| 1. The Non-convertible Debentures are redeemable at par in three equal
annual installments from the expiry of the sixth year from the date of
Allotment. These are secured by Equitable Mortgage of all the present
and future fixed assets of the company and hypothecation of all the
movable properties present and future (except for book-debts).
2. Term Loans from Bank and Financial Institutions are secured by a
joint mortgage of all the present and future assets of the company and
hypothecation of all the movable properties present and future (except
for book-debts). Corporate Guarantee from an associate Company and
personal Guarantees of the Directors.
3. Loans from Finance Companies are secured by lien on the specific
asset against which loans are taken.
4. Cash Credit from Bank is secured by hypothecation of ?Raw Material,
Semi-Finished and Finished goods, Book Debts, Corporate Guarantee of
Associate Company, Personal Guarantee of one Director, and Second
Charge on Fixed Assets.
5. Deferred Revenue Expenditure :
Due to the protracted implementation of the project for certain reasons
beyond the control of the company and a delay in the commencement of
the commercial production as a sequel thereto, the management had the
view that the impact of following fixed and indirect expenditure
should not be taken in one single financial year and instead, the same
should be deferred and expensed out over a period of five yeas.
Accordingly, during the current financial period, the company has
expensed out Rs. 262.20 lacs out of Rs. 858.90 lacs as deferred revenue
expenditure on a pro-rata basis.
Current Period Previous Year
Rent Rates & Taxes - 426524
Insurance - 646209
Personnel Expenses - 3077724
Repairs & Maintenance - Plant & Machinery - 280030
Travelling Expenses - 1315596
Audit Fees - 25000
Interest - 59621926
Exchange Rate Fluctuation - 313810
Electricity Charges - 182975
0 65889794
6. The Company has prepared Profit and Loss Account for the period
01/10/1998 to 31/03/2000, in view of the extension of the current
Financial Accounting year by six months. Since commencement of
Production took pace in between last year and also as it was for a
period of 3 months, the current period's figures are not comparable
with the previous year.
7. Contingent Liabilities :
i) Capital commitments not provided for are estimated at Rs. 264.95 lacs
(Net of Advances). (Previous year Rs. 139.25 lacs)
ii) Bank Guarantee outstanding in favour of suppliers and others Rs.
Nil (Previous year Rs. 100.88 lacs)
iii) Customs Duty, Pentaly and Interest to be incurred on
non-fulfilment of Export obligation is Rs. 228.53 lacs (Net of Bank
Guarantee Margin)
8. The Company has not acknowledged the liability against Export
Obligation which works out to be 646.08 lacs. (net of part payment on
this account).
9. In the opinion of the Board, the Current Assets, Loans & Advances
have a value on realisation in the ordinary course of business, at
least equal to the amount which have been stated in the Balance Sheet.
10. Some of the balances in Accounts of Advances, Debtors and
Creditors are subject to confirmation and reconciliation if any.
11. Figures of the previous year have been regrouped and rearranged
wherever necessary, to correspond with the figures of the current
period.
12. In view of losses, the Company has not made any provisions for
Income Tax.
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