| 1. Secured
(a) Cash credits from banks are secured by hypothecation of inventories
and book debts and by a collateral security by way of a second charge
on the immovable property of the Company at Industrial Area, S.A.S
Nagar, Mohali, Punjab. Also guaranteed by the personal irrevocable
guarantees given by three Directors.
(b) Term loans :
i) from financial institutions are secured by an equitable mortgage of
all the Companys immovable properties both present and future. The
loans are further secured by a first charge by way of hypothecation of
all the movables (save and except book debts) including movable plant
and machinery, machinery spares, tools and accessories, both present
and future, subject to prior charges created/ to be created in favour
of the Companys bankers on inventories. Also secured by the personal
irrevocable guarantees given by three Directors and by 2,918,729 shares
in the Company pledged by two of the said Directors and two private
companies in which they are Directors. Due within a year Rs.95,283,483
(previous period Rs. 41,098,350).
ii) from banks are secured by a first charge on specific book debts and
by way of a third charge on the fixed assets of the Company. Also
guaranteed by the personal irrevocable guarantees given by three
Directors : Due within a year Rs.24,139,613 (previous period Rs.
19,103,794).
(c) Other loans represent :
i) loan from District Industries Centre, Punjab, Rs 2,100,000 (previous
period Rs 2,100,000) guaranteed by Punjab State Industrial Development
Corporation against pledge of bank fixed deposits and interest thereon.
Due within a year Rs Nil (previous period Rs.Nil).
ii) loans from finance companies Rs 1,309,619 (previous period Rs
1,813,689), secured by hypothecation of three motor cars. Due within a
year Rs.924,488 (previous period Rs 883,526).
FIXED ASSETS
1. The Company has revalued its lands, buildings and plant and
machinery acquired upto March 31, 1997 as at December 31, 1997 on the
basis of an independent valuation through an approved valuer which
resulted in an aggregate increase in their gross block by Rs.
422,994.927 which was credited to revaluation reserve. The net block of
fixed assets as on June 30,2002 includes Rs. 355,131,177 on account of
this increase.
2. Depreciation for the period includes Rs. 18,675,292 (previous
period Rs. 22,713,232) additional depreciation on account of
revaluation of assets.
OTHER NOTES
Current period Previous period
Rs. Rs.
1. Estimated amount of contracts
remaining to be executed on 876,035 1,495,619
capital account (net of capital
advances) and not provided for
2. Contingent liabilities not provided
for in respect of :
a) Income-tax 1,028,716 1,028,716
b) Excise duty 6,029,155 5,663,168
c) Octroi duty paid under protest - 9,219,220
d) Interest charged by banks and
paid under protest 11,202,263 11,202,263
e) Balance of Term Loans availed
against deferred payment
receivable from DOT -
State Bank of Patiala 8,692,352 48,465,123
State Bank of India - 6,928,006
Canara Bank 10,749,171 19,239,534
Bank of Punjab Limited - 13,878,179
American Express Bank Ltd. 7,268,666 31,698,263
3. The related liabilities in respect of term loans availed against
deferred payment receivables from State Bank of Patiala, State Bank of
India, Canara Bank, Bank of Punjab Ltd. and American Express Bank Ltd.
respectively have been set off against the related specific deferred
receivables from Bharat Sanchar Nigam Limited (BSNL) which have been
assigned in favour of the said banks in line with the terms of the
agreement between BSNL and the Company. These terms are irrevocable and
have been ratified by the Board of Directors. Under these terms BSNL
issues cheques directly in favour of the respective banks, thus
directly discharging the liability of the Company. As the Company has
established a valid right of setoff, it is reporting the net amount as
follows :
Current period Previous period
Rs. Rs.
Sundry debtors - Deferred Receivables 36,719,304 140,456,538
Less : Term loans outstanding 26,710,189 120,209,105
Net Deferred Receivables 10,009,115 20,247,433
Term loans against deferred receivables from State Bank of Patiala,
State Bank of India, Canara Bank and Bank of Punjab Ltd. are secured by
first charge on specific deferred receivables and a parri-passu fourth
charge on the fixed assets of the Company. The loan from American
Express Bank Ltd. is secured by a first charge on specific deferred
receivables only. The said loans are also guaranteed by personal
irrevocable guarantees given by three Directors.
