Mar 31, 2015
1. Contingent Liability not provided for in respect of :
(i) Regarding demand cases pending against the company from Custom &
Central Excise Department:
a. The Company have show cause notices from the Custom & Central
Excise Department for wrong classification of maize starch powder under
Chapter Heading 11.03 instead of classified as modified starch falling
under Chapter Heading 35.05 and raised demand of Rs. 11,35,74,846/-
upto 31.03.2014 and further Rs. 1,95,70,093/- for the year 2014-15. But
the Hon'ble Customs, Excise & Service Tax Appellate Tribunal Principal
Bench New Delhi vide their order dated 21.11.2013 had rejected the
Department Appeal being it is settled that maize starch powder is
classifiable as plain starch falling under Chapter 11 and same cannot
be held to be falling under Chapter 35. Hence the company have no
demand pending for payment despite the fact the Central Excise
Department have gone to higher Court. The company has already filed
application for set-a-side the demand raised upto 31.12.2014.
b. The Company have another show cause notices from the Custom &
Central Excise Department by disallowing the Centvat Credit as common
input used in Hydrol cleared under S.H.1703.90 and raised demand of Rs.
88,15,748/- upto 31.03.2014 and further Rs. 9,00,254/- for the year
2014-15. But the Hon'ble Customs, Excise & Service Tax Appellate
Tribunal Principal Bench New Delhi vide their order dated 09.07.2013
had set aside. The Tribunal also set aside the penalty and interest
liability imposed in term of Section 11AA/AB of the Act. Hence the
company have no demand pending for payment despite the fact the Central
Excise Department have gone to Higher Court. The company has already
filed application for set-a-side the demand raised upto 31.12.2014.
c. The Company have another show cause notices from the Custom &
Central Excise Department for demanded of Rs.4,27,981/- on account of
Cenvat Credit of Service Tax paid on outward transportation of finished
goods which is not justified as credit on outward transportation is
taken by Company as per provision of the Act and as advice by Excise
consultant. The matter is still pending with D.C. Custom & Central
Excise Pithampur.
d. The Company have another show cause notices from the Custom &
Central Excise Department for Input used in Excisable Production &
Credit taken of Service Tax on Input Services and Inward freight
amounting to Rs.4,10,05,661/-. The aforesaid show cause notices has
been issued without ascertaining as to whether the Company has violated
the condition of Rule 6. The show cause notices will have to be dropped
as in the Finance Act, 2010-11, retrospective amendment has been made
wherein it has been provided that the assessee shall reverse the credit
of input and input services used in manufacture of exempted goods and
file application with the Commissioner who shall order for dropping of
all such demands.
e. The Company have another show cause notices from the Custom &
Central Excise Department for Input & Return Goods amounting to
Rs.1,66,334/-. The liability is unconfirmed & matter is pending with
CESTAT. However no provision for the same has been made on the basis of
opinion of the Excise Consultants.
The Company has disputed the demand and preferred appeal before
Appellate Authorities. No provision has been made for taxation related
to the said demands on the basis of contention of the Board of
Directors of the Company that the appeals will be in favour of the
company.
iii) Bank Guarantee fav. Western Rs.11,25,000/- (11,25,000/-)
Coal field Ltd., Nagpur Krishiupaj Mandi Samiti Rs. 5,00,000/-
(5,00,000/-)
iv) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/-
before Hon'ble MP High Court, Indore out of which Rs. 1,28,000/- has
been deposited & kept in advance as appeal is pending against the Court
Decree and the appeal is likely to be decided in favour of the Company.
v) Mandi tax has been recognized as expenses upto June, 2013, which has
been given to Mandi Authority and keep in separate account in pursuance
of Court Order. In case the amount is refunded the same will be
considered as Income in the year of its receipt. However from July
2013, Mandi Tax has not been deposited in view of decision of Hon'ble
High Court of Madhya Pradesh, in the matter of Writ Petition No.
14227/2010 Dated 05/07/2013.
2. Provision on of Income Tax has been made during the year as per
Taxation Laws.
3. Estimated amount of contracts remaining to be executed on Capital
account are not provided is Rs.100.00 Lacs (900.00 lacs) (net of
credits) against which a sum of Rs.79.22 Lacs (Rs.496.10 Lacs) has been
paid as advance.
4. During the year provision has been made in the accounts in respect
of Excise Duty (including Cess) of Rs.18,03,811.25 (Rs.6,37,778/- )
payable on nucleated stock of finished goods lying in the factory
premises as on 31/03/2015 and the same has been considered as an
element of cost for the purpose of valuation of inventory at the year
end.
5. Earning per share (EPS) for the Computation as per (AS 20)
i. Earning per share (EPS) for the year has been computed in accordance
with the Accounting Standard-20 issued by the Institute of Chartered
Accountants of India after considering provision for net deferred tax
liability for the year as stated in note No.36.
6. Segment Reporting :
The Company has only a single reportable Segment in terms of the
requirements of Accounting Standard-17 of the Institute of Chartered
Accountants of India.
7. Related Party Disclosure (AS-18):
Disclosure of related party transactions as per Accounting Standard 18
of the Institute of Chartered Accountants of India.
(a) In accordance with Accounting Standard 22, 'Accounting for Taxes on
Income' (AS 22), issued by the Institute of Chartered Accountants of
India, the company has adjusted the difference for deferred tax during
the year.
(b) The Company expects to generate taxable income in the coming years
which will enable it to utilize the carried forward unabsorbed
depreciation and MAT credit, but on conservative basis. No provision
has been made for Deferred Tax Assets, while Deferred Tax Liability has
been provided.
8. (a) In view of insufficient information from suppliers regarding
their status as SSI units amount overdue to such undertaking could not
be ascertained.
(b) The company is in the process of compiling the additional
information require to be disclosed under the Micro Small Enterprises
Development Act 2006. The Management does not envisage any material
impact on the financial statement in this regard which has been relied
upon by the Auditors.
