| 1. Estimated amount of contract remaining to be executed on Capital
Account and not provided for Rs.Nil (Previous year Rs. Nil)
2.Contingent Liabilities :-
a. Difference in exchange value due to foreign bills crystallised due
to non-realisation - Rs.41,20,783/-
b. Income Tax under appeal before the appellate tribunal Rs.7,25,465/-
for Assessment Year 1991-92.
c. Income Tax (including interest) under appeal before CIT (Appeal)
Rs.19,61,606/- for the Assessment year 1995-96.
d. Sales Tax under appeal Rs.3,89,067/-for the year 1994-95.
3.No provision has been made for probable doubtful debtors.
4. Confirmation of Balance have not been received from Sundry Debtors,
Sundry Creditors, in respect of loans and advances and banks in some
cases.
5. The Company accounts for export revenue receipts at the exchange
rate prevailing on the date of negotiation with the bank in respect of
bills so negotiated. In respect of other bills, the realised sum is
recorded as income. The exchange fluctuation difference is not
indicated seperately in the accounts as recommended by the Institute of
Chartered Accountants of India.
6. During the year, no interest has been provided in accounts in
respect of Working capital advances availed from Indian Bank.
Moreover, over the years the company has not debited interest account
in its books aggregating to Rs. 7,06,28,705/- upto 31.12.99 in respect
interest charged to Packing Credit account, Over draft and other
accounts. Consequently, as on 01/04/2000 the Loss Carried in Balance
Sheet is understated to the extent of Rs. 7,06,28,705/-. Indian Bank
has filed a case against the Company before the Debt Recovery Tribunal
in January 2000. The interest accruing, if any on various accounts
after 01/01/2000 has not been provided in the company's books in
addition to Rs.7,06,28,705/- said above.
7. The interest pertaining to the term loans drawn from IDBI & GIIC
for the acquisition of Fixed Assets computed for the entire period of
loans has been capitalised on the basis that the interest accrues at
the time loans are availed of. As informed by the company, had such
future interest which relates to the period after commissioning of
respective assets not been treated as a part of cost of those assets
and instead treated as expenditure in the year to which it relates as
recommended by the Institute of Chartered Accountants of India the net
book value of the Fixed Assets and deferred liabilities as at
31.03.2001 would have been tower by Rs. 1,35,77,143/- and 1,09,75,900/-
respectively and the interest for the year would have been higher by
Rs. 20.62.769/- Depreciation for the year would have been lower by Rs.
15,26,748/- and the loss for the year lower by Rs. 5,36,021/-
|