Mar 31, 2015
1. Nature of operations
The Rubber Products Limited is primarily engaged in the business of
manufacturing rubber products.
2. Consistent with the past prsuice, no provision has been made for
excise duty estimated at Rs.911389/- {Previous Year Rs.624468/-) on
stock lying at the year end. Accordingly the said amounts are not
included in the inventory valuation. This has no effect on the profit
for the year Though the said accounting treatment differs from the
revised "Guidance Note on Accounting treatment for Excise Duty " issued
by the iCAL The Company is of the view that the excise duty is
effectively not payable till the manufactured goods are removed from the
factory premises.
3. Contingent Liability not provided for:
(In Rupees)
2014-15 2013-14
(a) Guarantees given by Bank on behalf
of the Company 2,56,559/- 9,37,346/-
(b) Letters of Credit issued by Bank on
behalf of the Company 1,08,48,967/- 92,61,204/-
(c) Excise - Rubberised Textile Fabric/
Furnace Oil (including Penalty) 68,91,001/- 6891001/-
(d) Excise - Rubberised Coated Fabrics -
Ordiance Parachute Factory, Kanpur 2,06,995/- 2,06,995/-
(e) Excise - Silicone Transparent Tubing
under 9018 instead of 3917
(including Penalty) 74,14,244/- 74,14,244/-
(f) Sales Tax FY 200S-09 (CST & MVAT)(Ex-
parte order based on Sales &
Purchase no set off has been
considered) 6,06,61,949/- -
Sales Tax FY 2009-10 (CST & MVAT) 29,29,854/- 29,29,854/-
Sales Tax FY 2010-11 (CST & MVAT) 31,49,093/-
Income Tax A.Y. 2011-12 76,31,740/- 76,31,740/-
4. Pursuant of the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (B1FR) vide order dated 23.5.96
Company had joined as Co-Promoters in The Cosmos India Rubber Works (P.)
Ltd. during the year 1996-97. terms of the said scheme, the company had
invested Rs.21.00 lacs by way of Share Capital in the erstwhile
subsidiary compay . The amount outstanding from the said Company as
Loans & Sundry Debtors are Rs.25,00,000/- ( Previous Year rs
26,73.744/-) & Rs.1,41,60,252/- (Previous Year Rs. 1,39,57,567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1)(o) of Sick Industrial Companies (Special
Provisions) Act, 1985 and BIFR, vide order dt8.09.2010 have recommended
winding of the said. This order of BIFR was set aside by AAIFR vide it's
order dated 06.09.2012 and also directed BIFR to consider the scheme
submitted by The Cosmos India Rubber Works (P.) Ltd of Revival cum
merger with the Company.
The said Company has since suspended manufacturing activities and the
chances of immediate recovery of the Company's dues are doubtful.
However, No provision has been made in view of pending final decision
by BIFR on revival Scheme.
5. Sundry Debtors are subject to confirmation and include some debts,
which are overdue. It includes dues from Railways, Govt. Depts/PSU
etc. No provision has been made for doubtful debts.
6. With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act, is under process of
being worked out as the details relating to their status are being
called for.
7. Gratuity Provision:
As per the working of Independent Actuarial Valuer M/s K.A. Pundit, the
Projected Benefit Obligations of the Company in respect of gratuity
benefits as on 31.03.2015 is Rs 127.68 lacs, against which the Company
has made provision of Rs 99.75 lacs and for the the balance Rs 28.33
lacs no provision has been made. As per LIC Fund available is Rs.,0.32
lacs, hence gratuity fund available with LIC is not sufficient to cover
up existing gratuity liability to the extent of Rs.127.36 lacs. To the
extent of shortfall of, Rs. 28.33 lacs the provisions of the revised
AS-15 are not compiiad with the gratuity LIC policy has been lapsed and
the management is in process of renewing the same
Defined Benefit Plan
The employee's gratuity fund scheme managed by a Trust(Life Insurance
Corporation of Indians a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to built up the final obligation.
8. Provisions for Leave Encashment:
Company -as retained the policy as per last year relating to Leave
encashment with regard to staff/managers and accordingly provisions for
leave is revised from Rs. 5,72,934/- as on 31.3.2014 to Rs. 8,64,770/-
as on 31.3.2015, as per which an employee is eiigible for maximum of 15
days leave only if he has more than 60 days of accumulated leave.
