Mar 31, 2015
1. Corporate information
Western India Shipyard Limited ("the Company") incorporated under the
provision of the Companies Act, 1956. The Company is engaged in the
industrial activities of Shiprepairs and Shipbuilding as it
manufactures a variety of spare parts The Company has the required
infrastructure like a Floating Dry Dock of 60000 DWT capacity, 4 wet
repair berths, heavy duty machine shops, paint/valve and pipe shops,
fabrication yards, portal and mobile cranes, captive gensets,
electrical sub-station, to cater to Indian and foreign vessels like
cargo and passenger vessels, tankers, dredgers, Offshore support
vessels, navy and Coast Guard vessels, trawlers, barges, operating on
the coastal and international sea routes and Jack Up Oil Rigs on East
and West Coast.
2. Basis of preparation Accounting Convention
The Company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention
method as a "Going Concern Concept" and in accordance with Generally
Accepted Accounting Principles in India (Indian GAAP).
3. The Company follows the mercantile system of accounting and
recognizes Income and Expenditure on accrual basis except Medical
Reimbursements, Leave Travel Allowances, Insurance Claims, Ex-gratia and
Scrap Sale which are on cash basis. The accounting policies adopted in
the preparation of financial statements are consistent with those of
previous year.
4. Balances under the head current liabilities, debtors and loans &
advances are subject to confirmation. However, in the opinion of the
management, realizable value of current assets, loans & advances in the
ordinary course of business will not be less than the amount which is
stated in the Balance Sheet.
5. The Company has been granted sales tax exemption by the State
Government, Directorate of Industries and Mines, Government of Goa vide
its letter No. IND/Devi/I M/495/93/3543 dated 19.8.1997 for a period of
12 years w.e.f. 01.01.1996 on ship-repairs. However the Sales Tax
Officer has denied the exemption and has levied sale tax at the
applicable rates on the sales turnover. The Company has filed appeals
before the Commissioner of Commercial Taxes (Appeals), Panjim, against
sales tax liability of Rs. 837.91 lacs for the financial years from
1995-96 upto 2004-05. The Company's second appeal before the
Administrative Tribunal, Panjim in respect of FY 1995-96 has been
remanded back to the Asst. Commissioner of Commercial Taxes, Panjim to
decide the appeal with reasons. The appeals are sub-judice .
6. The Goa Value Added Tax Act, 2005 is applicable to assesses in the
State of Goa w.e.f 2005-06. Hence the Company had obtained registration
and filed its returns for the quarters ended 30.06.2010 and 30.09.2010.
The Company had sought the 75% benefit under the Goa Value Added Tax
Deferment-cum-Net Present Value Compulsory Payment Scheme, 2005 to
which it is entitled. However, the Asst. Commissioner of Commercial
Taxes has denied the benefit of the said scheme and passed assessment
order-cum-demand notice for financial years 2005-06, 2006-07 and
2007-08 for a sum of Rs. 515.78 lacs. The Company has filed appeals
before the Addl. Commissioner of Commercial Taxes, Goa and the appeals
are sub-judice.
7. Disclosures in accordance with Revised Accounting Standard-15 on
"Employee Benefits"
Define Contribution Plans
Defined Benefit Plan
The employees' gratuity fund scheme managed by PNB MetLife Insurance
Co. Pvt. Ltd. is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognised in the same manner as
gratuity.
8. Related Party Disclosures
(A) List of Related parties (as identified and certified by
the Management)
Holding Company ABG Shipyard Limited
Ultimate Holding Company ABG International Pvt. Ltd.
(Holding Company of
ABG Shipyard Limited)
Associate Companies ABG Resources Private Ltd.
Companies over which Directors 1. ABG Shipyard Limited
/relatives are able (Shri. Ashwani Kumar, to exercise
Significant Influence
Shri. Ashok Chitnis and
Shri. S. Muthuswamy
(Common Directors)
2. PFS Shipping (India) Private
Limited (Shri. A.K. Agarwal
(Common Directors)
Key Management Personnel Cdr. Subhash Kumar Mutreja,
Whole Time Director & Chief
Executive Officer
(Till 21.11.2014)
Shri. S. Muthuswamy,
Chief Financial Officer
9. Deferred Tax Asset in accordance with the Accounting Standard - 22
"Accounting for Taxes on Income" has not been recognised even after
availability of unabsorbed depreciation and carried forward losses
under the Income Tax Act as, in the opinion of the management,
sufficient future taxable income will not be available for this
purpose.
10. Contingent Liabilities
2014-15 2013-14
(a) Income Tax Liability:
Income Tax Liability for
financial year 2005-06 for
which the Company 15.95 5.67
has filed appeal before CIT
(Appeals)
(b) Guarantees given by Banks 623.39 492.32
(c) Bonds executed in favour of
Excise Authorities 15.00 15.00
(d) Sales Tax:
Sales Tax liability for the financial
years from 1995-96 to 2004-05 for 837.91 837.91
which the Company has filed appeal &
stay petition against the same.
(e) Value Added Tax (VAT):
Value Added Tax (VAT) liability
for the financial years from 2005-06 515.78 515.78
to 2007-08 for which the Company has
filed appeal & stay petition against
the same.
VAT Assessment for FY 2010-11 for
which the Company is yet to file appeal 39.84 39.84
(f) Service Tax:
Assessed Service Tax Liability for the
financial year 2001-02 to 2003-04. The 712.18 712.18
Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the
Company's appeal on the ground that it
does not render port services being
a registered factory. The Department
has filed an appeal in the High Court
of Bombay, Goa Bench at Panaji. The
Company has contested the appeal.
The appeal has been transferred to the
High court of Bombay at Mumbai to be
heard along with other similar appeals.
(g) Legal Cases pending against the
Company (net of provision) 3929.25 3,368.62
(h) Custom Appeal:
Custom Appeal / show cause notice
for capital goods/spare and build- 868.51 760.12
ing of JUB for which the Company
has filed an appeal.
11. Lease Obligations and Other Commitment
The Company has taken land and water on license from Mormugao Port
Trust (MPT) and license fees amounting to Rs. 623.39 lacs (Previous
year Rs. 467.47 lacs) has been debited to profit and loss account. The
future minimum payment is as under :
Not later than one year 623.39 623.39
Later than one year but less than five years 1,371.46 1,994.85
12. Networth of the Company has been fully eroded due to heavy losses.
During the current year, the operations of the Company were severally
affected due to factors such as non availability of working capital
finance resulting in material & labour issues.Owing to suboptimal level
of activities in the yard, the overhead of the company could not be
absorved resulting into higher losses Net Worth of the company is fully
eroded. However, Management is hopeful to get better results in next
financial year.
