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Accounting Policies of Omega Ag-Seeds (Punjab) Ltd. Company

Mar 31, 2015

A) SYSTEM OF ACCOUNTING

Financial statements are based on Historical cost in accordance with applicable accounting principles in India, mandatory accounting standards issued by ICAI and the relevant provisions of the companies act,1956.The company follows mercantile systems of accounting and recognized income and expenditure on accrual basis except those with significant uncertainties.

B) FIXED ASSETS

Fixed assets are stated at cost including freight, duties and other incidental expenses relating to cost of acquisition. Capital work in progress includes expenses for project appraisal fee and salary paid for project. The same will be capitalized to respective fixed assets on commissioning of plant

C) DEPRECIATION

Depreciation on all assets has been provided on straight line basis method in the manner and at the rates specified as per the companies Act, 2013.

D) REVENUE /EXPENSES RECOGINITION

The revenues have been accounted for on Accrual basis and expenses related to the year have been accounted for on accrual basis

E) TAXATION

The provisions of Tax has been created keeping view the provisions of section 115JB of income Tax Act 1961.

F) CONTINGENT LIABILITIES

Liabilities may arise if any, on account of pending litigations matters as stated by the management and reported as above.

G) PENDING LITIGATION:

a) PENDING LITIGATION MATTERS CASES FILED BY THE COMPANY

* M/S Vatsa Finance Ltd. and others on account of restraining them from disassociating as LEAD MANAGER to the public issue of the company and for damages for contempt of court. And SEBI for withdrawing the Acknowledgement card No.3042 dated 08.04.1994 for the public issue of the company.

* Suit No.4488/1996 for recovery of Rs.4.00 lakh from M/s Mahalaxmi Dyes & Chemical, Mumbai.

* Criminal Complaint no 217 of 2002 filed by the company before chief judicial Magistrate 1st Class at Distt. Courts Chandigarh against Indian Overseas Bank, officials u/s 409 of IPC for not releasing the deposit of the company.

* Civil suit No 472 of 2003 filed against Indian Overseas Bank & others in the Distt Court Chandigarh. Suit for declaration of the effect that Public Issue of Indian Overseas Bank being opened w.e.f 06.09.2003 is illegal being issued in violation of provisions of Companies Act as well as concealment of facts. The suit was dismissed, and appeal filed by company is pending with the court.

* Suit No.3584 of 1994 filed by the company against Vatsa Finance Ltd for recovery of damages in High Court, Bombay.

* Suit No.1319 of 1995 filed by the company against Punjab & Sind Bank for recovery of Rs.5.00 Crore pending before High Court, Bombay.

* Suit filed against Punjab & Sind Bank for recovery of Rs.75,000/- paid on account of Appraisal Fee.

b) CASES FILED AGAINST THE COMPANY

* Punjab Agro Industries Corporation has filed a suit for alterations in the Articles of Association of the company and restricting the company to hold the EGM on 29th December, 1995 in view of the financial collaboration agreement executed with them by OASIL.

* RSA 833/2003 field by PAIC against company for permanent injunction restraining the company form holding or modified the Articles of Association of the company and further restrain the company holding Extraordinary Annual General Meeting held on 29.12.1995.

* M/s. Mauve & Crimision Advertising Pvt Ltd., New Delhi has filed a case for passing a decree of permanent injunction thereby restraining Omega Ag- Seeds (Punjab) Limited and Omega Agro Limited from taking forcible and illegal possession of flat at 7/18,Kalkaji Extension ,New Delhi against recovery of Rs 11.82 lacs from the Company.

* Civil suit No. 81 of 2000 in Distt. Court Chandigarh filed by Mr. Teja Singh against the Company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company .Decree was passed against the company and an appeal filed by the company and the said appeal also was dismissed . Company is in the process to file appeal before Punjab and Haryana court at Chandigarh.

* Civil suit no 97 of year 2000 in the Distt. Court Chandigarh filed by Mr.Teja Singh against the company for recovery of Rs 2.07 lacs in consideration of seeds supplied by him to the company. Decree passed,appeal filed by the company is dismissed . Company is in the process of filing appeal before Punjab and Haryana court at Chandigarh.

* Civil suit of year 2000 in the Distt. Court Chandigarh filed by Mr. Gurinder Singh against the company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by the company is dismissed. Company is in process to file appeal before Punjab and Haryana court at Chandigarh.

