Mar 31, 2018
A. CORPORATE AND GENERAL INFORMATION
âPG Foils Limited (âthe Companyâ) is domiciled and incorporated in India and its equity shares are listed at Bombay Stock Exchange(BSE). The registered office of Company is Situated at 6, Neptune Tower, Ashram Road, Ahmedaaad-380 009 (Gujarat).The Company is a leading manufacturer/producer of Aluminium For in the various form. The financial statements of the company for the year ended 31st March 2018 were approved and authorized for Issue by board of directors in their meeting held on 30.05.2018â.
B. STATEMENT OF COMPLIANCE
The financial statements are c general purpose financial statement which have been prepared in accordance with the Companies Act 2013, Indian Accounting Standards and complies with other requirements of the law. Indian Accounting Standards (IND AS) include equivalent to International Financial Reporting Standards (IFR5). Compliance with the IND AS ensures that the financial statements and notes of the entity comply with International Financial Resorting Standards(IFRS).
(I) Statutory Dues Payable includes:
(a) demand raised under CST Act for FY 2014-15 towards non submission of declaration form for Rs. 45276815/-
(b) demand raised under VAT Act. Tor FY 2014-15 towards disallowances of input tax credit availed on DEPB licence for Rs. 39225961/-, the company had filed an appeal before CIT Appeal against order
(c) demand raised under Income Tax Act for AY 2015-16 for Rs. 25432270/-, the company had filed on appeal before CIT Appeal against order
1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR CONTINGENT LIABILITIES:
(a) Guarantees given by bank in favour of buyers/suppliers, & Central Excise for Rs. 69.55 Lac (previous Year Rs. 69.55 Lac)
(b) Letter of Credit of Rs. 1614.97 Lac (previous Year Rs. 1930.07 Lac) opened in favour of Raw Material Suppliers
(c) Personal Guarantee by the Managing Director and Whole Time Director have been given to Banks and Financial institutions against credit facilities sanctioned to company.
(d) Uncompleted/reopened assessments of Direct tax and Indirect tax.
(e) Stultified by NECLO for Sum of Rs. 227085/- against which a sum of Rs.25,000/- has been deposited in the city Civil Court Ahmadabad.
*Matter pending since more then 17 years and company does not expect any liability
(f) Bonus Liability for the year 2014-15 as per new amendment issued by Ministry of Labour on which stay granted by Honâble High Court in company favour.
(g) Total Demand of Rs. 1,03,51,283/â- for safeguard duty, redemption fine and penalty in 2009-10 is raised by custom department and the same has been pending at Honâble Supreme Court, Delhi. Company has paid Rs. 38,00.000/- against this demand.
(h) Total penalty of Rs. 25 00,000/- is raised on Shri Pankaj P Shah (Managing Director) and Shri Ashok P Snah (Ex. Director) of the company by custom department and company has paid Rs. 6,00,000/-as per direction of Custom Excise & Gold (control) Appellate., New Delhi Through order dated 03.02.2003 and company has filed appeal before Honâble High Court.
(i) Total Demand af Rs. 1,25.76,869/ for safeguard duty is raised by custom department ard the same has been pending Honâble High Court, Mumbai. Stay granted by Honâble High Court. Company has paid Rs. 97,44,034/-against this demand.
(j) Total Demand of Rs. 12284587/- towards Vat, interest & penalty due to disallowances of input availed on DEPB purchase for year 2015-16 raised by Commercial Tax Deportment, Poli, Company is going to file appeal against this order to appropriate authority.
(k) Total Demand of Rs. 115646606/- toward non submission of C Forms, CST & Interest for year 2015-16 raised by Commercial Tax Department, Foil.
(Assessment order related to demand mentioned in clause no. (j) end (k) received after date of balance sheet hence liability not booked)
COMMITMENTS
(l) estimated amount of contracts on Capital Accounts remaining to be executed and not provided for (net of advances) Rs. 56.40 Lacs (Previous Year Rs. 99.20 Lacs (USD 1.53 Lacs)
(m) The Company has entered into derivative contracts during the year in the nature of Forward Contracts for hedging currency risk for export made. The forward Contracts outstanding as on 31st March 2018 amount to Rs. 1803.23 Lacs (USD 27.00 Lacs) Previous Year Rs. 1331.92 Lacs (USD 19.00 Lccs)
(n) The Company has entered into derivative contracts during the year in the nature of forward Contracts tor hedging currency risk for import. The Forward Contracts outstanding as on 31st March 2018 amount to NIL Previous year Rs. 1205.78 Lacs (USD 16.42 Lacs & EURO 0.30 Lacs)
(o) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:
2 AS PER IND AS-19â EMPLOYEE BENEFITS
The disclosure of employees benefit as defined in the Indian Accounting Standard-19 âEmployee Benefitsâ are as follows:
a) The Actuarial valuation of Gratuity has not been carried out during the year ended 31.03.18; Accordingly disclosures as per IN D AS 19 are not given for the year ended 31.03.18. During the year ended 31.03 18, no provision for Gratuity has been calculated. The company has taken Group Gratuity cash accumulation plan from Life Insurance Corporation of India and makes contribution to the fund. The fund value as on 31.03.2018 amounted to Rs 32943509/-
b) The Leave Encashment liability of Rs. 261.92 Iacs form port of long tern provision Rs. 245.27 Iacs ( PY Rs. 177.13 Iacs ) and short term provision Rs. 16.66 lacs (PY Rs. 20.10 lacs) and is unfunded and does not require disclosures as mentioned in para 158 of Ind AS 19.
c) Provident Fund : An amount of Rs 20.21 Lacs (2016-17 Rs 15.45 Lacs) as contribution towards defined contribution plans is recognized as expenses in statement of Profit & Loss.
The carrying amount of bank balances, Trade Receivable.. Trade Payable, other financial assets / liabilities, loans, cash and cash equivalents, borrowings are considered to Other same as their fair value due to their short term nature.
The levels have been classified based on the followings:
Level I: It hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traced bands and mutual funds, as the case may be, that have quoted price/rate/value.
Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable marker date (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument s included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
3 FINANCIAL RISK MANAGEMENT
The Companies Activities Exposé It to credit risk, liquidity risk and market risk. This note explains the source of risk which the company is exposed to and how the manages the risk and its impact in the financial statement.
The board of directors provides guiding principle for overall risk management, as well as policies covering specific area I.e.. Foreign exchange risk, credit risk & Investment of Surplus liquidity.
The companies risk management is carried out by finance department, accordingly, this department identifies, evaluation and hedges financial risk
A) Credit Risk
Credit risk arises from cash and cash equivalents, financial assets measured at amortised cost and fair value through profit or loss and trade receivables Credit Risk Management
The main source of credit risk at the reporting dateâs from trade receivables as these are typically unsecured. This credit risk has always been managed through credit Approvals, establishing credit limits and continuously monitoring the creditworthiness of customer to whom credit is extended in normal course of business. The company estimates the expected credit loss on the basis of past Data and experience. Expected credit losses of financial assets receivable in next 12 months are estimated on the basis at historical data provided the company has reasonable and supportable data On such an assessment the expected losses are nil or negligible
Review of outstanding trade receivables and financial assets is carried out by management each quarter. The company do not have any doubtful debts hence, no provision for bed and doubtful debts have yet been made in accounts.
B) Liquidity Risk
The companies principle source of liquidity are cash and cash equivalent and cash flows that are generated from operation. The company be leves that its working capita is sufficient to meet its current requirement.
C) Market Risk Foreign Currency Risk
The company operates significantly in international markets through imports and exports and therefore exposed to foreign exchange risk arising from foreign currency transaction primarily with respect to USD/Euro. The risk is measured through sensitivity analysis. In order to minimize any adverse effect on the financial performance of the company, derivative financial instrument such as foreign exchange forward contracts are used exclusively to mitigate currency risk and not as trading or speculative instrument.
4 RELATED PARTY DISCLOSURES
Related party disclosures as required by Indian Accounting Standard (Ind AS) -24 is as under:-
A List of related parties and relationships
a) List of related parties
i) Key Management Personnel
Shri Pankaj P Shah Managing Director
Shri Abhay P Shah Whole Time Director
Shri Sahil P Shah Whole Tine Director
Smt. Sakshi S Shah Director
ii) Enterprises where Key Management Personnel or relatives of Key Management Personnel have significant influence.
