a) Security Details
i) The Term Loan facility from Banks along with interest are secured (incl additional security) by EM of Factory, Land and Building of the plant of the company at Khopoli.
ii) Further secured by Personal Guarantee of Anil Agrawal.
b) Repayment Schedule
The term loans are repayable in 72 EMI commencing from April 2009
1. Fixed Assets, Stocks and Cash balance were physically verified by the management. The Certification of the same given by the management has been relied upon by the auditors.
2. The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realization in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.
3. Balances of Current Assets and Current Liabilities are subject to confirmation and consequential adjustment, if any. During the year, the management has done assignment of some of its receivables / payables as per mutual discussions with the respective parties. The necessary documentation in respect of the same are under execution.
4. In absence of the parties registered as micro, small or medium as defined under the Micro Small & Medium Enterprise Development (MSMED) Act 2002, the relevant information has been considered as NIL. Hence, the required discloses under the MSMED Act are not given.
5. In view of the nature of the business of the company being as per the specification of the customers, the quantitative details are given to the extent available and are not of comparable items.
6 The company has accounted for liability on account of Employee retirement benefits on accrual basis but the same is not on actuarial basis as the amount of the same is not material. However, the actuarial valuation for the same shall be done in the coming year.
7 The company has one subsidiary each in Singapore namely Readymade Steel Singapore Pte Ltd. and in India namely Kridhan Infrasolutions Pvt. Ltd. The company has made long term investment in the equity of these companies.
The company has received notices of demand from Office of Income Tax for '''' 68.76 lacs for which it has filed / represented at appropriate forums and are pending at these forums. Based on the progress made and as per the best estimates made by the company, based on legal opinion obtained, the company will not be required to pay any material amount in respect of the same.
8. During the year, the company has converted its share warrants into capital, in tranches, for which full amount of the consideration had been received. In respect of some share warrants, the amount payable had not been received and accordingly, after due approval and in compliance with required formalities, these warrants had been forfeited. The amount already received, being in the nature of capital receipt has been credited to Capital Reserve.
9. Previous year’s figures have been regrouped, rearranged and reclassified wherever necessary to conform to current year’s presentation.