Dec 31, 2012
1. Contingent labilities and Commitments made by the company
1. Estimated amount of contracts remaining to be executed on capital
account paid and not provided as on 31st December, 2012 Rs. Nil (net of
advances). (Previous year Rs. 76.24 Lacs).
2. Contingent Liabilities not provided for:
(Rs in Lakhs)
Sr. items 01.07.2011- 01.04.2010-
No 31.12.2012 30.06.2011
(i) Regarding Income tax on account
of disputes raised by the Income
tax department under the Income
tax, Act 1961. Supreme Court 238.22 238.22
Madras High Court 303.73 303.73
Demand Notice'' for TDS, ITO, Mumbai. 154.4 151.69
(ii) Service Tax and Penalty demanded on
technology transfer agreement. CESTAT 485 485
(Rs in Lakhs)
Sr Items 01.07.2011- 01.04.2010-
No 31.12.2012 30.06.2011
Service Tax demand on Goods
Transport Agency during the Year. 6.37 6.37
Service tax credit denial on outward
freight and canteen services
Commissioner Appeals 76.63 43.46
CESTAT 16.76 16.76
(iii) Central Excise: Claims against the
company on various issues pending
Commissioner Appeals 66.56 66.56
CESTAT 93.44 93.44
High Court 185.36 185.36
Deputy Commissioner of Central
Excise - Non payment of Excise Duty 163 Nil
(iv) Central Excise: Method of calculation
of duty under notification 2/95&
other valuation issues.
Supreme Court 121 121
(v) Irrigation Department- Government
of Maharashtra High Court 2835 Nil
(vi) Pending Export obligations under
Advance Licences 1768.38 274.45
Penalty 50 Nil
(vii) Labour Matters 10.86 9.72
(vii) Customs
ommissioner Appeal: PBS wrong
import of PVC '' 5 Nil
Import of PBS without MOEF
permission DR1 53 Nil
(x) Labour Settlement 27.7 6 Nil
(xi)'' Guarantees given by the company 500.00 3300.00
(xii) Others 202.74 Nil
b) Claims against the Company not acknowledged as debts Rs. Nil
Previous year (Rs.54.87 Lacs).
3. There are Micro, Small and Medium Enterprises, as defined in the
Micro Small Medium Enterprises Development Act, 2006 to whom the
company owes dues on account of principal amount together with
interest.
The above information regarding Micro Small and Medium Enterprises has
been determined to the extent such parties have been identified on the
basis of information available with the company. This has been relied
upon by the auditors. i) TGI Packaging Limited 9.10 Lacs
ii) Aruna Chaleswara Industries 5.45 Lacs
4. Discontinuing Operations
(i) The company has entered into Memorandum of Understanding (MOU)
dated 19th December, 2012 for sale of its asset at Manali Chennai -
Land, Factory, Building, Plant and Machinery, Office Equipment,
FurYiiture and Fixture and Inventory on an "As is where is" basis for
an aggregating consideration of Rs. 355 Crores. The MOU is subject to
all the necessary and required approvals. Effect of the above MOU has
been given in these Accounts.
(ii) The Company was operating only in single Product - Polyester
Products which has been discontinued
(iii) Amounts of revenue and expenses in respect of the ordinary
activities attributable to the discontinuing operation during the
current financial reporting period are Rs. 3866.50 Lacs
(iv) Carrying amount of Rs 36522.38 Lakhs Liabilities to be settled as
on 31.12.12.
(v) Allocation of Sale Proceeds to Land, Inventory and Other Fixed
Assets
(vi) The Company has Sold its inventory consisting of Raw Material,
Semi Finished Goods, Finished Goods, Stores and Spares as per above MOU
as per details given below.
5. Interest received on Margin Money placed for Working Capital and
other interest income aggregating to Rs. 107.22 Lakhs (Previous Year
64.77 lakhs) has been netted off against the Interest expenses incurred
on Working Capital and Term Loan.
