Mar 31, 2016
1. Retirement benefits namely gratuity & earned leave liability for Rajahmundry employees has been duly provided in Allahabad books.
2. Segment Information As per AS - 17
3. Business Segment
4. Segment Revenue
5. Business Segments:
The Company has considered âBusiness Segmentâ as the Primary Segment for disclosures, which comprises of Flat Glass .
6. Geographical Segments:
Geographical Segment is the âSecondary Segmentâ and location of its market I.e. âIndiaâ and âOut of Indiaâ.
7. Segment Revenue :
Segment Revenue comprises of Sales and related income that are directly identifiable with the Segment.
8. Segment Expenses:
Directly identifiable with the segment are charged to the respective Segment.
9. All the accounting policies adopted for the Segment reporting are in line with those of the Company.
10. No transaction of sale, purchase or supply of any goods material or services has been entered into by the company with the promoters, Directors their relatives etc.
11. Key management personnel - Sri J K Agrawal, Managing Director (Managerial remuneration paid is Rs18.37 lacs), Sri A K Dhawan, Director (Finance) (Remuneration as CFO paid isRs. 15.90 lacs).
12. As per AS-22 Taxes on Income:
No provision of Income Tax has been made due to the carried forward losses and unabsorbed depreciation of earlier year.
As per AS-22 deferred tax assets should be recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. AS-22 also describes that where an enterprise has unabsorbed depreciation or carry forward losses under tax laws, deferred tax should be recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will available against which such deferred tax assets can be realized.
Since there is no virtual certainty supported by convincing evidence for any future taxable income, deferred tax assets have not been recognized during the current year.
Note No:- 13
As per AS-28 âImpairment of Assetsâ
During the year, closing stock of finished products has been valued by including the estimated amount of excise duty payable thereon, Rs17.98 lacs as per the ICAI guidelines, However, this has no effect on the profit of the company for the year.
14. Guarantee, Counter Guarantee issued in favour of Bank are R.52.89 lacs (2015- Rs.166.82 lacs) and in respect of Letter of Credit Rs.92Lacs(2015-Rs.60 lacs):
15. Total expenditure incurred on Research & Development during the year Rs. 1.20 lacs (2014-15 Rs.0.26 Lacs)
16.. Depreciation has not been provided for Allahabad Plants as the same has been closed since March 2006 and due to wear and tear over the years they are presently unusable.
17. No Revenue recognition has been postponed during the current year
18. During the year, closing stock of finished products have been valued by including the estimated amount of Excise Duty payable thereon Rs.17.98 lacs as per the ICAI guidelines, However, this has no effect on the profit of the Company for the year.
19. Figures of previous year have been regrouped and rearranged wherever found necessary.
20. No Borrowing cost has been capitalized during the year
21. There are no SSI units to whom a sum of Rs. 1.00 Lac is due for more than 30 days
21. Principal amounting to Rs. 1087.00 Lacs and Interest default was Rs1788.00. Lacs during the current year. (Last year Principal default was Rs.1763.00 lacs and Interest default was Rs. 2174.00Lacs).
22. Installed Capacity as on 31.03.2016 and Actual Production (Net of Breakages):
Note No:- 23 Accounting Policies:
24. Fixed Assets:
25. Fixed Assets are shown at historical cost except for certain land, building and Plant and Machinery, which are shown at revalued amount.
26. In respect of projects involving construction, related pre-operation expenses up to commencement of production form part of the value of the assets capitalized
27. Depreciation:
28. Depreciation is charged in the accounts under straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.
29. Depreciation on additions to/deductions from Fixed Assets during the year is charged on pro-rata basis from/up to the month in which the asset is available for use/disposal.
30. Assets costing up to Rs. 5000/- are fully depreciated in the year of capitalization
31.. Borrowing Cost
Borrowing cost attributable to the Fixed Assets during their construction are capitalized. Other borrowing costs are recognized as an expense in the period in which they are incurred.
32.. Inventories:
33. Raw material, fuel, packing materials and stores are valued at cost, on weighted average basis or market price whichever is lower.
34. Finished goods are valued at lower of cost or net realizable value.
35. Investment:
Investments are intended for long-term and are carried at cost. Provision is made for diminution, other than temporary, in the value of such investments.
36. Retirement Benefits:
Retirement benefits are dealt in the following manner:
37. Provident fund is accounted on accrual basis with contributions made to recognized fund.
38. Gratuity and superannuation liabilities are determined on the basis of actuarial valuations done at the end of the year and accordingly contributions are made to recognized fund set-up for the purpose.
39. Leave encashment benefit on retirement is determined on the basis of actuarial valuation and such liability is provided in the accounts.
40.. Foreign Exchange transactions:
41. Foreign Currency transactions are initially recorded at the rates of exchange ruling on the date of transaction.
42. Foreign Currency Loans/Deposits/Liabilities are reported with reference to the rates of exchange ruling at the year end and the difference resulting from such translations as well as due to payment/ discharge of liabilities in foreign currency related to fixed assets / capital work-in-progress is adjusted in their carrying cost and that related to current assets are recognized as revenue/expenditure during the year.
43. Export Sales in Foreign Currency are accounted for at the exchange rate prevailing at the time of realization. Expenditure in Foreign Currency is accounted for at the Exchange Rate prevailing at the time of expenditure.
44.. Income recognition
Sale of goods is recognized on dispatches to customers.
Interest is recognized on time proportion basis, dividend is recognized when right to receive payment is established.