* Civil suit no 82 of year 2000 in the Distt. Court Chandigarh filed by Mr. Ravinder Singh against the company for recovery of Rs 50,901.63/- in consideration of seeds supplied by him to the company and rejoinders arising out of aforesaid Litigation. Decree passed, appeal filed by the company is dismissed. Company is in process of file appeal before Punjab and Haryana court at Chandigarh.

* 64/2010 is pending in 47th Court, Killa Court, CST and filed by SEBI for Public Issue of 1994.

* The property of associate company of Omega Ag. Seeds (Punjab) Ltd. was trespassed by M/S Mauve & Crimision Advertising Pvt. Ltd. in the year 1995 after the Public issue and in 1996, the Tishazari Court, Delhi dismissed the case filed by M/S. Mauve & Crimision Advertising Pvt. Ltd. The said company appeal against the said order in High Court, Delhi. The Court ordered the occupant, Rakesh Singh to deposit Rs.25,000/- per month as mesne profit from 23.01.2003 till further order. In return, he has deposited Rs.5,87,500/- in the High Court, Delhi in compliance with directions of court.

H) LICENSED/INSTALLED CAPACITY

The Company has carried out only trading activity and has not commenced any farming/grading activities hence the license, installed capacity are not applicable.

I) STOCK RECEIPT/ TURNOVER

The company has dealt with items of stock of goods by the way of trading during the year.

J) MANAGERIAL REMUNERATION & FEE ( IF ANY)

The directors have not claimed any remuneration from the company.

K) RELATED PART DISCOLSERS (AS-18)

The related party Disclosures as required as per Accounting Standard (AS-18) on Related party Disclosures Issued by Institute of Chartered Accountants of India are as below:-

A. PARTY RELATION

Omega Ag-Seeds (India) Limited Promoter Company

Punjab Agro Ind. Corporation (PAIC) Promoter Company

B. Key Managerial Personnel

Mr.Nerella Mohan Rao Venkata rama Managing Director

Mr. Rakesh Kumar Jain Director

L) Expenses /Revenue in Foreign currency - NIL

M) Balance of Sundry Debtors, Sundry Creditors and growers and loans & Advances are subject to confirmation.

N) The company has calculated Deferred Tax liability as at 31.03.2015 in accordance with the Accounting Standards (AS-22) issued by The Institute of Chartered Accountants of India.

O) In the opinion of the management the value realization of current assets and loans & Advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

P) In accordance with the Accounting Standard (AS-22) issued by Institute of Chartered Accountants of India, the company has Deferred Tax liability as at 31.03.2015 with regard to timing difference of depreciation of previous years and current year.

Q) Figures for the previous year have been regrouped or rearranged wherever necessary.

R) Paise have been rounded to nearest rupee.


Mar 31, 2014

A) SYSTEM OF ACCOUTING

Financial statements are based on Historical cost in accordance with applicable accounting principles in India, mandatory accounting standards issued by ICAI and the relevant provisions of the companies act,1956.The company follows mercantile systems of accounting and recognized income and expenditure on accrual basis except those with significant uncertainties.

B) FIXED ASSETS

Fixed assets are stated at cost including freight, duties and other incidental expenses relating to cost of acquisition. Capital work in progress includes expenses for project appraisal fee and salary paid for project. The same will be capitalized to respective fixed assets on commissioning of plant

C) DEPRECIATION

Depreciation on all assets has been provided on straight line basis method in the manner and at the rates specified in Schedule -XIV of the companies Act, 1956.

D) REVENUE /EXPENSES RECOGINITION

i) The main revenue i.e. Interest on Bank fixed deposits has been accounted for on Accrual basis and expenses related to the year have been accounted for on accrual basis

E) TAXATION

The provisions of Tax has been created keeping view the provisions of section 115JB of income Tax Act 1961.

F) CONTINGENT LIABILITIES

Liabilities may arise if any, on account of pending litigations matters as stated by the management and reported as above.

G) The property of associate company of Omega Ag. Seeds (Punjab) Ltd. was trespassed by M/S Mauve & Crimision Advertising Pvt. Ltd. in the year 1995 after the Public issue and in 1996, the Tishazari Court, Delhi dismissed the case filed by M/S. Mauve & Crimision Advertising Pvt. Ltd. The said company appeal against the said order in High Court, Delhi. The Court ordered the occupant, Rakesh Singh to deposit Rs.25,000/- per month as mesne profit from 23.01.2003 till further order. In return, he has deposited Rs.5,87,500/- in the High Court, Delhi in compliance with directions of court.

