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Notes to Accounts of Lords Chloro Alkali Ltd.

Mar 31, 2015

1. Terms & Conditions of Secured Borrowings

*Term Loan from other parties (NSFC) .

2. Secured by way of First charge on all the moveable Fixed Assets and leasehold Project Land of the Company,

3. Secured by way of pledge of 26% fully paid up Equity Share of the company.

4. Secured by way of personal guarantee of Mr. Alok Dhir and Mr. Rakesh Ahuja, Promoters cum directors of the Company.

5. Repayable thirty monthly Installment of Rs.40.00 lao each payable from July 2015 along with Interest of 14.50%(also refer note B-7a)

6. Last installment payable on 31.12,2017.

b. Terms & Conditions of Unsecured Borrowings # Loans from Related Parties

1. All the loans have been taken from the directors on interest free basis to meet the working capital requirements of the Company.

All the loans are repayable within a period of 10 years from the date of receipt of loan on the terms as mutually decided between the parties. For detailed Related Party Disclosure, refer note no B.33 of Notes to Accounts.

## Other Loans and Advances comprises of the followings:

1. Loans from Body Corporates

(a) Loan Amount Rs 10.34 lacs

Terms & Conditions:- The above loan comprises of two loans obtained from two body corporates amounting to Rs. 10.34 lacs respectively. These loans are subject to confimations and the terms and conditions of these loans are not known to the company.

2. Loans from NBFC's

(a) Loan Amount Rs. 395 lacs

Terms & Conditions:-All the above loans have been taken during the current financial year from seven NBFC's , which carries rate of interest 9% p.a,, payable on quarterly basis. All the loans are repayable after 1 year from the date of taking the loan

3. Terms of Loan and Advances from others

Sales Tax Loan from RIlCO Rs. 40.46 Lac (Previous year Rs. 40,4S Lac is Interest free and guaranteed by the earlier Ex- Managing Directors - and Ex- Directors of the Company in their personal Capacity).

7. Leasehold Land at Alwar costing Rs. 17.32 lacs was revalued to Rs. 84.74 lacs as on 30.04.1984

8. Durinq the year, pursuant to the notification of Schedule U to the Companies Act, 2013 with effect from April 1,2014, the Company revised the estimated useful life of its assets to align the useful life with those specified in Schedule II.

9. Pursuant to the transition provisions prescribed in schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the assets was determined to be NIL as on April 1,2014, and has adjusted an amount of Rs 38.88 Lacs against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

10. The management based on external technical evaluation, reassessed the remaining useful life of assets primarily consisting of Plant & Machinery and Electrical Installations at its Alwar Plant Rajasthan. Accordingly, the useful lives of Plant & Machinery and Electrical Installations at its Alwar Plant, Rajasthan have been changed from the previous estimates.

11. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt and hence not provided in the books of accounts are:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.503.59 Lac including interest and penalty of Rs. 168.33 Lac (previous year Rs. 595.41 Lac including interest and penalty of Rs. 183.33 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs.20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.28 Lac (previous year Rs. 27.28 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 1226.12 Lac).

(vii) Disputed demand for uninterepted power cut by JWNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. NIL Lac (previous year Rs. 728.66 Lac) (net of advances).

12. Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

13. During the year, the Company has successfully completed the revamp of 107 TPD plant, Alwar, Rajasthan and has started the production from 10th February 2015.

14. High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JWNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JWNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JWNL.

15. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

16. Employee benefits

a) Defined benefit plans: Gratuity

1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for gratuity has been included in 'Salaries, Wages, Allowances and other Benefits. .

3) Actuarial valuation of gratuity has been done with the following assumptions.

b) Defined benefit plans: Leave Encashment

1) Provision towards Leave Encashment is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account

2) The charge on account of provision for Leave Encashment has been included in Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of Leave Encashment has been done with the following assumptions.

17. In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party's relationship where control exists:-

(i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company, a) Shri Alok Dhir & Shri Rakesh Ahuja

(B) Name of related party and nature of related party's relationship having transaction with the company:-

(i) Key Managerial Personnel Relative of Key management Personnel

a) Shri Rakesh Ahuja (Non Executive Director) NIL

b) Shri Ajay Virmani (Managing Director) NIL

c) Shri Yuvraj Ahuja (Executive Director) NIL

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise significant influence.

a) Dhir & Dhir Associates

b) Cirrus Chemicals Pvt. Ltd.

c) Transactions with related parties (consolidated) for the financial year 2014-15.

