| 1. The term loans (including Foreign Currency Loan converted into Rupee
Loan) from Financial Institutions viz. Industrial Credit & Investment
Corporation of India Ltd., Industrial Development Bank of India &
Industrial Finance Corporation of India are secured by joint first
mortgage of all the immovable properties, both present and future ranking pari passu interse. Further, the loans are secured by first
charge by way of hypothecation of all moveable assets (save and except
book debts) interse subject to prior charges created/to be created in
favour of Company's Bankers on specified moveable assets, including
book debts, for securing borrowings for working capital requirements.
2. Working Capital Term Loans from banks are secured by hypothecation
of raw material, semi finished goods, stores & spares, bills receivable, book debts and other moveables of the company. Further, these are secured by a first charge on the fixed assets of the Company ranking pari passu with the Financial Institutions.
3. Cash Credit Loans from banks are secured by way of hypothecation of
all stocks of raw materials, semi finished goods and finished goods
including stores and spares, receivables and other moveable properties.
Further, these are secured by way of a second charge on the fixed
assets of the Company ranking pari passu with the Financial
Institutions.
4. Hire purchase liability is secured against specific assets financed.
5. Excise duty payable on unsold stock of finished goods not cleared
from the factory as at 30 June 1998 is estimated at Rs. 286,585
(previous period Rs. 655,394). Non provision for this liability will
not affect the net loss for the year.
6. The previous periods figures have been regrouped/reclassified,
wherever necessary to conform to the current year's classification.
7. (a) The current year's figures are not comparable with the previous
period because of certain adjustments made in the previous period due
to correction in accounting policies of earlier years, correction of
incorrect capitalisation policies of earlier years, non accounting of
warranty claims/line rejections made by some customers in earlier years
and certain unsupported expenses in the previous period.
(b) Current years figures are also not comparable with previous period
as the previous period was for 15 months.
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