Mar 31, 2018
NOTE - 1 : FINANCIAL INSTRUMENTS
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.
The Financial Instruments are categorised in two level based on the inputs used to arrive at fair value measurements as described below:-
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: Inputs which are not based on observable market data
Note 2âFinancial Risk Management
Financial risk management objectives and policies
The companyâs principal financial liabilities comprises of loans and borrowings, trade and other payables. The Companyâs principal financial assets include mutual funds, trade and other receivable and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The senior management ensures that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are indentified, measured and managed in accordance with the Companyâs policies and risk objectives. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purpose. The Board of Directors reviews policies for managing each of these risks, which are summarized below :
Market risk is the risk that changes in market prices-such as foreign exchange rates, interest rates and equity prices will affect the Companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the return. The major components of market risk are foreign currency risk and interest rate risk .
(i) Market Risk- Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs main interest rate risk arises from the long term borrowings with fixed rates. The Companyâs fixed rates borrowings are carried at amortized cost. The Company invests the surplus fund generated from operations in mutual funds. Considering these mutual funds are short term in nature, there is no significant interest rate risk. The Company has laid policies and guidelines including tenure of investment made to minimize impact of interest rate risk
(ii) Market Risk- Foreign currency risk.
Foreign currency risk is the risk that the fair fluctuate because in foreign exchange rates. The Company does not have material foreign currency exposure as at balance sheet date. Hence, it does not have any significant foreign currency risk.
(iii) Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the company periodically assess financial reliability of customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the opertaing results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterpartyâs ability to meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements .
(iv) Liquidity Risk
Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time, or at a reasonable price. The companyâs treasury deparment is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
(v) Capital risk management
The primary objective of the Companyâs capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustmentss in light of changes in economic conditions and the requirements of the financial covenants.
NOTES 3 FORMING PART OF FINANCIAL STATEMENTS AS AT 31st March 2018
1) First time adoption of Ind AS
These financial statements are the Companyâs first standalone financial statements prepared in accordance with Ind AS based on the permissible options and exemptions available to the Company in terms of Ind AS 101 âFirst time adoption of Indian Accounting standardsâ. For periods up to and including the year ended on March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous GAAP).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April 1, 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.
1.1 Optional exemptions availed
i) Fair value measurement of financial assets or financial liabilities at Initial Recognition
Company has elected to apply requirement in paragraph B5.1.2A of Ind AS 109 prospectively to transactions entered into on or after the date of transition to Ind ASs.
II) Deemed Cost
The Company has elected to measure all its intangible assets at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.
1.2 Applicable mandatory exceptions i) Estimates
The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies, if any) apart from the following items where application of previous GAAP did not require estimation:°% FVTPL investments°% FVTOCI - debt securities°% Impairment of financial assets based on expected credit loss model
II) Classification and measurement of financial assets
As required under Ind AS 101, the classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.
2) The amounts in the Balance Sheet and Profit and Loss Account are rounded off to the nearest thousand and indicated in lacs of rupees.
3) Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
4) The Company has constituted a Corporate Social Responsibility (CSR) Committee and has framed a CSR Policy. The brief details of CSR Committee are provided in the Corporate Governance Report. The Annual Report on CSR activities is annexed to this Report.
5) The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated February 8, 2011 and February 21, 2011 respectively has granted a general exemption from compliance under Companies Act 2013, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption.Necessary information relating to the subsidiaries has been included in the annexure to the Consolidated Financial Statements.
6) Company has not received any intimation from the suppliers regarding their status under theMicro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relatingto amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.
7) In terms of AS 108 Segment reporting prescribed under sec 133 of companies act 2013, segment information has been appended in the Consolidated Financial Statements (CFS).
8) No commission (Previous Year Rs. NIL) has been paid to the Managing Director / Dy.Managing Director for the year under review in view of resolution passed by the Board of directors and as agreed by the Managing Director.
10) DISCLOSURE PURSUANT TO IND AS - 19 âEMPLOYEE BENEFITSâ
i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (âThe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Reliance Nippon Life Insurance Company Limited and Future Generali life Insuurance Company Limited under Group Gratuity Scheme.
The disclosure in respect of the defined Gratuity Plan are given below:
C. Assumptions
With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.
