Mar 31, 2018
B11 PROVISIONS
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
B12 Warranties
The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise- being typically six months to one year.
B13 CURRENT AND NON CURRENT CLASSIFICATION Current Asset:
An asset shall be classified as current when it satisfies any of the following criteria:
(a) it is expected to be realized in, or is intended for sale or consumption in, the companyâs normal operating cycle;
(b) it is held primarily for the purpose of being traded.
(c) It is expected to be realized within twelve months after the reporting date, or
(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
All other assets shall be classified as non-current.
Current Liabilities:
A liability shall be classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in the companyâs normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date: or
(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current.
B14 DEFERRED TAX & CURRENT TAX Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
The income tax expense or credit for the year is the tax payable on current yearâs taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
B15 EARNINGS PER SHARE (EPS)
Basic 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. For the purpose of calculating Diluted Earnings per Share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential Equity Shares.
C Cash flow statement
Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit/(loss) is adjusted for the effects of:
(a) transactions of a non-cash nature;
(b) any deferrals or accruals of past or future operating cash receipts or payments and,
(c) All other items of income or expense associated with investing or financing cash flows.
The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.
D FIRST TIME ADOPTION
The Company has prepared opening balance sheet as per Ind AS of April 1, 2016 (transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS required under IndAS and applying IndAS in measurement of recognized assets and liabilities. However, this principle is subject to certain exceptions and certain optional exemptions availed by the Company as detailed below:
a) The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after 01 April 2016 (transition date).
b) The Company has determined the classification of debt instruments in terms of whether they meet the amortized cost criteria or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.
c) The Company has opted to continue with the carrying value for all of its PPE as recognized in its previous GAAP financial as deemed cost at the transition date.
Mar 31, 2015
Not Available
Mar 31, 2014
1. CONTINGENT LIABILITIES
Details of Contingent Liabilities As at 31st March
2014 2013
Rupees Rupees
in Lacs in Lacs
a. Guarantee given by the company''s Bankers and
Counter guaranteed by the company Nil Nil
b. Claims against the company not acknowledged
as Debts Nil Nil
c. Service Tax demand under dispute Nil 83.43
d. Custom Duty payable in respect of goods
imported against Advance License pending
Export Obligations** Nil 967.00
e. Interest and penalties under Employees
PF & Misc Provisions Act, 1952 3.64 3.64
f. Claim by one of the erstwhile Director
as Salary 18.00 18.00
g. Income Tax demand under appeal*** 200.29 282.44
** During the previous year the company has been served with an
intimation by the DGFT for a claim pending in respect of goods imported
against Advance License pending Obligation amounting to Rs. 967.00
Lacs. The management has informed that the matter stands dissolved and
the claim stands withdrawn.
*** During the earlier years the company had been served with an order
u/s 271 (1) (c) & subsequent demand u/s 156 under the Income Tax Act,
1961 for the aforementioned periods; AY 2002-03 for Rs. 4,42,098/-, AY
2003-04 for Rs. 3,72,195/-, AY 2007-08 for Rs. 1,92,07,921/-. The
company has preferred an appeal with the Income tax appealte Tribunal
for AY 2002-03 and 2003-04 and appeal is pending with commissioner of
Income - Tax(Appeals) for AY 2007-08.
1. The Company has been declared out of the purview of the Sick
Company''s definition
During the year, the company has been declared out of the purview of
the Sick Companies definition as per BIFR Order No: 215/2004 dated
09/12/2013. Accordingly the Net worth of the company has been restored
and turned positive and also during the current and the previous year,
the company has reported substantial profits from operations.
2. Secured Loans
a. Loans from Financial Institutions assigned to the New Promoters are
secured by equitable mortgage of immovable assets (excluding Housing
Colony), hypothecation of all the company''s moveable assets, (except
Book Debts), both present & future, personal guarantees of the then
Managing Director and a charge upon the assets of the company as per
the Deeds of Assignment duly entered into by the company which exceed
over Rs. 6500.00 Lacs in favour of the Secured Lenders per se.
b. Other Secured Loans from M/s. Malvika Harbopharma (P) Ltd are
secured by a 1st charge upon all the Fixed Assets including the Housing
Colony.
c. Loans from M/s. Invent Assets Reconstruction Company Limited are
secured by a 2nd charge upon all the Fixed Assets.
M/s. Invent Assets Reconstruction Company Limited (IARCL) has initiated
recovery procedure under the provisions of the Securitization
&Reconstruction Of Financial Assets &Enforcement Of Security Interest
Act, 2002 wherein it has taken possession of the Residential Colony
located at Lote, Ratnagiri. The possession by IARCL has been in
consultation with the 1st charge holders M/s. Malvika Harbopharma
Private Limited who retain the say in all the settlement of dues of the
said loans.
d. Loans from Canara Bank is secured by a 2nd charge upon all the Fixed
Assets which is to the tune of approx 3.93 Crores including the
interest and by personal guarantee of the Director, Mr. Sanjay Bagrodia
3. The Company follows Accounting Standard (AS22) "Accounting for Taxes
on Income" as notified by Companies Accounting Standard Rules, 2006.
The Company has deferred tax liability with difference in depreciation
in block of fixed assets as per tax books and financial books. The
calculations of deferred tax liability is as under.
4. The balances reflected in the accounts of Sundry Debtors, Loans and
Advances, secured loans from financial institutions and bank and sundry
creditors are subject to confirmation/reconciliation and the
consequential adjustment, if any. As the company''s Account/facilities
with balance confirmation for the period thereafter from such lenders
under secured loan is not yet received.
5. There are no dues to enterprise as defined under clause (m) of
section 2 of the Micro, Small & Medium Enterprises Development Act,
2006 remaining outstanding for more than 45 days as at 31st March, 2014
which having been identified by the management and relied upon by the
auditors.
6. As the company''s business activities fall within a single segment
i.e. Chemicals, the disclosure requirement of Accounting Standard - 17
on Segment Reporting as issued by the Institute of Chartered
Accountants of India is not applicable. During the year the company has
undertaken trading and manufacturing of Chemical & Intermediates Goods,
which are within the above described segment.
