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Notes to Accounts of Emmsons International Ltd.

Mar 31, 2015

1. Employee benefit plans

As per the Accounting Standard 15 'Employee Benefits' the disclosure of employee benefit as defined in the Accounting Standard are given below:

2. Segment reporting:

Segment reporting as per AS-17 is not applicable to the company as it does not have any reportable segment.

3. Related party disclosure

As required by Accounting Standard-18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, relevant information is provided here below:

(d) Tax Demand totaling Rs. 8.60 Lacs for AY 2004-2005, Rs. 23.43 Lacs for AY 2013-2014 and Rs. 2.71 Lacs for AY 2014-15 raised by the Income Ta x Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year 2008-2009 raised by Income Tax Department is under rectification for apparent error.

(e) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award against the company for Rs.890.25 lacs. However, both the parties have filed separate applications in the court with requests for setting aside the award. The hon'ble court has now dismissed the application of PSWC in the month of August 2014 . The petition of Company is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case.

4. In a suit for recovery against Harshvardhan Chemicals & Minerals Ltd., Udaipur (HCML), the High Court of Delhi has passed a decree of Rs. 55.68 lacs in favour of the company. However, HCML approached BIFR for revival and rehabilitation. The BIFR has recently dismissed HCML's application and ordered for winding up. Now HCML has approached AIIFR. The decree is alive and effective and the company hopes to execute it..

5. License in hand valued at Rs 21,46,73,628/- appearing in note-16 are due to expire in financial year 2015-16. If not sold/ utilized the entire amount shall be required to be written off in FY 2015-16.

6. Un hedged foreign currency exposure

The Company is in the business of export and import of commodities. The net un hedged foreign currency exposure as on 31.03.2015 is USD 26.19 Million and Euro 9.41 Million total equivalent INR 22690.70 lacs ( 31.03.2014 USD 3.72 million and Euro 4.52 million, total equivalent INR 5950.33 lacs).

7. Micro and small enterprises

Disclosure of Sundry Creditors under current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006". Amounts due as on 31st March, 2015 to Micro, Small and Medium Enterprises on account of principal amount together with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).

8. Previous years figures has been regrouped / restated where ever found necessary.


Mar 31, 2014

1 Corporate Information:

The Company is engaged in Trading of Agro/Energy Commodities having global presence. The commodities traded include Rice, Wheat, Sugar, Maize, Soya meal, Barley, and Pulses in addition to Coal and Sulphur among other things. The trade network of the company has expanded to all corners of the world.The company has maintained long and sustained relationships with its clients across the globe due to its quality products and efficient services.

2 Segment reporting:

Segment reporting as per AS-17 is not applicable to the company as it does not have any reportable segment.

3 Related party disclosure

As required by Accounting Standard-18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, relevant information is provided here below:

(a) Related parties with whom transactions have taken place during the year:

4 Earning per share

Basic and diluted earnings per share are calculated by dividing the net Profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares, accordingly, basic, and diluted earning per share are the same.

5 Contingent liabilities and commitments (to the extent not provided for)

Particulars Current year Previous year

Contingent liabilities

(a) Guarantees to sale tax authorities 590000 590000

(b) Guarantees - Corporate Guarantee for credit facility to subsidiary 2993685170 2714261224

(c) Letter of credit issued for purchase - 166162500

(d) Other guarantees 40000000 91517984

(e) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005 raised by the Income Tax Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year 2008-2009 raised by Income Tax Department is under rectification for apparent error.

(f) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award against the company for Rs.890.25 lacs. However, both the parties have filed separate applications in the court with requests for setting aside the award.The case is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case.

6 In a suit for recovery against Harshvardhan Chemicals & Minerals Ltd., Udaipur (HCML), the High Court of Delhi has passed a decree of Rs. 55.68 lacs in favour of the company. However, HCML approached BIFR for revival and rehabilitation. The BIFR has recently dismissed HCML''s application and ordered for winding up. The decree is alive and effective and the company hopes to execute it..

7 The company has not been able to sell/use export incentive duty scripts of Rs. 27.18 Cr, outstanding for a considerable period of time due to actual user condition, accordingly the same have been re-classified as non-current assets.

8 Unhedged foreign currency exposure

The Company is in the business of export and import of commodities. The net unhedged foreign currency exposure as on 31.03.2014 is USD 3.72 million and Euro 4.52 million, total equivalent INR 5950.33 lacs (31.03.2013: USD (-) 35.34 million equivalent to INR (-) 19191.00 lacs).

