Mar 31, 2014
(Figures in Rs.)
1. Contingent liabilities not provided for:
For the For the
Year Year
Ended Ended
Particulars March 31, March
2014 31,2013
Counter 10,000 10,000
Guarantee given
to bankers for
guarantees
issued by the
banker (Net of
margins)
Security 23,083,887 23,083,887
provided against
amount withdrawn from
the Hon''ble High
Court.(refer note 26)
2. The company had, in an earlier year, won an arbitration award in
respect of an amount aggregating to Rs. 23,083,887 recoverable from
Hindustan Copper Limited (HCL) along with interest. The Additional
District Judge, Khetri, Rajasthan has dismissed the appeal filed by HCL
against the arbitration award and passed an order for decree. The HCL
has preferred an appeal against the said order in the High Court of
Judicature for Rajasthan at Jaipur bench, Jaipur. The Hon''ble High
Court have admitted HCL''s appeal and granted interim stay and directed
HCL to deposit the award amount of Rs. 23,083,887. The Honorable Supreme
Court on an appeal of HCL had modified the award and the company was
permitted to withdraw the said amount by furnishing security to the
satisfaction of the Court. The company has withdrawn the money by
furnishing the said Security. The case is pending in the High Court of
Rajasthan.
3. An arbitration award in respect of an amount aggregating to Rs.
68,820,333 with interest thereon, claimed from HCL is passed by the
arbitral tribunal in favour of the company. Hindustan Copper Limited
(HCL) has preferred an appeal under Section 34 of The Arbitration and
Conciliation Act, 1996 against the award in the court of the District
Judge, Jhunjhunu. The case is being heard by the court as per
procedure.
4. Trade Receivable aggregating to Rs. 57,731,233 and other Receivable Rs.
81,920,827 are overdue for recovery. The management is hopeful of
recovering the amount in due course of time and therefore provision
there against is not considered necessary.
5. Advances of Rs. 7,218,468 (7,323,468) are considered doubtful of
recovery. The management is hopeful of recovering the amount in due
course of time and therefore provision there against is not considered
necessary.
6. The company has given interest free loan aggregating to Rs.
17,964,928 as at March 31, 2014 to a borrower company. The borrower
company had given a proposal to the Company to convert its borrowings
into Equity. The company is still in the process of finalization/
acceptance of the proposal.
7. During the year, Long term gas supply agreement with the customer
has expired. The company is negotiating to extend the same as the
customer was not able to purchase minimum guaranteed quantity as per
the agreement and their plant remained closed. The restoration of
operation of the company dependent upon the extension of the supply
agreement.
8. There are no dues of micro, small and medium enterprises. The
information required to be disclosed under the Micro, Small and Medium
Enterprises Development Act, 2006 has been determined to the extent
such parties have been identified on the basis to information available
with the company.
9. Related Party Disclosure: List of related parties
Relationship Name of the related party
Parties under common control Bhagawati International Limited
Bhagawati Combat Systems Limited Lavino Portfolios Private Limited
Kamakshi Bricon Private Limited Flow Tech Hotels Private Limited
Key management personnel r. Rakesh S. Bhardwaj (Managing Director)
and their relatives
Mrs. Shachi Bhardwaj (Relative of Managing
Director)
Mr. Vivek Sharma (Whole Time Director)
10. Balance due to/ from various parties are subject to confirmations/
reconciliations thereof. Management does not consider any adjustment
on completion of reconciliation/ confirmation.
11. Employee Benefits
The following table sets out the status of the gratuity plan and leave
encashment and the amounts recognized in the Company''s financial
statements as at March 31, 2014.
12. Figures of previous years have been regrouped or rearranged
wherever found necessary. As per our report of even date attached.
Mar 31, 2010
1. Contingent liabilities not provided for: (Amount in Rs.)
Particulars Year ended Year ended
March 31, 2010 March 31, 2009
Counter Guarantee given
to bankers for guarantees 500,000 10,000
issued by the banker
(Net of margins)
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for [net of advances Rs. 0.00 (previous year
Rs. 0.00)].
3. The company has not received the required information from the
suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 and hence the information could not
be compiled and disclosed.
4. The company had won an arbitration award in respect of an amount
aggregating to Rs. 23,083,887 recoverable from Hindustan Copper Limited
(HCL) along with interest. The Additional District Judge, Khetri,
Rajasthan has dismissed the appeal filed by HCL against the arbitration
award and passed an order for decree. The HCL has preferred an appeal
against the said order in the High Court of Judicature for Rajasthan at
Jaipur bench, Jaipur. The Honble High Court have admitted HCLs appeal
and granted interim stay and directed HCL to deposit the award amount
of Rs. 2,3083,887. The Honorable Supreme Court on an appeal of HCL had
modified the award and the company was permitted to withdraw the said
amount by furnishing security to the satisfaction of the Court. The
company has withdrawn the money by furnishing the said Security. The
case is pending in the High Court of Rajasthan.
