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Notes to Accounts of Udaipur Cement Works Ltd.

Mar 31, 2015

A. Terms / right attached to Equity Shareholders:

1. The Company has only one class of equity shares having a par value of Rs. 4 per share. Each holder of equity shares is entitled to one vote per share.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

e. During the year, the Authorised Share Capital of the Company has been increased from Rs. 12,500 lacs to Rs. 20,000 lacs i.e. 31,25,00,000 Equity Shares of Rs. 4 each, 60,00,000 Preference Shares of Rs. 10 each & 6,900 Preference Shares of Rs. 1,00,000 each.

f. During the year, the Company has allotted 5% Cumulative Redeemable Preference Shares (CRPS) of Rs. 6,000 lacs (Series-I & Series-II allotted on 14.01.2015 and 30.03.2015 respectively) at par against cash to the Holding Company pursuant to BIFR Sanctioned Rehabilitation Scheme.

The 5% CRPS carries a Put option. In the event of the Company being unable to pay dividend for a consecutive period of 3 years after it is out of the purview of BIFR and unable to pay the Capital back, CRPS holders have the right to get them converted into Equity Shares subject to statutory approvals.

The 5% CRPS also carries a Call option. In case there being any Liquidity Event of the Company, if it fails to redeem the CRPS at par within 3 months, CRPS holders shall have the right to get them converted into Equity Shares subject to statutory approvals.

If the Put / Call option is not exercised, the 5% CRPS are redeemable in 3 annual installments of 30%, 30% & 40% of face value at the end of 18th, 19th & 20th year from the date of allotment.

g. The Zero Coupon Redeemable Preference Shares (ZCPS) aggregating to Rs. 509.52 lacs are redeemable on March 31,2017 i.e. at the end of 7 years from the cut off date as per the Scheme.

Note 2

LONG-TERM BORROWINGS

Term Loan from a Bank of Rs. 5,000 lacs is secured / to be secured by way of first pari passu charge on all the immovable and movable fixed assets of the Company situated at Shripati Nagar, Distt. Udaipur, Rajasthan. This Term Loan shall be repayable in 28 equal quarterly installments commencing from 1st April 2017. This Term Loan is also secured by Corporate Guarantee of the Holding Company.

3 The Company is registered as a Sick Company with BIFR. Due to nonviability, operations of the plant were under suspension since 26th March 2002. A Rehabilitation Scheme for the Company (the Scheme) has been sanctioned by the Board for Industrial and Financial Reconstruction (BIFR), New Delhi on 13th January 2012 under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. As per the Scheme, JK Lakshmi Cement Ltd. has infused Rs. 4,911.00 lacs against which the Company has allotted Equity Shares of Rs. 8,911.00 lacs and 5% Cumulative Redeemable Preference Shares (CRPS) of Rs. 6,000.00 lacs.

4 Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 23,158.46 lacs (Previous period - Rs. 7,888.48 lacs)

5 Contingent Liability in respect of claims not accepted by the Company (matters in appeals) and not provided for are as follows:

(Amount in Rs. Lacs)

31st Mar'15 31st Mar'14

a) Excise duty in respect of matters in appeal 7.21 7.21

b) Sales Tax in respect of matters in appeal 42.30 42.30

c) Service tax 66.06 66.06

d) Land Tax 1029.29 1029.29

e) Other matters 102.90 115.41

1.247.76 1,260.27

6 The Company has created Deferred Tax Asset of Rs. 1,211.28 lacs only (Previous period - Nil) considering the extent of utilization of carried forward unabsorbed depreciation against future taxable income on the principle of virtual certainty. The relief from Minimum Alternate Tax (MAT) is available to the Company as provided in explanation (iii) to Section 115JB (2) of Income Tax Act, 1961.

7 Contingent liability for non-use of Jute bags for Cement packing upto 30th June 1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has excluded Cement Industry from application of the said Order from 1st July 1997.

