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Notes to Accounts of Asian Granito India Ltd.

Mar 31, 2015

1. During the year, Expenditure incurred of Rs. Nil (P. Y.Rs.3,66,90,351) towards Advertisement, Brand Promotion & Exhibition Exp of new products are deferred as the benefit out of it is expected to occur in future year also.

2. The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, Sales, and purchases are taken on the basis of details worked out from the bills and the stock records maintained by the Company (wherever applicable).

3. In the opinion of the Board of Directors,

(1) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.

(2) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4. In sample sale, Only Excise, EDU and HEDU payable on sample sale value is charged as expenses considering no commercial value of samples.

5. Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.

6. Figures of the previous year have been regrouped/rearranged wherever necessary to make them comparable with the current year figures.

7. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available we relied on the authentication given by the management.

8. Earnings Per Share :- (AS-20)

i) The amount used as numerator in calculating basic and diluted earnings per share is the profit after depreciation and taxes i.e.Rs. 1446.75/- Lac

ii) The number of ordinary shares used as the denominator in calculating the basic earnings per share is 2,25,82,541 i.e. weighted number of equity shares as on the

9. Borrowing Cost:- (AS-16)

Based on the guiding principle given in Accounting standard on "Borrowing Cost" (AS-16) issued by the ICAI, the Company has capitalized Rs. Nil/-, (P.Y. Rs. Nil/-) during the year to the Fixed Assets

10. Segment Reporting :- (AS-17)

Based on the guiding principle given in Accounting Standard on "Segment Reporting" (AS-17) issued by the ICAI, the Company's primary business is manufacturing of Tiles, the tiles business of the Company incorporate product groups i.e. Ceramic Tiles which mainly have similar risk and returns, accordingly there are no separately segment,

11. Related Party Disclosures under:-(AS-18)

During the year the Company entered into transaction with the related parties. Those transactions along with related balances as at 31 st March, 2015 and for the year then ended are presented in the following.

List of related parties with whom transaction have taken place during the year along with nature and volume of transactions.

12. During the year the Company has taken short term unsecured Loan Rs. 20 Crore for working capital requirement against domestic receivable from Axis Bank. Instead of showing the same under the Balance sheet head current liabilities in short term borrowing. The Company has deducted the same amount from trade receivable in current assets.

The Company has filed appeal before The Joint Commissioner of Commercial Tax- Appeals for demand of Sales Tax of Rs. 45,07,857 and Rs. 19,62,743 for the financial year 2003-04 & 2004-05 respectively. The Dispute is regarding set off against the purchase of fuel not allowed by the Sales tax Department. However, Gujarat High Court has given the decision in favour of M/s Ami Pigment Ltd and hence the Company has filed appeal on the basis of this decision.

The Company has also filed an appeal before The Deputy Commissioner of Commercial Tax-Appeals-lll, Gandhi agar against demand of VAT for Rs. 49,27,910 raised in provisional assessment made byThe Asst. Commissioner of Commercial Tax Enforcement Division ,wing-lll, Gandhi agar for the financial year 2007-08 on account of issue of input VAT credit reduction method on OGS Branch Transfer and Sample Sales.

The Company has also filed first appeal before The Joint Commissioner of Commercial Tax - Appeals against demand of CST (Net) for Rs. 48,23,126 for the financial year 2008-09 for pending " C" forms.

The Company has also filed first appeal before The Joint Commissioner of Commercial Tax-Appeals-l, Ahmedabad against demand of CST for Rs. 8,83,893 raised in regular assessment made by The Deputy Commissioner of Commercial Tax, Corporate Cell-1, Gandhi agar for the financial year 2009-10 for pending "C" forms

The Company has also filed first appeal before The Joint Commissioner of Commercial Tax-Appeals-I, Ahmadabad against demand of CST for 1,24,20,314 raised in the regular assessment made by The Deputy Commissioner of Commercial Tax, Circle-7, Gandhi agar for the financial year 2010-11 for pending "C" forms

Disputed Income Tax Liability of Rs. 2746.20 Lacs for various Asst. Years for which department has preferred appeals at higher levels. Out of these, Liabilities to the extent of Rs. 192.74 Lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs. 192.74 Lacs towards remaining disputed liabilities and there is no disputed amount remains unpaid. Company has preferred an appeal before Gujarat High Court.