5. An arbitration award in respect of an amount aggregating to Rs.
68,820,333 with interest thereon, claimed from HCL is passed by the
arbitral tribunal in favour of the company. Hindustan Copper Limited
(HCL) has preferred an appeal under Section 34 of The Arbitration and
Conciliaton Act, 1996 against the award in the court of the District
Judge, Jhunjhunu. The case is being heard by the court as per
procedure.
6. Advances of Rs. 23,911,431 (Rs. 22,003,031), Security Deposit of
Rs. 300,000 (? 300,000) and Sundry Debtors of Rs. 9,978,855 are
considered doubtful of recovery. The management is hopeful of
recovering the amount in due course of time and therefore provision
there against is not considered necessary.
7. The company has entered in to an agreement with Sunflag Iron &
Steel Company Limited (Sunflag) to sell its Air Separation Plant (120
TPD) to be installed at Sunflags Plant location at Bhandara Road
(Warhi), Maharashtra. During the year, major part of the said plant
has been delivered by the company. However, the title of the plant will
pass to the Sunflag on completion of delivery. Pending completion of
delivery and transfer of title, the cost of plant having the aggregate
net written down value of Rs. 93,482,377 (Gross value Rs. 393,213,932
and accumulated depreciation of Rs. 299,731,555) related to such plant.
8. Sitting fee paid to the Directors is disclosed under Schedule 14 -
Administrative & Other Expenses.
9. In accordance with Accounting Standard (AS 22) on "Accounting for
Taxes on Income" issued by the ICAI, the company has accounted for
deferred taxes during the year.
10. Balance due to /from various parties are subject to confirmations/
reconciliations thereof. Management does not consider any adjustment on
completion of reconciliation /confirmation.
11. Employee Benefits
The most recent actuarial valuation of plan assets and the present
value of the defined benefit obligation for gratuity and leave
encashment were carried out at March 31, 2010 by an actuary. The
present value of the defined benefit obligations and the related
current service cost and past service cost, were measured using the
Projected Unit Credit Method.
12. Figures of previous year have been regrouped or rearranged
wherever found necessary.
13. Schedules 1 to 17 forms an integral part of the accounts and have
duly been authenticated.
Mar 31, 2009
1. Contingent liabilities not provided for:
Particulars Year ended Year ended
March 31, 2009 March 31, 2008
Rupees Rupees
Counter Guarantee given
to bankers for guarantees
issued by the banker (Net
of margins) 10,000 26,66,000
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for [net of advances of Rs. Nil (previous year
Rs. Nil)].
3. The company has not received the required information from the
suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 and hence the information could not
be complied and disclosed.
4. The Company had made claims aggregating to Rs. 96,930,680 on
Hindustan Copper Limited (HCL) in earlier years towards non-compliance
of agreement including Minimum Off-take Guarantee. HCL had also
preferred claim for Rs. 61,800,689 on the Company for non-supply. Both
the parties have disputed the claims of each other and referred the
matter to arbitrator for settlement. Subsequent to the year end, the
case has been decided in favor of the Company and its claim of Rs.
68,820,333 and interest thereon aggregating to Rs. 39,159,711 and the
claim of HCL was not allowed. The Award is under appealable period.
5. The company had won an Arbitration award in respect of an amount
aggregating to Rs. 23,083,887 recoverable from HCL. The Additional
District Judge, Khetri, Rajasthan has dismissed the appeal filed by HCL
against the arbitration award and passed an order for decree. The HCL
has preferred an appeal against the said order in the High Court of
Judicature for Rajasthan at Jaipur bench, Jaipur. The Honble High
Court have admitted HCLs appeal and granted interim stay and directed
HCL to deposit the award amount of Rs. 23,083,887 and the Company was
permitted to withdraw the said amount by furnishing security to the
satisfaction of the Court and filling undertaking for restitution with
interest. The Company has withdrawn the money by furnishing the said
documents.
6. Advances of Rs. 22,003,031 (22,002,981) and Security Deposit of
Rupees 300,000 (300,000) are considered doubtful of recovery. The
management is hopeful of recovering the amount in due course of time
and therefore provision there against is not considered necessary.
7. The Company had entered into an agreement with Sunflag Iron & Steel
Company Limited (Sunfiag) to provide its Air Separation Plant (120
TPD) on lease for a period of ten years at Sunflags Plant location at
Bhandara, Maharashtra. Subsequent to year ended, Sunflag has agreed to
buy the said plant and an agreement has been entered into for this
purpose.
8. Sitting fee paid to the Directors is disclosed under Schedule 15 -
Administrative & Other Expenses.
9. Balance due to /from various parties are subject to confirmations
/ reconciliations thereof. Management does not consider any adjustment
on completion of reconciliation /confirmation.
10. Employee Benefits
The most recent actuarial valuation of plan assets and the present
value of the defined benefit obligation for gratuity and leave
encashment were carried out at March 31, 2009 by an actuary. The
present value of the defined benefit obligations and the related
current service cost and past service cost, were measured using the
Projected Unit Credit Method.
11. Figures of previous year have been regrouped or rearranged
wherever found necessary.
12. Schedulesl to 17 forms an integral part of the accounts and have
duly been authenticated.