Mar 31, 2015
1. Contingent liabilities and receivables :
i) Contingent liabilities:
(a) The Company received Show-cause cum Demand Notices in routine way
regarding non-admissibility of Modvat credit due to technical defects
in documentation. Most of the defects are curable and are allowed at
the first or second stage of hearing. As on 31.03.2014, such show-
cause cum demand notices proposing to disallow modvat credit stood at
Rs. 111.00 lacs (2013- 14 Rs. 122.00 lacs).
(b) The Commissioner Central Excise reconfirmed demand of Rs 20.96
crores and imposed equal penalty thereon after adjudicating the case.
He also imposed penalties on Directors and Senior Officers of the
Company. We had filed appeal against the order along with the stay
application for waiver or pre deposit before Central Excise Tribunal
New Delhi who have allowed unconditional stay.
(c) Sales Tax Department has created a demand of Rs. 107.21 lacs
(2014-Rs.107.21 lacs) disputing the rate of tax on Tinted Glass and
other sales tax matters, which the Co. has not admitted and filed
appeal against above mentioned demands, However, the Hon'ble Court has
dismissed our appeal against which we have filed SLP before Hon'ble
Supreme Court and the SLP has been admitted on 20.04.2011 for final
hearing. Allahabad High Court has also disallowed our appeal against
higher rate of tax on Tinted Glass for period subsequent to 1996
onwards and we filed SLP against the same before the Honorable Supreme
Court to be tied up and to with earlier hearing applications.
(d) Modvat credit on capital goods availed during installation of Float
Glass plant to the extent of Rs. 7.26 Crores was disallowed by
Jurisdictional Deputy Commissioner and equal penalty was imposed by
wrongly treating Float Glass as a separate and independent unit while
the fact is otherwise. Float Glass Plant is an expansion of the then
factory and the department itself has endorsed Float Glass Plant in our
Central Excise License (Registration Certificate) as expansion.
Against, the order of the Commissioner (Appeals), we have filed appeal
before CESTAT, New Delhi, which has completely waived pre-deposit of
50% of the required amount. Now the case will be heard and decided on
merits in due course.
(e) There are three (3) EPCG licenses wherein in case of the main
license for input of 2nd hand figured glass though the export
obligations have been completed by us but necessary documents have not
been filled with DGFT Kanpur. Hence a liability of Rs 117 lacs plus
interest Rs 288 lacs as on 31st of March 2015 is disputed. In case of
another license the duty amount due is Rs 79 lacs plus interest Rs 165
lacs total Rs 244 lacs. In case of third license which is for frosting
machine the liability is about R 10 lacs. In case of advance licenses
the duty amount due is Rs 107 lacs and another Rs 260 lacs is due on
account of interest and penalty. As our case is before BIFR hence we
have requested in our debt restructuring proposal for waiver of
interest and penalty amount. In case of the advance licenses, once our
balance export made during the years 1995-2005 are accepted by DGFT
Kanpur then there advance licenses will also get fulfilled there will
not be any liability on this and therefore final liability is only on
second and third EPCG license that is Rs 79 lacs which may arise.
(f) Recently the company has also filled appealed before Tribunal
against order passed by appellate Commissioner Allahabad for Rs
788191/- and Rs 421831/- demanding duty on sound delivery charges
against government supplies
(g) The company has since paid the full amount to the 56 workers under
the arbitrator clause as ordered by the Supreme Court.
(h) Our request for remission on Duty of Finished goods has been
rejected by the Assistant Commissioner, thus creating a demand of Rs
43237/- and equal penalty thereon. We have filed appeal against the
said order.
(i) Being aggrieved with the order of Commissioner Appeals confirming
demand of Rs 130372 and imposing equal penalty thereon for allegedly
charging higher prices from deposit compared to expected prices . We
have filed appeal before Central Excise Tribunal Delhi which has
directed us to deposit of the balance amount till the case is finally
decided The amount has been adjusted against the input credit available
with us.
2. As per AS 15
Retirement benefits namely gratuity & earned leave liability for
Rajahmundry employees has been duly provided in Allahabad books.
Segment Reporting as per Accounting Standard AS-17 issued by Institute
of Chartered Accountants of India.
(i) Business Segments:
The Company has considered "Business Segment" as the Primary Segment
for disclosures, which comprises of Flat Glass .
(ii) Geographical Segments:
Geographical Segment is the "Secondary Segment" and location of its
market I.e. "India" and "Out of India".
(iii) Segment Revenue :
Segment Revenue comprises of Sales and related income that are directly
identifiable with the Segment.
(iv) Segment Expenses:
Directly identifiable with the segment are charged to the respective
Segment.
(v) All the accounting policies adopted for the Segment reporting are
inline with those of the Company. Note No:- 25
3. As per AS-18 "Related Party Disclosures" :
(a) No transaction of sale, purchase or supply of any goods material or
services has been entered into by the company with the promoters,
Directors their relatives etc.
(b) Key management personnel - Sri J K Agrawal, Managing Director
(Managerial remuneration paid is Rs 19.01 lacs), Sri A K Dhawan,
Director (Finance) (Managerial remuneration paid is Rs. 8.41 lacs).
4. As per AS-22 Taxes on Income:
No provision of Income Tax has been made due to the carried forward
losses and unabsorbed depreciation of earlier year.
As per AS-22 deferred tax assets should be recognized and carried
forward only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. AS-22 also describes that where an
enterprise has unabsorbed depreciation or carry forward losses under
tax laws, deferred tax should be recognized only to the extent that
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will available against which such
deferred tax assets can be realized.
