1. The Company has created a Gratuity and Superannuation Fund and taken
a policy under Group Gratuity Scheme and Superannuation Scheme with LIC
for future payment of gratuity and superannuation to the employees.The
company has paid the premium as demanded by LIC under the policy upto
2000-01 & Rs. 400000 as part payment against demand of LIC for the year
2001-02 and no futher payment has been made till 31.03.05. During the
year 2004-05 liability on these accounts has been provided on estimated
basis without making acturial valuation as no demand has been raised by
LIC. The provisions made on these accounts have been included in
Schedule N. The total amount of estimated liability as on 31.03.05
payable to LIC is Rs. 44.69.704/- including Rs. 11,27,443/- for the
year and Rs.7,54,189/- including Rs. 2,44,508/- for the year on account
of Gratuity Fund and Superannuation Fund respectively.
2. Research and Development Expenses includes Wages, Salaries, Bonus,
Allowance etc.of the staff of Companys Research & Development
Laboratory at Nagpur Unit. The Laboratory has been granted recognition
by the department of Scientific & Industrial research Ministry of
Science & Technology Government of India, valid upto 31st March, 2005.
3. Balance of Advances, Debtors, Creditors and Loans have been stated
as per Ledger pending confirmation.
4. The Nagpur Unit of the Company follows cash basis accounting for
interest against delayed payment of statutory dues.
5. The companys Leasing arrangements are in respect of operating
leases for some items of Plant & Machinery valued at Rs. 5030338/-.
These arrangements are non cancelable and are for five years term which
will expire in 2005-06.The company has the option to purchase the
assets at the end of the year. Lease tenure at its residual value which
will not be less than 1 % of the Asset value. The lease rentals paid
during the year have been charged as Lease Rent under Schedule P.
Nothing is payable to the leassor as on 31st March, 2005 except for the
residual value of the asset which has also being paid in advance,
pending adjustements in the next year.
as at as at
6. Contingent Liabilities not provided for
a) i) Outstanding Bank Guarantees/Counter
Guarantees (including Foreign
Guarantees Rs.527,631/-) 1,157,631 3,278,815
Previous year Rs. 1,048,815/-)
ii) Foreign Bills discounted remaining unpaid - 1,637,230
b) Claims against the Company not
acknowledged as Debt
i) Sales Tax under Appeal 1,768,114 4,865,462
ii) Other Matters 6,025,825 5,867,285
iii) Income Tax demands pending appeal 5,350,105 7,960,827
The Advance Tax there against 5,759,871 8,254,433
c) Excise duty claim under dispute 188,612 270,061
7. Estimated amount of contracts remaining
to be executed on Capital. Account and
not provided for 3,100,001 3,100,001
Advance there against 546,475 200,000
8. Amount due from a Private Ltd. Co. in
which a Director is a Director
which relates to security deposit
for use of office premises on 1,312,060 1,312,060
leave and licence basis.
9. Provision for Excise Duty and
eduction cess on Closing Stock of 674,254 1,001,408
Finished goods has not been made.
However, this has no effect
on the Loss of the Company
and year end net assets.
10. Employment expenses in ScheduleN
includes remuneration to Whole-time
Directors as follows :-
Salary 1,338,000 631,500
House Rent Allowance 722,520 341,010
Contribution to Provident Fund & Others Funds 371,160 166,860
Other Perquisites (Actual) 130,125 91,042
11. Materials are lying for fabrication with several third Parties
pending confirmation. The recoverability of said materials lying with
seven parties valued at Rs.985460/- is not ascertainable as the party
has closed down its operation.
12. Calls in arrear (under Share Capital Account) represent Application
and Allotment monies due from underwriters who have not paid till
31.03.2005 in terms of their underwriting agreement. However the
company has made representation to SEBI for appropriate action for
realisation of this amount.
13. Advance to parties includes Rs.715881/- recovery ofwhich is
doubtful at their book value.
14. a) Sundry Debtors over six months includes Rs.12035715/- (Previous
year Rs. 10334694) recovery of which is doubtful at their Book value.
b) Legal steps for recovery has been taken for realisation from debtors
amounting to Rs.6800182/- other than those stated in 14(a)
15. The company has passed a resolution u/s 293(l)(a) for sale of
Nagpur Unit and surplus land at Andul, Howrah. Sales have yet to be
affected pending legal case.
16. In the opinion of Board carrying cost of assets shown in the
financial statement is less than its realisable value. Therefore no
provison required for impairement loss on the assets of the Company.