7. Disclosure regarding parties and transactions as required by AS - 18
issued by the Institute of Chartered Accountants of India are as
under:-
A. NAME OF RELATED PARTY AND THEIR RELATIONSHIP
i) Associate Company
Nil
ii) Directors
Shri Nazirsaheb M. Sayyed
Shri. Mohit Kaushik
Shri Sunil Sawant
iii) Relatives of Key Managerial Personnel
Nil
B. TRANSACTIONS WITH RELATED PARTY:
The company has not entered into any transactions with related party
within the meaning of Accounting Standard 18 "Related Parties
Disclosure".
8. Test as required under Accounting Standard - 28 relating to
Impairment of Assets have been carried out. The Company assessed at
the Balance Sheet date, the value of the Fixed Assets in order to
comply with the provisions of A.S - 28. The Company is of the opinion
that the assets of the Company will generate adequate benefits in
future. The Company has arrived to this opinion considering the present
condition of the assets and its withstanding capacity even for
increased capacity by four times to that of present capacity. The
Company has also considered net cash flow before tax and also present
value of future cash flow. The future cash flows were taken into
account based on the budgeted turnovers fixed for future years in
recent budget meeting.
In view of expected continuous profits the Company has felt that the
"Value in use" of the Fixed Assets is more than carrying cost of the
fixed assets, hence no provision for impairment of Loss of Fixed Assets
has been made.
9. The Sales Tax incentives Scheme 1993 of SICOM provides that the unit
should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits of Rs. 264.97 Lacs (PY Rs. 264.97 Lacs) availed till
30/09/2003 by the company is subject to compliance of the terms and
conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability w.e.f. 01/07/2003. Accordingly the sales
tax liability of Rs. 31.20 Lacs (PY Rs. 31.20 Lacs) shall be repayable
after Ten years in five equal annual installments.
10. The figures of the previous years have been regrouped/rearranged
wherever necessary and the figures are rounded off to the nearest
rupee.
Mar 31, 2013
1. CONTINGENT LIABLILITIES
As at 31st March
Details of Contingent Liabilities 2013 2012
Rupees in Lacs Rupees in Lacs
a. Guarantee given by the company''s
Bankers and Counter guaranteed by
the company Nil Nil
b. Claims against the company not
acknowledged as Debts* Nil Nil
c. Service Tax demand under dispute** 83.43 83.43
d. Custom Duty payable in respect
of goods imported against Advance
License pending Export 967.00 58.65
Obligations***
e. Interest and penalties under
Employees PF & Misc Provisions
Act, 1952 '' 3.64 3.64
f. Claim by one of the Erstwhile
Directors as Salary**** 18.00 18.00
g. Income Tax demand under appeal***** 282.44 282.44
* A claim appealed against by the company is pending in the High Court
in respect of ECB Dues. In the absence of the detailed records and
evidences, we are unable to provide a view on the quantum and volume of
the Contingent Liabilities of the company, however in the opinion of
the management, the same does not qualify for reporting hereunder.
** Against the order passed by the CESTAT in favor of the company, the
revenue has preferred an Appeal before the High court challenging the
said order. '' -
*** During the year the company has been served with an intimation by
the DGFT for a claim pending in respect of goods imported against
Advance License pending Obligation amounting to Rs. 967.00 Lacs. The
company is in the process of quantifying and assessing its obligations
with regards to the same.
**** The erstwhile directors claim remains pending disposal with the
BIFR.
***** During the earlier years the company had been served with an
order u/s 271 (1) (c) & subsequent demand u/s 156 under the Income Tax
Act, 1961 for the aforementioned periods; AY 2002-03 for Rs.
48,54,045/-, AY
2003-04 for Rs. 9,09,236/-, AY 2004-05 for Rs. 32,73,733/-, AY 2007-08
for Rs. 1,92,07,921 /-. The company has preferred an appeal with the
Commissioner of Income Tax (Appeals) challenging the above penal
levies.
1. Absence of Detailed Books of Accounts and documents prior to
January 2008
As at 31st March, 2004, the company''s Net Worth was completely eroded
and it had become a sick industrial unit within the meaning of clause
(o) of sub section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, (SICA) 1985. A reference was made to the
Board for Industrial and Financial Reconstruction (BIFR) in 2004 and
the company has been declared sick on 23,a December, 2005. A proposal
for revival of the company along with the settlement of the dues of the
creditors and change in management was duly made to the Board of
Industrial & Financial Restructuring. The Honourable bench of BIFR has
in its meeting held on 26"'' March, 2007 sanctioned a Rehabilitation
Scheme. The BIFR has issued a final order (SS-07) dated 17"''August,
2007.
However the earlier management had withheld the statutory records on
the company and refused to hand over the administrative office of the
company situated at 7, NaginMahal, Church gate, Mumbai which was the
administrative office of the company since 1992 or earlier and existed
as the office when the reference was made to the BIFR under Form A. Due
to the above circumstances, the records prior to January 2008 could not
be acquired by the management and the management remains unable to
ascertain whether any valuable assets have been lost by the company,
exception being the factory premises and the staff colony at Lote, the
control and possession thereof being retained by the current
management. The Church gate office premises has been illegally held back
by the old managers and the company has sought legal recourse and has
made an application to the BIFR for acquiring the rightful possession
and claim to the above premises. The appeal hearing remains awaited as
on date.
With respect to its dues, Canara Bank has refuted the jurisdiction of
the BIFR and has disputed the awarded rebate in claims as sanctioned by
the BIFR in its order dated 17th August 2007. The company has preferred
a plea with the High Court of Mumbai for the same and the above
disputed amounts have not been considered by the management in the
preparation of the accounts.
2. Secured Loans
a. Loans from Financial Institutions assigned to the New Promoters are
secured by equitable mortgage of immovable assets (excluding Housing
Colony), hypothecation of all the company''s moveable assets, (except
Book Debts), both present & future, personal guarantees of the then
Managing Director and a charge upon the assets of the company as per
the Deeds of Assignment duly entered into by the company which exceed
over Rs. 6500.00 Lacs in favour of the Secured Lenders perse. ''
b. Cash Credits including FCNR (B) Loans, Export Packing Credit,
Letter of Credit, Guarantee Facilities and Working Capital Term Loans
are secured by hypothecation of stocks, book debts and personal
guarantees of the then Managing Director, all ranking pari-passu with
each other. Substantial proportion of the loans have been paid off by
the company.