H) LICENSED/INSTALLED CAPACITY

The Company has carried out only trading activity and has not commenced any farming/ grading activities hence the license, installed capacity are not applicable.

I) STOCK RECEIPT/ TURNOVER

The company has dealt with items of stock of goods by the way of trading during the year.

J) MANAGERIAL REMUNERATION & FEE ( IF ANY)

The directors have not claimed any remuneration from the company.

K) In accordance with the Accounting Standards (AS-22) issued by the Institute of Char- tered Accountants of India, the Company has Deferred Tax liability as at 31.03.2008 with regard to timing difference of depreciation of previous years and current years as follows:-

Deferred Tax Liability of Current year

K) RELATED PARYT DISCOLSERS (AS-18)

The related party Disclosures as required as per Accounting Standard (AS-18) on Related party Disclosures Issued by Institute of Chartered Accountants of India are as below:-

A. PARTY RELATION

Omega Ag-Seeds (India) Limited Promoter Company

Punjab Agro Ind. Corporation (PAIC) Promoter Company

B. Key Managerial Personnel

Mr.Nerella Mohan Rao Venkatarama Managing Director

a) Disclosure required for related parties transactions.

The Amounts outstanding at Balance sheet Date.

Amount Recoverable from Promoter Company

Omega Ag-Seeds (India) Ltd Rs. 1,46,277/-

Amount Payable to Managerial Personnel

Mr. Nerella Mohan Rao Venkatrama Rs. 20,000/-

L) Expenses /Revenue in Foreign currency - NIL

M) Balance of Sundry Debtors, Sundry Creditors and growers and loans & Advances are subject to confirmation.

N) The company has calculated Deferred Tax liability as at 31.03.2014 in accordance with the Accounting Standards (AS-22) issued by The Institute of Chartered Accountants of India.

O) In the opinion of the management the value realization of current assets and loans & Advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

P) In accordance with the Accounting Standard (AS-22) issued by Institute of Chartered Accountants of India, the company has Deferred Tax liability as at 31.03.2014 with regard to timing difference of depreciation of previous years and current year.

Q) Figures for the previous year have been regrouped or rearranged wherever necessary.

R) Paise have been rounded to nearest rupee.

S) PENDING LITIGATION MATTERS

a) CASES FILED BY THE COMPANY AS PETITIONER/ COMPLAINANT IN

CHANDIGARH COURT, BOMBAY HIGH COURT :

- Suit No. 3128 of 1994 is filed by the company against the Lead Manager i.e.,M/S. Vatsa Finance Ltd. And SEBI, on account of restraining them from disassociating as LEAD MANAGER to the public issue of the company of May, 1994 and for damages for contempt of court. And SEBI for withdrawing the Acknowledgement Card No. 3042 dated 08.04.1994 for the public issue of the company is decreed in companies favour absolutely and the adjudication is pending in the Hon''ble High Court, Bombay in Suo Motto Contempt Petition No. 196 of 1997.

- Suit No. 4488/1996 for recovery of Rs.4.00 lakh from M/s Mahalaxmi Dyes & Chemical, Mumbai.

- Criminal Complaint No. 217 of 2002 is filed by the company before Chief Judicial Magistrate 1st Class at Dist. Courts Chandigarh against Indian Overseas Bank, officials u/s 409 of IPC for not releasing the ORIGINAL DEPOSIT RECEIPT of the company for Rs. 69,27,243.15/- and was dismissed by the court and the company is considering filing an appeal against the said order.

- The Suit No. 3584 of 1994 filed by the your company against the Lead Manager M/s. Vatsa Finance Ltd and its Promoters/Directors for recovery of damages in the Public Issue of your company in May, 1994 for Rs.99 Crores in High Court, Bombay is decreed in your Companies favour on February, 2013.

- The Suit No. 1319 of 1995 filed by the company against Punjab & Sind Bank for recovery of Rs. 500 Crores is pending before Hon''ble High Court, Bombay

for adjudication and the issues have already been framed. This includes the recovery of Rs. 75,000/- paid on account of Appraisal Fees of the Public Issue and their advertisement through their Advocate Mrs. Rupinder Kaur of Delhi High Court on May, 20, 1994 in Hindustan Times.

