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SENSEX NIFTY India | Notes to Account > Castings & Forgings > Notes to Account from Carnation Industries - BSE: 530609, NSE: N.A

Carnation Industries

BSE: 530609|ISIN: INE081B01010|SECTOR: Castings & Forgings
Nov 21, 16:00
Carnation Industries is not listed on NSE
Mar 14
Notes to Accounts Year End : Mar '15
 1.  General Information
 Carnation Industries Limited (the Company) is a public company
 domiciled and incorporated in India. The company is engaged in the
 manufacture of foundry based engineering goods namely Cast Iron,
 Ductile Iron and Mild Steel Castings predominantly for export and also
 for domestic market having plants at various locations in West Bengal.
 Its shares are listed on two stock exchanges in India (Bombay Stock
 Exchange and The Calcutta Stock Exchange Ltd.).
 2. Terms/rights attached to equity shares
 The company has only one class of equity shares having face value of
 Rs. 10 per share. Each holder of equity shares is entitled to one vote
 per share. The company declares and pays dividends in Indian rupees.
 The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing Annual General Meeting.
 3. During the year ended 31st March 2015, the amount of per share
 dividend recognised as distributable to equity shareholders is Re: 0.60
 (31st March 2014: Re. 0.80). The total dividend appropriation for the
 year ended 31-03-2015 amounted to Rs.24.89 lacs (Previous year Rs.32.36
 lacs) including corporate dividend tax of Rs. 4.15 lacs(Previous year
 Rs.4.70 lacs).
 4. In the event of liquidation of the company, the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after distribution of all preferential amounts. The distribution will be
 in proportion to the number of equity shares held by the shareholders.
 (Secured against purchase of bills, hypothecation of stock in trade,
 Book Debts and receivables, Term Deposits, Equitable Mortgage of Land /
 Buildings owned by the Company as well as by some Direc- tors, charge
 on the existing and future plant & machinery owned by the Company and
 personal guar- antee of some Directors and guarantee by ECGC on
 pari-passu basis amongst the Bankers, including for short term
 (Secured against purchase of bills, hypothecation of stock in trade,
 Book Debts, and receivables, Term Deposits, Equitable Mortgage of Land
 / Buildings owned by the Company as well as by some Directors, charge
 on the existing and future plant & machinery owned by the Company and
 personal guarantee of some Directors and guarantee by ECGC on
 pari-passu basis amongst the Bankers including for long term
 7 In view of insufficient information from the suppliers regarding
 their status as Micro, Small and Medium Enterprises, the amount
 remaining unpaid to such undertakings could not be ascertained for
 separate disclosure in our accounts.
 8 Charge of hypothecation over Current Assets & Raw Materials procured
 under letter of credit in favour of bankers has been created for letter
 of credit issued. Agreegate value of such letter of credit outstanding
 as on 31st March, 2015 is Rs.787.64 lacs. (Previous Year Rs.695.36
 9 Export proceeds in foreign exchange from a related party of Rs.
 2907.51 lacs (Previous year Rs.1403 lacs) could not be realised within
 12 month from the dates of export as at the end of the year. Total
 outstanding as on 31.03.2015 is Rs. 3173.04 lacs (Previous Year Rs.
 3178.55 lacs).  Out of that Rs. 64.75 lacs have since been realised.
 i) Estimated amount of contracts remaining to be executed on Capital
 Account is Rs. NIL (Net of advance of Rs. NIL) (Previous year Rs. 4.17
 lacs, net of advance Rs. 25.63 lacs.)
 ii) Contingent liability not provided for in respect of : (Rs. in Lacs)
                                               As at              As at
                                            31.03.15          3 1.03.14
 a) Outstanding Bank Guarantee               104.68               57.33
 b) Disputed Duty & Penalty under             86.56               86.56
 Central Excise Law
 c) Disputed Vat Demand for the              100.13              100.13
 Financial Year 2007-08
 d) Duty drawback received
 amounted to Rs.57 lacs (Approx)
 (Previous year Rs. 27.00 lacs)
 is subject to export realisation.
