Diligence Certificate to be obtained in terms of Circular RBI/2008-2009/379 under reference

DBOD No.BP.BC.110/08.12.001/2008-09 dated 10.02.2009

(To be obtained from Company Secretaries or Chartered Accountants or Cost Accountants)
Part : I
DILIGENCE REPORT
To,
Assistant General Manager,
State Bank of India, MCB,
Focal Point, Ludhiana
We have examined the registers, records, books and papers of M/s Allied Recycling Limited having its
registered office at VPO Budhewal, Chandigarh Road, Ludhiana as required to be maintained under the
Companies Act, 1956 (the Act) and the rules made thereunder, the provisions contained in the
Memorandum and Articles of Association of the Company, the provisions of various statutes, wherever
applicable. In our opinion and to the best of our information and according to the examination carried out
by us and explanations furnished to us by the Company, its officers and agents. This report covers the
period from 01.04.2012 to 31.03.2013 except in S.No.1, 2, 12 and 13 where upto date status has been given.
We report that in respect of the aforesaid period:
1. The management of the Company is carried out by the Board of Directors and the Board was duly
constituted. List of Board of Directors as on 30.09.2013 is detailed in Annexure-A. Moreover there was
no change since 01.04.2013
2. The shareholding pattern of the company as on 30.09.2013 is detailed in Annexure B. On the basis
examination of the records provided to us, No change has been taken place in shareholding pattern of
the company between the period from 30.09.2012 to 30.09.2013.
3. On the basis examination of the records provided to us, the company has not altered any provisions
of the Memorandum and Articles of Association during the period under review.
4. On the basis examination of Audited Financial Statements of the company for the FY 2012-2013, the
company has entered into transactions with business entities in which directors of the company were
interested. The details are given in Annexure C.
5. On the basis examination of Audited Financial Statements of the company for the FY 2012-2013, the
company has not advanced loans, given guarantees and provided securities to its directors and/or
persons or firms or companies in which directors were interested and has complied with Section 295
of the Companies Act , 1956 during the period under review.
6. On the basis examination of Audited Financial Statements of the company for the FY 2012-2013, the
Company has not made any loans and investments; or given guarantees or provided securities to other
business entities and has complied with the provisions of the Companies Act, 1956 during the period
under review.
7. On the basis examination of Audited Financial Statements of the company for the FY 2012-2013, the
amount borrowed by the Company from its directors, members, financial institutions, banks and
others were within the borrowing limits of the Company. Such borrowings were made by the Company
in compliance with applicable laws at relevant time. The detail of the Company's domestic borrowings
were as detailed in Annexure D.

8. On the basis examination of Audited Financial Statements of the company for the FY 2012-2013, the
Company has not defaulted in the repayment of public deposits, unsecured loans, debentures, facilities
granted by banks, financial institutions and non-banking financial companies during the period under
review.
9. The Company has created, modified or satisfied charges on the assets of the company as detailed in
Annexure D. On the basis examination of Audited Financial Statements of the company for the FY
2012-2013, the company has not made any i nvestments in any company or Joint Ventures
abroad during the year under review.
10. On the basis examination of Audited Financial Statements of the company for the FY 2012-2013, the
company has no forex exposure and Overseas Borrowings.
11. On the basis examination of the records provided to us, the Company has neither issued and
allotted the securities nor issued letters, coupons, warrants and certificates thereof as applicable to the
concerned persons and also redeemed its preference shares/debentures and bought back its shares
within the stipulated time in compliance with the provisions of the Companies Act,1956 and other
relevant statutes.
12. On the basis examination of the records provided to us, the Company has insured all its secured
assets, details are given in Annexure E.
13. On the basis examination of the records provided to us and information and explanations provided
to us, the Company has complied with the terms and conditions generally, set forth by the lending
bank/financial institution at the time of availing any facility and also during the currency of the
facility
14. On the basis of examination of Audited Financial Statements for the FY 2012-13, the Company has
not declared and paid dividends to its shareholders during the year under review
15. The Company has insured its assets where it is required.
16. On the basis of examination of defaulters' list as on 30.09.2012 of Reserve Bank of India and on the
basis of explanations received from the directors of the company, neither the name of the Company nor
any of its Directors appear in the defaulters' list.
17. The company is not engaged in any export activities; its name does not appear in ECGC defaulters list.
18. On the basis of examination of books of accounts and Audited Financial Statements for the FY 2012-13,
the Company has paid all its statutory dues and satisfactory arrangements had been made for arrears of
any such dues outstanding during the period under review.
19. On the basis of examination of Audited Financial Statements for the FY 2012-13, the funds borrowed
from banks/financial institutions have been used by the company for the purpose for which they were
borrowed.
20. On the basis of examination of books of accounts and Audited Financial Statements for the FY 2012-13.
the Company has complied with the provisions stipulated in Section 372 A of the Companies Act in
respect of its Inter Corporate loans and investments.