- The suit filed against Punjab & Sind Bank, Fort Branch for Recovery of Rs. 1,100/- in the Current Account of your company opened in May, 1994 is pending in Appeal No. FA/697/2013 in the Hon''ble High Court, Bombay for adjudication.

- Defamation Case filed against the Ex-Director Mr. Chandrakant Vadilal Shah, Case No. 0215793/SS/2012 for his Defamatory Letter dated : 22nd March, 2010 addressed to Mr. Nerrela Mohanrao at Hyderabad calling your company as Bogus Company.

- Your company has filed a Case agaist Mr. Vikas Didwania for The Recovery of Recovery of Loan of Rs. 10,00,000/- and which was dismissed by the Hon''ble court. And is pending adjudication in the City Civil Court at Bombay for his dishonoured Cheque given to the Company.

b) CASES AGAINST THE COMPANY :

- Civil Suit No. 472 of 2003 filed against Indian Overseas Bank & Your Company M/s. OMEGA AG SEEDS PUNJAB LTD. The suit is dismissed, and appeal filed by the PUNJAB AGRO INDUSTRIES LTD, Co-Promoter of your company is also dismissed and against which the Civil Revision application bearing No. C.R.No. 2882/2002 was dismissed by the High Court of Chandigarh on 03rd September, 2013 as revision was not maintainable with liberty to the petitioner to file regular second appeal. PUNJAB AGRO INDUSTRIES LTD has preferred an appeal against the order of 3.9.2013 of the High Court and filed Special Leave Petition (CIVIL) 30570 of 2013 in the Supreme Court which was dismissed on 25.09.2013 with the permission to file appeal within a month''s time. Accordingly, PUNJAB AGRO INDUSTRIES LTD has filed a regular appeal RSA 4144 of 2013 which is pending in the Punjab and Haryana High Coiurt.

- Punjab Agro Industries Corporation has filed a suit for alterations in the Articles of Association of the company and restricting the company to hold the EGM on 29th December, 1995 in view of the financial collaboration agreement executed with them by OASIL.

- RSA 833/2003 filed by PAIC against company for permanent injunction restraining the company form holding or modified the Articles of Association of the company and further restrain the company holding Extraordinary Annual General Meeting held on 29.12.1995.

- M/s. Mauve & Crimson Advertising Pvt Ltd., New Delhi has filed a case for passing a decree of permanent injunction thereby restraining Omega Ag-Seeds (Punjab) Ltd and Omega Agro Limited from taking forcible and illegal possession of flat at 7/ 18, Kalkaji Extension, New Delhi against recovery of Rs.11.82 Lacs from the company.

- Civil suit No. 81 of 2000 in Dist. Court, Chandigarh filed by Mr. Teja Singh against the Company for recovery of Rs. 4.43 lacs in consideration of seeds supplied by him to the company. Decree was passed against the company and an appeal filed by the company and the said appeal also was dismissed. The Decree Holder has filed a execution petition for recovery of decretal amount.

- Civil suit No. 97 of 2000 in the Dist. Court, Chandigarh filed by Mr. Gurinder Singh against the company for recovery of Rs. 2.07 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by the company is dismissed. The Decree Holder has filed a execution petition for recovery of decretal amount.

- Civil Suit No. 82 of 2000 in the Dist. Court, Chandigarh filed by Mr. Ravinder Singh against the company for recovery of Rs. 50,901/63 in consideration of seeds supplied by him to the company and rejoinders arising out of aforesaid Litigation. Decree passed, appeal filed by the company is dismissed. The Decree Holder has filed a execution petition for recovery of decretal amount.

- Criminal Complaint No. 764/2001 filed by the SEBI against the company and its Director as a counter blast to your company suit No. 3128 of 1994 which is Decreed absolutely in our favour is pending in 47th Esplanade Court, C.S.T, Mumbai for the alleged mis-statement in the prospectus of the maiden public issue of your company of May, 1994.


Mar 31, 2013

A) SYSTEM OF ACCOUTING

Financial statements are based on Historical cost in accordance with applicable accounting principles in India, mandatory accounting standards issued by ICAI and the relevant provisions of the companies act,1956.The company follows mercantile systems of accounting and recognized income and expenditure on accrual basis except those with significant uncertainties.

