| FIXED ASSETS
1. Buildings include office premises and ownership flats in
Co-operative societies, the cost of which includes Rs.13,600/- towards
cost of shares in the said societies which are held in the name of the
company/its nominees. (Previous year Rs.13,600/-)
2. Plant & Machineries include Rs.302,653/- towards the cost of
powerline the ownership of which vests with Maharashtra State
Electricity Board, amount amortised during the year Rs.9,307/-
(Previous year Rs.10,494/-).
3. During the Year the Building at Satara and Plant & Machinery at
Satara have been revalued.
NOTES ON ACCOUNTS :
1. Previous years figures have been regrouped, recast and rearranged
wherever necessary.
2. a.] Estimated amount of contracts remaining to be executed on
Capital account and not provided for : [Net of Advances Rs.18,000/-
(Previous year Rs.13,38,000/-)] :
b.] Contingent Liabilities not provided for :-
(i) Letters of Credit opened in favour of suppliers NIL
Rs. (1,04,37,745)
(ii) Guarantees to various authorities Rs. 11.94,461
Rs. (2,36,00,305)
3. a.] Claims made and demands raised by Excise authorities amounting
to Rs. 11,18,51,000/-, excluding interest thereon, are disputed by the
Company and are pending at various stages. In respect of some of these
claims, the Company has given Bank Guarantees to the extent of
Rs.8,19,185/- (Previous Year Rs.1,34,24,185/-) and in certain cases the
company was required to pay and accordingly has paid Rs.51,35,719/-
under protest (Previous Year Rs. 51,07,093/-). On basis of Management
perception guided by prudential norms an amount of Rs.64,89,900/- is
provided during the yearly.
b.] Other Current Assets, inter alia, include Excise refund receivable
Rs.10,290,819/-,(Previous year Rs.10,290,819/-) the claim in respect of
which has been rejected by the Excise Authorities, inter alia, on
account of unjust enrichment. The Company is contesting the rejection
before the appropriate authorities. This includes a claim of
Rs.7,782,176 (Previous Year Rs.7,782,176) arising out of classification
dispute, which was earlier decided in favour of the Company by the
Honourable Supreme Court of India
4. During the year the Company has hived off their Steelgrip business
hitherto carried on through M/s Bhor Tapes Ltd (formerly known as Bhor
Steelgrip Tapes Ltd) by :
a) Selling Brand alongwith the Technical Knowhow, Goodwill, Copyrights
and Trademarks by entering into Non compete agreement for a total
consideration of Rs. 7,53,33,000/-, out of which Rs.20 Lacs has been
directly credited to Capital Reserve.
b) Acquiring from M/s. Bhor Tapes Ltd. Land & Building at the Fair
Market Value as on 27/03/02 and the Current Assets & Liabilities at
their book value as on 31.03.2002.
c) Writting off an amount of Rs 1,24,09,037/- remains lying to the
debit of Bhor Tapes Ltd after the above acquisition of assets and
liabilities as irrecoverable.
d) Selling the entire investment in the subsidiary company M/S. Bhor
Tapes Limited valuing Rs.1,36,20,000/- for a consideration of Rs.
1,16,000/-
5. Current Assets includes Rs.11,79,50,000/- receivable on account of
sale of Borivili Land & Structures there on for a total consideration
of Rs.15,00,04,000/-, but the Conveyance for the same is not yet
executed. Some of the Directors of the Company are interested in the
companies to whom the same is sold.
6. Operations at Baroda Plant producing Marblex Tiles have been
suspended since March 2002. The Satara Plant has been closed down in
July 2001. Since there are no plans to relocate these activities, the
Plant and Machinery and Building at Satara Plant have been revalued.
7. No provision have been made for disputed Income Tax Demand
amounting to Rs 19,49,78,261/- excluding further interest thereon
(Previous Year Rs 23,54,30,839/-).
8. Confirmations of the parties for amounts due from them as per
accounts of the Company are not obtained. Amounts due from customers
include amounts due/withheld on account of and are subject to
settlement of various claims for rate difference, short receipt,
defective supplies, rebates and discounts etc. Since necessary
adjustments will be made when the claims are reconciled and settled,
they have been classified as "debts considered good" and therefore no
provision is considered necessary there against.
9. Finished and Semi finished inventories are consistently valued at
estimated selling price or the cost whichever is lower. However, this
method is not in accordance with the AS-2 "Valuation of Inventory"
because the cost calculated by the Company includes administrative,
selling, distribution and finance cost also :
10. Investments are valued at FIFO basis at actual cost which is not in
accordance with the Accounting standard 13 "Accounting for Investment"
which requires it to be valued at Average cost. Hapl the same been
valued at Average cost the loss for the year would have been lower by
Rs. 2,05,00,000/-
11. The Company had an Export Obligation on account of various duty
free imports made in past. The Company is also served with a Notice of
demand in respect of some of the Licences due to failure in fulfilling
the export obligations and an amount of Rs 2,69,89,710/- has been
provided in the books on prudential basis.
