Majestic Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2009

1. a) In the opinion of the directors, "Current Assets, Loans & Advances are approximately of the vafue stated in the Balance Sheet, if realized in the ordinary course; and personal / party balances set out under the heads Debtors, Advances, Amount-Recoverable & Creditors, where not provided for or written off, are hopeful of recovery / good for payment and no provision for doubtful / unclaimed balances is required, in respect thereof. Personal / party / bank balances remained unconfirmed as on 31st March, 2009.

b) Sundry unclaimed credit balances aggregating to Rs. 3,310,619/-, considered by the Board of Directors as time-barred and not payable anymore, have been written off and set out under the head "Other Income". Correspondingly, sundry debtors & advances amounting in aggregate to Rs. 1,609,538/- considered not recoverable at all, have been written off completely as bad debts reflected under the head "Extra-ordinary Items" in the Profit & Loss Account.

2. The Company became a sick industrial company within the meaning of section 2(f)(46AA) of the Companies (Second Amendment) Act, 2002. Board for Industrial & Financial Reconstruction (BIFR) in the order dated 09th August, 2005, on the reference of the Company made on 20th August, 2001 u/s 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 and registered as case No. 39/2002, declared the Company as sick under clause (o) of sub-section (1) of Section (3) of the Act and appointed Industrial Development Bank of India as Operating Agency u/s 17(3) of the Act to prepare Rehabilitation Scheme. However, the net worth of the Company has turned positive thereafter.

In the opinion of the management, the registration of the Company as a sick industrial company as aforesaid does not have any impact on the going concern status of the Company, since the Company does not have any secured borrowings.

3. Production activity of the Company was discontinued irfan earlier financial year and subsequently, the plant was also sold / disposed off. During the year under review, the management disposed off an old vehicle, which in the opinion of the management, also did not have any impact on the going concern status of the Company.

4. Allotment Money (Rs. 7.50 per share) remained in arrears in respect of 2,540,800 Equity Shares (Rs. 2.50 paid- up per share). Forfeiture of said shares is yet to be concluded.

5. Security Deposits (Rs. 1,770,000/-) with Ludhiana Stock Exchange, representing refundable deposit, a pre- requisite in respect of right-cum-public issue relating to earlier years, since under litigation, is pending recovery.

6. Amount Recoverable (Rs. 2,397,860/-) comprises of amount due from Steel Authority of India Ltd. (Rs. 2,305,724/-) debited iQ an earlier year; recoverable from Mr. Bolin Chetia (Rs. 75,000/-); Income Tax Recoverable (Rs. 7,136/-); and Penalty under Central Excise Act deposited under protest (Rs. 10,000/-).

7. Sundry Creditors include Arrears of Listing Fee (Rs. 1,341,250/-) due to stock-exchanges. Sundry Creditors- Others include advances received against sale of goods / other assets, in earlier years.

8. Other Administrative Expenses include penalties (Rs. 45,095/-) comprising: (a) Rs. 45,000/- deposited with Department of Company Affairs, in pursuance of order in respect of proceedings against the Company and its directors under various provisions of the CompaniesAct, J 956; and (b) Rs. 95/- levied by Department of Excise & Taxation in respect of Central Sates Tax. Certain expenses have been un-vouched / supported by internal / corroborating evidences only.

9. Provision for Income Tax has not been made during the year, in wake of losses. Provision for Fringe Benefit Tax has been made as per applicable provisions. The exact liability of Taxes and Duties is indeterminate pending finalization of assessments. Provisions of Chapter XVII-B of the Income TaxAct, 1961 have not been strictly adhered to, during-theyear.

10. The accounts of the Company have not been authenticated by a whole-time company secretary since no whole-time secretary, as required under section 383A of the Companies Act, 1956, is in employment with the Company.

11. Managerial Remuneration:

No managerial remuneration has been paid / provided by the Company, during the year.

12. The information in respect of outstanding dues, exceeding rupees one lac for more than thirty days, to smaH scale industrial undertakings could not be compiled in absence of information / confirmation from the creditors.

13. Deferred Tax Asset/Liability:

As advised by the experts, and in view of brought forward losses and uncertain business prospects, the management does not foresee any deferred tax asset / liability and therefore, no provision has been made in respect thereof.

14. Related Party Disclosures:

Related parties and transactions with them, during the year, as identified by the management are given below:

a) Remuneration: Rs. 1.38 lacs paid to relative of Key Managerial Personnel Mr. N.K.Gupta. -

b) Unsecured Loans from Mr. N.K.Gupta, Kay Managerial Personnel: Opening Balance - Nil; Receipts during the year- Rs. 14.00 lacs; Repayments during the year - Nil; Closing Balance - Rs. 14.00 facs; Maximum Balance-Rs. 14.00 lacs.

15. As explained in para-3 above, the total operations of the Company have been discontinued and since 30.09.2005 no business activity is being pursued except sale of assets in piece-meal. The whole of the financial statements referred to herein pertain to the discontinued operations.

16. The Management has reviewed, during the year, the carrying value of the assets for finding out the impairment, if any. Save the remaining portion of discarded / dismantled / demolished / scrapped assets put to sale, which have been carried at recoverable amount as detailed in foregoing paragraph, the review has not revealed any impairment of assets in terms of Accounting Standard AS-28.

17. No managerial remuneration has been paid during the year (Previous Year -r Nil).

18. The Company did not carry on any manufacturing/trading activity during the year (Previous Year- Nil), therefore, the provisions of paragraphs 3,4-C & 4-D of Part-ll of Schedule VI of the Companies Act, 1956 are not applicable (Prev. Year-Nil).

19. There were no transactions in foreign currency during the year (Previous Year- Nil).

20. There were no Contracts remaining to be executed on Capital Account and not provided for, as on 31 st March, 2009 (Prev. Year-Nil).

21. Contingent Liabilities not provided for:

a) A civil writ petition of the Steel Authority of India Ltd. is pending with Honble Supreme Court of Indi ,, against order of Honble Punjab & Haryana High Courts* in favour of the Company in respect of f.n arbitration award, whereby an amount of Rs. 81.94 lacs is due to be received from SAIL together wvh interest Rs. 146.55 lacs (upto 31 st March, 2009), over & above the amount already received Rs. 56 -J4 lacs inclusive of interest Rs. 2.32 lacs in the financial year 1994-95. Till date, only the amount already received as aforesaid and amount reflected under the head Amount Recoverable Rs. 23.06 lacs, as detailed in paragraph-5 above, has been recognized by the Company as revenue in the preceding years.

b) Adjudication / appellate / remanded-back proceedings are pending with various Central Excise Authorities with regard to levy of penalties, aggregate liability in respect of which is yet to-be determined. However, no demand for central excise duty (as distinguished from penalty) is involved in the said cases.

22. The previous years figures have been reworked, regrouped and rearranged wherever considered necessary. Accordingly, the figures and other disclosures for the preceding year have been incorporated as integral part of the current years financial statements and are to be read in relation to figures and other disclosures for the current year.

23. Figures have been rounded off to nearest rupee.