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Notes to Accounts of Jai Mata Glass Ltd.

Mar 31, 2014

1. RELATED PARTY DISCLOSURES

Pursuant to Accounting Standards (AS18) –"Related Party Disclosure" issued by Institute of Chartered Accountants of India, following parties are to be treated as related parties along with their relationships:

1. Name of related parties and description of relationship :

a) Key Management Personnel:

Mr. C. M. Marwah Managing Director

Mr. Samir Katyal Director

b) Related parties where control exists:

J. P. Overseas (P) Limited Enterprises owned or significantly influenced by Key Management

Personnel or their relatives.

Note:- Related parties relationship is as identified by the management.

2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENT



March 31, 2014 March 31, 2013 Rs.in ''000 Rs.in ''000

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

(i) Contingent liabilities

(a) Tax matter under disputes/appeal 2384 2383

(b) Excise matter under disputes/appeals 0 2476

(c) PF matter under disputes/appeals 4667 0

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account 0 0

3. EMPLOYEE BENEFITS (AS - 15 REVISED)

There is no employees who is covered under Retirement Benefits at the end of the year, and the Directors have been waived their rights to receive Retirement benefits as on March 31, 2014 and therefore, no provision for Retirement benefits is required to be made in books of the account of the Company.

4. In the opinion of the management, the current assets, loans and advances, if realized in the ordinary course of business would yield a sum at least equal to that stated in the Balance Sheet and provision for all known liabilities are adequate.

5. Balances with various customers, suppliers, creditors and advances recoverable as per books are subject to confirmation/ reconcilation and consequential adjustments.

6. Other income includes Rs. 9.65 lacs towards profit on sale of fixed assets, Rs. 30.26 lacs towards sale of scrap and Rs. 24.01 lacs towards sundry balances written back.

7. Rates and taxes includes Rs. 62.19 lacs paid during the year on account of interest and other related charges on sales tax assessment relating to financial years 2008-09, 2009-10 and 2010-11.

8. During the year a Notice of Demand from the Employees'' Provident Fund Organization relating to arrears of Provident Fund contribution from February, 2006 to July, 2010 of Rs. 46.67 Lacs (out of which Rs. 32.88 lacs is towards damages and Rs. 13.79 lacs is towards interest charges) against which appeal has been filled with Employees Provident Fund Appellate Tribunal challenging the validity and correctness of the order. On Company''s appeal, Employees Provident Fund Appellate Tribunal has stayed the order with the condition to deposit Rs. 11.50 lacs within May 4, 2014. The Company does not consider itself liable on its accounts and accordingly, no libility have been provided in books of account of Company. As the ultimate outcome of this matter cannot presently be determined and provision for liability, if any, cannot be estimated at this stage.

9. The Company has challenged the constitutional validity of entry tax lavied in April 2010 in the state of Himachal Pradesh and a writ petition filled by the Company is pending before the hon''able High Court of Himachal Pradesh at Shimla, the Company dose not consider itself liable and accordingly, no liability has been provided in the books of account of the Company.

10. The Company closed it''s glass manufacturing unit on December 25, 2012 with the permission of Labour Commissioner, Government of Himachal Pradesh and since paid legal dues to all its employees, including Settlement Awards directed to be paid by 15.04.2013 in term of directions of Labour-Cum-Conciliation Office, Baddi Himachal Pradesh dated December 28, 2012.

11. During the year ended March 31, 2014, the Company has incurred a loss of Rs. 34,88,205 and has accumulated loss of Rs. 15,82,79,996 as against Share Capital and Reserves of Rs. 10,00,00,000. Considering the Company''s nature of business, its future business plan to utilise its available dealer network to undertake and develop trading operations in products related to its line of business and the commitment of its Promoter Group to provide financial and operational support for its operations in the for seeable future, the management has prepared these financial statements as a going concern.

12. a. In absence of taxable income during the year, no provision for current Income tax has been made.

b. In accordance with the Accounting Standard - 22(AS-22) & Accounting Standard Interpretation (ASI)-3 regarding "Accounting for Taxes on Income", issued by The Institute of Chartered Accountants of India, the Deferred Tax Assets/Liabilities have not been accounted for in view of clouser of Company''s manufacturing unit.

13. a. The Company could not be strictly regular in depositing its statutory dues due to financial constraints. The overdue outstanding as on March 31, 2014 were in respect of Service Tax Rs. 27,99,758/-, Barrier Tax Rs. 10,36,036/-, ESI Rs. 10,30,064/-, VAT/CST Rs. 82,32,130/- and Mandi Tax Rs. 1,87,606/-.

b. No provision for interest and other levies, if any, on overdue statutory payments has been made, as the same will be accounted for as and when paid/settled.