21. On the basis of Examination of Directors Report and Audit Report dated 04.09.2013, We observed that
the company has complied with the applicable Accounting Standards issued by the Institute of
Chartered Accountants in India.
22. On the basis of examination of books of account, we observed no amount was payable to the Investor
Education and Protection Fund. The company has not declared any dividend since inception.
23. On the basis of examination of Audited Financial Statements for the FY 2012-13 and as records provided
to us, we observed that there is no Prosecutions initiated against or show cause notices received by the
Company for alleged defaults/offences under various statutory provisions and also fines and penalties
imposed on the Company and or any other action initiated against the Company and /or its directors.
24. The company is not a listed on any Stock Exchange.
25. On the basis of examination of books of account and Audited Financial Statements for the FY 2012-13,
the Company has deposited within the stipulated time both Employees' and Employer's contribution to
Provident Fund with the prescribed authorities during the period under review.
Note : The qualification, reservation or adverse remarks, if any, are explicitly stated may be stated at the
relevant paragraphs above place(s).
Place: Ludhiana
Date: 02.01.2014

Signature:
Name of Company Secretary/Firm:
C.P. No.:

Annexure-A
List of Directors as on 30.09.2013:DIN
Full Name
Present residential address
00687824

Santosh Abrol

00717935

Savinay Garg

00717958

Sanjay Garg

00718015

Hitesh Abrol

00758496

Surinder Kumar

00758557

Vijay Kumar
Abrol

H.No.773-B, Aggar Nagar, Ludhiana,

141002, Punjab, India
J XVII 49/14, Sandeep Nagar, Behind
Gulmohar Hotal,, Ludhiana, 141001,
Punjab, India
44,, Overlock Road, Miller Ganj,,
Ludhiana, 141003, Punjab, India
H.No. 773-B,, Aggar Nagar,
Ludhiana, 141002, Punjab, India
H.No.441, Overlock Road,, Miller
Ganj,, Ludhiana, 141003, Punjab,
India
773-B,, Aggar Nagar,, Ludhiana,
141001, Punjab, India