Disputed Income tax Liability of Rs. 336.68 Lacs for A.Y.2006-07 Re-Assessment for which the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.

Disputed Income tax Liability of Rs. 118.77 Lacs of A.Y.2010-11 for which the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.

Disputed Income tax Liability of Rs. 27.66 Lacs of A.Y.2011-12 for which the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.

Disputed Income tax Liability of Rs. 636.39 Lacs of A.Y.2012-13 for which the Company has preferred an appeal before the CIT (Appeal) Ahmadabad.


Mar 31, 2014

TOTAL OF LONG TERM BORROWING

1 Term Loan Rs. 1816.39 lacs are secured by way of First Pari Passu charge over the movable & immovable properties of the Company situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Dist: Sabarkantha, Gujarat, over the movable assets including Plant & Machineries situated at Survey No.16 (paiki) Village: Jawanpura, Tal: Idar, Dist: Sabarkantha, Gujarat and over the One Wind Mill No.V-20 at survey No.204/1, Paiki, Village Vanku, Tal: Abdasa, Dist: Kutch, Gujarat AND Second Pari passu charge over entire current assets situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Dist: Sabarkantha, Gujarat and over entire current assets situated at Survey No.16 (paiki) Village: Jawanpura, Tal: Idar, Dist: Sabarkantha, Gujarat.

2 Term Loan Rs. 62.74 lacs are secured by way of First Charge on all current assets and fixed assets including movable assets of the Agro Tech Division of the Company situated at Block No.533 at Village Dalpur, Taluka: Prantij, Dist: Sabarkantha, Gujarat.

3 Vehicle loans are secured by hypothecation of vehicles in favour of Bank.

TOTAL OF SHORT TERM BORROWING

1 Working capital loans are secured by hypothecation of present and future stock of Raw Materials,Stock in Process, Semi-finished goods, stores and spares and Book debts, receivables And second Pari Passu charge over entire movable assets and Immovable Properties of the Company situated at Block No.160, 147A paiki, 162 at village Dalpur, Taluka-Prantij, Dist: Sabarkantha, Gujarat (Vitrified/Wall /Marble Division) And Survey No.16 (paiki), Village: Jawanpura, Taluka: Idar, Dist: Sabarkantha, Gujarat (Ceramic Division).

Bill Discounting Limit is guaranteed by Directors of the Company.

OTHER NOTES ON ACCOUNT

1. During the year, Expenditure incurred of Rs. 3,66,90,351 (P.Y.Rs. Nil) towards Advertisement, Brand Promotion & Exhibition Expenses of new products are deferred as the benefit out of it is expected to occur in future year also.

2. The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, Sales, and purchases are taken on the basis of details worked out from the bills and the stock records maintained by the Company (wherever applicable).

3. In the opinion of the Board of Directors,

(1) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.

(2) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4. In sample sale, Only Excise, EDU and HEDU payable on sample sale value is charged as expenses considering no commercial value of samples.

5. Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.

6. Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

7. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available we relied on the authentication given by the management.

8. Segment Reporting :- (AS-17)

Based on the guiding principle given in Accounting standard on *Segment Reporting” (AS-17) issued by the ICAI, the Company''s primary business is manufacturing of Tiles, the tiles business of the Company incorporate product groups i.e. Ceramic Tiles which mainly have similar risk and returns, accordingly there are no separately segment,

9. Related Party Disclosures under :- (AS-18)

During the year the Company entered into transaction with the related parties. Those transactions along with related balances as at March 31, 2014 and for the year then ended are presented in the following.

