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Notes to Accounts of Kilburn Office Automation Ltd.

Mar 31, 2015

1.1 Contingent Liabilities :

a) 11% Cumulative Redeemable Preference Shares - arrear dividend from 01.04.2002 to 31.03.2015 Rs. 1,71,59,812/- (from 01.04.2002 to 31.03.2014-Rs. 1,58,39,812/-).

b) (i) A legal case is pending at ECGC Jaipur against the company in the consumer court, liability which may arise in the future can not be estimated at this stage. Total Amount involved in the case is Rs. 95,000/-.

(ii) Two cases are pending against the Company under Industries Disputes Act, 1947 in the Labour Court of Pune.

(iii) A case has been filed by a shareholder seeking certain documents from the Company at Bankshall Court, Kolkata. Nofinancial liabilityofthe companywould arise in the said case.

c) Bank Guarantee - Rs. 22,14,856/- (and as on 31.3.2014 - Rs. 80,90,675/-)

1.2 Debtors amounting to Rs. Nil (Prev. Year Rs. 759,121/-) has been written off as in the opinion of the management, realization from those Debtors are doubtful.

1.3 In the opinion of the management all current assets as at 31st March, 2015, including loans and advances, deposits and trade receivables have a value on realization in the ordinary course of business at least equal to the amounts at which they have been stated in the Balance Sheet of the company as at that date.

1.4 Based on the information available with the company, the balance due to Micro and Small enterprises, as defined underthe Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is Rs. Nil (P.Y. Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

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.

1.5 The Company has received Order Under Section 143(3)/147 of the Income Tax Act, 1961 for the financial year 2004-05 in which certain disallowances were made by the income tax department while computing the tax liability ofthe company and accordingly demand ofRs. 2.75 Crore has been raised by the Authority. But an appeal has been preferred by the Company with CIT(Appeals) for defending the case and management is hoping that the case will be decided in the favour of the company so no provision has been made in regard to demand raised by the Income Tax Department.

1.6 Related Party Disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

a) Key Managerial Personnel (KMP): Mr. V. Vanchi and Mr. S.K. Jalan

b) Relatives of Key Managerial Personnel (KMP): Mrs. V. Vanchi

c) Assoicates :- Shree Durga Agencies Limited

d) Enterprises over which KMP or Relatives of KMP exercises significant influence:

Kilburn Chemicals Limited

Nirvan Commercial Co. Limited

Supriya Finance Limited / Pushpdant Vyapaar Private Limited / Arham Vyapaar Private Limited / Ana Vincom Private Limited / Maryada Adivisory Services Private Limited / Sandeep Investments Limited

1.7 Loans and Advances of Rs. 4,91,94,649/- (P.Y. Rs. 5,41,43,170/-) represent the amount advanced in the normal course of operations to sustain and grow the Company's sales and after-sales service activities through its dealer distribution network. The management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

1.8 Deposits amounting to Rs. 1,25,00,000/- (P.Y. Rs. 1,25,00,000/-) were given to certain parties as deposits against opening up of service network in respect of some of the products of the Company and use of godown facility for storing service components relevant for the same. As the Company still continues active business relationship with these parties, the management is ofopinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

1.9 Debtors outstanding over six months include Rs. 3,19,16,151/- (P.Y. Rs. 6,73,57,212/-) representing amounts receivable against sale of products in earlier years wherein payments are delayed on account of technical issues, which the company is trying to resolve. In the opinion of the management, these amounts are good and fully recoverable and therefore no provision is considered necessary against these dues at this stage.

1.10 Balance of Trade Receivables and Trade Payables are subject to confirmation.

1.11 Previous yearfigures have been regrouped and/or rearranged wherever necessary.


Mar 31, 2014

1. Terms attached to Equity shares

Each holder of Equity shares is entitled to one vote per share.

