| 1. During the financial year 1996-97 the Company has imported one
Continuous Casting and Rolling Line Equipment and bonded at Customs
Warehouse,Mumbai.The Company is awaiting the final sanction of the
Rehabilitation Package, so as to ,get clear the Equipment under EPGC
Scheme with a concessional Rate of Customs Duty as a part of
Rehabilitation Package.The Equipment is inspected by the Company
officials at regular intervals. However the Equipment is not tested for
technical obsolescence, normal ware and tare, impairment loss and also
suitability for its intended use, since the said Equipment was imported
a long back. No provision is also made in the books of account for the
Customs Duty payable on the import and also Storage Charges payable to
Warehousing Corporation.
2. Depreciation for the year is provided as per Schedule II of the
Companies Act, 2013, accordingly Rs. 8,352,417/-being the remaining
Carrying amount of the assets whose remaining useful life is nil is
recognised in the opening balance of retained earnings.
3. The principal amounts waived by term lenders pursuant to the
Rehabilitation Scheme under OTS amounting to Rs.100,854,691/- is
directly credited to Capital Reserve and interest waived amounting Rs.
770,827,504/- is credited to Profit and Loss as Exceptional Items.
4. Appointment and payment of Managerial Remuneration:
a. The reappointment of Executive Director with effect from 01.04.2002
is subject to the conditions laid down in schedule XIII to the
Companies Act, 1956. However, the Company has not obtained Central
Government approval pursuant to the said conditions for payment of
remuneration from that date amounting to Rs.10,031,810/-(including for
Current yearRs.848,774/-) and accordingly the provisions of Section
309(5A) of the Companies Act, 1956 are applicable. However, the said
amount is charged to the profit and loss account as managerial
remuneration, as the management is of the view that the said provisions
are not applicable to the Company, as the matter is a part of
Rehabilitation Scheme referred to BIFR under the Sick Industrial
Companies (Special Provisions) Act, 1985.
b. The appointment of Managing Director with effect 01.01.2006 is
subject to the conditions laid down in schedule XIII to the Companies
Act, 1956. However, the Company has not obtained Central Government
approval pursuant to the said conditions for payment of remuneration
from that date amounting to Rs.9,959,153/-(including for Current year
Rs.1,029,257) and accordingly the provisions of Section 309(5A) of the
Companies Act, 1956 are applicable. However, the said amount is charged
to the profit and loss account as managerial remuneration, as the
management is of the view that the said provisions are not applicable
to the Company, as the matter is a part of Rehabilitation Scheme
referred to BIFR under the Sick Industrial Companies (Special
Provisions) Act, 1985.
5. No Debenture Redemption Reserve is created in respect of the
Debentures redeemed during the year as the said debentures were
converted into loans by the Debenture holders pursuant to the
Rehabilitation Scheme .
6. Additional Interest and Liquidated damages payable to the
financial institutions for non compliance with terms of sanctions
and/or repayment schedules amounting to Rs.6,077 lakhs (on assigned
loan) from 01.07.1997 to 31.03.2014 is not provided in the books of
account.
7. Interest on Working Capital Loans from Banks, amounting to
Rs.23,929 lakhs (including on assigned loan) from 01.07.2000 to
31.03.2014 and Rs. 2,569 lakhs for the current year is not provided in
the books of account.
8. During the year IIBI and Canara Bank have assigned their rights
titles and interests in their financial assistance granted by them
to the Company to Edelweiss Assets Reconstruction Company Limited .
Since the Company started negotiations with them for settlement no
provision is made in the books of account for additional interest and liquidated damages for the year.
9. The Company has declared dividend for the year 1995-96 in the
Annual General Meeting held on 30.12.96 and unpaid amount of Rs.
115,56,699/- has become due for transfer to Investor Education and
Protection Fund. The Company has not complied with the provisions of
Sec-205-A (1) of the Companies Act, 1956 regarding transfer of unpaid
dividend to a special bank account and the interest payable for such
non compliance amounting to Rs. 249.32 lakhs up to 31st March, 2014 and
Rs.13.87 lakhs for the year is not provided in the books of account.
However, the Company is of the opinion that the said Provisions are not
applicable to the Company, as the same is payable to the share holders
and has been included in its rehabilitation proposal as payable at a
later date.
10. The ICICI Bank Limited has assigned all the amounts due to it by
the Company to a third party with effect from 01.01.2006 on "as is
where is" basis pending legal documentation and other negotiations as
to the repayment with the third party, the total amount due as at 31st
December, 2005 including principal on account of this mutual agreement
was classified as assigned liabilities and shown as other current
liability.
11. The Company is in the process of obtaining confirmation of
balances from the parties included under Borrowings, Trade Payables and
Other current Liabilities.
12. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated, if realised in the ordinary course of business and provision
for all known liabilities have been adequately made in the accounts.
13. Disclosure of Sundry Creditors under Trade Payables is based on the
information available with the Company regarding the status of the
suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors. During the
year, there were no transactions with Micro and Small Enterprises;
hence the disclosures as per Micro, Small and Medium Enterprise
Development Act, 2006, are not applicable to the Company for the time
being.
14. The Companies main business is manufacturing of Aluminum Conductors
and other allied products and all other activities of the Company
revolve around the main business and as such there are no separate
reportable segments as per the Accounting Standard AS 17 " Segment
Reporting" as specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules, 2014.
15. In terms of Accounting Standard (AS 22) on "Accounting for Taxes on
Income" as specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014, there is a net deferred tax asset
as on 31st March, 2015. In the absence of convincing evidence regarding
the availability of sufficient taxable income in near future against
which the deferred tax asset can be adjusted, the Company has not
recognised the deferred tax asset arising due to tax effect of timing
differences at present.
16. As required by Accounting Standard (AS 28) "Impairment of Assets",
the management has carried out the assessment of impairment of assets
and no impairment loss has been recognized during the year.
17. Previous year figures are regrouped and reclassified where ever
necessary to make them comparable with those of current year.
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