8 During the Current Year, the Company has revised depreciation rate on certain Fixed Assets as per the useful life specified in Schedule II of the Companies Act, 2013 as re-assessed by the Company. Based on current estimates, the Carrying value of Rs. 50.23 lacs on account of Fixed Assets which have completed their useful life as on 1st April 2014 has been charged off against the Reserves & Surplus. Had there not been any change in useful life of the Fixed Assets, depreciation for current year ended 31.03.2015, would have been higher by Rs. 46.98 lacs.

9 Exceptional Items of Rs. 126.04 lacs comprises of :-

a) Advance from Customers of Rs. 284.15 lacs written back.

b) Bad Debts written off Rs. 84.94 lacs and certain old recoverable / payable balances amounting to Rs. 73.17 lacs (net) were written off during the year.

10 a) Sales include own consumption at cost - Rs. 177.53 lacs (Previous period - Rs. 2.36 lacs).

b) Other Operating Revenue includes Sales Tax / Value added Tax subsidy of Rs. 319.90 lacs (Previous period - Rs. 29.09 lacs were included in Sales) and Bad Debts now recovered of Rs. 3.05 lacs (Previous period - Nil).

11 a) Consumption of Stores & Spares is net of Scrap Sale - Rs. 2.10 lacs (Previous period -Rs. 33.09 lacs)

b) Prior Period Expenses for the year - Nil (Previous period - Rs. 98.12 lacs).

12 The liabilities pertaining to the statutory levies and pending legal cases prior to 01.12.1993 (date of take over of the cement undertaking from Bajaj Hindustan Limited) will be borne by Bajaj Hindustan Limited.

13 The Company has only one business segment namely Cementitious Materials.

39 a) Based on information available with the Company in respect of MSME ( The Micro Small & Medium Enterprises Development Act, 2006). The details are as under :

i) Principal and Interest amount due and remaining unpaid as at 31st March 2015 - Nil (Previous period - Nil).

ii) Interest paid in terms of section 16 of the MSME Act during the year - Nil (Previous period - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified - Nil (Previous period - Nil).

iv) Payment made beyond the appointed day during the year - Nil (Previous period - Nil).

v) Interest Accrued and unpaid as at 31st March 2015- Nil (Previous period - Nil). b) Some of the Balances of debtors and creditors are in process of confirmation.

14 Capital Work-in-Progress includes Machinery in stock, construction / erection materials, advances for construction and Machinery and also includes the following pre-operation expenses pending allocation.

15 Related Party Disclosure List of Related Parties:

a) Holding Company:

JK Lakshmi Cement Ltd (JKLC)

b) Key Management Personnel (KMP):

Shri R. K. Gupta - Whole Time Director, CFO & Company Secretary

c) The following transactions were carried out with related parties in the ordinary course of business:

16 Employee Defined Benefits:

(a) Defined Benefit Plans / Long Term Compensated Absences - As per Actuarial Valuation on 31st March 2015.

a) Defined Benefit Plan

Amount recognised as expenses in Note 23 and included herein above.

Item "Salaries and Wages" includes Rs. 5.76 lacs (Previous period - Rs. 2.49 lacs) for Leave Encashment.

Item "Contributions to Provident and Other Funds" includes Rs. 8.69 lacs (Previous period - Rs. 4.53 lacs) for Gratuity.

(b) Defined Contribution Plans

Amount recognised as an expense and included in Note 23 "Contributions to Provident and other Funds" of Statement of Profit and Loss Rs. 11.23 lacs (Previous period - Rs. 5.93 lacs)

(c) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

(d) The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

17. During the year, the Company has received subsidy of Rs. 21.12 lacs (Previous period- Rs. 1.90 lacs) in terms of State Investment Promotion Scheme, of which Rs. 21.12 lacs (Previous period- Rs. 1.90 lacs) has been netted from Power & Fuel expenses.

18. a. C.I.F. Value of Imports - Nil (Previous period - Nil)

b. Expenditure in Foreign Currency on account of Travelling aggregates to Rs. 15.72 lacs (Previous period - Nil)

c. Earning in Foreign Currency - Nil (Previous period - Nil)

19. Current year Accounts have been prepared in accordance with the Revised Schedule-VI and previous period's figures have been regrouped / re-classified accordingly.


