SDF Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

1 In accordance with Accounting Standards(AS - 28), during the period, the company has reassessed its fixed assets and is of the view that no further impairment/reversal is considered to be necessary in view of its expected realizable value.

2 The company is engaged in manufacture of ENA (Extra Neutral Alcohol) and blending and bottling of IMFL. During the year, the distillery unit has not functioned and hence the results of the company relates to one segment only viz. Blending & Bottling.

3 Note on Turnover Tax

The company has a turnover tax liability of Rs 3,69,82,841/- which has been fully provided for in the books of accounts as on 31-03-2014. The company has included a prayer to settle the Turnover Tax (TOT) dues in its Draft Rehabilitation Scheme (DRS) which was submitted by the Operating Agency (OA), M/s State Bank of Travancore to the Honourable Board for Industrial and Financial Reconstruction (BIFR). As per the DRS, the concessional rate of interest on TOT dues will be started from the date of sanctioning of the DRS. The company is waiting for a final verdict from the Honourable BIFR. In view of the above the management feels that no provision for interest on turnover tax liability is required to be made in the books of accounts at this stage.

4 Contingent liabilities

(a) Claims against the Company not acknowledge as Debt

i) ESI Liability against which the Company has preferred appeals 46,35480 46,35480

(ii) Turnover Tax relating to bottling parties(Refer Note 26.1) 1,00,54196 1,00,54,196

(iii)Employees dues in litigation 46,043 46,043

(iv) IMFL old stock Excise duty in appeals 41,92,087 41,92,087

(v) Import fee on Grape & Malt Spirit 131840 1,31,840

(b) Guarantees Nil Nil

5. The Turnover Tax liability of Rs. 1,00,54,196 represents amount remaining unpaid by bottling parties. This amount is contingent in nature and pertains to earlier years''. The Company has taken steps to collect the same from bottling parties. The Operating Agency M/s State Bank of Travancore has submitted the Draft Rehabilitation Scheme, including the same as Turnover Tax payable and receivable from bottling parties, before the Hon''ble Board for Industrial and Financial Reconstruction (BIFR) for the company''s reconstruction on 21.11.2013. As the company is still awaiting the verdict from Hon''ble Board for Industrial and Financial Reconstruction , the company is of the opinion that no provision is required for the said amounts at this stage.

6. Note on Deferred Tax Asset (Net) The Company has recognized deferred tax asset to the extent of deferred tax liability arising during the year. The balance of deferred tax asset on timing differences arising on account of depreciation and carried forward losses has not been recognised as the management believes that there exists no certainity in matter to its realisations.

7. As the company is a sick industrial company under subsection (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act 1985 (1 of 1986), registered with BIFR and company has sufficient carry forward losses, hence there is no tax liability under Minimum Alternate Tax (MAT) or under normal provision of the Act during the year.

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Mar 31, 2013

1.1 Advertisement and Sales Promotion

Certain Promotional and Marketing expenditure for the business of the company are supported by internal vouchers in view of nature of the expenditure and are approved by the board of directors, the amount of which is not considered material.

2 In accordance with Accounting Standards(AS - 28), during the period, the company has reassessed its fixed assets and is of the view that no further impairment/reversal is considered to be necessary in view of its expected realizable value.

3 The company is engaged in manufacture of ENA(Extra Neutral Alcohol) and Blending and Bottling of IMFL. During the year, the distillery unit has not functioned and hence the results of the company relates to one segment only viz. Blending and Bottling.

4 Disclosure of transactions with related parties as required by accounting standard 18 on related party disclosures as prescribed by companies(accounting standards)rules 2006:

4.1 List of Related Parties

4.1.1 Key Management Personnel K.V Mohan Menon Chairman & Wholetime Director

5 Note on Turnover Tax

The Company has a turnover tax liability of Rs. 3,69,82,841/- as per books, which includes the amount received from one bottling party as due on 31-3-2013. The company has included a prayer to settle the Turnover tax (TOT) dues in its Draft Rehabilitation Scheme (DRS) which was submitted by the Operating Agency (OA) M/s. State Bank ofTravancore to the Hon''ble BIFR. As per the DRS, the concessional rate of interest on TOT dues will be started from the date of sanctioning of the DRS. The company is waiting for a final verdict from the Hon''ble BIFR. In view of the above and on the basis of prayer made for waiver of interest, no further provision for interest on Turnover tax liability has been made in the books. 25.1 Note on Turnover Tax relating to bottling parties