Since there is no virtual certainty supported by convincing evidence
for any future taxable income, deferred tax assets have not been
recognized during the current year.
5. As per AS-28 'Impairment of Assets'
During the year, closing stock of finished products has been valued by
including the estimated amount of excise duty payable thereon, Rs 22.50
lacs as per the ICAI guidelines, However, this has no effect on the
profit of the company for the year.
B. Guarantee, Counter Guarantee issued in favour of Bank are R.166.82
lacs (2014- Rs.166.82 lacs ) and in respect of Letter of Credit Rs.60
Lacs (2014-Rs.60 lacs ):
C. Total expenditure incurred on Research & Development during the
year Rs. 0.26 lacs (2013- 14 Rs.0.72 Lacs)
D. Depreciation has not been provided for Allahabad Plants as the same
has been closed since March 2006 and due to wear and tear over the
years they are presently unusable.
E. No Revenue recognition has been postponed during the current year
F. During the year, closing stock of finished products have been valued
by including the estimated amount of Excise Duty payable thereon
Rs.22.50 lacs as per the ICAI guidelines, However, this has no effect on
the profit of the Company for the year.
G. Figures of previous year have been regrouped and rearranged
wherever found necessary.
H. No Borrowing cost has been capitalized during the year
I. The names of SSI Units to whom Rs. 1.00 lac or more is outstanding
for more than 30 days are Varun Industries, Capricon Stypack (I) Pvt
Ltd. and Bedi Enterprises. No interest has been provided on these dues
as the BIFR has declared it as a sick company.
J. Principal amounting to Rs. 1763.00 Lacs and Interest default was Rs
2174.00. Lacs during the current year. (Last year Principal default was
Rs.2908.00 lacs and Interest default was Rs. 1724.50 Lacs).
Mar 31, 2014
NOTE NO.1 Contingent liabilities and receivables :
i) Contingent liabilities:
(a) The Company received Show-cause cum Demand Notices in routine way
regarding non- admissibility of Modvat credit due to technical defects
in documentation. Most of the defects are curable and are allowed at
the first or second stage of hearing. As on 31.03.2014, such show-
cause cum demand notices proposing to disallow modvat credit stood at
Rs. 122.00 lacs (2012- 13 Rs. 122.00 lacs).
(b) The Commissioner Central Excise reconfirmed demand of Rs 20.96
crores and imposed equal penalty thereon after adjudicating the case.
He also imposed penalties on Directors and Senior Officers of the
Company. We have filed appeal against the order along with the stay
application for waiver or pre deposit before Central Excise Tribunal
New Delhi.
(c) Sales Tax Department has created a demand of Rs. 107.21 lacs
(2013-Rs.107.21 lacs) disputing the rate of tax on Tinted Glass and
other sales tax matters, which the Co. has not admitted and filed
appeal against above mentioned demands, However, the Hon''ble Court has
dismissed our appeal against which we have filed SLP before Hon''ble
Supreme Court and the SLP has been admitted on 20.04.2011 for final
hearing. Allahabad High Court has also disallowed our appeal against
higher rate of tax on Tinted Glass for period subsequent to 1996
onwards and we are filing SLP against the same before the Honorable
Supreme Court to be tied up and to be decided in due course
(d) Modvat credit on capital goods availed during installation of Float
Glass plant to the extent of Rs. 7.26 Crores was disallowed by
Jurisdictional Deputy Commissioner and equal penalty was imposed by
wrongly treating Float Glass as a separate and independent unit while
the fact is otherwise. Float Glass Plant is an expansion of the then
factory and the department itself has endorsed Float Glass Plant in our
Central Excise License (Registration Certificate) as expansion.
Against, the order of the Commissioner (Appeals), we have filed appeal
before CESTAT, New Delhi, which has completely waived pre-deposit of
50% of the required amount. Now the case will be heard and decided on
merits in due course.
(e) There is EPCG license liability for Rs. 276 lacs plus interest
amounting to Rs.479 lacs for non- fulfillment of export obligation in
time. Our appeal has been dismissed by the Tribunal and thus we have
filed appeal before BIFR for stay of recovery of the amount and waiver
of interest amount. Besides DGFT has issued show case notices for
recovery of Rs.405 lacs on account of Non-fulfillment of Export
obligations against advance licenses. We have fulfilled the export
obligation against some of the licenses but the documentary evidence
being submitted by us is not acceptable to the Department. The company
has filed appeal before BIFR vide its Draft Restructuring Proposal for
waiving the export obligation and interest thereon.
(f) The termination of the services of the 50 workers employed in PPG
Plant was referred to arbitration which ruled the termination as
illegal and recommended for restoration of concerned employees back in
the services. The Hon''ble Allahabad High Court also confirmed the
order. The company filed an SLP before the Hon''ble Supreme Court where
the matter has been ultimately settled and the company has been asked
to pay the dues of concerned workers as computed by the labour court,
Allahabad in four installments. The company has already paid Rs.61 lacs
in two installments against total dues of Rs.1,23,39,061 by now. (g)
Our request for remission on Duty of Finished goods has been rejected
by the Assistant Commissioner, thus creating a demand of Rs 43237/- and
equal penalty thereon. We have filed appeal against the said order.
(h) Being aggrieved with the order of Commissioner Appeals confirming
demand of Rs 130372 and imposing equal penalty thereon for allegedly
charging higher prices from deposit compared to expected prices . We
have filed appeal before Central Excise Tribunal Delhi which has
directed us to deposit of the balance amount till the case is finally
decided The amount has been adjusted against the input credit available
with us.
