FIXED ASSETS Examples of notes to accounts relating to above fixed asset are given below : Goodwill ======== 1. The goodwill of Rs. _________ shown in schedule _______ annexed to the Balance Sheet represents excess of consideration paid to the Shareholders of ___________ Private Limited over the book value of the net assets taken over pursuantto the Scheme of Amalgamation. No amount has been written-off towards amortisation of the goodwill. 2. Goodwill represents excess of liabilities over assets taken over on amalgamation under the scheme. 3. Goodwill on amalgamation of A Ltd. ____________ Less : Written off todate ___________ 4. During the year trade marks and goodwill pertaining to certain brands of cigarettes manufactured by the comapny have been valued by __________ Limited, marketing consultants at Rs. _________ lacs (after considering the capitalised value of present trunover of the related brands) which have not been reflected in these accounts. Land ==== 1. Land and Development include some leasehold lands the amount of which is not ascertainable. 2. Land and Site Development, Building and Plant & Machinery include cost of land, Building and Plant & Machinery of Rs. _______, Rs. ______ and Rs. ______ respectively given on lease at the rates of Rs. ______ p.m. to Jyoti Foundations. 3. Pending completion of formalities lease deeds of land of a cost of Rs. ___________ at and of Rs. __________ lacs (as per Valuer's Report) at _______ have not been executed in favour o the company. 4. Leasehold land includes Rs. ________ in respect of which the leasehold deed with Government of Maharastra is pending for execution. 5. Cost of Land comprises (i) Freehold Land Rs. ______ and (ii) Leasehold land Rs. _______; of lwhich lease agreements of Rs. _________ not been executed. 6. The Company's title of Land vlaued at approximately Rs. _____ is under dispute for which suits are pending before the Delhi High Court. 7. No write off has been made in respect of lease premium paid on lease hold land since the leases are granted for a long period. 8. The conveyance deed of land at Focal Point, Ludhiana allotted by the Estate Office, Urban Estate, Punjab has not yet been got executed in the name of the company. The additional amount demanded has been paid subsequently. Similarly, staff quarters at Dugri Road, Ludhiana had been allotted in the ame an ex-director of the company. 9. Advances in respect of fixed Assets inlcude : (i) an advance of Rs. ____________ paid in terms of an agreement for the purchase of land (total price Rs. _________) and an advance of Rs. ____________ paid in terms of an agreement for the purchase of residential premises (total price Rs. _______). Although possession of premises has been taken by the company in both instance, conveyance and other legal formalities have not been completed. No depreciation has been provided on these amounts. 10. Land admeasuring ___________ acres are under orders of transfe issued by the Government of Tamilnadu, from M/s. ________________ Ltd. to the company. Out of the above said ___________ acres, _________ acres have been identified for the present project and documents are submitted for regisration. The registered documents are yet to be received from the registering authorities. 11. The free hold land (Agriclture) purchased by the Company for Rs. _____ measuring two bighes at Raipur Colony New Delhi has been notified for acquisition under sections 4 & 6 of the Land Acquisition Act. The company has filed a writ petition against the acquisition in the Hon'ble Delhi High Court which has been admitted. 12. The company has applied to the Bihar Government and other State Governments for exemption of its lands in Jamshedpur and else-where from the Urban Land (Ceiling and Regulation) Act, 1976. The decisions of the Bihar and other state Government are still awaited. 13. The leasehold land measuring ___________ Sq. Mt. purchased from UPSIDC has not been registered in the name of the company as the stipulated instalments still not due for payment. 14. The Company had filed necessary Returns under Section 6 of the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the vacant lands owned by it in various states and has also applied to various State Governments under Section 20 of the said Act, requesting exemption of vacant lands from the ceiling limits. The Company has received necessary exemption in respect of lands in the State of Maharashtra and certain lands in the State of Andhra Pradesh and the exemption in respect of other lands is awaited from the respective State Governments. 15. Cost of land acquired through Tamil Nadu Govt. has been estimated and provided for in the absence of a claim from the Government. 16. Land and Development include some leasehold lands the amount of which is not ascertainable. 17. Tea estate land include some leasehold land the value of which is not ascertainable. 18. The cost of land represents provisoinal payments towards compensation, rehabilitation grant and other expenses for which detailed accounts are yet to be received from the concerned authorities, which will determine the nature of land to be classified as free-hold or leasehold.The title of the land will pass on thereafter to the Company on completion of legal formalities. 19. Proportionate lease premium of leasehold land Rs. __________ (Previous Year Rs. _______) has been written off during the year. 20. No amount has been written off in respect of premium on leasehold land. 21. No write off has been made in respect of the leases relating to leasehold land as the leased are for perpetuity. 