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Notes to Accounts of Unimin India Ltd.

Mar 31, 2014

1. Terms/Rights attached to Equity Shares

Equity shares are having a par value of Amount Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

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.

2.The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of The Companies Act, 1956.

3. Contingent Liabilities : Rs. in Lacs

Particulars 2013-14 2012-13

(i) Contingent Liabilities:

(a) Claims against the company not acknowledged as debt (refer Note 22.1) 8.999 40 8.999 40

(b) Excise Duty including interest & Penalty thereon (refer Note 22 2 & 22 3) 663. 36 663 36

(c) Sales Tax dues including interest & Penalty (not yet quantified ) thereon (refer Note 22.4) 597.90 597.90

(ii) Commitments - -

3a. The Deferred payment Credit of Rs. 24,04,61,664/- from the suppliers of the imported Plant & Machinery was written off in the earlier years. The decision was primarily based on legal communication/advice that the Company has a counter claim of much larger amount on the said supplier for its various omissions and commissions including contractual defaults resulting in business losses / cost overrun to the Company. These Suppliers have made a claim of Rs. 48,19,46,626/- towards principal and Rs. 41,79,93,604/- towards interest aggregating to Rs. 89,99,40,230/-.

3b. The Company had received an order from the Central Excise Department raising a demand for Rs. 330.47 Lakhs and a penalty of the same amount on the Company and a penalty of Rs. 175.00 Lakhs on the employees / officers (past and present) of the Company. The Company has preferred an appeal before the CESTAT (West Zonal Branch, Ahmedabad) and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30 lakhs which the company paid. The CESTAT passed order on 9th May 2011 to set aside the impugned order and remand the matter to the adjudicating authority for fresh decision. However, nothing is mentioned pertaining to the penalty of Rs 175.00 lakhs on the employees/officers (past & present) of the company.

3c. The company received a Show Cause Notice from the Excise Department regarding non- payment of education cess for the period 09/07/2004 to 28/02/2007 amounting to Rs. 2,41,988/-. In reply to the same the company stated in its letter dated 17/06/2010 that they have paid the entire amount along with cess but not bifurcated the amount. The company had provided the break up at the time of Budget Implementation. Commissioner (Appeals) vide its order no. SKSS/257-258/DMN/NDMN/ 2010-11 dated 25/11/2010 said that department''s appeal is not tenable. Appeal was filed by the department with CESTAT, West Zonal Bench, Ahmedabad and it was admitted vide appeal no. E/289/2011 dated 22nd March 2011.

3d. Notices under various Section was received from the Sales Tax Dept. Daman during the Year relating to Declaration Forms, late submission of Returns, Short payment of sales Tax for the period from 01/04/02 to 31/03/08 amounting to Rs. 5,97,89,904/- approx. However in opinion of the management the demand of Rs 3,99,21,945/- is related to Export Sales for the period from 01/04/02 to 31/03/05 and not liable to tax. The management is also of the opinion that balance liability will also not arise.

4. No interest provision has been made on unsecured loans due to lack of profits. The said amount cannot be quantified and to this extent the profit is overstated and liabilities are understated.

5. The management is of the opinion that the going concern assumption is unaffected.

6. The Plant was not working for the entire year under review. No Production has taken place during the year. This is because the company had been sealed by the Official Liquidator of Hon''ble Delhi High Court and then was de-sealed. After the DeSealing order was passed by the Hon''ble Delhi Court, there had been no power supply to the Plant by the Electricity Department. Hence, there were no operational functions of the unit since November 2009.

7. Earnings in Foreign Currency: NIL (P.Y. NIL)

8. Expenditures in Foreign Currency: NIL (P.Y. NIL)

9. Since the company operates only in one segment i.e. manufacturing of Spun bonded Polymer Nonwoven Fabric & Products thereof, the Accounting standard for segmental reporting does not apply.

10. Deferred tax asset / liability on accounting for timing differences shall not be applicable as the company is entitled to benefits available to 100 % EOU under section 10A of the IT Act. Moreover, AS-22 provides that where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws, deferred tax asset/liability should not be recognized unless there are convincing evidences to prove |hat there would be sufficient future taxable income to set-off such deferred tax asset/ liability created.

11. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of the lease agreement provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancellable operating leases. There are no assets taken on finance lease.

12. In the opinion of the Board of Directors, the Current Assets. Loans and Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet.

13. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable are subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

14. Figures of the previous year have been re-grouped / rearranged wherever considered necessary to conform to current period''s classification.


Mar 31, 2013

1. Contingent Liabilities: -

- Claims against the company not acknowledged as debts amounting to Rs. 899,940,230 and further claim towards interest & penalties (if any)which is not quantified against deferred pay ment credit worth Rs.24,04,61,664. against which the company has counter claims of much larger amount in the opinion of the management. (Refer Note 7).

- In respect of Show cause Notices from Central Excise department amount Rs. 330.47 Lacs and further claim interest & penalties (if any) which is not quantified plus penalties etc aggregating to a grand total of Rs.835.94 lakhs (Refer Note 9).

- Notices under various Section was received from the Sales Tax Dept. Daman during the Year relating to Declaration Forms, late submission of Returns, Short payment of sales Tax for the period from 01.04.02 to 31.03.08 amounting to approx Rs.5,97,89,904/-(Refer Note 10)

2. In the Opinion of the Board of Directors, the Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are started in the Balance Sheet.

3. No interest provision has been made on unsecured loans due to lack of profits. The said amount cannot be quantified and to this extent the profit is overstated and liabilities are understated.

4. The Company has revalued the amount of closing stock as the realizable value has decreased and to this extent there is change in accounting of inventories.

5. The management is of the opinion that the going concern assumption is unaffected.

6. Sales & Excise Duty:

As there was no production, no excise duty liability has arisen.

7. The Deferred payment Credit of Rs.24,04,61,664 from the suppliers of the imported Plant & Machinery was written off in the earlier years. The decision was primarily based on legal communication/advice that the Company has a counter claim of much larger amount on the said supplier for its various omissions and commissions including contractual defaults resulting in business losses / cost overrun to the Company. The Suppliers of plant & Machinery have made a Claim of Rs.48,1 3,46,626/- towards Principal and Rs.41,79,93,604/- towards interest aggregating to Rs.8S,SS,40,230/-.

8. Balance with Banks includes Rs.850/- (Previous year Rs.850/-) with a ncn-scheduled bank.

9. The Company has received an order from the Central Excise Department raising a demand for Rs.330.47 Lacs and a penalty of the same amount on the Company and a penalty of Rs. 175.00 Lacs on the employ- ees / officers (past and present) of the Company. The Company has preferred an appeal before the CESTAT and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30 lacs paid on September 2006 - - . and due compliance reported to CESTAT as of date the company appeal in pending hearing with CESTAT and date for such hearing was fixed for 22nd Sept.09 This was further adjourned to Following Dates:

(i) 27th July, 2010 (ii) 07th Sept, 2010 (iii) 13th October, 2010 (iv) 01st December,2010 (v) 05th January, 2011 (vi) 09th February, 2011 (vii) 09th March, 2011 (vii) 06th April, 2011.

CESTAT (West Zonal Branch, Ahmedabad) passed order no.A/727 to 731/WZB/AHD/2011 dated 09th May 2011 saw it fit to set aside the impugned order and remand the matter to the adjudicating authority for fresh decision. However, nothing is mentioned pertaining to the penalty of Rs 175.00 lakhs on the employees/officers (past & present) of the''comapny.

10- Notices under various Section was received from the Sales Tax Dept. Daman during the Year relating to Decla- ration Forms, late submission of Returns, Short payment of sales Tax for the period from 01.04.02 to 31.03.08 amounting to approx Rs.5,97,89,904/- However in opinion of the management the demand of Rs. 3,99,21,945/ /- is related to the Export Sales for the period from 01/04/02 to 31/03/05.

