1) Loan Funds
a) Term Loans from Banks are secured by hypothecation by way of
specific charge on plant and machinery and additionally secured by a
specific charge on buildings, and guaranteed by a Director
b) Cash Credit, Packing Credit, Bills and Other Loans from Banks are
secured by hypothecation of raw materials, work in process, finished
goods, book debts on paripassu basis and goods covered by the Bills /
Letters of Credit and Fixed deposits with banks, first charge on
specific machinery and second charge on the fixed assets of the
company, and guaranteed by a Director.
c) Term Loans from financial institutions are secured by first charge
on fixed assets of the company (excluding those charged to Company's
Bankers) on pari passu basis and on movable properties including
movable Plant & Machinery, Spares, Tools and other movables both
present and future (save and except book debts) subject to charge
created or to be created in favour of bankers on stock of raw
materials, semi-finished goods and finished goods, and also secured by
charge on building under construction and guaranteed by a Director.
d) Car loans/HP loans given by Non-Banking Finance Companies are
secured by mortgage/hypothecation of specific assets as per the
e) Unsecured Loan others includes : 1999-2000 1998-99
Rs. in thousands Rs. in thousands
i) Short Term Loan from Banks 24313.87 6743.00
ii) Guaranteed by Director 40175.00 36026.00
2) Certain Fixed Assets held in the name of erstwhile Shree Products
Limited (since merged with the Company) are in the process of being
changed in the name of the Company.
3) a. Capital work-in-progress under fixed assets includes advances of
Rs 11438.43 thousands (Previous year Rs 33596.93 thousands) made to
builders and promoters of flats in respect of which legal formalities
connected with registration of undivided portion of land are pending.
b. Work In Progress under fixed assets amounting to Rs 37801.08
thousands (Previous year Rs 37801.08 thousands) are relating to
projects pending commencement which is outstanding for a long time
since the project has not yet been taken up on certain technical
grounds. The amount has not yet been written off pending final
decision to be taken regarding continuation or otherwise of the
projects. Included above, a sum of Rs 17803.96 thousands (Previous
year 17803.96 thousands) being advance made for purchase of plant and
machinery. In the opinion of the Directors the said sum is considered
good, and is adjustable against supply of machinery required for other
divisions of the company.
4) a. Revaluation of Buildings on Lease Hold Land And Plant And
Machinery of the Pharmaceutical Closure division carried out by an
approved valuer as at 31st March 1990 and as at 31st December 1997, has
resulted in an increase in the Gross Value of the Assets over the
Original Cost by Rs 29923.65 thousands (Buildings Rs 8560.83 thousands
& Plant and Machinery Rs 21362.82 thousands). Out of the above, Rs
189.92 thousands pertaining to Plant & Machinery has been withdrawn on
account of sale of the said assets in earlier years.
b) Further, revaluation of land buildings including buildings on lease
hold land and plant and machinery including plant and machinery under
installation of the tyre division at Chennai carried out by an approved
valuer as at 30th June 1992 and as at 31st December 1997 has resulted
in an increase in the gross value of assets over the original cost by
Rs 59135.52 thousands (land Rs 13695.70 thousands, buildings Rs 3330.13
thousands and plant & machinery Rs 42109.65 thousands) Out of the
above, Rs 3403.99 thousands pertaining to land Rs 1.78 thousands
pertaining to plant & machinery and Rs 130.17 thousands pertaining to
Building have been withdrawn on account of sale of the said assets in
c) The increase in the gross value of the assets at Pharmaceutical
Closures division over their book value as at 31st December 1997 on
account of the revaluation made on 31st December 1997 is Rs 16452.44
thousands (Buildings Rs 4340.12 thousands & Plant & Machinery Rs
12112.31 thousands) The increase in the gross value of the assets at
Tyre divisions over their book value as at 31st December 1997 on
account of the revaluation made on 31st December 1997 is Rs 21012.90
thousands (Land Rs 10291.72 thousands, Buildings Rs 2542.61 thousands &
Plant & Machinery Rs 8178.56 thousands).
d) The net increase in value resulting from the revaluation of Rs
89059.17 thousands is adjusted against the revaluation reserve.
e) The accumulated depreciation upto 30.09.2000 computed on the basis
of revaluation of the above and adjusted against the revaluation
reserve is Rs 38492.42 thousands (previous year Rs 31849.09 thousands)
f) Gross depreciation for the current year is Rs 73253.16 thousands
(previous year Rs 55358.40 thousands) includes Rs 6643.33 thousands
(previous year Rs 7578.99 thousands) pertaining to revalued portion
Amount equivalent to that has been transferred from the Revaluation
5) a. Sales include Labour Charge receipts.
b. Other Income include profit on sale of shares held in Equatorial
International Ltd. amounting to Rs 840 thousands (Previous year Rs
6) Pending confirmation, reconciliation and consequential adjustments
if any balances in respect of certain receivables/payables and certain
bank accounts are adopted in the accounts as per the General Ledger.