22. Conveyance and other legal formalities for office premises of the vlaue of Rs. ___________ lacs and residential premises of the value of Rs. ____________ lacs have not yet been completed as at March 31, 2000_______. 23. Registration charges, estimated at Rs. ____________, in respect of leasehold land, payable after the lease deed is executed, have not been provided for in the accounts pending execution of lease deed. 24. Registration charge estimated at Rs. _________ in respect of ownership flats at Borivili, Bombay, have not been provided in the accounts. The depreciation on has also not been provided. 25. (a) The lease deed in respect of land measuring _______________ Sq. meters acquired at Mandideep valuing Rs. ___________ lacs is pending for execution. (b) During the year ______ the company had purchased land at Rishra (W.B.) along with incomplete construction of Flats nder an agreement dated __________ for Rs. ____________ lacs and has furthe incurred a sum of Rs. ___________ lacs on further construction of Flats. The company has been given the possession of the said land and building but the conveyance deed has not been executed in favour of the company so far. Further the company has entered into an agreement for sale of said property on `as is where is basis' for a sum of Rs. ___________ lacs against which an advance of Rs. ____________ lacs has been received. However, possession as well as Sale agreement is yet to be executed and therefore, the advance of Rs. _______ lacs has been shown as other liabilities. 26. Land (Freehold) inlcudes Rs. __________ land purchased during the year 2000_________ by the company for which the transfer in the name of the company is pending, subject to execution of the documents from Municipal Corporation of Greater Bombay. 27. Conveyance deed for _______________ acres of land at Dadri has not yet been executed. 28. Sale Deed in respect of land and building including fixutres and fittings pruchased has not been executed. 29. Transfer of land and buildings in respect of certain undertakings acquired as going concerns is yet to be completed pending receipt of requisite permission from the authorities. Some of the liabilties in respect of these undertakings also remain to be transferred. 30. The company holds leasehold lands whose lease expires on 22-4-2000. 31. The land has been acquired by the company under a leasecum-sale agreement with Karnataka Industries Area Development Board. 32. Fixed assets include Rs. ________ fixed asses include Rs. ____________ being the proportionate cost in respect of the company's interest to the extent of _____________% in the Building (on leasehold land) along with other assets in A Ltd. at Calcutta on-ownership basis. The said assets in A Ltd. have been charged against the amount payable as rent for land and proportionate share of expenses. 33. Total purchase price of assets at Amravati amounting to Rs. 15;00,000 is allocated to (i) Land Rs. 1,00,000 and (ii) other assets Rs. 14,00,000. 34. Leasehold Land (Perpetual) -- Leasehold Land (Long-Tems) -- 35. Land and site development, Building and Plant & Machinery include cost of land, Building and Plant & Machinery of Rs. _________ Rs. _________ and Rs. _________ respectively given on lease at the rate of Rs. ___/- p.a. to Hospital Public Trust. 36. The Lease hold land inlcudes cost of ___________ Acres of land valuing Rs. __________ lacs (Previous year Rs. _________ lacs) acquired by the Company at Shahjahanpur (U.P.) The cost of this land represents payment of premium development charges and stamp duty for execution of lease deed paid by the company. The case regarding additional compensation if any, shall be accounted for as and when the case is decided. 37. The company's application for retention of lands in excess under the Urban Land Ceiling Act is pending. 38. The Government of Bihar disputed the company's title on 10 acres of farm land at Narkatiaganj but the Additional Sub-Judge of Bettiah decided the case in favour of the Company for 5 acres. Sicne the Government has filed appeal against the said judgement, no adjustment for the value thereof has been made. 39. Part of land admeasuring _______________ sq. yards was acquired by the Government for widening the road in 19__________, against that Rs. ___________ were received as adhoc payment as compensation has not been adjust in accounts pending finalisation. 40. Under the Assam Fixation of Ceiling of Land Holdings Act, 1956, undeveloped lands measuring approximately 10 hectares have vested in the Government of Assam, the compensation of which will be accounted for as and when received.' 41. The company was a co-owner of some land at Ballygunge Place, Calcutta which was acquired by the Government and possession taken over by the land Acquisition Collector. The amount of Rs. ____________ received as part compensation has beendeducted from the total value of Rs. _______ of such land but no adjustment has been made for the loss on such acquisition, pending final decision of the joint reference petition filed by the company challenging the award. 42. No adjustment has been made in respect of ______________ acres of farm land at Narkatiagnaj surrendered to state Government as the compensation receivable for the same is pending setlement. Building ======== 1. Building inlcude value of fully paid share of Rs. __________ held in cooperative housing societies for occupation of flats. 