11. The company received a Show Cause Notice from the Excise Department regarding non payment of education cess for the period 09.07.04 to 28.02.2007 amounting to Rs. 2,41,988 . In reply to the same the company stated in its letter dated 17.06.2010 that they have paid the entire amount along with cess but not bifurcated the amount. The company had provided the break up at the time of Budget Implementation. Commissioner (Ap- peals) vide its order no. SKSS/257-258/DMN/NDMN/2010-11 dated 25/11/2010 said that department''s appeal is not tenable. Appeal was filed by the department with CESTAT; West Zonal Branch, Ahmedabad and it was admitted vide appeal no. E/289/2011 dated 22nd March 2011.

12. Particulars regarding Licensed Capacity, Production Details, Turnover Achieved & Inventory Status :

- Licensed Capacity N. A. (The Company''s products have been de-licensed)

- Information in respect of Turnover Achieved & Finished Stocks.

13. Figures have been rounded off to the nearest rupee

14. Directors Remuneration: -

Chairperson and Managing Director Mrs. J.K. Bakshi . As the company is making loss director remuneration has been Nil this year.

15. Since the company operates only in one segment i.e. manufacturing of Spun bonded Polymer Nonwoven Fabric & Products thereof, the Accounting standard for segmental reporting does not apply.

16. Deferred tax asset / liability on accounting for timing differences shall not be applicable as the company is entitled to benefits available to 100 % EOU under section 10 A of the IT Act. Moreover, AS-22 provides - that where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws, deferred tax assest/liability should not be recognized unless there are convincing evidences to prove that there would be sufficient future taxable income to set-off such deferred tax asset/liability created.

17. Lease rent not provided as already advance paid by the company to the lessee.

18. Figures of the previous year have been re-grouped / rearranged wherever considered necessary to con form to current period''s classification.


Mar 31, 2012

1. Contingent Liabilities: -

. Outstanding Bank Guarantees Rs. 2,00,000/-(Previous Year Rs. 2,00,000/-)

. Claims against the company not acknowledged as debts amounting to Rs. 899,940,230 and further claim towards interest & penalties (if any)which is not quantified against deferred pay ment credit worth Rs.24,04,61,664. against which the company has counter claims of much larger amount in the opinion of the management. (Refer Note 7).

. In respect of Show cause Notices from Central Excise department amount Rs. 330.47 Lacs ami further claim interest & penalties (if any) which is not quantified plus penalties etc aggregating to a grand total of Rs.835.94 lakhs (Refer Note 9).

. Notices under various Section was received from the Sales Tax Dept. Daman during the Year relating to Declaration Forms, late submission of Returns, Short payment of sales Tax for the period from 01.04.02 to 31.03.08 amounting to approx Rs.5,97,89,904/-(Refer Note 10)

2. In the Opinion of the Board of Directors, the Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are started in the Balance Sheet.

3. No interest provision has been made on unsecured loans due to lack of profits. The said amount cannc; quantified and to this extent the profit is overstated and liabilities are understated.

4. The Company has revalued the amount of closing stock as the realizable value has decreased and to r ..; extent there is change in accounting of inventories.

5. The management is of the opinion that the going concern assumption is unaffected.

6. Sales & Excise Duty:

As there was no production, no excise duty liability has arisen.

7. The Deferred payment Credit of Rs.24,04,61,664 from the suppliers of the imported Plant & Machinery written off in the earlier years. The decision was primarily based on legal communication/advice that ^ Company has a counter claim of much larger amount on the said supplier for its various omissions ansj commissions including contractual defaults resulting in business losses / cost overrun to the Conpany The Suppliers of plant & Machinery have made a Claim of Rs.48,19,46,626/- towards Principal and Rs.41,79,93,604/- towards interest aggregating to Rs.89,99,40,230/-.