Segment Reporting as per Accounting Standard AS-17 issued by Institute
of Chartered Accountants of India. (i) Business Segments:
The Company has considered "Business Segment" as the Primary Segment
for disclosures, which comprises of Flat Glass .
(ii) Geographical Segments:
Geographical Segment is the "Secondary Segment" and location of its
market I.e. "India" and "Out of India".
(iii) Segment Revenue :
Segment Revenue comprises of Sales and related income that are directly
identifiable with the Segment.
(iv) Segment Expenses:
Directly identifiable with the segment are charged to the respective
Segment.
(v) All the accounting policies adopted for the Segment reporting are
inline with those of the Company.
Note No:- 25
As per AS-18 "Related Party Disclosures" :
(a) No transaction of sale, purchase or supply of any goods material or
services has been entered into by the company with the promoters,
Directors their relatives etc.
(b) Key management personnel - Sri J K Agrawal, Managing Director
(Managerial remuneration paid is Rs0.32 lacs), Sri A K Dhawan, Director
(Finance) (Managerial remuneration paid is Rs. 8 .09 lacs).
Note No:- 2
As per AS-22 Taxes on Income:
No provision of Income Tax has been made due to the carried forward
losses and unabsorbed depreciation of earlier year.
As per AS-22 deferred tax assets should be recognized and carried
forward only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. AS-22 also describes that where an
enterprise has unabsorbed depreciation or carry forward losses under
tax laws, deferred tax should be recognized only to the extent that
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will available against which such
deferred tax assets can be realized.
Since there is no virtual certainty supported by convincing evidence
for any future taxable income, deferred tax assets have not been
recognized during the current year.
Note No:- 3
As per AS-28 "Impairment OF Assets
During the year, closing stock of finished products has been valued by
including the estimated amount of Excise Duty payable thereon, Rs.64.60
lacs as per the ICAI guidelines, However, this has no effect on the
profit of the Company for the year.
Note No:- 4
1. Other points
A. Earnings Per Share
B. Guarantee, Counter Guarantee issued in favour of Bank are R.166.82
lacs (2013- Rs.166.82 lacs ) and in respect of Letter of Credit Rs.60
Lacs(2013-Rs.40 lacs ):
C. Total expenditure incurred on Research & Development during the
year Rs.72392.19 (2013- Rs.0.86 Lacs)
D. Depreciation amounting to Rs. 647.15 lacs has not been provided
during the year for Float as the Plant was closed during the year.
E. No Revenue recognition has been postponed during the current year
F. During the year, closing stock of finished products have been
valued by including the estimated amount of Excise Duty payable thereon
Rs.64.60 lacs as per the ICAI guidelines, However, this has no effect
on the profit of the Company for the year.
G. Figures of previous year have been regrouped and rearranged
wherever found necessary. H. No Borrowing cost has been capitalized
during the year
I. The names of SSI Units to whom Rs. 1.00 lac or more is outstanding
for more than 30 days are Varun Industries, Capricon Stypack (I) Pvt
Ltd. and Bedi Enterprises. No interest has been provided on these dues
as the BIFR has declared it as a sick company.
J. Principal amounting to Rs.2908 Lacs and Interest default was
Rs1724.50. Lacs during the current year. (Last year Principal default
was Rs.5090.94 lacs and Interest default was Rs. 6485.24 Lacs).
Mar 31, 2013
NOTE N0.1 Contingent liabilities and receivables :
i) Contingent liabilities:
(a) The Company received Show-cause cum Demand Notices in routine way
regarding non- admissibility of Modvat credit due to technical defects
in documentation. Most of the defects are curable and are allowed at
the first or second stage of hearing. As on 31.03.2013, such show-cause
cum demand notices proposing to disallow modvat credit stood at Rs.
122.00 lakhs (2011-12 Rs. 122.00 lakhs).
(b) The Commissioner Central Excise reconfirmed demand of Rs 20.96
crores and imposed equal penalty thereon after adjudicating the case.
He also imposed penalities on Directors and Senior Officers of the
Company. We have filed appeal against the order along with the stay
application for waiver or pre deposit before Central Excise Tribunal
New Delhi.
(c) Sales Tax Department has created a demand of Rs. 107.21 lakhs
(2012-Rs.107.21 lacs) disputing the rate of tax on Tinted Glass and
other sales tax matters, which the Co. has not admitted and filed
appeal against above mentioned demands, However, the Hon''ble Court has
dismissed our appeal against which we have filed SLP before Hon''ble
Supreme Court and the SLP has been admitted on 20.04.2011 for final
hearing. Allahabad High Court has also disallowed our appeal against
higher rate of tax on Tinted Glass for period subsequent to 1996
onwards and we are filing SLP against the same before the Honorable
Supreme Court to be tied up and to be decided in due course
(d) Modvat credit on capital goods availed during installation of Float
Glass plant to the extent of Rs. 7.26 Crores was disallowed by
Jurisdictional Deputy Commissioner and equal penalty was imposed by
wrongly treating Float Glass as a separate and independent unit while
the fact is otherwise. Float Glass Plant is an expansion of the then
factory and the department itself has endorsed Float Glass Plant in our
Central Excise License (Registration Certificate) as expansion.
Against, the order of the Commissioner (Appeals), we have filed appeal
before CESTAT, New Delhi, which has completely waived pre-deposit of
50% of the required amount. Now the case will be heard and decided on
merits in due course.
