I. SECURED LOANS
a) Nature Of Security
i) Term Loan from RIICO
The company has availed project terms loan of Rs. 3800.00 lacs from
RIICO i.e. 828.95 lacs against Land and 281.25 lacs swapping of term
loan from Axis Bank & balance Rs. 2689.80 lacs for building and Plant &
Machinery stands. Disbursed Rs.3226.16 Lacs upto 31.03.2012. Secured by
way of equitable mortgage / hypothecation of fixed assets present &
future of the company by pari-passu first charge (in terms of
Intercreditor and Security Sharing Agreement executed with DEG, Germany
on 19.12.2008) & guaranteed by Managing Director and secured by
pari-passu second charge on current assets present & future.
ii) External Commercial Borrowing (ECB) from DEG, Germany
The Company has executed ECB Loan Agreements viz Loan Agreement - I dt.
18.12.2007 for US $ 8 Mn. [FC Expenditure] and other Loan Agreement -
II dt. 07.07.2008 for US $ 4 Mn. (stands disbursed on 11.02.2009)
[Rupee Expenditure] with M/s. Deutsche Infestations- und
Entwicklungsgesellschaft mbh, Federal Republic of Germany, for capacity
expansion & modernisation. The above Loan is secured by first ranking
mortgage on the present and future immovable assets and first ranking
hypothecation on all present and future movable assets (other than
current assets and stocks)
iii) Term Loans from Technology Development Board / ICICI Bank Ltd.
Secured by hypothecation of specific assets purchased there against and
guaranteed by Managing Director. Secured by an exclusive charge by way
of hypothecation on all movable properties under the Sponsored Research
& Development program of World Bank (SPREAD) under the agreement dated
6th August, 2003.
iv) Term Loans from Religare Finvest Ltd.
The Company has been sanctioned term loan of Rs. 350.00 lacs from
Religare Finvest Limited for purchase of Plant & Machinery out of which
only Rs. 276.57 lacs was disbursed. This term loan is secured by
hypothecation of specific assets purchased out of term loan and further
guaranteed by the Managing Director & Executive Directors of the
v) Working Capital Loans from banks
Secured by hypothecation of stock of finished goods, semi finished
goods raw material, consumable stores and book debts of the company.
These securities rank pari-passu in favour of various banks viz. State
Bank of Travancore, Canara Bank, Central Bank of India, State Bank of
India, DBS Bank & Exim Bank. Secured by second charge by way of
equitable mortgage of fixed assets and guaranteed by Managing Director.
b) Non fund based limits
Assets charged with Bank also cover security for these limits.
II. UNSECURED LOANS
a) Ministry of Science and Technology under the aegis of CSIR, has
approved a Project under ''NMITLI'' scheme on 30.03.2008 and had
sanctioned unsecured soft loan of Rs. 1503.55 lacs @ 3% rate of
interest out of which Rs. 1493.35 lacs stands disbursed.
b) Lending from LIC Mutual Fund amounting to Rs. 21.70 Crores, secured
by way of issuance of 217 Nos i.e.(during the year company redeemed 8
Nos of NCD at par) Unsecured Redeemable Non-Convertible debentures of
Rs. 10 Lacs each. This was pronounced surplus on objective, being
attained from internal accruals and other sources. In order to save the
interest cost to profitability, lending was assigned, who took over the
said debt and indemnified repayment along with interest accruing.
III. CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.370.57 lacs (Rs. 746.57 lacs) relating
to purchase of Plant & machinery.
IV. RE-LOCATION PROGRAMME
The company has acquired Lease Hold Industrial Plot measuring 50,340
sq.mt from Rajasthan State Industrial Development & Investment
Corporation Ltd. (RIICO), Jaipur vide Plot No. SP2 - 173 & 174, at
Industrial Area Kahrani (Bhiwadi Extn.) Distt, Alwar (Rajasthan) for
relocation of its existing manufacturing unit.
V. CONTINGENT LIABILITIES 2012 2011
Rs. In lacs Rs. In lacs
i) Claims against the company not
acknowledged as debts. 25.93 22.49
ii) Disputed Excise duty (including
penalty of Rs. 215.68 lacs), under appeal
before Central Excise & Serv- 421.36 421.36
ice Tax Appellate Tribunal (Rs.50 lacs
paid as deposit and shown under loans
and advances Schedule - IX )
iii) Disputed from Director General of
Foreign Trade (DGFT) for issue show
case notice relating to not fill 150.72 150.72
full export obligation
iv) Income Tax Demand notice issued by
ACIT. Company not acknowledge as debts,
appeal pending before 41.95 23.45
the CIT (appeal) - VI
v) Cheques discounted with Banks 48.76 123.73
vi) Guarantees given by Banks
(excluding liabilities provided) 136.10 113.10
vii) The company is contingently liable
for payment of interest on delayed
payments made beyond the ap- 54.56 59.13
pointed day during the financial year
as well as on outstanding amount at the
year end to Micro, Small, and Medium
Enterprises under the provisions of
Section 16 of The Micro, Small, and
Medium Enterprises Development Act, 2006.
VI. CURRENT ASSETS, LOANS AND ADVANCES
i) Basis of quantitative particulars given below under item XIV is as
(1) Production figures have been ascertained on the basis of production
report summaries. The opening and closing balances of finished goods
are based on stock records and physically verified inventories. Sales
quantities have been furnished on the basis of sales invoices.
(2) The quantities of different classes of raw materials and components
consumed have been derived by posting in a separate ledger, the opening
quantities & purchases and deducting there from the closing stock. The
quantities for different items have not been ascertained from stock
cards. The Company is still to introduce a procedure for correlation of
materials consumed with production.
(3) Stock of semi - finished, raw material and finished goods includes
slow moving and non-moving stock of Rs.16.27 lacs (16.05lacs). In the
opinion of the Management, no reduction is considered necessary in the
value of the stocks.
(4) Semi - finished goods have been ascertained on the basis of
(5) Finished Goods comprise of varied specifications and include a
number of components. In the absence of a scientific system of costing
in vogue, value of closing stock is worked out, as in the past, by
reducing from the selling price, an appropriate margin towards profit &
(6) In the opinion of the Board and to the best of their knowledge and
belief, Value of realization of current assets, loans and advances in
the ordinary course of business would not be less than the amount at
which they are stated in the balance sheet. Balance of personal
accounts are subject to confirmation for the respective parties.
VII. Previous year figures have been regrouped & rearranged, wherever
required to conform to the revised presentation of accounts.
Note: - Figures in brackets are in respect of previous year
VIII. Notes to financial statements form an integral part of financial