13. Dues to Micro, Small and Medium Enterprises
The Company has compiled this information based on the current
information in its possession. As at 31st March 2015, no supplier has
intimated the Company about its status as a Micro or Small Enterprise
or its registration with the appropriate authority under the Micro,
Small and Medium Enterprises Development Act, 2006.
14. Previous year figure has been rearranged / regrouped wherever
considered necessary
Mar 31, 2014
Corporate information
Western India Shipyard Limited ("the Company") incorporated under the
provision of the Companies Act, 1956. The Company is engaged in the
industrial activities of Shiprepairs and Shipbuilding as it
manufactures a variety of spare parts The Company has the required
infrastructure like a Floating Dry Dock of 60000 DWT capacity, 4 wet
repair berths, heavy duty machine shops, paint/valve and pipe shops,
fabrication yards, portal and mobile cranes, captive gensets,
electrical sub-station, to cater to Indian and foreign vessels like
cargo and passenger vessels, tankers, dredgers, Offshore support
vessels, navy and Coast Guard vessels, trawlers, barges, operating on
the coastal and international sea routes and Jack Up Oil Rigs on East
and West Coast.
1. SHARE CAPITAL
1.1. 19,65,82,990/- (PY : 19,65,82,990) Equity Shares out of the
issued, subscribed and paid up share capital were alloted on conversion
/ surrender of Debentures and conversion of Term Loans in earlier
years.
1.2. 17,44,48,852 (PY: 17,70,01,303) Equity Shares out of the issued,
subscribed and paid up capital held by ABG Shipyard ltd holding 59 21%
(PV 60 07%) of the paid up capital
2. LONG-TERM BORROWINGS
2.1. Payment of ICICI Term Loan and others (other than IFCI Ltd) are to
be made in 28 equal instalments commencing from 15.01.2012
The above loans are secured by first parri passu legal mortgage/charge
on Fixed Assets of the Company, hypothecation of moveable assets.
2.2. Payment to IFCI is as follows :-
a. Rs. 275.00 Lacs each per quarter commencing from June, 2011 to
March, 2012.
b. Rs. 412.50 Lacs each per quarter commencing from June, 2012 to
March, 2013.
c. Rs. 687.50 Lacs each per quarter commencing from June, 2013 to
March, 2014.
The above Loan is secured by a Corporate Guarantee Facility given by
ABG International Pvt. Ltd. and pledge of Equity Shares of ABG Shipyard
Limited and Deed of Hypothecation of parripassu charge on immovable and
moveable assets of the Company, both present and future.
2.3. Convertible Zero Coupon Loan (CZC Loan)
In terms of the Scheme, the CZC Loan is interest free. The same to be
converted into Equity Shares of the Company, in accordance with
applicable law and pricing regulations, at the option of the lenders
commencing from second anniversary of the effective date namely,
28.01.2012 and ending on the day preceeding the seventh anniversary of
the effective date. To the extent that the loan has not been converted
into equity shares, the same shall be convertible compulsorily on the
seventh anniversary of the effective date namely, 28.01.2017. Upto the
period ended 31.03.2014, the company has not received any letter
exercising the option from the secured lenders for conversion of the
said loans or part thereof into Equity shares.
2.4. During the financial year 2012-13, IFCI has recalled entire loan
outstanding principal along with interest of Rs. 4624.11 Lacs on
December 20, 2012. The Company has so far paid Rs. 3834.11 lacs and
balance of Rs. 790.00 lacs is outstanding.
3. SHORT-TERM BORROWINGS
Secured
3.1. The above Short Term Borrowings are Secured as floating charge on
Current Assets of the Company includ- ing but not limited to Stock of
raw materials, Work In Progress, Consumables, Stocks, Spares, Book
Debts, Bills wherever situated, documents both present and future and
Corporate Guarantee of ABG Shipyard Limited for Rs. 33.60 Crores.
4. OTHER NON CURRENT ASSETS
4.1 Long Term Trade Receivable includes Rs. 2394.16 Lac (PY Rs.
1831.63 Lac) recoverable from PFS Shipping (India) Ltd, associate of
Holding Company.
5. SHORT TERM LOANS AND ADVANCES
5.1 The Company has paid Rs. 1310.42 Lac (PY Rs. 1233.94 Lac) to ABG
Resources Private Ltd, an associate of Holding Company against future
Services to be undertaken by Company. Out of the above Rs. 1200.00 lacs
(PY- Rs. 1200.00 lacs) kept as Security Deposit
6. Balances under the head current liabilities, debtors and loans &
advances are subject to confirmation. However, in the opinion of the
management, realizable value of current assets, loans & advances in the
ordinary course of business will not be less than the amount which is
stated in the Balance Sheet.
7. The Company has been granted sales tax exemption by the State
Government, Directorate of Industries and Mines, Government of Goa vide
its letter No. IND/Devi/I M/495/93/3543 dated 19.8.1997 for a period of
12 years w.e.f. 01.01.1996 on ship-repairs. However the Sales Tax
Officer has denied the exemption and has levied sale tax at the
applicable rates on the sales turnover. The Company has filed appeals
before the Commissioner of Commercial Taxes (Appeals), Panjim, against
sales tax liability of Rs. 837.91 lacs for the financial years from
1995-96 upto 2004-05. The Company''s second appeal before the
Administrative Tribunal, Panjim in respect of FY 1995-96 has been
remanded back to the Asst. Commissioner of Commercial Taxes, Panjim to
decide the appeal with reasons. The appeals are sub-judice.
The Goa Value Added Tax Act, 2005 is applicable to assesses in the
State of Goa w.e.f 2005-06. Hence the Company had obtained registration
and filed its returns for the quarters ended 30.06.2010 and 30.09.2010.
The Company had sought the 75% benefit under the Goa Value Added Tax
Deferment-cum-Net Present Value Compulsory Payment Scheme, 2005 to
which it is entitled. However, the Asst. Commissioner of Commercial
Taxes has denied the benefit of the said scheme and passed assessment
order-cum-demand notice for financial years 2005-06, 2006-07 and
2007-08 for a sum of Rs. 515.78 lacs. The Company has filed appeals
before the Addl. Commissioner of Commercial Taxes, Goa and the appeals
are sub-judice.
8. Disclosures in accordance with Revised Accounting Standard-15 on
"Employee Benefits"
Defined Benefit Plan
The employees'' gratuity fund scheme managed by PNB MetLife Insurance
Co. Pvt. Ltd. is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognised in the same manner as
gratuity.
9. Acturial Assumptions
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors. including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors., mainly the composition of Plan assets
held, assessed risks, historical results of return on plan assets and
the Company''s policy for plan assets management.
