997. Despite cessation of
business, substantial accumulated losses, non-provision for full NPAs
and interest payable, rejection of the "old scheme under review" and
winding up petition filed by the Reserve Bank of India and various
creditors of the company, the accounts of the company have been
prepared on a "going concern" basis on an assumption & premises made by
the management that
(a) fresh scheme would be approved by Honble Delhi High Court,
(b) adequate finances and opportunities would be available in the
foreseeable future to enable the company to start operating on a
profitable basis and
(c) the promoters of the Company have provided letter of support.
14. BALANCE CONFIRMATION
(a) Balance confirmation of bills receivable and payable, advances
recoverable in cash or in kind, receivables and payables relating to
lease and hire purchase, lease security deposit of which party wise
details are not available. Balance confirmation of inter-corporate
deposits, balance of ex-employees, margin against L/C, loans from
institutions, banks, and other receivables and payables have not been
received from the parties/persons concerned. In the absence of balance
confirmation the closing balances as per books of accounts have been
incorporated in the final accounts and have been shown, unless
otherwise stated by the management, as good for recovery/payment. Time
barred debts under the Limitations Act have not been separately
ascertained and written off or provided for. In the absence of such
confirmation & corresponding reconciliation, the financial impact
cannot be ascertained.
(b) To overcome past deficiencies a new accounting software package was
introduced in an earlier year on the basis of which accounts have been
drawn. However, the aggregate of un- reconciled opening balances of
various sub-ledgers with general ledger and subsequently other
rectification entries/ unidentified balances requiring further analysis
had been transferred to a separate account which at the end of the year
is Rs. 197.09 lacs debit and Rs. 363.66 lacs credit and the net
balance of Rs. 166.57 lacs has been shown as a current liability.
(c) Bank Balance of Rs. 2.17 lacs appearing in the books from 14 Banks
were yet to be confirmed by the Banks as at 30th June, 2010.
15. Related Party disclosure
As required by Accounting Standard -AS 18 "Related Party Disclosure"
issued by The Institute of Chartered Accountants of India are as
follows:
List of related parties with whom transactions have taken place during
the year:
A. Associate Companies --DCM Services Limited
B. Subsidiary Companies - Global IT Options Ltd.
C. Key Management-Personnel -ArifBaig, Chairman
-O.P.Gupta, Director
-S. K. Sharma, Executive Director
16. CONTINGENT LIABILITIES
(a) Claims lodged and contingent liability arising out of suits and
winding up petitions filed against the company not acknowledged as
debts amounts to Rs. 868.18 lacs. There are also other cases filed in
consumer and other courts against the company for which the company is
contingently liable but forwhich the amount has not been ascertained.
(b) Punjab & Sind bank has filed a recovery suit before the Debt
Recovery Tribunal (DRT) for recovery of Rs. 1217.52 lacs against which
the amount payable to them, as per books is Rs. 803.40 lacs. The
company contends that the dues of the Bank will be settled as perthe
fresh restructuring scheme and consequently no provision forthe
difference of Rs. 414.12 lacs has been made. Since the Company has not
made payment of interest & principal in accordance with the Fresh
Restructuring Scheme filed with the Honble High Court, Rs 1217.52
became payable to PSB. No provision forthe difference of Rs. 414.12
lacs has been made by the Company.
(c) Induslnd Bank has filed a recovery suit before the Debt Recovery
Tribunal (DRT), of Rs. 1042.42 lacs against which the amount payable
to them as per books is Rs. 577.00 lacs. The company contends that the
dues of the Bank will be settled as per the fresh restructuring scheme
and consequently no provision for the difference of Rs. 465.42 lacs has
been made.
(d) In the preceding yearthe Company had received Rs. 100.00 lacs from
one of the Debtors and reduced the balance recoverable from the debtors
account. Subsequently the Honble Punjab and Haryana Court deemed that
payment to be an out of turn payment and asked the company to deposit
the amount. The Company had filed a SLP with the Honble Supreme Court
of India which has been dismissed by them. The Company is liable to
deposit the amount mentioned above which has yet to be deposited.
(e) During the financial year the companys tenant has filed a claim of
Rs 100.00 lacs against the company due to damages suffered by the
tenant.
17. Company application to RBI for certificate of registration (CoR)
as a NBFC had been rejected by the RBI. The company had made an appeal
to the Appellate Authority which directed the RBI to keep its order of
rejection of CoR in abeyance for a period of six months during which
the Company shall file a revised scheme for restructuring. RBI has
preferred an appeal before Honble Delhi High Court against the order
of the Appellate Authority, which is still pending.
18. PREVIOUS YEARS FIGURES
Previous years figures have been regrouped and recast wherever
necessary to make them comparable with the figures for the current
year.
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DCM Financial Services Ltd. ಹೆಚ್ಚಿನ ಮಾಹಿತಿ
-
DCM Financial Services Ltd. ಟೂಲ್ಸ್
- ಬಲ್ಕ್ ಡೀಲ್ಸ್
-
DCM Financial Services Ltd. ಕಂಪನಿಯ ವಿವರಗಳು
- ಕಂಪನಿ ಪ್ರೋಫೈಲ್
- ಕಂಪನಿ ಇತಿಹಾಸ
- ಆಡಳಿತ ಮಂಡಳಿ
- ಬಂಡವಾಳದ ಬಗೆ
- ಬ್ಯಾಂಕರ್ಸ್/ಅಡಿಟರ್ಸ್/ರೆಜಿಸ್ಟರ್ಸ್
-
ಕಂಪನಿ ಇತಿಹಾಸ
- ಬಿಎಸ್ಇ ಧಾರಣೆ ಇತಿಹಾಸ
- ಎನ್ಎಸ್ಇ ಧಾರಣೆ ಇತಿಹಾಸ
-
DCM Financial Services Ltd. ಹಣಕಾಸು ಅನುಪಾತದ ಲೆಕ್ಕ
- ಅನುಪಾತ
-
DCM Financial Services Ltd. ಫಲಿತಾಂಶ
- ತ್ರೈಮಾಸಿಕ ಫಲಿತಾಂಶ
- ಅರ್ಧವಾರ್ಷಿಕ ಫಲಿತಾಂಶ
- ಒಂಭತ್ತು ತಿಂಗಳ ಫಲಿತಾಂಶ
- ವಾರ್ಷಿಕ ವರದಿ
-
DCM Financial Services Ltd. ಹಣಕಾಸು ಡಾಟಾ
- ಅಡಿಟ್ ಫಲಿತಾಂಶ
- ಹಣದ ಹರಿವು
- ಬ್ಯಾಲೆನ್ಸ್ ಶೀಟ್
-
DCM Financial Services Ltd. ವರದಿಗಳು
- ಅಕೌಂಟಿಂಗ್ ಪಾಲಿಸಿ
- ಅಡಿಟರ್ಸ್ ವರದಿ
- ನಿರ್ದೇಶಕರ ವರದಿ
- ಖಾತೆಗೆ ಮುಖ್ಯ ವಿಚಾರ
-
DCM Financial Services Ltd. ಕಾರ್ಪೋರೇಟ್ ವರದಿಗಳು
- ಬುಕ್ ಕ್ಲೋಸರ್
- ಬೋರ್ಡ್ ಮೀಟಿಂಗ್
