Home  »  Company  »  Murli Industries Lt  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Murli Industries Ltd.

Mar 31, 2014

1. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Contingent Liability for pending litigation(s) are not accounted for in the books of account.

Claims not acknowledged as debts As on 31.03.14 As on 30.06.13

Customs & Excise & Other Disputed Liabilities 76.46 Crores 76.46 Crores

2. PAYMENTS DUE TO MSME UNITS: In the absence of comprehensive details of MICRO, SMALL & MEDIUM ENTERPRISES industrial undertaking, and non-intimation by the suppliers of their being MSME industrial undertaking, the amount due to such suppliers as on 31.03.2014 could not be determined.

3. ACCRUAL SYSTEM OF ACCOUNTING : The company has not accounted for Employee Benefits as per Accounting Standard - 15.

4. FOREIGN EXCHANGE TRANSACTION : The Company has accounted Foreign Exchange transactions on actual payment basis to the respective account instead of showing separately in Exchange Fluctuation Account which is a diversion from method specified in Accounting Standard -11.

5. EXCISE / CUSTOMS : The Company has maintained excise records in manual as well as computerized formats. Generally, the manual records of units have been audited and accepted by the Excise department. However, the amounts reflected in the records maintained on ERP, which are incorporated in the balance sheet, are pending reconciliation with manual records. The impact of the same on the profitability of the company remains unquantifiable.

6. NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGE IN ACCOUNTING POLICIES :

The Company is not complying with the disclosure requirements of AS-5, there are prior period expenses accounted for during the current year amounting to Rs. 23.78 Crores.

7. CONFIRMATIONS: The balance shown in Sundry Debtors, Sundry Creditors, Advances, stock with depots, deposits and bank balances are subject to confirmation from respective parties.

8. Value of Imports on C.I.F. Basis (Duplex, SBS,& Writing Printing)Raw Material: Rs. 3.29 Crores ($0.025 Crores)[P.Y. Rs. 15.53 Crores] ($0.0293 Crores) Imported Capital Goods: Rs. 0.00Crores ($ 0.00 Crores) [P.Y. Rs. 0.00 Crores ($0.00 Crores)

9. Earnings in Foreign Exchange: Export Value of Goods on F.O.B. Basis is Rs. 0.00 Crores ($ 0.000 Crores), P.Y. Rs. 0.42 Crores ($0.008 Crores).

10. EXPORT TURNOVER: Total Turnover includes Export Turnover of Rs. 6.71 Crores (P.Y.2.6 Crores).

11. UNDER PROVISION MADE: The company has not provided for the following:

a. Electricity Amount of Rs. 3.31 Crores.

b. Bank Guarantee encashed by WCL on account of cancellation of Supply Agreement Rs. 4.08 Crores.

12. DEFFERED TAX ASSET: The Company has not recognized deferred tax asset during the period, in view of continuous losses. The total deferred tax asset upto last balance sheet date amounts to Rs. 226.95 Crore.

13. The Pulp Unit is not operational from last more than three years. The management has not ascertained impairment loss if any on account of closure of unit from last several years.

14. INCOME TAX: The Company does not have taxable income as per income tax act and hence company has not made any provision for payment of income tax.

15. WEALTH TAX: The Company has not made any provision for payment of wealth tax.

16. The Company has incurred substantial losses and its net worth has been eroded. The financial statements have been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.

17. ''Royalty on limestone'' amounting to Rs. 9.33 Crores remains to be paid to the government which may restrain company from any excavation of limestone, In this respect the company contends that the said amount is to be deposited and will be refunded under package scheme of incentive 2007.

18. The company has filed a reference to Board for Industrial & Financial Reconstruction (BIFR) under section 15 of Sick Industrial Companies Act, 1985(SICA) on 26th November, 2013.

19. The Sales Tax Department attached the movable and immovable assets (along with vehicles & land) of the company on 06.03.2014 to recover an amount of Rs. 63.08 Crores from the company. In this respect the company contends that the said amount is to be deposited and will be refunded under package scheme of incentive 2007.

