Mar 31, 2018
Note 1 Corporate Information
Ambika Cotton Mills Limited is engaged in manufacturing and selling speciality cotton yarn catering to the needs of manufacturers of premium branded shirts and t-shirts. Exports constitute significant portion of the operations. The company operates with total installed spindle capacity of 108288 (Previous Year 108288 Spindles) of compact facility housed in four units and Knitting facility of converting 30,000 Kgs of yarn per day into fabrics. The company has installed 27.4 MW wind power capacity for captive consumption of spinning segment. The Spinning Plants are located at Kanniyapuram, Dindigul and Windmills are located in Tirunelveli, Dharapuram and Theni in the State of Tamilnadu. The financial statements are approved for issue by the Companyâs Board of Directors on 25th May 2018.
2. Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in note. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Information about such estimates and judgments are included in the relevant notes together with the basis of calculation for relevant line item in the financial statements. Estimates and judgments are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.
The company has issued only one class of Equity share having a par value of Rs.10 per share. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the of company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
1,50,000 equity shares of Rs.10 each (representing 2.55% of the total number of paid up equity shares of the company) was bought back from the shareholders of the company through stock exchange at the average price of Rs. 1048.81 per share for an aggregate amount of Rs. 1573.22 Lakhs, in accordancewith the provisions of the Companies Act, 2013 and SEBI (Buyback of Securities) Regulations, 1998.The shares bought back were cancelled.
3.1. DISCLOSURE AS PER SCHEDULE
As defined under Micro, Small and Medium Enterprises Development Act, 2006, the disclosure in respect of the amounts payable to such enterprises as at the end of the year has been made in the financial statements based on information received and available with the Company.
iii) Fair Value of financial assets and liabilities measured at amortised cost
The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as their fair values, due to their short term and settlement on demand nature.
For all other financial assets and liabilities measured at amortised cost, the Company considers that their carrying amounts approximates their fair values.
Information about major customers Contributing 10 % or more to the Companyâs revenue
The sale revenue of textiles segement includes sale to a customer amounting to Rs.7596 Lakhs (Previous year Rs.7911 Lakhs) contributing more than 10 % of the companyâs sale revenue both for FY 2017-18 & FY 2016-17.
3.2. APPROVAL OF FINANCIAL STATEMENTS
The Financial statements were approved by the issue by the Board of Directors on 25.05.2018
3.3. FINANCIAL RISK MANAGEMENT OBJECTIVES
The Company prima facie is exposed to financial risks which is inclusive of Market risk, Interest rate risk, Price risk, Credit risk and Liquidity risk.
Market Risk : The substantial operations of the company are into exports and imports and are subject to foreign currency fluctuation risk. The company enters into foreign currency forward contracts based on underlying to mitigate such fluctuation risks. Further the company is also having natural hedge on account of exports exceeding imports .
The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
Interest Rate Risk: The companyâs working capital borrowings are short term in nature and hence any fluctuation in market interest rates would not impact the profitability of the company in terms of debt servicing and liquidating of such borrowings.
Price Risk: The price risk arises on account of holding marketable financial assets. The companyâs equity investments forms insignificant portion and hence any price fluctuation would not have any impact over the financial position of the company.
Credit Risk : Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The credit risk in trade receivables is managed by selling goods to specific orders and reputed customers. Exports are made against irrevocable letter of credits. Domestic sales are largely against advance payments. However certain exceptions are made in specific cases. There are no other financial assets carrying credit risk.
Liquidity Risk: Liquidity risk refers to the risk that the company cannot meet its financial obligations. The company carries substantial current assets to pay off short term obligations arising from working capital bank borrowings, trade payables and other related liabilities.
Capital Management: The company manages its capital to ensure that it will continue to operate as a going concern while maximising the return to stakeholders. The core focus is to safeguard and maintain the companyâs financial stablity and independence. The fund requirements of the company are generally met through internal accruals. The working capital borrowings are meant for agumenting current assets.Substantial capital assets and current assets are built and maintained.
3.4
Previous yearsâ figures have been restated to comply with IND AS to make them comparable with the current period . Further, previous yearsâ figures have been regrouped / reclassified, wherever necessary, to conform with the current period presentation.
Mar 31, 2016
Nature of Security
Rupee Term Loans from Bank of Baroda and Axis Bank, are secured by a first charge by way of Joint mortgage by deposit of title deeds of the Company''s immovable properties both present and future and is further secured by a pari passu second charge by way of hypothecation of Company''s all movable properties (save and except book debts) including movable plant and machinery, machinery spares, tools and accessories and other movables both present and future, subject to prior charges created and / or to be created in favor of the Company''s Term Loan Lenders / Bankers on specific assets securing the termloan / working capital extended by them.
Loans Guaranteed by Directors : Nil
Period and amount of continuing Default : Nil
Note: Consequent to repayment of term loans fully, the securities offered as above stands discharged.
Nature of Security
Working Capital Loans from Banks are secured jointly by a first charge by way of Hypothecation of all stock of raw materials, process stocks, finished goods, stores and spares and receivables including export receivables, present and future book debts, outstanding moneys, receivables, claims, bills, contracts, engagements securities, and other rights and assets and are further secured jointly by second charge created and / or to be created by way of Mortgage by deposit of title deeds of all immovable properties of the Company, both present and future, and by way of hypothecation of Plant & Machinery of the Company both present and future.
Notes:
A In respect of Assessment Year 1998-1999, the claim of the company for deduction of proportionate export profits from book profits was allowed by the Income-tax department while completing the original assessment. The same was revised in the reassessment proceedings and the order raising the demand has been stayed by Madras High Court pursuant to the writ filed by the Company. In a similar case the Supreme Court has upheld the principles of claim contested by the Company. Disputed amount Rs.26.12 Lakhs (Previous Year Rs.26.12 Lakhs).
B (a) The Central Excise department has not accepted claim of Cenvat Credit of Service Tax in respect of Windmills for the reason that windmills are situated outside the factory and the matter is pending before Madras High Court. In the company''s own case, for a different year, the claim was allowed by Commissioner Central Excise (Appeals), Madurai. Disputed amount Rs.23.99 Lakhs (Previous Year Rs.23.99 Lakhs).
(b) The Central Excise department has not accepted claim of Modvat credit of in respect of its erstwhile 100% EOU unit and the matter is pending before Madras High Court. Disputed amount Rs. 11.33 Lakhs (Previous year Rs.11.33 Lakhs).