12. Unpaid amount due as on 31st March, 2002 to small scale and/or
ancillary industrial suppliers on account of Principal amount together
with the Interest thereon, under the Interest on Delayed Payments to
Small Scale and Ancillary Industrial Undertaking Act, 1993 could not be
ascertained by the Company in the absence of information relating to
the status of the suppliers and hence not disclosed in the accounts.
13. The Company had agreed to acquire occupancy rights of two units in
a building under construction through purchase of Shares and Debentures
in a company (holding of which confers occupancy rights under the
Articles of the said Company) for a total consideration of
Rs.4,62,00,000/-. Against this, the Company had paid Rs.4,61,82,0.00/-
as advance and Rs.35,00,000/- has been paidtowards cost of ammenities.
As on 31st March 2002 an amount of Rs. 18,000/- still remains unpaid
towards the shares and debentures of the 2 units and till such time the
shares and debentures would not be transferred by the transferor
companies in the name of the Company. Till such time the amount paid so
far amounting to Rs. 4,96,82,000/- is classified as advance and is
considered as good. Some of the directors of the company are interested
in the companies from whom the company has agreed to acquire the said
shares and debentures.
The fair market value of such advances as on 31-03-02 is Rs.
3,99,00,000/-. The fail in the value of current Assets amounting to
Rs.97,82,000/-is provided in the Books of Accounts.
14. Miscellaneous Expenses includes :
Auditors Remuneration :
Audit fees Rs. 2,71,465
Rs. (2,95,658)
Tax Audit fees Rs. 88,437
Rs. (1,52,400)
For Certification work, etc. Rs. 41,531
Rs. (43,050)
Out of Pocket Expenses Rs. NIL
Rs. (5,974)
15. Provision for Wealth tax has been made on the basis of Returns
filed earlier and developments reflecting on the value of the property,
ignoring the disputes raised by the Department.
16. RELATED PARTY DISCLOSURE :
A. Key Managerial persons are :
1. Shri K. J. Tanna
2. Shri L. J. Tanna
3. Shri T.T. Tanna
Total Remuneration paid to above Directors reads as follows
a. Managerial Remuneration u/s 198 Rs. 9,00,000/-
(9,00,000)
b. Reimbursement of Medical Expenses Rs. 18,97,549/-
(1,65,937)
c. Perquisite value of Car/Driver as
per Income tax Rules, 1962. Rs. 64,800/-
(32,400)
d. Directors sitting fees Rs. 4.000/-
(9,000)
e. Reimbursement of Driver, Gas
and Electricity charges Rs. 5,16,910/-
(5,09,833)
Computation of net profit u/s 349 of the Companies Act, 1956 has not
been given as no commission is payable to any of the Directors.
B. Bhor Tapes Limited - Former Subsidiary of the Company :
1. Assets & Liabilities acquired Rs.25,11,124/- &
Rs.87,514/-respectively.
2. Processing fees paid Rs. 50,84,988/-
C. Associate Companies :
1. Goldcrest Finance (I) Ltd Rent paid Rs 18,00,000/-
2. International Exports & Estate Agencies Rent paid Rs 2,40,000/-
17. Additional information pursuant to the provisions of paragraphs
3,4C, & 4D of Part II of Schedule VI to the Companies Act, 1956.
A. QUANTITATIVE DETAILS OF OPENING STOCK/CLOSING STOCK/PRODUCTION/
SALES
PARTICULARS OPENING STOCK
unit of
Measure Quantity Value Rs.
I. PVC SUPPORTED MATERIALS :
(a) Leather Cloth & Foam Mtrs 107,978 6,445,809
Leather Cloth (231,999) (21,376,274)
(b) Polyurethane Poromeric Mtrs 16,486 1,453,355
Material - Synthetic Leather (21,285) (3,789,848)
II. PVC UNSUPPORTED MATERIALS :
(a) Films & Sheets Mtrs 5,793
(48,104)
Reels 1,097,888
(1,724,367)
Kgs.
Sqm.
(b) PVC Reinforced sheeting PCS 0
(59)
2,022,661
(10,457,458)
III. FLOORING MATERIALS : Sq. Mtrs 28,526 5,466,745
(60,433) (10,576,648)
IV. CHEMICAL ADDITIVE : Kgs 30 1,274
(1,885) (77,459)
V. FEED PRODUCTS :
a) Poultry Feeds MT 233
(153)
b) Cattle Feeds MT 164 2,278,169
(38) (1,246,531)
PRODUCTION SALES
Licensed & Actual @
Installed Quantity Quantity Value Rs.
