Balaji Industrial Corporation Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

Note No. 1: CONTINGENT LIABILITIES (Rs. In lacs)

As at 31.03.14 As at 31.03.13

Claims against the company not acknowledged as debts:

I) Income-Tax demands against which the department has gone on appeal. 285.56 285.56

II) Sales-tax demands against which company has gone on appeal. 152.04 152.04

A Sum of Rs. 119.33 lacs has already been paid/ adjusted against this liability

III) Excise demand against which Central Excise Department has gone on appeal before Hon''ble High Court, Andhra Pradesh

A sum of Rs.9.00 lacs has already been paid / adjusted against this liability. 157.58 -

IV) Guarantees issued and outstanding 1512.00 4245.00

Note No. 2: LEGAL CASES

Dues with Banks / Institutions have been settled in OTS during the year and all the legal cases initiated by the Creditors against the Company have been withdrawn and as on date there are no legal proceedings pending against the Company.

Note No. 3: CASE BEFORE BOARD FOR INDUSTRIAL AND FINANCE RECONSTRUCTION (BIFR)

The Hon''ble Board for Industrial and Financial Reconstruction (BIFR) has declared the Company as Sick Industrial undertaking in terms of Sec 3 (1 )(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 at it''s hearing held on 12th February, 2007 and IFCI was appointed as Operating Agency (OA) under section 17(3) of the Act with directions to prepare a revival scheme for the Company.

The AIFR has directed the Company to submit DRS to the Operating Agency and the Company had submitted DRS to Operating Agency and the case is pending before BIFR.

Note No. 4: In view of the brought forward unabsorbed losses, there is no liability as per Income tax Act, 1961.

Note No. 5: In respect of loan availed from M/s. Prayag Enterprises Private Limited, the Company is in the process of creation of charge on land and buildings situated at Nellore, as required by Companies Act, 1956, by way of security.

Note No. 6: The Company has settled all the dues to Banks / Institutions under One Time Settlement (OTS) entered with them and as a result, a sum of Rs. 4,71,69,432/- has been transferred to Capital Reserve due to remission in the Principle portion of the liability.

Note No. 7: The IMFL Distillery unit at Jeedimetla, Hyderabad is being revived. In that connection a sum of Rs. 20,01,48,000/- has been paid to the Government of Andhra Pradesh towards arrears of annual license fee.

Note No. 8: The Steel Division at Nellore has been closed down. Out of the Steel Ingots and Billets on hand, 50.96 M.T have been sold during the year and the balance quantity of 30.19 M.T remained as raw material stock on hand at the year end.

Note No. 9: The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule-VI of the Companies Act, 1956 could not be provided.

However, we have not provided any interest for delay in payment as per contractual terms, if any, for the enterprises covered under the above act.

Note No. 10: In the absence of operational profits during the year, the Company has not proposed dividend on Preference Share Capital. Since these shares are cumulative, the dividend accumulated up to the current year isRs. 4,73,26,712 (Previous year-Rs. 3,70,76,712).

Note No. 11: The balances of Sundry Debtors, Creditors, and Loans and Advances are subject to Confirmations.

Note No. 12: Previous year''s figures have been regrouped / re classified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2011

1. NON CONVERTIBLE DEBENTURES

Non Convertible Debentures of the face value of Rs.20 crores issued to Oriental Bank of Commerce are yet to be redeemed due to paucity of funds. Debenture Redemption Reserve has not been created till date in the absence of operational profits.

2. PREFERENCE SHARES

a) The company has not redeemed the preference shares due for redemption in October, 2001 and October, 2003 issued to Oriental Bank of Commerce, due to paucity of funds.

3. CONTINGENT LIABILITIES (Rs. In lacs)

As at 31.03.11 As at 31.03.10

Claims against the company not acknowledged as debts:

I) Income-Tax demands against which the department has gone on appeal. 274.00 274.00

II) Sales-tax demands against which company has gone on appeal. 153.58 153.58

A Sum of Rs. 119.84 lacs has already been paid/ adjusted against this liability

III) Guarantees issued and outstanding 4245.00 4245.00

4. LEGAL CASES

Some of the banks/institutions where payment of interest / principal are in arrears, have filed cases against the Company for recovering an aggregate sum of Rs. 7,948.37 lacs (previous year 12,470.08 lacs) and the same are pending before various courts. The company is negotiating for waiver/concessions in interest/principal. Consequently no provision has been made for interest/ charges on such loans.

Some of the Non-banking finance companies have filed civil/ criminal cases for recovery of debts and dishonoring of cheques and the same are pending before various courts.

5. DEFERRED TAX

During the current year, due to timing difference, there has been decrease in deferred tax liability to the tune of Rs. 1,658,291/-.

6. DIRECTORS' REMUNERATION

a) As no commission has been paid to the directors, the computation of Net Profit for the purpose of Directors Remuneration under Sec.349ofthe Companies Act, 1956isnot enumerated.

7. OTS SCHEME

The Company has fully paid the loans due to a Bank under One Time Settlement Agreement (OTS) entered with them. As a result, a sum of Rs.3,142.96 lakhs has been transferred to Capital Reserve due to remission of the principle.

8. SEGMENT REPORTING

The company has disclosed business segment as the primary segment. Segments have been identified taking into account nature of products and services, differencing risks and returns, the organisation structure and internal reporting system.

The Company's operations predominantly relate to Manufacture of Iron Steel Bars. Other business segments are Trading in Empty Bottles.

The company's entire business is in domestic market as such there are no reportable Geographical segments.

Segment revenue, Segment results, Segment Assets and Liabilities include the respective amounts identifiable to each of the segments has also amounts allocated on a reasonable basis.

The net expenses, which are not attributable to the business segment, are shown as un allocated corporate cost.

Assets and liabilities that can't be allocated between the segments are shown as part of un allocated corporate assets and liabilities respectively.

9. RELATED PARTY DISCLOSURES

a) List of Related Parties as identified by the Management are as under

Key Management Personnel of the Company: Shri M Sreenivasulu Reddy

Sl. Enterprises owned by / Over which key Management Personnel are No. able to exercise significant influence

1. Balaji Hotels and Enterprises Limited

10. The Company's operations at IMFL manufacturing unit at Jeedimetla, Hyderabad has been suspended.

11. The furnace division at Nellore is closed and not in operation.

12. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this Regard as per Schedule VI of the Companies Act, 1956 could not be provided.

However, we have not provided any interest for delay in payment as per contractual terms, if any, for the enterprises covered under the above act.

13. In the absence of operational profits during the year, the Company has not proposed dividend on Preference share capital. Since these shares are cumulative, the dividend accumulated up to the current year is Rs. 369,411,530 (Previous year– Rs. 341,661,530 ).

14. The balance of Sundry Debtors, Creditors and Loans and Advances are Subject to confirmation.

15. Previous year's figures have been regrouped, reclassified and re arranged wherever necessary to conform to current year's presentation.

16. Figures have been rounded off to the nearest rupee.