B. TRANSACTIONS WITH RELATED PARTY:
The company has not entered into any transactions with related party
within the meaning of According Standard 18 "Related Parties
Disclosure".
2. Test as required under Accounting Standard - 28 relating to
Impairment of Assets have been carried out, however the values of the
Fixed Assets have been revalued and the carrying costs of the Fixed
Assets have been duly reduced as per the schedule of Restructuring as
sanctioned by the Honourable Bench of BiFR during the earlier years.
The values so arrived are equivalent to the recoverable values of the
assets in accordance with the AccountingStandafdÂ28-reteting to
Impairment of Assets(Refer Note: B-1,2 & 3of Note 24)
3. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during th-3 currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits of Rs. 264.97 Lacs (PY Rs. 264.97 Lacs) availed till
30/09/2003 by the company is subject to compliance of the terms and
conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability w.e.f. 01/07/2003. Accordingly the sales
tax liability of Rs. 31.20 Lacs (PY Rs. 31.20 Lacs) shall be repayable
after Ten years in five equal annual installments.
4. The figures of the previous years have been regrouped/rearranged
wherever necessary and the figures are rounded off to the nearest rupee
Mar 31, 2012
1) CONTINGENT LIABILITIES
As at 31st March
Details of Contingent Liabilities 2012 2011
Ruppes Ruppes
a. Guarantee given by the company's
Bankers and
Counter guaranteed by the company Nil Nil
b. Claims against the company not
acknowledged as Nil Nil
Debts*
c. Service Tax demand under dispute** 83'43'444 83'43'444
d. Custom Duty payable in respect of
goods imported
against Advance License
pending Export Obligations 58'65'191 58'65'191
e. Interest and penalties under
Employees PF & Misc
Provisions Act' 1952 3'64'405 3'64'405
f. Claim by one of the Erstwhile
Directors as Salary*** 18'00'000 18'00'000
g. Income Tax demand under appeal**** 2'82'44'935 Nil
* A claim appealed against by the company is pending in the High Court
in respect of ECB Dues as detailed in Note 4 above. In the absence of
the detailed records and evidences' we are unable to provide a view on
the quantum and volume of the Contingent Liabilities of the company'
however in the opinion of the management' the same does not qualify for
reporting hereunder.
** Against the order passed by the Commissioner of Central Excise
(Appeals) in favour of the company' the revenue has gone into Appeal
before the CESTAT challenging the said order and for restoring the
order of the Additional Commissioner' Central Excise.
*** The erstwhile directors claim remains pending disposal with the
BIFR.
**** During the year the company has been served with an order u/s 271
(1) (c) & subsequent demand u/s 156 under the Income Tax Act' 1961 for
the aforementioned periods; AY 2002-03 for Rs. 48'54'045/-' AY 2003-04
for Rs. 9'09'236/-' AY 2004-05 for Rs. 32'73'733/-' AY 2007-08 for Rs.
1'92'07'921/-. The company has preferred an appeal with the
Commissioner of Income Tax (Appeals) challenging the above penal
levies.
1. Absence of Detailed Books of Accounts and documents prior to
January 2008
As at 31 st March' 2004' the company's Net Worth was completely eroded
and it had become a sick industrial unit within the meaning of clause
(o) of sub section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act' (SICA) 1985. A reference was made to the
Board for Industrial and Financial Reconstruction (BIFR) in 2004 and
the company has been declared sick on 23rd December' 2005. A proposal
for revival of the company along with the settlement of the dues of the
creditors and change in management was duly made to the Board of
Industrial & Financial Restructuring. The Honourable bench of BIFR has
in its meeting held on 26th March' 2007 sanctioned a Rehabilitation
Scheme. The BIFR has issued a final order (SS-07) dated 17th August'
2007.
However the earlier management had withheld the statutory records on
the company and refused to hand over the administrative office of the
company situated at 7' Nagin Mahal' Churchgate' Mumbai which was the
administrative office of the company since 1992 or earlier and existed
as the office when the reference was made to the BIFR under Form A. Due
to the above circumstances' the records prior to January 2008 could not
be acquired by the management and the management remains unable to
ascertain whether any valuable assets have been lost by the company
exception being the factory premises and the staff colony at Lote' the
control and possession thereof being retained by the current
management. The Churchgate office premises has been illegally held back
by the old managers and the company has sought legal recourse and has
made an application to the BIFR for acquiring the rightful possession
and claim to the above premises. The appeal hearing remains awaited as
on date.
With respect to its dues' Canara Bank has refuted the jurisdiction of
the BIFR and has disputed the awarded rebate in claims as sanctioned by
the BIFR in its order dated 17th August 2007. The company has preferred
a plea with the High Court of Mumbai for the same and the above
disputed amounts have not been considered by the management in the
preparation of the accounts.
2. Secured Loans
a. Loans from Financial Institutions assigned to the New Promoters are
secured by equitable mortgage of immovable assets (excluding Housing
Colony)' hypothecation of all the company's moveable assets' (except
Book Debts)' both present & future' personal guarantees of the then
Managing Director and a charge upon the assets of the company as per
the Deeds of Assignment duly entered into by the company which exceed
over Rs. 6500.00 Lacs in favourof the Secured Lenders perse.
b. Cash Credits including FCNR (B) Loans' Export Packing Credit'
Letter of Credit' Guarantee Facilities and Working Capital Term Loans
are secured by hypothecation of stocks' book debts and personal
guarantees of the then Managing Director' all ranking pari-passu with
each other. Substantial proportion of the loan has been paid off by the
company during the year.
c. Other Secured Loans from M/s. Malvika Harbopharma (P) Ltd are
secured by a 1 st charge upon all the Fixed Assets including the
Housing Colony which is to the tune of approx 200 Crores including the
interest & revocation of OTS amount' if any and by personal guarantee
of the Director' Mr. Sanjay Bagrodia.