Current period Previous period
Rs. Rs.
4. Managerial remuneration* under 3,086,142 2,342,979
section 198 of the Companies Act, 1956
Directors sitting fees 72,000 62,000
* Does not include contribution to group gratuity scheme with the Life
Insurance Corporation of India (LIC) since the premium is deposited for
the Company as a whole.
5. Expenditure in foreign currency (on cash basis)
Travelling 2,696,650 1,654,377
Others 78,460 155,903
6. CIF value of imports
Raw materials - 303,347
Capital goods/spares 461,028 2,689,647
7. Particulars of capacities and production :
Class of goods - Jelly filled cables
Licensed capacity Not applicable Not applicable
Installed capacity* 3,803,000 CKM 3,803,000 CKM
Actual production** 1,348,608 CKM 2,374,256 CKM
* As certified by the management and accepted by the Auditors, being a
technical matter.
** Net of testing rejections 15,137 CKM (Previous year 52,281 CKM).
8. Raw materials consumed
Unit Current period
Quantity Value
Rs.
Copper Kg. 2,282,836 254,828,771
Galvanised steel tape Kg. 2,337,608 55,677,406
Polyethlene granules Kg. 2,349,115 106,493,079
Others - - 96,664,669
513,663,925
Previous period
Quantity Value
Rs.
3,931,435 477,643,347
3,169,906 86,777,371
3,992,313 206,465,149
- 135,615,243
906,501,110
9. Value of imported and indigenous raw materials, stores and spares
consumed and the percentage of each to total consumption :
Value Percentage Value Percentage
Rs. Rs.
Raw materials
Imported 200,602 0.04% 1,255,182 0.14%
Indigenous 513,463,323 99.96% 905,245,928 99.86%
513,663,925 100.00% 906,501,110 100.00%
Stores and spares
Imported 1,102,238 6.62% 4,065,944 18.35%
Indigenous 15,538,959 93.38% 18,094,858 81.65%
16,641,197 100.00% 22,160,802 100.00%
10. Particulars in respect of opening stock, closing stock and sales
for each class of goods dealt with by the Company :
Class of goods Unit Qty. Value
Rs.
Jelly filled cables
- Opening stock CKM 280,446 143,627,118
- Closing stock* CKM 256,950 132,787,061
- Sales** CKM 1,372,104 783,482,546
Qty. Value
Rs.
273,481 115,668,345
280,446 143,627,118
2,367,291 1,531,031,570
* Includes Nil CKM (Previous period 43,488 CKM) pending inspection
** Sales are net of scrap sales Rs. 8,922,567 (Previous period Rs.
15,156,209).
11. Auditors remuneration
Current Period Previous period
(Rs.) (Rs.)
As auditors - Audit fee
(excluding service tax) 400,000 440,000
In other capacity : - -
- Certificates, etc. 22,500 30,000
Out of pocket expenses 172,227 142,551
12. As the Companys business activities fall within a single primary
business segment, viz., `Polyethylene Insulated Jelly Filled (PIJF)
cables, the disclosure requirements of Accounting Standard (AS) - 17
"Segment reporting", issued by the Institute of Chartered Accountants
of India are not applicable.
13. As the Company has substantial unabsorbed depreciation and carried
forward business losses under the. Income-tax Act, 1961 and is unlikely
to have taxable income in the forseeable future, the deferred tax
assets/ liabilities have not been recognised. This is in accordance
with Accounting Standard-22 (AS 22) `Accounting for taxes on income
issued by the Institute of Chartered Accountants of India.
14. Related party disclosures under Accounting Standard 18
Joint Venture : Hitachi TCL Cables Private Limited
Key managerial personnel and their relatives : Ms.Bubli Brar,
Mr.D.C.Mehandru and Mrs.G.K.Brar (mother of Ms.Bubli Brar) Enterprises
over which key managerial personnel and their relatives exercise
significant influence : Falcon T&M Enterprises Private Limited, Dane
Foods India Limited, Dashmesh Fab Yarns Private Limited, Sobra Power
Private Limited.
Joint Venture
(Rs.)