9 Micro and small enterprises

Disclosure of Sundry Creditors under current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006".Amounts due as on 31st March, 2014 to Micro, Small and Medium Enterprises on account of principal amount together with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).

10 Previous years figures has been regrouped / restated where ever found necessary.


Mar 31, 2013

1 Corporate Information:

The Company is engaged in Trading of Agro/Energy Commodities having global presence. The commodities traded include Rice, Wheat, Sugar, Maize, Soya meal, Barley, Sorghum and Pulses in addition to Coal and Sulphur among other things. The trade network of the company has expanded to all corners of the world. The company has maintained long and sustained relationships with its clients across the globe due to its quality products and efficient services.

2 Segment reporting:

Segment reporting as per AS-17 is not applicable to the company as it does not have any reportable segment.

3 Earning per share

Basic and diluted earnings per share are calculated by dividing the net Profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares, accordingly, basic, and diluted earning per share are the same.

4 Contingent liabilities and commitments (to the extent not provided for)

Particulars Current year Previous year

Rs. Rs.

Contingent liabilities

(a) Guarantees to sale tax authorities 590000 590000

(b) Guarantees - Corporate Guarantee for credit facility to subsidiary 2714261224 2543807619

(c) Letter of credit issued for purchase 166162500 -

(d) Other guarantees 91517984 143717504

(e) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005 raised by the Income Ta x Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Ta x demand of Rs. 10.11 Lacs For Assessment Year 2008-2009 raised by Income Ta x Department is under rectification for apparent error.

(f) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award for Rs.890.25 lacs. However, both the parties have filed separate applications in the court with requests for setting aside the award. The case is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case.

5 Unhedged foreign currency exposure

The Company is in the business of export and import of commodities. The net unhedged foreign currency exposure as on 31.03.2103 is USD 11.33 million equivalent INR 6153.34 lacs (31.03.2012 USD (-) 7.17 million equivalent to INR (-) 3658.64 lacs)

6 Micro and small enterprises

Disclosure of Sundry Creditors under current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006". Amounts due as on 31st March, 2013 to Micro, Small and Medium Enterprises on account of principal amount together with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).

7 Previous years figures has been regrouped / restated where ever found necessary.


Mar 31, 2012

1 Corporate Information:

The Company, although only approx two decade old, is today a name to reckon with in Trading of Agro/Energy Commodities globally. Emmsons Trading basket includes Rice, Wheat, Wheat- flour, Sugar, Maize, Soya meal, Rapeseed Meal and Pulses in addition to Coal and Sulphur among other things. The strength of the company lies in the fact that it has expanded its to all corners of the world. The company has maintained long and sustained relationships with its clients across Far-East Asian region, Australia, South America, Africa and the Middle East due to its quality products and efficient services.

2 Share Capital

The authorized , issued subscribed and fully paid-up share capital comprises of equity shares having a par value of Rs. 10 /- each.

3 Note on money received against share warrants:

During previous year ended on 31.03.2011 the company has received Rs. 2250000 as paid up money @ Rs. 2.50 per equity warrant on allotment of 900000 equity warrants of Rs. 10/- each issued at premium of Rs 110/- each Convertible in to equity share of Rs. 10/- each. The warrant holders were given option to exercise the right for conversion of warrant into Equity Shares within 18 months from the date of the allotment of warrants i.e. within 18 months from 30th August, 2010 (Date of allotment of warrants) by paying the rest 75% of the issue price of warrants (i.e., Rs. 90/- per warrant). However one of the allottees of equity warrant holding 50,000 warrants, has not exercised his right for conversion of the warrants into shares within the time stipulated, which lapsed on 29th February, 2012. Accordingly, as per SEBI (ICDR) Regulation, 2009, the aforesaid warrants stand lapsed and the consideration paid in respect of such warrants at the time of its allotment was forfeited. warrant holder's holding 850000 equity warrants exercised option of conversion of equity warrants in to equity share capital.

