1. Contingent Liabilities:
The following contingent liability existed as on 31-03-2015 for which
no provision has been made:
A penalty up to Rs 4 Lakhs (Previous year -Rs.4 Lakhs) which could be
levied by a Court for lapses under the Negotiable Instruments Act.
2. Rehabilitation Scheme 2002/2003 of BIFR:
a) Supply of power at a concessional rate:
The Company had recognized the claims made by the GEB towards
electricity supply to the Company in excess of Rs.2.84 per unit
(inclusive of energy & demand charges) as refundable by the GEB in line
with the tariff approved vide order dated 28.08.2000 and its extension
for a period of 5 years as further rehabilitation scheme sanctioned by
BIFR. However, the State Govt. / GEB have not extended the same till
date. In the meanwhile the Company is in the process of finalizing its
MDRS envisaging various reliefs and concessions from the State Govt. of
Goa which is currently pending before the Govt. of Goa/BIFR. In the
circumstances and pending revised MDRS to be sanctioned by BIFR duly
supported by the Govt. of Goa, the provision of Rs.1717.45 lakhs
relating to the past period is in the opinion of the management not
enforceable and hence written off during the year as advances no longer
recoverable.
b) Extension of CST exemption and Exemption from payment of Entry Tax:
The Board for Industrial and Financial Reconstruction (BIFR) through
its order dated 21st November 2002; with a view for the long term
sustenance had granted Extension of CST exemption from July 2005 up to
2012 and Exemption from payment of Entry Tax from September 2000.
Accordingly, a liability of Rs.490 lakhs and Rs.1711.96 lakhs (previous
year - Rs. 490 lakhs and Rs. 1711.96 lakhs) has not been provided
towards CST and Entry Tax respectively.
3. Advances no longer recoverable:
The advances no longer recoverable and written off during the year by
the Company amounting to Rs.1978.45 lakhs include; apart from
Rs.1717.45 lakhs as mentioned at Note-28 (a) above, Rs.243.23 lakhs
towards advances made to suppliers which in the opinion of the
management have become bad and not realizable and Rs.17.76 lakhs
towards excess provision of fire insurance claim.
4. Bad debts:
The Company has also during the year written off as bad debts an amount
of Rs.2076.09 lakhs towards Sundry Debtors pertaining to the disputed
billing during 2008-09 on account of sudden fall in prices of shredded
scrap from USD 690 PMT to USD 220 PMT and selling prices from
Rs.60,000/- PMT to Rs.32,000/- PMT as a result of the Global economic
crisis which in the opinion of the management have become bad and
irrecoverable.
5. Excise duty liability:
In respect of manufactured goods held in stock, excise duty at 12.36%
is estimated at Rs. 3.87 Lakhs (Prev. year Rs. 3.87 Lakhs @ 12.36%).
The same has not been provided in the books as per the policy of the
Company except on stock at depots and stock sent to converters on which
duty already paid has been included in the valuation. This does not
affect the profits made by the Company.
6. Claims against the Company not acknowledged as debts:
PARTICULARS REMARKS
Authority / Department Goa Electricity Board (GEB)
Amount Due Rs.87.84 crores; comprising of
Rs.2.16 crores principal and
Rs.85.68 crores delayed payment
charges (DPC) @ 2% per month
compounded
Period for which it is related to December 1991 to November 1996
Dispute involved Granting of 25% rebate for 3.5
years instead of 5 years and
levy of DPC @2% per month
compounded
Before which authority Hon'ble Supreme Court of India
7. Central Sales Tax payable and Electricity charges payable:
During the year eligible VAT input credit of Rs.719.04 lakhs for the
period 01.04.2005 to 31.03.2015 has been set off against the Central
Sales Tax payable for the period 01.04.2005 to 31.03.2015. Further, a
sum of Rs.212.99 lakhs being the old electricity rebate claim provided
as advances recoverable in cash or kind or for value to be received and
also provided as electricity charges payable has been set off during
the year.
8. Other Income:
Other income (refer Note-20) includes write back of Rs.1157.44 lakhs
being liability to Unsecured Loan from Rukmani Finance Pvt. Ltd. who
have waived the same keeping in view the proposed rehabilitation
programme.
9. The balances of Loans & Advances under Current Assets, Sundry
Debtors & Sundry Creditors are subject to confirmation / reconciliation.
10. The Board is of the opinion that the Current Assets, Loans and
Advances have, in the ordinary course of business, value at least equal
to the amount at which they are stated in the Balance Sheet.
11. Figures for the previous year have been regrouped to conform to
those of the current year.
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