Home  »  Company  »  Modi Rubber  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Modi Rubber Ltd.

Mar 31, 2015

C. NOTES

1. (a) Post sanction of Rehabilitation Scheme under the provisions of SICA by BIFR on 21.04.2008, the Company had given full effect of the

scheme from cut off date in the books of accounts assuming that the relief and concessions as given to the company in the scheme would be accepted by all the concerned parties/creditors. (b) BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA/ BIFR upon turning net worth positive as at 31.03.2009, with the direction that the unimplemented portion of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be implemented by the concerned agencies and their implementation would be monitored by the company. Some of the authorities/parties have not accepted terms of settlement and relief & concessions as provided in SS08. The Company has fled a status report on the unimplemented portion of the Rehabilitation Scheme as at March 31st, 2015 with BIFR on 19/05/2015.

2. Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Hon'ble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Official Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Official Liquidator for carrying out industrial activities in terms of BIFR Order dated 21.04.2008. After possession, Company shall carry out repair work to make MTF functional at the earliest.

3. (a) Provision for Income Tax is computed in accordance with the provisions of the Income Tax Act, 1961.

(b) Provision for Wealth Tax is computed in accordance with the provision of the Wealth Tax Act, 1957.

(c) Deferred Tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

4. Expenses and claims relating to previous year adjusted in respective accounts not separately shown are Rs. 5.09 lacs [previous year Rs. 19.30 lacs].

5. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with Interest paid/payable under this Act, has not been given.

6. The Company's operations comprise only one segment i.e. Automobile Tyres, Tubes & Flaps and therefore there is no other business / geographical segments to be reported as required under Accounting Standard (AS-17) of the The Institute of Chartered Accountants of India.

Provident Fund:

The Employees of the company receive defined contribution for Provident Fund benefit. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the company make monthly contributions at specified percentage of the employee's salary to the concerned Provident Fund Authorities. The company has no liability to Fund the shortfall in the interest over the statutory rate declared by the Government.

The Company has recognized the following amounts in the Statement of Profit and Loss for the year ended 31st March, 2015

7. In accordance with the provisions of the Schedule II of the Companies Act, 2013, in case of assets acquired prior to 1st April, 2014 the carrying value of assets (net of residual value) is depreciated over the remaining useful life as determined effective 1st April, 2014.

8. Previous year figures have been regrouped/rearranged wherever necessary.

9. Note 1 to 24 form an integral part of the Balance Sheet and Statement of Profit and Loss and have been duly authenticated.


Mar 31, 2014

1. SHARE CAPITAL

Terms/Rights attached to Shares

Equity Shares:

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

2.Redeemable Cumulative Preference Shares:

Preference Shares shall rank in priority to the Equity Shares including arrears, if any. In the event of the winding up of the Company, these shares shall not be entitled to any further participation in the profits or surplus assets of the company. Preference Shares are entitled to one vote per share at the meetings of the company only in respect of resolutions directly affecting their rights.

3. TRADE PAYABLES

* Includes:-

1. Rs. 136.62 lacs (Previous year Rs. 136.62 lacs) i.e 20% of Rs. 683.10 lacs as per settlement terms defined in BIFR SS08 towards lease rent payable to M/s Modi Exports Processors Ltd. (MEPL) for the period January, 2002 to September, 2007. Further no liability towards lease rent has been provided after September, 2007 since the premises are sealed by the Official Liquidator of MEPL. Legal recourse for re possession of plant is being actively followed. The matter is pending before Allahabad High Court.

2. Rs. 310.71 lacs (Previous year Rs. 310.71 lacs) being 50% of the principal outstanding of Rs. 621.42 lacs due to M/s Continental Carbons Ltd., payable as per settlement term stated in BIFR SS-08 which the party is not accepting and the matter is pending before the Hon''ble Court.

