1. SECURED LOANS:
a. The Term Loan dues to Industrial Development Bank of India, The
Industrial Finance Corporation of India Ltd, The Industrial Credit and
Investment Corporation of India Limited, Industrial Investment Bank of
India, Vijaya Bank, State Bank of India and Union Bank of India are
secured by a First Charge on pari-passu basis in favour of the said
Financial Institutions and Banks on the Company s immovable properties,
both present and future. The Funded Interest Term Loans from Banks are
secured by a second charge on the Companys Fixed Assets. The Term
Loans have been guaranteed by two Directors in their personal
b. Industrial Development Bank of India, The Industrial Finance
Corporation of India Ltd., The Industrial Credit and Investment
Corporation of India Ltd.. Industrial Investment Bank of India Ltd.,
have the option to convert at par a portion of their Term Loans to
Equity Share Capital which may be exercised at one or more occasions
but not exceeding 20% of the Loan during the currency of the Loan.
c. Cash Credit account from Banks are secured by hypothecation of
stocks of raw materials, work-in-process, Consumable Stores, Finished
goods and book-debts. The Cash-Credit borrowings have been guaranteed
by two Directors in their personal capacities
2. Estimated amount of commitments on account of contracts on Capital
account and not provided for (net of advances) Rs. 32.00 Crores
(Previous Year Rs. 32.00 Crores).
3. Demand for an amount of Rs.42.89 lakhs (Previous year 42.89 lakhs)
from Tamilnadu Sales Tax Authorities and Rs. 104.84 lakhs from Central
Excise Authorities, Guntur is disputed and hence not provided for.
4. Inventories have been taken as valued and certified by the
5. No Provision is made towards income tax in the absence of taxable
6. Confirmation of Balances from Debtors/Creditors including Banks and
financial Institutions are awaited.
The Government of Andhra Pradesh, vide G.O.Ms. No. 390, dated
26.06.1982, 641 dated 31.12.1983 and 288 dated 16.02.1983 granted lease
for 250 acres of factory/ colony land and 500 acres for mining for a
period of 50 years for selling up the factory. The Company also
created mortgage in favour of the financial institutions after
obtaining necessary approvals from the concerned authorities. The
Company has also been paying lease rentals by way of deposit with the
Endowment Department and solar, an amount of Rs. 18.95 lakhs has been
paid towards lease rentals, which will be adjusted as and when the
lease agreement is finalised.
8. Pending quantification, no provision is made in the accounts for
lability in respect of gratuity and leave encashment payable to
9. The winding up order passed by BIFR has been appealed to AAIFR
which has been admitted on 26.09.2005. In the meanwhile, the Company
has made OTS with all the Secured Creditors barring IFCl &IIBI with
whom the Discussions are in the advanced stage of finalisation. AAIFR
has directed IFQAIIBI to settle the OTS quicldy so that the DBS can be
reviewed. The Directors are confident that the settlement with IFCI &
IIBI will be fothcoming soon and thereafter shall obtain DRS approved
by the competent authority paying the way for the ultimate revival of
the Company. No provision for interest on all Term Loans and
compounding of interest and other charges on loans from Financial
Institutions has been made for after the period of cut-off date. ie.
31.3.1996- Provision for interest on Funded Interest Term Loan has also
not been made since 1-4-93. The accumulated interest not provided for
as stated above upto 31.032006 is Rs. 2649.13 lakhs (Previous period
10. (a) Interest on Term Loan from banks has not been provided since
01.01.1998. The amount aggregates to Rs. 621.21 Lakhs (Previous Period
(b) Accumulated interest upto 31.03.06 on Funded Interest Term Loans
given by commercial banks amounting Rs. 384.95 lakhs (Previous Period
Rs.355.33 Lakhs) has not been provided, but shall be debited to Profit
& Loss Account as and when the payment is made.
(c) Vijaya Bank. SBI and UBI has communicated their in Principle
Acceptance-for a One Time Settlement amount of Rs. 250.00 Lakhs. Rs.
148.00 Lakhs and Rs. 60.00 Lakhs respectively against the Term Loans
and Working Capital, out- standing dues to the Banks. Amount of Rs.
250.00 Lakhs to Vijaya Bank. Rs. 109.00 Lakhs to SBI and Rs. 60.00
Lakhs to UBI against the settlement amount is already paid by the
11. Depreciation to an extent of Rs. 760.76 lakhs has not been
provided upto 31.03.2001, on Plant & Machinery and Electrical
Equipments installed during the expansion in 1995-96, as these could
not be put to use to the full extent due to shortage of working capital
and the same shall be provided in the year company making profits.
12. In the absence of profits deferred Revenue Expenditure has not
been written off during the Period.
13. The amounts shown as expenditure are net of recoveries, wherever
14. The accounts of the Company is prepared on a going concern basis,
inspite of the huge accumulation of losses, as the Management is
confident of reviving the unit keeping in view the upsurge in the
Cement Industry, and improvement in the operation.
15. NOTE ON SSI DUES:
In the absence of adequate information, and considering the
multiplicity and dffliculty in identification of accounts of such
undertakings, particulars hi respect of dues to SSI undertakings, as
required in Schedule VI of the Companies Act, 1956 is not furnished.
16. RELATED PARTY DISCLOSURE :
In accordance with Accounting Standard-18, Related Party
Disclosures*, issued by the Institute of Chartered Accountants of
India, the Disclosures are as follows:
17. Segment Reporting
The Company is a single product company and operates only in the
Domestic Segment only in South India. Hence, the information required
to be disclosed as per AS-17 on segment reporting is not applicable.