Mar 31, 2010
As at 31.03.2010 (Rs.) As at 31.03.2009 (Rs.)
1) Estimated amount of contracts remaining to be executed on capital account not provided for
2. a) Claims against the company not acknowledged as debts
Income Tax matters under appeals 20,88,540 -
Sales Tax matters under appeals 3,17,28,215 72,32,903
- Legal cases 9,56,266 8,76,757
b) Contingent Liabilities on account of
- Excise claims 4,01,12,347 4,01,12,347 Bank guarantee against performance 1,36,56,778 1,71,24,156 Corporate guarantee for Other than Subsidiary 1,12,66,000 1,12,66,000
3) Claims recoverable includes Rs.Nil (Previous period Rs. 65,70,987/-) being amount recoverable from Banks as part of relief package (Refer Note no.6 below).
4) Total accumulated dividend on 10% CCPSs converted into Equity Shares on 29.1.94 is Rs.62,600/- (Previous Period Rs.62,600/-) payable before declaring any dividend on equity shares.
5) During the year, the company has entered into an agreement to sell one of its properties at Faridabad. The agreement is subject to necessary approvals and clearances, including from the banks/financial institutions, which are yet to be received. The consideration received has been shown under current liabilities and profit of Rs.610.68 lac arising from the transaction has not been considered in these accounts.
6) In the process of financial restructuring continuing from the initial relief package and modifications thereof, the company entered into OTS arrangement with most of its term lenders and has already made payment/s as per terms of sanction. Reliefs thereof have been accounted for in earlier years. During the year, the company further entered into OTS arrangement with one more Institution and payments have been made as per terms of sanction thereof. Balance amount of Rs.185.65 lac is yet to be paid by the company. The net relief of Rs.5.78 lac has been adjusted in provision of interest made during the year in this respect.
The management is hopeful of making balance payment against OTS to the said Institution. This in turn will ensure successful completion of the earlier relief packages and relief considered in these accounts.
7) In accordance with the provisions of Accounting Standard on Impairment of Assets, (AS-28), the management has made assessment of assets in use and considering the business prospects related thereto, no provision is considered necessary in these accounts on account of Impairment of Assets
8) There are no present obligations-requiring provision in accordance with the guiding principles as enunciated in Accounting Standard AS-29 Provisions, Contingent Liabilities and Contingent Assets, as it is not probable that outflow of resources embodying economic benefits will be required.
9. a) Investment in subsidiary company Nuchem Infrastructure Ltd. is shown at cost ot Rs.2,04,32,9007-. The companys proportionate share in the losses of subsidiarys accumulated losses is Rs. 257.71 lac as on 31.03.2010 (Previous period Rs.268.82 lac).
In terms of the requirements of rehabilitation package, modification thereof and OTS/restructuring as aforesaid, the management has been in the process of dis-investment of subsidiary company on a going concern basis. In this context, the valuation of the assets of the subsidiary had been carried out by a professional firm and the company sold 48.96% holding of shares during previous period.
Based on the valuation and the sale consideration of part investment of the holding, the management is of the view that the investment by way of equity in subsidiary is fully covered by the value of subsidiarys assets. Therefore, diminution in the value of investment in subsidiary company is considered temporary in nature and thus not provided for in accordance with Accounting Standard AS-13 on "Accounting for Investments" notified pursuant to the Companies (Accounting Standards) Rules, 2006.
b) In view of part disinvestment and intention of management for further disposal in future, the control over the subsidiary is considered temporary, and therefore, the consolidation of its accounts with those of the company are not required as enunciated in Accounting Standard AS-21 Consolidated Financial Statements notified pursuant to the Companies (Accounting Standards) Rules, 2006.
c) The amount receivable in respect of above sale of shares is due in instalments beginning from March 2010 up to September 2012. Overdue amount as on 31.03.10 is Rs.254.80 lac.
10) A company petition has been filed u/s 397, 398 etc. of the Companies Act 1956 by a party towards end May 2010 before the Honble Company law Board (i.e. CLB) and an ex-parte interim order has been passed, inter-alia directing the company to maintain status quo qua its assets and not to take any major decisions qua its wholly owned subsidiary namely Nuchem Infrastructure Ltd. till further orders. The company has challenged the maintainability of the petition and further actions are under way as considered necessary in the interest of the company.
11) The company has accounted for deferred tax assets in accordance with the provisions contained in Accounting Standard AS-22 Accounting for Taxes on Income notified pursuant to the Companies (Accounting Standards) Rule, 2006 owing to improved prospects of its MDF product range on account of notification relating to Anti Dumping duty by Government of India, companys plans in near future to invest in value addition facilities and undertake certain cost-reduction measures.
12) Claims of certain parties are provided for as per best estimates. Further liability, if any, will be accounted for on final settlements.
13) Previous period figures have been rearranged or readjusted wherever considered necessary to facilitate comparison.
14) There are no Micro, Small and Medium enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.