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Notes to Accounts of Sicagen India Ltd.

Mar 31, 2015

1. Contingent Liability

a Appeals filed with ITAT for a likely demand of Rs. 200 Lakhs (Assessment year 2009-10). Appeals filed with CIT(A) for a demand of Rs. 1699 Lakhs (Assessment year 2011-12). Provision has not been made for both demands. b Guarantees given by the bankers for performance of Contracts and others Rs.447.04 Lakhs (Rs.415.63 Lakhs).

2. Previous year's figures have been regrouped and rearranged wherever necessary.


Mar 31, 2014

1. Out of 30,17,349 equity shares of Southern Petrochemical Industries Corporation Ltd (Spic), 19,87,454 shares pledged with lenders prior to demerger are yet to be released and out of which, 16,02,350 shares are under dispute and still pending for adjudication before the Hon''ble High Court of Madras.

2. Further 38,23,600 shares of Spic pledged with lendor prior to demerger and entitled to be transferred to the books of accounts of the Company are also under dispute and pending for adjudication before the Hon''ble High Court of Madras. In the event of the above dispute being settled in Company''s favour, the aforesaid shares shall be taken into account in the books of the Company on the date of settlement.

3. 1,00,00,000 Equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme, are yet to be registered in the name of the Company due to some pending litigations. The name transfer will be effected in Company''s in favour after obtaining necessary judicial clearance from the Hon''ble High Court of Madars as specified in Clause 7.5 of the earlier demerger Scheme.

4. No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs.1046.97 Lakhs (Rs.848.61 Lakhs) significant portion of which relates to companies promoted by the Company which considered temporary in nature.

5. The Company is in the process of evaluating the intrinsic value of its long term investment held by it and its subsidiaries and towards this the company is identifying an independent expert who will offer opinion on Fair value of the various shares. The company shall endeavor to obtain this report in ensuing financial year. On receipt of the above report, necessary revaluation of investment shall be undertaken.

2. Contingent Liability

a Appeals filed with ITAT for a likely demand of Rs.200 Lakhs (Assessment year 2009-10). Appeals filed with CIT(A) for a demand of Rs.1699 Lakhs (Assessment year 2011-12). Provision has not been made for both the demands.

b The Company has received legal notice from the lawyers of M/s Innovative Salary Services and Payroll Advisory Private Limited (ISS) in respect of certain matters specified in the Share Purchase Agreement ("SPA") executed between the Company & its subsidiary with ISS on various matters including collection of receivables.

3. Guarantees given by the bankers for performance of Contracts and others Rs. 415.63 Lakhs (Rs. 585.51 Lakhs).

4. Sales Tax demand together with penalties under appeal amounts to Nil (Rs.1.32 Lakhs ).

5. Provision for taxation includes Rs. 0.60 Lakhs (Rs. 0.60 Lakhs) towards wealth tax.

6. Previous year''s figures have been regrouped and rearranged wherever necessary.


Mar 31, 2013

1.1 Out of 30,17,349 equity shares in Southern Petrochemical Industries Corporation Ltd (Spic) as shown under the investment schedule, 19,87,454 equity shares of Spic pledged with lenders prior to demerger are yet to be released and out of which, 16,02,350 equity shares of Spic are under dispute and still pending for adjudication before the Hon''ble High Court of Judicature at Madras.

1.2 Further 38,23,600 equity shares of Spic pledged with prior to demerger and entitled to be transferred to the books of accounts of the Company under earlier demerger scheme, are not shown in the schedule of investments as they are under dispute and still pending for adjudication before the Hon''ble High Court of Madras. In the event of the above dispute being settled in Company''s favour, the aforesaid shares shall be taken into account in the books of the Company from the effective date of settlement.

1.3 1,00,00,000 equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme, are yet to be registered in the name of the Company due to some pending litigations. The name transfer will be effected in Company''s favour after obtaining necessary judicial clearance from the Hon''ble High Court of Madras as specified in Clause 7.5 of the earlier demerger scheme.

