| 1. CORPORATE INFORMATION
The Company is engaged in the manufacturing Calcium Carbonate. It is
used as input material in various industrial sectors including Tooth
Paste, Pharmaceuticals, PVC products, Rubber, Plastic, Polymer, Cable,
Leather, Paper and Paints.
2. Foot Note:
*Includes Rs. Nil (P.Y. Rs. 2,098 thousand) from Development Credit
Bank Ltd. ( DCB ) secured by way of first charge on pari passu basis on
the Company's immovable properties and movable Plant & Machineries both
present & future situated at Roha & Paonta factory and upto Rs.1,48,200
thousand including term loan and demand loans was guaranteed by two
Directors of the Company. After loan balance have been settled under
OTS, the charge amounting to Rs. 2500 thousand is cancelled from 30th
July, 2013 vide MCA Memorandum dated 19th August 2013.
*Includes Rs. Nil (P.Y. Rs. 60,000 thousand) from Axis Bank Ltd secured
by way of first charge on pari passu basis on the Company's immovable
properties and movable Plant & Machineries both present & future
situated at Roha & Paonta factory and upto Rs. 60,000 thousand was
guaranteed by one Director of the Company and one Ex-Director of the
Company.
** Rs.253 thousand (P.Y. Rs. 2,298 thousand) from Pegasus Assets
Reconstructions P Ltd Secured by Equitable Mortgage of Company Office
Premises at New Delhi and upto Rs. 13,500 thousand is guaranteed by one
Ex-Director of the Company .
As at As at
31st March, 31st March,
2014 2013
3. Contingent Liabilities Rupees Rupees
Corporate Guarantees issued to
Bank U.S. $2.20 Million (P.Y. U.S. 132,219,560 119,526,660
$ 2.20 Million)
Disputed Income Tax Demand 11,411,770 8,896,000
Disputed Sales Tax Demand 9,134,000 9,134,000
Disputed Profession Tax Demand 872,555 -
Total 153,637,885 137,556,660
No provision is presently considered necessary for above mentioned
various tax demands which are unde various stages ff appeal as the
Company is of the view that the said demands are not sustainable in
law.
4. The company is engaged in manufacturing of Calcium Carbonate which
is considered the only repc business segment, as per Accounting
Standard 17 -'Segment Reporting'; hence segment reporting is not
5. Defined Benefit Plans
The Employee's Gratuity Fund Scheme managed by a Trust is a defined
benefit plan. The present value of obligation is determined based on
actuarial valuation using the Projected Unit Credit Method, which
recognizes 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 estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and
relevant factors including supply and demand in the employment market.
The above information is certified by the Actuary.
6. The Company had received the demand notices for A.Y. 2006-07 from
the Income Tax authorities for Income tax and fringe benefit tax
inclusive of interest for Rs. 52,73,000/- and Rs. 4,54,000/-
respectively. Company had Rs. 4,57,000/- net provisions standing in
the books against the Mat Liability for AY 2006- 07. Company has filed
rectification application to Income Tax Department for non allowance of
carry forward losses as it was allowed to the Company vide ITAT order
dated 21.11.08 i.r.o. AY 2002-03. Considering the above, the
Management is of the opinion that no further provision need to be made
in these respect.
7. The balance due to / from parties are subject to confirmation.
8. No provision for Income tax under MAT, for the current year is made
as the Company is registered with BIFR as a sick Company.
9. The Company is registered as a sick Industrial Company with the
Board for Industrial and Financial Reconstruction (BIFR) under the Sick
Industrial Companies (Special Provisions) Act, 1985 (SICA). As directed
by BIFR, Bank of Baroda, the Operating Agency (O.A.) to submit fully
tied up Draft Rehabilitation Scheme (DRS) to BIFR.
10. The company continues to disclose its results on the concept of
going concern in spite of the fact of erosion of 100% of its net worth.
The Company relies on the possible outcome of the BIFR application and
one time settlement reached with lender banks/financial institutions
and creditors.
11. In terms of One Time Settlement with DCB Bank Ltd. and Axis Bank
Ltd. a sum of Rs. 1,62,25,298/- and Rs.2,55,33,528/- respectively
representing the principal amount of Term Loan/Cash Credit has been
waived off. The said amounts have been transferred to General Reserve.
12. On the basis of 'No Dues' letter dated 18th March, 2014 of Axis
Bank Ltd. an amount of Rs. 3,40,46,472/- has been recognised in the
year under audit as long term borrowings being amount paid by Dr.
Akabar Virani to Axis Bank Ltd. till March 2012 towards repayment of
loan on behalf of the Company. During the year the Company has accepted
deposits amounting to Rs. 6,37,88,477/- (including above amount) in
violation of section 58A of Companies Act, 1956.
13. In the opinion of Board of Directors all assets other than
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 and the provisions for all known liabilities are adequate and
not in excess of the amounts reasonably necessary.
14. No personal expenses have been debited to Profit and Loss Account
except those payable under contractual obligation or normal business
practices.
15. Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
|