(a) Cash credits from banks are secured by hypothecation of inventories and book debts and by a collateral security by way of a second charge on the immovable property of the Company at Industrial Area, S.A.S Nagar, Mohali, Punjab. Also guaranteed by the personal irrevocable guarantees given by three Directors.
(b) Term loans :
i) from financial institutions are secured by an equitable mortgage of all the Companys immovable properties both present and future. The loans are further secured by a first charge by way of hypothecation of all the movables (save and except book debts) including movable plant and machinery, machinery spares, tools and accessories, both present and future, subject to prior charges created/ to be created in favour of the Companys bankers on inventories. Also secured by the personal irrevocable guarantees given by three Directors and by 2,918,729 shares in the Company pledged by two of the said Directors and two private companies in which they are Directors. Due within a year Rs.95,283,483 (previous period Rs. 41,098,350).
ii) from banks are secured by a first charge on specific book debts and by way of a third charge on the fixed assets of the Company. Also guaranteed by the personal irrevocable guarantees given by three Directors : Due within a year Rs.24,139,613 (previous period Rs. 19,103,794).
(c) Other loans represent :
i) loan from District Industries Centre, Punjab, Rs 2,100,000 (previous period Rs 2,100,000) guaranteed by Punjab State Industrial Development Corporation against pledge of bank fixed deposits and interest thereon. Due within a year Rs Nil (previous period Rs.Nil).
ii) loans from finance companies Rs 1,309,619 (previous period Rs 1,813,689), secured by hypothecation of three motor cars. Due within a year Rs.924,488 (previous period Rs 883,526).
FIXED ASSETS
1. The Company has revalued its lands, buildings and plant and machinery acquired upto March 31, 1997 as at December 31, 1997 on the basis of an independent valuation through an approved valuer which resulted in an aggregate increase in their gross block by Rs. 422,994.927 which was credited to revaluation reserve. The net block of fixed assets as on June 30,2002 includes Rs. 355,131,177 on account of this increase.
2. Depreciation for the period includes Rs. 18,675,292 (previous period Rs. 22,713,232) additional depreciation on account of revaluation of assets.
OTHER NOTES
Current period Previous period Rs. Rs. 1. Estimated amount of contracts remaining to be executed on 876,035 1,495,619 capital account (net of capital advances) and not provided for
a) Income-tax 1,028,716 1,028,716
b) Excise duty 6,029,155 5,663,168
c) Octroi duty paid under protest - 9,219,220
d) Interest charged by banks and paid under protest 11,202,263 11,202,263
receivable from DOT -
State Bank of Patiala 8,692,352 48,465,123
State Bank of India - 6,928,006
Canara Bank 10,749,171 19,239,534
Bank of Punjab Limited - 13,878,179
American Express Bank Ltd. 7,268,666 31,698,263
3. The related liabilities in respect of term loans availed against deferred payment receivables from State Bank of Patiala, State Bank of India, Canara Bank, Bank of Punjab Ltd. and American Express Bank Ltd. respectively have been set off against the related specific deferred receivables from Bharat Sanchar Nigam Limited (BSNL) which have been assigned in favour of the said banks in line with the terms of the agreement between BSNL and the Company. These terms are irrevocable and have been ratified by the Board of Directors. Under these terms BSNL issues cheques directly in favour of the respective banks, thus directly discharging the liability of the Company. As the Company has established a valid right of setoff, it is reporting the net amount as follows :
Current period Previous period Rs. Rs.