(c) The Central Excise department has not accepted claim of Cenvat Credit of Excise duty in respect of capital goods for the reason that during the impugned period cotton yarn was exempted and the matter is presently pending before CESTAT Chennai. However in a similar matter the Gujarat High Court has allowed the claim of the assessee. Disputed amount Rs.33.80 Lakhs ( Previous year Rs.33.80 Lakhs)
Total demand raised in respect of the above disputes (a b c) Rs.69.12 Lakhs (Previous year Rs.69.12 Lakhs)
C The Company has de-bonded one of its units (Unit - II) from 100 % EOU after completion of initial period of 5 Years and after fulfillment of export obligation by achieving Positive NFEP (Net Foreign Exchange) in accordance with EXIM policy. The de-bonding involved payment of duty under EPCG License (for capital goods) and Advance License (For Raw materials imported) Schemes. The de-bonding was completed after obtaining "No Dues Certificate from the Assistant Commissioner, Central Excise, Dindigul and final exit order from the Deputy Commissioner, MEPZ, Chennai. The Export Obligation, for duty discharge, fixed both under EPCG Scheme and advance License Scheme are also fulfilled and the respective licenses are redeemed from JDGFT, Coimbatore. Subsequent to the above fulfillment, the Central Excise Department has raised a Demand of Rs.410.01 Lakhs (Previous year Rs.410.01 Lakhs), towards de-bonding of Unit - II and the same is contested by way of writ before Hon''ble Madurai Bench of Madras High Court and the matter is stayed by the High Court.
D (a) The Central Excise department has raised a demand towards service tax of in respect of Freight charges paid by the Company, which was earlier held unconstitutional by Hon''ble Apex Court. The matter is contested before CESTAT, Chennai. Disputed amount Rs.4.80 Lakhs (Previous Year Rs.4.80 Lakhs)
(b) The Central Excise department has raised Service Tax demand including Interest and Penalty for payment of commission to Foreign Agents and the matter is presently pending before CESTAT Chennai. Disputed amount Rs.2.95 Lakhs ( Previous Year Rs.2.95 Lakhs)
(c) The Central Excise department has raised interest and penalty demand for late reversal of Cenvat credit and the matter is presently pending before CESTAT, Chennai. Disputed amount Rs.0.84 Lakhs ( Previous Year Rs.0.84 Lakhs).
(d) The Central Excise department has raised Interest and penalty demand for non- reversal of Cenvat Credit on account of its view that Cotton yarn is an exempted product during the period from November 2008 to December 2010.The matter is presently pending before CESTAT,Chennai. Disputed amount Rs.4.91 Lakhs (Previous Year Rs.4.91 Lakhs)
(e) The Central Excise department has raised duty demand and penalty proposing to levy the same in respect of used spares on de-bonding of 100 % EOU and the matter is presently pending before CESTAT Chennai. Disputed amount Rs. 2.18 Lakhs ( Previous Year Rs. 2.18 Lakhs )
Total demand raised in respect of the above disputes ( a b c d e) Rs.15.68 Lakhs ( Previous year Rs. 15.68 Lakhs)
E The Sales Tax Department for Assessment Year 1996-97 raised demand for non filing of certain forms and the matter is contested before Appellate Deputy Commissioner (Commercial Taxes), Madurai. Disputed Amount Rs.3.72 Lakhs (Previous Year Rs.3.72 Lakhs).
VI. In terms of information available with the company there are 3 parties (Previous Year (One) party) who are duly registered under Micro, Small and Medium Enterprises Development Act 2006 and in respect of whom the amount payable Outstanding as on 31.03.2016 is Rs.24.89 Lakhs (Previous year Rs.31.52 Lakhs) and the same was settled within the agreed dates which is not more than 45 days from the day of acceptance or deemed acceptance of the goods.
VII. Vehicle maintenance includes cost of expenditure exclusively incurred to provide transport to the employees from their place to work spot Rs.91.82 Lakhs (Previous year Rs.133.11 Lakhs)
XII. Employee Benefits:
a. Company''s Contribution to Provident Fund: Rs. 139.31 Lakhs (Previous Year Rs.131.10 Lakhs)
b. Statement on Defined Benefit Plan - Gratuity (Covered under LIC Employees Cash Accumulation Scheme) The Following table sets out the funded status of the gratuity plan and the amounts recognized in the Company''s financial statements as at 31st March 2016.
Mar 31, 2015
Note 1
Corporate Information
Ambika Cotton Mills Limited is engaged in manufacturing and selling
speciality cotton yarn catering to the needs of manufacturers of
premium branded shirts and t-shirts. Exports constitute significant
portion of the operations. The company operates with total installed
spindle capacity of 108228 (Previous Year 109872 Spindles ) of compact
facility housed in four units. The company has installed 27.4 MW wind
power capacity for captive consumption of spinning segment. The
Spinning Plants are located at Kanniyapuram, Dindigul and Windmills are
located in Tirunelveli, Dharapuram and Theni in the State of Tamilnadu.
Note 2
Nature of Security
Working Capital Loans from Banks are secured jointly by a first charge
by way of Hypothecation of all stock of raw materials, process stocks,
finished goods, stores and spares and receivables including export
receivables, present and future book debts, outstanding moneys,
receivables, claims, bills, contracts, engagements securities, and
other rights and assets and are further secured jointly by second
charge created and / or to be created by way of Mortgage by deposit of
title deeds of all immovable properties of the Company, both present
and future, and by way of hypothecation of Plant & Machinery of the
Company both present and future.
Note 3
Other Additional Information:
i Commitment and Contingent Liabilities:-
a Commitment: In respect of contract remains to be executed on capital
account Rs.1175 Lakh (Previous year Rs. 745 Lakh ). (Advance and other
expenditure incurred Rs. 65 Lakh) (Previous year Rs. 130 Lakh)
b Contingent Liabilities: Export Bills discounted / lodged with the
Bank Rs.2651 Lakh (Previous year Rs. 1363 Lakh)
c In respect of Assessment Year 1998-1999, the claim of the company for
deduction of proportionate export profits from book profits was allowed
by the Income-tax department while completing the original assessment.
The same was revised in the reassessment proceedings and the department
has raised a demand of Rs.26.12 Lakh and the order raising the demand
has been stayed by Madras High Court pursuant to the writ filed by the
Company. In a similar case the Supreme Court has upheld the principles
of claim contested by the Company.
d In respect of assessment year 2004-05 the Income-tax department
sought to re-open the assessment U/ s 147 of the Income-tax Act 1961 in
respect of claim of depreciation @ 80% in respect of the windmills.
However, the Company has filed a writ before Hon'ble Madras High Court
and the matter is pending. No demand is raised so far. In similar
cases, Madras High Court has allowed the appeals in favour of the
assessees.
e The Central Excise department has raised a demand towards service tax
of Rs.4.80 Lakh in respect of Freight charges paid by the Company,
which was earlier held unconstitutional by Hon'ble Apex Court. The
matter is contested before CESTAT, Chennai.
f The Central Excise department has raised a demand of Rs.7.06 Lakh on
account of interest in respect of an Advance License for annual
requirement. The matter is stayed by CESTAT Chennai. However the
demand is paid by the Company to redeem the License.
g The Central Excise department has raised a demand of Rs.1.09 Lakh and
further a penalty of Rs.1.09
Lakh proposing to levy the same in respect of used spares on de-bonding
of 100 % EOU and the matter is presently pending before CEST AT
Chennai.
h The Central Excise department has raised a Service Tax demand of
Rs.2.12 Lakh, Interest Rs.0.31Lakh and Penalty Rs.0.53 Lakh for payment
of commission to Foreign Agents and the matter is presently pending
before CEST AT Chennai.
i The Central Excise department has not accepted claim of Modvat credit
of Rs.11.33 Lakh made by the Company in respect of its erstwhile 100%
EOU unit and the matter is pending before Madras High Court.