In the meeting dated 16.05.2012 held by the Hon''ble BIFR, the Honorable BIFR has directed the company to submit a revised Draft Rehabilitation Scheme (DRS) incorporating the TOT dues including that of bottling parties. The contingent liability in respect of turnover tax relating to bottling parties was Rs. 2,06,14.455/- in the beginning of the year, out of which the company has collected Rs. 1,05,60,259/- and recognized the same in the books of accounts, The DRS has been submitted by the Operating Agency (OA) M/s. State Bank ofTravancore to the Hon''ble BIFR. The company is waiting for the final verdict from the HorVble BIFR.

6.1 Note on Deferred Tax Asset (Net)

As a matter of prudence and in view of attached uncertainties, the deferred tax assets at the end of the period amounting to Rs. 3,58,26,309/- has not been recognized in the books.

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Mar 31, 2012

1. SHARE CAPITAL

1.1 Terms/Rights Attached to Equity Shares:

The Company has only one class of equity shares having par value of Rs. 10/each. The equity shares have rights, preferences and restrictions which are in accordance with the provisions of law, in particular the Companies act, 1956.

2. TRADE PAYABLES

2.1 Note on trade payables:

The company has taken steps to identify the suppliers who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006 and the same is in progress. Based on available information, there are no balance outstanding as payable to such suppliers as at the year end. In the opinion of the management there are no amounts paid/payable towards interest under the said statute.

3. REVENUE FROM OPERATIONS

3.1 Note on other Operating Income:

Other operating income includes Rs. 77,330/- from joint manufacturing agreement entered with another private limited company since 01.01.2007 according to which our company will Manufacture, Blend and Bottle the products at the production unit of our company at Pampadi. The amount represents income due there from, after charging the share due to the joint venture associate as per the agreement.

4. OTHER EXPENSES

4.1 Advertisement and Sales Promotion

Certain Promotional and Marketing expenditure for the business of the company are supported by internal vouchers in view of nature of the expenditure and are approved by the board of directors, The amount of which is not considered material.

5. RELATED PARTY DISCLOSURES

5.1 List of Related Parties

5.1.1 Key Management Personnel

K.V. Mohan Menon Chairman & Whole Time Director

6. CONTINGENT LIABILITIES

(Rs.)

Particulars 31st March, 31st March, 2012 2011

(a) Claims against the Company not acknowledge as Debt

(1) ESI Liability against which the Company has preferred appeals 4635480 Nil

(2) Turnover Tax relating to bottling parties 20614455 21397451

(b) Guarantees Nil Nil

(c) Other Money for which the Company is contingently liable

(1) Turnover Tax 26422582 26579454

7.1 Note on Turnover Tax relating to bottling parties

As on 31-03-2011, the company has a Turnover Tax Liability of Rs. 2 13 97 451 which is contingent in nature in respect of the bottling parties for the period 1997-98 to 2003-04 for which the company is not liable as this is to be paid by the bottling parties. The Commercial Taxes Department has also intimated the parties for payment of dues directly to the department. In the mean time, the Commercial Taxes Department (CTD) declared amnesty scheme where the pending demands could be settled under such scheme. This fact was intimated by the company to the concerned bottling parties. Two parties had paid such dues to the company for onward payment to the commercial taxes department. Out of which one party's due has been paid and the other's amount of Rs. 1 08 09130 could not be paid since the amnesty scheme has been closed by the time of the receipt of the amount. In the recent meeting held by the Honorable BIFR, the Honorable BIFR has directed the company to submit a revised draft rehabilitation scheme (DRS) incorporating the TOT dues including that of bottling parties. Now the same is under consideration of the operating agency. The company is expecting a favourable approach from the Commercial Taxes Department to settle the dues as per the directions of Honorable BIFR. Pending this, the amount received from the bottling party as stated above has been shown under current liabilities.

