Mar 31, 2015
Notes to financial statements for the pe riod ended 31st March 2015
Company Background
Gajra Bevel Gears Limited is a Public Limited Company incorporated
under the Indian Companies Act, 1956. The Company is engaged in
business of manufacturing vast range of gears, Differential and
transmission gears and other products to keep automotive progress on
the move.
1) Claims against which the company 31.03.2015 30.06.2014
not acknowledged
as debt in respect of :
Assessed demand of Commercial Tax Rs.565.61 Rs.565.61
for which the Lacs Lacs
Company has preferred for revision
before the competent
Authority.
Assessment Yr. Demand Rs. in Lacs.
1990-2000 16.64
2001- 2002 27.72
2002- 2003 48.09
2005- 2006 267.81
2006- 2007 205.35
In respect of amount of Interest Amount Amount
liability /penalty on delayed/ unascertainabl unascertainabl
nonpayment/ non and late deduction e e
of statutory dues
2) (i) Contingent liabilities that may arise due to delayed/
non-compliance of certain fiscal statues and claims lodged by the
ex-employees- amounts are unascertainable.
In view of no manufacturing / business activity in the company through
out the years ended on 30.09.2009 to 30.09.2012, the management of the
company is of the opinion "NO WORK NO PAY" and accordingly no provision
has been made in the accounts in respect of Salaries, Wages, Allowances
and benefits to the employees of the Company, which otherwise works out
to as follows:
Mar 31, 2014
(Rs.in lacs)
a) Claims against the company not acknowledged 31.03.2014 30.06.2013
as debt in respect of :
Assessed demand of Commercial Tax for which the Rs.565.61 Rs.621.88
Company has preferred for revision before the
competent Authority.
Assessment Yr. Demand Rs. in Lacs.
1990-2000 16.64
2001-2002 27.72
2002-2003 48.09
2005-2006 267.81
2006-2007 205.35
In respect of amount of Interest liability/ Amount Amount
penalty on delayed/ nonpayment/ non and late unascertaina unascert
deduction of statutory dues ble ainable
b) (i) Contingent liabilities that may arise due to delayed/
noncompliance of certain fiscal statues and claims lodged by the
ex-employees- amounts are unascertainable.
(ii) The financial liabilities on the account of legal cases pending
against the company amounts are unascertainable.
(iii) Cash and Cash Equivalents:
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short term investments (if any)
with an original maturity of three months or less.
(iv) Income Tax:
a) Deferred Taxes: The Company has carry forward losses and unabsorbed
depreciation available for set-off under the Income Tax Act, 1961.
However, in view of present uncertainty regarding generation of
sufficient future income, net deferred tax assets at the yearend
including related credit / charges for the year have not been
recognized in these accounts on prudent basis.
b) Current Taxes: In view of carry forward losses and unabsorbed
deprecation, the Company does not expect any current tax liability for
the Financial Years 2007-08 to 2013-14 (Assessment Years 2008-09 to
2014-15) and hence no provision has been made for current taxes for
these years.
(v) Related Parties:
Associate of the Company and concern in which Key Management Personnel
have significant influence are as follows:
a) M/s. Garha Gears Ltd.
b) M/s. Garha Utilbrocce Tools Ltd.
c) M/s. S&H Gears Pvt. Ltd.
d) M/s. Garha Auto Distributors
e) M/s. Kshipra Gears
f) M/s. Abhimanyu Agro Pvt. Ltd.
g) M/s. Rani Agro Pvt. Ltd.
Key management personnel
a) Shri Surendra Singh: Managing Director
b) Shri Atul Ragnekar: CFO
c) Ms.Shivank Khandelwal: CS
Amount due to related parties (Associate Concerns) on balance sheet
date is Rs.27,46,94,255/-
(xiv) The Company does not possess information as to which of its
suppliers are ancillary industrial undertakings/ small scale industrial
undertakings holding permanent registration certificate issued by the
Directorate of Industries of a State or Union territory. Consequently,
the liability, if any, of interest which would be payable under The
Interest on Delayed Payments to Small Scale and Ancillary Industrial
Undertakings Act, 1992 cannot be ascertained. However, the Company has
not received any claims in respect of interest.
The Company does not possess information as to which of suppliers are
Small Scale Industrial Undertakings. Accordingly, the information
regarding total outstanding dues to Small Scale Industrial Undertakings
as at the year end and that regarding the names of Small Scale
Industrial undertakings to whom the Company owes more than Rs.1.00 lakh
and outstanding for more than 30 days has not been compiled and hence
not disclosed by the Company.