B) FIXED ASSETS

Fixed assets are stated at cost including freight, duties and other incidental expenses relating to cost of acquisition. Capital work in progress includes expenses for project appraisal fee and salary paid for project. The same will be capitalized to respective fixed assets on commissioning of plant

C) DEPRECIATION

Depreciation on all assets has been provided on straight line basis method in the manner and at the rates specified in Schedule -XIV of the companies Act, 1956.

D) REVENUE /EXPENSES RECOGNITION

i) The main revenue i.e. Interest on Bank fixed deposits has been accounted for on Accrual basis and expenses related to the year have been accounted for on accrual basis

ii) Fixed Deposits held with Indian Overseas bank, Chandigarh was matured but renewed in the FY 2012-13.

E) TAXATION

The provisions of Tax has been created keeping view the provisions of section 115JB of income Tax Act 1961.

F) PENDING LITIGATION MATTERS:

a) CASES FILED BY THE COMPANY AS PETITIONER/COMPLAINANT IN CHANDIGARH COURT, BOMBAY HIGH COURT.

- Suit No. 3128 of 1994 is filed by the company against the lead manager i.e., M/S Vatsa Finance Ltd. and SEBI on account of restraining them from as LEAD MANAGER to the public issue of the company of May ,1994 and for damages for contempt of court. And SEBI for withdrawing the Acknowledgement card No.3042 dated 08.04.1994 for the public issue of the company is decreed in companies favor absolutely and the adjudication is pending in the Hon''ble High Court, Bombay in Suo Motto Contempt Petition No. 196 of 1997.

- Suit No.4488/1996 for recovery of Rs.4.00 lakh from M/s Mahalaxmi Dyes & Chemical, Mumbai.

- Criminal Complaint no 217 of 2002 is filed by the company before chief judicial Magistrate 1 st Class at Dist. Courts Chandigarh against Indian Overseas Bank, officials'' u/s 409 of IPC for not releasing the ORIGINAL DEPOSIT RECEIPT of the company for Rs.69,27,243.15/- and is pending at Chandigarh Court.

- The Suit No.3584 of 1994 filed by the company against the Lead manager M/s. Vatsa Finance Ltd and its Promoters /Directors for recovery of damages in the Public issue of your company in May 1994 for Rs.99 Crores in High Court, Bombay is decreed in your companies favour on February, 2013.

- The Suit No.1319 of 1995 filed by the company against Punjab & Sind Bank for recovery of Rs.500 Crores is pending before Hon''ble High Court, Bombay for adjudication and the issues have already been framed. This includes the recovery of Rs. 75,000/- paid on account of Appraisal Fees of the Public issue and their advertisement through their Advocate Mrs. Rupindre Kaur of Delhi High Court on May, 20,1994 in Hindustan Times.

- The suit filed against Punjab & Sind Bank Fort Branch for Recovery of Rs. 1,100/

- in the current Account of your company opened in May, 1994 is pending in Appeal No. FA/697/2013 in the Hon''ble High Court .Bombay for adjudication.

- Defamation case filed against the Ex-Director Mr. Chandrakant Vadilal Shah, case No.0215793/SS/2012 for his Defamatory Letter dated :22nd March,2010 addressed to Mr.Nerrela Mohan Rao at Hyderabad calling your company as Bogus company.

- Your company has filed a case against Mr. Vikas Didwania for The Recovery of Loan of Rs.10,00,000/- and is pending adjudication in the City Civil Court at Bombay for his dishonored cheque given to the company.

b) CASES FILED AGAINST THE COMPNAY

- Civil Suit No. 472 of 2003 filed against Indian Overseas Bank & Your company M/s. OMEGA AG SEEDS (PUNJAB) LTD. The suit is dismissed, and an appeal filed by the PUNJAB AGRO INDUSTRIES LTD, Co-promoter of your company is also dismissed and against which the civil revision application bearing No.2882/2002 is pending in the High Court of Chandigarh for adjudication and is now adjourned to 20th August,2013/03rd September ,2013 as last chance as per the order passed on the Rakhi day seeking adjournment by the Sr. Advocates who remained absent i.e., Mr.Boparai for PAIC ,for Plaintiff PAIC, and MR. Pramod Goyal for Indian Overseas Bank, Chandigarh in the court of Hon''ble MrJustice L.N.Mittalji.

- Punjab Agro Industries Corporation has filed a suit for alterations in the Articles of Association of the company and restricting the company to hold the EGM on 29th December, 1995 in view of the financial collaboration agreement executed with them by OASIL.