d. Loans from M/s. Invent Assets Reconstruction Company Limited is
secured by a 2nd charge upon all the Fixed Assets which is to the tune
of approx 10 Crores including the interest and by personal guarantee of
the Director' Mr. Sanjay Bagrodia
e. Loans from Canara Bank is secured by a 2nd charge upon all the
Fixed Assets which is to the tune of approx 3.93 Crores including the
interest and by personal guarantee of the Director' Mr. Sanjay Bagrodia
3. Unsecured Loans
The company has taken External Commercial Borrowings (ECB) of
Rs.18'03'24'250/-. However under the scheme of restructuring as
sanctioned by the honourable bench of BIFR' the total outstanding
amount of the ECB was revised and a rebate of 95% on the outstandings
totaling to Rs. 17'13'08'250/- has been availed by the company thereby
reducing the ECB dues to Rs. 90'16'000/-
The ECB Lenders had approached the Appellate Authority for Industrial &
Financial Reconstruction (AAIFR) and an order was duly passed by the
AAIFR dated 29/04/2008 directing the company to reduce the waiver from
95% to 80% of the outstanding amounts thereby reducing the rebates by
and the dues enhancing by Rs. 2'70'48'650/-. The company has preferred
an appeal with the High Court against the said order with the
contention that the said sums due payable to the ECB to be borne
exclusively by the erstwhile management on its own account. The
management has not provided for the above reduction in the waivers
awarded by the AAIFR in respect of the ECB Dues in the preparation of
the Financial Statements and the outstanding in respect of ECB remains
understated by the same to the tune of Rs. 270.48 Lacs. In the absence
of the relevant supporting documents and evidences' it is not possible
for us to verify the said dues payable to the ECB by the company.
4. As the company's plant remains under closure for most of the year'
physical verification of inventory and Fixed assets have not been
undertaken.
5. The company has Deferred Tax Liabilities (DTL) on account of
Unabsorbed Depreciation and Brought Forward Business Losses and amount
claimable u/s 43B of the Income Tax Act' 1961. In view of the
management' the above DTL would materialized in the year in which the
company realized taxable profits and no tax would be due on account of
setoff of the DTL. Hence no provisions have been made for additional
DTL during the year.
6. The balances reflected in the accounts of Sundry Debtors' Loans and
Advances' secured loans from financial institutions and bank and sundry
creditors are subject to confirmation/reconciliation and the
consequential adjustment' if any. As the company's Account/facilities
with balance confirmation for the period thereafter from such lenders
undersecured loan is not yet received.
7. There are no dues to enterprise as defined under clause (m) of
section 2 of the Micro' Small & Medium Enterprises Development Act'
2006 remaining outstanding for more than 45 days as at 31st March' 2012
which having been identified by the management and relied upon by the
auditors.
8. As the company's business activities fall within a single segment
ie. Chemicals' the disclosure requirement of Accounting Standard -17 on
Segment Reporting as issued by the Institute of Chartered Accountants
of India is not applicable. During the year the company has undertaken
trading and manufacturing of Chemical & Intermediates Goods' which are
within the above described segment.
9. Disclosure regarding parties and transactions as required by AS -
18 issued by the Institute of Chartered Accountants of India are as
under: -
A. NAME OF RELATED PARTY AND THEIR RELATIONSHIP i). Associate Company
Nil ii). Directors
Shri Nazirsaheb M.Sayyed
ShriAjaySharma
Shri Sunil Sawant iii). Relatives of Key Managerial Personnel
Nil
B. TRANSACTIONS WITH RELATED PARTY:
The company has not entered into any transactions with related party
within the meaning of Accounting Standard 18 "Related Parties
Disclosure".
10. Test as required under Accounting Standard - 28 relating to
Impairment of Assets have been carried out' however the values of the
Fixed Assets have been revalued and the carrying costs of the Fixed
Assets have been duly reduced as per the schedule of Restructuring as
sanctioned by the Honourable Bench of BIFR during the earlier years.
The values so arrived are equivalent to the recoverable values of the
assets in accordance with the Accounting Standard - 28 relating to
Impairment of Assets (Refer Note: B-1' 2 & 3of Note24)
11. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under' whichever longer. Accordingly' the Sales Tax
benefits of Rs. 264.97 Lacs (PY Rs. 264.97 Lacs) availed till
30/09/2003 by the company is subject to compliance of the terms and
conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability w.e.f. 01/07/2003. Accordingly the sales
tax liability of Rs. 31.20 Lacs (PY Rs. 31.20 Lacs) shall be repayable
after Ten years in five equal annual installments.
The Management has not made any provision for the same in the accounts
during the year under consideration. In our opinion the short term
liabilities and the losses for the year remain understated by the
amount of such pro-rata installment due on account of the repayment of
the Deferred Sales Tax benefit availed by the company in the earlier
years.
12. The figures of the previous years have been regrouped/rearranged
wherever necessary and the figures are rounded off to the nearest rupee
Mar 31, 2011
1. Absence of Detailed Books of Accounts and documents prior to
January 2008 As at 31st March, 2004, the company's Net Worth was
completely eroded and it had become a sick industrial unit within the
meaning of clause (o) of sub section (1) of Section 3 of the Sick
Industrial Companies (Special Provisions) Act, (SICA) 1985. A reference
was made to the Board for Industrial and Financial Reconstruction
(BIFR) in 2004 and the company has been declared sick on 23rd December,
2005. A proposal for revival of the company along with the settlement
of the dues of the creditors and change the management was duly made to
the Board of Industrial & Financial Restructuring. The Honourable bench
of BIFR has in its meeting held on 26th March, 2007 sanctioned a
Rehabilitation Scheme. The BIFR has issued a final order (SS-07)
dated 17th August, 2007.
However the earlier management had withheld the statutory records on
the company and refused to hand over the administrative office of the
company situated at 7, Nagin Mahal, Churchgate, Mumbai which was the
administrative office of the company since 1992 or earlier and existed
as the office when the reference was made to the BIFR under Form A. Due
to the above circumstances, the records prior to January 2008 could not
be acquired by the management and the management remains unable to
ascertain whether any valuable assets have been lost by the company
exception being the factory premises and the staff colony at Lote, the
control and possession thereof being retained by the current
management. The Churchgate office premises has been illegally held back
by the old managers and the company has sought legal recourse and |has
made an application to the BIFR for acquiring the rightful possession
and claim to the above premises. The appeal hearing remains awaited as
on date.
