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Notes to Accounts of AK Spintex Ltd.

Mar 31, 2015

NOTE 1 - CONTINGENT LIABILITIES

1. The Textile Cess Committee has raised a demand of Rs.45.28 Lacs against the company. The Company has filed various appeal against it before Hon'ble TC Appellate Tribunal, Mumbai. The Company has not received any communication from the tribunal and as per our information and belief the matter is still pending with TC Cess Appellant Tribunal. Mumbai and consequently, liability, if any arises will be accounted for as and when the case will be decided. The management being confident of winning the case, no provision of the above has been made.

2. The Company has deposited Rs. 82246/- under protest towards demand confirmed by the order of Commissioner of Excise in Case No IV(55)4/45/BHL/R-IV/04/6537 Dated 13.03.2004. Company has filled the appeal in CESTAT.

3. Hon'ble CESTAT Vide it, a Final Order No 493-495/08 CEx. Dated 13.07 2006 reduced the penalty and accordingly we have filed this refund of excess penalty deposited by us. The department has sanctioned a sum of Rs 114093 on 27.02.2009 towards excess penalty deposited by us. The department pointed an appeal with the Rajasthan High Court and matter is pending with High Court.

4. Hon'ble Rajasthan High Court in Central Excise Appeal No. 34/2007 * Union of India Vs. A.K. Spintex Ltd. & Are Has decided the case in our favor The Department has filed SLP with Hon'ble Supreme Court of Indie vide SLP (Civil) No. 25055 of 2009

5 During the year, the company has settled the entry tax liability with the government under Amnesty scheme ol Rajasthan government for period up to 31.03,2012, mainly to take advantage of waiver in interest, penalties , undue litigation and to buy peace. Despite. accepting the scheme, true management continues to take view that entry tax is not livable on the company for the period also and has filed stay petition with Hon. Rajasthan High court for FY 2012-13. As the management¦|transferred-the liability of entry tax law itself, hence, no provision of the entry tax has been made in books of/accounts for Fy. 20.12-2015, as it is of contingent nature in management opinion. The entry tax liability is accounted oh actual basis at the time of payment.

NOTE 2- DUE TO MICRO, SMALL & MEDIUM ENTERPRISES

The government of India has formulated an act namely. "The Micro, Small & Medium Enterprises Development Act, 2006 which comes into force with effect from October, 2 2006 As per the act, the company is required to identify the Micro and Small Enterprises & pay them interest on overdue beyond the specified period respective of the terms agreed with the companies. The company has initiated the process of Identification of such suppliers. In view of number of supplier & non receipt of critical inputs & response from several such potential parties for the liability of interest cannot be reliable estimate nor can require disclosure be made accounting in this regard will be carried out after process is completed and reliable estimate can be made. Since the company is regular in making payments to all suppliers the management does not anticipate any significant interest liability.

NOTE 3 - PREVIOUS YEARS FIGURES

In figures for previous years have been re-grouped and re-classified wherever necessary to make them comparable with the current years figure.

NOTE 4 - SEGMENT REPORTING

As the companies significant business activity falls within a single primary business segment viz. Processing of fabrics the disclosure requirement of accounting standereds-17 segment reporting issued by Institute of chartered accountants of India is not applicable.


Mar 31, 2013

NOTE 1 - CONTINGENT LIABILITIES

1. The Textile Cess Committee has raised a demand of Rs 46.25 Lacs against the company The Company has filed various appeal against it before Hon'ble TC Appellate Tribunal. Mumbai. The Company has not received any communication from the tribunal and as per our information and belief the matter is still pending with TC Cess Appellant Tribunal. Mumbai and consequently, liability, if any arises will be accounted for as and when in case will be decided. The management being confident of winning the case, no provision of the above has been made.

2. The Company has deposited Rs. 82246/- under protest towards demand confirmed by the order of Commissioner of Excise in Case No [V(55)4745/BHUR-IV/04/6587 Dated 18.082004. Company has filed the appeal in CESTAT.

3. Hon.ble CESTAT Vide faces Final Order No, 493-495/08 CEX Dated 16.07.20.08 reduced the penalty and accordingly we have fried the reflected of excess penalty deposited by u$. The department has sanctioned a sum of Rs. 114093 /- on 27.02.2009 towards excess penalty deposited by us. The department preferred an appeal with the Rajasthan High Court and matter is pending with High Court.

4 Hon,ble Rajasthan High Court in Central Excise Appeal No 34/2007 " Union of India Vs. A.K. Spintex Ltd. & An." Has decided the ease in our favour. The Department has filed SLP with Hon'ble Supreme Court of India vide SLP (Civil) No 25055 of 2009.

5. A writ petition regarding livery of Rajasthan entry tax on the processing units was pending before the Hon. Rajasthan High Court, Jodhpur in which a modified interim order was passed on 21,Of .2011. In compliance with the order, the company had to deposit 50 % of the entry tax for The years of which assessment is done i.e. FY 2007-08 and for the balance 50% amount, a surety bond was given. As the final order on the aforesaid writ petition has not been yet passed, the company on conservative basis has accounted for the entry tax up to FY 2007-03 in the books of accounts. In view of the management, there being a fair chance of winning the case, no further provision is necessary for period after FY 2007-Ofl. Thus the total amount of disputed liability for the period 01.04.2008 to 31.03.2013 is Rs. 62,14 lacs for which no provision is made being contingent in nature.

NOTE 2. - DUES TO MICRO. SMALL & MEDIUM ENTERPRISES

The Government of India has promulgated an act namely The Micro, Small & Medium Enterprises Development Act 2006" which comes into force with effect from Qctober,2 2006. As per The Act. the Company is required In identify the Micro & Smash Enterprises & Pay them interest on over due beyond the specified period irrespective of the terms agreed with the enterprises. The Company has initiated the process of identification of such suppliers. In view of number of supplier & no receipt of critical inputs & response from several such potential parties, the liability of interest cannot be reliable estimates nor can required disclosure be made. Accounting in this regard will be carried out after process is complete and reliable estimate can be made. Since the Company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

NOTE 3. - PREVIOUS YEAR FIGURES

The figures for previous year have been re-grouped, re-arranged and re-classified wherever necessary to make them comparable with the current year's figure

NOTE 4. - SEGMENT REPORTING

As the company's significant business activity falls within a single primary business segment viz. "Processing of Fabrics', the disclosure requirement of accounting Standard-T7 "Segment reporting', issued by Institute of Chartered Accountants of India, is not applicable.

 
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