1. Medium Term Loan : Secured as first charge by way of hypothecation
and charge to the Bank, the entire fixed assets of the Company.
2. Export Packing Credit: Secured as first charges by way of
hypothecation of all stocks of leather, raw, semi-finished, finished
shoes and other leather articles for exports.
3. Loan(s) are secured by specific charge on the assets under the
scheme. The amount also includes unmatured financial charges.
4. Depreciation rate has been changed with effect from December 1993.
However the new rates have been taken for all the assets as per the
Guidance Note of the Institute of Chartered Accountants of India. In
respect of 14 cents of land for which the document has not been
received pending settlement of Rs. 50,000/- (approx.) demand from
Registrar against which the company has obtained a stay order from
the High Court at Madras.
5. Work-in-Progress : Being technical matter, the auditors continue
to place reliance on the certification of the Technical Expert in
respect of quantity and values at different stages of WIP of the
manufacturing activity of the company. Consequent to the above,
valuation of physically ascertained period and inventories of
finished goods, raw materials, stores etc would also be as certified
by the management.
6. The case (CLB) under Sec. 397 * 398 by Peter Huber was disposed
of in favour of the company on 17.01.96.
7. Balance of Sundry Debtors and Sundry Creditors, Loans advances
are under confirmation.
8. Prior period adjustments are included in respective heads of
accounts wherever necessary and disclosure is made in cases where
amounts are material.