| 1. CONTINGENT LABILITIES
Current Year Previous Year
(Rs. in lac) (Rs. in lac)
a) Guarantees/Bonds executed and outstanding 34.59 34.59
b) Excise duty demand being contested 1.60 1.60
c) Parties claims not acknowledged as debt being 402.61 330.05
under dispute.
3. Financial assistance to M/s Oswal Foods Limited (OFL) by the All
India Financial Institutions i.e. IDBI. IFCI and ICICI have been
sanctioned on the condition, inter alia our company furnishing
undertaking along with other private promoter companies. Accordingly,
the Company has furnished the following undertakings:
a) For Non-disposal of its shareholding in OFL during the currency of
various loans.
b) For meeting any shortall, jointly with otherpromoter companies, in
financing the cost of capital Project and/or working capital of OFL on
the terms and conditions acceptable to the Financial Institutions. The
amount of these liabilities is not ascertainable.
c) Loans to other bodies corporate shown in Schedule XI consists of
unsecured Loan of Rs. 5.00 lacs each given to Manipur Vanaspati &
Allied Industries Limited and Oswal Foods Limited These are
subordinated loans and shall be repayable with the approval of IFCI.
4. In the Opinon of the board, the Current Assets, Loans and Advances
are having the value at which they are stated in the Balance Sheet if
realized in the ordinary course of business.
5. Capital Work in Progress including Capital Advances of Rs. 708.19
lacs (Previous Year 708.19 lacs).
6. a) i) The Debentures and Term Loans from financial Institutions are
secured by way of mortgage created on all the immovable assets of the
Company and Hypothecation of all moveable assets, both present and
future, ranking part passu with each other, but subject to the charges
created or to be created in favour of Bankers for securing working
capital limits.
ii) Rupees Term Loan of Rs. 93.40 lacs (Previous Year Rs. 93.40 lacs)
is further secured by the personal guarantee on the Managing Director
of the Company.
iii) Rupees Term Loan of Rs. 73.32 lacs is further secured by an
exclusive charge over the assets acquired/to be acquired out of the
loan.
iv) Rupees Term Loan of Rs. 1062.34 lacs (Previous Year Rs. 1062.34
lacs) from HUDCO is secured by mortgage by way of deposit of title
deeds of the land acquired and buildings constructed/to be constructed
thereon.
v) Foreign Currency Loan (ECB) of US $ 3 Million secured by the
Institutional Guarantee of IFCI has been repaid by IFCI on 09.02.2000
to London Forfeiting Cyprus Ltd. and the liability to the extent of
corresponding amount substituted by IFCI. FLG loan is shown in the
schedule III under the heading `Term Loans".
b. Working Capital facilities from Banks are secured by way of
Hypothecation of Stock of raw material work in process, finished goods,
raw materials in transit, stores and spares and book debts and by a
second charge on immoveable properties both present and future.
c. Debentures Series-1 Consisting of 130000 14% Secured Non-Convertible
Debentures of Rs. 100/-each for cash at par to be redeemed at a premium
5% of the face value, entire amount of Rs. 13.00 lacs is due for
redemption. Debenture Series-ll consisting of 150000 20% Secured
Non-Convertible Debentures of Rs. 100/- each entire amount of Rs. 150
lacs is due for redemption. Debenture Series III consisting of 1000000
18% Secured Non-Convertible of Rs. 100/- each for cash at par is due
for redemption.
7. In view of the on-going court cases with various parties, interest
on inter corporate deposits of Rs. 72.56 lacs (Previous Year Rs. 72.56
lacs) has been charged to Profit & Loss Account. The total interest not
provided in the books of accounts is Rs 517.15 lacs (Previous Year Rs.
444.59 lacs).
8. Interest on cash credit limit of Indian Bank of Rs. 78.80 lacs for
the year (Previus Year Rs. 75.77 lacs). Total of rs. 394.43 lacs has
not been provided in the books of accounts since the bank has filed a
suit in DRT.
9. Debit and Credit balances on whatever account are subject to
confirmation.
10. T he Company has stopped capitalization of interest on loan
borrowed from HUDCO for conduction of commercial Complex at Ludhiana in
view of AS-13 issued by the Company Institute of Chartered Accounts of
India, New Delhi. However, in view of suit filed by the HUDCO in DRT,
interes of Rs. 499.73 lacs relating to accounting year 2003-04 has not
been provided in the Books which would otherwise has been charged to
Profit & Loss Account in view of As-13.
11. Out of total investment of Rs. 985.04 lacs as on 31.03.2003, Rs.
892.64 lacs is invested in the Group Companies. Most of these Companies
are sick and had been referred to BIFR. No provision has been made tor
the diminution in the value of these investments in view of AAIFR order
dated 26.11.2001.
12. Company has not provided/paid sitting fees to its directors for
holding he Board meetings.
13. company has not provided/paid the listing fees to the stock
exchanges during the year.
14. There being no profit as computed under section 349 of Companies
Act, 1956, the managerial personnel has been paid following
remuneration withion ceiling laid down in Section II of Part 10 of
Schedule XIII of companies act, 1956 as modified vide Notification No.
F.No. 5/48/2001 -CL (V) dated 16.01.2002.
Particulars Current Year Previous Year
A) MANAGING DIRECTOR
(a) Salary
(b) Contribution to Provident Fund Nil Nil
(c) Expenditure on perquisites
B) WHOLETIME DIRECTOR
(a) Salary
(b) Contribution to Provident Fund Nil Nil
(c) Expenditure on Perquisites Nil Nil
15. Previous Years figures have been recast/regrouped wherever
necessary to make them comparable with the Current Years figures.
16. Assessments regarding Income Tax and Wealth Tax upto the Assessment
Year 1999-2000 and Tax upto the year 1990-91 and for the year 1997-98
have been completed.
17. The Company has not received any information from any of the
Suppliers of their being Small Scale Industrial Unit. Hence the amount
due to Small Scale Industrial Units outstanding as on 31.03.2004 is not
ascertainable.
18. In view of the losses no provision for taxation has been made in
the Books of Accounts.
19. Schedules I to XXII from an intergral part of the Balance Sheet and
Profit & Loss Account have been duly authenticated.
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