| 1. Secured Loans : Working capital facilities from banks are secured by
hypothecation of stocks of raw materials, semi finished goods, finished
goods, stores and spares and book debts and first charge on Fixed
Assets of the company in favour of State Bank of India, Patamata
Branch, Vijayawada and State Bank of Hyderabad, Governorpet Branch,
Vijayawada on pari passu basis.
2. Current Assets and Current Liabilities : Sundry Debtors, Loand and
Advances and Sundry Creditors balance are subject to confirmation by
the parties. Fixed Deposits with Banks to the extent of Rs. 12.46 Lakhs
are pledged with bankers towards margin money for Letters of Credit and
Rs.52.49 Lakhs are pledged with banker towards margin for Bank
Guarantees.
3. No amount is due to any small-scale industry in excess of Rs.
1,00,000 or more than 30 days.
4. Provision is made for regular Income tax as per provisions of
Income Tax Act, 1961. Deferred Tax:
Deferred Tax is computed on the timing differences as per Accounting
Standard-22 issued by the ICAI.
The major and only component of Deferred Tax liability is the
difference between Depreciation charges in books & Depreciation claimed
as per Income Tax Act, 1961.
5. Segment Reporting: The Company is primarily engaged in the business
of manufacturing both AC and DC volts Aluminium Electrolytic
Capacitors. Since the nature of the activities is governed by the same
nature of risks, these are grouped as single segment.
6. In the absence of any claim under interest on delayed payments to
Small Scale and Ancillary Industries Undertaking Act, 1993 the Company
did not make any provisions for such payment.
7. Excise Duty: Provision has been made for the excise duty payable on
finished goods not cleared from the factory amounting to Rs. 10.26
Lakhs. CENVAT credit has been taken to the extent utilized for
clearance of finished goods.
8. Gratuity has been funded through the scheme administered by Life
Insurance Corporation of India. 10.There is no impairment of assets.
9. Related party transactions:
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