Mar 31, 2014

1. The Company is registered as a Sick Company with BIFR. Due to nonviability, operations of the plant were under suspension since 26th March, 2002. A Rehabilitation Scheme for the Company (the Scheme) has been sanctioned by the Board for Industrial and Financial Reconstruction (BIFR), New Delhi on 13th January 2012 under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985.As per the Scheme, JK Lakshmi Cement Ltd. has infused Rs. 12,289.53 Lacs out of which the Company has allotted Equity Shares of Rs. 8911.00 lacs on preferential basis in pursuance to the BIFR Sanctioned Scheme. Accordingly, these Accounts have been prepared on "going concern" basis.

2. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 7,888.48 lacs (Previous period Rs. 206.64 lacs)

3. Contingent Liability in respect of claims not accepted by the Company (matters in appeals) and not provided for are as follows:

(Amount in Rs. Lacs)

31st Mar''14 30th Sep''12

a) Excise duty in respect of matters in appeal 7.21 7.21

b) Sales Tax in respect of matters in appeal 42.30 42.30

c) Service tax 66.06 66.06

d) Land Tax 1029.29 2,388.70

e) Other matters 115. 41 115.41

1,260.27 2,619.68

4. In view of uncertainty to have taxable profits in near future, Deferred Tax Assets in accordance with the Accounting Standard- 22 issued by the Institute of Chartered Accountants of India has not been recognised as there is no virtual certainty of sufficient future taxable income. The relief from Minimum Alternate Tax (MAT) is available to the Company as provided in explanation (vii) to Section 115 JB(2) of Income Tax Act, 1961.

5. Contingent liability for non-use of Jute bags for Cement packing upto 30th June,1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained and the matter is subjudice. The Government has excluded Cement Industry from application of the said Order from 1st July, 1997.

6. During the Current Period, the Company has changed with retrospective effect, the method of providing depreciation on Furniture & Fixtures, Office Equipments, Locomotives & Vehicles from ''Straight Line'' to ''Written Down Value'' at the rate prescribed in Schedule XIV to the Companies Act, 1956. This shall result in more systematic basis of apportionment of Depreciation Charge over the useful economic life of the respective assets. This change has resulted in an additional depreciation charge of Rs. 15.37 lacs comprising of Rs. (0.56) lacs for the period and Rs. 15.93 lacs for the earlier years, which has been shown as an Exceptional Item. The Profit after tax for the period would have been higher by Rs. 15.37 lacs had the Company continued to follow the earlier method of depreciation.

7. Exceptional Items of Rs. 736.56 lacs comprises of -

a) Non-usable inventory written off amounting to Rs. 333.79 lacs due to factors such as obsolescence, corrosion, weathering & others due to the suspension of plant since 2002. In Previous period 50% book value of Inventories were written off aggregating to Rs. 421.62 lacs as provided in the BIFR Sanctioned scheme.

b) Certain old recoverable / payable balances amounting to Rs. 78.07 lacs (net) were written back during the Period.

c) Profit on Sale of Old & Obsolete Fixed Assets amounting to Rs. 1008.21 lacs which were scrapped due to complete suspension of operation since 2002.

d) Depreciation for earlier years due to change in method of depreciation amounting to Rs. 15.93 lacs.

8. a) Sales include own consumption at cost Rs. 2.36 lacs (Previous period - Nil)

b) Sales includes Sales Tax / Value added Tax subsidy of Rs. 29.09 lacs (Previous period - Nil)

9. a) Consumption of Stores & Spares is net of Scrap Sale Rs. 33.09 lacs (Previous period – Nil)

b) Prior Period Expenses aggregates to Rs. 98.12 lacs (Previous period Rs. 106.08 Lacs) includes Rs. 90.57 lacs for Excise Duty & Interest expenses on Inventory written off, BIS Fee of Rs. 3.19 lacs, & Other expenses of Rs. 4.36 lacs.