(e) There is EPCG license liability for Rs. 276 lakhs plus interest
amounting to Rs.479 lakhs for non-fulfillment of export obligation in
time. Our appeal has been dismissed by the Tribunal and thus we have
filed appeal before BIFR for stay of recovery of the amount and waiver
of interest amount. Besides DGFT has issued show case notices for
recovery of Rs.405 lakhs on account of Non-fulfillment of Export
obligations against advance licenses. We have fulfilled the export
obligation against some of the licenses but the documentary evidence
being submitted by us is not acceptable to the Department. The company
has filed appeal before BIFR vide its Draft Restructuring Proposal for
waiving the export obligation and interest thereon.
(f) The termination of the services of 50 workers employed in PPG was
referred to Arbitration and the arbitrator by its award dated
31.10.2006 declared the termination as illegal and recommended for
restoration of the concerned employees in the services the matter was
agitated before Honorable High Court of Allahabad which also conformed
the award by its order dt. 13.2.2008. An SLP was ultimately filed
before the Supreme Court which stayed the operation of the award
subject to the condition that the company deposits Rs.55 lakhs with
Deputy Labour Commissioner (DLC), Allahabad as interim relief to the
concerned workers.
The company has already deposited Rs 55 lacs with DLC, Allahabad who
under instruction of the Honourable Supreme Court submitted computation
of concerned worker dues up to Dec 2006, but the same has been disputed
by both workers and the company and the matter is subjudice before
labour Court.
(g) Our request for remission on Duty of Finished goods has been
rejected by the Assistant Commissioner, thus creating a demand of Rs
43237/- and equal penalty thereon. We have filed appeal against the
said order.
(h) Being aggrieved with the order of Commissioner Appeals confirming
demand of Rs 130372 and imposing equal penalty thereon for allegedly
charging higher prices from deposit compared to expected prices . We
have filed appeal before Central Excise Tribunal Delhi which haS
directed us to deposit of the balance amount till the case is finally
decided The amount has been adjusted against the input credit available
with us.
Note No.2 As per AS 15
Retirement benefits namely gratuity & earned leave liability for
Rajahmundry employees has been duly provided in Allahabad books.
Segment Reporting as per Accounting Standard AS-17 issued by Institute
of Chartered Accountants of India. (i) Business Segments:
The Company has considered "Business Segment" as the Primary Segment
for disclosures, which comprises of Flat Glass.
(ii) Geographical Segments:
Geographical Segment is the "Secondary Segment" and location of its
market I.e. "India" and "Out of India".
(iii) Segment Revenue:
Segment Revenue comprises of Sales and related income that are directly
identifiable with the Segment.
(iv) Segment Expenses:
Directly identifiable with the segment are charged to the respective
Segment.
(v) All the accounting policies adopted for the Segment reporting are
inline with those of7 the
Company.
Note No:- 3
As per AS-18 "Related Party Disclosures"
(a) No transaction of sale, purchase or supply of any goods material or
services has been entered into by the company with the promoters,
Directors their rSfatiVe^etc.
(b) Key management personnel - Sri J K Agrawal, Managing Director
(Managerial remuneration paid is Rs. 1.52 lacs), Sri A K Dhawan,
Director (Finance) (Managerial- remuneration paid isHs.7.86 lakhs).
Note No:- 4
As per AS-22 Taxes on Income:
No provision of Income Tax has been made due to the carried forward
losses and unabsorbed depreciation of earlier year.
As per AS-22 deferred tax assets should,be recognized and carried
forward only to the extent that there is reasonable certainty that
sufficient fujtuf(| taxable jrtpome will be available against which
such deferred tax assets can.be,r^aljz,ed. AS-<>2 aJ[s.Q jdes.qribes
that where an enterprise has unabsorbed depreciation or carry forward
losses under tax laws, deferred tax should be recognized only to the
extent tba,t there Mirtujaj ce^ajpty supported by^pnvincing evidence
that sufficient future taxable income will available against which,such
deferred tax assets can be reateed.
Since there is no virtual certainty supported,, l-yconvincing
eyjd(er>ce,|pr any''.future,taxable income, deferred tax assets-have not
beer* recognized during the current year,,
Note No:- 5
As per AS-28 "Impairment OF Assets
During the year, clpsjrjg ..stock of finished ^coduct^ h^s been yaM^Qd
b^ including the estimated, amount o^Exgjse. Duty payabj^ thereon,
Rs.7;Q3 lakhs as^per the JCAI ,g.ujgelines, However, this has no,
effect on the profit of. the Qwrtoany fp£ $e year.
Note No:- 6
1. Other points
A. Earnings Per Share :
B. Guarantee, Counter Guarantee issued in favour of Bank are 166.82
lacs (2012- Rs. Nil) and in respect of Letter of Credit R:s.40 Lacs
(2011 -Rs.40 lacs):
C. " Total expenditure incurred on Research & Development during the
year was Rs.0.86 lacs (2012-Nil)
D. Depreciation amounting to Rs.647.15 lakhs has not been provided
during the year for Float as the Plant was closed during the year.''
E. No Revenue recognition has been postponed during the current year
F. During the year, closing stock of finished products have been
valued by including the estimated amount of Excise Duty payable thereon
Rs.7.03 lakhs as per the ICAI guidelines, However, this has no effect
on the profit of the Company for the year.
G. Figures of previous year have been regrouped and rearranged
wherever found necessary. H. No Borrowing cost has been capitalized
during the year
I. The names of SSI Units to whom Rs. 1.00 lakh or moij! is
outstanding for more than 30 days are Varun Industries, Capricon
Stypack (I) Pvt Ltd. and Bedi Enterprises. No interest has been
provided on these dues as the BlFR has declared it as a sick company.
