| 1. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Contingent Liability for pending litigation(s) are not accounted for in
the books of account.
Claims not acknowledged as debts As on 31.03.14 As on 30.06.13
Customs & Excise & Other
Disputed Liabilities 76.46 Crores 76.46 Crores
2. PAYMENTS DUE TO MSME UNITS: In the absence of comprehensive
details of MICRO, SMALL & MEDIUM ENTERPRISES industrial undertaking,
and non-intimation by the suppliers of their being MSME industrial
undertaking, the amount due to such suppliers as on 31.03.2014 could
not be determined.
3. ACCRUAL SYSTEM OF ACCOUNTING : The company has not accounted for
Employee Benefits as per Accounting Standard - 15.
4. FOREIGN EXCHANGE TRANSACTION : The Company has accounted Foreign
Exchange transactions on actual payment basis to the respective account
instead of showing separately in Exchange Fluctuation Account which is
a diversion from method specified in Accounting Standard -11.
5. EXCISE / CUSTOMS : The Company has maintained excise records in
manual as well as computerized formats. Generally, the manual records
of units have been audited and accepted by the Excise department.
However, the amounts reflected in the records maintained on ERP, which
are incorporated in the balance sheet, are pending reconciliation with
manual records. The impact of the same on the profitability of the
company remains unquantifiable.
6. NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGE IN
ACCOUNTING POLICIES :
The Company is not complying with the disclosure requirements of AS-5,
there are prior period expenses accounted for during the current year
amounting to Rs. 23.78 Crores.
7. CONFIRMATIONS: The balance shown in Sundry Debtors, Sundry
Creditors, Advances, stock with depots, deposits and bank balances are
subject to confirmation from respective parties.
8. Value of Imports on C.I.F. Basis (Duplex, SBS,& Writing
Printing)Raw Material: Rs. 3.29 Crores ($0.025 Crores)[P.Y. Rs. 15.53
Crores] ($0.0293 Crores) Imported Capital Goods: Rs. 0.00Crores ($ 0.00
Crores) [P.Y. Rs. 0.00 Crores ($0.00 Crores)
9. Earnings in Foreign Exchange: Export Value of Goods on F.O.B.
Basis is Rs. 0.00 Crores ($ 0.000 Crores), P.Y. Rs. 0.42 Crores ($0.008
Crores).
10. EXPORT TURNOVER: Total Turnover includes Export Turnover of Rs.
6.71 Crores (P.Y.2.6 Crores).
11. UNDER PROVISION MADE: The company has not provided for the
following:
a. Electricity Amount of Rs. 3.31 Crores.
b. Bank Guarantee encashed by WCL on account of cancellation of Supply
Agreement Rs. 4.08 Crores.
12. DEFFERED TAX ASSET: The Company has not recognized deferred tax
asset during the period, in view of continuous losses. The total
deferred tax asset upto last balance sheet date amounts to Rs. 226.95
Crore.
13. The Pulp Unit is not operational from last more than three years.
The management has not ascertained impairment loss if any on account of
closure of unit from last several years.
14. INCOME TAX: The Company does not have taxable income as per income
tax act and hence company has not made any provision for payment of
income tax.
15. WEALTH TAX: The Company has not made any provision for payment of
wealth tax.
16. The Company has incurred substantial losses and its net worth has
been eroded. The financial statements have been prepared on the basis
that the Company is a going concern and that no adjustments are
required to the carrying value of assets and liabilities.
17. 'Royalty on limestone' amounting to Rs. 9.33 Crores remains to be
paid to the government which may restrain company from any excavation
of limestone, In this respect the company contends that the said amount
is to be deposited and will be refunded under package scheme of
incentive 2007.
18. The company has filed a reference to Board for Industrial &
Financial Reconstruction (BIFR) under section 15 of Sick Industrial
Companies Act, 1985(SICA) on 26th November, 2013.
19. The Sales Tax Department attached the movable and immovable assets
(along with vehicles & land) of the company on 06.03.2014 to recover an
amount of Rs. 63.08 Crores from the company. In this respect the
company contends that the said amount is to be deposited and will be
refunded under package scheme of incentive 2007.
20. ACCRUAL SYSTEM OF ACCOUNTING: The company is generally following
the accrual system in its accounting, except Employee Benefits, which
are accounted on cash basis.
21. SECURITY DEPOSIT TO WCL: The security deposit of Rs. 4.08 Crores,
which the company had deposited with M/s. Western Coal Limited is under
litigation.
22. ACCOUNTING FOR GOVERNMENT GRANTS:
a) The company is entitled for incentives in respect of Cement & Paper
plants wherein the recognition provision have not been completely
complied with.
b) As per PSI 2007, the company should have recognized the amount
receivable to it only after depositing its statutory dues to the
government and should recognize the income as "Other Income" as per
accounting Standard 12, but the same is included in turnover. Though
the co
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