Citizens' Issues
I-T Dept sets up 24x7 monitoring cell in Mumbai for election

The 24x7 monitoring cell will help to check use of black money during Assembly elections. In addition, the Income Tax department has advised people to carry ID or PAN card, while carrying large amounts of cash or bullion


The Income Tax (I-T) Department in Mumbai has set up a round-the-clock control room and complaint monitoring cell to check use of black money during forthcoming assembly elections.


Following instructions from the Election Commission, the I-T Department has floated a helpline number for general public to alert it about any suspicious movement of large sums of cash or bullion in Mumbai. The telephone numbers of the Control Room are 022-22635511, 022-22627275 and 1800-022-0115 (Toll Free).


In cases, where I-T authorities receive any information about movement of large amount of cash or bullion, they would investigate the cases and shall seize the cash or bullion if no satisfactory explanation is furnished.


The IT Department has advised the public to carry necessary documentary evidence, including Identity Card and PAN card, while carrying large amounts of cash or bullion in order to avoid unnecessary inconvenience.


Gautam Khaitan arrested in VVIP chopper scam

Khaitan is the first to be arrested by the ED in the Rs3,600-crore AgustaWestland chopper scam


The Enforcement Directorate (ED) on Tuesday arrested Gautam Khaitan in the Rs3,600-crore AgustaWestland chopper scam.


The agency, which is trying to track the alleged kickbacks of Rs360 crore from the deal, made its first arrest in the case.


On Monday, the ED had searched two properties of Khaitan in the national capital.


"Khaitan has been arrested under the provisions of the Prevention of Money Laundering Act (PMLA). He is required for further detailed interrogation in the case," ED sources said.


The agency, after searches, had seized jewellery worth Rs1 crore and impounded some "important" financial documents from his premises.


This is the first big action by the ED in this case after it registered a criminal FIR in July this year against Khaitan, former IAF chief SP Tyagi and 19 others to probe the alleged kickbacks.


Khaitan was on the board of Chandigarh-based Aeromatrix, which is allegedly a front company for the financial dealings of the chopper deal.


According to CBI and other agencies, they had detected that funds for the particular deal were allegedly routed through this firm and few others.


A reference to Khaitan was also reportedly made in the Italian prosecutor's report filed in a court in Italy.


Khiatan, however, has refuted all the allegations made against him.


He earlier been quizzed by the CBI in this case. The ED had registered a case in this deal under PMLA, taking cognisance of a more-than-a-year-old CBI FIR.


Bilcare’s funny accounting figures for FY2014

During FY2014, Bilcare added Rs685 crore as fixed assets under tool & equipment, which is about 20% of the company's total assets, even as its sales tumbled 45% and the company reported a loss of  Rs121.5 crore


Pune-based Bilcare Ltd, which once counted ace investor and trader Rakesh Jhunjhunwala as an investor, reported a net loss of Rs121.5 crore for FY2014 compared with a net profit of Rs6.57 crore previous year. However, despite suffering heavy losses, mainly on 45% fall in sales at Rs401.4 crore, the company has added a massive Rs685.4 crore under tool and equipment in fixed assets. Incidentally, this amount is about 20% of its total fixed assets.

Source: Bilcare Annual Report for FY2013-14

In addition, during FY13, Bilcare added Rs810 crore to loans and increased capital and work in progress (WIP), accordingly. The WIP was shifted to fixed assets in FY2014. This raises serious question on the book keeping at Bilcare, especially, when the company had the same 'technology' in 2010, then what value addition it had done in FY2013-14?

In an email reply, the packaging solutions provider said, "The nomenclature ‘Tools & Equipment' has been used to describe the investment in software and related hardware integration for developing of technological solutions/ development projects, including few pilot projects for Indian Government and PSUs. Further, these ongoing investments on technological solution and projects have now been capitalised in the current year. These project investments were made in last 2-3 years keeping in mind that each one would result into significant revenue when commercialised and fully implemented. This in turn will act as key growth drivers for the Company and therefore, such investments were continued even during difficult times."

