B. Contingent Liabilities:
Disputed demands
A. Under the Income Tax Act, l96l: Rs.l7.60 Lakhs (relating to Assessment Year 20l3-l4) and Rs.23l.08 Lakhs (relating to Assessment Year 20l4-l5) in respect of additions made in assessment under section l43(3) of the Income Tax Act, l96l and disputed in appellate proceedings. The appeals are pending before the Commissioner of Income Tax (Appeals) 7 Pune. The company has deposited an amount of Rs.2.64 Lakhs and Rs.34.66 Lakhs respectively against the said demands and obtained stay of collection of the balance disputed demand till disposal of the appeal. The above referred tax payments are grouped under the head "Short term loans and advances"
B. Service Tax: Rs.l66.l6 Lakhs. The matter is pending in appeal before the First Appellate Authority, viz., Commissioner of Central Excise, Customs and Service Tax (Appeals). An amount of Rs.l2.47 Lakhs has been deposited against this disputed demand. This amount is grouped under the head "Short term loans and advances"
C. Amounts recoverable from employees
The company has an arrangement with the supplier of coal for supply of coal in specified consignments on a periodic basis. Few consignments aggregating to the value of Rs.3l.7l lacs have been misappropriated, while in transit, by 2 employees of the company during the year ended March 3l, 20l5. The services of the said employees have been terminated in that year itself and legal action against initiated on these employees including action for the recovery of the above mentioned amounts. Pending recovery the amounts are shown under short term advances.
D. Segment Reporting:
The company operates in two segments viz., (a) Amines & Specialty Chemicals and (b) Hotel segment.
E. Expenditure on Corporate Social Responsibility (CSR):
The company has incurred an expenditure of Rs.I34.96 Lakhs on Corporate Social Responsibility initiatives in accordance with the provisions of Section I35 of the Companies Act, 20I3. The details of the projects on which the amounts are expended by the company on account of Corporate Social Responsibility are given in Note.26.
F. Related Party transactions:
e. Restriction on disbursement of Dividend
As part of the general terms & conditions in respect of borrowings from Banks, prior permission should be taken from the lending Banks before distribution of dividend. Similarly, the term lenders have imposed a condition that, no dividend shall be declared in the event of default in the scheduled repayment of installment.
f. Particulars of each shareholder holding more than 5% of share capital
C. Contingent Liabilities:
Income Tax Act, 1961. For the assessment year 2013-14 vide Order under section 143(3) dated 30.03.2016, on account of certain additions to the returned income the assessment has resulted in a demand of Rs, 17.60 lacs. The company has since preferred an appeal before the First Appellate Authority, viz., the Commissioner of Income Tax (Appeals) Pune. The matter is pending hearing. The company has since deposited an amount of 15% of the tax demand pending disposal of appeal. The said tax payment is treated as an advance in the books of the company. [Previous Year: Penalty u/s 271(l)(c) of the Income Tax Act, 1961 for the Assessment Year 2009-10 Rs, 37.33 lacs. The appeal in this case has been decided in favor of the company by the Commissioner of Income Tax (Appeals) Pune.]
D. Amounts recoverable from employees
The company has an arrangement with the supplier of coal for supply of coal in specified consignments on a periodic basis. Few consignments aggregating to the value of Rs, 31.71 lacs have been misappropriated, while in transit, by 2 employees of the company during the year ended March 31, 2015. The services of the said employees have been terminated in that year itself and legal action against initiated on these employees including action for the recovery of the above mentioned amounts. Pending recovery the amounts are shown under short term advances.
E. The company has incurred an expenditure of Rs, 102.77 lacs on Corporate Social Responsibility initiatives in accordance with the provisions of Section 135 of the Companies Act, 2013. This includes an amount of Rs, 1.13 lacs being short fall from the amounts due to be spent in the year 2014-15. The details of the projects on which the amounts are expended by the company on account of Corporate Social Responsibility are given in Note. 26.
e. Restriction on disbursement of Dividend
As part of the general terms & conditions in respect of borrowings from Banks, prior permission should be taken from the lending Banks before distribution of dividend. Similarly, the term lenders have imposed a condition that, no dividend shall be declared in the event of default in the scheduled repayment of installment.
‘Aggregate of amounts included in long term liability and installments of term loan payable within one year (Other Current Liabilities-Note 9)
The borrowings towards working capital limits sanctioned by banks including Working Capital Demand Loans ‘are secured by pari-passu first charge by way of hypothecation of stocks and book debts and second charge on all fixed assets of the company, both present and future.
The Directors of the company viz., Mr. A. Prathap Reddy, Mr. N. Rajeshwar Reddy, Mr. D. Ram Reddy and Mr. G. Hemanth Reddy have provided personal guarantees towards the fund based and non-fund based working capital limits availed by the company from the above lenders. The aggregate amount of such guarantees provided are asunder;
1. Contingent Liabilities:
Penalty proceedings U/s.271(1)(c) of the Income Tax Act, 1961 were
initiated on the company In respect of Assessment Years 2007-08,
2008-09 and 2009-10. The disallowances / additions in the assessments
of these years have been deleted by the Hon''ble Income Tax Appellate
Tribunal, Pune. The penalty levied in respect of these assessments
would therefore stand nullified. The company preferred appeal against
the penalty in all the three years and Appellate Orders for the
Assessment Years 2007-08 and 2008-09 have been passed in favor of the
company duly dropping the penalty. The appeal against the penalty for
the Assessment Year 2009-10 is yet to be heard. Consequent to order of
the Hon''ble Income Tax Appellate Tribunal in favour of the company
deleting the addition the company has been advised that this penalty
would stand cancel
2. Amounts recoverable from employees
The company has an arrangement with the supplier of coal for supply of
coal in specified consignments on a periodic basis. Few consignments
aggregating to the value of Rs.31.71 lacs have been misappropriated,
while in transit, by 2 employees of the company. The services of the
said employees have since terminated and the company has initiated
legal action against these employees including action for the recovery
of the above mentioned amounts from them. Pending recovery the amounts
are shown under short term advances.
3. The company computed the expenditure to be incurred on Corporate
Social Responsibility at Rs. 96.22 lacs in accordance with the
provisions of Section 135 of the Companies Act, 2013. Out of the said
total commitment, an amount of Rs. 1.13 lacs is spent in April, 2015.
The details of the projects on which the amounts are expended by the
company on account of Corporate Social Responsibility are given in
Note.27.
4. Previous year''s figures are regrouped and reclassified wherever
considered necessary.
5. Restriction on disbursement of Dividend
As part of the general terms & conditions in respect of borrowings from
Banks, prior permission should be taken from the lending Banks before
distribution of dividend. Similarly, the term lenders have imposed a
condition that, no dividend shall be declared in the event of default
in the scheduled repayment of instalment.
6. During the five years immediately preceding the financial year
2014-15, the company has not issued any shares without payment being
received in cash, nor issued any bonus shares and the company did not
buy back any shares.