Accordingly has made provision for only 15 days. This was done based on
assumption that an employee will be availing of at ess; 30"days of
leave during the year. This is applicable to both staff as well as
workers.
provision is made of Rs.18 lacs in the previous year on account
of interest payable to one of the associate concern of M/S B Fouress
Pvt. Ltd., Loss will increase to that extent.
9. No provision is made for service tax payable on GTA and Other
services which are payable on RCM, quantum of liability is not worked
out.
Mar 31, 2014
1. Nature of operations
The Rubber Products Limited is primarily engaged in the business of
manufacturing rubber products.
2. Contingent Liability not provided for:
In Rupees
2013-14 2012-13
(a) Guarantees given by Bank on behalf of the
Company 4,73,681/- 9,37,346/-
(b) Letters of Credit issued by Bank on behalf
of the Company 76,77,430/- 92,61,204/-
(c) Excise - Rubberised Textile Fabric/Furnace
Oil (including Penalty) 68,91,001/-
(d) Excise - Rubberised Coated Fabrics -
Ordiance Parachute Factory, Kanpur. 2,06,995/-
(e) Excise - Silicone Transparent Tubing
under 9018 instead of 3917 74,14,244/- 37,07,122/-
(including Penalty)
(f) Pending legal matters related to
employees, supplier not quantified Nil Nil
because of insignificant & uncertainty of
amount.
(g) Sales Tax FY 2009-10 (CST & MVAT) 29,29,854/- Nil
(h) Income Tax A.Y. 2011-12 76,31,740/-
(i) No provision is made for amount payable
for wages to the employees Nil 8,27,001/
for the period of their illegal strike.
3. Pursuant to the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (BIFR) vide order dated 23.5.96
the Company had joined as Co-Promoters in The Cosmos India Rubber Works
(P.) Ltd. during the year 1996-97. In terms of the said scheme, the
company had invested Rs.21.00 lacs by way of Share Capital in the
erstwhile subsidiary Company. The amount outstanding from the said
Company as Loans & Sundry Debtors are Rs.25,00,000/- ( Previous Year
Rs.25,00,000/-) & Rs.1,41,31,311/- (Previous Year Rs. 1,39,57,567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1 )(o) of Sick Industrial Companies (Special
Provisions) Act, 1985 and BIFR, vide order dt. 08.09.2010 have
recommended winding of the said. This order of BIFR was set aside by
AAIFR vide it''s order dated 06.09.2012 and also directed BIFR to
consider the scheme submitted by The Cosmos India Rubber Works (P.) Ltd
of Revival cum merger with the Company.
The said Company has since suspended manufacturing activities and the
chances of immediate recovery of the Company''s dues are doubtful.
However, No provision has been made in view of pending final decision
by BIFR on revival Scheme.
4. Sundry Debtors are subject to confirmation and include some debts,
which are overdue. It includes dues from Railways, Govt. Depts/PSU
etc. No provision has been made for doubtful debts.
5. With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act, is under process of
being worked out as the details relating to their status are being
called for.
6. Gratuity Provision: As per the working of Independent Actuarial
Valuer M/s KAPundit, the Projected Benefit Obligations of the Company
has in respect of gratuity benefits as on 31.03.2014 is Rs 109.99 lacs
, against which the Company has made provision of Rs 93.25 lacs and for
the the balance Rs 16.74 lacs. As per LIC Fund available is Rs. 3.42,
hence gratuity fund available with LIC is not sufficient to cover up
existing gratuity liability to the extent of Rs. 106.57 lacs. To the
extent of the shortfall of Rs. 16.74 lacs the provisions of the revised
AS 15 are not complied with. The Gratuity LIC policy has been lapsed
and the management is in the process of renewing the same.
Defined Benefit Plan
The employee''s gratuity fund scheme managed by a Trust (Life Insurance
Corporation of India) is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors, mainly the composition of Plan assets held,
assessed risks, historical result of return on plan assets and the
Company''s policy for plan assets management.
