1. Contingent Liability
Amount in Rs. Lacs
FY 2010-11 FY 2009-10
01 In respect of counter guarantees
given to Bank Rs. 3,038.79 3,701.43
02 In respect of Excise matters in
dispute / under Appeal Rs. 261.71 140.74
03 In respect of Sales Tax Deferment Rs. 2,076.18 3,233.17
Payable as per NPV basis - 820.80 Lacs
04 In respect of Income Tax matters
in dispute / under Appeal Rs. 18.24
05 In respect of Sales Tax matters
in dispute / under Appeal Rs. 85.87
5. Related party disclosures required as per AS-18 on ` Related
Parties disclosures'' issued by the Institute of Chartered Accountants
of India, are below for the year ended on 31st March, 2011.
1. Holding Company : NIL
2. Subsidiaries : a) Economic Explosives Limited
b) Solar Mines & Minerals Ltd.
c) Solar Mining Resources Ltd.
d) Navbharat Coalfields Ltd.
3. Fellow Subsidiaries : NIL
4. Overseas
Subsidiaries : a) Solar Overseas Mauritius Limited
b) Solar Agro Florestal LDA*
c) Solar Industries Mocambique LDA*
d) Solar Recursos Minerals LDA*
5. Fellow Overseas
Subsidiaries a) Solar Explochem Mauritius Ltd.*
b) Solar Netherlands Corporatie U.A.
c) Solar Netherlands Overseas B.V.
d) Ilci Patlayici Maddeler Sanayi VeTicaret
Anonim Sirketi
e) PATSAN Pattlayici Maddeler Sanayi Ve Ticaret
f) Solar Overseas Singapore Pte Limited
g) Solar Nigachem Nigeria Limited*
h) Nigachem Nigeria Limited
i) Solar Explochem Zambia Limited
j) Solar Mining Services Australia Pty Ltd.*
k) Solar Nitrochemicals Limited*
l) P T. Solar Mining Resources*
6. Associates a) Solar Synthetics Private Limited
b) Mahakal Infrastructures Private Limited
c) Mahakal Project Private Limited
d) Nagpur Infrastructure Private Limited
e) Solar Bhatgaon Extension Mines Private
Limited
f) SMS Bhatgaon Mines Extension Private Limited
g) Bhatgaon Extension Mines Private Limited
h) Bhatgaon Mines Private Limited
i) Sunbeam Explosives Limited
j) Sunrise Explosives Limited
k) Solar Initiating Systems Limited
l) Madanpur North Coal Fields Limited
m) Solar Processors Limited
n) Commercial Sales Corporation
o) Australian Explosive Technologies Group PtyLtd
* Note: The Company has not commenced any business operations, hence
financial performance is not available.
6. Key Management Personnel : a) Shri.S.N.Nuwal
b) Shri K.C.Nuwal
c) Shri Manish Nuwal
d) Shri K.S. Talesra
e) Shri R.D.Vakil
7. Employee retirement benefits
Contributions to Provident Fund are deposited with the appropriate
authorities and charged to the Profit and Loss Account as incurred. The
Company has made provision for gratuity based on 15 days'' salary for
each completed year of service.
8. In earlier year the Company has supplied explosives to Coal India
Ltd from 1st March, 2006 to 30th June, 2006 as per old rate contract
rates on confirmation from Coal India Ltd that new rate contract will
be issued effective from 1st March, 2006 Coal India Ltd has issued new
rate contract w.e.f 29th July, 2006 without covering the period From
1st March, 2006 to 30th June, 2006. The Company has protested and now
this is sub Juidice at Hon. Calcutta High Court on the ground that
since no rate contract has been issued for 01.03.06 to 30.06.06 so
rates of old rate contract shall be applied. During the year Hon.
Calcutta High Court has given an order asking Bank Guarantee against
such deductions and company has submitted the same which is included in
contingent liability. The court has passed an order for release of
payment against Bank Guarantee for Cartridge & Accessories Division
only and allowed full deduction for Bulk Division pending final
decision in the matter by the Hon. Calcutta High Court.
9. During the year company has traded Ammonium Nitrate of Rs. 5101.71
Lacs.
