| 1. Contingent liabilities not provided for (a) Counter guarantees to
bankers for performance of contracts Rs. 18.75 lacs (18.75 lacs) (b)
Claims against the company not acknowledged as debts Rs. 35.78 lacs
(35.78 lacs). (c) Liability on partly paid shares of Malvika Steel
Limited Rs. 450 lacs (450 lacs).
2. (a) Share Capital out of the issued, subscribed and paid up capital,
50 lacs equity shares of Rs. 10 each for cash at par allotted to the
public attached with optional detachable warrants with option to the
subscribers to subscribe for 3 equity shares of Rs. 10 each for cash at
par for every 5 fully paid up equity shares held. (Option to be
executed between 36 to 60 months from the date of issue.
(b) The company is a subsidiary of Usha (India) Limited under section
4(i) of the Companies Act, 1956 who is holding 14700014 equity shares
of Rs. 10 each. Of the above equity shares, 14000000 equity shares of
Rs. 10 each at par attached with 14000000 optional detachable warrants
were alloted pursuant to a contract for a consideration other than cash
and 2000000 optional detachable warrants were allotted on 21.7.94 with
an option to subscribe 10 equity shares at par against each warrant (to
be exercised between August 1, 1995 and Dec. 1, 1998).
(c) During the year ended 30.6.98, the company has alloted 660 equity
shares in exchange of warrants surrendered by the warrant holders.
3. Inventory includes excise duty of Rs. 23.01 lacs (33.13 lacs)
4. Under the loan agreement entered by the company with Raipur Alloys
and Steels Ltd., Raipur (M.P.) the company has loaned 2301 M.T. raw
material of scrap against which the company has received a deposit of
Rs. 149.57 lacs. Since the raw material has not been returned within
the stipulated time, the company has filed a suit for recovery in the
sessions court at Vizag in the month of July, 1994 for an amount of Rs.
40.56 lacs being the balance cost and interest for the period from 1st
January, 1994 till the date of suit. Raipur Alloys has lodged a
counter claim against the company for Rs. 29.32 lacs which is being
contested by the company.
5. Additional Information pursuant to the provisions under paragraph 3,
4C and 4D Part II of Schedule VI to the Companies Act, 1956.
6. Provision for Income Tax has not been made as there is no Taxable
Income.
7. Debit and Credit balances are subject to confirmation.
8. Figures have been expressed in lacs and rounded off to the nearest
of thousand. Figures in brackets represent previous year's figures.
9. Previous year figures have been regrouped wherever necessary.
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