1. Prem Cables Pvt. Ltd
2. Miracle Carriers & Trading Company
3. Prem Nagar Industrial Estate Pvt.Ltd
4. Pipalla Cables & Wires Pvt. Ltd.
5. Miracle Toils Pvt.Ltd.
6. Foils India Laminates Pvt. Ltd
7. Pipalia Engineering Work Pvt. Ltd
8. Tyagi Cement Pvt. Ltd.
B Transactions with related parties
Disclosure of Transactions with Related Parties, as recurred by Ind AS 24 âRealted Party Disclosureâ is given below:
5 a) The lease deed regarding land at Jaisalmer where Enercon Make wind mill is installed has not been executed.
b) The lease deed regarding land at Pipalia Kalan where Bunglow in the name of company is in work in progress has not been executed.
6 Balances of Trade Receivables, Trade Payables, Loans, Amount Received against FDRâs & Advances and Unsecured Loans as on 31.3.2018 are subject to reconciliation & confirmation by the parties.
7 During the year the company has paid a sum of Rs. 2,34,330/- to LIC Of India towards premium of key man insurance policy. This policy has been taken on 28th January 1995 for 25 years. Regarding this the company has taken the undertaking from Shri Pankaj P Shah, And Shri Abhay P Shah the director who are covered up under this policy, for non-claiming of end benefits of the policy on maturity.
8 During the year the company has paid a sum of Rs. 5,00,00,000/- to HDFC Life insurance company Ltd towards single premium of policy taken under employee employer plan. This policy has been taken for related parties in March 2018 for 10 years. Regarding this the company has taken the undertaking form Life Assured persons who are covered up under this policy for non claiming of end benefits of the policy on maturity.
9 The company has capitalized cost of flat purchased in. World One lower, Mumbai including interest capitalized by Rs. 122/.21 Lacs and no Depreciation has been claimed due to not put to use.
10 a) Company has installed one Wind Mill of 0.6 MW capacities at Sada Bandan District Jaisalmer with agreement with Rajastahn Rajya Vidhut Vitron Nigam Limited & other and Enerccn Wind Form for wheeling of Energy for captive consumption. During the year 468475 units (Previous year 138077 units) Generated amounting to Rs.38,23,412/- (Previous Year Rs. 11,17,225/-). Profit otter depreciation earned from above wind millâs RS. 33,04,354/-.
b) Company has installed one Wind Mill of 1.5MW capacities at Aakal, Jaisalmer with agreement with Jodhpur Vidhut Vitran Nigam Limited & Sudan Suzlon Infrastructure Service Limited for generation power. During the year 1746103 units (Previous Year 1982497 units) generated and sale to Jodhpur Vidhut Vitran Nigam Limited amounting to Rs. 71,59,023/- (Previous Year Rs. 81,28,237/-). Profit after depreciation earned from above wind mill is Rs. 9,22,309/-.
11 a) A Misappropriation / Fraud of FDR Deposit Comes to the knowledge of the Management during Financial Year 2014-15. Company had filed a complaint with Economic Offence Wing, Mumbai and FIR with Police station Nariman Point on 14.07.2014 against various parties including Dhanlaxmi Bank, Mumbai & their officials for Misappropriation of FDRâs of Rs. 69 Crores given to Dhanlaxmi Bunk Ltd., Guregcon Branch. Company has also filed a legal case with National Consumer Court at Delhi for early justice in the matter due to delay in decision against FOW complaint. Company recovered amount Rs. 68.93Cr. From accused through account of various parties against repayment of FDRâs which shown under head Cash & Cash Equivalent against FDR amount.
b) Company has not booked interest on these FDRâs for Financial Year 2017-18 due to disputed matter and uncertainty and also not made provision of interest on amount recovered from various parties against maturity value of FDRâs The matter is pending with competent court for trial.
12 Lease rent in respect of leasehold land for factory building and Township are accounted for on accrual basis. The unexpired portion of said lease holes lands are 47 and 48 years respectively.
13 a) Bank balances are subject to bank reconciliations.
b) Balances of Fixed Deposits are Subject to verification & reconciliation.
14 There is no agriculture produce from the Agriculture land.
15 SEGMENT REPORTING
Description of segment and principal activity.
The company is primarily in the business of manufacture and sale of Aluminium Foil in the various form. Operating segments are reported in the manner consistent with internal reporting to Managing director of the company. The company has regular reviews procedures in place and Managing director reviews the operations of the company as a whole, Hence there are no reportable segments as per Ind AS 108 Operating segment.
16 As per the provisions of Sec. 135 of the Companies Act 2013, the Company is required to spend Rs. 30.77 lacs (Previous year Rs. 19.60 lacs) towards CSR activities. The Company has spent Rs 31.00 lacs during the current financial year in line with the CSR Policy of the Company.
17 STANDARDS ISSUED BUT NOT EFFECTIVE
On 28th March, 20â8, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 and certain amendments to existing Ind AS. These amendments shall be applicable to the company from 01st April, 2018.
a Issue of Ind AS-11 b Revenue from Contracts with Customers
Ind AS will supersede the current revenue recognition guidance. Ind AS provides a single model of accounting tor revenue arising from contracts with customers based on identification and satisfaction of performance obligations,
b Amendments to existing issued Ind AS
i) lnd AS 21 -The effects of changes in foreign exchange rates
ii) Ind AS 40âInvestment properties
iii) Ind AS 12 -Income Tax
iv) Ind AS 28-Investmert in Associates and joint ventures, and
v) Ind AS 1 12-Disclosure of Interest in Other Entities
Application of above standards are not expected to have any significant impact on the companyâs financial statements.
18 Previous year figures have been re-grouped and re-arranged wherever necessary to confirm to current year classification.
Mar 31, 2016
(i) The Company has only one class of equity shares having par value of Rs. 10 per share. Each Shareholder ineligible for one vote per share.
(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding. j
Disclosure Required Under Section 22 of the Micro, Small And Medium Enterprise Development Act, 2006_
I (i) Principal amount remaining unpaid to any supplier as at the end of the accounting year -
I (ii) The amount of interest accrued and remaining unpaid at the end of the accounting year - ~
I Note:- (i) Unclaimed dividend includes Rs343062/- for F.Y. 2010-11 and Rs. 511907/- for F.Y. 2015-16
I Note: Balances with government includes a sum of Rs.6.00,000/- was deposited by the company as pre-deposit of penalty as per directions given by the Custom Excise & I Gold (control) Appellate New Delhi by order dated 03.02.2003 against total amount of penalty of Rs.25 lacs to be deposited by Shri Pankaj R Shah Managing Director) and I Shri Ashok R Shah (Ex-Director) of the company, the appeal has been dismissed by the tribunal .The company has filed an appeal before High Court Matter is still pending.
1. The information in regards to SSI Units has been compiled in respect to parties to the extent to which they could be identified as SSI units on the basis of information available with the company.
2. (a) Bank balances are subject to bank reconciliations.
(b) Balances of Fixed Deposits are subject to verification & reconciliations. I
3. There is no agriculture productâ From the Agriculture land.
4. Since the company does not have any subsidiary AS 21 is not applicable
5. During the previous year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1,2014, the Company revised the estimated useful life of its assets to align the useful life with those specified in Schedule II. Pursuant to the transition provisions I prescribed in Schedule II to the Companies Act, 2013, the Company fully depreciated the carrying value of assets aggregating to Rs. 9.44 lacs, where the remaining useful life of the asset was determined to be nil as on April 1,2014, has been included in previous year depreciation amount.
6. Foreign exchange Cain/loss including Gain/loss in respect of purchase, sales and buyers credit.
7. SEGMENT REPORTING
Based on the guidance notes given in the accounting standard on Segment Reporting (AS 17) issued by the Institute of Chartered accountants of India the Company is single reportable segment company, engaged in the business of manufacture and sale of Aluminium Foil in the various form. As the Company operates in single primary segment, disclosure requirement is no applicable.
8. RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD 18
a. Key Managerial Personnel
! 01 Shri Pankaj P Shah Managing Director !