9. Figures for the previous year have been regrouped and recasted
wherever necessary.
10. Figures in brackets pertain to the previous year.
11. Debit, Credit balances and Balances with Banks, are subject to
confirmation and reconciliation.
Mar 31, 2014
1. CONTINGENT LIABILITY NOT PROVIDED FOR
(I) The following cases were pending against the company as confirmed
by company's excise consultants :
(a) Cases related to classification of Plain Starch as modified Starch:
Total Amount Involved Rs.11,35,74,846/-
* In the opinion of Excise Consultants An application has to be
submitted to the department to drop the SCN's in the face of CESTAT's
Older No A/5B390-58392/2013- EX(DB) dt, 21.11.2013.
(b) In the matter of disallowance of Cenvat Credit as Common input used
in hydrol and demand of 8%, 10% on the value of clearance of Hydrol :
Total Amount Involved Rs.88.15.748/- :-
In the opinion of Excise Consultants' An application has to be
submitted to the DC/AC to drop the SCN's in the face of CESTAT's Order
No. A/57063/2C13-EX(DB dt 09-07-2013 which has attained finality
(c) Demand for Rs.4,27,981/- Cenvat Credit of Service Tax paid on
outward transportation of finished goods
* in the opinion of Excise Consultants undoubtedly credit on outward
transportation can not be denied and the demards will be ultimately
dropped, matter is pending with D.C. Pithampur.
(d) Show Cause Notices for input used in Excisable Production & Credit
taken of Service Tax on Input Services ana Inward freight amounting to
Rs.4,10,05,661/- :
* In the opinion of Excise Consultants the aforcsaid show cause notices
has been issued without ascertaining as to whether the Company has
violated the condition of Rule 6. Even if it s assumed that the Company
has violated the condition of Rule 6 in that case also the snow cause
notices will be dropped as in the finance Act, 2010-11, retrospective
amendment has been made wherein it has been provided that the assessee
shalI reverse the credit of input and input services used in
manufacture of exempted goods and after certification of the same by
the Chartered Accountant shall the application with the Commissioner
who shall order for dropping of all such demands Thus ultimately the
show cause notice are going to be dropped The liability is unconfirmed
and matter is pending with CESTAT
(e) Show cause Notices for Input & Return Goods amounting to R$.
1,66,334/- :
The liability is unconfirmed & matter is pending with CESTAT.
No provision for the same has been made on the basis of above
contention of the Excise Consultants'
(II) The assessment of Entry Tax, Madhya Pradesh Commercial Tax &
Central Sates Tax for the different years are completed and the
following demands were raised and are disputed
1995-96 1997-98 1906-90
MPST - 27041 -
Central sales Tax 175731 1796323 318392
The Company has disputed the demand and preferred appeal before
appealing authorities No provision has been made for taxation related
to the said demands on the basis of contention of the Beard of
Directors of the Company that, the appeals will be accepted
iii) Bank Guarantee fav Western Rs 12,00,000/ (12,80 000/-)
Coat feld ltd Nagpur
Krishiupa. Mandi Samiti Rs. 5,00,OOO/- (5,00.000/-)
Margin Money against above
In form of fixed deposit Rs. 12.677'8/- 1197,718/-)
iv) Court Decree in the case of Smt. Sharda Bai for R$. 2,53,852/-
before Hon'ble MR -High Court Indore out of which Rs. 1,28,000/- has
been deposited & kapt in advance as appear, is bending against tie
court Decree & the appeal is likely to be decided in Company s favour
v) Mandi tax has been recognized as e
2 Prnvtsicn on of Income Tax has been made during the year as pci
Taxation Laws
3, Estimated amount of contracts remaining to be executed on Capital
account are not provided is Rs.900.'- Lacs (1200 lacs) against which a
sum of Rs. 41382/- Lscs (Rs.495.10 Lacs) has been paid as advance
4 During the year provision has been made in the accounts in respect
cf Excise duty (Including Cess) of Rs.36650/- (Rs 6,37,778.'-) payable
on uncleared stock of finished goods lying in the factory premises as
on 31/C3/2014 and the same has been considered as an element of cost
for the purpose of valuator of Inventory as on 31/03/2014
5 The Auditors' Remuneration during the year is os under
2013 14 2012-13
Audit Fees lax Audit &Certification 2,27.500 00 1,60.000.00
Other Services 1.60 260.00 80.000.0C
Total 3,87.760.00 2.40,000.00
6. Figures for the previous year have been regrouped and recasted
wherever necessary
7 Value of import ana indigenous material consumed (please refer
Financial Statements and other information relating import and export
are is under
(a) Value of imports calculated on GIF basis by the"
company during the financial year in respect of
I, Raw Materials - Nil
II. Components and spare parts Nil
III. Capital Goods 11,26 765.00 1
(b) Eexpenditure in foreign currency during the Nil
financial year on account ofroyaty, know-how
professional and consultation fees, interest and
other matters;
(ci) Total value if all imported raw materials, Nil
spare parts and components. consumed during 'he
financial year and the total value of all indigenous
aw materials spare parts and components similarly consumed
and the percentage of each to the total consumption (d) The
amount remitted during the year in foreign currencies on
account ot Nildividends with a specific mention of the total
number of non--esidentshareholders the total number of shares
held by them on which thedividends were due and the year tn
which the dividends related
(5) Earnings in foreign exchange classified under the
following heads, namely: -
I, Export of goods calculated on F O B basis 45573923,00
II. Royalty, know-how professionai and consultation fees, Nil
lII. Interest and dividend Nil
IV Other income, indicating the nature thereof Nil
8 Figures in brackets pertain to the previous year,
9. Debt, credit balances and Balances with Banks, are subject to
confirmation and reconciliation
10 In Current years Excise Duty, coal consumption &. Stores Consumption
are subject to reconciliations and confirmation. The outstanding
balances of Trade Receivables Trade payables deposits advances and
other current assets liabilities are subject to confirmation and
reconciliation However in the opinion of the management adjustment if
any will not be material.
