1. Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
2. Corporate loan and working capital from banks are secured by first
pari passu charge on current assets and second charge on all fixed
3. Term/Corp loan and working capital facilities are further secured
by personal guarantee of three promoter directors.
4. Term loan from bank was taken during the financial year 2008-09 and
carries the interest @ 13.75% to 14.5%. The loan is repayable in
monthly instalments as per repayment schedule starting from April 2010.
1. Working capital from banks are secured by first pari passu charge
on current assets and second charge on all fixed assets.
2. Working capital facilities are further secured by personal
guarantee of three promoter directors.
3. Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
1. Aggregate value of quoted investment nil previous year nil.
Unquoted Investment Rs. 15,417,192/- previous year Rs. 18,171,592/-.
2. The shares of subsidiary company sold during the year. The loss on
Investment has been transferred to profit and loss account.
1. Contingent liability not provided in respect of:-
i) Letters of Credit opened by Bank Rs.2653.65 lacs (Previous year
ii) Foreign bills discounted by Banks Rs.2047.81 lacs (Previous year
Rs. 1,481.62 lacs).
iii) Dividend Payable on 6% non convertible cumulative redeemable
preference shares of Rs.20,678,955 (Previous year Rs. 17,861,295) and
6% convertible preference shares of Rs. 5,503,750 (Previous year Rs.
(a) Depreciation has been calculated on straight line method at the
rates given in Schedule XIV of the Companies Act, 1956.
(b) Depreciation on the Assets added / deduction during the year has
been provided on pro-rata basis with reference to the months of
addition / deduction.
3. The Company has received loans from Promoters/ Directors and their
relatives. The same has been grouped under longterm borrowings.
4. The provision has made in the accounts for the present
liabilityforfuture payment of Gratuity to employees ofthe Company in
terms of Gratuity Act, 1972.
5. The company has incurred expenditure on development of production
of various new belts for local and Export market. The company intends
to develop manufacture of speciality belts for the hitec applications
and innovations that are coming in the power transmissions industry and
MF type belts for the new generation packaging machines and EPDM rubber
cover belts for automotive industries. These would be able to withstand
the temps and perform longer.
All the above are new generation products that the company is now
proceeding to manufacture to take care of the future needs of the power
During the year the company has incurred expenditure on development of
new product which are yet to be manufactured commercially, the expenses
incurred up to 31.03.2012 have been carried forward in capital
Opening balance as 01.04.2011 Rs. 38,050,000 Addition during the year
Total Work-in-Progress as on 31.03.2012
6. The Accounting Standard 15 (Revised 2005) on Employee Benefits
issued by the Institute of chartered Accountants of India has been
adopted by the Company as under:
7. The Value of Stocks is as per inventory taken, prepared, valued and
certified by the Management.
8. The Company continues to follow Cash System of Accounting with
regard to reimbursement of Bank interest, charges, commission and fixed
9. The figure of sales shown during the year includes the amount of
Excise, wherever applicable.
10. Book debts, advances, bank deposits and credit balances are taken
subject to their respective confirmation.
11. In the opinion of the Board of Directors, the Current assets,
loans and advances are approximately of the values stated, if realized
in the ordinary course of business. The provision for depreciation and
all known liabilities are adequate and not in excess of the amount
12. Capital Commitment: Estimated value of contracts, remaining to be
executed on capital account to the extent not provided is Nil.
13. Sundry Advances includes deposit to the various government
departments, amount receivable from Excise and Sales Tax departments,
paid to subsidiaries companies and advance towards capital goods.
14. The Company is engaged in the business of Industrial rubber
products and there is no reportable segment as per Accounting Standard
(AS 17) ''Segment Reporting''.
The company has manufacturing facility at Nagpur, India. It is not
possible to directly attribute or allocate on a reasonable basis, the
expenses, assets and liabilities to these geographical segments.
15. Joint Venture Companies: The Company''s interest, as a venture, in
a jointly controlled entity (Incorporated joint venture) is:
16. The Company has foreign subsidiaries known as
1) PIX South America Importacao E Exportacao DeCorreias E Mangueiras
Ltda., Brazil has been closed and advance given to this party transfer
to bad debts.
2) PIX Middle East FZC, UAE. The annual accounts from subsidiary
companies attached herewith.
17. Deferred Tax:
(a) Deferred Tax has been provided in accordance with Accounting
Standard 22 - Accounting for Taxes on income - issued by the Institute
of Chartered Accountants of India.
18. Related Parties'' Disclosures:
1. Names of related parties with whom transactions have taken place
during the year:
(a) Joint Venture Companies
i) PIX Europe Limited
ii) PIX QCS Limited
I) PIX South America Importacao E Exportacao De Correias E Mangueiras
Ltda, Brazil (The above subsidiary closed with effect from 15th April,
ii) PIX Middle East FZC, UAE
(b) Key Management Personnel:
(1) Mr Sukhpal Singh Sethi
(2) Mr Amarpal Sethi
(3) Mr Sonepal Sethi
(4) Mr Rishipal Sethi
(5) Mr Joe Paul
(6) Mr Karanpal Sethi
19. The Company has not received information from vendors regarding
their status under the Micro Small and Medium Enterprises Development
Act, 2006. Hence disclosures relating to amounts un- paid as at yearly
end together with interest paid / payable under this Act have not been
20. Additional information pursuant to the provision of paragraph 3
and 4 of Part II of the Schedule VI to the Companies Act, 1956.
21. The company has foreign subsidiaries known as PIX South America
Importacao E Exportacao De Correias E Mangueiras Ltda, Brazil & PIX
Middle East FZC, UAE. The annual audited accounts from subsidiary
companies have not been received. Hence consolidated Profit & Loss
accounts and Balance Sheet have not been attached. The accounts will be
consolidated thereafter & report will be sent on request received from
22. The previous year figures are regrouped and rearranged to compare
with those of current year.