6. The Sundry Debtors, Sundry Creditors, Loans, Advances, deposits
and other current liabilities are subject to confirmation and
consequent reconciliation.
7. The Company operates in one segment i.e Polyesters Products.
8. Figures of the Previous Year have been regrouped and reclassified
wherever necessary to confirm to the Current Year Classification.
9. These accounts being for the period of 18 months hence the
previous year figure are not comparable with Current Period.
10. This being the first year of Revised Schedule VI hence previous
year''s figures are realigned in revised Schedule VI format.
Mar 31, 2010
1. During the year 2007-08 the Company had revalued Part of the Land
as on 16th February,2008. The Net increase in the Net Book value
arising out of revaluation had been credited to Revaluation Reserve
Account. Revaluation is based on the Valuation Report of M/s. Kanti
Karamsey & Co. dated 18th February, 2008.
2. Estimated amount of contracts remaining to be executed on capital
account paid and not provided on 31st March, 2010 Rs.105.96 Lacs, (net
of advances). (Previous year Rs.424.80 Lacs).
3. a) Contingent Liabilities:
Sr. Items Rs.in Lacs
No
(i) Regarding Income tax on account of disputes
raised by the Income tax department under
the Income tax, Act 1961.
- Supreme Court 324.09
<-)
Madras High Court 303.73
<->
Tribunal Mumbai (-)
(79.88)
(ii) Service Tax and Penalty demanded On technology
transfer agreement.
CESTAT 603.18
(486.00)
Service Tax demand on Goods 6.37
Transport Agency during the (6.29)
Year 1997-98.
Service tax credit denial on outward freight and
canteen services 2005-06, 2006-07, 2007-08 and
2008-09
Commissioner Appeals 40.14
CESTAT 16.76
TOTAL 56.90
(73.02)
(iii) Central Excise: Claims against the company on
various issues pending Commissioner Appeals 13.06
CESTAT 111.91
High Court . 267.77
TOTAL 392.74
(448.23)
(iv) Central Excise: Method of calculation of duty
under notification 2 / 95 & other valuation
issues.
Supreme Court 121.00
CESTAT 0.56
TOTAL 121.56
(126.33)
(v) Sales Tax on Input use for Exports
(1999-2000 and 2000-2001). 9.00
(9.00)
(vi) Sales Tax on Interest collected (1997-98 &
2000-2001) CST levied on Interest charges
collected from customers 4.40
(4.40)
(vii) Guarantees given by the Company. 3,300.00
(3,313.00)
(viii) Penalty Demanded by Tamilnadu Electricity
Board disputed by the Company and stay
order issued by the High Court of Madras -
(193.97)
*A11 the above amounts are excluding Interest.
b) Claims against the Company not acknowledged as debts Rs.173.40 Lacs
(Rs. 173.40 Lacs)
4) There are no Micro, Small and Medium Enterprises, as defined in the
Micro Small Medium Enterprises Development Act, 2006 to whom the
company owes dues on account of principal amount together with interest
and accordingly no additional disclosure have been made.
The above information regarding Micro Small and Medium Enterprises has
been determined to the extent such parties have been identified on the
basis of information available with the company. This has been relied
upon by the auditors.
Amount recognised as an expense and included to Schedule 15 under
"Contribution to provident fund and other funds".
(b) The Guidance issued by the Accounting Standard Board (ASB) on
implementing AS-15, Employee benefits (revised 2005) states that
provident fund set up by employers which requires interest short fall
to be met by the employer, needs to be treated as defined benefit plan.
The fund does not have any existing deficit or interest shortfall. With
regard to any future obligation arising due to interest shortfall (i.e,
government interest to be paid on provident fund scheme exceeds rate of
interest earned on investment) pending the issuance of the Guidance
Note from the Actuarial Society of India, the Companys actuary has
expressed his inability to reliably measure the same. *
(c) Basis used to determine expected rate of return on assets. The
expected return on planned assets is based on market expectation at the
beginning of the period for returns over the entire life of the related
obligation. The Gratuity Scheme is invested in Group Gratuity Scheme
with LIC and Own Trust of Futura Polyesters Limited. The expected
return on assets assumption is taken based on current market yield.
