SCHEDULE - 20 : NOTES TO THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
1. a) Equity Shares include 7,88,344 shares alloted without payment
being received in cash.
b) 9.5% non-cumulative preference shares include 51,684 shares allotted
without payment being received in cash.
c) The Preference shares are redeemable at par on or before 31st March,
2002 as per BIFR's Sanctioned Scheme of rehabilitation and consented by
the preference share holders in the meeting held on 8th December 1995.
2. Reserves and surplus represent the revaluation surplus of buildings
and plant and machinery of Rs. 516.37 lakhs which stood at Rs. 648.43
lakhs on 31st March 1987.
3. In accordance with the BIFR's Sanctioned Scheme, the Promoter and
his Associates have infused an amount of Rs. 943.00 lakhs consisting of
Rs. 500.00 Lakhs towards share capital and Rs. 443.00 lakhs being
interest-free unsecured loan.
4. (a) As per BIFR's Sanctioned Scheme of rehabilitation and consented
by the debenture-holders in the meeting held on 7th December 1995 the
debentures were to be paid on or before 31st March, 1996. The
repayments are being made on compliance of requisite formalities by the
respective debenture holders.
(b) Debentures have been secured by a floating charge on all assets
(other than immovable properties and other fixed assets) present and
future, subject to prior charge in favour of banks as per note 5 below.
5. Loans from Banks:
(a) Cash-Credits are secured by the hypothecation of stock-in trade and
book debts and equitable mortgage and hypothecation of fixed assets
other than those mortgaged against Bank Guarantees.
(b) Working capital & funded interest term loans are secured by
equitable mortgage of immovable property and hypothecation of all
movable machineries and accessories, present and future.
(c) All the dues to the banks are guaranteed by Mr. Ashok Muthana, the
Chairman of the Company, in his personal capacity.
(d) As per the BIFR's Sanctioned Scheme the working capital and funded
interest term loans from Bank of India and accumulated interest thereon
outstanding as on 31st March, 1995 have been converted into fresh
working capital & funded interest term loans repayable in three annual
(e) As per the BIFR's Sanctioned Scheme, the Company has effected one
time settlement of dues of Bank of Maharashtra, The United Western Bank
Ltd. & The Sangli Bank Ltd. representing various working capital and
funded interest term loans and outstanding accumulated interest thereon
as on 30th September 1994. The entire such dues (net of concessions)
have been repaid. The banks have however, yet to cede their respective
6. Sales Tax Loan from Govt. Of Maharashtra represents the assessment
dues converted into term loan. Sales Tax authorities have created a
charge of Rs. 28.66 lakhs on land. The same was to be vacated as per
the earlier scheme sanctioned by BIFR. The charge is yet to be vacated.
7. The company has not accepted/renewed deposits from the public
during the year. The Company is however, holding deposits in excess of
the limits prescribed under the Companies (Acceptance of Deposits)
Rules, 1975. As per the BIFR's Sanctioned Scheme of rehabilitation and
consented by the deposit holders in the meeting held on 7th December
1995, the deposits are repayable on or before 31st March 1996. The
repayments are since being made on compliance of the requisite
formalities by the respective deposit holders.
8. Premium paid to Life Insurance Corporation of India for Death cum
Retirement insurance policy for gratuity payable to staff is charged to
profit & loss account. The difference, if any payable over and above
the claim received from the Life Insurance Corpn. Of India and gratuity
payable to worker (not covered under the said policy) are accounted for
on cash basis. The actuarial valuation of gratuity payable to workers
not provided for is Rs. 227.34 lakhs (Previous year Rs. 237.13 lakhs).
9. Current liabilities include Rs. 3.00 lakhs (previous year Rs. 3.00
lakhs) and Rs. 0.70 lakhs (Previous year Rs. 0.70 lakhs) being
unclaimed interest on Debentures and Deposits respectively.
10. Amount of Rs. 0.48 lakhs (Previous year Rs. 0.25 lakhs) is due to
11. Claim of Rs. 29.08 lakhs (Previous year Rs. 29.08 lakhs) made by
customs for difference in duty, contested by the Company has not been
12. Claim from Director General of Supplies and Disposals, New Delhi of
Rs. 44.80 lakhs (Previous year Rs. 44.80 lakhs) towards risk
purchases and general damages have not been provided for. Out of the
above, claim of Rs. 14.69 lakhs have been awarded for Rs. 8.82 lakhs by
the arbitrator and the same is contested by the Company and hence has
not been provide for.
13. Excise Duty Demands of Rs. 64.79 lakhs (Previous year Rs. 114.14
lakhs) contested by the Company have not been provided for. The matters
are referred to the legal Advisors of the Company for contesting the
demands. However, there is contingent liability to that extent.
14. Debtors and Creditors are subject to confirmation and
reconciliation. The Debtors are in the opinion of the management
approx. of the value stated, if realised in the ordinary course of the
15. Contingent liability on account of:
a) Letters of Credit from banks Rs. 1.79 lakhs (Previous year 46.08
b) Capital contracts remaining to be executed Rs. nill (Previous year
Rs. 6.06 lakhs)
16. Other claims against the Company not acknowledged as debts and not
provided for amount to Rs.11.99 lakhs (Previous year Rs. 9.53 lakhs).
17. Consumption of raw materials include material purchased for the
sale of Rs. 14.03 lakhs (Previous year Rs. 40.28 lakhs).
18. Prior year adjustments(net) of Rs.45.16 lakhs Debit (Previous year
16.77 lakhs Credit) are included in Miscellaneous Expenditure (Previous
Year Other Income).
19. The Current year is of Fifteen months while previous year was of
Eighteen months. As such, figures of previous year are not comparable.
20. Previous year's figures have been regrouped/rearranged wherever