1. Contingent Liability :
1.1 Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 384.50 lacs (Rs. 384.5 lacs) which is
Net of Advances Rs. 6.50 lacs (Rs. 6.50 lacs.
1.2 Unexpired Bank Guarantees Rs. 71.76 lacs (Rs. 71.76 lacs).
1.3 The Company has acquired machinery on lease having a capital cost
of Rs. 256.65 lacs. The lease rentals for the unexpired period
(Inclusive of finance charges levied on the principal cost of machinery) amount to Rs. 145.21 lacs. ( Rs.
2. The balances of sundry debtors, creditors, deposits, loans and
advances are as per books of account and subject to confirmation from
3. No pm vision for diminution in value of investment has been made
since the Company not being primarily an Investment company and
investments are held for long term, the management is of the view that
the diminution is due to temporary market factors.
4. Income Tax authorities have raised a tax demand of Rs. 157.54 lacs
for the assessment year 1994-95, Rs. 50.65 lacs for the assessment year
1995-96 and Rs. 46.98 lacs for the assessment ear 1996-97. The Company
has preferred an appeal against the said orders and has Rs. 13.59 lacs
transferred to Income tax Authorities as demanded by them under section
226 (3)(IV) of the income Tax Act, 1961. And for the balance amount
the management is of the view that since the demand is under appeal with the Income tax authorities,
provision for Income Tax liability shall be accounted for in the year of disposal of appeal.
In absence of taxable profit and negative book profit as defined u/s
115JA of Income Tax Act, 1961, no provision for taxation has been made
during the current year.
Profit on sale of asset is net of loss on sale of asset Rs. 0.47 lacs
(Rs. Nil). Managerial Remuneration :
Salary to Directors Rs. 19.80 lacs Rs. 19.80 lacs
Perquisites & Other Benefits Rs. 0.51 lacs Rs. 0.13 lacs
7. Earning in Foreign Currency :
FOB Value of Exports Rs. 237.70 lacs ( Rs. 799.69 lacs)
(The above figures are exclusive of export realisation for export sales
through Export House, since the sales are realised in Indian currency.
Hence earnings in foreign currency FOB Value of Exports pertain to direct exports only)
8. Expenditure in Foreign Currency :
i. On Capital Expenditure (CIF basis) Rs. Nil (Rs. 2.70 lacs)
ii. On account of Imported Raw material / Consumables Rs. Nil (Rs.
iii. On account of Foreign Travelling & Others Rs. 5.11 lacs (Rs. 1.85
9. As per the information available on records as on 31st March, 1999,
the Company does not have an outstanding dues to Small Scale Industrial
Undertakings as defined under section 3(j) of the Industries (Development and Regulation) Act, 1951.
10. (a) The Company has capacity expansion project under implementation
and since this has not been completed during the current year all expenses and additions of fixed assets to
this expansion project are
capitalised to Capital Work In Progress Account. The balance in this
account will be appropriated to related fixed assets account as and
when the expansion - project implementation is completed and commercial
(b) Net additions for the year on account of exchange fluctuations to
Capital Work In Progress is Rs. 152.36 lacs (Rs. Nil).
11. Previous Year figures are regrouped and rearranged where ever deemed necessary.
12. Figures in brackets represents Previous Year figures.