(a) Packing Credit with Oriental Bank of Commerce-Repayable on demand-Secured against hypothecation of Stocks and advances, equitable mortgage of Properties and Personal guarantees of Directors

(b) Packing Credit with Indian Overseas Bank- Repayable on demand-Secured against hypothecation of Stocks and advances, equitable mortgage of Properties and Personal guarantees of Directors

(c) Packing Credit with Bank of Baroda-Repayable on demand-Secured against hypothecation of Stocks, equitable mortgage of Properties and Personal guarantees of Directors

(d) Packing Credit with Allahabad Bank-Repayable on demand-Secured against hypothecation of current assets, equitable mortgage of Properties and Personal guarantees of Directors

(e) Buyer's Credit through Oriental Bank of Commerce-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors

(f) Buyer's Credit through Indian Overseas Bank-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors

(g) Buyer's Credit through Bank of Baroda-Repayable on demand-Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors

(h) Buyer's Credit through Allahabad Bank-Repayable on demand-Secured against hypothecation charge over the the goods, equitable mortgage of Properties and Personal guarantees of Directors

Note on repayment terms and security of short term borrowings:

(a) HDFC Bank Car Loan A/c No 17259339-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(b) Indian Overseas Bank Corporate loan A/c No 271000002-Repayble in 22 Quarterly Installments and Interest Payable Monthly-Secured against the personal guarantees of Directors

(c) Kotak Mahindra Prime Car Ltd. Loan A/c No. CF6509815-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(d) Kotak Mahindra Prime Ltd. Car Loan A/c No CF6677652- Repayable in 36 Monthly EMI-Secured against hypothecation of Car

(e) Kotak Mahindra Prime Ltd. Car Loan A/c No CF7056360-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(f) Kotak Mahindra Prime Ltd. Car Loan A/c No CF7106212-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(g) Kotak Mahindra Prime Ltd. Car Loan A/c No CF7569170-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(h) Kotak Mahindra Prime Ltd. Car Loan A/c No CF5609590-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(i) Kotak Mahindra Prime Ltd. Car loan A/c No CF5609981-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(j) Volkswagen Finance Pvt Ltd. Car loan A/c No 20111000714-Repayble in 36 Monthly EMI-Secured against hypothecation of Car

(ii) Defined Benefit Plan:

The Company offers the gratuity and leave encashment employee benefit schemes to its employees.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

(ii-e) Actuarial Assumptions:

Demographic Assumptions:

Mortality: Published rates under Indian assured lives mortality (1994-96) (modified) ultimate table.

Indian assured lives mortality (1994-96) (modified) ultimate table are used of calculation as on 31.03.2012, 31.03.2011 and 31.03.2012

4 Segment reporting:

Segment reporting as per AS-17 is not applicable to the company as it does not have any reportable segment.

5 Related party disclosure

As required by Accounting Standard-18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, relevant information is provided here below:

(a) Related parties with whom transactions have taken place during the year:

6 Earning per share

Basic and diluted earnings per share are calculated by dividing the net Profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares, accordingly, basic, and diluted earning per share are the same.

7 Contingent liabilities and commitments (to the extent not provided for)

Particulars Current year Previous year

Contingent liabilities

(a) Guarantees to sale tax authorities 590000 590000

(b) Guarantees - Corporate Guarantee for credit facility to subsidiary 2543807619 1525404000

(c) Letter of credit issued for purchase - 742757000

(d) Other guarantees 143717504 352363000

(e) Other money for which the Company is contingently liable - -

(f) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005 raised by the Income Tax Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year 2008-2009 raised by Income Tax Department is under rectification for apparent error.

(g) The trade receivable includes an amounts of Rs. 43.19 lacs for which the company had obtained a decree against State Bank of India and Unialchem Fertilizer Limited. State Bank of India filed an appeal against the decree in the Supreme court of India. The supreme court has now remanded the case back to high court. The management is confident of recovering the amount after the disposal of at the case and the amount is considered good for recovery.

(h) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award for Rs.890.25 lacs. However, both the parties have filed separate applications in the court with requests for setting aside the award. The case is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case.

(i) The Olympia Spinning & Weaving Mills Ltd. Pakistan had commenced arbitration proceeding against Company for recovery of alleged claim on account of non supply of cotton. The arbitration tribunal has issued an award for USD 607852.00 (Equivalent Rs.271.04 Lacs) against the company. Olympia has filed an application of execution of award in Delhi High Court. The company has opposed the execution and the case is still in progress.

(j) An arbitration award was passed against the company in its case against Bunge (London) limited. However the parties have since reached amicable agreement on the above arbitration and the matter is fully settled .

Note 8 (iii-c) :

Emmsons Grains Limited issued 300000 equity shares @ USD 1/- each to Emmsons International Limited on 23rd December, 2011.

9 Micro and small enterprises

Disclosure of Sundry Creditors under current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Amounts due as on 31st March, 2012 to Micro, Small and Medium Enterprises on account of principal amount together with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).