j The Central Excise department has not accepted claim of Cenvat Credit
of Excise duty of Rs.33.80 Lakh made by the Company in respect of
capital goods for the reason that during the impugned period cotton
yarn was exempted and the matter is presently pending before CESTAT
Chennai. However in a similar matter the Gujarat High Court has
allowed the claim of the assessee.
k The Central Excise department has not accepted claim of Cenvat Credit
of Service T ax of Rs.28.90 Lakh made by the Company in respect of
Windmills for the reason that windmills are situated outside the
factory and the matter is pending before Madras High Court. In the
Company's own case , for a different year , the claim was allowed by
Commissioner Central Excise ( Appeals ), Madurai .
l The Sales Tax Department in respect of Assessment Year 1996-97 has
raised a demand of Rs.4.96 Lakh for non filing of certain forms and the
matter is contested before Appellate Deputy Commissioner (Commercial
Taxes), Madurai. The Company has remitted 25% of the disputed tax
Rs.1.24 Lakh and for the balance 75% of the disputed tax demand Rs.3.72
Lakh has furnished a bank guarantee.
m The Central Excise department has raised a demand of Rs.0.65 Lakh
towards interest and Rs.4.26 Lakh towards penalty for non- reversal of
Cenvat Credit on account of its view that Cotton yarn is an exempted
product during the period from November 2008 to December 2010.The
matter is presently pending before CEST AT, Chennai.
n The Central Excise department has raised a interest demand of Rs.0.25
Lakh for late reversal of Cenvat credit and further levied a penalty of
Rs.0.59 Lakh and the matter is presently pending before CESTAT,
Chennai.
o Pursuant to the Appeal filed by the Central excise department, the
Commissioner of Central Excise
(Appeals )Madurai allowed the Appeal of the department which raises a
demand of Rs.1.69 Lakh disallowing the CENVAT Credit as wrongly availed
and further a penalty of Rs.1.69 Lakh and the matter is presently
pending before CEST AT, Chennai
p The Company has de-bonded one of its units ( Unit - II ) from 100 %
EOU after completion of initial
period of 5 Years and after fulfillment of export obligation by
achieving Positive NFEP (Net Foreign Exchange ) in accordance with EXIM
policy. The de-bonding involved payment of duty under EPCG License (
for capital goods ) and Advance License ( For Raw materials imported )
Schemes. The de-bonding was completed after obtaining " No Dues
Certificate from the Assistant Commissioner, Central Excise , Dindigul
and final exit order from the Deputy Commissioner , MEPZ , Chennai .The
Export Obligation , for duty discharge , fixed both under EPCG Scheme
and advance License Scheme are also fulfilled and the respective
licenses are redeemed from JDGFT , Coimbatore . Subsequent to the above
fulfillment, the Central Excise Department has raised a Demand of
Rs.410 Lakh towards de- bonding of Unit - II and the same is contested
by way of writ before Hon'ble Madurai Bench of Madras High Court and
the matter is stayed by the High Court.
q T ANGEDCO (T amilnadu Generation and Distribution Corporation
Limited) has raised a demand for self generation tax in respect of
electricity generated by windmills amounting to Rs.355 Lakh ( Previous
year Rs. 309 Lakh ) and the matter has been stayed by Madras High court
and pursuant to the same TANGEDCO kept the demand in abeyance . T
ANGEDCO has further raised a demand of Rs. 157 Lakh (Previous Year
Rs.139 Lakh) for cross subsidy in respect of power sourced from outside
and the same has been set aside by Madras High court and TANGEDCO has
preferred an appeal before Division bench of Madras High Court and the
matter is pending. The Company has fully provided for these demands.
vi. Depreciation was recomputed on the basis of the life of the Assets
which also includes recomputation on account of Schedule II of the
Companies Act, 2013 in respect of certain assets. Consequent to this
change in accounting estimate the additional depreciation provided in
the accounts amounted to Rs.46.53 Lakh. This change in accounting
estimate would not amount to change in accounting policy in the matter
of calculation of depreciation.
vii. In terms of information available with the company there are 1
party (Previous Year (One) party) who are duly registered under Micro,
Small and Medium Enterprises Development Act, 2006 and in respect of
whom the amount payable Outstanding as on 31.03.2015 is Rs. 31,50,868/-
(Previous year Rs.16,18,363/-) and the same was settled within the
agreed dates which is not more than 45 days from the day of acceptance
or deemed acceptance of the goods.
viii. Vehicle maintenance includes cost of expenditure exclusively
incurred to provide transport to the employees from their place to work
spot Rs. 133 Lakh (Previous year Rs.116 Lakh) and staff welfare
expenses include quarterly bonus paid amounting to Rs.143 Lakh
(Previous year Rs.146 Lakh).
ix. Reversal of Deferred tax liability is on account of timing
difference of depreciation amounting to Rs. 36 Lakh (Previous year Rs.
358 Lakh).
xi Employee Benefits:
a. Company's Contribution to Provident Fund: Rs.131.10 Lakh (Previous
Year Rs. 117.01Lakh)
b. Statement on Defined Benefit Plan - Gratuity (Covered under LIC
Employees Cash Accumulation Scheme) The Following table sets out the
funded status of the gratuity plan and the amounts recognized in the
Company's financial statements as at 31 March 2015.
xv. Details of CSR Expenditure :
a. Gross amount required to be spent by the Company during the year
Rs.88 Lakh.
b. Amount spent during the year on
xvi. The Company does not have any related party transactions or inter
corporate loans.
xvii. Previous year figures have been re-grouped and re-classified
wherever necessary.
xviii. Figures are rounded to the nearest rupee.
Mar 31, 2014
Note 1
Corporate Information
Ambika Cotton Mills Limited is engaged in manufacturing and selling
speciality cotton yarn catering to the needs of manufacturers of
premium branded shirts and t-shirts. Exports constitute significant
portion of the operations. The company operates with total installed
spindle capacity of 109872 Spindles of which 100800 Spindles
constitutes compact facility housed in four units. The company has
installed 27.4 MW wind power capacity for captive consumption of
spinning segment. The Spinning Plants are located at Kanniyapuram,
Dindigul and Windmills are located in Tirunelveli, Dharapuram and Theni
in the State of Tamilnadu.
Note 2
Notes :
i. The company has only one type of share capital viz.. Equity Share
Capital having a face value of Rs.10/- per share.
ii. There are no issue / buyback of shares during the reporting period
, hence a reconciliation of the outstanding number of shares at the
beginning and at the end does not arise.
iii. The issued Equity Share Capital carries equal voting rights and
entitlement to dividends
iv. No shares are held by a holding company or its ultimate holding
company or its subsidiary or associates
v. Shareholders holding more than 5% of Share Capital
vi. No shares are reserved for issue under options and contracts /
commitments for the sale of shares/disinvestments
vii. For the period of five years immediately preceding the date as at
which the Balance sheet is prepared, no shares are (a) alloted as fully
paid up pursuant to contract (s) without payment being received in
cash, (b) allotted as fully paid up way of bonus shares, (c) bought
back.
viii. There are no securities convertible into equity / preference
shares
ix. There are no calls unpaid & forfeited shares.