14. Previous year figures have been regrouped/recast, where ever necessary, to confirm with this year''s presentation.


Mar 31, 2013

1 GENERAL INFORMATION

Jai Mata Glass Limited was a manufacturer of pattern glass and the manufacturing unit was located at Barotiwala, Himachal Pradesh.

1.1 In the opinion of the Management, the value on realization of current assets, loans and advances in the ordinary course of business would be at least equal to the amount at which they are stated in the balance sheet and provision for all known liabilities are adequate.

1.2 Balance with various customers, suppliers, creditors and advances recoverable as per books are subject to confirmation/reconciliation and consequential adjustments.

1.3 Unsecured loans from others are due to a former director of the Company.

1.4 The certain Building, Plant & Machinery have been discarded from active use w.e.f. close of 28"'' Feb, 2013 and their written down value have been accounted for as per books as the valuation assessed by a Valuer as on 28.2.2013 in respect of Discarded/Scrap Building for Rs.195.00 lacs against the book value for Rs.191.14 lacs and Discarded/ Scrap Plant & Machinery for Rs. 230.00 lacs against the book value for Rs.229.21 lacs which are more than the written down value and. In view of this the W.D.V has been taken in the books of accounts. The depreciation has been accounted for up to February 28, 2013. The shareholders of the Company at an Extra Ordinary General Meeting held on 7th May, 2013 approved sale of discarded / scrape Building and Plant & Machinery.

1.5 Exceptional Items For Rs.60.29 lacs represent in decline in value of Inventories as at March 31, 2013, which comprises Finished goods, Raw Materials, Packing Materials, Fuel and Stores, and accounted as per assessment of a Value.

1.6 Other Income includes Profit on sale of Fixed Assets of Rs. 68.54 Lacs in respect of sale of Plant & Machinery.

1.7 That the Inventories of Rs 65.80 lacs have sold to a party for Rs. 70.00 lacs as per agreement/confirmation on 12.4.2013 and the profit on sale of Inventories will be accounted for during next financial year.

1.8 The Company has challenged the constitutional validity of entry tax levied in April 2010 in the state of Himachal Pradesh and a writ petition filled by the Company is pending before the hon''ble High Court of Himachal Pradesh at Shimla, the Company does not consider itself liable on this account and according, no liability has been provided in books of account of Company.

1.9 The Company has also entered a .Memorandum of Understanding on 11.5.2013 with M/s Maruti Agriculture, a Partnership firm in respect of sale of discarded/ scrap Building and discarded/scrap Plant & Machinery at barotiwala (H.P) Unit ( except land, boundary wall office cum temple building etc.) for Rs.430 on the following terms and conditions:-

a) That the Purchaser will dismantle/ remove / lift the entire asset at his own cost on or after 12" May, 2013 or mutually agreed by both the parties from times to time.

b) That the Purchaser will born the liabilities towards the sale -tax except excise duty, if payable, by the Company.

c) That the Company will raise the bill in respect of all assets directly to the purchaser or other parties as directed by the purchaser at the time of removal of the material from the factory premises. Till that time the ownership will always remain with the company.

d) That necessary adjustment in the accounts will be carried out as & when the assets are sold during the financial year

1.10 The Company closed its glass manufacturing unit on December 25, 2012 with the permission of Labour Commissioner, Government of Himachal Pradesh and since paid legal dues to all its employees, including Settlement Awards directed to be paid by 15.4.2013 in terms of directions of Labour-Cum-Conciliation Office, Baddi Himachal Pradesh dated December 28, 2012. The aforesaid cost for Rs. 133.60 lacs was duly accounted as Extraordinary Item.

1.11 The net worth has been eroded due to the losses incurred including in earlier year and during this financial year the manufacturing unit closed. In view of the same, the Company is no more a going concern and the accounts have been prepared accordingly.

b) There is no employee who is covered under Retirement Benefits at the end of the year, and the Directors have been waived their rights to receive Retirement benefits as on March 31, 2013,and therefore, no provision for Retirement Benefits is required to be made in books of the accounts of the Company.

1.12 RELATED PARTY DISCLOSURES:

1. Relationships:

a) Other related parties where control exists:

J.P. Overseas (P) Limited,

b) Key Management Personnel:

Mr. C.M. Marwah (Managing Director) Mr. Samir Katyal (Whole Time Director)

1.13 a) In the absence of taxable income during the year, no provision for current Income tax has been made.

b) In accordance with the Accounting Standard-22 (AS-22) & Accounting Standard Interpretation (ASI)-3 regarding "Accounting for Taxes on Income", issued by The Institute of Chartered Accountants of India, the Deferred Tax Assets/Liabilities have not been accounted for in view of clouser of Company''s manufacturing unit.