(vi) The net worth of the Company has been eroded on account of the
losses of year ended on 30.09.08. Based on the ABS as on 30.09.08 the
company has filed the reference U/s 15(1) of SIC (SP) Act, 1985 before
BIFR, and the same has been registered as case No. 27/2009 on
13.07.2009. The BIFR vide its order of hearing held on 06.01.2010
declared the Company a SICK INDUSTRIAL COMPANY in terms of section 3(1)
(o) of Sick Industrial Companies (Special Provisions) Act 1985 and
appointed IDBI as the Operating Agency (OA).The Operating Agency is in
process to formulate a rehabilitation scheme for revival of the
Company. Meantime, the promoters of the Company are putting best of
their efforts for One Time Settlement (OTS) of loans from the Secured
Lenders and have succeeded in OTS with SBI, IDBI, IFCI and MPSIDC.
(xvi) Being the company under BIFR, interest on the loans from
financial institutions has not been provided for in the accounts for
the years ended 30.09.2007 to 31.03.2014 which otherwise works out to
as follows:
Accounting Year ended upto Accounting year ended on
31.03.2014 30.06.2013
Rs. 8794920 Rs. 70359360
(vii) The unsecured loans are received from the companies of the
promoters group to start the operation of the company. The interest
rate on the said loans are not decided yet and hence no provisions for
any interest payable, if any, is made in the accounts.
(viii) In view of no manufacturing / business activity in the company
through out the years ended on 30.09.2009 to 30.09.2012, the management
of the company is of the opinion "NO WORK NO PAY" and accordingly no
provision has been made in the accounts in respect of Salaries, Wages,
Allowances and benefits to the employees of the Company, which
otherwise works out to as follows:
(ix) Measurement of EBITDA:
As permitted by the guidance note on the Revised Schedule VI to the
Companies Act, 1956, the company has elected to present earnings before
interest, tax, depreciation and amortization (EBITDA) as a separate
line item on the face of the statement of the profit and loss. The
company measures EBITDA on the basis of profit/(loss) from continuing
operations. In its measurement, the company does not include
depreciation and amortization expenses, finance costs and tax expense.
(x) Previous year figures have been regrouped and rearranged wherever
necessary.
(xi) Change in Accounting Year which are yet to be finally paid /
settled
During the year under review, the Company has changed its accounting
year from 12 months to 9 months resulting the present accounting is for
9 months only commencing from 1st July'' 13 to 31st March''14 and
therefore figure of previous year are not comparable.
Jun 30, 2013
A) Debentures are secured by way of hypothecation of the company''s all
movable properties both present and future. These debentures are also
secured by way of first charge on the present and future immovable
properties of the company by a joint equitable mortgaged by deposit of
title deeds. In view of the OTS with IDBI, there is a possibility of
waiver of interest on IDBI Loans and therefore, no interest has been
provided for the period under consideration on debenture issued to IDBI.
b) IDBI-EFTL/WCTL/FITL and IFCI-TL/FITL above are secured by a joint
equitable mortgaged by deposit of title deeds of immovable properties
of the company and also by way of hypothecation of all movable asset of
company(save and except book debts) both present and future, further,
item 3(c) above is also secured by exclusive hypothecation of whole
plant and machinery acquired by this loan.
c) IDBI has given consent for OTS of their loans at an amount of Rs.
345 Lacs vide letter dated 05.02.2013 giving the waiver of interest
subject to full and final payment of OTS amount as per the terms of
OTS. Full and final payment of OTS amount is still pending and
therefore, no entry has been passed for the waiver of interest received
under the OTS.
d) Interest free sales tax loan from-MPAVN Ltd is secured by way of
second charged on movable and immovable properties of the company.
e) MPFC-WCTL/FITL and MPSIDC(ICD) are secured by way of hypothecation
of dll movable assets of the company(save and except book debt) both
present and future.
f) Secured loans shown in above as
IDBI-EFTL/WCTL/FITL,IFCI-TL/FITL, Interest free sales tax loan from-
MPAVN Ltd, MPFC-WCTL/FITL, MPSIDC(ICD) and Debentures have been
personally guaranteed by the promoter directors of the company.
g) Term loans are shown inclusive of interest accrued thereon up to the
year ended on 30-09-2006.
h) Loans from MPAKVN and MPSIDC have also been settled in Lok Adalat
held on 19.11.2011 at Bhopal in total at Rs. 198 Lacs against which the
Company has already paid the agreed amount but due to some deviation in
the decision of MPSIDC dispute regarding payment of Rs.15.80 Lacs Is
still pending and therefore no entry has been passed for the waiver
received under the OTS.
Sep 30, 2012
(i) Contingent liabilities that may arise due to delayed/
noncompliance of certain fiscal statues and claims lodged by the
ex-employees- amounts are unascertainable.