7.2 Note on Turnover Tax

As on 31-03-2012, the company has a Turnover tax liability of Rs. 2,64,22,582 covering the period 01.04.2001 to 31.12.2009. The company had made an application before the Commercial Taxes Department for settling the dues under the Amnesty scheme vide application dated 16.03.2011. As per intimation received from the Department dated 17.03.2011 the company has a total turnover tax liability of Rs. 417 25470 towards principal and Rs. 70 45 899 towards interest up to 2004-05 including bottling parties. The company has disputed the interest dues calculated by the Department and intimated this to the Department. As per the original DRS filed by the State Bank of Travancore, the Operating Agency a proposal was also made before the Hon'ble BIFR for settlement of TOT dues in installments and for waiver of interest/penalty on such dues. In view of the dispute of calculation of interest and on the basis of prayer made for waiver of interest/penalty no pro vision for interest on TOT liability has been made in the accounts.

8. DEFERRED TAX ASSET (NET)

7.1 Note on Deferred Tax Asset (Net)

As a matter of prudence and in view of attached uncertainties, the deferred tax assets at the end of the period amounting to Rs. 29121063/- has not been recognized in the books.

Previous year figures are regrouped to fit the current year presentation.

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Mar 31, 2011

1) Estimated amount of contracts remaining to be executed on capital accounts not provided for during the year - Nil (Previous year-Nil).

2) Contingent liabilities not provided for: Disputed in appeal

I. Excise Duty Demand: 16.19 lakhs # Previous year(Rs.16.19lakhs).

ii. Turn overtax: Nil Rs. Previous year (Rs.6.60 lakhs).

# Hon'ble High Court of Kerala quashed the demand vide order dated 06.04.2011.

*The Company has settled the demand under the Amnesty scheme.

Others:

iii. Turnover Tax relating to bottling parties Rs.214 lakhs. Previous year (Rs.283 lakhs). (Refer Note No.14)

3) The company has not received the required information from suppliers regarding their status under the micro, small and medium enterprises development act 2006 and hence the disclosure, if any, relating to amounts unpaid at the end of the year together with interest paid or payable as required under the said act have not been made.

4) Remuneration to directors - The company has not paid any remuneration to directors during the year. (Previous year-Nil).

5) Certain promotional and marketing expenditure incurred for the business of the Company are supported by internal vouchers in view of the nature of the expenditure and are approved by the Board of Directors, the amount of which is not considered material.

6) During the year the company has settled its dues to various banks under One time settlement(OTS) by payment of Rs.4.74 Crores. On settlement of such dues, the company has received a total waiver of interest of Rs.36.33 Crores which has been disclosed under extra ordinary item in the Profit and Loss account.

As the company is a sick industrial company under subsection (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act 1985 (1 of 1986) and registered with Board for Industrial and Financial Reconstruction (BIFR) even on waiver of the above amount of Rs.36.33 Crores the net worth of the company is not positive and the company has sufficient carry forward losses and the amount waived has been disallowed under section 43B of the Income Tax Act 1961, in prior years, there is no tax liability under the Minimum Alternate Tax (MAT) or under normal provision of the Act during the year.

7) The company had entered into a manufacturing joint agreement with another private limited company since 01.01.2007 according to which our company will Manufacture, Blend and Bottle the products at the production unit of our company at Pampadi. The particulars of income and expenditure from those operations are disclosed in schedule '9'giving the same particulars as required as per Part II, Schedule VI to the Companies Act 1956 and the income (profit of Manufacturing Joint Venture profit) due there from, after charging the share due to the joint venture associate as per the agreement is shown as Manufacturing Joint venture income in the profit and loss account.

8) Employee benefits

a) The Company has determined the liability for Employee benefits as at 31st March, 2011 in accordance with the revised Accounting Standard (As) 15 and there is no material impact on the accounts as a result of adoption of the standard.

9) As a matter of prudence and in view of attached uncertainties, the deferred tax assets at the end of the period amounting to Rs. 382.43 lakhs (previous year Rs.1534.18 lakhs) has not been recognized in the books.

10) Segment information: The Company is engaged in manufacture of ENA (Extra Neutral Alcohol) and Blending and Bottling of IMFL. However, during the year distillery unit has not functioned and hence the result relates only to one segment viz. Blending and Bottling.

