| 1. RELATED PARTY DISCLOSURES
Pursuant to Accounting Standards (AS18) -"Related Party Disclosure"
issued by Institute of Chartered Accountants of India, following
parties are to be treated as related parties along with their
relationships:
1. Name of related parties and description of relationship :
a) Key Management Personnel:
Mr. C. M. Marwah Managing Director
Mr. Samir Katyal Director
b) Related parties where control exists:
J. P. Overseas (P) Limited Enterprises owned or significantly
influenced by Key Management
Personnel or their relatives.
Note:- Related parties relationship is as identified by the management.
2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENT
March 31, 2014 March 31, 2013
Rs.in '000 Rs.in '000
2.1 Contingent liabilities and
commitments (to the extent not
provided for)
(i) Contingent liabilities
(a) Tax matter under disputes/appeal 2384 2383
(b) Excise matter under disputes/appeals 0 2476
(c) PF matter under disputes/appeals 4667 0
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account 0 0
3. EMPLOYEE BENEFITS (AS - 15 REVISED)
There is no employees who is covered under Retirement Benefits at the
end of the year, and the Directors have been waived their rights to
receive Retirement benefits as on March 31, 2014 and therefore, no
provision for Retirement benefits is required to be made in books of
the account of the Company.
4. In the opinion of the management, the current assets, loans and
advances, if realized in the ordinary course of business would yield a
sum at least equal to that stated in the Balance Sheet and provision
for all known liabilities are adequate.
5. Balances with various customers, suppliers, creditors and advances
recoverable as per books are subject to confirmation/ reconcilation and
consequential adjustments.
6. Other income includes Rs. 9.65 lacs towards profit on sale of
fixed assets, Rs. 30.26 lacs towards sale of scrap and Rs. 24.01 lacs
towards sundry balances written back.
7. Rates and taxes includes Rs. 62.19 lacs paid during the year on
account of interest and other related charges on sales tax assessment
relating to financial years 2008-09, 2009-10 and 2010-11.
8. During the year a Notice of Demand from the Employees' Provident
Fund Organization relating to arrears of Provident Fund contribution
from February, 2006 to July, 2010 of Rs. 46.67 Lacs (out of which Rs.
32.88 lacs is towards damages and Rs. 13.79 lacs is towards interest
charges) against which appeal has been filled with Employees Provident
Fund Appellate Tribunal challenging the validity and correctness of the
order. On Company's appeal, Employees Provident Fund Appellate Tribunal
has stayed the order with the condition to deposit Rs. 11.50 lacs
within May 4, 2014. The Company does not consider itself liable on its
accounts and accordingly, no libility have been provided in books of
account of Company. As the ultimate outcome of this matter cannot
presently be determined and provision for liability, if any, cannot be
estimated at this stage.
9. The Company has challenged the constitutional validity of entry
tax lavied in April 2010 in the state of Himachal Pradesh and a writ
petition filled by the Company is pending before the hon'able High
Court of Himachal Pradesh at Shimla, the Company dose not consider
itself liable and accordingly, no liability has been provided in the
books of account of the Company.
10. The Company closed it's glass manufacturing unit on December 25,
2012 with the permission of Labour Commissioner, Government of Himachal
Pradesh and since paid legal dues to all its employees, including
Settlement Awards directed to be paid by 15.04.2013 in term of
directions of Labour-Cum-Conciliation Office, Baddi Himachal Pradesh
dated December 28, 2012.
11. During the year ended March 31, 2014, the Company has incurred a
loss of Rs. 34,88,205 and has accumulated loss of Rs. 15,82,79,996 as
against Share Capital and Reserves of Rs. 10,00,00,000. Considering the
Company's nature of business, its future business plan to utilise its
available dealer network to undertake and develop trading operations in
products related to its line of business and the commitment of its
Promoter Group to provide financial and operational support for its
operations in the for seeable future, the management has prepared these
financial statements as a going concern.
12. a. In absence of taxable income during the year, no provision for
current Income tax has been made.
b. In accordance with the Accounting Standard - 22(AS-22) & Accounting
Standard Interpretation (ASI)-3 regarding "Accounting for Taxes on
Income", issued by The Institute of Chartered Accountants of India, the
Deferred Tax Assets/Liabilities have not been accounted for in view of
clouser of Company's manufacturing unit.
13. a. The Company could not be strictly regular in depositing its
statutory dues due to financial constraints. The overdue outstanding as
on March 31, 2014 were in respect of Service Tax Rs. 27,99,758/-,
Barrier Tax Rs. 10,36,036/-, ESI Rs. 10,30,064/-, VAT/CST Rs.
82,32,130/- and Mandi Tax Rs. 1,87,606/-.
b. No provision for interest and other levies, if any, on overdue
statutory payments has been made, as the same will be accounted for as
and when paid/settled.
14. Previous year figures have been regrouped/recast, where ever
necessary, to confirm with this year's presentation.
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