Mar 31, 2015
1. Rights, preferences and restrictions attached to shares
(i). Equity Shares: The company has one class of equity shares having a
par value of Rs.10 per share. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
2. Explanatory Notes & Other Disclosures
2.1 Financial Statements of the Company have been prepared on "Going
Concern basis" despite complete erosion of net worth and the current
liabilities exceeding the current assets by Rs.58.87 lakhs.
3. Contingent Liabilities
(i) Arrears of Fixed cumulative dividends on preference shares.
(Rs. in Lakhs)
Particulars Current Year Previous Year
Arrears of cumulative Dividend on 5 % Nil 72.25
preference shares
(ii) Interest against Late Filing of TDS Returns of Rs. 79,000/- not
acknowledged as debt.
4. Excise Duty expenses of Rs. 48,169 /- represents the differential
excise duty in respect of finished goods as on 01.04.2014 and as on
31.03.2015.
5. (i) Depreciation for the year has been provided as per the provisions
of the Section 123 read with Schedule II to the Companies Act 2013 under
the Straight Line Method pursuant to this, provision of depreciation is
lower by Rs. 30,760/- compared to the depreciation as per the schedule
XIV of the Companies Act 1956. and accordingly the profit for the year
is more by Rs. 30,760/-for the year.
(ii) In respect of Fixed Assets those had completed usefull life as on
31-03-2014, the carrying amount of Rs. 19,782/- had been adjusted to
accumulated loss.
(iii) Where the Net block of an asset is less than the residual value
specified in schedule - II to the Companies Act 2013, residual values
are restored by adjusting the net block and crediting the excess
depreciation written back which is taken to statement of profit and
loss.
6. Disclosures in accordance with the requirements of Accounting
Standards stated under the Companies (Accounting Standards) Rules,
2006.
a. Segment Reporting
The Company operates only in one segment i.e, manufacture and sale of
magnesium metal related products and hence, Segment Reporting in
accordance with Accounting Standard -17 is not applicable.
b. Related Party Disclosures
The Related party disclosures as required by AS - 18 are given below:
S. No Related Parties Nature of Relationship
1 Mr. N. Ravi Prasad, Managing Director Key Managerial Personnel
2 Mr. N. Rajender Prasad, Joint Managing
Director
3 Smt. N. Anantha Lakshmi Relatives of Key Managerial
Personnel
4 Southern Electrodes Ltd Enterprise over which
relatives of
5 Pumps India Pvt. Ltd Key Managerial Personnel
exercise
significant influence.
7. Accounting for Taxes on income i) Current Tax
The Company has made Current Tax Provision for Minimum Alternate Tax
(MAT) under section 1 5JB of the Income Tax Act, 1961. As per the
provisions of section 115JAA, MAT Credit receivable for the amount in
excess over tax liability as per normal computation of income has been
recognized as an asset. MAT Credit is recognized as an asset in
accordance with the recommendations contained in Guidance Note Issued
by ICAI. The said asset is created by way of the credit to the
Statement of Profit and Loss and shown as MAT Credit entitlement.
8. Dues to Micro, Small and Medium Enterprises
On the basis of details furnished by the suppliers, there are no
amounts to be reported as dues to micro, small and medium enterprises
as required under section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 (''MSMED Act').
9. Previous Year's figures have been reclassified, wherever necessary so
as to conform with those of Current Year.
Mar 31, 2014
1. Rights, preferences and restrictions attached to shares
(i). Equity Shares: The company has one class of equity shares having a
par value of Rs.10/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
2. Explanatory Notes & Other Disclosures
A. Financial Statements of the Company have been prepared on "Going
Concern basis" despite complete erosion of net worth and the current
liabilities exceeding the current assets by Rs. 2.065 Crores.
B. Contingent Liabilities
(i) Arrears of Fixed cumulative dividends
on preference shares. (Rs. in Lakhs)
Particulars Current Year Previous Year
Arrears of cumulative Dividend on 5 %
preference shares 72.25 67.25
(ii) Interest on Late Filing of TDS Returns of Rs. 65,440/- not
acknowledged as debt by the Company.
3. Excise Duty expenditure of Rs. 83,810/- represents the differential
excise duty in respect of finished goods as on 01.04.2013 and as on
31.03.2014.
4. Disclosures in accordance with the requirements of Accounting
Standards stated under the Companies (Accounting Standards) Rules,
2006.
a. Segment Reporting
The Company operates only in one segment i.e, manufacture and sale of
magnesium metal related products and hence, Segment Reporting in
accordance with Accounting Standard -17 is not applicable.
d. Accounting for Taxes on income
i) Current Tax
Provision for current tax is not required in view of the brought
forward unabsorbed depreciation and business loss, both under book
profits tax and normal provisions of the income tax act.
ii) Deferred Tax
In view of the absence of reasonable certainty that sufficient future
taxable income will be available against which deferred tax asset can
be realized, the Company has considered it prudent not to provide for
deferred tax asset of Rs. 75,24,845 (Previous Year Rs. 82,72,453), in
accordance with Accounting Standard - 22, Accounting for taxes on
income, resulted on account of brought forward losses and unabsorbed
depreciation.