10. The liabilities pertaining to the statutory levies and pending legal cases prior to 1st Dec 1993 (date of take over of the cement undertaking from Bajaj Hindustan Limited) will be borne by Bajaj Hindustan Limited.

11. The Company has only one business segment namely Cementitious Materials.

12. a) Based on information available with the Company in respect of MSME (The Micro Small & Medium Enterprises Development Act 2006). The details are as under :

i) Principal and Interest amount due and remaining unpaid as at 31st March 2014 - Nil (Previous period Rs. 2.39 lacs).

ii) Interest paid in terms of section 16 of the MSME Act during the period - Nil (Previous period - Nil).

iii) The amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified - Nil (Previous period - Nil).

Payment made beyond the appointed day during the period - Nil (Previous period - Nil).

iv) Interest Accrued and unpaid as at 31st March 2014 - Nil (Previous period - Nil).

b) Some of the Balances of debtors and creditors are in process of confirmation.

13. Capital Work-in-Progress includes Machinery in stock, construction / erection materials, advances for construction and Machinery and also includes the following pre-operation expenses pending allocation.

14. Related Party Disclosure : List of Related Parties

a) Holding Company

JK Lakshmi Cement Ltd. (JKLC) w.e.f. 28th March, 2014 (earlier Associate)

b) Key Management Personnel (KMP): Shri R K. Gupta - Whole Time Director

c) The following transactions were carried out with related parties in the ordinary course of business :

15. Employee Benefit Expenses*

(a) Defined Benefit Plans / Long Term Compensated Absences - As per Actuarial Valuation on 31st March, 2014.

a) Defined Benefit Plan

Amount recognised as expenses in Note 22 and included here in above.

Item "Salaries and Wages" includes Rs. 2.49 lacs (Previous period- Nil) for Leave Encashment. Item "Contributions to Provident and Other Funds" includes Rs. 4.53 lacs (Previous period Rs. 8.12 lacs) for Gratuity.

(b) Defined Contribution Plans

Amount recognised as an expense and included in Note 22 "Contributions to Provident and other Funds" of Statement of Profit and Loss Rs.5.93 lacs (Previous period Rs.1.86 lacs)

(c) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

(d) The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

16. During the period, the Company has received subsidy of Rs. 1.90 lacs (Previous period - Nil) in terms of State Investment Promotion Scheme, of which Rs. 1.90 lacs (Previous period- Nil) has been reduced from Power & Fuel expenses.

17. Expenditure in Foreign Currency, Earning in Foreign Currency, C.I.F. Value of Imports during the period Rs. Nil (Previous period - Nil)

18. Current period Accounts have been prepared in accordance with the Revised Schedule-VI and previous period''s figures have been regrouped/re-classified accordingly.


Sep 30, 2012

A. Terms / right attached to Equity Shareholders: .

The Company has only one class of equity shares having a par value of Rs. 4 per share. Each holder of _ equity shares is entitled one vote per share.

1. During the period the Company in terms of the rehabilitation scheme has restructured its Share Capital. The existing equity share capital of Rs. 6337 lacs (comprising 633.70 lacs shares - face value of Rs. 10.00 each) is reduced by 60%, i.e. the nominal and paid up value of 633.70 lacs shares is reduced to Rs. 2534.80 lacs. Further, the Company has issued equity shares of Rs. 1111.00 lacs against Unsecured outstanding dues at Rs. 4 each in consideration other than cash as per scheme. The Company has also issued equity shares to Secured Lenders amounting to Rs. 373.08 lacs in consideration other than cash as per the terms of the Scheme.

2. The Zero Coupon Redeemable Preference Shares (ZCPS) of Rs. 5095.23 lacs are written down in compliance with the scheme to 10% of the face value, i.e. from Rs. 5095.23 lacs to Rs. 509.52 lacs. The aforesaid ZCPS at their reduced value are redeemable on March 31,2017 i.e. at the end of 1st year from the cut off date as perthe Scheme.

