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Moneycontrol.com India | Notes to Account > Cement - Mini > Notes to Account from Modi Cement - BSE: 518014, NSE: MODICEMENT
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Modi Cement

BSE: 518014|NSE: MODICEMENT|SECTOR: Cement - Mini
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Modi Cement is not traded in the last 30 days
Modi Cement is not traded in the last 30 days
Notes to Accounts Year End : Dec '05
SHARE CAPITAL
 
 Authorised
 
 19,50,00,000 Equity Shares of Rs. 10 each Issued, Subscribed & Paid-up
 
 19,24,51,695 Equity Shares of Rs. 10 each fully paid-up (Refer Note
 below)
 
 Equity Shares Forfeited (Amount originally paid-up)
 
 Includes 18,65,56,239 (Previous Year 18,10,57,827)
 Equity Shares of Rs.10 each fully paid-up held by
 Ambuja Cement India Limited, the immediate holding company.
 
 1. Secured by mortgage of all the Company's immovable properties both
 present and future and hypothecation of all the movable assets of the
 Company, save and except specifically demarcated land and housing
 colony and book debts but including movable machinery spares, tools and
 accessories, both present and future, subject to prior charges, created
 in favour of the Company's bankers on specified movables for working
 capital requirements.The charges shall rank pari passu in favour of
 the Financial Institutions and Banks.
 
 2. The loans are payable at par in seven annual instalments commencing
 from 31st March, 2001 without interest pursuant to the Rehabilitation
 Scheme sanctioned by Hon'ble Board for Industrial and Financial
 Reconstruction on 05.11.1997. The instalment due as 31 st March, 2005
 has been paid during the period.
 
 3. Secured by hypothecation of inventories and book debts both present
 and future and second charge by way of joint mortgage/hypothecation of
 all the Company's assets both present and future.
 
 4. To be secured by mortgage of the immovable properties both present
 and future and hypothecation of movable assets, save and except
 specified movable assets hypothecated in favour of Company's bankers
 for working capital requirements ranking pari passu with other lenders
 as per (a) above.
 
 5. Secured by mortgage of the immovable properties both present and
 future and hypothecation of movable assets of Company's plant at
 Sankrail in the state of West Bengal. The loan has been repaid during
 the period and the security has since been released.
 
 6. Contingent liabilities not provided for in respect of:
 
 i) Claims against the Company not acknowledged as debts
 
 a) Demand notice received from the Mining Department of State
 Government for interest on delayed payment of royalty on limestone.
 Matter is pending before the Collector, Chhattisgarh State Government.
 
 b) Demand raised by State of Madhya Pradesh for realizing stamp duty
 and registration charges for transferring the factory land.
 
 c) Demands claiming absorption of contract labours engaged by the
 Company. The Industrial Tribunal, Jabalpur had passed a `no dispute
 award' in 1999, which became final upon expiry of 30 days from its
 publication, as no appeal was preferred against the said award.
 However, an application for restoration made in 2000 before the
 Industrial Tribunal, Jabalpur is pending adjudication.
 
 d) Claims made by various parties for handling charges, refund of
 security deposit and levy/advance etc., including interest thereon.
 
 e) Other Claims
 
 ii) Excise Matters  Disallowance of MODVAT/CENVAT credit taken on
 various items
 
 iii) Sales Tax Matters  Sales tax matters pending before various
 authorities
 
 iv) Royalty on Limestone
 
 Demand raised by State of Madhya Pradesh for royalty on limestone.  The
 matter is pending before the High Court.
 
 7. Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for (Net of advances)
 
 In accordance with the requirements of Accounting Standard - 29,
 Provisions, Contingent Liabilities and Contingent Assets, issued by
 the Institute of Chartered Accountants of India, which has become
 mandatory with effect from 1st April 2004, the Company has provided
 liability for site restoration amounting to Rs. 255.34 lacs as
 estimated by the management. Site restoration expenditure is incurred
 on an ongoing basis and until the closure of the mines. The actual
 expenditure may vary based on the nature of restoration and estimate of
 restoration cost.
 
 8. The Company has only one business segment `Cement'. Further, since
 virtually all sales are effected in the domestic market, there is only
 one geographical segment. Therefore, the disclosure requirements of
 Segment Reporting are not applicable to the Company.
 
 9. Disclosure of Sundry Creditors under Current Liabilities is based on
 the information available with the Company regarding the status of the
 suppliers as defined under the Interest on Delayed Payments to Small
 Scale and Ancillary Industrial Undertakings Act, 1993. The name of the
 Small Scale party in respect of whom amount is outstanding for more
 than 30 days is - M/s. Simplex Chemo Pack. Hon'ble Board for Industrial
 and Financial Reconstruction has confirmed that no interest is payable
 to the above party under the Rehabilitation Scheme.
 
 10. In terms of the amendments made under the West Bengal Sales Tax
 Act, 1994, the Government of West Bengal has imposed turnover tax with
 effect from 5th August, 2003 on cement manufactured and sold within the
 State. The matter has been contested by the Company and an appeal has
 been filed before the West Bengal Sales Tax Appellate Tribunal. Pending
 disposal of the matter, Turnover Tax amounting to Rs.1482.12 lacs till
 31st December, 2005 (Rs.691.17 lacs for the period) has been paid
 `under protest' and provided for.
 
 11. The exceptional item as appearing in the previous year relates to
 depreciation charge of Rs. 187.35 lacs on machinery spares of Rs.
 371.33 lacs identified during that year.
 
 12. Rates and Taxes includes provision for differential commercial tax
 amounting to Rs. 209.26 lacs for the period 2001 to 2005 (including Rs.
 75.90 lacs for the period), based on demand raised during the year for
 the cement sold outside Chhattisgarh in 2001-02.
 
 13. Consequent upon the change in the shareholding of Ambuja Cement
 India Limited, the Company's immediate holding Company, effecting from
 7th April 2005, the Company has ceased to be a subsidiary of Gujarat
 Ambuja Cements Limited.  The Company continues to remain a subsidiary
 of Ambuja Cement India Limited and has become a subsidiary of Holcim
 Limited, Switzerland, the ultimate holding company.
 
 14. The Company has changed its accounting period to end at 31st
 December every year. Accordingly, accounts for the current period are
 for eighteen months period ended 31 st December, 2005. Hence the
 current period figures are not comparable with those of the previous
 year.
 
 15. Previous year's figures have been regrouped or rearranged wherever
 considered necessary.
Source : Dion Global Solutions Limited
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