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GTL
GTC INDUSTRIES LIMITED
CONSOLIDATED ACCOUNTS
SCHEDULE 'Q
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2005.
1)
SIGNIFICANT ACCOUNTING POLICIES
A
Basis of Consolidation
The Consolidated Financial Statements have been prepared in accordance with the Accounting Standard - 21 on "Consolidated
Financial Statements" issued by the Institute of Chartered Accountants of India.
B.
Principles of Consolidation
The Consolidated Financial Statements relate to GTC Industries Lid., (The Holding Company) and its subsidiaries. The name,
country of incorporation and proportion of ownership interest are as under :
Name of the Subsidiary Company
Country of Incorporation
Share Holding Percentage
N -
Golden Investment (Sikkim) Pvt. Limited
India
99.97 %
Western Express Industries Limited
(Formerly known as GTC Global Limited)
India
100.00 %
C.
Consolidation Procedures
For preparation of Consolidated Financial Statements, the financial statements of the Holding Company and its Subsidiaries have
peen combined on a line to line basis by adding together like items of assets, liabilities, income and expenses. Impact of Inter-
Company transactions has been eliminated on consolidation.
D.
The accounting policies followed by the holding Company and its subsidiaries are disclosed in their respective financial statements.
NOTES TO ACCOUNTS :
2)
Contingent liabilities not provided for in respect of :
(a)
Guarantees and counter guarantees given by the holding Company and its subsidiary Companies to Banks/Financial
Institutions/Others in respect of loans/guarantees to/for other companies (excluding in respect of Excise Duty referred to in
Note no.(c) below) : Rs. 14,02,73,000 plus interest thereon (Previous Year Rs. 14,02,73,000 plus interest thereon)
b )
Guarantees given by the Bankers on behalf of the holding Company [excluding in respect of Excise Duty referred to in Note
no.(c) below] : Rs.85,25,000 (Previous Year Rs. 1, 10,25,000).
c)
Disputed Excise claims/demands, excluding interest liability, if any, of Rs.77,35,42,751 (Previous Year Rs. 76,80,22,489)
against and/or relating to the holding Company and counter claims by the holding Company are pending or otherwise being
contested before the various Excise Authorities/Courts against which the holding Company has paid Rs. 1,11,85,712 (Previous
Year As. 1, 13, 10,712) (included in Loans & Advances) under protest. In the opinion of the Management, appropriate provisions
have been made in the books of account in respect of Excise claims/dema
e claims/demands that may become payable based on the legal
advice/present status of various matters. Further, various show cause notices/show cause-cum-demand notices have been
received from Excise Authorities by the holding Company and/or in relation to the holding Company, requiring to show cause
as to why certain amounts mentioned therein should not be recovered. Since these notices are in the nature of explanations
required, the holding Company does not consider them to constitute any liability. All these notices have been replied/attended
to and are pending at different sta
d)
Excluding the claims/demands against the holding Company and its subsidiaries not acknowledged as debts as mentioned
in (c) above :
Income Tax in respect of earlier years under dispute for which appeals/rectifications have been/are being preferred
and/or pending final assessments Rs.7,62,61,15,844 (Previous Year Rs. 7,71,76,24,607) including interest upto the date
of respective demands and penalty of Rs.4,87,45,18,455 (Previous Year Rs. 4,90,00,42,896).
(ii) Other Income Tax proceedings in respect of earlier years decided in the holding Company's favour by the Appellate
Authorities against which the Department is in further appeals (excluding interest liability, if any) : Rs.94,80,97,526
Previous Year Rs.94,80,97,526).
(e)
Pursuant to BIFR Order dated 16th December, 2002, the holding Company has made applications with Excise/income Tax
Department to waive the interest and penalties included in the demand as referred in para (c) and (d) above and those as
may crystallize during the scheme period.
The holding Company and its subsidiaries expects to succeed in all the pending disputes, as per the expert opinions obtained
by the management.
52
Source: https://www.industrydocuments.ucsf.edu/docs/gsgj0223

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