Kumaka Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

1. The balances are subject to confirmation from the parties. However, the Some of Creditors were written off during the Year. The Balance Confirmation Certificate at the Year End were Not Obtained by the Company in case of all the Creditors, Sister Concern, Associate Concern, Directors , Director Relative Account. As required by the notification no.GSR 129(E) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law , Justice and Company Affairs based on the information available with the Company in respect of the status the suppliers, being Small Scale Industrial Undertaking, the information carried for by the company has been received and as such liability for amount owed in excess of Rs. 100000/= for such supplier has been given.

2. In the opinion of the Board of Directors, the Other Current Liabilities are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business. The balances are subject to confirmation from the parties. Unclaimed Dividend amounting to Rs. 1,08,069 is unclaimed for more than Seven Years and is deposited in Ministry of Corporate Affairs , Delhi on 15/04/2013. However DD Drwan before 31/03/2013.

During the Year under Audit the Company has W/OFF and W/BACK Outstanding Balance in Unsecured Loan,Other Liability.

The Balance Confirmation Certificate at the Year End were Not Obtained by the Company in case of all the Creditors, Sister Concern, Associate Concern, Directors, Director Relative Account.

Provision for taxation is not required to be made as there is no taxable income as per the provisions of the Income Tax Act,1961.

Since Financial Year:2010-11 the Company has entered into agreement for Sale of Nadesari Unit, CAD Unit, Pungam Unit and Ankleswar-GIDC Unit and also received advance against such Sale , the same is shown as Advance From Prties. Also Refer Point No. 2.23 of Notes on the Financial Statements , as regards Various Liabilities Written Off. The Company is Registered with GBIFR Vide their Letter No.:IC/IM/SUR/24545-2011/T-16/749780.Dated:21-09-2012. Registration Number is 12 Dated : 21/09/2012.

Wherein the Company is expecting to get the Waiver of Interest , Penalties etc. On Sales Tax , GIDC Dues , Electricity Duty based on the Directions of Govt. Of Gujarat & Pending Settlment Dues Payable to GOG of Rs. 14.96 Lacs. (PY. Rs.102.78 Lacs.) have been shown in Statutory Dues. The GOG has introduced New Scheme in Place of Its earlier Scheme, for Relief to the Sick Industrial Units Registered with the BIFR Vide GR BFR/(HPC)/102009/435690/P Dated : 15/07/2010.

3. The Company has not accounted for the impairment losses on account of diminution in the value of fixed assets including capital work in progress in respect of incomplete project as the management is not in position to estimate the exact nature and quantum of loss on this account. Management feels that upon revival of operations the company would be in position to work out loss on this account. The Fixed Assets Register is required to be Produced before us for our verification.

4. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business. The balance of Sundry debtors includes overdue balance from various parties and also efforts are being made for recovery from such parties.The balances are subject to confirmation from the parties.

During the Year under Audit the Company has W/OFF and W/BACK Outstanding Balance in Loan and Advances Account The Balance Confirmation Certificate at the Year End were Not Obtained by the Company in case of all the Sister Concern, Associate Concern, Directors , Director Relative Account. Please Refer Notes on Accounting Policies wherein as per requirements of AS-18 for Related Parties Transaction were mentioned in Details on Point No.2.22.

4. In Respect of Contingent Liability : 31.03.14 31.03.13

1 Contingent Liabilities in respect of -

a. Income tax and Sales tax matters 67,33,054* 67,33,054*

b. Excise & Other matters 3,06,28,381* 3,42,42,985*

c. GEB (DGVCL) 40,245* 40,245*

* Interest between @1 to 2%P.M. is added to The Principle Outstanding Amount. Till 31-08-2008.

* In a Above Includes KACL Contingent Laibility of Rs. 10,25,21,860/-

* In b Above Includes KACL Contingent Laibility of Rs. 2,43,54,288/-

* In c Above Includes KACL Contingent Laibility of Rs.15,16,59,386/-L.Y. & IN C.Y. of Rs.40,245/-

NOTE:

(i) The Company has preferred appeals against demand under c above.

(ii) The Company had disputed the electricity charges raised by Gujarat Electricity Board in arbitration proceedings.

