Mar 31, 2014
A) Contingent liabilities and commitments (to the extent not provided
for)
2013-14 2012-13
(i) Contingent Liabilities
(a) Claims against the company not
acknowledged as debt
Disputed Provident Fund Damages and Interest 1,812,684.00 1,812,684.00
Disputed power charges demand from KSEB 7,500,000.00 7,500,000.00
Disputed ESI Dues 380,000.00 380,000.00
Disputed demand from Karnataka state 253,000.00 253,000.00
sales tax Dept
Disputed demand from Kerala state 7,800,000.00 19,636,000.00
sales tax Dept
Disputed Excise duty liability 1,802,599.00 1,802,599.00
(b) Guarantees
Guarantees Issued by Bankers on behalf 2,558,000.00 2,558,000.00
of the company
22,106,283.00 33,942,283.00
2. The difference aroused between the taxable income and accounting
income is in permanent nature and will result in deferred tax asset,
but there is no virtual certainty of taxable income in the near future
of the Company. So the Company has not provided in the books of account
the effect of deferred tax as per the norms and provisions of
Accounting Standard  22 " Taxes on Income" issued by the Institute of
Chartered Accountants of India.
3. Regarding the Assessment Year 2004-05 the appeal filed by the
Company before the Income Tax Appellate Tribunal has been partly
allowed, but the order giving effect to this order has not yet been
passed by the department. The Company intends to take up the matter
before the Honorable High Court of Kerala.
4. Out of the total extent of land measuring 99.92 acres purchased at
Ulundurpet, 54 acres of land come under Urban Land Ceiling Act. The
application for exemption from Land ceiling is pending before the
Government the clearance for the land admeasuring 99.92 Acres has not
been granted by Pollution Control Board because of the stretch of land
falling within one kilometer from the banks of the river. In the light
of the land ceiling act, the possibilities for disposal of lands
possess difficult. In absence of reasonable marketable value, the
increase or decrease in the value of the land is not ascertainable.
5. The company reference application to BIFR as a sick industrial
Company stands registered on case No.101/2005 dt.28.03.2005.BIFR has
appointed Bank of Baroda, as the Operating Agency. The Company has
submitted a revival proposal to the Bank Baroda.
6. The Maintenance expenditures of the closed units are charged to
revenue.
7. Balances of debtors, creditors, loans and advances and banks/
financial institutions are subject to confirmation / reconciliation by
the parties.
8. Company does not possess full information as to, which of its
suppliers are small scales industrial undertakings holding permanent
registration certificate issued by the relevant authorities.
9. The operations of the company relate only to one segment viz.,
manufacture and sale of chemicals
10. In the absent of realizable value of assets of the company, the
decrease or increase in value of assets has not been quantified. Hence
the impairment of assets has not been quantified. Hence the impairment
of assets could not be ascertained
11. The balance under deposits made by the company with different
authorities and various other parties were not confirmed as on 31st
March 2014. The following are the details.
Mar 31, 2013
1. There is a reversal Deferred Tax during the year and the deferred
tax liability has been reduced to the extent of liability as on
01-04-2012.Entire difference arise because of reversal of timing
(Liability) difference of Rs.23,11,034/- But the company has not
recognized deferred tax asset.
2. (a) The appeal petition filed in the Honorable Supreme Court of
India regarding the disputed tax demand for the financial year 1995-96
and 1996-97 has been rejected by the Court because of time bar in
filing the appeal. The actual demand was Rs.17.56 Lakhs and the same
was paid before filing the appeal under the CIT (Appeal). But the
demand comes to Rs. 1,17, 82,988/- as per the Income Tax dept. website
as on 31-03-2013 including interest. The same was provided as provision
for taxation as extraordinary item in the financial statement.
b) Regarding the Assessment Year 2004-05 the appeal filed by the
Company before the Income Tax Appellate Tribunal has been partly
allowed, but the order giving effect to this order has not yet been
passed by the department. The Company intends to take up the matter
before the Honorable High Court of Kerala.
