| Secured Loans:
SECURITY:
(1) 1,50,000 18% Non Convertible Debentures of Rs. 100/- each (Rs. 80/-
paid up) privately placed with Canbank Mutual Funds, redeemable at a
premium of 5% at the end of 7th, 8th & 9th year from the date of
allotment. To be secured by (first) legal equitable mortgage on the
present and future fixed assets of the company ranking pari passu with
the charges created/to be created in favour of the other
institutions/banks.
(2) Term Loan from Financial Institutions and Bank are secured by first
charge by way of pari passu mortgage by deposit of title deeds on
Companys immovable properties, both present and future situated at
Veer Durgadas Rathore industrial estate, Village Antervelia, Meghnagar,
Dist. Jhabua (M. P.) and Vatva, Ahmedabad in the State of Gujarat, a
charge by way of hypothecation of Companys movable properties (save
and except book debts) both present and future, subject to prior
charges in favour of Companys bankers for securing working capital
borrowings. These loans are also secured by the personal guarantee of
Chairman of the Company.
(3) Working Capital loans from Bank are secured by first charge by way
of hypothecation in favour of the Bank of all the borrowers stock of
raw materials, semi finished goods and finished goods, consumable
stores, book debts including subsidy receivable and hypothecation of
movable fixed assets of the Company, both present and future. These
loans are also secured by the personal guarantee of four Directors.
Other Notes:
31.03.2002 31.03.2001
(Rs.)
1. Estimated amount of contracts (net of advances)
remaining to be executed on capital account and
not provided for Nil Nil
2. Contingent liabilities not provided for:
a) In respect of Income Tax demands including
Interest and penalty pertaining to Assessment
Year 1990-91 for which the company filed and
deposited income tax under Kar Vivad Samadhan
Scheme (KVSS) 98, however the department has
not issued the final certificate against which
a writ petition is pending with Honble
Rajasthan High Court. 245 Lacs 79 Lacs
In respect of Income Tax Demand for Assessment
Year 1991-92 418 Lacs -
b) The Excise Department has raised demands in
respect of exempted and Nil rate of duty goods
against which respective appeals has been
filed before Appellate Authorities, which are
pending 59 Lacs 59 Lacs
3. The balances under the heads secured and unsecured loans, sundry
debtors, sundry creditors, loans and advances, calls in arrears and
certain Bank Balances are subject to confirmation, reconciliation and
adjustments, if any.
4. Interest on calls in arrears, and fixed deposits with Bank and on
investments etc. are accounted for on cash basis.
5. Single Super Phosphate is governed by the Concessional Scheme of
Government of India for Decontrolled Phosphatic and Pottassic
Fertilisers. During the year company has not lodged any claim for
subsidy hence not taken as income in the books of account
6. All stores and spares purchased during the year are charged to the
Profit and Loss Account.
7. Except on Unsecured Loan of Rs 12,97,770 from Harshvardhan Finance
Limited, Interest on all other unsecured loans has not been provided,
amount not ascertainable.
8. On revised revival package submitted by the Company through
Operating Agency (ICICI), the Honble Board for Industrial & Financial
Reconstruction (BIFR) has since published the Draft Rehabilitation
Scheme (DRS) envisaging OTS with 40% sacrifices in Term Loan principal
from Term lending Institutions/Banks and 50% sacrifice in working
capital outstanding with Bank and waiver of all types of interest
outstanding, but on account of objections raised by term lending
institutions for down payment of Rs 51 lacs made to Allahabad Bank by
the company, interalia the mode of payment to Allahabad Bank, the
Final Rehabilitation scheme has yet not been sanctioned and hence no
effect was given in the Companys accounts for the sacrifices and
reliefs as stipulated in the scheme.
9. In view of the above, Interest on Secured term loan from Term
lending Institutions/Bank amounting to Rs. 112.53 Lacs (Rs 112.53
Lacs), Interest on Debentures amounting to Rs 16.20 Lacs (Rs 16.20
Lacs) and interest on Working Capital Loans from Bank amounting to Rs.
68.20 Lacs (Rs 68.20 Lacs) has not been provided for the current year.
Consequent under statement of Loss and under statement of secured loans
by Rs. 196.93 Lacs.
