అకౌంట్స్ గమనికలుIAG Glass Company Ltd.

Mar 31, 2013

Note : 1

(a) Term loans from two scheduled banks against pari pasu charges on equitable mortgage of existing and proposed plant & machinery factory land, building and all other fixed assets of the company and hypothecation of all movable assets of the company. In addition, first charge on companys land, head office building situated at kolkata, and at Sodpur, West Bengal and at Bhurkunda, Jharkhand and personal guarantee of a director and three corporate guarantors.

(b) No instalment payment against principal amount and interest have been made during the year.

Note 2 Disclosure under Accounting Standard-15 (Revised) on "Employee Benefits"

A. Defined Contribution Plan

The Company''s Contribution to Provident Fund have been provided up to September"2011 but no Deposit has been made to the P.F Authority. Employees Contribution up to November''2011 has been provided and deposit of Rs 4,75,968/- for the period from April''2010 to Feb''2011 have been made.

B. Defined benefit Plan

The Company has a defined benefit gratuity plan. Payment of gratuity for every Employee have been vested on a Trust which follows Payment of Gratuity Act, 1972. The Company has revised the gratuity scheme with LICI effective from 1 st April, 2008 and opted a new scheme (Cash accumulation scheme). The policy has not been renewed and no provision for gratuity have been made.

Note 3 The company is required to replace the original bank guarantees amounting to Rs.267.70 lacs (issued by The Bank of Tokyo Mitsubishi Ltd. In favor of customs and Central Excise Authorities) by substitute Bank Guarantees from the Company''s own banker within 27.02.2011 but the same has not yet been done.

Note 4 Foreign Currency Transaction

No foreign currency transaction have been effected during the year.

Note 5 Contingent Liabilities not provided for in respect of

(a) Disputes of excise duty leviable on the special packing and forwarding charges for earlier years, which has been remanded back by CEGAT, Delhi for further examination of records, setting aside the earlier order of the Central Excise Department (Amount un-ascertainable).

(b) Income Tax disputes on exchange fluctuation losses considered on foreign loans for the A. Y. 1989-90 to 1992-93 before Hon''ble Kolkata High Court have been decided in favour of the company and have been remanded to department for ascertaining the relief.

(c) The Company has filed an appeal before Employees Provident Fund Appellate Tribunal, New Delhi against the demand for penal damage of Rs. 214.68 lakhs (net of deposit of Rs.25 lakhs) vide order dated 30.06.2008 issued by Regional Provident Commissioner, Jharkhand.

(d) Appeal file before WBST Tribunal against Sales Tax demand of Rs.26.01 lakhs have been remanded to department for examination.

(e) Several money Suits are pending before different courts of law for recovery of dues of customers, suppliers and employees etc.

Note 6 Amount outstanding to small scale, micro and medium scale business entities are not ascertainable and therefore can not be quantified in the absence of proper identification of parties fall in under the above categories.

Note 7 Balance confirmation for advances, debtors and deposits have not been received. However they are considered fully recoverable except as provided for in the accounts.

Note 8 Through out the year factory was closed. Production and other activities of factory were suspended. Both the furnaces were cooled down.

Note 9 Figures of the previous year have been regrouped/rearranged to conform with Revised Schedule VI of the Company''s Act, 1956.

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Mar 31, 2010

1. (a) Advances (Recoverable) include Rs.0.42 lakhs (previous year Rs. 1.50 lakhs) due from a Director. Maximum balance outstanding at any time during the year. Rs. 0.42 lakhs (previous year Rs. 1.50 lakhs). (b) Estimated amount of contracts remaining to be executed on capital account (net of advance of Rs. 50.30 lakhs) and not provided for Rs. 85.30 Lakhs. (Previous year Rs. 326.07 Lakhs).

2. Closing Stock of Finished goods includes excise duty of Rs.2.74 lakhs on finished goods at Bhurkunda factory (Previous Year Rs. 36.26 lakhs) to comply with Accounting Standard - 2 of the Institute of Chartered Accountants of India. However such inclusion has no impact on the financial result of the Company.

