Mar 31, 2015
1. Employee benefit plans
As per the Accounting Standard 15 'Employee Benefits' the disclosure of
employee benefit as defined in the Accounting Standard are given below:
2. Segment reporting:
Segment reporting as per AS-17 is not applicable to the company as it
does not have any reportable segment.
3. Related party disclosure
As required by Accounting Standard-18, "Related Party Disclosures"
issued by the Institute of Chartered Accountants of India, relevant
information is provided here below:
(d) Tax Demand totaling Rs. 8.60 Lacs for AY 2004-2005, Rs. 23.43 Lacs
for AY 2013-2014 and Rs. 2.71 Lacs for AY 2014-15 raised by the Income
Ta x Department is being contested by the Company in appeal. No
provision has been made for the liability in the accounts under report.
Other Tax demand of Rs. 10.11 Lacs For Assessment Year 2008-2009 raised
by Income Tax Department is under rectification for apparent error.
(e) The company has entered an arbitration suit against the Punjab
State Warehousing Corporation. The arbitration tribunal has issued its
award against the company for Rs.890.25 lacs. However, both the parties
have filed separate applications in the court with requests for setting
aside the award. The hon'ble court has now dismissed the application of
PSWC in the month of August 2014 . The petition of Company is still in
progress and as such quantification of any liability or recovery, if
any, is not possible, hence no provision for the same has been made.
However, the company is fairly confident of its position and expects to
get a favorable judgment in the case.
4. In a suit for recovery against Harshvardhan Chemicals & Minerals
Ltd., Udaipur (HCML), the High Court of Delhi has passed a decree of
Rs. 55.68 lacs in favour of the company. However, HCML approached BIFR
for revival and rehabilitation. The BIFR has recently dismissed HCML's
application and ordered for winding up. Now HCML has approached AIIFR.
The decree is alive and effective and the company hopes to execute it..
5. License in hand valued at Rs 21,46,73,628/- appearing in note-16 are
due to expire in financial year 2015-16. If not sold/ utilized the
entire amount shall be required to be written off in FY 2015-16.
6. Un hedged foreign currency exposure
The Company is in the business of export and import of commodities. The
net un hedged foreign currency exposure as on 31.03.2015 is USD 26.19
Million and Euro 9.41 Million total equivalent INR 22690.70 lacs (
31.03.2014 USD 3.72 million and Euro 4.52 million, total equivalent INR
5950.33 lacs).
7. Micro and small enterprises
Disclosure of Sundry Creditors under current Liabilities 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". Amounts due as on 31st March, 2015 to Micro,
Small and Medium Enterprises on account of principal amount together
with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).
8. Previous years figures has been regrouped / restated where ever
found necessary.
Mar 31, 2014
1 Corporate Information:
The Company is engaged in Trading of Agro/Energy Commodities having
global presence. The commodities traded include Rice, Wheat, Sugar,
Maize, Soya meal, Barley, and Pulses in addition to Coal and Sulphur
among other things. The trade network of the company has expanded to
all corners of the world.The company has maintained long and sustained
relationships with its clients across the globe due to its quality
products and efficient services.
2 Segment reporting:
Segment reporting as per AS-17 is not applicable to the company as it
does not have any reportable segment.
3 Related party disclosure
As required by Accounting Standard-18, "Related Party Disclosures"
issued by the Institute of Chartered Accountants of India, relevant
information is provided here below:
(a) Related parties with whom transactions have taken place during the
year:
4 Earning per share
Basic and diluted earnings per share are calculated by dividing the net
Profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
The Company has not issued any potential equity shares, accordingly,
basic, and diluted earning per share are the same.
5 Contingent liabilities and commitments (to the extent not provided
for)
Particulars Current year Previous year
Contingent liabilities
(a) Guarantees to sale tax
authorities 590000 590000
(b) Guarantees - Corporate Guarantee
for credit facility to
subsidiary 2993685170 2714261224
(c) Letter of credit issued for
purchase - 166162500
(d) Other guarantees 40000000 91517984
(e) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005
raised by the Income Tax Department is being contested by the Company
in appeal. No provision has been made for the liability in the accounts
under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year
2008-2009 raised by Income Tax Department is under rectification for
apparent error.
(f) The company has entered an arbitration suit against the Punjab
State Warehousing Corporation. The arbitration tribunal has issued its
award against the company for Rs.890.25 lacs. However, both the parties
have filed separate applications in the court with requests for setting
aside the award.The case is still in progress and as such
quantification of any liability or recovery, if any, is not possible,
hence no provision for the same has been made. However, the company is
fairly confident of its position and expects to get a favorable
judgment in the case.
