| 1 CONTINGENT LIABILITIES
Particulars As at As at
March 31, 2015 March 31, 2014
a) Outstanding bank guarantees 2,80,54,661 1,99,74,041
and letter of credits
b) Excise and sales tax matters:
i) Demand of Rs. 6,34,94,596 -- 6,34,94,596
(including pentalty of Rs. 3,17,47,298
received from Commissioner of Central
Excise, Panchkula on account of
misclassification of plain maize starch
against which an order has been passed
by CESTAT in favour of the Company.
ii) Entry tax levied by the Government 1,51,33,588 1,51,33,588
of Kerala on Special Kerosene Oil (SKO),
pending before Hon'ble Supreme Court
of India against which an amount of
Rs. 1,51,33,588 (March 31, 2014 :
Rs. 1,51,33,588) deposited under protest.
c) Income tax matters (note 39.3 (ii)) 13,46,91,876 14,00,52,056
2 Commitments
Estimated amounts of contracts remaining to be executed on capital
account (net of advances) Rs. 27, 21,758 (March 31, 2014: Rs. 2, 38,
80,226).
3 Litigation
i) Excise and Sales Tax matters
a) Demands aggregating to Rs. 10,73,69,734 for the year 2000 to 2004
relating to inputs used in manufacturing of excisable and as well as
exempted goods and cenvat credit of service tax, pending with Central
Excise and Service Tax Appellate Tribunal (CESTAT) were set aside and
remitted to the relevant authorities for a fresh decision and revision
in demand. Consequently amount deposited under protest amounting to Rs.
12, 41,379 have been considered good and recoverable and no provision
for the same has been considered necessary. Further, till the time
demands are received by the Company amounts of contingent liabilities,
if any, is not ascertainable.
b) Entry tax levied by the Government of Kerala on Special Kerosene Oil
(SKO), pending before Hon'ble Supreme Court of India against which an
amount of Rs. 1, 51, 33,588 (March 31, 2014: Rs. 1, 51, 33,588)
deposited under protest.
ii) Income Tax matters:
a) in respect of demand aggregating to Rs. 5,24,38,648 for the
assessment year 1997-98, 1999-2000, 2000-01 and 2001-02 raised by the
assessing officer in view of order of Hon'ble High Court of Kerala
disallowing certain expenses to verify the facts, an appeal was filed
with the CIT(Appeals).
b) in respect of demand aggregating to Rs. 5,61,53,668 for the
assessment year 1995-96 raised by the assessing offiªcer in view of
order of Hon'ble High Court of Kerala disallowing certain expenses to
verify the facts, an appeal was filed with the CIT(Appeals).
c) in respect of demand aggregating to Rs. 2,17,65,100 for the
assessment year 2010-11 raised by assessing officer in view of the
order of CIT (Appeals) dismissing the appeal filed by the Company with
respect to contribution made to gratuity fund, against which the
Company has filed an appeal with Income-tax Appellate Tribunal, which
is pending for disposal.
d) in respect of demand aggregating to Rs. 43,34,460 for the assessment
year 2007-08 raised by the Assessing Officer in view of the order of
ITAT to verify the facts with respect to disallowance of certain
expenditure, the Company has filed an appeal with CIT (Appeals).
Based on above, the management is of the opinion that the appeals will
be allowed in favour of the Company and hence no provision is
considered necessary.
4 SHOW CAUSE NOTICE ON CLASSIFICATION OF PRODUCTS
The Company on April 9, 2015 has received a show cause notice from
Directorate General of Central Excise Intelligence (DGCEI) dated March
31, 2015 on wrong classification of clay products for which the Company
is in the process of preparing a reply.
5 DELISTING OF SHARES
The shares of the Company have been delisted with effective from 4th
June, 2014 from the stock exchanges of India.
6 JOINT VENTURE AGREEMENT
The Company has entered into a joint venture agreement with MAC Group
Limited of Tanzania for prospecting of mines and evaluation of proposed
clay manufacturing facility in Tanzania (East Africa).
7 PREVIOUS YEAR FIGURES
Previous year figures have been re-grouped/reclassified, wherever
necessary to conform the current year classification.
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