11) As on 31.03.2011 the company has an unpaid turnover tax liability of Rs.265.79 lakhs covering the period 01.04.2001 to 31.12.2009. The company had made an application before the Commercial Taxes Department for settling the dues under the Amnesty scheme vide application dated 16.03.2011. As per intimation received from the Department dated 17.03.2011 the company has total turnover tax liability of Rs.369.20 lakhs towards principal and Rs.70.46 lakhs towards interest up to 2004-05. The company has disputed the interest dues calculated by the Department and intimated this to the Department. As per the original DRS filed by the State Bank of Travancore, the Operating Agency a proposal was also made before the Hon'ble BIFR for settlement of TOT dues in installments and for waiver of interest / penalty on such dues.

In view of the dispute of calculation of interest and on the basis of prayer made for waiver of interest / penalty no provision for interest on Turn Over Tax liability has been made in the accounts.

12) As on 31.03.2011, the company has a Turn over Tax liability of Rs.214 lakhs which is contingent in nature in respect of the bottling parties for the period 1997-98 to 2003-2004 for which the company is not liable as this is to be paid by the bottling parties. The Commercial Taxes Department has also intimated the parties for payment of dues directly to the Department.

The company has also obtained a stay order from Hon'ble BIFR for the total TOT dues upto 31.12.2009 and based on such stay order the Commercial Taxes Department has not taken any coercive steps for the recovery of the dues.

13) Previous years figures have been re-grouped/re-arranged wherever necessary to conform to the current period's presentation.

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Mar 31, 2010

1) Estimated amount of contracts remaining to be executed on capital accounts not provided for during the year - Nil (Previous year-Nil).

2) Contingent liability not provided for: Disputed in appeal

i. Excise Duty Demand: Rs.16,19 lakhs. Previous year: (Rs.16.19 lakhs)

ii. Turn Over Tax: Rs. 6.60 lakhs. Previous year: (Rs. 6.60 lakhs)

iii. Import fee on ENA: Nil (Refer note 17). Previous year: (Rs.385.00 lakhs.)

iii. Turnover Tax relating to bottling parties: Rs. 283 lakhs (Refer Note No 16)

3) In the opinion of the Directors, the Current Assets, Deposits, Loans and Advances have approximately the value stated in the Balance Sheet, if realised in the ordinary course of business.

4) The company has not received the required information from suppliers regarding their status under the micro, small and medium enterprises development act 2006 and hence the disclosure, if any, relating to amounts unpaid at the end of the year together with interest paid or payable as required under the said act have not been made.

5) Remuneration to directors - The company has not paid any remuneration to directors during the year. (Previous year-Nil).

6) Certain promotional and marketing expenditure incurred for the business of the Company are supported by internal vouchers in view of the nature of the expenditure and are approved by the Board of Directors, the amount of which is not considered material.

7) The Company has been providing for interest on the one time settlement (OTS) amount as determined by the operating agency. Since the amount of interest already provided in the books of account fully covers the amount expected to be paid with future interest if any thereon, no further interest is considered necessary to be provided for the current year and accordingly no provision for an amount of Rs. 20.16 lakhs has been made for the current year. The effect thereof is that the provision for interest is lower by Rs. 20.16 lakhs and profit higher by the same amount.

8) The company had entered into a manufacturing joint agreement with another private limited company since 01.01.2007 according to which our company will Manufacture, Blend and Bottle the products at the production unit of our company at Pampadi. The particulars of income and expenditure from those operations are disclosed in schedule 9 giving the same particulars as required as per Part II, Schedule VI to the Companies Act 1956 and the income (profit of Manufacturing Joint Venture) due there from, after charging the share due to the joint venture associate as per the agreement is shown as Manufacturing Joint venture income in the profit and loss account.

The joint venture operations have been temporarily suspended after 31 st December 2009. The figures given in the statements therefore relate to a period of 9 months ending 31st December 2009 . As the operations have only been temporarily suspended and to be revived soon, no adjustment relating to the joint venture assets and liabilities have been made in books of account.

8) Employee benefits

a) The Company has determined the liability for Employee benefits as at 31st March, 2010 in accordance with the revised Accounting Standard (As) 15 and there is no material impact on the accounts as a result of adoption of the standard.

9) As a matter of prudence and in view of attached uncertainties, the deferred tax assets at the end of the year amounting to Rs. 1534.18 lakhs (previous year Rs. 1547.09 lakhs) has not been recognized in the books.