1.14 a) The Company could not be strictly regular in depositing its statutory dues due to financial constraints. The overdue outstanding as on March 31, 2013 were in respect of Service Tax Rs.39,49,848/-, Barrier Tax Rs.10,36,036/-, ESI Rs.10,30,064/-, VAT/CST Rs.1,77,49,196/-, Income-Tax Rs.64,490/-.(since deposited Rs.64,490/-) and Mandi Tax Rs, 1,87,606/-.

b) No provision for interest and other levies, if any, on overdue statutory payments has been made, as the same will be accounted for as and when paid/settled.

1.15 Figures for the Previous year have been regrouped/rearranged wherever necessary.


Mar 31, 2012

1 GENERAL INFORMATION

Jai Mata Glass Limited is a manufacturer of pattern glass and the manufacturing unit is located at Barotiwala, Himachal Pradesh.

1.1 In the opinion of the Management, the value on realization of current assets, loans and advances in the ordinary course of business would be atleast equal to the amount at which they are stated in the balance sheet and provision for all known liabilities are adequate

1.2 Balance with various customers, suppliers, creditors and advances recoverable as per books are subject to confirmation/reconciliation and consequential adjustments.

Unsecured loans from others are due to a former director of the company.

1.3 Employee benefitsfAS-15 revised):

The principal assumptions used in actuarial valuation are as below:

Discount rate 8.5%

Expected rate of increase in compensation levels 6.0%

1.4 RELATED PART DISCLOSURES

1. Relationships:

a) Other related parties where control exists:

J.P. Overseas (P) Limited,

Integraed Capital Services Limeted.

b) Key Management Personnel:

Mr. C.M. Marwah (Managing Director)

Mr. Samir Katyal (Whole Time Director)

2. Transactions carried out with related parties referred in 1 above in ordinary course of business:

1.5 a) In the absence of taxable income during the year and in view of exemption under section 80IC, no provision for current Income tax has been made,

b) In accordance with the Accounting Standard-22 (AS-22) & Accounting Standard Interpretation (ASI)-3 regarding "Accounting for Taxes on Income", issued by The Institute of Chartered Accountants of India, the Deferred Tax Assets/Liabilities have not been accounted for in view of tax holiday exemption available under section 80IC of the Income Tax Act, 1961.

1.6 a) The Company could not be strictly regular in depositing its statutory dues due to financial constraints. The overdue outstanding as on March 31,2012 were in respect of Service Tax Rs.37,03,668, Provident Fund Rs. 31,810,696 (since deposited Rs. 5,37,778), Barrier Tax Rs. 10,36,036/-, ESI Rs. 8,67,689 (since deposited Rs. 8,64,163), VAT/CST Rs. 1,60,73,143, Income- TaxRs. 17, 273 (sincedepositedRs. 17, 273)andMandiTax Rs. 1,87,606.

b) No provision for interest and other levies, if any, on overdue statutory payments has been made, as the same will be accounted for as and when paid/settled.

1.7 The Company has challenged the constitutional validity of entry tax levied in April 2010 in the state of Himachal Pradesh and a writ petition filled by the Company is pending before the hon'ble High Court of Himachal Pradesh at Shimla, the Company does not consider itself liable on this account and according, no liability has been provided in books of account of Company.

1.8 Figures for the Previous year have been regrouped/rearranged wherever necessary.


Mar 31, 2010

2009-2010 2008-2009

Rs. Rs.

1. Contingent Liabilities not provided for:

a) Tax matters under disputes/ appeal. 24,48,590 24,48,590

b) Excise matters under disputes/ appeal. 24,75,737 24,75,737

c) Claims against the Company not acknowledged as debts (to the extent ascertainable). 23,10,303 37,89,662



2. In the opinion of the Management, the value on realization of current assets, loans and advances in the ordinary course of business would be at least equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities are adequate.

3. Balance with various customers, suppliers, creditors, advances recoverable, loans and a bank taken as per books are subject to confirmation/reconciliation and consequential adjustments.

4. Unsecured loan from others are due to a former director of the Company.

5. Provision for gratuity and earned leave has been ascertained by the Actuary as per the guidelines issued the Actuarial Society of India.

6. The Company has not received any information from suppliers or service providers, whether they are covered under the "Micro, Small and Medium Enterprises (Development) Act, 2006". Therefore, it is not possible to give the information required under the Act.

7. (a) The agreement between the Company & Growmore Properties Private Limited, has since been rescinded by Growmore Properties Private Limited for not taking over certain land, building and plant & machinery of Unit-Ill. Pursuant to the same, as per the decisions taken by the Company in its Assets Sales Committee meeting dated January 14, 2010 in concurrence with GPPL and approved by board , the sum of Rs.213 Lac advanced by GPPL stands forfeited & shown as Exceptional Items.