I 02. Shri Abhay P Shah Whole Time Director j
I 03. Shri Sahil P Shah Director
04. Smt. Sakshi S Shah Director
b. Related Parties with whom transaction have taken place 1. Prem Cables Pvt. Ltd
. Miracle Carriers & Trading Company
9. Prem Nagar Industrial Estate Pvt. Ltd
10. Pipalia Cables & Wires Pvt. Ltd.
11. Miracle Foils Pvt.Ltd. ; ( 6. Foils India Laminates Pvt Ltd. i
12. Pipalia Engineering Work Pvt Ltd i
13. As per the provisions of Sec. 135 of the Companies Act 2013, the Group is required to spend Rs. 14.12 lacs (Previous year Rs. 11.00 lacs) towards CSR activities. The Group has spent Rs.14.20 lacs during the current financial year in line with the CSR Policy of the Group.
14. The Figures of the previous year have been regrouped and rearranged wherever necessary to make them comparative with previous year figures as done by the management so as reconciled with the amended revised schedule VI.
Mar 31, 2015
Note:- -i- Unclaimed dividend includes Rs. 445384.00/- for F.Y. 2007-06
and Rs345462.00/- for F.Y. 2010-11. (ii) Statutory remittances includes
1419098.00/- of outstanding demand for C Form Raised for the year 2011
-12 by Sales Tax Authorities & Rs. 1265980/- Demand Raised by Income
Tax Department U/S 143)3).
Note: Balances with government includes a sum of Rs. 6,00,000/- was
deposited by (he company as pie-deposit of penalty as pei directions
given by the Custom Excise & Gold (control) Appellate New Delhi by
order dated03.02,2003 against total around of penalty of Rs. 25 bcs to
be deposited by Shri fen (Managing Director) and Shri Ashok P.
Shah(Ex-Director) of the company, the appeal has been dismissed by the
tribunal. The company has filed an appeal before High Court. Matter is
still pending.
1. CONTIGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR:
(a) Guarantees given by bank in of buyers/suppliers, & Central Excise
for Rs. 320.26 Lac (previous Year Rs, 501.39 Lac)
b) Letter of Credit of Rs. 3458.67 Lac (previous tear Rs. 1649.5 Lac)
opened in of Raw Material Suppliers
(c) Estimated amount of contract remaining to be executed on capital
account & not provided for Rs. 935.98 Lacs (previous year Rs. 935.98
Lacs) against which advances given Rs.847.57 Lacs (previous year
Rs.826.76 Lacs)
(d) Personal Guarantee by the Managing Erector and Whole Time Director
have been given to IDBI bank Limited against working Capital facilities
sanctioned to company.
(e) Uncompleted/reopened assessments of sales tax and income tax.
f) Suit fitted NECLO-for Sum of Rs. 227085/- against which a sum of
Rs.25,000/- has been deposited in the city Civil Court Ahmedabad.
- Matter pending since more than 15 years and company does not expect
any liability
(g) Total Demand raised by commercial tax Department Pali'Rs. 546.40
Lacs for tax and Rs. 1765.91 Lacs for interest due thereon, Out of this
Company has deposited Rs. 546.40 Lacs up to March 2014 and same has
been debited to Profit & Loss Account. However Company has filed an
appeal with Supreme Court for above Disputed Demand and Interest
thereon. Honorable Supreme Court has granted stay for payment of
interest
2. The lease deed regarding land at Jaywalker where Emerson Make wind
mill is installed has not been executed.
3. Balances of Trade Receivables, Trade Payables, Loans & Advances
and Unsecured Loans as on 31.3.2015 are subject to reconciliation &
confirmation by rite parties.
4. Income Tax Assessment tear 2012-13 & Sales tax assessment year
11-12 have been completed.
5. During the year the company has paid a sum of Rs. 2,35,902/-to LIC
Of India towards premium of key man insurance policy. This policy has
been taken on 28th January 1995 for 25 years. Regarding this the
company has taken the undertaking from Shri Pankaj P Shah, And Shri
Abhay P Shah the director who are covered up under this policy, for
non-claiming of end benefits of the policy on maturity.
6. (a) The company has entered into an agreement with
Shreenivas Cotton Mills Limited on 19th day of Nov. 2010 to purchase a
flat in World One Tower, Mumbai on a total consideration of Rs
9,23,97,834.00/- and in addition Rs.12 Lac wiH be paid on possession
towards non refundable dub membership. The company has paid Rs.
8,47,56,930/- as per terms of agreement in advance. Registry of the
above flat executed on 24th February,2014. The same has now been shown
under capital work in progress including borrowing cost capitalized
tilt 31.03.2015. (b) Capitalization of Borrowing cost has not been
determined during the year on Flat in World one tower at Mumbai as the
same is near to completion and only possession of flat is pending.
7. Director remuneration: Salaries Rs. 24,60-,000/-
8. (a) During the year, the Company has DEPB licenses face value
of Rs. 25,50,74,493/- purchased for Rs. 24,85,72,572. The Difference
between face value and purchase price has been treated as discount and
shown under the head Other income. Out of total DEPB, DEPB in hand as
at 31.03.15 is Rs. 2,36,69,620
(b) During the Year Company has received in form of DEPB License Export
incentive for Rs. 2,46,432/- booked as income under head other
Operating Revenue Income.
(c) During the Year, Export incentive accrued for Rs.33,22,757/- shown
as income under head Other Operating Revenue against Export made during
the year. Out of this Rs. 13,21,624/- outstanding at the end of year.
9. (a) Company has installed one Wind Mill of 0.6 MW capacities
at Soda Bandan District jaisalmer with agreement with Rajastahn fiajya
Vidhut Vitran Nigam Limited & other and - Enercon Wind Form for
wheeling of Energy for captive consumption. During the year 6,07,065
units Generated amounting to Rs. 41,35,586/-. (b) Company has
installed one Wind Mill of 1.5MW capacities at Aakal, Jaisalmer with
agreement with lodhpur Vidhut Vitran Nigam Limited & Suzton Suzlon
Infrastructure Service Limited for generation power. During the year
2150335 units generated and sale to Jodhpur Vidhut Vitran Nigam Limited
Amounting to Rs. 88,16,375/-
10. Convert recoverable on the date of balance sheet On Raw Material:
Rs. 6,36,09,7171- On Capital Goods: Rs. 21,73,129/- On Excise Duty: Rs.
28,92,040/- On Service Tax : Rs. 63,48,746.72/- This above has been
shown under the head Short Term Loans & Advances
11. (a) A Misappropriation / Fraud of FDR Deposit Comes to the
knowledge of the Management during the year. Company has filed a
complaint with Economic Offence Wing, Mumbai and fJR with Police
station Narimao float on 14X7.2014 against various parties including
Dhanlaxmi Bank, Mumbai & their officials for Misappropriation of FDR's
of Rs. 69 Crores given to Dhanlaxmi Bank Ltd., Branch. (Company has
received Rs. 47.39 Owes from accused from the account of various
parties against repayment of FDR's which shown under the head Short
Term Borrowings.
(b) Company has not booked interest on these FDR's for Financial Year
2014-15 due to disputed matter and uncertainty. Company has also
reversed the accrued interest on FDR's for Rs. 4,28,97,151/-which was
booked as income in last year. Profit of Company reduced due to
reversal of interest.
(c) Company has not provided interest liability on Short Term Borrowing
received from various dispute.
The matter is under investigation and pending with competent authority.
12. Company has taken a flat in Mumbai for a period of 99 years lease
on monthly lease rent of Rs.25O0/- which will be increased by 10% after
the expiry of every 36 months from the date of agreement and company
has deposited Rs.95,00,000/- as interest tree security deposit with
right to purchase The property on further payment of Rs.5,00,000/- This
lease agreement has not been registered. The unexpired period to said
lease is 89 years.
13. Lease rent in respect of leasehold land for factory building and
township are accounted for on accrual basis. The unexpired portion of
said leasehold lands are 50 and 51 years respectively.
14. Consequent to the accounting standard for deferred tax the company
has created total differed Tax Assets/ (Liability) of Rs.2282 793.00
for the year ended 31st March 2015
15. SEGMENT REPORTING
Based on the guidance notes given in the accounting standard on Segment
Reporting (AS 17) issued by the Institute of Chartered accountants of
India the Company is single reportable segment company, engaged in the
business of manufacture and sale of Aluminium Foil in the various form.
As the Company operates in single primary segment, disclosure
Requirement is no applicable.