- RSA 833/2003 field by PAIC against company for permanent injunction restraining the company form holding or modified the Articles of Association of the company and further restrain the company holding Extraordinary Annual General Meeting held on 29.12.1995.

- M/s. Mauve & Crimsion Advertising Pvt Ltd., New Delhi has filed a case for passing a decree of permanent injunction thereby restraining Omega Ag-Seeds

(Punjab) Limited and Omega Agro Limited from taking forcible and illegal possession of flat at 7/18,Kalkaji Extension ,New Delhi against recovery of Rs

11.82 lacs from the Company.

- Civil suit No. 81 of 2000 in Distt. Court Chandigarh filed by Mr. Teja Singh against the Company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company .Decree was passed against the company and an appeal filed by the company and the said appeal also was dismissed . Company is in the process to file appeal before Punjab and Haryana court at Chandigarh.

- Civil suit No.97 of 2000 in the Dist. Court Chandigarh filed by Mr. Gurinder Singh against the company for recovery of Rs 2.07 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by the company is dismissed. Company is in process to file appeal before Punjab and Haryana court at Chandigarh.

- Civil suit no 82 of year 2000 in the Distt. Court Chandigarh filed by Mr. Ravinder Singh against the company for recovery of Rs 50,901.63 in consideration of seeds supplied by him to the company and rejoinders arising out of aforesaid litigation. Decree passed, appeal filed by the company is dismissed. Company is in process of file appeal before Punjab and Haryana court at Chandigarh.

- Criminal Complaint No.764/2001 filed by the SEBI against the company and its director as a counter blast to your company suit No.3128 of 1994 which is Decreed absolutely in our favour is pending in 47th Esplanade Court, C.S.T,Mumbai for the alleged mis-statement in the prospectus of the maiden Public Issue of your company of May, 1994.

G) CONTINGENT LIABILITIES

Liabilities may arise if any, on account of pending litigations matters as stated by the management and reported as above.

H) The property of associate company of Omega Ag. Seeds (Punjab) Ltd. was trespassed by M/S Mauve & Crimision Advertising Pvt. Ltd. in the year 1995 after the Public issue and in 1996, the Tishazari Court, Delhi dismissed the case filed by M/S. Mauve & Crimson Advertising Pvt. Ltd. The said company appeal against the said order in High Court, Delhi. The Court ordered the occupant, Rakesh Singh to deposit Rs.25,000/- per month as mesne profit from 23.01.2003 till further order. In return, he has deposited Rs.5,87,500/- in the High Court, Delhi in compliance with directions of court.

I) LICENSED/INSTALLED CAPACITY

The Company has carried out only trading activity and has not commenced any farming/ grading activities hence the license, installed capacity are not applicable.

J) STOCK RECEIPT/TURNOVER

The company has dealt with items of stock of goods by the way of trading during the year.

K) MANAGERIAL REMUNERATION & FEE (IF ANY)

The directors have not claimed any remuneration from the company.


Mar 31, 2010

A) SYSTEM OF ACCOUNTING

Financial statements are based on Historical cost in accordance with applicable accounting principles in India, mandatory accounting standards issued by the ICAI of India and the relevant provisions of the Companies Act, 1956. The Company follows mercantile system of accounting and recognized income and expenditure on accrual basis except those with significant uncertainties.

b) FIXED ASSETS

Fixed assets are stated at cost including freight, duties and other incidental expenses relating to cost of acquisition. Capital work in progress includes expenses for project appraisal fee and salary paid for project, the same will be capitalized to respective fixed assets on commissioning of plant.

c) DEPRECIATION

Depreciation on all assets has been provided on straight-line method in the manner and at the rates specified in Schedule-XIV of the Companies Act, 1955.

d) REVENUE /EXPENSES RECOGNITION

The main revenue i.e Interest on Bank Fixed Deposit has been accounted for on Accrual basis and Expenses related to the year have been accounted for on accrual basis.

e) TAXATION

Provision for Taxation has been provided in the financial statements, in accordance with the provision of the Income Tax Act 1961.

f) MISCELLANEOUS EXPENDITURE

Items included in the Miscellaneous Expenditure including payments made on account of Preliminary Expenses, Deferred Revenue Expenses and Public Issue Expenses and the same were written off to full extent in the previous year.

g) EARNING PERSHARE

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity share holder for the year, with the weighted number of equity shares outstanding during the year.