1.4 23,60,205 equity shares of MCC Finance Limited vested in the Company under earlier demerger scheme have till FY 2011-12 not been accounted in the books since the value of investments relating to MCC Finance Limited were not realizable as Company was in liquidation.The shares of MCC Finance Limited (Now renamed as Mercantile Ventures Limited) are now valued at Rs.10/- each based on the price at which allotments were made to various stakeholders under the scheme of arrangement sanctioned by Hon''ble High Court of Madras. This upward valuation of shares of Mercantile Ventures Limited comes to Rs.2.36 crores which has been taken to Exceptional Items under Schedule 27. It may be noted that Accounting Standard - 13 "Accounting for Investments" permits reversal of previous permanent diminution in the value of Long Term Investments. The Company has complied with the principles enunciated under this standard.

1.5 No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs.848.61 Lakhs (Rs.697.75 Lakhs) significant portion of which relates to Companies promoted by the Company which is considered temporary in nature.

2.1 Other Bank Balances include Margin Money which is due for realization after 12 months.

2.2 The claim pending with Consumer Appellate Tribunal as at FY 2011-12 was decided against the Company during the year. The attendant expenditure is also charged off.

3.1 The Other Non-Operative Income includes the following write back made during the year:

a). Rs.1.59 Crores on account of Consultancy charges, provision made in the earlier years.

b). Rs.1.57 Crores on account of Sales Tax payments for earlier years. This liability is no longer payable on account of settlement under Samadhaan Scheme.

4. Contingent Liability

a Income Tax - For the Assessment year 2009-10 we have filed before CIT-Appeals against the Department order for treatment of Long Term Capital Gain as Short Term Capital Gain. The amount disputed is Rs.1377 Lakhs for which tax provision has not been made.

b The Company has received legal notice from lawyers of M/s Innovative Salary Services and Payroll Advisory Private Limited (ISS) in respect of certain matters specified in the Share Purchase Agreement ("SPA") executed between the Company & its subsidiary with ISS on various matters including collection of receivables.

5. Guarantees given by the bankers for performance of Contracts and others Rs. 585.51 Lakhs (Rs.518.29 Lakhs).

6. Sales Tax demand together with penalties under appeal amounts to Rs.1.32 Lakhs (Rs.1.72 Lakhs).

7. Provision for taxation includes Rs. 0.60 Lakhs (Rs.0.33 Lakhs ) towards Wealth Tax.

8. Previous year''s figures have been regrouped and rearranged wherever necessary.


Mar 31, 2012

1.1 Term loan facility availed from a Bank during the current FY 2011-12 for the purpose of working capital requirement as well as modernization and expansion of existing showrooms and service stations of commercial vehicles division was secured by way of creation of equitable mortgage by deposit of title deeds of certain immovable assets of the company as collateral security.

1.2 Working capital facilities availed from a Bank were secured by hypothecation of stocks and receivables of all divisions except commercial vehicles division and creation of equitable mortgage by way of deposit of title deeds of certain immovable assets of the Company as collateral security.

2.1 Others include advance from customers and others and interest accrued.

3.1 Credit facilities availed from Banks/NBFCs by way of Channel Financing/Inventory Funding Arrangements for commercial vehicles division were secured by hypothecation of vehicles stocks.

4.1 Other payable includes statutory dues, security deposits and advance from customers.

4.2 During the year, the Company has acquired 50 lakhs 11 % Non-convertible Preference Shares of Creenstar Fertilizers Ltd amounting to Rs 5000 lakhs. The above investment was made pursuant to the special resolution dated 21.10.2011 passed by the shareholders thro' postal ballot.

4.3 As at 01,04.2011, the Company has acquired 100% equity capital of M/s Wilson Cables Private Ltd, Singapore and thus, Wilson Cables has become a wholly owned subsidiary of the Company with effect from 01.04.2011.

