1. The company has reviewed the deferred tax assets and liabilities
as at the year end. The timing differences relates mainly to
depreciation and carry forward losses for the period up to 31-03-2015
resulting in a Net Deferred Tax asset. As a prudent measure, this net
deferred tax asset has not been recognized in the accounts.
2. The company has received wealth tax demand from AY 1993-94 to AY
2003-04 and 2005-06 to 2010-11 of Rs.2553.78 lakhs for which the
company has filed appeals with ITAT, Chennai. The entire Wealth tax
demands were provided for in the books and the entire wealth tax
demands were paid by the company. The Company has paid a sum of
Rs.404.92 lakhs in excess of demands raised by the Department which was
shown as ''Wealth tax paid under Protest'' under Note 17 – Other Current
3..a. The company has received Income Tax demand for Asst. year 2008
– 09 Rs.19.21 lakhs which is disputed before ITAT, Chennai. The Company
has also received Income Tax demand for Asst. Year 2010 – 2011
demanding a sum of Rs.11464.23 Lakhs and company has filed appeals
before CIT (A). The Company has also filed a writ before the High Court
and the HC has stayed the demand. Considering the company''s chance of
success in appeal no provision has been made in the accounts.
4.b.. During the year, the company has received order from the
Service tax department demanding penalty of Rs. 34.34 lacs for the
period from October, 2009 to October, 2010., The company has paid the
dues before Show Cause Notice is being served on the Company. On the
basis of the merits of the case the company has paid Rs. 2.57 lakhs as
pre-deposit which is shown under ''Note-17-Other Current Assets'' and has
appealed before Commissioner of Central Excise (Appeals), Chennai.
Since, it is considered that the case shall be favorable to the Company
no provision was made in the books.
5. During the previous year, the company has entered in to MOU for
sale of land held as stock in trade. The company has received Rs.
19145.58 lacs as advance for sale of land. The transfer of title,
settlement of employees occupying some portion of the land etc are
under progress. Upon receipt of the entire sale consideration and
transfer of title to the buyers the said amount shall be recognized as
income as per the accounting policy of the company. Pending transfer of
title the entire amounts were shown as Other Long Term Liabilities as
6. The Company has discontinued its Warehousing operations from
January, 2015. In order to carry on the real estate activity the land
held in Fixed Assets have been converted in to Stock- in-trade
effective 01.12.2014 The company has entered in to MOU for development
of land held as stock-in-trade for real estate activities. As per MOU
the company has received Rs. 6145.57 lakhs, as part of interest free
Security Deposit which was shown as Other Long-term liabilities.
7. During the year, the land held in Fixed Assets has been
converted in to Stock-in-trade with effect from 01-12-14. The Fixed
Asset value of land includes revaluation addition made during previous
years. Some portion of revaluation reserve was utilized for write off
losses as per the sanctioned scheme of Demerger by the High Court.
Hence, the value of Inventory is taken as the value of Fixed Asset
standing as on the date of conversion in to stock-in-trade which is
much less than net realizable value.
ii) Enterprises where Key Management Personnel exercise Influence
- Mohan Breweries & Distilleries Ltd (Related company by Director)
- Binny Mills Ltd. (Related company by Director)
- Mother Mira Industries Limited (Related company by Director)
- Mira Textile & Industries Limited (Related company by Director)
8. The Company has not entered in to any long term contracts
including derivatives and there are no outstanding obligations, and
there are no foreseeable losses on these as at the year end.
9. The Company is not liable to spend any amount as per Section
135 of the Companies Act, 2013 for the year ended 31-Mar-2015..
10. There are no amounts to be transferred to Investor Education
and Protection Fund as at the year ended 31-Mar-2015.
11. Previous year figures have been regrouped wherever necessary to
conform to current year classifications.