i) Estimated amount of contracts remaining to be executed on Capital
Account is Rs. 103.79 Lacs (Net of advance of Rs. 34.60 lacs)
(Previous year Rs.53.33 lacs, net of advance Rs. 14.67 lacs).
ii) Contingent liability not provided for in respect of :
(Rs. in lacs)
a. Outstanding Bank Guarantee 44.90 20.02
b. Disputed Income Tax Penalty 12.75 12.75
for the assessment year 2003-04
c. Disputed Duty & Penalty under
Central Excise Law 86.56 86.56
d. Departmental appeals before the Income Tax 136.99 _
Appeallate Tribunal for the assessment years
2000-2001, 2001-2002 & 2002 -2003
iii) Charge of hypothecation over Current Assets & Raw Materials
procured under letter of credit in favour of bankers has been created
for letter of credit issued. Aggregate value of such letter of credit
outstanding as on 31st March 2011 is Rs. 512.59 lacs. (Previous Year
iv) The Company,in respect of its claim for refund of Input Tax Credit
amounting to Rs.106.03 lacs for the Financial Year 2005-06 is filing a
revision petition u/s 87 of the VAT Act, 2003 against the Appellate
Authority''s order dt. 25.03.2011, rejecting the appeal. The Company has
filed an appeal before Joint Commissioner of Sales Tax , Kolkata
(South) Circle against the assessment order dt. 14.06.2010 for the
financial year 2007-08 in respect of rejection of claim for refund of
Input Tax Credit amounting to Rs. 162.21lacs , the appeal is still
pending. Claims for the refund of Input Tax Credit in respect of other
financial years are at various stages of adjudication with the Sales
Tax Department . The Company is hopeful about their early recovery,
since it has been advised by its lawyer that the said claims are worked
out and made in conformity and compliance with the stipulated rules and
procedures. During the current financial year the company has received
provisional refund of Input Tax Credit amounting to Rs.39.03 lacs,
which constitutes 50% of the amount of accepted claims for the
financial year 2009-2010 against submission of Indemnity Bond
equivalent to the amount of claim.
v) The Additional Commissioner of Central Excise, Kol-II and Haldia
have raised two separate demands with penalty aggregating to Rs. 136.56
lacs out of which Rs. 50.00 lacs was paid in the financial year
2007-08. The Company had filed Appeals against the above demands before
the Commission rate (Appeal - I & II) of Central Excise Kolkata which
are still pending.
vi) Gratuity and Other Post-Employment Benefit Plans :
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The Company also provides Leave Encashment Benefit to employees,
whereby unutilised leave is carried forward and eligible for encashment
upon retirement / termination.
The following tables summarise the components of net benefit expense
recognised in the Profit and Loss Account and amounts recognised in the
Balance Sheet for the respective plans. i
The principal assumptions are the (1) discount rate & (2) Salary
The discount rate should be based upon the market yields available on
Government bonds at the accounting date with a term that matches that
of the liabilities and the salary increase should take account of
inflation, seniority, promotion and other relevant factors.
The financial assumptions employed for the calculations are as follows:
Scheme is not funded through any trust fund and therefore no assumption
regarding expected rate of return on assets is applicable.
vii) In view of insufficient information from the suppliers regarding
their status as Micro, Small and Medium Enterprises, the amount
remaining unpaid to such undertakings could not be ascertained for
separate disclosure in our accounts.
viii) In the opinion of the Board, all Current Assets, Loans and
Advances have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the accounts.
ix) Advance includes Rs. 14.86 lacs due from M/s. The Salkia Industrial
Works. Legal suit has been filed by the Company for the recovery of
this due. The suit is still pending .
x) Exchange rate difference includes exchange loss of Rs. 3.55 lacs
(P.Y. - Rs. 0.12 lacs) arising out of cancellation of forward contract.
xi) In the opinion of the Board there is no loss on account of
impairment of any asset during the year.
xiii) Borrowing cost capitalised during the year Rs. 5.10 lacs
(Previous Year Rs. NIL).
xiv) The following table shows the distribution of the Company''s
consolidated sales by geographical market, regardless of where the
goods were produced.
The Company has common cost, fixed assets and liabilities for all
geographical segments, hence separate figures for segment results,
fixed assets/addition to fixed assets and liabilities have not been
xv) The major components of the Deferred tax assets/liabilities based
on the tax effect on the timing difference as at 31st March, 2011 are
Note : The company extended additional credit terms to North American
Cast Iron Products Inc. for which an interest of Rs.14.01 lacs has been
charged. xvii) Forward exchange contract outstanding as on 31.03.2011
to cover foreign currency risk of a firm commitment or a highly
probable forecast transactions, marked to market at the year end works
out to a loss of Rs. 6.11 lacs (Previous Year - NIL), which has not
been provided in the books of accounts in view of expected favorable
exchange rate after the Balance Sheet date.
xviii) On 23.11.2010 a vessel carrying six containers of our exported
goods collided with another vessel at Hooghly river passage and
suffered damages. The company estimated liability of Rs.11.61 lacs on
that account and provided the same in the books of accounts.
5) Stocks are Net off shortage / excess which are not material.
6) Others items are numerous and none of these individually exceeds 10%
of the total consumption.
7) 93.810 MT of M.S. Product has been scrapped and used as Raw
Materials for production of Castings during the year.
xxiii) Previous year''s figures have been regrouped / revised wherever