| (1) (i) Secured Loans referred to in the Balance Shet denote the Rupee
Term Loans and Foreign Currency Loans obtained from ICICI, IDBI. IFCI
and the Indian Bank and they are secured by
(a) A first mortgage of all Companys immovable properties, both
present and future.
(b) An irrevocable and unconditioanl joint and several personal
guarantees from two Directors and a Member of the Company.
(ii) Cash Credit and Overdraft with the Indian Bank is secured by first
charge by way of hypothecation of Companys movables, both present and
future.
(iii) The loans under Hire Purchase Finance are secured by the
respective assets.
(2) Current Liabilities include a sum of Rs 243.54 lacs being interest
accrued but not due to the Financial Institutions.
(3) Fixed Assets except Furniture & Fittings were revalued at their
Fair Market Value (FMV) as on 1.4.1994 on the basis of a Technical
Evaluation.
Fixed Assets having FMV higher than the Book Values (WDV) as on
1.4.1994 have been stated at their FMV. The difference between the Fair
Market Value (FMV) and the Book Value (WDV) of the revalued Fixed
Assets amounting to Rs 2442.90 lacs has been credited to Revaluation
Reserve.
The Net incremental depreciation on account of-Revaluation amounting to
Rs 210.59 Lacs (Previous six months period : Rs 70.10 lacs) is
withdrawn from the Revaluation Reserve. Consequently, there is no
effect on the loss for the year.
After the above transfer, the Balance in the Revaluation Reserve is Rs
1573.54 (Previous Year : Rs 1,784.13 lacs)
(4) The Company has not followed the accounting policy No. (1) (F) in
as much as Gratuity liability has not been estimated as per actuarial
valuation. However Provision for Gratuity liability has been accounted
as per the provision of the Payment of Gratuity Act, 1972
(5) During the accounting period ended 30th September 1997, the Company
had received demands from the Assistant Commissioner of Customes,
Chennai for a total sum of Rs 268.96 lacs by way customs duty on import
of capital equipments in the earlier years. The Company has appealed
against the demands to the Appellate Commissioner of Customs. The
Company also filed a writ petition before the Madras High Court, who
have granted an interim stay of collection of custom duty and other
proceedings. Pending the finalisation of the above appeal and other
proceedings, no provision has been made for the disputed customs duty.
(6) The Company had earlier submitted a proposal for one-time
settlement (OTS) of its dues to the Financial Institutions and Indian
Bank. As per the terms of the OTS, the Company will have to pay an
amount of Rs 2,900 lacs before a specified date. The total relief
through waiver of interest etc. would amount to about Rs 8089 lacs The
Company has received letters of approval from the Financial
Institutions and Indian Bank. Meanwhile, the Company had received Debt
Recall Notice from ICICI and notice from DRT on legal suit initiated by
Indian Bank against the Company and the guarantors.
Pending payment under OTS of Rs 2900 lacs, the financial effects of the
reliefs under the same have not been considered in the accounts.
(7) A special resolution was passed on 7.11.1998 to increase the
Authorised Share Capital from Rs 15 crores to Rs 69 crores. The same
has been further increased to Rs 74.50 crores on 28.12.1998 by another
special resolution.
In respect of the increase of Authorised Share Capital from Rs 15
crores to Rs 69 crores, Notice of the increase in Authorised Share
Capital in Form No. 5 has not been filed and the requisite filing fee
and other charges upto 30.9.2000 amounting to Rs 48.11 lacs has not
been paid so far. However, the same has been provided in the accounts,
(8) During the accounting period, the Company has collected a sum of Rs
14.73 lacs under the Health Guard Schemes and the entire amount has
been recognised as income. The corresponding cost of services are
charged to revenue in the year in which incurred. The Company has
incurred an amount of Rs 3.24 lacs during the accounting period in this
regard.
(9) The Company has issued Notice of suspension of Hospital operations
with effect from 19.6.2000 on various grounds and subsequently advised
the employees to vacate the Hospital premises during the period of
suspension. The Company has not carried out verification of assets and
inventories after 19.6.2000 There were some thefts of properties since
19.6.2000 for which complaints were registered with Inspector of
Police. The Company has provided a sum of Rs 48.79 lacs by way of
pilferage and also an account of theft, expiry and other conditions.
(10) The Employees Union has made an application under section 33 C (1)
of the Industrial Disputes Act, 1947 for various claims amounting to Rs
53.93 lacs against which the Company has provided a sum of Rs 32.21
lacs which in the opinion of the Company in reasonable and adequate.
(Rupees in lacsi
18 Months 6 Months
ended ended
30.9.2000 31.3.99
(11) Estimated amount of Capital
Contracts remaining to be
executed on Capital Account and not
provided for Nil Nil
(12) CONTINGENT LIABILITIES
Claims against the Company
not acknowledged as debts 52.90 Nil
(13) Debit and Credit balances are subject to confirmation and/or
reconciliation.
(14) As the accounting period consists of eighteen months, the figures
in respect of income and expenditure are not comparable with the
previous accounting period of six months.
(15) Figures for the previous year have been regrouped and/or
rearranged wherever necessary.
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