18. As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided. .

19. Long Term Contracts

There are no long term contracts as on 31.03.2015 including derivative contracts for which there are any materia! forseeable losses.

20. The previous year figures have been regrouped, rearranged and reclassified, wherever found necessary.


Mar 31, 2014

1 Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.595.41 Lac including interest and penalty of Rs.183.33 Lac (previous year Rs. 595.41 Lac including interest and penalty of Rs.183.38 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs.20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.28 Lac (previous year Rs. 27.28 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 1226.12 Lac).

(vii) Disputed demand for incentive allowed in electricity bill by JVVNL Rs.68.86 Lac (previous year Rs. 68.86 lac) contested by the Company.

(viii) Disputed demand for uninterepted power cut by JVVNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 728.66 Lac (net of advances (previous year Rs. 955.54 Lac).

2 Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

3 The Company has taken steps for revamping and refurbishing the plant for increasing efficiency and Capacity. Therefore the production has been stopped since Aug. 2011.

4 High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JVVNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

5 Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

6 Based on the available information with the Company, the information related to Micro, Small and Medium Enterprises Development Act, 2006 is as under:

7 Employee benefits

a) Defined benefit plans: Gratuity

1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for gratuity has been included in ''Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of gratuity has been done with the following assumptions.

b) Defined benefit plans: Leave Encashment

1) Provision towards Leave Encashment is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for Leave Encashment has been included in Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of Leave Encashment has been done with the following assumptions.

8 Earnings per share (in terms of Accounting Standard AS-20 issued by the Institute of Chartered Accountants of India).

9 As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

10 Additional information as far as applicable pursuant to Part II of Schedule VI to the Companies Act, 1956:

11 The previous year figures have been reclassified to confirm to this year''s classification where ever necessary.


Mar 31, 2013

A.1 Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.595.41 Lac including interest and penalty of Rs.183.33 Lac (previous year Rs. 641.27 Lac including interest and penalty of Rs.183.38 Lac). (ii) In respect of Electricity Duty disputes pending with Judicial Authorities

Rs.20.03 Lac (previous year Rs.20.03 Lac). (iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs.

27.28 Lac (previous year Rs. 27.38 Lac). (iv) In respect of Income Tax disputes pending with various Judicial

Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac). v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac). vi) In respect of demand from DGFT, relating to default of export obligations related to advance licence Rs. NIL (previous year Rs. 693.96 Lac). The matters has been remanded back by the appropriate authority.

vii) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 1226.12 Lac).

viii) Disputed demand for incentive allowed in electricity bill by JVVNL Rs.68.86 Lac (previous year Rs. 68.86 lac) contested by the Company.

ix) Disputed demand for uninterepted power cut by JVVNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) estimated amount of contracts remaining to be executed on capital account rs. 955.54 Lac (net of advances) (previous year rs. 25.09 Lac).

A.2 Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confrmation and adjustments necessary upon reconciliation thereof.

A.3 The Company has taken steps for revamping and refurbishing the plant for increasing effciency and Capacity. Therefore the production has been stopped since Aug. 2011.

A.4 High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to Jaipur Vidyut Vitran Nigam Limited (JVVNL). Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confrmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confrmation from JVVNL.

A.5 Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

A.6 Based on the available information with the Company, the information related to Micro, Small and Medium Enterprises Development Act, 2006 is as under:

A.7 Employee benefts

(a) Defned beneft plans: Gratuity

(1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the proft and loss account.

(2) The charge on account of provision for gratuity has been included in ''Salaries, Wages, Allowances and other Benefts.

(3) Actuarial valuation of gratuity has been done with the following assumptions.

A.8 In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party''s relationship where control exists:- (i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the fnancial and/or operating policies of the company.

a) Shri Alok Dhir & Shri Rakesh Ahuja

(B) Name of related party and nature of related party''s relationship having transaction with the company:- (i) Key Managerial Personnel Relative of Key management

Personnel

a) Shri Rakesh Ahuja (Non Executive Director)

b) Shri Ajay Virmani (Managing Director)

c) Shri Yuvraj Ahuja (Executive Director)

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise signifcant infuence.

a) Dhir & Dhir Associates

A.9 As per the provision and defnition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

A.10 The previous year fgures have been reclassifed to confrm to this year''s classifcation where ever necessary.


