of the above 66,21,138 shares (Previous Year Nil) are held by Inox Air
Products Ltd, the holding company
1) Cash Credit and Term Loan from Bank are secured by hypothecation of
raw materials, work in process, finished goods, stores and spares,
entire plant & machinery and other fixed assets, all present and future
Book debts and Guaranteed by Inox Air Products Ltd, the holding
2) Term Loan from ICICI is secured by way of first mortgage and charge
of all immoveable and moveable properties, both present and future
(except book debts), including moveable machinery, machinery spares,
tools and accessiories present and future subject to prior charge
created in favour of bankers on stocks in trade, plant & machinery,
other fixed assets and guaranteed by Inox Air Products Ltd, the holding
1. Contingent Liabilities
Claims against the Company not acknowledged as debts.
Rs. in lacs
Year Ended Year Ended
March 31, 2001 March 31, 2000
i. For excise duty being subject
matter of appeals 140.54 138.50
ii. For other claims 23.09 16.63
iii. For cases pending in Labour Courts
for reinstatement with back wages Amount not Amount not
iv. Guarantees issued by a bank in
favour of Excise Department and others 113.88 34.42
v. Bills Discounted with Banks Nil 102.24
2. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs. Nil (Previous Year Rs. 5.91 lacs).
3. Lease rental charged to the Profit and Loss Account comprise of
finance cost allocated over the life of the lease on an appropriate
basis and the element of cost of assets determined by applying
depreciation rates on straight line method prescribed in Schedule XIV
to the Companies Act, 1956.
4. Certain assets had been acquired by the Company on lease financing
and future obligation towards lease rentals amount to Rs. 32.91 lacs
(Previous Year Rs. 111.50 lacs ).
5. Till previous year, Deferred Revenue Expenditure on account of
additional fee paid on increase in authorised share capital was being
written off over a period of ten years. In the current year the entire
unamortised balance of Rs. 3.46 lacs has been charged off to the Profit
and Loss account. This change in the basis of accounting has resulted
in loss of the year being higher by Rs. 2.97 lacs.
6. During the year Superior Medicare Limited (SML), a subsidiary of
the Company, has been wound up under section 560 of the Companies Act,
1956. Consequent to this, the investments of the Company in SML
aggregating to Rs. 1 lac and loans and advances aggregating to Rs.
33.34 lacs have been written off during the year against which a
provision of Rs. 15.75 lacs was held in the accounts.
7. Majority of the fixed assets of the Company are in the nature of
buildings and plant & machinery, most of which are embedded in the
ground and hence do not need to be physically verifred every year.
However, steps have been taken to carry out physical verification of
all the fixed assets in the next financial year.
8. There is no taxable income for the year and hence no provision for
tax has been made in the accounts.
9. In view of insufficient information from the suppliers regarding
their status as SSI units, amounts due to small scale industrial
undertakings as on 31st March, 2001 can not be ascertained.
10. In the opinion of the Board, current assets, loans and advances
have a value on realisation in the ordinary course of business at least
equal to the-amount at which these are stated in the account.
11. Balances in parties accounts whether in debit or credit are subject
to confirmation by the concerned parties.
12. Previous Year figures have been rearranged/regrouped wherever
necessary to conform to current year's classification.