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Notes to Accounts of Paramount Cosmetics (I) Ltd.

Mar 31, 2015

1. Cash Credit and term loan limits is secured by hypothecation of entire plant and machinery including all the assets being created under expansion and all the current assets of the Company, equitable mortgage of land, industrial building and plot of the company at Dabhel and Vapi, office premises of associate company at Bangalore, personal guarantee of Managing Director of the Company and corporate guarantee of associate company. Term Loan is repayable in 71 EMIs

2. related party disclosure

As Per Accounting Standard 18, the disclosure of transaction with the related parties are given below.

(i) List of Related parties where control exists with whom transaction have taken place and relationship:

Sr, Name of the Related Party Relationship No.

1 Hiitesh Topiiwaalla

2 Aartii Topiwaala Key Management Personal

3 Paramount Kum Kum Private Limited

4 Paramount Personal Care Private Limited

5 Parcos Brands Communication Private Associates Limited

6 PETL Exports Private Limited

3. contingent liabilities and commitments

1) Contingent Liabilities in respect of :

a. The sales tax matter in dispute with the Commissioner of Commercial Taxes, Surat, Gujarat, in respect of F.Y. 2005-06 is contested in appeal. On the similar issue in the earlier years and later years the decision was in favour of the Company.

b. Liability in respect of Letter of Credit opened with bank - Rs.38,32,617/- ( Previous Year Rs.94,33,194).

c. The estimated amount of contracts remaining to be executed on capital accounts (Net of Advance) and not provided for Rs.17,535,720/- (Previous Year Rs. 22,669,820).

2) Some of the Balances of Debtors, Creditors, Loans and Advances are subject to confirmation. Loss, if any, on account of this will be recongnised in the year in which confirmation are received.

3) In the opinion of the Board, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business, and provision for all known liabilities have been adequately made in the accounts.

4) Provision of Gratuity is made for those employees who have completed five year of their services.

5) The company operates in one segment only namely "Cosmetics Products", and transactions in geographical segment are not material, therefore the segment wise figures are not given.


Mar 31, 2014

The Previous year figures have been regrouped/reclassified, where necessary to conform to the current year presentation.

1. LONG TERM BORROWINGS

Vehicle Term Loan is secured against the hypothecation of vehicle. Refer note 6.1 for bank loan.

2. SHORT TERM BORROWINGS

Cash Credit and term loan limits is secured by hypothecation of entire plant and machinery including all the assets being created under expansion and all the current assets of the Company, equitable mortgage of land, industrial building and plot of the company at Dabhel and Vapi, office premises of associate company at Bangalore, personal guarantee of Managing Director of the Company and corporate guarantee of associate company.

3. TRADE PAYBLES

The details of amount outstanding to Micro, Small and Medium Enterprises: The Company is in the process of complying the information, hence no details are incorporated for current and previous years.

4. CASH AND BANK BALANCES

* Fixed deposits with bank includes NIL (P.Y. Rs. 5,16,462/-) deposit more than 12 months maturity.

* Fixed Deposits includes Margin Money Deposit Rs. 28,99,924/- (P.Y. Rs. 27,04,095/-) and NIL (P.Y. Rs. 1,66,75,000/-) stand as collateral security with Bank.

# Balance with Bank includes Unclaimed dividend of Rs. 6,54,321/- (P.Y. Rs. 4,22,621/-).

5. SHORT TERM LOAN AND ADVANCES

* Includes Advances to Suppliers Rs. 1,42,71,418/- ( P.Y Rs. 1,01,90,970/-) and Advance to Staff Rs. 21,51,471/- (P.Y. Rs. 19,51,978/-)

6. RELATED PARTY DISCLOSURE

As Per Accounting Standard 18, the disclosure of transaction with the related parties are given below.

(i) List of Related parties where control exists with whom transaction have taken place and relationship:

Sr. Name of the Related Party Relationship No.