10. During the year Company has shown in books of account repayment of
loan amounting to Rs 36 Lacs to Allahabad Bank for which no documentary
proof has been available with the company and same is adjusted against
term loan from bank.
11. Debts amounting to Rs. 60,77,897 upto the period ending 31.03.1993
against subsidy claim due from the Government has been considered as
doubtful but no provision has been made in the Books of Account.
Consequent understatement of loss and overstatement of Sundry Debtors
by Rs. 60,77,897.
12. Sundry Debtors includes receivables of Rs. 25,60,983 from various
parties outstanding for more than three years. The amount has been
considered as good and recoverable and no provision has been made in
the book of accounts.
13. No provision has been made in respect of liabilities towards
retirement benefit under mandatory Accounting Standard - 15, as being
accounted as per "Pay as you go" method, amount not ascertainable.
14. The Company has shown 18% Non Convertible Debentures under secured
loans, though the creation of trust deed is still pending.
15. Investments and Fixed Deposit with bank were not physically
verified.
16. The company has been following the practice of accounting for
excise duty at the stage of removal of goods from the manufacturing
unit. The amount of estimated excise duty on finished stock lying in
the manufacturing unit at the year ending is Rs. 2,41,265 (Rs
2,30,417). However there is no effect on the loss for the year.
17. ICICI, IDBI & IFCI have an option under certain circumstances in
terms of the loan agreement to convert the whole of the outstanding
amount of rupee loans or a part not exceeding 20% of the total loan
whichever is lower into fully paid equity shares at par.
18. ICICI Ltd., has an option under certain circumstances in terms of
the loan agreement to convert 20% of the defaulted amount of foreign
currency loan into fully paid up equity shares at par.
19. Dividend Payable amounting to Rs 16,40,000 pertaining to the
financial year 1990-91, neither deposited in separate bank account, nor
transferred to central government account as required under section
205A of Companies Act, and also the shareholders list to whom it is
payable has not been available with the company but as per the
information and explanations given by the Directors, same has been
payable to them, their relatives and associate companies, and it is
held in trust to be paid by the company on demand. Accordingly it has
been included under unsecured loans.
20. Interest Payable amounting to Rs 13,56,202 on 14% Convertible
Debentures, converted during the year 1991-92, the List of Debenture
holders to whom it is payable has not been available with the company
but as per the information and explanations given by the directors,
same has been payable to them, their relatives and associated
companies, and it is payable by the company on demand and accordingly
the same has been included under unsecured loans.
21. In view of the insufficient information of the suppliers regarding
their status as SSI Units, amount overdue to such undertakings could
not be ascertained.
22. Loans and Advances includes amount due from the Directors of the
company Rs. 1,96,044 (Rs. 2,73,628). Maximum balance outstanding at
any time during the year Rs. 4,75,222 (Rs. 4,38,207).
23. Staff Welfare Expenses of Rs 8,66,370 includes Medical Expenses of
Directors amounting to Rs. 8,14,161 in excess of term of appointment.
24. Prior period Expenditure/Income which are not material has been
treated as current year Expenditure/Income.
25. Directors Remuneration amounting to Rs 80000 has been under
provided as per terms of appointment, in books of account during the
year under review.
26. Earning Per Share:
Option of conversion of Loans into equity shares available to Term
Lending Institutions in terms of; Note No 18 & 19 above has been
ignored. As a result, the diluted earning per share is same as the
basic earning per share in context of AS-20 mandatory wef 01.04.2001
issued by ICAI:-
27. Deferred Tax:
The Company has unabsorbed depreciation and carried forward losses
available for set off under the lncome Tax Act, 1961. However in view
of uncertainty in sufficient future taxable income, net deferred tax
assets at the year end have not been recognized on prudent basis in the
context of AS - 22 mandatory w. e. f. 01.04.2001 issued by ICAI.
28. Segment Reporting:- The Company is engaged in the manufacturing of
SSP: (Fertiliser) and Acids, which in the context of AS - 17 mandatory
wef 01.04.2001 issued by the ICAI, is considered as the two business
segment but in the absence of proper segment accounting, Segment
reporting has not been given.
29. Figures relating to the previous year have been
regrouped/rearranged wherever necessary to make them comparable with
those of current year.
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