2. Buildings include ownershi flats of the value of Rs. ______________ in Co-operative Housing Societies. 3. Buildings include the cost of the Residential flat on freehold land at Delhi the possession of which was handed over to the company on payment of Rs. __________ same is shown as fixed assets of the company pending execution of conveyance in favour of the company. 4. In respect of a property and other assets thereon costing in aggregate Rs. ___________ the company h as entered into an agreement of sale, handed over possession and received full sale consideration during the year 19____. The Profit on disposal has been accounted in the accounts even though the conveyance deed in respect of the same property has not yet been executed. 5. Building includes cost of a building acquired for scientific research center at Bombay for Rs. ___________ (Previous Year Rs. _______). This includes cost of Land not known separately. 6. Additions to Building, Machinery, Furniture & Fixtures, Office Equipments, Library and Laboratory Equipments, include capital expenditure on scientific research Rs. ____________ (Previous Year Rs. _________). 7. Buildings include Rs. __________ being cost of flats, Buildings yet to be registered in the name of the company. 8. Additions include Rs. ________ paid for certain property for which the relative conveyance deed is yet to be executed. 9. "Buildings include ownership flats of the value of Rs. ________ in Co- operative Housing Societies." 10. "Buildings includes Rs. _________ value of property jointly owned with another company." 11. "Staff Quarters (on freehold land)" includes Rs. __________ lac (Prev. yr.-Rs. ____________ lac) being the cost of ownership flats., The Corporation holds 61 shares (Prev. yr-61 shares) of the face value of Rs. ____________ lac, (Prev. yr.-Rs. ____________ lac) in co-operative housing societies and in a private limited company in respect of ownership flats. 12. Residential premises of Rs. ___________ lacs had been capitalised vide Memorandum of Understanding dated August 28, ___________ as amended by supplemental memorandum of Understanding dated December 14, _______ as the company was given constructive possesson on October 27, ________ Conveyance an other legal formalities have not yet been completed as at March 31, ________. 13. Office premises of Rs. ____________ lacs had been capitalised vide Memorandum of Understanding dated April 27, ________ as the possession of the premises was taken by the company on June 7, _______ conveyance and other legal formalities have not yet been completed as at March 31, ______. 14. Under the terms of the agreemen of Licence dated 28th August ____ with X Limited (the Licensee), the building constructed by the Licensee on the land leased to it by the company became the property of the company on and from 1st October, _______ without the company having to pay any sum therefor. Accordingly no amount has been brought into the account in respect of the said building. 15. Under "Fixed Assets" sub-headings `Buildings' and `Research Centre Buildings' the cost of Rs. ___________ and Rs. _________ respectively, include Rs. _________ and Rs. _________ respectively pertaining to old structures standing on land taken on lease. The amount is paid as demolition vlaue and no registerd documents are made for the same. 16. The Company has agreed to purchase office premises at cuffe parade, Bombay for which it has made an adhoc advance of Rs. __________ crores to the seller. Due to Pending completion of legal and other formalities, this amount has not been capitalised. 17. The company has agreed to purchase Residential Premises at Poornima Apartments, Bombayfor hwich it ha advanced a sum of Rs. _________ lacs to the seller. Due to Pending completion of legal and other formalities, this amount has not been capitalised. 18. Building include (at net book value) (a) Rs. ____________ constructed on land not belonging to the Company. (b) Rs. __________ cost of land and building are not known-separately. (c) Rs. ____________ constructed on lease hold land. (d) Rs. ____________ Residential flats. 19. Certain Buildings of the company have been constructed on the lands of which conveyance deeds are yet to be executed in favour of the company. 20. The Company has entered into a sub-lease agreement for the office premises of four flats for 57 years and has paid a sum of Rs. ________ as advance rent etc. The company in turn has borrowed from a Bank a sum of Rs. ________ on equitable mortgage by deposit of title deeds of said leasehold premises. As advised, the Company is showing the Asset represented by the said sub-lease under fixed assets schedule as a leasehold property value Rs. Nil. The said loan from the said Bank is described as fully secured by way of equitable mortgage as certified by them. 21. The company's buildings are on land belonging to X Limited for which no lease deed has been executed. 22. Cost of Building inlcudes : (i) Rs. _________ being part consideration for purchase of office premises and car park space costing Rs. _____________ represented by 165 shares (unquoted) of Rs. ____________ each fully paid up in X Commercial Ltd. Bombay. the difference of Rs. _________ has been shown under "Loan and Advance" in schedule _________. (ii) Rs. ____________ being proportionate cost ofbuilding held jointly with others. 