2.PENDING LITIGATION MATTERS

a) CASES FILED BY THE COMPANY

-Vatsa Finance Ltd., and others on account of restraining them from disassociating as LEAD MANAGER to the public issue of the Company and for damages & for contempt of Court, and SEBI for withdrawing the Acknowledgement card No. 3042 dated 08.04.1994 for the Public Issue of the Company.

- Punjab & Sind Bank for recovery of Rs. 75,000/- paid on account of Appraisal Fee.

- CR 271/2003 filed by the company against Mr. Deepak Nayyar, branch manager.lndian Overseas Bank, Chandigarh and others for wrongfully stopping the operation of Current Account No. 35 of the Company and for damages and contempt before senior Sub-judge, Chandigarh, Punjab & Haryana High Court, Criminal Contempt Case before Punjab & Haryana High Court/AG of Punjab and writ petition in Punjab & Haryana High Court.

- Suit No. 4488/1996 for recovery of Rs. 4 lakh from M/s Mahalaxmi Dyes & Chemicals, Mumbai.

- Criminal Complaint no 217 of 2002 filed by the company before Chief judicial Magistrate 1st class at Distt. Courts Chandigarh against Indian Overseas Bank, officials u/s 409 of IPC for not releasing the Deposit of the Company.

- Civil suit No 472 of 2003 filed against Indian Overseas Bank & Others in the Distt Court Chandigarh. Suit for declaration to the effect that Public Issue of Indian Overseas Bank being opened w.e.f 06.09.2003 is illegal being issued in violation of provision of Companies Act as well as concealment of facts. Suit dismissed, appeal filed by company is pending.

- Suit No 3584 of 1994 filed by the company against Vatsa finance Limited for recovery of damages in the High Court, Bombay Suit No 1319 of 1995 filed by the company against Punjab & Sind Bank for recovery of Rs 5.00 Crore pending before High Court, Bombay Suit No 1420 of 2007 filed by the company against the Educational society and others pending before Dera Bassi Distt. Court.

- Suit No 2035 of 2007 filed by company against Shekhpura Khurd and others pending before Dera Bassi Distt. Court.

b) CASES FILED AGAINST THE COMPANY

- Punjab Agro Industries Corporation has filed a suit for alterations in the Articles of Association of the Company and restricting the Company to hold the EGM on 29th December, 1995 in view of the Financial Collaboration Agreement executed with them by OASIL.

- RSA 833/2003 filed by PAIC against company for permanent injunction restraing the company from holding or modified the Articles of Association of the company and further restrain the company holding Extraordinary Annual General Meeting held on 29.12.1995.

- As informed to us that the suit filed for defamation/damages by M/S Vatsa Finance Ltd. of Rs. 150/500 crores has been dismissed for default by the court on 06.07.2001.

- Mr. B.B. Gupta has filed suit No. 219 of 1998 for recovery of dues.

- M/s. Mauve & Crimson Advertising Pvt. Ltd., New Delhi has filed a case for passing a decree of permanent injunction thereby restraining Omega Ag-Seeds (pb) Limited and Omega Agro Limited from taking forcible and illegal possession of flat at 7/18, Kalkaji Extension, New Delhi against recovery of Rs. 11.82 lacs from the Company.

- Civil suit no 81 of 2000 in the Distt. Court Chandigarh filed by Mr Teja Singh against the company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by company is dismissed. Company is in process to file appeal before Punjab and Haryana High Court at Chandigarh decided the appeal.

- Civil suit no 97 of year 2000 in the Distt. Court Chandigarh filed by MrTeja Singh against the company for recovery of Rs 2.07 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by company is dismissed. Company is in process to file appeal before Punjab and Haryana High Court at Chandigarh decided the appeal.

- Civil suit of year 2000 in the Distt. Court Chandigarh filed by Mr Gurinder Singh against the company for recovery of Rs 4.43 lacs in consideration of seeds supplied by him to the company. Decree passed, appeal filed by company is dismissed. Company is in process to file appeal before Punjab and Haryana High Court at Chandigarh decided the appeal.

- Civil suit no 82 of year 2000 in the Distt. Court Chandigarh filed by Mr Ravinder Singh against the company for recovery of Rs 50901.63/- in consideration of seeds supplied by him to the company and further appeals and rejoinders arising out of aforesaid Litigation. Decree passed, appeal filed by company is dismissed. Company is in process to file appeal before Punjab and Haryana High Court at Chandigarh decided the appeal.

 
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