16 RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD 18 List of
Related Parties:
a. Key Managerial Personnel
01 Shri Pankaj P Shah Managing Director
02. Shri Abhay P Shah Whole Time Director
03. Shri Sahil P Shah Director
b. Related Parties with whom transaction have taken place.
1. Prem Cables Pvt. Ltd
2. Mirade Carriers & Trading Company
3. Prem Nagar Industrial Estate Pvt Ltd
4. Rparia Cables & Wires Pvt Ltd.
5. Miracle Foils Pvt Ltd.
6. Foils India Laminates Pvt. Ltd.
17. The information in regards to SSI Units has been compiled in
respect to parties to the extent to which they couW be identified as
SSI units on the basis of information available with the company.
18. (a) Bank balance sare subject to bank reconciliations.
(b) Balances of fixed Deposits are subject to Note no. 16.
19. There is no agriculture produce from the Agriculture land.
20. Since The company does not have any subsidiary AS21 is not
applicable
21. Foreign exchange Gain/loss in including Gain/loss in respect of
purchase, sales and buyers credit
22. As on 31st March, 2015, Foreign Exchange Contract of sale of $ is
Unexpired for J90972.38 booked @ Rs.62.43/- with maturity date of 15-
[email protected]/-vvithmahiritydate of 30.04.2015. U
amour of Premiere/discolor toiler expired period is shown under the
current liabilities and simultaneously foreign currency monetary item
payable is booked as FEC ($), shown under current liabilities and
amount receivable in Rs. on maturity is shown as FEC -Rs.) under
current assets. In accordance with accounting standard foreign monetary
item has been subsequently recognized at dosing rate of $ @ Rs.62.59/-
23. Work Roll for Rs. 816688/- shown capital WIP transferred to
Repairing and consumables account in current year.
24. The figures of the previous year have been regrouped and rearranged
wherever necessary to make them comparative with previous year figures
as done by the management so as reconciled with the amended revised
schedule.
Mar 31, 2014
1. CONTIGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR:
(a) Guarantees given by bank in favour of buyers/suppliers, & Central
Excise for Rs. 501.39 Lac (previous Year Rs. 598.24 Lac).
(b) Letter of Credit of Rs. 1649.5 Lac (previous Year Rs.519.81 Lac)
opened in favour of Raw Material Suppliers.
(c) Estimated amount of contract remaining to be executed on capital
account & not provided for Rs. 935.98 Lacs (previous year Rs. 1103.30
Lacs) against which advances given Rs. 826.76 Lacs (previous year Rs.
922.16)
(d) Personal Guarantee by the Managing Director and Whole Time Director
have been given to IDBI bank Limited against working Capital facilities
sanctioned to company.
(e) Uncompleted/reopened assessments of sales tax
(f) Suit filed by NECLO for Sum of Rs. 227085/- against which a sum of
Rs.25,000/- has been deposited in the city Civil Court Ahmedabad.
*Matter pending since more than 14 years and company does not expect
any liability.X
2. The lease deed regarding land at Jaisalmer where Enercon Make wind
mill is installed has not been executed..
3. Balances of Trade Receivables, Trade Payables and Loans & Advances
as on 31.3.2014 are subject to reconciliation & confirmation by the
parties.
4. Income Tax & Sales tax assessments have been completed up to the
Assessment Year 2011-12.
5. During the year the company has paid a sum of Rs. 2,34,330/- to LIC
Of India towards premium of key man insurance policy. This policy has
been taken on 28th January 1995 for 25 years. Regarding this the
company has taken the undertaking from Shri Pankaj P Shah, And Shri
Abhay P Shah the director who are covered up under this policy, for
non-claiming of end benefits of the policy on maturity..
6. The company has entered into an agreement with Shreenivas Cotton
Mills Limited on 19th day of Nov.2010 to purchase a flat in World One
Tower, Mumbai on a total consideration of Rs.9,23,97,834.00/- and in
addition Rs.12 Lac will be paid on possession towards non refundable
club membership. The company has paid Rs. 7,70,91,016/- as per terms of
agreement in advance. Registry of the above flat executed on 24th
February,2014. The same has now been shown under capital work in
progress including borrowing cost capitalized till 31.03.2014 of Rs.
2,16,74,264/-. The possession of the flat is expected to be taken on
31st December,2015.
7. Director remuneration : Salaries Rs. 24,60,000/-
8. (a) During the year, the Company has DEPB licenses face value
of Rs. 3,23,20,500/- purchased for Rs. 3,14,79,785. The Difference
between face value and purchase price has been treated as discount and
shown under the head Other income.
(b) Out of Own DEPB Licenses in hand Rs. 1,94,255/-, DEPB valuing
Rs.14,012/- utilized against import of material and credited to export
incentives and shown under the head other income. The Balance DEPB
licenses Rs.1,80,010/- sold and booked as export incentives under the
head other operating income.
(c) Duty Draw Back of Rs. 36,91,766/- shown as income under head other
income against export made during the year,.
9. Company has installed one Wind Mill of 0.6 MW capacities at Soda
Bandan District Jaisalmer with agreement with Rajastahn Rajya Vidhut
Vitran Nigam Limited, and Jodhpur Vidhut Vitran Nigam Limited for
wheeling of Energy for captive consumption. During the year 7,19,974
units adjusted in power bill amounting to Rs. 46,50,832/-.
10. Cenvat recoverable on the date of balance sheet.
On Raw Material : Rs. 1,03,09,210/-
On Capital Goods : Rs. 14,51,178/-
This amount was shown under the head Short Term loans & advances.
11. The Company has purchased 60 nos. of equity linked non- principal
protected debentures aggregating to Rs.600 Lacs from Barclays
Investments and Loans (India) Ltd. for 24 months at a contingent coupon
rate of 20% p.a.
12. (a) Interest of Rs. 89,72,373/- has been capitalized by crediting
interest to Bank on advance given to Shreeniwas Cotton Mills Ltd. for
Mumbai flat.
(b) Interest of Rs.10,07,006/- has been capitalized by crediting
interest to Bank on advance given Rosedale Developers Pvt.Ltd. for
Kolkata flat.
(c) Interest of Rs. 69,936/- has been capitalized by crediting interest
to Bank on advance given against capital work in progress.
13. Company has taken a flat in Mumbai for a period of 99 years lease
on monthly lease rent of Rs.2500/- which will be increased by 10% after
the expiry of 36 months from the date of agreement and company has
deposited Rs.95,00,000/- as interest free security deposit with right
to purchase the property on further payment of Rs.5,00,000/- This lease
agreement has not been registered. The unexpired period to said lease
is 90 years.
14. Lease rent in respect of leasehold land for factory building and
township are accounted for on accrual basis. The unexpired portion of
said lease hold lands are 51 and 52 years respectively.
15. Sales tax demand of Rs. 276.77 Lac has been deposited with sales
tax department against the demand for the year 1982-83 to 1984-85 &
1990-91 to 1996-97 and the same has been debited to Statement of profit
and loss Interest payable under the demand of Rs.17,65,90,970/- has not
been provided for, as the demand and interest is disputed and the same
is pending before supreme court.
16. Consequent to the accounting standard for differed tax the company
has created total differed Tax Assets/ (Liability) of Rs.1262072.00 for
the year ended 31st March 2014
17. The information in regards to SSI Units has been compiled in
respect to parties to the extent to which they could be identified as
SSI units on the basis of information available with the company.
18. (a) Bank balances are subject to bank reconciliations.
(b) Balances of Fixed Deposits are subject to Note no.16.
19. There is no agriculture produce from the Agriculture land.
20. Since the company does not have any subsidiary AS 21 is not
applicable
21. Foreign exchange loss (net) of Rs. 4,24,469/- includes foreign
exchange gain/loss in respect of purchase, sales and buyers credit.
22. SEGMENT REPORTING
Based on the guidance notes given in the accounting standard on Segment
Reporting (AS 17) issued by the Institute of Chartered accountant of
India the Company is single reportable segment company, engaged in the
business of manufacture and sale of Aluminium Foil in the variou form.
As the Company operates in single primary segment, disclosure
requirement is no applicable.
23. RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD 18:
List of Related Parties:
a. Key Managerial Personnel
01. Shri Pankaj P Shah Managing Director
02. Shri Abhay P Shah Whole Time Director
03. Shri Sahil P Shah Director
b. Related Parties with whom transactions have been taken place.
01. Prem Cables Private Limited
02. Miracle Carriers & Trading Company
03. Prem Nagar Industrial Estates Pvt. Ltd.
04. Pipalia Cables & Wires Pvt. Ltd
05. Miracle Foils Pvt. Ltd.
06. Foils India Laminates Pvt. Ltd.
The following transactions were carried out with the Related Parties in
the ordinary course of Business:
24. As on 31st March, 2014, Foreign Exchange Contract of sale of $ is
unexpired for $77438.11 booked @ Rs.63.02/- with maturity date of 10-
04-2014. Unallocated amount of Premium/discount of the unexpired period
is shown under the current liabilities and simultaneously foreign
currency monetary item payable is booked as FEC ($), shown under
current liabilities and amount receivable in Rs. on maturity is shown
as FEC (Rs.) under current assets. In accordence with accounting
standard foreign monetary item has been subsequently recognized at
closing rate of $ @ Rs. 60.10/-
25. The Figures of the previous year have been regrouped and rearranged
wherever necessary to make them comparative with previous year figures
as done by the management so as reconciled with the amended revised
schedule VI.
Mar 31, 2013
1. CONTINGENT LIABILITIES AND COMMITMENTS
(a) Guarantees given by bank in favour of buyer/Suppliers, & Central
Excise for Rs. 598.24 l.acs (Previous year Rs. 532.40 Lacs).
(b) LetterofcreditofRs.519.81 Lacs(PreviousyearRs.513.24 Lacs) opened in
favour of Raw Material suppliers.
(c) Estimated amount of contracts remaining to be executed on capital
account & not provided forRs. 1103.30 Lacs (Previous yearRs. 923.98 Lacs)
against which advances given Rs. 922.16 Lacs(PreviousyearRs.471.64 Lacs).
(d) Personal Guarantee by the Managing Director and Whole Time Director
have been given to IDBI Bank Limited against working capital facilities
sanctioned to Company.
(e) Uncompleted/reopened assessments of Sales Tax.
(f) Suit filed by NELCO for sum of Rs. 2,27,085/- against which a sum ofRs.
25,000/- has been deposited in the City Civil Court, Ahmedabad.
*Matter pending since more than 13 Years and company does not expect
any liability.
(g) Building situated at Beawar in the name of Shri Pankaj P Shah,
Ashok P Shah, Abhay P Shah & Smt. Neela Devi has been mortgaged with
Bank against the term loan. Company has fully repaid the loan during
the year but the satisfaction of charge is yet to be filed with ROC.
2. He Lease Deed regarding land at Jaisalmer where Enercon Make
windmill is installed has not been executed.
3. The balances of Trade Receivables, Trade Payables and loans &
advances as on 31.3.2013 are subject to reconciliation & confirmation
by the parties.
4. Income Tax & Sales Tax assessments have been completed up to the
Assessment Year 2010-2011.
5. During the year the company has paid a sum ofRs. 2,34,330/-to LIC of
India towards premium of key man insurance policy. This policy has been
taken on 28th lanuary 1994 for 25 year. Regarding this the company has
taken the undertaking from Shri Pankaj P Shah, and Shri Abhay P Shah,
the directors who are covered-up under this policy, for non-claiming of
end benefits of the policy on maturity.
6. Interest, if any, on entry tax payable is subject to acceptance of
rectification.
7. Directors Remuneration : SalariesRs. 24,60,000/-
8. (a) The Company has purchased DEPB Licenses face value of Rs.
2,26,38,672/- which were purchased for Rs. 2,22,43,934/-. The Difference
between face value and purchase price has been treated as discount.
(b) The company has received DEPB Licenses worth Rs. 9,80,145/- as
Export incentive and Previous year''s on hand licenses worth Rs.
9,16,971/- Out of which DEPB licenses valuing Rs. 17,02,861/- utilized by
Debiting to respective import purchase account and by credit to exports
incentives. The balance DEPB licenses Rs. 1,94,255/- are in hand, not
considered as income.
9. Company has installed One Wind Mill of 0.6 MW capacities at Soda
Bandan District Jaisalmer in agreement with Rajasthan Rajya Vidhuyt
Vitran Nigam Limited, and Jodhpur Discoms for wheeling of Energy for
captive consumption. During the year 6,49,205 units adjusted in power
bills amounting toRs. 38,10,631.
10. Cenvat recoverable on the date of balance sheet.
On Raw Material Rs. 1,31,95,887/-
On Capital Goods Rs. 7,72,718/-
This amount was shown under the head Short Term loans & advances.
11. (a) During the year company has purchased 60 nos. of equity linked
non-principal protected debentures aggregating to Rs. 600 Lacs from
Barclays investments and loans (India) Ltd. for 24 months at a
contingent coupon rate of 20% p.a.
(b) Interest Income of Rs. 1,00,75,000 credited as other non operating
income as daily coupon earned on 40 Nos. Barclays equity linked
non-principal protected debentures at first observation period of 15
months.
12. (a) Interest of Rs. 70,46,679/- has been capitalized by crediting
interest on advance given to Shreeniwas cotton mills ltd. for Mumbai
flat (Refer note 11).
(b) Interest of Rs. 5,25,589/- has been capitalized by crediting interest
on advance given to M/s Rosedale Developers (P) Limited for Kolkata
flat.
13. The amount of group gratuity Rs. 5,81,705 paid to LIC after
adjusting the amount of interest credited by LIC.
14. Company has taken a flat in Mumbai for a period of 99 years lease
on monthly lease rent of Rs. 2500/- which will be increased by 10% after
the expiry of 36 months from the date of agreement and company has
deposited Rs. 95,00,000/- as interest free security deposit with right to
purchase the property on further payment of Rs. 5,00,000/-. This lease
agreement has not been registered. The unexpired period of said lease
is 91 years.
15. Lease rent in respect of leasehold land for factory building and
township are accounted for on accrual basis. The unexpired portion of
said leasehold land are 52 and 53 years respectively. .
16. Sales tax demand of Rs.239.62 Lacs has been deposited with sales tax
department as per order of Supreme Court in the matter of stay on
demand raised by the department for the year 1982-83 to 1984-85 &
1990-91 to 1996-97 and the same has been debited to Statement of profit
and loss.
17. No case was filed against the company by M/s Vassen Flexible
Packaging BV Netherland for recovery of balance payment of Rs.
74,20,600/-. Therefore liability of Rs. 43,83,495/- has been reduced from
plant & Machinery and depreciation of Rs.30,37,105/-, which already
charged, has been written back with retrospective effect.
18 Consequent to the accounting standard for Deferred Tax the company
has created total Deferred Tax Assets /(Liability) of Rs. (79,02,965)/-
for the year ended 31st March 2013.
19. The information in regards to SSI Units has been compiled in
respect of parties to the extent to which they could be identified as
SSI Units on the basis of information available with the company.
20. Bank balances are subjectto bank reconciliations.
21. There is no agriculture produce from the Agriculture land.
22. Since the Company does not have any subsidiary therefore AS21 is
not applicable.
23. Foreign Exchange loss (Net) ofRs. 2,16,29,300/- includes foreign
exchange gain/loss in respect of purchase, Sales and buyer'' Credit.
24. SEGMENT REPORTING
Based on the guidance notes given in the Accounting Standard on Segment
Reporting (AS-17) issued by the Institute of Chartered Accountants of
India the Company is single reportable segment company, engaged in the
business of manufacture and sale of Aluminium foil in its various form.
As the company operates in a single primary segment, disclosure
requirement is not applicable.
25. RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD 18: List of
Related Parties:
a. Key Managerial Personnel
01. ShriPankajPShah Managing Director
02. ShriAbhayPShah Whole Time Director
03. ShriSahilPShah Director
b. Related Parties with whom transactions have been taken place.
01. Prem Cables Private Limited
02. Miracle Carriers & Trading Company
03. Prem Nagar Industrial Estates Pvt. Ltd.
04. Pipalia Cables & Wires Pvt. Ltd
05. Miracle Foils Pvt. Ltd.
26. Nominal amount of outstanding forward contracts entered into by
the company as on 31.03.2013 isRs. NIL (previous year" 1196.02 Lacs).