11. in earlier years, the comeany has acquired the coa from Western
Coal Field Ltd (WCL) through the intermediaries at e-auction price
instead of Notified price and the difference was kept as Fixed Deosit
which was to be refunded or adjusted as the case nay be as per
judgments of Hon'ble court against petition. No adjustments in accounts
was made due to uncertainty. During the year 2007-08 on judgment in the
favour of coal users the company received a refund of Rs, 27,45010'-
along with interest of Rs.4,05,900/- from WDL and the same was treated
as miscellaneous income. The balance amount refundable if any is not
ascertainable and therefore the same will be accounted for as
miscellaneous income if any in the year of receipt,
12 A Export Benefits
The amount available towards Export Benefits under duty exemption or
any other Scheme during the years has been ascertained on the basis of
availabie records.
13 (a) In view of Insufficient information from suppliers regarding
their status as SSI units amount overdue to such undertaking could not
be ascertained,
(b) The company is in the process of compiling the additional
information require to be disclosed under the Micro Small Enterprises
Development Act 2006. The Management dees not envisage any material
impact on the financial statement in this regard which has been relied
upon by the Auditors.
14. [he Company has only a single reportable Segment in terms of the
requirements of Accounting Standard 17 of the Institute of Chartered
Accountants Of India
15 Related party disclosure [AS-18}
Disclosure of resiled party transactions as per Accounting Standard 16
of the Institute of Chartered Accountants of India
(a) Key Management personnel
Dr Damodar Modi Chairman & M D
Shri Ramdas GoyaI Executive Director
Shri prakash Bapna Director
Shri Ramesh Chandra Coyal Director
Shri Yogesh Agrawai Director
Smt. Pramila Jajodia Director
Smt. Shochikaio IVtangal Director
Shi Vinod Gsrg Independent Director
Shi Ashish Agrawai Independent Director
Shri Satisli Chandra Vtangal Independent Director
Mar 31, 2013
1. CONTINGENT LIABILITY NOT PROVIDED FOR :
(i) The following cases were pending against the company as confirmed
by company''s excise consultants :
(a) Cases related to classification of Plain Starch as modified Starch:
Total Amount Involved Rs.200948751/ :-
 In the opinion of Excise Consultants'' since the chemical examiner
report clearly says that the starch is plain starch and not modified
starch, the pending Show Cause Notices are likely to be dropped on the
basis of previous order of the Commissioner.
(b) In the matter of disallowance of Cenvat Credit as Common input used
in Hydrol and demand of 8%, 10% on the value of clearance of Hydrol :
Total Amount Involved Rs.86,75,435/- :- Â In the opinion of Excise
Consultants'' moreover recently this issue has already been settled by
the Hon''ble High
Court of Bombay in the case of RALLIS INDIA LTD. Versus UNION OF INDIA
2009 (233) E.L.T. 301 (Bom.) wherein it was held that Rule 6(b)(3) has
no application in case of waste and residue. Thus all the demands has
no legal base and will eventually will result into dropping of demands
as the Tribunals is bound to follow High Court Orders.
(c) Demand for Rs.4,27,981/- Cenvat Credit of Service Tax paid on
outward transportation of finished goods :- Â In the opinion of Excise
Consultants'' undoubtedly credit on outward transportation can not be
denied and the demands will be ultimately dropped.
(d) Show Cause Notices issued under Rule 6(3)(b) i.e. demand of 10% of
the value of exempted goods on the ground
of availment of Cenvat Credit Total demand Rs.4,10,05,661/- :- Â In the
opinion of Excise Consultants'' the aforesaid show cause notices has
been issued without ascertaining as to whether the Company has violated
the condition of Rule 6. Even if it is assumed that the Company has
violated the condition of Rule 6, in that case also the show cause
notices will be dropped as in the Finance Act, 2010-11, retrospective
amendment has been made wherein it has been provided that the assessee
shall reverse the credit of input and input services used in
manufacture of exempted goods and after certification of the same by
the Chartered Accountant shall file application with the Commissioner
who shall order for dropping of all such demands. Thus ultimately the
show cause notice are going to be dropped.
No provision for the same has been made on the basis of above
contention of the Excise Consultants''.
iv) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/-
before Hon''ble MP High Court, Indore out of which Rs. 1,28,000/- has
been deposited & kept in advance as appeal is pending against the court
Decree & the appeal is likely to be decided in Company''s favour.
v) Mandi tax has been recognized as expenses, which has been given to
Mandi Authority to keep in a separate account in pursuance of Court
Order and if the money is refunded the same will be considered as
Income in that year.
2. Provision on of Income Tax has been made during the year as per
Taxation Laws.
3. Estimated amount of contracts remaining to be executed on Capital
account are not provided is Rs. 1200 Lacs (600 lacs) against which a
sum of Rs.496.10 Lacs (Rs.130.81 Lacs) has been paid as advance.
4. During the year provision has been made in the accounts in respect
of Excise duty (Including Cess) of Rs.6,37,778/- (Rs.4,78,390/-)
payable on uncleared stock of finished goods lying in the factory
premises as on 31/03/2013 and the same has been considered as an
element of cost for the purpose of valuation of inventory as on
31/03/2013.
7. Figures for the previous year have been regrouped and recasted
wherever necessary.
8. Value of import and indigenous material consumed (please refer
Financial Statements).
9. Figures in brackets pertain to the previous year.
10. Debit Credit balances and Balances with Banks are subject to
confirmation and reconciliation.
11. There is a difference of Rs. 5,12,849/- (Rs 5,12,849/-) in books
records and Excise records pertaining to earlier years and Current
years Excise Duty Accounts, coal consumption details & Stores Accounts
are subject to reconciliations and confirmation.