Designation

Date of
Appointment

Whole-Time
Director
Whole-Time
Director

02/12/2003

Whole-Time
Director
Whole-Time
Director
Whole-Time
Director

23/04/2004

Managing
Director

02/12/2003

23/04/2004

02/12/2003
23/04/2004

Annexure-B
Shareholding Pattern as on 30.09.2013:L.F.
Name
Fathers Name
1
2
3

Vijay Abrol
Hitesh Abrol
Santosh Abrol

Sh. Ram Saran Abrol

Sh. Vijay Abrol
Sh. Vijay Abrol

No.of
Equity
Shares
354000
655000
307500

Surinder Kumar

Sh. Chaman Lal

535000 10/-

Savinay Garg

Sh. Surinder Kumar

783000 10/-

Sanjay Garg

Sh. Surinder Kumar

685000 10/-

16

Smt Bandana Garg

Sh. Savinay Garg

650000 10/-

17

Sh. Surinder Kumar

30000

27

Sanjay Garg & Sons HUF

Karta Sh. Sanjay Garg
Puja Garg

w/o Sh. Sanjay Garg

550000 10/-

28

Raj Rani

w/o Sh. Surinder 95000

Kumar Garg

39

Sita Rani Abrol

40
41

Vandana Chopra
Krishan Vallabh Garg

w/o Sh. Ram Saran 317000 10/Dass

w/o Sh. Hitesh Abrol 1023000 10/s/o Sh/ Savinay Garg 100000 10/-

42

Vijay Abrol & Sons HUF

karta Vijay Abrol
Surinder Garg & Sons
HUF karta Surinder Garg
Lajjya Steels Ltd

Sh. Ram Saran Dass

14000

10/-

Sh. Chaman Lal

17000

10/-

1120000 10/-

63

Krishan Multimetals &

Alloys P Ltd

455000 10/-

64

Allied Multimetals
Alloys P Ltd

400000 10/-

43
62

Total

&

8090500

Amount Address
of
10/10/10/-

10/-

10/-

773-B, Aggar Nagar, Ludhiana

773-B, Aggar Nagar, Ludhiana
H.No. 773-B, Aggar Nagar,
Ludhiana
H.No. 441, OVerlock Road,
Miller Ganj,, Ludhiana
J XVII-49/14, Sandeep Nagar,
Behind Gulmohar Hotel, DTLudhiana.
44-Overlock Road, Miller
Ganj, Ludhiana
49-14, J-17, Sandeep Nagar,
Ludhiana
49-14, J-17, Sandeep Nagar,
Ludhiana
J XVII-49/14, Sandeep Nagar,
Behind Gulmohar Hotel, DTLudhiana.
J XVII-49/14, Sandeep Nagar,
Behind Gulmohar Hotel, DTLudhiana.
773-B, Aggar Nagar, Ludhiana
773-B, Aggar Nagar, Ludhiana
J XVII-49/14, Sandeep Nagar,
Behind Gulmohar Hotel, DTLudhiana.
773-B, Aggar Nagar, Ludhiana
H.No. 441, OVerlock
Miller Ganj,, Ludhiana
442, Overlock Road,
Mandi, Ludhiana
B-XV/260/2, Nirankari
No.1,
Overlock
Ludhiana
B-XV/260/2, Nirankari
No.1,
Overlock
Ludhiana

Road,
Loha
Kucha
Road,
Kucha
Road,

Detail of transactions with business

FY 2012-13
Name of the party
Allied Multimetal & Alloys P
Ltd
Krishan Multimetal & Alloys P
Ltd

Annexure-C
entities in which directors of the company were interested for the
Nature of Transaction
Purchases
Sales
Purchases
Sales

Amount (Rs.)
15560279.00
121901008.00
193422232.00
27813593.00

Annexure-D
Break up of the companys Borrowings as per Audited Financial Statement as on 31.03.2013:Particulars
Amount (Rs.)
ICICI Bank Ltd (Car Loan)
10,22,138.00
State Bank of India (Term Loan 31239329251)
8,30,12,915.00
State Bank of India (Term Loan 30760285033)
2,09,76,678.00
Reliance Capital Ltd (Car Loan)
43,94,228.63
Reliance Capital Ltd (Trucks Loan)
25,55,601.96
Kotak Mahindera Prime Ltd. (Truck Loan)
48,82,519.00
State Bank of India (Cash Credit-Hyp)
7,95,87,915.33
State Bank of India (Cash Credit-Book Debts)
7,08,72,020.00
Punjab National Bank(Cash Credit)
5,51,17,653.56

Annexure-E
DETAIL OF CHARGES REGISTERED WITH ROC AS ON DATE
1. MODIFIED CHARGE ID NO.90176211 DATED 12.06.2010 IS REGISTERED AS UNDER:Details and description of the instrument Sanction letter.
creating the charge.
Supplementary agreement of hypothecation of goods & assets for
increase in the Overall limit on Form C 2-A.
Amount secured by the charge/amount Rs. 32.98 crores
owing on security of the charge.
Short Particulars of the property For working capital
charged, if the property acquired is 1st and exclusive charge on the entire current assets of the company
subject to charge, date of acquisition of (present & future).
property should be given.
For term loan: 1st and excl. charge on the entire fixed assets of the
co.(present & future)Incl. EM of factory L &B in the name of Co.
at Vill Budhewal, Kohara Measuring 41K,3M(24895sq.yds).
Only For WC
Extension of charge on fixed assets(both present & future) of he
company.
Only For TL
Extension of charge on entire current assets (present & future)
List of the Terms and Conditions and ROI : Intt on FBWC 0.25% above SBAR (Present effective rate
extent and operation of the charges
12%p.a) intt on TL1 & TLII (1% above SBAR (Present
12.75%p.a)on fresh TL (0.25% above SBAR (Present effective
12%p.a) with reset after 2 yrs onTL.
Terms of Repayment : Working capital repayable on demand. TL1
& TL2 as already advised in respective sanctioned letters. Fresh TL
repayable in 8yrs including Moratorium of 9months.( 24 monthly
installments Rs.6.25 lacs each,60 monthly installments Rs.14.59
lacs each,3 monthly installments Rs.58.20 lacs each, Starting from
April 2011.
Margin:- Raw material 25%
Stock in process 25%
Finished Goods 25%
Receivable domestic (Cover 60 days) 40%
Letter of credit maximum usance 60 days 25%
Margin of fresh TL 34.28%
Extent & operation of the charge 100%
Others:- Amounts to be secured by personal guarantees of Sh.
Vijay Kumar Abrol, Sh. Saviney Garg, Sh. Surinder Kumar Garg,
Sh. Sanjay Garg, Smt. Santosh Abrol and Sh. Hitesh Abrol
Particulars of Present Modification
CC Hyp.Limit have increased from 9.00 cr. to 15.00 cr.(C/C BD
remaining same at 2.00 cr. within the overall limit of CC Hyp.)
Existing TL1 & TL2 Outstanding being same at1.55 cr and Rs.3.43
.& fresh TL-3 of Rs.12.00 crore for working capital limit and there
is extn. of charge on fixed assets (both present & future) of the
company and for TL extn. on charged on entire current assets
(present & future).
Name and addresses and description of State Bank of India,
the person entitled to the charge.
SCB, Miller Ganj,
Ludhiana.