11) i) In the Opinion of the Management, any of the assets other than fixed assets and non-current investments have value on realization in the ordinary course of business at least equal to the amount at they are stated. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current yearâs financial statements on such reconciliation/ajustments.
ii) Other expenses include bad debts of Rs 440.79 lacs out of which Rs 215.76 lacs is of trade receivables of Anil Limited who has mdae default in payment & legal proceedings are going on with the party and Rs225.03 lacs of loans and advances given to some parties for which amount is not realizable and hence written off as bad debts.
iii) Land is initially recognised at cost During the year land has been revalued by independent professional valuer and revaluation amount is credited to revaluation reserve od RS 3114.62 lacs and carrying amounts of land arising from revaluation is increased by RS 3114.62 Lacs.
iv) Rs.1.68 Lacs being net gain (Previous year Rs.54.40 Lacs being net gain) on account of exchange difference have been adjusted in the respective heads of account in the profit & loss account.
During 1993, the Company had imported plant and machinery under Export Promotion Capital Goods Scheme (âEPCGâ) at concessional rate of custom duty against export obligation under the said Scheme. As the Company could complete only partial Export obligation, it has received a notice of demand from Directorate General of Foreign Trade (âDGFTâ). The Company has paid the entire differential duty amount for Rs.94,68,900 on 10.05.2011 and has made necessary submissions before the authorities. In view of this submission and pending decision of forum, interest liability is not ascertainable.
The companyâs pending litigation comprises mainly claims against the Company, proceedings pending with tax & other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonable expect the outcome of these proceedings to have a material impact on its financial statements. Future cash outflow in respect of the above are determinable only on receipts of judgments/decisions pending with various forums/authorities.
Huntsman International (India) Private Limited, Mumbai has filed arbitration case against the Company for alleged violation of representations and warranties as per the Master Agreement. The above said arbitration proceedings are pending before Arbitration Tribunal.
(ii) Commitment
Operating Lease:
The Company has acquired certain Building/Office Premises under lease arrangement. The future lease payment committed is as under:
Mar 31, 2016
OTHER NOTES TO THE ACCOUNTS
1 Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with current year figures.
2 Excise Duty on Sales has been disclosed as reduction from the turnover.
3 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated February 8, 2011 and February 21, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the annexure to the Consolidated Financial Statements.
4 The amounts in the Balance Sheet and Profit and Loss Account are rounded off to the nearest thousand and indicated in lacs of rupees.
5 The Company has constituted a Corporate Social Responsibility (CSR) Committee and has framed a CSR Policy. The brief details of CSR Committee are provided in the Corporate Governance Report. The Annual Report on CSR activities is annexed to this Report. The CSR Policy is made available on the website of the Company.
6 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding as at the Balance Sheet date. The above information 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.
7 Accounting Standard (As-15) on Employee benefits
Provident Fund Contribution by the Company:
Contributions are made to Recognized Provident Fund/Government Provident Fund, Family Pension Fund, ESIC and other Statutory Funds which covers all regular employees. While both the employees and the Company make predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund are made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary.
Gratuity Benefits :
In respect of Gratuity, the Company has taken policy from Reliance Nippon Life insurance Co. Limited. and from Future Generali insurance Co. Limited policy No: GI000041. The Defined Benefit Obligation as at 31.03.2016 works out to Rs. 26.48 lacs, Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made for all regular employees on the basis Actuarial Valuer''s certificate.
Mar 31, 2014
1 Previous year"s figures have been regrouped / reclassified wherever
necessary to make them comparable with current year figures.
2 Excise Duty on Sales has been disclosed as reduction from the
turnover.
3 The Ministry of Corporate Affairs, Government of India vide its
General Circular No: 2/2011 dated 8th February, 2011 has granted
general exemption to the Holding Companies from attaching balance
sheets of subsidiary Companies with the balance sheet of the Holding
Company as per Section 212(8) of the Companies Act, 1956 subject to
fulfillment of certain conditions. Accordingly, the Board of Directors
of the Company has passed the resolution giving consent for not
attaching the balance sheets of the Subsidiary Companies with that of
the Company
4 The amounts in the Balance Sheet and Profit and Loss Account are
rounded off to the nearest thousand and indicated in lacs of rupees.