Other Notes

As At As At 31/03/2014 31/03/2013 Rs. Lacs Rs. Lacs

1. Guarantees/Bonds (Unconfirmed) 2393.38 2393.38

2. Excise / Customs / DGFT Matters 2372.00 1853.97

3. Others 3397.75 2776.06

C. NOTES

1. (a) Post sanction of Rehabilitation Scheme under the provisions of SICA by BIFR on 21.04.2008, the Company had given full effect of the scheme from cut off date in the books of accounts assuming that the relief and concessions as given to the company in the scheme would be accepted by all the concerned parties/creditors.

(b) BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA / BIFR upon turning net worth positive as at 31.03.2009, with the direction that the unimplemented portion of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be implemented by the concerned agencies and their implementation would be monitored by the company. Some of the authorities/ parties have not accepted terms of settlement and relief & concessions as provided in SS08. The Company has filed a status report on the unimplemented portion of the Rehabilitation Scheme as at March 31st, 2014 with BIFR on 26/05/2014.

2. Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Hon''ble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Official Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Official Liquidator for carrying out industrial activities in terms of BIFR Order dated 21.04.2008. After possession, Company shall carry out repair work to make MTF functional at the earliest.

3. (a) Provision for Income Tax is computed in accordance with the provisions of the Income Tax Act, 1961.

(b) Provision for Wealth Tax is computed in accordance with the provision of the Wealth Tax Act, 1957.

(c) Deferred Tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

4. Expenses and claims relating to previous year adjusted in respective accounts not separately shown are Rs. 19.30 lacs [previous year Rs. 17.32 lacs].

5. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with Interest paid/payable under this Act, has not been given.

6. The Company''s operations comprise only one segment i.e. Automobile Tyres, Tubes & Flaps and therefore there is no other business / geographical segments to be reported as required under Accounting Standard (AS-17) of the The Institute of Chartered Accountants of India.

C) Key Management Personnel:

1 Mr. Alok Kumar Modi-Managing Director (No remuneration to Key Management Personnel during the year)

D) Relatives of Key Management Personnel

1 Mr. Vinay Kumar Modi (Father of Mr. Alok Kumar Modi) 2 Mrs. Chander Bala Modi (Mother of Mr. Alok Kumar Modi) 3 Mrs. Archana Singhania (Sister of Mr. Alok Kumar Modi) 4 Mrs. Ritika Modi (Wife of Mr. Alok Kumar Modi) 5 Ms. Piya Modi (Daughter of Mr. Alok Kumar Modi)

E) Enterprises in which relatives of Key Management Personnel has significant influence

1 Leaf Investment Pvt. Ltd. 2 Mod Fashions and Securities Pvt. Ltd. 3 Uniglobe Mod Travels Pvt. Ltd. 4 Uniglobe Travel (South Asia) Pvt. Ltd. 5 Vinura Beverages Pvt. Ltd.

7. Due to non availability of technical evaluation of the plant at Modinagar, the value of intangible assets and value of impairment loss on assets as per Accounting Standard 26 and 28 respectively, issued by the Institute of Chartered Accountants of India, has not been ascertained.

8. The company adopted Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India.

Contribution for Employees Benefit :

Defined Contribution Plans

a. Provident Fund

b. State Defined Contribution Plans

*Employees Pension Scheme 1995

Provident Fund:

The Employees of the company receive defined contribution for Provident Fund benefit. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the company make monthly contributions at specified percentage of the employee''s salary to the Provident Fund Trust and / or the concerned Provident Fund Authorities. The company has no liability to Fund the shortfall in the interest over the statutory rate declared by the Government.

Defined benefit plans Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme of Gratuity Fund Trust, administered and managed by the Independent Board of Trustees. The sections of the Company first makes the payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employee''s salary and the tenure of employment and then gets the reimbursement from it. Vesting occurs upon completion of five years of service. Liabilities with regards to the Gratuity Plan are determined by actuarial valuation.

9. a) Previous year/period figures have been regrouped/rearranged wherever necessary.

b) Current year is of 12 months and previous period is of 18 months. Hence, current year figures are not comparable with those of previous period figures.

10. Note 1 to 24 form an integral part of the Balance Sheet and Statement of Profit and Loss and have been duly authenticated.