The award is in the favour of the company.However Board has Passed the Ressolution on the Basis of letter of DGVCL to Industry Commissioner for outstanding Dues of the Company & hence Liability for GEB Dues is considered at Rs.40,245/-

(iii) The Sum of Rs. 22.90 Lacss being Payment under Protest has been written off and Rs.1.09 Lacs being paid to Daurala Sugar towards Sales Tax deposit. The exact outcome of the notices issues by the appropriate authority could not be ascertained in absence of requisite information. This is as per information & explanation given to us.

(iv) In terms of consent term reached in response to the legal proceedings between the company and Unsecured Creditors , The Company agreed to pay dues towards Creditors in installments. The company has stopped the payment of these installments. The liability , is stated at the amount as per the consent Term Unsecured Creditor has separately approached the H''ble Bombay High Court.

5. In Respect of Refrence made to GOG Scheme :

The accounts have been prepared on "Going Concern" assumption despite continuous losses, erratic operation, complete erosion of the net worth of the company. Company is referred to GBIFR for rehabilitation and revival.

6. In Respect of Previous Years Figures :

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. The Revised Schedule VI does not require presentation of a reconciliation explaining the impact of the reclassification of the previous year figures in the financial statements. The Previous year''s figures have been regrouped / rearranged wherever found necessary.

During the Financial Year 2010-11 the Company has entered into agreement for Sale of Nadesari Unit , CAD Unit and Ankleswar - GIDC Unit as a Whole and also received advance against such Sale. The Necessary Procedure as prescribed U/s. 293 of the Companies Act, is to be Complied with. Details of the same are as under :

7. In CAD Unit :

During the FY : 2011-12 All P & M were sold to Kohinoor Enterprise for Rs.400 Lacs at a Loss of Rs. 2456.85 Lacs And Whole of the Bulding Scrap was Sold along with Building Scrap of Pungam to Suffian Steels for Total Amount of Rs.18 Lacs. No Advance Balance Amount Except Rs.25 Lacs Towards Security Deposit of Kohinoor Enterprise was Laying at the Year end.

8. In Pungam Unit During the FY : 2011-12 All P & M Except Land & Building. Were Sold to Kohinoor Enterprise For Rs.210 Lacs at a Loss of Rs. 113.49 Lacs. Sold Amount is Adjusted from the total Amount Received of Rs.210 Lacs, And No Advance Balance Amount as on 31-03-2014. Bulding scrap was Sold along with Building Scrap of CAD to Suffian Steels for Total Amount of Rs.18 Lacs. No Advance Balance Amount was Laying at the Year end. During the Previous Year Land was Sold at Rs.6.27 Crores to Shree Anu Enterprise, Ankleshwar.The Payment was received in full.

There are Pending Dues against the Companies by the Sales Tax department . However During the Previous Year Company is Registered with the GOG Scheme as mentioned in the Report.

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Mar 31, 2013

1 During the Year Direct Payment made by Panoli Intermediates to the Nandesari Industrial Association Towards Water Charges , Notified Area Taxes (Charges) And Nandesari Indutrial Association Charges were accounted as Prior Period Expenses and short Provision in respect of the same compare to Actuals were accounted in Outstanding Liability.

2 During the Year the Companies Application to GBIFR is Registered for Relief in the State Government Statutory Dues in Interest and Penalty and thereby the Liabilities as provided in the Books of Accounts were written Off Treating the Provision already made Over & above the Principle Liability in respect of the State Government Dues as Excess Provision and only Principle Liability is Continued to be Accounted in O/s. Liability/ Provisions.

This is mainly in respect of Sales Tax/VAT Liability,GIDC Liability in respect of NAA Charges,Notified AreaTaxes (Charges),Water Charges, Land Revenue, Drainage Cess & Contribution And Ukai Water Charges.

3 Excise Duty Payable is written off Fully as it is No More Payable , As Per Management Certificate.

4 Management decided to Write off Old Outstanding Liabilities in respect of Various Expenses which were already Provided and Paid.

5 During the Year Old Outstanding Credit Balance of Abhigam Consultants P.Ltd. & Transpeak Finance Ltd. is written off to the extent it is not Payable to them as OTS was made with them.