10. Deferred Tax Asset in accordance with the Accounting Standard - 22
"Accounting for Taxes on Income" has not been recognised even after
availability of unabsorbed depreciation and carried forward losses
under the Income Tax Act as, in the opinion of the management,
sufficient future taxable income will not be available for this
purpose.
11. Contingent Liabilities
2013-14 2012-13
(a) Income Tax Liability:
Income Tax Liability for
financial year 2005-06 for which
the Company has filed appeal
before CIT (Appeals) 5.67 5.67
(b) Guarantees given by Banks 492.32 456.04
(c) Bonds executed in favour
of Excise Authorities 15.00 15.00
(d) Sales Tax:
Sales Tax liability for the financial
years from 1995-96 to 2004-05 for which
the Company has filed appeal & stay
petition against the same. 837.91 837.91
(e) Value Added Tax (VAT):
Value Added Tax (VAT) liability for the
financial years from 2005-06 to 2007-08
for which the Company has filed appeal &
stay petition against the same. 515.78 515.78
VAT Assessment for FY 2010-11 for
which the Company is yet to file appeal 39.84 -
(f) Service Tax:
Assessed Service Tax Liability for
the financial year 2001-02 to 2003-04.
The Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the Company''s
appeal on the ground that it does not
render port services being a registered
factory. The Department has filed an appeal
in the High Court of Bombay, Goa Bench at
Panaji. The Company has contested the appeal.
The appeal has been transferred to the High
court of Bombay at Mumbai to be heard along
with other similar appeals. 712.18 712.18
(g) Legal Cases pending against the
Company (net of provision) 3,368.62 6,959.64
(h) Custom Appeal:
Custom Appeal / show cause notice
for capital goods/spare and building of
JUB is Rs. 760.12 lacs for which the
Company is filed an appeal. 760.12 760.12
12. Networth of the Company has been fully eroded during the current
financial year due to heavy losses. It is primarily due to the bad
market and economic scenario of the Country for which orders were not
being floated by the Ship / Vessel Owners. The management of the
Company is quite hopeful to get orders in the coming years and there
will be an improvement in profit. This will not make any impact on
going concern as the management is trying for collection of receivables
so that currents payments can be made.
13. During the current year, IFCI has sold certain mortgaged shares
belonging to ABG Shipyard Limited and adjusted against outstanding loan
of the Company. In the absence of any information from IFCI Limited,
average selling price has been considered on sale of shares.
Confirmation regarding outstanding loan is awaited from IFCI Limited.
14. During the current year, the Company has made settlement with Oil
and Natural Gas Commission (ONGC) in line with the Arbitration Award.
Accordingly, bad debts amounting to Rs. 424.66 lacs has been charged to
revenue.
15. Dues to Micro, Small and Medium Enterprises
The Company has compiled this information based on the current
information in its possession. As at 31st March 2014, no supplier has
intimated the Company about its status as a Micro or Small Enterprise
or its registration with the appropriate authority under the Micro,
Small and Medium Enterprises Development Act, 2006.
16. Previous year figure has been rearranged / regrouped wherever
considered necessary.
Mar 31, 2013
1. Corporate information
Western India Shipyard Limited ("the Company") incorporated under the
provision of the Companies Act, 1956. The Company is engaged in the
industrial activities of Shiprepairs and Shipbuilding as it
manufactures a variety of spare parts The Company has the required
infrastructure like a Floating Dry Dock of 60000 DWT capacity, 4 wet
repair berths, heavy duty machine shops, paint/valve and pipe shops,
fabrication yards, portal and mobile cranes, captive gensets,
electrical sub-station, to cater to Indian and foreign vessels like
cargo and passenger vessels, tankers, dredgers, Offshore support
vessels, navy and Coast Guard vessels, trawlers, barges, operating on
the coastal and international sea routes and Jack Up Oil Rigs on East
and West Coast.
2. Basis of preparation
Accounting Convention :
The Company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention
method as a "Going Concern Concept" and in accordance with Generally
Accepted Accounting Principles in India (Indian GAAP).
The Company follows the mercantile system of accounting and recognizes
Income and Expenditure on accrual basis except Medical Reimbursements,
Leave Travel Allowances, Insurance Claims, Ex-gratia and Scrap Sale
which are on cash basis. The accounting policies adopted in the
preparation of financial statements are consistent with those of
previous year.
1. Revenue is being recognized as per percentage completion contract
method. However inthe previous year, sales have been shown as per
invoices raised and balance shown as work in progress. In the current
year, Previous year figure has been reclassified to conform to the
current year results.
2. Balances under the head current liabilities, debtors and loans &
advances are subject to confirmation. However, in the opinion of the
management, realizable value of current assets, loans & advances in the
ordinary course of business will not be less than the amount which is
stated in the Balance Sheet.
3. The Company has been granted sales tax exemption by the State
Government, Directorate of Industries and Mines, Government of Goa vide
its letter No. IND/Devi/I M/495/93/3543 dated 19.8.1997 for a period of
12 years w.e.f. 01.01.1996 on ship-repairs. However the Sales Tax
Officer has denied the exemption and has levied sale tax at the
applicable rates on the sales turnover. The Company has filed appeals
before the Commissioner of Commercial Taxes (Appeals), Panjim, against
sales tax liability of Rs. 837.91 lacs for the financial years from
1995-96 upto 2004-05. The Company''s second appeal before the
Administrative Tribunal, Panjim in respect of FY 1995-96 has been
remanded back to the Asst. Commissioner of Commercial Taxes, Panjim to
decide the appeal with reasons. The appeals are sub-judice.
The Goa Value Added Tax Act, 2005 is applicable to assesses in the
State of Goa w.e.f 2005-06. Hence the
Company had obtained registration and filed its returns for the
quarters ended 30.06.2010 and 30.09.2010. The Company had sought the
75% benefit under the Goa Value Added Tax DefermentÂcum-Net Present
Value Compulsory Payment Scheme, 2005 to which it is entitled. However,
the Asst. Commissioner of Commercial Taxes has denied the benefit of
the said scheme and passed assessment orderÂcum-demand notice for
financial years 2005-06, 2006-07 and 2007-08 for a sum of Rs. 515.78
lacs. The Company has filed appeals before the Addl. Commissioner of
Commercial Taxes, Goa and the appeals are sub-judice.
4. The Company has made representation before the Ministry of Shipping
for refund of advance made to Mormugao Port Trust in earlier years. The
Company representation along with officials from Ministry of Shipping
and Mormugao Port Trust concluded for the recovery of Rs.3,30,84,835
and interest Rs.3,92,15,163. Accordingly balance receivable on account
of interest has shown as ''Interest on Other'' under head ''Other Income''.
