| 1. Nature of operations
The Rubber Products Limited is primarily engaged in the business of
manufacturing rubber products.
2. Consistent with the past prsuice, no provision has been made for
excise duty estimated at Rs.911389/- {Previous Year Rs.624468/-) on
stock lying at the year end. Accordingly the said amounts are not
included in the inventory valuation. This has no effect on the profit
for the year Though the said accounting treatment differs from the
revised "Guidance Note on Accounting treatment for Excise Duty " issued
by the iCAL The Company is of the view that the excise duty is
effectively not payable till the manufactured goods are removed from the
factory premises.
3. Contingent Liability not provided for:
(In Rupees)
2014-15 2013-14
(a) Guarantees given by Bank on behalf
of the Company 2,56,559/- 9,37,346/-
(b) Letters of Credit issued by Bank on
behalf of the Company 1,08,48,967/- 92,61,204/-
(c) Excise - Rubberised Textile Fabric/
Furnace Oil (including Penalty) 68,91,001/- 6891001/-
(d) Excise - Rubberised Coated Fabrics -
Ordiance Parachute Factory, Kanpur 2,06,995/- 2,06,995/-
(e) Excise - Silicone Transparent Tubing
under 9018 instead of 3917
(including Penalty) 74,14,244/- 74,14,244/-
(f) Sales Tax FY 200S-09 (CST & MVAT)(Ex-
parte order based on Sales &
Purchase no set off has been
considered) 6,06,61,949/- -
Sales Tax FY 2009-10 (CST & MVAT) 29,29,854/- 29,29,854/-
Sales Tax FY 2010-11 (CST & MVAT) 31,49,093/-
Income Tax A.Y. 2011-12 76,31,740/- 76,31,740/-
4. Pursuant of the Rehabilitation Scheme approved by the Board for
Industrial and Financial Reconstruction (B1FR) vide order dated 23.5.96
Company had joined as Co-Promoters in The Cosmos India Rubber Works (P.)
Ltd. during the year 1996-97. terms of the said scheme, the company had
invested Rs.21.00 lacs by way of Share Capital in the erstwhile
subsidiary compay . The amount outstanding from the said Company as
Loans & Sundry Debtors are Rs.25,00,000/- ( Previous Year rs
26,73.744/-) & Rs.1,41,60,252/- (Previous Year Rs. 1,39,57,567/-)
respectively. The said company is a sick industrial Company within the
meaning of section 3(1)(o) of Sick Industrial Companies (Special
Provisions) Act, 1985 and BIFR, vide order dt8.09.2010 have recommended
winding of the said. This order of BIFR was set aside by AAIFR vide it's
order dated 06.09.2012 and also directed BIFR to consider the scheme
submitted by The Cosmos India Rubber Works (P.) Ltd of Revival cum
merger with the Company.
The said Company has since suspended manufacturing activities and the
chances of immediate recovery of the Company's dues are doubtful.
However, No provision has been made in view of pending final decision
by BIFR on revival Scheme.
5. Sundry Debtors are subject to confirmation and include some debts,
which are overdue. It includes dues from Railways, Govt. Depts/PSU
etc. No provision has been made for doubtful debts.
6. With regard to disclosure of outstanding dues for more than 45 days
payable to Sundry Creditors covered under MSME Act, is under process of
being worked out as the details relating to their status are being
called for.
7. Gratuity Provision:
As per the working of Independent Actuarial Valuer M/s K.A. Pundit, the
Projected Benefit Obligations of the Company in respect of gratuity
benefits as on 31.03.2015 is Rs 127.68 lacs, against which the Company
has made provision of Rs 99.75 lacs and for the the balance Rs 28.33
lacs no provision has been made. As per LIC Fund available is Rs.,0.32
lacs, hence gratuity fund available with LIC is not sufficient to cover
up existing gratuity liability to the extent of Rs.127.36 lacs. To the
extent of shortfall of, Rs. 28.33 lacs the provisions of the revised
AS-15 are not compiiad with the gratuity LIC policy has been lapsed and
the management is in process of renewing the same
Defined Benefit Plan
The employee's gratuity fund scheme managed by a Trust(Life Insurance
Corporation of Indians a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to built up the final obligation.
8. Provisions for Leave Encashment:
Company -as retained the policy as per last year relating to Leave
encashment with regard to staff/managers and accordingly provisions for
leave is revised from Rs. 5,72,934/- as on 31.3.2014 to Rs. 8,64,770/-
as on 31.3.2015, as per which an employee is eiigible for maximum of 15
days leave only if he has more than 60 days of accumulated leave.
Accordingly has made provision for only 15 days. This was done based on
assumption that an employee will be availing of at ess; 30"days of
leave during the year. This is applicable to both staff as well as
workers.
provision is made of Rs.18 lacs in the previous year on account
of interest payable to one of the associate concern of M/S B Fouress
Pvt. Ltd., Loss will increase to that extent.
9. No provision is made for service tax payable on GTA and Other
services which are payable on RCM, quantum of liability is not worked
out.
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