(ii) The financial liabilities on the account of legal cases pending
against the company amounts are unascertainable.
c) Estimated amount of the contract remaining to be executed on capital
account and not provided for Rs. 4593589/-
(iii) Cash and Cash Equivalents:
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short term investments (if any)
with an original maturity of three months or less.
(iv) Income Tax:
a) Deferred Taxes: The Company has carry forward losses and unabsorbed
depreciation available for set-off under the Income Tax Act, 1961.
However, in view of present uncertainty regarding generation of
sufficient future income, net deferred tax assets at the yearend
including related credit / charges for the year have not been
recognized in these accounts on prudent basis.
b) Current Taxes: In view of carry forward losses and unabsorbed
deprecation, the Company does not expect any current tax liability for
the Financial Years 2007-08 to 2011-12 (Assessment Years 2008-09 to
2012-13) and hence no provision has been made for current taxes for
these years.
(v) Trade Receivables:
a) Trade Receivables includes Rs. 22848088 due from a concern of which
a Director was the proprietor till 06.11.1999. Maximum amount due at
any time during the period from the said concerns is Rs.22848088.
b) Trade Receivables include Rs.4824150 due from some of the
ex-distributors/customers of the company. The company is of the opinion
that the amount is fully recoverable on completion of final settlement
which is in progress. The company is confident of recovering the
amounts.
(vi) Related Parties:
Associate of the Company and concern in which Key Management Personnel
have significant influence are as follows:
a) M/s. Garha Gears Ltd.
b) M/s. Garha Utilbrocce Tools Ltd.
c) M/s. S&H Gears Pvt. Ltd.
d) M/s. Garha Auto Distributors
e) M/s. Gajra Marketing
f) M/s. Kshipra Gears
g) M/s. Garha Tours & Travels
h) M/s. Abhimanyu Agro Pvt. Ltd.
i) M/s. Rani Agro Pvt. Ltd.
Key management personnel
a) Shri Surendra Singh: Managing Director
b) Shri Ranveer Singh: Director
Amount due to related parties (Associate Concerns) on balance sheet
date is Rs.224240435.
(vii) The Company does not possess information as to which of its
suppliers are ancillary industrial undertakings/ small scale industrial
undertakings holding permanent registration certificate issued by the
Directorate of Industries of a State or Union territory. Consequently,
the liability, if any, of interest which would be payable under The
Interest on Delayed Payments to Small Scale and Ancillary Industrial
Undertakings Act, 1992 cannot be ascertained. However, the Company has
not received any claims in respect of interest.
The Company does not possess information as to which of suppliers are
Small Scale Industrial Undertakings. Accordingly, the information
regarding total outstanding dues to Small Scale Industrial Undertakings
as at the year end and that regarding the names of Small Scale
Industrial undertakings to whom the Company owes more than Rs.1.00 lakh
and.outstanding for more than 30 days has not been compiled and hence
not disclosed by the Company.
(viii) The writ petition filed by the Company and admitted by the
Honorable High Court, Mumbai for the payment of minimum remuneration of
Rs.1,27,307/- to the Late Managing Director for the period 01.04.1979
to 30.09.1981 (being the date of expiry of the terms of appointment of
the Managing Director) has not come up for hearing. The Company has
applied for the approval of the Department of Company Affairs, Ministry
of Law, Justice and Company Affairs, for the re- appointment of the
Managing Director for the period from 01.10.1981 to 30.09.1986, on the
terms and conditions approved by the shareholders in the General
Meeting of the Company. The total remuneration of Rs.6,05,207 for the
period from 01.04.1979 to 30.09.1986 has not been paid.
(ix) Loans and Advance includes amounts due from private limited
company in which some of the Directors are members Rs.41252. Maximum
amount due at any time during the year from the said company is
Rs.41252.
(x)The net worth of the Company has been eroded on account of the
losses of year ended on 30.09.08. Based on the ABS as on 30.09.08 the
company has filed the reference U/s 15(1) of SIC (SP) Act, 1985 before
BIFR, and the same has been registered as case No. 27/2009 on
13.07.2009. The BIFR vide its order of hearing held on 06.01.2011
declared the Company a SICK INDUSTRIAL COMPANY in terms of section 3(1)
(o) of Sick Industrial Companies (Special Provisions) Act 1985 and
appointed IDBI as the Operating Agency (OA).The Operating Agency is in
process to formulate a rehabilitation scheme for revival of the
Company. Meantime, the promoters of the Company are putting best of
their efforts for One Time Settlement (OTS) of loans from the Secured
Lenders.