10 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous years figures have been recast / restated.


Mar 31, 2011

1. Previous year's figures have been regrouped, rearranged, reworked and reclassified wherever necessary to make them comparable with corresponding figures of currents year.

2. Figures have been rounded off to the nearest rupee. Figures in bracket indicate negative balances.

3. Amount under the head "Partly Paid up Equity Warrants" amounting to Rs. 27000000/- has been received as part payment for allotment of 900000 equity warrants of Rs. 10/- each at a premium of Rs. 110/-, convertible into same number of equity share, to the promoter group on preferential basis in accordance with in principle approval from Bombay Stock Exchange. Balance consideration to be demanded at the time of exercise of option by the warrants holder.

4. WEALTH TAX :

The provision of taxable wealth has been made as per the provisions of the Wealth Tax Act, 1957.

5. INCOME TAX :

Provision for Income Ta x has been made as per the provisions of Income Ta x Act, 1961.

6. Balances of Debtors, Creditors, Loans and advances are subject to Confirmation. The debtors include an amount of Rs. 43.19 Lacs (Previous year: Rs. 43.19 Lacs), for which the company had obtained a decree against State Bank of India and Unialchem Fertilizer Limited. The execution of Decree is in abeyance as the State bank of India has filed an appeal in the Supreme Court of India .The management is confident of recovering the amount after the disposal of at the appeal and the amount is considered good for recovery.

7. A sum of Rs. 580.39 Lacs (Previous Year Rs. 580.39 lacs) paid by the company to Food Corporation of India and others against purchases of rice and wheat on account of arbitrary price increase by FCI in violation of its contractual obligation with the company, has not been treated as part of purchase cost for the concerned financial year and the same is shown under Loans and advances. Company is taking all remedies for recovery for said amount in accordance with legal opinion obtained by the company.

8. SUITS FILED AGAINST THE COMPANY:

(I) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award for Rs.890.25 lacs. However, both the parties have filed separate applications in the court with requests for setting aside the award. The case is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case.

(II) The Olympia Spinning & Weaving Mills Ltd. Pakistan had commenced arbitration proceeding against Company for recovery of alleged claim on account of non supply of cotton. The arbitration tribunal has issued an award for USD 607852.00 (Equivalent Rs.271.04 Lacs) against the company. Olympia has filed an application of execution of award in Delhi High Court. The company has opposed the execution and the case is still in progress and the company is fairly confident of its position in the case, hence no provision for the same has been made. The company expects to get a favorable decision in the case.

(III) In arbitration proceedings in London, an award for USD 8428725.96 (Equivalent Rs.3758.37 Lacs) had been passed against the company. The arbitration proceedings were started by M/s Bunge (London) Limited in respect of purchase contracts for Sugar. The company has been advised by the lawyers that it has strong defence available, hence no provision for the same has been made.

9. SEGMENT REPORTING :

Segment reporting as per AS-17 is not applicable to the company as it does not have any reportable Segment.

10. Disclosure of Sundry Creditors under current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Amounts due as on 31st March, 2011 to Micro, Small and Medium Enterprises on account of principal amount together with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).

11. Contingent Liabilities not provided for : (Amount Rs. in Lacs)

a) Guarantees to sales tax authorities : Rs. 5.90 (Previous year Rs.5.90)

b) Corporate Guarantees for Credit : Rs.15254.04 (Previous facilities to subsidiary year 2893.50)

c) Letter of Credit issued for : Rs.7427.57 (Previous year purchases 862.50)

d) Other Guarantees : Rs. 3523.63 (Previous year Rs. 827.43)

e) The Entry Tax demands Rs. 11.43 lacs raised by the authorities have been protested by the company and final determination is yet to be made by the appellate authorities. The company has however made the payment against these demands under protest and the same is included in the list of Loans and advances. In the event case is finally decided against the Company the said amount of Rs. 11.43 Lacs shall be required to be charged as an expense to Profit & Loss account.

f) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005 raised by the Income Ta x Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year 2008-2009 raised by Income Tax Department is under rectification for apparent error.

