| (i) The TERM LOAN FROM FINANCIAL INSTITUTION is secured by first charge
on all immovable assets and properties of the unit and personal
guarantee of Directors.
(ii) The CASH CREDIT LOAN FROM BANK is secured against hypothecation of
all fangible movable assets including stocks, book debts, raw materials,
finished goods stock semi finished goods stock and bills purchase and
2nd charge on immovable Assets of the Company.
01. Estimated amount of contracts for capital expenditure not provided
for (Net) after setting of advances of Rs. NIL (Last year Rs. NIL
amounting to Rs. NIL (Last year Rs. NIL).
02. (a) AMG charges payable for earlier years, has not been admitted,
in view of Company 5 remission application filed before BSEB.
(b) No bill has been raised by BSEB for AMG charges, if any, for the
current accounting year, as such no provision is required.
(c) Power supply to the Company has been restored by BSEB on 01.01.98
and Company has resumed CTD Bar manufacturing activity from Jan. 98.
03. (a) Contingent liability not provided for in respect of Bank
guarantee Rs. Nil and Excise Duty 1,29,632.50 (Last year Rs. Nil).
(b) Contingent liability on account of additional energy charges bill
of BSEB, not acknowledged as debts Rs. 39.41 crores.
(c) Contingent liability on account of Income Tax demand of Rs. 9,67,200/- in view of an order under Section 158BC of Income Tax Act,
1961, have not been provided for.
04. (a) Depreciation has been provided under straight line method at
the revised rates specified in Schedule XIV to the Companies Act, 1956.
(b) Plant had remained completely closed for 9 months during the year.
Therefore, provision for depreciation on Plant & Machinery has been
made on prorata basis.
(c) Less Depreciation provided on other than Plant & Machinery due to
Plant closure during last year has been added to current year depreciation on those assets amounting to Rs. 1,95,964,28, which is relating to prior period.
(d) Due to prorata depreciation charges on Plant & Machinery, management considers that it is not necessary for recomputation of useful life of the same.
(e) Depreciation on assets disposed off/discarded has not been provided
for the period for which the concerned assets had remained in utilisation for the year.
05. A sum of Rs. 39,725 has been paid towards Excise Penalty for Accounting year 92-93. An appeal before the Commissioner of Excise,
(Appeal), Calcutta has been filed. Provision against the same has not
been made.
06. During the year under reference, method of realisation of Excise
duty has been changed land it is calculated on the basis of capacity of
the Plant, - under this circumstances Company has opted for its Hot
Re-Rolling Division compounding method of Excise realisation/Payment,
based on the capacity of Plant and for its M.S.Ingots Division opted
for realisation/payment of duty on the basis of Actual production
However, the authority has imposed Duty on capacity of entire Plant.
Hence the company has made a representation under Rule-3A of central
Excise Act, Accordingly, the company has not provided for Excise Duty
of Rs. 1,29,632.50 levied on actual capacity utilisation on the basis
of compounding method.
07. Excise duty, payable on finished goods but not cleared as on 31st
March, 1998 estimated at Rs. NIL - (1996-97 Rs. nil) has not been accounted for. This will be accounted for at the time of excise clearance of the same.
08. Items of expenditure in the profit & loss account include re-imbursement to and by the Company.
09. Previous year figures have been regrouped and re-arranged wherever
considered necessary.
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