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Notes to Accounts of Organic Coatings Ltd.

Mar 31, 2015

1. Corporate information

The Company was incorporated on 22nd April, 1965 as a Private Limited company limited by shares. It was converted in Public Limited company in the year 1995. It has its Registered office in Mumbai and manufacturing facility at village Umaraya, Taluka-Padra, Dist- Vadodara,Gujarat, India. The company is engaged in the business of manufacturing and trading in Printing Inks & Allied products. The company sells its products across India and to other countries.

2. The Company does not have different segments and hence segment wise reporting in terms of the Accounting standard (AS) 17 "Segment Reporting" issued by the Institute of the Chartered Accountant of India is not applicable.The Company mainly deals printing inks and auxiliaries which is considered as a one segment only. Geographical segment is not material and hence not required to disclose separately

3.1. In terms of Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has Deferred Tax Assets as on 31st March 2015. In terms of the said Standard, in view of unabsorbed depreciation and unabsorbed business losses under the tax laws, net result of computation is net deferred tax assets. Hence, the management has decided not to incorporate the same in the books of accounts as a matter of prudence and in absence of virtual certainty as to its realization.

4. In the opinion of the management, current and non current assets are recoverable in normal course of the Business.

5. The provisions of the section 135 in respect of corporate social responsibility is not applicable to the company as company is not falling under any criteria of the said provisions.

6. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2013

1. The Company does not have different segments and hence segment wise reporting in terms of the Accounting standard (AS) 17 "Segment Reporting" issued by the institute of the Chartered Accountant of India is not applicable.

2. The Company has entered in to memorandum of understanding on 18th April, 2013 for sale of land and Building of its factory situated at S V Road, Ghodbunder Village, Post- Mira Road. Dist-Thane-401104 for consideration of (Rs.)15.50 Crores. The formalities of transfer of the titles would be competed on receipt of the sales consideration.

3. The Borrowing cost of (Rs.).Nil (Previous year (Rs.).21,62,212/-) is capitalised in fixed assets/capital or in Progress in terms of the Accounting standard (AS) 16 "Borrowing Cost" issued by the institute of the Chartered Accountant of India.

4. No Provision for the Income Tax has been made in view of the losses of the Company.

5. In terms of Accounting Standard 22- "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has Deferred Tax Assets as on 31st March 2013. In terms of the said Standard the Management has decided not to incorporate the same in the books of accounts, considering the future taxable income available for realisation of this Differed Tax Assets.

6. CONTIGENT LIABILITIES AND COMMITMENTS

Particulars As At As At 31st March 2013 31st March 2012 (Rs.) (Rs.)

(I) Contingent Liabilities Nil Nil

(II) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for

- Tangible Assets Nil Nil

- Intangible Assets Nil Nil

(b) Other Commitments

- Bank Guarantee 39,46,500 38,46,500

- Sales Tax liability for Non Receipt of "C" and "F" Form - 1,89,739

- Sales Tax Appeal liability - 5,04,647

- Local Body Tax of Mira Bhyandar Mahanagarpalika 77,80,963 77,80,963



7. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1.1 Terms/Rights attached to Equity Shares

The Compnay has only one class of Equity Shares having a par value of (Rs.) 10/- per share. Each holder of the Equity shares is entitled to one vote per share. The Company declares and pays dividends in indian rupees and every equity share is entitled to the same rate of dividend.

2.1 The Term Loan on Plant and Equipment are secured by Equitable mortgage of Factory Land and Building and hypothecation of Plant and Equipment at S V Road, Ghodbunder Village, Post Mira Road, District - Thane and at Village Umraya, Taluka-Padra, District- Vadodara. These loans are further guaranteed by one of the director in his personal capacities.

2.2 The Vehicles loans are secured bv hvDOthecation of Vehicles.

3.1 In terms of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Instititue of Chartred Accountants of India, the Compny has Deferred Tax Assets as on 31st March 2012. In terms of the said Standard, the Management has decided not to incorporate the same, in the books of accounts, considering' the future taxable income available for realisation of this Deffrered Tax Assets.

4.1 The Working Capital Loan are secured by hypothecation of the inventory and trade receivables, Equitable mortgage of Factory land and Building and hypothecation of Plant and Equipment at S V Road, Ghodbunder Village, Post Mira Road, District -Thane and at Village Umraya, Taluka-Padra, District- Vadodara. These loans are further guaranteed by one of the director in his personal capacities.

5.1 The Company has not received any intimation from suppliers regarding status under "Micro, Small and Medium Enterprises Development Act, 2006" and hence, disclosure, if any relating to amounts unpaid as at the end of year together with interest paid/payable as.required under the said act has not been given.

6. The Company does not have different segments and hence segment wise reporting in terms of the Accounting standard (AS) 17 "Segment Reporting" issued by the institute of the Chartered Accountant of India is not applicable.

7. The Borrowing cost of (Rs.) 21,62,212/- (Previous year (Rs.) 24,13,002/-) is capitalised in fixed assets/capital or in Progress in terms of the Accounting standard (AS) 16 "Borrowing Cost" issued by the institute of the Chartered Accountant of India.

8. No Provision for the Income Tax has been made in view of the losses of the Compnay.

9. Year end Balances of payables/receivables of the parties which are subject to confirmation/reconciliation impact of which on the profit/loss and on the assets/liabilities, if any is not ascertainable.

