1.1) Due to considerable fall in the demand for Aluminium Collapsible
tubes with the introduction of Plastic Laminated Tubes and Oval Tin
Containers, the Company was forced to discontinue its manufacturing
activities a few year back.
As per the requirements of Section 293 of the Companies Act, 1956 and
duly approved by the General Body in an earlier year, the Company had
been disposing off Plant & Machinery over the years. The last of
sizeable portion of machinery was sold in current year to enable the
Company to re-design the shop floor for taking up manufacturing of
Plastic laminated tubes for packaging of FMCG products/ manufacturing
of Aluminium Rod and/or Aluminium Conductor for power
distribution/printing of tin plate sheet usable for commercial
buildings. The Company has been in dialogue with various overseas
equipment suppliers to ensure procurement from most economical source.
Considering the progress of the development, the accounts have been
prepared on Going Concern basis.
1.2) Contingent Liability
- Central Sales Tax Demand contested under appeal 146,202/- (Previous
- Other disputed claims-Telephone Exp. dues at Hyderabad 140,000/-
(Previous Year 140,000/-)
- Property taxes of Pendhar Grampanchayat of 862,574/- demanded by
Grampanchayat vide demand notice no. 177 dt. 18-2-2006 for the period
up to 31-3-2006 against which company has filed special suit in the
court of Civil Judge Senior division Pannel. From 1-4-2006 to 31-3-2012
no any demand notice received for the same, hence amount can not be
identifiable. Property tax liability of the periods, for which
bill/demand is not raised by the Pendhar Grampanchayat, not known to us
and hence it is neither provided in books and not quantifiable for us
due to non availability of information.
1.3) Disposal of Fixed Assets
Company has disposed of the fixed assets consisting of plant &
machinery having gross value of 123.52 lacs and net value of 6.78 lacs.
After such disposal, the balance value of Plant & Machinery stands at
1.50 lacs. The disposal of assets has been done in view of management''s
plan to bring new plant and machineries for a new project what ever and
when ever will be finalized in near future. However till new project
get finalized, the factory shed can be used for storage and can be let
out on commercial basis for a shorter period in future.
1.4) Write off/wite back of assets and liabilities Company has during
- Written off Debtors and advances aggregating to 45,00,631 which
- Written off the Value of closing stock of material lying with third
party by 10,15,700 and the same is valued at nominal price of 1 per kg.
which comes amounting to 13,568.
- Written back liabilities of 12,29,849.
Management had reviewed from time to time the realisability of the
amounts recoverable and probability of payments to be made against such
payable. It is assessed that such sums are not recoverable / payable
and accordingly decision was taken to write them off.
Any recoveries made / payments made against such assets / liabilities
would be accounted for in the year of receipt / payment.
1.5) (a) In the opinion of the management, the current assets, loans
and advances including deposits are approximately of the value stated,
if realised in the ordinary course of business.
(b) Balances of certain Sundry debtors, creditors and advances are
subject to confirmations and reconciliations, if any. The difference as
may be noticed on reconciliations will be duly accounted for on
completion thereof. In the opinion of the management, the ultimate
difference, if any, will not be material.
1.6) The accounts relating to unclaimed share application money for
the year 1994-95 aggregating to 89,895/- (Previous Year 89,895/-) are
under reconciliation with the Company''s Share Registrar, Registrar to
the Issue and Bankers and therefore, could not be paid to Investor
Education and Protection Fund as required under Section 205C of the
Companies Act, 1956. On completion of reconciliation, these would be
transferred to the said Fund.
1.7) The Company is engaged in manufacture and sale of Tubes and
Tin Containers. As the manufacturing activities of the Company are
suspended hence there is no any segment wise information to report as
per Accounting Standard 17 issued by The Institute of Chartered
Accountants of India.
1.8) Related Party disclosure as per Accounting Standard 18 :
i) Parties with whom the Company has entered into transactions during
the year :
Ircon Trading & Manufacturing Pvt. Ltd.
Universal Enterprises Ltd.
Universal Plastocrafts Pvt. Ltd.
Universal Autocrafts Pvt. Ltd.
P. P. Packagings Pvt. Ltd.
Bhagwati Industries (Prop. Kumar Metals Pvt. Ltd.)
(ii) Key Management Personnel
Shri Prakash Kumar Mohta - Director Note : Related parties are as
identified by the Company and relied upon by the Auditors.
1.9) In view of considerable reduction in activities of the Company,
a Whole Time Company Secretary could not be appointed.
1.10) Employee Benefits as on 31st March 2012 are provided on the
basis of the Company''s rules and not on the basis of Actuarial
valuation as required under Accounting Standard 15 (revised).