7. Provisions for Leave Encashment: Company has retained the policy as
per last year relating to Leave encashment with regard to
staff/managers and accordingly provisions for leave is revised from
Rs.5,21,715/- as on 31.3.2013 to Rs.5,72,934/- as on 31.3.2014, as per
which an employee is eligible for maximum of 15 days leave only if he
has more than 60 days of accumulated leave. Accordingly company has
made provision for only 15 days. This was done based on assumption that
an employee will be availing of at least 30 days of leave during the
year. This is applicable to both staff as well as workers.
8. The Management had noticed in the earlier years irregularities in
the purchase activities and after investigation some of the employees
were found involved in manipulation of rate of supplies by one of the
vendor, the Company filed a criminal complaint against supplier and
some of its employees and the matter is under investigation.
9. The previous year figures have been regrouped / reclassified
wherever necessary to confirm to the current year presentation.
Mar 31, 2013
1.Nature of operations
The Rubber Products Limited is primarily engaged in the business of
manufacturing rubber products.
2. Consistent with the past practice, no provision has been made for
excise duty estimated at Rs. 7.40,235/- (Previous Year Rs. 17,24,215/-)
on stock lying at the year end. Accordingly the said amounts are not
included in the inventory valuation. This has no effect on the profit
for the year. Though the said accounting treatment differs from the
revised " Guidance Note on Accounting treatment for Excise Duty "
issued by the ICAI. The Company is of the view that the excise duty is
effectively not payable till the manufactured goods are removed from
the factory premises.
3. Consistent with the past practice, for valuing Raw Material Company
has followed inclusive method (all Taxes have been included) instead of
exclusive method as suggested in AS-2 (Revised) on "Valuation of
Inventory". However this will have no impact on current year Profit and
Loss account as same method is followed consistently.
4. Deferred Tax:
(a) During the year ending 31.03.2002, the Company adopted Accounting
Standard 22- ''Accounting for taxes on income.'' The accumulated amount
of deferred tax liability as at 31.03.2001 of Rs. 1,05,50,000/- was
recognized as a charge to General Reserve on 1.4.2001. The deferred tax
asset in relation to provision for leave encashment accumulated amount
as at 31.03.2001 of Rs. 9,00,560 is adjusted in General Reserve during
the year ending 31.03.2005. (b) Deferred Tax Liability/(Assets) Net
comprises of tax effect of timing differences on account of:
5. Contingent Liability not provided for: In Rupees
2012-13 2011-12
(a) Guarantees given by Bank on
behalf of the Company 9,37,346/- 17,87,131/-
(b) Letters of Credit issued by Bank
on behalf of the Company 92,61,204/- 62,75,000/-
(c) Excise duty demand disputed
in Appeal 5,84,306/- 5,84,306/-
(d) Pending legal matters related to
employees, supplier not quantified
because of insignificant &
uncertainty of amount. 3707122/- 0
(e) No provision is made for amount
payable for wages to the employees
for the period of their illegal
strike. 8,27,001/- 8,27,001/-
6. Pursuant to the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (BIFR) vide order dated 23.5.96
the Company had joined as Co-Promoters in The Cosmos India Rubber Works
(P.) Ltd. during the year 1996-97. In terms of the said scheme, the
company had invested Rs.21.00 lacs by way of Share Capital in the
erstwhile subsidiary Company. The amount outstanding from the said
Company as Loans & Sundry Debtors are Rs.25,00,000/- ( Previous Year
Rs.25,00,000/-) & Rs.1,39,57,567/- (Previous Year Rs. 1,39,57,567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1)(o) of Sick Industrial Companies (Special
Provisions) Act, 1985 and BIFR, vide order dt. 08.09.2010 have
recommended winding of the said. This order of BIFR was set aside by
AAIFR vide it''s order dated 06.09.2012 and also directed BIFR to
consider the scheme submitted by The Cosmos India Rubber Works (P.) Ltd
of Revival cum merger with the Company. The said Company has since
suspended manufacturing activities and the chances of immediate
recovery of the Company''s dues are doubtful. However, No provision has
been made in view of pending final decision by BIFR on revival Scheme.
7. Sundry Debtors are subject to confirmation and include some debts,
which are overdue. It includes dues from Railways, Govt. Depts/PSU etc.
No provision has been made for doubtful debts.
8. With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act, is under process of
being worked out as the details relating to their status are being
called for.