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for -Tangible Assets Nil 3,39,90,287 -Intangible Assets Nil Nil

(b) Other Commitments

- Bank Guarantee 38,46,500 38,46,500

- Sales Tax liability for Non Receipt of "C" and T" Form 1,89,739 1,89,739

- Sales Tax Appeal liability 5,04,647 - Nil

- Local Body Tax of Mira Bhyandar Mahanagarpalika 77,80,963 Nil

10. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1. On payment of balance price of 90% of the Issue price, the share warrants holders have exercised their rights to apply for 769840 Equity Shares and accordingly 769840 Equity Shares of Rs. 10/ each were allotted during the year @ a premium of Rs. 4/ per share.

2. The company had revalued its Fixed Assets viz. Land, Factory Building, Plant & Machinery, Office Premises & Furniture Fixtures based on valuation reports of approved valuers as on 31st March, 1994. The difference between the fair market value and written down value as on 31st March, 1994 amounting to Rs. 3,70,68,059/ was credited to Revaluation Reserve.

3. (a) Term Loan for Plant& Machinery and Working Capital facilities from Bank of Maharashtra are secured by first charge against mortgage of Land & Building, Hypothecation of Plant & Machinery, Stockin trade and Book Debts and are further guaranteed by some of the Directors in their personal Capacities.

(b) Vehicle loans are secured by hypothecation of vehicles.

4. Contingent Liabilities not provided for:

Year ended Year ended

31 st March 2011 31stMarch2010

Rupees Rupees

(a) Against Capital Expenditure ( net of Advances) 3,39,90,287 5,75,500

(b) Against Nonreceipt of C & F Forms 1,89,739 10,51,048 6. (i) Loans and Advances includes

Advances for Capital Expenditure 2,43,46,588 7,48,410

Statement showing computation of net profits in accordance with Section 349 of the Companies Act, 1956 with relevant details of the calculation of the commission payable by way of percentage of such profits to the Directors is not given as there is a loss during the year.

5. The Company has not received any intimation from suppliers regarding their status under" Micro, Small and Medium Enterprises Development Act, 2006", and hence, disclosures, if any relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act has not been given.

6. The Company does not have different segments and hence segment wise reporting in terms of Accounting Standard Segment Reporting (AS17) issued by the Institute of Chartered Accountants of India is not applicable.

7. In terms of Accounting Standard regarding Related Party Disclosures (AS18) issued by the Institute of Chartered Accountants of India the Related Party transactions are as under:

In view of Accounting Standard interpretation (ASI) 21 issued bythe Institute of Chartered Accountants of India payments to Non Executive Directors are not included in the above details.

8. The Company follows AS22'Accounting for Taxes on Income'issued by the Institute of Chartered Accountants of India and provision for the same has been made accordingly in the Books of Accounts. Deferred Tax is recognised subject to the consideration of prudence for timing differences between the book profits and Tax profits and is accounted for using the tax rates and laws that have been enacted. Deferred Tax Assets arising from the timing differences are recognised to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred asset can be realised.


Mar 31, 2010

1. (a) On payment of 90% of the issue price and in terms of the requisite approval and the provisions Of Chapter XIII of the Sebi (Disclosure and Investment protection) guidelines 2000, the Company has allotted 230160 Equity Shares of Rs. 10/- each to share warrant holders @ premium of Rs. 4/- per share.

(b) 769840 share warrants of Rs. 14/- each on which Rs. 1.40 (10%) is received as a application money aggregating to Rs. 1,07,77,760/-, have a right to apply for one equity shares of the company on payment of balance price of 90% of the Issue price on before expiry of eighteen months from the 12th November, 2008 in one and more tranches.

2. The company had revalued its Fixed Assets viz. Land, Factory Building, Plant & Machinery, Office Premises & Furniture Fixtures based on valuation reports of approved valuers as on 31st March, 1994. The difference between the fair market value and written down value as on 31st March, 1994 amounting to Rs. 3,70,68,059/- was credited to Revaluation Reserve.

3. (a) Term Loan for Plant & Machinery and Working Capital facilities from Bank of Maharashtra are secured by first charge against mortgage of Land & Building, Hypothecation of Plant & Machinery, Stock-in-trade and Book Debts and are further guaranteed by some of the Directors in their personal Capacities.

(b) Vehicle loans are secured by hypothecation of vehicles.

4. Contingent Liabilities not provided for:

Year ended Year ended

31st March, 2010 31st March, 2009

(a) Against Capital Expenditure 5,75,500 -

(b) Against Non-receipt of C & F Forms 10,51,048 4,89,660

(c) Disputed Income Tax Demands - 11,33,960

5. UnderThe Micro, Small and Medium Enterprises DevelopmentAct, 2006", the Company has not received any intimation from any of its suppliers regarding their status under the said Act.

6. The Company does not have different segments and hence segment wise reporting in terms of Accounting Standard Segment Reporting - (AS-17) issued by the Institute of Chartered Accountants of India is not applicable.

7. The Company follows AS-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India and provision for the same has been made accordingly in the Books of Accounts. Deferred Tax is recognised subject to the consideration of prudence for timing differences between the book profits and Tax profits and is accounted for using the tax rates and laws that have been enacted. Deferred Tax Assets arising from the timing differences are recognised to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred asset can be realised.

 
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