5 In the absence of any information from vendors regarding the status
of their registration under the "Micro Small and Medium Enterprise
Development Act 2006" the company is unable to comply with the
disclosures required to be made under the said Act.
6 During the year under review Company has converted 1416660 Unsecured
Convertible Debentures each of Rs. 100/- in to 7,87,033 Equity Shares of
Rs. 10/- each at a premium of Rs. 170/- per share on preferential basis as
per SEBI (ICDR) Regulations,2009 after obtaining necessary approvals
from Board of directors, Shareholders and Bombay Stock Exchange Ltd
under Clause 24(a) of the listing Agreement. As balance of Debenture
becomes Nil outstanding balance in Debenture Redemption Reserve is
transferred to General Reserve.
7 Proposed Dividend of Financial Year 2012-13 has been cancelled by the
Board of Directors of the Company at its meeting held on September 10,
2013 and the same cancellation of dividend is approved by members in
AGM held on 28.09.2013 and hence accordingly proposed dividend and tax
on the same has been removed from the financials of the company for
Financial Year 2012-13
8 During the year under review Bad debts has been write off of Rs. 738.98
Lacs which comprises outstanding loans of Monarc Engineers of Rs. 354.35
lacs for which company has filed legal suit and commodity trade
receivables amounting to Rs. 384.63 lacs pertaining to various
commodities contracts executed through brokers on the National Spot
Exchange Limited (NSEL). Over past few months, NSEL is unable to
fulfill its scheduled payment obligations as agreed by them and
therefore outstanding balance of Rs. 384.63 lacs has been write off from
the books of accounts during the year under review.
10 (a) No commission (Previous Year Rs. NIL) has been paid to the
Managing Director / Dy. Managing Director for the year under review in
view of resolution passed by the Board of directors and as agreed by
the Managing Director. Computation of Net Profit as per Section 349
read with Section 309(5) and section 198 of the Companies Act, 1956
therefore has not been furnished for the year under review.
ii) Total income of the company chargeable to tax is being determined
by the company in accordance with provisions of the Income Tax Act,
1961 after considering allowances, claims and relief available to the
Company. As the company is having accumulated losses and unabsorbed
depreciation as per books of account and also under the Income Tax Act,
1961, The company has been advised that under the circumstances it
shall have no liability under the Income Tax Act, 1961 and therefore no
provision has been made in books of the company.
12 Rs. 33.49 Lacs being net loss (Previous year Rs. 23.04 Lacs being net
gain) on account of exchange difference have been adjusted in the
respective heads of account in the profit & loss account.
13 Earning per share (EPS) - EPS is calculated by dividing the profit
attributable to the equity shareholders by the weighted average number
of equity shares outstanding during the year. Numbers used for
calculating basic and diluted earnings per equity shares are stated
below :
14 Accounting Standard (As-15) on Employee benefits
Provident Fund Contribution by the Company :
Contributions are made to Recognized Provident Fund/Government
Provident Fund, Family Pension Fund, ESIC and other Statutory Funds
which covers all regular employees. While both the employees and the
Company make predetermined contributions to the Provident Fund and
ESIC, contribution to the Family Pension Fund are made only by the
Company. The contributions are normally based on a certain proportion
of the employee"s salary. Amount recognized as expense in respect of
these defined contribution plans, aggregate to Rs. 7.65 Lacs (Previous
Year Rs. 7.79 Lacs).
Gratuity Benefits :
In respect of Gratuity, the Company has taken policy No. 40001067 from
Reliance Life insurance Co. Limited. and from Future Generali insurance
Co. Limited policy No: GI000041. The Defined Benefit Obligation as at
31.03.2014 works out to Rs. 21.56 lacs, Actuarial Valuation for
Compensated Absences is done as at the year end and the provision is
made for all regular employees on the basis Actuarial Valuer"s
certificate.
NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2014
15 Based on guiding principles given in Accounting Standard on "Segment
Reporting"- AS 17 as specified in the Companies (Accounting Standard)
Rules, 2006 (as amended), single financial report contains both
Standalone Financial Statement and Consolidated Financial Statement of
the Company. Hence, the required segment information has been appended
in the Consolidated Financial Statements (CFS).