23. The Company had negotiated a residential Flat on licence basis in abuilding `__________', _________ Road, Delhi, and spent Rs. _________ for repairs and renovations of the said flat, as per understanding with the party concerned. The flat has not been made available to the Company as the party has gone back on her words given. For the recovery of Rs. __________ and further claim for damages and interest, a demand has been made with the party. The negotiations with landlady Mrs. _____________________ are being conducted by Mr. _______________, Secretary of the company and on the finalisatio of the same, same will be accounted as and when received. 24. The Company's property being Flat at ____________ Co-operative Housing Society Ltd. valued at Rs. _________ (Original cost Rs. _________) and Furniture therein vlaued at Rs. _________ (Original cost Rs. ________) ae still under the occupation of the former managing director of the company. Legal steps have been taken to regain possession of the property and the matter is pending beofre the Court. 25. The Company has leased one of its ownership flat to a Director on a standard monthly rent of Rs. _________. 26. Fixed Asses inlcude an additoin of amount to the extent of Rs. _______ in respect of certain project offices for which proforma invoice/ receipts are available but purchase bills are not available. 27. The construction of a building at ________________ known as __________ was completed during the previous year. During the previous year, the company has entered i nto Articles of Agreement of sell some of the tenements at the building. However, the conveyance of the land and building to a co-operative society has not yet been effected.Profit on the sale of the property will be booked after the conveyance has been executed. Railway Siding ============== 1. Railway Siding include Rs. ____________ (Previous year Rs. __________) representing advanceswith the railways towards cost of railway sidings. The final bill fromthe ralways has not been received. 2. The Railway Siding has been capitalised duirng the year at an estimated cost of Rs. _____________ lakhs pending receipt of final adjustment bill from the Railway authorities. Depreciation for the same has been claimed for two years. 3. A revaluation of Land, Buildings, Railway Siding an Factory Plant and Machinery has been made as on December 31, ___________ excluding additions to Factory Plant and Machinery during _____________ based on valuation report of an approved valuer and is pending for Reserve Bank of India approval. The resultant surplus on such revaluation over the written down values of these assets amounting to Rs. ________ has been credited to Revaluation Reserve. Plant and Machinery =================== 1. Addition to Plant and Machinery inlcude financial charges Rs. _______. 2. Interest of Rs. __________ has been capitalised in respect of the tied loans up to the date of installation and commissioning of the Plant and Machinery in respect of _________ plant. 3. Additions to Plant and Machinery at _______________ include interst of Rs. __________ on assets acquired on defered credit basis for the full period of the defered credit of which Rs. _________ relate to the current period. 4. Cost of Plant & Machinery added during the year includes Rs. _________ in respect of interest pertaining to deferred payment liability under bills Re-discounting Schemes and Term Loan from IDBI in respect of the Machinery acquired and installed during the year. According to the previous practice such interest was treated as revenue expenditure. 5. The Revaluation of the Major items of Plant and Machinery of the sugar units and cement units of the Company earlier made in the year ____________ was updated on 1st April __________ by A.B.C. Consultancy Services, Bombay taking Machinery (Including additoins thereto) as on 1-4-_________ on the basis o assessment about the current value of the similar new Machinery. This updating has resulted in an increase in their book value of Rs. ____________ Crores and Rs. ____________ as on 1-4-________. 6. To give a realistic picture of the interinsic vlaue of the Plant & Machinery of the Company based on the report of the consultants appointed by us, the Plants & Machinery have een revlaued. The net surplus of Rs. _____________ arising out of the revaluation, after adjusting therefrom the difference on depreciation accumulated upto 30th September, _________ has been credited to the Revaluation Reserve Account. 7. Subsidy on generator receivd Rs. __________________ from Uttar Pradesh Financial Corporation stands deducted from the cost of generator debited under the head Plant & Machinery. 8. Irwma Nos. _______ and ___________ include cost of Land, Buildings and Plant & Machinery of Rs. ____________ lakhs Rs. ____________ lakhs and Rs. ____________ lakhs respectively given on lease at rate of Rs. _________ p.a. 9. Additions to machinery during the year inlcude a reduction of Rs. ____________ (previous year increase of Rs. __________) arising on the balance of Foreign Currency loans utilised for the purchase of machinery, consequent upon changes in exchange rates. 10. Additions to Plant and Machinery during the year inlcude an amount of Rs. __________ bein the difference consequential to change in rates of exchange on full repayment of the foreign currency loan. 11. Addition to fleet inlcudes Rs. ______________ capitalised on acount of increased liability inrespect of monies borrowed for purchase of ships, consequent to increase in rupee value of foreign currencies. 