1) Contingent liabilities:
(A) Claims against the company/disputed liabilities not acknowledged as
debts Rs in Lacs Rs in Lacs 2010-2011 2009-2010 a) Central Excise &
Service Tax 279.97 281.97 b) Income Tax 359.07 20.90 d) Sales Tax &
Central Sales Tax 366.53 366.53 Total 1,005.57 669.40
(B) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.42.74 Lacs (Previous year Rs.328.55
Lacs) net of advances.
2) The company was subjected to search by the Directorate General of
Central Excise Intelligence (DGCEI), New Delhi during the financial
year ended 31.03.2009 and deposed a sum of Rs.100 Lacs under protest
which has been shown as Excise Duty Deposed under Protest in Loans &
Advances. Subsequently, the company has received a show cause notice
dated 09.05.2011 from the DGCEI, New Delhi for imposing excise duty
aggregating amount of Rs.4492 Lacs. The Company is in the process of
filing suitable reply of the alleged imposition of Excise duty and due
to pending adjudication of the show cause notice, liability on this
account has neither been considered nor disclosed in the accounts.
3) Some of the balances of sundry debtors, creditors, advances and
unsecured loans as on 31.03.2011 are subject to confirmation. Sundry
Debtors, outstanding for more than six months includes Rs.191.67 Lacs
on which legal cases have been initiated for recovery by the company.
The management of the company is hopeful of favourable decision on such
legal cases, hence no provision for bad and doubtful debts have been
4) In the opinion of the management, currents assets, loans & 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 Balance Sheet.
5) The Company has already initiated the process of obtaining copies of
memorandum filed with the concerned authority by entities falling under
the MSMED Act 2006. The Company has not received copies of the said
memorandum as on date from any such entity. In the absence of
information, the company is unable to identify units and as well as
furnish details required under the said Act.
6) The company does not have any fund for gratuity and leave encashment
liability and same is accounted for as provision.
7) Remuneration paid/payable to Managing/whole time directors during
the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).
8) During the year, in terms of memorandum of settlement/arrangement
dated 14.03.2011 arrived at before the Hon''ble Delhi High Court,
Mediation & Conciliation Centre, The company has agreed to assign trade
mark of Kamdhenu Cement, cement bricks, cement tiles and cement sheets
only falling under Class-19 of the Trade Mark Rules,2002 for a total
sum of Rs.140 Lacs in favour of Kamdhenu Cement Limited. The said
revenue net of tax has been included in the Royalty, Trademarks &
Others of Schedule-13.
9) Royalty,Trademarks & Others comprises royalty of Rs. 1406.79 Lacs
(Previous Year Rs.1473.98 Lacs), Sale of Trademark of Rs.133.33 Lacs
(Previous Year NIL), Income from derivatives of Rs.79.09 Lacs (Previous
Year 105.03 Lacs) and priority dealership charges of Rs.1.16 Lacs
(Previous Year 21.46 Lacs).
10) During the year, the Company has undertaken modernisation program
at its Steel Plant with capital investment of Rs.545.20 Lacs in Plant &
Machinery which have since become operational from 25.03.2011.
11) Balance with Schedule Bank in Current Accounts includes Unpaid
Divident amount of Rs.2.33 Lacs and IPO Refund amount of Rs.2.62 Lacs
(Previous Year of Rs. 2.38 Lacs & Rs.2.62 Lacs respectively).
12) The Cash flow Statement has been prepared in accordance with the
requirements of Accounting Standard-3 Cash Flow Statement issued by
13) As per Accounting Standard-17 Segment Reporting issue business
segments viz. Steel, Power & Paints and following policies have been
adopted for the segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocable to a specific segment are being
disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and
liabilities in respective segment. Investments, tax related assets,
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as Un-allocable.
14) As per Account Standard-28 Impairment of Assets issued by ICAI,
there are no indication of overall
15) Additional information pursuant to provisions of paragraph 3 & 4 of
part II of Schedule VI of the Companies Act ,1956.
16) Value of Import on CIF basis in respect of Traded goods Rs.14.85
Lacs (Previous Year NIL).
17) Expenditure in Foreign Currency on Import of Traded goods Rs.13.55
Lacs (Previous Year NIL).
18) The previous year''s figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Accordingly, amounts
and other disclosure for the preceding year are included as an integral
part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current