Mar 31, 2013

As At As At 31.03.2013 30.09.2011 Rs. Lacs Rs. Lacs

1. Guarantees (Unconfrmed) 2393.38 470.38

2. Excise /Customs /DGFT Matters 1853.97 2815.19

3. Others 2776.06 356.17

1. Hon''ble BIFR vide its order dated 21.04.2008 has sanctioned a Rehabilitation Scheme (SS08) for revival of the Company, from the cut off date i.e March 31, 2008, under the provisions of Sick Industrial Companies (Special Provisions) Act 1985 (SICA) for implementation from 1st April 2008 to 31st March 2013 . On 31st March 2008, Company had given full fnancial implications (including writing off of excess liabilities) in the Books of accounts of company with effect from cut off date in terms of the SS08 for giving true and fair view of fnancial health of the company assuming/ considering relief & concessions as directed by the Learned BIFR would be given / accepted / considered by all the concerned parties as per rehabilitation scheme sanctioned by the Learned BIFR.

BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA/ BIFR upon turning networth positive as at 31.03.2009, with the direction that the unimplemented portion of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be implemented by the concerned agencies and their implementation would be monitored by the company. Some of the authorities/ parties have not accepted terms of settlement and relief & concessions as provided in SS08. The Company has fled a status report on the unimplemented portion of the Rehabilitation Scheme as at March 31st, 2013 with BIFR on 01/04/2013.

2. (a) Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Hon''ble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Offcial Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Offcial Liquidator for carrying out industrial activities in terms of BIFR Order dated 21.04.2008. After possession, Company shall carry out repair work to make MTF functional at the earliest. (b) Hon''ble Allahabad High Court had ordered for the physical verifcation of the assets lying at Modi Tyre Factory (MTF) Modinagar. Accordingly, physical verifcation was conducted in presence of offcial liquidator on 24/08/2011 and 25/08/2011. Assets were valued by the surveyor. On the basis of such verifcation, necessary adjustment in the inventories lying at MTF plant has been carried out in the books of accounts except the value of scrap which will be accounted for on realization.

3. (a) Provision for Income Tax is computed in accordance with the provisions of the Income Tax Act, 1961.

(b) Provision for Wealth Tax is computed in accordance with the provision of the Wealth Tax Act, 1957.

(c) Deferred Tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

4. Expenses and claims relating to previous year adjusted in respective accounts not separately shown are Rs. 17.32 l acs [previous year Rs.12.00 lacs].

5. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with Interest paid/payable under this Act, has not been given.

6. The balances of the suppliers, customers & advances etc. are subject to confrmation / reconciliation.

7. Due to non availability of technical evaluation of the plant at Modinagar, the value of intangible assets and value of impairment loss on assets as per Accounting Standard 26 and 28 respectively, issued by the Institute of Chartered Accountants of India, has not been ascertained.

8. The company adopted Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India. Contribution for Employees Beneft :

Defned Contribution Plans

a. Provident Fund

b. State Defned Contribution Plans - Employees Pension Scheme 1995

Provident Fund:

The Employees of the company receive defned contribution for Provident Fund beneft. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the company make monthly

9. During the year ended 31/03/2013, the revised Schedule VI notifed under the Companies Act, 1956 has become applicable to the company for preparation and presentation of its fnancial statements. The adoption of revised Schedule VI did not have any impact on recognition and measurement principles followed for preparation of fnancial statements. However, it has signifcantly impacted the presentation and disclosures made in the fnancial statements. The company has also reclassifed/regrouped the previous year fgures in accordance with the requirements applicable in the current year.

10. Note 1 to 25 form an integral part of the Balance Sheet and Statement of Proft and Loss and have been duly authenticated.