7) Equatorial International Ltd, has ceased to be a subsidiary company
consequent to sale of 40000 equity shares of that company.
8) Provision for Taxation
Provision for tax of Rs 1000 thousands pertains to Minimum Alternate
Tax (MAT) for the A Y 2000-01. Provision for taxation for the period
from 1.4.2000 to 30.9.2000 will be made at end of in the financial
pertains to AY 2001-02.
9) In the opinion of the Board, (i) Current Assets, Loans & Advances
are approximately of the value stated if realised in the ordinary
course of business (n) all the necessary provisions have been made and
there are no liabilities other than that stated in the balance sheet.
10) Previous period's figures have been regrouped/rearranged wherever
necessary to confirm current periods classification.
11) Statements are prepared for the period of 18 months i.e. from 1st
April 1999 to September 2000 whereas previous period consists of 15
months from 1st January 1998 to 31st March 1999. As such figures of
the current period are not comparable with those of previous period.
12) Interest payable on loans from certain companies is accounted on
cash basis. The amount due on accural basis for the year is Rs.
2181.00 thousands (Previous year Rs. Nil).
13) Unpaid dividend of Rs. 3087.85 thousands for the year 1998-1999 has
not been deposited in a special bank account opened by the company in
that behalf with the scheduled bank. Out of this, an amount of Rs
2431.74 thousands is payable to the promoters, their relatives and
14) The disclosure in respect of quantitative details in compliance for
para 3(i)(a) and para 3(ii)(a) of part II of Schedule VI of the
Companies Act' 1956 has not been furnished. The company has made an
application to the Central Government for renewal of the exemption
which was granted in the earlier year by the Central Government vide
order no 46/120/99-CL-III dated 176.99.
15) In the frame manner, the company has not furnished the capacity
particulars in compliance of Para 4C of Part II of Schedule VI to tho
Companies Act, 1956 pending approval for the company's application
seeking exemption from disclosure of such particulars.
Rs. in thousands Rs. in thousands
16) Estimated amount of Contracts
remaining to be executed on
capital accounts not provided for 196657.28 301352.95
17) Contingent Liabilities not provided
a) Guarantees given by the company
on behalf of
i) Subsidiary Company 82500.00 104500.00
ii) Others 342431.00 524599.00
b) Disputed Income lax Demand
contested in appeals not
provided for 4093.00 4093.00
c) Liability to banks on Letters of Credit
(secured by first charge on plant and
machinery and other fixed assets other
than those specifically charged to
other banks and first charge on
paripassu basis with other banks on
current assets covered by LCs)
(includes Rs 40000 thousands
guaranteed by a Director)
d) Liability to banks on Letters of 39526.00 39832.56
Guarantees (including guarantee
given for deferred credit liability
towards acquisition of plant & machinery)
e) Claims filed against the company not
acknowledged as debts. 4574.00 --
18) a. Sundry Creditors include
- Commission due to Managing Director 2422.07 2422.07
- Salary due to Managing Director 486.00 --
- Due to Directors 8.50 1 00
- Due to Small Scale Undertakings 3480.44 3095.00
Names of small scale undertakings
to whom Company owes sum exceeding
Rs 1.00 lakh which is outstanding
for more than 30 days
- Ampol Pvt Ltd
- Bansal Metalic Oxides
- Unique Systems & Radials Pvt Ltd
- Elgi Rubber Products Ltd
- Balaji Rubber Industries (P) Ltd
- Kadwani Chemicals
- Suyash Industries
b) Loans and Advances include Rs. 53430 thousands (Previous year Rs.
12083 thousands) due from a subsidiary company.
c) Sundry debtors include Rs 9712.87 thousands (Previous year Rs
4213.00 thousands) due from a subsidiary company.
19) Auditors' Remuneration including Branch Auditors
i) Statutory Audit 275.00 162.50
ii) Tax Audit 75.00 25.75
iii) Certification 30.00 25.00
iv) Expenses -- 34.77
v) Tax Matters 70.00 --
20) Details of Managerial Remuneration
Salaries and Allowances 1360.00 960.00
Commission on net profits -- 2500.00
Contribution to Funds 210.00 162.00
Perquisites 24.00 62.00