Jord Engineers India Ltd. के अकाउंट के लिये नोट

Mar 31, 2009

1. Securities for the Loans:

(i) a) Term Loans granted by ICICI Bank and State Bank of India and Working Capital Loans granted by State Bank of India and Development Credit Bank, assigned by the respective lenders in favour of Assets Reconstruction Co. India Ltd. (ARCIL), who has in turn assigned the same security in favour of Deutsche Bank AG, under the provisions of the Securitisation and Reconstruction of Assets and Enforcement of Security Interest Act, 2003 are secured by equitable mortgage and charge on the immovable and movable property of the Company both present and future, and guaranteed by some of the Directors of the Company, other than on book debt and current assets charged for the working capital facility. The said charge ranks pari passu with the other Lenders.

b) Working Capital Demand Loan and Equipment Finance Loan granted by Industrial Development Bank of India (IDB1) has been taken over by Stressed Assets Management Fund (SASF) and the same is to be secured by first charge on the Companys fixed assets, both present and future, and guaranteed by some of the Directors of the Company, other than on book debt and current assets charged for the working capital facility, ranking paripassu with the other Term Lenders.

[Note: ARCIL, (the profile of which is now held by Deutsche Bank AG) and SASF have issued sanction letters agreeing to the request of the Company for restructuring various loans involving waiver of accumulated interest and remission of part of the principal liability, subject to approval of High Court, other statutory bodies and compliance of procedure, Deutsche Bank and SASF, together control more than 75% of total borrowings of the Company)

c) Working Capital Loan granted to the Company by the Bankers are secured by second charge on Block of Assets of the Company besides being secured by personal guarantee of some of the Directors of the Company and secured as:

- Cash Credit against Hypothecation of raw materials Semi finished/ finished goods and other stocks.

- Packing Credit against Hypothecation of stock of goods meant for export.

- Bills discounted against the Hypothecation of accepted Hundies/ Bills and MTR.

- Over Draft against Hypothecation of BookDebts.

d) Term Loan from Mahindra & Mahindra Finance Ltd. is secured against specific vehicle purchased, ii) 17.5% Fully Secured NonConvertible Debentures and 18% Fully Secured NonConvertible Debentures allotted to Unit Trust of India on private placement basis on 16.3.1994 and 17.8.1995 respectively are secured by equitable mortgage and charge on the immovable and movable property of the Company other than on book debt and current assets charged to the bankers for working capital facility and rank paripassu with the other lenders as mentioned in (i)above and the same are overdue for redemption and have remained unpaid together with interest thereon.

2. In view of the accumulated carried forward losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future, therefore, it is not considered necessary to create Deferred Tax Assets in accordance with the Accounting Standard on "Taxes on Income" (AS22) issued by the Institute of Chartered Accountants of India.

3.In accordance with the Accounting Standard {AS 28) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company assessed potential generation of economic benefits from its business assets and is of the view that assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business. There is no indication to the contrary and accordingly the Management is of the view that no provision is called for in the accounts for the year.

All the operations of the Company are considered as a single business segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) issued by the Institute of Chartered Accountants of India, The Company is engaged in the manufacturing and dealing In Engineering Equipment, Accessories, Project Supplies and Services for various Industries. The entire manufacturing facilities of the Company are situated at the single location.

4. The Company has entered into related party transactions in the normal course of business with the. following parties:

I. Associates: Plenty Investment & Holding Private Ltd

II. Relatives of Directors: Mrs. Anantha Laxmi

III. Key Managerial Personnel

Mr. Rakesh Chaturvedi Chairman & Managing Director

Mr, T.R. Anantharaman Director

5, Contingent Liabilities not provided for: (Rs. In Lacs)

31.03.2009 31.03.2008 A In respect of guarantees given to various Parties by Bank and counter guarantees by company and some of the directors 15.59 75.10

B In respect of Income Tax for Assessment year from 199394 to 19992000, as the same is disputed in appeal at various stages 182.68 182.68

C Corporate Guarantees given to various parties as per contract 36.48 25.06

D Claims against the Company not acknowledged and disputed by the Company 371.73 371,73

6, In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equivalent to the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.