Less : Term loans outstanding 26,710,189 120,209,105
Net Deferred Receivables 10,009,115 20,247,433
Directors sitting fees 72,000 62,000
5. Expenditure in foreign currency (on cash basis)
Travelling 2,696,650 1,654,377
Others 78,460 155,903
6. CIF value of imports Raw materials - 303,347
Capital goods/spares 461,028 2,689,647
Class of goods - Jelly filled cables
Licensed capacity Not applicable Not applicable
Installed capacity* 3,803,000 CKM 3,803,000 CKM
Actual production** 1,348,608 CKM 2,374,256 CKM
** Net of testing rejections 15,137 CKM (Previous year 52,281 CKM).
8. Raw materials consumed
Unit Current period Quantity Value Rs. Copper Kg. 2,282,836 254,828,771
Galvanised steel tape Kg. 2,337,608 55,677,406
Polyethlene granules Kg. 2,349,115 106,493,079
Others - - 96,664,669
513,663,925
Previous period Quantity Value Rs. 3,931,435 477,643,347
3,169,906 86,777,371
3,992,313 206,465,149
- 135,615,243
906,501,110
Value Percentage Value Percentage Rs. Rs. Raw materials
Imported 200,602 0.04% 1,255,182 0.14%
Indigenous 513,463,323 99.96% 905,245,928 99.86%
513,663,925 100.00% 906,501,110 100.00%
Imported 1,102,238 6.62% 4,065,944 18.35%
Indigenous 15,538,959 93.38% 18,094,858 81.65%
16,641,197 100.00% 22,160,802 100.00%
Class of goods Unit Qty. Value Rs. Jelly filled cables
- Opening stock CKM 280,446 143,627,118
- Closing stock* CKM 256,950 132,787,061
- Sales** CKM 1,372,104 783,482,546
Qty. Value Rs. 273,481 115,668,345
280,446 143,627,118
2,367,291 1,531,031,570
** Sales are net of scrap sales Rs. 8,922,567 (Previous period Rs. 15,156,209).
11. Auditors remuneration
Current Period Previous period (Rs.) (Rs.) As auditors - Audit fee (excluding service tax) 400,000 440,000
In other capacity : - -
- Certificates, etc. 22,500 30,000
Out of pocket expenses 172,227 142,551
13. As the Company has substantial unabsorbed depreciation and carried forward business losses under the. Income-tax Act, 1961 and is unlikely to have taxable income in the forseeable future, the deferred tax assets/ liabilities have not been recognised. This is in accordance with Accounting Standard-22 (AS 22) `Accounting for taxes on income issued by the Institute of Chartered Accountants of India.
14. Related party disclosures under Accounting Standard 18
Joint Venture : Hitachi TCL Cables Private Limited
Key managerial personnel and their relatives : Ms.Bubli Brar, Mr.D.C.Mehandru and Mrs.G.K.Brar (mother of Ms.Bubli Brar) Enterprises over which key managerial personnel and their relatives exercise significant influence : Falcon T&M Enterprises Private Limited, Dane Foods India Limited, Dashmesh Fab Yarns Private Limited, Sobra Power Private Limited. Joint Venture (Rs.) Packing materials consumed
Rent
Interest
Expenses recovered Loans and advances written off
Balances outstanding as at the period end
- Unsecured loans
- Loans and advance (considered good) 9,233,873*
Key managerial Enterprises over Total personnel and which key managerial their relatives personnel and their relatives exercise significant influence (Rs.) (Rs.) (Rs.)
- 3,996,061 3,996,061
1,575,030 - 1,575,000
567,030 - 567,030
- 826.523 826,523
308,000 - 308,000
1,487,611 10,721,484
1,375,736
Note : Details of remuneration to whole time directors are given in note 5 above.
15. Earnings per share Current period Previous period Loss as per profit and loss account attributable to equity shareholders Rs.(384,190,367) Rs.(23,764,751) Weighted average number of equity shares outstanding 9,890,000 9,890,000 Basic and diluted earnings per share (face value - Rs.10 per share) Rs.(38.85) Rs.(2.40)
17. During the period April 1, 1998 to September 30, 1999, a customer paid for `sales effected prior to April 1995 after deducting therefrom Rs.41,054,509 (out of which Rs. 14,253,762 has been received during the previous period) being their claim for modvat credit availed by the Company on the raw materials covered under the price variation clause of the contract for sales billed thereunder. The Punjab and Haryana High Court has admitted the Companys petition challenging the deductions so made, on the basis of correspondence received from the concerned customer indicating that the modvat credit benefit on such raw material is not to be adjusted in arriving at the sales price. In the view of the management, the customers claim is not legally sustainable and, as such, no provision in respect thereof is required in the accounts.
18. During the period under review, the company extended certain trade/
20. As the current financial year is for a period of 15 months ended June 30, 2002 whereas the previous financial year was for a period of 18 months ended March 31, 2001, the corresponding figures of the previous period are not directly comparable with those of the current period.
21. Previous period figures have been recast, wherever necessary.
22. Additional information as required under Part IV of schedule VI to the Companies Act, 1956. Balance Sheet Abstract and Companys General Business Profile.
i) Registration No. 5385 State Code 53 Balance Sheet Date June 30, 2002.
ii) Capital raised during the year (Amount in Rs. Thousands)
Public issue Nil Rights issue Nil
Bonus issue Nil Private placement Nil
Total liabilities 1,261,175 Total assets 1,261,175
Sources of funds Application of funds
Paid up capital 98,900 Net fixed assets 628,149
Reserve & surplus 362,065 Investments 1,000
Secured loans 799,089 Net current assets 287,958
Unsecured loans 1,121 Misc. expenditure 9,516
Accumulated losses 334,552
iv) Performance of the company (Amount in Rs. Thousand)
Turnover 792,405 Total expenditure 1,195,633
Profit/loss before tax - Profit/loss after tax 384,190
Earning per share (Rs.) (38.85) Dividend rate -
Item Code No. 85.44
Insulated included enamelled or anodised wire cable including coaxial cable and other insulated electric conductor whether or not fitted with connectors, optical fibre cables made up of individually sheathed fibre whether or not assembled with electric conductors of fitted with conductor.