12. In earlier years, the company has acquired the coal from Western
Coal Field Ltd. (WCL) through the intermediaries at e- auction price
instead of Notified price and the difference was kept as Fixed Deposit
which was to be refunded or adjusted as the case may be as per
judgments of Hon''ble Court against petition. No adjustments in accounts
was made due to uncertainty. During the year 2007-08 on judgment in the
favour of coal users, the company received a refund of Rs.27,45,910/ -
alongwith interest of Rs.4,05,900/- from WCL and the same was treated
as miscellaneous income. The balance amount refundable if any is not
ascertainable and therefore the same will be accounted for as
miscellaneous income if any in the year of receipt.
13A. Export Benefits
The amount available towards Export Benefits under duty exemption or
any other Scheme during the years has been ascertained on the basis of
available records.
14. (a) In view of insufficient information from suppliers regarding
their status as SSI units amount overdue to such undertaking could not
be ascertained.
(b) The company is in the process of compiling the additional
information require to be disclosed under the Micro Small Enterprises
Development Act 2006. The Management does not envisage any material
impact on the financial statement in this regard which has been relied
upon by the Auditors.
15. The Company has only a single reportable Segment in terms of the
requirements of Accounting Standard-17 of the Institute of Chartered
Accountants of India.
Nature and amount of Transactions :
i) Managerial Remuneration (As detailed in 10 above) Rs.1,00,42,466/-
(Rs.1,01,03,770.00) (Subject to approval in Annual General Meeting)
ii) Amount received as Unsecured Loan Rs.4,24,85,464/-
(Rs.3,87,12,157/-) from key Management Personnel & relatives.
iii) Interest on the above Rs.43,63,581/- (Rs.42,63,009/-).
16. Earning per share (EPS) for the Computation as per (AS 20)
a. Earning per share (EPS) for the year has been computed in accordance
with the Accounting Standard-20 issued by the Institute of Chartered
Accountants of India after considering provision for net deferred tax
liability for the year as stated in note No.42.
(a) In accordance with Accounting Standard 22, ''Accounting for Taxes on
Income'' (AS 22), issued by the Institute of Chartered Accountants of
India, the company has adjusted the difference for deferred tax during
the year.
(b) The Company expects to generate taxable income in the coming years
which will enable it to utilize the carried forward unabsorbed
depreciation and MAT credit.
Note :
1. Figures in brackes represents cash outflow.
2. Figures for previous year have been rearranged and re-grouped
wherever necessary.
3. For purpose of Trade Advance and Trade Payables current liabilities
directly related to other activities have been excluded.
4. Previous years figures have been reclassified to confirm to the
current years presentation.
Mar 31, 2012
CONTINGENT LIABILITY NOT PROVIDED FOR:
i) The following cases were pending against the company as confirmed by
company's excise consultants :
(a) Cases related to classification of Plain Starch as modified Starch
-.Total Amount Involved Rs18,51,55,150/-
- In the opinion of Excise Consultants' since the chemical examiner
report clearly says that the starch is plain starch and not modified
starch the pending Show Cause Notices are likely to be dropped on the
basis of previous order of the Commissioner.
(b) In the matter of disallowance of Cenvat Credit as Common input used
in Hydrol and demand of 8%, 10% on the value of clearance of Hydrol:
Total Amount Involved Rs. 69,34,608/-.
- In the opinion of Excise Consultants' moreover recently this issue
has already been settled by the Hon'ble High Court of Bombay in ithe
case of RALLIS INDIA LTD. versus UNION OF INDIA2009 (233) E.L.T. 301
(Bom.) wherein it was held that Rule 6(b)(3) has no application is case
of waste and residue. Thus all the demands has no legal base and will
eventually will result into dropping of demands as the Tribunals is
bound to follow High Court Orders.
(c) Demand for Rs. 4,21,765/- Cenvat Credit of Service Tax paid on
outward transportation of finished goods:
- In the opinion of Excise Consultants' undoubtedly credit on outward
transportation can not be denied and the demands will be ultimately
dropped.
(d) Show Cause Notices issued under Rule 6(3)(b) i.e. demand of 10% of
the value of exempted goods on the ground ofavailment of Cenvat Credit
Total demand Rs. 4,10,05,661/-.
- In the opinion of Excise Consultants' the aforesaid show cause
notices has been issued without ascertaining as to whether the Company
has violated the condition of Rule 6. Even if it is assumed that the
Company has violated the condition of Rule 6, in that case also the
show cause notices will be dropped as in the Finance Act, 2010-11,
retrospective amendment has been made wherein it has been provided that
the assessee shall reverse the credit of input and input services used
in manufacture of exempted goods and after certification of the same by
the Chartered Accountant shall file application with the Commissioner
who shall order for dropping of all such demands. Thus ultimately the
show cause notice are going to be dropped.
(e) As regard Appeal No. E/3683/2003-NB(SM) Rs. 1,66,334/-in the matter
of Credit on returned goods. In this case the commissioner (Appeals)
vide Order-in-appeal has allowed credit of Rs. 1,04,242/- vide
Order-in-Appeal and disallowed the credit of Rs. 62,592/-. The Company
has filed appeal before Tribunal against disallowance of credit of Rs.
62,592/-. The Tribunal vide Final Order No. A/699/04-NB(SM) dated
16.04.2004 has allowed the appeal by way of remand. Hence as on today
there is no demand against the Company.
(f) As regard Appeal No. E/995/2012 for disallowance of Cenvat of Rs.
1,95,254/of common use of GTAin dutiable and exempted goods against the
order of Commissioner (Appeals) vide Order-in-Original No.
01-03/COMMER/ CEX/IND/2012 dated 04.01.2012. The company has filed
appeal before Tribunal and hearing date is fixed on 09.10.2012.
