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1. Contingent liabilities and commitments (to the extent not provided
for)
(Rs.)
As At As At
Particulars 31st March, 2015 31st March, 2014
a) Contingent liabilities:
Claims against the Company not
acknowledged as debts - -
b) Commitments :
Estimated amount of Contracts
remaining to be executed
on Capital Account and not
provided for - -
2. Based on the information / documents available with the Company, no
amount (Previous year: Nil) is/was due to Micro, Small and Medium
Enterprises as defined in the " Micro, Small and Medium Enterprises
Development Act, 2006"
Hence, information as per the requirements of Section 22 of the
aforesaid act is not required to be disclosed.
3. a) The Government of Uttar Pradesh has initiated recovery
proceedings for recovery of Sales Tax dues related to Explosive unit
at Jhansi, pursuant to which, the factory at Jhansi has been seized by
the Government authorities. All the assets located at factory
including records there at remain seized till the year end. Out of
the above assets, certain assets pertaining to the said unit have been
auctioned by the office of the labour commissioner, Jhansi, against
which a sum of Rs. 8,03,000.00 (previous year: Rs. 8,03,000.00) is lying
with them. Pending availability of relevant information, no adjustment
in this respect has been carried out in these accounts.
b) The Company's net worth has been fully eroded as the accumulated
losses of Rs. 3,21,63,639.91 exceeded its shareholders' fund of Rs.
95,67,270.00.
The Hon'ble Board for Industrial and Financial Reconstruction (BIFR)
vide its order dated 07.01.2014 had permitted, transfer of 20% equity
shares of the Company held by Balrampur Chini Mills Ltd. as well as
induction of co-promoter / strategic investor in IGIL, under a
Modified Draft Rehabilitation Scheme (MDRS) to be approved by the
Hon'ble BIFR. However the Hon'ble BIFR vide its order dated 04.08.2014
reviewed its directions and directed the Operating Agency to submit
its report after conducting due-diligence of co-promoter/ Strategic
Investor and reserved its order for pronouncement.
The order in the subject matter was pronounced on 23.01.2015 whereby
the Bench observed that induction of co-promoter/strategic investor
was not in transparent manner and was not in accordance of the Law.
The Hon'ble BIFR fixed the next date of hearing for further hearing in
the matter. Aggrieved by the BIFR's order dated 23.01.2015, the
Company has preferred an Appeal before the Hon'ble AAIFR which is
pending adjudication before the Hon'ble AAIFR as on date. The Hon'ble
AAIFR in the pending appeal has passed a direction vide its order
dated 15.05.2015 directing circulation of MDRS to all concerned for
their consideration. As envisaged in the MDRS to be circulated, after
the said transfer of shares, the Company will cease to be a subsidiary
of Balrampur Chini Mills Ltd and the Co-Promoter shall invest in terms
of the provisions contained in the MDRS to meet the requirement of
funds for the revival. Accordingly, .the Company has considered that
it will be able to continue as a going concern entity.
4. Segment information as per Accounting Standard - 17 on 'Segment
Reporting' :
The company is in the business of industrial explosive. Considering
the core activities of the company, the management is of the view that
it is a single reportable business segment and hence, information
relating to primary segment is not required to be disclosed.
The information about secondary segment has not been furnished as
there is no export revenue of the Company.
5. In accordance with Accounting Standard 22 "Accounting for taxes
on Income Tax", the company has not accounted for deferred tax
during the year.
Though, the Company has significant amount of carried forward losses
and unabsorbed depreciation under the Income Tax Act, 1961. However,
as a matter of prudence deferred tax assets have not been recognized.
6. Disclosure pursuant to AS - 28 on "Impairment of Assets"
Due to seizure of Company's explosive plant at Jhansi, the condition
of the plant & machineries and other fixed assets there at and the
impairment loss, if any, in respect thereof could not be determined,
pending which no provision for such impairments, if any, could be made
in the accounts.
7. Expenditure on Corporate Social Responsibilities (CSR) Activities
The provisions of Section 135 of the Companies Act, 2013 are not
applicable to the Company.
8. There are no transactions which are required to be disclosed as
prescribed under paragraph 5 (viii) to general instructions for
preparation of Statement of Profit and Loss under Schedule III to the
Companies Act, 2013.
9. Previous year's figures have been reworked, regrouped, rearranged
and reclassified wherever necessary to make them comparable with those
of the current year.
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