| NOTES
1.
With reference to qualification 1(a) in the audit
report for the year ended 31st March 2002, the
Rehabilitation Proposal as per the directions
of Hon'ble BIFR has been submitted to the Operating
Agency IDBI and based on that the OA has submitted
the Draft Rehabilitation Scheme to the Hon'ble
BIFR for their approval
2.
Since the Settlement with IDBI has been reached,
the issue of difference in the amount due of Rs.
503.73 lacs (qualification 1 (b) in the audit
report for the year ended 31st March 2002) has
been resolved.
3.
In view of the fact that the Company has incurred
substantial losses from financial year 1998-99
to financial year 2001-02 (total accumulated losses
as at 31st March, 2003 stand at Rs. 6220.25 lacs),
in consonance with the recognised accounting principles
of prudence and conservatism, the Company has
not accounted for the deferred tax assets (net
of deferred tax liabilities) of Rs. 1427.95 lacs
as at 31st March, 2003 (Rs.2349.18 lacs as at
31st March, 2002), in terms of Accounting Standard
22 - Accounting for Taxes on Income issued by
The Institute of Chartered Accountants of India.
4.
During the quarter, the Company has taken credit
of Rs. 2160.57 lacs in respect of extinguishment
of liability towards principal amount (inclusive
of exchange fluctuation) to the Capital Reserve
Account and Rs. 1048.37 lacs in respect of interest
accrued upto 31st March 2002 to the Profit and
Loss Account upon full & final payment to
DEG, Germany as agreed in the settlement agreement
with them.
5.
Subsequent to the close of the financial year
31st March, 2002, the Company, apart from the
settlement with CDC Group plc and DEG, Germany,
has reached settlements with all the Financial
Institutions with whom its account was irregular
and they have agreed to accept an amount aggregating
to Rs.5044.27 lacs in full and final settlement
of their outstanding loans aggregating to Rs.
3726.06 lacs and interest accrued thereon. However,
in case any installment against the above dues
is not paid within the time stipulated in the
settlement agreements, these lenders have the
right to restore the original liabilities. Since
substantial portion of the payments stipulated
under these agreements is yet to be made, the
Company has not taken credit of Rs. 2297.04 lacs
in respect of interest accrued upto 31st March
2003.
6.
Operating Profit before Interest , Depreciation
and Write offs for the quarter ended March 2003
includes one time gain on account of DEPB income
of Rs. 197.80 lacs for the period April to December
2002 accounted for during March 2003 quarter as
the rate was increased from 11% to 14% by the
Government authorities in March 2003 quarter w.e.f.
01.04.2003.
7.
Interest and Financial Charges for the quarter
March 2003 is lower by Rs. 255.60 lacs on account
of one time settlement.
8.
The above results have been taken on record by
the Board of Directors at their meeting held on
20th June 2003.
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