| Contingent Liabilities
I The outflow of resources in respect of pending matters with respect
to Sales Tax & Excise Duty would depend on the ultimate outcome of the
dispute lying before various Authorities amounting to Rs. 318.71 Lacs
(Previous Year Rs. 696.14 Lacs). The Company has taken legal & other
steps necessary to protect its position in respect of these claims.
II. The Company has recoverable aggregating Rs.489.48 Lacs (Previous
Year Rs.472.22 Lacs) from Birla TransAsia Carpets Limited (BTCL), a sick
industrial undertaking. BTCL has made a reference to the Board for
Industrial and Financial Reconstruction (BIFR).
The management relies on the estimations made by an independent valuer
in respect of the realizable values of assets viz. land, buildings and
plant and machinery of BTCL and accordingly considers its exposures to
be good and adequately covered and expects full realisability of the
same in future.
III. Trade receivables include Rs.. 410.09 Lacs (Previous years
Rs.843.00Lacs) for which the company has entered into agreements of
assignment for transfer of debts outstanding and receivable by the
company, to the purchaser of the debts.
IV. The Company during March, 2006 had a public issue of Equity
Shares, which was oversubscribed. As per SEBI rules, refund orders were
issued to the subscribers in respect of the excess amounts. An amount
of Rs..14.41 (Previous Year Rs. 14.41 Lacs) is pending for encashment as at
31st March, 2013
V A. Earnings Per Share (Basic and Diluted)
V B. Other payable under Note 9 "Other Current Liabilities" includes
statutory dues of Rs.. 610.58 Lacs (Previous Year Rs. 558.11 Lacs) & other
payable against Acceptances of Rs. 3451.91Lacs (Previous Year Rs. 3737.80
Lacs).
V C. In accordance with Accounting Standard - 17 "Segment Reporting",
segment information has been given in the consolidated financial
statement of the Company and therefore, no separate disclosure on
segment information is given in these financial statements.
V D. Expenses incurred amounting to Rs. Nil (Rs. 1240.45 lacs), as GDR
Issue Expenses, on issuance of Global Depository Receipts in the year
2010-2011 have been adjusted against Securities Premium received
against these GDR's.
VI Balances with banks includes Rs. 9, 92,745.00 with a bank for which
statement of account / confirmation of balance as on 31.03.2013 is
awaited.
VII Party balances are subject to confirmation / reconciliation.
VIII In the opinion of the management, the current assets, loans &
advances and current liabilities are approximately of the value stated,
if realized / paid in the ordinary course of business. The provision
for all known liabilities are adequate and is not in excess of the
amounts considered reasonably.
IX On 09.06.2011 the Company issued and allotted 213,519,690
convertible share warrants to Promoter Group Companies at a price of
Rs. 2.10 per share. 25% of the issue price amounting to Rs.
11,20,97,837.26 due on allotment was received at the time of allotment.
The balance 75% was due at the time of conversion on or before
08.12.2012. As the warrant holders have not exercised the option of
conversion, the Company has forfeited the amount received on allotment
of the warrants.
X Previous year figures have been regrouped and re-arranged wherever
considered necessary.
XI The Company has incurred expenditure aggregating to Rs. 4148.62
lacs towards capital work in progress. There has been delayed in the
implementation of the project and accordingly the advances made to the
suppliers have not been entirely appropriated towards the supplies. No
provision for impairment is considered necessary by the management at
this stage.
XII The Company has not be able to service the repayment of deposits
to the deposit holders as well as interest on the deposit due for
payment and comply with the order of the Company Law Board for refund
of deposits, due to cash flow limitation and the extent of the
outstanding as of 31.03.2013 is interest of Rs. 1,26,02,594/- and
principal amount of Rs. 11,91,80,000/- on the Fixed Deposits matured
and presented for repayments.
However, the company is paying the amounts in staggered manner and
hopes to clear the outstanding in due course of time.
| 