Packing materials consumed
Rent
Interest
Expenses recovered Loans and advances written off
Balances outstanding as at the period end
- Unsecured loans
- Loans and advance (considered good) 9,233,873*
- Loans and advance (considered doubtful) 1,375,736
Key managerial Enterprises over Total
personnel and which key managerial
their relatives personnel and their
relatives exercise
significant influence
(Rs.) (Rs.) (Rs.)
- 3,996,061 3,996,061
1,575,030 - 1,575,000
567,030 - 567,030
- 826.523 826,523
308,000 - 308,000
1,487,611 10,721,484
1,375,736
*Represents dues recoverable from Hitachi TCL Cables Private Limited
(HTCPL), a joint venture with Hitachi Cables Limited Japan, for
manufacture of Optic fibre cables. In view of adverse market scenario,
HTCPL has temporarily shelved implementation of the project. However,
based on a review of project viability carried out by the Company, the
management is confident that the project would be successfully
implemented and the dues from HTCPL would be recovered in due course.
Note : Details of remuneration to whole time directors are given in
note 5 above.
15. Earnings per share
Current period Previous period
Loss as per profit and loss account
attributable to equity shareholders Rs.(384,190,367) Rs.(23,764,751)
Weighted average number of equity
shares outstanding 9,890,000 9,890,000
Basic and diluted earnings per
share (face value - Rs.10 per share) Rs.(38.85) Rs.(2.40)
16. The Company has become a Sick Industrial Company within the
meaning of clause (o) of sub-section (1) of section 3 of the Sick
Industrial Companies (Special Provisions) Act, 1985 and is in the
process of finalising a rehabilitation package for submission to the
Board for Industrial and Financial Reconstruction for approval. As the
management is confident that, on implementation of the rehabilitation
package the operations of the Company would improve substantially, the
accounts have been prepared on a`going concern basis.
17. During the period April 1, 1998 to September 30, 1999, a customer
paid for `sales effected prior to April 1995 after deducting therefrom
Rs.41,054,509 (out of which Rs. 14,253,762 has been received during the
previous period) being their claim for modvat credit availed by the
Company on the raw materials covered under the price variation clause
of the contract for sales billed thereunder. The Punjab and Haryana
High Court has admitted the Companys petition challenging the
deductions so made, on the basis of correspondence received from the
concerned customer indicating that the modvat credit benefit on such
raw material is not to be adjusted in arriving at the sales price. In
the view of the management, the customers claim is not legally
sustainable and, as such, no provision in respect thereof is required
in the accounts.
18. During the period under review, the company extended certain trade/
20. As the current financial year is for a period of 15 months ended
June 30, 2002 whereas the previous financial year was for a period of
18 months ended March 31, 2001, the corresponding figures of the
previous period are not directly comparable with those of the current
period.
21. Previous period figures have been recast, wherever necessary.
22. Additional information as required under Part IV of schedule VI to
the Companies Act, 1956. Balance Sheet Abstract and Companys General
Business Profile.
i) Registration No. 5385 State Code 53 Balance Sheet
Date June 30, 2002.
ii) Capital raised during the year (Amount in Rs. Thousands)
Public issue Nil Rights issue Nil
Bonus issue Nil Private placement Nil
iii) Position of mobilisation and deployment of funds (Amount in Rs.
Thousands)
Total liabilities 1,261,175 Total assets 1,261,175
Sources of funds Application of funds
Paid up capital 98,900 Net fixed assets 628,149
Reserve & surplus 362,065 Investments 1,000
Secured loans 799,089 Net current assets 287,958
Unsecured loans 1,121 Misc. expenditure 9,516
Accumulated losses 334,552
iv) Performance of the company (Amount in Rs. Thousand)
Turnover 792,405 Total expenditure 1,195,633
Profit/loss before tax - Profit/loss after tax 384,190
Earning per share (Rs.) (38.85) Dividend rate -
v) Generic names of Principal products/Services of the company
Item Code No. 85.44
Product Description :
Insulated included enamelled or anodised wire cable including coaxial
cable and other insulated electric conductor whether or not fitted with
connectors, optical fibre cables made up of individually sheathed fibre
whether or not assembled with electric conductors of fitted with
conductor.
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