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Notes to Accounts of Prime Industries Ltd.

Mar 31, 2014

1. Contingent liabilities

The Punjab State Industrial Development Corporation Limited (PSIDC) had contributed `88.50 Lacs in the equity share capital of Prime Industries Ltd @ `10/- per share, as Direct Equity Participation in 1993. The associates / promoters of Prime Industries Ltd. ,pledged shares of Prime Industries Ltd of `10/- each to PSIDC along with irrevocable power of attorney. The associates / promoters has also subscribed to the undertaking for buy back of the shares subscribed by PSIDC as referred above. As per the terms of undertaking for buy back of the shares, the associates / promoters are to buy the said shares at the face value along with interest applicable to terms financing before the expiring of seven years from the date of commencement of commercial production i.e.4th April, 1994. As per the term of the above referred undertaking, in case the associates / promoters do not buy back the shares subscribed by PSIDC, then the PSIDC is entitled to sell the shares subscribed by it and also recovers the loss if any by sale of the above referred shares pledged to the PSIDC. The PSIDC had announced OTS Policy for equity disinvestment. The associates / promoters have applied for buy back of shares under OTS policy, subject to their rights under the law to adjudicate upon the amount due under the buy back agreement However the government of Punjab has amended the one time settlement scheme whereby the profit making companies are not eligible for the OTS scheme as per industrial policy 2003. The PSIDC vide letter dated 29th April, 2009 has illegally withdrawn the OTS in case of Prime Industries Limited and the matter is sub judice before Honorable Punjab & Haryana High Court. The Government of Punjab has Further notified a new one time settlement scheme (OTS) vide notification number 15/03/09-AS-6/400 Dated 2nd March, 2009. The associates / promoters being eligible even under the new OTS policy also, have applied for buy back of shares. The request of associates / promoters has not been accepted by PSIDC and the matter is sub judice before Honorable Punjab & Haryana High Court. The associate Master Trust Ltd has already paid a sum of Rs. 2.51 crore to PSIDC in this regard but the PSIDC has made company as one of party in suit for Recovery filed with Debt Recovery Tribunal. . In view of the management the company has no liability as company is not party to buy back agreement.

2. (a) Balances of sundry debtors, loans & advances and creditors are subject to confirmation and reconciliation if any.

(b) The Company has pending suits for recovery against debtors/advances of Rs.37.00 lacs (previous year 37.00 lacs) for recovery of outstanding amounts. No provision has been considered necessary for these suits pending since in the opinion of management these debts are recoverable.

3. In the opinion of the Board, all the current assets, Loans & advances having the value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

4. Income from Sales,Purchase of securities,Land,Others include , Income from Land Rs.47.01Lacs (Preivious Year Rs. Nil), Misc Income Rs 0.35 Lacs(Previous Year Rs Nil),Profit/(loss) on Shares/Derivatives Trading (Rs. 31.59) Lacs (Previous Year (Rs. 126.37) Lacs) ,Profit/(loss) on Investment in Shares Rs. 8.84 Lacs(Previous Year Nil), Profit and Loss On Sale of Fixed Assets (Rs.15.43 Lacs) (Previous Year Nil)

5. The company is primarily engaged in Real Estate and allied activities and there are no separate reportable segments as per Accounting Standard (AS) 17 on "Segment Reporting".


Mar 31, 2013

1 Contingent liabilities

(a) Balances of sundry debtors , loans & advances and creditors are subject to confirmation and reconciliation if any.

(b) The Company has filed legal cases against debtors/advances of Rs.23.12 lacs (previous year 57.00 lacs) for recovery of outstanding amounts. No provision has been considered necessary for the cases filed in current year, since in the opinion of management these debts are recoverable.

2 (a) In the opinion of the Board, all the current assets, Loans & advances having the value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

3 Income from Sales, Purchase of securities, Land, Others include , Income from trading of Land Rs.Nil (Previous Year Rs. 33.89 Lacs), Misc Income Rs Nil (Previous Year Rs 0.02 Lacs),Profit/(loss) on Shares/Derivatives Trading (Rs. 126.37) Lacs (Previous Year (Rs. 0.32) Lacs)

4 The company is primarily engaged in Real Estate and allied activities and there are no separate reportable segments as per Accounting Standard (AS) 17 on "Segment Reporting".


Mar 31, 2012

1.1 Contingent liabilities

For the accounting year 2002-03, Excise & Taxation Department Patiala has issue a show notice to revision the Sales Tax liabilities of Rs. 90.02 lacs. The appeal has been decided in the favour of the company. The status of further appeal by department against the order of VAT tribunal Punjab is not clear as no intimation has been receieved from Department.

1.2 (a) Balances of sundry debtors , loans & advances and creditors are subject to confirmation and reconciliation if any.

(b) The Company has filed legal cases against debtors/advances of Rs.57.00 lacs (previous year 135.96 lacs) for recovery of outstanding amounts. No provision has been considered necessary for the cases filed in current year, since in the opinion of management these debts are recoverable.

1.3 (a) In the opinion of the Board, all the current assets, Loans & advances having the value on realization in the ordinary course of business at least equal to the amount at which they are stated except as expressly stated otherwise.

(b) The Shares of Sel Manufacturing Ltd have been valued at Cost of Rs.10.50 Crores, Market Value of which is Rs.1.67 Crore, The fall in opinion of management is temporary and hence no loss has been booked.

1.4 Income from Sales,Purchase of securities,Land,Others include, Income from trading of Land Rs.33.89 Lacs (Preivious Year Nil), Misc Income Rs.0.02 Lacs (Previous Year Nil),Profit/loss() on Shares/Derivatives Trading (Rs.0.32) Lacs (Previous Year (Rs. 10.97) Lacs), Insurance Claim Nil (Previous year Rs. 0.14 Lacs).

1.5 The company is primarily engaged in Real Estate and allied activities and there are no separate reportable segments as per Accounting Standard (AS) 17 on "Segment Reporting".

2 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.

 
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