| NOTE 1 - CONTINGENT LIABILITIES
1. The Textile Cess Committee has raised a demand of Rs.45.28 Lacs
against the company. The Company has filed various appeal against it
before Hon'ble TC Appellate Tribunal, Mumbai. The Company has not
received any communication from the tribunal and as per our information
and belief the matter is still pending with TC Cess Appellant Tribunal.
Mumbai and consequently, liability, if any arises will be accounted for
as and when the case will be decided. The management being confident of
winning the case, no provision of the above has been made.
2. The Company has deposited Rs. 82246/- under protest towards demand
confirmed by the order of Commissioner of Excise in Case No
IV(55)4/45/BHL/R-IV/04/6537 Dated 13.03.2004. Company has filled the
appeal in CESTAT.
3. Hon'ble CESTAT Vide it, a Final Order No 493-495/08 CEx. Dated 13.07
2006 reduced the penalty and accordingly we have filed this refund of
excess penalty deposited by us. The department has sanctioned a sum of
Rs 114093 on 27.02.2009 towards excess penalty deposited by us. The
department pointed an appeal with the Rajasthan High Court and matter
is pending with High Court.
4. Hon'ble Rajasthan High Court in Central Excise Appeal No. 34/2007 *
Union of India Vs. A.K. Spintex Ltd. & Are Has decided the case in our
favor The Department has filed SLP with Hon'ble Supreme Court of Indie
vide SLP (Civil) No. 25055 of 2009
5 During the year, the company has settled the entry tax liability with
the government under Amnesty scheme ol Rajasthan government for period
up to 31.03,2012, mainly to take advantage of waiver in interest,
penalties , undue litigation and to buy peace. Despite. accepting the
scheme, true management continues to take view that entry tax is not
livable on the company for the period also and has filed stay
petition with Hon. Rajasthan High court for FY 2012-13. As the
managementÝ|transferred-the liability of entry tax law itself,
hence, no provision of the entry tax has been made in books of/accounts
for Fy. 20.12-2015, as it is of contingent nature in management
opinion. The entry tax liability is accounted oh actual basis at the
time of payment.
NOTE 2- DUE TO MICRO, SMALL & MEDIUM ENTERPRISES
The government of India has formulated an act namely. "The Micro, Small
& Medium Enterprises Development Act, 2006 which comes into force with
effect from October, 2 2006 As per the act, the company is required to
identify the Micro and Small Enterprises & pay them interest on
overdue beyond the specified period respective of the terms agreed with
the companies. The company has initiated the process of Identification
of such suppliers. In view of number of supplier & non receipt of
critical inputs & response from several such potential parties for the
liability of interest cannot be reliable estimate nor can require
disclosure be made accounting in this regard will be carried out after
process is completed and reliable estimate can be made. Since the
company is regular in making payments to all suppliers the management
does not anticipate any significant interest liability.
NOTE 3 - PREVIOUS YEARS FIGURES
In figures for previous years have been re-grouped and re-classified
wherever necessary to make them comparable with the current years
figure.
NOTE 4 - SEGMENT REPORTING
As the companies significant business activity falls within a single
primary business segment viz. Processing of fabrics the disclosure
requirement of accounting standereds-17 segment reporting issued by
Institute of chartered accountants of India is not applicable.
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