(xi) In view of no manufacturing / business activity in the company
through out the years ended on 30.09.2009 to 30.09.2012, the management
of the company is of the opinion "NO WORK NO PAY" and accordingly no
provision has been made in the accounts in respect of Salaries, Wages,
Allowances and benefits to the employees of the Company, which
otherwise works out to as follows :
(xii) Measurement of EBITDA:
As permitted by the guidance note on the Revised Schedule VI to the
Companies Act, 1956, the company has elected to present earnings before
interest, tax, depreciation and amortization (EBITDA) as a separate
line item on the face of the statement of the profit and loss. The
company measures EBITDA on the basis of profit/(loss) from continuing
operations. In its measurement, the company does not include
depreciation and amortization expenses, finance costs and tax expense.
(xiii)Previous year figures have been regrouped and rearranged wherever
necessary.
Sep 30, 2011
1. Contingent Liabilities:
(a) Claims against the Company not acknowledged 30.09.2011 30.09.2010
As debts In respect of: Rupees In Lacs Rupees In Lacs
(i) Sales/Entry Tax matters pending under appeal/Revision 314.71 314.71
(ii) Excise Duty 48.51 48.51
(iii) Assessed Demand Commercial Tax of Asstt Yr. 03-04 & 04-05 148.72
(iv) Other 4.01 4.01
(v) In respect of amount of interest liability/ Amount un- Amount un-
Penalty on delayed / non-payment/ non & ascertainable ascertainable
late deduction of statutory dues
(b) Income Tax Matters pending under appeal 56.32 56.32
(B.) (i) Contingent liabilities that may arise due to delayed /
non-compliance of certain fiscal statutes and claims lodged by the
ex-employees- amounts are unascertainable (30.09.2010- amount
unascertainable).
(ii) The financial liabilities on the account of legal cases pending
against the company amounts are on unascertainable (30.09.2010-amount
unascertainable).
C. Estimated amount of the contract remaining to be executed on
Capital Account and not provided for Rs.4593589/- (30.09.09 -
Rs.4593589/-).
2. (a) The Company does not possess information as to which of its
suppliers are ancillary industrial undertakings/small scale industrial
undertakings holding permanent registration certificate issued by the
Directorate of Industries of a State or Union territory. Consequently,
the liability, if any, of ' interest which would be payable under
'The Interest on Delayed Payments to Small Scale and Ancillary
Industrial Undertakings Act-1992 cannot be ascertained. However, the
Company has not received any claims in respect of interest.
(b) As stated in note 3(a) above, the Company does not possess
information as to which of suppliers are Small Scale Industrial
Undertakings. Accordingly, the information regarding total outstanding
dues to Small Scale Industrial Undertakings as at the year end and that
regarding the names of Small Scale Industrial undertakings to whom the
Company owes more than Rs.1.00 lakh and outstanding for more than 30
days has not been compiled and hence not disclosed by the Company.
NIL NIL
NOTE: -
(1) The writ petition filed by the Company and admitted by the
Honourable High Court, Mumbai for the payment of minimum remuneration
of Rs.1,27,307/-to the Late Managing Director for the period 01.04.1979
to 30.09.1981 (being the date of expiry of the terms of appointment of
the Managing Director) has not come up for hearing. The Company has
applied for the approval of the Department of Company Affairs, Ministry
of Law, Justice and Company Affairs, for the re-appointment of the
Managing Director for the period from 01.10.1981 to 30.09.1986, on the
terms and conditions approved by the shareholders in the General
Meeting of the Company. The total remuneration of Rs.6,05,207/- for the
period from 01.04.1979 to 30.09.1986 has not been paid.
(2) In view of financial sickness of the Company, the provision for the
Managerial Remuneration to Managing Director has not been made in the
accounts for the years ended 30.09.2007,30.09.2008, 30.09.2009 and
30.09.2011 which otherwise works out to as follows :
3. The quantities of sales, stock, raw materials consumed and
production ( in notes 6 & 7 above) have been converted from units/pairs
to metric tones on the basis of standard conversion factors which have
been certified by the management.
4. Research & Development expenditure as certified by the Company
(net of recoveries) charged to the profit and loss account (including
amortized portion of the deferred expenditure Rs.1716078/- (30.09.10 -
Rs.1716078/-) and depreciation on machines used for R & D Rs. NIL
(30.09.10 Rs. NIL)
5. (a) Sundry Debtors includes Rs. 22848088/- (30.09.10-
Rs.22848088/-) due from a concern of which a Director was the
proprietor till 06.11.1999. Maximum amount due at any time during the
period from the said concerns is Rs.22848088/- (30.09.10 Rs.22848088/-)
(b) Loans and Advance includes amounts due from private limited company
in which some of the Directors are members Rs.41252/- (30.09.10-
Rs.41252/-). Maximum amount due at anytime during the year from the
said company is Rs.41252/- (30.09.10-Rs.41252/-)
6. CURRENT ASSETS, LOAN & ADVANCES
a) In the opinion of the management and to the best of their knowledge
and belief the aggregate value of current assets and loans and advances
on realization in the ordinary course of business will not be less than
the amount at which they are stated in the Balance Sheet.
b) Balances under the head sundry debtors, loans and advances,
creditors and others are subject to confirmation/ re-conciliation.