(b) In accordance with Accounting Standard (AS)-28 issued by The Institute of Chartered Accountants of India titled "Impairment of Assets", the Company has assessed the applicability of the aforesaid Standard as on Balance Sheet date, with respect to indications, if any, in regard to the impairment in value of assets. Based on such aforesaid assessment, discarded plant & machinery of Rs. 111.34 lacs now revalued as on March 31, 2010 by an approved valuer for Rs.15.02 lacs has resulted in writing off Rs 96.32 lacs; the amount is included as part of income comprised in Exceptional items.

8. Related parties disclosures :

1. Relationships:

a) Other related parties where control exists :

J.P. Overseas (P) Ltd. Integrated Capital Services Ltd.

b) Key Management Personnel:

Mr. C. M. Marwah (Managing Director)

Mr. Samir Katyal (Whole Time Director)

9. A sum of Rs. 70 lacs was paid to IDBI during the financial year 2009-10 as advance for Redemption of 70,000 Cumulative Optionally Redeemable Convertible Preference Shares (CORCPS) of Rs.100 each aggregating Rs.70 lacs. During April 2010 CORCPS of a value of Rs.35 lacs have been redeemed and the balance of Rs. 35 lacs will be redeemed at the earlier of approval of the Honble BIFR in terms of the sanctioned Draft Rehabilitation Scheme under consideration by the Honble BIFR or March 31 2011.

10. The secured debt of the Company from IDBI has been settled on One Time Settlement (OTS) basis. IDBI has waived dividend on the above Cumulative Optionally Redeemable Convertible Preference Shares (CORCPS) and Rs. 3,96,921/- payable towards interest to IDBI as per the OTS has been discharged in full and No Dues certificate obtained from IDBI and Satisfaction of the same has been registered with ROC. The payment of above interest paid has been accounted in the books of accounts for the year ended March 31, 2010.

11. a) In the absence of taxable income during the year and in view of exemption under section 80I C, no provision for current Income tax has been made.

b) In accordance with the Accounting Standard-22 (AS-22) & Accounting Standard Interpretation (ASI)3 regarding "Accounting for Taxes on Income", issued by The Institute of Chartered Accountants of India, the Deferred Tax Assets/Liabilities have not been accounted for in view of tax holiday exemption available under section 80IC of the Income Tax Act, 1961.

12. The secured debt of the Company in the nature of Working Capital borrowing from State Bank Of India has been settled on One Time Settlement (OTS) basis. As of date, the amount payable to SBI as per the OTS has been discharged in full and No Dues Certificate obtained from State Bank of India and Satisfaction of the same has been registered with ROC. The interest paid to SBI as per OTS has been accounted in the books of accounts for the year ended March 31, 2010.

13. As per order of Honble BIFR & in view of various reliefs & concessions allowed to the Company by all stakeholders and the commitments to provide fresh finances to the Company, and the continuing efforts of the Company to improve the operational efficiency of rolled, figured & wired glass manufacturing plant, the Company will be able to make its net worth exceed the accumulated losses in the foreseeable future, and accordingly, the accounts of the Company have been prepared on going concern basis.

14. a) The Company could not be strictly regular in depositing its statutory dues due to financial constraints. The overdue outstanding as on March 31, 2010 were in respect of Provident Fund Rs.81,84,582/-(since paid Rs.32,84,029/-), Service Tax Rs.19,68,677/-, Barrier Tax Rs. 10,36,036/-, ESI Rs.1,35,818/- (since paid Rs. 1,35,818/-), Central & State Sales Tax Rs.78,21,455,/-, Mandi Tax Rs. 1,87,606/-, Income-tax(TDS) Rs.2,33,028/- (since paid Rs. 2,33,028/-).

b) No provision for interest and other levies, if any, on overdue statutory payments has been made, as the same will be accounted for as and when paid/settled.

15. A Civil Writ Petition filed by the Company in May, 2010 under Article 226 of the Constitution of India for implementation the Rehabilitation Scheme dated April 10, 2006 sanctioned by the Honble BIFR seeking direction to the H. P. Govt., H. P. S. E. B. and Others to implement the aforesaid scheme was admitted and stay granted from recovery of the taxes and levies subject matter of the aforesaid petition. The Company does not consider itself liable for the taxes and levies collection whereof has been stayed and if required, will account to the same in the year of final order in the matter.

16. Additional information under Part-ll of Schedule VI of the Companies Act, 1956, as certified by the Management.

17. Figures for the Previous year have been regrouped/ rearranged wherever necessary.

 
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