16 Related party disclosures as required by Accounting Standard AS-18
issued by the Institute of Chartered Accountants of India are given
below Name of the related party and nature of relationship where
control exists :
Subsidiary company
1 Metrochem Capital Trust Limited
Associates Companies
Anil Dyechem Industries Pvt. Ltd Search Invatrade Pvt. Ltd.
Harvest Tradelink Pvt.Ltd. Sparkling Tradefin Pvt. Ltd.
Maiden Tradefin Pvt. Ltd. Spring Trading And Investment Pvt. Ltd.
Minerva Dyechem Industries P.Ltd. Progressive Invatrade Pvt.Ltd.
Bloom Investment & Trading Pvt.Ltd. DK Metro Procon Private Limited
Charm Trading & Investment Pvt.Ltd. Miraj Impex Pvt. Ltd.
Key Management Personnel
Shri Gautam M. Jain Shri Rahul Jain
Relatives of Key Management Personnel and their Enterprises
Mahendra Mithalal HUF Gautam Rajendra HUF Rajendra Mithalal HUF
Rajendra Anil HUF Mishal M. Shah Arun R. Jain
Suhani M. Shah Yash Anil Jain Mithalal Mukanchand HUF
Nitu G. Jain Ankit Rajendra Jain Rajendra Jain HUF
Mithalal Rajendra HUF Rajendra Mithalal HUF Rajendra Gautam Bros. HUF
Mithalal Mukanchand B. HUF Bhavna G. Jain Anil Mahendra HUF
Anil M Jain HUF Mithalal M. Shah Gautamkumar Mithalal HUF
Sumitradevi M. Shah Ritu A. Jain Mahendra M. Shah
Asha R. Jain Ritu (Ekta) G. Jain Santosh M. Shah
Krati R. Jain Metrochem Industries
Related Party Disclosures:
In accordance with Accounting Standard 18 ''Related Party Disclosures"
issued by the Institute of Chartered Accountants of India, the company
has compiled the required information in the table
below.
The transactions were carried out with the related parties in the
ordinary course of business There are no write offs/write back of any
amounts for any of the above parties.
17 Contingent Liabilities:
in Lacs
a)Particulars 2013-14 2012-13
Income Tax NIL 145.44
VAT/Sales Tax 53.09 53.09
Excise Duty (Interest thereon not
ascertainable at present) 196.24 196.24
Others NIL 1.80
b) During 1993, the Company had imported plant and machinery under
Export Promotion Capital Goods Scheme (''EPCG") at concessional rate of
custom duty against export obligation under the said Scheme. As the
Company could complete only partial Export obligation, it has received
a notice of demand from Directorate General of Foreign Trade (''DGFT").
The Company has paid the entire differential duty amount forRs. 94,68,900
on 10.05.2011 and has made necessary submissions before the
authorities. In view of this submission and pending decision of forum,
interest liability is not ascertainable.
c) Certain claims/show cause notices disputed have neither been
considered as contingent liabilities nor acknowledged as claims based
on the opinions obtained from legal counsels.
Mar 31, 2013
1 The Revised Schedule VI has become effective from 1st April 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year''s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification
/ disclosure.
2 EXCISE DUTY on Sales has been disclosed as reduction from the
turnover
3 The Ministry of Corporate Affairs, Government of India vide its
General Circular No: 2/2011 dated 8th February, 2011 has granted
general exemption to the Holding Companies from attaching balance
sheets of subsidiary Companies with the balance sheet of the Holding
Company as per Section 212(8) of the Companies Act, 1956 subject to
fulfillment of certain conditions. Accordingly, the Board of Directors
of the Company has passed the resolution giving consent for not
attaching the balance sheets of the Subsidiary Companies with that of
the Company
4 The amounts in the Balance Sheet and Profit and Loss Account are
rounded off to the nearest thousand and indicated in lacs of rupees.
5 There were no amount overdue and remaining outstanding to smalt scale
and/or ancillary industrial suppliers on account of principal and/or
interest as at the close of the year. This disclosure by the Company is
based on the information available with the Company regarding the
status of the suppliers. In absence of necessary information relating
to suppliers registered as Micro, Small and Medium enterprises under
the Micro, Small and Medium Enterprises (Development) Act 2006, the
company has not been able to identify such suppliers and the
information required under the said Act could not be compiled and
disclosed.