Nature of Security
1. Rupee Term Loans from IDBI Bank Ltd., Bank of Baroda, Corporation
Bank, & Axis Bank Ltd, are secured by a first charge by way of joint
mortgage by deposit of title deeds of the Company''s immovable
properties both present and future and is further secured by a pari
passu second charge by way of hypothecation of Company''s all movable
properties (save and except book debts) including movable plant and
machinery, machinery spares, tools and accessories and other movables
both present and future, subject to prior charges created and / or to
be created in favour of the Company''s Term Loan Lenders / Bankers on
specific assets securing the term loan /working capital extended by
them.
2. Rupee Term Loan from Bank of Baroda, relating to Windmills located
at Theni is secured by a First Charge over the Assets created out of
the Term Loan and further secured by second charge over the fixed
assets and current assets of the company. Second charge over the fixed
assets created out of the term loan is extended to other banks.
Loans Guaranteed by Directors : Nil
Terms of Repayment : All term loans are repayable in quarterly
installments as specified in loan documents
Period and amount of continuing Default : Nil
Nature of Security
Working Capital Loans from Banks are secured jointly by a first charge
by way of Hypothecation of all stock of raw materials, process stocks,
finished goods, stores and spares and receivables including export
receivables, present and future book debts, outstanding moneys,
receivables, claims, bills, contracts, engagements securities, and
other rights and assets and are further secured jointly by second
charge created and / or to be created by way of Mortgage by deposit of
title deeds of all immovable properties of the Company, both present
and future, and by way of hypothecation of Plant & Machinery of the
Company both present and future.
Loans Guaranteed by Directors Nil
Period and amount of continuing Default Nil
Note 26
Other Additional Information:
i Commitment and Contingent Liabilities: -
a. Commitment : In respect of contract remains to be executed on
capital account Rs.745 Lakh (Previous year Rs. 1384 Lakh). (Advance and
other expenditure incurred Rs. 130 Lakh (Previous year Rs.1.23 Lakh)
b. Contingent Liabilities : Export Bills discounted / lodged with the
Bank Rs.1363 Lakh (Previous year Rs.3876 Lakh)
c. In respect of Assessment Year 1998-1999, the claim of the company
for deduction of proportionate export profits from book profits was
allowed by the Income-tax department while completing the original
assessment. The same was revised in the reassessment proceedings and
the department has raised a demand of Rs.26.12 Lakh and the order
raising the demand has been stayed by Madras High Court pursuant to the
writ filed by the company. In a similar case the Supreme Court has
upheld the principles of claim contested by the Company.
d. In respect of assessment year 2004-05 the Income tax department
sought to re-open the assessment U/ s 147 of the Income Tax Act 1961 in
respect of claim of depreciation @ 80% in respect of the windmills.
However, the company has filed a writ before Hon''ble Madras High Court
and the matter is pending. No demand is raised so far. In similar
cases, ITAT, Chennai has allowed the appeals in favour of the
assessees.
e. The Central Excise department has raised a demand towards service
tax of Rs.4.80 Lakh in respect of Freight charges paid by the Company,
which was earlier held unconstitutional by Hon''ble Apex Court. The
matter is contested before CESTAT, Chennai.
f. The Central Excise department has raised a demand of Rs.7.06 Lakh
on account of interest in respect of an Advance License for annual
requirement. The matter is stayed by CESTAT Chennai. However the demand
is paid by the company to redeem the License.
g. The Central Excise department has raised a demand of Rs.1.09 Lakh
and further a penalty of Rs.1.09 Lakh proposing to levy the same in
respect of used spares on de-bonding of 100 % EOU and the matter is
presently pending before CESTAT Chennai.
h. The Central Excise department has raised a Service Tax demand of
Rs.2.12 Lakh, Interest Rs.0.31Lakh and Penalty Rs.0.53 Lakh for payment
of commission to Foreign Agents and the matter is presently pending
before CESTAT Chennai.
i. The Central Excise department has not accepted claim of Modvat
credit of Rs.11.33 Lakh made by the Company in respect of its erstwhile
100% EOU unit and the matter is pending before Madras High Court.
j. The Central Excise department has not accepted claim of Cenvat
Credit of Excise duty of Rs.33.80 Lakh made by the Company in respect
of capital goods for the reason that during the impugned period cotton
yarn was exempted and the matter is presently pending before CESTAT
Chennai. However in a similar matter the Gujarat High Court allowed the
claim of the assessee.
k. The Central Excise department has not accepted claim of Cenvat
Credit of Service Tax of Rs.28.90 Lakh made by the Company in respect
of Windmills for the reason that windmills are situated outside the
factory and the matter is pending before Madras High Court. In the
company''s own case, for a different year, the claim was allowed by
Commissioner Central Excise ( Appeals), Madurai.
l. The Sales Tax Department in respect of Assessment Year 1996-97 has
raised a demand of Rs.4.96 Lakh for non filing of certain forms and the
matter is contested before Appellate Deputy Commissioner (Commercial
Taxes), Madurai. The Company has remitted 25% of the disputed tax
Rs.1.24 Lakh and for the balance 75% of the disputed tax demand Rs.3.72
Lakh has furnished a bank guarantee.
* Obligation in USD is computed at 8 times of the Duty saved amount, to
be fulfilled within a period of 8 years from the date of authorization.
In the case of the company the above closing balance obligation in USD
905209.67 is in respect of authorizations obtained during the current
financial year. The Obligation fulfilled Authorizations are pending for
redemption.
n. In respect of Advance Authorization for import of Raw Material
(Modal) the company has to fulfill an export obligation in USD 63917
and in the event of failure to fulfill the prescribed export obligation
the company is liable to pay duty amount of Rs.842137 /- (previous year
Rs. Nil) along with applicable rate of interest. In the opinion of the
board the present level of exports of the company would be sufficient
to fulfill the prescribed export obligation fixed under the
authorization.
o. The Company has de-bonded one of its units (Unit - II) from 100 %
EOU after completion of initial period of 5 Years and after fulfillment
of export obligation by achieving Positive NFEP (Net Foreign Exchange)
in accordance with EXIM policy. The de-bonding involved payment of duty
under EPCG License (for capital goods) and Advance License (For Raw
materials imported) Schemes. The de-bonding was completed after
obtaining "No Dues Certificate from the Assistant Commissioner, Central
Excise, Dindigul and final exit order from the Deputy Commissioner,
MEPZ, Chennai.The Export Obligation, for duty discharge, fixed both
under EPCG Scheme and advance License Scheme are also fulfilled and the
respective licenses are redeemed from JDGFT, Coimbatore. Subsequent to
the above fulfillment, the Central Excise Department has raised a
Demand of Rs.410 Lakh towards de- bonding of Unit - II and the same is
contested by way of writ before Hon''ble Madurai Bench of Madras High
Court and the matter is stayed by the High Court.