6 In a suit for recovery against Harshvardhan Chemicals & Minerals
Ltd., Udaipur (HCML), the High Court of Delhi has passed a decree of
Rs. 55.68 lacs in favour of the company. However, HCML approached BIFR
for revival and rehabilitation. The BIFR has recently dismissed HCML''s
application and ordered for winding up. The decree is alive and
effective and the company hopes to execute it..
7 The company has not been able to sell/use export incentive duty
scripts of Rs. 27.18 Cr, outstanding for a considerable period of time
due to actual user condition, accordingly the same have been
re-classified as non-current assets.
8 Unhedged foreign currency exposure
The Company is in the business of export and import of commodities. The
net unhedged foreign currency exposure as on 31.03.2014 is USD 3.72
million and Euro 4.52 million, total equivalent INR 5950.33 lacs
(31.03.2013: USD (-) 35.34 million equivalent to INR (-) 19191.00
lacs).
9 Micro and small enterprises
Disclosure of Sundry Creditors under current Liabilities 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".Amounts due as on 31st March, 2014 to Micro,
Small and Medium Enterprises on account of principal amount together
with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).
10 Previous years figures has been regrouped / restated where ever
found necessary.
Mar 31, 2013
1 Corporate Information:
The Company is engaged in Trading of Agro/Energy Commodities having
global presence. The commodities traded include Rice, Wheat, Sugar,
Maize, Soya meal, Barley, Sorghum and Pulses in addition to Coal and
Sulphur among other things. The trade network of the company has
expanded to all corners of the world. The company has maintained long
and sustained relationships with its clients across the globe due to
its quality products and efficient services.
2 Segment reporting:
Segment reporting as per AS-17 is not applicable to the company as it
does not have any reportable segment.
3 Earning per share
Basic and diluted earnings per share are calculated by dividing the net
Profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
The Company has not issued any potential equity shares, accordingly,
basic, and diluted earning per share are the same.
4 Contingent liabilities and commitments (to the extent not provided
for)
Particulars Current year Previous year
Rs. Rs.
Contingent liabilities
(a) Guarantees to sale tax authorities 590000 590000
(b) Guarantees - Corporate Guarantee
for credit facility to subsidiary 2714261224 2543807619
(c) Letter of credit issued for purchase 166162500 -
(d) Other guarantees 91517984 143717504
(e) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005
raised by the Income Ta x Department is being contested by the Company
in appeal. No provision has been made for the liability in the accounts
under report. Other Ta x demand of Rs. 10.11 Lacs For Assessment Year
2008-2009 raised by Income Ta x Department is under rectification for
apparent error.
(f) The company has entered an arbitration suit against the Punjab
State Warehousing Corporation. The arbitration tribunal has issued its
award for Rs.890.25 lacs. However, both the parties have filed separate
applications in the court with requests for setting aside the award.
The case is still in progress and as such quantification of any
liability or recovery, if any, is not possible, hence no provision for
the same has been made. However, the company is fairly confident of its
position and expects to get a favorable judgment in the case.
5 Unhedged foreign currency exposure
The Company is in the business of export and import of commodities. The
net unhedged foreign currency exposure as on 31.03.2103 is USD 11.33
million equivalent INR 6153.34 lacs (31.03.2012 USD (-) 7.17 million
equivalent to INR (-) 3658.64 lacs)
6 Micro and small enterprises
Disclosure of Sundry Creditors under current Liabilities 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". Amounts due as on 31st March, 2013 to Micro,
Small and Medium Enterprises on account of principal amount together
with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).
7 Previous years figures has been regrouped / restated where ever
found necessary.
Mar 31, 2012
1 Corporate Information:
The Company, although only approx two decade old, is today a name to
reckon with in Trading of Agro/Energy Commodities globally. Emmsons
Trading basket includes Rice, Wheat, Wheat- flour, Sugar, Maize, Soya
meal, Rapeseed Meal and Pulses in addition to Coal and Sulphur among
other things. The strength of the company lies in the fact that it has
expanded its to all corners of the world. The company has maintained
long and sustained relationships with its clients across Far-East Asian
region, Australia, South America, Africa and the Middle East due to its
quality products and efficient services.
2 Share Capital
The authorized , issued subscribed and fully paid-up share capital
comprises of equity shares having a par value of Rs. 10 /- each.