2. CHARGE ID NO.10346750 DATED 24.02.2012 IS REGISTERED AS UNDER:Details and description of the instrument Working Capital Consortium Agreement dated
creating the charge.
24.02.2012
Joint Deed of Hypothecation dated 24.02.2012
Amount secured by the charge/amount owing Rs. 26.00 crores
on security of the charge.
Short Particulars of the property charged, if the First Pari Passu charge on the entire current assets
property acquired is subject to charge, date of (Present & future) including stocks and receivables.
acquisition of property should be given.
List of the Terms and Conditions and extent ROI Cash Credit limit ; SBI - 5.00% above Base Rate,
and operation of the charges
PNB - 4.25% above Base Rate.
Terms of Repayment : Repayable on Demand.
Margin:Raw Material 25%
SIP 25%
FG 25%
BD 40%
LC 25%
Extent & operation of the charge 100%
Name and addresses and description of the State Bank of India,
person entitled to the charge.
Mid Corporate Sales Hub SCB,
Pahwa Hospital Complex, Miller Ganj
Ludhiana.

Annexure-F
Detail of Insurance as Provided by the Company:1.
a)
b)

c)
d)
e)
f)

Name of the Insurance Company

Policy No.
Amount Insured

SBI General Insurance Company Limited

0000000001242171
Description of Item
Building
Plant and Machinery
Furniture/ Fitting/Fixtures
Stock and Stock in Process
Total
16.09.2014
Standard Fire and Special Perils Policy
Adequate
Budhewal Road, VPO Budhewal, Ludhiana

(Rs. In
crores)
7.00
15.00
0.04
27.00
49.04

g)

Date of Expiry
Nature of risks covered
Adequacy of coverage
Whether All Godowns/Premises
Covered
Whether Bank Clause incorporated

2.
a)
b)

Name of the Insurance Company

Policy No.
Amount Insured

United India Insurance Company Limited

200900/11/12/11/00001277
Description of Item

g)

Date of Expiry
Nature of risks covered
Adequacy of coverage
Whether All Godowns/Premises
Covered
Whether Bank Clause incorporated

Building
Furniture/ Fitting/Fixtures
Total
30.03.2014
Standard Fire and Special Perils Policy
Adequate
H.No. 260, Nirankari Kucha No. 1, Overlock Road, Miller Ganj,
Ludhiana standing in the name of Sh. Vijay Abrol.
Yes State Bank of India , M.G. Ludhiana

3.
a)
b)

Name of the Insurance Company

Policy No.
Amount Insured

United India Insurance Company Limited

200900/11/12/11/00001275
Description of Item

c)
d)
e)
f)

c)
d)
e)
f)

Date of Expiry
Nature of risks covered
Adequacy of coverage
Whether All Godowns/Premises
Covered

g)

Whether Bank Clause incorporated

Yes
1) State Bank of India Midcorporate Branch, Focal Point,
Ludhiana.
2) Punjab National Bank , INB Branch , Ludhiana.

(Rs. In
crores)
0.20
0.05
0.25

(Rs. In
crores)
7.00
0.40
7.40

Building
Furniture/ Fitting/Fixtures
Total
30.03.2014
Standard Fire and Special Perils Policy
Adequate
Plot No. 6-7 & 18-19, Panchsheel Vihar, Barewal, Ferozepur
Road, Ludhiana standing in the name of Sh. Vijay Abrol & Smt.
Santosh Abrol
Yes State Bank of India , M.G. Ludhiana

4.
a)
b)

c)
d)
e)
f)
g)

Name of the Insurance Company

Policy No.
Amount Insured

United India Insurance Company Limited

200900/11/12/11/00001276
Description of Item

Date of Expiry
Nature of risks covered
Adequacy of coverage
Whether All Godowns/Premises
Covered
Whether Bank Clause incorporated

Building
Furniture/ Fitting/Fixtures
Total
30.03.2014
Standard Fire and Special Perils Policy
Adequate
773-B, Aggar Nagar, Ludhiana, standing in the name of Sh.
Vijay Abrol.
Yes State Bank of India , M.G. Ludhiana

(Rs. In
crores)
5.25
0.25
5.50