J. Principal amounting to Rs.5090.04 Lakhs and Interest default was
Rs.6485.24 Lakhs during the current year. (Last year Principal default
was Rs. 5471.90lakhs and Interest default was Rs. 6485.24 Lakhs).
Mar 31, 2012
NOTE N0.1 Contingent liabilities and receivables :
i) Contingent liabilities:
(a) The Company received Show-cause cum Demand Notices in routine way
regarding non-admissibility of Modvat credit due to technical defects
in documentation. Most of the defects are curable and are allowed at
the first or second stage of hearing. As on 31.03.2012, such show-cause
cum demand notices proposing to disallow modvat credit stood at Rs.
122.00 lakhs (2010-11 Rs. 137.55 lakhs).
(b) As reported earlier the Central Excise Tribunal New Delhi had
remanded the Ex-parte order passed earlier by Commissioner Central
Excise Allahabad confirming the demand of Rs.20.96 crores with equal
penalty thereon. Now the case is fixed for fresh hearing by present
Commissioner of Central Excise, Allahabad.
(c) Sales Tax Department has created a demand of Rs. 107.21 lakhs
(2011-Rs.107.21 lacs) disputing the rate of tax on Tinted Glass and
other sales tax matters, which the Co. has not admitted and filed
appeal against above mentioned demands, However, the Hon'ble Court has
dismissed our appeal against which we have filed SLP before Hon'ble
Supreme Court and the SLP has been admitted on 20.04.2011 for final
hearing.
(d) Modvat credit on capital goods availed during installation of Float
Glass plant to the extent of Rs. 7.26 Crores was disallowed by
Jurisdictional Deputy Commissioner and equal penalty was imposed by
wrongly treating Float Glass as a separate and independent unit while
the fact is otherwise. Float Glass Plant is an expansion of the then
factory and the department itself has endorsed Float Glass Plant in our
Central Excise License (Registration Certificate) as expansion.
Against, the order of the Commissioner (Appeals), we have filed appeal
before CESTAT, New Delhi, which has completely waived pre-deposit of
50% of the required amount. Now the case will be heard and decided on
merits in due course.
(e) EPCG license liability for Rs. 276 lakhs plus interest amounting to
Rs.479 lakhs for non-fulfillment of export obligation in time. Our
appeal has been dismissed by the Tribunal and thus we have filed appeal
before BIFR for stay of recovery of the amount and waiver of interest
amount. Besides DGFT has issued show case notices for recovery of
Rs.405 lakhs on account of Non-fulfillment of Export obligations
against advance licenses we have fulfilled the export obligation
against some of the licenses but the documentary evidence being
submitted by us is not acceptable to the Department. The company has
filed appeal before BIFR vide its Draft Restructuring Proposal for
waiving the export obligation and interest thereon.
(f) The termination of the services of 50workers employed in PPG Plant
was referred to Arbitration and the Arbitrator by its award dated
31.10.2006 declared the termination as illegal and recommended for
restoration of the concerned employees in the services the matter was
agitated before Hon'ble High Court of Allahabad which also confirmed
the award by its order dt. 13.2.2008. An SLP was ultimately filed
before the Supreme Court which stayed the operation of the award
subject to the condition that the company deposits Rs.55 lacs with
Deputy Labour Commissioner (DLC), Allahabad as interim relief to the
concerned workers.
The company has already deposited Rs.55 lacs with DLC, Allahabad, The
Hon'ble Supreme Court also directed DLC, Allahabad to submit a report
computing the total dues of the concerned workers
The company has already deposited Rs.55 lacs with DLC, Allahabad, The
Hon'ble Supreme Court also directed DLC, Allahabad to submit a report
computing the total dues of the concerned workers upto 30.12.2006.
During this process 15 workers have already taken their final accounts
leaving only 35 workers to be settled. As per our records the total
dues of the concerned workers comes to Rs.191.95 lakhs out of which PF
dues account for Rs. 120.62 lakhs leaving a balance of Rs.71.34Lakhs
against which we have deposited Rs.55 lacs with DLC, Allahabad. Thus
the net due Works out to Rs.16.34Lakhs but DLC, Allahabad has also
included in its report payment of salary for those workers for the
period 23.1.2004 to 5.1.2005 amounting to Rs.20.52 Lakhs during which
period he workers were on strike the dispute was settled by an
agreement between Union and the management in presence of the then
Deputy Labour Commissioner on 20.3.2006 whereby an ex-cretia payment of
Rs. 12000 was given to each of the worker. We have raised this point
and hence requested DLC, Allahabad to send the supplementary report to
the Hon'ble Supreme Court incorporating the above correction. The next
date of hearing is on 29.10.2012.
(ii) Contingent receivables:
(a) Refund claims of Rs. 340 lakhs (December 2010 - Rs. 340 lakhs) for
Allahabad unit and Rs. 27.67 lakhs for Rajahmundry unit were pending
before Appellate Authorities. Out of the above refund claim of Rs. 52
lakhs has been received back. We have also received further refund
order for Rs. 189 Lacs on account of Allahabad unit subject to
furnishing of Bank Guarantee in line with the order passed by Hon'ble
Supreme Court in the case of earlier refund claim of Rs. 52 lacs . We
have been pursuing the matter with the Deptt and also of earlier
hearing of SLP filed by department before Hon'ble Supreme Court. Modvat
credit to the tune of Rs.30.50 lacs is due to the Company at its
Rajamundry Plant.