Adjustments, if any, will be accounted for as and when confirmed /
reconciled.
7. Sundry Debtors include Rs.4824150/- (30.09.10- Rs.4824150/-) due
from some of the ex- distributors/customers of the company. The company
is of the opinion that the amount is fully recoverable on completion of
final settlement which is in progress. The company is confident of
recovering the amounts.
8. The entire net worth of the Company had been eroded on account of
the losses of year ended on 30.09.08. Based on the Balance Sheet of the
Company as on 30.09.08 the company has filed the reference U/s.15(1) of
SIC (SP) Act.'1985 before BIFR, and the same has been registered as
case No. 27/2009 on 13.07.2009. The BIFR vide its order of hearing
held on 06.01.2011 declared the Company a SICK INDUSTRIAL COMPANY in
terms of section 3(1) (o) of Sick Industrial Companies (Special
Provisions) Act 1985 and appointed IDBI as the Operating Agency
(OA).The Operating Agency is in process to formulate a rehabilitation
scheme for revival of the Company. Meantime, the promoters of the
Company are putting best of their efforts for One Time Settlement
(OTS)of loans from the Secured Lenders.
9. Owing to the financial sickness, there is no production / business
activity in the company after 31st 0ct.2006.
10. Being the company under BIFR, interest on the loans from financial
institutions has not been provided for in the accounts for the year
ended on 30.09.2008, year ended 30.09.2009,30.09.2010 and 30.09.2011
which otherwise works out to as follows:
11 No provision of TDS has been made on the provisions made on
tentative basis in respect of professional fees.
12. All the loan / deposit accounts with State Bank of India remained
seized through out the years ended on 30.09.2008,30.09.2009,30.09.2010
and 30.09.2011 therefore, no provision has been made in accounts for
the interest earned on margin money deposits with the bank which was in
the year ended on 30.09.2007 was at Rs. 198198/- 23. Borrowing Costs:
None of the borrowing costs incurred during the year are attributable
to the acquisition of fixed assets, hence reporting under Accounting
Standard -16 "Borrowing Cost" does not arise.
13. Segment Reporting:
The company is engaged in the business of manufacturing and marketing
of automobile components falling within the single segment business of
automobiles components. The company is managed as one entity and is
governed by similar set of risks and returns.
As the company operates in a single segment, the reporting requirement
prescribed in Accounting Standard -17 are not applicable to the Company
and have not been provided in this financial statement.
14. Related Parties:
Disclosure in respect of related party transactions for the year ended
30.09.2009 are given below:- (A)
(i) Holding Company Nil
(ii) Subsidiary Company Nil
(iii) Associate of the Company and concern in which Key Management
Personnel have significant influence. Transaction during the year ended
30.09.2009 Rs. NIL.
1. M/s. Garha Gears Ltd
2. M/s. Garha Utilbrocce Tools Ltd.
3. M/s. S&H Gears Pvt. Ltd.
4. M/s. Garha Auto Distributors.
5. M/s. Kshipra Gears
6. M/s. Garha Tours & Travles
15. The Company does not have any subsidiary / Holding Company. Hence,
reporting under "Accounting Standard - 21 does not arise.
16. Taxes on Income
A. Deferred Taxes: The Company has unabsorbed carry forward losses/
depreciation available for set- off under the Income Tax Act, 1961.
However, in view of present uncertainty regarding generation of
sufficient future income, net deferred tax assets at the year end
including related credit / charges for the year have not been
recognised in these accounts on prudent basis.
B. Current Taxes : In view of the carry forward unabsorbed losses /
deprecation, the Company does not expect any current tax liability for
the Financial Years 2008-09, 2009-10 and 2010-11 (Assessment Years
2009-10, 2010-11 and 2011-12) and hence no provision has been made for
the current Income Tax
17. Previous year figures have been re-grouped and re-arranged
wherever necessary.
Sep 30, 2010
1. Contingent Liabilities :
(a) Claims against the Company not
acknowledged 30.09.2010 30,09.2009
As debts in respect of: Rupees Rupees
In Lacs In Lacs
(i) Sales/Entry Tax matters
pending under appeal / 314.71 588,89
Revision
(ii) Excise Duty 48.51 48.51
(iii) Other 4.01 4.01
(iv) In respect of amount of interest
liability/ Amount un- Amount un-
Penalty on delayed / non-payment/
non & ascertainable ascertainable
Idle deduction of statutory dues
(b) Income Tax Matters pending
under appeal 56.32 56.32
B. (i) Contingent liabilities that may arise due to delayed
/non-compliance of certain fiscal statutes and claims lodged by the
ex-employees- amounts are ascertainable (30,09.2009- amount
unascertainable),
(ii) The financial liabilities on the account of legal cases pending
against the company amounts are on unascertainable (30,09,2009-amount
unascertainable).
