| (Figures in Rs.)
1. Contingent liabilities not provided for:
For the For the
Year Year
Ended Ended
Particulars March 31, March
2014 31,2013
Counter 10,000 10,000
Guarantee given
to bankers for
guarantees
issued by the
banker (Net of
margins)
Security 23,083,887 23,083,887
provided against
amount withdrawn from
the Hon'ble High
Court.(refer note 26)
2. The company had, in an earlier year, won an arbitration award in
respect of an amount aggregating to Rs. 23,083,887 recoverable from
Hindustan Copper Limited (HCL) along with interest. The Additional
District Judge, Khetri, Rajasthan has dismissed the appeal filed by HCL
against the arbitration award and passed an order for decree. The HCL
has preferred an appeal against the said order in the High Court of
Judicature for Rajasthan at Jaipur bench, Jaipur. The Hon'ble High
Court have admitted HCL's appeal and granted interim stay and directed
HCL to deposit the award amount of Rs. 23,083,887. The Honorable Supreme
Court on an appeal of HCL had modified the award and the company was
permitted to withdraw the said amount by furnishing security to the
satisfaction of the Court. The company has withdrawn the money by
furnishing the said Security. The case is pending in the High Court of
Rajasthan.
3. An arbitration award in respect of an amount aggregating to Rs.
68,820,333 with interest thereon, claimed from HCL is passed by the
arbitral tribunal in favour of the company. Hindustan Copper Limited
(HCL) has preferred an appeal under Section 34 of The Arbitration and
Conciliation Act, 1996 against the award in the court of the District
Judge, Jhunjhunu. The case is being heard by the court as per
procedure.
4. Trade Receivable aggregating to Rs. 57,731,233 and other Receivable Rs.
81,920,827 are overdue for recovery. The management is hopeful of
recovering the amount in due course of time and therefore provision
there against is not considered necessary.
5. Advances of Rs. 7,218,468 (7,323,468) are considered doubtful of
recovery. The management is hopeful of recovering the amount in due
course of time and therefore provision there against is not considered
necessary.
6. The company has given interest free loan aggregating to Rs.
17,964,928 as at March 31, 2014 to a borrower company. The borrower
company had given a proposal to the Company to convert its borrowings
into Equity. The company is still in the process of finalization/
acceptance of the proposal.
7. During the year, Long term gas supply agreement with the customer
has expired. The company is negotiating to extend the same as the
customer was not able to purchase minimum guaranteed quantity as per
the agreement and their plant remained closed. The restoration of
operation of the company dependent upon the extension of the supply
agreement.
8. There are no dues of micro, small and medium enterprises. The
information required to be disclosed under the Micro, Small and Medium
Enterprises Development Act, 2006 has been determined to the extent
such parties have been identified on the basis to information available
with the company.
9. Related Party Disclosure: List of related parties
Relationship Name of the related party
Parties under common control Bhagawati International Limited
Bhagawati Combat Systems Limited Lavino Portfolios Private Limited
Kamakshi Bricon Private Limited Flow Tech Hotels Private Limited
Key management personnel r. Rakesh S. Bhardwaj (Managing Director)
and their relatives
Mrs. Shachi Bhardwaj (Relative of Managing
Director)
Mr. Vivek Sharma (Whole Time Director)
10. Balance due to/ from various parties are subject to confirmations/
reconciliations thereof. Management does not consider any adjustment
on completion of reconciliation/ confirmation.
11. Employee Benefits
The following table sets out the status of the gratuity plan and leave
encashment and the amounts recognized in the Company's financial
statements as at March 31, 2014.
12. Figures of previous years have been regrouped or rearranged
wherever found necessary. As per our report of even date attached.
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