6 During the Year Old Outstanding Debit Balance of Fincab India Pvt. Ltd. is written off to the extent it is Not Recoverable from them.

7 Staff Loan & Other Loans & Advances to Staff were Adjusted against the Salary Payable at the Year end.

8 During the Year Settlement with 65 Workers/Staff was Accounted. One Compensation Claim is also settled during the current Year.

9 During the Current Year Providend Fund Payable/Libility is Paid off for Ankleshear GIDC PF Dues and as regards other Two PF Numbers i.e.Towards Nandesari and Pungam it was informed to us that there is No Outstanding Libility towards the same.

10 During the Year One of the Director of the Company has given his Car on Rent to the Company and for the said Transaction Company has given Deposit of Rs.10 Lacs to Director.The same is Authorised by the Resolution of Board Meeting.

11 As per information & Explanantion given to us there are 45 Labour Cases &18 Gratuity Cases are yet to be Settled at the Year End. Contingent Liability for the same is considered of Rs.60 Lacs in Excise & Other Matters.

12 Cash & Bank Balance as on 31/03/2013 is Certified by the Management.

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Mar 31, 2010

31.03.10 31.03.09

1 Contingent Liabilities in respect of

a. Income tax and Sales tax matters 154,255,956* 154,255,956*

b. Other matters 150,594,653* 150,594,653*

c. GFB(DGVCL) 1 b 1,659.38* 151,659,386*



*Interest between @1 to 2%RM. is added to The Principle Outstanding Amount Till 31-08 2009.

NOTE.

(i) Company has preferred appeals against demand under a, b, and c above.

(ii) Company had disputed the electricity charges raised by Gujarat Electricity Board in arbitration proceedings. The award is in the favour of the company. However, the Gujarat Electricity Board has beon sooking the legal interpretation in respect of the award before tho court of law. The quantum of liability is not ascertainable at this stage.

(iii) Companys chlor-alkali unit was enjoying the benefits granted to prestigious unit as per the local sales tax laws in the state of Gujarat are subject to various conditions, non fulfillment of which may disentitled tho company for tho benefits granted or any other consequences.

(iv) Tho total sales tax liability, which is payable in installment as per tho scheme applicable to prestigious unit as explained in (iii) above amounting to Rs 33.78 lacs is not backed by investment.

(v) Company had from time to time deposited a sum of Rs. 28.38 Lacs with Oona Bank towards margin money. Tho said amount is reflected as a part of Cash and Bank Balances. The said amount is not considered as a part of settlement dues as per the proposed scheme of arrangement under section 391 of Companies Act, 1956 that is pending for disposal with Hble Bombay High Court. In absence of any details in this regard the said amount is carried forward as a part of Cash and Bank Balance. Further, it is not possible to ascertain the value of guarantees issued by tho company.

(vi) "Loans and Advances" includes sum of Rs. 22.90 being Payment undor Protest and Rs. 1.70 Lacs being paid to Daurala Sugar towards Sales Tax deposit. Both these sums were deposit as per tho direction of Court / Appropriate authorities. The exact outcome of the notices issues by the appropriate authority could not be ascertained in absence of requisite information.

(vii) In terms of consent term reached in response to the legal proceedings between the company and IIT Capital Services Private Limited, company agreed to pay duos towards IIT Capital in installments. The company has stopped the payment of these installments. Tho liability is however, is stated at the amount as per the consent term. IIT Capital Services has separately approached tho Hble Bombay High Court and filed their objection in response to the companys scheme of arrangement under section 391.

2 (a) Company has taken over the chlor-alkali Unit, with all its assets and liabilities on going concern basis, from Kadakia alkalies & Chemicals Ltd. (KACL) wholly-owned subsidiary, effective from 1st June, 2005.

(b) Tho borrowings from ICICI (Principal Amount :Rs.2245 Lacs), Bank of Baroda (BOB) ( Principal Amount: Rs.1500 Lacs ) and Bank of India (BOI) Principal Amount: Rs.550 Lacs) for setting up Chlor-alkali Unit and by Dena Bank (Principal Amount : Rs.170 Lacs) for setting up Down- stream Projects of chlor-alkali, all at Boridara, Tal. Ankleshwar, Gujarat is secured by mortgage / hypothecation on Companys immovable properties, plant and machinery situated at Nandesari, Ankleshwar and Pungam and Guaranteed by some Directors.