6 During the year under review Company has converted 5268000 Unsecured
Convertible Debentures each of Rs. 100/- in to 29,26,667 Equity Shares of
Rs. 10/-each at a premium of ^ 170/-per share on preferential basis as
per SEBI (ICDR) Regulations,2009 after obtaining necessary approvals
from Board of directors, Shareholders and Bombay Stock Exchange Ltd
under Clause 24(a) of the listing Agreement.
7 The management is of the view that shortfall of between the aggregate
book value of quoted investments and the aggregate market value thereof
held by the company as long term investment as on 31st March 2013 is
temporary and therefore no provision has been made.
8 Rs. 23.04 lacs being net gain (Previous yearRs. 13.48 Lacs being net
gain) on account of exchange difference have been adjusted in the
respective heads of account in the profit & loss account.
9 Accounting Standard (As-15) on Employee benefits
Provident Fund Contribution by the Company :
Contributions are made to Recognized Provident Fund/Government
Provident Fund, Family Pension Fund, ESIC and other Statutory Funds
which covers all regular employees. While both the employees and the
Company make predetermined contributions to the Provident Fund and
ESIC, contribution to the Family Pension Fund are made only by the
Company. The contributions are normally based on a certain proportion
of the employee''s salary. Amount recognized as expense in respect of
these defined contribution plans, aggregate to f 7.79 Lacs (Previous
Year Rs. 9 89 Lacs).
Gratuity Benefits :
In respect of Gratuity, the Company has taken policy No. 40001067 from
Reliance Life insurance Co. Limited, and from Future Generali insurance
Co. Limited. The Defined Benefit Obligation as at 31.03,2013 works out
to Rs. 20.86 lacs, Actuarial Valuation for Compensated Absences is done
as at the year end and the provision is made for all regular employees
on the basis Actuarial Valuer''s certificate.
14 Based on guiding principles given in Accounting Standard on "Segment
Reporting"- AS 17 as specified in the Companies (Accounting Standard)
Rules, 2006 (as amended), single financial report contains both
Standalone Financial Statement and Consolidated Financial Statement of
the Company. Hence, the required segment information has been appended
in the Consolidated Financial Statements (CFS).
10 Contingent Liabilities:
Rs.in Lacs
2012-13 2011-12
a) Particulars 145.44 145.44
Income Tax 53.09 53.09
VAT/SalesTax
Excise Duty (Interest thereon not
ascertainable at present) 196.24 196.24
Others
b) During 1993, the Company had imported plant and machinery under
Export Promotion Capital Goods Scheme f''EPCG'') at concessional rate of
custom duty against export obligation under the said Scheme. As the
Company could complete only partial Export obligation, it has received
a notice of demand from Directorate General of Foreign Trade (''DGFT'').
The Company has paid the entire differential duty amount forRs. 94,
68,900 on 10.05.2011 and has made necessary submissions before the
authorities. In view of this submission and pending decision of forum,
interest liability is not ascertainable.
c) The company has committed delays in payment of Provident fund dues
from 1997 to 2008. As the BIFR Scheme has abated, the company may be
liable to pay interest on account of delayed payments and / or penalty
which isunascertainable.
Mar 31, 2012
1. The Revised Schedule VI has become effective from 1st April 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's
classification/disclosure.
2. EXCISE DUTY
Excise Duty on Sales has been disclosed as reduction from the turnover.
3. The Ministry of Corporate Affairs, Government of India vide its
General Circular No: 2/2011 dated 8th February, 2011 has granted
general exemption to the Holding Companies from attaching balance
sheets of subsidiary Companies with the balance sheet of the Holding
Company as per Section 212(8) of the Companies Act, 1956 subject to
fulfilment of certain conditions. Accordingly, the Board of Directors
of the Company has passed the resolution giving consent for not
attaching the balance sheets of the Subsidiary Companies with that of
the Company
4. The amounts in the Balance Sheet and Profit and Loss Account are
rounded off to the nearest thousand and indicated in lacs of rupees.
