1. Contingent Liabilities not provided
for in respect of:
As at As at
31st Dec., 2011 31st Dec., 2010
a) Letters of Guarantees 56.42 56.92
b) Letters of Credit opened 758.92 542.09
c) Customs Duty demands and
penalty under dispute 8.09 8.09
d) Excise Duty demands under dispute 4.26 1.56
e) Service Tax demands under dispute 8.04 7.88
f) Sales Tax demands under dispute
(Amount paid under protest Rs 7.15
Million, Previous period Rs 1.14 Million) 95.78 35.75
2. The Company is a Co-guarantor in respect of borrowings of group
companies. The aggregate amount of said guarantees, extended along with
8 other Co-guarantors are Rs 8,311.10 Million (Previous period Rs
9,056.00 Million). The said guarantees are extended on the basis of
support in the form of undertaking provided by certain other group
companies to the extent of the amount of the guarantees. Further, the
Company is a Co-guarantor along with 14 other Co-guarantors in respect
of borrowings of group companies amounting to Rs 3,500.00 Million
(Previous period Rs 3,500.00 Million).
3. Secured Loans:
a) Working Capital Loans from Banks are secured against hypothecation
of the Company''s stock of raw materials, packing materials,
stock-in-process, finished goods, stores and spares, book debts and all
other current assets of the Company and personal guarantees of Mr.
Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.
b) Vehicle Loans from Banks are secured by way of hypothecation of
vehicles acquired out of the said loan.
4. The Company has availed interest free Sales Tax Deferral under
package incentive scheme of 1993. The sales tax collected during the
deferral period is payable in five annual installments, after
completion of ten years from the year in which the tax was collected.
The next such installment is due on 1st May, 2012.
5. The Company has made a provision of Rs 10.20 Million towards current
Income Tax (Previous period Rs 53.10 Million), after taking into
consideration, the benefits admissible under the provisions of the
Income Tax Act, 1961 and the same is, in the opinion of the Management,
6. The Minimum Alternate Tax (MAT) paid by the Company is entitled to
be carried forward and utilized in subsequent years. In the opinion of
the Management, on the basis of projections and the estimates of future
taxable income, the Company would have normal tax liability within the
specified period to avail such MAT credit. Consequently, the Company
has recognized the MAT credit entitlement of Rs 10.13 Million in respect
of current year (Previous period Rs 17.18 Million).
7. Estimated amounts of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs 2.36 Million (Previous
period Rs 5.14 Million).
8. Capital Work-in-Progress includes advances for capital assets of Rs
1.22 Million (Previous period Rs 3.57 Million).
9. The Company is primarily engaged in manufacturing of Electrical and
Electronic Appliances and there is no other reportable segment as
defined in Accounting Standard 17 on Segment Reporting.
10. The Balance of some of the Debtors, Creditors, Deposits, Advances
and Other Current Assets/Liabilities are subject to confirmation.
11. There are no amounts due and outstanding, to be credited to
Investor Education and Protection Fund.
12. In the opinion of the Board, the value on realization of Current
Assets, Loans and Advances in the ordinary course of the business would
not be less than the amount at which they are stated in the Balance
Sheet and the provision for all known and determined liabilities is
adequate and not in excess of the amount reasonably required.
Note: The information as required to be disclosed under the Micro,
Small and Medium Enterprises Development Act, 2006, has been determined
to the extent of such vendors/parties identified from the available
13. Employee Benefits:
i) Defined Contribution Plans:
Amount of Rs 8.01 Million (Previous period Rs 9.30 Million) is recognised
as an expense and shown under the head Salary, Wages and Employees
Benefits (Schedule-11) in the Profit and Loss Account.
* It is not practicable to furnish quantitative information of
components consumed in view of considerable number of items, of diverse
in size and numbers. Note: The industrial licensing has been abolished
in respect of products of the Company.
14. The figures for the current year are for a period of 12 months as
against 15 months in previous period and hence, are not comparable.
Figures in respect of previous period have been regrouped, reclassified
and recanted wherever necessary to make them comparable with those of