Note - 5
Dues to Micro, Small and Medium Enterprises
On the basis of details furnished by the suppliers, there are no
amounts to be reported as dues to micro, small and medium enterprises
as required under section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 (''MSMED Act'').
Note - 6
Previous Year''s figures
Previous Year''s figures have been reclassified, wherever necessary so
as to conform with those of Current Year.
Mar 31, 2013
1.1 Financial statements of the Company have been prepared on "Going
concern basis" despite complete erosion of net worth and the current
liabilities exceeding the current assets by Rs.2,31,91,128 as at 31
March 2013.
1.2 Excise Duty expenditure of Rs. 2,45,139/- represents the
differential excise duty in respect of finished goods as on 31.03.2012
and as on 31.03.2013.
2. Additional Information :
b. Earnings in foreign exchange:
The Company has no earnings in foreign exchange for the year to report.
c. The value of consumption of imported and indigenously obtained raw
materials, stores and spare parts and the percentage of each to the
total consumption:
3. Disclosures in accordance with the requirements of Accounting
Standards stated under the Companies (Accounting Standards) Rules,
2006.
The Company has made disclosures in accordance with the Accounting
Standards as applicable for the year under report.
3.1 Segment Reporting
The Company operates only in one segment i.e, manufacture and sale of
magnesium metal related products and hence, Segment Reporting in
accordance with Accounting Standard -17 is not applicable.
3.4 Taxes on income
3.4.1 Current Tax
Provision for current tax is not made, in view of the brought forward
unabsorbed depreciation and business loss, in accordance with the
provisions of the Income-tax Act, 1961 as well as book profits tax
under Section 115JB of the Income-tax Act, 1961.
3.4.2 Deferred Tax
In view of the absence of reasonable certainty that sufficient future
taxable income will be available against which deferred tax asset can
be realized, the Company has considered it prudent not to provide for
deferred tax asset of Rs. 82,72,453 (Previous Year Rs. 1,11,68,149), in
accordance with Accounting Standard - 22, Accounting for taxes on
income, resulted on account of brought forward losses and unabsorbed
depreciation.
4. Dues to Micro, Small and Medium Enterprises
On the basis of details furnished by the suppliers, there are no
amounts to be reported as dues to micro, small and medium enterprises
as required under section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 (''''MSMED Act'').
5. Previous Year''s figures
Previous Year''s figures have been reclassified, wherever necessary so
as to conform with the requirements of the Revised Schedule VI to the
Companies Act, 1956.
Mar 31, 2010
1. Contingent Liabilities to the extent not provided for on account
of:
Particulars As at
31.03.2009 As at
31.03.2008
(Rs.In lakhs) (Rs.in
lakhs)
i)Penalty levied by the Deputy Director,
Directorate of Enforcement (FEMA) As
the company prefers as appeal Before the
special Director (Appeals) FEMA - New Delhi. Nil 0.50
ii) a) Interest levied by the Sales Tax
Authorities for the accounting year 2000-01 on
delayed payments of General Sales Tax Nil 1.96
Central Sales Tax Nil 2.36
The Company preferred appeals before
Deputy Commissioner (Appeals)
b) Arrears of cumulative Dividend on
preference shares (@ 5%) 52.25 47.25
(The Cum. Pref Shareholders have agreed
to reduce the rate of dividend from 14%
to 5% with retrospective effect from 1999
onwards and the time for the maturity has
been extended till March 2015)
2. Excise Duty of Rs.1,06,231/- represents the differential excise
duty in respect of finished goods as on 01.04.2009 and as on
31.03.2010.
3. Managerial Remuneration, included in other Heads of Account
4. In view of the absence of reasonable certainty that sufficient
future taxable income will be available against which deferred tax
asset can be realized, it is considered prudent not to provide for
deferred tax asset of Rs.2,27,21,627/-, in accordance with Accounting
Standard - 22, Accounting for taxes on income, resulted on account of
brought forward losses and unabsorbed depreciation.
5. Information required pursuant to the Accounting Standards issued by
the Institute of Chartered Accountants of India.
a) AS-17 Segment Reporting: Company operates only in one segment that
of manufacture and sale of magnesium metal related products, Segment
Reporting in accordance with AS-17 is not required.
b) AS-18 Related party disclosures:
Related party disclosures as required by AS - 18 are given below
Related Parties
1. Southern Electrodes Ltd
2. Pumps (India) Pvt. Ltd
3. Phoenix Finance & Leasing Limited
4. Mr.N.Ravi Prasad
5. Mr.N.Rajender Prasad
6. Smt N.Anantha Lakshmi
7. Sri N.B.Prasad
8. Sri N. Ram Prasad
Nature of Relationship
Associate Companies
Key Management Personnel
Relatives of Key Management Personnel
i) Transactions with associate Companies
ii) Details of transactions in respect of Key Management personnel.
6. Quantitative particulars in accordance with the requirements of
Part - II of Scheduled VI to the Companies Act., 1956.
7. Previous Years figures have been regrouped wherever necessary and
paise have been rounded off to the nearest rupee.
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