3 Note on money received against share warrants:
During previous year ended on 31.03.2011 the company has received Rs.
2250000 as paid up money @ Rs. 2.50 per equity warrant on allotment of
900000 equity warrants of Rs. 10/- each issued at premium of Rs 110/-
each Convertible in to equity share of Rs. 10/- each. The warrant
holders were given option to exercise the right for conversion of
warrant into Equity Shares within 18 months from the date of the
allotment of warrants i.e. within 18 months from 30th August, 2010
(Date of allotment of warrants) by paying the rest 75% of the issue
price of warrants (i.e., Rs. 90/- per warrant). However one of the
allottees of equity warrant holding 50,000 warrants, has not exercised
his right for conversion of the warrants into shares within the time
stipulated, which lapsed on 29th February, 2012. Accordingly, as per
SEBI (ICDR) Regulation, 2009, the aforesaid warrants stand lapsed and
the consideration paid in respect of such warrants at the time of its
allotment was forfeited. warrant holder's holding 850000 equity
warrants exercised option of conversion of equity warrants in to equity
share capital.
(a) Packing Credit with Oriental Bank of Commerce-Repayable on
demand-Secured against hypothecation of Stocks and advances, equitable
mortgage of Properties and Personal guarantees of Directors
(b) Packing Credit with Indian Overseas Bank- Repayable on
demand-Secured against hypothecation of Stocks and advances, equitable
mortgage of Properties and Personal guarantees of Directors
(c) Packing Credit with Bank of Baroda-Repayable on demand-Secured
against hypothecation of Stocks, equitable mortgage of Properties and
Personal guarantees of Directors
(d) Packing Credit with Allahabad Bank-Repayable on demand-Secured
against hypothecation of current assets, equitable mortgage of
Properties and Personal guarantees of Directors
(e) Buyer's Credit through Oriental Bank of Commerce-Repayable on
demand-Secured against hypothecation charge over the goods, equitable
mortgage of Properties and Personal guarantees of Directors
(f) Buyer's Credit through Indian Overseas Bank-Repayable on
demand-Secured against hypothecation charge over the goods, equitable
mortgage of Properties and Personal guarantees of Directors
(g) Buyer's Credit through Bank of Baroda-Repayable on demand-Secured
against hypothecation charge over the goods, equitable mortgage of
Properties and Personal guarantees of Directors
(h) Buyer's Credit through Allahabad Bank-Repayable on demand-Secured
against hypothecation charge over the the goods, equitable mortgage of
Properties and Personal guarantees of Directors
Note on repayment terms and security of short term borrowings:
(a) HDFC Bank Car Loan A/c No 17259339-Repayble in 36 Monthly
EMI-Secured against hypothecation of Car
(b) Indian Overseas Bank Corporate loan A/c No 271000002-Repayble in 22
Quarterly Installments and Interest Payable Monthly-Secured against the
personal guarantees of Directors
(c) Kotak Mahindra Prime Car Ltd. Loan A/c No. CF6509815-Repayble in 36
Monthly EMI-Secured against hypothecation of Car
(d) Kotak Mahindra Prime Ltd. Car Loan A/c No CF6677652- Repayable in
36 Monthly EMI-Secured against hypothecation of Car
(e) Kotak Mahindra Prime Ltd. Car Loan A/c No CF7056360-Repayble in 36
Monthly EMI-Secured against hypothecation of Car
(f) Kotak Mahindra Prime Ltd. Car Loan A/c No CF7106212-Repayble in 36
Monthly EMI-Secured against hypothecation of Car
(g) Kotak Mahindra Prime Ltd. Car Loan A/c No CF7569170-Repayble in 36
Monthly EMI-Secured against hypothecation of Car
(h) Kotak Mahindra Prime Ltd. Car Loan A/c No CF5609590-Repayble in 36
Monthly EMI-Secured against hypothecation of Car
(i) Kotak Mahindra Prime Ltd. Car loan A/c No CF5609981-Repayble in 36
Monthly EMI-Secured against hypothecation of Car
(j) Volkswagen Finance Pvt Ltd. Car loan A/c No 20111000714-Repayble in
36 Monthly EMI-Secured against hypothecation of Car
(ii) Defined Benefit Plan:
The Company offers the gratuity and leave encashment employee benefit
schemes to its employees.
