1. Secured Loans
Non-Convertible Debentures Rs. 1000 lacs issued during October '98 to
IDBI Bank Ltd. are secured against immoveable properties.
2. Balance outstanding in Debtors, Creditors, Advances from Customers,
Loans and Advances, Deposits and certain bank balances are subject to
3. Contingent Liability :
Sales Tax Demand and Penalty disputed and pending in appeal
Liability in respect of Bills Discounted with banks
4. Previous period figures are regrouped wherever necessary to confirm
with current period classification. Previous period figures are not
strictly comparable as the current accounting period is for Eighteen
Months as against Fifteen months for the previous period.
5. After obtaining necessary approvals from Shareholders and Board of
directors, the company has filed a petition with Honourable High Court
of Chennai, u/s. 391 and 394 of the Companies Act, 1956 for merger with
Wockhardt Life Sciences Ltd. The appointed date for merger is January
2, 2000. The Company is awaiting final Sanction of the Scheme of
Merger from High Court, Chennai.
6. Premium paid Rs. 334.67 lacs on redemption of debentures has been
shown below the line in P&L account though as per accounting policy it
is a charge for the period.
7. No remuneration has been provided to Wholetime Director who has
resigned on 27-08-98, since it was decided not to pay the same.
8. Exchange difference arising out of the conversion at the period end
rate charged to Profit and Loss Account is Rs. 2.15 lacs.
9. Closing stock of Raw Materials, Finished Goods and Work-in-Progress
do not include the element of Modvat Credit availed.
10. The Company was considering the Interest paid on loan as Cost upto
last accounting period while valuing the finished Goods and WIP. For
the current accounting period the interest paid has not been considered
as Cost. Because of this, the value of Finished Goods and WIP is lower
by Rs. 8.46 lacs and Profit has been understated to that extent.
11. The cumulative loss of Rs. 714.17 lacs exceeds Subscribed Capital
and Reserves without considering the Share Application Money.
12. Leave Salary has been accounted on cash basis upto last accounting
period. There has been a change in the accounting policy during the
current accounting period by accounting the same on accrual basis.
13. Amounts due to SSI Units is not determined as relevant information
is not available.