12. Additions to fixed assets include a sum of Rs. __________ representing the fluctuations in foreign exchange rates prevailing on 31st March, __________ over and above the exchange rates ruling on th date of sanction adjusted pursuant to change in accounting policy as explained in point number ________. 13. The adition to fixed assets include a sum of Rs. _____________ being expenditure incurred before commissioning of new works/projects as per details given in Schedule `R'. The expenditure has been allocated to Plant and Building in the respective cost ratios. The balance amount of expenditure in respect of incomplete works and projects in progress has been carried over and shall be capitalised in the year of comissioning. 14. Additions of Rs. ____________ lakhs to fixed assets during the current accounting period inlcudes Rs. ___________ lakhs being adition due to reinstatement of foreign currency loans as on 31-03____________ and Rs. _______ lakhs being future interest capitalised during the current year. 15. Aditons to plant & machinery include Rs. _________ lacs being increase in rupee liability consequent upon fluctuation in foreign exchange rate in respect of foreign currency loans ( Previous period : Rs. _________ lacs). 16. Plant and Machinery include Rs. ___________ (inlcuding Rs. ___________ additions during the year) being income tax on overseas technical know-how payments under protest for Fertilizer expansion Project. The company has preferred appeals to the concerned Authorities and the appeal has not yet come up for hearing. 17. Additions to Plant and Machinery during the accounting year 2000______ 2000_________ inlcudes interest amount of Rs. ______________ and guarantee commission amount of Rs. _________ on the assets acquired on defered credit basis for the full period of deferred credit. Out of the above amounts Rs. ________ (Previous year Rs. _________) relate to the current accounting year. Furniture and Fixture ===================== 1. The cost of furniture & fixture written off during the year at _______ is not ascertainable. The written down value/sale price has, therefore, been deducted rom the total cost. 2. In case of non-availability of original cost of furniture, the sale proceeds have been treated as `Capital Receipts and shown under `Capital Reserve'. 3. A sum of Rs. __________ has been shown in the schedule of Fixed Assets under the head Sale/Transfe of Furniture. The sum represents the Book Value of Furniture and Fixture lying with ex-employees of the company. The same being unrecoverable has been debited to their personal accounts. 4. The furniture and fixtures lying in the flat at Bombay transferred to the occupier were sold at Rs. ___________ at W.D.V. to the same buyer, who is a relative of a director and this has been ratified by the Board. Vehicles ======== 1. Vehicles include Rs. _________ (Rs. _________) under hire purchase. 2. Vehicles of the cost of Rs. __________ are yet to be registered in the name of the company. 3. Vehicles include vehicles leased to other companies in respect of which the depreciation has been provided in the Accounts. 4. Ownership of three otor Vans will be transferred in favour of company on final payment of the dues to them. 5. Some of the vehicles transferred to the company along with the industrial undertakings continue in the names of erst while owners. 6. Vehicles include vehicle valuing Rs. _____________ lacs (Previous year Rs. _____________ lacs) purchased by the company which has not been transferred demand) regarding purchase price with the seller. The matter is pending with the district court. The liability if any on this account shall be accounted for in the year of final settlement. 7. Four motor cars of the company are not in the possession of the company. They are with ex-employees who were using the same during their employment. The motor cars have not been returned to the company so far. Necessary steps are eing taken in this connection. 8. The registration Certificate in respect of vehicles taken over from __________ company (former quarrying contractors at _________ factory) and valued at Rs. __________, have not been transferred in the name of the company. However, depreciation has been provided in respect of these vehicles. The vehicles have since been transferred in the name of the company. Other Notes =========== 1. During the year, a fire accident had occurred resulting in damage to the jelly flooding unit for which insurance claim was made for Rs. ____________ lakhs. Authorised Surveyor's report in this regard is avaited by the Insurance company for settling the claim. The damaged Asset is included in the Fixed Asset Block as at 31-03______. 2. Due to the unprecedented floods at the Patalganga Complex of the company on 24th July, __________. Plant and Machinery were damaged and had to be repaired and reconditioned. The cost of such repairs and other incidental expenses (including the cost of periodic shut down for overhauling nd change of catalyst for which separate costs cannot be ascertained) aggregating to Rs. _________ Cross has been charged to various heads in the profit and loss account. 3. Fixed Assets (a) Fixed assets installed and put to use have been certified by the management & relied on by the auditors being a technical matter. (b) The detailed breakup of costs incurred under different sub head of the building during the year is as certified by the architect cum civil consultant of the company. 4. Certain fixed assets have been taken by the Company on Financial lease and future obligation for the rentals under lease is estimated at Rs. ________ lacs (Previous period : Rs. _________ lacs). *******