The following table sets out the funded status of the defined benefit
schemes and the amount recognized in the financial statements:
(ii-e) Actuarial Assumptions:
Demographic Assumptions:
Mortality: Published rates under Indian assured lives mortality
(1994-96) (modified) ultimate table.
Indian assured lives mortality (1994-96) (modified) ultimate table are
used of calculation as on 31.03.2012, 31.03.2011 and 31.03.2012
4 Segment reporting:
Segment reporting as per AS-17 is not applicable to the company as it
does not have any reportable segment.
5 Related party disclosure
As required by Accounting Standard-18, "Related Party Disclosures"
issued by the Institute of Chartered Accountants of India, relevant
information is provided here below:
(a) Related parties with whom transactions have taken place during the
year:
6 Earning per share
Basic and diluted earnings per share are calculated by dividing the net
Profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
The Company has not issued any potential equity shares, accordingly,
basic, and diluted earning per share are the same.
7 Contingent liabilities and commitments (to the extent not provided
for)
Particulars Current
year Previous
year
Contingent liabilities
(a) Guarantees to sale tax authorities 590000 590000
(b) Guarantees - Corporate Guarantee
for credit facility to subsidiary 2543807619 1525404000
(c) Letter of credit issued
for purchase - 742757000
(d) Other guarantees 143717504 352363000
(e) Other money for which the
Company is contingently liable - -
(f) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005
raised by the Income Tax Department is being contested by the Company
in appeal. No provision has been made for the liability in the accounts
under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year
2008-2009 raised by Income Tax Department is under rectification for
apparent error.
(g) The trade receivable includes an amounts of Rs. 43.19 lacs for
which the company had obtained a decree against State Bank of India and
Unialchem Fertilizer Limited. State Bank of India filed an appeal
against the decree in the Supreme court of India. The supreme court has
now remanded the case back to high court. The management is confident
of recovering the amount after the disposal of at the case and the
amount is considered good for recovery.
(h) The company has entered an arbitration suit against the Punjab
State Warehousing Corporation. The arbitration tribunal has issued its
award for Rs.890.25 lacs. However, both the parties have filed separate
applications in the court with requests for setting aside the award.
The case is still in progress and as such quantification of any
liability or recovery, if any, is not possible, hence no provision for
the same has been made. However, the company is fairly confident of its
position and expects to get a favorable judgment in the case.
(i) The Olympia Spinning & Weaving Mills Ltd. Pakistan had commenced
arbitration proceeding against Company for recovery of alleged claim on
account of non supply of cotton. The arbitration tribunal has issued an
award for USD 607852.00 (Equivalent Rs.271.04 Lacs) against the
company. Olympia has filed an application of execution of award in
Delhi High Court. The company has opposed the execution and the case is
still in progress.
(j) An arbitration award was passed against the company in its case
against Bunge (London) limited. However the parties have since reached
amicable agreement on the above arbitration and the matter is fully
settled .
Note 8 (iii-c) :
Emmsons Grains Limited issued 300000 equity shares @ USD 1/- each to
Emmsons International Limited on 23rd December, 2011.
9 Micro and small enterprises
Disclosure of Sundry Creditors under current Liabilities 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. Amounts due as on 31st March, 2012 to Micro,
Small and Medium Enterprises on account of principal amount together
with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).
10 These financial statements have been prepared in the format
prescribed by the Revised Schedule VI to the Companies Act, 1956.
Previous years figures have been recast / restated.
Mar 31, 2011
1. Previous year's figures have been regrouped, rearranged, reworked
and reclassified wherever necessary to make them comparable with
corresponding figures of currents year.
2. Figures have been rounded off to the nearest rupee. Figures in
bracket indicate negative balances.
3. Amount under the head "Partly Paid up Equity Warrants" amounting to
Rs. 27000000/- has been received as part payment for allotment of
900000 equity warrants of Rs. 10/- each at a premium of Rs. 110/-,
convertible into same number of equity share, to the promoter group on
preferential basis in accordance with in principle approval from Bombay
Stock Exchange. Balance consideration to be demanded at the time of
exercise of option by the warrants holder.
4. WEALTH TAX :
The provision of taxable wealth has been made as per the provisions of
the Wealth Tax Act, 1957.
5. INCOME TAX :
Provision for Income Ta x has been made as per the provisions of Income
Ta x Act, 1961.
