| 1. Corporate Information
The company has been incorporated on 7th day of April, 1995 under the
Registrar of companies Bihar bearing Company Identification Number
'U27107BR1995PLC006446'
Registered Address of the company is:-
406, N.P. Centre,
New Dak Bunglow Road,
Patna- 800001
Works at:-
NH - 30, Near Bihta Chowk
Bihta, Patna
Company is engaged in production of Mild Steel Ingot.
2. No interest is chargeable to Loans and advances made to Director,
person / concern in which directors are interested and others since
beginning. No provision is made for bad and doubtful advances. Advances
made to person / concerns in which directors are interested include Rs.
178.95 lacs.
3. There is an unadjusted debit amout of MODVAT of Rs. 6.31 lacs
pending since 1997and unadjusted amount of Sales tax 0.54 lacs since
2007-08 and both are kept as balances with revenue Authorities, no
provision is made in this regard.
4. Thre are matters relating to Search and Seizure that are also not
settled. Cash of Rs. 4.001acs and some, bank accounts having total
deposit of Rs. 19.23 lacs are seized, included in Advance Income Tax
and TDS remains unadjusted and no provision has been made in this
regard.
5. Search and seizure and regular scrutiny assessment cases are
pending with Income Tax Authority since long and pending cases of
various authority it is not certain as regard carry forward of losses,
in th light of uncertainty, no provision of deferred tax assets is made
since long.
6 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
Contingent Liabilities
Claim against the company not acknowledged
Excise Duty 859.07 859.07
Electricity Department 8,283.79 8,283.79
Income Tax Department 154,72 154,72
Total Contingent Liability of the company 9,297.58 9,297.58
i. Related To Excise Duty
a. Liabilities not provided in respect of Excise Duty for earlier
years. Earlier Excise Duty was payable on compounding on the basis
of capacity fixed by Excise Dept, where as the company had paid
excise duty of actual dispatches. Claims of Excise dept are pending
for Rs.265.47 lacs and equal amount of penalty and interest is also
not provided for since 11.09.2001. As per explanation given by the
management the matter is stayed with Commissioner, Central excise
Patna. Compounding system subsequently been changed and now duty is
payable on clearance basis.
b. The Excise Department had demanded Excise Duty of Rs. 162.60 lacs
and penalty of Rs. 165.53 lacs and interest thereon on 28.02.2005
alleging clandestine removal of materials against which the company
has filed petition to Hon'ble CESTAT & the above order was set
aside by Honrable CESTAT asking for pre-deposit of Rs. 20 lacs.
The amount of Rs. 20.00 lacs has been kept in Security Deposit & no
provision is made in this regard and the matter is pending for final
order with Honrable CESTAT.
ii. Related to Electricity Department
No Liability has been created for the following cases related to
Electricity department
a. Electricity Board had raised penal Electricity Bills of Rs.957.47
lacs electricity bill and penalty and interest there on, during the
period of closure of the unit due to power cut, against which the
company had gone to Hon'ble High Court and interim order was
received on 19.05.2000 to pay Rs. 45.00 lac and restoration of
Power connection. The Company had paid Rs. 45.00 lacs during
2000-01 and the same is taken as security deposit. No provision is
made for penal electricity bills and the matter is pending for
final order with High court.
b. Cabinet Vigilance department of Electricity board had raised a
demand of Rs. 7326.32 lacs alleging excess capacity of furnace as
shown in the records of electricity board for the period 2002-05.
Company had admitted a case in Patna High court and stay granted by
the court.
iii. Related to Income Tax Department
Liability for Income Tax could not be ascertained as the assessment
order for the respective year is pending
a. In respect of Assessment year 1997-98 orders for demand for Rs.
147.67 lacs has been passed and demand notice in respect of above
for Rs. 154.72 lacs has been received on 05.02.2008. the case is
pending to Commissioner Income Tax Appeal.
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