| 1. Corporate information
Western India Shipyard Limited ("the Company") incorporated under the
provision of the Companies Act, 1956. The Company is engaged in the
industrial activities of Shiprepairs and Shipbuilding as it
manufactures a variety of spare parts The Company has the required
infrastructure like a Floating Dry Dock of 60000 DWT capacity, 4 wet
repair berths, heavy duty machine shops, paint/valve and pipe shops,
fabrication yards, portal and mobile cranes, captive gensets,
electrical sub-station, to cater to Indian and foreign vessels like
cargo and passenger vessels, tankers, dredgers, Offshore support
vessels, navy and Coast Guard vessels, trawlers, barges, operating on
the coastal and international sea routes and Jack Up Oil Rigs on East
and West Coast.
2. Basis of preparation Accounting Convention
The Company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting Standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention
method as a "Going Concern Concept" and in accordance with Generally
Accepted Accounting Principles in India (Indian GAAP).
3. The Company follows the mercantile system of accounting and
recognizes Income and Expenditure on accrual basis except Medical
Reimbursements, Leave Travel Allowances, Insurance Claims, Ex-gratia and
Scrap Sale which are on cash basis. The accounting policies adopted in
the preparation of financial statements are consistent with those of
previous year.
4. Balances under the head current liabilities, debtors and loans &
advances are subject to confirmation. However, in the opinion of the
management, realizable value of current assets, loans & advances in the
ordinary course of business will not be less than the amount which is
stated in the Balance Sheet.
5. The Company has been granted sales tax exemption by the State
Government, Directorate of Industries and Mines, Government of Goa vide
its letter No. IND/Devi/I M/495/93/3543 dated 19.8.1997 for a period of
12 years w.e.f. 01.01.1996 on ship-repairs. However the Sales Tax
Officer has denied the exemption and has levied sale tax at the
applicable rates on the sales turnover. The Company has filed appeals
before the Commissioner of Commercial Taxes (Appeals), Panjim, against
sales tax liability of Rs. 837.91 lacs for the financial years from
1995-96 upto 2004-05. The Company's second appeal before the
Administrative Tribunal, Panjim in respect of FY 1995-96 has been
remanded back to the Asst. Commissioner of Commercial Taxes, Panjim to
decide the appeal with reasons. The appeals are sub-judice .
6. The Goa Value Added Tax Act, 2005 is applicable to assesses in the
State of Goa w.e.f 2005-06. Hence the Company had obtained registration
and filed its returns for the quarters ended 30.06.2010 and 30.09.2010.
The Company had sought the 75% benefit under the Goa Value Added Tax
Deferment-cum-Net Present Value Compulsory Payment Scheme, 2005 to
which it is entitled. However, the Asst. Commissioner of Commercial
Taxes has denied the benefit of the said scheme and passed assessment
order-cum-demand notice for financial years 2005-06, 2006-07 and
2007-08 for a sum of Rs. 515.78 lacs. The Company has filed appeals
before the Addl. Commissioner of Commercial Taxes, Goa and the appeals
are sub-judice.
7. Disclosures in accordance with Revised Accounting Standard-15 on
"Employee Benefits"
Define Contribution Plans
Defined Benefit Plan
The employees' gratuity fund scheme managed by PNB MetLife Insurance
Co. Pvt. Ltd. is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognised in the same manner as
gratuity.
8. Related Party Disclosures
(A) List of Related parties (as identified and certified by
the Management)
Holding Company ABG Shipyard Limited
Ultimate Holding Company ABG International Pvt. Ltd.
(Holding Company of
ABG Shipyard Limited)
Associate Companies ABG Resources Private Ltd.
Companies over which Directors 1. ABG Shipyard Limited
/relatives are able (Shri. Ashwani Kumar, to exercise
Significant Influence
Shri. Ashok Chitnis and
Shri. S. Muthuswamy
(Common Directors)
2. PFS Shipping (India) Private
Limited (Shri. A.K. Agarwal
(Common Directors)
Key Management Personnel Cdr. Subhash Kumar Mutreja,
Whole Time Director & Chief
Executive Officer
(Till 21.11.2014)
Shri. S. Muthuswamy,
Chief Financial Officer
9. Deferred Tax Asset in accordance with the Accounting Standard - 22
"Accounting for Taxes on Income" has not been recognised even after
availability of unabsorbed depreciation and carried forward losses
under the Income Tax Act as, in the opinion of the management,
sufficient future taxable income will not be available for this
purpose.
10. Contingent Liabilities
2014-15 2013-14
(a) Income Tax Liability:
Income Tax Liability for
financial year 2005-06 for
which the Company 15.95 5.67
has filed appeal before CIT
(Appeals)
(b) Guarantees given by Banks 623.39 492.32
(c) Bonds executed in favour of
Excise Authorities 15.00 15.00
(d) Sales Tax:
Sales Tax liability for the financial
years from 1995-96 to 2004-05 for 837.91 837.91
which the Company has filed appeal &
stay petition against the same.
(e) Value Added Tax (VAT):
Value Added Tax (VAT) liability
for the financial years from 2005-06 515.78 515.78
to 2007-08 for which the Company has
filed appeal & stay petition against
the same.
VAT Assessment for FY 2010-11 for
which the Company is yet to file appeal 39.84 39.84
(f) Service Tax:
Assessed Service Tax Liability for the
financial year 2001-02 to 2003-04. The 712.18 712.18
Central Excise & Service Tax Appellate
Tribunal (CESTAT) has allowed the
Company's appeal on the ground that it
does not render port services being
a registered factory. The Department
has filed an appeal in the High Court
of Bombay, Goa Bench at Panaji. The
Company has contested the appeal.
The appeal has been transferred to the
High court of Bombay at Mumbai to be
heard along with other similar appeals.
(g) Legal Cases pending against the
Company (net of provision) 3929.25 3,368.62
(h) Custom Appeal:
Custom Appeal / show cause notice
for capital goods/spare and build- 868.51 760.12
ing of JUB for which the Company
has filed an appeal.
11. Lease Obligations and Other Commitment
The Company has taken land and water on license from Mormugao Port
Trust (MPT) and license fees amounting to Rs. 623.39 lacs (Previous
year Rs. 467.47 lacs) has been debited to profit and loss account. The
future minimum payment is as under :
Not later than one year 623.39 623.39
Later than one year but less than five years 1,371.46 1,994.85
12. Networth of the Company has been fully eroded due to heavy losses.
During the current year, the operations of the Company were severally
affected due to factors such as non availability of working capital
finance resulting in material & labour issues.Owing to suboptimal level
of activities in the yard, the overhead of the company could not be
absorved resulting into higher losses Net Worth of the company is fully
eroded. However, Management is hopeful to get better results in next
financial year.
13. Dues to Micro, Small and Medium Enterprises
The Company has compiled this information based on the current
information in its possession. As at 31st March 2015, no supplier has
intimated the Company about its status as a Micro or Small Enterprise
or its registration with the appropriate authority under the Micro,
Small and Medium Enterprises Development Act, 2006.
14. Previous year figure has been rearranged / regrouped wherever
considered necessary
| 