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Bee Electronic Machines

BSE: 517203|ISIN: INE038E01014|SECTOR: Electric Equipment
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Bee Electronic Machines is not traded in the last 30 days
Bee Electronic Machines is not listed on NSE
Mar 13
Notes to Accounts Year End : Mar '14
1) Liability for gratuity and leave encashment on actuarial basis has
 not been provided for, amount being unascertained and the same is
 treated on cash bbsis.
 
 2) (a) The Excise duty payable on finished goods is accounted for on
 clearance of goods from the Factory. The amount of Excise duty payable
 on finished goods not cleared from factory as on the above date is
 estimated at Rs. 196,892/- (Rs. 196,892).
 
 (b) Interest on Excise duty payable of Rs 531,300/- (Rs 483,000/-) has.
 not been provided for.
 
 (c) Property tax has not been provided for Rs 698,169/- (PY Rs.
 630,418/-)
 
 3) In the opinion of the management, the current assets, loans and
 advances are approximately of the value stated, if realized in the
 ordinary course of business except otherwise stated. The provision for
 all known liabilities is adequate and not in excess of the amount deemed
 necessary. There are no contingent liabilities other than those stated
 above.
 
 4) a) The Non Convertible Debentures of UTI are to be secured by
 equitable mortgage of the Company''s immovable properties, and by way of
 hypothecation of plant and machinery and aft movable properties, (first
 charge) both present and future (save and except book debts) subject to
 the prior charges created/to be created in favor of the company''s
 banker''s on Its raw materials, finished goods and consumable stores for
 securing borrowings for working capital requirement, the said charge
 shal rank pari passu-wkh the existing charge holders. Trust deed and the
 charge on the said assets are not created.
 
 b) The debentures shown under secured loans have become due for
 redemption on May 18, 1998, along with premium of 5% of face value.
 Management has approached UTI tor a rollover. Therefore, the same has
 been showp under the head short term borrowings in current liabilities
 as secured loan. However, due to this secured loan is overstated to
 that extent Confirmation from UTI in respect of rollover of debentures
 is st#l awaited.
 
 c) Provision of penal interest due to non-payment of principal along
 with a premium of 5% has not been made as the Company has requested UTI
 for waiver of the same. Amount not being ascertained, the same will be
 accounted for as & when settled. On account of this, the profit for the
 year Is overstated.
 
 d) On account of the ongoing one time settlement talks going on with
 UTI, interest of Rs 18.75 lacs (PY Rs 18.75 lacs) for the year under
 review is not provided for as the management is hopeful that the
 interest would be waived off.  Due to this, loss for the year is
 understated. Total accumulated non provision of interest is Rs 307.45
 lacs (PY Rs 288.70 lacs).
 
 e) Provision for interest on premium of Rs 625,000/- payable to UTI has
 not been made as the company has requested UTI lor waiver of the same.
 Due to this the toss for the year is understated by Rs 93,750/- and
 secured loans is also understated to that extent Accumulated Interest Rs
 15,00,000/- has not been provided for.(PY Rs 14,06,250)
 
 5) Sundry Debit, credit balances and secured loans from UTI and banks
 are subject to confirmation, reconciliations and adjustments, required,
 if any.
 
 6) Loans and advances include doubtful advances of Rs 581,279 (Rs.
 611,279). However, no provision has been made.
 
 7 a) Bankers of the Company have filed suit against the company for
 recovery of their dues with the Debt Recovery
 Tribunal. Adjustment, if any, will be accounted for as and when,
 settled. Therefore, the stone has been shown under the head short term
 borrowings In current liabilities.
 
 b) In view of the on-going one time settlement talks with the bankers,
 the company has not provided interest on the working capital facilities
 amounting to Rs 171.88 lacs (PY Rs 171.88 lacs), as the management Is
 hopeful that interest would be waived off. Due to this, the loss is
 understated to that extent. Total accumulated non provision of interest
 is Rs 2723.20 lacs (PY Rs 2551.32 lacs)
 
 c) The Company hasnot provided penal interest and interest on interest
 accrued and due as the Company is in the process of negotiating with
 the bankers to waive the same off. The same if any payable, in future
 shall be accounted for as and when settled.
 
 d) Security against the working capital facility is Rs 409.83 lacs as
 against foe total working capital of Rs 1053.26 lacs. Hence the secured
 loan is unsecured to that extent
 
