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Notes to Accounts of Nagpur Power & Industries Ltd.

Mar 31, 2015

1.1 The Equity Shares of the Company have voting rights and are subject to the restriction as prescribed under the Companies Act, 2013.

1.2 The company has no holding Company. The subsidiary company does not hold any shares in the company.

1.3 Disclosures pursuant to Note no. 6(A)(h,i,j,k,l) of Part I of Schedule III to the Companies Act, 2013 is NIL.

1.4 The Company contributes to defined benefit schemes for Gratuity which is administered through duly constituted and approved independent trust. The liability for Gratuity and leave encashment is determined on the basis of actuarial valuations made at the year end.

1.5 There has been no default in payment of principal and interest on the loan.

1.6 There has been no default in repayment of principal and interest on the loan.

1.7 The Company contributes to defined benefit schemes for Gratuity which is administered through duly constituted and approved independent trust. The liability for Gratuity and leave encashment is determined on the basis of actuarial valuations made at the year end.

1.8 The balances of Security Deposits and Advances from customers are subject to confirmation.

1.9 In the absence of information with the company, the names of Micro, Small and Medium Enterprises to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. The Auditors have relied upon this management representation.

1.10 The balances of Trade Payables are subject to confirmation.

1.11 Investments in mutual fund includes investments amounting to Rs, 58,47,865 /- (Previous Year : Rs, 64,43,833 /-) held in the name of porfolio manager under porfolio management service agreement which is based on statement from the portfolio manager and duly certified by their auditors.

1.12 Company's Ferro Alloys unit generated waste during the process of manufacture, which has accumulated over the years in and around the main plant. The waste is reusable for extracting metal content therein. Company has set up a Metal Recovery Plant for the purpose. During the year, company has accounted for stock of unextracted metal contents valuing Rs, 7,05,000/- (Previous Year Rs, 15,25,000/-) out of this accumulated waste based on the finding & valuation report of the Consultant Metallurgist obtained during the year. The technical consultants have advised the Company that the balance of this accumulated waste in terms of its quality, metal content and realizable value cannot be yet reasonably ascertained. Company has therefore not been in a position to account for stock of such balance accumulated waste.

1.13 The balances of Loans & Advances are subject to confirmation.

1.14 In the opinion of the board the Loans and Advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

1.15 The employee benefit expense includes the Whole Time Director's remuneration as approved by share holders at Annual General Meeting held on September 15,2014.

The company has relied on the valuation certificate issued by consulting Actuary, in terms of AS 15 (revised) issued by the Institute of Chartered Accountants of India, for calculating the actuarial value of Gratuity liability and leave encashment liability towards the employees of the Company.

2. DEFINED BENEFIT PLANS:

As per Actuarial valuation as on 31st March, 2015 and recognised in the financial statements in respect of Employee Benefit schemes:

Note: The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. Future cash outflow on (a) and (b) above is determinable only on the receipt of judgment / decision pending with respective Hon'ble Court / authorities / departments and or completion of negotiations / settlement.

3. The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company's holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

4. The Company has only one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

5. Deferred tax assets of Rs, 13,37,284/- has not been recognized on prudent basis.

Figures in brackets are related to previous year *

The Company does not have an exhaustive list of business or professions in which relatives of directors of the Company have substantial interest. As such, payments made to any such persons, if any have not been identified. This management representation has been relied upon by the Auditors.

(d) No amounts have been written off/provided for or written back during the year in respect of debts due from or to related parties.

6. Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable with the current year figures.


Mar 31, 2014

CONTINGENT LIABILITIES AND COMMITMENTS:(To the extent not provided for) (In Rs.)

Particulars As at 31-03-2014 As at 31-03-2013

(a) Contingent Liability

i) Claims made against the Company/ disputed liabilities not acknowledged as debts : - -

- Sales Tax Demand not provided for pending outcome of appeal (Of which documents relating to claim of Rs.6,27,736 are currently not available with the Company) 20,173,539 20,173,539 - Excise Duty Demand not provided for pending outcome of appeal 2,657,798 2,657,798

- Customs duty Demand not provided for pending outcome of appeal 11,742,500 11,742,500

- Other Matters (Of which documents relating to claim of Rs.29,63,312 are currently not available with the Company) 11,100,737 11,051,561

- Balance of Income Tax Demand u/s 156 of the 3,631,578 3,631,578

Income Tax Act, 1961 in respect of A.Y 2010-11. not provided for pending outcome of appeal.