Sep 30, 2011

A. CONTINGENT LIABILITIES

As at As at 30.09.2011 31.03.2010 Rs. Lacs Rs. Lacs

1. Guarantees (Unconfirmed) 470.38 11555.46

2. Sales Tax Matters NIL 2221.30

3. Excise/Customs/DGFT Matters 2815.19 1657.90

4. Others 356.17 337.06

C. NOTES

1. Hon'ble BIFR vide its order dated 21.04.2008 has sanctioned a Rehabilitation Scheme (SS08) for revival of the Company, from the cut off date i.e March 31, 2008, under the provisions of Sick Industrial Companies (Special Provisions) Act 1985 (SICA) for implementation from 1af April 2008 to 31" March 2013 . On 31st March 2008, Company had given full financial implications and excess liabilities were written off from the Books of accounts of company with effect from cut off date in terms of the SS08 for giving true and fair view of financial health of the company assuming/ considering relief & concessions as directed by the Learned BIFR would be given / accepted / considered by all the concerned parties as per rehabilitation scheme sanctioned by the Learned BIFR.

BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA/ BIFR upon turning networth positive as at 31.03.2009, with the direction that the unimplemented portion of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be Implemented by the concerned agencies and their implementation would be monitored by the company. Some of the authorities/ parties have not accepted terms of settlement and relief & concessions as provided in SS08.

2. (a) Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Hon'ble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Official Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Official Liquidator for carrying out industrial activities in terms of BIFR Order dated 21,04.2008.After possession, MRL shall carry out repair work to make MTF functional at the earliest. In view of the above, operations at MTF plant, however, continue to remain suspended, (b) Hon'ble Allahabad High Court had ordered for the physical verification of the assets lying at Modi Tyre Factory (MTF) Modinagar. Accordingly, physical verification was conducted in presence of official liquidator on 24/08/2011 and 25/08/2011. Assets were valued by the surveyor. On the basis of such verification, necessary adjustment in the inventories lying at MTF plant has been carried out in the books of account except the value of scrap which will be accounted for on realization.'

3. Amount due from Modi Spinning & Weaving Mills Company Ltd. (MSWML) (Rs. 460.31 lacs Net) includes Rs. 349.61 lacs appropriated by Punjab National Bank in the year 1992-93 towards the outstanding loan and interest payable by MSWML. The company has filed a suit against MSWML for recovery of amount which is pending before the Delhi High Court for adjudication. .

4. (a) Provision for Income Tax is computed in accordance with the provisions of the Income Tax Act, 1961.

(b) Provision for Wealth Tax is computed in accordance with the provision of the Wealth Tax Act, 1957.

(c) Deferred Tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

5. (a) Sundry creditors include Rs. 136.62 lacs (20% of Rs. 683.10 lacs as per settlement terms defined in BIFR SS08) towards lease rent payable to M/s Modi Exports Processors Ltd.(MEPL) for the period January, 2002 to September, 2007. Further no liability towards lease rent has been provided after September, 2007 since the premises are sealed by the Official Liquidator of MEPL.

(b) Sundry creditors also include Rs. 136.73 lacs payable to M/s Madura Coats Limited, Rs. 310.71 lacs to M/s Continental Carbons Limited totaling to Rs. 447.44 lacs (being 50% of their principal outstanding of Rs. 894.88 lacs) as per settlement term stated in BIFR SS-08 which they are not accepting and their appeals are pending in courts. However Allahabad High Court vide its order dated 16.11.2011 directed the Company to pay Rs. 150 lacs to M/s Madura Coats Limited or a cheque of the said amount may be produced before the Hon'ble court. Next hearing is fixed on 15.12.2011.

6. Expenses and claims relating to previous year adjusted in respective accounts not separately shown are Rs. 12.00 lacs [previous year Rs. 14.09 lacs].

7. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the period end together with interest paid / payable under this Act, has not been given.

8. The balances of the suppliers, customers & advances etc. are subject to confirmation / reconciliation.

9. During the year, the company has implemented Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. The company recognized the cumulative net deferred tax asset of Rs. 1570.86 Lacs upto the year ended 31st March' 2010 and a deferred tax liability of Rs. 101.97 Lacs for the period ended 30th September' 2011 as per the provisions of such Accounting Standard.

