Haryana Steel & Alloys Ltd. के अकाउंट के लिये नोट

Mar 31, 2009

1. Loans from Cygnet Projects Private Ltd. and Dhir & Dhir Asset Reconstruction & Securitisation Co. Ltd. are secured by first mortgage and charge on all the Company's immovable properties both present and future ranking pari- passu inter-se by deposit of title deeds of the Company's land at Murthal(Haryana) & hypothecation of all movable properties(save and except book debts) both present and future including movable machinery, machinery spares, tools & accessories subject to prior charge(s) created and /or to be created

a. i)In favour of the Company's Bankers on the Stocks of raw material, semi-finished, finished goods & consumable stores for securing borrowing for working capita! requirement in ordinary course of business.

ii)On specific items of machinery purchased by the company under the Equipment Credit facilities from the Industrial Finance Corporation of India Ltd. Now taken over by Dhir & Dhir Reconstruction & Securitisation Company Limited, to the extent of Rs. 155 Lacs.

iii)On specific cars [Purchased by the Company under Hypothecation Scheme.

Loan from Financial Institution were also guaranteed by two ex-directors in their persona! capacity.

b) Term Loan (ECS) from the original lender i.e. Industrial Finance Corporation of India Ltd. was taken over by Dhir & Dhir Assets Reconstruction & Securitisation Co. Ltd., is secured by an exclusive charge by way of Hypothecation of specific assets acquired i.e. Dust Collection Equipments and is guaranteed by two Ex-Directors in their personal capacity.

c) Cash Credit Loan from original Sender i.e. Punjab National Bank was taken over by Cygnet Projects Private Limited is secured against hypothecation of stock of raw material, stores, semi finished, finished goods and book debts. In addition, the loan is also secured against a second charge on the movable and immovable fixed assets of the Company ( Present & Future).

d) Working Capital Term Loan and Term Loan from Industrial Investment Bank Limited was taken over by M/s. Dhir & Dhir Asset Reconstruction & Securitisation Company Ltd.

2. CONTINGENT LIABILITIES :

In respect of claims against the Company not acknowledged as Debts Rs.1,641,555,908 (Previous Year Rs. 1,40,42,44,740/-) which broadly includes ;

a) Rs.2,16,86,648/-(Previous Year Rs. 2,73,19,307/- ) Excise Duty and Penalty demanded by the Excise Department in respect of unauthorised removal, mis declaration of classification of the final product and other excise matters. These matters are being contested at various Forums.

b) Rs 47,58,500/- (Previous Year Rs.47,58,500/-) Surities given to Sale Tax Department on behalf of various parties.

c) Rs.2,26,33,749/- (Previous year Rs. 1,87,96,643/-) service line charges demanded by Haryana State Electricity Board for the period from August, 1987 to March, 2009. The matter is being contested and is under arbitration.

d) Claims from suppliers amounting to Rs.8,92,15,404/- (Previous year Rs. 8,92,15,404/- in respect of rejection of material supplied by certain suppliers.

e) During the year, the Company has not provided interest on secured loans amounting to Rs.239,106,720 ( Previous year: 327,082,225/-) calculated at documented rates of interest on their outstanding amount since the Company has been declared sick by the Hon'able BIFR vide its order dated 19.04.2006. Accumulated interest on secured loans not provided for till 31st March, 2009 amounting to Rs.1,503,261,607 (Previous Year Rs 1,264,154,886/-)

f) Income Tax assessments for the assessment year 1994-95, 1995-96 & 2005-06 are pending. Earlier these matters were decided in Company's favour by CIT (Appeals), but the department filed an appeal before ITAT and the matters were remanded back for fresh assessment.

g) Sale Tax Assessments are pending for the year 2006-2007 & 2007-2008. The liability for the same, if any, is not quantifiable

3. Cheques amounting to Rs.205.79 Lacs( Previous Year: Rs. 185.56 Lac) issued by the Ex-Directors to various trade creditors were dishonored. The suits U/s 138 of Negotiable Instruments Act, 1881 are pending in various courts.

4. Five winding up petitions have been filed against the Company, out of which proceedings in four petitions have been stayed by the Hon'ble High Court of Punjab & Haryana, Chandigarh.

5. The Company has not yet identified the suppliers who are covered under the Interest on delayed payments, to Small Scale and Ancillary Industrial Undertakings Act, 1993. Consequently the liability, if any, on account of interest under this Act has not been determined. However, neither any claim for interest nor any intimation about their status has been received from any supplier.

Further, as required vide Notification No. ( GSR 129 (E) dated 22nd February, 1999) issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs, Govt. of India, the Company has not yet identified outstanding to Small Scale industrial Undertakings.

6. Inventory has not moved since last year and Net Realizable value approximately equals to cost of inventory so no diminution has been provided in the value of Inventory.

7. The company incurred net loss of Rs.2,38,25,635 (Previous year Rs.256,470,505/-) during the period ended on 31st March, 2009 and as on that date, the Company's current liabilities exceeded its current assets by Rs. 746,784,834.(Previous year Rs. 730,682,012/') and its total liabilities exceeded its total assets by Rs 683,081,530 (Previous year Rs.659,255,895/ -) Secured Creditors have recalled their loans, hence outstanding amount with them have been included in current liabilities for the purpose of above calculations.

8. Other current liabilities includes Rs. 10,68,722 payable to staff / workers of the company against their full & final settlement.(Previous Year Rs. 10,57,743/-).

9. The accounts have been prepared on going concern basis as the management is of the opinion that the Company will be able to continue its operations in the foreseeable future in view of the fact that rehabilitation scheme submitted by the company to the Hon'ble BIFR will be sanctioned. However production has been suspended since 03.06.2007 due to adverse market conditions.

10. In the opinion of the Board of Directors, the value placed on Sundry Debtors, Inventories, Loans and Advances as appeared in the Balance Sheet as at 31st March, 2009 would in the ordinary course of business be realised not lesser than the value as stated there-in except as stated otherwise.

11. The factory is closed. Salary & other benefits of workers/staff has not been provided in the books of account on the basis of no work and no wages.

12. Since the company has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future and hence it is not considered necessary to create deferred tax assets in accordance with Accounting Standard - 22 issued by the Institute of Chartered Accountants of India.

13.The Company is in the process of settlement of of dues with workers / staff for payment of wages / salary, gratuity other dues, hence the company has not provided additional gratuity for the period ended on 31.03.2009.

14.Previous year figures have been re-grouped / recast so as to correspond with those of the current period.

15. Schedules A to S form an integral part of the Balance Sheet and the Profit & Loss Account.