- Income Tax Demand u/s 156 of the Income Tax Act,1961, 1,036,460 - in respect of A.Y.2011-12 not provide for pending outcome of appeal.

ii) Guarantees -

iii) Other money for which the Company is contingently liable

- Investment in partly paid up shares (to the extent of un-called portion) - 927

(b) Commitments - - Total Contingent Liabilities and Commitments 50,342,612 49,257,903

Note: Future cash outflow on (a) and (b) above is determinable only on the receipt of judgment / decision pending with respective Hon''ble Court / authorities / departments and or completion of negotiations / settlement.

2 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company''s holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

3 The Company has only one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

4 Deferred tax assets of Rs. 8,85,309/- has not been recognized on prudent basis.

5 Related Party disclosures as required under Accounting Standard – AS-18 issued by the Institute of Chartered Accountants of India, are given below:

(a) Name and Nature of Relationship of the Related Parties where Control Exists:

Name of the Related Party

i) Informed Technologies India Limited

ii) Zeppelin Investments Private Ltd.

iii) Khandelwal Remedies Private Ltd.

iv) Meteor Metals & Ores Ltd.

v) Khandelwals Ltd.

Vi) The Motwane Manufacturing Company Ltd.,

Nature of Relationship

Enetrprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise.

Subsidiary Company

6 Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable with the current year figures.


Mar 31, 2013

1 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company''s holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

2 The Company has only one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

3 Deferred tax assets of Rs. 8,82,540/- has not been provided on prudent basis.

4 The Principal business of the Company is manufacturing of High/Medium/Low Carbon Ferro Manganese and Silico Manganese Slag which is facing challenges. Company is considering various projects in the manufacturing sector, including therein power generation and distribution. In the mean time the company has on temporary basis parked investible surplus in Fixed Deposit, Open-ended Mutual Funds and other investments. Considering the long term business plan of the Company and the nature of the investments that the Company has made, the Company has been advised that the provisions of Non Banking Finance Company Regulation do not apply to it Based on these, in the opinion of the Board, the Company is not a Non Banking Finance Company defined in Section 45 1(f) of the Reserve Bank of India Act, 1934 (2 of 1934). The auditor have relied upon this expert advice and the decision of the Board of Directors in this regard.

5 Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable with the current year figures.


Mar 31, 2012

1.1 The Equity Shares of the Company have voting rights and are subject to the restriction as prescribed under the Companies Act, 1956.

1.1 The company has no holding Company. The subsidiary company does not hold any shares in the company.

2.1 In the absence of information with the company, the names of Micro, Small and Medium Enterprises to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. The Auditors have relied upon this management representation.

2.2 The balances of Trade Payables are subject to confirmation.

3.1 The Company contributes to defined benefit schemes for Gratuity which is administered through duly constituted and approved independent trust. The liability for Gratuity and leave encashment is determined on the basis of actuarial valuations made at the year end.

3.2 Others include provision for salaries, wages, recurring deposit account of employee and commission payable to managing director/ chairman (Current Year: Rs.Nil, Previous Year: Rs.3,96,179/-). .

4.1 Provision for doubtful deposit: Current Year: Rs. 91,430/-(Previous Year:Rs. Nil)

4.2 The balances of Security Deposits are subject to confirmation.

4.3 In the opinion of the board loans and advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

5.1 Company's Ferro Alloys unit generated waste during the process of manufacture, which has accumulated over the years in and around the main plant. The waste is reusable for extracting metal content therein. Company has set up a Metal Recovery Plant for the purpose. During the year, company has accounted for stock of unextracted metal contents valuing Rs 2,250,000 (Previous Year Rs. 21,600,000/-) out of this accumulated waste based on the finding & valuation report of the Consultant Metallurgist obtained during the year. The technical consultants have advised the Company that the balance of this accumulated waste in terms of its quality, metal content and realizable value cannot be yet reasonably ascertained. Company has therefore not been in a position to account for stock of such balance accumulated waste.