p. TANGEDCO (Tamilnadu Generation and Distribution Corporation Limited)
has raised a demand for self generation tax in respect of electricity
generated by windmills amounting to Rs.309 Lakh (Previous year Rs. 90
Lakh) and the matter has been stayed by Madras High court and pursuant
to the same TANGEDCO kept the demand in abeyance. TANGEDCO has further
raised a demand of Rs. 139 Lakh for cross subsidy in respect of power
sourced from outside and the same has been set aside by Madras High
court and TANGEDCO has preferred an appeal before Division bench of
Madras High Court and the matter is pending. The company has fully
provided for these demands.
v. In terms of information available with the company there are 1 (one
) party (Previous Year 3 (three ) parties) who are duly registered
under Micro, Small and Medium Enterprises Development Act, 2006 and in
respect of whom the amount payable Outstanding as on 31.03.2014 is
Rs.16,18,363/ - (Previous year Rs.611023/-) and the same was settled
within the agreed dates, which is not more than 45 days from the day of
acceptance or deemed acceptance of the goods.
vi. Vehicle maintenance includes cost of expenditure exclusively
incurred to provide transport to the employees from their place to work
spot Rs.116 Lakh (Previous year Rs.94 Lakh) and staff welfare expenses
include quarterly bonus paid amounting to Rs.146 Lakh (Previous year
Rs.334 Lakh).
vii. Reversal of Deferred tax liability is on account of timing
difference of depreciation amounting to Rs.358 Lakh (Previous year Rs.
287 Lakh ).
ix. Employee Benefits:
a. Company''s Contribution to Provident Fund: Rs.117.01 Lakh (Previous
Year Rs. 108.75 Lakh)
b. Statement on Defined Benefit Plan - Gratuity (Covered under LIC
Employees Cash Accumulation Scheme). The Following table sets out the
funded status of the gratuity plan and the amounts recognized in the
Company''s financial statements as at 31st March 2014.
Mar 31, 2013
Notel
Corporate Information
Ambika Cotton Mills Limited is engaged in manufacturing and selling
speciality cotton yarn catering to the needs of manufacturers of
premium branded shirts and t-shirts. Exports constitute significant
portion of the operations. The company operates with total installed
spindle capacity of 109872 Spindles of which 100800 Spindles
constitutes compact facility housed in four units. The company has
installed 27.4 MW wind power capacity of which 25.9 MW is meant for
captive consumption of spinning segment. The Spinning Plants are
located at Kanniyapuram, Dindigul and Windmills are located in
Tirunelveli, Dharapuram and Theni in the State of Tamilnadu.
Note 2
Other Additional Information:
i Commitment and Contingent Liabilities: -
a. Commitment: In respect of contract remains to be executed on
capital account Rs.1384 Lakh (Previous year Rs. Nil). (Advance and
other expenditure incurred Rs.1.23 Lakh.
Contingent Liabilities:
b. Export Bills discounted / lodged with the Bank Rs.3876/- Lakh
(Previous year Rs.3499 Lakh).
c. In respect of Assessment Year 1998-1999, the claim of the company
for deduction of proportionate export profits from book profits was
allowed by the Income-tax department while completing the original
assessment. The same was revised in the reassessment proceedings and
the department has raised a demand of Rs.26.12 Lakh and the order
raising the demand has been stayed by Madras High Court pursuant to the
writ filed by the company. In a similar case the Supreme Court has
upheld the principles of claim contested by the Company.
d. In respect of assessment year 2004-05 the department sought to
re-open the assessment U/ s 147 of the Act in respect of claim of
depreciation @ 80% in respect of the windmills. However, the company
has filed the writ before Hon''ble Madras High Court and the matter is
pending. No demand is raised so far.
e. The Central Excise department has raised a demand towards service
tax of Rs.4.80 Lakh in respect of Freight charges paid by the Company,
which was earlier held unconstitutional by Hon''ble Apex Court. The
matter is contested before CESTAT, Chennai.
f. The Central Excise department has raised a demand of Rs.7.06 Lakh
on account of interest in respect of an Advance License for annual
requirement. The matter is stayed by CESTAT Chennai. However the demand
is paid by the company to redeem the License.
g. The Central Excise department has raised a demand of Rs.1.09 Lakh
and further a penalty of Rs.1.09 Lakh proposing to levy the same in
respect of used spares and the matter is presently pending before
CESTAT Chennai.
h. The Central Excise department has raised a Service Tax demand of
Rs.2.12 Lakh, Interest Rs.0.31 Lakh and Penalty Rs.0.53 Lakh for
payment of commission to Foreign Agents and the matter is presently
pending before CESTAT Chennai.
i. The Central Excise department has not accepted claim of Modvat
credit of Rs.11.33 Lakh made by the Company in respect of its erstwhile
100 % EOU unit and the matter is pending before Madras High Court.
j. The Central Excise department has not accepted claim of Cenvat
Credit of Excise duty of Rs.33.80 Lakh made by the Company in respect
of capital goods for the reason that during the impugned period cotton
yarn was exempted and the matter is presently pending before CESTAT
Chennai.
k. The Central Excise department has not accepted claim of Cenvat
Credit of Service tax of Rs.28.90 Lakh made by the Company in respect
of Windmills for the reason that windmills are situated outside the
factory and the matter is pending before Madras High Court.
I. The Central Excise department has not accepted claim of Cenvat
Credit of Service tax of Rs.1.87 Lakh together with interest which is
not quantified and further levied a penalty of Rs.1.87 Lakh in respect
of business auxiliary services for windmills as such windmills are
situated outside the factory and the matter is pending before CCE
(Appeals), Madurai.
m. The Sales Tax Department in respect of Assessment Year 1996-97 has
raised a demand of Rs.4.96 Lakh for non filing of certain forms and the
matter is contested before Appellate Deputy Commissioner (Commercial
Taxes), Madurai. The Company has remitted 25% of the disputed tax
Rs.1.24 Lakh and for the balance 75% of the disputed tax demand Rs.3.72
Lakh has furnished a bank guarantee.
n During the year the company had obtained EPCG Licenses and fulfilled
Export Obligation of USD 1834770 (duty amount Rs.134 Lakh) for Import
of capital goods and spares and same are in the process of redemption.
The company has to fulfill Export Obligation in USD 1654624 involving
duty amount of Rs. 115 Lakh computed at eight times of the duty saved
amount within a period of eight years from the date of License.
o. The Company has de-bonded one of its units (Unit-II) from 100% EOU
after completion of initial period of 5 years and after fulfillment of
export obligation by achieving positive NFEP (Net Foreign Exchange) in
accordance with the EXIM Policy. The de-bonding involved payment of
duty under EPCG License (for capital goods) and Advance License (for
Raw materials imported) schemes. The de-bonding was completed after
obtaining ''No Dues Certificate1 from Assistant Commissioner, Central
Excise, Dindigul and final exit order from Deputy Commissioner, MEPZ,
Chennai. The Export obligation, for duty discharge, fixed both under
EPCG Scheme and Advance License Scheme are also fulfilled and the
respective licenses are redeemed from JDGFT, Coimbatore. Subsequent to
the above fulfillment, the Central Excise Department has raised a
demand of Rs.410 Lakh towards de-bonding of Unit II and the same is
contested by way of writ before Hon''ble Madurai Bench of Madras High
Court and the matter is stayed by the High Court.
ii. In terms of information available with the company there are 3
(Three) parties (Previous Year 4 (four) parties) who are duly
registered under Micro, Small and Medium Enterprises Development Act,
2006 and in respect of whom the amount payable Outstanding as on
31.03.2013 is Rs.611023/- (Previous year Rs.449048/-) and the same are
settled within the agreed dates, which is not more than 45 days from
the day of acceptance or deemed acceptance of the goods.
iii. Vehicle maintenance includes cost of expenditure exclusively
incurred to provide transport to the employees from their place to work
spot Rs.94 Lakh (Previous year Rs.74 Lakh) and staff welfare expenses
include quarterly bonus paid amounting to Rs.334 Lakh (Previous year
Rs.165 Lakh)
iv. Reversal of Deferred tax liability is on account of timing
difference of depreciation amounting to Rs.287 Lakh (Previous year Rs.