27. The Figures of the previous years have been regrouped and
rearranged wherever necessary to make them comparative with previous
year figures as done by the management so as reconciled with the
amended revised schedule VI.
Mar 31, 2012
Note:-
(i) The company has entered into an agreement with Shreeniwas cotton
mills ltd. on 19th day of Nov., 2010 to purchase a flat in Mumbai on a
total consideration of Rs. 9,23,97,834.00/- and in addition Rs. 12 lacs
will be paid on possession towards non refundable club membership.
Possession of this flat is expected to be taken on 30th Nov., 2015. The
company has paid Rs. 4,71,64,302.00/- as per terms of agreement in
advance.
(ii) Balances with government includes a sum of Rs. 6,00,000.00/- was
deposited by the company as pre-deposit of penalty as per directions
given by the Custom Excise & Gold (control) Appellate New Delhi by
order dated 03.02.2003 against total amount of penalty of Rs. 25 lacs
to be deposited by Shri Pankaj P. Shah (Managing Director) and Shri
Ashok P. Shah (Ex-Director) of the company, the appeal has been
dismissed by the tribunal. The company has filed an appeal before High
Court.
1. CONTINGENT LIABILITIES AND COMMITMENTS
(a) Guarantees given by bank in favour of buyer/Suppliers, & Central
Excise for Rs. 532.40 Lacs (Previous year Rs. 235.90 Lacs).
(b) Letter of credit of Rs. 513.24 Lacs (Previous year Rs. 1928.03
Lacs) opened in favour of Raw Material suppliers.
(c) Estimated amount of contracts remaining to be executed on capital
account & not provided for Rs. 923.98 Lacs (Previous year Rs. 923.98
Lacs) against which advances given Rs. 471.64 Lacs (Previous year Rs.
323.39 Lacs).
(d) The Following companies have given Guarantee/Securities against
Overdraft facilities sanctioned by the IDBI Bank Ltd.
1. Pipalia Cables & Wires Pvt. Ltd.
2. Foils India Laminates Pvt. Ltd.
3. Miracle Foils Pvt. Ltd.
4. Prem Cables Pvt. Ltd.
5. Tirumala Irons Pvt. Ltd.
and personal guarantee by the Managing Director, Whole Time Director
and their family members.
(e) Uncompleted/reopened assessments of Sales Tax.
(f) Suit filed by NELCO for sum of Rs. 2,27,085/- against which a sum
of Rs. 25,000/- has been deposited in the City Civil Court, Ahmedabad.
*Matter pending since more than 12 Years and company does not expect
any liability.
(g) Building situated at Beawar in the name of Shri Pankaj P. Shah,
Ashok P. Shah, Abhay P. Shah & Smt. Neela Devi has been mortgaged with
Bank against the term loan.
2. The Lease Deed regarding land at Jaisalmer where windmill is
installed has not been executed.
3. The balances of sundry debtors, sundry creditors and loans &
advances as on 31.3.2012 are subject to reconciliation & confirmation
by the parties.
4. Income Tax & Sales Tax assessments have been completed up to the
assessment year 2009-2010.
5. i) During the year the company has paid a sum of Rs. 2,34,330/- to
LIC of India towards premium of key man insurance policies. Regarding
this the company has taken the undertaking from Shri Pankaj P. Shah and
Shri Abhay P. Shah, the directors who are covered-up under these
policies, for non-claiming of end benefits of the policies on maturity.
ii) The Company has paid renewal premium of Rs. 250 Lacs towards
Employer-Employee policies in the name of company to cover life of some
of employees which have not been given to Employees.
6. Directors Remuneration : Salaries Rs. 21,00,000/- 33.
(a) The Company has purchased DEPB Licenses face value of Rs.
10,97,16,027/- which were purchased for Rs. 10,56,00,877/-. The
Difference between face value and purchase price has been treated as
discount.
(b) The company has received DEPB Licenses worth Rs. 32,28,055/- as
Export incentive and Previous year's on hand licenses worth Rs.
9,18,089/- Out of which DEPB licenses valuing Rs. 32,29,173/- utilized
by Debiting to respective import purchase account and by credit to
exports incentives. The balance DEPB licenses Rs. 9,16,971/- are in
hand not considered as income.
7. Company has installed One Wind Mill of 0.6 MW capacities at Soda
Bandan District Jaisalmer in agreement with Rajasthan Rajya Vidhuyt
Vitran Nigam Limited, and Jodhpur Discoms for wheeling of Energy for
captive consumption. During the year Company has adjusted Rs.
49,15,839/- (9,38,189 Units) in power bill, which has been credited in
the statement of Profit and Loss.
8. Cenvat recoverable on the date of balance sheet.
On Raw Material Rs. 2,28,92,793/
On Capital Goods Rs. 50,03,555/-
This amount was shown under the head loans & advances.
9. During the year company has purchased 40 nos. of equity linked
non-principal protected debentures aggregating to Rs. 400 Lacs from
Barclays investments and loans (India) Ltd. for 24 months at a
contingent coupon rate of 20.15% p.a. As on 31.03.2012 company has
accrued contingent income of Rs. 28,37,120/- and diminution in the
value of investment of Rs. 33,96,000/-. No accounting entry has been
charged in this respect.
10. Interest of Rs. 14,17,880/- for year 2010-11, Rs. 41,67,396/- for
year 2011-12 has been capitalized by crediting prior period income and
interest respectively on advance given to Shreeniwas cotton mills ltd.
for Mumbai flat (Refer note 14).
11. During the year company has written back depreciation of Rs.
22,98,177/- for the period 01.06.2005 to 31.3.2011 and amount of Rs.
95,00,000/- shown in fixed asset has been transferred to security
deposit against Mumbai office due to non- execution of lease as per
agreement.
12. Lease rent in respect of leasehold land for factory building and
township are accounted for on accrual basis and the unexpired portion
of said leasehold land are 53 and 54 years respectively.
13. Sales tax demand of Rs. 30 Lacs has been deposited with sales tax
department against the case pending at Supreme Court for the year
1995-96 & 1996-97 and the same has been debited to Statement of profit
and loss.
14. Case filed against the company by Chalbury McCouat, UK has been
withdrawn. Therefore disputed liability of Rs. 51,41,755/- has been
reduced from plant & Machinery and depreciation of Rs. 13,02,294/-,
which has already been charged, has been written back with
retrospective effect.
15. Consequent to the accounting standard for Deferred Tax the company
has created total Deferred Tax Assets/(Liability) of Rs. 53,356/- for
the year ended 31st March 2012.
16. The information in regards to SSI Units has been compiled in
respect of parties to the extent to which they could be identified as
SSI Units on the basis of information available with the company.
17. Bank balances are subject to bank reconciliations.
18. There is no agriculture produce from the Agriculture land.
19. Since the Company does not have any subsidiary therefore AS21 is
not applicable.
20. Foreign Exchange loss (Net) of Rs. 3,44,09,257/- includes foreign
exchange gain/loss in respect of purchase, Sales and buyer' Credit.
21. SEGMENT REPORTING
Based on the guidance notes given in the Accounting Standard on Segment
Reporting (AS-17) issued by the Institute of Chartered Accountants of
India the Company is single reportable segment company, engaged in the
business of manufacture and sale of Aluminium foil in its various form.
As the company operates in a single primary segment, disclosure
requirement is not applicable.
22. RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD 18:
List of Related Parties:
a. Key Managerial Personnel
01. Shri Pankaj P. Shah Managing Director
02. Shri Abhay P Shah Whole Time Director
03. Shri Sahil P Shah Director
b. Related Parties with whom transactions have been taken place.
01. Prem Cables Private Limited
02. Miracle Carriers & Trading Company
03. Prem Nagar Industrial Estates Pvt. Ltd.
04. Pipalia Cables & Wires Pvt. Ltd
05. Miracle Foils Pvt. Ltd.
23. Nominal amount of forward contracts entered into by the company
and outstanding as on 31.03.2012 are Rs. 1196.02 Lacs (previous year
Rs. Nil).
24. The Figures of the previous years has been regrouped and
rearranged wherever necessary to make them comparative with previous
year figures as done by the management so as reconciled with the
amended revised schedule VI.
Mar 31, 2011
1) Contingent liabilities not provided for and liabilities not
acknowledge as debts in respect of followings.