2. Terms attached to Preference shares

1,20,000 11% Cumulative Redeemable Preference Shares of Rs. 100 each are redeemable at par in two equal instalments at the end of the 19th and 20th year from date of allotment i.e. 12/03/2019 and 12/03/2020 Installments falling due in respect of all the above loans upto 31.03.2014 have been grouped under "Current Maturities of Long Term Debt" (Refer Note 2.7)

# Cash Credit Facilities was secured by hypothecation of present and future stock of Raw Materials, Stock in Process, Finished Goods, Stores & Spares (not relating to Plant & Machinery) Book Debts, Receivables etc. Company has repaid all the outstanding dues to Banks and no Cash Credit facility is availed by the company as on 31.03.2014.

## Loan from related parties includes enterprises over which Key Managerial Personnel (KMP) or Relatives of KMP exercises significant influence.

3. The Company''s Provident Fund is exempted under section 17 of the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.

4. Defined Benefit Plan

The employees'' gratuity fund scheme is lying with Life Insurance Corporation of India and it is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. Under the PUC method a ''projected accrued benefit '' is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members ofthe plan. The ''projected accrued benefit '' is based on the Plan''s accrual formula and upon service as of the beginning or end of the year, but using a members final compensation, projected to the age at which the employee is assumed to leave active service. The Plan Liability is the actuarial present value of the ''projected accrued benefits. as of the beginning of the year for active members.

5. The employees leave encashment is funded and is lying with HDFC Standard Life Insurance Company Limited and it is defined benefit scheme. The Defined benefit scheme is recognised in the same manner as gratuity.

Note: The company has recognised expenses and liability in respect to Gratuity and Leave Encashment on the basis of data provided by the Life Insurance Corporation of India and HDFC Standard Life Insurance Company Limited, Fund Manager respectively in the financial statements.

6. Contingent Liabilities :

a) 11% Cumulative Redeemable Preference Shares - arrear dividend from 01.04.2002 to 31.03.2014 Rs. 1,18,39,812/-(from 01.04.2002 to 31.03.2013-Rs. 1,45,19,812/-).

b) A legal case is pending at ECGC Jaipur against the company in the consumer court, liability which may arise in the future can not be estimated at this stage. Total Amount involved in the case is Rs. 66,000/-.

c) Bank Guarantee - Rs. 80,90,675/- (and ason31.3.2013- Rs. 1,56,69,700/-)

7. Debtors amounting toRs. 759,121/- has been written off as in the opinion of the management, realization from those Debtors are doubtful.

8. In the opinion of the management all current assets as at 31st March, 2014, including loans and advances, deposits and trade receivables have a value on realization in the ordinary course of business at least equal to the amounts at which they have been stated in the Balance Sheet of the company as at that date.

9. Based on the information available with the company, the balance due to Micro and Small enterprises, as defined under the Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is Rs. Nil (P.Y. Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

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.

10. The Company has received Order Under Section 143(3)/147 of the Income Tax Act, 1961 for the financial year 2004-05 in which certain disallowances were made by the income tax department while computing the tax liability of the company and accordingly demand of Rs. 2.75 Crore has been raised by the Authority. But an appeal has been preferred by the Company with CIT(Appeals) for defending the case and management is hoping that the case will be decided in the favour of the company so no provision has been made in regard to demand raised by the Income Tax Department.

a) The management certifies that there were no other payments to key management personnel ortheir relatives.

b) Provision to be made with regard to Outstanding Amount: Rs. Nil

11. Loans and Advances of Rs. 5,41,43,170/- (P.Y. Rs. 5,36,09,727/-) represent the amount advanced in the normal course of operations to sustain and grow the Company''s sales and after-sales service activities through its dealer distribution network. The management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

12. Deposits amounting to Rs. 1,25,00,000/- (P.Y. Rs. 1,25,00,000/-) were given to certain parties as deposits against opening up of service network in respect of some of the products of the Company and use of godown facility for storing service components relevant for the same. As the Company still continues active business relationship with these parties, the management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

13. Debtors outstanding over six months include Rs. 6,73,57,212/- (P.Y. Rs. 3,43,63,484/-) representing amounts receivable against sale of products in earlier years wherein payments are delayed on account of technical issues, which the company is trying to resolve. In the opinion of the management, these amounts are good and fully recoverable and therefore no provision is considered necessary against these dues at this stage.

