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Notes to Accounts of Kumar Wire Cloth Manufacturing Co Ltd.

Mar 31, 2014

1) Terms /rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

15,00,000 equity shares of Rs.10/- each issued during the year to strategic investors and promotors and their associates are subject to a lock-in period of 3 years up August 27, 2015.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Contingent Liabilities

Corporate Guarantees given to financial Institutions 3,000,000 3,000,000

against credit facilities extended to other bodies corporate Grampanchayat Tax 247,500 -

3 The company is required to furnish the list of outstanding to Small Scale Industrial undertakings under the head Current Liabilities. The Company had requested the vendors to furnish, the information with SSI Registration Number. Due to non receipt of the said information, the details are not furnished.

4 The balances of certain Sundry Debtors/ Sundry Creditors/ Loans and Advances and Unsecured loans are subject to confirmation.

5 The company made a reference to the Board For Industrial & Financial Reconstruction (BIFR) and BIFR declared the company as sick on 21.02.2006 u/s 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act,1985.The rehabilitation scheme prepared by Karnataka Bank Limited as Operating Agency was sanctioned by BIFR vide its order dated 25.02.2010. Later, BIFR sanctioned certain modifications to the scheme vide its order dated 3.9.2010 & 7.3.2012. The sanctioned scheme is under implementation.During the year the company paid the outstanding dues to creditors & towards Income Tax and Sales Tax except for the amounts due on March 31, 2014 to the extent of the Rs. 13.34 lacs.

6 Previous year figures have been regrouped / rearranged wherever necessary / possible.


Mar 31, 2010

A. RETIREMENT BENEFITS TO EMPLOYEES:

At present company does not have any employees, hence no provision is made in the accounts towards retirement benefits.

As At 31-03-2010 As At 31-03-2009 (Rs.) (Rs.)

B. Contingent Liabilities not provided for in respect of a) Corporate Guarantees given to financial Institutions against credit facilities extended 3,000,000 3,000,000 to other bodies corporate.

C. In accordance with past practice, Excise Duty on goods lying in the factory as on 31.03.2010 will be accounted on clearance of such goods. The excise duty liability of Rs. 72,669/- if provided would have no effect on the loss for the year.

D. The company is required to furnish the list of outstanding to Small Scale Industrial undertakings under the head Current Liabilities. The Company had requested the vendors to furnish the information with SSI Registration Number. Due to non receipt of feedback from Vendors the company is unable to provide such information in its accounts.

E. The balances of certain Sundry Debtors/ Sundry Creditors/ Loans and Advances and Unsecured loan are subject to confirmation .

F. The company made a reference to BIFR and 8IFR declared the company as sick u/s 3 (I) (O) of the Sick Industrial Companies Act at the hearing held on 21-02-2006. The Company submitted a DRS (Draft Rehabilitation Scheme) to Karnataka Bank, the Operating Agency on 17-06-2008 which was forwarded to BIFR. BIFR directed on 16-06-2009 to circulate the DRS. The scheme was , duly circulated to all concerned. BIFR vide its order dated February 25, 2010 sanctioned the scheme for implementation.

G. Previous year figures have been regrouped / rearranged wherever necessary / possible.


Mar 31, 2009

A. RETIREMENT BENEFITS TO EMPLOYEES:

At present company does not have any employees, hence no provision is made in the accounts towards retirement benefits.

As At 31-03-2009 As At 31-03-2008

B. Contingent Liabilities not provi ded for in respect of (Rs.) (Rs.)

a) Corporate Guarantees given to fin ancial Institutions against credit facilities extended to other bodi es corporate. 3,000,000 3,000,000

C. Expenditure incurred on employees during the year who were in receipt of Rs.24,00,000 p.a. or Rs. 2,00, 000 p.m. if employed for part of the year. - -

a) Employed throughout the year. Nil Nil

b) Employed for part of the year. Nil Nil

D. Auditors Remuneration:

a. Audit Fees 10,000 10,000

b. For other Services - Tax Audit

E. Import Calculated on C.I.F. basis Nil Nil

F. Expenditure in foreign currency Nil Nil

M. a). Deferred Tax has been accounted in accordance with the requirement of Accounting standards on "Taxes on Income "(AS 22). b). The major components of the Deferred Tax Liabilities, based on the tax effect of the timing differences as at 31 st March 2009 are as under:

(***) In view of lack of certainty regarding future profits, deferred tax assets have not been accounted in accordance with the provisions of Accouting Standard 22.

N. In accordance with past practise, Excise Duty on goods lying in the factory as on 31.03.2009 will be accounted on clearance of such goods.The excise duty liability of Rs.58,135/- if provided would have no effect on the loss for the year.

O. The company is required to furnish the list of outstandings to Small Scale Industrial undertakings under the head Current Liabilities. The Company had requested the vendors to furnish the information with SSI Registration Number. Due to not receipt of feedback from Vendors the company is unable to provide such information in its accounts. P. The balances of certain Sundry Debtors/Sundry Creditors/Loans and Advances and Unsecured loan are subject to confirmation . Q. Provision for interest of Rs. 13,44,690/- on loans from certain parties has not been made as the company is negotiating with the parties for revision of terms and conditions.

R. The company made a reference to BIFR and BIFR declared the company as sick u/s 3 (I) (O) of the Sick Industrial Companies Act at the hearing held on 21-02-2006. The Company submitted a DRS (Draft Rehabilitation Scheme) to Kamataka Bank, the Operating Agency on 17-06-2008 which was forwarded to BIFR. BIFR directed on 16-06-2009 to circulate the DRS. The scheme is under active consideration of BIFR.

S. Previous year figures have been regrouped / rearranged wherever necessary / possible.