12. RELATED PARTIES DISCLOSURES:

As required by Accounting Standard-18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, relevant information is provided here below: Related parties with whom transactions have taken place during the year:

S. NAMES RELATIONSHIP NO.

a) Mr. Anil Monga Key Managerial Personnel

b) Mr. Rajesh Monga Key Managerial Personnel

c) Mr. Shivaz Monga Key Managerial Personnel

d) Mr. Vijay Kumar Kakkar Key Managerial Personnel

e) Mr. Viresh Shankar Mathur Key Managerial Personnel

f) Mr. Mohd. Tariq Raza Key Managerial Personnel

g) Mr. Satish Chandra Gupta Key Managerial Personnel

h) Ms. Manya Kumar Key Managerial Personnel's relative

i) M/s Emmsons S.A. Subsidiary (Control Exists)

J) M/s Emmsons Gulf DMCC Subsidiary (Control Exists)


Mar 31, 2010

1. Previous years figures have been regrouped, rearranged, reworked and reclassified wherever necessary to make them comparable with corresponding figures of current year .

2. Figures have been rounded off to the nearest rupee. Figures in bracket indicate negative balances.

3. FORFEITER OF EQUITY WARRANTS :

During the Financial Year 2008-09, the company had allotted to the promoters group on preferential basis 780000 Equity warrants at the rate of Rs. 250/- per equity warrant convertible into 780000 Equity Shares of Rs. 10/- each at a premium of Rs. 240/- per share against payment of Rs. 25/- per warrant in terms of approval received from The Bombay Stock Exchange Limited. For non receipt of balance amount Company has forfeited all 780000 Equity Warrants during the year and amount of Rs.19500000/- received alongwith application has been transferred to Capital Reserve Account.

4. WEALTH TAX :

The provision of taxable wealth has been made as per the provisions of the Wealth Tax Act, 1957.

5. INCOME TAX :

Provision for Income Tax has been made as per the provisions of Income Tax Act, 1961.

6. Balances of Debtors, Creditors, Loans and advances are subject to Confirmation. The debtors include an amount of Rs. 43.19 Lacs (Previous year: Rs. 43.19 Lacs), for which the company had obtained a decree against State Bank of India and Unialchem Fertilizer Limited. The execution of Decree is in abeyance as the State bank of India has filed an appeal in the Supreme Court of India The management is confident of recovering the amount after the disposal of at the appeal and the amount is considered good for recovery.

7. A sum of Rs. 580.39 Lacs (Previous Year Rs. 580.39 lacs) paid by the company to Food Corporation of India and others against purchases of rice and wheat on account of arbitrary price increase by FCI in violation of its contractual obligation with the company, has not been treated as part of purchase cost for the concerned financial year and the same is shown under Loans and advances. Company is taking all remedies for recovery for said amount in accordance with legal opinion obtained by the company.

8. The Company has entered into agreement of purchase of semi finished flat and has spent Rs. 48.75 lacs on construction and shown under the head Capital work in progress. Future expenses to be incurred on said flat are estimated at Rs. 25 lacs.

9. SUITS FILED AGAINST THE COMPANY :

(I) Legal suit filed by owner of vessel hired by the company which received minor damage on transportation of goods has been finally settled. A sum of Rs. 47.00 lacs was provided in earlier year and rest of the amount has been charged to Profit & Loss Account.

(II) The company has entered an arbitration suit against the Punjab State Warehousing Corporation. The arbitration tribunal has issued its award. However, both the parties have filed separate applications in the court with requests for setting aside the award. The case is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position and expects to get a favorable judgment in the case.

(III) The company has entered an arbitration suits against the Mawana Sugar Ltd for not lifting of Sugar on account of Government ban on sugar. Claims and counter claims have been filed by both the parties before the arbitrators. The company expects to settle the dispute soon.

(IV) The Olympia Spinning & Weaving Mills Ltd. Pakistan has commenced arbitration proceeding against Company for recovery of alleged claim on account of non supply of cotton. The company has contested the claim that the contract was cancelled as a result of default of Olympia. The company has filed the appeal, the same is still in progress and as such quantification of any liability or recovery, if any, is not possible, hence no provision for the same has been made. However, the company is fairly confident of its position in the case and expects to get a favorable award in the case.

Computation of Net Profit u/s 198 read with Section 349 of the Companies Act, 1956 for calculation of commission Payable to Directors .

10. SEGMENT REPORTING :

Segment reporting as per AS-17 is not applicable to the company as it does not have any reportable segment.

11. Contingent Liabilities not provided for : (Amounts Rs. In Lacs)

a) Guarantees to sales tax authorities : 5.90 (Previous year 5.90)

b) Corporate Guarantees for Credit facilities to subsidiary : 2893.50(Previous year Nil

c) Letter Credit issued for purchases : 862.50 (Previous year 21.23

d) Other Guarantees : 827.43 (Previous year 160.26)

 
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