6. Balances of Debtors, Creditors, Loans and advances are subject to
Confirmation. The debtors include an amount of Rs. 43.19 Lacs (Previous
year: Rs. 43.19 Lacs), for which the company had obtained a decree
against State Bank of India and Unialchem Fertilizer Limited. The
execution of Decree is in abeyance as the State bank of India has filed
an appeal in the Supreme Court of India .The management is confident of
recovering the amount after the disposal of at the appeal and the
amount is considered good for recovery.
7. A sum of Rs. 580.39 Lacs (Previous Year Rs. 580.39 lacs) paid by
the company to Food Corporation of India and others against purchases
of rice and wheat on account of arbitrary price increase by FCI in
violation of its contractual obligation with the company, has not been
treated as part of purchase cost for the concerned financial year and
the same is shown under Loans and advances. Company is taking all
remedies for recovery for said amount in accordance with legal opinion
obtained by the company.
8. SUITS FILED AGAINST THE COMPANY:
(I) The company has entered an arbitration suit against the Punjab
State Warehousing Corporation. The arbitration tribunal has issued its
award for Rs.890.25 lacs. However, both the parties have filed separate
applications in the court with requests for setting aside the award.
The case is still in progress and as such quantification of any
liability or recovery, if any, is not possible, hence no provision for
the same has been made. However, the company is fairly confident of its
position and expects to get a favorable judgment in the case.
(II) The Olympia Spinning & Weaving Mills Ltd. Pakistan had commenced
arbitration proceeding against Company for recovery of alleged claim on
account of non supply of cotton. The arbitration tribunal has issued an
award for USD 607852.00 (Equivalent Rs.271.04 Lacs) against the
company. Olympia has filed an application of execution of award in
Delhi High Court. The company has opposed the execution and the case is
still in progress and the company is fairly confident of its position
in the case, hence no provision for the same has been made. The company
expects to get a favorable decision in the case.
(III) In arbitration proceedings in London, an award for USD 8428725.96
(Equivalent Rs.3758.37 Lacs) had been passed against the company. The
arbitration proceedings were started by M/s Bunge (London) Limited in
respect of purchase contracts for Sugar. The company has been advised
by the lawyers that it has strong defence available, hence no provision
for the same has been made.
9. SEGMENT REPORTING :
Segment reporting as per AS-17 is not applicable to the company as it
does not have any reportable Segment.
10. Disclosure of Sundry Creditors under current Liabilities 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. Amounts due as on 31st March, 2011 to Micro,
Small and Medium Enterprises on account of principal amount together
with Interest, aggregate to Rs. Nil. (Previous Year: Rs. NIL).
11. Contingent Liabilities not
provided for : (Amount Rs. in Lacs)
a) Guarantees to sales tax authorities : Rs. 5.90 (Previous year
Rs.5.90)
b) Corporate Guarantees for Credit : Rs.15254.04 (Previous
facilities to subsidiary year 2893.50)
c) Letter of Credit issued for : Rs.7427.57 (Previous year
purchases 862.50)
d) Other Guarantees : Rs. 3523.63 (Previous
year Rs. 827.43)
e) The Entry Tax demands Rs. 11.43 lacs raised by the authorities have
been protested by the company and final determination is yet to be made
by the appellate authorities. The company has however made the payment
against these demands under protest and the same is included in the
list of Loans and advances. In the event case is finally decided
against the Company the said amount of Rs. 11.43 Lacs shall be required
to be charged as an expense to Profit & Loss account.
f) Tax Demand totaling Rs. 8.60 Lacs for Assessment year 2004-2005
raised by the Income Ta x Department is being contested by the Company
in appeal. No provision has been made for the liability in the accounts
under report. Other Tax demand of Rs. 10.11 Lacs For Assessment Year
2008-2009 raised by Income Tax Department is under rectification for
apparent error.
12. RELATED PARTIES DISCLOSURES:
As required by Accounting Standard-18, "Related Party Disclosures"
issued by the Institute of Chartered Accountants of India, relevant
information is provided here below: Related parties with whom
transactions have taken place during the year:
S. NAMES RELATIONSHIP
NO.
a) Mr. Anil Monga Key Managerial Personnel
b) Mr. Rajesh Monga Key Managerial Personnel
c) Mr. Shivaz Monga Key Managerial Personnel
d) Mr. Vijay Kumar Kakkar Key Managerial Personnel
e) Mr. Viresh Shankar Mathur Key Managerial Personnel
f) Mr. Mohd. Tariq Raza Key Managerial Personnel
g) Mr. Satish Chandra Gupta Key Managerial Personnel
h) Ms. Manya Kumar Key Managerial Personnel's
relative
i) M/s Emmsons S.A. Subsidiary (Control Exists)
J) M/s Emmsons Gulf DMCC Subsidiary (Control Exists)
Mar 31, 2010
1. Previous years figures have been regrouped, rearranged, reworked
and reclassified wherever necessary to make them comparable with
corresponding figures of current year .
