Notes to Accounts of Gujarat Wedge Wire Screens Ltd.

Mar 31, 2014

1 COMPANY INFORMATION

1.1 Gujaart Wedge Wire Screens Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the Manufacture and sale of wedge wire screens. The Company s manufacturing facilities are at Halol, Baroda, Gujarat, India.

A. Terms & Rights attached to equity shares:

The Company has only one class of equity shares having face value of ^ 10 each. Each holder of Equity share is entitled to one vote per share.

In the event of Liquidation of the company, the holders of the equity shares will be entiltled to receive remainig assets of the company, after distribution of Preferential amount. The dis- tribution will be in proportion to the Number of equity shares held by Shareholders.

B. Terms & Rights attached to preference shares:The Company has only one class of prefer- ence shares having face value of ^ 10 each and are reedemable, non cumulative, non con- vertible.

C Reconciliation of number of shares outstanding at beginning and end of FY 2013-14

In the absence of relevant information from the suppliers, the Company has not determined the amount payable to Micro & Small Enterprises separately. Interest, if any payable to Micro & Small Enterprises under Micro, Small & Medium Enterprises Development Act, 2006 is not ascertainable.

1 Contingent Liability : Current Year - Rs.Nil, Previous Year Rs.4.31 lacs

2 The Gratuity fund with LIC is not sufficiently funded to covr the full accred liability in accordance with actuarial valuation. The difference between the accrued liability in respect of past service as determined by lie and the accumulated balance which should be provided for in the accounts of the company is Rs.9,19,771/-, out of which the company has provided and paid gratuity of Rs.5,00,000/- during the year, and hence, company has not made balance provision of Rs.4,19,771/- in the books of accounts, consequently, the profit of the company are overstated and current liabilities and provisions have been understated to that extent, non provision of liability is also in contravention of section 209(3) of the companies act, 1956 which required the books to be maintained on an accrual basis and violation of AS-15.

3 Related Party Disclosure

Related party Disclosures as required by AS-18,""Related Party Disclosures", are given below:

a. Key Management Personnel

Name Designation

Mr. G.S. Jha Managing Director

b. Relatives of key management personnel and Enterprises over which key management personnel and their relatives are able to exercise significant influence are as follows:

Name Relation

Mr. Prateek Jha Relative of key management personnel

4 Other Notes on Accounts

a Interest on calls in arrears is accounted for on cash basis in view of uncertainty of re- alizing the same.

b Deferred tax asset for the year is recognised only to the extent of available deferred tax liability. There is no virtual certainty supported by convincing evidence that future tax- able income will be available. Accordingly, no deferred tax asset has been created.

c Balances to the Debit and Credit of Customers, Suppliers and other parties are subject to confirmation.

d Previous year has been re-grouped, recast or rearranged wherever considered necessary to make them comparable with that of the current year.

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Mar 31, 2013

1 Contingent Liability :

a Company had filed an appeal against the Sales Tax Department with the Tribunal for various disallowances under the Sales Tax Act for A.Y. 1994-95 and 1995-96. As per honorable tribunal''s order both the cases are remanded back to learned appellate authority for fresh order If the appeal is decided against the Company, the Company will be liable to pay Rs. 4.31 lacs towards Sales Tax. (Previous year Rs. 4.31 lacs.)

b Consequently, the losses of the company are overstated and Current Liabilities and Provisions have been understated by Rs. 4.31 lacs.

2 Related Party Disclosure

Related party Disclosures as required by AS-18,"Related Party Disclosures", are given below:

Note : Figures in brackets represent previous year figures

3 Other Notes on Accounts

a Interest on calls in arrears is accounted for on cash basis in view of uncertainty of realizing the same.

b The Gratuity fund with LIC is not sufficiently funded to cover the full accrued liability in ac- accordance with actuarial valuation. The difference between the accrued liability in respect of past service as determined by LIC and the accumulated balance which should be provided for in the accounts of the company is Rs. 10,73,921/-, out of which the company has pro- vided and paid gratuity of Rs. 5,00,000/- during the year. And hence, company has not made balance provision of Rs. 5,73,921/- in the books of accounts. Consequently, the profit of the company are overstated and Current Liabilities and Provisions have been un- restated to that extent. Non provision of liability is also in contravention of Section 209(3) of The Companies Act, 1956 which required the books to be maintained on an accrual basis and violation of AS-15.

c Deferred tax asset for the year is recognized only to the extent of available deferred tax liability. There is no virtual certainty supported by convincing evidence that future taxable income will be available. Accordingly, no deferred tax asset has been created.

d Balances to the Debit and Credit of Customers, Suppliers and other parties are subject to confirmation.

e Previous year has been re-grouped, recast or rearranged wherever considered necessary to make them comparable with that of the current year.

4 COMPANY INFORMATION

4.1 Gujaart Wedge Wire Screens Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the Manufacture and sale of wedge wire screens. The Company''s manufacturing facilities are at Halol, Baroda, Gujarat, India.

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Mar 31, 2012

A. Terms & Rights attached to equity shares:

The Company has only one class of equity shares having face value of Rs. 10 each. Each holder of Equity share is entitled to one vote per share.