20. ACCRUAL SYSTEM OF ACCOUNTING: The company is generally following the accrual system in its accounting, except Employee Benefits, which are accounted on cash basis.

21. SECURITY DEPOSIT TO WCL: The security deposit of Rs. 4.08 Crores, which the company had deposited with M/s. Western Coal Limited is under litigation.

22. ACCOUNTING FOR GOVERNMENT GRANTS:

a) The company is entitled for incentives in respect of Cement & Paper plants wherein the recognition provision have not been completely complied with.

b) As per PSI 2007, the company should have recognized the amount receivable to it only after depositing its statutory dues to the government and should recognize the income as "Other Income" as per accounting Standard 12, but the same is included in turnover. Though the co


Jun 30, 2013

1. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Contingent Liability for pending litigation(s) are not accounted for in the books of account. Claims not acknowledged as debts Current Period Previous Year Customs & Excise & Other Disputed Liabilities 76.46 Crores 76.46 Crores

2. PAYMENTS DUE TO MSME UNITS: In the absence of comprehensive details of MICRO, SMALL & MEDIUM ENTERPRISES industrial undertaking, and non-intimation by the suppliers of their being MSME industrial undertaking, the amount due to such suppliers as on 30.06.2013 could not be determined.

3. ACCRUAL SYSTEM OF ACCOUNTING : The company is generally following the accrual system in its accounting, except Royalty on Limestone, Employee Benefits, which are accounted on cash basis.

4. FOREIGN EXCHANGE TRANSACTION : The Company has accounted Foreign Exchange transactions on actual payment basis to the respective account instead of showing separately in Exchange Fluctuation Account which is a diversion from method specified in Accounting Standard -11.

5. EXCISE / CUSTOMS : The Company has maintained excise records in manual as well as computerized formats. Generally, the manual records of units have been audited and accepted by the Excise department. However, the amounts reflected in the records maintained on ERP, which are incorporated in the balance sheet, are pending reconciliation with manual records. The impact of the same on the profitability of the company remains unquantifiable.

6. SEGMENT INFORMATION: The Company is operating in Eight Business Segments viz. Solvent Extraction, Duplex Paper Board, News Print, Captive Power Generation, Writing & Printing, SBS Board, Pulp Mill & Cement Unit. The segment wise disclosure is as under:

7. NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGE IN ACCOUNTING POLICIES :

The Company is not complying with the disclosure requirements of AS-5, there are prior period expenses accounted for during the current year amounting to Rs. 7,16,40,103/-

8. CONFIRMATIONS: The balance shown in Sundry Debtors, Sundry Creditors, Advances, stock with depots and bank balances are subject to confirmation from respective parties.

9. Value of Imports on C.I.F. Basis (Duplex, SBS,& Writing Printing)Raw Material: Rs.15.53 Crores ($0.293 Crores)[P.Y.Rs.47.63 Crores] ($1.02 Crores)Imported Capital Goods: Rs.0.00Crores ($ 0.00 Crores) [P.Y. Rs. 0.11 Crores ($0.0024 Crores)

10. Earnings in Foreign Exchange: Export Value of Goods on F.O.B. Basis is Rs. 0.42 Crores ($ 0.008 Crores), P. Y. Rs. 2.02 Crores ($0.04 Crores).

11. EXPORT TURNOVER: Total Turnover includes Export Turnover of Rs.2.60 Crores (P.Y. Rs. 60.2 Crores).

12. CAPITALISATION OF EXPENSES: The Company has capitalized expenses of Rs.3.16 crores incurred in PULP Mill Unit as the Unit was not in operation in the whole period. The PULP Mill Unit was not run as manufacturing pulp from Waste paper was not cost effective.

13. DEFFERED TAX ASSET: The Company has recognized deferred tax asset during the period. The total deferred tax asset as on balance sheet date amounts to Rs.226.95 crore. The deffered tax asset on unabsorbed depreciation and business losses has been recognized on the basis of business plan which takes into account future income. The management is of the opinion that there is virtual certainty that sufficient future taxable income will be available against which the deffered tax asset can be realized.

