(a) 51,71,500 Equity Shares of Rs. 10 each were allotted as fully
paid-up bonus shares by utilisation of Rs. 90,00,000 from Capital
Redemption Reserve and Rs. 4,27,15,000 from General Reserve.
(b) 5,95,000 Equity Shares of Rs.10 each, fully paid up (previous year
5,95,000) were allotted in 1982, without payment being received in
cash, to the shareholders of the erstwhile Gogte Steels Limited in
terms of the scheme of amalgamation sanctioned by the Bombay High
Court. Besides, as per the said scheme, 28,000 - 11 % Redeemable
Cumulative Third Preference Shares of Rs. 100 each were allotted to the
shareholders of the erstwhile Gogte Steels Limited and the same have
since been redeemed.
(c) 81,12,855 Equity Shares of Rs. 10 each, fully paid-up were allotted
on conversion of the 14% Partly Convertible Debentures (2000) of Rs.
125 each on 14th January, 1993.
(d) 69,16,100 Equity Shares of Rs. 10 each fully paid-up were allotted
on 19th May, 1995 to the shareholders of the erstwhile Tata Metals and
Strips Limited on amalgamation with the Company.
(e) 1,709 Equity Shares of Rs. 10 each had been forfeited in 1995-96
for unpaid calls.
(f) 52,81,849 Equity Shares of Rs. 10 each, fully paid up were allotted
on conversion of Part A of the 14% Partly Convertible Debentures (2003)
of Rs. 100 each on 1 st July, 1996.
1. The Non-Convertible portion of the 14% Partly Convertible
Debentures (2003) is secured by a mortgage on the movable and immovable
properties of the Company situated at Borivli and Tarapur. These
Debentures were allotted on 26th February, 1996 and 7th March, 1996 and
are redeemable at par on 26th February, 2003 and 7th March, 2003
2. Working capital facilities from banks are secured by hypothecation
of raw materials, finished goods, stores and spares, work-in-process
and book debts, present and future (other than bills discounted with
banks) and a subservient charge over all movable and immovable
properties of the Company situated at Borivli and Tarapur.
3. Term loans taken from banks amounting to Rs. 4,000 lakhs (previous
year Rs. 3,000 lakhs) are against hypothecation of movable plant &
machinery at Borivli and Tarapur plants and also covered by Corporate
Guarantee of Tata Steel.
(a) Amount of freehold land includes Rs. 357.35 lakhs being the surplus
resulting from revaluation carried out on 31st December, 1988.
(b) Depreciation on leasehold land and flats represents amortisation of
(c) Buildings include Rs. 1,550 (previous year Rs. 1,550), value of 26
shares (previous year 26 shares) of Co-operative Housing Societies
(includes 6 shares in the name of erstwhile Tata Metals and Strips
Limited). Five residential flats in Tata Housing Colony, Andheri
(West) owned by the Company, not disclosed in the asset register
separately at the time of merger of Tata Metals & Strips Ltd. with Tata
SSL Limited nave now been incorporated in the asset register at a
nominal cost. There are restrictions on transfer of these flats.
(d) Arising out of currency swap transaction, exchange rate difference
amounting to Rs. 3.95 lakhs (previous year Rs. 72.77 lakhs) has been
added to the cost of Plant and Machinery.
(e) Includes advances for capital expenditure Rs. 54.51 lakhs (previous
year Rs. 10.18 lakhs).
(f) In respect of tenements acquired from City Industrial Development
Corporation of Maharashtra Limited (CIDCO), the Company has entered
into lease agreements for a term of 60 years on yearly rent of Re. 1
only. For the flats acquired in the buildings constructed by the
Maharashtra Industrial Development Corporation (MIDC), the Company has
entered into a lease agreement for 36 flats for a period of 30 years on
yearly rent of Re. 1 only.
(g) The Company is covered by provisions of Urban Land (Ceiling and
Regulations) Act, 1976, under which an application for exemption was
filed with the Directorate of Industries. The Company has received an
order under Section 20 declaring 9123.24 sq. mtrs. of industrial land
as vacant. As regards residential land, the authorities have exempted
total area of 16155.30 sq. mtrs. out of which 12614.50 sq. mtrs. are
being used for construction of residential flats.