5. There were no amount overdue and remaining outstanding to small scale
and/or ancillary industrial suppliers on account of principal and/or
interest as at the close of the year. This disclosure by the Company is
based on the information available with the Company regarding the
status of the suppliers. In absence of necessary information relating
to suppliers registered as Micro, Small and Medium enterprises under
the Micro, Small and Medium Enterprises (Development) Act 2006, the
company has not been able to identify such suppliers and the
information required under the said Act could not be compiled and
disclosed.
6. (a) No commission (Previous Year Rs. NIL) has been paid to the
Managing Director / Dy. Managing Director for the year under review in
view of resolution passed by the Board of directors and as agreed by
the Managing Director. Computation of Net Profit as per Section 349
read with Section 309(5) and section 198 of the Companies Act, 1956
therefore has not been furnished for the year under review.
ii) Total income of the company chargeable to tax is being determined
by the company in accordance with provisions of the Income Tax Act,
1961 after considering allowances, claims and relief available to the
Company. As the company is having accumulated Losses and unabsorbed
depreciation as per books of account and also under the Income Tax Act,
1961, The company has been advised that under the circumstances it
shall have no liability under the Income Tax Act, 1961 and therefore no
provision has been made in books of the company.
7. Rs. 13.48 lacs being net gain (Previous year Rs. 4.95 Lacs being net
loss) on account of exchange difference have been adjusted in the
respective heads of account in the profit & Loss account.
8. Earning per share (EPS) - EPS is calculated by dividing the profit
attributable to the equity shareholders by the weighted average number
of equity shares outstanding during the year. Numbers used for
calculating basic and diluted earnings per equity shares are stated
below :
9. Accounting Standard (As-15) on Employee benefits
Provident Fund Contribution by the Company :
Contributions are made to Recognised Provident Fund/Government
Provident Fund, Family Pension Fund, ESIC and other Statutory Funds
which covers all regular employees. While both the employees and the
Company make predetermined contributions to the Provident Fund and
ESIC, contribution to the Family Pension Fund are made only by the
Company. The contributions are normally based on a certain proportion
of the employee's salary. Amount recognized as expense in respect of
these defined contribution plans, aggregate to Rs. 9.89 Lacs (Previous
Year Rs. 11.57 Lacs).
State Gratuity Benefits Insurance Scheme (E.S.I.C.) & Contribution to
Labour Welfare Fund
Gratuity Benefits :
In respect of Gratuity, the Company has taken policy No. 40000192 from
Reliance Life insurance Co. Limited, and from Future General insurance
Co. Limited. The Defined Benefit Obligation as at 31.03.2012 works out
to Rs. 18.92 lacs, Acturial Valuation for Compensated Absences is done
as at the year end and the provision is made for all regular employees
on the basis Actuarial Valuer's certificate.
10. Based on guiding principles given in Accounting Standard on "Segment
Reporting"- AS 17 as specified in the Companies (Accounting Standard)
Rules, 2006 (as amended), single financial report contains both
Standalone Financial Statement and Consolidated Financial Statement of
the Company. Hence, the required segment information has been appended
in the Consolidated Financial Statements (CFS).
11. Related party disclosures as required by Accounting Standard AS-18
issued by the Institute of Chartered Accountants of India are given
below Name of the related party and nature of relationship where
control exists:
Subsidiary company
1. Metrochem Capital Trust Limited
Associates Companies
Anil Dyechem Industries Pvt. Ltd Search Invatrade Pvt. Ltd.
Harvest Trade Finvest Pvt.Ltd. Sparkling Tradefin Pvt. Ltd.
Maiden Tradefin Pvt. Ltd. Spring Trading And Investment
Pvt. Ltd.
Minerva Dyechem Industries P.Ltd. Ornet Infrastructure Pvt.Ltd.
Bloom Investment & Trading Pvt.Ltd. Progressive Invatrade Pvt.Ltd.
Charm Trading & Investment Pvt.Ltd.