Canara Bank has refuted the jurisdiction of the BIFR and have disputed
the awarded rebate in claims as sanctioned by the BIFR in its order
dated 77th August 2007. The company has preferred a plea with the High
Court of Mumbai for the same and the above disputed amounts have not
been considered by the management in the preparation of the accounts..
2. Secured Loans
a. Loans from Financial Institutions assigned to the New Promoters are
secured by equitable mortgage of immovable assets (excluding Housing
"Colony), hypothecation of all the company's moveable assets,
(except Book Debts), both present & future, personal guarantees of
the then Managing Director and a charge upon the assets of the company
as per the Deeds of Assignment duly entered into by the company which
exceed over Rs. 6500.00 Lacs in favor of the Secured Lenders per se.
b. Cash Credits including FCNR (B) Loans, Export Packing Credit,
Letter of Credit, Guarantee Facilities and Working Capital Term Loans
are secured by hypothecation of stocks, book debts and personal
guarantees of the then Managing Director, all ranking pari-passu with
each other. Substantial proportion of the loan has been paid off by the
company during the year.
c. Other Secured Loans from M/s. Malvika Harbopharma (P) Ltd and M/s.
Sheri's Intermediates Limited are secured by a 1st charge upon all the
Fixed Assets including the Housing Colony which is to the tune of
approx 200 Crores including the interest & revocation of OTS amount, if
any and by personal guarantee of the Director, Mr. Sanjay Bagrodia.
d. Loans from M/s. Invent Assets Reconstruction Company Limited is
secured by a 2nd charge upon all the Fixed Assets which is to the tune
of approx 10 Crores including the interest and by personal guarantee of
the Director, Mr. Sanjay Bagrodia
e. Loans from Canara Bank is secured by a 2nd charge upon all the
Fixed Assets which is to the tune of approx 3.93 Crores including the
interest and by personal guarantee of the Director, Mr. Sanjay Bagrodia
3. Unsecured Loans
The company has taken External Commercial Borrowings (ECB) of Rs.
18,03,24,250/-. However under the scheme of restructuring as sanctioned
by the honourable bench of BIFR, the total outstanding amount of the
ECB was revised and a rebate of 95% on the outstanding totaling to Rs.
17,13,08,250/- has been availed by the company thereby reducing the ECB
dues to Rs. 90,16,000/-
The ECB Lenders had approached the Appellate Authority for Industrial &
Financial Reconstruction (AAIFR) and an order was duly passed by the
AAIFR dated 29/04/2008 directing the company to reduce the waiver from
95% to 80% of the outstanding amounts thereby reducing the rebates by
and the dues enhancing by Rs. 2,70,48,650/-. The company has preferred
an appeal with the High Court against the said order with the
contention that the said sums due payable to the ECB to be borne
exclusively by the erstwhile management on its own account. The
management has not provided for the above reduction in the waivers
awarded by the AAIFR in respect of the ECB Dues in the preparation of
the Financial Statements and the outstanding in respect of ECB remains
understated by the same to the tune of Rs. 270.48 Lacs. In the absence
of the relevant supporting documents and evidences, it is not possible
for us to verify the said dues payable to the ECB by the company.
4. Contingent Liabilities
As at 31st March
2011 2010
Rupees Rupees .
a. Guarantee given by the
company's Bankers and
Counter guaranteed by the company Nil Nil
b. Claims against the company not
acknowledged as Nil Nil
Debts*
c. Service Tax demand under
dispute** 83,43,444 83,43,444
d. Custom Duty payable in
respect of goods imported
against Advance License pending
Export Obligations 58,65,191 58,65,191
e. Interest and penalties
under Employees PF& Misc
Provisions Act,1952 3,64,405 3,64,405
f. Claim by one old director for
his salary 18,00,000 18,00,000
* A claim appealed against by the company is pending in the High Court
in respect of ECB Dues as detailed in Note 4 above. In the absence of
the detailed records and evidences, we are unable to provide a view on
the quantum and volume of the Contingent Liabilities of the company,
however in the opinion of the management, the same does not qualify for
reporting hereunder.
"Against the order passed by the Commissioner of Central Excise
(Appeals) in favor of the company, the revenue has gone into Appeal
before the CESTAT challenging the said order and for restoring the
order of the Additional Commissioner, Central Excise.
The erstwhile directors claim remains pending disposal with the BIFR.
5. As the company's plant remains under closure for most of the year,
physical verification of inventory and Fixed assets have not been done.
6. The company has Deferred Tax Liabilities (DTL) on account of
Unabsorbed Depreciation and Brought Forward Business Losses and amount
claimable u/s 43B of the Income Tax Act, 1961. In view of the
management, the above DTL would materialized in the year in which the
company realized taxable profits and no tax would be due on account of
setoff of the DTL. Hence no provisions have been made for additional
DTL during the year.
7. The balances reflected in the accounts of Sundry Debtors, Loans and
Advances, secured loans from financial institutions and bank and sundry
creditors are subject to confirmation/reconciliation and the
consequential adjustment, if any. As the company's Account/facilities
with balance confirmation for the period thereafter from such lenders
under secured loan is not yet received.
8. As the company's business activities fall within a single segment
ie. Chemicals, the disclosure requirement of Accounting Standard -17 on
Segment Reporting as issued by the Institute of Chartered Accountants
of India is not applicable. During the year the company has undertaken
trading and manufacturing of Chemical & Intermediates Goods, which are
within the above described segment.
9. Disclosure regarding parties and transactions as required by AS -
18 issued by the Institute of Chartered Accountants of India are as
under:-
B. TRANSACTIONS WITH RELATED PARTY:
The company has not entered into any transactions with related party
within the meaning of Accounting Standard 18 "Related Parties
Disclosure".
