| 1. Contingent Liabilities
[a] Claims against the Company not acknowledged as debts Rs.450000
(Previous year Rs.450000).
[b] Sales Tax matters under appeal Rs. 4283617 (Previous year Rs.
4283617). No change in the legal position of the case.
2. Loans and Advances, Sundry Debtors and balances in supplier and
other accounts (with both debit and credit balances) are subject to
confirmation and subsequent adjustments, if need be.
3. Related Party Disclosures
(i) There is no related party, viz., the requirements of Accounting
Standard 18, issued by The Institute of Chartered Accountants of
India. Though LML Limited is strictly not a `related party', it is
being so considered to make the financial statements more transparent.
4. Segment Reporting.
There is only one segment i.e. "Two Wheeler" for the Company.
However, the Company's own manufacturing operations of two wheelers
have remained suspended for some years. Final outcome about its future
operations remains pending.
5. The Company has substantial carried forward losses and unabsorbed
depreciation. In view of uncertainty of sufficient future taxable
income which may be available for its realization, the Deferred Tax
Assets (Net) in accordance with Accounting Standard 22, issued by The
Institute of Chartered Accountants of India, has not been recognized
by way of prudence, as also in the previous year.
6. (i) The matter of impairment of assets has been considered as at
31st March 2015. As per assessment made and valuation carried out by
an independent professional, no impairment loss against fixed assets
is expected.
(ii) In Misc. Application filed by Uttar Pradesh State Industrial
Development Corporation Limited (UPSIDC) in BIFR in the case related
to LML Limited, BIFR passed order regarding resuming of land at Salon,
District Amethi. The land alongwith building and other assets
continues to remain with the Company, which would take appropriate
view on the matter based on the development thereto.
7. In the absence of information from Sundry Creditors regarding
status under The Micro, Small and Medium Enterprises Development Act,
2006, the liability of interest can not be reliably estimated, nor
required disclosures can be made.
8. In view of carry forward losses, no Provision for Taxation has
been made for the year.
9. The Company has been advised that the provisions of The Sick
Industrial Companies (Special Provision) Act, 1985 are not applicable
to it.
10. Figures of the previous year have been regrouped and re-casted
wherever necessary to make them comparable.
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