| 1. 16,00,000 15 % Cumulative Preference Shares of Rs.10 each,
fully paid up. Redeemable, at par, on December 5, 2009
2. The Term Loan from a State Financial Institution is secured by
mortgage of immovable assets and floating charge on movable assets
(except book debts) subject to prior charge in favour of Company's
Bankers on Stock-in-Trade and consumable spares and guaranteed by the
Chairman & Managing Director. The Working Capital Loan from a Scheduled
Bank is secured by hypothecation of all tangible movable assets
including stocks of raw materials, work-in-process, finished goods and
book debts and guaranteed by the Chairman & Managing Director, which is
further secured by second charge on immovable assets of the Company.
3. Contingent liabilities not provided for in respect of :
2000-2001 1999-2000
(Rs.in lacs)
a) Case filed against the Company by workmen
in the Industrial Tribunal, Goa contested
by the Company. 1.50 23.20
b) Arrears of Dividend on 15% Reedemable
cumulative Preference Shares including
corporate Dividend tax. 31.63 7.63
c) Amount of interest liability/penalty on
delayed/non-payment of statutory dues. Amount unascertainable
4. The Company's accumulated losses as at 31st March, 2001 far exceed
the networth. However , since the company is in the advanced stage of
finalising a long term contract with a reputed textile group for
utilisation of the company's capacity available for manufacture of
apparels, the accounts for the year have been prepared on a going
concern basis.
5. i) Balances of certain Sundry Debtors, Sundry Creditors and Loans
and Advances are subject to confirmation/ reconciliation and
consequential adjustments, if any, in the accounts.
ii) In the opinion of the Board, current assets, loans and advances
have a realisable value in the ordinary course of business at least
equal to the amount at which they are stated.
6. a) Intercorporate and other deposits of Rs. 209.20 lacs (Previous
year Rs. 209.20 lacs) placed by the Company in earlier years and
interest receivable thereon of Rs. 188.95 lacs (Previous year
Rs. 190.62 lacs) have become long overdue. Of these, a deposit of
Rs. 43.00 lacs and interest accrued and due thereon of Rs. 54.61 lacs
is receivable from a Company which is under liquidation, the claim
whereof has been filed with the liquidator in the High Court of
Judicature at Delhi. The management is making its best efforts to
recover these amounts in due course and therefore no provision is
considered presently in respect of the principal and the interest
referred to above.
7. Interest of Rs. 13.50 lacs(including for the year Rs. 4.50 lacs)
payable to a Company under liquidation on Inter Corporate Deposits
accepted by the Company in an earlier year would be accounted for in
the year of payment.
8. i) There are no dues/overdues to Small Scale and/or Ancillary
Industrial suppliers on account of principal and/or interest as at
the close of the year.
ii) The above disclosure is based on the information and documents
available with the Company.
9. In respect of advance towards share capital of Rs. 79.91 lacs to
Webrands.com Ltd., a company under the same management, the allotment
of shares would be made on approval of the investee's venture by
venture capital funds or internet companies. Having regard to the long
term potential of the new economy sector, the management is of the
opinion that the aforesaid investment carries substantial long term
value or at least equal to the amount at which it is carried in the
books.
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