List of related parties with whom transaction have taken place during the year along with nature and volume of transactions.

10. Contingent Liabilities :- (AS-29)

In view of the Accounting Standard issued by ICAI *Provisions and Contingent Liabilities” (AS-29), following contingent liabilities have been identified which have not been

provided for in the books of accounts. (Rs. in Lacs)

Sr No Particular Amount

1 Bank Guarantee 1994.29

2 Custom Duty which may arise if obligation for exports is not fulfilled against import of capital goods under EPCG. 970.85

3 Claims against the Company / Disputed Liabilities not acknowledged as Debts

i) Sales Tax demands against which Company has preferred appeal. 210.88

ii) Excise Duty claim by DGCEI-Ahmedabad 2043.18

iii) Income tax 3010.62

iv) Consumer / Legal Cases 40.62

v) Letters of Credit opened with Bank 1493.44

The Company has filed appeal before The Joint Commissioner of Commercial Tax - Appeals for demand of Sales Tax of Rs. 5,07,857 and Rs.19,62,743 for the financial year 2003-04 & 2004-05 respectively. The Dispute is regarding set off against the purchase of fuel not allowed by the Sales tax Department. However, Gujarat High Court has given the decision in favour of M/s Ami Pigment Ltd and hence the Company has filed appeal on the basis of this decision

The Company has filed first appeal before The Deputy Commissioner of Commercial Tax-Appeals-III, Gandhinagar against demand of CST (Net) for Rs. 2,68,730 for the financial year 2006-07 for pending *C” forms

The Company has also filed an appeal before The Deputy Commissioner of Commercial Tax-Appeals-III, Gandhinagar against demand of VAT for Rs. 9,27,910 raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division, wing-III, Gandhinagar for the financial year 2007-08 on account of issue of in put VAT credit reduction method on OGS Branch Transfer and Sample Sales.

The Company has also filed first appeal before The Joint Commissioner of Commercial Tax - Appeals against demand of CST (Net) for 55,83,126 for the financial year 2008- 09 for pending *C” forms.

The Company has also filed first appeal before The Joint Commissioner of Commercial Tax-Appeals-I, Ahmedabad against demand of CST for Rs.11,83,893 raised in regular assessment made by The Deputy Commissioner of Commercial Tax, Corporate Cell-1, Gandhinagar for the financial year 2009-10 for pending *C* forms

The Company has also filed an appeal before The Deputy Commissioner of Commercial Tax-Appeals-III, Gandhinagar against demand of VAT / CST for Rs. 26,53,636 raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division, wing-III, Gandhinagar for the period from Apr-11 to Jul-11 (financial year 2011-12) on account of issue of in put VAT credit reduction method on OGS Branch Transfer and Sample Sales and OGS Sales.

Disputed Income Tax Liability of Rs. 2746.20 lacs for various Asst. Years for which department has preferred appeals at higher levels. Out of these, Liabilities to the extent of Rs. 192.74 lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs. 192.74 lacs towards remaining disputed liabilities and there is no disputed amount remains unpaid. Company has preferred an appeal before Tribunal Ahmedabad.

Disputed Income tax Liability of Rs. 336.68 lacs for A.Y. 2006-07 Re-Assessment for which the Company has preferred an appeal before the CIT (Appeal) Ahmedabad. Disputed Income tax Liability of Rs. 92.82 lacs of A.Y. 2010-11 for which the Company has preferred an appeal before the CIT (Appeal) Ahmedabad.

Disputed Income tax Liability of Rs. 27.66 lacs of A.Y. 2011-12 for which the Company has preferred an appeal before the CIT (Appeal) Ahmedabad.


Mar 31, 2013

1. During the year, Expenditure incurred of Rs. NIL (P.Y Rs. 33, 33,333/-) towards Exhibition of new products are deferred.

2. The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, Sales, and purchases are taken on the basis of details worked out from the bills and the stock records maintained by the company (wherever applicable).

