FUTURA POLYESTERS LIMITED - IDBI Capital

Mr. Sharad Shreepad Marathe
Mr. Nikhil Shyam Ghia
and Regulation) Act, 1992
1 show cause notice under
Foreign Trade (Development
and Regulation) Act, 1992
1 show cause notice under
Foreign Trade (Development
and Regulation) Act, 1992
quantifiable.
Not quantifiable
Not quantifiable
4. Approximately 73 % of our revenue is derived from our 10 top clients. Loss of any one or more of these
clients may adversely affect our business
The revenues from our top 10 customers constitute approximately 73% of our total revenue. These customers
procure polyester, polymer and preforms from our Company. Our Company has done business with these
customers for a considerable time period. Any change in the buying pattern of these clients which is adverse to
our Company, including due to deterioration in our quality standards or decline in the level of our commitment,
may have an adverse impact on our client retention ability. The loss of major customers may have a material
adverse affect our financial condition and results of operations. .
3. We have contingent liabilities as on March 31, 2008.
As on March 31, 2008, contingent liabilities not provided for were as follows:
(Rs. in Lacs)
Particulars
As on March
31, 2008
Claims against the Company not acknowledged as debts 173.40
Service Tax: - Penalty and interest demanded on technology transfer agreement between FPL 486.00
and IOCL and vice versa. ST demand on goods transport service at Supreme Court
Service Tax demand on Goods Transport Agency during the year 1997-98, departments 6.29
appeals pending in Supreme Court
Service tax credit denial on outward freight and canteen services 2005-06, 06-07 and 07-08 63.84
Central Excise – Claims against the company on various issues pending at CESTAT / High 493.49
Court / Supreme Court
Customs: Methods of calculation of duty under notification 2 / 95 & other valuation issues 126.33
Sales tax on Input use for Exports (1999-2000 and 2000-2001) 9.00
Sales Tax on interest collected (1997-98 & 2000-01) CST levied in interest charges collected 4.40
from customers
Guarantee given by the Company 2813.00
Total 4175.75
4. Our applications for registration/renewal of registration of some of our trademarks and grant of patents are
pending with the relevant authorities
Our Company has applied for the registration/renewal of registration of certain trademarks under the
Trademarks Act, 1999, and for patents both in India and outside India.Our Company cannot assure that it would
be granted the trademarks/patents that it has applied for, or that the grant of the same would not be challenged
by third parties. Any such challenge by third parties, or proceedings by us to protect our intellectual property,
may entail significant time and cost commitments, and our Company cannot assure that it would be successful
in such defence/proceedings, which would entail adverse financial implications. Loss of critical intellectual
property (especially patents) would have a material adverse effect on our business, results of operations and
financial condition.
5. Our business plans may need substantial capital and additional financing in the form of debt and/or equity to
meet our requirements.
Our business requires a substantial amount of working capital. In many cases, working capital is required to
finance the purchase of raw materials. Our working capital requirements may increase if, in certain contracts,
payment terms do not provide for advance payments to us or if payment schedules are less favorable to us. Our
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