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SCHEDULE - ‘U’
Notes forming part of the Accounts
1. Loan Funds:
(a) External Commercial Borrowing from DBS Bank is
secured by first charge on the specific fixed assets of
the Kandla SEZ.
(b) Working Capital facilities are secured against
hypothecation of stocks and book debts of the
Company and further secured by way of second charge
on all the fixed assets (excluding specific fixed assets)
of the Company. The borrowings are guaranteed by
Directors and their relatives.
2. Contingent liabilities not As at As at
provided for in respect of: 31.03.2011 31.03.2010
(Rs. in Lac) (Rs. in Lac)
(a) Disputed Tax and
other Matters
Income Tax 21.14 –
Sales Tax 114.82 –
Lease Tax 16.34 16.34
Claims not acknowledged
as debts – 1.74
The Company has taken legal and other steps
necessary to protect its position in respect of these
claims, which in its opinion, based on professional
advice are not expected to devolve. It is not possible to
make any further determination of the liabilities which
may arise or the amounts which may be refundable in
this respect.
(b) Corporate Guarantees given
on behalf of subsidiaries and
step down subsidiaries 34,380.50 36,112.00
(Amounts outstanding
there against) 10,848.92 19,247.55
3. (a) Sundry Creditors in Schedule ‘L’ to the Accounts include
(i) Rs. 16.77 Lac (Rs. 36.31 Lac as at 31.03.2010) due
to micro and small enterprises registered under the
Micro, Small and Medium Enterprises Development
Act, 2006 (MSME) and (ii) Rs. 6,232.34 Lac
(Rs. 9,226.86 Lac as at 31.03.2010) due to other
creditors.
(b) No interest is paid / payable during the year to any
enterprise registered under MSME.
EVEREST KANTO CYLINDER LIMITED
SCEHDULES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH, 2011
(c) The above information has been determined to the
extent such parties could be identified on the basis of
the information available with the Company regarding
the status of suppliers under the MSME.
4. Estimated amount of contracts As at As at
remaining to be executed on 31.03.2011 31.03.2010
Capital Account and not (Rs. in Lac) (Rs. in Lac)
provided for (net of advances) 353.08 1,249.43
5. During an earlier year, the Company had raised a sum of
USD 35 Million by issue of Zero Coupon Foreign Currency
Convertible Bonds (FCCB) which is due in 2012. The principal
terms of the FCCBs are given below:
(i) The bond holders can exercise the option to convert
into equity shares at any time after 41 days from the
date of issue, upto seven days prior to maturity, at a
fixed conversion price of Rs. 303.36 per share with a
fixed rate of Rs. 39.84 to USD 1 (i.e. a conversion ratio
of 13,133.1279 shares per bond).
(ii) On expiry of one year from the date of issue of the
bonds, i.e. on 9 th October, 2008, the conversion price
has been reset to Rs. 271.32 (i.e. a conversion ratio of
14,684.0103 shares per bond).
(iii) The Company may opt for early redemption of the
bonds at a redemption premium that gives the bond
holder a gross yield of 7.25% per annum (compounded
half yearly), provided bonds outstanding are less than
10 per cent of the bonds originally issued.
(iv) The Company may at its absolute discretion, at any
time on or after 3 years from the date of issue of bonds,
convert all outstanding bonds, provided the closing
price of shares, during the specified period, is at least
130 per cent of the applicable early redemption
amount.
(v) Bonds outstanding on the maturity date will be
redeemed at 142.8010% of the principal amount.
Due to variables currently indeterminable, the premium on
actual redemption is not computable and hence will be
recognised if and as and when the redemption option is
exercised. Such premium shall be first charged to the
available balance in securities premium account.
Schedules forming part of Financial Statements Annual Report 2010-11
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