(I) Claims of ex-employees Rs. 4,30,399/- as the matters are sub-judice.

2. 1829 acres of land at Gangapur and wells thereon continue to appear in the Schedule of Fixed Assets under Land (Freehold) Rs. 13,01,993/- (Previous Year Rs. 13,01,993/-) and wells a Farms Rs. 98,208/- (Previous Year Rs. 98,208/-). The Government of Maharashtra had declared the said land as surplus and taken over their possession. The Company has preferred claims for compensation which is yet to be settled. The necessary effects in the accounts will be given on receipt of the Compensation.

3. 2850 Shares of Ganesh Flour Mill Company Limited held by the Company has been classified as unquoted as all the undertaking of Ganesh Flour Mills Company Limited were taken over by the Government Company Hindustan Vegetable Oil Company under the Ganesh Flour Mills (Acquisition and Transfer of Undertakings) Ordinance 1984. Out of this 400 shares which were sent for transfer has not been received back by the Company and 2450 shares which were not registered in the name of the Company the particulars of which are entered in the Register maintained under section 49 (7) of the Companies Act 1956.

4. Position of Old Loans & Advances:

(a) Company Law Board v/s. Ganesh Flour Mills Company Limited and other: Petition No. 45 of 1971. Company Application Nos. 225 and The Company's claims under the secured category had been settled and the Company had agreed not to pursue its alternate claim through the debenture trustees. The Company's other claim under the unsecured category are pending before the Commissioner of Payments. The Company is constantly following up the matter to recover the amount . The Company's Petition 45 of 1971 and other Applications thereunder are pending before the High Court, New Delhi for disposal.

(b) Miss S. Kelly, Principal, Hill Grange High School - High Court Suit No. 280 of 1975 for Rs.27,311.95p Miss S. Kelly has deposited a sum of Rs.15,000/- as directed by the Court. The Company has advised its advocate to immediately file precipe for expeditious hearing of the matter.

(c) Indira Gandhi Pratibha Pratishtan- High Court Suit No. 2923 of 1984 against A. R. Antulay & Others. The Company had filed a Suit in 1984 against the Trustees of Pratibha Pratishan in the High Court of Mumbai for recovering the amount contributed to the Pratibha Pratishtan on behalf of the cultivators in 1981 as per the request of Deccan Sugar Factories Association and as authorised by the Directorate of Sugar, Government of Maharashtra. The said amount could not be deducted from final sugar price paid to the cultivators for the season 1980-81 as the deduction was objected to by the cultivators. The Suit has not yet reached for hearing.

5. The Company could not obtain balance confirmations in respect of the balances under the heads Sundry Debtors, Bank Balances, Loans and Advances, Deposits and Sundry Creditors. Hence such balances are shown as per the Books of Account and are subject to reconciliation/adjustments, if any.

6. In view of Notes 3 to 5 Investment, Current Assets and loans and advances may not have a value on realisation in the ordinary course of business at least equal to the respective amount at which they are stated in the Balance Sheet.

7. The ex-factory prices of levy sugar for the seasons 1974-75 to 1979-80 were refixed by the Government of India pursuant to the direction of the Supreme Court. The Company received the amount of Rs. 1,08,98,889/- being the difference in prices for the seasons 1974- 75 to 1979 - 80 from the Government of India during the year 1996-97 as part payment against the claim of the Company. The balance claim of the Company amounting to Rs. 12,47,934/- is under consideration of the Government, the credit for which was taken in the Profit and Loss Account for the year 1997- 98.

8. In absence of information from suppliers as to their status, the Company does not possess a list of small scale suppliers. It is therefore not possible to determine the amount due and interest (if any) thereon.

(b) Computation of Profits under Section 349 of the Companies Act has not been given as no commission is payable to the Managing Director/Directors.

(c) Provision has been made towards Salary and House rent Allowance payable to the Managing Director in the current year.

9. There is no change in the value of Inventories in compliance with the revised Accounting Standards AS-2 issued by the Institute of Chartered Accountants of India as there was no finished stock of products dealt with by the Company at the year end.

10. The Figures of the previous year have been regrouped wherever necessary.