Nil)
v. Previous year figures have been re-grouped and re-classified
wherever necessary.
vi. Figures are rounded to the nearest rupee.
Mar 31, 2012
I, Commitment and Contingent Liabilities:-_
a. Commitment : In respect of contract remains to be executed on
capital account Rs. Nil (Previous year Rs.142/- Lakh net of advance and
other expenditure incurred Rs.58/- Lakh).
Contingent Liabilities :
b. Letter of Credits of Export discounted with the Bank Rs,3499/- Lakh
(Previous year Rs.570 Lakh)
c. In respect of Assessment Year 1998-1999, the claim of the company
for deduction of proportionate export profits from book profits was
allowed by the Income-tax department while completing the original
assessment. The same was revised in the reassessment proceedings and
the department raised a demand of Rs.26.12 Lakh and the order raising
the demand has Peen stayed by Madras High Court pursuant to the writ
filed by the company. In a similar case the Supreme Court has upheld
the principles of claim contested by the Company.
d. In respect of Import of Raw materials, the customs duty was
demanded at 10% at the time of import as against 5% in respect of prior
contracts entered into before the notification of raising the rate of
duty from 5% to 10% and the difference duty amount arising Rs.30.12
Lakh has been stayed by Madras High Court. However pending disposal of
the writ, the company has provided a Bank Guarantee towards the same by
depositing a sum of Rs.30.00 Lakh.
e. The Central Excise department has raised a demand towards service
tax of Rs.4.80 Lakh in respect of Freight charges paid by the Company,
which was earlier held unconstitutional by
Hon'ble Apex Court. The matter is contested before CESTAT, Chennai._
f. The Central Excise department has raised a demand of Rs.7.06 Lakh
on account of interest in respect of an Advance License for annual
requirement. The matter is stayed by CESTAT Chennai. However the
demand is paid by the company to redeem the Licence.
g. The Central Excise department has raised a demand of Rs.l .09 Lakh
and further a penalty of Rs.l.09 Lakh proposing to levy the same in
respect of used spares and the matter is presently pending before
CESTAT Chennai.
h. The Central Excise department has raised a Service Tax demand of
Rs.2.12 Lakh, Interest Rs.0.31 Lakh and Penalty Rs.0.53 Lakh for
payment of commission to Foreign Agents and the matter is presently
pending before CESTAT Chennai.
i. The Central Excise department has not accepted claim of Modvat
credit of Rs.11.33 Lakhs made by the Company in respect of its
erstwhile 100% EOU unit and the matter is pending before Madras High
Court.
j. The Central Excise department has not accepted claim of Cenvat
Credit of Excise duty of Rs.31.02 Lakhs made by the Company for the
reason during the impugned period cotton yarn was exempted and the
matter is presently pending before CESTAT Chennai.
k. The Central Excise department has not accepted claim of Cenvat
Credit of Service tax of Rs.28.90 Lakhs made by the Company in respect
of Windmills for the reason that windmills are situated outside the
factory and the matter is pending before Madras High Court._
l. In respect of the EPCG License obtained and utilized for Import of
capital goods, the company has fulfilled its Export Obligation in USD
computed at eight times of the duty saved amount within a period of
eight years from the date of License and the licenses are in the
process of filing with the appropriate authority'for redemption. The
duty saved amount, in respect of which Export Obligation remains to be
fulfilled as on 31.03.2012 amounts to Rs. Nil. (Previous year Rs. 60
Lakh). The EPCG licenses are to be filed with the appropriate
authority for redemption which involves duty saved amount of Rs.l .53
Crores.
m. In respect of Advance License utilized up to 31.03.2012 for Import
of Raw Materials, the company has to fulfill an Export Obligation in
USD 34083 (Previous year USD 34083) and in the event of failure to
fulfill the prescribed Export Obligation the Company is liable to pay
duty amount to the extent of Rs. 2.56 Lakh (Previous year 2.56 Lakh)
along with applicable rate of interest. In the opinion of the Board the
present level of exports of the company would be sufficient to fulfill
the prescribed export obligation fixed under the authorizations.
n. The Company has de-bonded one of its units (Unit-ll) from 100% EOU
after completion of initial period of 5 years and after fulfillment of
export obligation by achieving positive NFEP (Net Foreign Exchange) in
accordance with the EXIM Policy. The de-bonding involved payment of
duty under EPCG License (for capital goods) and Advance License (for
Raw materials imported) schemes. The de-bonding was completed after
obtaining 'No Dues Certificate1 from Assistant Commissioner, Central
Excise, Dindigul and final exit order from Deputy Commissioner, MEPZ,
Chennai. The
Export obligation, for duty discharge, fixed both under EPCG Scheme and
Advance License Scheme are also fulfilled and the respective licenses
are redeemed from JDGFT, Coimbatore. Subsequent to the above
fulfillment, the Central Excise Department has raised a demand of
Rs.410 Lakh towards de-bonding of Unit II and the same is contested by
way of writ before Hon'ble Madurai Bench of Madras High Court and the
matter is stayed by the High Court.
ii. Interest capitalized in respect of the projects completed for the
year amounted to Rs.O Lakh (Previous year Rs. 95 Lakh)
iii. Related Party Transactions & Disclosure : Salary to Mrs. Bhavya
Chandran Rs. 1.20 Lakh (Previous Year Rs.1 .20 Lakh) included under
salaries and wages
iv. In terms of information available with the company there are 4
(Four) parties (Previous Year 2 (two) parties) who are duly registered
under Micro, Small and Medium Enterprises Development Act, 2006 and in
respect of whom the amount payable Outstanding as on 31.03.2012 is
Rs.449048/- (Previous year Rs.1 ,32,425/-) and the same are settled
within the agreed dates, which is not more than 45 days from the day of
acceptance or deemed acceptance of the goods.
v. Vehicle maintenance includes cost of expenditure exclusively
incurred to provide transport to the employees from their place to work
spot Rs.74 Lakh (Previous year Rs.68 Lakh) and staff welfare expenses
include quarterly production incentive paid amounting to Rs.l65 Lakh
(Previous year Rs.322 Lakh)
vi. Deferred tax liability is on account of timing difference of
depreciation amounting to Rs.l 1 Lakh (Previous year Rs. 1456 Lakh)
vii. Employee Benefits:
a. Company's Contribution to Provident Fund: Rs.l 13.53 Lakh (Previous
Year Rs. 61.48 Lakh)
b. Statement on Definea Benefit Plan - Gratuity (Covered under LIC
Employees Cash Accumulation Scheme)
The Following table sets out the funded status of the gratuity plan and
the amounts recognized in the Company's financial statements as at 31st
March 2012
viii. Previous year figures have been re-grouped and re-classified
wherever necessary.
ix. Figures are rounded to the nearest rupee.
