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.