2. Figures have been rounded off to the nearest rupee. Figures in
bracket indicate negative balances.
3. FORFEITER OF EQUITY WARRANTS :
During the Financial Year 2008-09, the company had allotted to the
promoters group on preferential basis 780000 Equity warrants at the
rate of Rs. 250/- per equity warrant convertible into 780000 Equity
Shares of Rs. 10/- each at a premium of Rs. 240/- per share against
payment of Rs. 25/- per warrant in terms of approval received from The
Bombay Stock Exchange Limited. For non receipt of balance amount
Company has forfeited all 780000 Equity Warrants during the year and
amount of Rs.19500000/- received alongwith application has been
transferred to Capital Reserve Account.
4. WEALTH TAX :
The provision of taxable wealth has been made as per the provisions of
the Wealth Tax Act, 1957.
5. INCOME TAX :
Provision for Income Tax has been made as per the provisions of Income
Tax Act, 1961.
6. Balances of Debtors, Creditors, Loans and advances are subject to
Confirmation. The debtors include an amount of Rs. 43.19 Lacs (Previous
year: Rs. 43.19 Lacs), for which the company had obtained a decree
against State Bank of India and Unialchem Fertilizer Limited. The
execution of Decree is in abeyance as the State bank of India has filed
an appeal in the Supreme Court of India The management is confident of
recovering the amount after the disposal of at the appeal and the
amount is considered good for recovery.
7. A sum of Rs. 580.39 Lacs (Previous Year Rs. 580.39 lacs) paid by
the company to Food Corporation of India and others against purchases
of rice and wheat on account of arbitrary price increase by FCI in
violation of its contractual obligation with the company, has not been
treated as part of purchase cost for the concerned financial year and
the same is shown under Loans and advances. Company is taking all
remedies for recovery for said amount in accordance with legal opinion
obtained by the company.
8. The Company has entered into agreement of purchase of semi
finished flat and has spent Rs. 48.75 lacs on construction and shown
under the head Capital work in progress. Future expenses to be incurred
on said flat are estimated at Rs. 25 lacs.
9. SUITS FILED AGAINST THE COMPANY :
(I) Legal suit filed by owner of vessel hired by the company which
received minor damage on transportation of goods has been finally
settled. A sum of Rs. 47.00 lacs was provided in earlier year and rest
of the amount has been charged to Profit & Loss Account.
(II) The company has entered an arbitration suit against the Punjab
State Warehousing Corporation. The arbitration tribunal has issued its
award. However, both the parties have filed separate applications in
the court with requests for setting aside the award. The case is still
in progress and as such quantification of any liability or recovery, if
any, is not possible, hence no provision for the same has been made.
However, the company is fairly confident of its position and expects to
get a favorable judgment in the case.
(III) The company has entered an arbitration suits against the Mawana
Sugar Ltd for not lifting of Sugar on account of Government ban on
sugar. Claims and counter claims have been filed by both the parties
before the arbitrators. The company expects to settle the dispute soon.
(IV) The Olympia Spinning & Weaving Mills Ltd. Pakistan has commenced
arbitration proceeding against Company for recovery of alleged claim on
account of non supply of cotton. The company has contested the claim
that the contract was cancelled as a result of default of Olympia. The
company has filed the appeal, the same is still in progress and as such
quantification of any liability or recovery, if any, is not possible,
hence no provision for the same has been made. However, the company is
fairly confident of its position in the case and expects to get a
favorable award in the case.
Computation of Net Profit u/s 198 read with Section 349 of the
Companies Act, 1956 for calculation of commission Payable to Directors
.
10. SEGMENT REPORTING :
Segment reporting as per AS-17 is not applicable to the company as it
does not have any reportable segment.
11. Contingent Liabilities not provided for : (Amounts Rs. In Lacs)
a) Guarantees to sales tax authorities : 5.90 (Previous year 5.90)
b) Corporate Guarantees for Credit
facilities to subsidiary : 2893.50(Previous year Nil
c) Letter Credit issued for purchases : 862.50 (Previous
year 21.23
d) Other Guarantees : 827.43 (Previous year
160.26)