10. The Company's operations comprise only one segment i.e. Automobile Tyres, Tubes & Flaps and therefore there is no other business / geographical segments to be reported as required under Accounting Standard (AS-17) of the The Institute of Chartered Accountants of India.

11. Due to non availability of technical evaluation of the plant at Modinagar, the value of intangible assets and value of impairment loss on assets as per Accounting Standard 26 and 28 respectively, issued by the Institute of Chartered Accountants of India, has not been ascertained.

12. The company adopted Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India.

Contribution for Employees Benefit:

Defined Contribution Plans

a. Provident Fund

b. State Defined Contribution Plans

- Employees Pension Scheme 1995 Provident Fund:

The Employees of the company receive defined contribution for Provident Fund benefit. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the company make monthly contributions at specified percentage of the employee's salary to the Provident Fund Trust and / or the concerned Provident Fund Authorities. The company has no liability to Fund the shortfall in the interest over the statutory rate declared by the Government.

The Company has recognized the following amounts in the Profit and Loss for the period ended 30th September, 2011.

Defined benefit plans Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme of Gratuity Fund Trust, administered and managed by the Independent Board of Trustees. The sections of the Company first makes the payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employee's salary and the tenure of employment and then gets the reimbursement from it. Vesting occurs upon completion of five years of service. Liabilities with regards to the Gratuity Plan are determined by actuarial valuation.

13. a) Previous year figures have been regrouped/ rearranged wherever necessary.

b) The Current financial period is for 18 months whereas the previous year is for 12 months. The previous year figures are, therefore not comparable with those of the current financial period.

14. Schedules 1 to 13 form an integral part of the Balance Sheet and Profit & Loss Account and have been duly authenticated.


Mar 31, 2010

A. CONTINGENT LIABILITIES As at As at

31.03.2010 31.03.2009

Rs. Lacs. Rs. Lacs.

1. Guarantees (Unconfirmed) 11555.46 813.61

2. Sales Tax Matters 2221.30 3205.26

3. Excise / Customs Matters 1657.90 1631.92

4. Others 337.06 NIL

B. NOTES

1. Honble BIFR vide its order dated 21.04.2008 has sanctioned a Rehabilitation Scheme (SS08) for revival of the Company, from the cut off date i.e March 31,2008, under the provisions of Sick Industrial Companies (Special Provisions) Act 1985 (SICA) for implementation from 1sl April 2008 to 31s1 March 2013 . On 31s1 March 2008, Company had given full financial implications and excess liabilities were written off from the Books of accounts of company with effect from cut off date in terms of the SS08 for giving true and fair view of financial health of the company assuming/ considering relief & concessions as directed by the Learned BIFR would be given / accepted/ considered by all the concerned parties as per rehabilitation scheme sanctioned by the Learned BIFR.

BIFR vide its order dated 23.02.2010 discharged the company from the purview of SICA/ BIFR upon turning networth positive as at 31.03.2009, with the direction that the unimplemented provisions of rehabilitation scheme (SS08) for the unexpired period of the Scheme would be Implemented by the concerned agencies and their implementation would be monitored by the company. Appeals against the said discharge order of BIFR has been filed and are pending in the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) for adjudication. Whereas, in fact some of the authorities / parties have not accepted terms of settlement and relief & concessions as provided in SS08.

2. Land & Building at Modi Tyre Factory (MTF), Modinagar is on perpetual lease taken from Modi Export Processors Ltd. (MEPL) which has been liquidated by the order of Honble Allahabad High Court. Pursuant to Allahabad High Court Order possession of the MTF is with the Official Liquidator of MEPL. Company has taken appropriate legal recourse for getting possession back of MTF from Official Liquidator for carrying out industrial activities in terms of BIFR Order dated 21.04.2008. After possession, MRL shall carryout repair work to make MTF functional at the earliest. In view of the above, operation at MTF plant, however, continue to remain suspended.

