1. NON CONVERTIBLE DEBENTURES
Non Convertible Debentures of the face value of Rs.20 crores issued to
Oriental Bank of Commerce are yet to be redeemed due to paucity of
funds. Debenture Redemption Reserve has not been created till date in
the absence of operational profits.
2. PREFERENCE SHARES
a) The company has not redeemed the preference shares due for
redemption in October, 2001 and October, 2003 issued to Oriental Bank
of Commerce, due to paucity of funds.
3. CONTINGENT LIABILITIES (Rs. In lacs)
As at 31.03.11 As at 31.03.10
Claims against the company not
acknowledged as debts:
I) Income-Tax demands against which the
department has gone on appeal. 274.00 274.00
II) Sales-tax demands against which
company has gone on appeal. 153.58 153.58
A Sum of Rs. 119.84 lacs has
already been paid/ adjusted against
III) Guarantees issued and outstanding 4245.00 4245.00
4. LEGAL CASES
Some of the banks/institutions where payment of interest / principal
are in arrears, have filed cases against the Company for recovering an
aggregate sum of Rs. 7,948.37 lacs (previous year 12,470.08 lacs) and
the same are pending before various courts. The company is negotiating
for waiver/concessions in interest/principal. Consequently no provision
has been made for interest/ charges on such loans.
Some of the Non-banking finance companies have filed civil/ criminal
cases for recovery of debts and dishonoring of cheques and the same are
pending before various courts.
5. DEFERRED TAX
During the current year, due to timing difference, there has been
decrease in deferred tax liability to the tune of Rs. 1,658,291/-.
6. DIRECTORS'' REMUNERATION
a) As no commission has been paid to the directors, the computation of
Net Profit for the purpose of Directors Remuneration under Sec.349ofthe
Companies Act, 1956isnot enumerated.
7. OTS SCHEME
The Company has fully paid the loans due to a Bank under One Time
Settlement Agreement (OTS) entered with them. As a result, a sum of
Rs.3,142.96 lakhs has been transferred to Capital Reserve due to
remission of the principle.
8. SEGMENT REPORTING
The company has disclosed business segment as the primary segment.
Segments have been identified taking into account nature of products
and services, differencing risks and returns, the organisation
structure and internal reporting system.
The Company''s operations predominantly relate to Manufacture of Iron
Steel Bars. Other business segments are Trading in Empty Bottles.
The company''s entire business is in domestic market as such there are
no reportable Geographical segments.
Segment revenue, Segment results, Segment Assets and Liabilities
include the respective amounts identifiable to each of the segments has
also amounts allocated on a reasonable basis.
The net expenses, which are not attributable to the business segment,
are shown as un allocated corporate cost.
Assets and liabilities that can''t be allocated between the segments are
shown as part of un allocated corporate assets and liabilities
9. RELATED PARTY DISCLOSURES
a) List of Related Parties as identified by the Management are as under
Key Management Personnel of the Company: Shri M Sreenivasulu Reddy
Sl. Enterprises owned by / Over which key Management Personnel are
No. able to exercise significant influence
1. Balaji Hotels and Enterprises Limited
10. The Company''s operations at IMFL manufacturing unit at Jeedimetla,
Hyderabad has been suspended.
11. The furnace division at Nellore is closed and not in operation.
12. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence disclosure requirements in this Regard
as per Schedule VI of the Companies Act, 1956 could not be provided.
However, we have not provided any interest for delay in payment as per
contractual terms, if any, for the enterprises covered under the above
13. In the absence of operational profits during the year, the Company
has not proposed dividend on Preference share capital. Since these
shares are cumulative, the dividend accumulated up to the current year
is Rs. 369,411,530 (Previous year– Rs. 341,661,530 ).
14. The balance of Sundry Debtors, Creditors and Loans and Advances
are Subject to confirmation.
15. Previous year''s figures have been regrouped, reclassified and re
arranged wherever necessary to conform to current year''s presentation.
16. Figures have been rounded off to the nearest rupee.