5. In the arbitration proceeding with Dredging Corporation of India,
award was passed in the year 2004 and remained unexecuted. In the
current year, Dredging Corporation of India executed the same and
recovered the amount along with interest, which has been shown as
''Customer Claim'' under head ''Other Expenses''.
6. The Company has taken land and water on license from Mormugao Port
Trust (MPT) and license fees amounting to Rs. 428.91lacs (Previous year
Rs. 416.05lacs) has been debited to profit and loss account. The future
minimum payment is as under :
Deferred Tax Asset in accordance with the Accounting Standard  22
"Accounting for Taxes on Income" has not been recognised even after
availability of unabsorbed depreciation and carried forward losses
under the Income Tax Act as, in the opinion of the management,
sufficient future taxable income will not be available for this
purpose.
7. Related Party Disclosure:- A. Related Parties Disclosure as per
Accounting Standard (AS) - 18 :- Holding Company ABG Shipyard Limited
Ultimate Holding Company
ABG International Pvt. Ltd. (Holding Company of ABG Shipyard Limited)
Associate Companies
ABG Resources Private Ltd. PFS Shipping (India) Ltd.
Companies over which Directors/relatives are able to exercise
Significant Influence
ABG Shipyard Limited
(Shri. Ashwani Kumar and Shri. Ashok Chitnis
(Common Directors)
Key Management Personnel
Cdr. Subhash Kumar Mutreja (Retd.),
Whole Time Director & Chief Executive Officer
Disclosure in respect of Material Related Party Transactions during the
year:- 1. Revenue from operations includes Rs.2004.94 lacs (Rs.
4397.36 lacs) from ABG Shipyard Ltd
2. Revenue from operations includes Rs. 729.97 lacs (Rs. Nil) from PFS
Shipping (I) Ltd.
3. Service charge Rs. 60.00 lacs (Rs. 60 lacs) to ABG Resources Pvt.
Ltd.
4. Trade advances received Rs. Nil lacs (Rs. 1272.00 lacs) from ABG
Shipyard Ltd.
5. Trade advances received Rs. Nil lacs (Rs. 736.50 lacs) from ABG
Resources Private Ltd
6. Purchase of Fixed Assets includes Rs. Nil (Rs. 177.04 lacs) from
ABG Shipyard Ltd
7. Other loans and advances repaid Rs. 70.00 lacs (Rs. 2431.26 lacs)
to ABG Shipyard Ltd
8. Corporate Guarantee Rs. Nil lacs (Rs. 3360.00 lacs) by ABG
Shipyard Ltd towards short terms borrowings from Bank
Notes:
- Related Parties have been identified by the Management and relied
upon by the Auditors.
- Previous year''s figures are shown in Italics.
8. CONTINGENT LIABILITIES :
- Guarantees given by Banks: Rs. 456.04 lacs (Rs. 483.78 lacs).
- Letters of Credit outstanding: Rs. Nil lacs (Rs. 699.57 lacs).
- Bonds of Rs. 15.00 lacs (Rs.15.00 lacs) executed in favour of Excise
Authorities.
Sales tax liability for the financial years from 1995-96 to 2004-05 is
Rs. 837.91 lacs. The Company has filed appeal & stay petition against
the same.
- Income Tax liability for financial year 2005-06 is Rs. 5.67 lacs.
Value Added Tax (VAT) liability for the financial years from 2005-06 to
2007-08 is Rs. 515.78 lacs. The Company has filed appeal & stay
petition against the same.
Service Tax liability for the financial year 2001-02 to 2003-04 is
assessed at Rs.712.18 lacs. The Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the Company''s appeal on the ground that
it does not render port services being a registered factory. The
Department has filed an appeal in the High Court of Bombay, Goa Bench
at Panaji. The Company has contested the appeal. The appeal has been
transferred to the High court of Bombay at Mumbai to be heard along
with other similar appeals.
- Legal cases pending against the Company (net of provision) is Rs.
6959.64 lacs (Rs. 7391.01 lacs). Custom Appeal / show cause notice for
capital goods/spare and building of JUB is Rs. 760.12 lacs. The Company
is yet to file appeal.
9. COMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account and others and not provided for: i. ABG International Pvt.
Ltd. - Rs. Nil lac (PY Rs. 3500.00 lac) towards procurement of Capital
Equipment. ii. License fees to MPT in terms of License agreement Rs.
2823.54 Lac (PY Rs. 3291.02 lac).
10. Previous year figure has been rearranged / regrouped wherever
considered necessary.
1.1 Payment of ICICI Term Loan and others (other than IFCI Ltd) are to
be made in 28 equal instalments commencing from 15.01.2012 and is
secured by first parri passu legal mortgage/charge on Fixed Assets of
the Company, hypothecation of moveable assets.
1.2 Payment to IFCI is as follows :- a. Rs. 275.00 Lacs each per
quarter commencing from June, 2011 to March , 2012.
b. Rs. 412.50 Lacs each per quarter commencing from June, 2012 to
March, 2013.
c. Rs. 687.50 Lacs each per quarter commencing from June, 2013 to
March, 2014.
The above Loan is secured by a Corporate Guarantee Facility given by
ABG International Pvt. Ltd. and pledge of Equity Shares of ABG Shipyard
Limited and Deed of Hypothecation of parripassu charge on immovable and
moveable assets of the Company, both present and future.
1.3 Convertible Zero Coupon Loan(CZC)
In terms of the Scheme, the CZC Loan is interest free. The same to be
converted into Equity Shares of the Company, in accordance with
applicable law and pricing regulations, at the option of the lenders
commencing from second anniversary of the effective date namely,
28.01.2012 and ending on the day preceeding the seventh anniversary of
the effective date. To the extent that the loan has not been converted
into equity shares, the same shall be convertible compulsorily on the
seventh anniversary of the effective date namely, 28.01.2017. Upto the
period ended 31.03.2013, the company has not received any letter
exercising the option from the secured lenders for conversion of the
said loans or part thereof into Equity shares.
1.4 During the year, IFCI has recalled entire loan outstanding
principal along with interest of Rs. 4624.11 Lacs on December 20, 2012.
The Company has paid Rs. 411.11 lacs before March 31,2013 and Rs.
2476.21 lacs paid subsequently.
2.1 The above Short Term Borrowings are Secured as floating charge on
Current Assets of the Company including but not limited to Stock of raw
materials, Work In Progress, Consumables, Stocks, Spares, Book Debts,
Bills wherever situated, documents both present and future and
Corporate Guarantee of ABG Shipyard Limited for Rs. 33.60 Crores.