14. The Pulp Unit is not operational from last more than three years. The management has not ascertained impairment loss if any on account of closure of unit from last several years.

15. INCOME TAX: The Company does not have taxable income as per income tax act and hence company has not made any provision for payment of income tax.

16. WEALTH TAX: The Company has not made any provision for payment of wealth tax.

17. The Company has incurred substantial losses and its net worth has been eroded. The financial statements have been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.


Mar 31, 2012

1.PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Contingent Liability for pending litigation(s) are not accounted for in the books of account.

Claims not acknowledged as debts Current Year Previous Year (Rs. Crores) (Rs. Crores)

Customs & Excise & Other Disputed Liabilities 35.10 7.02

2. PAYMENTS DUE TO MSME UNITS: In the absence of comprehensive details of MICRO, SMALL & MEDIUM ENTERPRISES industrial undertaking, and non-intimation by the suppliers of their being MSME industrial undertaking, the amount due to such suppliers as on 31.03.2012 could not be determined.

3. ACCRUAL SYSTEM OF ACCOUNTING : The company is generally following the accrual system in its accounting, except Royalty on Limestone, Employee Benefits, which are accounted for cash basis, under PSI 2007, the royalty due & receivable is netted off. The clause (b) of sub section (3) of Section 209 of the Companies Act, 1956 mandates a company to maintain its books of accounts as per accrual system of accounting but the company has not complied the same regarding employee benefits the amount pertaining to the employee benefits could not be quantified because the data was not available with the company.

4. FOREIGN EXCHANGE TRANSACTION : The Company has provided Foreign Exchange fluctuation on actual payment basis to the respective account instead of showing separately in Exchange Fluctuation Account as specified in Accounting Standard -11.

5. EXCISE / CUSTOMS : The Company has maintained excise records in manual as well as computerized formats. Generally, the manual records of units have been audited and accepted by the Excise department. However, the amounts reflected in the records maintained on ERP, which are incorporated in the balance sheet, are pending reconciliation with manual records. The impact of the same on the profitability of the company remains unquantifiable.

6. PAYMENTS TO AUDITORS:

For Audit Fees : Rs. 7,00,000

For Certification Charges : Rs. 50,000

For Taxation matters : Rs. 1,00,000

7. RELATED PARTY DISCLOSURE : Following disclosure has been made as per the requirement of accounting standards 18 issued by I.C.A.I.

(A) Key Management Personnel

Shri Shobhagmal Maloo Chairman

Shri Nandlal Maloo Managing Director

Shri Bajranglal Maloo Director

Shri Lalchand Maloo Director

Shri Sunil Kumar Maloo Director

(B) Enterprises Owned / Managed by Key Managerial Personnel

Nandlal Enterprises Limited Raghav Finvest Private Limited

Murli Tyres Limited Nihal Gilts Private Limited

Murli Infrastructure Limited Vishnu Gilts Private Limited

Murli Electrode Private Limited Mohan Venture Capital Pvt. Ltd.

Radha Software Limited Murli Agro Products Limited

(C) Subsidiaries

Murli Cement (Karnataka) Limited Murli Cement (Maharashtra) Limited

Murli Cement (Rajasthan) Limited Murli Cement Limited

8. NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGE IN ACCOUNTING POLICIES : The Company is not complying with the disclosure requirements of AS-5, there are prior period expenses accounted for during the current year amounting to Rs. 3.75 Crores.

9. CONFIRMATIONS: The balance shown in Sundry Debtors, Sundry Creditors, Advances, stock with depots and bank balances are subject to confirmation from respective parties. There is a variation between the Bank Statement and Books of Accounts of Bank of Baroda, as per the information received from the management the amount relates to the temporary difference because of the excessive interest charged by the bank which would be reversed in due course the amount of difference is Rs. 5.00 Crores.