10) Segment information: The Company is engaged in manufacture of ENA (Extra Neutral Alcohol) and Blending and Bottling of IMFL. However, during the year distillery unit has not functioned and hence the result relates only to one segment viz. Blending and Bottling.

11) Related party disclosure as per AS -18

Key management personnel: K.V. Mohan Menon Chairman

Related party transactions during the year:

12) In connection with the rehabilitation Scheme for the company, the operating agency, the State Bank of Travancore has submitted a revised Draft Rehabilitation Scheme (DRS) on 14.05.2010 to the Board for Industrial and Financial Reconstruction (BIFR) which is under consideration. As per the understanding reached with the banks, at the consortium meeting, the outstanding to the banks has been fixed at Rs.4.00 Crores for the final settlement plus interest thereon, which has to be paid as one time settlement (OTS). Up to 31 st March 2010, the company has paid Rs. 3.35 Crores towards the dues. Since the settlement with the banks as stated require final endorsement / approval of the banks and the BIFR, no adjustments have been made for the benefit that may arise to the company consequent on waiver of part of the loan/interest on final settlement.

13) In accordance with Accounting Standards (AS-28), during the year, the Company has reassessed its fixed assets and is of the view that no further impairment/reversal is considered to be necessary in view of its expected realizable value.

14) As on 31st March 2010, the company has an unpaid turnover tax liability of Rs.263.54 lakhs

As per the Original DRS filed by State Bank of Travancore, the operating agency vide their letter dt :14-5-2009, a prayer was made for the settlement of TOT dues in installments and for waiver of interest/penalty as per the request of the company. As the company is not in a position to ascertain the interest that may be payable on the above amount and in view of the fact that interest waiver petition is pending before BIFR, no provision for interest if any has been ascertained/provided for.

15) The Department of Commercial taxes, Kerala had passed an order levying Turnover tax at 5% on the excise duty portion of the turnover retrospective from 05.01.1999. Against the order, various Distilleries had approached the Honourable High Court of Kerala. The Honourable High Court quashed the Turnover Tax as unconstitutional and made it null and void. However the Government of Kerala amended certain rules on retrospective basis and went to appeal to Honble Supreme Court of India. The Honourable Supreme Court of India vide order dated 05,06.2005 had confirmed the Governments stand. Based on the order of Supreme Court of India, the Department of Commercial Taxes has approached the Honourable High Court of Kerala for vacating all pending cases with the department in connection with the Turnover tax. On the basis of the above the Company has received assessment orders dated 22.09.2005, 26.10.2005, 31.10.2005 & 30.11.2005 from Commercial Tax Department for Rs. 408.10 lakhs towards Turnover tax liability covering the period 1997-98 to 2003-2004. Of the above demand Rs. 282.66 lakhs belong to the bottling parties for which the Company is not liable and the Commercial Taxes Department has intimated the bottling parties to make payment directly to the Taxes department. The company has also obtained the stay order from the Honourable BIFR for the dues upto the period 31.12.2009 including above dues and based on orders from Honourable BIFR the Commercial Taxes Department has not taken any coercive steps against the company. From 01.01.2010 onwards the company is regularly paying the current turnover tax. However, Commercial Taxes Department has not perused any further actions against the said bottling parties

16) The company had disputed in appeal an amount of Rs. 385.00 lakhs raised by the Taxes Department being import duty on ENA for the financial year 2006-07. Consequent to the Abkari Act (Amendment) Ordinance, 2009, promulgated by the Government of Kerala on the 6th Day of December, 2009, the Government has abolished import fee on rectified Spirit and Extra Neutral Alcohol (ENA) to be used for the manufacture of liquor for human consumption with retrospective effect. In view of this, there is no liability on the company, contingent or otherwise, as on date.

17) Previous years figures have been re-grouped/re-arranged wherever necessary to conform to the current periods presentation. The figures have been rounded off to the nearest rupee.

18) Expenditure in foreign currency: Nil (Previous year: Nil)

19) Amount remitted in Foreign Currency on account of Dividends: Nil (Previous Year: Nil)

20) Earning in Foreign Currency: Nil (Previous Year: Nil)