8. Balance with Banks includes Rs.850/- (Previous year Rs.850/-) with a non-scheduled bank.

9. The Company has received an order from the Central Excise Department raising a demand for Rs.330.47 Lacs and a penalty of the same amount on the Company and a penalty of Rs. 175.00 Lacs on the employ- ees / officers (past and present) of the Company. The Company has preferred an appeal before the CESTAT and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30 lacs paid on September 2006 and due compliance reported to CESTAT .as of date the company appeal in pending hearing with CESTAT and date for such hearing was fixed for 22nd Sept.09 This was further adjourned to Following Dates:

(i) 27th July, 2010 (ii) 07th Sept, 2010 (iii) 13th October, 2010 (iv) 01st December,2010 (v) 05th January, 2011 (vi) 09th February, 2011 (vii) 09th March, 2011 (vii) 06th April, 2011.

CESTAT (West Zonal Branch, Ahmedabad) passed order no.A/727 to 731ANZB/AHD/2011 dated 09th May 2011 saw it fit to set aside the impugned order and remand the matter to the adjudicating authority for fresh decision. However, nothing is mentioned pertaining to the penalty of Rs 175.00 lakhs on the employees/officers (past & present) of the comapny. '

10. Notices under various Section was received from the Sales Tax Dept. Daman during the Year relating to Decla- ration Forms, late submission of Returns, Short payment of sales Tax for the period from 01.04.02 to 31.03.08 amounting to approx Rs.5,97,89,904/- However in opinion of the management the demand of Rs. 3,99,21,945/ /- is related to the Export Sales for the period from 01/04/02 to 31/03/05.

11. The company received a Show Cause Notice from the Excise Department regarding non payment of education cess for the period 09.07.04 to 28.02.2007 amounting to Rs. 2,41,988 . In reply to the same the company stated in its letter dated 17.06.2010 that they have paid the entire amount along with cess but not bifurcated the amount. The company had provided the break up at the time of Budget Implementation. Commissioner (Ap- peals) vide its order no. SKSS/257-258/DMN/NDMN/2010-11 dated 25/11/2010 said that department's appeal is not tenable. Appeal was filed by the department with CESTAT, West Zonal Branch, Ahmedabad and it was admitted vide appeal no. E/289/2011 dated 22nd March 2011.

12. The Plant was not working for the entire year under review. No Production has taken place during the year .This is so as the company had been illegally sealed by the Official Liquidator of Hon'ble Delhi High Court and then was de-sealed .Soon after the De-Sealing order was passed by the Hon'ble Delhi Court there was no electricity power supply to the Plant by the Electricity Department and hence there were no operational functions of the I unit upto Nov 2009. i

13. Particulars regarding Licensed Capacity, Production Details, Turnover Achieved & Inventory Status :

. Licensed Capacity N. A. (The Company's products have been de-licensed)

. Information in respect of Turnover Achieved & Finished Stocks.

14. Directors Remuneration: -

Chairperson and Managing Director Mrs. J.K. Bakshi . As the company is making loss director remuneration has been Nil this year.

15. Since the company operates only in one segment i.e. manufacturing of Spun bonded Polymer Nonwover Fabric & Products thereof, the Accounting standard for segmental reporting does not apply.

16. Deferred tax asset / liability on accounting for timing differences shall not be applicable as the compare is entitled to benefits available to 100 % EOU under section 10 A of the IT Act. Moreover, AS-22 provide. that where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws, deferrv. tax assest/liability should not be recognized unless there are convincing evidences to prove that there would be sufficient future taxable income to set-off such deferred tax asset/liability created.


Mar 31, 2010

1. Contingent Liabilities: -

- Outstanding Bank Guarantees Rs. 2,00,0007- (Previous Year Rs. 2,00,000/-)

- Claims against the company not acknowledged as debts amounting to Rs. 899,940,230 and further claim towards interest & penalties (if any)which is not quantified against deferred pay ment credit worth Rs.24,04,61,664. against which the company has counter claims of much larger amount in the opinion of the management. (Refer Note 7).

- In respect of Show cause Notices from Central Excise department amount Rs. 330.47 Lacs and further claim interest & penalties (if any) which is not quantified plus penalties etc aggregating to a grand total of Rs.835.94 lakhs (Refer Note 9).