(d) The estimates of future salary increases, considered in actuarial
valuation, taking account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
5. Interest received on Margin Money placed for Working Capital
amounting to Rs. 68.36 lacs (Previous Year Rs. 102.33 lacs) Tax
Deducted at Source Rs. 5.51 lacs (Previous Year Rs. 17.99 lacs) has
been netted off against the Interest expenses incurred . on Working
Capital.
6. Balances of Sundry Debtors, Sundry Creditors and deposits are
subject to confirmation and reconciliation.
1 (a) In terms of notification no.477(E) dated 25.7.91 issued by the
Department of Industrial Development, Ministry of Industry, Government
of India, all the above items have been delicensed.
(b) The Industrial License for the manufacture of Polyester Staple
Fibre/Polyester Chips has also been endorsed to manufacture Polyester
Filament Yarn. The Industrial License for the manufacture of Polyester
Filament Yarn/Partially Oriented Yarn has also been endorsed to
manufacture "Synthetic Filament Yarn including Industrial Yarn/Tire
Cord".
2 Installed capacity is based on optimum utilisation of the plant as
certified by the Management, upon which the auditors have relied.
7 Related Party Transactions: (As Certified by the Management) 1
Relationships
a) Subsidiary Companies Nil
b) Associates Nil
c) Key Management Personnel
1 Mr. Shyam Bhupatirai Ghia Chairman & Managing Director
2 Mr. Mukund Dharamdas Dalai Joint Managing Director
d) Key Management Personnel /
Directors having Significant
Influence
1 Innovassynth Technologies
(India) Limited Mr. Shyam Bhupatirai Ghia,
Mr. Viren Rajan Raheja and Shyam
Sami are Common Directors.
2 Innovassynth Investments
Limited Mr. Shyam Bhupatirai Ghia is a
Common Director
3 Sonata Software Limited Mr. Shyam Bhupatirai Ghia,
Mr. Mukund Dharamdas Dalai and
Mr. Viren Rajan Raheja are common
Directors
4 Sonata Information Tech.
Limited Subsidiary of Sonata Software
Limited
5 Distributors (Bombay)
Private Limited Significant influence of
Mr. Shyam Bhupatirai Ghia
6 Viraj Investments Pvt. Ltd. Significant influence of Mr. Shyam
Bhupatirai Ghia
7 Bhupati Investments & Finance Subsidiary of Viraj Investments
Private Limited Private Limited
8 Chika Private Limited Subsidiary of Bhupati Investments
& Finance Private Limited
9 Kika Investments & Finance Subsidiary of Bhupati Investments
& Finance Private Limited
Private Limited
10 Kharsundi Chemicals Pvt. Ltd. Subsidiary of Bhupati Investments &
Finance Private Limited
11 Manali Investments &
Finance Private Ltd. Significant influence of
Mr. Viren Rajan Raheja.
12 Varahagiri Investments &
Finance Pvt. Ltd. Significant influence of
Mr. Viren Rajan Raheja.
13 Bloomingdale Investments &
Finance Pvt. Ltd. Significant influence
of Mr. Viren Rajan Raheja.
14 Matsyagandha Investments &
Finance Pvt. Ltd. Significant influence
of Mr. Viren Rajan Raheja.
15 Beach Plaza Contractors &
Developers Pvt. Ltd. Significant influence of
Mr. Viren Rajan Raheja.
8 The Company operates in one segment Polyesters Products.
9 Figures in bracket pertain to Previous Year.
10 Figures of the Previous Year have been regrouped wherever necessary
to confirm to Current Years Classification.