C. Estimated amount of the contract remaining to be executed on
Capital Account and not provided for Rs,4593589/- (30.09.09; -
Rs,4593589/-}.
2, (a) The Company docs not possess information as to which of its
suppliers arc ancillary industrial undertakings/ small scale industrial
undertakings holding permanent registration certificate issued by the
Directorate of Industries of a State or Union territory. Consequently,
the liability if any, of interest which would be payable under The
interest on Delayed Payments to Small Scale and Ancillary Industrial
Undertakings Act-1992 cannot be ascertained. However, the Company has
not received any claims in respect of interest.
(b) As stulcd in note 3(a) above, the Company does not possess
information as to which of suppliers are Small Scale industrial
Undertakings. Accordingly, the information regarding total outstanding
dues in Small Scale Industrial Undertakings as at the year end and that
regarding the names of Small Scale Industrial undertakings to whom the
Company owes more than Rs.1.00 lakh and outstanding for more than .10
days has not been completed and hence not disolved by the Company.
3 The quantities of sales, stock, raw materials consumed and production
( in notes 6 & 7 above) have been converted from unite/pairs to metric
tones on the basis of standard conversion factors which have been
certified by the management.
4 Research & Development expenditure as certified by the Company (net
of recoveries) charged to the profit and loss account (including
amortized portion of the deferred expenditure Rs.l 716078/- (30.09.00 -
Rs.l716078/-} and depreciation on machines used for R&D Rs. Nil
(30.09.09 Rs. NIL)
5 a Sundry Debtors includes Rs. 22848088/- (30.09.09-Rs.22848088/-)
due from a concern of which a Director was the proprietor till
06.11.1999. Maximum amount clue at any time during the period from the
said concerns is Rs.22848088/- (30.09.09 RS.22848088/-) (b) Loans and
Advance includes amounts due from private limited company in which some
of the Directors are members Rs.41252/- (30.09,09- Rs.41252/-).
Maximum amount due at am time during the year from the said company is
Rs.41252/- (30.09.09-Rs.41252"/-)
6. CURRENT ASSETS, LOAN & ADVANCES
a} In the opinion of the management and to the best of their knowledge
and belief the aggregate value of Current assets and loans and advances
on realization in the ordinary course of business will not be less than
the amount at which they are Stated in the Balance Sheet. in Balances
under the head sundry debtors, loans and advances, creditors and others
are subject to confirmation/ reconciliation. Adjustments, if any, will
be accounted for as and when confirmed / reconciled.
7. Sundry Debtors include RS.4824150/- (30.09.09- Rs.4824150/-) due
from some of the ex-disiributors/customers of the company. The company
is of the opinion that the amount is fully recoverable on completion of
final settlement which is in progress. The company is confident of
recovering the amounts.
8. The entire net worth of the Company had been eroded on account of
the tosses of year ended on 30.09.08. Based on the Balance Sheet of the
Company as on 30.09.08 the company has filed the reference U/s. 15(1)
of SIC (SP) Act1985 before BIFR, and the same has been registered as
case No. 27/2009 on 13.07.2009. The BIFR vide its order of bearing held
on 06.01.2010 declared the Company a SICK INDUSTRIAL COMPANY in terms
of section 8(l) (o) of Sick Industrial Companies (Special Provisions)
Act 1985 and appointed IDBI as the Operating Agency (OA).The Operating
Agency is in process to formulate a rehabilitation scheme for revival
of the Company. Meantime, the promoters of the Company are putting best
of their efforts for One Time Settlement (OTS ) of loans from the
Secured Lenders.
9. Owing to the financial sickness, there is no production / business
activity in the company after 31st Oct.2006.
10 No provision of IDS has been made on the provisions made on
tentative basis in respect of professional fees.
11 All the loan /deposit accounts with State Bank of lndia remained
seized through out the years ended on 30.09.2008,30.09.2009 and
30,09.2010 therefore. no provision has been made in accounts for the
interest earned on margin money deposits with the bank which was in the
year ended on 30.09.2007 was at Rs. 198198/-
12. Borrowing Costs :
None of the borrowing costs incurred during the year are attributable
to the acquisition of fixed assets, hence reporting under Accounting
Standard - 16 "Borrowing Cost" does not arise.
