Mar 31, 2009
Fixed Deposits shown in the schedule of cash and bank balances includes surety given to sales tax department and margin money to banks against tenet of Credit, bank gurantee etc Rs4.880.556/- (Previous year Rs. 435.432/-).
31,03.2009 31,03.2008 Particulars (Rupees) (Rupees)
Bank Guarantees 82,500 82.500
Letter of Credit 10.200.000
Corporate Guarntees on behalf of Subsidaries 55,000,000 17,600,000
Total 65,282,500 17.682.500
2. Applying the principles of Accounting Standard 22. issued by The Institute of Chartered Accountants of India, the deferred tax has been calculated and not deferred tax asset as on 31 03 2009 has emerged on account of losses and disallowances under the Income Tax Act 1961 However in absence of reasonable and virtual certainity of future taxable profits the same has not been recognised in the accounts The defferd tax liability as on 31 03 2008 was Rs 8 606 933 which has been written back in the accounts
3 Related Parties Disclosures :
(A) Name of the Related Party
(a) Key Management Personnel
Name Nature of Relationship
Mr. Kapil Kumar Managing Director
Mr. Dinesh Gulati Wholetime Director*
Mr.Rohit Sood Wholetime Director**
Mr Pawan Sabharwa Wholetime Director
* Resigned w.e.f 13.02 2009
** Resigned w e f 07 07 2000 and reappointed w e f 13 02.2009
***Resigned w.e.f. 06.09.2008
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.
Mar 31, 2000
1. No Provision has been made in respect of diminution in the value of quoted investment amounting to Rs. 32,80,000 since in the opinion of management, the diminution in the value of quoted investments is not permanent
2. The amount shown under the head "SUNDRY DEBTORS" in Schedule-VIII includes Rs. 30,54,666 (Last Year Rs.28,57,433) due from Brushman International Pvt. Ltd., a Company in which the Managing Director is interested as a director.
3. The amount shown under the head "Advances recoverable" in Schedule-X of LOANS AND ADVANCES" includes Rs. 18,20,984 (Last year Rs. 24,86,784) to M/s. Omega Brushwares, a firm in which the managing director and some of the directors are interested as partners.
4. The amount shown under the head "Security Deposits" in Schedule-X of LOANS AND ADVANCES includes Rs. 49,00,000 ( Last year Rs. 49,00,000) to M/s Omega Brushwares, a firm in which the managing director and some of the directors are interested as partners, in lieu of an agreement entered into during 1996-97, which is suspended for the time being.
As At As At
5. Contingent Liabilities 31.3.2000 31.3.1999 (Rupees) (Rupees)
Unpaid Allotment money on partly paid-up shares held as investments
- Musk Exports Marketing Ltd. 4,500,000 4,500,000
- Tushar Agri-Business Consortium 3,000,000 3,000,000
Interest thereon Not Not ascertained ascertained
6. Sundry Debtors, Sundry Creditors, Customers at credit & Loans & Advances are subject to confirmation by the respective parties.
7. There are no outstanding dues to SSIs, as required by Department of Company Affairs vide their Notification dated 22.2.99.
8. Figures of previous year have been regrouped and reclassified wherever necessary to make them comparable.
9. The amount in the Balance Sheet and Profit & Loss Account have been rounded off to the nearest rupee.