TGV SRAAC Ltd.
You can view the entire text of Notes to accounts of the company for the latest year
ISIN No INE284B01028 52Wk High (Rs.) 90 BV (Rs.) 38.55 FV (Rs.) 10.00
Bookclosure 27/09/2017 52Wk Low (Rs.) 20 EPS (Rs.) 2.23 P/E (X) 32.04
Mkt Cap. (Rs. Cr.) 622.66 P/BV (X) 1.85 Div Yield (%) 0.00 Mkt Lot 1
2016-03

1. The Company has no Subsidaries/ Associates and has no Holding Company.

2. Out of Equity shares issued, subscribed and fully paid up 2,86,10,955 No. of equity shares of Rs.10/- each alloted on preferential allotment to Financial Institutions IDBI/IFCI by convertion of 15% Rupee/F.C loans and Debentures on 08.03.2005.The company has alloted 1,45,80,000 No.of equity shares of Rs.10/- each on 08.03.2005 and 54,20,000 on 25.04.2006 to promotors groupon on preferential allotment by conversion of 2,00,00,000 fully paid share warrants issued on 08.3.2005.

The Company has allotted 39,36,042 No. of equity shares of Rs.10/- each on 05.04.2014 and 37,39,240 No. of Equity shares on 27.04.2013 and 35,52,278 No. of Equity Share on 10.12.2012 to promotors group on preferential allotment by conversion of 1,12,27,560 Share Warrants allotted on 19.11.2012.

During the year, the company has allotted 41,43,202 No. of Equity shares of Rs. 10/- each at premium of Rs. 7.02 on 29-01-2016 to Promoter Group on Preferential allotment by conversion out of 1,30,95,272 Share Warrants allotted on 31-01-2016

3. Cumulative Redeemable Preference shares issued, subscribed and fully paid up 1,88,82,332 of Rs.10/- each having a coupon rateof 0.01% from April, 2002 were alloted on sub-division and consolidation of 50% holding of equity shares and are redeemable after 15 year in 4 quarterly installments commencing from 01.04.2018.

4. Redeemable Optionally Fully Convertible Debentures of 5% Series "B" 2,05,177 of Rs.100/- each issued to IFCI Ltd as per restructuring package were redeemed in full during the year 2015-16.There were no defaults in redemption of debentures and IFCI Ltd not exercised the option of conversion to the extent of outstanding balance as on 31.3.2016 of Rs.NIL lakhs (as on 31.3.2015 Rs.23.51 lakhs).

5 There were no Long Term Deposits and Finance Lease obligations .

6 There is no default as on 31.3.2016/31.03.2015 in repayment of loans and interest payments on Debentures and Term Loans.

7 Redeemable Optionally Fully Convertible Debentures of 5% Series "B" 2,05,177 of Rs.100/-each issued to IFCI Ltd as per restructuring package were redeemed in full during the year 2015-16.There were no defaults in redemption of debentures and IFCI Ltd not exercised the option of conversion to the extent of outstanding balance as on 31.3.2016 of Rs.NIL lakhs (as on 31.3.2015 Rs.23.51 lakhs).

@ Repayment of Term Loans from Banks in respect of Chloromethane Project availed from Indian Bank (repayable in 45 monthly installments from Jan 2015 and additional term loan repayable in 39 monthly installments from July, 2015), United Bank of India (repayable in 72 monthly installments from Oct, 2012) and The South Indian Bank Ltd. (repayable in 72 monthly installments from April, 2012 and additional term loan repayable in 36 monthly installments from April, 2016).

# Repayment of Working Capital term loans availed from IDBI Bank Ltd. (Rs. 629 lakhs repayable in 36 monthly installments from April, 2015 and Rs. 1571 lakhs loan repayable in 20 Quarterly installments from October, 2015), United Bank of India (Rs. 479 lakhs repayable in 36 monthly installments from July, 2015 and Rs. 1198 lakhs repayable in 20 quarterly installments from January, 2016), The South Indian Bank Ltd., (Rs. 215 lakhs repayable in 35 monthly installments from August, 2015 and Rs. 539 lakhs repayable in 9 Quarterly installments from April, 2016) and The Federal Bank Ltd. (Rs. 122 lakhs repayable in 36 monthly installments from August, 2015 and Rs. 305 lakhs repayable in 20 quarterly installments from April, 2016).

8 SECURITY:

A) TERM LOANS

1) The above Corporate Term Loan from IFCI Ltd is secured by first pari passu charge on immovable / movable assets of the company both present and future (excluding the project assets of Chloromethane Project which are exclusively charged to Banks) and the project assets of Fatty Acids & Potassium Hydroxide, Power Plant at Bellary which are exclusively charged to IFCI will also form part of fixed assets for first pari passu charge after repayment of existing loans by March, 2016 and further guaranteed by the Chairman and Managing Director, Sri.T.G.Venkatesh.

2) The above Term loans from Banks are secured by first pari passu charge on fixed assets of Chloromethane Project, and 2nd pari passu charge on other existing fixed assets and on the current assets and personal guarantee of Chairman and Managing Director Sri T.G.Venkatesh.