(a) Guarantees given by bank in favour of buyer/Suppliers, Hindalco &
Central Excise for Rs. 235.90 Lacs (Previous year Rs.117.71 Lacs).
(b) Letter of credit of Rs. 1928.03 Lacs {Previous year Rs. NIL) opened
in favour of Raw Material suppliers.
(c) Estimated amount of contracts remaining to be executed on capital
account & not provided for Rs 92397834/- (Previous year Rs NIL) against
which advances given Rs 32339242/- (Previous yearRs. Nil).
(d) The Following companies have given Cuarantee/Securities against
Overdraft facilities sanctioned by the IDBI Bank Ltd.
1. Pipalia Cabies & Wires Pvt. Ltd.
2. Foils India Laminates Pvt. Ltd.
3. Miracle Foils Pvt. Ltd.
4. Prem Cables Pvt. Ltd.
5 Tirumala Irons Pvt. Ltd. and personal guarantee by the Managing
Director, Whole Time Director and their family members
(e) Uncompleted/reopened assessments of Sales Tax.
(f) Suit filed by NELCO for sum of Rs 2,27,085/- against which a sum of
25,000/- has been deposited in the Civil Court Ahmedabad.
*Matter pending since more than 11 Years and company does not expect
any liability.
(g) Sales Tax Liability for A.Y.2006-07 to 2010-11 amounting to Rs.
59529679/- due to non submission of various declaration forms under RST
and CST acts for which the application have been filed for extension of
time for submission of declaration forms, hence no provision has been
made.
(h) Building situated at Beawar in the name of Shri Pankaj P Shah,
Ashok P Shah, Abhay P Shah & Smt. Neela Devi has been mortgaged with
Bank against the term loan.
2.The Lease Deed regarding land at Jaisalmer where windmill is
installed has not been executed.
3.The balances of sundry debtors, sundry creditors and loans &
advances as on 31.3.2011 are subject to reconciliation & confirmation
by the parties.
4.Income Tax & Sales Tax assessments have been completed up to the
assessment year 2008-2009.
5.i) During the year the company has paid a sum of Rs. 3,56,404 /- to
LIC of India towards premium of key man insurance policy. The amount
of Rs. 2,35,892/- has been debited under the head Key Man Insurance
Premium expenses account and Rs. 1,20,512/- has been shown under the
head Loans & advances being premium of Shri Ashok P Shah. Regarding
this the company has taken theundertakingfrom Shri Pankaj PShah, Shri
Ashok P Shah (Ex-director) and Shri Abhay P Shah, the directors
who are covered-up under this policy, for non-claiming of end benefits
of the policy on maturity.
ii) The Company has paid renewal premium of Rs. 250 Lacs towards
Employer-Employee policies in the name of company to cover life of some
of employees which have not been given to Employees and same have been
kept as security with IDBI Bank against the Overdraft facility. As per
the conditions given by the company to the Insurance Co., the company
will undertake from the employees for not claiming the amount of
insured amount.
6. Directors Remuneration
Salaries Rs. 17,40,000/-
7. (a)The Company has purchased DEP8 Licenses face value of Rs.
28622755/- which were purchased for Rs 28018692/-. The Difference
between face value and purchase price has been treated asdiscount.
(b)The company has received DEPB Licenses worth Rs.2993443/- as Export
incentive and Previous year's on hand licenses worth Rs. 2718381/-.Out
of which DEPB licenses valuing Rs.4793735/- utilized by debiting to
respective import purchase account and by credit to exports incentives.
The balance DEPB licenses Rs .918089/- are in hand not considered as
income.
8.A sum of Rs. 6,00,000/- was deposited by the company as pre-
"deposit of penalty as per direction given by the Customs Excise & Cold
(Control) Appellate Tribunal New Delhi by order dated 03.02.2003
against total amount of penalty of Rs. 25 Lacs to be deposited by Shri
Pankaj R Shah Managing Director and Shri Ashok P Shah (Ex-director) of
the company, the appeal has been dismissed by the tribunal .The Company
has filed an appeal before the High Court.
9.Since no commission is payable to Directors hence the computation
of net profit in accordance with section 198 read with section 309(5)
of the companies act of 1956 has not been given.
10.Company has installed One Wind Mill of 0.6 MW capacities at Soda
Bandan Distt. ]aisalmer in agreement with Rajasthan Rajya VidhuytVitran
Nigam Limited, and Jodhpur Discom for wheeling of Energy for captive
consumption in the year Company has adjusted of Rs. 26,48,539/-(607463
Units) in power bill.
11. Cenvat recoverable on the date of balance sheet.
On Raw Material - Rs. 2,37,6387-
On Material Goods - Rs. 95,42,774/-
12.The Company had agreed to take on lease the property for 99 years
at Mumbai on 01.06.2005.As per the terms of the agreement the company
has still not got registered lease deed executed. The Company has taken
the possession and amount paid has been shown in fixed assets and
depreciation on it has been charged.
13.The information in regards to SSI Units has been compiled in
respect of parties to the extent to which they could be identified as
SSI Units on the basis of information available with the company.
14.After Physical verification of stores the management found Inks,
Dyes & chemicals worth Rs 10,13,819/- unusable which have been debited
to Profit & Loss Account by reducing the closing inventory.
15.Bank balances are subject to bank reconciliations.
16.Unpaid dividend of Rs.11,33,500/- has not been deposited with the
Scheduled Bank in Unpaid Dividend Account, since the ownership of the
shares is sub-judice in civil court at Ahmedabad.
17.The company has made a provision for Income Tax Rs. 1,50,00,000/-
only on the basis of computation of Income Tax where as the company is
liable for MAT. The amount to be paid in excess of provision is
refundable.
18.There is no agriculture produce from the Agriculture land.
19.Since the Company does not have any subsidiary therefore AS 21,23
and 27 are not applicable.
20.Foreign Exchange gain (Net) of Rs 13,51,160/- includes foreign
exchange gain/loss in respect of purchase, Sales and buyer' Credit.
21. SEGMENT REPORTING
Based on the guiding principles given in the Accounting Standard on
Segmentai Reporting (AS-17) issued by the Institute of Chartered
Accountants of India the Company is single segment company engaged in
the business of manufacture and sale of Aluminium foil in its various
form, as the company operates in a single primary segment, disclosure
requirement it not applicable.
22. RELATED PARTY DISLOSURE AS PER ACCOUNTING STANDARD 18.
A. LIST OF RELATED PARTIES:
a. Key Managerial Personals
01. Shri Pankaj P Shah Managing Director
02. Shri Abhay P Shah Whole Time Director
03. ShriSahil P Shah Director
b. Related Parties with whom transactions have been taken place.
1 Prem Cables Private Limited
2. Miracle Carriers & Trading Company
3. Prem Nagar Industrial Estates Pvt. Ltd.
4. Pipalia Engineering Works Pvt. Ltd.
5. Pipalia Cables & Wires Pvt. Ltd
6. Miracle Foils Pvt. Ltd.
23. The Figures of the previous years has been regrouped and rearranged
wherever necessary to make them comparative with previous year figures.
Mar 31, 2010
1. Contingent liabilities not provided for and liabilities not
acknowledge as debts in respect of followings.
(a) Guarantees given by bank in favour of buyer/Suppliers, Hindalco &
Central Excise for Rs. 117.71 lacs (Previous year Rs.224.35 Lacs)
against which the bank has got a lien on securities/ term deposit
receipt of Rs. 117.71 lacs (Previous year 224.35 lacs).
(b) Letter of credit of Rs. NIL (Previous year Rs. 2001.10 lacs) opened
in favour of Raw Material suppliers; against this, the bank has got a
lien on securities of Rs. NIL lacs (Previous year Rs.2001.10lacs).
(c) Estimated amount of contracts remaining to be executed on capital
account & not provided for Rs NIL (Previous year Rs 75.00 lacs) against
which advances given Rs Nil (Previous year Rs. 3.56 lacs).
(d) The Following companies has given Guarantee/Securities against O/D
facilities sanctioned by the IDBI Bank Ltd.
1. Pipalia Cables & Wires Pvt. Ltd.
2. Foils India Laminates Pvt. Ltd.
3. Miracle Foils Pvt. Ltd.
4. Prem Cables Pvt. Ltd.
5. Tirumala Irons Pvt. Ltd.
And personal guarantee by the Managing Director, Whole Time Director
and wives of these directors.