10. Company has made investment during FY 2008-09 in two SPV companies
along with SMS Infrastructure Pvt.Ltd. to enter into Joint Venture with
CMDC for mining work and separate Joint venture companies is formed in
which the stake of CMDC is 51%. The stake of Solar Industries India
ltd. in SPV Company is as follows.
Solar Bhatgaon Ext.Mines Pvt.Ltd. 49%
SMS Bhatgaon Mines Extension Pvt.Ltd. 49%
11. During the year the Company has invested $ 70.00 Lacs in its
foreign subsidiary Solar Overseas Mauritius Ltd.further Solar Overseas
Mauritius Ltd.has invested in Solar Netherlands Corporatie U.A., Solar
Netherlands Overseas B.V., Ilci Patlayici Maddeler Sanayi VeTicaret
Anonim, PATSAN Pattlayici Maddeler Sanayi Ve Ticaret, Solar Overseas
Singapore Pte Limited , Nigachem Nigeria Limited, Solar Explochem
Zambia Limited
12. During the year the Company has executed the turnkey project of
installation of Bulk Explosive Manufacturing Plant for its associate
company Nigachem Nigeria Limited. of Rs. 626.79 Lacs
13. During the year the Company has provided Rs. 546.90 Lacs against
Powder Factor deductions for its supplies of explosives to Coal India
Ltd.
14. Sundry Creditor includes outstanding balance of M/s Citco Waren
Handel Sgesellschaft & Quantum Fertilizers Ltd. Rs. 6787.26 Lacs which
includes payment outstanding against Buyers Credit is Rs. 6787.26 Lacs.
15. Some of the customers and suppliers accounts are pending for
confirmation/reconciliation and the same have been taken as per the
balances appearing in the books. Any differences arising on account of
such reconciliations, which are not likely to be material, will be
accounted for as and when these reconciliations are completed.
16. Capital work in progress in Fixed Assets
Company has got status of Mega Project from Government of
Maharashtra. Company has made investment in Fixed Assets. Project work
is not completed, hence shown under Capital WIP.
Civil Construction worth Rs. 471.36 Lacs, Plant & Machinery worth Rs.
693.78 Lacs, Electric Installation worth Rs. 49.65 Lacs, and other work
in progress Rs. 409.67 Lacs.
17. Excise Duty shown under expenditure represents the aggregate of
the difference between Excise Duty on the Opening and Closing Stock of
Finished Goods.Excise Duty deducted from Sales represents Excise Duty
paid.
18. Sundry Creditors for goods and expenses include dues to Micro
Small & Medium Scale Business Entities aggregating to Rs. 95.44 Lacs
The names of Micro Small & Medium Scale Business Entities (to the
extent of information available with the management- to whom the
Company owes a sum exceeding Rs. 1 lac each Basic Chemical Industry,
Kalinga Wrappers, Sunrise Technologies,Welset Plast Extrusion
Pvt.Ltd.,Sankhala Industries,Bharat Solar Cable,Rudraksha Allied
Chemical Pvt.Ltd.,Hindustan Gum & Chemicals Ltd.,Gujrat Polymers,Anupam
Colours Pvt.Ltd.,Geeta Packaging Industries, Shree Gajanan Agro
Industries,Maxwell Poly Products,Sachin Polypack & Gayatri Packaging
Industries. None of the aforesaid outstanding is due for payment as at
31st March, 2011 as per agreed terms.
19. Export Incentive receivable under duty free credit entitlement
included under the head Loans & Advances is pending due to disposal for
some procedural aspects with Government. Shortfall / excess if any will
be taken into accounts as and when it is determined.
20. Manufacturing sales includes input material sales
21. Disclosure as required by Accounting Standard 19 Leases issued
by the institute of Chartered Accounts of India are given below:
Being the Company is Lessee:
(i) The Company''s significant leasing arrangements are in respect of
godown / residential / office premises (including furniture and
fittings therein, as applicable-. The aggregate lease rental payable is
charged to Profit and Loss Account as Rent.
(ii) The Leasing arrangements, which are cancelable at any time on
month to month basis and in some cases between 11 months to 5 years,
are usually renewable by mutual consent on mutually agreeable terms.
Under these arrangements generally refundable interest free deposits
have been given.
22. All known liabilities have been taken into consideration.
23. The previous years figures have been regrouped/reclassified where
necessary, to conform to the current year''s presentation.
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