No provision for the same has been made on the basis of above
contention of the Excise Consultants.
ii) The assessment of Entry Tax, Madhya Pradesh Commercial Tax &
Central Sales Tax for the different years are completed and the
following demands were raised and are disputed :
The Company has disputed the demand and preferred appeal before
appealing authorities. No provision has been made for taxation related
to the said demands on the basis of contention of the Board of
Directors of the Company that the appeals will be accepted.
iii) The assessment of assessment year 2009-10 has been completed &
appeal with CIT (A)ll, Indore was decided on 19/06/201. The liability
thereof is not ascertainable after appeal effect. The liability will be
recognized after receiving revised computation for appeal effect.
v) Court Decree in the case of Smt. Sharda BaiforRs. 2,53,852/-before
Hon'bleMP High Court, Indore out of which Rs. 1,28,000/- has been
deposited & kept in advance as appeal is pending against the court
Decree & the appeal is likely to be decided in Company's favour.
vi) Mandi tax has been recognized as expenses, which has been given to
Mandi Authority to keep in a separate account in pursuance of Court
Order and if the money is refunded the same will be considered as
Income in that year.
1. Provision on of Income Tax has been made during the year as per
Taxation Laws.
2. Estimated amount of contracts remaining to be executed on Capital
account are not provided is Rs. 600 Lacs (NIL) against which a sum of
Rs. 13.09 Lacs (Rs.5.93 Lacs) has been paid as advance.
3. During the year provision has been made in the accounts in respect
of Excise duty (Including Cess) of Rs. 4,78,390/- (Rs. 4,20,807/-)
payable on uncleared stock of finished goods lying in the factory
premises as on 31/03/2012 and the same has been considered as an
element of cost for the purpose of valuation of inventory as on
31/03/2012.
4. Figures for the previous year have been regrouped and recasted
wherever necessary.
5. Figures in brackets pertain to the previous year.
6. Debit, Credit balances and Balances with Banks, are subject to
confirmation and reconciliation.
7. There is a difference of Rs. 5,12,849/- (Rs. 5,12,849/-) in books
records and Excise records pertaining to earlier years and current year
Excise Duty Accounts, coal consumption details & store account are
subject to reconciliations and confirmation.
8. In earlier years, the company has acquired the coal from Western
Coal Field Ltd. (WCL) through the intermediaries ate- auction price
instead of Notified price and the difference was kept as Fixed Deposit
which was to be refunded or adjusted as the case may be as per
judgments of Hon'ble Court against petition. No adjustments in accounts
was made due to uncertainty. During the year 2007-08 on judgment in the
favour of coal users, the company received a refund of Rs. 27,45,910/-
alongwith interest of Rs.4,05,900/- from WCL and the same was treated
as miscellaneous income. The balance amount refundable if any is not
ascertainable and therefore the same will be accounted for as
miscellaneous income if any in the year of receipt.
9. Export Benefits :
The amount available towards Export Benefits under duty exemption or
any other Scheme during the years has been ascertained on the basis of
available records.
10. (a) In view of insufficient information from suppliers regarding
their status as SSI units amount overdue to such undertaking could not
be ascertained.
(b) The company is in the process of compiling the additional
information require to be disclosed under the Micro Small Enterprises
Development Act 2006. The Management does not envisage any material
impact on the financial statement in this regard which has been relied
upon by the Auditors.
11. The Company has only a single reportable Segment in terms of the
requirements of Accounting Standard-17 of the Institute of Chartered
Accountants of India.
12. Related party disclosure (AS-18)
Disclosure of related party transactions as per Accounting Standard 18
of the Institute of Chartered Accountants of India.
13.a. Key Management personnel:
Dr. Damodar Modi Chairman & M.D.
Shri Ramdas Goyal Executive Director
Shri Prakash Bafna Whole Time Director
Shri Ramesh Chandra Goyal Whole Time Director
Shri Yogesh Agrawal Whole Time Director
Smt. Pramila Jajodia Director
Smt. Shashikala Mangal Director
Shri Vinod Garg Director
Shri Ashish Agrawal Director
Shri Satishchandra Mangal Director
Nature and amount of Transactions :
(i) Managerial Remuneration (As detailed in 10 above) Rs. 97,03,770
(Rs. 55,36,960) (Subject to approval in Annual General Meeting)
(ii) Amount received as Unsecured Loan Rs. 3,87,12,157/- (Rs.
3,90,00,483/-) from key Management Personnel & relatives.
(iii) Interest on the above Rs. 42,63,009/- (Rs. 42,58,338/-).
14. Earning per share (EPS) for the Computation as per (AS 20)
(a) Earning per share (EPS) for the year has been computed in
accordance with the Accounting Standard-20 issued by the Institute of
Chartered Accountants of India after considering provision for net
deferred tax liability for the year as stated in note No. 18.
a) In accordance with Accounting Standard 22, 'Accounting for Taxes on
Income' (AS 22), issued by the Institute of Char- tered Accountants of
India, the company has adjusted the difference for deferred tax during
the year.
b) The company expects to generate taxable income., in the coming years
which will enable it to utilize the carried forward unabsorbed
depreciation of MAT credit.
15. The financial statements for the year ended March 31, 2011 were
prepared as per the then applicable, erstwhile Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Companies Act, 1956, the financial statements for the year
ended March 31, 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous years figures have also been reclassified to
conform to this year's classification. The adoption of Revised
Schedule VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial
statements.
16. Information pursuant to the provision of Part IV of Schedule VI of
the Companies Act, 1956 are enclosed.
Mar 31, 2011
1. CONTINGENT LIABILITY NOT PROVIDED FOR:
i) The following cases were pending against the company as confirmed by
company's excise consultants :
(a) Cases related to classification of Plain Starch as modified Starch :
Total Amount Involved Rs. 18,51,55,150/- In the opinion of Excise
Consultants' since the chemical examiner report clearly says that the
starch is plain starch and not modified starch the pending Show Cause
Notices are likely to be dropped on the basis of previous order of the Commissioner.