14. Balance of Trade Receivables and Trade Payables are subject to confirmation.

15. Previous yearfigures have been regrouped and/or rearranged wherever necessary.


Mar 31, 2013

1.1 Contingent Liabilities :

a) 11% Cumulative Redeemable Preference Shares - arrear dividend from 01.04.2002 to 31.03.2013Rs. 1,45,19,812/-(from 01.04.2002 to 31.03.2012-Rs. 1,31,99,812/-).

b) A legal case is pending at ECGC Jaipur against the company in the consumer court, liability which may arise in the future can not be estimated at this stage. Total Amount involved in the case is Rs. 66,000/-.

c) Bank Guarantee -Rs. 1,56,69,700/- (and as on 31.3.2012 -Rs. 1,02,55,494/-)

1.2 Debtors amounting to Rs. 779,703/- has been written off as in the opinion of the management, realization from those Debtors are doubtful. Further, Inventory amounting to Rs. 15,25,250/- has been written off as in the opinion of the management, realization of the said inventory is doubtful.

1.3 In the opinion of the management all current assets as at 31st March, 2013, including loans and advances, deposits and trade receivables have a value on realization in the ordinary course of business at least equal to the amounts at which they have been stated in the Balance Sheet of the company as at that date.

1.4 Based on the information available with the company, the balance due to Micro and Small enterprises, as defined under the Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is Rs. Nil (P.Y. Rs. Nil). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

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.

1.5 The Company has received Order Under Section 143(3)/147 of the Income Tax Act, 1961 for the financial year 2004-05 in which certain disallowances were made by the income tax department while computing the tax liability of the company and accordingly demand of Rs. 2.75 Crore has been raised by the Authority. But an appeal has been preferred by the Company with CIT(Appeals) for defending the case and management is hoping that the case will be decided in the favour of the company so no provision has been made in regard to demand raised by the Income Tax Department.

1.6 Related Party Disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

a) Key Managerial Personnel (KMP): Mr. V. Vanchi and Mr. S.K. Jalan

b) Relatives of Key Managerial Personnel (KMP): Mrs. V. Vanchi

c) Enterprises over which KMP or Relatives of KMP exercises significant influence: 0 Shree Durga Agencies Limited

0 Kilburn Chemicals Limited

0 Nirvan Commercial Co. Limited

0 Supriya Finance Limited

0 Pushpdant Vyapaar Private Limited

e) The management certifies that there were no other payments to key management personnel or their relatives.

f) Provision to be made with regard to Outstanding Amount: Rs. Nil

1.7 Loans and Advances of'' 5,36,09,727/- (P.Y. Rs. 4,28,56,365/-) represent the amount advanced in the normal course of operations to sustain and grow the Company''s sales and after-sales service activities through its dealer distribution network. The management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

1.8 Deposits amounting to Rs. 1,25,00,000/- (P.Y. Rs. 1,25,00,000/-) were given to certain parties as deposits against opening up of service network in respect of some of the products of the Company and use of godown facility for storing service components relevant for the same. As the Company still continues active business relationship with these parties, the management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

1.9 Debtors outstanding over six months include Rs. 3,43,63,484/- (P.Y. Rs. 3,43,63,484/-) representing amounts receivable against sale of products in earlier years wherein payments are delayed on account of technical issues, which the company is trying to resolve. In the opinion of the management, these amounts are good and fully recoverable and therefore no provision is considered necessary against these dues at this stage.

