| 1. During the year under consideration, the Company has entered into a
Memorandum of Understanding with Sriven Infotech Limited for transfer
of certain movable property consisting of Computers & Peripherals (Rs.
1,32,04,000/-), Office Equipment (Rs. 16,73,000/-), Furniture &
Fixtures (Rs, 18,00,000/-), Electrical Fittings (Rs.17,07,000/-)
Vehicles (Rs, 28,03,000/-), and immovable property (Hitec City
property) being property situated at Q4-A1, 10th Floor, Cyber Towers,
Madhopur, R.R. Dist. admeasuring 4,943 sq. ft.
The above property was acquired at its book value, whereas the movable
properties were acquired at agreed values as per valuation certificate.
The Company has agreed to discharge loans secured on the charge of the
above assets namely
a) Rs. 88,59,106 due to Indian Overseas Bank on Hitec Property
b) Rs. 84,790 due to Cholamandalam Investment & Finance Company Ltd. on
Maruti Car
c) Rs. 1,99,834 due to Countrywide Finance Ltd. on Maruti Car
d) Rs. 1,68,269 due to Maruthi Countrywide Auot Financial Services Ltd.
on Maruti Car and also adjusted the loans and advances (due from Mr. V
V Subrahmanyam and Dr. Neeraj Raj, under an agreement entered into by
them with the erstwhile management) to the extent of Rs 97,18,291/-,
resulting in no cash out-flow to the company.
The Company has taken over the physical possession of assets on 30th
June, 2000 and hence the above transaction has been incorporated in the
books of account of the Company on 30th June, 2000. The necessary
legal formalities for take over of the assets and liabilities are in
progress. Further, the Company has made a provision for stamp duty and
registration for transfer of above property.
2. Restructuring Account
The management as on 30th June, 2000 has reviewed the status of various
assets and liabilities acquired during construction period and all the
assets which in the opinion of the management may not be realizable
have been adjusted against similar liabilities incurred during the
construction period which may not be payable and against the
outstanding balance in share forfeiture account and the net balance of
Rs. 21,26,749/- has been transferred to Restructuring Account. The
Company proposes to write off the balance of Rs. 21,26,749/-
proportionately over a period of five commencing from 30th June, 2000.
3. Notes to Accounts :
1999-00 1998-99
Rs. Rs.
Contingent liabilities not provided for
i) Estimated amount of contracts remaining 93,15,571 Nil
to be executed on capital account (net of
advances)
ii) Towards Bank Guarantee 4,10,000 Nil
iii) On account of Letter of credit 14,98,522 Nil
b) The amount paid or provided by way of
remuneration to Managing Director and
Executive Director :
Salaries & Allowances 10,48,000 Nil
Perquisites 2,21,825 Nil
c) Remuneration to Auditors
Audit fee 35,000 10,000
Other Services Nil Nil
d) CIF Value of Imports
Capital goods 1,45,44,323 Nil
e) Expenditure in Foreign Currency
Travelling 62,89,912 Nil
Others 2,37,21,745 Nil
f) Earnings in Foreign Currency
Export Income 1,89,33,500 Nil
Other Income 18,365 Nil
g) In the opinion of the management of the Company, the current assets,
loans and advances have a value on realization in the ordinary course
of business at least equal to the amount at which they are stated
unless specifically mentioned otherwise and provisions for all known
liabilities has been made.
h) Sundry debtors, sundry creditors, other liabilities, loans and
advances, advances from customers etc. are subject to confirmation and
reconciliation.
i) The Company has no information as to whether any of its suppliers
constitute Small Scale Undertaking and therefore, the amount due to
such suppliers has not been identified.
j) Bank balances include certain accounts aggregating Rs.49,67,012/-
for which neither statement of account nor confirmation of balances
have been received.
k) Loans & Advances
Loans and advances include Rs, 185.78 lacs extended by the earlier
management, which is irrecoverable. The Board has vide board
resolution dated 30th June, 2000, decided to write off the same over a
period of next three years.
Loans and advances include Rs. 372.95 lacs due from directors of the
company as a part of agreement entered into by Mr V.V. Subrahmanyam, Dr
Neeraj Raj and Sriven Employees Foundation Trust with erstwhile
promoters of the Company for takeover of liability to company on behalf
of earlier promoters. Of total advances of Rs. 570 lacs, an amount of
Rs.197.05 lacs have already been recovered during the year and the
balance will be recovered within 3 years.
l) Investments
During the year, the Company has received as a group company adjustment
15,00,000 Equity Shares of Rs.10/- each of Boss Securities Limited from
earlier promoters vide agreement entered into dated 2nd April 1999,
These Shares were acquired form the esterwhile management without any
cash outflow to the company
4. Information pursuant to the provisions of Part IV of the Schedule VI
of the Companies Act, 1956.
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