| I. Contingent Liabilities
01. Rs. 15,04,412/- are lying with UP Trade Tax Department under
protest/appeals in schedule - "G" which are pending before higher
authorities, for the earlier years and liability if any arises, is not
ascertainable.
02. The company have ILCs facilities with Punjab National Bank, IBB,
New Delhi and outstanding as on 31.03.2002 was Rs. 4,20,23,420/-. This
amount of ILCs has already been credited to parties account.
03. The company has given guarantee to Punjab National Bank, IBB, New
Delhi for Rs. 9.44 lacs each aggregating to Rs. 75.52 lacs plus
interest to secure loan granted by the said bank.
04. The company has given a corporate guarantee of Rs. 74,73,180/- to
M/s Magma Leasing Limited for and on behalf of its group company
Darshan Agroils Limited, against buying two D. G. set.
05. The company has given a corporate guarantee of not exceeding Rs.
200 lacs to Punjab Alkalies & Chemicals Limited, Naya Nangal, Nangal,
Punjab for and on behalf of Royal Darshan Gases Pvt. Limited, Naya
Nangal, Punjab against supply of Hydrogen Gas.
06. The company has opted the scheme of compounding Trade Tax
promulgated under section 7D of UP Trade Tax Act, vide circular No.
99/467 dated 25.06.1998 in the accounting year 1998-99. The matter is
pending before the learned Commissioner of Trade Tax, Lucknow to
execute the order passed on 29.03.2000 under Civil Misc. Writ Petition
No. 1081 of 1999 - M/s Darshan Oils Limited (Prop. of Darshan
Vanaspati, Aligarh) V/s The Commissioner of Trade Tax, UP, Lucknow and
others by Honble High Court of Allahabad. Any liabilitiy which may
arise towards interest and otherwise can not be ascertained at this
stage.
II. Others
01. General Reserves includes Rs. 33,61,771/- transferred from profit &
Loss Account being amount of depreciation written back in the year
1991-92 which is not available for distribution.
02. Other current assets schedule - "G" include the goods amounting to
Rs. 4,00,768/- lying in the factory under the warranty of court. The
value of goods is comprised of the sales of vanaspati executed on
28.03.1998 shown under sales, but as the truck driver misdirected the
goods and had not delivered the same to M/s Goyal & Co., Gorakhpur, FIR
was lodged and the truck was traced on 04.04.1998. The said goods are
lying in the custody of company, under the instruction of the Honble
Court of Aligarh, the same can not be disposed off till further order
of the Honble Court.
03. The Trade Tax Department has raised the demand of Rs. 48,17,092/-
for the assessment year 1998-99 for which the company has gone into
appeal which is pending before higher authoritie and the company has
deposited the amount of Rs. 24,08,550/- with the departments which is
shown under taxes deposited under appeal/protest in Schedule - G.
04. Balances shown under advances, sundry debtors and sundry creditors
are subject to reconciliation and realisation of cheques, in the
opinion of the management, the value on realisation of current assets,
loans and advances in the ordinary course of business will not be less
than the value at which these are stated in the Balance Sheet.
05. Managerial Remuneration
2001-02 2000-01
a] Salary Rs. 6,12,534 Rs. 5,70,500
b] Perquisites - -
i] Club Expenses Rs. 5,000 Rs. 5,000
ii] Accidental Insurance - Rs. 1,675
c] No. of Directors to whom remuneration paid 3 3
06. In view of the loss no provision of Income Tax has been made.
07. Name of SSI unit to whom the owe a sum exceeding of Rs. 1,00,000/-
which to outstanding for more than 30 days:
In absence of sufficient information from suppliers regarding their
status as SSI unit, amount overdue to such undertakings could not be
ascertained.
08. There are no employees, who are in receipt of the remuneration
exceeding the limit specified in accordance with the provisions of
section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
09. Travelling and conveyance includes Directors travelling of Rs.
20,356/-.
10. Prior period items have been charged to respective heads of
Expenditure. The details are as under:-
HEAD OF EXPENDITURE AMOUNT (Rs.)
Process Lab Chemicals U. P. Purchase 16,018
Interest paid 2,357
Advertisement and Publicity Expenses 5,100
Service Charges on ILC 1,500
Interest Received 32,540
11. The company has made payment to the Auditors as follows:
2001-02 2000-01
a] For service as Auditors Rs. 60,000 Rs. 60,000
b] Any other matter Rs. 2,888 Rs. 1,050
c] Service Tax Rs. 3,000 -
12. Previous years figures have been regrouped/rearranged, wherever
considered necessary.
13. Figures have been rounded off to the nearest rupees.
14. Maximum balance due to Directors of the company at any time during
the year - NIL
15. Value of Imports (CIF Basis)
2001-02 2000-01
Raw Material - Rs. 5,05,91,387
16. During the year no earning foreign currency and expenditure or
remittance in foreign currency have been made.
17. During the year ended 31.03.2001 cash amounting to Rs. 6,00,000/-
was lost in theft/robbery. Out of the above, a sum of Rs. 2,25,700/-
has been recovered by Police, which is lying in the custody of
authorities and the balance of Rs. 3,74,300/- has been charged to
Profit & Loss Account in the year ended 31.03.2001..
18. Estimated amount of contracts remaining to the executes on capital
account are not provided for ( net of advance) - Nil.
19. Loans and Advances
Advances are recoverable in cash or in kind or for value to be received
and reconsidered goods. These includes (a) due from companies/firm in
which one of the director are interested - Nil.
20. Deferred Tax
In accordance with accounting standard - 22, the Company has recognised
the accumulated Deferred Tax Liability (net) as at 1st April, 2001
amounting to Rs. 2,00,02,650/- as a deduction from General Reserve.
During the year there being huge losses, there is no tax liability
either current or deferred, the above amount of Rs. 2,00,02,650/- has
been calculated as under:-
W. D. V. of Fixed Assets as at 01.04.2001
[a] As per Companies Act 10,87,64,306
[b] As per Income Tax Act 5,18,97,525
Difference 5,68,66,781
Less: Unabsorbed Depreciation 8,36,951
Balance 5,60,29,830
Tax Liability @ 35.70% 2,00,02,650
21. Segment Information - The Company has only one business segment i.
e. edible oil.
22. Information pursuant to Accounting Standard AS-18, related party
disclosures is as under Relationship
[a] Subsidiary Companies - Nil
[b] Other related parties where control exists - Nil
[c] Key Management Personnel
- S. Gurbachan Singh
- S. Satinder Singh
- S. Ravjit Singh
[d] Relatives of Key Management Personnel and their enterprises where
transactions have taken place
- M/s Amit Enterprises
- M/s Pradeep Enterprises
- M/s Royal Darshan Gases (P) Limited
- M/s A. S. D. S. Transport Co.
- M/s Darshan Amusements (P) Limited
- M/s Darshan Worldwide Limited
- M/s Darshan Agroils Limited
- M/s A. D. Rice Mills Limited.
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