3.1 The Company has paid Rs. 1233.94 Lac (PY Rs. 932.50 Lac) to ABG
Resources Private Ltd, an associate of Holding Company against future
Services to be undertaken by Company. Out of the above Rs. 1200.00 lacs
(PY- Rs. 900.00 lacs) kept as Security Deposit
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors. including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors., mainly the composition of Plan assets
held, assessed risks, historical results of return on plan assets and
the Company''s policy for plan assets management.
Mar 31, 2012
1. Corporate information
Western India Shipyard Limited ("the Company") incorporated under
the provision of the Companies Act, 1956. The Company is engaged in
the industrial activities of Shiprepairs and Shipbuilding as it
manufactures a variety of spare parts The Company has the required
infrastructure like a Floating Dry Dock of 60000 DWT capacity, 4 wet
repair berths, heavy duty machine shops, paint/valve and pipe shops,
fabrication yards, portal and mobile cranes, captive gensets,
electrical sub-station, to cater to Indian and foreign vessels like
cargo and passenger vessels, tankers, dredgers, Offshore support
vessels, navy and Coast Guard vessels, trawlers, barges, operating on
the coastal and international sea routes and Jack Up Oil Rigs on East
and West Coast.
2. Basis of preparation Accounting Convention:
The Company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention
method as a "Going Concern Concept" and in accordance with
Generally Accepted Accounting Principles in India (Indian GAAP).
The Company follows the mercantile system of accounting and recognizes
Income and Expenditure on accrual basis except Medical Reimbursements,
Leave Travel Allowances, Insurance Claims, Ex-gratia and Scrap Sale
which are on cash basis. The accounting policies adopted in the
preparation of financial statements are consistent with those of
previous year.
1. Balances under the head current liabilities, debtors and loans &
advances are subject to confirmation. However, in the opinion of the
management, realizable value of current assets, loans & advances in the
ordinary course of business will not be less than the amount which is
stated in the Balance Sheet.
2. The Company has been granted sales tax exemption by the State
Government, Directorate of Industries and Mines, Government of Goa vide
its letter No. IND/Devi/I M/495'93/3543 dated 19.8.1997 for a period of
12 years w.e.f. 01.01.1996 on ship-repairs. However the Sales Tax
Officer has denied the exemption and has levied sale tax at the
applicable rates on the sales turnover. Ti e Company has filed appeals
before the Commissioner of Commercial Taxes (Appeals), Panjim, against
sales tax liability of Rs. 837.91 lacs for the financial years from
1995-96 upto 2004-05. The Company's second appeal before the
Administrative Tribunal, Panjim in respect of FY 1995-96 has been
remanded back to the Asst. Commissioner of Commercial Taxes, Panjim to
decide the appeal with reasons. The appeals are sub-judice.
The Goa Value Added Tax Act, 2005 is applicable to assesses in the
State of Goa w.e.f 2005-06. Hence the Company had obtained registration
and filed its returns for the quarters ended 30.06.2010 and 30.09.2010.
The Company had sought the 75% benefit under the Goa Value Added Tax
Defermentcum-Net Present Value Compulsory Payment Scheme, 2005 to which
it is entitled. However, the Asst. Commissioner of Commercial Taxes has
denied the benefit of the said scheme and passed assessment
ordercum-demand notice for financial years 2005-06, 2006-07 and 2007-08
for a sum of Rs. 515.78 lacs. The Company has filed appeals before the
Addl. Commissioner of Commercial Taxes, Goa and the appeals are
sub-judice.
3. The Company has taken land and water on license from Mormugao Port
Trust (MPT) and license fees amounting to Rs. 416.05 lacs (Previous
year Rs. 351.08 lacs) has been debited to profit and loss account.The
future minimum payment is as under:
Deferred Tax Asset in accordance with the Accounting Standard 22
"Accounting for Taxes on Income" has not been recognised even after
availability of unabsorbed depreciation and carried forward losses
under the Income Tax Act as, in the opinion of the management,
sufficient future taxable income will not be available for this
purpose.
Disclosure in respect of Material Related Party Transactions during the
year
1. Revenue from operations includes Rs. 4397.36 lacs (Rs. 387.55 lacs)
from ABG Shipyard Ltd
2. Service charge Rs. 60.00 lacs (Rs. Nil) to ABG Resources Pvt. Ltd.
3. Trade advances received Rs. 1272.00 lacs (Rs. 7272.00/acs) from ABG
Shipyard Ltd.
4. Trade advances received Rs. 736.50 lacs (Rs. 250.00 lacs) from ABG
Resources Private Ltd
5. Purchase of Fixed Assets includes Rs. 177.04 lacs (Rs. /V/'/) from
ABG Shipyard Ltd
6. Other loans and advances Rs. 2431.26 (Rs. 1323.99 lacs) from ABG
Shipyard Ltd
7. Corporate Guarantee Rs. 3360.00 lacs (Rs. 5500.00 lacs) by ABG
Shipyard Ltd towards short terms borrowings from Bank
Notes:
i) Related Parties have been identified by the Management and relied
upon by the Auditors.
ii) Previous year's figures are shown in Italics.
iii) The Whole Time Director & CEO has been re-appointed for a period
of three (3) years w.e.f. 17.07.2010 and same has been approved by the
Ministry of Corporate Affairs (MCA). His remuneration has been
increased by a special resolution passed by the shareholders at the
19th AGM of the Company. The approval for the increase is pending
before the MCA.
4. CONTINGENT LIABILITIES:
i) Guarantees given by Banks: Rs. 483.78 lacs (Rs. 398.25 lacs).
ii) Letters of Credit outstanding: Rs. 699.57 lacs (Rs. 29.38 Lacs).
iii) Bonds of Rs. 15.00 lacs (Rs. 15.00 lacs) executed in favour of
Excise Authorities.
iv) Sales tax liability for the financial years from 1995-96 to 2004-05
is Rs. 837.91 lacs. The Company has filed appeal & stay petition
against the same.
v) Value Added Tax (VAT) liability for the financial years from 2005-06
to 2007-08 is Rs. 515.78 lacs. The Company has filed appeal & stay
petition against the same.
vi) Service Tax liability for the financial year 2001-02 to 2003-04 is
assessed at Rs.712.18 lacs. The Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the Company's appeal on the ground that
it does not render port services being a registered factory. The
Department has filed an appeal in the High Court of Bombay, Goa Bench
at Panaji. The Company has contested the appeal. The appeal has been
transferred to the High court of Bombay at Mumbai to be heard along
with other similar appeals.
vii) Legal cases pending against the Company (net of provision) is Rs.
7391.01 lacs (Rs. 6929.06 lacs).
5. COMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account and others and not provided for:
i. ABG International Pvt. Ltd. Rs. 3500.00 lac (PY Rs. 3500.00 lac)
towards procurement of Capital Equipment.
ii. License fees to MPT in terms of License agreement Rs. 3291.02 Lac
(PY Rs. 2928.99 lacs).
6. Till the year ended 31 March 2011, the Company was using
pre-revised Schedule VI to the Companies Act 1956, for preparation and
presentation of its financial statements. During the year ended 31
March 2012, the revised Schedule VI notified under the Companies Act
1956, has become applicable to the Company. The Company has
reclassified previous year figures to conform to this year's
classification.
1.1 29,65,82,990/- (PY: 29,65,82,990) Equity Shares out of the issued,
subscribed and paid up share capital were alloted on
conversion/surrender of Debentures and conversion of Term Loans in
earlier years.
1.2 17,72,42,785 (PY: 17,72,42,785) Equity Shares out of the issued,
subscribed and paid up capital held by ABG Shipyard Ltd, holding 60.15%
(PY: 60.15%) of the paid up capital
2.1 Payment of ICICI Term Loan and others, (other than IFCI Ltd) are to
be made in 28 equal instalments commencing from 15.01.2012 and is
secured by first parri passu legal mortgage/charge on Fixed Assets of
the Company, hypothecation of moveable assets.
2.2 Payment to IFCI is as follows
a. Rs. 275.00 Lacs each per quarter commencing from June, 2011 to
March ,2012.
b. Rs. 412.50 Lacs each per quarter commencing from June, 2012 to
March, 2013.
c. Rs. 412.50 Lacs each per quarter commencing from June, 2013 to
March, 2014.
The above Loan is secured by a Corporate Guarantee Facility and pledge
Equity Shares of ABG Shipyard Limited and Deed of Hypothecation of
parripassu charge on immovable and moveable assets of the Company, both
present and future.
2.3 Loan from Shareholders represents Loan taken from ABG Shipyard
Limited and interest free. The same is being kept as per terms and
conditions laid down in "Scheme of Compromise and arrangement with
Secured Lenders and Shareholders.
2.4 Convertible Zero Coupon Loan(CZC)
In terms of the Scheme, the CZC Loan is interest free. The same to be
converted into Equity Shares of the Company, in accordance with
applicable law and pricing regulations, at the option of the lenders
commencing from second anniversary of the effective date namely,
28.01.2012 and ending on the day preceding the seventh anniversary of
the effective date. To the extent that the loan has not been converted
into equity shares, the same shall be convertible compulsorily on the
seventh anniversary of the effective date namely, 28.01.2017. Upto the
period ended 31.03.2012, the company has not received any option from
the secured lenders for conversion of the said loans or part thereof
into Equity shares.
3.1 The above Short Term Borrowings are Secured as floating charge on
Current Assets of the Company including but not limited to Stock of raw
materials, Work In Progress, Consumables, Stocks, Spares, Book Debts,
Bills wherever situated, documents both present and future and
Corporate Guarantee of ABG Shipyard Limited for Rs. 33.60 Crores.
3.2 Cash Credit from Bank represents Rs. 1701.18 Lacs (PY Rs. Nil)
taken from ICICI Bank Ltd against Sanctioned Limit of Rs. 1500.00 Lacs
11.1 Loans and advances include a sum of Rs. 575.63 Lacs (Rs. 575.63
Lacs) due from certain companies under escrow agreements against which
the original certificates for 84,69,711 equity shares of the face value
of Rs. 21- aggregating to Rs. 169.39 Lacs had been deposited as
security by such companies for repayment of advances. The market value
of these shares as on 31.03.2012 is Rs. 569.16 Lacs based on the
closing price of Rs. 6.72 per equity share of the face value of Rs. 21-
each fully paid up listed on the Bombay Stock Exchange Limited.
4.1 Fixed Deposits with Banks include Rs. 33.00 Lac (PY Rs. 33.00 Lac)
with Maturity more than twelve months
The employees' gratuity fund scheme managed by MetLife Insurance Co.
Pvt. Ltd. is a defined benefit plan. The present value of obligation
is determined based on actuarial valuation using the Projected Unit
Credit Method, which recognises each period of service as giving rise
to additional unit of employee benefit entitlement and measures each
unit separately to build up the final obligation. The obligation for
leave encashment is recognised in the same manner as gratuity.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors, including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors., mainly the composition of Plan assets
held, assessed risks, historical results of return on plan assets and
the Company's policy for plan assets management.
6.1 The Company announced a Voluntary Separation Scheme (VSS) for the
employees during the year. A sum of Rs.1,70,5131- (PY Rs. 2,14,434/-)
has been paid during the year and debited to Statement of Profit and
Loss under the head "Employee Benefits Expenses.
Mar 31, 2011
1. Scheme of Arrangement & Compromise
During FY 2009-10, the Company has implemented Scheme of Arrangement
and Compromise with its secured creditors ("Scheme") as per the
sanction received from the High Court of Bombay, Goa Bench by order
dated 15.01.2010. The scheme became effective on fling of the Court
order with the Registrar of Companies on 28.01.2010 ("Effective Date").
Accordingly, all secured loans have either been restructured as per
Option ÃI or full & final settlement made as per Option ÃII. Effect on
account of the same has been accounted for in the books of account.
Principal waiver has been charged to Capital Reserve Account and waiver
of interest has been transferred to Revenue Account.
2. (a) Secured Loan
i) Convertible Zero Coupon Loan
In terms of the Scheme, the CZC Loan is interest free. The same to be
converted into equity shares of the Company, in accordance with
applicable law and pricing regulations, at the option of the lenders
commencing from second anniversary of the effective date namely,
28.01.2012 and ending on the day preceding the seventh anniversary of
the effective date. To the extent that the loan has not been converted
into equity shares, the same shall be convertible compulsorily on the
seventh anniversary of the effective date namely, 28.01.2017.
ii) Term Loan
ICICI Bank Ltd: Payable in 28 equal quarterly installments starting
from 15.01.2012.
IFCI Loan : Payable in 12 quarterly installments as under :-
a. Rs. 2.75 crs each per quarter commencing from 15th month upto 24th
month from the date of disbursement
b. Rs. 4.125 crs each per quarter commencing from 27th month upto 36th
month from the date of disbursement
c. Rs. 6.875 crs each per quarter commencing from 39th month upto 48th
month from the date of disbursement
(b) Unsecured Loan
Unsecured Loan represent interest free loan received from ABG Shipyard
Ltd., Holding Company, in terms of the Scheme.
3. i) Balances under the head current liabilities, debtors and loans &
advances are subject to confrmation.