Note No-2
(A) Segment Information As per AS - 17
(i) Business Segment
(1) Segment Revenue
Segment Reporting as per Accounting Standard AS-17 issued by Institute
of Chartered Accountants of India.
(i) Business Segments:
The Company has considered "Business Segment" as the Primary Segment
for disclosures, which comprises of Flat Glass and Neutral Glass Tube.
(ii) Geographical Segments:
Geographical Segment is the "Secondary Segment" and location of its
market I.e. "India" and "Out of India".
(iii) Segment Revenue :
Segment Revenue comprises of Sales and related income that are directly
identifiable with the Segment.
(iv) Segment Expenses:
Directly identifiable with the segment are charged to the respective
Segment.
(v) All the accounting policies adopted for the Segment reporting are
inline with those of the Company.
Note No:- 3
As per AS-18 "Related Party Disclosures" :
(a) No transaction of sale, purchase or supply of any goods material or
services has been entered into by the company with the promoters,
Directors their relatives etc.
(b) Key management personnel - Sri J K Agrawal, Managing Director
(Managerial remuneration paid is Rs. Nil), Sri A K Dhawan, Director
(Finance) (Managerial remuneration paid is Rs.8.19 lakhs).
Note No:- 4
As per AS-22 Taxes on Income:
No provision of Income Tax has been made due to the carried forward
losses and unabsorbed depreciation of earlier year.
As per AS-22 deferred tax assets should be recognized and carried
forward only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. AS-22 also describes that where an
enterprise has unabsorbed depreciation or carry forward losses under
tax laws, deferred tax should be recognized only to the extent that
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will available against which such
deferred tax assets can be realized. Since there is no virtual
certainty supported by convincing evidence for any future taxable
income, so deferred tax assets has not been recognized during the
current year.
Note No:- 5
As per AS-28 "impairment OF Assets
During the year, closing stock of finished products have been valued by
including the estimated amount of Excise Duty payable thereon Rs. 15.41
lakhs as per the ICAI guidelines, however this has no effect on the
profit of the Company for the year.
B. Guarantee, Counter Guarantee issued in favour of Bank are Nil
(2011- Rs. 57.68 lakhs) and in respect of Letter of Credit Rs.40 Lacs
(2011-Rs.40 lacs):
C. Total expenditure incurred on Research & Development during the
year was Rs. Nil (2011- Nil)
D. Depreciation amounting to Rs.647.15 lakhs has not been provided
during the year for Float as the Plant was closed during the year.
E. No Revenue recognition has been postponed during the current year
F. During the year, closing stock of finished products have been
valued by including the estimated amount of Excise Duty payable thereon
Rs.15.41 lakhs as per the ICAI guidelines, however this has no effect
on the profit of the Company for the year.
G. Figures of previous year have been regrouped and rearranged
wherever found necessary.
H. No Borrowing cost has been capitalized during the year
I. The names of SSI Units to whom Rs. 1.00 lakh or more is outstanding
for more than 30 days are Varun Industries, Capricon Stypack (I) Pvt
Ltd. and Bedi Enterprises. No interest has been provided on these dues
as the company has applied to BIFR to be declared as a sick company.
J. Principal amounting to Rs.5471.90 Lakhs and Interest default was
Rs.6485.24 Lakhs during the current year. (Last year Principal default
was Rs. 5695 lakhs and Interest default was Rs. 6457.67 Lakhs).
k. Installed Capacity as on 31.03.2012 and Actual Production (Net of
Breakages).
Mar 31, 2010
(i) Business Segments:
The Company has considered "Business Segment" as the Primary Segment
for disclosures, which comprises of Flat Glass and Neutral Glass Tube.
(ii) Geographical Segments:
Geographical Segment is the "Secondary Segment" and location of its
market I.e. "India" and "Out of India".
(iii) Segment Revenue:
Segment Revenue comprises of Sales and related income that are directly
identifiable with the Segment.
(iv) Segment Expenses:
Directly identifiable with the segment are charged to the respective
Segment.
(v.) All the accounting policies adopted for the Segment reporting are
inline with those of the Company.
(vi) Segment Revenue . *
(a) extraordinary items as defined in AS-5, Net Profit or Loss for the
period, prior period items and changes in accounting policies.
(b) Interest or dividend income.
(c). gains on sale of investments or on extinguishment of debt unless
the operations of the segment are primarily of financial nature.
(k) Contingent liabilities and receivables :
i) Contingent liabilities :
(a) The Company received Show-cause cum Demand Notices in routine way
regarding non- admissibility of modvat credit due to technical defects
in documentation. Most of the defects are curable and are allowed at
the first or second stage of hearing. As on 31.03.2010, such show-cause
cum demand notices proposing to disallow modvat credit stood at Rs.
129.32 lakhs (2009-Rs.140.05 lakhs).
(b) the Commissioner Central Excise, Allahabad has created a duty
demand of Rs. 20.96 Crores and has imposed equal penalty thereon by an
ex-parte order. On our appeal before CESTAT, the CESTAT ordered to
deposit 50% duty demanded with penalties. Allahabad High Court
slightly modified the order on our writ petition. The company filed SLP
before Supreme Court and as per Apex Court Order has made necessary
cash pre- deposit. The company has also offered first charge on the
assets of the company pari passu with that of IDBI in lieu of Bank
Guarantee. Inspite of departments reluctance, Central Excise Tribunal
has restored the case to its position on the basis of offer made by the
company subject to the conditions that the assets of the Company will
not be alienated during the pendency of the appeal.