6.1 * Net of Advances considered doubtful Rs. 5,63,000 (Previous Year Rs. 5,63,000)

6.2 The balances of Loans & Advances are subject to confirmation.

6.3 In the opinion of the board the Loans and Advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

7.1 "This includes directors remuneration. The members have approved the appointment of Mr. Gautam Khandelwal, Executive Director for a period of 5 years w.e.f. July 1, 2009 at AGM held on September 25, 2009. In terms thereof, where in any financial year the company has no profits or its profits are inadequate, the company will pay remuneration within the limits specified in Section 309 read with Schedule XIII of the Companies Act, 1956.

The company has incurred losses during the current year. In terms of Section II of part II of Schedule XIII, considering the effective capital of the company and other criteria mentioned therein, the maximum remuneration payable to directors is Rs,2,50,000/- p.m. i.e. Rs.30 lacs p.a. subject to approval of the members of the company. The board of directors have approved and paid sums aggregating to Rs.26,61,204/- to Mr. Gautam Khandelwal, Executive Director subject to obtaining the consent of the members in terms of Section II of part II of Schedule XIII of the Companies Act, 1956.

8.1 'Pursuant to the provisions of section 314(1) of the Companies Act, 1956, the appointment of Mr. Arnold Allen, Director of the Company to hold an office or a place of profit as Financial and Corporate Advisor w.e.f April 3, 2008 for the sum of Rs. 33,250 p.m. was approved by the members at the annual general meeting held on September 25, 2008.

During the year the Board of Directors have approved and paid sums aggregating to Rs.5,06,645/- i.e. in excess of the sum of Rs.3,99,000/- for the year approved by the members, subject to obtaining the consent of the members for this additional sum.

Note:

Future cash outflow on (a) to (d) above is determinable only on the completion of negotiations/on receipt of judgments/ decisions pending with respective firms/authorities.

9 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company's holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

10 The Company has one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

11 Deferred tax assets of Rs. 5,78,378/- has not been provided on prudent basis.

12 Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable with the current year figures.


Mar 31, 2000

I) Contingent Liabilities not provided for :

31-03-2000 30-09-1999 Rupees Rupees

(a) Claims against the Company not Acknowledged as debts 85,24,988 84,35,550

(b) Minimum Demand Charges, Delay period charges, interest charges (NTPC concession not given by MSEB considered as in dispute) 10,66,51,567 8,32,79,437

(c) Sales Tax Demands not provided for pending outcome of appeal 44,04,324 42,49,768

(c) Bills drawn on customers and cheques discounted with Banks 22,33,355 27,80,925

ii) The declaration filed under the Urban Land (Ceiling and Regulations) Act, 1976 in respect of companys holding in excess of the ceiling prescribed under the Act and the application for exemption filed under Section 20 of the Act to retain these lands are under consideration of the concerned authorities.

(iii) In compliance with Accounting Standard - 2 (AS-2) on valuation of inventories, of Finished Products.

(a) Overheads have been considered. There is, however, no material impact on the loss for the half year.

(b) Excise duty aggregating to Rs. 39,74,688/- has also been included in the valuation of inventories. However, there is no effect on Loss for the half year or Reserves as at 31st March 2000 on account of this change.

iv) The Company carries out production emanating from its in-house research and development activity out of its pilot plants. As such the raw materials consumed, and other expenses incurred by the Company on this activity are shown under the head Research and Development Expenses. The production when sold is shown under the head sales and the closing stock lying on hand at the close of the year is shown as closing stock of Finished Products.

(v) In terms of Notification No. GSR (129 E) dated 22-02-1999 issued by the Department of Company Affairs, the company is required to furnish the details of outstandings of Small Scale Industrial Undertakings under the head "Current Liabilities and Provisions". The company had requested their vendors to furnish requisite information alongwith their SSI registration number. Based on the information available with the company there are no amounts outstanding to Small Scale Industrial Undertakings which are over Rs. 1 lac and outstanding for more than 30 days.

vi) The Previous periods figures are not comparable as they comprise a period of 18 months whereas the current period figures are for 6 months. Besides there has been no production during the current 6 months period.

 
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