1. Of the above shares 1,38,000 Shares of Rs. 101/- each are allotted as
fully paid-up Bonus Shares by Capitalisation of Reserves
2. As per the past practice, excise duty payable on uncleared finished
goods, has not been provided for and correspondingly, not included in the valuation of closing stock of
i) Depreciation for the year has been provided on the value of Assets as increased by the amount of
revaluation of assets made for the year ended 31st March, 1993. The depreciation on the amounts added on
revaluation has been computed by dividing it by the balance life of each Asset as certified by the Valuer and
this amount of Rs. 70,76,608/- (Previous Year Rs. 79,89,625/-) has been transferred to Profit and Loss Account
from the Capital Reserve of Fixed Assets.
Depreciation on the original cost of assets is provided as per the rates prescribed by Schedule XIV of the
Companies Act, 1956, as amended, on the following basis :-
i) On the straight line method,in respect of Plant and Machinery installed on or after 1st April, 1972.
ii) On Written down value method, in respect of Plant and Machinery installed before 1st April, 1972.
iii) On written down value method in respect of all other assets.
3. (a) The Asstt. Collector of Central Excise has approved the Price list of the Company in respect of its
Ambernath Unit admitting certain
expenses as Post Manufacturing Expenses (PME,) by its order dated 16th
May, 1985 and disallowing certain items. The Company has preferred an
appeal to the Collector of Central Excise (Appeals) for allowing all the items claimed by the Company as
post Manufacturing expenses who has accepted the same by his order dated 25th February, 1987. The Company
has accordingly made claim to the Asstt. Collector of Central Excise
for refund of Central Excise duty on PME amounting to Rs. 64,00,277/-
for the period upto 30-06-87. The Collector of Central Excise had preferred an appeal to CEGAT and the
appeal was dismissed by CEGAT vide
their order dated 21st December, 1988. The company also filed a Writ
Petition to Bombay High Court for recovery of the said amount. The
Hon'ble Bombay High court vide its order dt. 28/6/88 ordered Central
Excise Department to deposit the amount which has been kept by them in
fixed deposit account with Bank of Baroda. The same has been considered as income by the Company in the
previous year and shown as excise duty claim receivable. The Company has taken credit for interest on the
said claim for Rs. 15,53,546/- for the year (Rs. 14,27,417/- for the previous year).
Based on the judgment of the High Court the Company has lodged various
claims arised on account of Post Manufacturing Expenses in preceding year in respect of Ambernath and
Tarapur Plant for the period upto 31.3.1993. The Company is accounting for these claims as and when lodged
with Excise Department. However during the year no such claim
has been lodged, claims filed upto the period 31/03/93 of Rs.73,33,365/- have been shown in loans and
advances under the head Excise duty claims receivable.
(b) On 13-03-93, the Collector of Central Excise, Bombay passed an order received on 14-05-93 in respect of
the Show cause notice dated 21/12/89 issued by the Collector of Central Excise Bombay by invoking the
provision of section IIA of the Central Excise and Salt Act, 1944 by alleging misdeclaration on the part of
company thereby not passing trade discount of 12.75% for all its buyers unilaterally and unconditionally and
thereby raised a demand of Rs. 60,77,690.85 including penalty of Rs. 20,00,000. The company has preferred an
appeal to the CEGAT Delhi. The CEGAT Bombay has stayed the recovery of the demand pending the hearing of the
appeal on furnishing a bank guarantee of Rs. 10 lacs. The hearing of the appeal is pending, however we are
informed that the company is of the view that company has a strong case and the demand notice is not
4. Previous year adjustment includes Rs. 55,361/- being lesser provisions on account of Store and Spares
Purchases and interest remission of Rs. 9,21,377/-.
5. The Company has called for the confirmations of balances from Sundry Debtors, Depositors, Creditors and
Other Parties. Some of the confirmations received are under reconciliation and the balance of the
accounts are subject to confirmation.
6. The figures in respect of the previous year have been regrouped
wherever necessary in order to make them comparable with those of the
current accounting year.