17. The appointment & remuneration of wholetime directors has been made
by the board pending approval by the shareholders in the AGM. Further
two of the Directors who was to retire by rotation is continuing as the
previous AGM of the company has been adjourned Sine Die. However,
Direcotrs have been paid salary as approved by the Board/Previous
18. Appointment of Auditors has not been made in the AGM which was
adjouned Sine die. As per provisions of Companys Act, the auditor-will
hold office till the conclusion of the AGM and accordingly they
continue as auditors.
19. In terms of Accounting Standard 22, issued by the Institute of
Chartered Accountants of India, there is a net deferred tax asset of
Rs.48269330/- as on 31s March 2004. Forthe current year i.e. upto 31s
March 2005, too, there is a net deferred tax asset of Rs.9927175/-.
These have not been accounted for in these accounts, as a matter of
20. The technology transfer Agreement with Rejna S.p.A. entails
substantial payments on account of Royalty and technology transfer fee.
The same has not been utilised to its full potential, as there is a
drop in demand for the products comprised, in the said Agreement. As
and when the market demand picks up, the transfer of the full
technology will be made. The Royalty and fees payable thereon is
presently not ascertainable.
22. In Terms of AS20, issued by the Institute of Chartered Accountants
of India, the Calculation of EPS is given below :
Loss as per Accounts (Rs.) 32,588,878 32,387,583
Weighted Average No. of Equity Shares
outstanding during the year, 4,908,459 4,908,459
Basic & Diluted EPS (Rs.) -6.64 -6.60
23. Related Party Disclosures in terms of AS18, issued by the Institute
of Chartered Accountants of India Associate Companies : Coventry
Coil-O-Matic (Haryana) Ltd. (Joint Venture) Key Management Personal :
Shri N.M. Bafna, Whole time Director, is Managing Director of Coventry
Coil-O-Matic (Haryarya) Ltd.
Shri A. M. Bafna, Whole time Director, is Director in Coventry
Coil-O-Matic (Haryana) Ltd
Transaction with Related parties Associate Company Management Personal
Equity Contribution (in Cash) 33,663,449
Creditors & Other Payables 11,461,942
Intercorporate Loan taken 1,327,493
Management Contracts - 1,365,225
24. The Closing Stock of slow moving finished goods and WIP at Nagpur
Unit (not moved for more than 3 years) have been valued at current raw
material cost irrespective of rate of raw materials at the time of
issue for production. The effect of this on the loss of the Company is
not readily ascertainable.
25. The Inventory of Stores and Components includes nos. of slow moving
/non-moving items valued at Rs.1738255/- for which no provision has
been made in the accounts.
26. In the absence of market quotation of Maharastra Elektrosments Ltd.
during the year, last quotation published (3 years back) have been
disclosed in the investment schedule.
27. Miscellaneous Expenses include cash discount of Rs. 90449/- allowed
to the customers.
28. The balance of Rs. 53448429/- with State Bank of India (C/C a/c)
has been transferred by the Bank to Debts Recovery Cell in the month of
August 2004. Hence the balance has been reduced to nil as shown in the
Bank Statement of August 2004. Provision for interest has not been
provided as the same is subjudice.
29. The interest on fixed depoist amounting to Rs. 882865/- from a
Director and few others have been paid bycheque which remains to be
presented for clearance by them.
30. Sales shown in the Profit and Loss Accounts
includes excise duty (in Rs.) Sales including excie duty 120,949,964
Less : Excise duty 13,762,569
Net Sales 107,187,395
as at as at
31. Additional information:
Goods manufactured and Turnover
Installed Capacity(Spring/Washer) 11,950 M.T. 11,950 M.T.
Installed Capacity (Fastner) 2500 M.T. 2,500 M.T.
a) Consumption of Rawmaterials & Components
(net of Modvat credit and Sales Tax set off)
i) Steel for Manufacturing of Spring/ 1445.048MT 1060.050MT
Washer. 52,848,253 30,038,510
ii) Components & Others 1,815,816 2,439,391
b) Details regarding Raw Materials, Stores
and spare parts and Components Consumed
i) Raw Materials and Components
Indigenous 54,664,069 32,477,901
ii) Stores, Spare Parts
Indigenous 7,677,221 5,550,760
c) Earning in Foreign Exchange :
Export of Goods (F.O.B Value) 8,471,319 3,943,628
d) Expenditure in foreign
currency (on cash basis)
i) Others 65,554 28,159
34. Previous year figures have been regrouped, rearranged and recast,
wherever considered necessary.
35. The figures for current year are not comparable with previous year
as the current year comprises of 12 months period covering April 2004
to March 2005 as against 6 months period for previous year.