(c) Working Capital Facilities from Dena Bank had been given to the Company for all its operations, including the operations of Chlor-alkali Unit. The amounts of Working Capital Facilities of the Company and Chlor-alkali division previously owned by KACL in aggregate are secured by hypothecation of inventories, book debts, documentary bills and third party cheques in favour of the Company. The facilities are further secured by second charge on fixed assets by mortgage / hypothecation on immovable properties, plant and machinery of the company situated at Nandesari, Ankleshwar and Pungum and chlor-alakli division situated at Boridara and Guaranteed by some Directors.

During the Financial Year 2007-08 the company has paid Rs. 196.56 Lacs to Dena Bank towards Proposed settlement §cheme.

3. The outstanding loans from ICICI, BOI and BOB is transferred to Asset Reconstruction of India (ARCIL), as reflected in the schedule of "Secured Loan" forming part of the balance sheet, as per the communication received from them. Tho total outstanding due to ARCIL as per this communication is 131.11 crores. However the Present position before the date of signing of the Balance- Sheet vide ARCIL Communication Letter dated: 20-04-2009 is Amounting to Rs.15 Crores for settlement but however the same is not yet in effect. Arcil has issued Notice under Secton 13(4) of the SARFAHSI Act and the Rules Framed there under. Arcil has taken tho Possession of the Assets on 31-07-2008.

During the Year under Audit the Company has finally entered into settlement Scheme with the ARCIL Wherein it was decided to Pay Rs.14 Crores to ARCIL vide ARCIL Communication Letter dated: tho Company in turn paid Rs.5 Crores to ARCIL During tho year under Audit and the Balance Amount of Rs.9 Crores to be Paid upto 31-03-2011. Similarly, Dena Bank Term Loan outstanding is Rs.3.12 Crores taken as per the notice under SARFAfcSI Act. The total outstanding as communicated by Dena Bank as per the notice under SARFAESI Act is Rs. 39.77 Crores including the Working Capital Facilities sanctioned to the Company and KACL.Dcna Bank vide their Letter Dated : 05-01-2009 has approved Compromise Settlement for Rs.318.31 Lacs but the same is not yet Implemented and given effect by the Company.

However during the Year tho Company has entered into Settlement with the Bank and Partial Payment of Rs.2.48 Crores was made to the Dena Bank and remaining payment of Rs.2.48 Crores will be made before the next year end and Interest @12% PA. will be payable from April,2010 on O/S Amount till the Amount paid in full.

4. Company has accounted for difference of Rs 112.37 Crore between the liability as communicated to the company and as reflected in the books as on 31.03.2005 as part of finance cost. The finance cost and secured creditors as on the date of balance sheet are higher by an amount of Rs 112.37 Crore.

5. Company has proposed a schema of compromised of debts due to creditors, both secured as well as unsecured, and filed relevant petition U/s 391 to 394 of Companies Act, 1956 before Hble High Court of Mumbai. The scheme is Rejected by the High Court and the company has not provided any interest on borrowings as the company is not expecting any further claim on this account. However the Matter is Referred to the Supreme Court and it is Pending.

6. Provision for taxation is not required to be made as there is no taxable income as per the provisions of the Income Tax Act, 1961.

7. In the opinion of the Board of Directors, the current assets, loans and advances arc approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business. The balance of Sundry debtors includes overdue balance from various parties and also efforts are being made for recovery from such parties. The balances are subject to confirmation from the parties.

8. the consolidation accounts of wholly owned subsidiary, M/s. Kadakia Alkalies and Chemicals Limited, is not carried out as the subsidiary is under severe long -term restriction, continuously incurring losses and referred to BIFR. However the case was abated by BIFR vide Order Dated : 04-04-2007 But the matter was referred to AAIFR in the Year 2007 and vide AAIFR order dated : 31 07-2008, the Appeal was Dismissed for "Non Prosecution"

9. The Companys application under SICA, 1985 before the BIFR Board is abated Under the third Proviso of Section 15(1) of SICA, Vide Order Dated 12-05-2009.However as the Company is still A BIFR Case and ones again it was decided by the Board to refer the Matter to BIFR, as per the Provisions of SICA.1985.

