1. Secured Loans
a) The Term Loans from IDBI, Dena Bank, ICICI Bank Ltd., Laxmi Vilas
Bank Ltd., India Debt Management Pvt. Ltd., Deutsche Investment India
Pvt. Ltd, Goldman Sachs (India) Finance Pvt. Ltd., Power Finance
Corporation Ltd. are secured by a registered mortgage of the fixed
assets except the thermal power plant.
b) The Foreign Currency Loan from FMO, Netherlands is secured by the
first exclusive mortgage on thermal power plant.
c) The Loan from Religare Finevest Ltd. is secured by equitable mortgage
against some property of the Company.
d) The working capital facility is secured by a charge on the Current
e) The aforesaid Loans, in addition to the security are guaranteed by
some of the Directors.
2. Inventory of Raw Materials, Consumables, Stores, Packing Material
and Work-in-Progress, are valued at weighted average cost basis,
certified by the management. Finished goods and semi finished goods are
valued at lower of cost (inclusive of excise duty, if paid) and net
3. Depreciation on Fixed Assets has been provided as per schedule XIV
to the Companies Act, 1956. The Company has worked all the three shifts
during the period and it is a continuous process plant and the
depreciation has been provided on time related basis.
4. The production facilities of Polymer Division have been leased to
M/s. Sanghi Polymers Pvt. Ltd. (SPPL) with effect from 1st April, 2003
till the process of hiving off of Polymer division is completed with
necessary approvals. The lessee has also taken over the obligation of
the servicing of the debt secured by the said assets. The lease rent of
Rs 15 lacs for the period is charged, as such the same is not considered
as a separate segment.
4. Disclosure of Sundry Creditors under Current Liabilities is based
on the information available with the Company regarding the status of
the suppliers as defined under the Micro, Small and Medium Enterprises
Development Act, 2006. Amount overdue as on 30th June, 2011 to Micro,
Small and Medium Enterprises on account of principal amount together
with interest, aggregate to Rs Nil (previous year Rs Nil).
5. (i) Income Tax : No provision for Income Tax is made in the current
period in view of the computation of income resulting in loss as per
the provisions of the Income Tax Act, 1961
(ii) MAT credit entitlement for the current period Rs 3.10 crore (P.Y
Rs 34.20 crore accumulated over till 31st March, 2010.)
(iii) The Deferred Tax Liability and Deferred Tax Assets as on
30.06.2011 computed as per AS 22 is given as under :
6. Related Party Disclosure :
a. Key Management Personnel:
Mr. Ravi Sanghi Vice-Chairman & Managing Director
Mr. Aditya Sanghi Executive Director
Mr. Alok Sanghi Executive Director
Mrs. Bina Engineer Executive Director
b. Particulars of remuneration paid to Vice-Chairman & Managing
Director and Executive Directors are given in note No. 12 of this
c. As informed, there are no subsidiaries or associate companies.
7. a. Provisions involve substantial degree of estimation in
measurement and recognised where there is present obligation as a
result of the past events and it is probable that there will be an
outflow of resources.
b. Contingent liabilities are not recognised but disclosed in notes.
c. Contingent assets are neither recognised nor disclosed in financial
d. The claims against the Company not acknowledged as debt amount to Rs
126.35 crore (Previous year Rs 74.83 crore) and interest and penalty
thereon as may be decided at the time of disposal of the claim. Against
above, the Company has deposited a sum of Rs 54.24 crore ( Previous Year
Rs 42.41 crore) with respective authorities as deposit.
e. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs Nil ( Previous year Rs
8. Foreign currency exposure that are not hedged by derivative
instruments or otherwise as on 30th June, 2011 amount to Rs 202.75 crore
( Previous Year Rs 186.46 crore )
9. The accounting period is extended from 31st March, 2011 to 30th
June, 2011, i.e. for a period of 15 months. The previous year''s figures
have been regrouped/reclassified wherever necessary and are not
10. Additional information pursuant to the provisions of paragraph 3,
4C and 4D of Part (II) of Schedule VI to the Companies Act, 1956 is as
under (certified by the management) :
IV Actuarial Assumption:
1. Discount Rate 8.50% p.a
2. Salary Escalation 6% p.a