10. Test as required under Accounting Standard - 28 relating to
Impairment of Assets have been carried out, however the values of the
Fixed Assets have been revalued and the carrying costs of the Fixed
Assets have been duly reduced as per the schedule of Restructuring as
sanctioned by the Honourable Bench of BIFR during the earlier year. The
values so arrived are equivalent to the recoverable values of the
assets in accordance with the Accounting Standard - 28 relating to
impairment of Assets (Refer Note: B-1 & 2 of Schedule Q)
10. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits of Rs.264.97 Lacs (PY Rs.264.97 Lacs) availed till
30/09/2003 by the company is subject to compliance of the terms and
conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability w.e.f. 01/07/2003. Accordingly the sales
tax liability of Rs.31.20 Lacs (PY Rs.31.20 Lacs) shall be repayable
after Ten years in five equal annual installments.
11. The Company does not have a full time secretary as required under
section 383A of the Companies Act, 1956.
12. The figures of the previous years have been regrouped/rearranged
wherever necessary and the figures are rounded off to the nearest rupeeII
Note : 1. A member entitled to attend and vote at the meeting is
entitled to appoint a proxy and vote instead of himself.
2. A proxy need not be a member.
3. This proxy form duly completed should be deposited at the
Registered Office of the Company not less than 48 (Forty Eight) hours
before the Commencement of the meeting.
Mar 31, 2010
1. Absence of Detailed Books of Accounts and documents prior to
January 2008
As at 31st March, 2004, the companys Net Worth was completely eroded
and it had become a sick industrial unit within the meaning of clause
(o) of sub section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, (SICA) 1985. A reference was made to the
Board for Industrial and Financial Reconstruction (BIFR) in 2004 and
the company has been declared sick on 23rd December, 2005. A proposal
for revival of the company along with the settlement of the dues of the
creditors and change in management was duly made to the Board of
Industrial & Financial Restructuring. The Honourable bench of BIFR has
in its meeting held on 26* March, 2007 sanctioned a Rehabilitation
Scheme. The BIFR has issued a final order (SS-07) -dated 17th August,
2007.
However the Old management withheld the old statutory records of the
Company and refused to hand over the administrative office of the
Company situated at 7, Nagin Mahal, Churchgate, Mumbai which was the
office of the Company since 1992 or earlier and existed as the office
whne reference was made to the BIFR under Form A. Due to this old
records prior to Januray 2008 could not be got and the Company does not
know whether valuable assets are lost or not except the factory
premises and the Colony which is under the control of the Company. The
old management continues to sit in the old office and refuse to hand
over the same to the Company. The Company has made several appeals to
the BIFR and is trying to get the possession of the said office. The
outcome of the exercise is awaited.
2. Secured Loans
a. Loans from Financial Institutions having first charge over the
assets at Lote are assigned to the New Promoters Companies and are
secured by equitable mortgage of immovable assets, hypothecation of all
the companys moveable assets, (except Book Debts), both present &
future, personal guarantees of the then Managing Director and a charge
upon the assets of the company as per the Deeds of Assignment duly
entered into by the company. Thefirt charges exceed over Rs. 6500.00
Lacs in favour of the Secured Lenders per se.
b. Some creditor having second charge over the assets have refuted the
jurisdiction of the BIFR and have
disputed the awarded mbatemdaims as sancttoned by the BIFR in Hs order
dated 17th August 2007. The above disputed amounts have not been
considered by the management in the preparation of the accounts The
case is pending in the High Court of Mumbai.
c. Cash Credits including FCNR (B) Loans, Export Packing Credit, Letter
of Credit. GuaranteeFacifities and Working Capital Term Loans are
secured by hypothecation of stocks, book debts and personal guarantees
of the then Managing Director, all ranking pari-passu with each other.
Substantial proportion the loan has been paid off by the company
duiring the year.
3. Unsecured Loans
The company has taken External Commercial Borrowings (ECB) of Rs.
18,03,24,250/-. However under the scheme of restructuring as sanctioned
by the honourable bench of BIFR, the total outstanding amount of the
ECB was revised and a rebate of 95% on the outstandings totaling to Rs.
17,13,08,250/- has been availed by the company thereby reducing the ECB
dues to Rs. 90,16,000/-
The ECB Lenders had approached the Appellate Authority for Industrial &
Financial Reconstruction (AAIFR) and an order was duly passed by the
AAIFR dated 29AW2008 directing the company to reduce the waiver from
95% to 80% of the outstanding amounts thereby reducing the rebates by
and the dues enhancing by Rs. 2,70,48,650/-. The company has
preferredan appeal with the High Court against the said orderwiththe
contention that the said sums due payable to the ECB to be borne
exclusively by the erstwhile management on its own account The
management has not provided for the above reduction in the waivers
awarded by the AIFR in respect of the ECB Dues in the preparation of
the Financial Statements and the outstanding in nsspect of ECB remains
understated by the same to the tune of Rs. 270.48 Lacx in case the
liability becomes that of the Company. In the absence of the relevant
supporting documents and evidences. His not possible for us to venty
the said dues payable to the ECB by the company.
4. Contingeht Libilities As at 31st Mareh
2010 2009
Rupees Rupees
a.Guarantee given by the companys Bankers and
Counter guaranteed by the company Nil Nil
b. Claims against the company not acknowledged
as Nil Nil
Debts*
c. ServiceTax demand under dispute** 83,43,444 83,43,444
d. Custom Duty payable in respect of
goods imported -
against Advance License pending Export
Obligations 58,65,191 58,65,191
e. Interest and penalties under Employees
PF&Misc
Provisions Act, 1952 3,64.405 3,64,405
f Claim by one old directorfor his
salary 18,00,000 18,00,000
* A claim appealed against by the company is pending in the High Court
in respect of ECB Dues as detailed in Note 4 above. In the absence of
the detailed records and evidences, we are unable to provide a view on
the quantum and volume of the Contingent Liabilities of the company,
however in the opinion of the management, the same does not qualify for
reporting hereunder. The Old Directors case is pending before the
BIFR.
** Against the order passed by the Commissioner of Central Excise
(Appeals) in favour of the company, the revenue has gone into Appeal
before the CESTAT challenging the said order and for restoring the
order of the Additional Commissioner, Central Excise.