(b) In the matter of disallowance of Cenvat Credit as Common input used
in Hydrol and demand of 8%, 10% on the value of clearance of Hydrol:
Total Amount Involved Rs. 69,34,608/-.
In the opinion of Excise Consultants' moreover recently this issue has
already been settled by the Hon'ble High Court of Bombay in ithe case
of RALLIS INDIA LTD. versus UNION OF INDIA2009 (233) E.L.T. 301 (Bom.)
wherein it was held that Rule 6(b)(3) has no application is case of
waste and residue. Thus all the demands has no legal base and will
eventually will result into dropping of demands as the Tribunals is
bound to follow High Court Orders.
(c) Demand for Rs. 4,21,765/- Cen vat Credit of Service Tax paid on
outward transportation of finished goods:
In the opinion of Excise Consultants' undoubtedly credit on outward
transportation can not be denied and the demands will be ultimately
dropped.
(d) Show Cause Notices issued under Rule 6(3)(b) i.e. demandof10% of the
value of exempted goods on the ground of a ailment of Cen vat Credit
Total demand Rs. 4,10,05,661/-.
In the opinion of Excise Consultants' the aforesaid show cause notices
has been issued without ascertaining as to whether the Company has
violated the condition of Rule 6. Even if it is assumed that the
Company has violated the condition of Rule 6, in that case also the
show cause notices will be dropped as in the Finance Act, 2010-11,
retrospective amendment has been made wherein it has been provided that
the assesses shall reverse the credit of input and input services used
in manufacture of exempted goods. Thus ultimately the show cause notice
are going to be dropped.
(e) As regard Appeal No. E/3683/2003-NB(SM) Rs. 1,66,334/- in the
matter of Credit on returned goods. In this case the commissioner
(Appeals) vide Order-in-appeal has allowed credit of Rs. 1,04,242/-
vide Order-in-Appeal and disallowed the credit of Rs. 62,592/-. The
Company has filed appeal before Tribunal against disallowance of credit
of Rs. 62,592/-. The Tribunal vide Final Order No. A/669/04-NB(SM)
dated 16.04.2004 has allowed the appeal by way of remand. Hence as on
today there is no demand against the Company.
No provision for the same has been made on the basis of above
contention of the Excise Consultants.
The Company has disputed the demand and preferred appeal before
appealing authorities. No provision has been made for taxation related
to the said demands on the basis of contention of the Board of
Directors of the Company that the appeals will be accepted.
ii) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/-
before Hon'ble MP High Court, Indore out of which Rs. 1,28,000/- has
been deposited & kept in advance as appeal is pending against the court
Decree & the appeal is likely to be decided in Company's favour.
2. Provision on of Income Tax has been made during the year as per
Taxation Laws.
3. Estimated amount of contracts remaining to be executed on Capital
account are not provided is Rs.NIL (Rs.25,00,000/-) against which a sum
of Rs.Nil (Rs. 12,37,064/-) has been paid as advance.
4. During the year provision has been made in the accounts in respect
of Excise duty (Including Cess) of Rs. 4,20,807/- (Rs. 1,50,836/-)
payable on uncleared stock of finished goods lying in the factory
premises as on 31/03/2011 and the same has been considered as an
element of cost for the purpose of valuation of inventory as on
31/03/2011.
5. Figures for the previous year have been regrouped and recasted
wherever necessary.
6. Figures in brackets pertain to the previous year.
7. Debit, Credit balances and Balances with Banks, are subject to
confirmation and reconciliation.
8. There is a difference of Rs. 5,12,849/- (Rs 5,12,849/-) in books
records and Excise records pertaining to earlier years and current year
Excise Duty accounts coal consumption details of store account are
subject to reconciliations and confirmation.
9. In earlier years, the company has acquired the coal from Western
Coal Field Ltd. (WCL) through the intermediaries at e- auction price
instead of Notified price and the difference was kept as Fixed Deposit
which was to be refunded or adjusted as the case may be as per
judgments of Hon'ble Court against petition. No adjustments in accounts
was made due to uncertainty. During the year 2007-08 on judgment in the
favour of coal users, the company received a refund of Rs. 27,45,910/-
along with interest of Rs.4,05,900/- from WCL and the same was treated
as miscellaneous income. The balance amount refundable if any is not
ascertainable and therefore the same will be accounted for as
miscellaneous income if any in the year of receipt.
10. Export Benefits:
The amount available towards Export Benefits under duty exemption or
any other Scheme during the years is not ascertainable. Therefore the
same has not been accounted for during the year and the same will be
accounted for on ascertainment of amount involves.
11. Increase in Managerial Remuneration :
The managerial remuneration has been increased w.e.f. 01.10.2010 and
the same is subject to confirmation of Share Holders in next Annual
General Meeting.
12. (a) In view of insufficient/information from suppliers regarding
their status as SSI units amount overdue to such undertaking could not
be ascertained.
(b) The company is in the process of compiling the additional
information require to be disclosed under the Micro Small Enterprises
Development Act 206. The Management does not envisage any material
impact on the financial statement in this regard which has been relied
upon by the Auditors.
13. The Company has only a single reportable Segment in terms of the
requirements of Accounting Standard-17 of the Institute of Chartered
Accountants of India.
14. Related party disclosure (AS-18)
Disclosure of related party transactions as per Accounting Standard 18
of the Institute of Chartered Accountants of India.
Nature and amount of Transactions :
(i) Managerial Remuneration (As detailed in 10 above) Rs. 55,50,710
(Rs. 69,15,033) (Subject to approval in Annual General Meeting)
(ii) Amount received as Unsecured Loan Rs. 3,90,00,483/- (Rs.
4,28,12,817,/-) from key Management Personnel & relatives.