10. Unclaimed Dividend amounting to Rs. 1,08,069 is unclaimed for more than seven years and is not deposited in investors Fducation and Protection Fund.

11. The accounts have been prepared on "Going Concern" assumption despite continuous losses, erratic operation, complete erosion of the net worth of the company. Company is referred to BIFR for rehabilitation and revival. Company has also proposed scheme of compromise and arrangement of dues pertaining to creditors; both secured as well as unsecured creditors.

12. As required by the notification no. GSR 129 (E) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs based on the information available with the Company in respect of the status the suppliers, being Small Scale Industrial Undertaking, the information carried for by the company has not been received and as such liability for amount owed including interest in excess of Rs. 100000/- for such supplier has not been Calcom Institutue Management

(Non Profit Edu. Trust)

Laxmi Electronics

S.K. Malik (HUF)Calcom Institutue of Management

(Non Profit Edu. Trust)

Laxmi Electronics

S.K. Malik (HUF)en given.

13. The companys borrowings from Dena Bank are secured by companys assets. In addition a collateral security, in the form of office premises, is provided by M/s. USM Enterprises. Company have provided refundable security deposit of Rs 624.48 lacs as the Dena Bank has taken over the said collateral under the provisions of SARFAESI Act. The company has taken necessary steps to repossess the collateral security owned by M/s USM Enterprises.

14. Company has not accounted for the impairment losses on account of diminution in the value of inventory and fixed assets including capital work in progress in respect of incomplete project as the management is not in position to estimate the exact nature and quantum of loss on this account. Management feels that upon revival of operations the company would be in position to work out loss on this account.

15. Company has agreed to the merger of its wholly owned subsidiary M/s Kadakia Alkalies and Chemicals Limited and necessary petition have been filed in High Court of Bombay and Gujarat. The merger is proposed as a part of scheme of arrangement u/s 391 to 394 of Companys Act, 1956.Tbe matter is yet pending with the High Court of Bombay and Gujarat.

16. The User agreement with DAPL also provides for meeting of obligation both statutory and otherwise by user that is DAPL upto the period of the agreemont, even after Expiry of the User agreement.

17. The Company has not Complied with the Provisions of Income Tax for TCS & TDS.

18. The Company has to obtained closing Bank Balance Certificate of all the Banks at the year end i.e. as of,31-03-2010.

19. The Company has provided for F.D. Interest on Accrual basis, however Interest Certificate for the year is yet to obtain from the concerned Bank.

20. Previous Years Figures have been Regrouped & Rearranged wherever found nocossary.

21. There are Pending Attachments against the Companies Assets Movable & Immovable including that of Plant & Machinery, Land & Building by the Sales lax department.

22. As per information & explanation given to us that One of the Share holder has filed Suit against the Company for Refund of Share Application Money with Interest.

23. During the Year under Audit the Company has initiated the matter with the Bombay Stock Exchange for re-listing of the Shares.

24. During the Year under Audit the Company has entered into agreement for Sale of Nadesari Unit as a Whole and also received advance against such Sale of One of the Undertaking. The Necessary Procedure as prescribed U/s. 293 of the Companies Act, is to be Complied with.

25. The Fixed Assets Register is required to be Produced before us for our verification.

26. During the Year under Audit the Company has Sold its Bombay Office, Furniture & Fixtures and A.C.. The necessary Approval from the Banks/Financial Institution/ ARCIL is required to be Obtained. The Amount received towards sale of A.C & Furniture & Fixtures is Rs.27 Lacs.

27. During the Year under Audit the Company has W/0FF and W/ BACK Outstanding Balance in S.Drs.,S.Crs. Account. The Balance Confirmation Certificate at the Year End were Not Obtained by the Company in case of all the Debtors,Creditors, Sister Concern, Associate Concern, Directors, Director Relative Account.

28. During the Year under Audit Share Holding Pattern of the Company has Changed as One of the Director Shri P. M. Kadakia alone Holds 87.58% of shares of the Company.