9. Gratuity Provision : As per the working of Independent Actuarial
Valuer M/s K.A.Pundit, the Projected Benefit Obligations of the Company
has in respect of gratuity benefit s as on 31.03.2013 is Rs 116.80
lakhs , against which the Company has made provision of Rs 88.33 lakhs
and for the the balance Rs 28.47 lakhs , according to the Management
Certificate , the same will be covered by the gratuity fund available
with LIC for which no certificate has been issued by LIC and in the
absence of this certificate the shortfall in the provision if any,
cannot be quantified and hence not provided in the books. To the extent
of the shortfall if any, the provisions of the revised AS 15 are not
complied with.
10. Provisions for Leave Encashment: Company has changed policy
relating to Leave encashment with regard to staff/managers and
accordingly provisions for leave is revised from Rs.7,71,782 as on
31.3.2012 to Rs.5,21,715 as on 31.3.2013 , as per which an employee is
eligible for maximum. of 15 days leave only if he has more than 60
days of accumulated leave. Accordingly company has made provision for
only 15 days. This was done based on assumption that an employee will
be availing of at least 30 days of leave during the year. This is
applicable to both staff as well as workers.
11. The Management had noticed in the earlier years irregularities in
the purchase activities and after investigation some of the employees
were found involved in manipulation of rate of supplies by one of the
vendor, the Company filed a criminal complaint against supplier and
some of its employees and the matter is under investigation.
Mar 31, 2012
1. Nature of operations
The Rubber Products Limited is primarily engaged in the business of
manufacturing rubber products.
2. Consistent with the past practice' no provision has been made for
excise duty estimated at Rs. 9'95'283/- (Previous Year Rs. 569477/-) on
stock lying at the year end in bonded warehouses and accordingly the
said amounts are not included in the inventory valuation. This has no
effect on the profit for the year. Though the said accounting treatment
differs from the revised à Guidance Note on Accounting treatment for
Excise Duty à issued by the ICAI; the Company is of the view that the
excise duty is effectively not incurred / payable till the manufactured
goods are cleared / removed from the factory premises.
3. Consistent with the past practice' for valuing Raw Material Company
has followed inclusive method (all Taxes have been included) instead of
exclusive method as suggested in AS-2 (Revised) on ÃValuation of
Inventory". However this will have no impact on current year Profit and
Loss account as same method is followed consistently.
4. Deferred Tax:
(a) During the year ending 31.03.2002' the Company adopted Accounting
Standard 22- 'Accounting for taxes on income.Ã The accumulated amount
of deferred tax liability as at 31.03.2001 of Rs. 1'05'50'000/- was
recognized as a charge to General Reserve on 1.4.2001. The deferred tax
asset in relation to provision for leave encashment accumulated amount
as at 31.03.2001 of Rs. 9'00'560 is adjusted in General Reserve during
the year ending 31.03.2005.
(b) Deferred Tax Liability/(Assets) Net comprises of tax effect of
timing differences on account of:
5. Pursuant to the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (BIFR) vide order dated 23.5.96
the Company had joined as Co-Promoters in The Cosmos India Rubber Works
(P.) Ltd. during the year 1996-97. In terms of the said scheme' the
company had invested Rs.21.00 lacs by way of Share Capital in the
erstwhile subsidiary Company. The amount outstanding from the said
Company as Loans & Sundry Debtors are Rs.25'00'000/- ( Previous Year
Rs.25'00'000/-) & Rs. 39'57'567/- (Previous Year Rs. 1'39'57'567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1)(o) of Sick Industrial Companies (Special
Provisions) Act' 1985 and BIFR' vide order dt. 23.5.1996 had sanctioned
revival scheme under Section 17(3) of the said Act. BIFR in the hearing
dated 01.09.2010 issued order for winding up of Cosmos. Against the
said order for winding up passed by BIFR the Company has filed an
appeal before Appellate Authority for Industrial and Financial
Reconstruction (AAIFR)' the matter is pending before AAIFR.
6 Sundry Debtors are subject to confirmation and include some debts'
which are overdue. It includes dues from Railways' Govt. Depts/PSU etc.
No provision has been made for doubtful debts. as these are considered
good & recoverable.
7. With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act' is under process of
being worked out as the details relating to their status are being
called for.