3. The Company is registered as a Sick Company with BIFR. Due to nonviability, operations of the plant were under suspension since 26th March, 2002. A Rehabilitation Scheme for the Company (the Scheme) has been sanctioned by the Board for Industrial and Financial Reconstruction (BIFR), New Delhi on 13th January 2012 under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985. The Scheme provides for various reliefs & concessions in respect of Share Capital, Secured Lenders, Unsecured Creditors, Employees Dues, State & Central Government dues and other statutory bodies dues. In view of the above the necessary entries in the books have been passed by the Company for giving effect of the Scheme.. Exceptional Items of Rs. 746.55 Lacs appearing in the Statement of Profit & Loss Account comprises of write back of Deferred interest amounting to Rs.1,082.29 lacs, unsecured creditors amounting to Rs. 1,287.27 lacs, loss on account of impairment amounting to Rs. 3.00 lacs and depreciation provided for earlier years amounting Rs. 1,620.01 lacs. The expenses relating to the project have been capitalized under the head Capital Work-in-Progress. After taking the possession of the plant & mines w.e.f from 23rd July 2012, the Company has now undertaken the work towards upgradation and modernization of the plant. As per the Scheme, JKLC has invested Rs. 7002.83 lacs which are reflected under the head Advance against Securities (Refer Note 4). Accordingly, these Accounts have been prepared on "going concern" basis.

4. After taking possession of the plant, physical verification of the Fixed Assets was carried out to ascertain impairment in the value of assets during the period the plant operations remained suspended. The impairment exercise was carried out in detail by a high level technical task force constituted by the management. For the reasons stated in Note no. 18 above, physical verification of Inventories of raw materials, process stocks, stores & spares, scrap and finished goods could not be carried out during the period. However, Inventories have been valued at 50% of book value as provided in the Scheme.

5. The liabilities pertaining to the statutory levies and pending legal cases prior to 01.12.1993 (date of take over of the cement undertaking from Bajaj Hindustan Limited) will be borne by Bajaj Hindustan Limited.

6. The Company has only one business segment, i.e. manufacturing and selling of cement.

7. In view of uncertainty to have taxable profits in near future, Deferred Tax Assets in accordance with the Accounting Standard- 22 issued by the Institute of Chartered Accountants of India has not been recognised. The relief from Minimum Alternate Tax (MAT) is available to the Company as provided in explanation (iii) & (vii) to Section 115 JB of Income Tax Act. 1961.

8. Contingent liability for non-use of Jute bags for Cement packing upto 30th June,1997, as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained. The Government has excluded Cement Industry from application of the saidOrderfrom 1st July, 1997.

9. Disclosure of Trade Payable under Current Liabilities & Provisions is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006".Principal amount overdue as on 30th September 2012, to "Micro Small & Medium Enterprises aggregates to Rs. 2,39,446 (Previous Year Rs. 22,11,239). The necessary entries for write back of the unsecured creditors have been passed as perthe Scheme.

10. Debts over six months and Loans and.Advances includes Rs. 98,90,249/- (Previous year Rs. 3,67,79,578/-) and Rs. 4,71,84,621 /- (Previous year Rs. 4,71,84,621/-) respectively, for which legal and other necessary action has been taken for recovery. Provision for Doubtful Debts amounting to Rs. 2,68,89,329/- has been made during the period (Previous Year-NIL) as perthe Scheme. .

11. Loans and Advances includes interest free loan to employees of Rs. 7,65,868 (Previous year Rs. 7,65,868) and interest free advances to employees of Rs. 2,84,75,225 (Previous year Rs. 1,41,60,915). Maximum balance outstanding during the period Rs. 765,868 and Rs. 2,84,75,225 respectively.

12. Internal audit has not been conducted during the period since operations of the plant continue to remain suspended as stated in note no. 18 above.