Mar 31, 2012

* Terms of Term Loan from Bank

1. Secured by way of Hypothecation of Car.

2. Repayable monthly installment of Rs.0.24 lac along with interest of 9.51% (also refer note B-8a)

3. Last installment payable on January 2015.

** Terms of Term Loan from Others

1. Secured by way of first charge over all Movable and Imovable assets of the company present and future.

2. Repayable ten half yearly installments payable from 1st July 2013 along with interest @12.50% p.a.

3. Last installment payable on January 2018.

*** Terms of Loan and Advances from others

Sales Tax Loan from RIICO Rs. 40.48 Lac (Previous year Rs. 40.48 Lac is Interest free and guaranteed by the earlier Ex- Managing Directors and Ex- Directors of the Company in their personal Capacity).

There is no specefic term and condition of Loan amounting to Rs. 15.34 Lac

A.1 Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.641.27 Lac including interest and penalty of Rs.183.38 Lac (previous year Rs. 639.74 Lac including interest and penalty of Rs.183.38 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs.20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.38 Lac (previous year Rs. 27.38 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 287.17 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) In respect of demand from DGFT, relating to default of export obligations related to advance licence Rs.693.96 Lac (previous year Rs. 693.96 Lac), contested by the Company. Now the matters has been remanded back to the appropriate authority for de novo consideration.

(vii) Disputed demand for late payment surcharge on electricity dues amounting Rs. 1226.12 Lac. However the company has paid Rs. 337.24 lac under protest on account of late payment surcharge (previous year Rs. 602.35 Lac).

(viii) Disputed demand from Provident Fund Department pending with Judicial Authorities Rs.94.50 Lac (previous year Rs. 140.30 Lac).

(ix) Disputed demand for incentive allowed in electricity bill by JVVNL Rs.68.86 Lac (previous year Rs. 55.94 lac) contested by the Company.

(x) Disputed demand for uninterepted power cut by JVVNL Rs. 11.72 Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 25.09 Lac (net of advances) (previous year Rs. 126.39 Lac).

A.2 Balances of sundry debtors, loan and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

A.3 The Company has taken steps for revamping and refurbishing the plant for increasing efficiency and Capacity. Therefore the production has been stopped since Aug. 2011.

A.4 During the year, the company has regrouped the figure of CWIP under the head capital advance to Short Term Loan & advances as per the requirement of Revised Schedule VI.

A.5 During the year, the company has reversed the liability of Rs.52.98 Lac payable to RIICO which has been settled and no longer required.

A.6 High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to JVVNL. Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

A.7 Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

A.8 Employee benefits

a) Defined benefit plans: Gratuity

1) Provision towards gratuity is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for gratuity has been included in 'Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of gratuity has been done with the following assumptions.

b) Defined benefit plans: Leave Encashment

1) Provision towards Leave Encashment is based upon actuarial valuation done by an independent actuary using Projected Unit Credit method and it covers all regular employees. Gain and losses on changes in actuarial assumptions are accounted for in the profit and loss account.

2) The charge on account of provision for Leave Encashment has been included in Salaries, Wages, Allowances and other Benefits.

3) Actuarial valuation of Leave Encashment has been done with the following assumptions.

A.9 In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party's relationship where control exists:-

(i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company.

a) Shri Alok Dhir, Shri Ashok Kumar & Shri Rakesh Ahuja

(B) Name of related party and nature of related party's relationship having transaction with the company:-

(i) Key Managerial Personnel Relative of Key management

Personnel

a) Shri Laxmi Paul Dhir (Chairman, Non Executive Director)

b) Shri Rakesh Ahuja (Non Executive Director)

c) Shri Ashok Kumar* Smt. Suman Kumar* (Managing Director)

d) Shri Ajay Virmani**

(Executive Director & CEO)

e) Shri Dhananjay Gautam*

(Whole time Director)

f) Shri Jeevesh Kumar (Whole time Director)

g) Shri Yuvraj Ahuja (Executive Director)

h) Shri Jagtar Singh*

(Whole time Director)

Note: * These managerial personal has now resigned from the company.

