1.1 Equity Shares held by Holding Company i.e. Kashipur Holdings Ltd
and in excess of 5% of the Capital of the Company.
Note No. Particulars
2 Contingent Liabilities and commitments : As at As at
( to the extent not provided for) 31st March, 2012 31st March, 2011
(i) Claims against the company not acknowledged as debts 115.33 60.34
(ii) Dividend liability on 15%Cummulative Preference Shares 42.90 39.60
(iii) Claim of the ex-employees under litigation, amount not
(iv) Claim/demands from owner of the rented property in kolkata which
are under litigation- amount not ascertainable.
Sub Total 158.23 99.94 Commitments:
Estimated amount of contracts unexecuted on capital account - 14.35
Sub Total - 14.35
3 Public Sector Oil Companies i.e. IOCL, HPCL, BPCL and IBP had
reduced in the earlier years, the price of LPG cylinders with
retrospective effect i.e. from 01.07.1999. The Oil Companies after
reduction in prices had withheld in aggregate Rs. 3,24,56,427/-
(previous year Rs. 3,24,56,427/-) from the supply bills of the
Company. The Company is contesting this reduction in price of Cylinders
before the appropriate authorities. Based upon the management
estimation, out of these amounts forty percent of amount i.e. Rs.
1,29,82,571/- is considered recoverable and the balance amount of Rs.
1,94,73,856 has been written off during earlier years
4 The company is a Sick Industrial Company as per Sick Industrial
Companies (Special Provision) Act, (SICA), 1985. The Hon’ble
Appellate Authority for Industrial and Financial Reconstruction (AAIFR)
had vide order dated 8th November 2002 sanctioned the Rehabilitation
Scheme of the Company. The Company moved an application to BIFR in
November, 2006 seeking deregistration from the purview of SICA 1985,
but the BIFR negated the original Scheme due to non and delayed
compliance and discharged the Company out of the purview of SICA 1985.
The Company preferred an Appeal against the said order and the
Appellate Authority has set aside the order of BIFR and remanded the
matter to BIFR and the decision in this matter is awaited. The matter
is being pursued by the Company.
5 Interest on Unsecured loans of Rs. 2,29,70,984/-(previous year Rs.
2,50,70,984/- from Holding Company & Associate Companies of promoters
have not been provided for in the accounts in terms of sanctioned
Rehabilitation Scheme and the said Companies have agreed to waive off
their claims of interest.
6 The amount due to units covered under “The Micro, Small & Medium
enterprises Development Act, 2006 in respect of Faridabad Unit is
Rs. NIL (Previous Year Rs. Nil ). In respect of Sideburn Unit the
factory was permanently closed on 1/8/2002, however in respect of
outstanding Sundry Creditors the company had requested them to furnish
the relevant registration certificate, but none of them have furnished
the Certificate, it is deemed that none of them is covered under the
7 Impairment of Assets—Consideration is given at Balance Sheet date
to determine whether there is any indication of impairment of the
carrying amount of the Company’s Fixed Assets as required by
Accounting Standard (AS)-28 “Impairment of Assets. If any
indication exits, an Asset’s realizable amount is estimated. During
the year The Company has reviewed the Fixed Assets of the Company and
found that there is no indication of impairment of the carrying amount
of the Company’s Fixed Assets.
8 Balances in Debtors, Creditors, advances and Deposit accounts are
subject to confirmations.
D Actuarial Assumptions
The discount rate assumed is 7%, which is determined by reference to
the market yield on Government Bonds as at Balance Sheet date. The
estimate of future salary increases, considered in actuarial valuation,
take account of inflation, seniority, promotion and other relevant
factors such as supply and demand in the employment market.
a. Deferred Taxation
The institute of Chartered Accountants of India, has made mandatory the
Accounting Standard-22 (AS-22) in respect of “Accounting for Taxation
on Income. Accordingly, the Company had computed deferred tax
liability and assets and based upon the data available it has kept the
amount of Deferred Tax Assets in previous year Rs. 50 lacs. However, in
the current year based on the present estimated future earnings, the
amount of Deferred Tax Assets is re-calculated Nil .
b. Current Taxation
In view of carry forward losses and absorbed depreciation no provision
of Income Tax (MAT) has been made under Section 115-JB of the Income
(i) The above information as to Related parties have been identified by
the Management on the basis of information available with the Company
and relied by the Auditors.
(ii) Figures in brackets represent the figures of previous year.
10 Segment Reporting As Required By Accounting Standard-17
Presently the Business activity of the Company falls within a single
primary business segment viz Industrial Gases as such the disclosure
requirement of Accounting standard (AS) - 17 Segment Reporting
issued by the Institute of Chartered Accountants of India is not
11 Previous Year’s figures have been regrouped/recast wherever found
necessary to confirm to this years classification in view of the
applicability of the revised Schedule VI to the Companies Act 1956.