Relatives of Key Management Personnel
Mrs.Rohit Kumar
Mrs. Komal Gulati
4 Impairment of Assets
The Company has examined carrying cost of is identified Cash Generating
Units (CGU) by comparing present value of estimated future cash flows
from such CGUs. in terms of Accounting Standard -28 on Impairment of
Assets, according to which no provision for impairment is required as
there have been no indications of impairment of CGUs during the
financial year ended 31st March. 2009
5 The Sale is net off taxes, duties The amount of Excise duty on sates
is Rs NIL Previous year Rs 1.469.735/-
6 During the year an amoun of borrowing costs of Rs Nil [previous year
Rs 8.862,602/-) has been capitalized with the fixed assets and Rs.Nil
(previous year Rs 191.130/-) with capital work in progress in
accordance with AS -16 on borrowing cost
7 Balances under the heads Sundry Debtors, Sundry Creditors, Unsecured
Loans. Loans and Advances are subject to confirmation by the respective
parties
8 The Company has no intimation from "Suppliers" regarding their
status under the Micro Small and Medium Enterprises Development Act.
2006 and hence the Disclosure if any, relating to amounts unpaid as at
the year end together with interest paid/payable as required under the
said Act has not been given
9 The quoted investment in Moongipa Securities Ltd. has not been
traded since long, hence Market Value of these shares are not available
Therefore the required information of market value cannot be given
Moreover the long term investments have been valued at cost since the
company has no information towards the diminution in the value of the
shares/net worth of the investee companies
10 Security against Secured Loan
a) Working Capital
Working capital facilities from consortium of State Bank of India and
State Bank of Indore are secured by hypothecation of Stocks. Book Debts
and current assets 01 the company The loan is collaterally secured by
fixed assets of the company and also by Equitable Mortgage of property
(at registered office) belonging to a partnership firm in which the
Managing Directors interested as partner The loan is also personally
guaranteed by The Managing Director and his family members are a firm
in which the Managing Director is interested as partner.
Whether capital facilities from Standard Chartered Bank is secured try
hypothication of all present and future stocks. book debts of the
company closed or to be slored at the borrowers godowon of promises or
wherever else the same may be The facilities are also collaterally
secured against the pari passu first charge by way of mortgage of the
properties of the company at Delhi Mumbai and pantnagar The loan is
also personally guaranteed by the Managing Director and his family
members
b) Term Loans
Term loans from banks are Secured by equitable mortgage of factory (and
& building at 34-35-36 sector 3. SIDCUL Industrial Area, Pantnagar.
Uttarakhard and equitable mortgage of Companys office at 604, Makani
Centre, Bandra (W), Mumbai and also by charge on the entire Plant &
Machinery & other fixed assets The loan is also personally guaranteed
by the Managing Director and his family members and a firm in which the
Managing Director is interested as partner. Also Secured by sub
servient charge on all the movable assets of the company present and
future. pledge of equity shares of the company held by promoters of
the company and also personally guaranteed by the Managing Director of
the company Term loan from others have been taken for equipments &
machineries and are secured against respective assets
e) Vehicle Loan
vehicle Loans are secured against hypothication of respective vehicle.
11 GDR issue
(a) During (be year the company has issued and allotted 3.910.000
equity shares of Rs 10/- each against issue of 3.910.000 Global
Depository Receipts (GDR) aggregating USD 12 million equivalent to Rs 5
17.059,220/- in July 2008 The amount in excess of par value of equity
share has Peer transferred 10 securities premium account
12 FCCB Issue
(a) During the year the company has issued 1100 Zero Coupon foreign
Currency Convertible Bonds of USD 10,000/- each due 2013 totaling to
USD 11 million equivalent to Rs 473.460,000;- The bonds are convertible
into ordinary equity shares of Rs 10 each at the option of the holder
of bonds at any june on or after 13th June 2008 and upto including 11
June 2013 at a mitral conversion price of Rs.161 per equity share at a
fixed exchange rate of Rs 43 is per USD subject to certain adjustments
as per the terms of the issue The company has an option 10 redeem the
bonds in whole on 18th June 2013 at 128 13% of the principal amount of
the bond resulting effective yield of 5% to the bond holders (b) FCCB
issue expenses has been adjusted against the securities premium account
(c) The company has provided redemption premium on FCCB which has been
adjusted from Securities Premium Account.
13 Common expenses incurred on FCCB/GDR issue has been allocated in the
ratio of issue size of the respective FCC&IGDR issue
14 During the year the company has cancelled and forfeited 3.550,000
convertible warrants of Rs 125 each on which Rs 12 50 per warrant had
been paid up, due to non payment of the balance amount by the warrant
holder as per the terms of warrants The amount forfeited has been
credited to capital reserve
15 The dividend proposed by the company during the previous financial
year 2007-O8 was not approved by the shareholders In the annual general
meeting end therefore the amount of proposed dividend alongwith
dividend tax thereon has been written back during the current financial
year.
16 During the year (in Jury 20O8) the company has given capital advance
of Rs, 503277 Lacs (included in Capital work In progress) for the
purchase of moulds, plant & machinery etc out of the proceeds of
Foreign Currency Convertible Bonds (FCCB) and Global Depository
Receipts (GDR) to Mr., Rajinder Singh, a Singapore based individual and
a director of M/s Global Absolute Capital Advisors Pvt Ltd. (Global
Coordinator of the FCCB/GDR issue). However Mr. Rajinder Singh has
felled to supply such Items and therefore the company has sought for
the refund of such advance from him and the company is hopeful for the
recovery of the same.
17 Pursuant to the amendment in the provisions of AS-11 as prescribed
In the accounting policy mentioned in (h) above, the resulting exchange
difference of Rs. 869,90 lacs pertaining to the FCCB Habilities has
been added with the Capital Work in progress. Since the proceed* of
FCCB issue are to be utilised for capital expenditure
purposes/acqutistion of depreciable capital assets and the company has
given capital advance for acquisition of depreciable food assets (shown
as Capita) Work in progress to the Balance sheet), no depreciation on
the foreign currency exchange difference has been charged pending
acquisition of the depreciable fixed assets.
18 The accounting policy pertaining to foreign exchange different for
long term monetary item as referred in (h) above however since such
item has arisen for the first time, it does not have any implication on
the financial statements.
19 Derivative losses represent the foreign currency forward contracts
obtained by the company for FCCB and GDR for USD and due to rise in USD
rates the company had to incur tosses.
20 Finished/ Processed stock in Pant Nagar has been revalued as of
31.oa.200S to align with the prevailing market price thereby resulting
in stock revaluation loss of Rs. 81,548,375 which has been shown as
Extraordinary Item in the Profit & Loss Account
21 Figures of previous year have been regrouped and reclassified
wherever necessary to make them comparable with current year figures.
22 The amounts in the Balance Sheet and Profit end Loss Account have
been rounded off to the nearest rupee
23 Schedule 1 to 22 form an integral part of the Balance Sheet as at
31.03,2009 and Profit & Loss Account for the year ended on 31.03.2009.