13. Prior Period Expenses aggregates to Rs. 106.08 Lacs includes Insurance Premium of Rs. 31.50 lacs, plant Valuation fee of Rs. 4.64 lacs, royalty & dead rent of Rs. 31.90 lacs, dues of ESIC of Rs. 34.64 lacs, CSDL dues of Rs. 1.66 lacs & NSDLduesofRs.1.74 lacs.

14. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 206.64 Lacs (Previousyear-Nil).

15. Particulars of raw materials consumed, stores and spares consumed, Earning/expenditure on foreign currency Nil. (Previous year-Nil).

16. Capital Work-in-Progress includes the following Pre-operative Expenses :-

17. Related Party Disclosure:

List of Related Parties

a) Key Management Personnel (KMP):

Shri R. K. Gupta - Whole Time Director

b) Enterprise which has significant influence overthe reporting enterprise:

JKLakshmi Cement Ltd (JKLC).

c) The following transactions were carried out with related parties in the ordinary course of business:

18. The current period figures are for 18 months period from 151 April 2011 to 30th September 2012 and accordingly, these are not comparable with the previous year figures of 12 months.

19. Current period Accounts have been prepared in accordance with the Revised Schedule-VI and previous year''s figures have been regrouped/re-classified accordingly.


Mar 31, 2010

1. The company is registered as a sick company with BIFR. Due to nonviability, operations of the plant are under suspension since 26th March, 2002.The company has submitted a Draft Rehabilitation Scheme (DRS) and BIFR is taking necessary steps in accordance with the law. Accordingly, these accounts have been prepared on "going concern" basis.

2. Dispute regarding salaries, wages, allowances and other benefits etc., to the employees for the period 18th June 2002 onward is pending for adjudication before the Labour Tribunal and therefore the same has not been provided in the books of Accounts (Amount Unascertained). However, the provision in respect of above expenses (except contribution to Superannuation fund for the year period 01.10-2004 to 31.12.2005 and conveyance allowance and leave encashment w.e.f. 01.10.2004 onwards) has been made for those employees who were engaged in essential services including whole time director during this period.

3. For the reasons stated in Note no.1 above physical verification of the Fixed Assets and Inventories of raw materials, process stocks, stores & spares, scrap and finished goods could not be carried out during the year. Fixed assets and inventories have been taken same as in the previous year and inventories have been valued on the same value as in the previous year. Adjustment, if any for lower of net realisable value over cost of inventories and provision for non-moving, obsolete and damaged inventories and fixed assets and for impairment of assets could not be ascertained, hence not provided for. Further, in view of the non-utilization of plant & machinery, depreciation of Rs. 8,99,08,531 /-has not been provided for the period of 15 months ended as on 31 st March 2010.

4. (a) Interest on secured loans, bank borrowings, trade deposits, royalty and dues to Ajmer Vidyut Vitran Nigam Limited, Excise duty demand, other deposits and penal interest, liquidated damages etc thereon, if any, has not been provided since the matter relating to rehabilitation is pending with BIFR (Amount Unascertained).

(b) Matured Debentures amounting to Rs.40,48,09,400/- (Previous year Rs. 31,48,65,974) have not been shown under current liabilities since the matter relating to rehabilitation is pending with BIFR.

(c) Interest earned on certain deposits will be accounted for on receipt basis (Amount Unascertained).

5. Deferred interest of Rs. 10,82,29,116/- represents amount payable to Term Lenders and Debenture holders commencing from June,2005 and ending on March,2008 (read with note no. B-3 of Schedule 3), pursuant to the Sanctioned Restructuring Scheme and has fallen due for payment as on 31st March 2008, but could not be paid due to suspension of operation.

6. Claims made against the Company; to the extent could be identified from available information, at Rs. 3,45,44,938 (Previous year Rs. 3,20,96,064) disputed/not accepted by the company, hence not provided (excluding Stamp Duty as stated in Note No. 11 below).

7. The liabilities pertaining to the statutory levies and pending legal cases prior to the date of take over of the cement undertaking i.e. 01.12,1993 will be borne by Bajaj Hindustan Limited.