Key Management Personnel
Shri Gautam M.Jain Shri Rahul Jain
Shri D.K.Singh
Relatives of Key Management Personnel and their Enterprises
Mahendra Mithalal HUF Mahendra Anil HUF Gautam Anil HUF
Rajendra Anil HUF Gautam Rajendra HUF Rajendra Mithalal
HUF
Suhani M.Shah Nishal M.Shah Arun R. Jain
Nitu G. Jain Yash Anil Jain Mithalal Mukanchand
HUF
Mithalal Rajendra HUF Ankit Rajendra Jain Rajendra Jain HUF
M.G.& Sons HUF Rajendra Mithalal HUF Rajendra Gautam
Bros. HUF
Mithalal Mukanchand
B. HUF Bhavna G.Jain Anil Mahendra HUF
Anil M Jain HUF Mithalal Gautamkumar Gautamkumar Mithalal
HUF HUF
Sumitradevi M. Shah MithalaL M. Shah Mahendra M, Shah
Asha R. Jain Ritu A. Jain Santosh M. Shah
Aarti P. Jain Ritu (Ekta) G. Jain Metrochem Industries
Krati R. Jain
Related Party Disclosures:
In accordance with Accounting Standard 18 'Related Party Disclosures'
issued by the Institute of Chartered Accountants of India, the company
has compiled the required information in the table below.
12. Contingent Liabilities:
Rs. in Lacs
a) Particulars 2011-2012 2010-11
Income Tax 145.44 145.44
VAT/Sales Tax 53.09 53.09
Excise Duty (Interest thereon not
ascertainable at present) 196.24 196.24
Others 1.80 1.80
b) During 1993, the Company had imported plant and machinery under
Export Promotion Capital Goods Scheme ('EPCG') at concessional rate of
custom duty against export obligation under the said Scheme. As the
Company could complete only partial Export obligation, it has received
a notice of demand from Directorate General of Foreign Trade ('DGFT').
The Company has paid the entire differential duty amount for Rs. 94,
68,900 on 10.05.2011 and has made necessary submissions before the
authorities. In view of this submission and pending decision of forum,
interest liability is not ascertainable.
c) The company has committed delays in payment of Provident fund dues
from 1997 to 2008. As the BIFR Scheme has abated, the company may be
liable to pay interest on account of delayed payments and/or penalty
which is unascertainable.
d) The company has committed delays in payment of Profession Tax dues
from time to time. The company may be liable to pay interest on account
of delayed payments and/or penalty which is unascertainable.
e) The company has committed various defaults with respect to TDS -
non-deduction, short eduction, non-payment, delayed payments and short
payments. The company may face liability on account of interest,
penalty etc which is presently not fully ascertainable.
Mar 31, 2010
1. Background of the Company
Global Boards Limited (the Company), a public limited company,
incorporated on November 12, 1992, was engaged in the manufacturing of
high quality paperboards. The Company was declared a sick company under
section 3(1)(O) of the Sick Industrial Companies (Special Provisions)
Act, 1985 on August 30, 2001. In April 2006, Industrial Development
Bank of India (ÃOperating Agency) filed a Rehabilitation Scheme with
Board for Industrial and Financial Reconstruction (ÃBIFR). This
Rehabilitation scheme was sanctioned by BIFR vide order dated December
04, 2006. However, as the Companys debt servicing obligations could
not be met with, ARCIL has served a notice under section 13 (2) of the
SARFAESI Act on the Company. Consequently, BIFR has abated the
reference vide order dated July 16, 2009 and ARCIL has taken over the
possession of the assets of the Company vide Possession notice dated
July 2, 2009. The Company had filed an appeal before AAIFR against BIFR
order dated July 16, 2009.
2. Going concern
The accumulated losses of the Company as at 31st March, 2010 being
Rs.1,492,674,828 the net worth of the Company has become negative as on
the said date.
Considering the external and internal environment, Board of Directors
in their meeting dated 28th October 2008 had decided to discontinue its
manufacturing operations. Therefore, there has not been any
manufacturing operation during the year.
Hence, under such circumstances, the fundamental accounting assumption
of going concern is not valid and applicable as was the position in the
previous year. Accordingly, the financial statements have been prepared
on liquidation basis and the assets are stated at Net Realizable Value
as per a Valuation Report of an Approved Valuer.
3. Contingent liabilities not provided for: Rupees
Particulars As at As at
March 31, 2010 March 31, 2009
Claims against the Company not
acknowledged as debts 55,892,696 95,525,591
The claims against the Company comprises of:
a) Rs. 19,623,494 (previous year Rs. 19,623,494) on account of various
show cause notices with respect to Excise and Service Tax issued by
Commissioner of Central Excise.
b) Bombay Port Trust (ÃBPT) Rs. 179,644 (previous year Rs. 179,644).