 11. In addition, the company has a few outstanding legal proceedings
 which have arisen in the ordinary course of business. However the
 company''s management does not expect this legal proceedings, when
 concluded will have any material and adverse effect on the financial
 position of the company.
 12 The Company, in respect of its claim for refund of Input Tax
 Credit amounting to Rs.106.03 lacs for the Financial Year 2005-06 had
 fled a revision petition u/s 87 of the VAT Act, 2003 against the
 Appellate Authority''s order dt. 25/03/2011, rejecting the appeal and
 also fled an appeal before The West Bengal Commercial Taxes Appellate
 and Revisional Board for the financial year 2007-08 against the order
 passed by the Joint Commisioner of Sales Tax, Kolkata (South) Circle,
 rejecting the total claim of ITC for that year and also raised a demand
 for Rs.100.13 lacs.The revision petition and the appeal are still
 pending. Claims for the refund of Input Tax Credit in respect of other
 financial years are at various stages of adjudication with the Sales
 Tax Department. The Company expects realisation of these refund claims
 not later than 12 months from 31st March, 2015. The company had also
 been advised by its lawyer that these claims were worked out and made
 in confrmity and compliance with the stipulated rules and procedures.
 During the current financial year the company has partly received
 provisional refund of Input Tax Credit amounting to Rs.93.06 lacs,
 Rs.182.02 lacs and Rs. 50.05 lacs out of claims made for the financial
 year 2012-2013, 2013-2014 and 2014-2015 against submission of Indemnity
 Bonds equivalent to the amount of claim.
 13 The company recognises overdue interest on export sales as and when
 the sale proceeds is realised as mutually agreed.
 14 The Additional Commissioner of Central Excise, Kol-II and Haldia
 Commissionarate have raised two separate demands with penalty
 agreegating to Rs. 136.56 lacs out of which Rs. 50.00 lacs was paid in
 the financial year 2007-08. The Company had fled Appeals against the
 above demands before the Commissionarate (Appeal -I&II) of Central
 Excise Kolkata which are still pending.
 15 Gratuity and Other Post-Employment Benefit Plans:
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 16 The Company also provides Leave Encashment Benefit to employees,
 whereby unutilised leave is carried forward and eligible for encashment
 upon retirement / termination.
 17.The following tables summarise the components of net benefit expense
 recognised in the Profit and Loss Account and amounts recognised in the
 Balance Sheet for the respective plans.
 18. In the opinion of the board, all Current Assets and Non-Current
 Assets have a value on realisation in the ordinary course of business
 at least equal to the amount at which they are stated in the
 accounts.Balance confirmation from certain vendors are yet to be
 received by the company.
 19 The assets and liabilities which are expected to be realised and
 payable in the ordinary course of business not later than 12 months
 from the reporting date have been classified as current assets and
 current liabilities in the Balance Sheet. All other assets and
 liabilities have been classified as non-current.
 20 Foreign Exchange gain of Rs.228.38 lacs (Previous year gain Rs.
 94.66 lacs) are net of exchange gain of Rs. 1.74 lacs (Previous year
 Rs.1.00 lacs) arising out of conversion of unexpired forward exchange
 contract at marked to market and loss of Rs. 1.72 lacs (P.Y. Rs.21.06
 lacs) arising out of cancellation of forward exchange contract during
 the year.
 21 The following table shows the distribution of the Company''s
 consolidated sales by geographical market, regardless of where the
 goods were produced.
 22. The Company has common cost, fixed assets and liabilities for all
 geographical segments, hence separate figures for segment results,
 fixed assets/addition to fixed assets and liabilities have not been
 23.  Provision for current tax has been made under the normal positions
 of the Income Tax Act, net of MAT credit.
Source : Dion Global Solutions Limited
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