For the For the Year Year Ended Ended Particulars March 31, March 2014 31,2013
Counter 10,000 10,000
Guarantee given to bankers for guarantees issued by the banker (Net of margins) Security 23,083,887 23,083,887
2. The company had, in an earlier year, won an arbitration award in respect of an amount aggregating to Rs. 23,083,887 recoverable from Hindustan Copper Limited (HCL) along with interest. The Additional District Judge, Khetri, Rajasthan has dismissed the appeal filed by HCL against the arbitration award and passed an order for decree. The HCL has preferred an appeal against the said order in the High Court of Judicature for Rajasthan at Jaipur bench, Jaipur. The Hon'ble High Court have admitted HCL's appeal and granted interim stay and directed HCL to deposit the award amount of Rs. 23,083,887. The Honorable Supreme Court on an appeal of HCL had modified the award and the company was permitted to withdraw the said amount by furnishing security to the satisfaction of the Court. The company has withdrawn the money by furnishing the said Security. The case is pending in the High Court of Rajasthan.
3. An arbitration award in respect of an amount aggregating to Rs. 68,820,333 with interest thereon, claimed from HCL is passed by the arbitral tribunal in favour of the company. Hindustan Copper Limited (HCL) has preferred an appeal under Section 34 of The Arbitration and Conciliation Act, 1996 against the award in the court of the District Judge, Jhunjhunu. The case is being heard by the court as per procedure.
4. Trade Receivable aggregating to Rs. 57,731,233 and other Receivable Rs. 81,920,827 are overdue for recovery. The management is hopeful of recovering the amount in due course of time and therefore provision there against is not considered necessary.
5. Advances of Rs. 7,218,468 (7,323,468) are considered doubtful of recovery. The management is hopeful of recovering the amount in due course of time and therefore provision there against is not considered necessary.
6. The company has given interest free loan aggregating to Rs. 17,964,928 as at March 31, 2014 to a borrower company. The borrower company had given a proposal to the Company to convert its borrowings into Equity. The company is still in the process of finalization/ acceptance of the proposal.
7. During the year, Long term gas supply agreement with the customer has expired. The company is negotiating to extend the same as the customer was not able to purchase minimum guaranteed quantity as per the agreement and their plant remained closed. The restoration of operation of the company dependent upon the extension of the supply agreement.
8. There are no dues of micro, small and medium enterprises. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis to information available with the company.
9. Related Party Disclosure: List of related parties
Relationship Name of the related party
Parties under common control Bhagawati International Limited
Bhagawati Combat Systems Limited Lavino Portfolios Private Limited Kamakshi Bricon Private Limited Flow Tech Hotels Private Limited
Key management personnel r. Rakesh S. Bhardwaj (Managing Director)
and their relatives
Mrs. Shachi Bhardwaj (Relative of Managing
Director)
Mr. Vivek Sharma (Whole Time Director)
10. Balance due to/ from various parties are subject to confirmations/ reconciliations thereof. Management does not consider any adjustment on completion of reconciliation/ confirmation.
11. Employee Benefits
The following table sets out the status of the gratuity plan and leave encashment and the amounts recognized in the Company's financial statements as at March 31, 2014.
12. Figures of previous years have been regrouped or rearranged wherever found necessary. As per our report of even date attached.