4.4 1987454 equity shares of Southern Petrochemical Industries Corpn. Ltd pledged with lenders prior to demerger are yet to be released and out of which, 1602350 shares are under dispute and still pending for adjudication before the Hon'ble High Court of Judicature at Madras.

4.5 3823600 equity shares of Southern Petrochemical Industries Corpn. Ltd, pledged with lenders prior to

demerger and entitled to be transferred to the books of accounts of the Company under earlier demerger scheme, are not shown in the schedule of investments as they are under dispute and still pending for adjudication before the Hon'ble High Court of Madras. In the event of the above dispute being settled in Company's favour, the aforesaid shares shall be taken into account in the books of the Company from the effective date of settlement.

4.6 2450 equity shares of Southern Petrochemical Industries Corpn. Ltd and 63 equity shares of First Leasing Co. of India Ltd which are erroneously lying in the books and not physically available with the Company have been eliminated from the books and rectified during the year.

4.7 The investment value of 5000 equity shares of Coffee Products (India) Ltd which are considered not realizable have been written off this year.

4.8 10000000 equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme, are yet to be registered in the name of the Company due to some pending litigations. The name transfer will be effected in Company's favour after obtaining necessary judicial clearance from the Hon'ble High Court of Madras as specified in Clause 7.5 of the earlier demerger scheme.

4.9 2360205 equity shares of MCC Finance Ltd vested in the Company under the earlier demerger scheme were not accounted in the books of accounts since the value of the investments relating to MCC Finance Ltd, a Company which is in liquidation, was considered not realizable. During the year, the said MCC Finance Ltd has filed an application along with a scheme of arrangement before the Hon'ble High Court of Judicature at Madras for settlement of outstanding dues to its creditors and revival of that Company. In the event of any dues being settled or any steps being taken for revival upon sanction of the above scheme by the Court, the aforesaid equity shares shall be taken into account in the books of accounts of the Company from the effective of date of settlement and revival.

4.10 No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs 697.75 lakhs (Rs 756.20 lakhs) significant portion of which relates to Companies promoted by the Company which is considered temporary in nature.

4.11 5,00,000 9% Redeemable Convertible Preference Shares of Rs 100 each held in EDAC Engineering Ltd aggregating Rs 500 lakhs were redeemed on partial redemption basis during the year.

5.1 Other Bank Balances include Margin Money which is due for realization after 12 months.

5.2 Claim pending with Consumer Appellate Tribunal for adjudication.

6. CONTINGENT LIABILITY

The Income Tax Assessment of the Company has been completed up to the Assessment Year 2009-10. The disputed demand outstanding up to the said assessment year is Rs 437 lakhs. Based on the decision of the Appellate Authority & the interpretation of other relevant provisions, the Company has been legally advised that the demand is likely to be either decreased or substantially reduced and accordingly no provision has been made.

7 Guarantees given by the bankers for performance of Contracts and others Rs 518.29 lakhs (Rs 436.35 lakhs).

8 Letter of credit outstanding for purchase of materials is Rs Nil (Rs 25.04 lakhs)

9 Sales Tax demand together with penalties under appeal amounts to Rs Nil (Rs 1.72 lakhs)

10 Provision for taxation includes Rs 0.33 lakhs (Rs 0.31 lakhs) towards wealth tax.

11 Previous year's figures have been regrouped and rearranged wherever necessary.


Mar 31, 2011

1 In accordance with accounting Standard-29, the following is considered as Contingent Liability and Provision a Sales tax and Income tax demands together with penalties under appeal amounts to Rs.1.72 lakhs. (Rs.1.72 lakhs)

b Guarantees given by bankers for Performance of Contracts and others- Rs.436.35 lakhs. (Rs.227.14 lakhs)

2 Letter of Credit outstanding for purchase of materials is Rs.25.04 (Rs. Nil).

3 Investments

No provision is considered necessary for shortfall in market value of certain quoted investments ascertained on individual basis amounting to Rs.756.20 lakhs (Rs.630.88 lakhs) significant portion of which relate to companies promoted by the Company which is considered temporary in nature.

