| 1. Contingent liabilities:
Letters of credit issued by bank - Nil (Nil)
An Ex-employee claiming an amount of Rs.3,73,308.88 with 10% interest
p.a. has filed a litigation in the Civil Court, against which the
company is contesting as the same is not due to him. In this connection
an amount of Rs. 1,24,431/- has been deposited with the treasury of
Civil Court, which is included under Loans & Advances.
2. The Company has not acknowledged as debts certain claims of interest
as well as penal interest claims as on 31st March, 2001 of Industrial
Development Bank of India Ltd. Aggregating to Rs.385.88 lacs as the
company is following up with them for waiver. Consequently, the
accumulated losses are lower by Rs.385.88 lacs and the related Loan
account lower by the same extent. Further claims of Interest & penalty
has also not been accepted and acknowledged as debts by the company
hence not accounted. The same could not be quantified as the details
are not available.
3. The Company has arrived at One Time Settlement with Secured
Creditors and deposited Rs. 56.00 Lacs towards the same with the Bank.
The effect of One Time Settlement in the book of accounts will be given
after completion of the settlement. Hence the concession/relief agreed
by the secured creditors have not been given effect in the accounts.
4. During the current year. Tax of Rs. 3365/- was not deducted at
source on payment of Security Bills amounting to Rs. 161000/-.
5. At present no contract is remaining to be executed on account of
capital expenditure.
6. In the opinion of the Board, the current assets, loans and advances
are approximately of the value stated, if realized in the ordinary
course of business and the provision for all known liabilities, subject
to Note No. 2 above, is adequate and not in excess of or less than the
amount reasonably necessary.
7. Remuneration to the Auditors for services rendered in various
capacities:
2004-2005 2003-2004
(Rs.) (Rs.)
Statutory Audit - 5400 5,400
Taxation Audit - 2700 2,700
8100 8,100
8. Managerial Remuneration
Remuneration paid to the Managing Director and the Executive Directors
as minimum remuneration during the year as per Schecule XIII to the
Companies Act, 1956 and according to agreements is as under.
2004-2005 2003-2004
(Rs.) (Rs.)
a. Salary to Managing Director Nil Nil
b. Salary to Executive Directors
i. Mr. Rajesh Pillai Nil Nil
ii. Mrs. Sunita Hariharan Nil Nil
The managing director & the executive directors have informed that they
have forgone the remuneration for the year in view of non functioning
of the factory. The amount of remuneration payable to Managing Director
was Rs. 420000/- p.a. & that to Executive Directors was Rs. 240000/-
each per annum.
9. Information regarding Opening Stock, Turnover and Closing Stock.
2004-2005 2003-2004
A) Glass Containers
Nos Rs. Nos Rs.
i) Turnover Nil Nil Nil Nil
ii) Opening Stock 10,009,671 4,389,927 10,009,671 4,389,927
iii) Closing Stock 10,009,671 4,389,927 10,009,671 4,389,927
B) Defective Glass Containers
Tons. Rs. Tons Rs.
i. Turnover Nil Nil Nil Nil
10. Quantitative information in respect of goods manufactured during
the year.
(i) Licensed capacity : Not applicable.
(ii) Installed capacity : As at 31.03.2005 - Melting capacity of
Furnace 50 tons per day of soda lime glass. (As Certified by the
management and accepted by the Auditor, being a technical matter).
(iii) Production of:
2004-2005 2003-2004
A) Saleable glass containers (nos.) Nil Nil
B) Defective glass containers (tons) Nil Nil
12. Capital Reserve Rs. 2,500,000/- (2003-2004 Rs. 2,500,000/-)
consists of Special Capital Incentive received from SICOM Ltd, under
the Government of Maharashtras Package Scheme of Incentives, 1988.
13. (a) Sundry debtors. Sundry Creditors and Loans & Advances are
subject to confirmation/reconciliation.
(b) Sundry Debtors, considered good, outstanding for a period exceeding
6 month, includes Rs. 930.484/- (2003-2004 Rs. 930.484/-) due from
parties against whom the company has instituted legal proceedings for
recovery. Further there are several stagnant accounts amounting to
Rs.4,037,643/- (2003-2004 Rs. 4,068,991/-) which are considered as
recoverable during the course of the business hence are not provided.
14) During the year no liabilities have been written back (2003-2004
Rs. Nil)
15) The interest and any other charges payable on the Income tax
deducted at source, Profession tax. Contribution for Employees
Provident Fund & Employees Pension Funds deducted but not paid & also
Employers Contribution for Provident Fund not paid on due dates have
not been provided. The same will be accounted as and when paid by the
company.
16) Interest has not been charged on the Loans & Advances received from
the Business Associates, Promoters & Shareholders. The loans from
Business Associates & Shareholders are payable on demand. During the
year Business Associates, Promoters & Shareholders have brought in
further sum of Rs.10,475,150/- as interest free loans.
17) Deposits include interest free security deposit of Rs. 2,300,000/-
as consideration for lease of two premises (2003-2004 Rs. 2,300,000/-)
with a private trust of which two Directors are the beneficiaries.
18) The Company has not received information from suppliers in regard
to their Small Scale Industrial Undertaking status.
19) The Equity Share Application and Refund and the collecting bank
accounts in connection with the public issue of Equity shares are
subject to confirmation/reconciliation.
20) In view of the uncertainity of availment of tax benefit on
accumulated business losses & unabsorbed depreciation, the Company has
not considered any deferred tax assets as required to be disclosed
under Accounting Standard 22 Accounting for Taxes on Income" issued by
the Institute of Chartered Accountants of India.
21) The company has got only one business segment of manufacturing
Glass bottles.
22) Expenditure in foreign currency - Rs. Nil (Nil)
23) F.O.B value of exports - Rs. Nil (Nil)
24) C.I.F. value of imports - Rs. Nil (Nil).
25) Previous years figures have been reworked, regrouped, rearranged,
and reclassified wherever necessary.
26) Figures in brackets represent figures for the previous year.
| 