Talking about the increase in loans, the company said, "During FY13 Bilcare showed Rs625 crore as increase in loans, which is basically part of overall borrowings done in two and half years for the Group and towards business development. These borrowings resulted in business growth globally for Bilcare Group."

However, this raises further questions on Bilcare's accounting practice. Especially, software and such intangible assets are generally not valued and the valuation is given by the management - hence it's much easier for them to fudge. So the question is was this 'technology' developed by Bilcare through in-house research or bought out and how the valuation was arrived at?

Bilcare said, it was working on 17 projects over the past 2-3 years. This includes, 1) Non clonable ID for security forces, 2) securitisation of election voting machines (EVMs), 3) medical product securitisation (in partnership with CSIR) under New Millennium Indian technology Leadership initiative (NMITLI), 4) National Jute Board on secured Identification and Authentication of Jute Bales for Department of Supplies and Disposables (DGS&D), 5) Securitisation of fertiliser supply chain control and direct to Farmer subsidy Management System for department of Fertiliser, Ministry of Chemical and Fertiliser, 6) Security solution for counterfeit currency- development of demo 7) Development of target public distribution management system (TPDMS), 8)       Securitisation of documents - degree, mark sheet etc (HRD ministry- CBSC and State Board), 9) Secured liquor revenue control management systems, 10) Wine securitisation project 11) Petroleum products securitisation project, 12) FMCG products securitisation project 13) Mobile application customisation product, 14) Authenticate application system customisation product, 15) Point of sale development of nonClonable readers 16) Development of consumer friendly nonClonable readers and 17) Development of nCiD chip application systems- (Applicator).

Bilcare talks about 17 technological solutions and all were 'work in progress' over the past 2-3 years. And what a coincidence, it declared all these as commercially viable at the same time!  

During 2010, Dr Praful Naik, chief scientific officer, Bilcare, told Moneylife that his company's product uses a non-clonable technology, which covers identification, authentication and track-and-trace from origin to point of sale with usage in myriad sectors like pharmaceuticals, security services and agrochemicals.

In the same interview, Dr Naik, conceded that it may not be a cake-walk to sell the technology to the pharma industry. The cost of each digitised image stored with a bar code is Rs1.50 and pharma companies were not too keen on spending such amounts of money on this technology. He also told us that time about clients, like a Europe-based museum, a US-based wine producer and even security department of one Asian country, which had shown interest in Bilcare's non-clonable technology.

However, the company result for FY2014 does not even reflect any of this. During the 12 months that ended in March 2014, Bilcare's sales fell 44.83% to Rs401.35 crore as against Rs727.43 crore during the previous year ended March 2013. So, where is the growth for which the company has shown huge expenditure for tools and equipment?

In addition, according to the auditor's report (page31), Bilcare has defaulted in repayment of dues to financial institutions and banks. The delay had been of six to 17 months (as on 31st March 2014) with the principal loan amount of Rs490.2 crore and interest accumulated of Rs86.33 crore.   
In FY13, Bilcare had shown Rs785.1 crore as capital work in progress (WIP). This WIP was shifted to fixed assets in FY14. Due to this, Bilcare's tangible assets increased to Rs1,228.2 crore in FY14 from Rs600.9 crore a year ago period. This, however, raises question if the packaging solutions provider shifted personal loans of promoters to its balance sheet with similar book entry on the fixed asset side?

Source: Bilcare Annual Report for FY2013-14

Bilcare, however, denied this. "No personal Loan of the promoter is reflected in the Bilcare balance sheet," it said in the email reply.

There are too many questions about Bilcare: huge loans, large losses and now dubious additions to fixed assets.




3 years ago

Is it a new SATYAM in making?

R Balakrishnan

3 years ago

So many ways to take the cash out.

Vaibhav Dhoka

3 years ago

Bilcare has defaulted on FD too.CLB Mumbai has allowed them to increse duration by two years.

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