4 Sundry Debtors, Loans and Advances and Deposits include certain overdue and confirmed balances. Some of the accounts are under reconciliation. These include

a Rs.405.82 lakhs (Rs.1238.15 lakhs) covered by court cases under arbitration.

b Advance to a subsidiary amounting to Rs.5548.13 lakhs (Rs.6727.54 lakhs) is considered good and recoverable as the intrinsic value of the investments held by that company are more than the values stated in the books of that company.

5 Provision for taxation includes Rs.0.31 lakhs (Rs.0.16 lakhs) towards Wealth tax.

6 Balance with central excise authorities includes unutilized cenvat credit of Rs.7.55 lakhs (Rs.15.45 lakhs).

7 Letters of confirmation of balances in personal accounts of suppliers, debtors and principals, loans and advances and in-operative bank accounts have been called for and where not received is being followed up.

8 During the year, the Company has divested its stake held in SDB Cisco(India) Ltd. on 09.08.2010 and as a result, SDB Cisco and its subsidiary viz. Modern Protection and Investigations Ltd, ceased to be the subsidiaries of the Company w.e.f. 09.08.10.

9 Events occurring after the Balance Sheet date - The company has acquired 100% of the equity of M/s Wilson Cables Private Limited, Singapore as at 01.04.11 and this company will become a wholly owned subsidiary for the year ending 31.03.12.

10 Previous year's figures have been regrouped and rearranged wherever necessary.

11 Related Party Disclosure

1 Related parties where control exists

Subsidiary Companies

South India House Estates and Properties Ltd.

SDB Cisco (India) Ltd.

Modern Protection & Investigations Ltd. (subsidiary of SDB Cisco)

2 Other related parties with whom trade transactions have taken place during the year Key Management Personnel

S Arumugam Managing Director

Managerial Remuneration Rs.35.00 lakhs p.a. (Rs.30 lakhs p.a.)


Mar 31, 2010

1 In accordance with Accounting Standard -29, the following is considered as Contingent Liability and Provision.

a Sales tax and Income tax demands together with penalties under appeal amounts to Rs.1.72 lakhs. (Rs.1.72 lakhs)

b Guarantees given by bankers for Performance of Contracts and others- Rs.227.14 lakhs (Rs.272.60 lakhs).

2 Letter of Credit outstanding for purchase of materials is Nil (Rs. 148.03 lakhs).

3 Investments

No provision is considered necessary for shortfall in market value of certain quoted investments ascertained on individual basis amounting to Rs.630.88 lakhs (Rs.1047.61 lakhs) significant portion of which relate to companies promoted by the Company which is considered temporary in nature.

4 Sundry Debtors, Loans and Advances and Deposits include certain overdue and confirmed balances. Some of the accounts are under reconciliation. These include

a Rs. 1238.1 5 lakhs (Rs.2392.54 lakhs) covered by court cases under arbitration.

b Advance to a subsidiary amounting to Rs.6727.54 lakhs (Rs.6921.16 lakhs) is considered good and recoverable as the intrinsic value of the investments held by that company are more than the values stated in the books of that company.

5 Provision for taxation includes Rs.0.16 lakhs (Rs.0.10 lakhs) towards Wealth tax.

6 Balance with central excise authorities includes unutilised cenvat credit of Rs. 1 5.45 lakhs (Rs.1.81 lakhs).

7 Letters of confirmation of balances in personal accounts of suppliers, debtors and principals, loans and advances and in-operative bank accounts have been called for and where not received is being followed up.

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

9 Related Party Disclosure

1 Related parties where control exists

Subsidiary Companies

South India House Estates and Properties Ltd.

SDB Cisco (India) Ltd.

Modern Protection & Investigations Ltd.

2 Other related parties with whom trade transactions have taken place during the year Key Management Personnel

S Arumugam Director and CEO * ;

* Designation was changed as Managing Director with revised terms w.e.f 01.04.10



 
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