1. Notes on term loans:
a) Cash Credit Loan from Bank is secured by hypothecation of all the
present and future stock of raw materials, finished goods (including in
transit), work-in-process, packing materials, stores and book debts.
b) Term loans from Financial Institutions and Bank are secured against
mortgage of immovable assets by deposit of Title deeds ranking
pari-passu with each other and first charge by way of hypothecation of
movables both present and future (save and except book debts) subject to
prior charge on stocks including finished goods and book debts in favour
of the Company's Bankers for working capital facilities.
2. Cumulative preference shares issued by company have become due for
redemption on 6th October, 1996 but due to financial constraints, the
Company has made no payment against these shares till yet.
3. Land includes Rs. 4,88,676/- towards cost of 8.89 acres of land
acquired by the Uttar Pradesh State Government under Uttar Pradesh
Zamindari Abolition and Land Reforms Act, 1950. However, the state
Government has agreed to lease this land to the Company for a period
extendable for another 30 years for which agreement is yet to be entered
with the State Government.
4. The excise authorities seized a part of excise and account records of
the company maintained till date during their visit on 13th February,
1997. Hence the same was into available for verification by the
5. Creditors, debtors and advances are subject to reconciliation and
6. Advances recoverable include Rs. 3,17,510/- being amount recoverable
from U.P.S.E.B. on account of interest on security deposit under appeal
in the Supreme Court.
7. Previous period expenses/ income debited to respective heads in
Profit & Loss Account are Rs. 3,06,123/- (Rs. 27,00,117/-) and Rs.
20,62,158/- (Rs. 36,27,456/-) respectively.
8. The accounts have been prepared for the period of 18 months ended on
31st March, 1997. Previous period figures are also for the period of 18
9. Additional information pursuant to paragraph 3, 4(c) and 4(d) of
Part II of Schedule VI to Companies Act, 1956.