10. ACCOUNTING FOR GOVERNMENT GRANTS:

a. The Company is entitled for incentives in respect of Cement & Paper plants wherein the recognition provision have not been completely complied with.

b. As per PSI 2007, the company should have recognized the amount receivable to it only after depositing its statutory dues to the government and should recognize the income as "Other Income" as per accounting Standard 12, but the same is included in turnover. Though the Company is yet to deposit its statutory dues with the State Government it has recognized the VAT receivable.

11. Value of Imports on C.I.F. Basis (Duplex, SBS & Writing Printing) Raw Material : Rs.47.63 Crores ($1.02 Crores) [P.Y.Rs.63.21 Crores] ($1.36 Crores) Imported Capital Goods : Rs.0.11Crores ($ 0.0024 Crores) [P.Y. Rs. 0.88 Crores ($0.2 Crores).

12. Earnings in Foreign Exchange: Export Value of Goods on F.O.B. Basis is Rs. 2.02 Crores ($ 0.04 Crores), P.Y. Rs. 5.91 Crores ($0.13 Crores).

13. EXPORT TURNOVER: Total Turnover includes Export Turnover of Rs.60.2 Crores (P.Y.46.42 Crores).

14. CAPITALISATION OF EXPENSES: The Company has capitalized expenses of Rs. 2.46 crores incurred in PULP Mill Unit as the Unit was not in operation in the whole year. The PULP Mill Unit was not run as manufacturing pulp from Waste paper was not cost effective.

15. INCOME TAX: The Company does not have taxable income as per income tax act and hence company has not made any provision for payment of income tax.

16. WEALTH TAX: The Company has not made any provision for payment of wealth tax.


Mar 31, 2011

I) Contingent Liability for pending litigation(s) are not accounted for in the books of account.

Claims not acknowledged as debts Current Year (Rs.) Previous Year (Rs.)

a) Customs & Excise 7,02,57,113 24,32,697

ii) Estimated amounts of contracts remaining to be executed on capital accounts and not provided for Rs. Nil (Previous YearRs. Nil).

iii) PAYMENTS DUE TO MSME UNITS : In the absence of comprehensive details of MICRO, SMALL & MEDIUM ENTERPRISES industrial undertaking, and non-intimation by the suppliers of their being MSME industrial undertaking, the amount due to such suppliers as on 31.03.2011 could not be determined.

iv) The dividend of the previous year amounting to Rs.2.51 crores has been accounted for in the current financial year.

v) The company is generally following the accrual system in its accounting, except while accounting for interest accrued on FDRs, Dividend, Employee Retirement Benefits.

vi) FOREIGN EXCHANGE TRANSACTION : The Company has provided Foreign Exchange fluctuation on actual payment basis to the respective account instead of showing separately in Exchange Fluctuation Account as specified in AS-11.

vii) EXCISE / CUSTOMS : The Company has maintained excise records in manual as well as computerized formats. Generally, the manual records have been audited and accepted by the Excise department. However, the amounts reflected in the records maintained on ERP, which are incorporated in the balance sheet, are pending reconciliation with manual records. The impact of the same on the profitability of the company remains unquantifiable.

viii) SEGMENT INFORMATION : : The Company is operating in Eight Business Segments viz. Solvent Extraction, Duplex Paper Board, News Print, Captive Power Generation, Writing & Printing, SBS Board, Cement and Pulp Mill. The segment- wise disclosure is as under:

xi) The balance shown in Sundry Debtors, Sundry Creditors, Advances are subject to confirmation from respective parties.

xii) Previous year's figures have been regrouped / reclassified, wherever necessary, to conform to the classification adopted in the Current Year.

xiv) Value of Raw Materials Consumed :

*Quantitative Details continued at the end of Schedule "S".

xv) Value of Imports on C.I.F. Basis (Agro, Duplex, Newsprint ,SBS,& Writing Printing)