1. Hiitesh Topiiwaalla Key Management 2. Aartii Topiwaala Personal

3. Paramount Kumkum Private Limited Associates

4. Paramount Personal Care Private Limited -"do"-

5. Parcos Brands Communication Private Limited -"do"-

6. PETL Exports Private Limited -"do"-

7. CONTINGENT LIABILITIES AND COMMITMENTS

1. Contingent Liabilities in respect of:

a. The sales tax matter in dispute with the Commissioner of Commercial Taxes, Surat, Gujarat, in respect of F.Y. 2005-06 of Rs. 57,640,954/=is contested in appeal. On the similar issue in the earlier years and later years the decision was in favour of the Company.

b. Liability in respect of Letter of Credit opened with bank - NIL (Previous Year Rs. 3,075,676).

c. The estimated amount of contracts remaining to be executed on capital accounts (Net of Advance) and not provided for Rs. 22,669,820/- (Previous Year Rs. 1,588,715).

2. Balances of Debtors, Creditors, Loans and Advances are subject to confirmation.

3. In the opinion of the Board, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business, and provision for all known liabilities have been adequately made in the accounts.

4. The future liability towards the payment of interest on Hire Purchase loans will be accounted as and when accrue.

5. The company operates in one segment only namely "Cosmetics Products", and transactions in geographical segment are not material, therefore the segment wise figures are not given.


Mar 31, 2013

Contingent liabilities are not recognized but are disclosed in the notes.

Contingent assets are neither recognized nor disclosed in the financial statements.

1 CONTINGENT LIABILITIES AND COMMITMENTS

1. Contingent Liabilities in respect of :

a. The sales tax matter in dispute with the Commissioner of Commercial Taxes, Surat, Gujarat, in respect of F. Y. 2005-06 is contested in appeal. On the similar issue in the earlier years the decision was in favour of the Company.

b. Liability in respect of Letter of Credit opened with bank - Rs. 30,75,676 ( Previous Year Rs.14,43,380).

c. The estimated amount of contracts remaining to be executed on capital accounts (Net of Advance) and not provided for Rs. 15,88,715 (Previous Year Rs. 3,67,67,090).

2. Balances of Debtors, Creditors, Loans and Advances are subject to confirmation.

3. In the opinion of the Board, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business, and provision for all known liabilities have been adequately made in the accounts.

4. The future liability towards the payment of interest on Hire Purchase loans will be accounted as and when accrue.


Mar 31, 2012

1.1 Cash Credit limit is secured by hypothication of entire plant and machinery and all the current assets of the Company, equitable mortgage of industrial plot of the company at Dabhel and Vapi, office premises of associate company at Bangalore, personal guarntee of a Director of the Company and corporate guarantee of associate company.

b. Liability in respect of Letter of Credit opened with bank - Rs.14,43,380( Previous Year Rs.63,96,866).

2 : Commitments of :

The estimated amount of contracts remaining to be executed on capital accounts (Net of Advance) and not provided for Rs. 3,67,67,090 (Previous Year Rs. 9,96,052).

3. Balances of Debtors, Creditors, Loans and Advances are subject to confirmation.

4. In the opinion of the Board, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business, and provision for all known liabilities have been adequately made in the accounts.

5. The future liability towards the payment of interest on Hire Purchase loans will be accounted as and when accrue.

6. The Company operates in one segment only namely"Cosmetics Products". And transactions in geographical segment are not material, therefore the segment wise figures are not given.

7 CONTIGENT LIABILITIES AND COMMITMENTS

1 : Contigent Liabilities in respect of :


Mar 31, 2010

1. CONTINGENT LIABILITIES IN RESPECT OF :- a) Guarantee given to Sales Tax Department for Rs. 50,000 (Previous Year Rs. 15,00,000)

b) Guarantee given to Corporates for Rs. 30,00,000. (Previous Year Rs. Nil)

c) The Sales Tax demand in dispute at various depots and contested in appeal.