3. Out of the total extent of land measuring 99.92 acres purchased at
Ulundurpet, 54 acres of land come under Urban Land Ceiling Act. The
application for exemption from Land ceiling is pending before the
Government the clearance for the land admeasuring 99.92 Acres has not
been granted by Pollution Control Board because of the stretch of land
falling within one kilometer from the banks of the river. In the light
of the land ceiling act, the possibilities for disposal of lands
possess difficult. In absence of reasonable marketable value, the
increase or decrease in the value of the land is not ascertainable.
4. The company reference application to BIFR as a sick industrial
Company stands registered on case No.101/2005 dt.28.03.2005.BIFR has
appointed Bank of Baroda, as the Operating Agency. The Company has
submitted a revival proposal to the Bank Baroda.
5. The Maintenance expenditures of the closed units are charged to
revenue.
6. Balances of debtors, creditors, loans and advances and banks/
financial institutions are subject to confirmation / reconciliation by
the parties.
7. Company does not possess full information as to, which of its
suppliers are small scales industrial undertakings holding permanent
registration certificate issued by the relevant authorities.
8. The operations of the company relate only to one segment viz.,
manufacture and sale of chemicals
9. In the absent of realizable value of assets of the company, the
decrease or increase in value of assets has not been quantified. Hence
the impairment of assets has not been quantified. Hence the impairment
of assets could not be ascertained
10. The balance under deposits made by the company with different
authorities and various other parties were not confirmed as on 31st
March 2013. The following are the details.
Mar 31, 2012
A) Where in respect of an issue of securities made for a specific
purpose, the whole or part of the amount has not been used for the
specific purpose at the balance sheet date, Indicate below how such
unutilized amounts have been used or invested.
b) In the opinion of the Board, all assets other than fixed assets and
non current investments, have a realisable value in the ordinary course
of business which is not different from the amount at which it is
stated, except as stated below:
1. There is a reversal Deferred Tax during the year and the deferred
tax liability has been reduced to the effect as on 31.03.2012.Entire
difference arise because of reversal of timing (Liability) difference
of Rs.23, 94,175/-
2. (a) The income tax assessment have been completed up to the
accounting year 2003- 2004. As between the financial period ended
31.03.1996 and 31.03.1997, there is a net demand of Rs.17.56 lakhs,
which has already been paid .However, the disputed tax is disclosed as
a Contingent Liability .The appeal filed by the Company in the
Honourable High Court of Kerala has been dismissed. But the orders
giving effect to the said Court Order has not yet been passed by the
department. The Company is in the process of taking up the matter
before the Honourable Supreme Court of India.
b) Regarding the Assessment Year 2004-05 the appeal filed by the
Company before the Income Tax Appellate Tribunal has been partly
allowed, but the order giving effect to this order has not yet been
passed by the department. The Company intends to take up the matter
before the Honourable High Court of Kerala.
3. Out of the total extent of land measuring 99.92 acres purchased at
Ulundurpet, 54 acres of land come under Urban Land Ceiling Act. The
application for exemption from Land ceiling is pending before the
Government the clearance for the land admeasuring 99.92 Acres has not
been granted by Pollution Control Board because of the stretch of land
falling within one kilometer from the banks of the river. In the light
of the land ceiling act, the possibilities for disposal of lands
possess difficult. In absence of reasonable marketable value, the
increase or decrease in the value of the land is not ascertainable.
4. The company reference application to BIFR as a sick industrial
Company stands registered on case No.101/2005 dt.28.03.2005.BIFR has
appointed Bank of Baroda, as the Operating Agency. The Company has
submitted a revival proposal to the Bank Baroda.
5. The Maintenance expenditures of the closed units are charged to
revenue.