Mar 31, 2011
1. Contingent Liability: -
a. Contingent Liability in respect of contract remains to be executed
on capital account amounts to Rs. 142/-Lakh (Previous year Rs. 7392/-
Lakh) net of advance and other expenditure incurred Rs 58/- Lakh so far
as up to 31,03.2011 (Previous year Rs.67/- Lakh)
b. Letter of Credits of Export discounted with the Bank Rs,570/- Lakh
(Previous year Rs. 0 Lakh)
c. In respect of Assessment Year 1998-1999, the claim of the company
for deduction of proportionate export profits from book profits was
allowed by the Income-tax department while completing the original
assessment. The same was revised in the reassessment proceedings and
the department raised a demand of Rs.26.12 Lakh and the order raising
the demand has been stayed by Madras High Court pursuant to the writ
filed by the company. In a similar case the Supreme Court has upheld
the principles of claim contested by the Company.
d. In respect of Import of Raw materials, the customs duty was
demanded at 10% at the time of import as against 5% in respect of prior
contracts entered into before the notification of raising the rate of
duty from 5% to 10% and the difference duty amount arising Rs.30.12
Lakh has been stayed by Madras High Court. However pending disposal of
the writ, the company has provided a Bank Guarantee towards the same by
depositing a sum of Rs.30.00 Lakh.
e. The Central Excise department has raised a demand towards service
tax of Rs.4.80 Lakh in respect of Freight charges paid by the Company,
which was earlier held unconstitutional by Hon'ble Apex Court.
The matter is contested before Commissioner Central Excise (Appeals),
Madurai,
f. The Central Excise department has raised a demand of Rs.7.06 Lakh
on account of interest in respect of an Advance License for annual
requirement. The matter is stayed by CESTAT Chennai. However the demand
is paid by the company to redeem the Licence.
g. The Central Excise department has raised a demand of Rs.1.09 Lakh
and further a penalty of Rs.1.09 Lakh proposing to levy the same in
respect of used spares and the matter is presently pending before
CESTAT Chennai.
h. The Central Excise department has raised a Service Tax demand of
Rs.2.12 Lakh, Interest Rs.0.31 Lakh and Penalty Rs.0.53 Lakh for
payment of commission to Foreign Agents and the matter is presently
pending before CESTAT Chennai
i. The Central Excise department has raised a Service Tax demand of
Rs.0.31 Lakh and Penalty Rs.0.36 Lakh for payment of Licence Fee and
the matter is presently pending before Commissioner of Central Excise
(Appeals) Madurai.
j. In respect of the EPCG License obtained and utilized for Import of
capital goods, the company has to fulfill Export Obligation in USD
computed at eight times of the duty saved amount within a period of
eight years from the date of License and in the event of failure to
fulfill the prescribed Export Obligation the Company is liable to pay
duty amount along with applicable rate of interest. The duty saved
amount, in respect of which Export Obligation remains to be fulfilled
as on 31.03.2011 amounts to Rs. 60 Lakh. (Previous year Rs. 1246
Lakh). In the opinion of the Board the present level of exports of the
company would be sufficient to fulfill the prescribed export obligation
fixed under the authorizations.
k. In respect of Advance License utilised up to 31.03.2011 for Import
of Raw Materials, the company has to fulfill an Export Obligation in
USD 0.33 Lakh (Previous year USD 75,84,646) and in the event of failure
to fulfill the prescribed Export Obligation the Company is liable to
pay duty amount to the extent of Rs. 2.56 Lakh (Previous year 452 Lakh)
along with applicable rate of interest. In the opinion of the Board the
present level of exports of the company would be sufficient to fulfill
the prescribed export obligation fixed under the authorizations.
l. The Company has de-bonded one of its units (Unit-ll ) from 100% EOU
after completion of initial period of 5 years and after fulfillment of
export obligation by achieving positive NFEP (Net Foreign Exchange) in
accordance with the EXIM Policy. The de-bonding involved payment of
duty under EPCG License (for capital goods) and Advance License (for
Raw materials imported) schemes. The de-bonding was completed after
obtaining 'No Dues Certificate1 from Assistant Commissioner, Central
Excise, Dindigul and final exit order from Deputy Commissioner, MEPZ,
Chennai. The Export obligation, for duty discharge, fixed both under
EPCG Scheme and Advance License Scheme are also fulfilled and the
respective licenses are redeemed from JDGFT, Coimbatore. Subsequent to
the above fulfillment, the Central Excise Department has raised a
demand of Rs.410 Lakh towards de-bonding of Unit II and the same is
contested by way of writ before Hon'ble Madurai Bench of Madras High
Court and the matter is stayed by the High Court.
m. The Regional Provident Fund Commissioner, Madurai has raised a
demand of Rs. 40.26 Lakh in respect of apprentices appointed under
standing orders duly certified by the prescribed authority and such
apprentices are not required to be enrolled as members of Employees'
Provident Fund & Miscellaneous Provision Act, 1952. However this is not
acceptable to the Provident Fund department and the above demand was
raised. The company has contested the matter before EPF Appellate
Tribunal, New Delhi and the matter stands stayed by the Tribunal.
2. Interest capitalized in respect of the projects completed for the
year amounted to Rs.95 Lakh (Previous year Rs. 0 Lakh)
3. Related Party Transactions & Disclosure : Salary to Ms. Bhayya
Chandran Rs. 1.20 Lakh (Previous Year Rs.l .20 Lakh) included under
salaries and wages
4. Total quantity of Cotton traded 3.26 Lakh Kgs. (Previous year 0
Lakh Kgs.)
5 In terms of information available with the company there are 2 (two)
parties (Previous Year 2 (two) parties) who are duly registered under
Micro, Small and Medium enterprises development Act, 2006 and in
respect of whom the amount payable Outstanding as on 31.03.2011 is Rs.
1,32,425/- (Previous year Rs. 78,901/-) and the same are settled within
the agreed dates, which is not more than 45 days from the day of
acceptance or deemed acceptance of the goods.
6 Vehicle maintenance includes cost of expenditure incurred to provide
transport to the employees from their place to work spot Rs. 68 Lakh
(Previous year Rs. 56 Lakh) and staff welfare expenses include
quarterly production incentive paid amounting to Rs. 322 Lakh (Previous
year Rs. 63 Lakh).
7 Deferred tax liability is on account of timing difference of
depreciation amounting to Rs.l 456 Lakh (previous year Rs. 113 Lakh)
8. Employee Benefits:
a. Company's Contribution to Provident Fund: Rs. 61.48 Lakh (Previous
Year Rs.36.76 Lakh)
P. Statement on Defined Benefit Plan - Gratuity (Covered under LIC
Employees Cash Accumulation Scheme)
The Following taPle sets out the funded status of the gratuity plan and
the amounts recognized in the Company's financial statements as at 31st
March 2011
9. Previous year figures have been re-grouped, re-classified and
re-calculated wherever necessary.