3. In the opinion of the Board of Directors,

(1) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.

(2) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4. In sample sale only Excise and EDU payable on sample sale value is charged as expenses considering no commercial value of samples.

5. Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.

6. Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

7. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available we relied on the authentication given by the management.

8. Value of Export calculated at F.O.B. valued: Rs. 2337.47 Lacs (P.Y. Rs. 1417.60 Lacs)

9. Earning Per Share :- (AS-20)

i) The amount used as numerator in calculating basic and diluted earning per share is the profit after depreciation and

taxes i.e. Rs. 17,10,84,702.67/- ii) The number of ordinary shares used as the denominator in calculating the basic earning per share is 2,21,15,458 i.e. weighted number of equity shares as on the date of balance sheet 31st March, 2013. Diluted earning per share is arrived by taking weighted number of equity shares outstanding as on the date of balance sheet i.e. 2,21,15,458

10. Borrowing Cost :- (AS-16)

Based on the guiding principle given in Accounting standard on "Borrowing Cost" (AS-16) issued by the ICAI, the Company has capitalized Rs. Nil/-, (P.Y. Rs. Nil /-) during the year to the Fixed Assets.

11. Segment Reporting :- (AS-17)

Based on the guiding principle given in Accounting standard on "Segment Reporting" (AS-17) issued by the ICAI, the Company''s primary business is manufacturing of Tiles, the tiles business of the company incorporate product groups i.e. Ceramic Tiles which mainly have similar risk and returns, accordingly there are no separately segment,

12. Contingent Liabilities :- (AS-29)

In view of the Accounting Standard issued by ICAI "Provisions and Contingent Liabilities" (AS-29), following contingent liabilities have been identified which have not been provided for in the books of accounts.

The company has filed appeal before The Joint Commissioner of Commercial Tax – Appeals for demand of Sales Tax of Rs. 45,07,857 and Rs. 19,62,743 for the financial year 2003-04 & 2004-05 respectively. The Dispute is regarding set off against the purchase of fuel not allowed by the Sales tax Department. However, Gujarat High Court has given the decision in favour of M/s Ami pigment Ltd and hence the company has filed appeal on the basis of this decision

The company has filed first appeal before The Deputy Commissioner of Commercial Tax–Appeals-III, Gandhinagar against demand of CST (Net) for Rs. 2,68,730 for the financial year 2006-07 for pending " C" forms

The company has also filed first appeal before The Joint Commissioner of Commercial Tax – Appeals against demand of CST (Net) for Rs. 55,83,126 for the financial year 2008-09 for pending " C" forms.

The company has also filed an appeal before The Deputy Commissioner of Commercial Tax–Appeals-III, Gandhinagar against demand of VAT for Rs. 49,27,910 raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division ,wing-III, Gandhinagar for the financial year 2007-08 on account of issue of in put VAT credit reduction method on OGS Branch Transfer and Sample Sales.

The company has also filed an appeal before The Deputy Commissioner of Commercial Tax–Appeals-III, Gandhinagar against demand of VAT for Rs. 53,79,049 raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division ,wing-III, Gandhinagar for the financial year 2009-10 on account of issue of in put VAT credit reduction method on OGS Branch Transfer and Sample Sales.

The company has also filed an appeal before The Deputy Commissioner of Commercial Tax–Appeals-III, Gandhinagar against demand of VAT / CST for Rs. 60,51,080 raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division ,wing-III, Gandhinagar for the financial year 2010-11 on account of issue of in put VAT credit reduction method on OGS Branch Transfer and Sample Sales and OGS Sales.

The company has also filed an appeal before The Deputy Commissioner of Commercial Tax–Appeals-III, Gandhinagar against demand of VAT / CST for Rs. 26,53,636 raised in provisional assessment made by The Asst. Commissioner of Commercial Tax Enforcement Division ,wing-III, Gandhinagar for the period from Apr-11 to Jul-11 (financial year 2011-12 ) on account of issue of in put VAT credit reduction method on OGS Branch Transfer and Sample Sales and OGS Sales.