Raw Material: Rs. 6321.46 Lacs ($13666310.06)[P.Y.Rs. 7243.08 Lacs]($ 15126281.91) Imported Capital Goods: Rs. 88.22 Lacs ($191404.59) [P.Y. Rs. 1775.38 Lacs ($3619848.7)]

xvi) Earnings in Foreign Exchange: Export Value of Goods on F.O.B. Basis is Rs. 591.08 Lacs. ($1317007.48), P. Y. Rs. 3208073 ($70610.11).

xvii) Export Turnover : Total Turnover includes Export Turnover of Rs. 46,41,78,273/-(P.Y.46,21,95,366/-).

xviii) The Company has capitalized expenses of Rs. 3.49 crores incurred in PULP Mill Unit as the Unit was not in operation in the whole year. The PULP Mill Unit was not run as manufacturing pulp from Waste paper was not cost effective.


Mar 31, 2010

I) Contingent Liability for pending litigation(s) are not accounted for in the books of account.

Claims not acknowledged as debts Current Year(Rs.) Previous Year (Rs.)

a) Customs 12,06,834 12,06,834

b) Other Pending Litigations 12,25,863 12,25,863

Total 24,32,697 24,32,697

ii) Estimated amounts of contracts remaining to be executed on capital accounts and not provided for approx Rs.Nil(Previous YearRs.155 Crores)

iii) PAYMENTS DUE TO MSME UNITS : In the absence of comprehensive details of MICRO, SMALL a MEDIUM ENTERPRISES industrial undertaking, and non-intimation by the suppliers of their being MSME industrial undertaking, the amount due to such suppliers as on 31.03.2010 could not be determined.

iv) FOREIGN EXCHANGE TRANSACTION : The Company has provided Foreign Exchange fluctuation on actual payment basis to the respective account instead of showing separately in Exchange Fluctuation Account as specified in AS-11.

v) SEGMENT INFORMATION : : The Company is operating in Eight Business Segments viz. Solvent Extraction, Duplex Paper Board, News Print, Captive Power Generation, Writing & Printing, SBS Board, Cement and Pulp Mill. The segment-wise disclosure is as under:

viii) Related Party Disclosure: Following disclosure has been made as per the requirement of Accounting Standards 18 issued by I.C. A. I.

(A) Key Management Personal (B) Enterprises owned /Managed by Key Managerial Personnel

Shobhagmal Maloo Chairman Nandlal Enterprises Ltd.

Nandlal Maloo Managing Director Murli Tyres Limited

Bajranglal Maloo Director Radha Software Limited

Lalchand Maloo Director Murli Infrastructure Limited

Sunil Kumar Maloo Director Murli Electrode Private Limited



xi) The balance shown in Sundry Debtors, Sundry Creditors, Advances are subject to confirmation from respective parties.

xii) Previous years figures have been regrouped / reclassified, wherever necessary, to conform to the classification adopted in the Current Year.

xiii) Additional information pursuant to paragraphs 4 (C) and 4 (D) of part II of Schedule VI of the Companies Act, 1956and Quantitative Details

xiv) Value of Raw Materials Consumed :

Quantitative Details continued at the end of Schedule "S".

xv) Value of Imports on C.I.F. Basis (Agro, Duplex, Newsprint, SBS a Writing Printing)

Raw Material:Rs.7,243.08Lacs($15126281.91)[P.YRs.4,112.50Lacs]($ 12330242) Imported Capital Goods: X 1,775.38 Lacs ($3619848.7) [P.Y.Rs.512.71856 Lacs] ($1050203)

xvi) Earnings in Foreign Exchange: Export Value of Goods on F.O.B. Basis isRs.32,08,073 ($70610.11 ), P.Y. Rs.1,07,16,371 ($232854.77).

xvii) Export Turnover: Total Turnover includes Export Turnover ofRs. 46,21,95,366/- (P.YRs. 1,32,30,18,449/-).

xviii) The Company has capitalized expenses ofRs. 5.49 crores incurred in PULP Mill Unit as the Unit was not in operation in the whole year. The PULP Mill Unit was not run as manufacturing pulp from Waste paper was cost effective as compared to pulp of PULP Mill which is produced from agro residue.

Find IFSC