1.10 Balance of Trade Receivables and Trade Payables are subject to confirmation.

1.11 Previous year figures have been regrouped and/or rearranged wherever necessary.


Mar 31, 2010

1) Accounting Assumptions

In respect of the following the company follows cash basis of accounting.

i) Service Income

ii) Interest Costs & Income

2. Contingent Liabilities :

a) 11% Cumulative Redeemable Preference Shares - arrear dividend from 01.04.2002 to 31.03.2010 Rs.1,05,59,812/- (31.03.2009 - Rs.1,19,48,524). The Company has proposed to pay arrears 11% Cumulative Preference Dividend for the period from 12.3.2000 to 31.03.2002 amounting to Rs. 27,08,712/-.

b) A legal case is pending at ECGC Jaipur against the company in the consumer court, liability which may arise in the future cannot be estimated at this stage. Total Amount involved in the case is Rs. 66,000.

c) Bank Guarantee - Rs.99,70,306/- (31.3.2009-Rs.1,04,53,551).

3. In the opinion of the management all current assets as at 31st March, 2010, including loans and advances, deposits and sundry debtors have a value on realization in the ordinary course of business at least equal to the amounts at which they have been stated in the Balance Sheet of the company as at that date.

4. Interests paid include Rs.75,01,201(31.03.2009-Rs.1,10,54,581) on account of Inter-Corporate Deposits and Fixed Deposits from Public.

5. a) Loans and Advances of Rs.6,69,51,630 ( previous year -Rs.5,26,76,928) represent the amount advanced in the normal course of operations to sustain and grow the Companys sales and after-sales service activities through its dealer distribution network. The management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

b) Deposits amounting to Rs.1,25,00,000 (previous year - Rs.1,26,98,000) were given to certain parties as deposits against opening up of service network in respect of some of the products of the Company and use of godown facility for storing service components relevant for the same. As the Company still continues active business relationship with these parties, the management is of opinion that all these amounts are good and is confident of its recovery and accordingly feels that no provision for the same is required at this stage.

6. Debtors outstanding over six months include Rs.5,05,60,499 (previous year - Rs.6,48,81,280) representing amounts receivable against sale of products in earlier years wherein payments are delayed on account of technical issues, which the company is trying to resolve. In the opinion of the management, these amounts are good and fully recoverable and therefore no provision is considered necessary against these dues at this stage.

7. Out of the past Deferred Tax Assets of Rs.3,12,39,172,the Company has partly written off during the year and as decided by the Company, the balance amount will be written off in subsequent years.

8. The company had received legal notices from three parties, for recovery of loans and advances towards bill discounting to the company. The Company has already repaid in full the loan amount to two parties in accordance with the directions of the Calcutta High Court. In respect of one party, the loan amount is being repaid in accordance with the schedule as per order passed by the Calcutta High Court.

9. In the absence of the information about registration of the Enterprises under Micro, Small & Medium Enterprise Development Act,2006 the required information could not be furnished.

10. The Company has received a Notice Under Section 143(3)/147 of the Income Tax Act,1961.An Appeal has been preferred by the Company with CIT(Appeals) for defending the case. Pending the outcome of the Appeal, the Provision for Taxation has been calculated under Section 115JB (MAT) of the Income Tax Act,1961.

11. Inventory amounting to Rs.1,86,47,885 has been written off as in the opinion of the management, realisation of the said invenory is doubtful. Further, loan liability to the extent of Rs.1,90,00,000 has been written back.

12. Related party disclosures as required by AS -18 " Related Party Disclosures are given below:

1. Relationships:

(a) Shree Durga Agencies Limited (SDAL), a Company holding more than 20 % of the shares of Kilburn Office Automation Ltd.

(b) Key management personnel i.e. Directors, and their relatives

(i) Mr. V.Vanchi - Managing Director

(ii) Mrs. V.Vanchi - Wife of Managing Director

(ii) Relating to person referred to in 1(b) above:

Remuneration Rs.25,08,284 (31.03.2009: Rs. 21,87,253)

Rent paid Rs.8,38,500 (31.03.2009: Rs. 6,66,000 ).

The management certifies that there were no other payments to key management personnel or their relatives.

13. Previous years figures have been rearranged/regrouped wherever necessary.

 
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