(1) Previous years' figures have been regrouped wherever necessary. The
figures shown in bracket are of previous year.
(2) Contingent liabilities not provided for in respect of:
(a) The Company is contingently liable for principal dues, including
penalty, fine etc. of Rs. 40.29 laces of excise duty against which Rs.
2,00,000/- have been deposited. The matters were pending at The
Commissioner / Dy. Commissioner of Central Excise however finally such
matters have been set aside and remanded back by such higher authority.
Therefore the Company has strong belief that there would no liability
at a later date.
(b) Demand raised by Commissioner of Income Tax, Ahmedabad in respect
of disclosing the prior years (2000-01 to 2004-05) Income (Rs. 35.55
laces) (Out of which company has already paid and deposited Rs. 20
laces). Further, appeal for demand of Rs. 61.19 laces raised for the
AY. 2006-07 , is pending with Commissioner of Income Tax. The company
is of strong belief that there would no liability against the aforesaid
assuagement years/ orders.
(3) Depreciation of Rs. 7,75,382/- (previous year Rs. 8,84,250/-) on
Fixed Assets has not been provided during the year under review as the
manufacturing operations are not going on.
(4) The Company has derived Working capital remission benefit of Rs.
3,25,53,999/-,on account of the fact that the said amount pertains to
current assets and related to day to day operations, settlement with
working capital bankers in earlier years. The said amount has credited
to profit and loss account to present true and fair view as per
decision taken by the management.
(5) The account of loans & advances and creditors are subject to
balance confirmation and reconciliation.
(6) During the year the company has credited Rs. 6,35,54,836/- to
Capital Reserve being capital remission benefit on account of
Settlement with Term Lenders, debenture holders and un secured lenders.
(7) Employee Retirement Benefit : The proviso ion for Leave encashment
and other retirement benefits are not required to be made on account of
non completion of minimum period of service of the past employees and
company has not employed any employee during the year.
(8) Advances recoverable are net off credit balances of
Rs.5,20,77,550/-. ( Previous year Rs. Nil ).
(9) Other Income includes Loss on Commodity (Future) of Rs.
1,74,94,828/-, gain on account of One Time Settlement with Working
Capital Lenders and sundry creditors Rs. 3,25,53,999/- and Rs.
16,15,298/- respectively and Misc. Balances written off Rs. 8,952/-
(10) Interest Income Rs. 86,60,534/- (Previous year Rs. 76,38,824/-) is
net of interest expenses of Rs. 9,27,984/- (Previous year Rs.
66,02,221/-).
(11) (i) The Company believes that in view of carried forwarded loss
and depreciation of past years there would be no taxable income, for
the year under review and therefore no provision for taxation is
required to be made in the accounts.
(ii) The Company has unabsorbed depreciation & carried forwarded losses
under Tax laws. In absence of virtual certainty of sufficient taxable
income net deferred assets has not been recognized during the year
under review by way of prudence in accordance with Accounting Standard
(AS) 22-'Accounting for Taxes on Income" issued by The Institute of
Chartered Accountants of India. It is not out of place to mention that
on account of net worth becoming positive, the correct situation would
emerge in years to come.
(12) As per the Accounting Standard (AS) 18 - "Related Party
Disclosure" the Disclosure is hereunder :-
(A) Associates Companies / Firms Nil
(B) Key Management Personnel
(1) Mr. Ramesh D. Solanki
(2) Mr. Pawan Agrawal
(3) Mr. Vinod C-Thakar
Note : During the year there was no transaction with the above referred
personnel.
(13) There is only one activity during the year under review, therefore
no reporting made as required under Accounting Standard (AS) 17 -
"Segment Reporting" issued by the Institute of Chartered Accountants of
India.
(14) During the year the company has not incurred any expenses and
earned any earnings for which disclosure is required under 4D of part
II of Schedule VI of the Companies Act, 1956.
(15) As per the provision of the section 383A of the Companies Act,
1956 the Company is liable to appoint the Whole time Company Secretary
and the Company is in process of implementation of the same.
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