(iii) Interest on the above Rs. 42,58,338/- (Rs.50,71,537/-).
15. Earning per share (EPS) for the Computation as per (AS 20)
(a) Earning per share (EPS) for the year has been computed in
accordance with the Accounting Standard-20 issued by the Institute of
Chartered Accountants of India after considering provision for net
deferred tax liability for the year as stated in note No. 18.
a) In accordance with Accounting Standard 22, 'Accounting for Taxes on
Income' (AS 22), issued by the Institute of Char- tered Accountants of
India, the company has adjusted the difference for deferred tax during
the year.
The company expects to generate taxable income. In the coming years
which will enable it to utilize the carried forward unabsorbed
depreciation of MAT credit.
16. Information pursuant to the provision of Part IV of Schedule VI of
the Companies Act, 1956 are enclosed.
Note:
1. Figures in brackets represents cash outflow.
2. Figures for previous year have been rearranged and re-grouped
wherever necessary.
3. For purpose of Trade Advances and Trade Payables current
liabilities directly related to other activities have been excluded.
Mar 31, 2010
1. CONTINGENT LIABILITY NOT PROVIDED FOR:
(i) The following cases were pending against the company as confirmed
by company excise consultants :
a) Appeal by Central Excise Department against Order in Original
No.26-27 dtd.21.07.06 f 9,34,36,459/- in the matter of classification
of Maize Starch
b) SCN No. V(35)15-04/2007/Adj. 1/31986 dated 03.12.2007 Rs.26663128/- in
the matter of Classification dispute of Notice No.3/2006.
c) SCN NO. V(35)15-01/2008/Adj.l/28532 dated 22.10.2008 Rs.26458042/- in
the matter of Classification dispute of Maize Starch.
d) Appeal No.E/2990/06/C.Excise dated 06.09.2006 Rs. 4,58,096/-
e) Appeal No.E/1241/06 Rs. 7,33,488/-
f) SCN NO. IV(16)30-318/OT/Pith/Adj/8795 dated 07.12.2007 Rs. 393622/- in
the matter of Disallow of Cenvat Credit as common Input used in Hydrol.
g) SCN NO. IV(16)30-76/08/Pith/Adj/1666 dated 10.03.2008 Rs. 477802/- in
the matter of Disallow of Cenvat Credit as common input used in Hydrol.
h) SCN NO. IV(16)30-336/08/Adj/8667 dated 05.12.2008 Rs. 495842/- in the
matter of Disallow of Cenvat Credit as common input used in Hydrol.
i) SCN NO. iV(16)30-95/08-09/Adj/11450 dated 06.03.2009 Rs. 484387/- in
the matter of Disallow of Cenvat Credit as common input used in Hydrol.
j) SCN NO. IV(16)30-136/06/Pith/5975 dated 11.09.2006 Rs. 470576/- in
the matter of Disallow of Cenvat Credit as common input used in Hydrol.
k) SCN NO. IV(16)30-65/07/Pith/1003 dated 28.02.2007 Rs. 466136/- in the
matter of Disallow of Cenvat Credit as common input used in Hydrol.
l) SCN NO. IV(16)30-66/07/Pith/Adj/1006 dated 28.02.2007 Rs. 484341/-
in the matter of Disallow of Cenvat Credit as common input used in
Hydrol.
m) SCN NO. IV(16)30-43/08/Pith/Adj/3433 dated 12.05.2008 Rs. 406131/- in
the matter of Disallow of Cenvat Credit as common input used in Hydrol.
n) SCN NO. IV(16)30-12/09/Pith/Adj/10048 dated 19.01.2009 Rs. 42464/- in
the matter of Credit availed on service tax paid on outward
transportation.
o) SCN NO. IV(16)30-219/08/Adj/5092 dated 0.07.2008 Rs. 302663/- in the
matter of Credit availed on service tax paid on outward transportation.
p) SCN NO. V(35) 15-02/07/Adj/23327 dt.09.08.2007. Demand of Rs.
20843640/- has been issued on the ground that M/ s Tirupati Starch
availed credit of service tax availed on Input Services which were also
used for exempted goods.
q) SCN NO. V(17) 15- /2007/Adj.1/25123 dt.06/09/2007. Demand of Rs.
16399760/- i.e.10% of value of exempted goods.
r) SCN NO. V(935) 15-02/15982 dt.25.06.2008. Demand of Rs.
3762261/-i.e.10% of value of exempted goods on the ground of non
maintenance of separate record of inputs of dutiable and exempted
goods.
s) Appeal No.E/3683/2003-NB(SM) Rs. 166334/- in the matter of Credit on
returned goods.
In opinion of the excise consultant the demand have no legal base and
will eventually result in dropping of demands and company will not be
required to pay the amount therefore no provision has been made in the
accounts.
(ii) a) The Income Tax assessments for the assessment year 1988-89 to
1994-95 had already been completed and the authorities have made
certain additions due to unsecured loans/share capital etc. and
reducing the amount of unabsorbed depreciation & investment allowance.
The total demand disputed by the company is Rs. 1,12,564/-(Rs.
1,12,564/-) and against this an amount equivalent to demand of earlier
year (alongwith upto date interest) amounting to Rs. 99,114/- (Rs.
99,114) has been deposited and is kept in other advances. The Tribunal
authorities have given some relief and have also confirmed some
disallowances.
b) The Income Tax Assessment for the assessment year 1995-96 was
pending with Honble Tribunal and case was remanded back to AO with
certain direction. Assessing Officer and CIT (A) had confirmed the
addition and raised a demand of Rs. 1,92,586/- The company had preferred
an appeal with Honble ITAT and the same has been settled during the
year no provision for taxation has been made for the said demands on
basis of contention of the board of directors of the company that it
will be made after receipt of revised demand note from IT Authorities.