** Appointed as Managing Director w.e.f. 12th July 2012.

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise significant influence.

a) Dhir & Dhir Associates

A.10 As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

A.11 The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised schedule- VI to the Company Act. 1956. Consequent to the notification of revised schedule-VI under the Company Act 1956, the financial statements for the year end March31 2012 are prepared as per revised schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of revised schedule VI for previous year figures does not impact recognition and measurement principals followed for preparation of financial statements.


Mar 31, 2011

1. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs.639.74 Lac including interest and penalty of Rs.183.38 Lac (previous year Rs. 709.34 Lac including interest and penalty of Rs. 239.46 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs. 20.03 Lac (previous year Rs.20.03 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 27.38 Lac (previous year Rs. 69.27 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 287.17 Lac (previous year Rs. 317.87 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs.35.00 Lac (previous year Rs.35.00 Lac).

(vi) In respect of demand from DGFT, relating to default of export obligations related to advance license Rs. 693.96 Lac (previous year Rs. 693.96 Lac), contested by the Company.

(vii) Disputed demand for late payment surcharge on electricity dues amounting Rs. 939.59 Lac. However the company has paid Rs. 337.24 lac under protest during the year on account of late payment surcharge (previous year Rs. 515.28 Lac).

(viii) Disputed demand from Provident Fund Department pending with Judicial Authorities Rs.140.30 Lac (previous year Rs. 201.64 Lac).

(ix) Disputed demand for excess incentive allowed in electricity bill by JVVNL Rs. 55.94 Lac (previous year Rs. 55.94 lack) contested by the Company.

(x) Disputed demand for uninterested power cut by JVVNL Rs.

11.72Lac (previous year Rs. 11.72 Lac).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 126.39 Lac (net of advances) (previous year Rs. 26.39 Lac).

2. Balances of sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof.

3. High Power Consumption Incentive of Rs. 235.64 Lac has been adjusted in the payment due to JVVNL. Out of the total incentive of Rs.235.64 Lac, Rs. 120.00 Lac is confirmed by JVVNL and the balance amount of Rs. 115.64 Lac has been accounted for on due basis, subject to confirmation from JVVNL.

4. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

5. Particulars in respect of small scale industries have been furnished to the extent such parties have been identified on the basis of information available with the company. The small scale industries to whom the company owes any sum, which is outstanding as on 31st March 2011 for more than 30 days, are;

6. During the year, the Company has made investment in office space for enhancement of business activity which is included in CWIP.

7. The provision for obsolete / non - moving stores & Spares has been reduced to Rs. 10.56 lack on the basis of technical evaluation made by the management. Consequently, excess provision of Rs. 192.27 lack has been reversed during the year.

8. During the year, the company has realized Doubtful debts of Rs 300.57 Lac which was earlier termed as doubtful. Consequently, the provision for the same no longer required has been reversed.

9. The company has filed application to the Central Government for approval of Remuneration u/s 198, 269 & 309 of the Company's Act 1956 and the same is awaited.

10. In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related party's relationship where control exists:-

(i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company. a) Shri Alok Dhir & Shri Ashok Kumar

(B) Name of related party and nature of related party's relationship having transaction with the company:-

11. As per the provision and definition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

12. Additional information as far as applicable pursuant to Part II of Schedule VI to the Companies Act, 1956:

*Reflects internal consumption/adjustment # Value includes traded goods 52 MT of Rs. 10.92 Lac during the year (previous year 233 MT of Rs. 24.83 Lac)

13. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2010

1. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debt:

(i) In respect of Excise Duty disputes pending with various Judicial Authorities Rs. 709.34 Lac including interest and penalty of Rs. 239.46 Lac (previous year Rs. 708.98 Lac including interest and penalty of Rs. 239.46 Lac).

(ii) In respect of Electricity Duty disputes pending with Judicial Authorities Rs. 20.03 Lac (previous year Rs.44.57 Lac).

(iii) In respect of Entry Tax disputes pending with Judicial Authorities Rs. 69.27 Lac (previous year Rs. 78.36 Lac).

(iv) In respect of Income Tax disputes pending with various Judicial Authorities Rs. 317.87 Lac (previous year Rs. 846.95 Lac).

