P R Cements Ltd. के अकाउंट के लिये नोट

Jun 30, 2011

1. Contingent Liabilities:

Contingent Liabilities not provided for:

(Rs. in lakhs) SI. No. Particulars As at 30.06.2011 As at 30.06.2010

i) AP Sales Tax * 26.52 26.52

ii) Interest on Sales Tax @ 234.77 234.77

iii) Mining Cess -- 4.53

iv) Interest on Mining Cess # 85.89 43.60

* Sales Tax department has raised excess demand of Rs. 26.52 lakhs and on contest has agreed to reconcile the dues.

@ The Sales Tax department also charged interest on sales tax dues and Hon'ble BIFR, vide sanctioned scheme, directed the Department to consider waiver of interest and the same is pending with the sales Tax department.

# Department of Mines & Geology, Govt, of Andhra Pradesh has charged interest on mining cuss

dues and Hon'ble BIFR, vide sanctioned scheme, directed the Department to consider waiver of interest and the same is pending with the Mines & Geology Department. The Company has deposited an amount of Rs. 46.35 lakhs towards this disputed interest dues.

2. The Company was declared as sick Company by BIFR and BIFR ordered for Liquidation on which the company preferred an appeal to AAIFR and AIFR dismissed the company's appeal vide their order dated 13th May 2006 and the company filed a Writ Petition in the Hon'ble High Court of Andhra Pradesh and Hon'ble High Court of Andhra Pradesh has remanded the case back to AAIFR. AAIFR has remanded the case back to BIFR vide its order dated 26th March 2008. BIFR has sanctioned a rehabilitation scheme in the hearing dated 18th April 2011 and the Company is in the process of implementing the said scheme.

3. The Company has settled and paid all secured loans i.e. term loans with IFCI, IDBI, ICICI and working capital loans with Central Bank of India under OTS and accounted the same during the current accounting year as follows:

As part of term loan settlement Company has to allot to I F C I, 0.01% Redeemable Preference Shares for an amount of Rs. 71.22 lakhs and accordingly Rs. 71.22 lakhs was converted into Preference share application money.

4. An amount of Rs. 102.00 lakhs was brought in as Equity Capital and the same is accounted as Equity share application money pending allotment as per sanctioned scheme.

5. Assets acquired under Hire purchase / leases are hypothecated as security for the loans obtained for acquiring the said assets.

6. As per the sanctioned scheme:

a. ESI dues of Rs.2.05 lakhs were provided during the year.

b. Mining Royalty of Rs,4.53 lakhs was provided during the year.

c. Depreciation relating to earlier years 2003-04 to 2006-07 amounting to Rs. 268.63 lakhs were provided during the year.

7. During the year the Company has written off debtors amounting to Rs.72.68 lakhs.

8. During the year the Company has written back Credit balances which were no longer payable amounting Rs.114.26 lakhs.

9. During the year the company has not provided remuneration to Directors.

10.Expenditure incurred on the employees drawing not less than Rs. 24.00 Lakhs if employed throughout the year and Rs.2.00 lakhs per month if employed for part of the year was 'NIL'.

11.No confirmation letters have been obtained from sundry debtors and sundry creditors as on 30.06.2011.

12.Sundry debtors includes Rs. 12.19 lakhs for which suits pending, against which provisions has not been made as the management is confident of recovering the same and opined that no provision is required.

13. The information required as per clause 4c and 4d and notes thereon part II of Schedule VI of Companies Act, 1956.

14. Previous year figures have been reclassified and regrouped wherever necessary.

15.Schedules I to XV form part of Balance Sheet & Profit and Loss account and have been authenticated.

---

Jun 30, 2010

1. Contingent Liabilities:

NIL

2. The Company was declared as sick Company by BIFR and BIFR ordered for Liquidation on which the company preferred an appeal to AAIFR and AIFR dismissed the company's appeal vide their order dated 13-5-2006 and the company filed a Writ Petition in the Hon'ble High Court of Andhra Pradesh and Hon'ble High Court of Andhra Pradesh has remanded the case back to AAIFR. AAIFR has remanded the case back to BIFR vide its order dated 26th March 2008.

3. The Company closed its operations in March 2003 and commenced the production during January 2008. The management of the Company has decided to continue to adopt the going concern basis for preparing the financial statements for the year under review.

4. The Company has proposed for settlement of all secured dues under one time settlement and accordingly submitted the proposal to IDBI, ICICI(SCB), IFCI and Central bank of India. The above institutions and banks has settled their dues as follows:

I. IDBI

As per books of the company the principal outstanding is Rs. 152.84 lacs, and interest accrued and accounted there on is Rs 223,89,298. IDBI has agreed to settle their entire dues for an amount Rs. 68,97,000/-.

II. ICICI : As per the books of the company the principal amount outstanding is Rs. 74,92,000 and interest accrued and accounted there on Rs. 1,11,94,649. ICICI has assigned their debts to SCB and accordingly SCB has settled all their dues for an one time payment of Rs. 40,00,000.

III. IFCI: As per books of the company the principal outstanding is Rs. 4,74,77,000 and interest accrued and accounted there on is Rs. 9,70,20,292, IFCI has settled the dues for a cash payment of Rs. 2,37,39,000 and 0.01% redeemable preference shares for Rs. 71,22,000

IV. Central bank of India: As per the books of the company outstanding balance in the against the working capital facility is Rs. 2,40,97,204. the bank has agreed to settle all their dues for an amount of Rs. 85,00,000/- .

The company has paid the one time settlement dues to IDBI, SCB, and Central bank of India. However the company has paid IFCI the cash payment as agreed and has not yet issued 0.01% redeemable preference shares.

The company has not adjusted the payments made to the institutions and banks against the loan outstanding in the respective accounts.

The management has decided to adjust the following waivers against the debit balance of Profit and Loss account on sanction of rehabilitation scheme by honorable BIFR.

5. During the year interest on term loan and working capital loans has not been provided as the same is proposed for waiver under OTS.

6. During the year the company has not provided remuneration to Directors.

7. Accumulated depreciation for earlier years 2003-04 to 2006-07 not provided in the books of the Company is amounting to Rs. 2,68,62,876.

8. Expenditure incurred on the employees drawing not less than Rs. 24,00,000 if employed through out the year and Rs.2,00,000 per month if employed for part of the year was 'NIL'

9. No confirmation letters have been obtained from sundry debtors and sundry creditors as on 30-06-2010.

10. Sundry debtors includes Rs. 25,32,000 for which suits pending, against which provisions has not been made.

11. The information required as per clause 4c and 4d and notes thereon part II of Schedule VI of Companies Act, 1956.

12. The company has got grant of Sales Tax Deferment vide G.O.M.S. No. 108 Inds & Com(IP) Dept. 20-05-1996 from 19-02-1997 to 18-02-2011 as per Lr.No. 10/3/5/1639/1D dt 18-08-1997. Hence deferred Sales Tax liability treated as Unsecured Loan.

13. Previous year figures have been reclassified and regrouped wherever necessary.

14. Schedules I to XI form part of Balance Sheet & Profit and Loss account and have been authenticated.