| 1 Contingent liabilities not provided for:
a) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. Nil (P.Y. Nil)
b) Letter of Credit in favour of suppliers Rs. Nil (P.Y. Nil).
c) Counter Guarantees given to Companys Bankers for Guarantees given
by them on the behalf of the Company Rs. NIL (P. Y.-Nil).
d) The Addl. Commissioner of Centra! Excise & Customs, Vadodara has
passed an Order dated 22.08.2000 raising a demand for recovery of
excise duty amounting to Rs. 15,64,644/- u/s 11 A of the Central Excise
Act, 1944 and a penalty of Rs. 1,00,000/- together with interest. The
Company had gone into appeal before the Custom Excise Service Tax
Appellate Tribunal, IVIumbai challenging the impugned order. The CESAT
vide its Order dated 07.07.2003 has remanded the matter to the
Additional Commissioner, Central Excise, Vadodara for re-examination of
the matter.
e) The Sales Tax Authorities, Vadodara had raised a demand for
Rs.28,09,58,853/- against the company both under the CST and GST Act
relating to the previous periods 1997-98, 1998-99 & 1999-2000. The
company had gone in appeal before the Sales Tax Tribunal, Ahemdabad
against the alleged demand. The appeal has been admitted and now the
matter is sub-judice before the Appellate Authority, Ahemdabad.
2. Subscribed Capital includes Rs. 18000/- consisting of 1800 Equity
Shares of Rs.10/- each on which share application and allotment money
from six nos of allottees was outstanding following non encashment of
their stock invest instruments. The scrips were already mailed to these
allotee.
3. No provision has been made for Gratuity as the same will be
accounted for during the year on actual payment basis. However there is
no employee who has put in qualifying.period for entitlement of
gratuity.
4. The District Supplies Officer, Vadodara, during March 2000 has
seized stocks of raw materials and finished goods. The Collector,
Supply Department, Vadodara vide his Order dated 26.06.2001 had ordered
the release of all stocks seized during March 2000 excepting the stocks
valuing Rs. 169564/-. Considering the specific nature of the material
being inflammable &. explosive articles, the Collector ordered to
deposit a sum of Rs. 169564/- equivalent to the value of stocks
detained. The company has paid the said amount. It is reported to us
during this year that company has to file an against this within a
period of 30 days, which company failed to file as such this amount of
169^64/- has to be written off.
5. Deferred Income Tax: Pursuant to the Accounting Standard - 22 on
"Accounting for Taxes on income issued by The institute of Chartered
Accountants of India, having been made mandatory, the Company changed
the method of accounting for taxes on income to include the effect of
timing differences in the tax expenses in the Profit & Loss Account and
Deferred Tax Asset/Liability in the balance sheet.
The Company has evaluated the various elements of tax computation to
determine whether any deferred tax assets or liability needs to be
recognized due to the availability of carried forward losses and
unabsorbed depreciation as per Income Tax Act, 1961, as well as because
of applicability of Minimum Alternate tax (MAT) provisions to the
company, No deferred tax asset or liability arises.
Deferred Tax Assets are not recognized on unabsorbed depreciation and
carried forward losses unless there is a virtual certainty that there
will be sufficient future taxable income to realize such assets.
6. The market value of investments as on 31.03.2007 is as under:
a) Quoted Shares
i) 300 Equity Shares of Rs.10/- each of Rana Sugars Ltd. - Rs.10/-per
share.
ii) 16700 Equity Shares of Rs.1Q/-each allotted at a premium of
Rs.8/-per share of Raj Agro Mills Ltd. ~ Rs.2/-per share.
b) Un-Quoted Shares
500 Equity Shares of Rs.10/-each of Su-vikas People Co-op. Bank Ltd.,
the market value of these shares is not available.
7. Debit or credit balances outstanding against parties are subject to
their confirmation and reconciliation.
8. in the opinion of management, the current assets, loans and
advances have a value on realization in the ordinary course of
business, at least equal to the amount at which they are stated in the
Balance Sheet.
9. Previous years figures have been rearranged/regrouped wherever
considered necessary to make them comparable with those of current
year.
10. Additional information pursuant to para 3 & 4c and 4d of Part II of
Schedule V! to the Companies Act, 1956 :-
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