| 2. Being a Service Company the question of giving quantitative details
in respect of capacity, turnover, raw material, consumption does not
arise.
3. Expenditure incurred on employees who are In receipt of remuneration
In aggregate at the rate of not less than Rs 24.00.000/- per year or
Rs. 2,00,000/- per month.
No. of Salaries 1
Employees Allowances(Rs)
A. Employees whose remuneration In
aggregate was Rs24,00,000/- or
more per year. NIL NIL
B. Employees whose remuneration in
aggregate was Rs 2.00.000/- or more
per month but who are employed
for pan of the year. NIL NIL
4. Directors Remuneration
a) Salaries Rs. 90.000
b) Tele phone & Electricity & Society Charges Rs. (90.000)
of Mr. Prem & Mrs.Smeeta Sawhney a homed by the company
5. Expenditure in Foreign Currency: NIL
(In Rupees on Cash basis) (NIL)
Earning in Foreign Currency NIL
(In Rupees on Cash basis) (NIL)
6. On behalf of various Indian Financial Institutions, a Condition i
Valuation Survey was conducted as on 20.10.1991 by M/s Cleghorn Wilton
i Associates Ltd.. Dubai, on the Semisubmersible Drilling Rig 'Boss
Prithvi'. The valuation report dated 22.10.1991 assigned the value of
the vessels at US $ 25 million on as Is where is basis. The Company
with an intention to revalue the above vessel, has adopted the above
independent valuation and revalued the vessel as of 31.03.1991 at Rs
49,09,17,500/-. A Revaluation Reserve of Rs 26,74,73,991/- was hence
created as of 31.03.1991.
Since the vessel was valued in International waters, the management
opine that the landed cost of the vessel in Indian waters would include
import duties and incidental charges, estimated at 30 percent of the
above valuation of USD 25 million. The same along with the exchange
fluctuation on the assigned value of USD 25 million have been
capitalized by increasing the value of the vessel and enhancing the
Revaluation Reserve by Rs 40,70,50,317/- as of 31.03.1992. Further the
Company has revalued this Semi-Submersible Drilling Rig Boss Prithvi
from independent valuer. The revised valuation is US $ 23.00 Million as
on 16th May 1993. However the said valuation has not been considered In
the accounts.
7 The Consent Terms entered into on 27th December 1993, with the
Financial Institution provide that if the Company is unable to bring
the rig back to Indian waters within six months from the dale of
signing of the Consent Terms, or if the Company is unable to deploy the
rig within nine months from the date of signing of the Consent Terms,
the Financial Institution would be free to enforce their security.
8 The Company had sent the Rig "Boss Prithvl" for drydocking to Dubai
Drydocks, Dubai in and around November 1989. The cost of drydocking
approximately amounted to Rs 9 Crores. As the Company could not pay the
above charges in full from subscription moneys alone the Dubai Drydocks
initiated legal proceedings and was awarded a Decree to auction the Rig
through the Dubai Courts. Inspite of the efforts made by the Company,
by way of arranging Letter of Credits lor US$ 880.000 in favour of
Dubai Dry Docks, the Court had decided to auction the Rig on 23rd July
1994. with a minimum estimated price of US$ 15 million to US$ 17
million. As per the UAE Maritime Laws. the final auction sale takes
place after three sessions of court sittings and that. if no bid is
received during the first and second sessions of the Court sittings,
the court has to readvertise the auction notice after fixing a lower
value Since no bid was received during the first and second sessions,
the Court wrongly went ahead without re-advertising and auctioned the
Rig In the third session for value of US$ 3.5 million which was much
lower than the estimated price of US$ 15 to 17 million as fixed by the
Court itself. The Company has initiated legal proceedings to prevent
the transfer, but the petition has been dismissed by the Court and has
ordered that the Transfer of Title Deed should lake place.
The Company has challenged the Court's Order of auction at a bare
minimum price of US$ 35 million and as per the letter of Mr Samir
Kanaan of M/s Samir Kanaan & Associates. Advocate and Legal
Consultants, based in UAE appointed by the Company, the ownership of
the Rig "Boss Prithvi* is still legally disputed. How ever the Court
has not passed any Order against the appeal for the said auction till
date.