Capacity ##
10,000 1,178,640 1,214,598 115,774,839
Kilo Mtrs (1,962,576) (2,086,597) (198,618,150)
2,000,000 54,396 58,621 11,460,777
Mtrs (106,121) (110,920) (19,304,006)
6,000 203,879 208,942
MT (508,822) (551,133)
$$12,780,640 13,250,685
(22,648,714) (23,275,193)
454 454
(0) (0)
500 500
(0) (0)
0 0
(110) (169)
87,423,251
(189,212,878)
7,200 232,849 200,080 3,1,722,248
Tons (261,838) (293,745) (46,307,044)
0 0 0
(0) (1,855) (20,240)
105,000 12,875 12,988
MT (15,182) (15,102)
5,464 5,450 112,445,945
(5,689) (5,563) (117,929,608)
CLOSING STOCK
**
Quantity Value Rs.%
72,020 3,231,713
(107,978) (6,445,809)
12,261 839,286
(16,486) (1,453,355)
730
(5,793)
627,843
(1,097,888)
0
(0)
432,495
(2,022,661)
61,295 8,801,449
(28,526) (5,466,745)
30 955
(30) (1,274)
120
(233)
178 1,615,760
(164) (2,278,169)
Includes the estimated amount of Excise duty on goods lying at plants.
## Licensed & Installed capacity is based on 3 shift working
$$ Including production of Reels by subsidiary company on job work
basis
@ As certified by the Management & relied on by the Auditors.
Sales Quantities include samples, and are after writing off for free
replacements and adjustments for excess/shortage.
B. CONSUMPTION OF RAW MATERIALS WITH VALUE AND QUANTITATIVE BREAK-UP :
2001 - 2002
Item of raw materials Unit Qnty Value
Rs.
Backing materials Mtrs. 209643
Kgs. 112119 22132956
PVC Resin MT 1182 49403382
Plasticizer MT 526 26597121
Pigments & Dyes MT 43 7660822
Solvents MT 301 9954610
Chemicals MT 739 7485987
Maize MT 3108
G.N. Extraction MT 0
Fish Meal MT 0
Jowar MT 2791
S.F. Extraction MT 951
Rice Kani MT 1931
Rice Bran Ext. MT 2261
Soya Bean Ext. MT 2696
Others MT 5030 98986401
2000-2001
Qnty. Value
Rs.
395118
201857 38577858
1781 83119480
819 44003411
55 8416989
712 21524321
1474 21954471
3305
22
24
1900
1304
1189
2459
2560
6420 105325637
The consumption figures are ascertained on the basis of opening stock
plus purchases less closing stock and therefore includes the
adjustments for excess and shortage ascertained on physical count write
off of unserviceable items, etc. The above figures include
consumption of materials by subsidiary company for production of
Companys goods manufactured on job work basis.
2001-2002
Rs.
C. CIF VALUE OF DIRECT IMPORTS :
a. Raw Materials Rs. 1,71,36,168
(4,21,50,595)
b. Processing Materials Rs. 18,71,010
(50,17,096)
D. EXPENDITURE IN FOREIGN CURRENCY :
Other Matters Rs. 17,533
(13,440)
E.VALUE OF CONSUMPTION OF INDIGENOUS AND IMPORTED RAW
MATERIALS TOGETHER WITH PERCENTAGE OF CONSUMPTION.
Raw materials consumed : Value Rs. Value %
a. indigenous 19,36,86,684 87.16
(27,36,01,820) (84.73)
b. Imported 2,85,34,595 12.84
(4,93,20,347) (15.27)
In giving the above information, the Company has taken a view that
spare parts and components referred to in para 4 D (c) of part II of
Schedule VI to the Companies Act, 1956 are assumed to be those
incorporated in the goods produced and not spares used for maintenance
of Plant and Machinery.
F. EARNINGS IN FOREIGN EXCHANGE :
Exports on FOB basis. Rs. 44,24,799
(59,92,121)
{including third Party Exports Rs. 32,16,057/-
(Previous Year Rs.52,91,496/-)}
N.B : Figures given in the brackets relate to previous year.
G. Details of Segment Reporting :
Rs.
1. Segment Revenue
(a) PVC Products 248,156,625
(b) Feed Products 112,445,945
Total 360,602,570
Less Inter Segment Revenue
Net Sales/Income from Operation 360,602,570
2. Segment Results
Profit/(Loss) before Tax & Interest
(a) PVC Products (61,044,769)
(b) Feed Products 3,140,272
Total (57,904,497)
Less (a) Interest 51,147,207
(b) Unallocable income --
Net of unallocable income --
Profit/(Loss) Before Tax (109051704)
3. Capital Employed
I. Fixed Assets (Net Block)
(a) PVC Products 61,458,480
(b) Feed Products 2,222,114
Total 63,680,594
II. Net Current Assets
(a) PVC Products 179,903,109
(b) Feed Products (2,222,114)
Total 177,680,995 |