However, in the opinion of the management, realizable value of current
assets, loans & advances in the ordinary course of business will not be
less than the amount which is stated in the Balance Sheet.
ii) Loans and advances include a sum of Rs. 575.63 lacs (Rs.
575.63lacs) due from certain companies under escrow agreements against
which the original share certificates for 84,69,710 equity shares of the
face value of Rs. 2/-aggregating to Rs. 169.39 lacs had been deposited
as security by such companies for repayment of advances. The market
value of these shares as 31.03.2011 is Rs. 859.68 lacs based on the
closing price of Rs. 10.15 per equity share of the face value of Rs.
2/- each fully paid up listed on the Bombay Stock Exchange Limited.
iii) The Company deposits amounting to Rs.91.23 lacs (Rs.123.95 lacs)
are kept in lien with the Banks towards margin money etc. for Bank
Guarantees and Overdrafts.
4. i) The Company has been granted sales tax exemption by the State
Government, Directorate of Industries and Mines, Government of Goa vide
its letter No. IND/Devi/I M/495/93/3543 dated 19.08.1997 for a period
of 12 years w.e.f. 01.01.1996 on ship-repairs. However the Sales Tax
Officer has denied the exemption and has levied sale tax at the
applicable rates on the sales turnover. The Company has fled appeals
before the Commissioner of Commercial Taxes (Appeals), Panjim, against
sales tax liability of Rs. 837.91 lacs for the financial years from
1995-96 upto 2004-05. The appeal for 1995-96 has been rejected. The
Company has fled a second appeal before the Administrative Tribunal.
The appeals are sub-judice.
ii) The Goa Value Added Tax Act, 2005 is applicable to assessees in the
State of Goa w.e.f 2005-06. Hence the Company had obtained registration
and fled its returns forthe quarters ended 30.06.2010 and 30.09.2010.
The Company had sought the 75% benefit under the Goa Value Added Tax
Deferment-cum-Net Present Value Compulsory Payment Scheme, 2005 to
which it is entitled. However, the Asst. Commissioner of Commercial
Taxes has denied the benefit of the said scheme and passed assessment
order-cum-demand notice for financial years 2005-06, 2006-07 and 2007-08
for a sum of Rs. 515.78 lacs. The Company has fled appeals before the
Addl. Commissioner of Commercial Taxes, Goa and the appeals are
sub-judice.
5. Employee Benefits:
a) Defined Contribution Plans - Provident Fund:
The contribution made by employer and employee, together with interest,
are payable at the time of separation from service or retirement,
whichever is earlier.
b) Defined Benefit Plans - Gratuity:
The Company makes annual contribution to the Employees' Group
Gratuity-cum-Life Assurance Scheme of Metlife Insurance Co. Ltd., a
funded defined benefit plan for qualifying employees. Gratuity is
payable to all eligible employees on death or on separation/termination
in terms of the provisions of the Payment of Gratuity (Amendment) Act,
1997 or as per the Company's scheme whichever is more beneficial to the
employees.
c) Basis Used to Determine Expected Rate of Return on Assets
The expected return on plan assets of 8% has been considered based on
the current investment pattern in Government securities.
d) Amounts Recognized as Expense
i) Defined Contribution Plan
Employer's Contribution to Provident Fund amounting to Rs. 64,01,083/-
has been included in Schedule -11 under Contribution to Provident and
Other Funds.
6. i) The Company is having one Segment i.e. Ship Repair Activities.
Hence, separate segment reporting as required under Accounting Standard
-17 is not applicable during the current year.
iii) Deferred Tax Asset in accordance with the Accounting Standard - 22
"Accounting for Taxes on Income" has not been recognised even after
availability of unabsorbed depreciation and carried forward losses
under the Income Tax Act as, in the opinion of the management,
sufficient future taxable income will not be available for this purpose.
7. Related Party Disclosure :-
A. Related Parties Disclosure as per Accounting Standard (AS) - 18:-
Holding Company ABG Shipyard Limited
ABG International Pvt. Ltd. (Holding company of ABG Shipyard Limited)
Subsidiary (Controlling stake) Nil
Fellow Subsidiary Companies ABG Shipyard Singapore Pte Ltd.
Vipul Shipyard (Partnership Firm)
Companies over which Directors/ relatives are able to exercise
Significant Infuence:
ABG Shipyard Limited,
(Shri. R. S. Nakra/Shri. Ashwani Kumar and Shri. Ashok Chitnis
(common directors)
Key Management Personnel Cdr. Subhash Kumar Mutreja, Whole Time
Director & Chief Executive Officer.
11. CONTINGENT LIABILITIES :
i) Guarantees given by Banks: Rs. 398.25 lacs (Rs. 447.20 lacs).
ii) Letters of Credit outstanding: Rs. 29.38 Lacs (Rs. 121.52 Lacs).
iii) Bonds of Rs. 15.00 lacs (Rs.15.00 lacs) executed in favour of
Excise Authorities.
iv) Sales tax liability for the financial years from 1995-96 to 2004-05
is Rs. 837.91 lacs. The Company has fled appeal & stay petition against
the same.
v) Value Added Tax (VAT) liability for the financial years from 2005-06
to 2007-08 is Rs. 515.78 lacs. The Company has fled appeal & stay
petition against the same.
vi) Service Tax liability for the financial year 2001-02 to 2003-04 is
assessed at Rs.712.18 lacs. The Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the Company's appeal on the ground that
it does not render port services being a registered factory. The
Department has fled an appeal in the High Court of Bombay, Goa Bench at
Panaji. The Company has contested the appeal. The appeal has been
transferred to the High court of Bombay at Mumbai to be heard alongwith
other similar appeals.
vii) Legal cases pending against the Company (net of provision) is Rs.
6929.06 lacs (Rs. 3320.15 lacs).
12. There are no Micro, Small and Medium Enterprises, to whom the
Company owes dues, which are outstanding for more than 45 days as at
the Balance Sheet date. The above information regarding Micro, Small
and Medium Enterprises has been determined to the extent such parties
have been identified on the basis of information available with the
Company. This has been relied upon by the auditors.
13. In view of brought forward business losses and unabsorbed
depreciation, income tax on account of Minimum Alternate Tax has been
provided on the basis of relevant provisions of the Income Tax Act.
14. The previous years fgures have been regrouped, rearranged wherever
considered necessary.