8. Gratuity Provision : Until 31.3.2011' provisions in the books of
account were made based on the statement of Premium received from the
LIC. In the current F Y' total amount payable as per LIC was
Rs.8590754. The Company felt that this valuation of LIC was on a higher
side and therefore decided to obtain a detailed valuation from an
independent Actuarial Valuer. The provision of Rs.7639521 is based on
actuarial valuation done by M/s. K A Pandit. LIC' inspite of reminders
did not furnish the working of PV. The Company is required to make
provision based on the actuarial valuation that can be from any
independent actuary and need not be only from LIC. There is no change
in system of accounting.
9. Provisions for Leave Encashment: Company has changed policy
relating to Leave encashment with regard to staff/managers and
accordingly provisions for leave is revised from Rs.1460376 as on
31.3.2011 to Rs.771782 as on 31.3.2012. As per which an employee is
eligible for max. of 15 days leave only if he has more than 60 days of
accumulated leave. Accordingly company has made provision for only 15
days. This was done based on assumption that an employee will be
availing of at least 30 days of leave during the year. This is
applicable to both staff as well as workers.
10. The Management had noticed in the earlier years irregularities in
the purchase activities and after investigation some of the employees
were found involved in manipulation of rate of supplies by one of the
vendor' the Company filed a criminal complaint against supplier and
some of its employees and the matter is under investigation. As
certified by the Management:
Mar 31, 2011
1 Consistent with the past practice, no provision has been made for
excise duty estimated at Rs 569477/- (Previous Year Rs.660585/-) on
stock lying at the year end in bonded warehouse and accordingly the
said amounts are not included in the inventory valuation. This has no
effect on the profit for the year. Though the said accounting treatment
differs from the revised "Guidance Note on Accounting treatment for
Excise Duty" issued by the ICAI; the Company is of the view that the
excise duty is effectively not incurred/payable till the manufactured
goods are cleared / removed from the factory premises.
2 Consistent with the past practice, for valuing Raw Material Company
has followed inclusive method (all Taxes have been included) instead of
exclusive method as suggested in AS-2 (Revised) on "Valuation of
Inventory". However this will have no impact on current year Profit and
Loss account as same method is followed consistently.
3 Deferred Tax:
(a) During the year ending 31.03.2002, the Company adopted Accounting
Standard 22- 'Accounting for taxes on income. The accumulated amount of
deferred tax liability as at 31.03.2001 of Rs. 1,05,50,000/- was
recognized as a charge to General Reserve on 1.4.2001. The deferred tax
asset in relation to provision for leave encashment accumulated amount
as at 31.03.2001 of Rs 9,00,560 is adjusted in General Reserve during
the year ending 31.03.2005.
4. Contingent Liability not provided for: In Rupees
2010-11 2009-10
(a) Guarantees given by Bank on behalf of the
Company 1869748 1623569
(b) Letters of Credit issued by Bank on behalf
of the Company 11294456 9206077
(c) Excise duty demand disputed in Appeal 584306 584306
(d) Pending legal matters related to employees
not quantified because of insignificant &
uncertainty of amount. 0 0
5. Pursuant to the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (BIFR) vide order dated 23.5.96
the Company had joined as Co-Promoters in The Cosmos India Rubber Works
(P) Ltd. during the year 1996-97. In terms of the said scheme, the
company had invested Rs.21.00 lacs by way of Share Capital in the
erstwhile subsidiary Company. The amount outstanding from the said
Company as Loans & Sundry Debtors are Rs.25,00,000/- (Previous Year Rs.
25,00,000/-) & Rs. 39,57,567/- (Previous Year Rs. 1,39,57,567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1) (o) of Sick Industrial Companies (Special
Provisions)Act, 1985 and BIFR, vide order dt. 23.5.1996 have sanctioned
revival scheme under Section 17 (3) of the said Act.
BIFR in the hearing dated 1.09.2010 issued order for winding up of
Cosmos. Against the said order for winding up passed by BIFR the
Company has filed an appeal before Appellate Authority for Industrial
and Financial Reconstruction (AAIFR), the matter is pending before
AAIFR.
The said Company has since suspended manufacturing activities and the
chances of immediate recovery of the Company's dues are doubtful.
However, no provision has been made in view of pending final decision
by AAIFR on the above.