7. Income Tax and Sales tax liabilities for the period for which the assessment are not completed or proceedings pending before any of the authorities are not provided for in accounts, as the liabilities are not ascertainable. The same will be provided for in accounts as and when the liabilities are finalised.

8. The information regarding suppliers holding permanent registration certificate as an ancillary industrial undertaking or a Small Scale Industrial undertaking issued by the Director of Industries of State or Union Territory, is not available from relevant parties. In the absence of such information, the amount and interest due as per the interest on delayed payment to Small and Ancillary Industrial Act, 1993 is not ascertainable, hence, not disclosed separately.

9. The interest on account of overdue bills and other amounts payable to finance companies and on inter corporate deposits has not been provided as the company is negotiating with them for settlement. The amount is unascertainable.

10. The Company has discounted sales bills under Letters of Credit with various Banks provided by the customers. The same is backed by the Sales Invoices and Challan and outstanding against the respective invoices of the customers. The amount.is shown as Unsecured Loan. The discounting charges and other costs have been dealt with appropriately in the accounts.

11. In view of the Restructuring Scheme having already been sanctioned by more than 80% lenders, the same is under "*" implementation subject to the approval of Mumbai High Court and other statutory authorities like, BIFR, SEB1, etc. andompliance of the certain procedures. The management has been advised that the scheme shall be applicable to the remaining lenders also once the same is approved. As the scheme is yet to be implemented, the provision for interest has not been made in the Profit & Loss Account for the current year. As such, the Loan profiles of State Bank of India, IC1CI Bank and Development Credit Bank having been transferred/ assigned in favour of Asset Reconstruction Company India Limited (ARCIL), who has in turn assigned the same security in favour of Deutsche Bank AG, and loans from IDBI Bank are transferred/ assigned in favour of Stressed Assets Stabilization Fund (SASF) the outstanding amounts of these loans has been consolidated/replaced in the Accounts.

12. w During the year, after scrutiny and reconciliation of some of the balances of creditors and other accounts, Rs. 906.82 Lacs has been credited to Profit and Loss account under the head Extra Ordinary items, however, some of the balances of Debtors, Creditors, Loans and Advances given and taken, including from some of the Financial Institutions and Bankers, are " subject to confirmation, reconciliation and adjustments, if any. Amount of liability/loss likely to arise on such reconciliation has not been ascertained.

13. The Company has not transferred the unclaimed dividend amounting to Rs, 0.81 Lacs (Previous year Rs. 0,81 Lacs) to the Investor Education and Protection Fund (IEPF) due to non availability of reconciliation by the Share Transfer Registrars and the Bank, as per the provisions of section 205C of the Companies Act, 1956 pertaining to the year 199495, which is due to be transferred to the IEPF. However the amount is lying in a separate Bank Account.

14. I. The Company has received Show Cause cum Demand Notices from the certain Government authorities like Custom Department for Rs.107.92 Lacs, from Employees State Insurance Corporation for Rs.18.79 Lacs, for which the Company has already filed appeals with the competent appellate authorities. The cases are yet to be decided. The Company has been advised that the demand may not be tenable; hence, no provision for the same has been made in the accounts.

II. Additional Commissioner of Excise has passed an exparte order of adjudication against the appeal by the Company in response to a Show Causecumdemand Notice upholding a demand of Rs. 96.23 Lacs. The Company filed an appeal before the High Court of Gujarat, who has remanded back the same for reconsideration, which is yet to be decided. The Company has been advised that the demand may not be tenable hence no provision for the same has been made in the accounts.

III. Sales Tax Department of Gujarat has passed three exparte Assessment Orders for the years 19992000, 200001 and 200102 (part), which have been set aside in appeal by the Dy. Commissioner (Appeals), Sales Tax, Baroda, and sent back for reassessment. The reassessment is under process and hence no provision is made in accounts as the amount is unascertainable .

15. The accrued liability of Gratuity and Leave Encashment has been provided for as certified by Management,

16. The figures of the previous year have been regrouped/ rearranged wherever necessary to make them comparable. The figures in bracket represent to the figure of previous year.

17. Additional information as required under part IV of Schedule VI to the Companies Act, 1956.