(c) Sales Tax Department has created a demand of Rs. 107.21 lakhs
disputing the rate of tax on Tinted Glass and other sales tax matters,
which the Co. has not admitted and filed appeal against above mentioned
demands, However, the Honble Court has dismissed our appeal against
which we have filed SLP before Honble Supreme Court and the case is
likely to come up for hearing soon.
(d) Modvat credit on capital goods availed during installation of Float
Glass plant to the extent of Rs. 7.26 crores was disallowed by
Jurisdictional Deputy Commissioner and equal penalty was imposed by
wrongly treating Float Glass as a separate and independent unit while
the fact is otherwise. Float Glass Plant is an expansion of the then
factory and the . department itself has endorsed Float Glass Plant in
our Central Excise License (Registration Certificate) as expansion.
Against, the order of the Commissioner (Appeals), we have filed appeal
before CESTAT, New Delhi, which has completely waived pre- deposit of
50% of the required amount. Now the case will be heard and decided on
merits in due course.
(e) EPCG license liability for Rs. 276 lakhs plus interest amounting to
Rs.479 lakhs for non- fulfillment of export obligation in time. Our
appeal has been dismissed by the Tribunal and thus we have filed appeal
before BIFR for stay of recovery of the amount and waiver of interest
amount. Besides DGFT has issued show case notices for recovery of
Rs.405 lakhs on account of Non-fulfillment of Export obligations
against advance licenses we have fulfilled the export obligation
against some of the licenses but the documentary evidence being
submitted by us is not acceptable to the Department. The company has
filed appeal before BIFR vide its Draft Restructuring Proposal for
waiving the export obligation and interest thereon.
(ii) Contingent receivables:
(p) Refund claims of Rs. 340 lakhs (December 2007 - Rs. 340 lakhs) for
Allahabad unit and Rs. 27.67 lakhs for Rajahmundry unit were pending
before Appellate Authorities. Out of the above refund claim of Rs. 52
lakhs has been received back. We have also received further refund
order for Rs. 189 Lacs on account of Allahabad unit subject to
furnishing of Bank Guarantee in line with the order passed by Honble
Supreme Court in the case of earlier refund claim of Rs. 52 lacs . We
have been pursuing the matter with the Deptt and alsp of earlier
hearing of SLP filed by department before Honble Supreme Court.
I. Guarantee, Counter Guarantee issued in favour of Bank are Rs.57.68
(2009- Rs. 82.68 lakhs) and in respect of Letter of Credit Rs.52.50
(2009-Rs.Nil):
m. Total expenditure incurred on Research & Development during the
year was Rs. Nil (2009-Rs. Nil)
n. Depreciation amounting to Rs.653.53 lakhs has not been provided
during the year for Float as the Plant was closed during the year.
o. No Revenue recognition has been postponed during the current year
p. Taxes on Income:
No provision of Income Tax has been made due to the carried forward
losses and unabsorbed depreciation of earlier year.
As per AS-22 deferred tax assets should be recognized and carried
forward only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. AS-22 also describes that where an
enterprise has unabsorbed depreciation or carry forward losses under
tax laws, deferred tax should be recognized only to the extent that
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will available against which such
deferred tax assets can be realized.
Since there is no virtual certainty supported by convincing evidence
for any future taxable income, so deferred tax assets has not been
recognized during the current year.
q. As per Accounting Standard - 28 "Impairment of Assets" issued by
ICAI, no impairment loss has been considered during the year in respect
of the relevance of the Company in view of negligible residual value of
assets and their estimated disposal value.
r. During the year, closing stock of finished products have been
valued by including the estimated amount of Excise Duty payable thereon
Rs.4.38 lakhs as per the ICAI guidelines, however this has no effect on
the profit of the Company for the year.
s. Figures of previous year have been regrouped and rearranged
wherever found necessary.
t. No Borrowing cost has been capitalized during the year
u. The names of SSI Units to whom Rs. 1.00 lakh or more is outstanding
for more than 30 days are Varun Industries, Capricon Stypack (I) Pvt
Ltd. and Bedi Enterprises. No interest has been provided oh these dues
as the company has applied to BIFR to be declared as a sick company.
v. "Related Party Disclosures":
(a) No transaction of sale, purchase or supply of any goods material or
services have been entered into by the company with the promoters,
Directors their relatives etc.,
(b) Key management personnel - Sri J K Agrawal, Managing Director
(Managerial remuneration paid is Rs. Nil ), Sri A K Dhawan, Director
(Finance) (Managerial remuneration paid is Rs.8.37 lakhs)
x. Principal amounting to Rs.5695 Lakhs and Interest default was
Rs.6457.67 Lakhs during the current year. (Last year Principal default
was Rs. 7227 lakhs and Interest default was Rs. 6310 Lakhs)
y. Rs. 138.56 Lakhs towards wages pertaining to workers of PPG Plant
is due in view of the judgment delivered by Honorable High Court,
Allahabad. However, the Company has filed SLP in the Honorable Supreme
Court of India against the said Judgment on 13th May 08.
z. On 13th January 2010 the Board of Directors announced a plan to
dispose of Company Neutral Glass Division situated at Village Fitkari,
Mawana Road, Meerut which is also a separate segment as per AS 17
segment reporting. Further the Meerut facility of the Company has not
been running properly since.the past few years and the management feels
it would not be possible to turn it bright and it does not appear in
around and thus it is better to dispose of the unit when the company is
getting a good consideration for the same. In the above circumstances
the company has been under pressure from the Institution lender and
Banks to repay back their loans and therefore it was decided to sell
off this unit of the Company.
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