13 Segment Reporting:
The company is engaged in the business of manufacturing and marketing
of automobile components falling within the single segment business of
automobiles components. The company is managed as one entity and is
governed by similar set of risks and returns.
As the company operates in a single segment, the reporting requirement
prescribed in Accounting Standard - 17 are not applicable to the
Company and have not been provided in this financial statement.
14. Related Parties:
Disclosure in respect of related part} transactions for the year ended
30,09.2009 are given below-
(A)
(i) Holding Company
Nil
(ii) Subsidiary Company
Nil
(iii) Associate of the Company and concern in which Key Management
Personnel have significant influence. Transaction during the year ended
30.09.2009 Rs. NIL.
1. M/s. Garha Gears Ltd
2. M/s. Garha Ulibrocee Tools Ltd.
3. M./S&H Gears Pvt. Ltd,
4. M/s. Garha Auto Distributors.
5. M/s. Kshipra Gears
6. M/s. Garha Tours & Travles
(iv) Concerns in which the reporting company has substantial interest
(Voting power of 20% or more). Nil
(v) Key management personnel
1, Shri Surendra Singh - Managing Director
2 Shri Ranveer Singh - Director
(B) Transactions with related parties during the year and outstanding
balances as on 30.09.2010.
15. The Company does not have any subsidiary / Holding Company.
Hence, reporting under Accounting Standard-21 " does not arise,
16. Taxes on Income
A. Deferred Taxes: The Company has unabsorbed carry forward losses/
depreciation available for set-off under the Income Tax Act, 1961.
However, in view of present uncertainly regarding generation of
sufficient future income, net deferred tax assets at the year end
including related credit / charges for the year have not been
recognised in these accounts on prudent basis.
17. Current Taxes: In view of the carry forward unabsorbed losses /
deprecation, the Company does not expect any current tax liability for
the Financial Years 2008-09 and 2009-10 (Assessment Years 2009-10 and
2010-11) and hence no provision has been made for the current Income
Tax .
18. Previous year figures have been re-grouped and re-arranged
wherever necessary.
Sep 30, 2009
1. Contingent Liabilities:
A.
(a) Claims against the Company
not acknowledged 30.09.2009 30.09.2008
As debts in respect of: Rupees In Lacs Rupees In Lacs
(i) Sales/Entry Tax matters
pending under appeal /Revision 588.59 431.42
(ii) Excise Duty 48.51 48.51
(iii) Other 4.01 4.01
(iv) In respect of amount of
interest liability/ Amount un- Amount un-
Penalty on delayed / non-payment/
non & ascertainable ascertainable
late deduction of statutory dues
(b) Income Tax Matters pending
under appeal 56.32 84.25
B. (i) Contingent liabilities that may arise due to delayed /
non-compliance of certain fiscal statutes and claims lodged by the
ex-employees- amounts are unascertainable
(30.09.2008-amountunascertainable).
(ii) The financial liabilities on the account of legal cases pending
against the company amounts are on unascertainable (30.09.2008-amount
unascertainable).
C. Estimated amount of the contract remaining to be executed on
Capital Account and not provided for Rs.4593589/- (30.09.08 -
Rs.4593589/-).
2. (a) The Company does not possess information as to which of its
suppliers are ancillary industrial undertakings/ small scale industrial
undertakings holding permanent registration certificate issued by the
Directorate of Industries of a State or Union territory. Consequently,
the liability, if any, of interest which would be payable under The
Interest on Delayed Payments to Small Scale and Ancillary Industrial
Undertakings Act-1992.cannot be ascertained. However, the Company has
not received any claims in respect of interest.
(b) As stated in note 3(a) above, the Company does not possess
information as to which of suppliers are Small Scale Industrial
Undertakings. Accordingly, the information regarding total outstanding
dues to Small Scale Industrial Undertakings as at the year end and that
regarding the names of Small Scale Industrial undertakings to whom the
Company owes more than Rs.1.00 lakh and outstanding for more than 30
days has not been compiled and hence not disclosed by the Company.
NOTE: -
(1) The writ petition filed by the Company and admitted by the
Honourable High Court, Mumbai for the payment of minimum remuneration
of Rs. 1,27,307/-to the Late Managing Director for the period
01.04.1979 to 30.09.1981 (being the date of expiry of the terms of
appointment of the Managing Director) has not come up for hearing. The
Company has applied for the approval of the Department of Company
Affairs, Ministry of Law, Justice and Company Affairs, for the
re-appointment of the Managing Director for the period from 01.10.1981
to 30.09.1986, on the terms and conditions approved by the shareholders
in the General Meeting of the Company. The total remuneration of
Rs.6,05,207/- for the period from 01.04.1979 to 30.09.1986 has not been
paid.