1. Repairs to plant and machinery excludes salaries, wages, stores and
2. The Company has transferred the development rights of residential
land admeasuring 9750 sq. mts. of which 595 sq. mts. constituted
leasehold land, located at Borivli, Mumbai for a consideration of Rs.
648 lakhs. A further transfer of development rights (TDR) for 1863 sq.
mtrs. of land has been executed for a consideration of Rs. 95 lakhs.
Pending execution of a deed for transfer of title in the land, in
compliance with Accounting Standard 10, the value of the said land has
been eliminated from the gross block of assets since no further benefit
is expected from the said land.
3. Disclosures in accordance with Accounting Standard 11:
(a) Amount of net exchange profit included in the profit/floss) for the
year Rs. 94.35 lakhs [Previous year loss of Rs. 7.61 lakhs)].
(b) Amount of exchange loss adjusted in the carrying amount of fixed
assets during the year: Rs. 3.95 lakhs [Previous year Rs. 97.18 lakhs].
(c) The amount of exchange differences in respect of forward exchange
contracts to be recognized in the profit and loss account for the
subsequent accounting period is Rs. 9.72 lakhs.
4. Names of small scale industries to whom the company owes a sum
exceeding Rs. 1 lakh which is outstanding for more than 30 days at the
Balance Sheet date are: Anjaney Ferro Alloys Rs. 16.34 lakhs. Bearing &
Basic Comp. Rs. 1.02 lakhs. Fluid Control Engine Rs. 3.86 lakhs,
Flexible House Company Rs. 1.64 lakhs, Guru Nanak Engineering Rs. 2.35
lakhs, Geeta Timber Mart Rs. 1.94 lakhs, Henkel Chembond Surf Rs. 37.89
lakhs, Jai Suprabha Protect Rs. 5.43 lakhs, J. Mangsun & Company Rs.
1.07 lakhs, Jawahar Leather Work Rs. 1.96 lakhs, J. S. Enterprise Rs.
2.26 lakhs, Kapil Metal Industries Rs. 1.28 lakhs, Metco Rs. 1.19
lakhs, Mec Fab Engineering Rs. 3.98 lakhs, Minar Hydrosystems Rs. 1.04
lakhs, Pinak Industries Rs. 9.83 lakhs, Plyoff Packaging Pvt. Ltd. Rs.
1.44 lakhs. Perfect Paper Cone Rs. 3.31 lakhs, R. Purshottam & Sons Rs.
1.15 lakhs, Sosun Engineering Co. Rs. 1.20 lakhs. Sunny Gloves
Industries Rs. 1.18 lakhs, Super Clean Industries Rs. 1.08 lakhs,
Sunrise Chemicals Rs. 1.33 lakhs, V. Excel Engineers Rs. 2.52 lakhs.
Venture Packaging Rs. 1.79 lakhs. This statement regarding small scale
industrial undertakings has been compiled to the extent such parties
have been identified on the basis of information available with the
company, which has been relied upon by the auditors.
5. Unclaimed interest of Rs. 12,56,322.60 on 13.5% convertible bonds
(interest on non-convertible portion of the bonds) is lying unpaid for
more than 7 years. This matter has been taken up by Tata Group legal
office with Dept. of Company Affairs and Bombay Chamber of Commerce.
Action will be taken on receiving directive from them.
6. As per Accounting Standard 22, the deferred tax liabilities of Rs.
4,406.68 lakhs and deferred tax assets of Rs. 4,238.39 lakhs
ascertained as on 1st April 2001 have been adjusted resulting in a net
decrease to the extent of Rs. 168.29 lakhs in General Reserves. The
estimated performance in future years and implementation of
restructuring plan are expected to generate profits sufficient for
adjustment of past business losses and unabsorbed depreciation which
are included in deferred tax assets.
7. Previous year's figures are regrouped wherever necessary.