1a Rights Preference and restrictions attached to the equity shares
The equity shares of the company having par value of Rs.5, per share,
rank pari passu in ail respects including voting rights and entitlement
to dividend and share in the company residual asset.
a. Secured loans are covered by
Term Loan including current maturities are secured by First charge on
all the company''s movable and immovable assets, both present and future
subject to prior charge on specified movable assets created for working
Term loan is additionally secured by the personal guaranteed of three
promoter Directors of the Company Vehicle loans including current
maturities are secured by hypothecation of vehicle against which such
loan has been taken.
b. Repayments terms of outstanding long term borrowings
Vehicle loans are repayable in equal monthly installments over a term
of 3 years
1 In the opinion of the Board, all assets other than fixed assets and
non current investments, have a realisable value in the oridinary
course of business which is not different from the amount at which it
2. The revised schedule VI as notified under the Companies Act, 1956,
has become applicable to the Company for presentation of its financial
statements for the year ending 31st March, 2012. The adoption of the
revised Schedule VI requirements has significantly modified the
presentation and disclosure which have been complied with in these
financial statements. Previous year figures have been reclassified in
accordance with the current year requirement.
3 Contingent liabilities and commitments
Particulars As at 31 As at 31
March, 2012 March, 2011
(i) Contingent Liabilities
(a) Claims against the company not
acknowledged as debt
Demand for entry tax against which the
Company has preferred an appeal 330,000 330,000
Demand for return of Services Tax refund
received against the company has
filed an appeal 487,058
(b) Liabilities on account of unexpired
letter of credit 13,406,416 3,900,496
(c) Pending outcome of legal and other
claims filed by the company, additional
Liabilities that may arise in this respect
on final settlement is currently not
ascertainable and has accordingly not
provided for 14,223,474 4,230,496
4 The Company''s appeal before CESTAT for rejection of refund claim of
cenvat credit of service tax amounting to Rs.2,47,773/- (previous year
Rs.2,47,773/-) for the period from 01.01.2005 to 31.03.2006 has been
decided in company''s favour. However while granting refund an amount of
Rs.239726/- has been rejected against which a fresh appeal has been
filed with CESTST, Bangalore. Also out of the refund claim of
Rs.11,07,720/- (Previous Year 428212/-) for the period from April 2009
to March 2011, Rs.674575/- (Previous Year 158573/ -) has been rejected
against which company has filed an appeal except for Rs.2435/- for
which Company has decided not to file an appeal as filing an appeal
will cost more than the claim amount involved. Claim received during
the year for period prior to 01.04.2009 amounting to Rs.8047/-
(previous year Rs.48611/-) has been credited under other income in
Profit & Loss Account.
5. In the absence of necessary information relating to the suppliers
registered as Micro, Small and Medium enterprises under the Micro,
Small and Medium Enterprises (Development) Act, 2006, the Company has
not been able to identify such suppliers and the information required
under the said Act could not be compiled and disclosed.
Since fair value of plan assets is more than the present value of
obligations no liability/assets or profit/loss has been recoganised in
the Balance Sheet and Profit & Loss Account.
a. Premium paid for the year amounting to Rs.512405/- (Previous year
Rs.300773/-) has been debited to the Profit & Loss Account under
Payments to & for employees.
b. The Plan assets of the company are managed by Life Insurance
Corporation of India and the composition of investments relating to
these assets is not available with company.
6. The company does not have more than one reportable segment in
terms of Accounting Standard - 17 Segment Reporting.
7. Balances of Sundry Creditors, Sundry Debtors, Advances & dues
against term loan are subject to confirmation.
8. As required by Accounting Standard AS-22 on accounting for Taxes
on Income, no deferred tax liability / asset has been computed because
there is no reasonable certainty that sufficient future taxable profits
will be available.
9. There is no impairment loss on any assets in terms of AS-28 issued
by the Institute of Chartered Accountants of India.