3) The above Working capital term loans from banks by IDBI Bank Ltd. and The Federal Bank Ltd. are secured by first pari passu charge on current assets i.e., specific lien on incentives and first pari passu charge on entire fixed assets of the company exculding assets pertaining to Chloromethane Project and personal guarantee of Chairman and Managing Director Sri. T.G.Venkatesh and for United Bank of India and The South Indian Bank Ltd. are secured by first pari passu charge on on current assets i.e., specific lien on incentives and second pari passu charge on fixed assets of the company and personal guarantee of Chairman and Managing Director Sri. T.G.Venkatesh.

9 There were no loans repayable on demand and short term Deposits/loans and advances from related parties.

10 There is no default as on 31.03.2016 (31.03.2015) in repayment of loans and interest payments on Working capital Loans, Letters of Credit

issued and Bills discounted with Banks and others.

11 SECURITY

a) Short Term Loans from Banks:

The above Working Capital Demand Loans,Cash Credits and Bills discounted by Banks are secured by 1st pari passu charge by way of hypothecation of inventories and receivable of the company and further secured by 2nd pari passu charge on land, building and Plant and machinery and guaranteed by the Chairman and Managing Director, Sri T.G.Venkatesh.

b) Letters of Credit from Banks:

The above Letter of credit facility availed from Banks were secured by 1st pari passu by way of hypothecation of inventories and receivable of the company and further secured by 2nd pari passu charge on land, building and Plant and machinery and letters of credit for capital goods secured by exclusive charge on specific asset procured guaranteed by the Chairman and Managing Director,Sri T.G.Venkatesh.

c) Bills discounted with Can Bank Factors Ltd:

The above Sale Bill discounting facility from Can Bank Factors ltd is secured by second charge on respective fixed assets of the company ranking pari passu with charges already created/ to be created by the Company and further guaranteed by the Chairman and Managing director, Sri T.G.Venkatesh and purchase bill discounting facility sanctioned by Can Bank Factors Ltd are secured by 2nd pari passu charge on fixed assets of the company.

12. DISCONTINUEING OPERATIONS OF POWER PLANT AT BELLARY:

Disclosures under Accounting Standard (AS-24)

The Power Purchase Agreement with Karnataka Electricity Board (Power Distribution Companies) was expired on 31.08.2012 and the agreement was not renewed and generation of power was stopped from September, 2012. The company has discontinued the operations of this segment from the year 2013-14 and exploring the possibilities for disposal of its Plant.

13. a) Exchange differences on Foreign Currency Term Loans from Financial Institutions in respect of installments paid during the year resulting

in loss amounting toRs.30.50 lakhs (previous year loss Rs.3.98lakhs) and exchange difference on loans outstanding as on 31.3.2016 amounting to Rs. Nil (being loans repaid during the year) charged to statement of profit and loss as per AS-11 (previous year gain Rs.19.10 lakhs).

b) The Exchange difference in respect of imports and exports during the year resulting in loss amounting to Rs.310.64 lakhs debited to Statement of Profit and Loss. (Previous Year gain Rs.81.51 lakhs)

14. Lease Payments: The total future minimum lease payments under non-cancelable operating leases are as under:

15. Employee Benefits:

A) Defined Contribution Plans

Company makes Provident Fund and superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 90,16,376 (Previous year Rs.80,90,186/-) for Provident Fund contributions and Rs. Nil (Previous year Rs.6,13,785/) for Superannuation Fund contributions in the Statement of Profit and Loss. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

B) Defined Benefit Plan

The Company’s obligation towards the Gratuity Fund is a defined benefit plan and is funded with Life Insurance Corporation of India. The disclosures in respect of actuarial valuation of gratuity as required under Accounting Standard 15 are given below.

16. Balances of Sundry Creditors and Debtors are shown as appearing in the books of account of the company and the company has sent confirmation letters to the parties and the confirmations are awaited.

17. Earnings per Share:

Basic and diluted earnings per share calculated in compliance with the provisions of Accounting standard (AS20) for the year ending 31.03.16 comes to Rs. 3.07 p.a (Previous year Rs.2.82 p.a.) and Rs.3.06 p.a (previous year Rs.2.80 p.a.) respectively.

The denominator for Basic EPS is 7,94,35,974 (previous year 7,86,66,928) equity shares and the numerator is net profit after tax as per Profit and Loss account and after adjusting preference dividend for the year and tax thereon, amounting to Rs. 24,41,49,340 (previous year Rs.22,14,93,029 )

The denominator for diluted EPS is increased by potential equity deemed to be issued for OFCD i.e 7,95,96,249 (previous year 7,90,83,643) and the numerator for this calculation is the net profit after tax as per Statement of Profit and Loss and after adjusting preference dividend and the interest at 5 % on OFCDs and the tax liability thereon, amounting to Rs. 24,42,12,681 (previous year Rs.22,16,57,714)

18. Figures have been rounded off to the nearest decimal of lakhs as required under revised Schedule - III.

19. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.