(B) NOTES TO THE ACCOUNTS
1. Impairment of Assets
The Company has carried out Impairment test on its fixed assets as on the date of Balance Sheet and the& management Is of the opinion that there is no asset for which provision for impairment is required lobe madras per Accounting Standard- 23 on Impairment of Assets.
2 Contingent Abilities:
a) Performance Ba’ik Guarantee sued by Orients: Bank of Commerce of Rs. 34.43 lacs.
b} PF commissioner ^as Issued notice of demand of Rs, 57. S4 lacs (Rs. 44.G1 lacs for penalty and Rs. 13.23 lacs for interest). The company has paid Rs.15 lacs upfront and appeal into Appellate Tribunal Delhi in 2007, for May 2011 matter disused off in favour of the company arid restricts the order impute Interest only. The department has challenged the opinion in 'Komura? High Court' and the scamp was dismissed by Single Judge Bench tin 27.Q3.2012, Department further filed an appeals with Divisional Bench and the said bench was asked for condemnation of delay in filing the appeal by PF department.
3. No provision has been made in accounts for gratuity and other retirement benefits accruing to employees which are not in accordance witty the Accounts Standard 15 and accounting policy of the company.
4. Accounting standard (AS-19) Lease Transaction Disclosures
The company had entered into an agreement in the nature of lease agreements for the purpose of Lease of Factory premises and Car. This is generally in the nature of operating :encase and disclosure required as per Accounting Standard 19 with regard to the above Is as under;
Assets acquired an Lease / Leave Office Premises, Factory Premises, Guest House and Vehicles. and License Period of Lease / Leave and License Varying between 2 years to 5 years Lease payments debited lo Profit and Rs. 3S,34,B3G/- (P.V, of Rs, 32,91,817/-} Loss Account (Including Car lease payment; Factory Rent, Branch Office Rent Guest Mouse Rent.)
5. Segment Reporting
The Company las only one business and geographical Segment viz. HDPE Tarpaulins and related products in India. Other business activities, including installation of pond, etc, during the year, does not qualify as time reporting segment in terms of AS-17, Hence no further disclosures are retired to be ma^ AS-17 on segment reporting,
6. Provision for Taxation
a| Current Tax: The company has made a appropriate provision for taxation for the year under the provision of the Income Tax Act, 1961
b) Deferred Tax: Deferred taxes recognized on timing differences in accordance with AS-22 issued by acacias per details given hereunder.
7. Related Parties Disclosures
(I). Names of related parties
Names of related parties were control exists i respective NI of whether transactions have occurred or not
Names of other related parties with whom transactions Nil have taken place during the year
Associates Nil
Key Management Personnel 1. Mr. Zuzar A, Kathawala
(Managing Director)
Relatives of key management personnel 1 A. G. Kathawala
2. Qusai Kathawala
3. Durriya Z Kathawala
4. Sunrise Carp. (Prop. Zuar Kathawala]
5. Silver Wings
(Prop. Zuiur Katriawala)
Enterprises owned or significantly influenced by key
1. Ambient Media Solutions Pvt. Ltd. management personnel or their relatives
2. Kathawala Healtori Lip
3. A.K- Packaging Pvt Ltd
4. Alban Communications (I) Pvt Ltd E. Niyuprene Plastics Co. pvt Ltd.
6. ShlrTiii Construction Pvt ltd
7. General Machinery
8. In the opinion of the Board, the assets (other than Fixed Assets and Non Current Investments) are approximately of the value stated, if realized in the ordinary course of business. The provisions for liabilities are considered to be adequate by the Board
9. General Notes:
I) In terror of notification GSR (129E) dated, 22.02.99 Issued by the department of the company affairs, the company is required to furnish the details of outstanding to SSI under taking under the head "Current liabilities & Provision" of amount more than one lacs and for the period of more than 45 days the company has requested to vendor to furnish requisite information along with their registration balance sheet, therefore the company is unable to furnish the particulars.
il) Income Tax assessments of the Company have been completed Lil the assessment year 2012 -2013 U/S143
Ill) Provision has for been made for Bonus Payable in the current year.
IV) The company has pledged the shares /the Bank against loan in the year 1997 with were half and owned by the Directors Mr. A. G. Kathawaij, Mr.Z.A. Kathawa-a and Mrs. D. Z. Kathawala and their relative Mrs. M. A, Kathawala, having market value at the lima around Rs. 10.00 Lacs to secure the company's liabilities for payment of long 'outstanding collection bill dated 17,07 1900 for USD 2 902 5/- (Rupees 7.42 La es).
We a regimens to under static that though the shares were p edged for a particular transaction and Lepton limited of Rs. 10.00 Lacs only, in theyearjanuary2000 the hank exercised their might convoke the pledge without giving notice tooth pledge and without restricting tip salt; to the profit Rs. 10 Lacs only, and according only sold the shakes for Rs. 2,83,50,938/- and created the proceeds to the companies account, The amount credited by the bank s shown under the group of unsecured loans from related party under Note No 4 (SIIDRT-TLRM BORROWINGS) of the Financial Statements.
V) As per the information available, the loan from Ambient Media Pvt. Ltd. for Rs. 1294.23 lacs (as mentioned in Mote No, 3 of the Financial Statements) is representing a son acquired by M/s Ambient Media Solutions Private Limited (AMSPL, Group Company) from Assets Reconstruction Company India Ltd.
During the earlier financial years, the company has made a Sum of Rs. 253-87 lacs to AMSPL as a part of settlement of loan (as mentioned in Note 15 to Balance Sheet), subject to fine! settlement. However during the current Financial Year, due to failure of the settlement proposal, the select amount was recovered back* by the company from AMSPL. However the company is still trying to ingot ate w it h t he A MSP Lor settlement of t h e loan.
10. The financial statements which describes that the Balance of Debtors, Creditors, Loans & Advances and Investments are subject to confirmation and reconciliation, if any, Hence, the effect thereof,, on Profit/ Loss, Assets and Liabilities, if any. Is not ascertainable.
11. Won forward exchange contracts are out standing on the balance sheet date which is entered to hedge foreign exchange e* pushes of t h e Company,
|