| 1. The company has been declared sick industrial company within the
meaning of Sick Industrial Companies (Special Provisions) Act, 1985.
2. The Company's Promoters' friends /associates have invested an
amount of Rs. 6 Crores. Out of this equity shares and OCCPS allotment
will be considered in accordance with the approved BIFR Scheme.
3. According to the provisions of Sections 80A of The Companies Act,
1956, the 9.5% Cumulative Redeemable Preference Shares of the Company,
ought to have been redeemed before 15th June 1993. Since the Company is
a sick industrial Company within the meaning of the Sick Industrial
Companies (Special Provisions ) Act, 1985, the company, based on legal
opinion, had filed a petition, before BIFR, seeking leave for
redemption of the Preference Shares and the same is pending.
4. The company has not recognized interest dues on loans from banks
and from body corporate up to 31-03-2012. As in earlier years, the
company has not recognized interest dues on loans from bank. The
arrears of interest aggregating to Rs.6.38 Crores subject to
reconciliation has been converted by the bank during the period into
Funded Interest Term Loan. In respect of Term Loan II, the company has
not recognized interest dues from Nov.2010 to Mar.2012 amounting to
Rs.88 55 440. The repayment of FITL in EMI terms scheduled to commence
from January 2012 has not been made and the same will be recognized as
and when the funded interest is serviced. The Company has not
recognized interest dues on loans from Viz Projects, a body corporate
upto 31-03-2012 to an extent of Rs. 1.89 Crores. The interest is for
the period from 2009-10 with a right to recompense from the date of
debt restructuring and the same will be recognized as and when it is
serviced.
5. Excise duty liability on Finished Goods held in stock amounting to
Rs.53 24 328/- has been provided for. However this will have no bearing
on the working results of the Company since the value of closing stock
has been adjusted by like amount.
6. On 30th December 2011, Cyclone Thane hit the factory, which caused
extensive damage to the inventories. The surveyors have carried out the
survey and are in the process of sanctioning the amount. The damaged
stocks to the extent of Rs. 13135 908 has been written off. Out of the
total insurance claim, the company has since received an adhoc payment
of Rs.75 Lakhs from the insurance company.
7. Managerial Remuneration:
No Remuneration has been provided during the year.
8. No provision for taxation is considered necessary as the taxable
income for the year ended 31st March 2012 is negative. During the year
the company has recognized deferred tax asset considering reasonable
certainty of future taxable income on a conservative basis.
9. In the opinion of the management, current assets, loans & advances
have value in realization to the extent they are stated in the
accounts.
ii) DEFINED CONTRIBUTION PLANS:
The company makes contribution towards employees provident fund, family
pension fund, and employees state insurance scheme. Under the rules of
these schemes the company is required to contribute a specified
percentage of payroll cost. The company during the year recognized Rs.
56,26,002/-as expenses towards contributions to these plans.
10. Segment wise Revenue, results and Capital employed:
The company operates only one segment viz. Sanitary Ware
11. In the absence of information from the Company's Creditors with
regard to submission of memorandum with the Specified Authority, as
required under the Micro, Small and Medium Enterprise Development Act,
2006 the Company is unable to furnish the information under the said
Act and The Companies Act 1956.
12. Previous year figures have been regrouped and reclassified wherever
necessary to conform to current year classification.
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