Year 2009-2010 2008-2009 Forum

1992-1995 Rs.95,580 Rs.95,580 Commissioner( Appeals ) Daman

1999-2000 Rs.1,23,192 Rs.1,23,192 Board of Revenue, Guwahati

1998-1999 Rs.1,75,708 Rs.1,75,708 Board of Revenue, Guwahati

1997-1998 Rs.2,50,797 Rs.2,50,797 Board of Revenue, Guwahati

1996-1997 Rs.3,00,000 Rs.3,00,000 Board of Revenue, Guwahati



d) Claim not acknowledge as debts - Rs. 17,00,000/- (Previous year Rs. 17,00,000/-)

e) The estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. 20,85,818 (Previous Year Nil)

f) Letter of Credit of Rs. 12,86,299 (Previous Year Nil)

2. Balances of Debtors, Creditors, loans and advances are subject to confirmation.

3. In the opinion of the Board, the current assets, loans and advances are expected to realise atleast the amount at which they are stated, if realised in the ordinary course of business, and provision for all known liabilities have been adequately made in the accounts.

4. The provision for gratuity is made for those employees who have completed 5 years of their service.

5. Loans and Advances includes Advances & Deposits to Companies in which Directors are interested to the tune of Rs 6,05,602 (Previous Year Rs. 6,05,602), Maximum amount outstanding during the year was Rs 6,05,602 (Previ- ous Year Rs. 6,05,602 )

6. The future liability towards the payment of interest on Hire Purchase loans will be accounted as and when accrue.

7. The Company has valued its intellectual property at Rs.10,00,00,000/- as at 31st March 2006 and the same was then credited to Intellectual Property Equalization Fund. The value of the intellectual property as per report of the valuer M/s Joy Dalia & Co. Dt. 07.09.2007 is Rs.1384 Lacs. However the management has taken the value in the books at Rs.1000 Lacs.

8. The management has revalued Office Building at Andheri and Land and Factory Buildings at Vapi and Daman by M/s Neelam Technocraft, and M/s Mahalaxmi Associates as on 31.03.2007 respectively, the difference in the market value and the book value as on 31.03.2007 amounting to Rs. 1,88,79,148 has been credited to the revalua- tion reserve account and out of the revaluation reserve Rs. 1,53,54,555 was credited to the profit and loss account in the financial year 2006-07.

9. Micro, Small and Medium Enterprises Dues

The Company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act has not been given.

10. There is no amount due and outstanding as on 31st March, 2010 to be credited to Investor Education and Protection Fund.

11. The company operates in one segment only, namely "Cosmetics Products." And transactions in geographical seg- ment are not material; therefore the segment wise figures are not given.

12. Deferred Tax :- Accounting Standard No.22 "Accounting for tax on Income" issued by Institute of Chartered Accoun- tants of India, there is a net deferred tax assets amounting to Rs.44,75,364/- (Previous Year deferred tax assets Rs. 1,12,49,994) on account of accumulated business losses and unabsorbed depreciation up to 31.3.2010 which is not accounted for.

In compliance with provisions of Accounting Standard and based on General

Prudence, the Company has not recognized the deferred tax assets while preparing the accounts of current year, the provision for the current year has been made only for MAT liability in view of unabsorbed brought forward losses. The deferred tax on the same has not been accounted for.

13. RELATED PARTY DISCLOSURES:

(As identified by Management)

Name of the party and relationships

a) Companies and firms in which Directors/Directors Relatives exercise control / significant influence:

Companies Firms

Shingar Limited Paramount Products

Paramount Kumkum Private Limited

b) Key management personnel

B.D.Topiwala – Chairman

Hitesh Topiwala – Managing Director

c) Relatives of key management personnel

Ms. Aarti H. Topiwala

14. Income Tax

The Company has paid Income Tax as per the Minimum Alternate Tax (MAT). The company is entitled to carry forward and set off the MAT paid against the income tax in subsequent years. In 2009-10 the company has credited to the profit and loss account MAT credit of Rs. 21,05,797 relating to the financial year from 2005-06 to 2008-09.

15. Previous years figures have been regrouped / rearranged wherever necessary so as to make them comparable with the figures of the current year.

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