 e) The Hon''ble Board for industrial and Financial Reconstruction
 (B1FR), New Delhi in furtherance to their earlier directions In the
 hearing on 12* March 2012 ruled and directed that the Company is
 permitted to sell itssurplus assets to settle its secured creditors and
 statutory liabilities. The Bench of the Hon''ble BIFR accordingly
 directed Canara Bank (Operating Agency) to constitute an Asset Sales
 Committee (ASC) to sell the Company''s surplus assets at Tarapur and
 Daman. The Operating Agency floated a tender for sale of the two
 properties. The ASC received a total of 5 (five) bids and at the
 hearing of Hontrie BIFR held on 15 April 2013, the Hon''ble BIFR directed
 the Company and the Operating Agency to accept the highest bid received
 for Rs 270 lacs. Hon''ble BIFR further directed that the sale proceeds of
 Rs. 270 lacs be utilized a) to meet al the statutory liabilities of the
 company, b) the cost incurred by Operating Agency in issuing
 advertisement and c) the cost of valuation done by ARGIL The balance
 left with to be shared by all the secured lenders on a pro rata based on
 the liability outstanding on a common date. The Company has accordingly
 identified the following statutory dues 1) Employee dues Rs 53.85 lacs
 2) Excise dues Rs 14.75 lacs 3) Sales tax dues Rs 1.71 lacs 4)
 Electricity Exps Rs 2 lacs, water & Fire cess Rs 2.10 lacs, Transfer
 charges Rs 7.83 lacs and security charges Rs 0.55 lacs relating to the
 above properties sold 5) Service tax dues Rs 0.24 lacs 6) Profession tax
 dues Rs 0.08 lacs 7) Stock Exchange and STA dues Rs 4.70 Lacs 8) SICOM
 dues Rs 3.30 lacs 9) Consumer forum cases Rs 2.62 lacs 10) Capital Gain
 tax arising on the sale of properties-Rs 65 lacs.
 
 f) The Company has had to prefer an Appeal before Hon''ble AAIFR as the
 lenders have taken a contrary view than agreed upon earlier and have
 taken a stand that Capital Gains Tax and such similar liabilities are
 not statutory in nature and hence should not be paid from the sale
 proceeds of Rs 270 lacs. Their other contention is that once the
 balance Sale proceeds are shared amongst the lenders, the settlement
 would not be full and final but only part settlement of dues; a stand
 which is contrary to the understanding reached earlier and hence the
 Appeal. The matter is presently before the Hon''ble AAIFR. The Company
 continues to hold possession of the said assets.  Necessary accounting
 effects shall be given in the books at the time of final settlement.
 
 g) inventories of finished goods. Raw materials and Spares include
 value of old / slow moving stocks Of Rs. 401 lacs; the realizable value
 of this stock Is estimated at Rs. 1 lac by the management However, no
 provision for the loss of Rs.  400.00 Lacs Is made during the year.
 Further valuation of these inventories is not in accordance with AS 2-
 Valuation . of Inventories issued by ICAl.
 
 (b) The Company is of fire opinion that computation of net profit u/S.
 35Q of The Companies Act, 1956 need not be made since no commission is
 payable to the Whole time Director (or the year ended March 31st, 2014.
 
 8) Deferred Tax: - In view of the applicability of Accounting Standard
 22, Accounting for Taxes on Income for the year, the company does not
 have current tax as well as deferred tax BabHHy due to carry forward
 losses. In the opinion of the 1 Management, deferred tax asset is not
 recognized in view of the uncertainty of future taxable profit.
 
 9) Segment Reporting: -
 
 a. Business Segment: - The Company is primarily engaged in the business
 of selling and servicing office automation products. As the sales and
 the after sales service forms the part and parcel of the same business
 activity, the 1 management has considered both the sales and after sale
 service as one segment only.
 
 b. Geographical Segment - The Company sells the office Automation
 products within India and also does the after sales service of the
 office Automation products in India only. The Condition prevailing in
 India being uniform, no separate geographical segment disclosure is
 considered necessary.
 
 10) The Management had in earlier years carried out assessment of
 impairment test as per the Accounting Standard (AS) 28 and have provided
 for impaired loss in the books. However, no such impairment is carried
 out in the current year.
 
 11) Related Party Disclosure: - Transactions made by the Company during
 the year with related parties is disclosed pursuant to Accounting
 Standard 18 on Related Party Disclosures issued by the ICAl Is given
 here under. Related party relationship is as identified by the Company
 and relied upon by the Auditory ''''
 
 12 Contingent liabilities                 As at              As at
 (to the extent not provided for)     31 March, 2014     31 March, 2013
 
 Contingent liabilities
 
 (a) Claims against the Company not
 acknowledged as debt                     24,863,538         25,028,538
 
 (b) Disputed Excise Duty Liability       51,284,133         51,284,133
 
 (c) Disputed Sales tax Liability          4,021,385          4,021,385
 
 *** In the case pending before The Civil Judge (Senior division),
 Palghar filed against the Company by MZs. K. Rohit Grinders, Dahanu in
 2006 for specific performance of alleged Agreement for Sale signed
 between the Company and the said party for the sale of the Company''s
 property at Dahanu. The case was decided against the Company. The
 Company has been asked to complete the transaction and handover
 possession of the property by accepting Rs.26.06 lacs being the amount
 payable by the party in 1999 when the Agreement for Sale had been
 signed. It is the Company''s case that the Company now being registered
 with Hon''ble BIFR, thp Company cannot enter, complete and/ or execute
 any transaction relative to the assets of the Company without consent
 of BIFR. It is further understood that said Agreement for Sale had been
 terminated and there exists no contract between the parties as on date.
 Being aggrieved by the Order passed, the Company has preferred an
 Appeal in The High Court of Judicature at Bombay. The case is
 registered and is now being heard for admission and other judicial
 consideration. The possession of the Dahanu factory continues with the
 company.
 
 13) Previous Year figures have been regrouped, rearranged, and recasted
 wherever necessary on account of the changes required in the new format
 under schedule VI of The Companies Act, 1956.
 
 14) Figures within the brackets for previous year.
Source : Dion Global Solutions Limited
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