3. Disclosure under Accounting Standard-15 (Revised) on "Employee Benefits"

A. Defined Contribution Plan Contribution to Provident Fund

B. Defined Benefit Plan

(i) The Company has a defined benefit gratuity plan. Payment of gratuity for every employee have been vested on a Trust which follows Payment of Gratuity Act,1972. The Company has revised the gratuity Scheme with L.I.C.I effective from 1st April,2008 and opted a new scheme "Cash Accumulation Scheme"

(ii) No Liability on Leave encashment on retirement & bonus have been provided for in the accounts as the same is treated on cash basis.

(iii) Medical benefit of the employees not covered under ESI scheme, are reimbursed and accounted for on cash basis.

4. Revaluation Reserve to the extent of Rs. 836.38 Lakhs was debited against accumulated losses of earlier years and out of this, Rs. 111.53 lakhs has been reinstated out of profits of current year.

5. In terms of an agreement dated 6th February 2009 entered into between Asahi Glass Company Limited, Tokyo, Japan and the company, the unsecured loan liability of Rs. 1465.68 Lakhs (appearing in the books of the company as on 31.03.2008) have been restricted to Rs.200 lakhs is payable within 30.11.2009 and subsequently extended upto 31.08.2010 vide addendum of the agreement dated 08.03.2010.

The company is also required to replace the original bank guarantees amounting to Rs. 267.70 lakhs (Issued by The Bank of Tokyo Mitsubishi Ltd. in favour of Customs and Central Excise Authorities) by substitute Bank Guarantees from the companys own banker within 31.08.2010.

6. Other Receipts include Profit on Share Trading, Rs. 1563.64 Lakhs, Profit on Commodity Trading Rs.349.99 Lakhs.Commission Rs. 61.29 lakhs and Others Rs. 10.91 Lakhs.

7. CONTINGENT LIABILITIES not provided for in respect of :-

a) Disputes of excise duty leviable on the Special Packing and Forwarding charges, for earlier years, which has been remanded back by CEGAT, Delhi for further examination of records, setting aside the earlier order of the Central Excise Department (amount unascertainable).

b) Income Tax disputes on exchange fluctuation losses considered on foreign currency loans for the A.Y 1989-90 to 1992-93 before Honble Calcutta High Court have been decided in favour of the company and have been remanded to department for asertaining the relief.

c) The Company has filed an appeal before Employees Provident Fund Appellate Tribunal, New Delhi against the demand for Penal damage of Rs.214.68 lakhs (Net of Deposit of Rs.25 lakhs) vide order dated 30.06.2008 issued by Regional Provident Fund Commissioner -II, Ranchi, Jharkhand.

d) Appeal filed before WBST Tribunal against Sales Tax demand of Rs.26.01 lakhs have been remanded to department for examination.

8. Amount outstanding to small scale,micro and medium scale business entities are not ascertainable and therefore can not be quantified in the absence of proper identification of parties falling under the above categories.

9. Balance confirmation for advances and debts have not been received. However they are considered fully recoverable except as provided for in the accounts.

10. The Company has revised the gratuity Scheme effective from 1st April,2008 and has opted a new scheme " Cash Accumulation System" with LICI.

11. (a) Furnace -1 has been cooled down on 25.11.09 and remain out of production for the period from 25.11.09 to 31.03.10 for revamping and replacement of outdated and obsolete machinery and accordingly term loan processing charges of Rs.9.78 lacs together with project consultancy fees of Rs. 21 lacs have been Capitalised.

(b) The operation of Furnace-2 was suspended for the period from 01.04.09 to 27.8.09 for expansion and modernisation and had been lit up on 28.8.09. The same was again stopped from 25.11.09 to 31.03.2010. Further the expenses incurred during the above stoppage were capitalised as per under noted details.