5. The balances reflected in the accounts of Sundry Debtors, Loans and
Advances, secured loans from financial institutions and bank and sundry
creditors are subject to confirmation/reconciliation and the
consequential adjustment, if any. As the companys Account/facilities
with balance confirmation for the period thereafter from such lenders
under secured loan is not yet received.
6. The company has deferred Tax Liabilities (DTL) on account of
Depreciation. The company has also Deferred Tax Liabilities (DTL) on
account of Unabsorbed Depreciation and Brought Forward Losses and
amounts claimable u/s 436 of the Income Tax Act, 1961. In the view of
the company in the year in which the DTL would materialize, no tax
would actuary become payable on account of setoff. Hence, no provision
has been made for DTL
7. As the companys business activities fall with a single segment ie
Chemicals, the disclosure reqeirement of Accounting Standard-17 on
Segmeant Reporting as issued by the Institute of Vhatered Accountants
of India is not apolicable. During the year the company has undertaken
trading and manufacturing of Chemical & Intermediates Goods, which are
within the above described segment.
8. Disclosure regarding parties and transactions as required by AS -18
issued by the Institute of Chartered Accountants of India are as under-
A. NAME OF RELATED PARTY AND THEIR RELATIONSHIP
i). Associate Company
Nil
ii). Directors
Shri ShankanalB. Shanma
Shri Ramgopal S. Nana
Shri Rajkumar Sharma
iii). Relatives of Key Managerial Personnel
Nil
B. TRANSACTIONS WITH RELATED PARTY:
The company has not entered into any transactions with related party
within the meaning of Accounting Standard 18 "Related Parties
Disclosure.
9 Test as required under Accounting Standard -28 relating to Impairment
of Assets have been carried out, however Hie values of the Fixed Assets
have been revaluedand the carrying costs of the Fixed Assets have been
duly reduced as per the schedule of Restructuring as sanctioned by the
HonouraWe^Bench of BIFR during the earlier year. The values so arrived
are equivalent to the recoverable values of the assets in * accordance
with the Accounting Standard - 28 relating to Impairment of Assets
(Refer Note: B-1,4 2 or* ScheduteQ)
10. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits of Rs. 264.97 Lacs (PY Rs. 264.97 Lacs) availed till
30/09/2003 by the company is subject to compliance of theterms and
conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability w.e.f. 01/07/2003. Accordingly the sales
tax liability of Rs. 31.20 Lacs (PY Rs. 31.20 Lacs) shall be repayable
after Ten years in five equal annual instalments.
11. The Company does not have a full time secretary as required under
section 383A of the Companies Act, 1956.
12. Balance Sheet abstract and Companys General Business Profile as
required by Schedule - VI (Part IV) is annexed here with
13. The figures of the previous years have been regrouped/rearranged
wherever necessary and the figures are rounded off to the nearest rupee
Mar 31, 2009
1. Absence of Detailed Books of Accounts and documents prior to
January 2008
As at 31st March, 2004, the companys Net Worth was completely eroded
and it had become a sick industrial unit within the meaning of clause
(o) of sub section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, (SICA) 1985. A reference was made to the
Board for Industrial and Financial Reconstruction (BIFR) in 2004 and
the company has been declared sick on 23rd December, 2005. A proposal
for revival of the company along with the settlement of the dues of the
creditors and change in management was duly made to the Board of
Industrial & Financial Restructuring. The Honourable bench of BIFR has
in its meeting held on 26" March, 2007 sanctioned a Rehabilitation
Scheme. The BIFR has issued a final order (SS-07) dated 17* August,
2007.
However during the year, no proper takeover of accounts or operations
of the company could be effected upon and as per the managements
explanations due to sabotage and personnel irresponsibility and menace
the books of accounts for the periods prior to January 2008 have been
lost. Hence detailed examination of the accounts and the records could
not be undertaken by us and the audit has been conducted based upon the
available records on hand which was presented by the management before
us.
2. Secured Loans
a. Loans from Financial Institutions are secured by equitable mortgage
of immovable assets (excluding Housing Colony) and hypothecation of all
the companys moveable assets, (except Book Debts), both present &
future, and personal guarantees of the then Managing Director. However
the same have been duly paid off during the year.
b. Cash Credits including FCNR (B) Loans, Export Packing Credit,
Letter of Credit, Guarantee Facilities and Working Capital Term Loans
are secured by hypothecation of stocks, book debts and personal
guarantees of the then Managing Director, all ranking pari-passu with
each other. Substantial proportion of the loan has been paid off by the
company during the year.
3. Unsecured Loans
The company has taken External Commercial Borrowings (ECB) of Rs.
18,03,24,250/-. It had been agreed by the lenders, that the amount
shall be repaid in Foreign Currency equal to Rupee amount, at the time
of the Original borrowings, provided the company repays the Loans and
interest on due dates. Hence the Loan Liability of the ECB had been
reflected at the original borrowed amounts. Further the interest
payable on ECB was waived by the lender upto 31st March 2005, which had
been revoked by the lenders and opted for conversion of their
outstandings into equity shares of the company as per the loan
agreement. The company had made a request for waiver of the interest
for the year 2005-06 and 2006-07. However under the scheme of
restructuring as sanctioned by the honourable bench of BIFR, the total
outstanding amount of the ECB was revised and a rebate of 95% on the
outstandings totaling to Rs. 17,13,08,250/- has been availed by the
company thereby reducing the ECB dues to Rs. 90,16,000/-
The ECB Lenders were shareholders of the company as on the date of
filing of the reference to the BIFR. Further during the procedures of
the BIFR, the ECB was duly represented by Mr. Sanjay Barodia and Mr.
J.C. Dargar, (erstwhile directors of the company). In March 2007, Mr.
J.C. Dargar, as representative of the ECB, presented an application to
the BIFR for settling the ECB dues at Rs. 360.72 Lacs as against Rs.
90.16 Lacs. However, BIFR passed the Final Rehabilitation order on 1
7th August, 2007, which has been duly given effect to in preparation of
the accounts.