(v) In respect of previous years dispute relating to import, pending with Judicial Authorities Rs. 35.00 Lac (previous year Rs.150.00 Lac).

(vi) In respect of demand from DGFT, relating to default of export obligations related to advance licence Rs. 693.96 Lac (previous year Rs. 102.91 Lacs ), contested by the Company.

(vii) Disputed demand for late payment surcharge on electricity dues amount Rs. 515.28 Lac (previous year Rs. 257.29 Lac) contested by the Company.

(viii) Disputed demand from Provident Fund Department pending with Judicial Authorities Rs. 201.64 Lac (previous year Rs. 209.64 Lac).

(ix) Disputed demand for excess incentive allowed in electricity bill by JVVNL Rs.55.94 Lac (previous year Rs. 55.39 lac ) contested by the Company.

(x) Disputed demand for uninterperted power cut by JVVNL Rs.11.72 Lac (previous year Rs. Nil lac ).

(b) Estimated amount of contracts remaining to be executed on capital account Rs. 26.39 Lac (net of advances) (previous year Rs. 31.13 Lac).

3. Other Liabilities include an amount of Rs. 15.00 Lac received from M/s Cirrus Chemicals Private Ltd. towards part consideration of Rs. 150.00 Lac for sale of Land.

4. Balances of sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confrmation and adjustments necessary upon reconciliation thereof.

5. Other Current Assets includes an amount of Rs.176.53 Lac receivable from JVVNL on account of High Power Consumption Incentive, out of which Rs. 120.00 Lac is confrmed by them and the balance amount of Rs. 56.53 Lac has been account for on due basis, for which confrmation is awaited.

6. Unclaimed amount in respect of debentures and excess share application money refundable (amount outstanding is Rs. 11.64 Lac) is required to be transferred to the "Investor Education and Protection Fund" in terms of Section 205C of the Companies Act, 1956. The Company is taking steps to reconcile the above accounts and deposit the amount with the appropriate authorities.

7. During the year, the company has entered into an Agreement to Sell dated 25.03.2010 of its land at Modigarh, Village Galota, Tehsil Ramgarh, District Alwar, Rajasthan having area of 33 Bigha 19 Biswa to M/s Annalakshmi Trading Private Limited for a total consideration of Rs. 625 lac and possession has been handed over to the vendee in terms of Section 53A of Transfer of Property Act, 1882. As per the terms of agreement, the total consideration has to be paid by M/s Annalakshmi Trading Private Limited by 30th September 2010. The company has received Rs. 25 lac by March 2010. Subsequently, substantial payment has been received by the company. On the basis of Agreement to Sell and in view of the subsequent receipt of amounts and handing over the physical possession of the land to the vendee, the company has recorded the sale transaction as on 31st March 2010, in terms of section 53A of the Transfer of Property Act, 1882.

8. The company has started trading activities during the year 2009-10. In some of the Transactions, vender failed to deliver the goods as agreed. However, company was able to enforce the damages of Rs. 325 lac on them and has recorded the same in the books of accounts as other income on 31st March, 2010.

11. In terms of AS-18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, information required to be disclosed in respect of related parties is given below:

(A) Name of related party and nature of related partys relationship where control exists:- (i) Party having substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the company.

a) Shri Alok Dhir & Shri Ashok Kumar

(B) Name of related party and nature of related partys relationship having transaction with the company:-

(i) Key Managerial Personnel Relative of Key management Personnel

a) Shri Ashok Kumar Smt. Suman Kumar (Managing Director)

b) Shri Jeevesh Kumar (Whole time Director)

c) Shri Dhananjay Gautam (Whole time Director)

d) Shri Jagtar Singh (Whole time Director)

(ii) Party having signifcant infuence:

a) Shri Rakesh Ahuja

(iii) Associate Entities over which key management personnel and person having substantial interest in voting power are able to exercise signifcant infuence.

a) Cirrus Chemicals Pvt. Ltd.

b) Dhir & Dhir Associates

c) Shiva Consultants Pvt. Ltd.

d) Opus Reality Development Ltd.

15. As per the provision and defnition given in AS-28, since the recoverable amount of the assets are more than the carrying amount of the assets, no impairment loss needs to be provided.

19. The previous years fgures have been reworked, regrouped, rearranged and reclassifed wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

 
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