1. Contingent Liabilities not provided for : Nil
2. The production, consumption and stock of Inventories are as valued,
verified and certified by the Management being a technical matter.
3. In the opinion of the Management Current Asses, Loans and Advances,
have a value on realisation in the ordinary course of business equal to
the amount at which they are stated in the Statement of Accounts.
4. Figures wherever shown in brackets are for previous year.
5. SHARE CAPITAL
Out of the Paid-up Equity Capital of the company 33158 (33158) Equity
shares of Rs. 10/- of each were fully paid up shares for consideration
other than in cash.
6. SECURED LOANS
150000 14% Secured Redeemable Non-Convertible portion of Debentures of
Rs. 78/- each privately placed equally with Unit Trust of India and
Canbank Investment Management Services Ltd. and 100000 14% Secured
Redeemable Non-convertible Debentures of Rs. 100/- each, privately
placed with Canbank Investment Management Services Ltd., are neither
redeemed on maturity nor security created pending reference of the
company to BIFR.
ii) BANKS FOR WORKING CAPITAL
Secured by hypothecation of inventories, book debts are guaranteed by
directors of the company. Rs .193 (Rs. 193) being margins retained has
been reduced from secured loans from banks.
iii) GUJARAT INDUSTRIAL INVESTMENTS CORPORATION LTD. (GIIC LTD.)
Term Loan of Rs.7250 (7250) disbursed by Gujarat Industrial Investment
Corporation Ltd. Ahmedabad under the Equipment Finance Scheme is
secured by hypothecation of the equipment including all accessories,
spares, tools, plant and machinery, acquired/to be acquired under the
scheme and guaranteed by two directors of the company.
iv) HIRE PURCHASE FINANCE :
From GSFC is Secured by hypothecation of equipment financed and
personally guaranteed by directors of the company.
Investments include Rs. 3000 (3000) in companies in which the directors
8. CURRENT ASSETS, LOANS AND ADVANCES
i) Inventories are valued, verified and certified by the management.
ii) The valuation of the inventories is done as under :
(i) Raw and Packing Materials At Cost
(ii) Stores and Spares At Costs
(iii) Finished Goods At lower of the cost or
net realisable value.
Costs is arrived at by direct cost method including appropriate
percentage of fixed costs.
No provision or quantification for Excise Duty on finished goods lying
at factories, pending clearance is made. Such non-provision has no
effect on the loss for the year.
During the year finished goods valued at Rs. 617 (8865) have been
written off due to shortages deterioration and time expiry as per
certification by the management and the same has been included in the
B. SUNDRY DEBTORS
i) The Sundry Debtors are net of security deposit. An amount of Rs.
12157 (11958) has been written off being unrecoverable.
C. LOANS AND ADVANCES
i) Loans and Advances include Rs. 5499 (5471), due form Sumex Heroflon
9. CURRENT LIABILITIES AND PROVISIONS
i) No provision for Taxation has ben made in view of loss during the
ii) A sum of Rs. 18936 (21611) received by way of Bills discounted with
NBFC's has been included in Creditors.
iii) No provision for interest has been made on overdue Creditors and
liabilities pending settlement.
10. Interest includes interest on Term Loans, Hire Purchase and
Debentures of Rs. 6413 (Rs. 3375).
11. Preliminary expenses, Public and Right Issue expenses written off
Rs. 168 (Rs. 200).
12. Payments against supplies for SSI and ancilliary undertakings
cannot be ascertained in the absence of detailed information.