1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
31.03.2015 31.03.2014
(Amount in Rs) (Amount in Rs)
a) Guarantee/Letter of credit given by Refer note Refer note
Company's Bankers below below
b) Foreign Bills Discounted with Banks Refer note Refer note
below below
c) Showcause/Demand raised /Appeal 3,103,796 15,883,989
filed to the Various Authorities
& disputed by the Company
d) Penalty Imposed by FERA& disputed 10,000,000 10,000,000
by the Company
e) Custom duty payable on Import of amounts amounts
duty free capital goods unascer unascer
tainable tainable
f) Penalties, if any, in respect of amounts amounts
custom duty liabilities for import unascer unascer
of raw materials under advance tainable tainable
licence scheme and of Capital
goods under EPCG Scheme.
g) Suits filed against the Company amounts amounts
for recovery of dues unascer unascer
tainable tainable
Note: Not ascertained by the Company as the relevant details are not
received from the respective authorities.
2. The Company has made an investment of Rs. 25,931,404 ( œ 450.200)
in Euroroyal Floors Ltd.( "ERF") wholly owned subsidiary in U.K. The
subsidiary also owes Rs. 233,375,543 ( Net of commission payable Rs.
10,619,234 ) towards supply of goods made to it. The principal
customers of ERF in Russia did not honour the debts, Due to this ERF in
turn, could not pay its creditors. The Company has been informed by the
ex-local Directors of ERF that one of the creditors had filed a suit
for winding-up of ERF pursuant to which the High Court of Justice of
U.K. made a winding-up order dated 11th June,2001 against ERF and the
official receiver has been appointed to liquidate the assets of ERF.
Thereafter order dated 12/03/2002 was passed and ERF is dissolved.
Under the circumstances, the Management had provided for diminution in
value of investment made in ERF in the year 2000-01. As also, provision
against the debt of Rs. 233,375,543 due from ERF had been made during
the earlier year.
3. Under the Micro, Small and Medium Enterprise Development Act, 2006
("MSMED Act") which came into force effective from 2nd October
2006,certain disclosures relating to amounts due to micro, small and
medium enterprises and remained unpaid after the appointed date etc. of
principal and interest amounts are required to be made. The Company is
in the process of compiling the relevant information. As the relevant
information is not yet readily available and / or not given or
confirmed by such enterprises, it is not possible to give required
information in the accounts. However, in view of the management, the
impact of interest, if any, which may subsequently become payable to
such enterprises in accordance with the provisions of the Act, would
not be material and the same, if any payable, would be disclosed in the
year of payment of interest.
4. The Company has suffered substantial losses and due to this, the
entire net worth has been eroded. However, operations are Continued,
the accounts of the Company have been prepared on the basis that the
Company is a going concern.
5. Sundry Debtors & Creditors (Including foreign suppliers) are subject
to confirmation
6. Segment Reporting:
The Company has one segment of activity namely PVC products (PVC
Laminated Sheet/Tiles, PVC Leather Cloth).
7. Accounting for Taxes on Income:
In view of Loss in current year as well as having substantial brought
forward losses and the fact that there would not be taxable income in
the near future, the deferred tax assets is not recognized. Deferred
tax liability, if any would arise in the year in which the claim giving
rise to timing difference is made. Accordingly, deferred tax
asset/liability is not recognized.
8. The Directors / employees of the Company have acquired motor cars in
their names from and out of the loans obtained by them from the banks,
pursuant to an arrangement between the Directors / employees for use of
the Company. Accordingly, the Company has accounted the said cars & the
said loans in the name of the Directors/ employees, as the assets & the
liabilities of the Company, including the transactions in respect of
repayment and payment of interest etc.
9. The useful life of fixed assets has been revised in accordance with
Schedule - II to the Companies Act-2013 which is applicable for
accounting periods commencing on or after 01/04/2014. Consequently an
amount of Rs. 14,84,02,188 representing assets beyond their useful life
as of 01/04/2014 has been charged to retained earning in other cases
carring amount has been depreciated/amortised over the remaining useful
life of the assets.
10.. NAME OF RELATED PARTIES AND RELATIONS
1 (A) SUBSIDIARY COMPANY
a) Euro royal Floors Ltd.
(B) ASSOCIATES CONCERN / TRUST
a) Natroyal Industries Pvt. Limited
b) Royal Spin well Pvt Limited
c) Samsons Leather cloth Manufacturing Co. LLP
d) Royal Jerfeb Pvt Limited
e) Shreedaha Trading & Consultancy Services LLP
f) Shreeshaha Trading & Consultancy Services LLP
g) Bhaktavatsala Trading & Consultancy Services LLP
h) Trilokesh Trading & Consultancy Services LLP
i) Vishwamurti Trading Consultancy Services LLP
j) Sumukh Trading & Consultancy Services LLP
k) Lokwami Trading &Cosultancy Services LLP
l) Sahishnu Trading & Consultancy Services LLP
m) Sughosh Trading & Consultancy Services LLP
n) Trilokatma Trading & Consultancy Services LLP
o) M. V. Trust Properties
p) Nityanand Overseas Trading
(C) KEY MANAGEMENT
a) Mahesh KantilalShah
b) Vinod KantilalShah
11. The amount of Excise Duty disclosed as deduction from turnover is
the Excise duty for the year, except the excise duty related to the
difference between the closing stock and opening stock and excise duty
paid but not recovered, which has been disclosed in the (Increase) /
decrease in stock and the other expenses respectively. (Increase) /
decrease in stock includes excise duty on finished goods (net)Rs.
71,10,354 (Previous year Rs. 79,22,277)
12. The figures of previous year have been regrouped / reclassified /
recast wherever necessary to compare with the current year's figures.
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