1. The Comp. has availed non funding facilities from its bankers. In
this connection Rs.61,12,509/- [previous year Rs.32,82,358/-s] are kept
with banks as lien/margin money against letter of credit opened by the
bankers & guarantees issued by them. Contingent liability for bills
discounted with Dena Bank amounted to Rs.50,48,226/- [since realized
fullys].
2. The Comp. has stated its long term investments in shares at cost.
However, the investment of Comp. in shares of Bharat Pipes &
Fittings Ltd., worth Rs. 32,74,982/- has not been quoted the said
Bharat Pipes and Fittings Limited is in the possession of liquidator.
3. Regarding leased assets taken from Canara Bank, Bangalore, the
matter is pending before the Bangalore City Court against the
Arbitrators Award. In view of this no provision is made fro lease rent
in the accounts.
4. The Corporation Bank has filed suit in Bombay High Court against
Company for recovery of their dues. A receiver has been appointed for
stock and Debtors of Vapi factory & the court receiver has taken charge
of stock and Debtors of Vapi factory. No adjustment is made in the
accounts for dues of Corporation Bank, Stock & debtors of Vapi
unit which will be adjusted mutually when realized.
5. 16% 200000 Non convertible debenture of face value of Rs. 100/-
each privately placed with Bank of India Mutual Fund was due for
redemption on 19.03.1998. A sum of Rs. 10,00,000/- is payable as
redemption premium for which no provision has been made in the
accounts, since the Debenture holders have filed suit against company
and receiver has been appointed for Companys Factory at Vapi which was
closed unit. On sale of Land and Building & Plant and Machineries the
final adjustments will be made in accounts.
6. Debtors & Creditors balances are subject to confirmations from
the parties.
7. The Comp. has not ascertained liability towards payment of
gratuity & hence no provision has been made in accounts.
8. Depreciation is provided on assets only for period for which
assets have been used for production activities.
9. In the opinion of Board of Directors the Current Assets, Loans
& Advances except those shown as doubtful have a value on realization
in the ordinary course of business at least equal to the amount at
which items are stated in the Balance Sheet.
10. The Comp. operates in a single segment namely 'Polymer
Processing'. Hence segment wise reporting as defined in AS 17 of ICAI
is not applicable.
11. The Comp. has approached UTI for reschedulement of NCD and
unsecured loan which is under active consideration the effect of the
will be given on the finalization of terms with UTI. However interest
upto 31.12.99 is provide as per their claim before DRT Orally in
principle they agreed to waive further interest.
12. During the year, the Comp. has accounted fro deferred tax in
accordance with the AS-22 'Accounting for Taxes on Income' issued by
the council of Institute of Chartered Accountants of India Deferred
Tax Liability of Rs. 1266.36 Lacs as at the beginning of year has
been adjusted against general reserve & Deferred Tax Assets accruing
during the year aggregating to the same amount has been recognized in
the Current Assets Loans and Advances Account.
13. Modvat credit of Excise duty taken on purchase of Raw Materials is
not included in the value of inventory of raw material. Also value of
inventory of finished goods doesn't include excise duty payable on
manufacture. This has no effect on the profit of Company.
14. Figures of previous year have been regrouped /
rearranged/reclassified wherever necessary.
15. Investment in equity shares of Kaissan Plasto limited is w/off
because Co. is not in operation.
