1. The Company is following corporate accounting year to close the
accounts on 31st March every year.
2. Contingent Liability not provided for in respect of:
a. The Company initiated Arbitration proceedings against M/s. Shin
Satellite Public Co. Ltd, Thailand (hereby known as Thaicom Public
Company Limited) for various claims. However, the Arbitral Tribunal,
without Notice, in a meeting for directions, held contrary to the
express provisions of the Agreement between the parties, proceeded to
disregard/set-aside claim of the Company for not appearing before the
Tribunal in the said meeting and thereafter proceeded to pass ex-parte
award against the company for US$ 10,16,603.78 (Rs.6,10,97,684), along
with interest @18% p.a. from the date of award, merely considering the
counter-claim of the defendants without considering any
claims/submissions documents/evidence/Affidavits already filed by the
Company. The award too contains many in-consistencies and the company
has therefore filed appeal against the said order on various grounds
before the Hon'ble High Court of Delhi. The Learned Single Judge vide
his order dismissed the Petition filed by the Company on the ground
that Part 1 of the Arbitration and Conciliation Act, 1996 is excluded
by the parties under agreements. Being aggrieved by the said order, the
Company filed an appeal before the Division Bench of the High Court of
Delhi, who, vide their order upheld the order of the Learned Single
Judge on the ground that Part 1 of the Arbitration and Conciliation
Act, 1996 is excluded by the parties under agreements and thereby
Courts in India will have no jurisdiction, without considering the fact
that the issue as to the applicability of Part 1 of the Arbitration and
Conciliation Act, 1996 to the present arbitration stood already decided
by the designate of the Chief Justice of India while exercising His
jurisdiction under Section 11(6) of the Arbitration and Conciliation,
Act,1996 passed in Arbitration Petition. Being aggrieved, the Company
therefore filed a Special Leave Petition before the Hon'ble Supreme
Court of India, which was admitted. The said execution petition is
pending for adjudication and as per the Supreme Court Order the company
has given a bank Guarantee of Rs. 2,50,00,000/- (Rupees Two Crore
Fifty Lacs only). In the meanwhile, Thaicom Public Company Limited has
filed an Execution Petition before the Hon'ble High Court of Judicature
at Mumbai seeking execution of the Award. The said execution petition
is also pending for adjudication.
b. The Commissioner of Service Tax Department had passed Order
determining the Net service tax Liability of Rs. 51,26,745/- ( after
credit for payments ) for the period from 16th June 2001 to 31st March
2006, which has been duly accounted by the Company . The Learned
Commissioner had also passed Order for Recovery of Interest at the
appropriate rate on the service Tax amount as determined and also
imposed Penalty of Rs.1,02,55,493/-. As against this Order Management
has filed an appeal with CESTAT, and the matter came up for hearing
were in CESTAT has passed an order dt. 16th September 2013 asking
company to deposit an amount of Rs. 49,65,873/- towards Service Tax
Liability with in a period of 8 Weeks and the same was paid. As Regards
pre deposit of Interest & Penalty the same is waived and recovery of
the same is stayed for hearing of appeal.
c. Service Tax Department had issued Show cause cum Demand Notice for
Rs. 11,95,884/- towards Short Payment of service tax for the period
from 1st April 2007 to 31st March 2008. The demand was raised by the
department for erroneous computation of taxable revenue, the company
has submitted written explanation to that effect to the Department and
rectification from the department is awaited.
3. Estimated amounts of capital contracts remaining to be executed
(advance paid) Rs. Nil (Nil)
4. During the year or in previous year the company has not entered into
any transaction relating to foreign currency.
5. Amount Due to Small, Medium and Micro enterprises:
Company is in process of inviting information from its vendors for
their status under "The Small, Medium and Micro Enterprises
Development Act 2006", however in absence of any information, no
disclosures have been made in this regards.
6. Balances in Unsecured Loans and some of the Debtors, Creditors,
Loans & Advance are subject to confirmation and reconciliation, if any.
7. In the Opinion of the Board, the current assets, Loans & Advances
are approximately of the value stated, if realized in the ordinary
course of the business.
8. Previous Yeas Figure have been regrouped to conform to the current
year presentation.
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