Meanwhile the Company. In a parallel move to further secure its
position has also entered into a Memorandum of Understanding to secure
the Rig's legal ownership lor a total consideration of approximately
US$ 7 million (intending complete recertification. repairs and
reconditioning) with United Impex Limned, a company based in UAE who In
turn has entered into a Memorandum of Agreement to purchaae the Rig at
a total consideration of approximately US$ 4.7 million, (on as It where
Is basis) with Fal Shipping Company Limited, a company based In UAE
which has bid in the auction.
9. The Company has submitted to a Decree on Admission In the High Court
of Bombay In the Admirality Suit No 27 of 1991 filed by Canara Bank.
Syndicate Bank. Vijaya Bank and Bank of Maharastra. and accordingly
liabilities has been fully provided for. Interest on these loans ha*
not been capitalised for the Current Year.
The Court Order allows the Consortium to effect a sale of the Anchor
Handling Tug at a minimum reserve price of Rs 55 Crores In settlement
of their dues. The balance, if any. thereafter is to be paid over a
period of 72 months.
10. I) Confirmation of some of the Debtors. Creditors. Advances
accounts are not received. The same are subject to confirmations and/or
reconciliations, if any.
II) Secured loan from Canara Bank. Syndicate Bank. Vijaya Bank, Bank of
Maharashtra. ICICI. IDBI. IFCI. SCICI. to the tune of Rs.
3,55,74,685/-, Rs. 3,50,02,628/-. Rs. 3,55,29,626/-, Rs. 3,55,10,116/-,
Rs 6.62.86.714/-, Rs. 9,73.98.051/-, Rs. 10,04,69,147/-, Rs.
7.79.33.291/- respectively & Unsecured loan from SBICI to the tune Rs.
60,00,000/- being suit filed are subject to confirmation
11. The Company has claimed a remission of mobilization expenses of Rs
42,34,829/- on the sale of Dynamically Positioned Drillship 'Boss
Vishwa' from Indian Bank. pursuant to the contract signed on 26
1.1991. being one-third share of the total mobilization expenses of USD
646,977/- The same is still outstanding as on 31.3.2000
12. The Semisubmersible Rig 'Boss Prithvi' was drydocked at Oubal and
not operational during the year. Hence, no depreciation has been
provided on the vessel during the year.
The other assets are depreciated on written down value basis at rates
as stipulated by Schedule XIV of the Companies Act 1956.
13. The Company has the option to convert its outstanding Foreign
Currency Term Loans from various Institutions to its equivalent Indian
Rupee value at the rate of exchange prevalent on the dale of signing of
the Consent Terms. In the event the Company exercises this option of
conversion, the outstanding dues to the Financial Institutions would be
cryslalized at Rs 30 35 Crores on the dale of signing of the Consent
Terms.
14. By virtue of the Court Order BOSS I has to be sold for an amount of
Rs 62,90,000/- Necessary adjustments have been made in the Accounts and
Loss on Sale of Asset has been debited to Profit and Loss Account. The
court has been keeping in Fixed Deposits regularly, the amount
deposited with them In the year 1991. Out of the interest amount
received by them, they have been directly making the payment of Rs. 1
Lac per month towards Manning charges to M/s. Galleon Shipping. The
total expenses amounting to Rs. 67.06.656/- have been debited to Vessel
Manning charges and the Interest earned during the period amounting to
Rs. 96,57,292/- has been credited to Interest Income during the year.
15. Contingent Liability
MIscellenous application No 304 of 2000 (Trial offenses relating to
transactions in secu rities).
The said case came up between Mr. Prem Sawney and Fairgrowth Financial
Services Ltd. 1998. The case came up for the payment of Rs.1.15
crores(approx) regarding sale of share to Fairgrowth Financial Services
Ltd. Mr. Prem Sawney (First Party) being one of the Directors of
Zenergy Ltd. and Zenergy Ltd. being third earty to the agreement It is
concluded that the said liability is contingent In nature as the said
case Is still pending.
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