- Notices under various Section was received from the Sales Tax Dept. Daman during the Year relating to Declaration Forms, late submission of Returns, Short payment of sales Tax for the period from 01/04/02 to 31.03.08 amounting to approx Rs.5,97,89,904/-(Refer Note 10)

2. In the Opinion of the Board of Directors, the Current Assets, Loans and Advances have a value on realization at least equal to the amount at which they are started in the Balance Sheet.

3. No interest provision has been made on unsecured loans due to lack of profits. The said amount cannot be quantified and to this extent the profit is overstated and liabilities are understated.

4. The Company has revalued the amount of closing stock as the realizable value has decreased and to this extent there is change in accounting of Inventories.

5. The management is of the opinion that the going concern assumption is unaffected.

6. Sales & Excise Duty:

The Gross Sales figures are shown including excise duty & excise duty figures are included under expenses.

7. The Deferred payment Credit of Rs.24,04,61,664 from the suppliers of the Imported Plant & Machinery was written off in the earlier years. The decision was primarily based on legal communication/advice that the Company has a counter claim of much larger amount on the said supplier for its various omis sions and commissions including contractual defaults resulting in business losses / cost overrun to the Company. The Suppliers of plant & Machinery have made a Claim of Rs.48,19,46,626/- towards

8. Balance with Banks includes Rs.8$oV- (Previous year Rs.ftSO/-) with a non-scheduled bank.

9. The Company has received an order from the Central Excise Department raising a demand for Rs.330.47 Lacs and a penalty of the same amount on the Company and a penalty of Rs. 175.00 Lacs on the employees / officers (past and present) of the Company. The Company has preferred an appeal before the CESTAT and in respect of the same CESTAT has ordered for pre-deposit of Rs. 30 lacs paid on, September and due compliance reported to CESTAT .as of date the company appeal in pending hearing with CESTAT and date for such hearing waa fixed for 22nd Sept.09 which was adjourned to 27 th July 2010 and was further adjourned to 07th Sept. 2010.

10. Notices under various Section waa received from the Sales Tax Dept. Daman during the Year relating to Decla ration Forma, late submission of Returns, Short payment of sales Tax for the period from 01/04/02 to 31.03.08 amounting to approx Rs.5,97,89,904/- Company has filed an appeal on 27/11/09 for submission of c forms. Response Is awaited.

11. The company received a Show Cause Notice from the Excise Department regarding non payment of education cess for the period 09.07.04 to 28.02.2007 amounting to Rs. 2,41,988 .In reply to the same the company stated in its letter dated 17.06.2010 that they have paid the entire amount along with cess but not bifurcated the amount The company had provided the break up at the time of Budget Implementation, reply from department side is still awaited A similar notice for the period Feb 2009 to Jan 2010 was received on 19.02.10 amounting to Rs 3087/-

12. The Plant was not working for the entire year under review. No Production has taken place during the year .This is so as the company had been illegally sealed by the Official Liquidator of Honble Delhi High Court and then was de-sealed .Soon after the De-Sealing order was passed by the Honble Delhi Court there was no electricity power supply to the Plant by the Electricity Department and hence there were no operational functions of the unit upto Nov 2009.

13. Particulars regarding Licensed Capacity, Production Details, Turnover Achieved & Inventory Status :

- Licensed Capacity N. A. (The Companys products have been de-licensed)

- Information in respect of Turnover Achieved & Finished Stocks.

14. Directors Remuneration: -

Chairperson and Managing Director Mrs. J.K. Bakshi. As the company is started making loss directoi remuneration has been Nil this year.

15. Since the company operates only in one segment i.e. manufacturing of Spun bonded Polymer Nonwoven Fabric & Products thereof, the Accounting standard for segmental reporting does not apply.

16. Deferred tax asset / liability on accounting for timing differences shall not be applicable as the company is entitled to benefits available to 100 % EOU under section 10 A of the IT Act.

17. Lease rent not provided as already advance paid by the company to the lessee.

18. Figures of the previous year have been re-grouped / rearranged wherever considered necessary to con form to current periods classification.



 
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