8. In the absence of profit, the required Debenture Redemption Reserve has not been created.

9. The company has only one business segment, i.e. manufacturing and selling of cement.

10. In view of uncertainty to have taxable profits in near future, Deferred Tax Assets in accordance with the Accounting Standard- 22 issued by the Institute of Chartered Accountants of India has not been recognised.

11. In respect of the pending Stamp duty matter the Collector (Stamps), Udaipur vide order dated 29.01.2004 had determined stamp duty liability at Rs. 8,04,28,911along with equal amount of penalty. The company filed a revision petition against the said order dated 29.01.2004 before the Revenue Board, Ajmer, which was subsequently transferred to Rajasthan Tax Board, Ajmer who vacated the stay order earlier granted by the Revenue Board. Consequently the Collector (Stamps) Initiated recovery proceedings by attaching the properties of the company. There upon the company filed a writ petition in the Honble High Court of Judicature for Rajasthan at Jodhpur against the said attachment. The Honble High Court vide order dated 08.05.2006 allowed our writ petition. In the meantime Rajasthan Tax Board dismissed our revision petition on 06.10.2006.The Collector (Stamps) again initiated recovery proceedings by auctioning/ threatening to auction property of the company inspite of the fact that Such proceeding cannot be taken in view of Section 22 of SICA and order of Honble High Court dated 08.05.2006.The Company has filed writ petitions intere-alia challenging the impugned order dated 06.10.2006 and action of the Collector (Stamps). The Honble High Court has stayed further action by the Collector (Stamps), Udaipur and petitions are pending disposal.

12. Contingent liability for non-use of Jute bags for Cement packing upto 30th June,1997,as per Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 is not ascertained. The Government has excluded Cement Industry from application of the said Order from 1st July, 1997.

13. Disclosure of Sundry Creditors under Current Liabilities & Provisions is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Principal amount overdue as on 31st March 2010, to "Micro, Small and Medium Enterprises aggregate to Rs, 22,11,239/- (Previous year Rs. 22,11,239/-). No interest has been paid or provided on overdue liability of Micro, Small and Medium Enterprises, since the operations of the plant are under suspension since 26lh March, 2002 and matter relating to rehabilitation is pending with BIFR (Amount Unascertained).

14. Debts over six months and Loans and Advances includes Rs.3,67,79,578/- (Previous year Rs. 3,78,70,578) and Rs. 4,70,28,145/- (Previous year Rs. 4,72,70,130) respectively, for which legal and other necessary action has been taken for recovery. Provision, if any, will be considered on completion of the reconciliation/confirmation.

15. Interest free demand Loans and Advances include loan to employees of Rs. 7,65,868 (Previous year Rs. 7,65,868) and interest free advances to employees of Rs. 1,41,60,915 (Previous year Rs. 1,41,60,915). Maximum balance outstanding during the year Rs. 765,868 and Rs. 1,41,60,915 respectively.

16. The repayment of zero coupon unsecured loan of Rs. 10 crores payable by Bengal & Assam Company Ltd. on 15.02.2010 has been extended by a period of 18 months on the existing terms.

17. Internal audit has not been conducted during the year since operations of the plant continue to remain suspended as stated in note no. 1 above.

18 Prior Period Expenses include fees & subscription Rs. Nil (1,00,440/-) and Bank charges Rs. Nil (10,148/-).

19. The balances of Secured loans, Unsecured loans, Deferred interest, Creditors, Other Current liabilities and bank & other deposits are pending for confirmation / reconciliation (Impact unascertainable).

Note :-

a) As certified by the Management.

b) Figures in brackets represent previous year.

20 Particulars of raw materials consumed, stores and spares consumed, Earning/expenditure on foreign currency Nil. (Previous year Nil).

21 Related Party Disclosure:

22 The Company has changed accounting year from December ending to March ending. Consequently, accounts for current period have been prepared for 15 months ended 31st March, 2010. In view of this, previous period figures have been regrouped and recast wherever necessary and are not strictly comparable with current period.

 
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