Excise duty show cause notice from DGCEI-Ahmedabad against the company and the company has filed a reply to show cause notice but the matter is yet pending with the department and till no order is being received.

Disputed Income Tax Liability of Rs. 2746.20 lacs for various Asst. Years for which department has preferred appeals at higher levels. Out of these, liabilities to the extent of Rs. .192.74 lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs. 192.74 lacs towards remaining disputed liabilities and there is no disputed amount remains unpaid.

Disputed Income tax liability of Rs. 133.05 lacs of A.Y. 2009-10 for which CIT (Appeals) have already in favour of assesses but department has preferred appeals at higher levels

Disputed Income tax Liability of Rs. 118.77 lacs of A.Y.2010-11 for which the company has preferred an appeal before the CIT (Appeal) Ahmedabad.


Mar 31, 2012

(1.1) 1,40,61,291 Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years by capitalisation of Reserves.

(1.2) The Company has not issued any shares during the year.

(1.3) The details of shareholders holding more than 5% shares :

(2.1) Rs 240.24 Crore are secured by way of First Mortgage / Charge on the immovable properties of the company situated at Block No.: 160,147A paiki, 162 at Village Dalpur, Taluka-Prantij, Dist: Sabarkantha, Gujarat together with Building and other structure, erection and godowns, fixtures and fittings standing theron and by way of hypothecation on entire current assets and movable assets of the company.

(2.2) Rs 11.75 Crore are secured by way of first pari passu mortgage / charge our land and buildings, plants and machineries, fixd assets of the company situated at Block No: 160,147A paiki, 162 at Village Dalpur, Taluka-Prantij, Dist: Sabarkantha, Gujarat and exclusive First charge over entire Current Assets of the company.

(2.3) Rs 3.50 C rore are secured by way of First Charge on the current Assets and Fixed Assets of the Agro tech Division of the company situated at Block No: 533, at village dalpur, Taluka Prantij, Dist: Sabarkantha by way of Hypho.

(2.4) Rs 3.33 Crore are secured by way of equitable mortgage on freehold Non Agriculture Land bearing survey No.16/paiki 23472 sq.mtrs. At Jawanpura, Tal Idar including Plant & Machinery situated thereon.

(3.1) Working Capital loans are secured by hypothecation of present and future stock of raw materials, stock-in process, finished goods, stores & spares book debts, receivables, etc.

(3.2) Other Loans & Advances from Banks include WCDL and Foreign Currency Loan guaranteed by Directors of the Company.

(3.3) There has been no defaults in repayment of any of the loans or interest thereon as at the end of the year.

OTHER NOTES ON ACCOUNTS

4. During the year, Expenditure incurred of Rs 33,33,333/- (P.Y. Rs 33,52,409/-) towards Exhibition of new products are deferred.

5. The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, sales, and purchases are taken on the basis of details worked out from the bills and the stock records maintained by the company (wherever applicable).

6. In the opinion of the Board of Directors,

(1) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.

(2) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

7. In sample sale only excise and EDU payable on sample sale value is charged as expenses considering no commercial value of samples.

8. Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.

9. Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 are as per available information with the Company.

10. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available we relied on the authentication given by the management.

11. Value of Export calculated at F.O.B. valued: Rs 1417.60 Lacs /-

12. Earning per Share : (AS-20)

i) The amount used as numerator in calculating basic and diluted earning per share is the profit after depreciation and taxes i.e. Rs 18,05,38,579.15/-

13. Borrowing Cost:

Based on the guiding principle given in Accounting standard on "Borrowing Cost" (AS-16) issued by the ICAI, the Company has capitalized Rs Nil/- P.Y. (Rs 1 2, 86,921/-) during the year to the Fixed Assets.

