Sonell Clocks & Gifts Ltd. के अकाउंट के लिये नोट

Mar 31, 2012

CONTINGENT LIABILITIES:

All the known liabilities are provided for in the accounts except the liabilities of contingent nature which has been adequately disclosed in the accounts. Guarantees given to bank for Guarantees issued by bank is Rs. 28,50,636. The Guarantees issued are secured against the FDs with* bank.

a) The Fixed Assets of the Company consisting of Land, Building, Plant & Machineries and Electric Installations which were hypothecated/ mortgage to Company's Banker - Indian Overseas Bank to secure Term Loan and Working Capital facilities, were taken in custody by the said Bankers on the defaults made by the Company. The Company has reached One time Settlement (OTS) with Indian Overseas Bank {IOB) whereby the Company has paid approx 68 lacs and Company has withdrawn the case against IOB wherein IOB was a Party to the suit filed against Insurance Company. However the possession of factory, machinery and inventory has yet to be obtained from bank. No adjustmenVprovision for loss/damage to the same is made in this account. No depreciation on fixed assets for the year have also not provided for. In the absence of data the amounts waived by bank is assumed to be of principal amount and hence the same is transferred to capital reserves.

The entire inventory are in the custody of the Company's Bankers, it is valued at cost as on that date on which it was taken over by the Company's Banker. No provision is made for damage or obsolesces of the Inventory.

During the year 2004 the fixed assets like building, machineries and inventories etc were destroyed due to flood. The company has filed a suit against the Insurance Co. and Bank for claiming Loss caused. During the Flood major records of the company had also been destroyed and therefore the accounts are prepared based on avaiable records and accepting balances as per books.

The company has filed complain before Consumer Disputes Redresses National Commission claiming Rs. 2.72 crones from insurance company for loss/damage Compensation due to flood. This claim is not accounted in the accounts.

No Provision has been made for O/s Municipal Tax, Water and Electricity Charges, Provident Fund, Compensation to workers and other expense, the amount being not ascertainable.

b) Due to losses incurred during the year or due to carried forward depreciation & losses there will not be any assessable income tax for the year and hence no provision for the Income tax is made.

c) Dues to Small Scale Industrial units are not reported to the company.

d) There were no earning in foreign currency or expenditure in foreign currency in respect of acquisition of Fixed Assets, Stores and raw materials.

e) During the year, there has been no employees entitled for a remuneration of Rs. 2,00,000/- or more per month or Rs. 24,00,000/- lacs per annum.

f) Balances of debtors, banks deposits, loans and advances, secured and unsecured loans and creditors, advance received and provisions are subject to confirmation and reconciliation. All the loans, deposits and advances are old and are doubtful of recovery, no provision is made for such doubtful items.

g) In the opinion of the Board of Directors, the current assets, loan and advances have been valued at least equal to the amount at which they are stated in the Balance Sheet if realized in ordinary course of business. The irrecoverable or doubtful recovery is not provided for.

h) Related parties disclosures as per Accounting Standard 18 :

The Company has not entered into any transaction with any related party during the year except accepting unsecured loans from them.

i) As the possession of the entire factory was taken over the Indian Overseas Bank, there was no commercial production during the year and hence information required under Schedule VI, Part II are either nil or not applicable to the Company.

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Mar 31, 2010

A) The Fixed Assets of the Company consisting of Land, Building, Plant & Machineries and Electric Installations which were hypothecated/ mortgage to Company’s Banker - Indian Overseas Bank to secure Term Loan and Working Capital facilities, were taken in custody by the said Bankers on the defaults made by the Company. The Banker has filed case in Debt Recovery Tribunal to recover their dues to gather with interest up to 02/12/2004, amounting to Rs. 2.87 crores, which is pending. In view of this the interest has not been provided on the amount payable to Indian Overseas Bank. No depreciation on fixed assets for the year have also not provided for.

The entire inventory are in the custody of the Company’s Bankers, it is valued at cost as on that date on which it was taken over by the Company’s Banker.

No Adjustment has been made in the accounts arising out of taking custody of FA and Inventory by bank.

During the year 2004 the fixed assets like building, machineries and inventories etc were destroyed due to flood. The company has filed a suit against the Insurance Co. and Bank for claiming Loss caused. During the Flood major records of the company had also been destroyed and therefore the accounts are prepared based on available records and accepting balances as per books. The interest from bank is taken on estimated basis in the absence of certificate from banks.

The company has filed complain before Consumer Disputes Redresses National Commission claiming Rs. 2.72 crores from insurance company for loss/damage Compensation due to flood. This claim is not accounted in the accounts.

No Provision has been made for O/s Municipal Tax, Water and Electricity Charges, Provident Fund, Compensation to workers and other expense, the amount being not ascertainable.

b) Since there is no employee, Fringe Benefit Tax is not applicable. Due to losses incurred during the year or due to carried forward depreciation & losses there will not be any assessable income tax for the year and hence no provision for the Income tax is made.

c) Dues to Small Scale Industrial units are not reported to the company.

d) There were no earning in foreign currency or expenditure in foreign currency in respect of acquisition of Fixed Assets, Stores and raw materials.

e) During the year, there has been no employees entitled for a remuneration of Rs. 2,00,000/- pr more per month or Rs. 24,00,000/- lacs per annum.

f) Balances of debtors, banks deposits, loans and advances, secured and unsecured loans and creditors, advance received and provisions are subject to confirmation and reconciliation.

g) In the opinion of the Board of Directors, the current assets, loan and advances have been valued at least equal to the amount at which they are stated in the Balance Sheet, if realized in ordinary course of business. The irrecoverable or doubtful recovery is not provided for.

h) Related parties disclosures as per Accounting Standard 18 :

The Company has not entered into any transaction with any related party during the year except accepting unsecured loans from them.

i) As the possession of the entire factory was taken over the Indian Overseas Bank, there was no commercial production during the year and hence information required under Schedule VI, Part II 9T6 8ltl16r nil or not applicable to the Company.