(e) Uncompleted/reopened assessments of Income Tax & Sales Tax.
(f) Suit filed by NELCO for sum of Rs. 2,27,085/- against which a sum
of 25,000/- has been deposited in the Civil Court Ahmedabad.
*Matter pending since more than 10 Years and company does not expect
any liability.
(g) Under CST Act Saies Tax Liability for the F.Y. 2007-08 amounting to
Rs 5,93,49,963/-(Due to none receipt of declaration form and higher
rate of tax ) No Provision has been made since rectification
application and extension of time for filling declarations has been
applied. After rectification and submissions of declaration forms the
company will be entitled for the refund for F.Y 2006-07 and 2007-08.
2. The Lease Deed regarding land at Jaisalmer where windmill is
installed has not been executed.
3. As per AS4, the Company is entitled to refund of amount of Rs.
2120466/- as principal and Rs. 1502083/- as interest as per the
judgment of the Delhi High Court dated 19-4-2010 which was deposited
previously as per the judgment of Debt Recovery Tribunal Delhi and
interest was charged to revenue.
4. The balances of sundry debtors, sundry creditors and loans &
advances as on 31.3.2010 are subject to reconciliation & confirmation
by the parties.
5. Income Tax & Sales Tax assessments have been completed up to the
assessment year 2008-2009 and 2007-08 respectively.
i) During the year the company has paid a sum of Rs. 3,54,042 /- to LIC
of India towards premium of key man insurance policy.
The amount of Rs. 2,34,330/- has been debited under the head Employees
Welfare expenses account and Rs. 1,19,71 II- has been shown under the
head Loans & advances being premium of Shri Ashok P Shah. Regarding
this the company has taken the undertaking from Shri Pankaj P Shah,
Shri Ashok P Shah (Ex-director) and Shri Abhay P Shah, the directors
who are covered-up under this policy, for non- claiming of end benefits
of the policy on maturity.
ii) The company has paid Rs. 450.00 Lacs as renewal premium to Bajaj
Allianz Life Insurance Company Limited towards Key Man Insurance
Policies taken for its directors Shri Pankaj P Shah & Shri Abhay P Shah
and the insurance premium has been debited to profit & loss account as
expenditure. Regarding this, the company has taken the under taking
from both the insured directors who are covered up under this policy
for non-claiming of end benefits of the policy on maturity.
iii) The Company has taken Employer-Employee policy in the name of
company and paid premium of Rs 250 Lacs to cover life of some of
employees which have not been given to Employees and same have been
kept as security with IDBI Bank against the OD facility. As per the
conditions given by the company to the Insurance Co., the company will
undertake from the employees for not claiming the amount of insured
amount.
6. There is a Profit of Rs. 2,06,76,523/- on account of Increase in
NAV of units of Mutual Fund as on 31.03.2010. NAV was taken on the
basis of daily NAV statement
7. A sum of Rs. 10,96,943/- & Rs. NIL/-being the amount of VAT
recoverable and VAT recoverable (Above One Lac) as on 31.03.2010 has
been shown under the head loan & advances.
8. The gross depreciation of the current year includes Rs. 3,45,296/-
(Previous year Rs. 4,20,939/-) being the difference between the
depreciation calculated on revalued book value & the original book
value. The company has transferred the said additional amount of
depreciation on revalued assets from the Revaluation Reserve to the
Profit & Loss account.
9. Directors Remuneration Salaries 17,40,000
10. Maximum debit balance of Officers and Directors during the year Rs
NIL/- (previousyear Rs. 7,882/-)
11. a) The company has purchased DEPB Licenses face value of
Rs.45850579 which were purchased forRs.43919117. The difference between
face value and purchase price has been treated as discount.
b) The company has received DEPB Licenses worth Rs.3734209 as Export
incentive & Previous year untulised licenses worth Rs. 1909607 out of
which utilized the DEPB licenses valuing Rs.2925435/- by debiting to
respective import purchase account and by credit to exports incentives.
The balance DEPB licenses Rs. 2718381 are in hand not considered as
income.
12. A sum of Rs. 6,00,000/- was deposited by the company as pre-
deposit of penalty as per direction given by the Customs Excise & Gold
(Control) Appellate Tribunal New Delhi by order dated
03.02.2003 against total amount of penalty of Rs. 25 Lacs to be
deposited by Shri Pankaj R Shah Managing Director and Shri Ashok P Shah
(ex director) of the company, the appeal has been dismissed by the
tribunal .The Company has filled appeal before the High Court.
13. Since no commission is payable to Directors hence the computation
of net profit in accordance with section 198 read with section 309(5)
of the companies act of 1956 has not been given.
14. Company has installed One Wind Mill of 0.6 MW capacities at Soda
Bandan Distt. Jaisalmer in agreement with Rajasthan Rajya Vidhuyt
Vitran Nigam Limited, and Discoms for wheeling of Energy for captive
consumption in the year Company has adjusted of Rs. 33,72,089/-
(860488Units) in power bill.
15. Cenvat recoverable on the date of balance sheet.
OnRawMaterial
Rs.1,92,00,890/-
On Capital Goods Rs. 76,19,585/-
This amount was shownunder the head loans & advances
16. The Figures of the previous years has been regrouped and
rearranged wherever necessary to make them comparative with previous
year figures.
17. The Company has agreed to take on lease the property for 99 years
at Mumbai on 01.06.2005.As per the terms of the agreement the company
has not got the registered lease deed executed so far. The Company has
taken the possession and amount paid has been shown in fixed assets and
depreciation on it has been charged.
18. The amount of interest receivable from debtors has not been
ascertained.
19. Consequent to the accounting standard for Deferred Tax the company
has created total Deferred Tax Assets /(Liability) of Rs.9798083/-for
the year ended 31st March 2010.
20. The information in regards to SSI Units has been compiled in
respect of parties to the extent to which they could be identified as
SSI Units on the basis of information available with the company.
21. Thecompany has made sales of Alu. Foil Stock/Wire Rod/Ingots
&Grannual, The sales amount has been shown as consumption of traded
goods & profit made on sale of these items has not been shown
separately. The figure of consumption has been separately stated.
22. Bank balances are subject to bank reconciliations.
23. The Company has not received TDS Certificate of Rs 33080/- from
various parties.
24. Unpaid dividend of Rs.11,33,500/- has not been deposited with the
Scheduled Bank in Unpaid Dividend Account as per sec 205 (A) (1) of
companies act 1956, since the matter is pending before the high court.
25. There is no agriculture produce from the Agriculture land.
26. Since the Company dose not have any subsidiary therefore AS21,23
and 27 are not applicable.
27. Plant & Machinery Unit III (Holland Plant) has been installed and
commenced on 21.09.2009 as per the certificate provided by the
Chartered Engineer.
28. The Company has sold plant & Machinery of Rs1400000 above the
original cost of assets of Rs 1362624/-, Excess amount i.e Rs 37376/-
has been creditto capita! reserve account.
29. Foreign Exchange gain of Rs 2,15,98,376/-includes foreign exchange
gain/loss in respect of purchase, Sales and buyerCredit.
30. SEGMENT REPORTING
Based on the guiding principles given in the Accounting Standard on
Segmental Reporting (AS-17) issued by the Institute of Chartered
Accountants of India the Company is single segment company engaged in
the business of manufacture and sale of Aluminium foil in its various
form, as the company operates in a single primary segment, disclosure
requirement it not applicable. Financial information about the primary
segment Aluminium business is presented in the table given below:
31. RELATED PARTY DISLOSURE AS PER ACCOUNTING STANDARD 18. A. LIST OF
RELATED PARTIES:
a. Key Managerial Personals
01. ShriPankajPShah Managing Director
02. ShriAbhayPShah WholeTime Director
03. ShriSahilPShah Director
b. Related Parties with whom transactions have been taken place.
1 Prem Cables Private Limited
2. Miracle Carriers & TradingCompany
3. Prem Nagar Industrial Estates Pvt. Ltd.
4. Pipalia Engineering Works Pvt. Ltd.
5. Pipalia Cables & Wi res Pvt. Ltd
6. Miracle Foils Pvt. Ltd.