14. Segment Reporting : (AS-17)

Based on the guiding principle given in Accounting standard on "Segment Reporting" (AS-17) issued by the ICAI, the Company's primary business is manufacturing of Tiles, the tiles business of the company incorporate product groups i.e. Ceramic Tiles which mainly have similar risk and returns, accordingly there are no separately segment,

The operation of the Company is in India and all Assets and Liabilities are located in India. And analysis of the sales by Geographical market is given below.

15. Related Party Disclosures under : (AS-18]

During the year the company entered into transaction with the related parties. Those transactions along with related balances as at 31st March, 2012 and for the year then ended are presented in the following.

List of related parties with whom transaction have taken place during the year along with nature and volume of transactions.

16. Contingent Liabilities : (AS-29]

In view of the Accounting Standard issued by ICAI "Provisions and Contingent Liabilities" (AS-29), following contingent liabilities have been identified which have not been provided for in the books of accounts.

Sr. Amount. No. Particulars (Rs In Lacs)

1 Bank Guarantee 1277.18

2 Custom Duty which may arise if obligation for exports is not fulfilled against import of capital goods under EPCG. 3410.41

3 Claims against the Company / Disputed Liabilities not acknowledged as Debts

Sales Tax demands against which Company has preferred appeal. 10709.51

Excise Duty claim by DGCEI-Ahmedabad 2043.18

Income tax 2879.26

Consumer Cases 9.56

4 Letters of Credit opened with Bank 1015.26 The company has filed appeal with Joint Commercial Tax commissioner Appeals for sales tax of Rs 45,07,857 and Rs 19,62,743 of the year 2003-04 and 2004-05 respectively. The dispute is regarding set off against the purchase of fuel not allowed by the Sales Tax Department; however Gujarat High Court has given the decision in favour of M/s Ameepigment Ltd and hence the Company has filed appeal on the basis of this decision.

Further the company has filed appeal with First Appellate Authority for VAT/CST of Rs 55,57,590/- for the year 2006-07 relating to the Input Vat Credit receivable and pending "C" and "F" form.

The company has also filed second appeal before Honorable Gujarat Value Added Tribunal against first appeal orders for the F.Y.2006-07 & F.Y.2007-08 passed under Gujarat Value Added Tax,2003 and the Central Sales Tax Act, 1956 for vat of Rs 4,54,31,883/- & Rs 5,59,12,849/- respectively and for CST of Rs 59,24,51,588/- & Rs 36,51,26,441/- respectively. The hearing of these matters are going on and presently the Honourable Gujarat Value added Tax Tribunal, Ahmedabad has directed to the Sales Tax Department not to take coercive measures against Appellant till 31st August, 2012

Disputed Income Tax liability of Rs 2746.20 lacs for various assessment years for which department has preferred appeals at higher levels. Out of these, liabilities to the extent of Rs 192.74 lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs 192.74 lacs towards remaining disputed liabilities and there is no disputed amount remains unpaid.

Disputed Income Tax liability of Rs 133.05 lacs of A.Y.2009-10 for which the company has preferred an appeal before the CIT (Appeal) Ahmedabad. The company has already paid Rs 20 lacs towards disputed liability.


Mar 31, 2011

1 Advertisement expenditure of Rs. NIL/- (P.Y.Rs.56,63,186/-) is deferred during the year. During the year, Printing & Stationery Expense incurred for New Catalogue & Folder printing of Rs NIL/- (P.Y. Rs.23,53,205) and Expenditure incurred of Rs.33,52,409/-(P.Y.Rs.56,95,151) towards Exhibition of new products are deferred.

2 The quantity of inventories is based upon physical verification by the management and the valuation is also based on details of cost and realizable value (wherever applicable) considering the quality & other relevant factors ascertained by management. The quantities of inventories, sales, and purchases are taken on the basis of details worked out form the bills and the stock records maintained by the Company (wherever applicable).

