1. a) The company’s fixed assets both movable and immovable, both
present and future have been placed as security under first charge
for the term loan obtained in foreign Currency from BNP Paribas.
b) The working capital facilities from State Bank of India, State Bank
of Hyderabad, Andhra Bank and The Bank of Nova Scotia are secured by
hypothecation of stock of raw materials, work-in-process, finished
goods, stores and spares, bills receivable and book debts. The fixed
assets of the Company are provided as collateral security by way of
second charge for the working capital facilities availed from State
Bank of India.
c) Consequent to an order passed by Vidyut Ombudsman in March 2010,
Andhra Pradesh Southern Power Distribution Company Ltd., (APSPDCL) has
demanded Rs 27.06 million as low voltage surcharge (including interest)
for the period from June, 2005 to November, 2007. The company has
created a liability in the accounts for Rs 25.80 million during the
financial year ended March 31, 2009, as per APSPDCL''S original demand.
The Company has paid Rs13.57 million under protest. The Company has not
provided the balance of Rs1.26 million in the books and has preferred
an appeal against the order of Vidyut Ombudsman.
2. The company is availing the sales tax deferment benefit since
1997-98 on its expanded capacity. Such deferment claimed, as on March
31, 2011 is Rs 710.02 million (PY Rs 638.95 million). This amount is
subject to revision by the assessment authorities, on completion of
assessments.
3. Contingent Liabilities
(Rs Million)
Particulars 31.03.2011 31.03.2010
a. Claims against the company not
admitted towards Excise Duty/
Service Tax 18.62 10.83
Sales Tax 88.21 28.43
Electricity 205.44 145.93
Dues to Supplier 0.75 -
[Against all the above, Rs 5.64 million
(PY Rs 7.30 million) was paid under
protest]
b. Counter guarantees given to banks
in respect of bank guarantees
issued in favour of various
constituents 284.05 466.89
c. Letters of credit opened with
banks 169.46 246.42
d. Bills discounted with scheduled
banks 69.13 43.81
e. Estimated amount of contracts
remaining to be executed on capital
accounts, not provided for 236.94 74.99
f. Bank Guarantees provided to
APGPCL for differential wheeling
charges pending disposal of the
case by Supreme Court, not provided
for 4.32 4.32
4. The Company is engaged in the manufacture of lead acid storage
batteries. In the perception of the management, identifying the
Company''s business into further segments as per Accounting Standard -
17, does not arise.
5. Related party transactions
Related parties particulars pursuant to Accounting Standard -18
A) List of related parties
1. Key management personnel
Sri Jayadev Galla
2. Relatives of key management personnel
Dr. Ramachandra N Galla Father of Sri. Jayadev Galla
Smt. G. Amara Kumari Mother of Sri. Jayadev Galla
Smt. G. Padmavathi Wife of Sri. Jayadev Galla
Dr. G. Ramadevi Sister of Sri. Jayadev Galla
Sri Ashok Galla Son of Sri. Jayadev Galla
Master Siddharth Galla Son of Sri. Jayadev Galla
3. Enterprises in which key management personnel and / or their
relatives have significant influence Amara Raja Power Systems Limited
Amara Raja Electronics Limited
Mangal Precision Products Limited
Galla Foods Limited
Amara Raja Infra Private Limited
Amara Raja Industrial Services Private Limited
4. Enterprise with significant influence
Johnson Controls Mauritius Private Limited, Mauritius
6. The balances in various personal accounts are subject to
confirmation by and reconciliation with the concerned parties.
7. In the opinion of Board of Directors the current assets, loans and
advances are expected to realise the value stated in the accounts, in
the ordinary course of business.
8. Donations include Rs 1.00 Million donated to the Communist Party of
India (Marxist), Chittoor District Committee.
9. Previous year figures have been regrouped wherever necessary to
confirm to the current year''s classification.
10. Figures have been rounded off to the nearest thousands and rupees
wherever it is mentioned in million and rupees respectively. |