1.1 The Company has one class of equity shares having a par value of Rs
10 Per share. Each holder of equity share is entitled to one vote per
share. The Company declares and pays dividend in Indian Rupees. The
Dividend is proposed by Board of Directors and is subject to the
approval of shareholders in the ensuring Annual General Meeting. In the
event of liquidation of the company, the holder of equity share will be
entitled to receive remaining assets of the company. The distribution
shall be in proportion to the number of equity shares held by
2.1 a) Corporate Loan of Rs 7.50 Cr taken from Bank during 2011 is
payable in 35 monthly installments of Rs 0.214 Cr
from April, 2011 and carries interest rate @ 14.50% to 16.25%.
b) Term Loan of Rs 7.06 Cr taken from Bank during 2008 to 2010 is
payable in 48 monthly installments of Rs 0.147 Cr from October, 2010
and carries interest rate @ 13.50% to 16. 25%.
c) Term Loan of Rs 36.00 Cr taken from Bank during the period April
2007 to 2009 is payable in 84 monthly installments of Rs 0.43 Cr from
October, 2010 and carries interest rate @ 13.50% to 16. 25%.
The loans are secured by first Charge on the unencumbered fixed assets
including immovable property of the company. Further the Loan has been
guaranteed by personal guarantee of two Promoter Directors of the
2.2 Interest free Trade Tax Loan is secured by way of Second Charge on
the Fixed Assets inlcuidng Plant & Machinery situated at A-1/2-2 and
2-3 , Site B , Surajpur Industrial Area, Distt Gautambudh Nagar, Uttar
Pradesh. The Deferred Sales Tax due to be paid are as below: on
31-5-2012-Rs 0.82 Cr , on 31-5-2013-Rs 1.24Cr , on 31-5-2014 - Rs 1.15
2.3 Term Loan of Rs 11.53 Cr from Non Banking Financial Institution was
taken in January, 2010 , payable in 48 monthly installments of Rs 0.24
Cr commencing from January, 2011 and carries interest @ 12.25% to
15.25%.The loan is secured by second charge on Plant & Machinery and
other assets( Excluding Land & Building) at Plot No 13-14 Roj Ka Meo,
Sohna , Gurgaon , Haryana.
2.4 The company has taken Vehicles Loan from various banks during
period 2010 to 2012 . These carries interst rate @ 10% to 12% per
annum. The loan are secured against hypothetication of Vehicles
purchased. These Loans are taken for maximum three years and falls due
for repayment in 2012-13 , 2013-14, 2014-15.
3.1 Working Capital Loan ( Cash Credit Facility) from Bank is secured
by First Charge on Hypothetication of Stocks and Receivables and
personal Guarantee of two Directors of the Company . The Cash Credit is
repayable on demand.The same are also collaterally secured by First
Charge on the unencumbered Fixed Assets inlcuding immoveable property
of the Company situated at Sohna, Haryana, Pune, Maharashtra and Gautam
Budh Nagar, Uttar Pradesh except the immovable property ( Industrial
Land only) charged to another bank for Loan against Property Facility.
Further the Loan has been guaranteed by personal guarantee of two
Promoter Directors of the Company
3.2 Loan against Property taken from Bank is secured by First Charge(
Equitable Mortgage ) of unencumbered Industrial Land measuring located
at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat,
Haryana. Further the Loan has been guaranteed by personal guarantee of
one Promoter Director the Company.
3.3 Unsecred Loan from Others are includes Inter Corporate Loan,
repayable on Demand. These carries interest @ 16%per annum. It also
includes Loan from Liife Insurance Corporation secured against KeyMan
Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The
loan carries interest @ 10% per annum.
4.1 Margain Money against letter of credit and Bank Guarantee is kept
in the form of Bank Fixed Deposit (FDs)discharged in favour of Bank .
It includes Fixed Deposits, totalling Rs 3,71,94,000 ( Previous Year-
Rs 145,00,000) the maturity of which is more than 12 months.
5) Contingent Liabilities not provided for : -
a) Letters of credit opened by Bank - Rs 18,91,70,353/- (Previous Year
b) Bank guarantees given by the bank on behalf of Company - Rs.
1,29,85,000/- (Previous year - Rs. 5,85,000/-)
c) Export obligation under EPCG License- Rs 88,62,135/-(Previous Year
d) Guarantees given by the Company on behalf of loan of employees-
Rs.2,37,431 /- (Previous Year Rs. 5,02,123/-)
6 ) Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs 7,25,000 /- (Previous year - Rs.
7) Unclaimed dividend of Rs. 5,98,297/- (Previous Year Rs. 7,96,969/-)
shown under Current Liabilities does not include any amount due and
outstanding to be credited to Investor Education and Protection
8) The Company has issued 10,000 3% Foreign Currency Convertible Bonds
(FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores
at issue) on 07th Apr-2006. These Bonds have matured on 8th April, 2009
and are due for payment. In view of the expiry of contract with
Bondholders and pending settlement with them, the interest on Bonds for
the financial years 2009-10 2010-11 and 2011-12 has not been provided.
However premium on redemption of Bonds for USD 861,000.00 equivalent to
Rs 4,39,11,000.00 has been accounted for and included in Other Payable
under Other Current Liabilities
9) The financial effects of changes in Foreign Exchange rates are as
Net Gains of Rs 904079/- ( Previous Year Net Loss Rs.9,46,209/- ) for
the year on account of exchange difference related to Exports of Goods,
Raw Material and Spares purchased, has been included in Operating
Income . The Exchange Fluctuation on Borrowing has been separately
disclosed in Note No 26 on Finance Cost.
The company has changed the policy for accounting the exchange
differences arising on long term foreign currency monetary items in
accordance with the Companies (Accounting Standards) Amendment Rules on
AS 11 notified by Government of India on March, 31, 2009. Accordingly,
the net loss arising from the effect of changes in foreign currency
rates on foreign currency loans relating to acquisition of depreciable
capital assets amounting to Rs 535.00 lacs has been added to the cost
of Assets. The corresponding impact for previous year was Rs 43.86 lacs
towards the reduction in the cost of Assets due to Net Gains arising
from the effect of changes in foreign currency.
10) Disclosure pursuant to Accounting Standard-15 (Revised) Employee
Effective 1st April, 2007, the Company has adopted Accounting Standard
15 (Revised) Employee Benefits issued by ICAI. The Company has
classified the various benefits provided to employee as under:-
i) Long term compensated absences are provided for based on actuarial
valuation at the end of each financial year.
ii) Provided Fund is a defined contribution scheme and the same is
administered through contributions to Regional Provident Fund.
Contribution to the said Fund paid/payable during the year is
recognized in the Profit and Loss account
iii) Gratuity liability is defined benefit obligation and is fully
provided for on the basis of actuarial valuation made at the end of
each financial year. The actuarial valuation is made on the Projected
Unit Credit method.
iv) Actuarial gains/losses are immediately recognized and are not
11) Debtors and Creditors Balances are subject to confirmation/
12) Investment made in Singur Plant for Tata Motors Ltd (TML) for the
small car project Nano has been treated as Capital Work in
Progress. TML has abandoned the project in Singur due to various
uncontrollable factors. Further, TML has relocated this project to new
location in Sanand in Gujarat.
The company shall relocate the assets along with apportionment of
pre-operative expenditure outstanding in accordance with the decision
of the Board of Directors.
13) Figures of the previous year have been regrouped/recast wherever
necessary so as to conform to the requirement of Revised Schedule-VI.