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Notes to Accounts of Procal Electronics India Ltd.

Mar 31, 2014

CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF

As at 31-Mar-14 As at 31-Mar-13 (Rs. In Lacs) (Rs. In Lacs)

a) Bills of exchange discounted and 90.30 90.30 not matured

Since realised NIL NIL

b) Demand of Central Excise And Custom * 165.02 165.02 * In View of closure of the unit II of Silvassa & non fulfillment of export obligations the Commissioner of Central Excise & Customs has raised a demand amounting to Rs. 1,65,20,069/- vide their order dt. 18.10.2004 towards various duties, fine & penalty. The company has filed an appeal against above order before the Central Excise Tribunal (CEGAT), which is still pending.

1 The Accounts of the company are prepared on going concern basis despite the fact that it has not carried out any manufacturing or trading activities since last few years and has incurred substantial cash losses during the year and in earlier years. Company''s manufacturing unit at Silvassa alongwith other assets such as fixed assets, inventories etc. are under control of it''s banker Canara Bank in view of the loans taken from bank and GSFC which have been classified as NPA due to non payment of outstanding dues. Canara Bank has issued notice to company & guarantors under the securitization Act, one of the guarantor has appealed the said notice with DRT. The legal matter with bank is still not settled and is under progress.

2 No provision has been made in the accounts for the interest liability on various loans from Canara Bank & GSFC since the year 2004, as the Loan account have been classified as NPA by the company''s bankers Canara Bank and GSFC and accordingly stopped charging interest. As such the the interest liabilities amounting to Rs. 199.64 Lacs App. On Outstanding Liabilities ( Previous Year Rs. 199.64 Lacs) and cumulative since the year 2004 of Rs. 1620 Lacs App.(previous Year Rs.1421Lacs)have not been provided in the books of accounts.

In view of above the current year''s loss is understated by Rs. 199.64 Lacs and the total cumulative Loss ( negative reserve) is understated by Rs. 1620 Lacs.

3 No provision has been made for doubtful debts of Rs. 70,182,41 1/-

4 No provision has been made for interest/penalty for contravention of certain fiscal statues/rules.

5 During the year no business activities have been carried out by the Company. As such, there is no reportable segment under Accounting Standard-AS 17 on ‘Segment Reporting''.

6 Since the company has not taken any step to disposed off assets on account of reasons stated in Note No 19, the reporting under Accounting Standard AS-24 ‘Discontinuing Operations'' is not applicable to the company.

7 Disclosure as required by Accounting Standard - AS 18 "Related Parties", issued by the Institute of Chartered Accountants of India.

8 Disclosure as required by Accounting Standard - AS 20 "Earning Per Share", issued by the Institute of Chartered Accountants of India

The Company has not issued any potential diluted equity share and therefore the Basic and Diluted earning per Share will be the same. The earning per share is calculated by dividing the profit after tax by weighted average number of shares outstanding.

9 As per Accounting standard -22 " Accounting for taxes on Income " issued by ICAI, the company considering the present financial position and requirement of accounting standard regarding certainty/virtual certainty the Company has not recognised the deferred taxes Assets on account of brought forward/current year losses and depreciation differences.

10 In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

11 The Company has pledged FDR of Rs.10000/- with its bankers against bank guarantees given to Sales tax authorities.

12 Balances of Loans,Advances,Sundry Debtors,Sundry Creditors are subject to confirmation and reconciliation,if any.

13 Previous years figures have been regrouped and rearranged wherever necessary.


Mar 31, 2010

1 The Company has pledged FDR of Rs. 10,000/- with its bankers against bank guarantees given to Sales Tax Authorities.

2) In opinion of the Board of Directors all the current assets, loans & advances have value on realisation at least the value of an amount equal to the amount at which they are stated in the Balance Sheet.

3) Balances of Loans, Advances, Sundry Debtors, Sundry Creditors are subject to confirmation and reconciliation, if any.

4) Previous years figures have been regrouped/rearranged wherever necessary.

5) Additional information pursuant to paragraphs 3,4,4 A,4C and 4D of Part II & Part IV of Schedule VI of the Companies Act, 1956.

6) Contingent Liabilities not provided in respect of: -

Year ended Year ended

31.03.2010 31.03.2009

(Rs. In lacs) (Rs. In Lacs)

a) Bills of exchange discounted and not matured 90.30 90.30 Since realised. NIL NIL

b) Demand of Central Excise and Custom 165.02 165.02

7) During the year under report the company has not carried out any trading or manufacturing activity. The company has incurred substantial losses during the year and in previous year.

Despite of above, the accounts of the company are prepared on going concern basis, as the management is still hopeful of reviving the business by starting the trading & agency business.

8) No provision has been made in the accounts for the interest liability on various Bank & GSFC Loans amounting to App. Rs. 256.46 Lacs as the loan accounts have been classified as NPA by the Companys bankers Canara Bank and accordingly stopped charging interest. The company is negotiating with the bank/GSFC and the liability if any shall be provided in the year of settlement. In view of this the companys loss for the year is understated by Rs. 256.46 lacs.

9) In View of closure of the unit II of Silvassa & non fulfilment of export obligations the Commissioner of Central Excise & Customs has raised a demand amounting to Rs. 1,65,20,069/- vide their order dt. 18.10.2004 towards various duties, fine & penalty. The company has filed an appeal against above order before the Central Excise Tribunal (CEGAT).

10) Companys banker has issued notice to company & guarantors under the securitisation Act, one of the guarantor has appealed the said notice with DRT.

11) Sundry Debtors includes the payment effected to the Consignor by the Company on behalf of its customers in relation to Consignment Agency business in earlier years.

12) No provision has been made for interest /penalty for contravention of certain fiscal statutes/rules.

13) As per Accounting standard-22. "Accounting for taxes on Income "issued by ICAI, the company considering the present financial position and requirement of accounting standard regarding certainty /virtual certainty the Company has not recognised the deferred taxes Assets on account ofbrought forward/current year losses and depreciation differences.

14) During the year there is no business activity carried on by the company. As such there is no separate reportable segment under AS-17 on segment reporting.

15) Related Party disclosure as required by AS-18 issued by ICAI

Relationships

A) Directors

Shri Mahendrakumar Bothra

Shri Dharmendra Sharma

 
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