1. Security Clause :
Working capital loans from consortium of bankers are secured by first
charge on the Company''s current assets, present and future, including
stocks, goods in process, goods in transit, receivables and book debts.
These loans are further secured by pari passu charge by joint equitable
mortgage of immovable properties of the Company situated at village
Jambhulwadi in district Sangli and at village Velapur in district
Solapur in Maharashtra.
The above loans are further secured by personal guarantees of some of
the Directors of the Company.
Vehicle loans are secured by hypothecation of respective vehicle.
2. Deferred Tax :
In view of the losses incurred by the Company during last few years,
the Company has accumulated net deferred tax asset of Rs. 567.00 lakh
as on 31/03/2012 (Previous year- Rs. 575 lakh) in terms of provisions
of Accounting Standard 22 Accounting for Taxes on Income.
Following prudent accounting policy and the guidelines contained in the
Accounting Standard, the management has decided not to make adjustment
in the books of accounts for the value of the said deferred tax asset
until such time that there is reasonable certainty of realisation
thereof against sufficient future taxable income.
Current Year Previous Year
Rs. in lakhs Rs. in lakhs
3.Contingent liabilities :
a) Claims against the Company not
acknowledged as debt Excise
duty claims disputed in
appeals 141.62 50.32
b) Letters of credit and bank
guarantees outstanding 231.09 142.59
(netof margin deposits)
4. Exceptional income :
Exceptional income during the current and the previous year comprised
of profit on sale of surplus land at non plant location.
5. Earnings in Foreign Currency :
There were no exports or earnings in foreign currency during the
current or the previous year.
6. There were no outstanding dues payable to micro, small and medium
enterprises as on the balance sheet date. Classification of suppliers
as micro, small and medium enterprises is done as per information
provided by the supplier. No interest is paid/ payable during the year
to such enterprises.
7. Balances of debtors, advances and creditors are subject to
8. Previous year figures are reclassified/ regrouped, where required,
to conform with current year presentation.