No files or correspondences have been handed over to the management by
the erstwhile management nor the company has ever been approached
directly by the ECB at any time during the year. The ECB Lenders had
approached the Appellate Authority for Industrial & Financial
Reconstruction (AAIFR) and an order was duly passed by the AAIFR dated
29/04/2008 directing the company to reduce the waiver from 95% to 80%
of the outstanding amounts thereby reducing the rebates by and the dues
enhancing by Rs. 2,70,48,650/-. The company has preferred an appeal
with the High Court against the said order with the contention that the
said sums due payable to the ECB to be borne exclusively by the
erstwhile management on its own account. The management has not
provided for the above reduction in the waivers awarded by the AAIFR in
respect of the ECB Dues in the preparation of the Financial Statements
and the outstanding in respect of ECB remains understated by the same
to the tune of Rs. 270.48 Lacs. In the absence of the relevant
supporting documents and evidences, it is not possible for us to verify
the said dues payable to the ECB by the company.
4. Contingent Liabilities As at 31st March
2009 2008
Rupees Rupees
a. Guarantee given by the
companys Bankers and
Counter guaranteed by the
company Nil Nil
b. Claims againstthe company not
acknowledged as Nil Nil
Debts*
c. Service Tax demand under dispute** 83,43,444 83,43,444
d. Custom Duty payable in
respect of goods imported
against Advance License pending
Export Obligations 58,65,191 58,65,191
e. Interest and penalties under Employees PF & Misc
Provisions Act, 1952 3,64,405 3,64,405
* A claim appealed against by the company is pending in the High Court
in respect of ECB Dues as detailed in Note 4 above. In the absence of
the detailed records and evidences, we are unable to provide a view on
the quantum and volume of the Contingent Liabilities of the company,
however in the opinion of the management, the same does not qualify for
reporting hereunder.
** Against the order passed by the Commissioner of Central Excise
(Appeals) in favour of the company, the revenue has gone into Appeal
before the CESTAT challenging the said order and for restoring the
order of the Additional Commissioner, Central Excise.
5. As the companys plant is under closure, physical verification of
inventory and Fixed assets have not been done.
6. The balances reflected in the accounts of Sundry Debtors, Loans and
Advances, secured loans from financial institutions and bank and sundry
creditors are subject to confirmation/reconciliation and the
consequential adjustment, if any. As the companys Account/facilities
with balance confirmation for the period thereafter from such lenders
under secured loan is not yet received.
7. Due to closure of the unit, the goods could not be manufactured
during the year. At this stage, the management is not in a position to
ascertain the further deterioration, if any, in the value of the stock
however pursuant to the scheme of Restructuring the company has
revalued its Stock to Rs. 25,00,000/- to account for any depletions and
deteriorations therein. (Refer Note: B-1&2 of Schedule Q)
8. The companys employees have filed cases in the Labour Court for
their legal dues. The Honourable Labour "j Court had directed the
company to pay dues as per the Industrial Dispute Act, which worked out
to Rs. 39,97,490/-. Out of this Rs. 9,57,496/- had been paid to some
of the employees and debited to the Profit & Loss Account during the
earlier year. However as per the scheme of Restructuring sanctioned by
the Honourable Bench of the BIFR, the company has made a provision of
Rs. 31,04,000/- towards the same. The liability towards the same has
been paid off in full by the company during the year. (Refer Note: B-1
& 2 of Schedule Q)
9. The company has deferred Tax Liabilities (DTL) on account of
Depreciation. The company has also Deferred Tax Liabilities (DTL) on
account of Unabsorbed Depreciation and Brought Forward Losses and
amounts claimable u/s 43B of the Income Tax Act, 1961. In the view of
the company, in the year in which the DTL would materialize, no tax
would actually become payable on account of setoff. Hence, no provision
has been made for DTL.
10. As the companys business activities fall within a single segment
ie. Chemicals Bisphenol -A, the disclosure requirement of Accounting
Standard - 17 on Segment Reporting as issued by the Institute of
Chartered Accountants of India is not applicable. During the year the
company has undertaken trading of Chemical & Intemediates Goods, which
are within the above described segment.
11. Disclosure regarding parties and transactions as required by AS -
18 issued by the Institute of Chartered Accountants of India are as
under:-
A. NAME OF RELATED PARTYANDTHEIR RELATIONSHIP
i). Associate Company
Nil
ii). Directors
Shri Shankarlal B. Sharma
Shri Ramgopal S. Naria
Shri Rajkumar Sharma
iii). Relatives of Key Managerial Personnel
Nil
B. TRANSACTIONS WITH RELATED PARTY:
The company has not entered into any transactions with related party
within the meaning of Accounting Standard 18 "Related Parties
Disclosure".
12 Test as required under Accounting Standard - 28 relating to
Impairment of Assets have been carried out, however the values of the
Fixed Assets have been revalued ahd the carrying costs of the Fixed
Assets have been duly reduced as per the schedule of Restructuring as
sanctioned by the Honourable Bench of BIFR during the earlier year. The
values so arrived are equivalent to the recoverable values of the
assets in accordance with the Accounting Standard - 28 relating to
Impairment of Assets (Refer Note: B-1 &2of Schedule Q)
13. The Sales Tax incentives Scheme 1993 of SICOM provides that the
unit should work for 35 years or during the currency of the Sales Tax
Benefits/other benefits drawn/availed of under the 1993 Scheme by way
of incentives there under, whichever longer. Accordingly, the Sales Tax
benefits of Rs. 264.97 Lacs (PY Rs. 264.97 Lacs) availed till
30/09/2003 by the company is subject to compliance of the terms and
conditions of the said scheme. The company has opted for Deferral
Scheme of Sales Tax liability w.e.f. 01/07/2003. Accordingly the sales
tax liability of Rs. 31,20 Lacs (PY Rs. 31.20 Lacs) shall be repayable
afterTen years in five equal annual instalments.
14. The Company does not have a full time secretary as required under
section 383A of the Companies Act, 1956.
15. Balance Sheet abstract and Companys General Business Profile as
required by Schedule - VI (Part IV) is annexed herewith
16. The figures of the previous years have been regrouped/rearranged
wherever necessary and the figures are rounded off to the nearest rupee
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