Notes :-
i. Licensed capacity represents capacity registered with the
Directorate General of Technical development/ Secretariat for
Industrial Approvals.
ii. Installed capacity is as certified by the management but not
verified by the Auditors being a technical matter.
iii. Quantities of production exclude items manufactured for third
parties. iv. Sales quantities include warranty replacements, free
samples, claims, etc. v. Figures in the brackets relate to
30.09.2008.
3. (a) Sundry Debtors includes Rs. 22848088/- (30.09.08-
Rs.22848088/-) due from a concern of which a Director was the
proprietor till 06.11.1999. Maximum amount due at any time during the
period from the said concerns is Rs.22848088/- (30.09.08 Rs.22848088/-)
(b) Loans and Advance includes amounts due from private limited company
in which some of the Directors are members Rs.41252/- (30.09.08-
Rs.41252/-). Maximum amount due at any time during the year from the
said company is Rs.41252/- (30.09.08-RS.41252/-)
4. CURRENT ASSETS, LOAN & ADVANCES
a) In the opinion of the management and to the best of their knowledge
and belief the aggregate value of current assets and loans and advances
on realization in the ordinary course of business will not be less than
the amount at which they are stated in the Balance Sheet.
b) Balances under the head sundry debtors, loans and advances,
creditors and others are subject to confirmation/ re-conciliation.
Adjustments, if any, will be accounted for as and when confirmed /
reconciled.
5. Sundry Debtors include Rs.4824150/-(30.09.08-Rs.4824150/-) due
from some of the ex-distributors/customers of the company. The company
is of the opinion that the amount is fully recoverable on completion of
final settlement which is in progress. The company is confident of
recovering the amounts.
6. The entire net worth of the Company had been eroded on account of
the losses of year ended on 30.09.08. Based on the Balance Sheet of the
Company as on 30.09.08 the company has filed the reference U/s.15(1) of
SIC (SP)Act.1985 before BIFR, and the same has been registered as case
No. 27/2009 on 13.07.2009.
7. Owing to the financial sickness, there is no production / business
activity in the company after 31st Oct.2006.
8 No provision of TDS has been made on the provisions made on
tentative basis in respect of professional fees.
9 All the loan / deposit accounts with State Bank of India remained
seized through out the years ended on 30.09.2008 and 30.09.2009
therefore, no provision has been made in accounts for the interest
earned on margin money deposits with the bank which was in the year
ended on 30.09.2007 was at Rs. 198198/-
10. Borrowing Costs :
None of the borrowing costs incurred during the year are attributable
to the acquisition of fixed assets, hence reporting under Accounting
Standard -16 "Borrowing Cost" does not arise.
11. Segment Reporting:
The company is engaged in the business of manufacturing and marketing
of automobile components falling within the single segment business of
automobiles components. The company is managed as one entity and is
governed by similar set of risks and returns.
As the company operates in a single segment, the reporting requirement
prescribed in Accounting Standard-17 are not applicable to the Company
and have not been provided in this financial statement.
12. Related Parties:
Disclosure in respect of related party transactions for the year ended
30.09.2009 are given below:-
(A)
(i) Holding Company
Nil
(ii) Subsidiary Company
Nil
(iii) Associate of the Company and concern in which Key Management
Personnel have significant influence. Transaction during the year ended
30.09.2009 Rs. NIL.
1. M/s. Garha Gears Ltd
2. M/s. Garha Utilbrocce Tools Ltd.
3. M/s. S&H Gears Pvt. Ltd.
4. M/s. Garha Auto Distributors.
5. M/s. Kshipra Gears
6. M/s. Garha Tours & Travles
(iv) Concerns in which the reporting company has substantial interest
(Voting power of 20% or more). Nil
(v) Key management personnel
1. Shri Surendra Singh - Managing Director
2. Shri Ranveer Singh - Director
3. Shri H.C. Poddar - H.O.D., Personnel & HRD.
13. During the year company has not entered into any Lease
transactions. Hence reporting under "Accounting Standard - 19" does not
arise.
14. The Company does not have any subsidiary / Holding Company. Hence,
reporting under "Accounting Standard - 21 " does not arise.
15. Taxes on Income :-
A. Deferred Taxes: The Company has unabsorbed carry forward losses/
depreciation available for set- off under the Income Tax Act, 1961.
However, in view of present uncertainty regarding generation of
sufficient future income, net deferred tax assets at the year end
including related credit / charges for the year have not been
recognised in these accounts on prudent basis.
B. Current Taxes: In view of the carry forward unabsorbed losses /
deprecation, the Company does not expect any current tax liability for
the Financial Year 2007-08 and 2008-09 (Assessment Year 2008- 09 and
2009-10); and hence no provision have been made for the current Income
Tax.
16. Previous year figures have been re-grouped and re-arranged
wherever necessary.