1.0 Borrowings of the Company as on March 31, 2009 are secured as
BORROWINGS SECURITY OFFERED
a. Cash Credit and Term/Demand - First charge on pari passu basis on
Loan/L.C Devolvement - Central materials, work-in-progress,
Bank of India, all present & future book debts,
second charge on all block assets of the
Company, along with personal guarantees
of Directors. The entire loan of HDFC
Bank has been settled under OTS during
b. Term Loan-IDBI
The term loan been settled under OTS during the last year, charges are
yet to be released. However, a charge is created on the immovable &
movable properties of the Company, both present and future at
Ayanambakkam, Kilpauk & MM Nagar, but subject to prior charges in
favour the Companys bankers for working capital on the entire current
assets, along with personal guarantees of Directors.
c. Term Loan -IFCI
Immovable and movable properties at Kethanoor Village, Coimbatore
District, both present and future, but subject to prior charges in
favour of the Companys bankers for working capital, on the entire
current assets, along with personal guarantees of Directors.
The above said loans from IDBI and IFCI have been settled. A first
charge will rank first charge on all movable and immovable properties
is to be created in favour of M/s. Shriram Auto Finance on getting No
Objection Certificate from Central Bank of India. Central Bank of India
have a second charge on the immovable properties.
d. Hire Purchase Finance
Assets financed under the relevant agreement, along with personal
guarantees of Managing Director
10.0 Balances with Banks and in sundry creditors, sundry debtors,
advances on capital account and loans & advances are subject to
2 Quantitative particulars
a. Licenced capacity : Not applicable
b. Installed capacity ¦
Not expressible in terms of units due to the existence of a diverse
range of systems, utilizing common Engineering facilities.
3. Pre-operative expenses are in the nature of Revenue expenses
incurred in connection with new Projects of the Company, which have
been classified under Miscellaneous Expenditure pending commencement of
operations at the concerned units.
4. Interest and finance charges include interest on fixed loans Rs.
NIL (Previous year Rs. NIL)
5. Figures of the previous year have been reclassified and regrouped,
wherever necessary, to conform to classification and grouping adopted
in the current year.
6.Included in Sundry Debtors is sum of Rs. 165.40 lakhs (Previous
Year 165.40) being the amount paid to customers by the bankers of the
company against performance guarantees invoked by the customers. The
Company has contested the invoking of the guarantees and is advised
that the amount is recoverable from the customers. In the opinion of
the Company, therefore, there is no liability arising out of these
claims that would require a provision in accounts.
7. No provision has been made in the books of the company towards
interest or other charges that may be payable in respect of the year
under review or earlier years, on the following:
(i) On Hire purchase contracts.
(ii) amounts aggregating to Rs.115.59 lakhs under Unsecured Loan.
8. All balances due to Financial Institutions and Banks as shown
under Secured Loans are due and payable as on March 31, 2009.
9. The Company is of the view that, considering the current and
accumulated losses, it is unlikely that the company will have any
income tax liability in the foreseeable future. No quantification of
deferred tax assets and liabilities has been done for the year.
10. Fixed Assets include a sum of Rs.178.10 lakhs being the cost of
the mould acquired under HP agreement, the liability for which has been
assigned to a third party. The mould has been repossessed by the
financier and the matter is under litigation.
11. Disclosure as required by AS17: Segment Wise Reporting:
During the year under review the company had only one operation -
manufacturing components for Wind Electric Generators. Consequently
segment wise details are not given.
12. Related party disclosure as per AS18:
1.0 Key Managerial Personnel : Mr.V.Ravi Srinivasan, Director
2.0 Associated Companies in which the key
Management personnel is interested : a) TTG Drain Equipments P. Ltd
3.0 Transactions with related parties NIL