3. In the opinion of the Board of Directors

a) Current Assets, Loans & Advances are realizable in the ordinary course of business, at the value at which they are stated.

b) The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4 In sample sale only excise and EDU payable on sample sale value is charged as expenses considering no commercial value of samples.

5 Balance of Sundry creditors, debtors, debit/credit balance of loans and advances are subject to confirmation from the respective parties.

6 Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with the current year figures.

7 We are unable to categories the dues to Small Scale Industries (SSI) separately due to lack of information regard to the status of the creditors for goods outstanding above 30 days as on the balance sheet date.

8 We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available we relied on the authentication given by the management.

03. Earning per Share : (AS-20)

i. The amount used as numerator in calculating basic and diluted earning per share is the profit after depreciation and taxes i.e. Rs.20,09,44,093/-

4. Borrowing Cost:-

Based on the guiding principle given in Accounting standard on "Borrowing Cost" (AS-16) issued by the ICAI, the Company has capitalized Rs. 12,86,921/-P.Y. (Rs. 34,46,031 /-) during the year to the Fixed Assets.

5. Segment Reporting : (AS-17)

Based on the guiding principle given in Accounting standard on "Segment Reporting" (AS-17) issued by the ICAI, the Company's primary business is manufacturing of Tiles, the tiles business of the Company incorporate product groups i.e. Ceramic Tiles which mainly have similar risk and returns, accordingly there are no separateble segment,

6. Related Party Disclosures under : (AS-18)

During the year the Company entered into transaction with the related parties. Those transactions along with related balances as at 31st March, 2011 and for the year then ended are presented in the following.

List of related parties with whom transaction have taken place during the year along with nature and volume of transactions.

Associates and Subsidiaries

Subsidiaries : NIL

Relatives of Key Management Personnel

Bhogibhai B Patel Punjabhai Patel

Dhuliben Jivabhai Patel Bhagubhai Punjabhai Patel

Sureshbhai Jivabhai Patel Hiraben Bhagubhai Patel

Chhayaben Sureshbhai Patel Heenaben Kamleshbhai Patel

Bhanuben Mukeshbhai Patel Danjibhai P Ppatel

Saunak Mukeshbhai Patel

Key Management Personnel

Hasmukhbhai D. Patel Kamleshbhai B. Patel

Mukeshbhai J. Patel Rameshbhai B. Patel

7. Contingent Liabilities : (AS-29)

In view of the Accounting Standard issued by ICAI "Provisions and Contingent Liabilities" (AS-29), following contingent liabilities have been identified which have not been provided for in the books of accounts.

Particulars Amount (RS.In Lacs)

a Bank Guarantee 1216.50

b Custom Duty which may arise if obligation for exports is not fulfilled 435.59 against import of capital goods under EPCG.

c Claims against the Company / Disputed Liabilities not acknowledged as Debts Sales Tax demands against which Company has preferred appeal. 120.28

Excise Duty claim by DGCEI-Ahmedabad 2043.18

Income tax 2746.20

Consumer Cases 16.51

d Letters of Credit opened with Bank 78.16

1) The Company has filed appeal with Joint Commercial Tax commissioner Appeals for sales tax of Rs.4507857 and Rs.1962743 of the year 2003-04 and 2004-05 respectively. The dispute is regarding set off against the purchase of fuel not allowed by the Sales Tax Department; however Gujarat High Court has given the decision in favour of M/s Ameepigment Ltd and hence the Company has filed appeal on the basis of this decision.

Further the Company has filed appeal with First Appellate Authority for VAT/CST of Rs.55,57,590/-for the year 2006-07 relating to the Input Vat Credit receivable and pending "C"and "F" form.

Disputed Income Tax liability of Rs.2746.20 lacs for various assessment years for which department has preferred appeals at higher levels. Out of these, liabilities to the extent of Rs.192.74 lacs have remained pending after CIT (Appeals) order effect. The Company has already paid Rs.192.74 lacs. towards remaining disputed liabilities and there is no disputed amount remains unpaid.

 
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