3. Amount due from Modi Spinning & Weaving Mills Company Ltd. (MSWML) (Rs. 460.31 lacs Net) includes Rs. 349.61 lacs appropriated by Punjab National Bank in the year 1992-93 towards the outstanding loan and interest payable by MSWML. The company has filed a suit against MSWML for recovery of amount which is pending before the Delhi High Court for adjudication.

4. (a) No provision for taxation for the year ended 31s March 2010 is required to be made since there is no taxable income due to unabsorbed depreciation and brought forward losses.

(b) Provision for Wealth Tax is computed in accordance with the provision of the Wealth Tax Act, 1957.

(c) In terms of Accounting Standard (AS-22) on accounting for Taxation of Income issued by the Institute of Chartered Accountants of India, the Company has not recognised the Deferred Tax Assets/Liability due to uncertainty of future profitability.

5. (a) Sundry creditors include Rs. 136.62 lacs (20% of Rs. 683.10 lacs as per settlement terms defined in BIFR SS08) towards lease rent payable to M/s Modi Exports Processors Ltd.(MEPL) for the period January, 2002 to September, 2007. Further no liability towards lease rent has been provided after September, 2007 since the premises are sealed by the Official Liquidator of MEPL.

(b) Sundry creditors also include Rs. 82.04 lacs payable to M/s Madura Coats Limited, Rs. 186.42 lacs to M/s Continental Carbons Limited and Rs. 23.91 lacs to M/s Oriental Carbon and Chemicals Limited totaling to Rs. 292.37 lacs (being 30% of Rs. 974.58 lacs) as per settlement term stated in BIFR SS-08.

6. Expenses and claims relating to previous year adjusted in respective accounts not separately shown are Rs. 14.09 lacs [previous year Rs. 1.36 lacs].

7. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act, has not been given.

8. The Companys operations comprise only one segment i.e. Automobile Tyres, Tubes & Flaps and therefore there is no other business/ geographical segments to be reported as required under Accounting Standard (AS-17) of the The Institute of Chartered Accountants of India.

9. Related Parties Disclosures in accordance with Accounting Standard (AS - 18) of The Institute of Chartered Accountants of India.

B) Key Management Personnel:

Mr. Vinay Kumar Modi- Chairman & Managing Director

Mr. Alok Kumar Modi-Director

(No remuneration to Key Management Personnel during the year)

10. Due to suspension of manufacturing operations, the value of intangible assets and value of impairment loss on assets as per Accounting Standard 26 and 28 respectively, issued by the Institute of Chartered Accountants of India, has not been ascertained.

11. The company adopted Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India. Contribution for Employees Benefit:

Defined Contribution Plans

a. Provident Fund

b. State Defined Contribution Plans

- Employees Pension Scheme 1995

Provident Fund:

The Employees of the company receive defined contribution for Provident Fund benefit. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the company make monthly contributions at specified percentage of the employees salary to the Provident Fund Trust and / or the concerned Provident Fund Authorities. The company has no liability to Fund the shortfall in the interest over the statutory rate declared by the Government.

Defined benefit plans

Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme of Gratuity Fund Trust, administered and managed by the Independent Board of Trustees. The sections of the Company first makes the payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employees salary and the tenure of employment and then gets the reimbursement from it. Vesting occurs upon completion of five years of service. Liabilities with regards to the Gratuity Plan are determined by actuarial valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market The above information is certified by the actuary. The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Companys policy for plan assets management

Notes :

i) Licenced capacity not applicable - since delicenced.

ii) Figures in brackets are in respect of previous year.

* As certified by the management.

** Balancing figure/stock adjustment.

*** Net of purchase return.

# Including conversion from outside.

Generic Names of Principal Products/Services of Company

(As per monetary terms)

Item Code No. (ITC Code) Product Description

40112000 Automobile Tyres

40131002 Automobile Tubes

40129004 Automobile Flaps

12. Previous year figures have been regrouped/rearranged wherever necessary.

13. Schedules 1 to 13 form an integral part of the Balance Sheet and Profit & Loss Account and have been duly authenticated.









 
Subscribe now to get personal finance updates in your inbox!