6. Balances of debtors, creditors, loans and advances and banks/
financial institutions are subject to confirmation / reconciliation by
the parties.
7. Company does not possess full information as to, which of its
suppliers are small scales industrial undertakings holding permanent
registration certificate issued by the relevant authorities.
8. The operations of the company relate only to one segment viz.,
manufacture and sale of chemicals
9. In the absent of realizable value of assets of the company, the
decrease or increase in value of assets has not been quantified. Hence
the impairment of assets has not been quantified. Hence the impairment
of assets could not be ascertained
Mar 31, 2010
1. There is a reversal Deferred Tax during the year and the deferred
tax liability has been reduced to the effect as on 31.03.2010.Entire
difference arise because of reversal of timing (Liability) difference
of Rs.26, 46,954/-
2. (a) The income tax assessment has been completed up to the
accounting year 2003- 2004.
As between the financial period ended 31.03.1996 and 31.03.1997, there
is a net demand of Rs. 17.56 lakhs .which has already been paid
However ,the disputed
tax is disclosed as a Contingent Liability .The appeal filed by the
company before Income Tax Appellate Tribunal is decided against the
Company and the Company is in the process of filing and appeal before
the Honourable High Court of Kerala.
(b) In exercise of Revissionary Powers of the Commissioner of Income
Tax under section 263 of the Income Tax Act, a re- assessment was made
for the assessment year 1997-98 raising a demand of Rs.47.46 Lakhs. The
company filed an appeal against the order of the assessing officer
before the Commissioner of Income Tax(Appeals).The Commissioner
(Appeals ) has made a demand of Rs.34.58Lakhs.The company filed an
appeal against the order of Commissioner (Appeals) before Income Tax
Appellate tribunal. The appeal Challenging the revissionary powers of
the Commissioner of Income Tax under section 263 is also pending before
the Honourble High Court of Kerala.
3. Out of the total extent of land measuring 99.92 acres purchased at
Ulundurpet, 54 acres of land come under Urban Land Ceiling Act. The
application for exemption from Land ceiling is pending before the
Government, the clearance for the land admeasuring 99.92 Acres has not
been granted by Pollution Control Board because of the stretch of land
falling within one kilometer from the banks of the river. In the light
of the land ceiling act, the possibilities for disposal of lands
possess difficult. In absence of reasonable marketable value, the
increase or decrease in the value of the land is not ascertainable.
4. The company reference application to BIFR as a sick industrial
Company stands registered as case No.101/2005 dt.28.03.2005.BIFR has
appointed Bank of Baroda, as the Operating Agency. The Company has
submitted a revival proposal to the Bank of Baroda.
5. The Maintenance expenditures of the closed units are charged to
revenue.
6. Balances of debtors, creditors, loans and advances and banks/
financial institutions are subject to confirmation / reconciliation by
the parties.
7. Company does not possess full information as to, which of its
suppliers are small scales industrial undertakings holding permanent
registration certificate issued by the relevant authorities.
8. The operations of the company relate only to one segment viz.,
manufacture and sale of chemicals
9. In the absent of realizable value of assets of the company, the
decrease or increase in value of assets has not been quantified. Hence
the impairment of assets has not been quantified. Hence the impairment
of assets could not be ascertained
10. Earning per Shares of the company are:-Basic EPS (-8.80) Diluted
EPS (-8.80)
11. The balance under deposits made by the company with different
authorities and various other parties were not confirmed as on 31st
March 2010. The following are the details.
12. Contingent liabilities not provided for:
(Rs.in Lakhs)
31.03.2010 31.03.2009
a Guarantees issued by bankers on behalf
of the 25.58 25.58
Company
b Disputed Income Tax Demand 52.14 52.14
c Disputed Power Charges demand from KSEB not 75.00 208.00
acknowledged as debt by the Company
d Disputed ESI Dues 3.80 Nil
e Disputed demand from Kamataka State Sales
Tax Dept. 2.53 Nil