Mar 31, 2010
1. Scheme of Arrangement
The Company has implemented Scheme of Arrangement as per the Scheme
approved by High Court of Bombay, Goa Bench on 15.01.2010. Accordingly,
all secured loans have either been restructured as per Option -I or
full & final settlement made as per Option -II. Effect on account of
the same has been accounted for in the books of account. Principal
waiver has been charged to Capital Reserve Account and waiver of
interest has been transferred to Revenue Account.The Company has issued
17,75,50,000 equity shares of the face value of Rs. 21- each fully paid
up to ICICI Bank Limited aggregating to Rs. 35.51 crores pursuant to
the Option -1 of the Scheme of Arrangement exercised by the Bank.
The Company has applied for permission for listing and trading in these
shares on the Bombay Stock Exchange Limited. The issue of the said
shares are subject to the requirements of the SEBI (Issue of Capital &
Disclosure Requirements) Regulations, 2009 with regard to lock in and
pricing condition.
The Company has received Rs. 45.00 crores from ABG Shipyard Limited as
per the Scheme of Arrangement and the same has been shown as Unsecured
Loan in the Books of Account.
2. Secured Loan
i) Convertible Zero Coupon Loan
It is to be converted to Equity Shares commencing from second
anniversary of the effective date i.e. 20.03.2012 and ending on the day
preceding the seventh anniversary of the effective date.
ii) Term Loan on account of Scheme of ArrangementTerm loan is to be
paid in 28 equal quarterly installments starting from second
anniversary of the effective date i.e. 20.03.2012
iii) IFCI Loan
Payable in 12quarterly installments as under :-
a. Rs. 2.75 crores each per quarter commencing from 15th month upto
24th month from the date of disbursementb.
b. Rs. 4.125 crores each per quarter commencing from 27th month upto
36th month from the date of disbursementc.
c. Rs. 6.875 crores each per quarter commencing from 39th month upto
48th month from the date of disbursement
3. i) Balances under the head current liabilities, debtors and loans &
advances are subject to confirmation.
However, in the opinion of the management, realizable value of current
assets, loans & advances in the ordinary course of business will not be
less than the amount which is stated in the Balance Sheet.
ii) Loans and advances include a sum of Rs. 575.63 lacs (Rs.
1749.57lacs) due from certain companies under escrow agreements against
which the original share certificates for 84,69,710 equity shares of
the face value of Rs. 2/-aggregating to Rs. 169.39 lacs had been
deposited as security by such companies for repayment of advances. The
market value of these shares as 31.03.2010 is Rs. 1200.16 lacs based
on the closing price of Rs. 14.17 each per equity share on the Bombay
Stock Exchange Limited.
iii) The Company deposits amounting to Rs. 123.95 lacs (Rs. 17.06 lacs)
are kept in lien with the Banks towards margin money etc. for Bank
Guarantees and Overdrafts.
4. i) The Company has been granted sales tax exemption by State
Government, under Schedule II (entry 85) of the Goa Sales Tax Act for a
period of 12 years. The Directorate of Industries and Mines,
Government of Goa vide letter No. IND/Devi/I M/495/93/3543 dated
19.8.1997 has also granted the said exemption for a period of 12 years
w.e.f. 1.1.1996 on ship-repairs. However the Assessment Officer has
denied the exemption and has levied sale tax at the applicable rates on
the sales turnover. The Company has filed appeals before the
Commissioner of Commercial Taxes (Appeals), Panjim, against sales tax
liability of Rs. 837.91 lacs for the financial years upto 2004-05. The
appeals are sub-judice.ii) The Goa Value Added Tax Act, 2005 is
applicable to assessees in the State of Goa w.e.f. 2005-06. Hence the
Company has obtained registration and filed its returns for 2005-06 and
2006-07 and sought the 75% benefit under the Goa Value Added Tax
Deferment-cum-Net Present Value Compulsory Payment Scheme, 2005 to
which it is entitled. However, the Asst. Commissioner of Commercial
Taxes has denied the benefit of the said scheme and passed assessment
order-cum- demand notice for financial year 2005-06 & 2006-07 for a sum
of Rs. 436.56 lacs. The Company has filed appeals before the Addl.
Commissioner of Commercial Taxes, Goa and the appeals are sub-judice.
5. Employee Benefits:
a) The Company has adopted the revised Accounting Standard AS-15 -
Employee Benefits with effect from April 1, 2008.
b) Defined Contribution Plans - Provident Fund:
The contribution made by employe1- and employee, together with
interest, are payable at the time of separation from service or
retirement, whichever is earlier.
c) Defined Benefit Plans - Gratuity:
The Company makes annual contribution to the Employees Group
Gratuity-cum-Life Assurance Scheme of Metlife Insurance Co. Ltd., a
funded defined benefit plan for qualifying employees. Gratuity is
payable to all eligible employees on death or on separation/termination
in terms of the provisions of the Payment of Gratuity (Amendment) Act,
1997 or as per the Companys scheme whichever is more beneficial to the
employees.
d) Basis Used to Determine Expected Rate of Return on Assets"
The expected return on plan assets of 8% has been considered based on
the current investment pattern in Government securities.
6. Related Party Disclosure
i) List of Related Party - Key Management Personnel - Cdr. S. K.
Mutreja, Whole Time Director & CEO ii) Transactions with Related Party
- Remuneration Paid - Rs. 33.37 lacs
7. CONTINGENT LIABILITIES :
i) Guarantees given by Banks: Rs.447.20 lacs (Rs. 364.10 lacs).
ii) Letters of Credit outstanding: Rs 121.52 Lacs (Rs. Nil).
iii) Bonds of Rs. 15.00 lacs (Rs. 15.00 lacs) executed in favour of
Excise Authorities.
iv) Sales tax liability for the financial years from 1995-96 to 2004-05
is Rs. 837.91 lacs. The Company has filed appeal & stay petition
against the same.
v) Value Added Tax (VAT) liability for the financial years from 2005-06
to 2006-07 is Rs. 436.56 lacs. The Company has filed appeal & stay
petition against the same.
vi) Service Tax liability for the financial year 2001-02 to 2003-04 is
assessed at Rs.712.18 lacs. The Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the Companys appeal on the ground that
it does not render port services being a registered factory. The
Department has filed an appeal in the High Court of Bombay, Goa Bench
at Panaji. The Company has contested the appeal.
vii) Legal cases pending against the Company (net of provision) is
Rs.3320.15 lacs (Rs. 2902.39 lacs).
8. There are no Micro, Small and Medium Enterprises, to whom the
Company owes dues, which are outstanding for more than 45 days as at
the Balance Sheet date. The above information regarding Micro, Small
and Medium Enterprises has been determined to the extent such parties
have been identified on the basis of information available with the
Company. This has been relied upon by the auditors.
9. In view of brought forward business losses and unabsorbed
depreciation, no income tax on account of Minimum Alternate Tax has
been provided for in the current year.
10. The previous years figures have been regrouped, rearranged
wherever considered necessary.
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