| 1. TERMS AND RIGHTS ATTACHED TO EQUITY SHARES
A) The Company has issued Equity Shares of Rs. 10 each fully paid up at
a premium of Rs. 2.5/- per equity share during F.Y. 2011-12. Each
holder of equity share is entitled to one vote per share.
B) In the event of liquidation, the holders of the equity shares will
be entitled to receive remaining assets of the Company after
distribution of preferential amounts. The distribution will be in
proportion to the number of equity shares held by the Share Holders.
2. Contingent Liabilities not provided for:
2014-15 2013-14
Particulars (Rs.) (Rs.)
Bank Guarantees 5,00,000 5,00,000
Income Tax NIL 1,09,59,420
Value Added Tax 25,34,889
3. Directorate General of Central Excise - Investigation (DGCE-I) during
the course of survey on 05-01-2007 debited an amount of Rs.25.00 Lacs in
RG 23 Part II without raising any demand for excise and therefore the
same is shown under the head "Short Term Loans and Advances" -(Note
No.14). The excise authorities have passed an order for reversal of
wrong CENVAT Credit claimed by the Company and also imposed penalty for
such wrong CENVAT credit. The Honourable Customs Excise and Service Tax
Tribunal Ahmedabad vide their order dated 11.02.2014 of stay in response
to application filed by the Company. In the opinion of the Board of
Directors of the Company no provision is required to be made in respect
of such Excise liability as the said liability is not crystallised as on
the date of Balance Sheet.
4. The Company has been sanctioned working capital facility in the form
of Factoring Facility to the tune of Rs.3500.00 Lacs and revolving
Purchase Bills Discounting facility to the tune of Rs.500.00 Lacs
against various securities by SICOM Ltd., Mumbai. As the Company failed
to pay the dues to SICOM Ltd, it has issued take over notice on
23.01.2013 for possession of its secured assets and demanded Rs.
45,19,29,024/- against its dues upto 15.01.2013 under section 29 of
State Financial Corporation Act,1951 for recovery of its dues. As
informed to us SICOM Ltd has not taken physical possession of its
secured assets.
SICOM LTD filled petition in The High Court of Gujarat for winding up
of The Company u/s 433 and 434 of The Companies Act 1956 on 28.07.2014
and demanded Rs.55,59,73,509/- towards its dues up to 09.07.2014.
In absence of confirmation from SICOM LTD regarding its outstanding dues
as on 31.03.2015, the company has not provided interest. The interest at
contracted rate on outstanding dues as on 01.04.2014 comes to
Rs.626,27,883/- which is required to be provided following the accrual
method of accounting.
As informed to us the Company has filed a suit against SICOM LTD in City
Civil Court at Mumbai and has sought relief in the form of compensation
of Rs.80.00 Crores for the damage, loss and injury caused by SICOM LTD
for damage/loss caused. The matter is still pending with City Civil
Court at Mumbai
As informed to us the company has also given legal notice to SICOM LTD
on 29.01.2015 and several other communications demanding Rs.200.00
Crores towards loss and damages of goodwill and reputation of company
and its Directors caused due to unreasonable conduct of SICOM Ltd. The
Company has also disputed the amount due to SICOM Ltd in its notice.
5. Sales Tax Assessments are completed up to the accounting year
2008-09 and additional liability if any, on this account is recognised
on completion of the assessment. However, the Company has preferred an
appeal against the Order passed by the Assistant Commissioner of
Commercial Tax and hopeful of favorable decision. The liability, if
any, on this account would be recognised on final decision by the
Commissioner of Commercial Tax.
6. The Income Tax Assessments of the Company have been completed by
the Department up to the Assessment Year 2011-2012 corresponding to the
accounting Year 2012-2013.
7. In the opinion of the Board, Current Assets and Loans and Advances
are at values stated in the Balance Sheet, if realisable in the
ordinary course of business.
8. Letters seeking confirmation of balances outstanding to secured
loans, debtors, creditors and others are not being issued. Accordingly
balances as on 31st March, 2015 as appearing in books of account have
been recognised and are subject to reconciliation / adjustments, if
any, when the accounts of the concerned parties are reconciled and
settled. The management does not expect any material difference
affecting the current year's financial statements.
9. MSMED Undertakings dues:
Under the Micro, Small & Medium Enterprises Development Act, 2006 which
came into force from 2nd October, 2006, certain disclosures are required
to be made relating to Micro, Small & Medium Enterprises. The
information with regard to the balance due to Micro & Small Enterprises
as defined under the Micro, Small and Medium Enterprise Development Act,
2006 is not available with the company and therefore payment made to
such suppliers beyond the due dates during the year is not quantified.
In view of this the impact of Interest, if any, that may be payable in
accordance with the Provisions of the Act is not ascertained.
10. As the company has incurred loss during the current year, no
provision for taxation is considered necessary.
11. Related Party Transactions:
Disclosures as required by Accounting Standard -18 are given below:
Sr. Name of Related Parties Nature of Relationship
no.
1 Mr. Parasmal B. Kanugo Key Management Personnel
2 Mr. Alpesh P. Kanugo Relative of Key Management Personnel
3 Mrs. Meera A. Kanugo Relative of Key Management Personnel
4 Global Copper Limited Company in which relative of the
Director is Director.
5 Ms. Rina G. Patel Director
The following transactions were carried out with the Related Parties in
ordinary course of business.
12. Employee Benefits
(i) Defined contribution plans
The Company has recognised Rs.93,925- ( P.Y. Rs.129695/-) for Provident
Fund Contribution as expenses under the defined contribution plan in
the statement of Profit & Loss for the year ended 31st March, 2015.
(ii) Defined benefit plan
The Company has not recognized the liability towards the gratuity and
leave encashment at each Balance sheet date.
13. Details of Manufactured Goods :
(a) Manufactured Goods:
14. Previous Year's Figures:
Previous Year's figures have been regrouped / reclassified wherever
necessary to correspond with the Current Year's classification/
disclosure.
|