On account of loss on sale of consignment not taken delivery of by the
Company. The case is pending before City Civil Court, Mumbai. Further,
interest liability on account of delayed payment or penalty is
presently not ascertainable.
c) Directorate of Enforcement à Foreign Exchange Management Act, 1999
(FEMA) Penalty Rs. 3,300,000 (previous year 33,500,000). Directorate
of Enforcement has levied penalty for alleged violation of Exchange
Control rules for non-submission of documents against which the company
had filed an appeal before Appellate Tribunal for Foreign Exchange. The
Tribunal has quashed the impugned order and remanded the matter back to
for fresh adjudication to the Adjudication Officer and to allow the
company to file the evidence thereof.
d) During 1993, the Company had imported plant and machinery under
Export Promotion Capital Goods Scheme (ÃEPCG) at concessional rate of
custom duty against export obligation under the said Scheme. As the
Company could complete only partial Export obligation, it has received
a notice of demand from Directorate General of Foreign Trade (ÃDGFT)
confirming the levy of interest of Rs. 25,969,958 (previous year
Rs.25,969,958) up to March 10, 2004. Further, as the BIFR Scheme has
abated, the company may be liable to pay interest which is
unascertainable.
e) The Company has not provided for a demand on account of sales tax
assessment for 1996 - 1997 amounting to Rs. 5,704,000 (previous year
Rs. 5,704,000). Appeal against the order is pending with appropriate
authorities. Further, the company has been charged interest of Rs. 8.79
Lacs and there could be further interest payable which is
unascertainable.
f) The Company has not provided for a demand of Rs. 3,36,600 (previous
year 3,36,600) on account of Income Tax penalty for Assessment Year
2006-07. Appeal against the order is pending before CIT(A). Further,
Income Tax Assessment for AY 2007-08 was completed after making an
addition of Rs 13518.45 Lacs for which an appeal has already been filed
before CIT(A). If the matter is finally decided against the company,
the company may face penal consequences under Income Tax Act.
g) The company has committed delays in payment of Provident fund dues
from 1997 to 2008. As the BIFR Scheme has abated, the company may be
liable to pay interest on account of delayed payments and / or penalty
which is unascertainable.
h) The company has committed delays in payment of Profession Tax dues
from time to time. The company may be liable to pay interest on account
of delayed payments and / or penalty which is unascertainable.
i) The company has committed various defaults with respect to TDS Ã
non-deduction, short deduction, non-payment, delayed payments and short
payments. The company may face liability on account of interest,
penalty etc which is presently not fully ascertainable.
4. Dues to Micro, Small and Medium enterprises
The Company has not received any intimation from suppliers regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure requirements in this regard as per
Schedule VI of the Companies Act, 1956 could not be provided.
5. Items affecting the Loss for the year
a. The Company has not provided interest on Redeemable Non-convertible
debenture for the year amounting to Rs. 49,518,900 and redemption
premium on the Optionally Convertible debentures due on March 31, 2010
amounting to Rs. 108,155,456. Consequently, interest and redemption
premium expense and loss for the year is understated by that amount.
b. The Company has not complied with the following terms and
conditions of Debenture Trusteeship Agreement :
1. The company has not Redeemed Non-convertible debentures amounting
to Rs. 15,24,10,000 issued to ARCIL in two installments due on
31.03.2007 and 31.03.2008;
2. The company has not Redeemed Non-convertible debentures amounting
to Rs. 39,78,00,000 issued to India Debt Management in three annual
installments commencing from the closing date; and
3. The Company has not redeemed the optionally convertible Debentures
due on 31.03.2009 along with redemption premium at an Internal Rate of
Return of 9% per Annum.
Accordingly, the company shall be liable to pay returns stated in
clause (a) above as stipulated in Revival Scheme sanctioned by BIFR.
6. The Company has not appointed a full-time Company Secretary
pursuant to section 383-A of the Companies Act, 1956.
7. Previous years figures have been regrouped / re-classified
wherever necessary to conform to this years classification.
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