Although company has made payment of Rs. 1,92,586/-. The interest demand
of Rs. 1,53,648/- is pending.
c) The Income Tax Assessment for the assessment year 1998-99 has also
been completed and the authorities had made additions of Rs. 5,58,640/-
reducing the amount of unabsorbed depreciation and Tribunal has partly
allowed the appeal. The provisions if any will be made on receipts of
amendment of orders after giving effect of the appeal as no demand has
been raised so far.
d) The Income Tax Assessment for the assessment year 2000-2001 has also
been completed and the tribunal has partly allowed the appeal. The
authorities have made an addition of Rs. 95,009/- reducing the amount of
unabsorbed depreciation. The provision if any will be made on receipts
of amendment of earlier orders after giving affect of the appeal as no
demand has been raised so far.
e) The Income tax Assessment for the assessment year 2004-2005 has also
been completed and the authorities have made an addition of Rs.
2,87,094/- with Nil demand reducing the amount of unabsorbed
depreciation. The company had made an appeal with commissioner of
Income Tax (Appeal), Indore against the addition and disallowance.
f) The Income Tax Assessment for the assessment year 2005-2006 has also
been completed and the authorities have made an addition of Rs.
6,00,834/- with Nil demand reducing the amount of unabsorbed
depreciation. The matter is pending with learned CIT (Appeals) II,
Indore.
The Company has disputed the demand and preferred appeal before
appealing authorities. No provision has been made for taxation related
to the said demands pertaining to Excise, Income Tax and Sales Tax on
the basis of contention of the Board of Directors of the Company that
the appeals will be accepted.
v) Court Decree in the case of Smt. Sharda Bai for Rs. 2,53,852/- before
Honble MP High Cpurt, Indore out of which Rs. 1,28,000/- has been
deposited & kept in advance as appeal is pending against the court
Decree & the appeal is likely to be decided in Companys favour.
2. Provision on of Income Tax has been made during the year as per
Taxation Laws.
3. Estimated amount of contracts remaining to be executed on Capital
account are not provided is Rs. 25,00,000/-(Rs. 30,00,000/-) against which
a sum of Rs.12,37,064/- (Rs.16,57,974/-) has been paid as advance.
4. During the year provision has been made in the accounts in respect
of Excise duty (Including Cess) of (Rs. 1,50,836/-) (Rs. 1,12,938/-)
payable on uncleared stock of finished goods lying in the factory
premises as on 31/03/2010 and the same has been considered as an
element of cost for the purpose of valuation of inventory as on
31/03/2010.
5. The Auditors Remuneration during the year is as under:
6. Figures for the previous year have been regrouped and recasted
wherever necessary.
7. Figures in brackets pertain to the previous year.
8. Debit, Credit balances and Balances with Banks, are subject to
confirmation and reconciliation.
9. Managerial Remuneration includes :
10. There is a difference of Rs. 5,12,849/- (Rs. 5,12,849/-) in books
records and Excise records pertaining to earlier years and Excise Duty
accounts are subject to reconciliations and confirmation.
11. In earlier years, the company has acquired the coal from Western
Coal Field Ltd. (WCL) through the intermediaries at e-auction price
instead of Notified price and the difference was kept as Fixed Deposit
which was to be refunded or adjusted as the case may be as per
judgments of Honble Court against petition. No adjustments in accounts
was made due to uncertainty. During the year 2007-08 on judgment in the
favour of coal users, the company received a refund of sf 27,45,910/-
alongwith interest of Rs. 4,05,900/ from WCL and the same was treated
as miscellaneous income. The balance amount refundable if any is not
ascertainable and therefore the same will be accounted for as
miscellaneous income if any in the year of receipt.
12. Export Benefits
Export Benefits under duty exemption advance licence scheme. During the
year the claims amounting to Rs. 9,16,282/- towards Vishesh Krishi Upaj
Yojna and DBPB from Govt.of India, Ministry of Commerce and Industries
has been admitted and Rs. 4,10,242/ has been utilized during the year
by crediting DEPB benefits and VAT ITR. The balance Rs. 5,06,040.00 has
been accounted for as other receipts and any further claim if any
under. Duty exemption pass book scheme duty drawback scheme or other
schemes will be accounted for on ascertainment of amount involved.
13. (a) In view of insufficient information from suppliers regarding
their status as SSI units amount overdue to such undertaking could not
be ascertained.
(b) The company is in the process of compiling the additional
information require to be disclosed under the Micro Small Enterprises
Development Act 2006. The Management does not envisage any material
impact on the financial statement in this regard which has been relied
upon by the Auditors.
14. The Company has only a single reportable Segment in terms of the
requirements of Accounting Standard-17 of the Institute of Chartered
Accountants of India.
15. Related party disclosure (AS-18)
Disclosure of related party transactions as per Accounting Standard 18
of the Institute of Chartered Accountants of India.
Key Management personnel :
Dr. Damodar Modi Chairman & M.D.
Srjri Ramdas Goyal Executive Director
Shri Prakash Bapna Whole Time Director
Shri Ramesh Chandra Goyal Whole Time Director
Shri Yogesh Agrawal Whole Time Director
Smt. Pramila Jajodia Director
Smt. Shashikala Mangal Director
Shri Vinod Garg Director
Shri Ashish Agrawal Director
Shri Tejpal Lunawat Director
Nature and amount of Transactions:
(i) Managerial Remuneration (As detailed in 10 above) Rs. 69,15,033.00
(Rs. 44,41,608.00) (Subject to approval in Annual General Meeting)
(ii) Amount received as Unsecured Loan Rs. 4,28,12,817/- (Rs.
5,23,62,981/-) from key Management Personnel & relatives.
(iii) Interest on the above Rs. 50,71,537/- (Rs. 58,93,374/-).
16. Earning per share (EPS) for the Computation as per (AS 20)
17. Information persuant to the provision of Part IV of Schedule VI of
the Companies Act, 1956 are enclosed.