10. Figures are rounded to the nearest rupee.
Mar 31, 2010
1. Contingent Liability: -
a. Contingent Liability in respect of contract remains to be executed
on capital account amounts to Rs.7392/-Lakh (Previous year Rs. 0/-
Lakh) net of advance and other expenditure incurred Rs 67/- Lakh so far
as up to 31.03.2010 (Previous year Rs.O/-
Lakh)
b. Letter of Credits of Export discounted with the Bank Rs.O Lakh
(Previous year Rs. 1110 Lakh)
c. In respect of Assessment Year 1998-1999, the claim of the company
for deduction of proportionate export profits from book profits was
allowed by the Income-tax department while completing the original
assessment, The same was revised in the reassessment proceedings and
the department has raised a demand of Rs.26.12 Lakh and the order
raising the demand has been stayed by Madras High Court pursuant to the
writ filed by the company,
d. In respect of Import of Raw materials, the customs duty was
demanded at 10% at the time of import as against 5% in respect of prior
contracts entered into before the notification of raising the rate of
duty from 5% to 10% and the difference duty amount arising Rs.30,12
Lakh has been stayed by Madras High Court. However pending disposal of
the writ, the company has provided a Bank Guarantee towards the same by
depositing a sum of Rs.30.00 Lakh,
e. The Central Excise department has raised a demand towards service
tax of Rs.4.80 Lakh in respect of Freight charges paid by the Company,
which was held unconstitutional by Honble Apex Court. As the company
has not collected any service tax from the providers of transport
services and accordingly not liable to make any payment towards the
same. The Honble High Court Madras has stayed the matter,
f. The Central Excise department has raised a demand of Rs.7,06 Lakh
on account of interest in respect of an Advance License for annual
requirement. The matter is stayed by CESTAT Chennai,
g. In respect of the EPCG License obtained and utilized for Import of
capital goods, the company has to fulfill Export Obligation in USD
computed at eight times of the duty saved amount within a period of
eight years from the date of License and in the event of failure to
fulfill the prescribed Export Obligation the Company is liable to pay
duty amount along with applicable rate of interest. The duty saved
amount, in respect of which Export Obligation remains to be fulfilled
as on 31.03,2010 amounts to Rs.l 246 Lakh. (Previous year Rs. 2323
Lakh). In the opinion of the Board the present level of exports of the
company would be sufficient to fulfill the prescribed export obligation
fixed under the authorizations.
h. In respect of Advance License utilised up to 31,03.2010 for Import
of Raw Materials, the company has to fulfill an Export Obligation in
USD 7584646 (Previous year USD 9623068) and in the event of failure to
fulfill the prescribed Export Obligation the Company is liable to pay
duty amount to the extent of Rs, 452 Lakh (Previous year 575 Lakh)
along with applicable rate of interest, In the opinion of the Board the
present level of exports of the company would be sufficient to fulfill
the prescribed export obligation fixed under the authorizations,
i. The Company has de-bonded one of its units (Unit-ll) from 100% EOU
after completion of initial period of 5 years and after fulfillment of
export obligation by achieving positive NFEP (Net Foreign Exchange;) in
accordance with the EXIM Policy. The de-bonding involved payment of
duty under EPCG License (for capital goods) and Advance License (for
Raw materials imported) schemes. The de-bonding was completed after
obtaining No Dues Certificate from Assistant Commissioner, Central
Excise, Dindigul and final exit order from Deputy Commissioner, MEPZ,
Chennai. The Export obligation, for duty discharge, fixed both under
EPCG Scheme and Advance License Scheme are also fulfilled and the
respective licenses are redeemed from JDGFT, Coimbatore. Subsequent to
the above fulfillment, the Central Excise Department has raised a
demand of Rs.410 Lakh towards de-bonding of Unit II and the same is
contested by way of writ before Honble Madurai Bench of Madras High
Court and the matter is stayed by the High Court.
j. The Regional Provident Fund Commissioner, Madurai has raised a
demand of Rs. 40 Lakh in respect of apprentices appointed under
standing orders duly certified by the prescribed authority and such
apprentices are not required to be enrolled as members of Employees
Provident Fund & Miscellaneous Provision Act, 1952. However this is not
acceptable to the Provident Fund department and the above demand was
raised. The company has contested the matter before EPF Appellate
Tribunal, New Delhi and the matter stands stayed by the tribunal.
2, Interest capitalized in respect of the projects completed for the
year amounted to Rs.O Lakh (Previous year Rs. 65 Lakh)
3. Related Party Transactions & Disclosure : Salary to Ms. Bhavya
Chondran
Rs. 1.20 Lakh
(Previous Year Rs.l .20
Lakh) included under
salaries and
wages
4, (i). Depreciation in respect of Wind Mills was recomputed
considering the life of the assets as 13.33 years instead of 20 years.
Consequent to this change in accounting estimate the additional
depreciation provided in the accounts amounted to Rs,258 Lakh. This
change in accounting estimate would not amount to Change in accounting
policy in the matter of calculation of depreciation.
(ii). The Company is entitled to CDM Benefits in respect of Wind Mills,
the receipt of which was uncertain in the earlier year. Accordingly
this receipt was recognized by the company on the basis "if and when
received", Consequent to cessation of uncertainty of receipt, the
amount, for the period from 01.07.2009 to 31.03.2010, is quantified and
recognized in respect of the said period amounting to Rs.54 Lakh, This
recognition of CDM benefits receivable also would not fall within the
realm of change in accounting policy as the said receipt per-se is not
covered under Accounting Standard 9(AS9) relating to revenue
recognition,
(iii) The prior period expenses represents excess provision reversed
relating to TUFS interest subsidy amounting to Rs.73,47,402/- and Wind
Energy Operation and Maintenance expenses relating to earlier year
amounting to Rs.l 6,43,070/-
5. In terms of information available with the company there are 2 (two)
parties (Previous Year 3 (three) parties) who are duly registered under
Micro, Small and Medium enterprises development Act 2006 and in respect
of whom the amount payable Outstanding as on 31,03,2010 is Rs,78901/-
(Previous year Rs,81217/-) and the same are settled within the agreed
dates, which is not more than 45 days from the day of acceptance or
deemed acceptance of the goods.
6 Vehicle maintenance includes cost of expenditure exclusively
incurred to provide transport to the workers from their place to work
spot Rs 56 Lakh ( Previous year Rs, 31 Lakh )
7 Deferred tax liability is on account of timing difference of
depreciation amounting to Rs.ll 3 Lakh ( previous year Rs.373 Lakh)
8. Employee Benefits:
a. Companys Contribution to Provident Fund: Rs. 36,76 Lakh (Previous
Year Rs.l 7.34 Lakh)
b. Statement on Defined Benefit Plan - Gratuity (Covered under LIC
Employees Cash Accumulation Scheme)
9. Previous year figures have been re-grouped and re-classified
wherever necessary.
10. Figures are rounded to the nearest rupee.
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