In the event of Liquidation of the company, the holders of the equity shares will be entiltled to recive remainig assets of the company, after distribution of Preferential amount. The distribution will be in proportion to the Number of equity shares held by Shareholders.

B. Terms & Rights attached to preference shares: The Company has only one class of prefer- ence shares having face value of Rs. 10 each and are reedemable, non cumulative, non convertible.

In the absence of relevant informanon from the suppliers, the Company has not determined the amount payable to Micro & Small Enterprises separately. Interest, if any payable to Micro & Small Enterprises under Micro, Small & Medium Enterprises Development Act, 2006 is not ascertainable.

1 Contingent Liability :

a Company had filed an appeal against the Sales Tax Department with the Tribunal for various disallowances under the Sales Tax Act for A.Y. 1994-95 and 1995-96. As per honorable tribunal's order both the cases are remanded back to learned appellate authority for fresh order If the appeal is decided against the Company, the Company will be liable to pay Rs. 4.31 lacs towards Sales Tax. (Previous yea Rs. 4.31 lacs.)

b Consequently, the losses of the company are understated and Current Liabilities and Provisions have been understated by Rs. 4.31 lacs.

2 Other Notes on Accounts

a Interest on calls in arrears is accounted for on cash basis in view of uncertainty of realizing the same.

b The Gratuity fund with LIC is not sufficiently funded to cover the full accrued liability in ac- cordance with actuarial valuation. The difference between the accrued liability in respect of past service as determined by LIC and the accumulated balance which should be provided for in the accounts of the company is Rs. 12,42,778/-, out of which the company has pro- vided and paid gratuity of ? 5,00,000/- during the year. And hence, company has not made balance provision of f 7,42,778/- in the books of accounts. Consequently, the loss of the company are understated and Current Liabilities and Provisions have been under- stated to that extent. Non provision of liability is also in contravention of Section 209(3) of The Companies Act, 1956 which required the books to be maintained on an accrual basis and violation of AS-15.

c Deferred tax asset for the year is recognised only to the extent of available deferred tax li- ability. There is no virtual certainty supported by convincing evidence that future taxable income will be available. Accordingly, no deferred tax asset has been created.

d Balances to the Debit and Credit of Customers, Suppliers and other parties are subject to confirmation.

e Financial statements have been prepared in accordance with revised schedule VI of the Company's Act. Accordingly figures of the previous year has been re-grouped, recast or rearranged wherever considered necessary to make them comparable with that of the cur- rent year.

3 COMPANY INFORMATION

3.1 Gujaart Wedge Wire Screens Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the Manufacture and sale of wedge wire screens. The Company's manufacturing facilities are at Halol, Baroda, Gujarat, India.

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Mar 31, 2010

1) Contingent Liability:

Company has filed an appeal against the Sales Tax Department with the Tribunal for various disallowances under the Sales Tax Act. The Company is advised that it has fair chances of success in appeal. If the appeal is decided against the Company, the Company will be liable to pay Rs 4.31 lacs towards Sales Tax. (Previous year Rs. 7.71 lacs.)

Companys appeal against Sales Tax Department with the Tribunal for various disallowances under the Sales Tax Act for A.Y. 1998-99 has been dismissed. Accordingly, company is liable to pay Rs. 3.40 lacs. The company is advised to file Second Appeal to Gujarat High Court, Ahmedabad for the said matter. The company has not provided for Rs. 3.40 lacs as an amount determined payable by the Tribunal. Consequently, the profits of the company are overstated and Current Liabilities and Provisions have been understated to that extent.

2) Interest on calls in arrears is accounted for on cash basis in view of uncertainty of realizing the same.

3) The Gratuity fund with LIC is not sufficiently funded to cover the full accrued liability in accordance with actuarial valuation. The difference between the accrued liability in respect of past service as determined by LIC and the accumulated balance which should be provided for in the accounts of the company is Rs. 15,67,503/-, out of which the company has provided liability of Rs. 3,00,000/- during the year. And hence, company has not made balance provision of Rs. 12,67,503/- in the books of accounts. Consequently, the profits of the company are overstated and Current Liabilities and Provisions have been understated to that extent. Non provision of liability is also in contravention of Section 209(3) of The Companies Act, 1956 which required the books to be maintained on an accrual basis and violation of AS-15.

4) In the absence of relevant information from the suppliers, the Company has not determined the amount payable to Micro & Small Enterprises separately. Interest, if any payable to Micro & Small Enterprises under Micro, Small & Medium Enterprises Development Act, 2006 is not ascertainable.

5) Balances to the Debit and Credit of Customers, Suppliers and other parties are subject to confirmation.

6) Deferred Tax

Deferred Tax Liabilities on taking into account the impact of timing difference between financial statements and estimated taxable income. The break-up of Deferred Tax Liability is as

7. Earnings in Foreign Currency : Nil

8. Expenditure in Foreign Currency : Nil (Previous year Rs. 3.02 Lacs)

9) Schedules 1 to 18 form an integral part of account and have been duly Authenticated