1.1 Non-Convertible Debentures from KSFC referred above is secured by
way of hypothecation of Stock of Current Assets, Semi-Finished,
Finished Goods and Book Debts, Machinery & Equipment, both present and
future and also guaranteed by the Directors personally.
1.2 Loan from Central Bank of India consists of the following long
- Foreign Bills Purchased 43,34,400
- Packing Credit 16,00,000
(The above loans are secured by way of hypothecation of multimedia
titles and movable property, stock-in-trade and foreign bill to the
extent of Rs. 45 Lakhs and secured by the Directors personally).
1.3 The Long term borrowing balances are subject to confirmation.
1.4 No provision has been made till date in respect of interest on the
loan balance claimed by Central Bank of India as the same has been
contested by the Company, which is pending for settlement.
1.5 The Company has made provision for interest in respect of
non-convertible debentures issued in favour of Karnataka State
Financial Corporation as per the sanction terms. The Corporation has
filed a suit against the Company for recovery of the debenture
redemption amount along with interest, which the Company has contested.
2 Contingent Liability on account of Current Year Previous Year
(Rs. in Lakhs) (Rs. in Lakhs)
Interest claimed by
Central Bank of India 28.27 28.27
not acknowledged as debt
by the Company
Amount claimed by Tata
Finance Limited 7.10 7.10
not acknowledged as
debt by the Company
Amount claimed by Income
Tax Department 3.93 3.93
towards Income Tax and
Interest U/s 201(1A)
3. Balances under unsecured loans, other liabilities, in deposit
account with banks, margin money held on FBP with Central Bank of India
and other loans and advances are subject to confirmation wherever
4. No provision has been made till date in respect of the claim made
by Tata Finance Limited as the arbitration award has been challenged by
the Company before the City Civil Judge, Bangalore.
5. No provision has been made in respect of claim made by the Income
Tax Department towards Income Tax and Interest U/s 201(1A) and 220(2).
6. There are no Micro and Small enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at 31st March
2012. This information is required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006. Has been determined
to the extent such parties have been identified on the basis of
information available with the Company.
7. Managerial Remuneration: Paid/or payable during the year in
respect of Directors of the Company is Rs. NIL (Previous Year: Rs. NIL)
8. Earnings / Expenditure In Foreign Currency during the year is Rs.
NIL (Previous Year: Rs. NIL).
10. Related Party Transactions: Name of the related party - Kirloskar
Multimedia, Inc., - No transactions during the year.
11. No provision has been made for taxes on income as the Company has
incured losses during the year and Deferred Tax Asset is not created in
the absence of certainty of sufficient future income against which
Deffered Tax Asset can be realized.
12. The Petition for reduction of share capital is pending before the
Honorable High Court of Karnataka.