Share Capital

NOte 14 Inventories

Note 15 Trade Receivables

Note 16 Cash & Cash Equivalents

Note 17 Short Term Loans & Advances

Note 19 OTHER INCOME

Note 20 Establishment Expenses

Note 21 Finance Cost

Note 22 OTHER EXPENSES

Note 24 a) The company had made reference to Board for Industrial and Financial Reconstruction (BIFR), under the provisions
of Sick Industrial Companies (Special Provisions) Act, 1985, due to complete erosion of its net worth as on 30th June
2000. The company was thereafter declared a Sick company by BIFR vide its order-dated 28.5.2001.

2. As per the rehabilitation scheme sanctioned by BIFR, Punjab National Bank (PNB) had agreed to charge interest at
   the prime lending rate (PLR) with effect from 1.7.2001. Subsequently the principal and accrued interest has been
   fully discharged by the company.

“c) In accordance with the Rehabilitation Scheme sanctioned by BIFR, the Government of U. P. has deferred the Trade
Tax / Compounding Tax / State Development Tax/ Turnover Tax/VAT amounting in aggregate to Rs.3462.09 Lacs
(P.Y. Rs. 3375.68 Lacs) and Power Charges amounting for Rs.641.13 Lacs (Previous Year 641.13). The amount
of deferred Trade Tax amounting to Rs. 446.00 Lacs (P.Y. Rs 446.00 Lacs) has already been converted into
interest free loan by PICUP during the year 2002-2003. The rest of the deferred payment liability, as extended,
on account of Trade Tax / Compounding Tax / State Development Tax and power charges being in the nature of
deferred credit has been shown under the head Long Term Liabilities in the accounts. The amounts which have
become due for payment or shall become due in next twelve months have been shown under the head Current
Liabilities.

Note 25 Due to adverse market conditions and lack of orders and inspite of the implementation of the rehabilitation scheme
sanctioned by BIFR, the management of the company has temporarily suspended its manufacturing activities at the
factory effective from 25th March, 2010 and accordingly declared “Lay Off” for indefinite period. In the opinion of
the management, the manufacturing operations may be resumed once the market conditions improve and thus the
present situation has not been identified as “Discontinued Operations”. Further, in the absence of any detailed or
formal plan approved/ announced by the board of directors, the discontinued operations of the Company have not yet
been identified for initial disclosure and therefore these accounts have been drawn on the going concern assumption.

Note 26 In the opinion of the Directors and to the best of their knowledge and belief, the value on realisation of current
assets, loans and advances in the ordinary course of business would not be less than the amount at which they are
stated in the Balance Sheet. Balances of sundry debtors, sundry creditors, loans & advances are subject to letters
of confirmation from some of the parties. In the opinion of the Management, no major variation in these accounts is
anticipated.