6 Sundry Debtors are subject to confirmation and include some debts
which are overdue. It includes dues from Railways, Govt. Depts/PSU etc.
Legal action for recovery of dues is in progress in relation to some
debts. No provision has been made for doubtful debts.
7 With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act, is under process of
being worked out as the details relating to their status are being
called for.
8 The Management noticed irregularities in the purchase activities and
after investigation some of the employees were found involved in
manipulation of rate of supplies by one of the vendor, the Company
filed a criminal complaint against supplier and some of its employees
and the matter is under investigation.
9. Additional information required under para 4(c) in part II of
Schedule VI of the Companies Act, 1956. As certified by the Management:
Quantitative information in respect of goods manufactured:
10. Comparative figures of the previous year have been rearranged /
regrouped wherever considered necessary.
Mar 31, 2010
1. Consistent with the past practice, no provision has been made for
excise duty estimated at Rs.6,60,585/- (Previous Year Rs.5,59,807/-) on
stock lying at the year end in bonded warehouses and accordingly the
said amounts are not included in the inventory valuation. This has no
material effect on the profit for the year. Though the said accounting
treatment differs from the revised " Guidance Note on Accounting
treatment for Excise Duty " issued by the ICAI; the Company is of the
view that the excise duty is effectively not incurred / payable till
the manufactured goods are cleared / removed from the factory premises.
2. Consistent with the past practice, for valuing Raw Material Company
has followed inclusive method (all Taxes have been included) instead of
exclusive method as suggested in AS-2 (Revised) on "Valuation of
Inventory". However this will have no material impact on current year
Profit and Loss account as same method is followed consistently.
3. Deferred Tax:
(a) During the year ending 31.03.2002, the Company adopted Accounting
Standard 22- Accounting for taxes on income. The accumulated amount
of deferred tax liability as at 31.03.2001 of Rs. 1,05,50,000/- was
recognised as a charge to General Reserve on 1.4.2001. The deferred
tax asset in relation to provision for leave encashment accumulated
amount as at 31.03.2001 of Rs. 9,00,560 is adjusted in General Reserve
during the year ending 31.03.2005.
(b) Deferred Tax Liability/(Assets) Net comprises of tax effect of
timing differences on account of:
4. Contingent Liability not provided for:
In Rupees
2009-10 2008-09
(a) Guarantees given by Bank on behalf
of the Company 16,23,569 32,28,950
(b) Letters of Credit issued by Bank
on behalf of the Company 92,06,077 1,05,36,922
(c) Excise duty demand disputed in
Appeal 5,84,306 27,39,914
(d) Pending legal matters related to employees not quantified because
of insignificant & uncertainty of amount.
5. Pursuant to the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (BIFR) vide order dated 23.5.96
the Company had joined as Co-Promoters in The Cosmos India Rubber Works
(P.) Ltd. during the year 1996-97. In terms of the said scheme, the
company had invested Rs.21.00 lacs by way of Share Capital in the
erstwhile subsidiary Company. The amount outstanding from the said
Company as Loans & Sundry Debtors are Rs.25,00,000/- (Previous Year
Rs.25,00,000/-) & Rs. 1,39,57,567/- (Previous Year Rs. 1,39,57,567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1 )(o) of Sick Industrial Companies (Special
Provisions) Act, 1985 and BIFR, vide order dt. 23.5.1996 have
sanctioned revival scheme under Section 17(3) of the said Act.
The said Company has since suspended manufacturing activities and the
chances of immediate recovery of the Companys dues are doubtful.
However, no provision has been made in view of pending final decision
by BIFR on revival scheme.
6. Sundry Debtors are subject to confirmation and include some debts,
which are overdue. It includes dues from Railways, Govt. Depts/PSU etc.
Legal action for recovery of dues is in progress in relation to some
debts. No provision has been made for doubtful debts.
7. With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act, partywise complete
details are not available, hence disclosure required under MSME Act
cannot be given.
8. Additional information required under para 4(c) in part II of
Schedule VI of the Companies Act, 1956 As certified by the Management:
Quantitative information in respect of goods manufactured: A.
Installed Capacity, Production, Sales, Opening and Closing Stocks:
9. Related Party Disclosures (Accounting Standard-18)
10. Comparative figures of the previous year have been rearranged
regrouped wherever considered necessary.